/raid1/www/Hosts/bankrupt/TCREUR_Public/220304.mbx        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

          Friday, March 4, 2022, Vol. 23, No. 40

                           Headlines



C R O A T I A

DALEKOVOD: Posts HRK22.9MM Profit After Pre-Bankruptcy Settlement


C Y P R U S

KLPP INSURANCE: S&P Puts 'BB+' LongTerm ICR on Watch Negative


G E O R G I A

GEORGIAN RAILWAY: S&P Affirms 'B+/B' ICR & Alters Outlook to Pos.


I R E L A N D

ADAGIO CLO VIII: Fitch Affirms B- Rating on Class F Notes
CAIRN CLO XIII: Fitch Raises Rating on Class F Notes to 'B-'
HARVEST CLO XI: Fitch Raises Class F-R Notes Rating to 'B+'
HARVEST CLO XXI: Fitch Raises Class F Notes Rating to 'B'
JUBILEE CLO 2015-XV: S&P Affirms B- Rating on Class F Notes



I T A L Y

TEAMSYSTEM SPA: Fitch Affirms 'B' LongTerm IDR, Outlook Stable


R U S S I A

RUSSIA: Fitch Lowers LT Foreign Currency IDR to 'B', On Watch Neg.
[*] RUSSIA: Scrambles to Keep Economy Running Following Sanctions


U K R A I N E

UKRAINIAN RAILWAY: Fitch Cuts IDR to CCC on Sovereign Rating Action
[*] Fitch Lowers LT Currency IDRs of 9 Ukrainian Banks to 'CCC'


U N I T E D   K I N G D O M

BISSET ADAMS: Enters Voluntary Liquidation, Owes GBP57,000
JACK MEDIA: Goes Into Administration, Owes Over GBP6.2 Million
PROVIDENT FINANCIAL: Fitch Alters Outlook on 'BB' IDR to Stable
SILK INDUSTRIES: Future Uncertain After Factory Site Repossessed
SOVA CAPITAL: Faces Collapse Over "Severe Liquidity Problems"



X X X X X X X X

[*] BOOK REVIEW: Bankruptcy and Secured Lending in Cyberspace

                           - - - - -


=============
C R O A T I A
=============

DALEKOVOD: Posts HRK22.9MM Profit After Pre-Bankruptcy Settlement
-----------------------------------------------------------------
Annie Tsoneva at SeeNews reports that Croatian power transmission
equipment manufacturer Dalekovod said on March 3 it posted a
consolidated net profit of HRK22.9 million (US$3.4 million/EUR3.0
million) last year, compared to a net loss of HRK27.8 million in
2020.

According to SeeNews, the company said in a filing to the Zagreb
bourse the total consolidated operating revenue rose to HRK2.384
billion from HRK1.290 billion in 2020.

Sales revenue increased to HRK1.364 billion from HRK1.259 billion
in 2020, while operating costs reached some HRK1.340 billion, up
from HRK1.240 billion in 2020, SeeNews discloses.

Last month, the company said it paid off its debts under a
pre-bankruptcy settlement dating back to 2014, following a recent
capital increase of HRK410 million, SeeNews recounts.




===========
C Y P R U S
===========

KLPP INSURANCE: S&P Puts 'BB+' LongTerm ICR on Watch Negative
-------------------------------------------------------------
S&P Global Ratings placed its 'BB+' long-term issuer credit and
financial strength ratings on Cyprus-based insurance company KLPP
Insurance And Reinsurance on CreditWatch with negative
implications.

Following Russia's military intervention in Ukraine, S&P is
assessing the effects of the related economic sanctions on
economies, borrowing conditions, and credit quality in the region
and worldwide.

At year-end 2021, KLPP had about 15% of its total assets in
Russia.

S&P said, "KLPP continues to hold significant capital buffers above
the 'AAA' level, and we assume its capital will remain a rating
strength in 2022 based on its S&P Global Ratings capital adequacy
and its regulatory solvency. Its Solvency II ratio as of year-end
2020 was above 1000%. However, the uncertainties related to capital
markets and the impact of international sanctions on Russian assets
could bring additional volatility to KLPP's earnings and
particularly its balance sheet compared to our base case. Under our
initial base case for 2022, we forecast gross written premiums
(GWP) of $24 million-$30 million, factoring in the ongoing
expansion and increased diversification of its business portfolio
by region and business line. Furthermore, we initially expected
KLPP to achieve a combined (loss and expense) ratio of at least 95%
and net income of at least $15 million in 2022."

In the past few years, KLPP has built its franchise in the
international (re)insurance market and attracted global business
mainly in the EU, North America, Asia, Latin America and South
Africa via its expanding broker network, and direct business in
Germany, Greece, Cyprus, Spain, France, Italy, and Luxembourg. KLPP
has also continued to diversify into different lines of business
and invest in underwriting expertise and client management. In
2021, it wrote about 5% of its business with customers who operate
either mainly or only in Russia. S&P said, "Although we expect KLPP
will continue writing the majority of its business outside of
Russia in the next few years, the current crisis could weigh on its
business growth and competitive position. In our view, it was still
in a build-up phase. We will monitor the impact of the crisis on
KLPP's international broker and client network."

S&P said, "We expect to resolve the CreditWatch in the next 90 days
after we gather further information regarding KLPP's Russian asset
portfolio and better gauge its sensitivity to sanctions and capital
market volatility. Moreover, we will monitor KLPP's business
expansion and the impact of the crisis on its competitive position
and franchise in the international (re)insurance markets.

"If we believe that KLPP's competitive position is visibly affected
by the crisis--potentially with a drop in new business and a
decline in existing international customers and brokers, or
significant earnings volatility stemming from its Russian
assets--we might lower the ratings.

"If we consider that KLPP's franchise has remained resilient amid
the crisis and it achieves its planned international profitable
expansion, and our capital and earnings assumptions are
unchanged--including significant capital buffers above the 'AAA'
level and only modest earnings volatility--we could remove the
ratings from CreditWatch and affirm them."




=============
G E O R G I A
=============

GEORGIAN RAILWAY: S&P Affirms 'B+/B' ICR & Alters Outlook to Pos.
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on Georgian Railway to
positive from stable and affirmed its 'B+/B' long- and short-term
issuer credit ratings on the company, as well as the 'B+' rating on
its bond.

The positive outlook reflects our view of a very high likelihood of
extraordinary state support and our expectation of strengthening
performance at Georgian Railway's stand-alone level, namely with
FFO to debt exceeding 8% from 2022.

The revision of the outlook on Georgia to stable from negative
reflects strong economic growth and moderating external imbalances,
which in turn reduces the pressure on our 'B+' rating on Georgian
Railway and unlocks upside prospects. S&P said, "The sovereign
outlook revision reflects stronger economic growth than previously
anticipated and hence supports our view of upside rating prospects
for Georgian Railway. Our rating on Georgian Railway factors in two
notches of uplift for extraordinary government support and we
expect Georgian Railway's credit metrics will strengthen from 2022,
on the back of lower cost of debt and resilient operating
performance."

S&P said, "The positive outlook on Georgian Railway reflects our
expectation that FFO to debt will recover to 8%-10% from 2022,
supported by lower cost of debt and recovery of freight volumes,
which started already in 2021. We estimate that, following the
refinancing completed in June 2021, the lower cost of debt on the
$500 million bond (4% fixed interest rate, compared with 7.75% paid
on previous notes) will strengthen the FFO-to-debt ratio by about
3% annually, all else being equal. We forecast that, together with
cautious cost management, this will likely translate to stronger
metrics for Georgian Railway, with FFO to debt increasing to about
8%-10% in 2022-2023, which we consider commensurate with a
stand-alone credit profile (SACP) of 'b', one notch higher than the
current 'b-' SACP.

"Despite the pandemic, operating performance in Georgian Railway's
core freight segment has improved in the first nine months of 2021.
Freight turnover increased by 15% to 2.455 billion ton-kilometers
(transport of one ton over a distance of one kilometer), and we
expect 2021 revenue will increase by 13%-15% compared with 2020.
This will translate to debt to EBITDA of 7.5x-8x in 2021 versus
8.7x in 2020, while 2021 FFO to debt won't be illustrative because
it is distorted by a large one-off finance cost. The freight growth
owed to an uptick in oil products transported in the first nine
months of 2021, mainly from Azerbaijan and Turkmenistan. We expect
the total volume of oil products will increase to about 3.8 million
tons in 2021 and stabilize at about 3.5 million tons in 2022,
compared with about 3 million tons in 2020."

Recovery will depend on Georgian Railway's ability to further
bolster its revenue and control costs, as well as the foreign
exchange rate trajectory. The ramifications of the macroeconomic
and financial effects of Russia's military intervention in Ukraine
could pose risks but remain difficult to quantify at the moment.
S&P's base case includes some moderate depreciation of Georgia's
local currency, the lari (GEL), in line with its latest sovereign
forecasts. Exposure to GEL depreciation remains a risk to the
company's debt leverage, given its debt is entirely denominated in
U.S. dollars. Although about 90% of total revenue is denominated in
U.S. dollars and operating costs are denominated in lari,
inflationary increases could still put pressure on EBITDA margins.

S&P said, "In our view, Georgian Railway continues to benefit from
a very high likelihood of extraordinary support from the Georgian
government, underpinning our rating on Georgian Railway.This
reflects that the company plays a very important role to the
government as the manager and owner of the national rail
infrastructure and as the sole provider of freight rail services.
Georgian Railway is one of the largest corporate borrowers in
Georgia and its network is an important infrastructure link in the
country and in the region. We consider that the government has a
strong incentive to support Georgian Railway, because if it were to
default, there would be considerable damage to the sovereign's
reputation and to other Georgian issuers' ability to borrow
externally.

"The positive outlook reflects our view of a very high likelihood
of state support and expectations of strengthening performance at
Georgian Railway's level, namely with FFO to debt exceeding 8% from
2022. Also, it incorporates our view of liquidity as adequate, with
no large maturity payments until 2028 and our expectation that
waivers for potential covenant breaches on bank facilities will
continue to be received in good time."

Upside scenario

S&P will likely upgrade Georgian Railway if its stand-alone metrics
strengthen, with FFO to debt reaching and sustainably exceeding 8%,
while its liquidity remains solid. This could be supported by
growth in freight turnover, translating into higher EBITDA
generation, or by operating cost efficiencies, absent large
fluctuations of the lari against other currencies.

