/raid1/www/Hosts/bankrupt/TCREUR_Public/220315.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

          Tuesday, March 15, 2022, Vol. 23, No. 47

                           Headlines



B E L A R U S

LLC EUROTORG: Fitch Cuts Foreign Curr. IDR to 'B-', On Watch Neg.


C Y P R U S

RONIN EUROPE: S&P Cuts LT Rating to 'B', Remains on Watch Neg.


F R A N C E

SPIE SA: S&P Alters Outlook to Stable, Affirms 'BB' ICR


G R E E C E

FRIGOGLASS SAIC: S&P Downgrades ICR to 'CCC', Outlook Negative


I T A L Y

ITALIA WANBAO: Submission of Binding Offers Ends Today
SIENA PMI 2016: Fitch Raises Class D Notes to 'BB+'


M A C E D O N I A

IDEVELOP: MSE to Delist Shares Due to Bankruptcy
SKOVIN: MSE to Delist Shares Due to Bankruptcy


R U S S I A

CREDIT UNION: S&P Cuts ICR to 'CCC+', On CreditWatch Developing
SOVCO CAPITAL: Fitch Withdraws 'B-' Issuer Default Ratings
[*] Fitch Cuts 11 Russian Utilities' Rating to 'CC'
[*] Fitch Cuts 3 Russian Diversified Industrial Corporates to 'CC'
[*] Fitch Cuts IDRs of 3 Russian Port & Airport Operators to 'CC'

[*] Fitch Cuts Ratings of Russian Natural Resources Cos. to 'CC'
[*] Fitch Lowers LT IDRs of 10 Russian Companies to 'CC'
[*] Fitch Lowers LT IDRs of 20 Russian Government Units to 'C'
[*] Fitch Lowers LT IDRs of 5 Russian Transport Companies to 'CC'
[*] Fitch Lowers Ratings of 2 Russian Homebuilders to 'CC'

[*] RUSSIA: IMF Head Says Sovereign Default No Longer Improbable


U K R A I N E

UKRAINE: S&P Keeps 'B-/B' Sovereign Credit Ratings on Watch Neg.


U N I T E D   K I N G D O M

ATRIUM EUROPEAN: Fitch Places 'BB' LT IDR on Watch Negative
D&M MEATS: Owes More Than GBP1.5 Million to Creditors
IVC EVIDENSIA: S&P Affirms 'B' Issuer Credit Rating, Outlook Stable
J C ROOK: Enters Administration, Staff Face Redundancy
LOANS AT HOME: Goes Into Administration Following FCA Review

WELLESLEY: Nears End of Company Voluntary Arrangement

                           - - - - -


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B E L A R U S
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LLC EUROTORG: Fitch Cuts Foreign Curr. IDR to 'B-', On Watch Neg.
-----------------------------------------------------------------
Fitch Ratings has downgraded LLC Eurotorg's Long-Term
Foreign-Currency (LTFC) Issuer Default Rating (IDR) to 'B-' from
'B' and placed it on Rating Watch Negative (RWN).

The rating action follows the downgrade of Belarus's Country
Ceiling to 'B-', which constrains Eurotorg's rating. Relative
resilience of the food retail sector to economic crises could mean
some insulation to external shocks and to the risk of the
government defaulting on its obligations, which supports the LTFC
IDR at one notch above that of the sovereign.

Eurotorg's 'B-' IDR continues to reflect the group's small scale,
limited diversification outside its domestic market and high
foreign-exchange (FX) risks, which weigh on its financial
flexibility relative to international rated peers'. These
weaknesses are balanced by its conservative capital structure and a
strong position in Belarus's food retail market.

The RWN reflects high uncertainty in the operating and funding
environment for Belarussian corporates.

KEY RATING DRIVERS

Country-Ceiling Constraint: Eurotorg's 'B-' IDR is aligned with the
Country Ceiling of Belarus, which reflects new sanctions and the
possibility of new measures related to Belarus's role in Russia's
invasion of Ukraine, combined with close economic and financial
links with Russia. The Country Ceiling constrains Eurotorg's rating
as the company does not have export earnings, foreign assets and
financial support from a foreign parent or strategic partners that
may allow the rating to be above the applicable Country Ceiling.

High FX Risks: Eurotorg faces high FX risks as its debt is solely
in foreign currencies, while its revenue is in Belarusian roubles.
In addition, part of Eurotorg's costs (2020: 2.5% of revenue) is
also exposed to FX risk as its operating-lease agreements are
primarily in hard currencies (93% of total rental payments). Fitch
estimates that a 30% devaluation of the Belarusian rouble against
hard currencies may drive up to a 1.2x leverage increase under
Fitch's conservative assumption that selling prices do not increase
in line with resulting inflation.

High Inflation to Pressure Margins: Fitch projects Eurotorg's
margins will be hit by high inflation and higher rent expenses as
almost 100% of its rents are in hard currencies. Fitch does not
expect the group to be able to fully pass on higher prices to
consumers given a prospective decline in household income in
Belarus. This is somewhat mitigated by Eurotorg's recently realised
cost-saving measures, including improved commercial terms with
suppliers, renegotiation of rents and staff-cost optimisation.

Competition from Hard Discounters: Consumer interest in the
hard-discounter format has been increasing in Belarus over the past
five years and Fitch believes that competition from hard
discounters, including Russian Svetofor and Dobrotsen, has
intensified. To fend off competition, Eurotorg ensures its selling
prices remain attractive to consumers and also develops its new
soft- and hard-discounter formats, which together accounted for
almost 25% of its retail sales in 1H21. Fitch does not expect
increased competition to weaken Eurotorg's credit profile, although
it may put some pressure on its profitability and cash generation.

FCF to Turn Positive: Fitch expects the free cash flow (FCF) margin
to turn positive and gradually improve to above 1% over 2022-2024
(2020: -1.5%), which is solid for the rating, and is driven by
lower investments in working capital. This is despite higher capex
associated with an increased number of planned store openings.
Fitch also assumes Eurotorg will continue pursuing its capex-light
expansion strategy and will open primarily small leasehold stores.

Moderate Leverage: Eurotorg has been operating under moderate funds
from operations (FFO) adjusted gross leverage of 3.8x-4.0x over the
past four years. Fitch expects leverage to increase to above 4.0x
in 2022-2023, primarily driven by the sharp local-currency
devaluation as a result of the conflict between Russia and Ukraine.
This financial structure is commensurate with a 'B' rating, and
leverage parameters are aligned with higher-rated peers' as
Eurotorg's more conservative capital structure offsets FX risks and
the volatility of operating performance. However, the Country
Ceiling constrains the IDR at 'B-'.

Largest Food Retailer in Belarus: The rating is supported by
Eurotorg's strong market position as the largest food retailer in
Belarus, with a stable 19% market share by sales over the past five
years, which is around 4x its largest competitor's. The group
benefits from its well-recognised Euroopt brand across the country
and from increased consumer appeal for its new discounter banners
Hit! and Groshyk.

Small Market, Limited Diversification: The rating considers
Eurotorg's limited geographic diversification as its operates only
in Belarus. Presence across different regions of the country puts
it in a stronger position than competitors, but does not reduce
concentration risks, as Belarus is a small economy. The small size
of the domestic market also leads to Eurotorg's substantially
smaller business scale (EBITDAR equivalent to around USD240 million
in 2020) than that of other Fitch-rated food retailers, such as
Russian retailers X5 Retail Group N.V. (B/RWN) and Lenta LLC
(B/RWN).

DERIVATION SUMMARY

Fitch applies its Food-Retail Navigator framework to assess
Eurotorg's rating and position relative to peers'. Fitch views
Eurotorg's market position and bargaining power in Belarus as
stronger than those of Russian peers X5 and Lenta in their
respective markets. This is due to the large distance in market
share between Eurotorg and its next competitor, and significant
price advantage. However, in absolute terms based on annual
EBITDAR, Eurotorg is substantially smaller than its Russian peers,
has material exposure to FX risks and slightly higher leverage. As
a result, Eurotorg is rated lower than its Russian peers.

Eurotorg's ratings also take into consideration higher-than-average
systemic risks associated with the Belarusian business and
jurisdictional environment.

The current operating environment and hence financial flexibility
are weaker in Russia than in Belarus but both countries face
significant uncertainty.

No parent-subsidiary linkage or Country Ceiling aspects were
applied to these ratings.

KEY ASSUMPTIONS

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

-- US dollar/Belarusian rouble at 3.2 at end-2022, 3 at end-2023
    and 2.9 at end-2024;

-- CAGR of 3% in selling space in 2022-2024;

-- Low single-digit like-for-like (LfL) sales decline in 2022
    2024;

-- EBITDA margin to decline to 6.8% in 2022 and gradually improve
    to 7.1% by 2024;

-- Working-capital outflow at around BYN40 million annually to
    2024;

-- Capex at around 1.6%-1.7 of sales until 2024;

-- Dividends not exceeding USD25 million a year until 2024;

-- No M&A in 2022-2024.

RECOVERY ASSUMPTIONS

Eurotorg's USD300 million loan participation notes (LPN) are issued
by Bonitron Designated Activity Company, an SPV domiciled in
Ireland, whose sole purpose is to issue notes and provide a loan to
Eurotorg. The notes are secured by a loan to Eurotorg, which ranks
equally with the company's other senior unsecured obligations.
Eurotorg is the major operating company within a broader Eurotorg
group, accounting for most of the group's assets and EBITDA.

Our recovery analysis assumes that Eurotorg would be considered a
going concern in bankruptcy and that it would be reorganised rather
than liquidated. Fitch has assumed a 10% administrative claim.

Eurotorg's going-concern EBITDA of USD110 million is 38% below
Fitch-adjusted EBITDA of USD159 million for LTM to end-June 2021.
It considers its high FX risks and reflects Fitch's view of a
sustainable, post-reorganisation EBITDA, upon which Fitch based the
valuation of the company.

Fitch uses an enterprise value (EV)/EBITDA multiple of 4.0x to
calculate a post-reorganisation valuation, reflecting a mid-cycle
multiple. This is in line with EV multiple Fitch uses for Ukrainian
poultry producer MHP. For the debt waterfall assumptions, Fitch
used Eurotorg's debt at 30 June 2021. Lease liabilities were not
included in the debt waterfall, in line with Fitch's criteria.

Eurotorg's USD64 million of secured debt ranks prior to LPNs in the
waterfall. For the purpose of recovery calculation Fitch used an
LPN amount of around USD200 million, representing an external debt
obligation, as around USD100 million is repurchased by the company
but not redeemed. The waterfall analysis generated a ranked
recovery for senior unsecured LPNs in the 'RR3' band, indicating a
higher rating than the IDR as the waterfall analysis output
percentage on current metrics and assumptions was 58%. However, the
LPNs are rated in line with Eurotorg's IDR of 'B-' as notching up
is not possible due to the Belarusian jurisdiction. Therefore, the
waterfall analysis output percentage is capped at 50%/'RR4'.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to an
upgrade:

-- An upgrade of Belarus's Country Ceiling would be a
    prerequisite for any upgrade.

-- Successful execution of expansion strategy as demonstrated by
    growing LfL sales and stable profitability, leading to funds
    from operations (FFO) adjusted gross leverage below 5.0x and
    FFO fixed-charge coverage trending towards 2x on a sustained
    basis.

-- Slightly positive or neutral FCF and maintenance of a
    conservative financial policy.

-- Adequate access to external liquidity.

Factor that could, individually or collectively, lead to rating
affirmation and stable outlook:

-- Stabilising operating environment and improved access to
    funding in hard currencies.

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

-- Sustained operating underperformance, including declining LfL
    sales and profitability leading to FFO adjusted gross leverage
    above 6.0x and FFO fixed-charge coverage below 1.5x on a
    sustained basis;

-- Negative FCF leading to liquidity pressures;

-- Difficulties in obtaining sufficient funding 12-18 months
    ahead of large debt maturities, or obtaining those on more
    onerous terms;

-- Downgrade of Belarus's Country Ceiling.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: At end-February 2022, Eurotorg had
sufficient liquidity as reported cash of USD38 million was
sufficient to cover short-term debt of USD18 million. Fitch does
not expect any major near-term refinancing needs as majority of its
borrowings come due after 2022 with the largest maturity in 2025
(Eurobond).

ISSUER PROFILE

Eurotorg is the largest retailer in the Belarus grocery retail
market with a market share in 2020 of around 19%, according to the
company's estimations based on the National Statistical Committee.
As of end-2021, its retail store portfolio consisted of 160 rural
convenience stores, 710 urban convenience stores, 117 supermarkets
and 36 hypermarkets.

ESG CONSIDERATIONS

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



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

RONIN EUROPE: S&P Cuts LT Rating to 'B', Remains on Watch Neg.
--------------------------------------------------------------
S&P Global Ratings lowered its long-term rating on brokerage
service provider Cyprus-based Ronin Europe Ltd. to 'B' from 'BB-'
and affirmed its short-term rating at 'B'. The long-term rating
remains on CreditWatch with negative implications, where S&P placed
it on Feb. 28, 2022.

The turmoil in the Russian capital markets and the capital controls
that have been imposed have weakened the business prospects of
Ronin Europe and the broader group, Ronin Partners B.V., in S&P's
view.

S&P Global Ratings has changed its approach to rating Ronin Europe,
prompting the rating action. Previously, the ratings on Ronin
Europe reflected our assessment of the creditworthiness of the
wider group, Ronin Partners B.V., and Ronin Europe's core status
within the group. It is the main operational entity for the group's
international business and an important booking center. As a
result, S&P equalized the ratings on Ronin Europe with group
stand-alone credit profile (SACP) of its parent, Ronin Partners.
S&P did not assign an SACP to Ronin Europe.

