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

                          E U R O P E

          Wednesday, September 15, 2021, Vol. 22, No. 179

                           Headlines



D E N M A R K

NORDSTROM INVEST: Files for Bankruptcy in Aarhus Court


F R A N C E

CMA CGM SA: Moody's Upgrades CFR to Ba3, Outlook Remains Positive


G E R M A N Y

DIC ASSET: S&P Rates New EUR300MM Senior Unsecured Notes 'BB+'
[*] GERMANY: Business Insolvencies Down 17.7% in First Half 2021


G R E E C E

MYTILINEOS SA: S&P Affirms 'BB-' LongTerm ICR, Outlook Stable


I T A L Y

LEATHER 2 SPA: Moody's Assigns B1 CFR, Rates New EUR340MM Notes B1
LEATHER SPA: S&P Assigns Preliminary 'B' Issuer Credit Rating


L U X E M B O U R G

RUMO SA: Fitch Assigns BB Rating on New USD500MM Unsec. Notes


N E T H E R L A N D S

ESDEC SOLAR: S&P Assigns 'B' Issuer Credit Rating, Outlook Stable


P O R T U G A L

ULISSES FINANCE 2: Moody's Gives (P)B1 Rating to EUR3.7MM E Notes


R U S S I A

LENTA LLC: Fitch Raises LongTerm IDRs to 'BB+', Outlook Stable
ROZNICHNOYE I KORPORATIVNOYE: Liabilities Exceed Assets


S P A I N

ALMIRALL SA: Moody's Affirms Ba3 CFR, Rates New EUR250MM Notes Ba3


S W I T Z E R L A N D

CEVA LOGISTICS: Moody's Ups CFR to Ba3, Outlook Remains Positive
GATEGROUP HOLDING: Moody's Affirms Caa2 CFR, Outlook Now Stable


U N I T E D   K I N G D O M

EVRAZ PLC: S&P Affirms 'BB+' Issuer Credit Ratings, Outlook Stable
ORVEC INT'L: Bought Out of Administration by John Horsfall & Sons
PKA LEGAL: Goes Into Administration, Closes Nottingham Office
RMAC SECURITIES 2007-NS1: Fitch Affirms BB+ Rating on 2 Tranches
STUDIO E: Inept Design Contributed to 2017 Fire, Inquiry Hears

UTILITY POINT: Ceases Trading, 220,000 Customers Affected

                           - - - - -


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D E N M A R K
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NORDSTROM INVEST: Files for Bankruptcy in Aarhus Court
------------------------------------------------------
Lars Paulsson at Bloomberg News reports that Nordstrom Invest A/S,
a Danish power trading company, has filed for bankruptcy as the
unprecedented rally in energy prices across Europe claimed yet
another victim.

The company filed a request on Sept. 7 to the Bankruptcy Court in
Aarhus, Bloomberg relays, citing the Government Gazette of Denmark.
It comes just days after several energy suppliers in the U.K.
ceased trading, Bloomberg notes.

The company "had different positions in the electricity market that
have gone against them, and then the management has decided to stop
the activity," Bloomberg quotes Soren Christensen Volder, a partner
at law firm Bech-Bruun who was appointed by the court to liquidate
the company, as saying by email.

Nordstrom Invest was founded by Stefan Barkholt Ovesen in 2016.

The company is a non-clearing member of Nasdaq Inc.'s commodity
market, which means it has direct access to the market, but has to
clear its trades through another company, Bloomberg states.
According to Bloomberg, a spokesman in Stockholm said that limited
any losses for Nasdaq, which were notified of the filing on
Thursday, Sept. 9.

The spokesman said Nordstrom Invest has been banned from trading
since Thursday, Sept. 9 and Nasdaq is in the process of canceling
its membership, Bloomberg recounts.




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F R A N C E
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CMA CGM SA: Moody's Upgrades CFR to Ba3, Outlook Remains Positive
-----------------------------------------------------------------
Moody's Investors Service has upgraded the corporate family rating
of CMA CGM S.A. to Ba3 from B1 and its probability default rating
to Ba3-PD from B1-PD. Concurrently, the company's senior unsecured
rating was upgraded to B2 from B3. The outlook remains positive.

"The upgrade to Ba3 was prompted by continued reduction in
financial leverage, improved liquidity and increase in unencumbered
assets, supported by more favorable industry conditions" says
Daniel Harlid, the Vice President - Senior Analyst and the lead
analyst for CMA CGM." While Moody's expect freight rates to
moderate in 2022, Moody's expect that CMA CGM's improved operating
performance and leverage metrics will be sustained supported by a
more conservative financial policy", Mr. Harlid continues.

RATINGS RATIONALE

The upgrade to Ba3 with a positive outlook reflects continued
strong operating performance with positive free cash flow
generation applied to a notable reduction of financial debt of CMA
CGM over the recent quarters. Credit metrics improvement are a
result of a materially improved operating environment of the
shipping market, implemented efficiency measures and a financial
policy focused on debt reduction and preserving a good liquidity
profile.

Recent results releases show that ongoing disruptions to global
supply chains caused by the coronavirus pandemic pushed the
profitability of container shipping companies to record highs in
the first half of 2021. Very strong demand for goods, a shortage of
containers and container ships and infrastructure bottlenecks have
led to a surge in freight rates that Moody's currently see no signs
of abating amid continued strong trade volumes. While Moody's
believes that volumes eventually will normalize, there is a high
likelihood that freight rates will stay elevated well into 2022 and
beyond compared with pre-pandemic levels. While the industry is
gradually increasing its capacity, the supply-demand balance should
support elevated freight rates going forward.

CMA CGM has used the very strong market environment to speed up its
debt repayment pace, where over $2.4 billion of financial debt was
repaid during the first half of 2021 (excluding the recently
announced full prepayment of its EUR750 million senior unsecured
bond due 2025). As an effect of this, the company's
Moody's-adjusted debt / EBITDA ratio has decreased to 1.5x for the
last twelve months that ended June 30, 2021 from 5.1x in 2019. All
in all, CMA CGM's financial debt (excluding lease and pension debt)
has decreased by over $3.0 billion since the beginning of 2019,
taking it lower than before the acquisition of CEVA Logistics AG.
This was facilitated by both asset sales and strong free cash flow
generation, the latter amounting to $5.7 billion over the last 18
months on a Moody's-adjusted basis.

Further underpinning the rating actions is the company's increased
pool of unencumbered assets, which on a book value basis amounted
to $3.3 billion as of June 30, 2021, leading to an unencumbered
assets ratio of over 30%. As Moody's understand the intention is to
finance the lion share of capex this year with cash, Moody's
foresee this ratio to continue to increase.

The rating action balances the positives with still present
downside risks, such as the looming threat of additional lockdowns,
a deterioration in capacity discipline by carriers or rapidly
increasing bunker rates. In addition, there has not been a long
track record of the recently improved performance in the container
shipping industry, which still needs to prove to be sustainable for
the longer term. Moody's also highlights risks attached to coming
environmental regulations over the medium term, which most likely
will drive capex levels for the industry higher as carriers adjust
their fleet toward being carbon neutral.

CMA CGM's rating continues to be constrained by the absence of a
formal financial policy which stipulates a dividend policy and
leverage target. That being said, Moody's views recent debt
reduction initiatives as a positive step towards a capital
structure better positioned to withstand the cyclical nature of
shipping.

RATIONALE FOR THE POSITIVE OUTLOOK

The positive outlook reflects the potential for sustained strong
key credit metrics into 2022 and beyond. While freight rates are
expected to fall back from current levels, Moody's believe they
will stay elevated as long as capacity remains tight. This should
translate into a Moody's-adjusted debt / EBITDA ratio of 2.1x -
2.3x and RCF / net debt ratio of 60% - 65% within the next 12-18
months. A continuation of CMA CGM's financial policy with a focus
on debt reduction and liquidity management could further support
positive pressure on the rating, though this must be balanced
against the company's appetite for acquisitions, opportunistic
capital expenditure and dividend payouts.

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

Prerequisites for further positive rating pressure over the next 12
to 18 months are a track record of preservation of credit metrics
in line with the requirements for the Ba3 rating category, notably
that CMA CGM's debt / EBITDA ratio stays below 3.0x, that its EBIT
margin remains at least in high single digits percentage wise and
that its FFO coverage ratio remains above 4.5x. Furthermore,
Moody's would also require that the company continues to evidence a
balanced financial policy before considering further positive
rating actions.

Negative rating pressure could arise if the company's debt/EBITDA
ratio increased above 4.0x and FFO interest coverage decreased
below 4.0x and stayed at such levels for a prolonged period.
Additionally, negative free cash flow, larger M&A activities or a
weakened liquidity profile could cause negative pressure on
ratings.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Shipping
published in June 2021.

LIST OF AFFECTED RATINGS

Upgrades:

Issuer: CMA CGM S.A.

Probability of Default Rating, Upgraded to Ba3-PD from B1-PD

LT Corporate Family Rating, Upgraded to Ba3 from B1

Senior Unsecured Regular Bond/Debenture, Upgraded to B2 from B3

Outlook Actions:

Issuer: CMA CGM S.A.

Outlook, Remains Positive

COMPANY PROFILE

Based in Marseille, France, CMA CGM is the third-largest provider
of global container shipping services. The company operates
primarily in the international containerized maritime
transportation of goods, but its activities also include container
terminal operations, intermodal, inland transport and logistics.
For the last twelve months that ended June 30, 2021, the company
reported revenue of $40.3 billion and EBITDA of $11.7 billion.



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G E R M A N Y
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DIC ASSET: S&P Rates New EUR300MM Senior Unsecured Notes 'BB+'
--------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' long-term issue rating to the
EUR300 million senior unsecured green bond to be issued by German
real estate company DIC Asset AG (DIC; BB+/Stable/--). The proposed
bond has an expected maturity of five years.

The recovery rating on the debt is '3', reflecting our expectation
of about 50% recovery prospects in the event of a default.

Issue Ratings - Recovery Analysis

Key analytical factors

-- The issue rating on DIC's proposed EUR300 million senior
unsecured notes is 'BB+', in line with the issuer credit rating.

-- The recovery rating is '3', reflecting the valuable asset base
mostly consisting of stabilized income-producing investment
properties.

-- S&P's recovery prospects are constrained by the unsecured
nature of the debt instrument and its contractual subordination to
the current amount of secured debt. That said, in first-half 2021,
DIC issued EUR250 million of promissory notes, which it understands
will be used to refinance existing liabilities maturing in 2022,
benefiting recovery prospects.

-- S&P understands that DIC will use the proceeds from the bond
issuance to finance or refinance green projects.

-- In S&P's hypothetical default scenario, it envisages a severe
macroeconomic downturn in Germany, resulting in market depression
and exacerbated competitive pressures.

-- S&P values the group as a going concern. It uses a combined
approach on the basis of discrete asset value and EBITDA multiple
to take into consideration the stressed value of DIC's owned
yielding properties (commercial portfolio) and the EBITDA
contribution derived from its fee income business (institutional
business).

-- Recovery prospects for the proposed senior unsecured notes are
very sensitive to a small change in the amount of senior secured
debt or any other priority debt outstanding at default. Since there
is no limitation on the incurrence of additional debt in the bond
documentation, recoveries could be much lower if the amount of
secured debt at default differs from our projections.