Downside scenario

S&P could revise the outlook to stable if Georgian Railway's
operating performance and leverage were weaker than it expects,
with forecast FFO to debt staying below 8% in 2022-2023 due to
significant decline in freight turnovers, increasing operating
expenditure, and substantial depreciation of the lari.

Moreover, ratings downside could stem from a material deterioration
in liquidity, for example caused by adverse developments in the
local banking system, which might limit access to Georgian
Railway's cash balances.

Although less likely, a downgrade to the Georgia sovereign could
trigger a negative rating action on Georgian Railway, absent
expected improvements on its operating performance and leverage,
with FFO to debt forecast to stay below 8%.




=============
I R E L A N D
=============

ADAGIO CLO VIII: Fitch Affirms B- Rating on Class F Notes
---------------------------------------------------------
Fitch Ratings has upgraded Adagio CLO VIII DAC's class D and E
notes and affirmed the others. The Outlooks are Stable. The class
B-1 through F notes have been removed from Under Criteria
Observation (UCO).

    DEBT                RATING           PRIOR
    ----                ------           -----
Adagio CLO VIII DAC

A XS2054619734     LT AAAsf  Affirmed    AAAsf
B-1 XS2054620310   LT AAsf   Affirmed    AAsf
B-2 XS2054621045   LT AAsf   Affirmed    AAsf
C XS2054621474     LT Asf    Affirmed    Asf
D XS2054621987     LT BBBsf  Upgrade     BBB-sf
E XS2054622522     LT BBsf   Upgrade     BB-sf
F XS2054622951     LT B-sf   Affirmed    B-sf

TRANSACTION SUMMARY

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

KEY RATING DRIVERS

CLO Criteria Update and Cash Flow Modelling: The rating actions
mainly reflect the impact of the recently updated Fitch CLOs and
Corporate CDOs Rating Criteria and the shorter risk horizon
incorporated in Fitch's updated stressed portfolio analysis. The
analysis considered cash flow modelling results for the current and
stressed portfolios based on the 5 January 2022 trustee report.

The rating actions are based on the Fitch's updated stressed
portfolio analysis, which applied the agency's collateral quality
matrix specified in the transaction documentation. The transaction
has four matrices based on 5% and 0% maximum fixed-rate
concentration limits and 21% and 26.5% of top 10 borrower
concentration. Fitch analysed the two matrices specifying the 21%
top 10 obligor concentration limit, which is closer to the
transaction's current 14.67% concentration. When analysing the
matrix, Fitch applied a haircut of 1.5% to the weighted average
recovery rate (WARR) as the calculation in the transaction
documentation is not in line with the latest CLO criteria.

The weighted average life (WAL) used for the transaction's stressed
portfolio and matrices analysis is reduced to six years after a
four month reduction from the WAL covenant. This is to account for
structural and reinvestment conditions after the reinvestment
period, including the satisfaction of the coverage and Fitch 'CCC'
limit tests, together with a progressively decreasing WAL covenant.
In Fitch's opinion, these conditions reduce the effective risk
horizon of the portfolio during stress periods.

The Stable Outlooks on the notes reflect Fitch's expectation of
sufficient credit protection to withstand potential deterioration
in the credit quality of the portfolio in stress scenarios that are
commensurate with the notes' ratings. Furthermore, the transaction
is still in its reinvestment period, so no deleveraging is
expected.

Model-implied Rating Deviation: The ratings of the class B-1 to E
notes are one notch below their model-implied ratings (MIR). The
deviation reflects the remaining reinvestment period until April
2024, during which the portfolio can change significantly due to
reinvestment or negative portfolio migration.

Stable Asset Performance: The transaction's metrics indicate stable
asset performance. According to the trustee report as of 5 January
2022, the transaction is approximately 0.6% below par (based on the
trustee recovery rare balance on the defaulted asset balance) and
it passes all coverage tests, collateral quality tests and
portfolio profile tests.

'B'/'B-' Portfolio: Fitch assesses the average credit quality of
the transaction's underlying obligors in the 'B'/'B-' category. The
weighted average rating factor (WARF) as calculated by the trustee
was 32.97, which is below the maximum covenant of 33.50. The WARF,
as calculated by Fitch under the updated criteria, was 24.70.

High Recovery Expectations: Senior secured obligations comprise
96.98% of the portfolio as calculated by the trustee. Fitch views
the recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets. The Fitch WARR
reported by the trustee was 64.20%, against the covenant at
63.95%.

Diversified Portfolio: The portfolio is well-diversified across
obligors, countries and industries. The top 10 obligor
concentration is 14.67%, and no obligor represents more than 2.02%
of the portfolio balance, as reported by the trustee.

RATING SENSITIVITIES

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

-- An increase of the rating default rate (RDR) at all rating
    levels by 25% of the mean RDR and a decrease of the rating
    recovery rate (RRR) by 25% at all rating levels in the
    stressed portfolio will result in downgrades of up to three
    notches, depending on the notes.

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

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

-- A reduction of the RDR at all rating levels by 25% of the mean
    RDR and an increase in the RRR by 25% at all rating levels in
    the stressed portfolio would result in upgrades of up to four
    notches, depending on the notes.

-- Except for the tranche already at the highest 'AAAsf' rating,
    upgrades may occur in the case of better than expected
    portfolio credit quality and deal performance that leads to
    higher CE and excess spread available to cover losses in the
    remaining portfolio.

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.

DATA ADEQUACY

Adagio CLO VIII DAC

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

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

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.


CAIRN CLO XIII: Fitch Raises Rating on Class F Notes to 'B-'
------------------------------------------------------------
Fitch Ratings has upgraded CAIRN CLO XIII DAC's class E notes and
affirmed the class A, A-1 Loan, A-2 Loan, B, C, D and F notes. The
class B through F notes have been removed from Under Criteria
Observation (UCO), and all Rating Outlooks are Stable.

     DEBT              RATING           PRIOR
     ----              ------           -----
CAIRN CLO XIII DAC

A XS2327435066   LT AAAsf   Affirmed    AAAsf
A-1 Loan         LT AAAsf   Affirmed    AAAsf
A-2 Loan         LT AAAsf   Affirmed    AAAsf
B XS2327435819   LT AAsf    Affirmed    AAsf
C XS2327436460   LT Asf     Affirmed    Asf
D XS2327437351   LT BBB-sf  Affirmed    BBB-sf
E XS2327437948   LT BBsf    Upgrade     BB-sf
F XS2327437518   LT B-sf    Affirmed    B-sf

TRANSACTION SUMMARY

CAIRN CLO XIII DAC is a cash flow CLO comprised of mostly senior
secured obligations. The transaction is actively managed by Cairn
Loan Investments II LLP and will exit its reinvestment period in
November 2025.

KEY RATING DRIVERS

CLO Criteria Update: The rating actions mainly reflect the impact
of Fitch's recently updated CLOs and Corporate CDOs Rating
Criteria, and the shorter risk horizon incorporated in Fitch's
updated stressed portfolio analysis. The analysis considered cash
flow modelling results for the stressed portfolio based on the Jan.
7, 2022 trustee report.

The transaction has four matrices, based on 16% and 25% top 10
obligor limits and 0% and 5% fixed-rate assets. Fitch analyzed the
matrices specifying the 16% top-10 obligor limit and 0% and 5%
fixed-rate assets as the agency viewed these as the most rating
relevant.

The Stable Outlooks on all classes reflect Fitch's expectation that
the classes have sufficient levels of credit protection to
withstand potential deterioration in the credit quality of the
portfolio in stress scenarios commensurate with such class's
rating.

Deviation from Model-Implied Ratings: The ratings assigned to all
notes, except the class A, A-1 Loan, A-2 Loan, D and F notes, are
one notch below their respective model implied ratings. The
deviations reflect the remaining reinvestment period until November
2025, during which the portfolio can change due to reinvestment or
negative portfolio migration.

Stable Asset Performance: The transaction metrics indicate stable
asset performance. The transaction is passing all coverage tests,
collateral quality tests, and portfolio profile tests. Exposure to
assets with a Fitch-derived rating (FDR) of 'CCC+' and below is
0.9% excluding non-rated assets, as calculated by Fitch.

'B' Portfolio: Fitch assesses the average credit quality of the
transaction's underlying obligors in the 'B' category. The Fitch
weighted average rating factor (WARF), as calculated by the
trustee, was 32.4, which is below the maximum covenant of 34.5. The
WARF, as calculated by Fitch under the updated criteria, was 24.4.

High Recovery Expectations: Senior secured obligations comprise
99.3% of the portfolio as calculated by the trustee. Fitch views
the recovery prospects for these assets as more favorable than for
second-lien, unsecured and mezzanine assets. The Fitch WARR
reported by the trustee was 62.4%, against the covenant at 59.7%.

Diversified Portfolio: The portfolio is well-diversified across
obligors, countries and industries. The top 10 obligor
concentration is 13.0%, and no obligor represents more than 1.5% of
the portfolio balance, as reported by the trustee.

RATING SENSITIVITIES

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

-- An increase of the rating default rate (RDR) at all rating
    levels by 25% of the mean RDR and a decrease of the rating
    recovery rate (RRR) by 25% at all rating levels in the
    stressed portfolio will result in downgrades of up to four
    notches, depending on the notes;

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

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

-- A reduction of the RDR at all rating levels by 25% of the mean
    RDR and an increase in the RRR by 25% at all rating levels in
    the stressed portfolio would result in an upgrade of up to
    five notches, depending on the notes;

-- Except for the tranches already at the highest 'AAAsf' rating,
    upgrades may occur in the case of better than expected
    portfolio credit quality and deal performance that leads to
    higher CE and excess spread available to cover losses in the
    remaining portfolio.

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.

DATA ADEQUACY

CAIRN CLO XIII DAC

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

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

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

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


HARVEST CLO XI: Fitch Raises Class F-R Notes Rating to 'B+'
-----------------------------------------------------------
Fitch Ratings has upgraded Harvest CLO XI DAC's class B-1-R, B-2-R,
B-3-R, C-R, D-R, E-R and F-R notes, removed them from Under
Criteria Observation (UCO) and assigned them a Positive Rating
Outlook. The class A-RR notes were affirmed.