S&P said, "We have now delinked the ratings on Ronin Europe from
those on the group. In our view, the group does not exert
sufficient control over Ronin Europe to adversely affect its credit
quality. The group is likely to be exposed to significant credit
stress because of the turmoil in the Russian capital markets, but
this has had a limited impact on Ronin Europe's credit profile. We
do not expect Ronin Europe's affiliates to have a material negative
influence on it in future. Most of Ronin Europe's clients are
located outside Russia, and it does not depend on cross-border
execution capabilities to provide brokerage services to them.

"Ronin Europe is domiciled and regulated in Cyprus and we
understand that the Cyprus securities regulator, CySec, has taken a
proactive stance. It is likely to prevent Ronin Europe from moving
its capital and liquidity to other entities of the group. Ronin
Europe holds itself separate from the group; its financial
performance and funding are independent from the group, and it has
no significant operational dependence on other group entities. Our
credit analysis on Ronin Europe is therefore based on its
stand-alone characteristics."

The starting point for S&P's long-term rating on Ronin Europe is
the anchor of 'b+'. It is derived from the blended economic risk
score of '7' for the countries where the group has exposures and an
industry risk score of '8' for the Cyprus banking sector. The
anchor for securities firms that are supervised by the Cypriot
regulator, such as Ronin Europe, is only one notch below the anchor
for Cyprus banks, rather than the standard two notches, because
Cyprus has more prudent regulation than many other countries.

S&P said, "We expect Ronin Europe to remain a niche financial
boutique firm that offers brokerage services to a limited number of
long-term, loyal clients. We expect the firm's revenue to remain
concentrated on its largest clients. The firm also has a
proprietary investment portfolio of bonds of international
governments and corporates in developed and emerging markets.
Russian corporates and government bonds accounted for about 15% of
its assets as of Feb. 22, 2022. Ronin Europe is ultimately owned by
its management, via Ronin Partners. Group CEO Andrey Gaek is the
main beneficiary and owns a 75% stake. Mr. Gaek's two business
partners jointly own the remainder.

"We expect Ronin Europe to maintain its capitalization at very
strong levels in 2022, even if we assume a full write-off of its
Russian securities. This is based on our assumption that it will
not pay any dividends or move capital to other entities in the
group and will not materially expand its balance sheet. We expect
Ronin Europe's risk-adjusted capital ratio to remain above 50% in
2022. In our view, the capital is of high quality, with no Tier 2
capital. Its profitability in 2022 will likely be lower than in
2021 because its brokerage commissions could be lower and its
Russian securities subject to heavy negative revaluation. We
anticipate that Ronin Europe will maintain its investment
philosophy, which is based on its risk-averse culture and
diversified investment portfolio. We expect Ronin to continue to
predominantly fund its assets with capital and to maintain an
adequate funding and liquidity profile.

"Our issuer credit rating on Ronin Europe includes a one notch
negative adjustment. We apply this adjustment to the SACP, as part
of our comparable ratings analysis, to signify that a 'b+' SACP is
usually associated with larger institutions that have much better
business diversity, a larger scale of operations, a more-advanced
strategy, and better corporate governance. As a result, the SACP is
'b' and the rating is 'B'."

CreditWatch

The rating was placed on CreditWatch negative because of the risks
to Ronin Europe's creditworthiness stemming from the volatility in
global capital markets and the dynamic political situation.

S&P expects to resolve the CreditWatch placement once it becomes
clearer whether the military conflict in Ukraine and the related
sanctions and capital controls will have a more negative impact on
Ronin Europe than it currently expects.




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F R A N C E
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SPIE SA: S&P Alters Outlook to Stable, Affirms 'BB' ICR
-------------------------------------------------------
S&P Global Ratings revised its outlook on French support services
provider Spie S.A. to stable from negative. At the same time, S&P
affirmed its 'BB' long-term issuer credit rating on Spie and its
'BB' issue rating on its senior unsecured debt. The recovery rating
on the debt remains unchanged at '3' (50%).

The stable outlook reflects S&P's forecast of total growth in sales
of 9%-10% for Spie over the next 12 months and adjusted EBITDA
margins of around 8.3%, resulting in leverage comfortably below
4.5x and FFO to debt well above 15%.

Spie deleveraged significantly more than we expected in 2021,
thanks to a solid operational performance. Spie's operating
performance recovered markedly in 2021, after being hit by
COVID-19-related lockdowns during the first wave of the pandemic
from March to May 2021. Sales growth of 5.1% was mostly driven by
France, which, of all the countries in Europe, the pandemic
affected most severely in 2020. This growth more than compensated
for the sales decrease in northwest Europe, which suffered from
lower demand from data center clients in the U.K. and delayed
projects in the Netherlands. Spie's margin performance was
particularly strong, with its adjusted EBITDA margins expanding to
8.3% in 2021, versus our previous expectation of 7.1%. Spie passed
on additional costs relating to sanitary measures to its clients,
as well as tightly manage the profitability of its projects. The
higher topline allowed for better absorption of the fixed cost
base. Higher profitability was combined with solid free operating
cash flow (FOCF) of EUR382.3 million, boosted by an impressive
working capital performance. Spie posted inflows of EUR16.3 million
despite repaying EUR141 million of social charges to several
European states that were deferred from 2020 as part of
COVID-19-related support measures. All in all, the higher EBITDA
and strongly positive cash flows drove leverage down to 3.6x at
year-end 2021 from 5.1x at year-end 2020, markedly better than our
previous forecast of 4.2x.

S&P said, "We expect high sales growth in 2022, boosted by the
acquisition of Worksphere, and a resilient margin performance
thanks to Spie's project-based business model.We forecast that
sales will grow by 2%-3% on an organic basis in 2022, with Spie
benefitting from its clients' demand for energy-efficiency works in
buildings. The EU NextGen investment program funding further
supports such works. The acquisition of Netherlands-based
multi-technical services company Worksphere closed at the end of
January 2022 and will add about 5% to sales. Despite being
margin-dilutive in the short term, we take a positive view of the
strategic rationale for this acquisition. It will position Spie as
the market leader in its industry in the Netherlands, with a broad
offering and dense network, providing it with a key competitive
advantage in a fragmented market. Furthermore, Spie has a track
record of improving the margins of the companies it acquires, as
evident from German energy infrastructure services firm SAG, whose
reported EBITA margin improved from about 3.5% in 2017 to
approximately 6.5% in 2019. We forecast that Spie's EBITDA margins
will remain broadly stable in 2022, around the 8.3% level in 2021.
We expect Spie's tight margin management to compensate for the
slight dilution due to the acquisition of Worksphere. Furthermore,
the project-based nature of most of the company's business allows
it to update its pricing on a regular basis and pass on to clients
any increases in its cost base such as higher wages or sourcing
costs.

"The rating is constrained by Spie's financial policy, which allows
for higher leverage.The company financed the acquisition of
Worksphere for about EUR220 million exclusively with internal cash
flow. However, we expect that Spie's highly cash-generative
business model will compensate for the negative impact on leverage
and result in broadly stable adjusted leverage of around 3.5x in
2022. Spie's credit metrics are in line with our view of a
significant financial risk profile. However, we understand that the
company's financial policy specifies maximum net reported debt to
comparable EBITDA of 3.0x (corresponding to 4.5x-5.0x as adjusted
by S&P Global Ratings). This financial policy allows Spie to make
further shareholder returns via dividends, or make large
debt-funded investments, although we have not factored these events
into our base case for the coming two years. We therefore apply a
one-notch negative financial policy modifier that results in a
stand-alone credit profile of 'bb'. This indicates our belief that
leverage could increase materially beyond our base-case
assumption.

"The stable outlook reflects our expectation that Spie's sales will
grow by 9%-10% in 2022 and its adjusted EBITDA margins remain
around 8.3%, benefiting from works relating to the energy
transition. This will result in leverage staying comfortably below
4.5x and FFO to debt well above 15%.

"While Spie has historically shown willingness to engage in
debt-funded mergers and acquisitions, we could consider an upgrade
if the company adopted a more conservative financial policy that
prioritized maintaining leverage around current levels over
additional acquisitions or shareholder payments. A positive rating
action would also require a longer track record of adjusted debt to
EBITDA below 4x and FFO to debt above 20%."

S&P could take a negative rating action if debt to EBITDA climbs
above 4.5x or FFO to debt falls below 15% on a sustained basis.
This could happen if:

-- Spie prioritizes debt-funded acquisitions or shareholder
returns over deleveraging to below the levels above.

-- Operating headwinds impair Spie's ability to deliver on its
contracts and hamper its EBITDA.

ESG credit indicators: E-2, S-2, G-2

Social factors are now a neutral consideration in our credit rating
analysis of Spie (compared with moderately negative previously).
This is because we see that the pandemic will no longer affect the
company's revenue generation and profitability as it passes any
additional costs relating to social-distancing measures at its
sites on to the clients. Revenue returned above pre-pandemic levels
to EUR6,994.2 million in 2021, and EBITDA margins stood 120 basis
points above 2019 levels at 8.3%.




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G R E E C E
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FRIGOGLASS SAIC: S&P Downgrades ICR to 'CCC', Outlook Negative
--------------------------------------------------------------
S&P Global Ratings lowered to 'CCC' from 'B-' its issuer and
issue-level credit ratings on Frigoglass SAIC and its EUR260
million senior secured notes due February 2025.

The negative outlook indicates that the disruption to Frigoglass'
business has increased its risk of default in the next 12 months.
It could default on the interest payments linked to its senior
secured notes, or could propose a refinancing or restructuring
transaction that we consider distressed because its debtholders
receive less than par.

Russia's military intervention into Ukraine prompted a series of
stringent economic and financial sanctions from the U.S., EU, and
U.K. governments, among others.

Not only has Frigoglass, an ice cooler and glass bottles
manufacturer, experienced supply chain disruptions affecting both
its raw materials and finished goods because of these sanctions, it
will also suffer future sales disruptions. One of its key
customers, Coca-Cola, has suspended its business in Russia.

S&P Global Ratings considers that Frigoglass faces multiple
operational challenges. It is currently chiefly serving its
European ice cooler customers from Russia as it seeks to rebuild
its Romanian production facility following a fire in June 2021. In
addition, it is unclear how long local sales will remain disrupted.
For example, one of its key customers, Coca-Cola, has suspended its
Russian operations. Frigoglass is also experiencing supply chain
disruptions, both in moving raw materials into the country, and in
moving finished goods out. Most of its customers are soft drinks
and beer producers.

Supply chain issues have affected the transportation of raw
materials and finished goods to and from Russia, creating a
significant delay. The company expects to finish reconstructing its
Romanian production plant by the fourth quarter of 2022. Although
the company rented an area adjacent to the production facility in
Romania, it is unable to sustainably meet demand from European
customers over 2022 from this facility alone, and so needs the
output of its Russian facilities.

As a result, S&P anticipates severe disruption to revenue and cash
flow, which will hamper the group's liquidity. In addition, on
March 8, the Coca-Cola Company announced that because of the recent
events in Ukraine it is suspending its business in Russia.
According to Frigoglass' unaudited 2021 figures, about 14.5% of its
total sales came from Russia and 2.4% from Ukraine; the bulk of
this revenue accrued from business with Coca-Cola HBC AG. S&P has
revised the company's liquidity profile to weak from adequate.

Russia's military intervention into Ukraine has prompted strong
international sanctions, which affect large parts of Russia's
banking system. In S&P's view, the sanctions announced to date
could significantly hamper the Russian banking sector's ability to
act as a financial intermediary for international trade. This
could, in turn, create funding challenges for local and
international companies that have substantial operations in the
country, such as Frigoglass. On Aug. 1, 2022, it is due to pay
about EUR8.94 million, which is the first tranche of its EUR260
million 6.875% fixed-rate senior secured notes and represents
annual and semiannual coupon. Although at present the company seems
to have enough cash to pay this, S&P sees it as highly dependent on
more favorable external conditions to be able to pay the second
tranche, which is due in February 2023.

The company was set to generate negative free cash flow in 2022 as
it reconstructs its coolers manufacturing facility in Romania. On
the positive side, it has so far collected about EUR40 million of
insurance proceeds for property damage to use for the
reconstruction. The company anticipates receiving a further EUR17
million; this amount depends on providing proof of the actual
expenditures related to the reconstruction phase of the building
and the purchases of equipment.

Coca-Cola HBC AG is one of the anchor bottlers of the Coca-Cola
Company and it alone represents 30%-40% of Frigoglass' total
revenue. Combined with the latest events and the severe disruption
to its operations, its customer concentration renders the company
highly vulnerable to external conditions for its ability to operate
and self-fund its operational needs. Given this key customer
concentration, we now see the company's stand-alone business risk
profile as vulnerable.

The negative outlook reflects an increased risk of default in the
next 12 months, given the significant disruption to Frigoglass'
business. This could include an interest payment default linked to
its senior secured notes, or a refinancing or restructuring
transaction that S&P considers distressed because its debtholders
receive less than par. At present, S&P sees bigger risks to the
company's ability to repay the second tranche of interest payment,
due in February 2023, linked to its senior secured notes
outstanding.

S&P saidm "We may lower the ratings on Frigoglass if its liquidity
position weakened further, such that it will not be able to fulfil
its operational and financing needs within the next 12 months. We
would also lower our rating if it enters into a transaction that we
view as distressed or a bankruptcy or default appear inevitable."