Simulated default assumptions

-- Year of default: 2026
-- Jurisdiction: Germany

Simplified waterfall

-- Gross enterprise value (EV) at emergence: EUR1.66 billion

-- Net EV at emergence after administrative costs: EUR1.58
billion

-- Estimated priority debt (mortgages and other secured debt):
About EUR1,013 million

-- Net EV available to senior unsecured bondholders: EUR567
million

-- Senior unsecured debt claims: EUR1,070 million

-- Recovery Rating: 3

-- Recovery expectation: 50%-70% (rounded estimate: 50%)

*All debt amounts include six months of prepetition interest


[*] GERMANY: Business Insolvencies Down 17.7% in First Half 2021
----------------------------------------------------------------
The Federal Statistical Office (Deststis) on Sept. 10 disclosed
that in the first half of 2021, there was no wave of business
insolvencies due to the coronavirus crisis.  Instead, the number of
reported business insolvencies continued to decline.  German local
courts reported 7,408 business insolvency requests in the first
half of 2021.  Deststis reports that this was a decline of 17.7% on
the first half of 2020 and of 22.9% on the first half of 2019,
which was not yet affected by the coronavirus crisis.  In relation
to the business insolvency requests, the prospective debts owed to
creditors amounted to EUR31.8 billion in the first half of 2021;
they were almost twice as high as in the first half of 2020
(EUR16.7 billion).  This increase was attributable to the fact that
more economically important businesses filed business insolvency
requests in the first half of 2021 compared with the same period a
year earlier.




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G R E E C E
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MYTILINEOS SA: S&P Affirms 'BB-' LongTerm ICR, Outlook Stable
-------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' long-term issuer credit
rating on Mytilineos S.A.

S&P said, "The stable outlook reflects our expectation that
improved profitability and prudent financial policy will
accommodate peak investment in 2021 and build important headroom
under the rating from 2022.

"In our view, the change in Greece's country risk assessment has no
near-term impact on our view of Mytilineos' creditworthiness,
supporting our 'BB-' rating and stable outlook. We previously saw
Mytilineos' business risk profile at the higher end of the weak
category, reflecting the competitive position of each one of its
divisions (aluminum, energy, and engineering and construction), but
also the benefits from diversification, which could smoothen
volatility of profitability and cash flows. Greece's country risk
has limited impact on our overall assessment, and a revision of the
country risk will not lead to an automatic rating action on the
company. We now capture our previous assessment with a negative
comparable rating analysis (CRA). In our view, a revision of the
CRA to neutral will be subject to a longer track record of EBITDA
stability through the cycle, with competitive EBITDA margin versus
its peers. As of June 30, 2021, Mytilineos reported EBITDA of
EUR156 million, which is in line with our expectations and
demonstrates that the company should be on track to achieve our
projected adjusted EBITDA of EUR340 million-EUR360 million for the
year.

"The stable outlook reflects our expectation that improved
profitability and prudent financial policy will accommodate peak
investment in 2021 and build important headroom under the rating
from 2022. Under our base-case scenario, we project adjusted EBITDA
of EUR340 million-EUR360 million in 2021, and negative
discretionary cash flow (DCF) of EUR250 million-EUR280 million.
These metrics will improve in 2022 as the company completes
important projects. In our view, adjusted debt to EBITDA of
2.5x-3.0x is commensurate with the rating, considering the cash
balance, midcycle aluminum industry conditions, and at least
neutral DCF. Under our projections, adjusted debt to EBITDA will be
about 3.0x in 2021 (assuming EUR150 million of cash on the balance
sheet).

"We anticipate negative pressure on the rating and an eventual
downgrade to Mytilineos if its adjusted debt to EBITDA exceeds
3.5x, with material negative free operating cash flow (FOCF) and no
prospects for a quick turnaround. However, this threshold could
change somewhat based on the company's cash position. This could
follow a slowdown affecting all Mytilineos' divisions and an
increase in debt due to cost overruns or additional sizable
projects. It could also be caused by the company undertaking a
debt-funded acquisition with no immediate earnings contributions.
In addition, further investment in solar projects, while facing
delays monetizing previous projects, could also lead to a negative
rating action."

S&P sees limited upside for the ratings in the coming 12 months.
However, beyond then, a higher rating could be supported by the
following:

-- The disciplined execution of its ambitious growth projects with
better visibility over projects' future contribution.

-- Stronger credit metrics, taking into account Mytilineos's
capital expenditure and dividend needs. For example, at times of
peak investments, S&P sees an adjusted debt to EBITDA of 2x or
better as supporting a higher rating. Once the company has
completed its growth phase, and started generating material
positive FOCF, S&P sees an adjusted debt to EBITDA of 2.0x-2.5x as
supporting a higher rating.

-- Other conditions that would precede a positive rating action
include maintaining adequate liquidity and Mytilineos sustaining
its competitive position in each division.




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I T A L Y
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LEATHER 2 SPA: Moody's Assigns B1 CFR, Rates New EUR340MM Notes B1
------------------------------------------------------------------
Moody's Investors Service has assigned a B1 corporate family
rating, a B1-PD probability of default rating as well as a B1
rating for the proposed EUR340 million senior secured notes to the
Italian based supplier of premium leather for the automotive
industry Leather 2 S.p.A. (Conceria Pasubio S.p.A. or Pasubio). The
outlook on the ratings is stable.

RATINGS RATIONALE

The rating is primarily supported by the company's (1) strong
position in the market for automotive premium leather solutions in
Europe as evidenced by its track record to secure new business over
the last years, namely Porsche and BMW, (2) its production
technology and efficiency improvement initiatives that have helped
Pasubio to double its EBITDA margin to 22% on an the basis of LTM
June 30, 2021, a very strong level compared to peers in the auto
supply industry, and also when considering the broader universe of
rated manufacturing companies (3) its vertically integrated
business model that supports capturing profits along the value
chain, (4) the low capital intensity leading to a strong Free Cash
Flow development, and (5) its adequate liquidity.

The B1 CFR of Pasubio is primarily constrained by the company's (1)
exposure to the cyclicality of the global automotive industry; (2)
a competitive market environment for leather solutions where
Pasubio ranks among the top 10 players globally, (3) the high
exposure to raw materials like hides and chemicals, which the
supplier is challenged to fully pass through to the OEM and could
result in material volatility in profits, (4) its limited scale and
geographic diversification (Europe accounted for 82% of sales in
FY2020), (5) a high customer concentration towards premium and
luxury OEMs and (6) its high leverage (as adjusted by Moody's) pro
forma for the transaction of around 5.9x at year end 2020, which
Moody's however expect to reduce to below 5x this year and below
4.5x in 2022.

LIQUIDITY

Moody's consider Pasubio's liquidity as adequate. On a pro forma
basis, Pasubio will start with no significant cash on balance sheet
but can rely on a super senior revolving credit facility of EUR65
million, which will be sufficient together with positive free cash
flow generation to cover all short term cash needs including day to
day needs as well as seasonal working capital swings. Following the
issuance of the notes, there are no short-term maturities until
2027.

RATING OUTLOOK

The stable outlook assumes that Pasubio will be able to (1) further
increase its EBITA margin (as adjusted by Moody's) to close to 20%
in the current fiscal year 2021 from close to 17% in 2019, (2)
generate positive free cash flows (as adjusted by Moody's) of at
least EUR30 million p.a., (3) reduce leverage (gross debt/EBITDA)
as adjusted by Moody's to below 4.5x in 2022 and generate retained
cash flow / debt (as adjusted by Moody's) of around 15% by 2022 and
beyond from 12.8% expected by 2021 on a pro forma basis while (4)
keeping a solid liquidity profile.

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

Moody's would consider an upgrade should Pasubio achieve
sustainably (i) Debt/EBITDA (Moody's adjusted) below 3.5x, (ii) FCF
/ Debt exceeding 10%, (iii) RCF / Net Debt above 20% as well as
(iv) EBITA margins above 20%. For a higher rating Pasubio also
needs to become larger in size and significantly broaden its
diversification.

Negative pressure could arise for Pasubio if debt/EBITDA (Moody's
adjusted) failed to improve to below 4.5x, EBITA margins (Moody's
adjusted) fall below 15%, RFC / Net debt sustainably declining
below 10% or its liquidity profile to deteriorate.

STRUCTURAL CONSIDERATIONS

Pasubio's PDR of B1-PD is in line with its B1 CFR, which reflects
Moody's typical 50% corporate family rating recovery assumption for
all-senior capital structures. The B1 rating of the planned senior
secured notes is also in line with the CFR. The proposed EUR340
million senior secured notes are structurally subordinated to the
revolving credit facility but benefit from the same guarantees
provided by around 85% of Pasubio's operating subsidiaries.

ESG CONSIDERATIONS

Pasubio is owned by the private equity sponsor PAI Partners. This
governance consideration has been included in the ratings
consideration.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Automotive
Suppliers published in May 2021.

COMPANY PROFILE

Headquartered in Arzignano, Italy, Pasubio is one of the leading
suppliers of premium leather for the automotive industry producing
high-quality finished leather for seats, dashboards and steering
wheels, and other upholstering. Pasubio focuses on all segments of
the premium and luxury automotive market, and on high-quality
leather (full-grain and nappa) in particular.

According to management estimates based on independent third-party
consultant data, Pasubio has around 10% market share in the
automotive high-quality leather market globally. For the twelve
months ended June 30, 2021, Pasubio generated revenue of EUR320.6
million and a pro forma adjusted EBITDA of EUR74.2 million.

LEATHER SPA: S&P Assigns Preliminary 'B' Issuer Credit Rating
-------------------------------------------------------------
S&P Global Ratings assigned its 'B' preliminary issuer credit and
issue ratings to Italy-headquartered Leather S.p.A. (doing business
as Pasubio) and its proposed senior secured notes, respectively.

The stable outlook reflects S&P's expectation that the company will
maintain adjusted EBITDA margins in the 20% area, translating into
adjusted debt to EBITDA declining to around 5x in the next two
years with adjusted FOCF to debt of 4%-9%.

Pasubio is a niche auto supplier favorably positioned in the
premium and luxury car segment. With June 2021 last-12-month (LTM)
revenue of EUR321 million, the company is among the smallest rated
auto suppliers globally, which is primarily because of the group's
narrow focus on finished leather products for passenger car seats
and interiors. Pasubio specializes in high-quality nappa and full
grain leather, serving premium and luxury car brands such as
Porsche (about 33% of 2020 revenue) and Jaguar Land Rover (JLR;
18%). Because the premium brands' end customers focus more on
quality and demand is less elastic to price changes, original
equipment manufacturers (OEMs) tend to earn favorable margins on
leather equipment. S&P said, "We think this reduces price pressure
for Pasubio compared with other auto suppliers. We also view
favorably the premium segment's stronger-than-average growth
prospects." According to LMC Automotive, global luxury and premium
car production is set to grow at an 8% compound annual growth rate
over 2021-2025 compared with 6% for total light vehicle production,
and it faced a less severe decline of 9% versus 16% during the
pandemic in 2020. According to management estimates, producers,
Pasubio is the third-largest supplier of auto leather products
globally, holding a 10% market share behind U.S.-based Eagle Ottawa
(a division of Lear Corp.) and Germany-based Bader. The company
notably has a strong presence in Europe supported by a full control
of the value chain including hides selection, tanning, processing,
and cutting.

The second LBO of Pasubio will weaken the company's near-term
credit metrics. S&P said, "The transaction is to be funded with the
EUR340 million proposed secured notes and a EUR275 million sponsor
contribution, consisting of EUR146 million common equity and a
EUR129 million shareholder loan that we treat as equity. We
anticipate pro forma adjusted debt to EBITDA of about 5.5x in 2021
(7.6x if we were to view the shareholder loan as debt), modestly
declining to about 5x in 2022 from earnings growth. We view PAI's
financial policy stance as typical for financial sponsor owners,
and do not rule out future shareholder return maximization or
debt-funded acquisitions. Given Pasubio's financial sponsor
ownership, we assess its leverage on a gross debt basis. We
estimate pro forma adjusted debt of EUR356 million, including some
nonrecourse factoring, leases, and postemployment liabilities,
while excluding the EUR129 million shareholder loan that we view as
noncommon equity under our criteria. We believe the company could
accommodate small tuck-in and EBITDA-accretive acquisitions, which
could incrementally reduce leverage if funded from FOCF and cash
balances (EUR68 million as of June 30, 2021) rather than debt."