      DEBT                RATING            PRIOR
      ----                ------            -----
Harvest CLO XI DAC

A-RR XS2339929098    LT AAAsf   Affirmed    AAAsf
B-1-R XS1627782185   LT AA+sf   Upgrade     AAsf
B-2-R XS1627782342   LT AA+sf   Upgrade     AAsf
B-3-R XS1629312296   LT AA+sf   Upgrade     AAsf
C-R XS1627782425     LT A+sf    Upgrade     Asf
D-R XS1627781963     LT BBB+sf  Upgrade     BBBsf
E-R XS1627782268     LT BB+sf   Upgrade     BBsf
F-R XS1627782003     LT B+sf    Upgrade     B-sf

TRANSACTION SUMMARY

Harvest CLO XI DAC is a cash flow collateralized loan obligation
(CLO) backed by a portfolio of mainly European leveraged loans and
bonds. The transaction is actively managed by Investcorp Credit
Management EU Limited and has exited its reinvestment period in
June 2021.

KEY RATING DRIVERS

CLO Criteria Update: The rating actions mainly reflect the impact
of Fitch's recently updated CLOs and Corporate CDOs Rating
Criteria. The analysis was based on a scenario that assumes a
one-notch downgrade on the Fitch Issuer Default Rating Equivalency
Rating for assets with a Negative Outlook on the driving rating of
the obligor.

Limited Amortization: The transaction's reinvestment period ended
in June of 2021, but the notes have not started to substantially
amortize. All collateral quality and portfolio profile tests are
currently passing. Compliance of these tests allows the manager to
reinvest unscheduled principal proceeds and credit-impaired and
credit-improved sales proceeds. The manager may generally reinvest
on a maintain or improve basis when failing the tests.

Portfolio credit quality may potentially deteriorate with ongoing
reinvestment activity. However, given that the current portfolio
metrics are relatively close to covenant limits, Fitch did not
update the Fitch Stressed Portfolio analysis. In Fitch's view, the
breakeven default rate cushions at the upgraded ratings are
sufficient to mitigate the risk of portfolio deterioration due to
trading activity.

The Positive Outlooks reflect sufficient levels of credit
protection to withstand potential deterioration in the credit
quality of the portfolio in stress scenarios commensurate with the
classes' respective ratings. The Positive Outlooks also reflect
Fitch's expectation of an increased pace of amortization, which
would increase credit enhancement (CE) for rated notes.

Deviation from Model Implied Rating: The assigned ratings for the
class B-1-R, B-2-R, B-3-R, D-R and F-R notes are one notch lower
than their respective model implied ratings. This deviation from
the model implied rating is driven by the low breakeven default
rate cushions for these notes at the model implied rating, which
can erode quickly due to the manager's trading flexibility.

Portfolio Concentration: The portfolio remains diversified, but is
expected to become more concentrated once the transaction starts to
amortize. The largest single issuer and largest 10 issuers in the
portfolio represent 1.8% and 15.2% of the portfolio, respectively.

Stable Asset Performance: The transaction is passing all collateral
quality, portfolio profile and coverage tests. Exposure to assets
with a Fitch-derived rating of 'CCC+' and below is reported by the
trustee at 4.7%, below the 7.5% limit.

'B'/'B-' Portfolio: Fitch assesses the average credit quality of
the obligors to be at the 'B'/'B-' rating level. The trustee
calculated Fitch weighted-average rating factor (WARF) is at 33.6,
below the covenant maximum limit of 34.5. The Fitch calculated WARF
is at 24.8 after applying the updated Fitch CLOs and Corporate CDOs
Rating Criteria.

High Recovery Expectations: 99.5% of the portfolio comprises senior
secured obligations. Fitch views the recovery prospects for these
assets as being more favorable than for second-lien, unsecured and
mezzanine assets. The Fitch weighted-average recovery rate of the
current portfolio is reported by the trustee at 61.5%, compared
with the covenant minimum of 60.8%.

RATING SENSITIVITIES

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

-- An increase of the rating default rate (RDR) at all rating
    levels by 25% of the mean RDR and a decrease of the rating
    recovery rate (RRR) by 25% at all rating levels in the
    analyzed portfolio would result in downgrades of up to three
    notches, depending on the notes;

-- Downgrades may occur if the build-up of the notes' CE
    following amortization does not compensate for a higher loss
    expectation than initially assumed due to unexpected high
    level of default and portfolio deterioration.

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

-- A reduction of the RDR at all rating levels by 25% of the mean
    RDR and an increase in the RRR by 25% at all rating levels in
    the anlayzed portfolio would result in upgrades of up to four
    notches, depending on the notes;

-- Except for the tranches already at the highest 'AAAsf' rating,
    upgrades may occur in case of better-than-expected portfolio
    credit quality and deal performance, leading to higher CE
    available to cover for losses on the remaining portfolio.

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.

DATA ADEQUACY

Harvest CLO XI DAC

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

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

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.


HARVEST CLO XXI: Fitch Raises Class F Notes Rating to 'B'
---------------------------------------------------------
Fitch Ratings has upgraded Harvest CLO XXI DAC's class D-R, E and F
notes and affirmed the class A-1-R, A-2-R, B-1-R, B-2-R and C-R
notes. The class B-1-R through F notes have been removed from Under
Criteria Observation (UCO). The Rating Outlooks for all classes
remain Stable.

      DEBT                RATING           PRIOR
      ----                ------           -----
Harvest CLO XXI DAC

A-1-R XS2326512378   LT AAAsf  Affirmed    AAAsf
A-2-R XS2326512964   LT AAAsf  Affirmed    AAAsf
B-1-R XS2326513772   LT AAsf   Affirmed    AAsf
B-2-R XS2326514317   LT AAsf   Affirmed    AAsf
C-R XS2326515041     LT Asf    Affirmed    Asf
D-R XS2326519035     LT BBBsf  Upgrade     BBB-sf
E XS1951930533       LT BBsf   Upgrade     BB-sf
F XS1951930616       LT Bsf    Upgrade     B-sf

TRANSACTION SUMMARY

Harvest CLO XXI DAC is a cash flow CLO comprised of mostly senior
secured obligations. The transaction is actively managed by
Investcorp Credit Management EU Limited and will exit its
reinvestment period in October 2023.

KEY RATING DRIVERS

CLO Criteria Update: The rating actions mainly reflect the impact
of the recently updated "Fitch CLOs and Corporate CDOs Rating
Criteria," and the shorter risk horizon incorporated in Fitch's
updated stressed portfolio analysis. The analysis considered cash
flow modelling results for the stressed portfolio based on the Jan.
5, 2022 trustee report.

The rating actions for all notes, except for the class A-1-R and
A-2-R notes, are one notch lower than the model-implied ratings
produced from Fitch's updated stressed portfolio analysis for all
classes of notes. The deviation reflects the remaining long
reinvestment period until October 2023, during which the portfolio
can change significantly due to reinvestment or negative portfolio
migration.

Fitch's updated analysis applied the agency's collateral quality
matrix specified in the transaction documentation. The transaction
has two matrices, based on 15% and 20% top 10 obligor concentration
limits and 10% fixed rate assets. Fitch analyzed the matrix
specifying the 15% top 10 obligor limit and 10% fixed rate assets
as the agency viewed this as the most relevant. Fitch also applied
a haircut of 1.5% to the weighted average recovery rate (WARR) as
the calculation of the WARR in transaction documentation reflects
an earlier version of Fitch's CLO criteria.

The Stable Outlooks on each class of notes reflect Fitch's
expectation that the classes have sufficient levels of credit
protection to withstand potential deterioration in the credit
quality of the portfolio in stress scenarios commensurate with such
class's rating.

Stable Asset Performance: The transaction metrics indicate stable
asset performance. The transaction is passing all coverage tests,
collateral quality tests, and portfolio profile tests. Exposure to
assets with a Fitch-derived rating (FDR) of 'CCC+' and below is
2.9% excluding non-rated assets, as calculated by Fitch.

'B'/'B-' Portfolio: Fitch assesses the average credit quality of
the transaction's underlying obligors in the 'B'/'B-' category. The
WARF, as calculated by the trustee, was 33.5, which is below the
maximum covenant of 35.0. The WARF, as calculated by Fitch under
the updated criteria, was 25.2.

High Recovery Expectations: Senior secured obligations comprise 98%
of the portfolio as calculated by the trustee. Fitch views the
recovery prospects for these assets as more favorable than for
second-lien, unsecured and mezzanine assets. The Fitch WARR
reported by the trustee was 65.3%, against the covenant at 64.4%.

Diversified Portfolio: The portfolio is well-diversified across
obligors, countries and industries. No obligor represents more than
1.6% of the portfolio balance and the top 10 obligor concentration
is 15.0% as reported by the trustee.

RATING SENSITIVITIES

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

-- An increase of the rating default rate (RDR) at all rating
    levels by 25% of the mean RDR and a decrease of the rating
    recovery rate (RRR) by 25% at all rating levels in the
    stressed portfolio will result in downgrades of up to two
    notches, depending on the notes;

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

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

-- A reduction of the RDR at all rating levels by 25% of the mean
    RDR and an increase in the RRR by 25% at all rating levels in
    the stressed portfolio would result in an upgrade of up to
    four notches, depending on the notes;

-- Except for the tranches already at the highest 'AAAsf' rating,
    upgrades may occur in the case of better than expected
    portfolio credit quality and deal performance that leads to
    higher CE and excess spread available to cover losses in the
    remaining portfolio.

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.

DATA ADEQUACY

Harvest CLO XXI DAC

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

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

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.


JUBILEE CLO 2015-XV: S&P Affirms B- Rating on Class F Notes
-----------------------------------------------------------
S&P Global Ratings raised its credit ratings on Jubilee CLO 2015-XV
DAC's class B-R, C-R, D-R, and E notes. At the same time, S&P
affirmed its ratings the class A-R and F notes.

The rating actions follow the application of our global corporate
CLO criteria and its credit and cash flow analysis of the
transaction based on the December 2021 trustee report.

S&P's ratings address timely payment of interest and ultimate
payment of principal on the class A-R and B-R notes, and the
ultimate payment of interest and principal on the class C-R, D-R,
E, and F notes.

Since S&P's previous review in November 2020:

-- The weighted-average rating of the portfolio remains at 'B'.

-- The portfolio has become less diversified, as the obligors
decreased to 83 from 141.

-- The portfolio's weighted-average life decreased to 3.19 years
from 3.96 years.