An upgrade would hinge on a substantial improvement in the external
operating environment, so that pressure on the supply chain eased
and the seamless execution of the rebuilding of the Romanian plant.
It would depend on the impact of the Coca-Cola Company's suspension
of its Russian business proving to be manageable. S&P would raise
the rating if these factors resulted in sustained solid positive
free operating cash flow and rising cash balances, reducing the
risk of an interest payment default in the coming 12 months.

ESG credit indicators: E-2, S-2, G-3




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

ITALIA WANBAO: Submission of Binding Offers Ends Today
------------------------------------------------------
Maurizio Castro, acting in his capacity as Extraordinary
Commissioner of Italia WanbaoACC S.r.l in Amministrazione
Straordinaria ("Wanbao-ACC" or the "Company"), a limited liability
company incorporated under Italian laws, with registered offices at
Viale V. Salvatelli 4, Borgo Valbelluna (Belluno), Italy,

WHEREAS

a. the Company was incorporated in 2014 by Wanbao Compressor
Coperatief U.A. (still the sole shareholder), a Dutch company part
of the Wanbao Compressors Group, which purchased the business in
the framework of an insolvency restructuring process by ACC
Compressors S.p.A., until 2012 one of the leading independent
European providers that designed, manufactured and marketed the
most advanced compressors used in household;

b. on March 27, 2020 Wanbao-ACC has been put by the Court of Venice
into a restructuring procedure named "extraordinary administration"
governed by the Italian Legislative Decree July 8, 1999, n. 270,
(the "EA Law"), and I the undersigned, Maurizio Castro, have been
appointed as Extraordinary Commissioner of the Company by virtue of
a Decree of the Ministry of Economic Development (the "MED") issued
on May 18, 2020;

c. the extraordinary administration plan set out under art 54 of
the EA Law (the "Plan") has been authorized by the MED on March 16,
2021, and transmitted to the Court of Venice on March 19, 2021, in
order to be published in accordance with art. 59 of the EA Law;

d. on October 20, 2021, after a first sale procedure which ended
with no offers, the MED, having obtained a positive opinion of the
Supervisory Committee, authorized the Extraordinary Commissioner to
issue a second call for tenders for the sale of the business, which
started on October 22, 2022, and terminated
on January 31, 2022, with the submission of one binding offer
concerning only a part of the business of the Company (the "Binding
Offer");

e. on February 11, 2022 the MED, having obtained a positive opinion
of the Supervisory Committee, authorized the Extraordinary
Commissioner to accept the Binding Offer, which provides that the
industrial plant is set free from the assets not included in the
purchased business unit (the "Business Unit") in three mandatory
steps expiring on April 30, 2022, September 30, 2022, December 31,
2022;

f. on February 18, 2022 the MED also authorized the Extraordinary
Commissioner to issue a call for tenders for the sale of the assets
not included in the Business Unit, i.e. machineries for the
manufacture of compressors and other related (ancillary and/or
capital) assets (jointly the "Assets");

g. the Extraordinary Commissioner of Wanbao-ACC intends to proceed
rapidly with this sale procedure, given the need to comply with the
strict deadlines agreed with the purchaser of the Branch to vacate
the plant.

All the above stated, the Extraordinary Commissioner of Wanbao-ACC
invites all interested parties to submit binding offers for the
purchase of machinery for the manufacture of compressors and other
related assets of Wanbao-ACC (the "Assets") by and no later than on
March 15, 2022 at 24:00 CET under the following terms.

1) Interested parties may find details and documents about the
machineries and other related assets on
sale on the website of Wanbao-ACC at the following page:
https://www.wanbao-acc.it/amministrazione-straordinaria/avvisi/

2) Interested entities may forward in writing a request for
information, clarifications and/or further
documents to the people appointed for that purpose by the
Extraordinary Commissioner, sending an email to the following
address not later than 8th March 2022 at 24:00 CET.

The Extraordinary Commissioner reserves the right to determine the
terms and conditions to meet the potential requests for
information, any clarification and/or further documents.  Meetings
may be arranged, physically or by videoconference, with the
interested entities for the purposes of providing answers to the
requests for information and clarification.  Written and oral
answers shall be rendered not later than March 12, 2022 at 15:00
CET.

3) The interested entities, upon request, may agree with the
Extraordinary Commissioner to arrange a visit to the site of the
Company where the Assets are located, in accordance with the
production needs of Wanbao ACC and the emergency measures adopted
by the Italian Government and the Veneto Region
for the containment of the SARS-Cov-2 virus spread.

4) The interested entities shall submit their binding offers by and
no later than on March 15, 2022, at 24:00 CET, and ensure that they
are received within the aforementioned term, by (i) registered
letter with return receipt or courier -- in either case in a sealed
envelope -- to the attention of the Extraordinary Commissioner, Mr.
Maurizio Castro, at the address Italia Wanbao-ACC S.r.l. in
Amministrazione Straordinaria, Viale V. Salvatelli 4, 32026 Borgo
Valbelluna (BL) -- Italy, anticipated via fax at : (+39) 0434379843
(the offer shall be deemed as timely sent in case only the
anticipated version via fax is sent within the above deadline); or
(ii) letter to the attention of the Extraordinary Commissioner, Mr.
Maurizio Castro, attached to a certified electronic mail (PEC) at
the address wanbaoacc@legalmail.it.

In both cases, a copy of the binding offer shall be anticipated to
the Company via e-mail at the following addresses:
federica.magnoler@wanbao-acc.it (HR and Corporate Affairs Officer)
and flavio.dellagiustina@wanbao-acc.it (Chief Financial Officer).


SIENA PMI 2016: Fitch Raises Class D Notes to 'BB+'
---------------------------------------------------
Fitch Ratings has upgraded Siena PMI 2016 S.r.l. - Series 2's class
C and D notes, and affirmed its class B notes, as detailed below.
The class C and D notes have been removed from Under Criteria
Observation (UCO). The Rating Outlooks are Stable for all the rated
notes.

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

B IT0005372963   LT AAsf   Affirmed    AAsf
C IT0005372971   LT AAsf   Upgrade     A-sf
D IT0005372989   LT BB+sf  Upgrade     B-sf

TRANSACTION SUMMARY

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

KEY RATING DRIVERS

Deleveraging and Criteria Update: The upgrades mainly reflect the
impact of Fitch's recently updated SME Balance Sheet Securitisation
Rating Criteria. Among others, Fitch has updated the mapping
approach to the one-year default rates provided by banks as an
input to the portfolio credit model (PCM) (4% from 5.5% on average)
and the cure-rate tiering assumptions.

The rating action is also driven by the transaction's deleveraging,
leading to increased credit enhancement (CE) for the rated notes.
The class C and D CE increased by about 7.5% and 3% since August
2021, respectively. The pool factor - defined as current portfolio
balance compared with the initial balance - decreased to 43% from
46% since August 2021.

Moratoria Expired: As at end-January 2022, the majority of loans on
payment holiday have expired their moratoria period. This compared
with 12% as of August 2021 and 30% until June 2021. Deterioration
of loan performance post-moratoria has been low at about 1.5%,
according to the February 2022 servicer report.

Expected Default Rate Lower: The updated default frequencies
provided by the originator as of end-2021 show an improving trend
of the loan book performance of the rated borrower. However, the
distressed borrower share has increased to 2.6% from 0.5%. These
loans are assumed as defaulted in Fitch's analysis and lead to a
portfolio default-rate expectation of 14.9%, revised from 16.9% of
the previous review. The decrease mainly reflects the
implementation of the updated criteria, which offset the
portfolio's worsened composition.

Higher SME Loan Recovery Rates: When analysing the collateral
available to the securitised loans, Fitch gave credit only to
real-estate collateral with a first-lien mortgage (45.8% of the
portfolio from 38.6% as of last review). Loans with no real estate
collateral, and loans secured by second- or higher-lien were
treated as unsecured by Fitch. This leads to a recovery rate
expectation of 65.8%, up from 63.5% at the last review.

Granular and Diversified Portfolio: The pool is amortising but
remains granular. The largest obligor accounts for 0.8% (up from
0.55% as of the last review) of the pool balance, and the
10-largest obligors account for 4.9% (up from 4.6%). The impact of
obligor concentration is taken into consideration in the
PCM-derived rating default rate (RDR) levels. Moreover, industry
concentration is limited, with the largest sector (real estate)
accounting for less than 30% of the outstanding pool.

RATING SENSITIVITIES

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

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

-- Fitch carried out a sensitivity analysis (assuming an increase
    of 25% to default rates) on the current portfolio to address
    potential short-term performance deterioration linked to loans
    that recently exited the moratoria period. Fitch notes that
    the class B's and C's CE may be sufficient to compensate for
    additional projected losses on the portfolio but the class D
    notes could suffer a three-notch downgrade. Fitch's asset
    assumptions factor in a wide cushion compared with the current
    portfolio performance.

-- A longer-than-expected recession that weakens macroeconomic
    fundamentals beyond Fitch's current base case while CE cannot
    fully compensate the credit losses and cash-flow stresses
    associated with the current ratings, all else being equal.

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

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

-- If the transaction deleverages more quickly than expected
    performance deterioration, the CE ratios of the class D notes
    could offset the credit losses and cash-flow stresses
    associated with the current and higher rating scenarios, all
    else being equal.

BEST/WORST CASE RATING SCENARIO

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

DATA ADEQUACY

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

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

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

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

ESG CONSIDERATIONS

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



=================
M A C E D O N I A
=================

IDEVELOP: MSE to Delist Shares Due to Bankruptcy
------------------------------------------------
Dragana Petrushevska at SeeNews reports that North Macedonia's
bourse said it decided to delist the shares of software maker
Idevelop due to its bankruptcy.

According to SeeNews, the shares of Idevelop were to be delisted
from the Macedonian Stock Exchange (MSE) on March 14, the bourse
said on March 11.

British-run software solutions company idevelop has been present in
Macedonia since 2003.  In 2008, iDevelop began trading roughly 25%
of its 1.983 million shares on the MSE unofficial market, SeeNews
discloses.


SKOVIN: MSE to Delist Shares Due to Bankruptcy
----------------------------------------------
Dragana Petrushevska at SeeNews reports that North Macedonia's
bourse said it decided to delist the shares of wine maker Skovin
due to its bankruptcy.

According to SeeNews, the shares of Skovin were to be delisted from
the Macedonian Stock Exchange (MSE) on March 14, the bourse said on
March 11.

Skovin said in December its board of directors decided to submit a
proposal to a local court to enter a bankruptcy procedure after a
company bank account was blocked for more than 45 days, SeeNews
relates.

Skovin booked a net loss of MKD887,000 (US$15,800/EUR14,400) in
2021, compared to a net loss of MKD37.6 million a year earlier,
SeeNews discloses.




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

CREDIT UNION: S&P Cuts ICR to 'CCC+', On CreditWatch Developing
---------------------------------------------------------------
S&P Global Ratings said that, following its downgrade of Russia on
March 3, 2022, it has lowered its long- and short-term issuer
credit ratings on the following finance companies exposed to Russia
and kept them on CreditWatch:

-- Credit Union Payment Center to CCC+/Watch Dev/C from BB+/Watch
Neg/B;

-- First Client Bureau NPJSC to CCC-/Watch Neg/-- from B/Watch
Neg/--; and

-- QIWI PLC to CCC-/Watch Neg/C from BB-/Watch Neg/B.

S&P said, "The downgrades follow the lowering of our foreign
currency sovereign credit ratings on Russia to 'CCC-/C' from
'BB+/B' and the local currency ratings to 'CCC-/C' from 'BBB-/A-3';
all the sovereign ratings remain on CreditWatch negative. We also
revised down our transfer and convertibility assessment on Russia
to 'CCC-' from 'BBB-'."

There are significant pressures on key sectors of the Russian
economy, including its financial system, and there has been a sharp
deterioration in the operating conditions for non-sovereign
entities doing business in Russia. This has been triggered by
international sanctions, as well as the capital and currency
controls that we understand could constrain companies in Russia
from honoring their obligations in full and on time, and other
restrictive measures imposed by the Russian authorities.

Credit Union Payment Center (RNKO)

S&P said, "The multi-notch downgrade reflects our view that RNKO
could face increasing operational constraints, a deteriorating
operating environment, and potential disruptions to settlement
obligations. RNKO is a core subsidiary of the wider CFT Group,
which specializes in banking software and payment processing
services. CFT Group's payment network mainly provides money
transfer services in Russia and other countries in the Commonwealth
of Independent States (CIS), predominantly for retail clients. We
expect that its money transfer transaction flows would be affected
by the central bank's new restrictions, for example the $5,000 per
person monthly limit on forex payments out of Russia. However, a
substantial portion of transaction flows is outside Russia, and
many of the flows administered by RNKO may not be hugely affected
so far. We acknowledge though that the situation may change
rapidly, and this could force RNKO to pare back its service
offering to Russia-based clients. The CFT Group has no debts, in
line with its long-standing zero-debt policy, and has a substantial
cash position. Furthermore, the CFT Group has liquidity outside
Russia and we understand that it is ready to honor any settlement
obligations that RNKO could be technically unable to meet."

CreditWatch

The ratings are on CreditWatch developing to indicate that S&P
could either lower or raise them over the next few weeks, depending
in particular on the business developments for the money transfer
business, and its view of RNKO's capacity to continue to settle all
transactions in full and on time.

First Collection Bureau (FBC)

The multi-notch downgrade reflects S&P's view that Russia-based
bad-debt purchaser FCB could face increasing constraints to meet
its short-term financial obligations with foreign investors
following capital controls established in Russia. It also reflects
potentially negative implications for the business, including its
collection ability, should Russia's economic woes weaken borrowers'
capacity to pay.