Pasubio's demonstrated FOCF through the cycle supports the ratings.
Rising earnings and limited capital spending requirements have
allowed the company to generate sizable FOCF over auto market
cycles. With little capacity investments needed at this stage, S&P
anticipates FOCF of EUR20 million-EUR30 million annually in the
next two years, implying a solid FOCF-to-debt ratio for the rating
level of 4%-9%. This is despite increasing pro forma cash interest
expense of about EUR15 million and relatively high cash tax rates
(EUR17 million paid in 2020), in addition to annual capex of EUR12
million-EUR18 million. In first-half 2021, FOCF of EUR14 million
was supported by recovering revenue of EUR166 million and increased
EBITDA to EUR35 million (21% margin) despite a EUR10 million
working capital outflow.

Pasubio's solid profitability and flexible cost structure are key
credit strengths. S&P views favorably the company's track record of
above-average S&P Global Ratings-adjusted EBITDA margins of 17%-22%
since 2019 and its ability to improve profitability during last
year's auto market downturn. In addition to its high-end market
position that results in favorable pricing, Pasubio's competitive
cost structure further supports its profitability. The company's
cost base has notably benefited from several operating initiatives
launched in 2017 under the ownership of its previous financial
sponsor. Increasing automated processes, from the hides selection
to laser cutting, have led to reduced manual work and raw material
scrappage, ultimately allowing the company to expand its adjusted
EBITDA margin to 21.6% in 2020 (about 20% excluding a one-off
bargain purchase of raw materials) from 10.9% in 2018. The company
has identified further efficiencies in processing and finishing
technologies, as well as in water recycling, to maintain margins
above 20% in the next two years. S&P also believes that Pasubio's
flexible cost structure (less than 20% of fixed cost) reduces the
volatility of its profitability in times of lower or fluctuating
demand. About 65% of its cost base is composed of raw materials
(hides and processing chemicals) and the company has passed through
price inflation to customers, albeit with a lag of up to a few
quarters. In addition, slightly more than 50% of its direct labor
force resides in lower-cost countries such as Serbia and Mexico.

Pasubio's robust order book provides visibility as the auto market
recovery remains uneven. The company has secured more than EUR300
million of booked average annual revenue through 2024. With the
recent acquisition of Germany-based Hewa, Pasubio will also add
EUR25 million-EUR30 million of annual revenue while gaining a new
relationship with Rolls Royce. Despite the visibility the order
book provides, actual revenue could be lower because OEMs can
reduce some of the contracted volumes, in line with industry
standards. Also, following the bumpy recovery in car production
linked to issues such as the prolonged industry chip shortage,
Pasubio's order intake in first-half 2021 declined by 8% to EUR151
million from EUR165 million for the same period a year earlier.
However, S&P believes this to be temporary.

Concentration in terms of product, customer base, and supply chain
constrain our rating. In addition to its small scale, S&P views the
company's sole focus on leather interior products as a weakness
compared with that of larger and more diversified rated auto
supplier. Also, Pasubio is mainly exposed to the European auto
market (about 80% of its revenue), and diversification in North
America (about 10%) and Asia (5%) remains very limited. While the
company targets to increase its activity in the U.S. market in the
next few years, S&P expects most of its production footprint to
stay in Italy, with the existing Mexican operations mainly
consisting of final products' cutting. S&P also deems Pasubio's
customer concentration as fairly high for the industry, with its
top 2 clients (Porsche, part of the Volkswagen group
[BBB+/Stable/A-2] and JLR [B/Watch Positive/--]) representing about
50% of revenue in 2020. Also, the company's relationships with its
OEM clients are shorter and potentially less entrenched compared
with those of other auto suppliers. For instance, Pasubio's has had
relationship with Porsche for nine years, with its share of order
volume only picking up materially in 2018. While Pasubio is the
single supplier for some models (such as Cayenne and Panamera),
most OEM contracts in the segment are typically dual-sourced. An
unforeseen switch to dual sourcing on models where Pasubio is the
sole supplier, or a reduced volume share on dual-sourced models,
could have a material impact on earnings and cash flow.

S&P said, "We assess substitution risk for auto leather as limited
in the near-to-medium term. We view substitution risk for auto
leather products as low because premium car customers continue to
identify the material as a luxury feature. Nevertheless, the
carbon-intensive meat industry is the only supplier of byproduct
hides and the tanning process requires polluting chemicals such as
chromium. We believe that increasing customer awareness toward
environmental considerations and animal wellness could eventually
impair leather demand." In that regard, Tesla Inc. has made the
strategic choice of only using synthetic materials for its seats
and car interiors. To address potentially changing customer
behaviors, Pasubio is increasingly investing in new materials such
as recycled or cotton-based leather while reducing its chromium
usage with greener chemicals.

The final rating will depend on the company's successful notes
issuance. S&P said, "We expect Pasubio to issue EUR340 million of
senior secured notes and a EUR129 million shareholder loan to fund
the LBO undertaken by PAI Partners. The final rating will depend on
our receipt and satisfactory review of all final transaction
documentation and continued operating performance in line with our
base case." If S&P Global Ratings does not receive final
documentation within a reasonable time frame, or if final
documentation departs from materials reviewed, or if there are
unexpected material deviations from the expectations for the
company's financial performance, it reserves the right to withdraw
or revise the ratings. Potential changes include, but are not
limited to, utilization of the new notes and shareholder loan
proceeds; maturity, size, and conditions of the instruments;
financial and other covenants; security; and ranking.

S&P said, "The stable outlook reflects our expectation that
Pasubio's revenue will recover to above prepandemic levels in 2021,
while maintaining adjusted EBITDA margins in the 20% area. We
estimate this will translate into adjusted debt to EBITDA declining
toward 5x in the next two years with FOCF of EUR20 million-EUR30
million annually.

"We could raise our ratings on Pasubio if adjusted debt to EBITDA
declined materially below 5x while adjusted FOCF to debt stays well
above 5% on a sustained basis. This could stem from
faster-than-anticipated EBITDA growth and new lucrative contract
wins with OEM customers, or the company allocating its FOCF toward
debt repayment. Any upgrade would also be contingent upon a firm
financial policy committment to maintaining these credit metrics.

"We could lower our rating on Pasubio if adjusted debt to EBITDA
increased well above 6x and FOCF to debt declined below 2% with
limited prospects for rapid recovery. This could stem from
unforeseen operating setbacks such as losses of customer contracts,
cost inflation, or prolonged weakness in demand, leading to
significantly weaker-than-expected EBITDA and FOCF. A more
aggressive financial policy favoring material debt-funded
acquisitions or shareholder returns could also result in ratings
pressure."




===================
L U X E M B O U R G
===================

RUMO SA: Fitch Assigns BB Rating on New USD500MM Unsec. Notes
-------------------------------------------------------------
Fitch Ratings has assigned a 'BB' to Rumo S.A.'s USD500 million
proposed senior unsecured notes. The notes will be issued by its
wholly owned subsidiary, Rumo Luxembourg S.a.r.l. and will be
unconditionally and irrevocably guaranteed by Rumo. The notes will
mature in 2032. Proceeds will be used to debt repayments.

The rating reflects Rumo's solid business position as one of the
largest railroad operators in Brazil, its consistently solid
operating margins, healthy operating cash flow, strong liquidity,
and low net leverage of 3.0x. Rumo should continue benefiting from
agricultural expansion in Brazil as the company captures additional
volumes, mainly coming from its newest Malha Central network.
Rumo's ownership by Cosan S.A. (LC IDR BB+/Stable), which also owns
leading companies in several sectors, is also a key credit
consideration. Fitch rates Rumo's Local Currency (LC) and Foreign
Currency (FC) Issuer Default Rating (IDR) 'BB+'/Outlook Stable and
'BB'/Outlook Negative, respectively.

KEY RATING DRIVERS

Solid Business Fundamentals: Rumo's operations benefit from the
strong international trade flow associated with Brazil's growing
agricultural sector as well as the diverse export market the sector
serves. The company and the rail transportation sector have not
been negatively impacted by the coronavirus pandemic. Further, Rumo
continues to maintain its competitive advantage due to its low cost
of transportation and despite increasing competition with the
highway service. Fitch expects Rumo to transport 70 billion revenue
ton kilometer (RTK) in 2021, increasing to 80 billion RTK in 2022
as the new Malha Central line ramps up; Rumo transported 62 billion
RTK in 2020. Volume should increase by approximately 10% to 17%
annually from 2021 onwards, driven by the opening of Malha Central,
which became operational in 1Q21. Rumo's main cargo is comprised of
agricultural products that are predominately exported, mainly
soybean and soymeal (40.0%), corn (27.5%), and sugar (8.0%), based
on 2020 figures.

Capex Pressures FCF: Rumo's EBITDA margins is expected to improve
to 41%-48% over the rating horizon, while the company gains scale,
after falling to 40% in 2020. Margin weakness in 2020 was due to
pre-operating expenses related to Rumo Malha Central's new
concession contract, and the concession renewal fee for Rumo Malha
Paulista. Fitch's rating case forecasts EBITDA and funds from
operation (FFO) of BRL3.3 billion and BRL2.0 billion in 2021, and
BRL4.0 billion and BRL2.6 billion in 2022, respectively. The new
capex requirements from the concession renewal at Rumo Malha
Paulista should put pressure on the company's FCF. Fitch projects
elevated capex of around BRL15 billion from 2021 to 2024 to result
in negative FCF of approximately BRL4.0 billion for the period.

Leverage Remains Conservative: Rumo is expected to have low net
leverage, from 2.5x to 3.0x, during the high levels of investment
over the next four years. Fitch's baseline scenario considers net
leverage ratio, as measured by net debt/EBITDA, to peak at 3.0x in
2021. Improvements in Rumo's operating cash flow generation, led by
gains of scale coming from the investments, should result in net
leverage between 2.5x and 3.0x from 2022 onwards.

Rumo remains focused in its strategy to expand its coverage area.
The company has presented a proposal to Mato Grosso State to build
and operate 730 quilometers of a new rail line (from Rondonópolis
to Lucas do Rio Verde and Cuiaba, with bifurcation in Nova Mutum).
The total capex is expected to be BRL12 billion, initiating in
2023. In case Rumo's proposal is accepted, the agency estimates
annual capex around BRL1.5 billion - BRL2.0 billion, in 2023 and
2024, and additional cash generation coming from the new stretch
only in 2025. Rumo's leverage should be moderately impacted, with
no material pressures in the rating's downgrade trigger and
refinancing risks.

Business Profile Remains Strong: The railroad sector risks are low,
supported by consistent demand, high barriers to entry and low
competition. Rumo benefits from its market position as the sole
rail transportation company in the South and Midwest regions of the
country, with five concessions to operate more than 13 thousand
kilometers of tracks and access to Brazil's three main ports. Due
to a low cost structure, the company enjoys solid competitive
advantages over truck transportation, which support stable demand
and limits volume volatilities over cycles. The recently added Rumo
Malha Central line and renewed the Rumo Malha Paulista concession,
are credit positives as both rail lines offer opportunities for
capturing greater grain volumes in the covered regions.

FC IDR Capped by Country Ceiling: Rumo's FC IDR and its bonds are
constrained by Brazil's 'BB' Country Ceiling, as the company's
operations are essentially in Brazil and the company does not have
assets or cash held abroad. The FC Negative Outlook reflects the
sovereign's Negative Rating Outlook.