-- The percentage of 'CCC' rated assets has increased to 10.42%
from 6.10%.

-- The scenario default rate has decreased for all rating
scenarios as the pool becomes more concentrated with continued
deleveraging.

  Portfolio Benchmarks

                                   CURRENT       PREVIOUS REVIEW

  SPWARF                           2,932.03        2,941.40
  Default rate dispersion (%)        746.50          646.76
  Weighted-average life (years)        3.19            3.96
  Obligor diversity measure           56.12           94.14
  Industry diversity measure          16.26           18.50
  Regional diversity measure           1.10            1.18

SPWARF - S&P Global Ratings weighted-average rating factor.

On the cash flow side:

-- The reinvestment period for the transaction ended in July
2019.

-- The class A-R notes have deleveraged since then.

-- No class of notes is deferring interest.

All coverage tests are passing as of the December 2021 trustee
report.

  Transaction Key Metrics
                                        CURRENT    PREVIOUS REVIEW

  Total collateral amount (mil. EUR)*    237.92      18.56
  Defaulted assets (mil. EUR)              0.36       4.41
  Number of performing obligors              83        141
  Portfolio weighted-average rating           B          B
  'CCC' assets (%)                        10.42       6.10
  'AAA' WARR (%)                          37.18      37.26
  GBP assets (%)                           1.42

*Performing assets plus cash and expected recoveries on defaulted
assets.
WARR--Weighted-average recovery rate.

S&P said, "Following these developments, our model results show
that the class B-R, C-R, D-R, and E-R notes benefit from a level of
credit enhancement that is typically commensurate with higher
ratings than those previously assigned. We have therefore raised
our ratings on these classes of notes. At the same time, we have
affirmed our ratings on the class A-R and F notes based on the
results of our cash flow analysis.

"On a standalone basis, the results of the cash flow analysis
indicated a higher rating than that currently assigned for the
class C-R, D-R, and E-R notes. The transaction has continued to
amortize since the end of the reinvestment period in 2019. That
said, we have considered the limited break-even default ratio
cushion at higher ratings, while noting that the manager may still
reinvest unscheduled redemption proceeds and sale proceeds from
credit-impaired and credit-improved assets. Such reinvestments (as
opposed to repayment of the liabilities) may therefore prolong the
note repayment profile for the most senior class of notes."

  Ratings List

  CLASS           RATING TO       RATING FROM

  RATINGS RAISED

   B-R             AAA (sf)        AA+ (sf)

   C-R             AA+ (sf)        A+ (sf)

   D-R             A+ (sf)         BBB (sf)

   E               BB+ (sf)        BB- (sf)

  RATINGS AFFIRMED

   A-R             AAA (sf)
   
   F               B- (Sf)




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

TEAMSYSTEM SPA: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed TeamSystem S.p.A.'s Long-Term Issuer
Default Rating (IDR) at 'B' with a Stable Outlook. Fitch also
affirmed the company's senior secured notes at 'B+' with a recovery
rating of 'RR3'. The actions follow increasing revenue and EBITDA
for 2021, with a successful expansion in recurring revenue,
cloud-based sales and new micro-business clients acquisitions. A
reduction in EBITDA margins followed the resolution of
pandemic-related extraordinary measures.

Leverage at end-2021 was higher than Fitch's expectations at the
time of the 1Q21 leveraged buyout (LBO) refinancing, following
bolt-on acquisitions and seasonal working capital swings. Fitch
expects its funds from operations (FFO) gross leverage to reduce to
within the range for a 'B' rating by end-2022. The strong free cash
flow (FCF) generation of the group contributes to its financial
flexibility.

Fitch rebased its calculation of the company's EBITDA, deducting
R&D costs in full, instead of modelling them as capex. The exercise
replicates the treatment for several peers in the sector to make a
more consistent comparison.

KEY RATING DRIVERS

High Leverage: Fitch estimates TeamSystem's FFO gross leverage for
2021 at around 8.4x, about one turn higher than Fitch's initial
expectations. The difference derives from a higher-than-expected
drawdown under the revolving credit facility (RCF), due to year-end
short-term working capital swings as cash on the balance sheet was
limited after the debt refinancing. Fitch also lowered its
calculation of TeamSystem's EBITDA, contributing to the increase in
leverage. Fitch expects TeamSystem's leverage to return to within
Fitch's thresholds for a 'B' rating by end-2022.

Margin Expected to Improve: Fitch's definition of EBITDA for
TeamSystem now assumes R&D is fully deducted. This for a more
consistent comparison across peers of the same sector. In 2021,
Fitch's rebased EBITDA margin declined to near 34%, about 3.5%
lower than 2020 on a like-for-like basis. The improved revenue mix
and achieved cost efficiencies were offset by prevailing expenses
increases following the expiry of pandemic-related support. Fitch
estimates additional efficiencies in 2022. Fitch assumes around 2pp
improvement in Fitch's Fitch EBITDA for 2021-2024. Price increases
passed on to customers may provide an upside to Fitch's base
scenario.

Strong Free Cash Flow: The company's FCF margin remains strong at
14% for 2021, higher than Fitch's earlier expectations from early
2021. The improvement is led by lower-than-expected taxes and
non-recurring expenses. Fitch forecasts TeamSystem's FCF margin on
average at about 13% for 2022-2024.

Recurring Revenue Increases: TeamSystem's revenue continues to
grow. Fitch calculates organic revenue growth at about 7% for 2021.
All segments and business units contributed to this. The recurring
component of sales increased and now represents about 82% of total
sales, up from 81% in 2020. The company's product design and its
software-as-a-service (SaaS) engagement model have been successful
in increasing the transition of customers to subscription-based
contracts.

The average churn level is close to 10%, including renegotiations.
Churn is higher for the growing component of micro-businesses in
the client mix, but is much lower in the SMEs and professionals'
channels.

Strong Micro Business and Cloud: TeamSystem almost doubled its
client base between 2018 and 2021. This is due to the onboarding of
small and micro businesses, subscribing to its basic electronic
invoicing offer. Nurturing this customer segment, offering up
selling opportunities, is a key element of the company's expansion
plans. Management is determined to switch existing customers to its
cloud service. In 2021, the micro-business division grew by about
13%, expanding its divisional margins. Cloud-based revenue also
improved to about 42% of the total from about 37% in 2020.

Financial Policy to Remain Aggressive: Fitch expects TeamSystem's
shareholders to adopt an aggressive financial policy. TeamSystem
has been subject to LBO-type capital structures and private equity
ownerships since 2000, and its debt capacity has been exploited in
full. Ensuing refinancings funded the levered acquisition of
TeamSystem itself, and supported M&A and capex investments. Gross
debt grew alongside EBITDA. Fitch expects top-line growth to drive
deleveraging over 2022-2024. However, this may lead to additional
debt, permitted under the debt documentation, to fund bolt-on
acquisitions. Distributions to shareholders are also permitted.

Supportive Digital Agenda in Italy: Digitalisation is becoming
increasingly important to the Italian economy, including to payment
systems, invoicing and filing of accounts. The introduction of the
e-signature and e-invoicing supported TeamSystem's client expansion
over recent years. Fitch expects the operating environment to
remain supportive of the company's plan, in particular for the
expansion towards micro-businesses and SMEs. However,
inflation-related supply shocks may reduce the profitability of
these enterprises, potentially reducing TeamSystem's customer
base.

DERIVATION SUMMARY

TeamSystem's ratings construction is based on its high leverage and
on its leading position in the Italian enterprise resource planning
(ERP) software market, critical to clients' day-to-day business.
The group benefits from a record of organic growth in Italy, with
improving sales quality. Recurring revenue and cloud adoption by
customers are expanding, as the SaaS engaging model increases
switching costs for customers. TeamSystem's shareholders'
aggressive financial policy keeps the leverage of the company high,
with debt capacity used in full to enhance equity value.

TeamSystem's closer peer is Bock Capital Bidco B.V. (Unit4;
B/Stable). TeamSystem has a bigger market share in Italy than Unit4
does in its home market of the Netherlands and has higher margins.
Unit4's share of recurring revenue is high, but lower than
TeamSystem's. However, Unit4 is more geographically diversified so
has stronger growth prospects in wider markets. Both companies are
highly levered LBOs.

TeamSystem compares well with other speculative grade technology
platforms, such as Centurion Bidco S.p.a. (Engineering; B+/Stable)
and Hurricane Bidco Limited (Paymentsense; B/Stable). Engineering
displays higher scale, lower capex requirements and lower leverage
than TeamSystem. Paymentsense has leverage and margins that are
similar to those of TeamSystem. However, TeamSystem has a more
diversified subscription base than Paymentsense, with a high
proportion of recurring revenue.

TeamSystem can be broadly compared to Fitch's technology 'B' rated
peers in public and private ratings. Overall, the company has
similar scale and geographic coverage with a comparable leverage
profile, but has above-average EBITDA and FCF margins.

KEY ASSUMPTIONS

-- Revenue growth of 12% in 2021 and about 8% in 2022 and 2023;

-- EBITDA margin dilution to 33.9% in 2021 followed by an
    increase to 35.4% in 2023;

-- Capex excluding research and development costs of about 3% of
    revenue in 2021-2024;

-- Research and development costs of around EUR16 million-EUR18
    million fully deducted from EBITDA;

-- Drawn down RCF fully repaid in 2023.

Key Recovery Assumptions

Fitch believes TeamSystem would be considered a going concern in
bankruptcy and would be reorganised rather than liquidated. This is
due to its technological and legislative knowledge and a wide
customer base operating with TeamSystem's product suite of licences
and subscriptions packages.

Fitch assesses the company's going-concern EBITDA
post-restructuring at about EUR150 million, due to assumed lower
growth prospects, impaired pricing power and higher competitive
intensity leading to a restructuring.

Fitch uses an enterprise value/EBITDA multiple of 6.0x, in line
with the average of Fitch's existing distressed multiples for
business services and technology companies in the wider 'B'
category. This is based on the strong industry dynamics for
TeamSystem in the Italian ERP sector, high barriers to entry and a
strong market share with prospects for sustained cash flow
generation.

Fitch assumes the EUR180 million RCF to be fully drawn upon
default. The RCF ranks super senior and ahead of the senior secured
notes. Fitch treats EUR29 million of new debt in the restricted
subsidiaries as senior secured, pari passu to the EUR1.1 billion
notes. The EUR300 million holdco notes as equity and exclude them
from Fitch's debt quantum. Fitch's analysis indicates a recovery of
'RR3'/55% for the senior secured notes, implying a single-notch
uplift from the IDR. Fitch assumed a 10% charge for administrative
claims.