S&P said, "That said, we acknowledge that FCB could put the brakes
on new portfolio purchases to minimize the impact on its cash
flows. We also understand that FCB is not exposed to
foreign-exchange risk because its assets and liabilities are all in
local currency. On Dec. 31, 2021, the group had Russian rubles
(RUB) 3.1 billion in cash and cash equivalents, close to double its
current liabilities on the same date. Its total current assets
covered its current liabilities by 5x on Dec. 31, 2021. On the same
date, its bond obligations included only bonds issued in local
currency (about RUB4 billion). Even though FCB seems to have the
financial capacity to meet its obligations currently, we believe
that the capital restrictions the Russian authorities have imposed
render uncertain FCB's technical ability to make timely debt
payments (interest and/or principal) to all creditors and in
full."

CreditWatch

S&P said, "The CreditWatch negative status indicates that we could
lower the ratings further over the next few weeks. We expect to
resolve the CreditWatch once we have more clarity on FCB's
technical ability and/or willingness to honor its obligations in
full and on time."

Qiwi PLC (Qiwi)

S&P said, "The multi-notch downgrade reflects our view that Qiwi, a
Cyprus-based holding company, faces increasing constraints to meet
its short-term financial obligations with investors, following
deteriorated operating conditions in Russia and the imposition of
capital controls. We expect these to have important implications
for its key Russia-based payment services subsidiary, Qiwi Bank.
The group has a RUB5 billion bond outstanding, issued by
Russia-based subsidiary Qiwi Finance LLC, with interest coupon
payments denominated and payable in rubles. We do not rate this
instrument, but we note that it includes event clauses that could
require Qiwi to repurchase the bond. We note also that the holding
company relies on dividends being upstreamed from its Russian
subsidiaries. These dividends are now subject to capital controls
and significant currency devaluation, which might ultimately impair
Qiwi PLC's ability to meet its financial obligations."

CreditWatch

S&P said, "The ratings remain on CreditWatch negative to indicate
that we could lower them further over the next few weeks. We expect
to resolve the CreditWatch once we have more clarity on Qiwi's
technical ability and/or willingness to honor its obligations in
full and on time."

  Ratings List

  CREDIT UNION PAYMENT CENTER           

  DOWNGRADED; CREDITWATCH ACTION  
                                          TO         FROM
  CREDIT UNION PAYMENT CENTER

   Issuer Credit Rating          CCC+/Watch Dev/C  BB+/Watch Neg/B

  FIRST CLIENT BUREAU NPJSC            

  DOWNGRADED  
                                          TO         FROM
  FIRST CLIENT BUREAU NPJSC

   Issuer Credit Rating         CCC-/Watch Neg/--  B/Watch Neg/--

  QIWI PLC                

  DOWNGRADED  
                                          TO         FROM
  QIWI PLC

  Issuer Credit Rating           CCC-/Watch Neg/C  BB-/Watch Neg/B



SOVCO CAPITAL: Fitch Withdraws 'B-' Issuer Default Ratings
----------------------------------------------------------
Fitch Ratings has withdrawn Sovco Capital Partners International
Joint Stock Company (Sovco) Long Term Foreign- and Local-Currency
IDRs at 'B-'. The ratings were on Rating Watch Negative (RWN) at
withdrawal.

Sovco is the bank holding company (holdco) for Russia-based PJSC
Sovcombank. The agency has also withdrawn the ratings of SovCom
Capital DAC's associated debt.

Today's rating actions follow the withdrawal of Sovcombank's
ratings on 4 March 2022 as a result of US sanctions recently
imposed on the bank and several other Russian banks.

Fitch has withdrawn the ratings on these entities and will no
longer provide ratings or analytical coverage for these entities.
Fitch will review its decision should the sanctions be removed.

KEY RATING DRIVERS

N/A

RATING SENSITIVITIES

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

N/A

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

N/A

VR ADJUSTMENTS

N/A

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.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

The ratings were linked to Sovcombank, which were withdrawn on 4
March 2022

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 Cuts 11 Russian Utilities' Rating to 'CC'
---------------------------------------------------
Fitch Ratings has downgraded 11 Russian utilities to 'CC'. Fitch
typically does not assign Outlooks or apply Rating Watches to
ratings of 'CCC' or below.

The rating actions reflect new restrictions that may impair the
companies' ability to service debt, and follow Fitch's downgrade of
Russia's sovereign ratings on 8 March 2022.

KEY RATING DRIVERS

Probable Default: Fitch believes that the Presidential Decree of 5
March 2022, against the backdrop of an escalating sanctions regime,
could impose insurmountable barriers to many corporates' ability to
make timely payments on foreign- and local-currency debt to certain
international creditors. While the practical implementation of this
decree remains unclear, Fitch believes that the severely heightened
risk is best reflected in Fitch's 'CC' ratings definition: "Default
of some kind appears probable."

New Restrictions: The Decree could potentially force a
redenomination of foreign-currency debt into local currency for
international creditors, which Fitch would likely view as a
distressed debt exchange or event of default. In addition, the
Decree, as clarified by the Bank of Russia (BoR), differentiates
creditors from countries imposing sanctions on Russia and in some
cases debt payments have to be initially transferred to specified
accounts that are governed by BoR.

Tightening Sanctions: Ongoing ratcheting up of sanctions, including
restrictions in energy trade, increase the probability of a policy
response by Russia, and further weaken its economy, eroding the
operating environment for its corporates.

Financial Flexibility Reduced: As a result, Fitch has further
reduced Fitch's assessment of financial flexibility for all Russian
corporates, with a limited exception for domestically-oriented
companies with no debt or limited local-currency debt from domestic
banks.

PJSC Federal Grid Company of Unified Energy System (Federal Grid)

Fitch has downgraded Federal Grid's Long-Term Foreign-Currency (LT
FC) Issuer Default Rating (IDR) to 'CC' from 'B'/Rating Watch
Negative (RWN) and LT Local-Currency (LC) IDR to 'CC' from
'B+'/RWN. Federal Grid's ratings are linked to the sovereign under
Fitch's Government-Related Entities (GRE) Rating Criteria. However,
considering Fitch's Parent and Subsidiary Linkage (PSL) Rating
Criteria and the idiosyncratic drivers for the sovereign rating,
Fitch now allows the company's rating to be at its Standalone
Credit Profile (SCP) level, one notch above that of the sovereign.

Federal Grid's assets and revenue generation are in Russia. All of
its debt is LC denominated. The company has outstanding bonds
totalling RUB229 billion.

Public Joint Stock Company Rosseti Moscow Region (Rosseti Moscow
Region)

Fitch has downgraded Rosseti Moscow Region's LT FC IDR to 'CC' from
'B'/RWN and LT LC IDR to 'CC' from 'B+'/RWN. Rosseti Moscow
Region's ratings are linked to the sovereign under Fitch's GRE
Rating Criteria. However, considering Fitch's PSL Rating Criteria
and the idiosyncratic drivers for the sovereign rating, Fitch now
allows the company's rating to be at its SCP level, one notch above
that of the sovereign.

Rosseti Moscow Region's assets and revenue generation are in
Russia. All of its debt and bonds are LC denominated.

JSC Atomic Energy Power Corporation (Atomenergoprom)

Fitch has downgraded Atomenergoprom's LT FC IDR to 'CC' from
'B'/RWN and LT LC IDR to 'CC' from 'B+'/RWN. Atomenergoprom's
ratings are linked to the sovereign under Fitch's GRE Rating
Criteria. However, considering Fitch's PSL Rating Criteria and the
idiosyncratic drivers for the sovereign rating, Fitch now allows
the company's rating to be at its SCP level, one notch above that
of the sovereign.

Atomenergoprom generates a significant share of its earnings
outside Russia, in contrast to other rated Russian utilities that
generate almost all revenue and EBITDA domestically. International
operations contributed around a third of its total revenue on
average in 2019-2021. 80% of its debt at end-9M21 was
FC-denominated, with around 10% of total debt from foreign banks
outside Russia.

PJSC Inter RAO UES (Inter RAO)

Fitch has downgraded Inter RAO's LT FC IDR to 'CC' from 'B'/RWN and
LT LC IDR to 'CC' from 'B+'/RWN. Inter RAO's ratings are linked to
the sovereign under Fitch's GRE Rating Criteria. However,
considering Fitch's PSL Rating Criteria and the idiosyncratic
drivers for the sovereign rating, Fitch now allows the company's
rating to be at its SCP level, one notch above that of the
sovereign.

Inter RAO generates around 7% of its total revenue outside Russia,
8% of its debt is FC denominated debt with minor exposure to loans
from foreign banks outside Russia.

PJSC RusHydro

Fitch has downgraded RusHydro's LT FC IDR to 'CC' from 'B'/RWN and
LT LC IDR to 'CC' from 'B+'/RWN. RusHydro's ratings are linked to
the sovereign under Fitch's GRE Rating Criteria. However,
considering Fitch's PSL Rating Criteria and the idiosyncratic
drivers for the sovereign rating, Fitch now allows the company's
rating to be at its SCP level, one notch above that of the
sovereign.

RusHydro's assets and revenue generation are in Russia. All of its
debt and bonds are LC denominated.

PJSC Mosenergo

Fitch has downgraded Mosenergo LT FC IDR to 'CC' from 'B'/RWN and
LT LC IDR to 'CC' from 'B+'/RWN. Under Fitch's PSL Rating Criteria,
Mosenergo continues to be rated at the same level as its ultimate
majority shareholder, PJSC Gazprom.

Mosenergo's assets and revenue generation are in Russia. All of its
debt is LC denominated.

Public Joint Stock Company Territorial Generating Company No. 1
(TGC-1)

Fitch has downgraded TGC-1's LT FC IDR to 'CC' from 'B'/RWN and LT
LC IDR to 'CC' from 'B+'/RWN. Under Fitch's PSL Rating Criteria,
TGC-1 continues to be rated at the same level as its ultimate
majority shareholder, PJSC Gazprom.

TGC-1's assets and revenue generation (except for a minor part
related to exports to Finland and Norway) are in Russia. All of its
debt is LC denominated.

PJSC The Second Generating Company of the Wholesale Power Market
(OGK-2)

Fitch has downgraded OGK-2's LT FC IDR to 'CC' from 'B'/RWN and LT
LC IDR to 'CC' from 'B+'/RWN. Under the PSL Rating Criteria, OGK-2
continues to be rated at the same level as its ultimate majority
shareholder, PJSC Gazprom.

OGK-2's assets and revenue generation are in Russia. All of its
debt is LC denominated. The company has an outstanding LC bond
totalling RUB3 billion with a put option in 2024.

EN+ Group IPJSC

Fitch has downgraded EN+ Group's LT FC and LC IDRs to 'CC' from
'B'/RWN.

EN+ Group's assets and revenue generation are in Russia. All of its
debt is LC denominated. The action also reflects PSL Rating
Criteria application to EN+ Group. EN+ Group has high leverage,
with funds from operations adjusted net leverage of 5.1x as of
FY2020.

Enel Russia PJSC

Fitch has downgraded Enel Russia's LT FC IDR to 'CC' from 'B'/RWN
and LT LC IDR to 'CC' from 'B+'/RWN.

Enel Russia's assets and revenue generation are in Russia. All of
its debt is LC denominated. The current credit facilities include
loan agreements with the largest local banks, international bank
subsidiaries and an international development bank. As of September
2021, Enel Russia had RUB5 billion of outstanding local bonds.

Rosvodokanal LLC

Fitch has downgraded Rosvodokanal's LT FC IDR to 'CC' from 'B'/RWN
and LT LC IDR to 'CC' from 'B+'/RWN.

Rosvodokanal's assets and revenue generation are in Russia. All of
its debt is LC denominated. The company has an outstanding LC bond
totalling RUB3 billion with a put option in 2024.

DERIVATION SUMMARY

The 'CC' LT FC IDRs reflect the heightened operational and
financial risks discussed above under Key Rating Drivers and means
that default of some kind appears probable. The uncertainty and
dynamism of the situation makes significant differentiation between
companies impossible at this stage.

For idiosyncratic drivers for each business before the current
crisis, see relevant RACs for each issuer referenced above.

KEY ASSUMPTIONS

In addition, for Federal Grid, RusHydro and Enel Russia:

Fitch has applied the generic recovery band of RR4 to the entities'
senior unsecured debt, reflecting the relatively low debt in these
entities and the Russian recovery cap of RR4.

RATING SENSITIVITIES

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

-- De-escalation of the crisis leading to removal of sanctions
    and economic stabilisation and relaxed FX and cross-border
    payment controls could be positive for the ratings.

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

-- Indication that a default or default-like process has begun,
    or the issuer is in standstill.

Rating sensitivities for Russia's sovereign rating dated 8 March
2022:

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

-- Failure to fulfil commercial debt payment within stipulated
    grace periods.

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

-- Improved confidence in Russia's willingness to repay debt, for
    example due to implementation of policy that is consistent
    with its continuing servicing of debt obligations, alongside
    expectations there will be continued capacity to execute debt
    payments.

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.

Criteria Variation

A criteria variation has been applied with respect to bespoke
recovery analysis. Given the high levels of uncertainty inherent in
the current situation, Fitch has assigned recovery ratings to all
such names at RR4, reflecting a combination of the relatively low
debt load of many companies in Russia and the Russian cap on
recovery ratings of RR4.

Affected issuers: PJSC Federal Grid, PJSC RusHydro (and RusHydro
Capital Markets DAC) and Enel Russia PJSC.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Atomenergoprom, RusHydro, Federal Grid, Inter RAO and Rosseti
Moscow Region's ratings are linked to the sovereign under Fitch's
GRE Rating Criteria.

Mosenergo's, TGC-1's, OGK-2's ratings are linked to PJSC Gazprom
under Fitch's PSL Rating Criteria.