DERIVATION SUMMARY

Rumo's ratings reflect its strong business profile in the railroad
industry in Brazil. The railroad's low cost structure and Rumo's
position as the sole railroad provider in its covered region
provide important competitive advantages, allowing it to have
consistent volume growth and increasing operating cash flows as it
expands operational capacity. The rating is constrained by Rumo's
business concentration in one country, as it only serves Brazil's
agribusiness and industrial sectors, like most of its Brazilian
peers but different from other railroads worldwide, which have a
more diversified region. The company's record of strong cash
generation and its ability to improve its credit metrics over the
last three years are important credit factors.

Rumo's LC IDR is below Brazilian peer MRS S.A.'s LC IDR
(BBB-/Negative). MRS is the best-positioned railroad in the
country, due to its more resilient cargo profile, record of
positive FCF, captive customer base (also shareholders), and lower
net leverage. Additionally, Rumo faces an expectation of negative
FCF during the rating horizon. Rumo's and MRS's LC ratings are
below those of other mature, more geographically diversified and
less leveraged rail companies in Mexico, the U.S. and Canada, such
as Kansas City Southern (BBB/Negative). Rumo's LC IDR is above that
of Hidrovias do Brasil S.A. (HdB; BB/Negative), due to Rumo's
ability to generate more stable operating cash flows and to finance
its large investment to increase volumes. HdB's net leverage is
higher than Rumo's, consistent with its still immature profile, but
it has predictable cash flows and faces low competition.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for Rumo:

-- Agricultural volumes increase 10% annually;

-- Industrial volumes increase per GDP annually;

-- Additional 2 billion RTK and 8 billion RTK in 2021 and 2022,
    respectively, from Rumo Malha Central;

-- Average tariffs increase by the inflation rate in 2021-2024;

-- Total capex of BRL15.3 billion in 2021-2024, with BRL7.4
    billion expected to be invested in 2021-2022.

RATING SENSITIVITIES

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

-- Upgrades in Rumo's LC IDR depends on positive FCF trends and
    maintenance of net leverage below 3.0x;

-- Positive actions toward the sovereign rating may lead to
    positive actions regarding Rumo's FC IDR and the rating of the

    bonds, currently limited by the Brazilian Country Celling.

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

-- An inability to finance capex with long-term and low cost
    debt, pressuring Rumo's debt amortization schedule;

-- Substantial weakening of its EBITDA margin;

-- Net adjusted leverage trends above 3.5x, on a sustained basis.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity: Rumo's liquidity is expected to remain healthy
over the next several years and throughout the investment cycle.
Short-term debt coverage has remained above 2.8x since 2018, and is
expected to be remain above 1.0x over the rating horizon. Rumo's
ability to raise long-term funds to finance negative FCF and
preserve its liquidity is a positive credit consideration. As of
March 31, 2021, Rumo had cash of BRL6.4 billion and consolidated
total debt of BRL15.2 billion, mainly composed of senior notes of
BRL5.4 billion, debt with Banco Nacional de Desenvolvimento
Economico e Social (BNDES) of BRL3.4 billion and debentures of
BRL6.0 billion. Debts due through 2023 totaled BRL3.1 billion. The
company raised a significant amount of debt over the last three
months and has additional approved credit lines to finance
investments, which enhanced its liquidity.

ISSUER PROFILE

Rumo is the Latin America's largest independent rail-based
logistics operator, offering complementary services of railroad
transportation, port terminal and warehousing services. Its service
area extends over Mato Grosso and São Paulo states and other
Southern states of Brazil.

SUMMARY OF FINANCIAL ADJUSTMENTS

-- Principal and Interest on the concession asset (resulted from
    IFRS-16) are considered as "rental expense" and impacts
    EBITDA;

-- Confirming (reverse factoring) are considered as debt;

-- Fitch considers restricted cash (including long term) as
    readily available liquidity;

-- Net derivatives are considered as debt;

-- Dividends from associates and minorities are adjusting EBITDA.




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

ESDEC SOLAR: S&P Assigns 'B' Issuer Credit Rating, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings assigned its 'B' ratings to Dutch provider of
rooftop solar mounting solutions Esdec Solar Group B.V., as well as
its $375 million term loan B (TLB) and $100 million revolving
credit facility (RCF). The ratings are in line with the preliminary
ratings S&P assigned on Aug. 3, 2021.

The stable outlook reflects S&P's view that Esdec will gradually
deleverage over the next two years, thanks mainly to increasing
EBITDA due to rising demand for renewable energy solutions.

Esdec successfully issued a TLB and RCF to refinance its capital
structure and fund a shareholder distribution. As part of the
transaction, Esdec obtained:

-- A $375 million TLB due 2028; and
-- A $100 million RCF due 2026, undrawn at closing.

S&P said, "The company's used the transaction's proceeds to
refinance its old capital structure, pay a dividend to
shareholders, and meet transaction costs, fees, and expenses. We
note that the dividend recapitalization transaction increased the
company's gross debt leverage to about 4.1x at closing from about
2.1x pro forma June 2021. Esdec has been majority-owned and
controlled by Gilde Buy Out Partners since 2018, and this dividend
represents the first major distribution since the initial
investment. We estimate the company will have an S&P Global
Ratings-adjusted debt-to-EBITDA ratio of 4.5x-5.0x by the end of
this year, mostly because we expect that an increase in raw
material prices will weigh on profitability and lead to some
volatility in credit metrics. Nevertheless, we believe that the
company will manage to deleverage to well below 4.5x from 2022,
supported by robust demand for solar energy that should fuel
significant revenue growth."

Esdec benefits from a solid market position as the leading provider
of rooftop solar mounting systems in the U.S. and Europe. Esdec has
a strong market position as global developer, manufacturer, and
supplier of residential, commercial, and industrial rooftop solar
mounting systems in the U.S. and Netherlands, with a market share
of about 52% and 45% respectively. Although the revenue
contribution from other European countries is still limited, Esdec
also operates in Belgium and the Nordic region, where it holds a
22%-23% market share. Over the past few years, Esdec has developed
a strong reputation for innovative, reliable, and high-quality
products at a medium price. Nevertheless, S&P notes that the
addressable market is somewhat limited, with rooftop solutions
accounting for only about one-third of all mounting systems for
solar panels. Moreover, the market is rather fragmented, with
several small players providing specific solutions in the local
markets.

An asset-light business model and flexible cost base provide Esdec
with high profitability. Esdec's capital investments are
significantly lower than for other companies operating in the
building materials industry, since the company outsources the
manufacturing of its products. This leads to capital expenditure
(capex) staying below 2% of sales, at about EUR6 million-EUR7
million per year. This business model also allows for significant
flexibility in the cost base, with the cost of goods sold
accounting for more than 80% of the overall operating expense.
Combined, these factors lead to resilient and strong profitability,
with EBITDA margins remaining well above 18% in our forecast,
despite raw material price increases. Moreover, S&P notes that
Esdec has demonstrated good working capital management and very
efficient logistics in previous years.

S&P said, "We view Esdec's size and scope as a relative weakness
that constrains our business risk assessment. With end-2020 revenue
of EUR244 million, or about EUR286 million including pro forma
acquisitions, Esdec's revenue is relatively small, compared with
that of similar European and global players. For example,
U.S.-based Array Technologies generated about 3x Esdec's revenue
and about 2.5x its EBITDA in 2020. Also, compared with small
European building materials players such as Corialis and
Stellagroup, we believe that Esdec's operations are limited.

"With all sales concentrated in rooftop mounting systems, we
believe that Esdec's product offering is limited. The entire range
of products relates to rooftop solar racking and mounting
solutions, most of which are sold to the residential segment,
accounting for about 75% of sales. We note that product diversity
is limited compared with that of similarly rated peers, with all
products intended for the rooftop solar energy industry. In terms
of additional services to customers, Esdec provides installation
support, installer training, onsite education, and online design
assistants. Although Esdec views this as one of its key
differentiating factors from competitors, we believe the added
services are relatively easy to replicate and this competitive
advantage could be challenged. Partly counterbalancing these
weaknesses, Esdec's product portfolio benefits from 170 patents,
and 40 patents are pending, providing the company with some
protection from new entrants.

"Although Esdec recently expanded its operations to emerging
markets, most sales are generated in the U.S. and Netherlands. As
of end-2020, Esdec generated about 68% of its sales in the U.S. and
the remaining 32% in Europe, with Netherlands and Belgium
accounting for about 24% and 5% of total revenue, respectively.
Although Esdec also operates in the Nordics, Southern Europe, the
U.K., Germany, Austria, and Switzerland, its presence in these
areas is very limited, with the combined revenue being less than 3%
of total sales. We note that, in 2020, the company started
greenfield operations in India, with the goal of establishing a
solid local position in a large and rapidly expanding market, as
well as extending its supply chain to serve local and surrounding
customers. Although we note that Esdec is actively working to
improve its geographic diversity, we still see its footprint as
limited compared with that of other players in the industry.

"Esdec shows some concentrations in its suppliers and customer
base. We believe that Esdec's suppliers and customer base are
somewhat concentrated, with the top-three suppliers and top-three
customers accounting for about 24% and 37% of sales, respectively.
While these ratios are higher than for other building materials
companies with similar size and scope, we note that Esdec is
similar to Array Technologies, where the top-10 customers account
for almost 60% of sales for both companies.

"We believe that Esdec's focus on solar power will significantly
support top-line growth. Solar energy, and rooftop photovoltaic
installation specifically, have been expanding significantly, with
the compound annual growth rate at about 24% from 2017 to 2020, and
we expect this trend to continue. We also note that many
governments are currently providing incentives to encourage
businesses and householders to invest in renewable energy
technologies, which should further support demand for Esdec's
products. These factors lead to our expectation that the company
will manage to achieve organic top-line growth exceeding 20% over
the next two years.

"We forecast adjusted EBITDA margins of 19%-21% in 2021-2022. Esdec
showed very good profitability in 2020, with adjusted EBITDA
margins at about 25%, mostly thanks to a reduction of operating
leverage and the lower cost of goods sold. However, since the
second half of 2020, raw material prices rose sharply, particularly
for steel and aluminum, which might put significant pressure on
Esdec's profitability. Steel and aluminum account for almost 50% of
the company's cost base. For these reasons, we believe the EBITDA
margin will decline to 19%-21% in 2021 and 2022, with implemented
price increases only partly compensating for the rapid rise in raw
material costs.

"We expect Esdec's adjusted debt to EBITDA will reduce to slightly
below 5.0x in 2022 from about 5.4x-5.6x in 2021. We believe the
current inflationary environment for raw material prices will lead
to some volatility in credit metrics, with adjusted debt to EBITDA
at 4.5x-5.0x in 2021, compared with about 4.1x at transaction
closing. Nevertheless, we expect that resilient top-line growth
will support absolute EBITDA in the coming years, leading to
leverage of 3.6x-4.3x-in 2022. Although we do not factor any
acquisitions into our base case, we note that the company made
several acquisitions in the past, and we believe that some of the
rating headroom could be used for external growth.

"We think Esdec's financial-sponsor ownership limits the potential
for leverage reduction over the near term. We do not deduct cash
from debt in our calculations, owing to Esdec's private-equity
ownership. In the medium term, a track record of deleveraging and
the financial sponsor's commitment to keeping adjusted debt to
EBITDA below 5.0x would be necessary for us to consider revising
our financial profile assessment upward.

"The stable outlook reflects our view that Esdec will show
resilient performance in 2021-2022, supported by stable
profitability and good growth prospects in end markets. We expect
adjusted debt to EBITDA will gradually decrease to below 4.5x over
the coming two years, and we anticipate that Esdec will continue to
generate positive free operating cash flow (FOCF). The deleveraging
will essentially stem from absolute EBITDA growth, since we do not
net cash. Headroom at the current rating level is comfortable."