RATING SENSITIVITIES

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

-- Total debt with equity credit/operating EBITDA below 5.0x or
    FFO leverage below 6x;

-- Operating EBITDA/interest paid sustained above 3.0x or FFO
    interest coverage sustained above 2.5x;

-- FCF margin consistently above 10%;

-- Continued growth of cloud-related revenue to over half of
    sales;

-- Continuation of disciplined M&A to acquire technology or key
    talent with limited additional debt.

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

-- Total debt with equity credit/operating EBITDA above 6.5x or
    FFO leverage sustainably above 7.5x as a result of smaller
    margins or material debt-funded acquisitions;

-- Operating EBITDA/interest paid below 2.0x or FFO interest
    coverage below 1.5x;

-- FCF margin consistently below 5%;

-- Evidence of a lack of consolidation of the company's position
    in the SME, micro business and cloud markets;

-- Decline in EBITDA margin towards 32% due to loss of internal
    efficiency and pricing power.

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

TeamSystem's liquidity is satisfactory in light of its FCF
generation of the availability of an EUR180 million RCF. The
company has been rebuilding its liquidity buffer since last year's
refinancing. The RCF drawdown is about EUR90 million and Fitch
expects it to be repaid by 2023.

ISSUER PROFILE

TeamSystem is an Italy-based provider of financial and accounting
enterprise resource planning software.

ESG CONSIDERATIONS

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




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

RUSSIA: Fitch Lowers LT Foreign Currency IDR to 'B', On Watch Neg.
------------------------------------------------------------------
Fitch Ratings, on March 2, 2022, downgraded Russia's Long-Term
Foreign Currency Issuer Default Rating (IDR) to 'B' from 'BBB'. The
ratings have been placed on Rating Watch Negative (RWN).

EU CALENDAR DEVIATION DISCLOSURE

Under EU credit rating agency (CRA) regulation, the publication of
sovereign reviews is subject to restrictions and must take place
according to a published schedule, except where it is necessary for
CRAs to deviate from this in order to comply with their legal
obligations. Fitch interprets this provision as allowing us to
publish a rating review in situations where there is a material
change in the creditworthiness of the issuer that Fitch believes
makes it inappropriate for us to wait until the next scheduled
review date to update the rating or Outlook/Watch status. The next
scheduled review date for Fitch's sovereign rating on Russia will
be 27 May 2022, but Fitch believes that developments in the country
warrant such a deviation from the calendar and Fitch's rationale
for this is set out in the first part (High weight factors) of the
Key Rating Drivers section below.

This action relates to a committee held on 1 March and therefore
does not reflect any subsequent developments, including
announcements relating to not paying local currency debt coupons,
which Fitch will assess further.

KEY RATING DRIVERS

The downgrade and RWN reflects the following key rating drivers and
their relative weights:

HIGH

Severe Shock to Credit Fundamentals: The severity of international
sanctions in response to Russia's military invasion of Ukraine has
heightened macro-financial stability risks, represents a huge shock
to Russia's credit fundamentals and could undermine its willingness
to service government debt. Developments will weaken Russia's
external and public finances, severely constrain its financing
flexibility, markedly reduce trend GDP growth, and elevate domestic
and geopolitical risk and uncertainty. The RWN reflects the high
degree of volatility in international relations, including the
potential for further sanctions tightening and uncertainty over
Russia's policy response such as not servicing its debt, and the
risk of a more acute loss of domestic economic confidence.

Rapidly Tightening Sanctions: Announced US and EU sanctions
prohibiting any transactions with the Central Bank of Russia (CBR)
will have a much larger impact on Russia's credit fundamentals than
any previous sanctions. Full implementation could render much of
Russia's international reserves unusable for FX intervention, and a
large proportion could be subject to asset freezes. 32% of Russia's
FX reserves are denominated in euros and 16% in US dollars, and
more than half are held in countries participating in sanctions (as
of end-June 2021). Sanctions also prohibit US transactions with the
National Wealth Fund or the Ministry of Finance.

More Uncertain Willingness to Pay: The sanctions could also weigh
on Russia's willingness to repay debt. President Putin's response
to put nuclear forces on high alert appears to diminish the
prospect of him changing course on Ukraine to the degree required
to reverse rapidly tightening sanctions. Fitch assumes US sanctions
prohibiting transactions with the Ministry of Finance will not
impede the servicing of Russia's sovereign debt but this is unclear
and the risk of such a severe measure has increased markedly.

Further Banking Sector Sanctions Likely: Fitch expects further
ratcheting up of sanctions on Russian banks. Measures announced are
already severe, including a ban on Sberbank transacting in US
dollars, asset freezes at VTB through its inclusion in the SDN
list, and exclusion from the SWIFT payments system of some banks.
Their impact will depend on the extent to which foreign-currency
payments could be re-routed through other Russian banks and
exposures switched to other currencies or settled with foreign
counterparties. However, Fitch now anticipates widening of these
measures to other banks, limiting such mitigants, with large costs
through severe short-term disruptions and more lasting constraints
to the efficiency of executing transactions.

Heightened Macro-Financial Risks: Announced sanctions and sharp
rouble depreciation will fuel greater macro-volatility, and
markedly increase the risk of a broad-based loss of domestic
confidence triggering bank deposit outflows and dollarisation.
Foreign-currency-denominated bank deposits (predominantly in US
dollars) are near USD200 billion (25% of total deposits) and their
outflow would represent a greater risk to the stability of the
system, given the CBR's capacity to support banks with rouble
liquidity. CBR has raised the policy interest rate to 20% from
9.5%, and announced some capital controls.

Lower Trend GDP Growth: The shock to domestic confidence and policy
tightening will have a sharply negative impact on near-term
economic activity. Sanctions will also markedly weaken Russia's GDP
growth potential relative to Fitch's previous assessment of 1.6%,
partly through constraining the ability to clear trade payments,
with 55% of Russian exports denominated in US dollars and 29% in
euros. In addition, trade partners will seek substitutes for
imports from Russia, particularly in the energy sector (which
accounted for USD241 billion or 44% of Russia's exports in 2021).
To a lesser extent, much weaker prospects for foreign investment
and technological transfer will also weigh on trade and
productivity.

Other Financing Flexibility Constraints and Fiscal Risks: The
extension of sanctions to cover secondary market sovereign debt and
non-US dollar issuances, including the euro, further reduces
Russia's financing flexibility. Sanctions tightening will also
reduce the private sector's ability to refinance its external debt.
In addition, Russia's fiscal balance will be negatively impacted by
weakening economic activity, and to a lesser extent, the direct
fiscal cost of the conflict in Ukraine. Contingent liability risks
from the banking sector have also increased, although their
near-term impact will be mitigated by regulatory forbearance.

Political and Geopolitical Risk and Uncertainty: Fitch considers
Russia's full-scale invasion of Ukraine, particularly in the event
of protracted conflict, as well as weaker economic growth, have the
potential to result in greater domestic political uncertainty and
instability. The collapse in international relations and greater
unpredictability in policy-making, in Fitch's view, also add to
geopolitical risks in the short and medium term.

Russia's 'B' rating also reflects the following rating drivers:

Buffers and Low Financing Need: The rating is supported by the size
of Russia's fiscal and external buffers, although their usability
is currently severely constrained. Russia has the second lowest
level of public debt in the 'B' category and low external and
fiscal financing needs. Before the crisis, its macroeconomic policy
framework was underpinned by credible monetary policy, exchange
rate flexibility and prudent counter-cyclical fiscal policy, and
the budget was in a small surplus in 2021.

Structural Weaknesses: Set against these factors are high
geopolitical risk, the impact of severe sanctions that severely
constrain financing flexibility and the ability to execute
transactions across the economy, risks of further sanctions and
macro-financial instability, low potential GDP growth, weak
governance and unpredictable policy, and high commodity
dependence.

Strong External Balance Sheet: Going into the crisis, Russia had
the second highest international reserves (17 months of current
external payments; USD643 billion) in the peer group. Its net
external creditor position has strengthened 32pp since 2014 to 48%
of GDP, and the current account surplus was a 15-year high in 2021
at near 8% of GDP.

Fiscal Buffer, Low Financing Need: Public debt is low, at 20% of
GDP, and 21% is foreign-currency-denominated, which compares
favourably with the 'B' category median of 62%. Sovereign debt
amortisations are low (averaging 1% of GDP in 2022-2023), relative
to a large fiscal buffer that includes National Wealth Fund's
assets equivalent to 11.7% of GDP (7.3pp of which is the liquid
component) at end-2021, and there is low external exposure.

ESG Governance: Russia has an ESG Relevance Score (RS) of '5' for
both Political Stability and Rights and for the Rule of Law,
Institutional and Regulatory Quality and Control of Corruption, as
is the case for all sovereigns. These scores reflect the high
weight that the World Bank Governance Indicators (WBGI) have in
Fitch's proprietary Sovereign Rating Model. Russia has a low WBGI
ranking at the 29th percentile reflecting relatively weak rights
for participation in the political process, weak institutional
capacity, uneven application of the rule of law and a high level of
corruption. Russia also has an ESG.RS of 5 for International
Relations and Trade reflecting the detrimental impact of
sanctions.

RATING SENSITIVITIES

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

-- Structural, External: Additional tightening of sanctions that
    further undermine financial stability and external finances,
    or impede debt service payments.

-- Structural: further deterioration in international relations,
    negatively impacting Russia's willingness to repay debt.

-- Macro, External: Greater risks to macro-financial stability
    and external finances, for example from bank deposit outflows,
    dollarisation and capital flight, alongside implementation of
    sanctions constraining use of international reserves.

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

-- Structural, External: De-escalation of geopolitical tensions,
    for example by a negotiated settlement on Ukraine, resulting
    in less severe sanctions and improved confidence in Russia's
    willingness to repay debt.

-- Macro, External: Lower risk of macro-financial instability,
    for example due to sanctions having a less constraining impact
    on the CBR's ability to provide policy support and/or greater
    banking sector stability

SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO)

Fitch's proprietary SRM assigns Russia a score equivalent to a
rating of 'BBB+' on the Long-Term Foreign-Currency (LT FC) IDR
scale.