ESG CONSIDERATIONS

EN+'s ESG Relevance Scores have been revised accordingly:
Governance Structure to '3' from '5' and Management Strategy and
Group Structure to '3' from '4' since the drivers of these scores
no longer represent a constraint to the rating. A score of '3'
expresses minimal credit-relevance to the rating.

Mosenergo's and OGK-2's ESG Relevance Scores for Group Structure
and Management Strategy have been revised to '3' from '4' since the
drivers of these scores no longer represent a constraint to the
ratings. A score of '3' expresses minimal credit-relevance to the
rating.

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 Cuts 3 Russian Diversified Industrial Corporates to 'CC'
------------------------------------------------------------------
Fitch Ratings has downgraded three Russian diversified industrial
corporates to 'CC'. Fitch typically does not assign Outlooks or
apply modifiers with a rating of 'CCC' or below.

The rating actions reflect new restrictions that may impair the
companies' ability to service debt, and follow the agency's
downgrade of Russia's sovereign ratings on 8 March 2022.

KEY RATING DRIVERS

Probable Default: Fitch believes that the Presidential Decree of 5
March 2022, against the backdrop of an escalating sanctions regime,
could impose insurmountable barriers to many corporates' ability to
make timely payments on foreign- and local-currency debt to certain
international creditors. While the practical implementation of this
decree remains unclear, Fitch believes that the severely heightened
risk is best reflected in its 'CC' ratings definition: "Default of
some kind appears probable."

New Restrictions: The Decree could potentially force a
redenomination of foreign-currency debt into local currency for
international creditors, which Fitch would likely view as a
distressed debt exchange or event of default. In addition, the
Decree, as clarified by the Bank of Russia (BoR), differentiates
creditors from countries imposing sanctions on Russia, and in some
cases debt payments have to be initially transferred to specified
accounts which are governed by BoR.

Tightening Sanctions: Ongoing ratcheting up of sanctions, including
restrictions in energy trade and imports, increase the probability
of a policy response by Russia, and further weaken its economy,
eroding the operating environment for its corporates.

Financial Flexibility Reduced: As a result, Fitch has further
reduced Fitch's assessment of financial flexibility for all Russian
corporates, with a limited exception for domestically-oriented
companies with no debt or limited local-currency debt from domestic
banks.

Rating Actions: The Long-Term Foreign- and Local-Currency Issuer
Default Ratings (LT FC and LC IDR) have been downgraded to 'CC' for
most companies. Fitch has differentiated between LT LC and FC IDRs
and downgraded LT LC IDRs to 'CCC' in case of domestically-focused
businesses with no debt or limited local-currency debt from
domestic banks.

Borets International

Fitch has downgraded Borets International Limited's LT FC IDR to
'CC' from 'B-' and LT LC IDR to 'CCC' from 'B-'. The agency also
downgraded the senior unsecured rating on the Eurobonds issued by
Borets Finance DAC to 'CC' from 'B-'. The Short-Term FC and LC IDRs
have been downgraded to 'C' from 'B.'

JSC Transmashholding

Fitch has downgraded JSC Transmashholding's LT FC IDR to 'CC' from
'B' and LT LC IDR to 'CCC' from 'B+'.

JSC HMS Group

Fitch has downgraded JSC HMS Group's LT FC IDR to 'CC' from 'B' and
LT LC IDR to 'CCC' from 'B+'. The Short-Term FC and LC IDRs have
been downgraded to 'C' from 'B'.

DERIVATION SUMMARY

The 'CC' LT FC IDRs for most issuers reflect the heightened
operational and financial risks discussed above under Key Rating
Drivers and mean that default of some kind appears probable. The
uncertainty and dynamism of the situation makes significant
differentiation between companies impossible at this stage.

KEY ASSUMPTIONS

Fitch has applied the generic recovery band of RR4 to the entities'
senior unsecured debt, reflecting the relatively low debt in these
entities and the Russian recovery cap of RR4.

RATING SENSITIVITIES

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

-- De-escalation of Russia's military operations leading to
    removal of sanctions and economic stabilisation and relaxed FX
    and cross-border payment controls could be positive for the
    ratings.

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

-- Indication that a default or default-like process has begun,
    or the issuer is in standstill.

Rating sensitivities for Russia's sovereign rating dated 8 March
2022:

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

-- Failure to fulfil commercial debt payment within stipulated
    grace periods.

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

-- Improved confidence in Russia's willingness to repay debt, for
    example due to implementation of policy that is consistent
    with its continuing servicing of debt obligations, alongside
    expectations there will be continued capacity to execute debt
    payments.

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

Pre-crisis liquidity discussion can be found in RACs for each
issuer referenced above. Today's rating actions reflect the
introduction of further limitations to companies' ability and
willingness to service debt, as described in Key Rating Drivers.

Criteria Variation

A criteria variation has been applied with respect to bespoke
recovery analysis. Given the high levels of uncertainty inherent in
the current situation, Fitch has assigned recovery ratings to all
such names at RR4, reflecting a combination of the relatively low
debt load of many companies in Russia and the Russian cap on
recovery ratings of RR4.

Issuers

For Borets Finance DAC's senior unsecured rating, Fitch includes a
criteria variation from its 'Corporates Recovery Ratings and
Instrument Ratings Criteria'.

ESG CONSIDERATIONS

JSC Transmashholding has an ESG Relevance Score of '4' for Group
Structure due to related -party transactions, which has a negative
impact on the credit profile, and is relevant to the ratings in
conjunction with other factors.

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

[*] Fitch Cuts IDRs of 3 Russian Port & Airport Operators to 'CC'
-----------------------------------------------------------------
Fitch Ratings has downgraded three Russian port and airport
operators as follows:

-- LLC Deloport's (Deloports) Long-Term (LT) Issuer Default
    Rating (IDR) and LT rating to 'CC' from 'B'.

-- Global Port Finance PLC, Global Ports Investments PLC and JSC
    First Container Terminal's (together Global Ports) LT IDRs, LT
    ratings and LT Local-Currency (LC) IDR to 'CC' from 'B'.

-- DME Limited and DME Airport Designated Activity Company's
    (together DME) LT IDR and LT rating to 'CC' from 'CCC'.

Fitch typically does not assign Outlooks or apply modifiers with a
rating of 'CCC' or below.

RATING RATIONALE

The rating actions consider the new restrictions that may impair
the infrastructure issuers' ability to service debt, and follow
Fitch's downgrade of Russia's sovereign ratings.

KEY RATING DRIVERS

New Restrictions: The Presidential Decree of 5 March 2022 could
potentially force a redenomination of foreign currency debt into
local currency for certain international creditors, which Fitch
would likely view as a distressed debt exchange or event of
default. In addition, the application of BoR's regulation has
restricted the transfer of local-currency debt coupons to
non-residents since late last week. However, there is potential for
a degree of selective enforcement of these capital controls
measures or the potential ability for some entities to make payment
in foreign currency.

Probable Default: Fitch believes that the Decree, against the
backdrop of an escalating sanctions regime, could impose
insurmountable barriers to many infrastructure issuers' ability to
make timely payments on foreign- and local-currency debt to certain
international creditors. While the practical implementation of this
decree remains unclear, Fitch believes that the severely heightened
risk is best reflected in Fitch's 'CC' ratings definition: "Default
of some kind appears probable."

Tightening Sanctions: Ongoing ratcheting up of sanctions, including
restrictions in energy trade and imports, increase the probability
of a policy response by Russia, and further weaken its economy
eroding the operating environment for its infrastructure issuers.

Financial Flexibility Reduced: Pressure on companies' credit
profiles is further compounded by the ongoing material rouble
depreciation heightening the unhedged US dollar-denominated debt,
as well as the expected material contraction in domestic demand and
import/export operations.

RATING SENSITIVITIES

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

Deloports

-- Downgrade of sovereign rating/Country Ceiling;

-- Indication that a default or default-like process has begun,
    or the issuer is in standstill.

Global Ports

-- Downgrade of sovereign rating/Country Ceiling;

-- Indication that a default or default-like process has begun,
    or the issuer is in standstill.

DME

-- Downgrade of sovereign rating/Country Ceiling;

-- Indication that a default or default-like process has begun,
    or the issuer is in standstill.

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

Deloports

-- De-escalation of geopolitical tensions leading to
    removal/material softening of sanctions and economic
    stabilisation and relaxed FX and cross-border payment controls
    could be positive for the ratings.

Global Ports

-- De-escalation of geopolitical tensions leading to
    removal/material softening of sanctions and economic
    stabilisation and relaxed FX and cross-border payment controls
    could be positive for the ratings.

DME

-- Refinancing of local- and foreign-currency debt well in
    advance of their maturity together with a de-escalation of
    geopolitical tensions leading to removal/ material softening
    of sanctions and economic stabilisation and relaxed FX and
    cross-border payment controls could be positive for the
    ratings.

BEST/WORST CASE RATING SCENARIO

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

TRANSACTION SUMMARY

Deloports

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

Global Ports

Global Ports is a holding company and the leading container
terminal operator serving Russian cargo flows in the Baltic and the
Far-East basins. The group's main business is container handling.
In addition, the group handles a number of other types of cargo,
including cars and other types of roll-on roll-off cargo and bulk
cargoes. Its three main subsidiaries are the container terminals
FCT, Petrolesport and Vostochnaya Stevedoring Company, which are
100% owned by the group.

DME

DME operates Domodedovo Airport, one of the three main airports in
Moscow. DME Airport Designated Activity Company, formerly DME
Airport Limited, an Irish SPV, is the issuer of the notes, with the
proceeds on-lent to the borrower, Hacienda Investments Ltd
(Cyprus). The loans are guaranteed by the holding company DME and a
majority of DME operational subsidiaries on a joint and several
basis. The group owns the terminal buildings and leases the runways
and other airfield assets from the Russian government.

ESG CONSIDERATIONS

DME has an ESG Relevance Score of '4' for Governance Structure due
to the absence of an independent board of directors and ownership
concentration, which has a negative impact on the credit profile,
and is relevant to the rating in combination with other factors.

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

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

[*] Fitch Cuts Ratings of Russian Natural Resources Cos. to 'CC'
-----------------------------------------------------------------
Fitch Ratings has downgraded Russian natural resources companies to
'CC' mainly from 'B'/Rating Watch Negative (RWN). Fitch typically
does not assign Outlooks or apply Rating Watches to ratings in the
'CCC' category or below.

The rating actions reflect new restrictions that may impair the
companies' ability to service debt, and follow the agency's
downgrade of Russia's sovereign ratings on 8 March 2022.

KEY RATING DRIVERS

Probable Default: Fitch believes that the Presidential Decree of 5
March 2022, against the backdrop of an escalating sanctions regime,
could impose insurmountable barriers to many corporates' ability to
make timely payments on foreign- and local-currency debt to certain
international creditors. While the practical implementation of this
decree remains unclear, Fitch believes that the severely heightened
risk is best reflected in its 'CC' ratings definition: "Default of
some kind appears probable."

New Restrictions: The Decree could potentially force a
redenomination of foreign-currency debt payments into local
currency for international creditors, which Fitch would likely view
as a distressed debt exchange or event of default. In addition, the
Decree, as clarified by the Bank of Russia (BoR), differentiates
creditors from countries imposing sanctions on Russia, and in some
cases debt payments have to be initially transferred to specified
accounts that are governed by BoR.

Tightening Sanctions: Ongoing ratcheting up of sanctions, including
restrictions in energy trade and imports, increase the probability
of a policy response by Russia, and further weaken its economy,
eroding the operating environment for its corporates.

Financial Flexibility Reduced: As a result, Fitch has further
reduced Fitch's assessment of financial flexibility for all Russian
corporates, with a limited exception for domestically-oriented
companies with no debt or limited local-currency debt from domestic
banks.

See below for key issuer-specific drivers.

PJSC Gazprom

Fitch has downgraded PJSC Gazprom's LT FC IDR to 'CC' from 'B'/RWN
and LT LC IDR to 'CC' from 'B+'/RWN. Gazprom's ratings are linked
to the sovereign under Fitch's Government-Related Entities (GRE)
Rating Criteria. However, considering Fitch's Parent and Subsidiary
Linkage (PSL) Rating Criteria and the idiosyncratic drivers for the
sovereign rating, Fitch now allows the company's rating to be at
the level of its standalone credit profile (SCP), one notch above
that of the sovereign.

PJSC Gazprom Neft

Fitch has downgraded Gazprom Neft's LT FC IDR to 'CC' from 'B'/RWN
and LT LC IDR to 'CC' from 'B+'/RWN. Its ratings are at the same
level as those of its parent Gazprom under Fitch's PSL Rating
Criteria.

PJSC Tatneft

Fitch has downgraded Tatneft's LT FC IDR to 'CC' from 'B'/RWN.

PAO Novatek

Fitch has downgraded Novatek's LT FC IDR and LT LC IDR to 'CC' from
'B'/RWN.

PJSC Lukoil

Fitch has downgraded Lukoil's LT FC IDR and LT LC IDR to 'CC' from
'B'/RWN.

PJSOC Bashneft

Fitch has downgraded Bashneft's LT FC IDR to 'CC' from 'B'/RWN and
LT LC IDR to 'CC' from 'B+'/RWN. Bashneft's ratings take into
account a very high level of integration between Bashneft and its
parent, Rosneft Oil Company.

Eurasia Drilling Company Limited

Fitch has downgraded Eurasia Drilling Company Limited's LT FC IDR
and LT LC IDR to 'CC' from 'B'/RWN.

Yakut Fuel and Energy Company JSC

Fitch has downgraded Yakut Fuel and Energy Company JSC's (YATEC) LT
FC IDR and LT LC IDR to 'CC' from 'B-'/RWN.