Downside scenario

S&P could lower the ratings if:

-- Deterioration of business conditions or an adverse regulatory
change hamper Esdec's business performance, resulting in much
weaker margins that could reduce FOCF, with leverage staying above
6.0x and threatening the sustainability of Esdec's capital
structure; or

-- The company undertakes more aggressive financial policies (such
as additional dividend payouts or an unexpectedly large
debt-financed acquisition), which would result in inability to
deleverage as per S&P's base case.

Upside scenario

S&P could consider an upgrade if:

-- S&P Global Ratings-adjusted debt to EBITDA drops below 4.0x on
a prolonged basis, while FOCF remains solid; and

-- The sponsor commits to maintaining lower leverage.




===============
P O R T U G A L
===============

ULISSES FINANCE 2: Moody's Gives (P)B1 Rating to EUR3.7MM E Notes
-----------------------------------------------------------------
Moody's investors Service has assigned the following provisional
ratings to Ulisses Finance No. 2 to be issued by TAGUS-Sociedade de
Titularizacao de Creditos, S.A. ("the issuer"):

EUR203.7M Class A Asset-Backed Floating Rate Notes due September
2038, Assigned (P)Aa3 (sf)

EUR10M Class B Asset-Backed Floating Rate Notes due September
2038, Assigned (P)A2 (sf)

EUR20M Class C Asset-Backed Floating Rate Notes due September
2038, Assigned (P)Baa2 (sf)

EUR11.3M Class D Asset-Backed Floating Rate Notes due September
2038, Assigned (P)Ba2 (sf)

EUR3.7M Class E Asset-Backed Floating Rate Notes due September
2038, Assigned (P)B1 (sf)

Moody's has not assigned a rating to the Class F Asset-Backed
Floating Rate Note, Class G Floating Rate Note and Class Z Note due
September 2038 amounting to EUR4.3M.

RATINGS RATIONALE

The transaction is a one year revolving cash securitisation of auto
loans originated by 321 Credito IFIC S.A ("321C", NR). 321C is a
Portuguese specialized lending company 100% owned by Banco CTT
(N.R.).

As of July 30, 2021, the pool consisted of 25,151 loans with a
weighted average seasoning of 1.7 years, and a total outstanding
balance of approximately EUR 250 million. The weighted average
remaining maturity of the loans is 80 months. The securitised
portfolio is highly granular, with top 10 borrower concentration at
0.23% and the portfolio weighted average interest rate is 8.2%. The
portfolio is collateralised by 99.5% used cars.

Moody's have received a breakdown of vehicles by engine type. A
high percentage of the portfolio (88.6%) are Diesel car with a
weighted average car age of 7.8 years.

According to Moody's, the transaction benefits from credit
strengths such as (i) the granularity of the portfolio, (ii) the
strong excess spread-trapping mechanism through a 3 months
artificial write off mechanism, (iii) the high average interest
rate of 8.2%, (iv) very good performance track record of previous
transaction (Ulisses Finance No. 1), (v) Servdebt Capital Asset
Management, S.A. (NR) appointed as back up servicing at closing and
(vi) cap agreement to mitigate interest rate risk provided by
Deutsche Bank AG.

However, Moody's notes that the transaction features some credit
weaknesses such as (i) a one year revolving structure which could
increase performance volatility of the underlying portfolio,
partially mitigated by early amortisation triggers, revolving
criteria both on individual loan and portfolio level and the
eligibility criteria for the portfolio, (ii) a complex structure
including interest deferral triggers for junior notes, pro-rata
payments on all classes of notes after the end of the revolving
period, (iii) the high proportion of used car used cars 99.5% with
a relatively high 95.5% WA LTV.

Moody's analysis focused, amongst other factors, on (1) an
evaluation of the underlying portfolio of receivables and the
eligibility criteria; (2) the revolving structure of the
transaction; (3) historical performance on defaults and recoveries
from the Q1 2015 to Q1 2021 vintages provided on 321C total book;
(4) the credit enhancement provided by the excess spread and the
subordination; (5) the liquidity facility available for Classes A-C
and the liquidity support available in the transaction by way of
principal to pay interest for all classes and (6) the overall legal
and structural integrity of the transaction.

MAIN MODEL ASSUMPTIONS

Moody's determined the portfolio lifetime expected defaults of
5.5%, expected recoveries of 30.0% and portfolio credit enhancement
("PCE") of 18.0%. The expected defaults and recoveries capture
Moody's expectations of performance considering the current
economic outlook, while the PCE captures the loss Moody's expect
the portfolio to suffer in the event of a severe recession
scenario. Expected defaults and PCE are parameters used by Moody's
to calibrate its lognormal portfolio loss distribution curve and to
associate a probability with each potential future loss scenario in
Moody's cash flow model to rate Auto and Consumer ABS.

Portfolio expected defaults of 5.5% are in line with Iberian Auto
loan ABS average and are based on Moody's assessment of the
lifetime expectation for the pool taking into account (i) historic
performance of the book of the originator, (ii) previous
transactions used as a benchmark, and (iii) other qualitative
considerations.

Portfolio expected recoveries of 30.0% is in line with Iberian Auto
loan ABS average and are based on Moody's assessment of the
lifetime expectation for the pool taking into account (i) historic
performance of the book of the originator, (ii) benchmark
transactions, and (iii) other qualitative considerations.

PCE of 18.0% is in line with Iberian Auto loan ABS average and is
based on Moody's assessment of the pool taking into account the
relative ranking to the originators peers in the Iberian and EMEA
consumer ABS market. The PCE level of 18.0% results in an implied
coefficient of variation ("CoV") of approximately 67.5%.

ESG - Environmental considerations:

The public and political debate about the future of combustion
engines and in particular diesel engines given the shift towards
alternative fuel vehicles such as electric cars is being reflected
in declining new diesel car registrations in several EMEA markets.
This transaction has high exposure to diesel engines with Euro 5
emission standards and below. Vehicles with older or larger engines
with elevated carbon dioxide emissions have a higher likelihood of
obsolescence and their recovery values are more sensitive to
changes in carbon emissions regulations and shifts in consumer
demand. Additional scenario analysis has been factored into Moody's
rating assumptions for these segments.

METHODOLOGY

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
September 2021.

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

Factors or circumstances that could lead to an upgrade of the
ratings of the notes would be (1) better than expected performance
of the underlying collateral; (2) significant improvement in the
credit quality of 321C; or (3) a lowering of Portuguese's sovereign
risk leading to the removal of the local currency ceiling cap.

Factors or circumstances that could lead to a downgrade of the
ratings would be (1) worse than expected performance of the
underlying collateral; (2) deterioration in the credit quality of
321C; or (3) an increase in Portuguese's sovereign risk.



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

LENTA LLC: Fitch Raises LongTerm IDRs to 'BB+', Outlook Stable
--------------------------------------------------------------
Fitch Ratings has upgraded Lenta LLC's Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDRs) to 'BB+' from 'BB'.
The Outlook on the IDRs is Stable.

The upgrade reflects Fitch's expectations that Lenta will maintain
its conservative leverage metrics achieved in 2020, despite the
company's plans of material expansion in supermarkets and
proximity- store formats aimed at doubling its revenue by 2025. The
upgrade also reflects, critically, Fitch's assumption that the
company will continue to adhere to its capital-allocation policy,
targeting a maximum net debt to EBITDA of 1.5x, by adjusting
potential shareholder distributions accordingly in a period of
heightened capex and/or in case of any material M&A.

The ratings of Lenta remain supported by its good market position
as the fourth-largest food retailer in Russia and Fitch's
expectation that it will be able to continue growing its
like-for-like (LfL) sales over the medium term by maintaining an
attractive customer-value offering.

KEY RATING DRIVERS

Accelerated Expansion: Lenta's updated strategy aims to double
revenue to RUB1 trillion by 2025, both via organic growth and
acquisitions. Most of the store openings are planned in
supermarkets and proximity-stores formats, mainly on leased spaces,
which are less capex-intensive than expansion in the hypermarket
format. Fitch sees moderate execution risk around the new strategy,
as growing consumer demand for smaller stores in Russia and Lenta's
good record in rolling out the company's supermarket chain is
balanced with increasing market saturation and moderate pressure on
profitability that Fitch assumes for 2021-2024. Fitch therefore
assumes fewer new openings relative to the company's plans.

Higher Capex Intensity Peak: Retail chain expansion, continued
development of the online segment and Lenta's efficiency
initiatives would also require increased investments in logistics
infrastructure, IT and digital marketing. Fitch therefore expects
capex intensity to peak at 5%-5.5% of revenue in 2022-2023; up from
1.7% in 2020.

Moderate Profitability Decline: Fitch assumes Lenta's EBITDA margin
to gradually decline toward 6.5% by 2024 (2020: 8.5%) and funds
from operations (FFO) margin toward 5% (2020: 6.2%). This is due to
growing lease costs due to increasing leased retail space, and
potential pressure on gross margin from increasing competition
arising from both market consolidation by existing retailers and
the evolution of new retail formats. This is a more conservative
assumption than Lenta's strategy of maintaining profitability with
the support of efficiency initiatives, building up scale in
supermarkets and proximity-stores and anticipated improvement in
profitability in the online business.

Neutral to Positive FCF: Despite assumed declining profitability
Fitch estimates it will still be sufficient to cover most of
Lenta's expected capex needs in 2021-2024 which, in the absence of
material shareholder distributions, would result in neutral to
positive free cash flow (FCF) margin over the next four years which
is adequate for the 'BB' rating category in food retail.

Conservative Capital Structure: Despite ambitious expansion plans
Lenta aims to maintain its conservative capital-allocation policy
with a net debt to EBITDA target of 1.5x (2020: 1.7x
Fitch-calculated). Fitch estimates that this level would correspond
to up to 3.5x FFO adjusted gross leverage, which is the maximum
compatible with the assigned rating. Fitch expects such a capital
structure to be sustainable, in the absence of large dividend
payments or debt-funded M&A, which Fitch would treat as an event
risk.

Improved Diversification: Lenta has continued to diversify away
from its core hypermarket format (2020: 90% of sales) by opening
more supermarkets and proximity stores in 2021. Fitch assumes 600
to 700 new stores annually in these formats in 2022-2024. Fitch
estimates that together with the recent acquisitions of Billa
Russia Supermarket chain in the Moscow region and convenience store
chain Semya in the Ural region, both completed in August 2021, this
will allow Lenta to grow the other format's contribution up to 32%
of revenue in 2022 and up to 50% by 2024, enhancing its business
profile.

Improving Business Profile: Growing market position and scale, as
well as improving diversification will help enhance Lenta's
business risk profile toward the high 'BB' category, as captured in
the ratings upgrade. The ratings also continue to reflect the
strong position of Lenta's hypermarkets format in Russia compared
with peers', with its smaller-sized stores delivering stronger
results than big-box retailers'. Continued focus on differentiating
Lenta from competitors through assortment, private labels and
promotional activity, in Fitch's view, is key to maintaining
healthy LfL sales growth in its core format over the medium term.

Subdued Consumer Confidence, Intense Competition: Competition in
Russian food retail remains intense, which Fitch does not expect to
ease over the next two to three years. With accelerated market
consolidation, expansion of new retail formats and further roll-out
of new stores by large food retailers, selling space growth in the
sector is likely to continue to outpace growth in consumption. The
latter is constrained by weak consumer purchasing power with
limited improvement in real disposable incomes in Russia.

Fixed Charge Coverage May Weaken: Lenta has the strongest FFO fixed
charge coverage of 2.5x to 3.0x among Fitch's peer group of large
Russian food retailers. This is mainly due to Lenta's highest
proportion of owned stores as well as low leverage, underpinning
the company's financial flexibility for the rating. With a growing
number of leased stores, rising lease costs will likely result in
gradual erosion in its FFO fixed charge coverage toward 2.2x by
2024, which is still adequate for the rating, versus close peers'
(X5: below 2x) and the 2.5x 'BBB' rating category median in food
retail.