Fitch's sovereign rating committee adjusted the output from the SRM
to arrive at the final LT FC IDR by applying its QO, relative to
SRM data and output, as follows.

Structural: -2 notches (from -1 notch at the previous review), to
reflect heightened geopolitical risk, the impact of severe new
sanctions announced and risk of further sanctions on financing
flexibility, macroeconomic stability, and trend growth, as well as
greater domestic political risk and uncertainty, including over the
willingness to service debt.

Macro: -2 notches, to reflect heightened risk of macroeconomic
volatility, higher inflation, and weaker economic activity, not
currently captured in the SRM score.

Public Finances: -1 notch, to reflect reduced financing flexibility
due to sanctions.

External Finances: -2 notches, to reflect the impact of sanctions
in severely curtailing the use of Russia's international reserves
and issuance of sovereign external debt, as well as limiting
private sector access to international finance.

Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centred
averages, including one year of forecasts, to produce a score
equivalent to a LT FC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within
Fitch's criteria that are not fully quantifiable and/or not fully
reflected in the SRM.

BEST/WORST CASE RATING SCENARIO

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

ESG CONSIDERATIONS

Russia has an ESG Relevance Score of '5' for Political Stability
and Rights as World Bank Governance Indicators have the highest
weight in Fitch's SRM and are therefore highly relevant to the
rating and a key rating driver with a high weight. As Russia has a
percentile rank below 50 for the respective Governance Indicator,
this has a negative impact on the credit profile. The ESG.RS also
reflects geopolitical risk.

Russia has an ESG Relevance Score of '5' for Rule of Law,
Institutional & regulatory Quality and Control of Corruption as
World Bank Indicators have the highest weight in Fitch's Sovereign
Rating Model and are therefore highly relevant to the rating and a
key rating driver with high weight. As Russia has a percentile rank
below 50 for the respective Governance Indicators, this has a
negative impact on the credit profile.

Russia has an ESG Relevance Score of '5' for Russia for
International Relations and Trade reflecting the detrimental impact
of sanctions, which has a negative impact on the credit profile, is
highly relevant to the rating and a key rating driver with a high
weight.

Russia has an ESG Relevance Score of '4' for Human Rights and
Political Freedoms as the Voice and Accountability pillar of the
World Bank Governance Indicators is relevant to the rating and a
rating driver. As Russia has a percentile rank below 50 for the
respective Governance Indicator, this has a negative impact on the
credit profile.

Russia has an ESG Relevance Score of '4[+]' for Creditor Rights as
willingness to service and repay debt is relevant to the rating and
is a rating driver for Russia, as for all sovereigns. As Russia has
a track record of 20+ years without a restructuring of public debt
and captured in Fitch's SRM variable, this has a positive impact on
the credit profile.

Except for the matters discussed above, the highest level of ESG
credit relevance, if present, 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 to the way in which they
are being managed by the entity.


[*] RUSSIA: Scrambles to Keep Economy Running Following Sanctions
-----------------------------------------------------------------
Fatima Hussein at The Associated Press reports that the harsh
sanctions imposed on Russia and the resulting crash of the ruble
have the Kremlin scrambling to keep the country's economy running.


According to the AP, for Vladimir Putin, that means finding
workarounds to the Western economic blockade even as his forces
continue to invade Ukraine.

Former Treasury Department officials and sanctions experts expect
Russia to try to mitigate the impact of the financial penalties by
relying on energy sales and leaning on the country's reserves in
gold and Chinese currency, the AP discloses.  Mr. Putin also is
expected to move funds through smaller banks and accounts of elite
families not covered by the sanctions, deal in cryptocurrency and
rely on Russia's relationship with China, the AP notes.

Right now, "the biggest two avenues that Russia has are China and
energy," said John Smith, former director of Treasury's financial
intelligence and enforcement arm, the AP relates.

The U.S. and EU have levied sanctions on Russia's biggest banks and
its elite, frozen the assets of the country's Central Bank located
outside the country, and excluded its financial institutions from
the SWIFT bank messaging system -- but have largely allowed its oil
and natural gas to continue to flow freely to the rest of the
world, the AP states.

While Russia is likely to turn closer to China to make up for lost
supplies of goods and services it normally would get from the West,
Mr. Smith said, "they're also betting that their enormous energy
supplies will continue to be in demand, particularly during this
cold winter.  There's significantly more profit to be made from
their energy if they can get it to market."

However, Mr. Smith, as cited by the AP, said the Chinese and others
"will be driving incredibly hard bargains" now that Russia has
fewer willing buyers, and China will want to avoid being subject to
secondary sanctions or sanctions violations enforcement.

The official said additional export controls and new sanction
targets are also expected to be unveiled in the days and weeks
ahead to counter Russian sanction evasion efforts, the AP relates.

Officials have already been on the lookout for the use and creation
of front companies and alternative financial institutions that
Moscow might try to employ to get around sanctions, the AP
discloses.

On Feb. 28, the U.S. further tightened its sanctions to immobilize
any assets of the Russian Central Bank in the United States or held
by Americans, the AP recounts.  The Biden administration estimated
the move could impact hundreds of billions of dollars of Russian
funding, the AP notes.

The latest measures did include a carve-out that authorizes
energy-related transactions with the bank, the AP relays.  The
penalties also do not impact Russia's gold stockpile, which Putin
has been accumulating for several years, according to the AP.




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

UKRAINIAN RAILWAY: Fitch Cuts IDR to CCC on Sovereign Rating Action
-------------------------------------------------------------------
Fitch Ratings has downgraded JSC Ukrainian Railway's (UR) Long-Term
Issuer Default Ratings (IDRs) to 'CCC' from 'B'.

KEY RATING DRIVERS

The downgrade follows the downgrade of the Ukrainian sovereign on
25 February 2022 (see 'Fitch Downgrades Ukraine to 'CCC', dated
February 25, 2022 at www.fitchratings.com). This has a direct
impact on UR's rating as Fitch considers it a government-related
entity (GRE) of Ukraine based on Fitch's GRE Rating Criteria.

The downgrade reflects Fitch's unchanged assessment of the strength
of linkage with the Ukrainian government and the government's
incentive to support the UR since Fitch's last review on February
11, 2022.

DERIVATION SUMMARY

Fitch classifies UR as an entity ultimately linked to Ukraine
sovereign under its GRE Rating Criteria and assesses the GRE
support score at 27.5, reflecting a combination of following
assessment of Key Risk Factors: a 'Very Strong' assessment for
status, ownership and control, a 'Moderate' assessment for support
track record and socio-political implications of default, and a
'Strong' assessment for financial implications of default.

UR's 'b-' SCP, which is unaffected by this rating action, and the
GRE 27.5 score lead to UR's rating being capped by Ukraine's
sovereign IDR at 'CCC'.

RATING SENSITIVITIES

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

-- An upgrade of Ukraine's sovereign rating.

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

-- A downgrade of Ukraine's sovereign rating.

BEST/WORST CASE RATING SCENARIO

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

ISSUER PROFILE

UR is Ukraine's integrated railway group with core operations in
domestic freight segment. It also manages national railway
infrastructure, provides dispatching and passenger transportation
services.

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.


[*] Fitch Lowers LT Currency IDRs of 9 Ukrainian Banks to 'CCC'
---------------------------------------------------------------
Fitch Ratings, on March 2, 2022, downgraded nine Ukrainian local
and regional governments' (LRGs) Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDRs) to 'CCC' from 'B'. The
National Ratings are unaffected.

Under applicable credit rating agency (CRA) regulations, the
publication of the local and regional government reviews is subject
to restrictions and must take place according to a published
schedule, except where it is necessary for CRAs to deviate from the
schedule in order to comply with the CRAs' obligation to issue
credit ratings based on all available and relevant information and
disclose credit ratings in a timely manner.

Fitch interprets this provision as allowing it to publish a rating
review in situations where there is a material change in the
creditworthiness of the issuer that Fitch believes makes it
inappropriate for it to wait until the next scheduled review date
to update the rating or Outlook/Watch status. The next scheduled
review date for Fitch's rating on Dnipro, Kharkov, Kyiv, Lviv,
Odesa is April 29, 2022 and for Kryvyi Rih, Mariupol, Mykolaiv and
Zaporizhzhia is May 13, 2022, but Fitch believes the developments
for the issuer warrant such a deviation from the calendar and
Fitch's rationale for this is set out in the first part (High
weight factors) of the Key Rating Drivers section below.

KEY RATING DRIVERS

The downgrade of the nine Ukrainian LRGs' IDRs follows the
downgrade of the Ukrainian sovereign on February 25, 2022 (see
Fitch Downgrades Ukraine to 'CCC'), as the LRGs' ratings are capped
by the sovereign ratings.

The Risk Profiles remain 'Vulnerable' as they are not affected by
the rating action. No changes have been applied to the Debt
Sustainability (DS) score of any of the issuers, which remain 'aa'
for Dnipro, Kharkov, Kyiv, Lviv, Mariupol, Mykolaiv and Odesa and
'a' for Kryvyi Rih and Zaporizhzhia. The derivation of the
Standalone Credit Profiles is unaffected by the rating action.
Fitch will closely monitor the evolution of the situation
throughout the crisis and will take appropriate course of action in
case of need.