PAO Severstal

Fitch has downgraded Severstal's LT FC IDR and LT LC IDR to 'CC'
from 'B'/RWN.

PJSC Novolipetsk Steel (NLMK)

Fitch has downgraded NLMK's LT FC IDR to 'CC' from 'B'/RWN.

PJSC Magnitogorsk Iron & Steel Works (MMK)

Fitch has downgraded MMK's LT FC IDR and LT LC IDR to 'CC' from
'B'/RWN.

EVRAZ plc

Fitch has downgraded EVRAZ's LT FC IDR to 'CC' from 'B'/RWN.

AO Holding Company METALLOINVEST

Fitch has downgraded METALLOINVEST's LT FC IDR and LT LC IDR to
'CC' from 'B'/RWN.

PJSC MMC Norilsk Nickel

Fitch has downgraded Norilsk Nickel's LT FC IDR and LT LC IDR to
'CC' from 'B'/RWN.

Nord Gold PLC

Fitch has downgraded Nord Gold's LT FC IDR and LT LC IDR to 'CC'
from 'B'/RWN.

PJSC Polyus

Fitch has downgraded Polyus's LT FC IDR to 'CC' from 'B'/RWN.

Petropavlovsk plc

Fitch has downgraded Petropavlovsk's LT FC IDR to 'CC' from
'B'/RWN.

PJSC ALROSA

Fitch has downgraded Alrosa's LT FC IDR to 'CC' from 'B'/RWN.
Alrosa's ratings are linked to the sovereign under Fitch's GRE
Rating Criteria. However, considering Fitch's PSL Rating Criteria
and the idiosyncratic drivers for the sovereign rating, Fitch now
allows the company's rating to be at the level of its SCP, one
notch above that of the sovereign.

PJSC Koks

Fitch has downgraded Koks's LT FC IDR and LT LC IDR to 'CC' from
'B'/RWN.

JSC SUEK

Fitch has downgraded SUEK's LT FC IDR to 'CC' from 'B'/RWN.

United Company RUSAL, international public joint-stock company

Fitch has downgraded Rusal's LT FC IDR to 'CC' from 'B'/RWN.

PSC Corporation VSMPO-AVISMA

Fitch has downgraded VSMPO's LT FC IDR to 'CC' from 'B'/RWN.

PAO SIBUR Holding

Fitch has downgraded SIBUR's LT FC IDR to 'CC' from 'B'/RWN.

PJSC Kazanorgsintez

Fitch has downgraded Kazanorgsintez's LT FC IDR to 'CC' from
'B'/RWN. KOS is majority owned by SIBUR (CC).

EuroChem Group AG

Fitch has downgraded EuroChem's LT FC IDR to 'CC' from 'B'/RWN.

PJSC Acron

Fitch has downgraded Acron's LT FC IDR and LT LC IDR to 'CC' from
'B'/RWN.

Uralkali PJSC

Fitch has downgraded Uralkali's LT FC IDR to 'CC' from 'B'/RWN.

PJSC PhosAgro

Fitch has downgraded PhosAgro's LT FC IDR and LT LC IDR to 'CC'
from 'B'/RWN.

DERIVATION SUMMARY

The 'CC' LT FC IDRs for issuers reflect the heightened operational
and financial risks discussed above under Key Rating Drivers and
mean that default of some kind appears probable. The uncertainty
and dynamism of the situation makes significant differentiation
between companies impossible at this stage.

For idiosyncratic drivers for each business before the current
crisis, see the relevant rating action commentaries (RACs) for each
issuer referenced above.

KEY ASSUMPTIONS

Fitch has applied the generic recovery band of RR4 to the entities'
senior unsecured debt, reflecting the relatively low debt in these
entities and the Russian recovery cap of RR4.

RATING SENSITIVITIES

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

-- Removal of sanctions and economic stabilisation and relaxed FX
    and cross-border payment controls could be positive for the
    ratings.

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

-- Indication that a default or default-like process has begun,
    or the issuer is in standstill.

Rating sensitivities for Russia's sovereign rating dated 8 March
2022:

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

-- Failure to fulfil commercial debt payment within stipulated
    grace periods.

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

-- Improved confidence in Russia's willingness to repay debt, for
    example due to implementation of policy that is consistent
    with its continuing servicing of debt obligations, alongside
    expectations there will be continued capacity to execute debt
    payments.

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

Pre-crisis liquidity discussion can be found in RACs for each
issuer referenced above. Today's rating actions reflect the
introduction of further limitations to companies' ability to
service debt as described in Key Rating Drivers.

Criteria Variation

A criteria variation has been applied with respect to bespoke
recovery analysis. Given the high levels of uncertainty inherent in
the current situation, Fitch has assigned Recovery Ratings of
'RR4', reflecting a combination of the relatively low debt load and
the Russian cap on Recovery Ratings of 'RR4'. Similarly, for
Gazprom's hybrid instrument Fitch has not undertaken a bespoke
recovery analysis and followed a generic notching and assigned a
'C' rating with a Recovery Rating of 'RR6'.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Gazprom's ratings are linked to the sovereign under Fitch's GRE
Rating Criteria. However, considering Fitch's PSL Rating Criteria
and the idiosyncratic drivers for the sovereign rating, Fitch now
allows the company's rating to be at the level of its SCP, one
notch above that of the sovereign.

Gazprom Neft's ratings are at the same level as those of its parent
Gazprom under Fitch's PSL Rating Criteria.

Bashneft's ratings take into account a very high level of
integration between Bashneft and its parent, Rosneft Oil Company.

[*] Fitch Lowers LT IDRs of 10 Russian Companies to 'CC'
--------------------------------------------------------
Fitch Ratings has downgraded 10 Russian companies' Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDR) to 'CC',
reflecting new restrictions that may impair the companies' ability
to service debt, and following the agency's recent downgrade of
Russia's sovereign ratings.

Fitch typically does not assign Outlooks or apply Rating Watches to
ratings of 'CCC' or below.

KEY RATING DRIVERS

Probable Default: Fitch believes that the Presidential Decree of 5
March 2022, against the backdrop of an escalating sanctions regime,
could impose insurmountable barriers to many corporates' ability to
make timely payments on foreign- and local-currency debt to certain
international creditors. While the practical implementation of this
decree remains unclear, Fitch believes that the severely heightened
risk is best reflected in Fitch's 'CC' rating definition of
'default of some kind appears probable'.

New Restrictions: The Decree could force a redenomination of
foreign-currency debt into local currency for international
creditors, which Fitch would likely view as a distressed debt
exchange or event of default. In addition, the Decree, as clarified
by the Bank of Russia (BoR), differentiates creditors from
countries imposing sanctions on Russia and, in some cases, debt
payments have to be initially transferred to specified accounts
that are governed by BoR.

Tightening Sanctions: Ongoing intensification of sanctions,
including restrictions in energy trade and imports, increase the
probability of a policy response from Russia, in turn further
weakening its economy and eroding the operating environment for its
corporates.

Financial Flexibility Reduced: As a result, Fitch has further
downgraded Fitch's assessment of financial flexibility for all
Russian corporates, with a limited exception for
domestically-oriented companies with no debt or limited
local-currency debt from domestic banks.

PJSC Mobile Telesystems (MTS)

Fitch has downgraded MTS's Long-Term Foreign- and Local-Currency
IDRs to 'CC' from 'B'/RWN.

PJSC Rostelecom

Fitch has downgraded Rostelecom's Long-Term Foreign-Currency IDR to
'CC' from 'B'/RWN.

Fitch has also revised down Rostelecom's Standalone Credit Profile
(SCP) to 'cc' from 'b'.

Sistema Public Joint Stock Financial Corporation

Fitch has downgraded Sistema's Long-Term Foreign- and
Local-Currency IDRs to 'CC' from 'B'/RWN.

PJSC Tattelecom

Fitch has downgraded Tattelecom's Long-Term Foreign-Currency IDR to
'CC' from 'B'/RWN.

Yandex N.V.

Fitch has downgraded Yandex's Long-Term Foreign-Currency IDR to
'CC' from 'B'/RWN.

JSC R-Pharm

Fitch has downgraded JSC R-Pharm's Long-Term Foreign-Currency IDR
to 'CC' from 'B'/RWN.

PJSC Beluga Group

Fitch has downgraded PJSC Beluga Group's Long-Term Foreign-Currency
IDR to 'CC' from 'B' and Long-Term Local-Currency IDR to 'CC' from
'B+'/RWN.

Lenta LLC

Fitch has downgraded Lenta LLC's Long-Term Foreign-Currency IDR to
'CC' from 'B'/RWN and Long-Term Local-Currency IDR to 'CC' from
'BB-'/RWN.

X5 Retail Group N.V.

Fitch has downgraded X5 Retail Group N.V.'s Long-Term
Foreign-Currency IDR to 'CC' from 'B'/RWN and Long-Term
Local-Currency IDR to 'CC' from 'BB-'/RWN.

JSC Holding Company United Confectioners

Fitch has downgraded JSC Holding Company United Confectioners'
Long-Term Foreign-Currency IDR to 'CC' from 'B-'/RWN.

DERIVATION SUMMARY

The 'CC' Long-Term Foreign-Currency IDRs for most Russian
corporates reflects the heightened operational and financial risks
discussed above under Key Rating Drivers. The 'CC' rating means
that default of some kind appears probable. The uncertainty and
dynamism of the conflict makes significant differentiation between
companies impossible at present.

RATING SENSITIVITIES

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

-- De-escalation of the Russian invasion leading to removal of
    sanctions and economic stabilisation and relaxed foreign
    exchange and cross-border payment controls could be positive
    for the ratings.

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

-- Indication that a default or default-like process has begun,
    or the issuer is in standstill.

Rating sensitivities for Russia's sovereign rating dated 8 March
2022:

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

-- Failure to fulfil commercial debt payment within stipulated
    grace periods.

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

-- Improved confidence in Russia's willingness to repay debt, for
    example due to implementation of policy that is consistent
    with its continuing servicing of debt obligations, alongside
    expectations there will be continued capacity to execute debt
    payments.

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

Pre-crisis liquidity discussion can be found in RACs for each
issuer referenced above. Today's rating action reflects the
introduction of further limitations to companies' ability and
willingness to service debt as described in Key Rating Drivers.

Criteria Variation

A criteria variation has been applied with respect to bespoke
recovery analysis. Given the high levels of uncertainty inherent in
the current conflict, Fitch has assigned Recovery Ratings to all
such names at 'RR4', reflecting a combination of the relatively low
debt load of many companies in Russia and the Russian cap on
Recovery Rating of 'RR4'.

ESG CONSIDERATIONS

Fitch has revised MTS's ESG Relevance Score for Governance
Structure to '3' from '4' since the drivers of this score no longer
represent a constraint to the rating. A score of '3' expresses
minimal credit-relevance to the rating.

JSC Holding Company United Confectioners had an ESG Relevance Score
of '5' for Group Structure, an ESG Relevance Score of '5' for
Governance Structure, an ESG Relevance Score of '4' for Financial
Transparency. These have been revised to '3' since the drivers of
these scores no longer represent a constraint to the rating. A
score of '3' expresses minimal credit-relevance to the rating.

Fitch has revised JSC R-Pharm's ESG Relevance Score for Group
Structure, Governance Structure, Exposure to Social Impacts, and
Financial Transparency to '3' from '4' since the drivers of these
scores no longer represent a constraint to the rating. A score of
'3' expresses minimal credit-relevance to the rating.

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 IDRs of 20 Russian Government Units to 'C'
--------------------------------------------------------------
Fitch Ratings has downgraded 20 Russian local and regional
governments' (LRGs) Long-Term Foreign- and Local-Currency Issuer
Default Ratings (IDRs) to 'C'. Fitch typically does not assign
Outlooks or apply modifiers for LRGs with a rating of 'CCC' or
below when such ratings are driven by those of the corresponding
sovereign rating.

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 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 schedule
review date for Fitch's rating on Krasnoyarsk Region, Mari El
Republic, City of Moscow, City of St. Petersburg, Stavropol Region,
Sverdlovsk Region, Yamal-Nenets Autonomous District is 01 April
2022; for Altai Region, Bashkortostan Republic, Novosibirsk City,
Republic of Sakha (Yakutia), Republic of Tatarstan is 29 April
2022; for Kirov Region, Nizhniy Novgorod Region, Orenburg Region,
Yaroslavl Region is 20 May 2022 and for Chelyabinsk Region, Lipetsk
Region, Moscow Region and Novosibirsk Region is 10 June 2022, but
Fitch believes the developments for the issuers 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

At a 'C' rating level for LRGs the concept of sovereign cap may be
blurred, but Fitch believes that the reasons for applying the cap
still prevail, and are even more stringent under the specific
circumstances. Given the current situation in Russia and the strong
grip of the central authorities on the other tiers of government
and state-owned economic agents, Fitch does not believe the LRGs
would be able to withstand a sovereign default, which is a
condition set by Fitch's criteria to rate an LRG higher than its
sovereign.

Furthermore Fitch believes that LRGs are very unlikely to be the
"entities with potential ability to make payments" (see "Fitch
Downgrades Russia to 'C'" dated 8 March at www.fitchratings.com)
that could qualify to benefit from a rating higher than sovereign,
up to the Country Ceiling of 'B-'. These entities are more likely
to be those with access to foreign currencies or in strategically
important international transactions.

DERIVATION SUMMARY

The downgrades reflect and follow the downgrade of the sovereign on
8 March. 'C'.