DERIVATION SUMMARY

Fitch applies its Food-Retail Navigator Framework in its assessment
of Lenta's rating profile. Compared with its peer group, Lenta is
rated in line with its closest peer, the largest Russian food
retailer X5 Retail Group N.V. (BB+/Stable), as its smaller market
position and scale is balanced by its improving diversification and
lower leverage. Fitch expects these strengths will help to mitigate
a still developing business model as Lenta expands its supermarkets
and convenience retail formats whilst maintaining solid
profitability for its rating level.

Comparing with international retail chains, such as Tesco PLC
(BBB-/Stable), Lenta has a smaller business scale, more-limited
geographic diversification but lower leverage - expected to be
around 4.0x for Tesco (retail-only). Furthermore, Lenta's ratings
take into consideration the higher-than-average systemic risks
associated with the Russian business and jurisdictional
environment. These weaknesses are partly offset by structurally
higher profitability in the Russian food retail market.

No Country Ceiling constraint or parent/ subsidiary linkage aspects
apply to these ratings.

KEY ASSUMPTIONS

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

-- Revenue to grow 9.7% in 2021, reflecting normalisation in LFL
    sales following the Covid-19 impact in 2020 and the
    acquisition of Billa and Semya, and 20%-25% per year on the
    full-year effect of the acquisitions and the opening on
    average of around 600 stores per annum;

-- EBITDA margin declining to 6.4% by 2024 from 7.5% in 2021,
    mainly as a result of increasing lease costs as the opening of
    primarily leased stores is partially offset by cost-saving
    measures;

-- Annual capex between 3.5% and 5.5% of revenues to 2024;

-- No large-scale M&A through to 2024;

-- Dividend payments to start from 2023 (Fitch's modelling
    assumption).

RATING SENSITIVITIES

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

-- Growing business scale and higher market share with EBITDAR
    above USD1 billion (2020: USD0.6 billion);

-- Healthy LfL sales growth relative to peers';

-- Maintenance of strong FFO margin (2020: 6.2%) at above 5% and
    positive FCF margin (2020: -4.1%);

-- FFO-adjusted gross leverage below 3.0x on a sustained basis
    (2020: 3.1x), coupled with a conservative financial policy;

-- FFO fixed-charge coverage above 2.5x on a sustained basis
    (2020: 2.8x).

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

-- Deterioration in LfL sales dynamic relative to close peers',
    along with an inability to drive operating efficiencies,
    resulting in FFO margin erosion to below 5% and neutral or
    negative FCF;

-- FFO-adjusted gross leverage above 3.5x on a sustained basis;

-- FFO fixed-charge coverage declining to below 2.2x on a
    sustained basis.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Sufficient Liquidity: At end-June 2021, Lenta had RUB29.9 billion
cash which, which together with positive projected FCF generation
during 2021, should be sufficient to cover short-term debt of
RUB30.4 billion. Fitch expects neutral to positive FCF generation
from 2022, due to an ambitious expansion strategy and Fitch's
expectation of dividend payments from 2023. Lenta's liquidity
position is also supported by good access to capital markets as
evident in the refinancing during 1H21 of upcoming maturities.

In addition, Lenta has access to RUB189.6 billion uncommitted
credit facilities, which are not included in Fitch's liquidity
assessment. Reliance on uncommitted credit lines is standard
practice for Russian corporates.

ISSUER PROFILE

Lenta is the fourth-largest food retailer in Russia, operating
hypermarkets, supermarkets and recently launched proximity stores
format under the brand "Lenta Mini".

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.


ROZNICHNOYE I KORPORATIVNOYE: Liabilities Exceed Assets
-------------------------------------------------------
The provisional administration to manage Roznichnoye i
Korporativnoye Strakhovaniye LLC (hereinafter, the Company) in the
course of its inspection of the Company established the signs of
illegal actions performed by its management bodies and owners
leading to the Company's inability to satisfy creditors' claims
under monetary obligations and to perform its obligation to make
mandatory payments, according to the Bank of Russia's Press
Service.

According to the assessment by the provisional administration, the
value of the Company's assets is insufficient to fulfil its
obligations to creditors.

On July 15, 2021, the Arbitration Court of the City of Moscow
recognised the Company as insolvent (bankrupt).

As the Bank of Russia reasonably presumes that the Company's
officials were engaged in financial operations suggestive of
criminal offence, the Bank of Russia submitted relevant information
to the Prosecutor General's Office of the Russian Federation and
the Investigative Committee of the Ministry of Internal Affairs of
the Russian Federation for consideration and procedural
decision-making.

The provisional administration to manage the Company was appointed
by Bank of Russia Order No. OD-2175, dated December 25, 2020.




=========
S P A I N
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ALMIRALL SA: Moody's Affirms Ba3 CFR, Rates New EUR250MM Notes Ba3
------------------------------------------------------------------
Moody's Investors Service has assigned a Ba3 rating to the new
EUR250 million guaranteed senior unsecured notes issued by
Almirall, S.A. At the same time, Moody's has affirmed Almirall's
existing Ba3 corporate family rating (and its Ba3-PD probability of
default rating. The outlook is stable.

RATINGS RATIONALE

The assignment of a Ba3 rating to the new senior unsecured notes
issued by Almirall, in line with its Ba3 CFR, reflects their pari
passu ranking with the company's other debt instruments, which are
all unsecured and include a EUR150 million syndicated loan, a EUR80
million EIB loan and a EUR275 million revolving credit facility
(RCF). All of Almirall's debt instruments are issued at the level
of the parent company, Almirall S.A., which is also an operating
company. While the syndicated loan, EIB loan and RCF are
unguaranteed, the new notes will be guaranteed by several operating
companies. Overall, the issuer and the guarantors of the notes
represent about 90% of the consolidated EBITDA, as reported by the
company, for the 12 months to June 30, 2021.

The affirmation of the Ba3 CFR reflects the largely neutral effect
of the transaction on the company's credit metrics. Proceeds from
the new notes will be primarily used to repay Almirall's existing
EUR250 million convertible bond maturing in December 2021. The
transaction has no impact on the company's leverage, with a
Moody's-adjusted debt/EBITDA ratio of 2.6x for the 12 months to
June 30, 2021 and pro forma for the transaction, positioning
Almirall's solidly in its rating category.

Almirall's Ba3 CFR continues to reflect its moderate exposure to
generic competition; the good sales potential of its late-stage
pipeline, in particular of lebrikizumab, a drug currently developed
to treat atopic dermatitis; its robust credit ratios and cash flow
generation which provide a degree of flexibility for acquisitions;
and a very good liquidity profile.

However, the rating also takes into account Almirall's small size,
with revenue of EUR807 million in 2020, which limits economies of
scale and increases earnings volatility; its high geographical
concentration in Europe, which accounted for about 80% of revenue
in 2020; its substantial exposure to dermatology, which has been a
therapeutic area significantly affected by the coronavirus
pandemic; and some event risk related to potential acquisitions.

Following the pandemic effects of 2020, Almirall's operating
performance has been recovering since H1 2021. Almirall has several
new dermatology drugs, including Ilumetri in psoriasis and Klisyri
in actinic keratosis, that will support revenue growth in the low
to mid-single digits in percentage terms in the next two to three
years, but its revenue and cash flow could significantly grow
beyond 2023 if lebrikizumab, a molecule currently in Phase 3
clinical trials, is successfully launched. Almirall owns the rights
to sell lebrikizumab in Europe. Recent study results were solid,
but full clinical trial data on the drug will be available in 2022
with a launch currently expected in H2 2023. At the time of its
launch, lebrikizumab will compete against already-launched drugs,
in particular Dupixent, marketed by Sanofi (A1 stable).

Almirall's liquidity is very good, supported by a cash balance of
EUR231 million as of June 30, 2021, access to a EUR275 million
undrawn RCF maturing in July 2024, and free cash flow (FCF)
generation that Moody's projects to be around EUR100 million
annually in 2021-22. Following the new notes issuance, Almirall's
next large debt maturity is the syndicated loan in 2023. The RCF
contains one maintenance financial covenant and Almirall has ample
leeway under this covenant.

RATIONALE FOR STABLE OUTLOOK

The stable rating outlook reflects Moody's expectation that
Almirall will grow its EBITDA in the low to mid-single digits in
percentage terms over the next 12-18 months, supported by the
growth of its new dermatology products, which will further improve
its credit metrics. The stable outlook also considers some
acquisition risk, but Almirall has flexibility to do bolt-on
transactions at its current rating level, in line with the
company's objective of maximum reported net debt/EBITDA of
2.0x-2.5x.

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

Moody's could consider upgrading Almirall's rating if the company
shows sustained growth in FCF and EBITDA, on a Moody's-adjusted
basis, and its Moody's-adjusted gross debt/EBITDA is sustained
below 2.5x.

Conversely, Moody's could consider downgrading Almirall's rating if
Moody's-adjusted gross debt/EBITDA exceeds 3.5x or Moody's-adjusted
cash flow from operations (CFO)/debt falls below 20% for a
prolonged period. A shift towards a more aggressive financial
policy, with significant debt-financed acquisitions, could also
result in a downgrade.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Pharmaceutical
Industry published in June 2017.

COMPANY PROFILE

Headquartered in Barcelona, Spain, Almirall is a publicly listed
pharmaceutical company that researches, develops, produces and
markets a fairly diversified portfolio of in-house developed drugs
and in-licensed drugs in therapeutic areas including dermatology,
respiratory, gastrointestinal and pain relief. In 2020, Almirall
generated EUR807 million of revenue. The Gallardo family is its
largest shareholder, with a close to 60% stake.



=====================
S W I T Z E R L A N D
=====================

CEVA LOGISTICS: Moody's Ups CFR to Ba3, Outlook Remains Positive
----------------------------------------------------------------
Moody's Investors Service has upgraded CEVA Logistics AG's
corporate family rating to Ba3 from B2 and its probability of
default rating to Ba3-PD from B2-PD. The outlook remains positive.

RATINGS RATIONALE

The upgrade to Ba3 from B2 was driven by an increasing support and
financial integration of CEVA into CMA CGM S.A. (CMA), evidenced in
the termination of CEVA's $585 million senior revolving credit
facility, facilitated by the company's parent CMA refinancing and
upsizing it to a $1.3 billion facility available to both companies.
As CMA has proven to support CEVA on numerous occasions following
its acquisition in 2019 and that CEVA has no outstanding external
financial debt besides its securitization program, Moody's now
views CEVA's credit profile more closely linked to that of CMA's.
Moody's believes that the very close relationship between CMA and
CEVA will translate into even higher likelihood of both financial
and operational support going forward.

CEVA's profitability has gradually strengthened over the last 18
months, supporting Moody's view that the company can become free
cash flow positive during 2022. This is driven both by a strong
market environment but also by ongoing efficiency improvements and
cost savings.

RATIONALE FOR POSITIVE OUTLOOK

The positive outlook is anchored in the positive outlook for CMA.

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

Positive ratings pressure is tightly linked to CMA CGM's
performance and as such, positive ratings pressure on CMA would
most likely impact CEVA's rating.

Negative ratings pressure could arise if CEVA was unable to
continue improving operating performance, including generating
positive free cash flow on a sustainable basis, in combination with
a lower likelihood of financial support from CMA. Furthermore, any
negative ratings pressure on CMA would most likely impact CEVA's
rating.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Surface
Transportation and Logistics published in May 2019.

COMPANY PROFILE

CEVA is one of the leading third-party logistics providers in the
world (number five in Contract Logistics, number 14 in Freight
Management). CEVA offers integrated supply-chain services through
the two service lines of Contract Logistics and Freight Management
and maintains leadership positions in several sectors globally
including automotive, high-tech and consumer/retail. The group is
fully owned by CMA CGM group since April 2019. For the last twelve
months that ended June 30, 2021, the company generated revenue of
$8.6 billion and EBITDA of $701 million.