DERIVATION SUMMARY

KEY ASSUMPTIONS

Qualitative assumptions and assessments and their respective change
since the last review on February 11, 2022 for Dnipro, Kharkov,
Kyiv, Lviv, Mariupol, Mykolaiv and Odesa and November 19, 2021 for
Kryvyi Rih and Zaporizhzhia and weight in the rating decision:

-- Risk Profile: 'Vulnerable'/unchanged with low weight

-- Revenue Robustness: 'Weaker'/unchanged with low weight

-- Revenue Adjustability: 'Weaker'/unchanged with low weight

-- Expenditure Sustainability: 'Weaker'/unchanged low weight

-- Expenditure Adjustability: 'Weaker'/unchanged with low weight

-- Liabilities and Liquidity Robustness: 'Weaker'/unchanged with
    low weight

-- Liabilities and Liquidity Flexibility: 'Weaker'/unchanged with
    low weight

-- Debt sustainability: 'aa' category (Dnipro, Kharkov, Kyiv,
    Lviv, Mariupol, Mykolaiv, Odesa) 'a' category (Kryvyi Rih,
    Zaporizhzhia) /unchanged with low weight

-- Budget Loans or Ad-Hoc Support: N/A, unchanged with low weight

-- Asymmetric Risk: N/A, unchanged with low weight

-- Sovereign Cap: Yes, 'CCC', lowered with high weight

-- Rating Floor: N/A, unchanged with low weight

Quantitative assumptions - issuer-specific: unchanged with low
weight

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

Quantitative assumptions - sovereign-related (note that no weights
and changes since the last review are included as none of these
assumptions were material to the rating action)

Figures as per Fitch's sovereign data for 2020 and forecast for
2023, respectively:

-- GDP per capita (US dollar, market exchange rate): 3,738; 5,390

-- Real GDP growth (%): -3.8; 3.5

-- Consumer prices (annual average % change): 2.7; 5.9

-- General government balance (% of GDP): -6.0; -2.8

-- General government debt (% of GDP): 53.5; 42.2

-- Current account balance plus net FDI (% of GDP): 3.3; -0.8

-- Net external debt (% of GDP): -11.3; -7.3

-- IMF Development Classification: EM (emerging market)

RATING SENSITIVITIES

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

-- An upgrade of Ukraine's IDRs would lead to an upgrade of the
    LRGs' IDRs

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

-- A downgrade of Ukraine's IDRs would lead to a downgrade of the
    LRGs' IDRs

BEST/WORST CASE RATING SCENARIO

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

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

The city's ratings are capped by the sovereign.

ESG CONSIDERATIONS

City of Lviv has an ESG Relevance Score of '4' for Political
Stability and Rights due to their exposure to impact of political
pressure or to instability of operations and tendency toward
unpredictable policy shifts, which has a negative impact on the
credit profile, and is relevant to the rating[s] in conjunction
with other factors.

Dnipro City has an ESG Relevance Score of '4' for Political
Stability and Rights due to their exposure to impact of political
pressure or to instability of operations and tendency toward
unpredictable policy shifts, which has a negative impact on the
credit profile, and is relevant to the rating[s] in conjunction
with other factors.

Kharkov, City of has an ESG Relevance Score of '4' for Political
Stability and Rights due to their exposure to impact of political
pressure or to instability of operations and tendency toward
unpredictable policy shifts, which has a negative impact on the
credit profile, and is relevant to the rating[s] in conjunction
with other factors.

Kryvyi Rih City has an ESG Relevance Score of '4' for Political
Stability and Rights due to their exposure to impact of political
pressure or to instability of operations and tendency toward
unpredictable policy shifts, which has a negative impact on the
credit profile, and is relevant to the rating[s] in conjunction
with other factors.

Kyiv, City of has an ESG Relevance Score of '4' for Political
Stability and Rights due to their exposure to impact of political
pressure or to instability of operations and tendency toward
unpredictable policy shifts, which has a negative impact on the
credit profile, and is relevant to the rating[s] in conjunction
with other factors.

Mariupol City has an ESG Relevance Score of '4' for Political
Stability and Rights due to their exposure to impact of political
pressure or to instability of operations and tendency toward
unpredictable policy shifts, which has a negative impact on the
credit profile, and is relevant to the rating[s] in conjunction
with other factors.

Mykolaiv, City of has an ESG Relevance Score of '4' for Political
Stability and Rights due to their exposure to impact of political
pressure or to instability of operations and tendency toward
unpredictable policy shifts, which has a negative impact on the
credit profile, and is relevant to the rating[s] in conjunction
with other factors.

Odesa, City of has an ESG Relevance Score of '4' for Political
Stability and Rights due to their exposure to impact of political
pressure or to instability of operations and tendency toward
unpredictable policy shifts, which has a negative impact on the
credit profile, and is relevant to the rating[s] in conjunction
with other factors.

Zaporizhzhia City has an ESG Relevance Score of '4' for Political
Stability and Rights due to their exposure to impact of political
pressure or to instability of operations and tendency toward
unpredictable policy shifts, which has a negative impact on the
credit profile, and is relevant to the rating[s] 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.




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

BISSET ADAMS: Enters Voluntary Liquidation, Owes GBP57,000
----------------------------------------------------------
Will Ing at Architect's Journal reports that architecture practice
Bisset Adams has entered voluntary liquidation after 27 years of
trading.

The London-based practice was known for designing showrooms for car
manufacturers, as well as public projects such the Idea Store
programme for Tower Hamlets Council and its recently completed
Blackpool Conference Centre.

When it entered liquidation on Feb. 28, the practice had 15 staff
members and one live project: the interior stages of its GBP5
million Southmere Library at Thamesmead, Architect's Journal
relates.  The practice was selected ahead of Architecture 00 and
Adam Khan Architect, among others, to win the job in 2017.

According to Architect's Journal, Sarah Godowski, director of
Bisset Adams, who joined the practice in 1998, said the business's
collapse was an "absolute tragedy", adding that Brexit was "top of
the list" of reasons why the practice was unable to survive.

"We had a lot of work in Europe on the automotive side of the
business, and over the last years, we experienced a slow decline --
we tried everything we could to keep going."

She added that profitability for practices has fallen away relative
to other parts of the construction sector and admitted the company
had lost money on its work on the Blackpool Conference Centre.

"The RIBA has presided over a race to bottom for fees, and it has
become a very onerous profession in terms of liability and
responsibility," Architect's Journal quotes Ms Godowski as saying.

Bisset Adams reported a loss of GBP264,000 and net liabilities of
GBP57,000 in its last published financial results, for the year
ended November 30, 2020, Architect's Journal discloses.

Details of the company's financial position at its time of collapse
are expected to be published by liquidators Mick Sanders and
Georgina Eason of MHA MacIntrye Hudson in coming days, Architect's
Journal notes.


JACK MEDIA: Goes Into Administration, Owes Over GBP6.2 Million
--------------------------------------------------------------
RadioToday reports that JACK Media National Limited, the owner of
Union JACK Radio, Union JACK Dance and Union JACK Rock, has gone
into administration and made staff redundant.

According to RadioToday, the company had over GBP6.2 million in net
liabilities in its last filled accounts at September 2020, up from
GBP4.3 million in 2019.

Union JACK Radio launched in 2016 and was joined in 2020 by the
rock and dance spin-offs.

The Joint Administrators are Stephen Katz of Begbies Traynor and
Daniale Leigh of Leigh Consultancy, RadioToday discloses.

The local stations using the JACK brand are unaffected by the move,
with JACKfm, JACK 2 Hits and JACK 3 Chill continuing to operate as
usual under the JACK Media Oxfordshire company, RadioToday states.


PROVIDENT FINANCIAL: Fitch Alters Outlook on 'BB' IDR to Stable
---------------------------------------------------------------
Fitch Ratings has revised the Outlook on Provident Financial plc's
(Provident) Long-Term Issuer Default Rating (LT IDR) to Stable from
Negative and affirmed the IDR and senior unsecured long-term debt
rating at 'BB'.

KEY RATING DRIVERS

Limited Franchise; Capital Cushion: The revision of the Outlook
reflects the discontinuation of the problematic home credit segment
and stabilising performance in the rest of the group. Provident's
IDR is underpinned by a strong regulatory capital headroom, and an
entrenched but narrow franchise in consumer and auto lending to
UK's underbanked population. Good funding access, a comfortable
liquidity position and wide operational margins also support the
ratings.

Fitch sees the concentrated (by income sources and geography)
business model relying on non-prime lending as a rating constraint,
augmented by modest tangible equity and weak recent profitability.

Home Credit Discontinued: Home credit used to be a very lucrative
product adding income diversification and cash generation capacity,
but was the source of problems and losses for Provident in previous
years. Winding down this business line in 2021 allowed Provident to
reduce regulatory risk, lessen the risk density of assets and
improve the predictability of cost of risk. Discontinuation costs
(GBP96 million in 2021) were in line with the management's
expectations

Good Capitalisation; Limited Scale: Provident's capitalisation (at
both group and Vanquis Bank level) is considered a rating strength,
together with a good liquidity profile and proven funding access
with retail deposits and diversified wholesale sources. The ratings
also reflect the group's moderate scale (compared with higher-rated
non-bank lenders and UK challenger bank peers), inherently high
credit impairments and ongoing (albeit declining) exposure to
regulatory and political developments in the UK non-standard credit
markets.

Provisioning to Increase amid Resuming Growth: The 2021 performance
of core subsidiaries (Vanquis Bank and Moneybarn) was underpinned
by exceptionally low provisioning costs. Fitch expects Provident to
resume moderate growth in both its business segments in 2022. This
will help offset increased provisioning costs as the cost of risk
normalises.

Healthy Capital Headroom: Fitch considers Provident group's
headroom relative to minimum regulatory capital requirement
appropriate. This was helped by the amortisation of the loan
portfolio coupled with regulatory forbearance, including the
abolition of counter-cyclical buffers. Provident's regulatory
capital requirement is high, particularly compared with UK high
street banks. While Fitch expects management to continue to
maintain adequate headroom of capital above requirements, leverage
will increase as loan book growth picks up.

Diversified Funding: Provident's funding base includes retail
deposits (at Vanquis Bank) as well as various wholesale funding
sources. The group has manageable wholesale repayment needs: zero
in 2022 and GBP230 million in 2023. Provident has a sound record of
accessing a variety of funding markets including in challenging
market conditions, including recent placements of Tier 2 notes in
late 2021. Retail deposits at Vanquis Bank provide further
stability for Provident's funding mix.

Debt Ratings: Provident's senior unsecured notes are rated in line
with the group's LT IDR, reflecting Fitch's expectation of average
recovery prospects.

The Tier 2 notes' rating is two notches below Provident's LT IDR,
reflecting poor recovery prospects in the event of a failure of
Provident, in line with Fitch's base-case notching for Tier 2 debt.
Fitch has not applied additional notching as the issue terms do not
contain features that give rise to incremental non-performance
risk.

ESG - Social Impacts: Provident has an ESG Relevance Score of '4'
each for Exposure to Social Impacts and Customer Welfare stemming
from a business model focused on non-prime and sub-prime consumer
lending. This exposes the group to shifts of consumer or social
preferences and to increasing regulatory scrutiny, in particular on
loans to low-income individuals. This has a moderately negative
influence on the pricing strategy, product mix, and targeted
customer base.