With the 'B-' Country Ceiling there is theoretically some headroom
to rate entities higher than the sovereign. However, Fitch believes
that this would not apply to the "subjects of the federation" that
are LRGs. This is due to two factors: first, the very strong
institutional links between the sovereign and its LRGs (Russian
LRGs are capped by the sovereign rating, reflecting a strong
"verticality of power" where the federal government has major
prerogatives and powers). Second, the current geopolitical
developments have reinforced the political weight of central
authorities and their influence over local authorities, making
autonomous management of fiscal and financial matters by local
authorities less plausible. As a result, Fitch believes that if the
sovereign were to default, the LRGs would also default, if not
earlier, shortly after.

KEY ASSUMPTIONS

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

All qualitative assumptions for all issuers and issuer-specific
quantitative assumptions are unchanged (the last review for all the
affected issuers was on 3 March 2022) and carry low weight, except
the Sovereign Cap: 'C' lowered with high weight.

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): 10,136;
    12,920

-- Real GDP growth (%): -3.0; 2.0

-- Consumer prices (annual average % change): 3.4; 4.2

-- General government balance (% of GDP): -4.0; 0.6

-- General government debt (% of GDP): 20.4; 18.5

-- Current account balance plus net FDI (% of GDP): 2.7; 3.4

-- Net external debt (% of GDP): -46.9; -45.7

-- IMF Development Classification: EM (emerging market)

RATING SENSITIVITIES

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

-- Failure to fulfil commercial debt payment within stipulated
    grace periods.

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

-- An upgrade of Russia, which would likely stem from improved
    confidence in Russia's willingness to repay debt, for example
    due to implementation of policy that is consistent with its
    continuing servicing of debt obligations, alongside
    expectations there will be continued capacity to execute debt
    payments.

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

Krasnoyarsk Region, Orenburg Region, Republic of Sakha (Yakutia)
and Yamal-Nenets Autonomous District have ESG Relevance Scores of
'4' for 'Biodiversity and Natural Resource Management' due to the
concentration of taxpayers in natural resource exploration and
processing, which exposes their revenue to commodity-price
volatility. This has a negative impact on the credit profile, and
is relevant to the ratings in conjunction with other factors.

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

[*] Fitch Lowers LT IDRs of 5 Russian Transport Companies to 'CC'
-----------------------------------------------------------------
Fitch Ratings has downgraded five Russian transport companies'
Long-Term Issuer Default Ratings (IDRs) to 'CC'. The downgrade
reflects new restrictions that may impair the companies' ability to
service debt, and follows the agency's downgrade of Russia's
sovereign ratings on 8 March 2022. Fitch typically does not assign
Outlooks or apply Rating Watches to ratings of 'CCC' or below.

KEY RATING DRIVERS

Probable Default: Fitch believes that the Presidential Decree of 5
March 2022, against the backdrop of an escalating sanctions regime,
could impose insurmountable barriers to many corporates' ability to
make timely payments on foreign- and local-currency debt to certain
international creditors. While the practical implementation of this
decree remains unclear, Fitch believes that the severely heightened
risk is best reflected in Fitch's 'CC' rating definition of
'default of some kind appears probable'.

New Restrictions: The Decree could force a redenomination of
foreign-currency debt into local currency for international
creditors, which Fitch would likely view as a distressed debt
exchange or event of default. In addition, the Decree, as clarified
by the Bank of Russia (BoR), differentiates creditors from
countries imposing sanctions on Russia and, in some cases, debt
payments have to be initially transferred to specified accounts
that are governed by BoR.

Tightening Sanctions: Ongoing intensification of sanctions,
including restrictions in aviation, energy trade and imports,
increases the probability of a policy response by Russia, which
will further weaken its economy and erode the operating environment
for its corporates.

Financial Flexibility Reduced: As a result, Fitch has further
downgraded Fitch's assessment of financial flexibility for all
Russian corporates, with a limited exception for
domestically-oriented companies with no debt or limited
local-currency debt from domestic banks.

Public Joint Stock Company Aeroflot - Russian Airlines

Fitch has downgraded Public Joint Stock Company Aeroflot - Russian
Airlines' (AFLT) Long-Term Foreign-Currency (LTFC) IDR to 'CC' from
'B-'/Rating Watch Negative (RWN).

For AFLT the key drivers include sanctions on provision of aircraft
and spares that have severely disrupted its business, including
cancellation of all international flights (except for destinations
in Belarus) due to its all-leased fleet of mostly Boeing and Airbus
aircraft. In addition, AFLT has US dollar debt from local banks.

AFLT's ratings are linked to the Russian sovereign's under Fitch's
Government-related Entities (GRE) Rating Criteria; however,
considering Fitch's Parent and Subsidiary Linkage (PSL) Rating
Criteria and the idiosyncratic drivers of the sovereign ratings,
Fitch now allows the company's rating to be at its Standalone
Credit Profile (SCP) level, one notch above that of the sovereign.

The downgrade of the senior unsecured rating to 'C' from 'CCC'
reflects a low unencumbered asset base and fairly high secured debt
resulting in a Recovery Rating of 'RR6'.

PAO Sovcomflot

Fitch has downgraded PAO Sovcomflot's (SCF) LTFC IDR to 'CC' from
'B'/RWN.

SCF operates internationally and has US dollar-denominated debt
from both foreign and domestic banks. SCF's ratings are linked to
the sovereign's under Fitch's GRE Rating Criteria; however,
considering Fitch's PSL Rating Criteria and the idiosyncratic
drivers of the sovereign rating, Fitch now allows the company's
rating to be at its SCP level, one notch above that of the
sovereign.

PJSC Freight One

Fitch has downgraded PJSC Freight One's LTFC IDR to 'CC' from
'B'/RWN and Long-Term Local-Currency (LTLC) IDR to 'CCC' from
'B+'/RWN.

Freight One generates all its revenue in Russia. All of its debt is
rouble-denominated and with domestic banks, allowing its LTLC IDR
to be higher than its LTFC IDR.

Globaltrans Investment Plc

Fitch has downgraded Globaltrans Investment Plc's LTFC and LTLC
IDRs to 'CC' from 'B'/RWN and 'B+'/RWN, respectively.

Globaltrans generates about 98% of revenue in Russia. All its debt
is rouble-denominated with fixed interest rates. Globaltrans has
two outstanding rouble-denominated bonds totalling RUB7.5 billion
due in 2H22-2024.

Far-Eastern Shipping Company Plc

Fitch has downgraded Far-Eastern Shipping Company Plc's (FESCO)
LTFC and LTLC IDRs to 'CC' from 'B'/RWN.

FESCO generates all its revenue in Russia. Around 13% of its debt
is denominated in foreign currencies, with the remainder in
roubles. Around 30% of its EBITDA, mostly from the port and liner
and logistics divisions, is US dollar-denominated.

DERIVATION SUMMARY

The LTFC 'CC' IDRs for all five issuers reflect the heightened
operational and financial risks leading to probable default. The
uncertainty and dynamism of the crisis makes significant
differentiation between companies impossible at this stage.

For idiosyncratic drivers of each business before the current
crisis, see relevant Rating Action Commentaries (RACs) for each
issuer referenced above.

KEY ASSUMPTIONS

In addition, for AFLT:

-- The recovery analysis uses the higher of going-concern EBITDA-
    based enterprise value and liquidation value. Due to the
    likely severe disruption to AFLT's operations, liquidation
    value, based on haircuts to its unencumbered asset base,
    provides higher value available to creditors.

-- A 10% administrative claim.

Liquidation Value Approach

With these assumptions, Fitch's waterfall generated recovery
computation (WGRC) results in 'RR6' for its senior unsecured debt.

In addition, for SCF:

-- The recovery analysis uses the higher of going-concern EBITDA
    based enterprise value and liquidation value. For SCF
    liquidation value based on haircuts to its asset base provides
    higher value available to creditors.

-- A 10% administrative claim.

Liquidation Value Approach

With these assumptions, Fitch's WGRC for the senior unsecured
rating are capped under Fitch's Country-Specific Treatment of
Recovery Ratings Criteria at 'RR4'.

In addition, for PJSC Freight One and Joint-stock company New
forwarding company (subsidiary of Globaltrans):

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

-- A 10% administrative claim.

Going-Concern Approach

-- The going-concern EBITDA estimate reflects Fitch's view of a
    sustainable, post-reorganisation EBITDA level upon which we
    base the valuation of the companies and the enterprise value
    multiple of 4x.

With these assumptions, Fitch's WGRC for the senior unsecured
rating are capped under Fitch's Country-Specific Treatment of
Recovery Ratings Criteria at 'RR4'.

RATING SENSITIVITIES

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

-- De-escalation of the crisis leading to removal of sanctions
    and economic stabilisation and relaxed foreign-exchange and
    cross-border payment controls could be positive for the
    ratings.

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

-- Indication that a default or default-like process has begun,
    or that the issuer is in standstill.

Rating sensitivities for Russia's sovereign rating dated 8 March
2022:

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

-- Failure to fulfil commercial debt payment within stipulated
    grace periods.

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

-- Improved confidence in Russia's willingness to repay debt, for
    example due to implementation of policy that is consistent
    with its continuing servicing of debt obligations, alongside
    expectations there will be continued capacity to execute debt
    payments.

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

Pre-crisis liquidity assessment can be found in RACs for each
issuer referenced above. Today's rating action reflects the
introduction of further limitations to companies' ability and
willingness to service debt as described in Key Rating Drivers.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

AFLT's and SCF's ratings are linked to Russia's IDR under Fitch's
GRE Rating Criteria.

ESG CONSIDERATIONS

FESCO's ESG Relevance Score for Governance Structure has been
revised to '3' from '4' since the drivers of this score no longer
represent a constraint to the rating. A score of '3' expresses
minimal credit-relevance to the rating.

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 Ratings of 2 Russian Homebuilders to 'CC'
----------------------------------------------------------
Fitch Ratings has downgraded two Russian homebuilders to 'CC' from
'B'. Fitch typically does not assign Outlooks or apply modifiers
with a rating of 'CCC' or below.

The downgrades reflect new restrictions that may impair the
companies' ability to service debt, and follow the agency's
downgrade of Russia's sovereign ratings on 8 March 2022.

KEY RATING DRIVERS

Probable Default: Fitch believes that the Presidential Decree of 5
March 2022, against the backdrop of an escalating sanctions regime,
could impose insurmountable barriers to many corporates' ability to
make timely payments on foreign- and local-currency debt to certain
international creditors. While the practical implementation of this
decree remains unclear, Fitch believes that the severely heightened
risk is best reflected in its 'CC' ratings definition: "Default of
some kind appears probable."

New Restrictions: The Decree could potentially force a
redenomination of foreign-currency debt into local currency for
international creditors, which Fitch would likely view as a
distressed debt exchange or event of default. In addition, the
Decree, as clarified by the Bank of Russia (BoR), differentiates
creditors from countries imposing sanctions on Russia, and in some
cases debt payments have to be initially transferred to specified
accounts that are governed by BoR.

Tightening Sanctions: Ongoing ratcheting up of sanctions, including
restrictions in energy trade and imports, increase the probability
of a policy response by Russia, and further weaken its economy,
eroding the operating environment for its corporates.

Financial Flexibility Reduced: As a result, Fitch has further
reduced Fitch's assessment of financial flexibility for all Russian
corporates, with a limited exception for domestically-oriented
companies with no debt or limited local-currency debt from domestic
banks.

Rating Actions: The Long-Term Foreign-Currency and Local Currency
Issuer Default Ratings (LT FC and LC IDR) have been downgraded to
'CC' for most companies. Fitch has differentiated between LT LC and
FC IDRs and downgraded LT LC IDRs to 'CCC' in case of
domestically-focused businesses with no debt or limited
local-currency debt from domestic banks.

PJSC PIK-specialized homebuilder

Fitch has downgraded PJSC PIK-specialized homebuilder's LT FC IDR
to 'CC' from 'B' The agency has also downgraded the Long-Term IDR
and senior unsecured rating of LLC PIK-Corporation, the 100%-owned
sub-holding of the group, to 'CC' from 'B'. PIK Securities DAC's
USD525 million senior unsecured Eurobond due 2026 was also
downgraded to 'CC'/'RR4'/'50%' from 'B'/'RR4'/'50%'.

For PIK, the key drivers include moderate leverage and a
concentrated portfolio, albeit in the lucrative Moscow and Moscow
region residential markets. Forecast funds from operations (FFO)
leverage was forecast to temporarily exceed the negative rating
sensitivity of 2.0x due to the transition to the escrow scheme. The
rating also incorporates the higher volatility of the Russian
residential market compared with developed Western European
equivalents.

PJSC LSR Group

Fitch has downgraded PJSC LSR Group's LT FC IDR to 'CC' from 'B'.
Fitch has also downgraded the senior unsecured rating of
outstanding bond issues to 'CC'/'RR4'/'50%' from 'B'/RR4'/'50%'.

For LSR, the key drivers include high leverage, which exceeds some
peers and the higher volatility of the Russian residential market
compared with developed European equivalents.

DERIVATION SUMMARY

The 'CC' LT FC IDRs reflect the heightened operational and
financial risks discussed above under Key Rating Drivers and mean
that default of some kind appears probable. The uncertainty and
dynamism of the situation makes significant differentiation between
companies impossible at this stage.

KEY ASSUMPTIONS

For PIK, Fitch has applied the generic recovery band of RR4 to the
entity's senior unsecured debt, reflecting relatively low debt and
the Russian recovery cap of RR4.

RATING SENSITIVITIES

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

-- De-escalation of Russia's military operations leading to
    removal of sanctions and economic stabilisation and relaxed FX
    and cross-border payment controls could be positive for the
    ratings.

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

-- Indication that a default or default-like process has begun,
    or the issuer is in standstill.