GATEGROUP HOLDING: Moody's Affirms Caa2 CFR, Outlook Now Stable
---------------------------------------------------------------
Moody's Investors Service has affirmed the Caa2 corporate family
rating and Caa2-PD probability of default rating of gategroup
Holding AG (gategroup or the company), an international airline
catering group. The outlook on all ratings has been changed to
stable from negative.

RATINGS RATIONALE

The change in outlook to stable reflects gategroup's improved
liquidity following the debt restructuring in April 2021 when the
company extended the maturity of its loans and notes by five years
to October 2026 and February 2027 respectively. It is also driven
by the rating agency's expectations of a gradual recovery in
airline passenger volumes over the next 12-18 months.

Since the beginning of the pandemic gategroup has taken steps to
strengthen its liquidity. These included significant reduction of
personnel cost through furloughs, unpaid leave, pay cuts and
lay-offs. Other measures included reducing capex to the minimum
maintenance level and working capital management has been
optimized. As a result, although gategroup's total cash burn of
around CHF580 million was significant, it came at a lower level
compared to Moody's previous expectation and has been fully covered
by the shareholder and government support. More negatively, the
support has to a large extent come in form of debt, which will
slowdown deleveraging post-pandemic.

According to the International Air Transport Association (IATA),
global Revenue Passenger Kilometres (RPK) have been recovering and
reached 47% [1] of 2019 level in July, which compares favourably to
20%-25% recorded during summer 2020. gategroup's revenue recovery
is linked global RPK given the company's broad presence across many
countries. However, Moody's expects the company's profits recovery
to somewhat lag, because of significant exposure to international
and business travel, which prior to the pandemic, contributed
higher margins, but are expected to recover slower than overall
passenger volumes. Moody's expects gategroup's revenue to remain
below 2019's levels by around 50% in H2 2021 and gradually recover
to 15% below 2019 levels in 2023. The recovery in airline passenger
traffic may slow or reverse if vaccine-resistant COVID variants
emerge, or if infection rates and hospitalization rates are
sustained at very high levels. Moody's expects international
long-haul travel to remain constrained, with uncertainty over the
bilateral reopening of key long-distance travel corridors.

gategroup has been working on securing additional external
liquidity, having already received more than CHF250 million of
loans and grants in 2020. Moody's understands that that company is
actively working on obtaining more government support in other
countries, including Germany and Switzerland.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects expected growth of the company's
revenues and cash flows supported by gradual recovery in the
airline industry, although from a low base. The outlook is also
based on expectations that the company will maintain sufficient
liquidity over the next 12-18 months.

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

Positive rating pressure would require: (1) evidence of material
and sustained recovery in revenues and EBITDA, (2) expectations for
improvement in leverage with a lower risk of an unsustainable
capital structure, (3) maintaining adequate liquidity.

Moody's could downgrade gategroup's ratings if there are
expectations of an increased risk of a default, or liquidity
deterioration.

LIQUIDITY

gategroup's liquidity is adequate and supported by CHF275 million
cash on balance sheet as of June 2021 and CHF246 million available
under the convertible term loan from the owners. gategroup's EUR415
million RCF due in October 2026 remains fully drawn. Moody's also
expects the company's free cash flow to remain significantly
negative during H2 2021 and H1 2022 with a potential to turn
positive during summer 2022 depending on the pace of recovery. The
covenants on RCF and term loan were modified to include only a
minimum liquidity test.

STRUCTURAL CONSIDERATIONS

gategroup's debt capital structure consists of a EUR250 million
unsecured term loan, a EUR415 million unsecured RCF due 2026,
EUR475 million subordinated convertible loan and CHF350 million
unsecured bonds due 2027, all of which are unrated.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Moody's regards the coronavirus pandemic as a social risk under its
ESG framework, given the substantial implications for public health
and safety. The pandemic has caused in a significant decrease in
travel volumes, resulting in a long-lasting negative effect on
gategroup and on the whole airline industry.

PRINCIPAL METHDOLOGY

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

COMPANY PROFILE

gategroup Holding AG (gategroup) is a Switzerland-based independent
provider of airline catering and logistic services. As of December
31, 2019, gategroup operated more than 200 facilities in 60
countries and territories in six continents, serving more than 700
million passengers annually and more than 300 customers worldwide.
Its core activities are located in the US, France and Switzerland,
which together accounted for 51% of the company's revenue in 2019.
In 2019, the company generated around CHF5 billion in revenue and
reported EBITDA of CHF441 million. gategroup is owned by the
investment company Temasek (based in Singapore).



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U N I T E D   K I N G D O M
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EVRAZ PLC: S&P Affirms 'BB+' Issuer Credit Ratings, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+' local and foreign currency
issuer credit ratings on Evraz PLC.

S&P said, "The stable outlook indicates that we expect Evraz to
maintain very comfortable headroom over our 45% FFO-to-debt
threshold for a 'BB+' rating under the current base case including
the coal division.

"We are not certain that Evraz will sustain the current strong
credit ratios, particularly if it deconsolidates its coal division,
due to the company's unchanged financial policy. Supported by
stronger EBITDA that is fueled by higher steel and coking coal
prices, we believe Evraz's FFO to debt could reach 100% in 2021 and
stay around 60%-75% in 2022-2023, which is significantly higher
than our 45% threshold for the current rating level under normal
industry conditions. Still, even though Evraz's FFO to debt could
be commensurate with a higher rating, we believe its unchanged
financial policy provides insufficient protection to these improved
metrics against negative market developments. Evraz's financial
policy targets net debt to EBITDA of no higher than 2x (roughly
equal to FFO to debt of 40%), allows for a sizable maximum net debt
of $4 billion (we expect about $3 billion at year-end 2021), and
has formal limitations on dividends only at net debt to EBITDA of
3x (which is much greater than our threshold for a higher rating).
We believe that if the coal division is deconsolidated, Evraz may
not be able to sustain FFO to debt above 60% because, depending on
the terms of the deconsolidation, Evraz might have to further
reduce debt significantly, which the current financial policy does
not necessarily support. We therefore believe that a potential
upgrade to 'BBB-' would hinge on a commitment to lower leverage,
similar to that which Evraz's closest peers, Severstal and NLMK,
have made.

"Record high steel prices and recovering coking coal prices will
contribute to strong operating performance in 2021. We expect steel
prices to be on average up to 40% higher in 2021, versus 2020, then
decline by up to 15% in 2022 and a further 5% in 2023. Accordingly,
Evraz's EBITDA will roughly double this year to $4.2 billion-$4.4
billion, compared with $2.2 billion in 2020, but will meaningfully
moderate to $3.1 billion-$3.3 billion in 2022 with a further
decline to $2.6 billion-$2.8 billion in 2023. Steel demand has
soared since late 2020 and in 2021, thanks to a combination of
restocking at supply chains and strong demand from the industry, as
the world economy recovers from the pandemic-driven downturn. With
steel supply yet constrained from the production cuts of 2020, this
has created an imbalance, triggering a surge in steel prices, with
the hot rolled coil price exceeding $1,100 per ton (/ton) in the
Russian domestic market, while the export price exceeded
$1,000/ton. Prices have moderated as supply and demand imbalances
have eased and we expect this to continue into 2022-2023. Coking
coal prices have also picked up in the second half of 2021,
contributing to an expectation of stronger EBITDA at Evraz, which
sells roughly 12 million tons of coal per year externally.

"We continue to view the potential deconsolidation of the coal
division as neutral for the current rating, although somewhat
limiting the possibility of an upgrade. We understand that Evraz
continues to work toward deconsolidating its coal division, PAO
Raspadskaya. We continue to believe that the transaction will be
neutral for the current rating, because the expected environmental
and sustainability benefits, from a credit perspective, will
largely balance the loss of cash flows from the coal division. In
particular, we expect coal prices to be more volatile, given our
expectation that environmental considerations might put pressure on
coal demand. Hence, deconsolidation of its coal division will make
Evraz's cash flows more stable, which will somewhat balance the
smaller size of the business. Additionally, the company will reduce
debt, so that FFO to debt will remain above 45% under normal
industry conditions. Still, we believe that the current transaction
setup may not allow FFO to debt to remain above 60% sustainably.
This is partly due to the larger role coal is playing in our
current base case forecast, thanks to improved prices, which has
led us to expect FFO to debt of 65%-75% in 2022-2023. Therefore,
with the coal division deconsolidated, Evraz would need to pay down
more debt to keep FFO to debt sustainably above 60%.

"Sufficient headroom under the current 'BB+' rating buffers against
the current government intervention, but long-term risks for the
industry have increased. On June 25, 2021, the Russian government
unexpectedly approved export duties on sales outside of the
Eurasian Economic Union for certain metals, including steel, for
Aug. 1 to Dec. 31, 2021. The duties will be calculated as 15% of
the export price but no less than $54/ton for hot briquetted iron,
$115/ton for hot rolled coil and rebars, and $133/ton for cold
rolled coil, among others. Evraz is a large steel exporter and
roughly 43% of its steel revenue came from exports in 2020, which
will result in estimated duties of about $450 million during this
special period. Moreover, we understand that the government is
currently developing taxes for the steel industry that will apply
after 2021, which could include mineral extraction taxes on raw
materials (iron ore, coking coal), as well as some form of taxes on
steel products. The Russian government's unexpected decision to
apply a 15% export tax to metals supports our view of high country
risk. In Russia, the government can quickly change legislation and
policies to meet its near-term objectives. This recent development
will likely lead to a more conservative view of the well-performing
metals sector because the risk of further government interventions
would need to be factored into forecasts. Should export duties
continue after 2021, the upcoming EU carbon border adjustment
mechanism or similar measures in other regions could place
additional stress on Russian metal exporters' financial
performance.

"The stable outlook indicates that we expect Evraz to maintain very
comfortable headroom over our 45% FFO-to-debt threshold for the
'BB+' rating under the current base case, which includes the coal
division.

"We could upgrade Evraz if we believe that its FFO to debt would
stay comfortably above 60% under normal industry conditions (and
above 45% in a downturn), including after the group deconsolidates
PAO Raspadskaya, its coal division (should the transaction be
finally approved). An upgrade to 'BBB-' would therefore depend on a
more conservative financial policy supporting this leverage level.

"Although unlikely at the moment, we could downgrade Evraz in case
of a severe decline in earnings, combined with aggressive financial
policy decisions, and without a compensating decline in dividends
and capital spending (capex), leading FFO to debt to fall below
45%."


ORVEC INT'L: Bought Out of Administration by John Horsfall & Sons
-----------------------------------------------------------------
Laurence Kilgannon at Insider Media reports that Orvec
International Ltd., a designer, supplier and manufacturer of
bespoke textiles to the aviation and healthcare sectors, has been
acquired after a downturn in the aviation industry forced the
business into administration.

Chris Pole and Howard Smith from Interpath Advisory were appointed
joint administrators of Orvec the company on Sept. 7, Insider Media
relates.

According to Insider Media, the adminstrators said Orvec had been
severely impacted by the downturn in the aviation industry during
the pandemic and, while a restructuring of the business was
undertaken by the management team, the low level of future order
book and a no real upturn in sight in the aviation market meant
that the business was no longer viable as presently structured.

Immediately following their appointment, the joint administrators
sold the business and a number of its assets to John Horsfall &
Sons, the West Yorkshire-based supplier of textiles and linens to
the airline industry, Insider Media discloses.

The administrators will now look to realise the remaining assets of
the company, including a freehold property, Insider Media states.  


Based in Hull, Orvec International Ltd.'s customers included a
number of major global airline operators.


PKA LEGAL: Goes Into Administration, Closes Nottingham Office
-------------------------------------------------------------
Sam Metcalf at The BusinessDesk.com reports that PKA Legal, a
Midlands law firm which closed its Nottingham office last year, has
been placed into administration.