RATING SENSITIVITIES

IDRs

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

-- A reduction in the strength of capitalisation in the form of
    reduced regulatory capital headroom reduction below GBP50
    million and a capital ratio approaching the regulatory limit
    as well as a weakening in the quality of capital.

-- Inefficiency of the business model reflected in, e.g. the
    inability to restore a comfortable operational profitability
    either due to lack of scale or cost of provisioning.

-- A notable weakening of the liquidity profile or funding access
    indicated by a hike in funding cost and/or depletion of
    unrestricted liquidity.

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

-- Upside for the ratings is limited in the short term and would
    require gaining revenue diversification and business scale
    (relative to higher-rated peers) coupled with a strong and
    sustainable rebound in operational profitability.

DEBT RATINGS

The senior unsecured debt and Tier 2 notes ratings are principally
sensitive to a change in Provident's Long-Term IDR and material
changes to Fitch's recovery expectations for the bonds.

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

-- The group's senior debt could be downgraded if the layer of
    senior group debt plus junior debt plus excess capital
    (outside the bank) decreases notably against structurally
    preferred retail deposit funding.

BEST/WORST CASE RATING SCENARIO

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

ESG CONSIDERATIONS

Provident has an ESG Relevance Score of '4' each for Exposure to
Social Impacts and Customer Welfare - Fair Messaging, Privacy &
Data Security. This is driven by its exposure to shifts of consumer
or social preferences or to regulatory measures. This has a
negative impact on the credit profile and is relevant to the rating
in conjunction with other factors.

On other ESG credit relevance scores the highest level is a '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.


SILK INDUSTRIES: Future Uncertain After Factory Site Repossessed
----------------------------------------------------------------
Caroline Wadham at Drapers reports that the future of Sudbury-based
textile manufacturer Vanners has been thrown into doubt after its
factory site was repossessed by administrators.

The business and assets of Silk Industries, the Sudbury-based
textiles manufacturer that trades as Vanners, were bought out of
administration by businessman Roger Gawn, who owns British luxury
goods maker Swaine Adeney Brigg, on Christmas Eve in 2020, Drapers
discloses.

Mr. Gawn did not purchase the Vanners Silk factory site in Weavers
Lane, Suffolk, and instead the joint administrators granted a
12-month lease to give the company time to identify a new location
and move the business, Drapers notes.

Later on, Mr. Gawn said he was negotiating to buy the factory site
from the administrators to ensure the future of the business, which
was founded in 1740, Drapers relates.  However, the factory
building has since been repossessed by the administrator after Gawn
failed to complete an agreement he had made to buy the premises,
Drapers states.

According to Drapers, James Lumb, managing director at Interpath
Advisory and joint administrator of Silk Industries Limited,
explained: "In December 2021, we agreed heads of terms to sell the
site to a company controlled by Roger Gawn, the owner of Vanners.
After reaching that agreement, and despite regular reminders, the
deadlines we set to deliver the sale were missed. Most recently,
this was a deadline to exchange contracts on the sale on Monday,
January 31.

"As is our statutory duty, we need to act in the best interests of
the company's creditors. Regretfully, having exhausted the
opportunities to deliver a transaction with the company related to
Vanners, we concluded that we had little option but to take control
of the site and market it for sale to other potential buyers."

The building, which was repossessed by the administrator last
month, has been put up for sale -- putting the fate of the 15 staff
at risk, Drapers recounts.

Mr. Gawn told Drapers that he was not able to get the mortgage
ready in time: "By the time we got to the week before the exchange
date (in January), it was clear that that it would be impossible
for us to exchange in time. We had to take a mortgage out on the
property so we were in the process of getting our finances and
documentation in place.  Unfortunately it was not quick enough to
meet the January 31, deadline."

Mr. Gawn told Drapers he felt "embittered" by the situation: "I
have kept all 15 staff on and paid them [since the site has been
repossessed].

"Staff have been able to complete administrative tasks but if you
cannot weave silk it is difficult to stay in business.  We then
wrote to the administrators asking if we could finish the orders we
were processing [before May].  They refused to allow us to do
anything to help run us the business in the period we have left."

According to Drapers, he is now planning to split Vanners
operations between Sudbury and Norfolk -- where he already owns
another site -- and is looking for a site in Sudbury: "I am
currently looking to keep half the business in Sudbury and relocate
the remaining half to an industrial site I own in Norfolk.  We are
going to stick with silk weaving in Sudbury and in Norfolk we will
focus on other types of manufacturing such as cashmere and wool.
I'm planning to keep our existing staff on and move them to the new
Sudbury site."

However, Mr. Gawn, as cited by Drapers, said if he is unable to
secure a site and set-up operations by mid-May that Vanners might
not have a future: "When I bought the business, I was its only
credible buyer and paid for it in cash.  I've invested in it over
the last year to get it up-and-running again.  I rescued it from
extinction and the administrators are putting it back into
extinction.  If I can't get out and set it up in alternative
premises by the middle of May, it's the end of the line for the
business."


SOVA CAPITAL: Faces Collapse Over "Severe Liquidity Problems"
-------------------------------------------------------------
Lucca De Paoli, Harry Wilson, and Jonathan Browning at Bloomberg
News report that Sova Capital Limited, a London-based broker owned
by banker Roman Avdeev, is facing collapse due to "severe liquidity
problems," the latest sign of the turmoil sweeping businesses with
ties to Russia.

Sova should enter special administration, a form of insolvency that
means the administrator ensures there is minimal disruption to
financial markets as a result of a firm's collapse, a London judge
ruled on March 3, Bloomberg relates.  

Sova is an independent brokerage and investment bank with a focus
on emerging markets.

Sova Capital offers a broad range of investment banking services,
trading in everything from stocks and bonds to commodities and
foreign exchange.  At the end of 2020, the firm had total assets on
the balance sheet of its U.K. business of US$2.59 billion, of which
cash and cash equivalents made up US$596 million, Bloomberg relays,
citing the company's annual report.  Client deposits held in
segregated accounts totaled $69 million, according to the filing.

According to Bloomberg, lawyers for Sova said at the hearing that
the company, which has more than GBP1.5 billion of client assets
(US$2 billion) and 50 million pounds of client money, is unable to
pay its debts and has "significant exposure to Russian interests."
The firm was prevented from receiving a "substantial cash
injection" from its shareholders due to sanctions on Russian
financial institutions, attorney Mark Phillips said in a separate
legal filing, Bloomberg notes.

Lawyers for the firm said in the filing that Sova suffered "severe
liquidity problems" since Russia's invasion of Ukraine last week,
Bloomberg relates.

Funding lines from Russian counterparties have been reduced and its
trades on Moscow's exchange can't be cleared, Bloomberg states.

Sova Capital, as cited by Bloomberg, said in a statement on its
website that the administrators "will assist in the process of
helping Sova Capital manage this difficult situation and fulfill
its commitments to clients and counterparties."

Teneo has been appointed as the administrator, Bloomberg
discloses.




===============
X X X X X X X X
===============

[*] BOOK REVIEW: Bankruptcy and Secured Lending in Cyberspace
-------------------------------------------------------------
Author: Warren E. Agin
Publisher: Bowne Publishing Co.
List price: $225.00
Review by Gail Owens Hoelscher

Red Hat Inc. finds itself with a high of 151 5/8 and low of 20 over
the last 12 months! Microstrategy Inc. has roller-coasted from a
high of 333 to a low of 7 over the same period! Just when the IPO
boom is imploding and high-technology companies are running out of
cash, Warren Agin comes out with a guide to the legal issues of the
cyberage.

The word "cyberspace" did not appear in the Merriam-Webster
Dictionary until 1986, defined as "the on-line world of computer
networks." The word "Internet" showed up that year as well, as "an
electronic communications network that connects computer networks
and organizational computer facilities around the world."
Cyberspace has been leading a kaleidoscopic parade ever since, with
the legal profession striding smartly in rhythm. There is no
definition for the word "cyberassets" in the current
Merriam-Webster. Fortunately, Bankruptcy and Secured Lending in
Cyberspace tells us what cyberassets are and lays out in meticulous
detail how to address them, not only for troubled technology
companies, but for all companies with websites and domain names.
Cyberassets are primarily websites and domain names, but also
include technology contracts and licenses. There are four types of
assets embodied in a website: content, hardware, the Internet
connection, and software. The website's content is its fundamental
asset and may include databases, text, pictures, and video and
sound clips. The value of a website depends largely on the traffic
it generates.

A domain name provides the mechanism to reach the information
provided by a company on its website, or find the products or
services the company is selling over the Internet. Examples are
Amazon.com, bankrupt.com, and "swiggartagin.com." Determining the
value of a domain name is comparable to valuing trademark rights.
Domain names can come at a high price! Compaq Computer Corp. paid
Alta Vista Technology Inc. more than $3 million for "Altavista.com"
when it developed its AltaVista search engine.

The subject matter covered in this book falls into three groups:
the Internet's effect on the practice of bankruptcy law; the ways
substantive bankruptcy law handles the impact of cyberspace on
basic concepts and procedures; and issues related to cyberassets as
secured lending collateral.

The book includes point-by-point treatment of the effect of
cyberassets on venue and jurisdiction in bankruptcy proceedings;
electronic filing and access to official records and pleadings in
bankruptcy cases; using the Internet for communications and
noticing in bankruptcy cases; administration of bankruptcy estates
with cyberassets; selling bankruptcy estate assets over the
Internet; trading in bankruptcy claims over the Internet; and
technology contracts and licenses under the bankruptcy codes. The
chapters on secured lending detail technology escrow agreements for
cyberassets; obtaining and perfecting security interests for
cyberassets; enforcing rights against collateral for cyberassets;
and bankruptcy concerns for the secured lender with regard to
cyberassets.

The book concludes with chapters on Y2K and bankruptcy; revisions
in the Uniform Commercial Code in the electronic age; and a
compendium of bankruptcy and secured lending resources on the
Internet. The appendix consists of a comprehensive set of forms for
cyberspace-related bankruptcy issues and cyberasset lending
transactions. The forms include bankruptcy orders authorizing a
domain name sale; forms for electronic filing of documents;
bankruptcy motions related to domain names; and security agreements
for Web sites.

Bankruptcy and Secured Lending in Cyberspace is a well-written,
succinct, and comprehensive reference for lending against
cyberassets and treating cyberassets in bankruptcy cases.



                           *********


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 2022.  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,
contact Peter Chapman at 215-945-7000.


                * * * End of Transmission * * *