The law firm, which traded as DBS Law, DBS Plus, Claim Today
Solicitors and CTS Claim Today Solicitors, has called in
administrators from Opus Restructuring, The BusinessDesk.com
relates.

The firm, which is based out of Birmingham, closed its Nottingham
office, which traded under the DBS Law brand at Gothic House,
Barker Gate, last year, The BusinessDesk.com discloses.

DBS was bought out of administration by PKA Legal three years ago
in a deal led by Parveen Attri, The BusinessDesk.com recounts.

According to The BusinessDesk.com, in its most recent accounts,
made up to the end of September 2019, PKA Legal was owed GBP757,576
and owed creditors GBP620,763.  It employed 25 people at the time,
The BusinessDesk.com notes.


RMAC SECURITIES 2007-NS1: Fitch Affirms BB+ Rating on 2 Tranches
----------------------------------------------------------------
Fitch Ratings has affirmed RMAC Securities No.1 Plc Series
2006-NS3, Series 2006-NS4 and Series 2007-NS1. The Outlooks on RMAC
2006-NS4's class B1a and B1c notes and RMAC 2007-NS1's class M2c,
B1a and B1c notes have been revised to Stable from Negative.

       DEBT                    RATING            PRIOR
       ----                    ------            -----
RMAC Securities No.1 Plc (Series 2006-NS3)

Class A2a XS0268014353    LT  AAAsf  Affirmed    AAAsf
Class M1a XS0268021721    LT  AAsf   Affirmed    AAsf
Class M1c XS0268024071    LT  AAsf   Affirmed    AAsf
Class M2c XS0268027769    LT  A+sf   Affirmed    A+sf

RMAC Securities No.1 Plc (Series 2007-NS1)

Class A2a XS0307493162    LT  AAAsf  Affirmed    AAAsf
Class A2b XS0307489566    LT  AAAsf  Affirmed    AAAsf
Class A2c XS0307505601    LT  AAAsf  Affirmed    AAAsf
Class B1a XS0307500479    LT  BB+sf  Affirmed    BB+sf
Class B1c XS0307512219    LT  BB+sf  Affirmed    BB+sf
Class M1a XS0307496264    LT  A+sf   Affirmed    A+sf
Class M1c XS0307506674    LT  A+sf   Affirmed    A+sf
Class M2c XS0307511591    LT  Asf    Affirmed    Asf

RMAC Securities No.1 Plc (Series 2006-NS4)

A3a XS0277409446          LT  AAAsf  Affirmed    AAAsf
B1a XS0277450838          LT  BB+sf  Affirmed    BB+sf
B1c XS0277453691          LT  BB+sf  Affirmed    BB+sf
M1a XS0277411004          LT  AA-sf  Affirmed    AA-sf
M1c XS0277437223          LT  AA-sf  Affirmed    AA-sf
M2a XS0277457841          LT  A+sf   Affirmed    A+sf
M2c XS0277445671          LT  A+sf   Affirmed    A+sf

TRANSACTION SUMMARY

The transactions are securitisations of buy-to-let (BTL) and
non-conforming residential mortgages originated by GMAC-RFC (now
called Paratus AMC).

KEY RATING DRIVERS

Tail Risks Constrain Ratings: The transactions are exposed to tail
risks due to the prevailing pro-rata amortisation of the notes and
the lack of a mandatory switch to a sequential amortisation in the
late stage of the transactions. Also, all pools contain high
proportions of interest-only (IO) loans, predominantly to borrowers
that self-certified their incomes, increasing tail risks.

Other tail risks include the potential increased reliance of the
mezzanine and junior notes on the support provided by the reserve
fund, held at Barclays Bank plc (A+/Stable/F1). The reserve fund
could be the only source of credit enhancement (CE) in scenarios
where the collateral performance deteriorates but remains within
the conditions for pro-rata payments. This could result in an
excessive counterparty dependency and constrains the rating of the
notes.

Stable Performance Supports Outlook Revisions: There are currently
no loans in the pools on an active payment holiday and asset
performance has remained stable for the three pools, with
late-stage arrears of 6.2%, 7.5% and 8.2% in June 2021 for RMAC
Securities No.1 Plc Series 2006-NS3, 2006-NS4 and 2007-NS1
respectively. The revision of the Outlooks on the class B1a and B1c
notes of 2006-NS4 and M2c, B1a and B1c notes of 2007-NS1 to Stable
from Negative reflects reduced risks of significant of collateral
underperformance beyond Fitch's expectations.

Increased CE: The notes are currently paying on a pro rata basis,
but the reserve funds are non-amortising due to breaches of
performance triggers. This has led to a gradual increase in CE,
which has driven the affirmations of the notes.

Rising Term Extensions: The transactions include high percentages
of owner-occupied IO loans, which is typical for pre-crisis
non-conforming deals. Fitch note that term extensions,
predominantly linked to loans that have been on a payment holiday,
have increased since the last review for the three transactions.
Fitch has reviewed the maturity schedule of these loans relative to
the notes' legal final maturity and run sensitivities around a
delayed repayment of owner-occupied IO loans of 24 months. Fitch
will continue to closely monitor the evolution of this trend.

RATING SENSITIVITIES

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

-- The transactions' performance may be affected by changes in
    market conditions and economic environment. Weakening asset
    performance is strongly correlated to increasing levels of
    delinquencies and defaults that could reduce CE available to
    the notes.

-- Additionally, unanticipated declines in recoveries could also
    result in lower net proceeds, which may make certain notes'
    ratings susceptible to potential negative rating action,
    depending on the extent of the decline in recoveries. Fitch
    conducts sensitivity analyses by stressing both a
    transaction's base-case foreclosure frequency (FF) and
    recovery rate (RR) assumptions, and examining the rating
    implications for all classes of issued notes. Fitch tested a
    15% increase in the weighted average (WA) FF and a 15%
    decrease in the WARR. The results indicate downgrades of up to
    two notches in RMAC 2006-NS3 and up to two rating categories
    in RMAC 2006-NS4 and 2007-NS1.

-- The class M2c notes of RMAC Securities No.1 Plc Series 2006
    NS3, class M2a and M2c notes of 2006-NS4 and class M1a and M1c
    notes of 2007-NS1 are currently capped at Barclays Bank's
    Long-Term Issuer Default Rating and therefore subject to
    downgrades if Barclays Bank's rating was downgraded.

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

-- Upgrades of the notes are unlikely due to prevailing tail
    risks. Fitch could only consider upgrades on the notes if
    these risks reduce and sufficient CE is built up. Fitch tested
    an additional rating sensitivity scenario by applying a
    decrease in the FF of 15% and an increase in the RR of 15%.
    The ratings on the subordinated notes of 2006-NS4 and 2007-NS1
    could be upgraded by up to two categories.

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

RMAC Securities No.1 Plc (Series 2006-NS3), RMAC Securities No.1
Plc (Series 2006-NS4), RMAC Securities No.1 Plc (Series 2007-NS1)

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. 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.

Fitch did not undertake a review of the information provided about
the underlying asset pools ahead of the transaction's RMAC
Securities No.1 Plc (Series 2006-NS3), RMAC Securities No.1 Plc
(Series 2006-NS4), RMAC Securities No.1 Plc (Series 2007-NS1)
initial closing. The subsequent performance of the transactions
over the years is consistent with the agency's expectations given
the operating environment and Fitch is therefore satisfied that the
asset pool information relied upon for its initial rating analysis
was adequately reliable.

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.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Class M2c of RMAC Securities No.1 Plc Series 2006-NS3, M2a and M2c
of 2006-NS4 and M1a and M1c of

2007-NS1 are currently capped at Barclays due to concerns around
Excessive Counterparty Exposure.

ESG CONSIDERATIONS

RMAC 2006-NS3, 2006-NS4 and 2007-NS1 each has an ESG Relevance
Score of '4' for Human Rights, Community Relations, and Access &
Affordability due to exposure to accessibility to affordable
housing which has a negative impact on the credit profile, and is
relevant to the ratings in conjunction with other factors.

RMAC 2006-NS3, 2006-NS4 and 2007-NS1 each has an ESG Relevance
Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data
Security due to exposure to compliance risks including fair lending
practices, mis-selling, repossession/foreclosure practices,
consumer data protection (data security), which has a negative
impact on the credit profile, and is relevant to the ratings in
conjunction with other factors.

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


STUDIO E: Inept Design Contributed to 2017 Fire, Inquiry Hears
--------------------------------------------------------------
Tom Symonds at BBC News reports that a barrister for victims of the
Grenfell Tower fire has told the public inquiry that a "total
neglect of safety" was at the heart of the disaster.

According to BBC, Stephanie Barwise QC said the refurbishment of
the tower, which contributed to the 2017 fire, was "hastily
conceived by an inept design team led by hapless lead
consultants".

She said workers and contractors were "reckless" and some practised
"fraud", BBC relates.

The inquiry is hearing final statements about Grenfell's
refurbishment, BBC relays.

The Royal Borough of Kensington and Chelsea has admitted a further
series of failures in the way it oversaw the body managing its
houses and flats, BBC discloses.

Ms. Barwise represents some of the bereaved, and survivors of the
fire at the 24-storey tower in north Kensington, west London, along
with others living in the estate where it happened, BBC notes.

She strongly criticized all of the companies involved in the
refurbishment, completed in 2016, to add a waterproof and
insulating cladding system to Grenfell's exterior, BBC recounts.

According to BBC, she said architect Studio E was a "hapless" lead
consultant, leading an "inept" design team.  The inquiry heard many
of the professionals and contractors involved did not read
government fire safety guidance, BBC relates.

"Grenfell demonstrates the existence of a culture of non-compliance
within certain sectors of the construction industry.  Put bluntly,
there is a kind of recklessness, as to whether or not compliance is
achieved," BBC quotes Ms. Barwise as saying.

Prashant Popat QC, acting for Studio E, which has since gone into
administration, said it should not be judged in hindsight, because
it had relied on the advice of experts, BBC relates.

According to BBC, he said hundreds of buildings, designed by a wide
range of architects, had been identified with dangerous cladding
and that Studio E had not "departed from the norm".

"The former Studio E employees are devastated that in spite of
this, in spite of the way it carried out its duties, such a
horrendous tragedy could happen," BBC quotes Mr. Popat as saying.

It was said contractor Rydon and cladding installers Harley saved
GBP327,000 using a cheap combustible aluminium cladding panel in a
form more likely to spread fire, BBC notes.  The inquiry heard
Rydon "secretly pocketed" additional savings, BBC relates.

The inquiry was tod Harley failed to warn about the fire risks the
design posed, BBC notes.

A fire safety consultant Exova incorrectly advised that the
cladding would have no adverse effect in the event of a fire and
"bears significant responsibility",
Ms. Barwise, as cited by BBC, said.

She reserved particular criticism for Celotex and Kingspan which
manufactured insulation used at Grenfell, and Arconic which made
the cladding, BBC notes.


UTILITY POINT: Ceases Trading, 220,000 Customers Affected
---------------------------------------------------------
Jessica Clark at The Scottish Sun reports that Utility Point and
People's Energy have collapsed, leaving around 570,000 customers
without an energy supplier.

Industry regulator Ofgem announced on Sept. 14 that the companies
are ceasing to trade, The Scottish Sun relates.

Utility Point supplies gas and electricity to around
220,000 domestic customers.

People's Energy supplies gas and electricity to around 350,000
households and around 1,000 businesses.
   
According to The Scottish Sun, customers of Utility Point and
People's Energy will be contacted by their new supplier, which will
be chosen by Ofgem.

In the meantime, customers should not switch to another energy
supplier until a new one has been appointed and you have been
contacted by them in the following weeks, The Scottish Sun notes.



                           *********


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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
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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