Rating sensitivities for Russia's sovereign rating dated 8 March
2022:

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

-- Failure to fulfil commercial debt payment within stipulated
    grace periods.

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

-- Improved confidence in Russia's willingness to repay debt, for
    example due to implementation of policy that is consistent
    with its continuing servicing of debt obligations, alongside
    expectations there will be continued capacity to execute debt
    payments.

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

Pre-crisis liquidity discussion can be found in RACs for each
issuer referenced above. Today's rating actions reflect the
introduction of further limitations to companies' ability and
willingness to service debt as described in Key Rating Drivers.

ISSUER PROFILE

PJSC PIK is the leading homebuilder in Russia, specialising in the
mass-market segment primarily in Moscow and Moscow region. The
company's construction volume is almost two times higher than its
close peer, PJSC LSR Group. LLC PIK-Corporation is the group's
sub-holding, which consolidates all operating units of the group.

LSR is a second-largest housebuilder in Russia concentrating on the
most lucrative markets - St. Petersburg and Moscow. The company
also has a building materials division, which contributed 16% of
total revenue in 2020.

Criteria Variation

For PIK Securities DAC, Fitch includes a criteria variation from
its 'Corporates Recovery Ratings and Instrument Ratings Criteria'.

The criteria variation has been applied with respect to bespoke
recovery analysis. Given the high levels of uncertainty inherent in
the current situation, Fitch has assigned recovery ratings to all
such names at RR4, reflecting a combination of the relatively low
debt load of many companies in Russia and the Russian cap on
recovery ratings of RR4.

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.

[*] RUSSIA: IMF Head Says Sovereign Default No Longer Improbable
----------------------------------------------------------------
Tony Czuczka at Bloomberg News reports that International Monetary
Fund Managing Director Kristalina Georgieva said a Russian
sovereign default is no longer improbable, though it's unlikely to
trigger a global financial crisis.

With Russia and Russian banks under sanctions by the U.S. and its
allies after the full-scale invasion of Ukraine, Russia's credit
rating has faced downgrades, Bloomberg relates.  Fitch Ratings said
last week that a bond default is "imminent" as a result of measures
imposed since the war in Ukraine began on Feb. 24, Bloomberg
recounts.

"In terms of servicing debt obligations, I can say that no longer
we think of Russian default as improbable event," Bloomberg quotes
Ms. Georgieva as saying on CBS's "Face the Nation" on March 13.
"Russia has the money to service its debt, but cannot access it."

Asked whether Russia's financial squeeze risks causing a world
financial crisis, the IMF head, as cited by Bloomberg, said, "For
now, no."  Banks' global exposure to Russia is "definitely not
systemically relevant," she said.



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

UKRAINE: S&P Keeps 'B-/B' Sovereign Credit Ratings on Watch Neg.
----------------------------------------------------------------
On March 11, 2022, S&P Global Ratings said its 'B-/B' long- and
short-term foreign and local currency sovereign credit ratings on
Ukraine remain on CreditWatch with negative implications.

S&P's 'uaBBB-' national scale rating on Ukraine also remains on
CreditWatch negative.

CreditWatch

The CreditWatch negative reflects multiple risks to Ukraine's
economy, external balances, public finances, and financial and
political stability stemming from Russia's military operations.

S&P expects to resolve the CreditWatch placement within 90 days.
S&P could lower the ratings should we expect military actions to
prevent the authorities from servicing commercial debt. The rating
might also come under pressure should the conflict lead to a drain
on Ukraine's external liquidity or a rise in fiscal contingent
liabilities from its commercial banking system.

Rationale

The ratings on Ukraine are constrained by Russia's military
operations within the country, which bring about significant
downside risks for the economy and financial sector. S&P sees the
potential for governance disruptions, putting commercial debt
servicing at risk. The ratings are also constrained by Ukraine's
low GDP per capita income and developing institutions.

Despite the conflict, Ukraine is continuing to honor its domestic
and foreign debt service obligations and has pledged to continue
doing so. On March 1, the Ministry of Finance made a scheduled
coupon payment of roughly $290 million on one of its eurobonds. At
the same time, strong committed international financial support to
Ukraine and still relatively high foreign exchange (FX) reserves
support the sovereign ratings.

Ukraine's GDP proved relatively resilient to the COVID-19 pandemic
during both 2020 and 2021. However, the ongoing armed conflict with
Russia has upended the gradually improving economic outlook.
Ukraine now faces disruption to key economic sectors, significant
loss of life, and broad damage to essential infrastructure.

The ultimate economic fallout caused by the current events is
difficult to quantify, but a double-digit contraction in output for
2022 appears almost inevitable. Economic consequences from the
conflict have already started to take hold via the suspension of
commercial shipping from ports. This will weigh on Ukraine's export
capacity and its ability to benefit from the currently favorable
global prices for the country's key exports goods, including metals
and wheat.

Output contraction, as well as military and emergency spending
needs, will add significant pressures, increasing government
financing requirements in 2022 several fold compared with those
expected before the conflict.

At the same time, even these elevated borrowing needs will likely
be covered by different types of international financial support.
The National Bank of Ukraine (NBU) estimates the overall
international financial and humanitarian support committed to date
at about $15 billion (some 8.6% of 2021 GDP). This includes
international loans, grants, and guarantees, namely:

-- A $1 billion guarantee from the U.S. government;

-- A EUR1.2 billion emergency macrofinancial assistance program
from the EU;

-- A loan for budgetary purposes of up to $500 million from the
Canadian government, in addition to a $120 million loan announced
on Jan. 21, 2022;

-- A $500 million guarantee from the U.K. government to support
Ukraine and mitigate the economic effects of the Russian military
actions;

-- EUR300 million in financial aid from Germany;

-- $100 million in emergency loans from Japan;

-- $350 million disbursement from the World Bank to support short-
and long-term financing needs.

The above come on top of Ukraine's $5 billion Stand-By Arrangement
with the IMF, of which, $2.2 billion remains undisbursed. The IMF
program was agreed in June 2020 and extended until end-June 2022.
Ukraine has requested emergency financing of $1.4 billion under the
IMF's Rapid Financing Instrument. In addition, the National Bank of
Poland has offered NBU a currency swap equivalent to $950 million.
The recent statements by the international community and
international financial institutions suggest that the size of donor
support could be further increased. S&P assumes it will at least
cover Ukraine's financing requirements in 2022.

Nevertheless, as the conflict continues, Ukraine's technical
ability to use international financial support and meet its ongoing
debt service obligations could erode.

The NBU has adopted several measures to mitigate exchange rate and
financial market volatility as well as the resulting risks to
macroeconomic stability stemming from the ongoing military
conflict. These measures include the suspension of Ukraine's FX
market (except for FX sales by customers), cash withdrawal limits,
unlimited unsecured refinancing loans to banks, a moratorium on
cross-border financial transactions (excluding those related to
debt service), and a fixed hryvnia exchange rate. As of March 2,
the NBU had official reserve assets of $27.5 billion. As per
international convention, these are kept outside the country,
mostly in G-7 counties.

Ahead of the military conflict, S&P estimated nonperforming loans
in the Ukrainian banking system would decline to about 25% by
year-end 2022 from 30% at end-2021. However, given the substantial
fallout of current events on the private sector, the outlook for
asset quality has deteriorated substantially, while confidence
could also weigh on banks' liquidity positions. The potential
recapitalization needs of Ukraine's state-owned banks will likely
put additional pressure on the government's budget.

S&P Global Ratings acknowledges a high degree of uncertainty about
the extent, outcome, and consequences of the military conflict
between Russia and Ukraine. Irrespective of the duration of
military hostilities, sanctions and related political risks are
likely to remain in place for some time. Potential effects could
include dislocated commodities markets--notably for oil and
gas--supply chain disruptions, inflationary pressures, weaker
growth, and capital market volatility. As the situation evolves,
S&P will update its assumptions and estimates accordingly.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  Ratings List

  RATINGS REMAIN ON CREDITWATCH

  UKRAINE

  Sovereign Credit Rating     B-/Watch Neg/B

  Ukraine National Scale      uaBBB-/Watch Neg/--

  Transfer & Convertibility Assessment   B-

  Senior Unsecured            B-/Watch Neg

  Senior Unsecured            D

  STATE ROAD AGENCY OF UKRAINE (UKRAVTODOR)

  Senior Unsecured            B-/Watch Neg




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

ATRIUM EUROPEAN: Fitch Places 'BB' LT IDR on Watch Negative
-----------------------------------------------------------
Fitch Ratings has placed Atrium European Real Estate Limited's
Long-Term Issuer Default Rating (IDR) of 'BB' on Rating Watch
Negative (RWN).

The RWN reflects increased risks related to Atrium's retail
property operations in Russia (around 10% of portfolio value, 20%
of net rental income), which is experiencing a worsening economic
climate due to international sanctions and a material rouble
devaluation. The RWN also reflects the risk of restrictions on
payments from Atrium's Russian operations to the rest of the group,
although Fitch understands that receipt of roubles is currently
possible. Russia is a non-core operation for Atrium, which had been
looking to sell these assets for some time.

Fitch plans to resolve the RWN when there is greater clarity on the
financial impact of the current situation or if further
restrictions on rouble payments are introduced. The ratings may be
affirmed or be downgraded by one notch, based on Fitch's forecasts
of zero rent receipts from the Russian operations.

KEY RATING DRIVERS

Depreciation Impact on Rent: Depreciation of the rouble, of the
current magnitude of 40%-45% compared with end-2021, led to
compensatory rent concessions to retail tenants in previous crises.
Atrium's leases are euro-denominated but tenants' sales and
profitability are in local currency, which limits their ability to
pay euro-denominated rent.

Deteriorating Retail Environment in Russia: The deteriorating
retail environment in Russia and international sanctions has
prompted large international tenants (including H&M, Inditex) to
temporarily close operations in Russia, which will further reduce
Atrium's rental income. Furthermore, tenants' supplies of goods
from international suppliers may also be interrupted or become too
expensive, potentially affecting sales of tenants that continue to
operate.

Deteriorating Leverage at Atrium: Fitch forecasts, using the
current rouble exchange rate, that Atrium's net debt/EBITDA will
increase to below 11x in 2022 compared with below 10x using
end-2021 exchange rates. This includes the impact of the special
dividend that was paid in February 2022 (EUR257 million in total)
as part of the Gazit merger agreement. However, if Fitch assumes
further payment restrictions constraining Atrium's ability to
extract any cash from Russian operations, cashflow leverage
deteriorates to 12.7x. Under this scenario, interest cover would
remain above 2x (Fitch's ratio including interest expense on the
hybrids).

Headroom in Covenants: Fitch expects Atrium to maintain adequate
headroom in its bond covenants both if Fitch uses current exchange
rates and if Fitch excludes Russia-related assets and cash flows.
The bond covenants are gross debt/total assets at below 60% and
interest cover above 1.5x and exclude the hybrid bond outstanding
and its interest obligations.

Stronger Linkage with Gazit: After becoming the sole shareholder in
February 2022, Gazit's control of Atrium is no longer constrained
by Atrium's minority shareholders or its separate listing. The
oversight of independent directors is no longer strong. This allows
Gazit to access Atrium's assets and potentially transfer value from
its financially stronger subsidiary to the detriment of Atrium's
creditors. Although Atrium is separately funded, Gazit has stated
that it plans to integrate Atrium into its privately-held portfolio
to achieve synergies operationally and in terms of financing and
the capital markets.

PSL Porous Legal Ring-fencing: Covenants in Atrium's bond documents
contain self-imposed restrictions that limit the size of potential
value transfers to Gazit. Under Fitch's Parent Subsidiary Linkage
(PSL) Criteria, the presence of these restrictions result in a
'porous' scoring (indicating weak ring-fencing). Fitch's assessment
of the PSL factors results in a maximum rating differential of two
notches between the consolidated credit profile of Gazit and
Atrium, and Atrium's IDR.

Weak Consolidated Credit Profile: The Fitch-calculated consolidated
credit profile of Gazit and Atrium is weaker than Atrium's
standalone profile.

DERIVATION SUMMARY

Atrium's closest peer is NEPI Rockcastle plc (BBB/Positive), with
its EUR5.6 billion retail-focused portfolio. NEPI has stronger
diversification with a presence in nine countries, but these are
predominantly rated 'BBB' or below (61% of NEPI's market value).
Atrium's assets are mainly in Poland (A-/Stable) and Czech Republic
(AA-/Stable) with only 10% (by market value) of the portfolio
located in non-core Russia (C). The smaller (EUR0.8 billion),
all-retail portfolio of AKROPOLIS GROUP, UAB (BB+/Stable) is
concentrated in Lithuania (A/Stable).

Globe Trade Centre S.A.'s (GTC; BBB-/Stable) EUR2.1 billion
portfolio benefits from diversification across asset classes, in
both offices (65% of market value) and retail (35%). Its country
risk exposure is similar to NEPI's, with a presence in six
countries. Globalworth Real Estate Investments Limited's
(BBB-/Stable) office-focused portfolio is almost equally split
between Poland and Romania (BBB-/Negative).

Atrium's strategy is to concentrate on Warsaw and Prague with their
large catchment areas and above-average disposable income. This
differs from NEPI whose shopping centres are located in large CEE
cities, and dominate the market in some smaller secondary cities.

Atrium's end-2021 net debt/EBITDA was below 11x pro forma for the
special dividend paid in 1Q22. This is higher than NEPI's leverage
of around 6x, while GTC and Globalworth have leverage of about 9x
and 8x, respectively.

Atrium and NEPI have comparable net initial yields (NIY - defined
as annualised net rents/investment property asset values) of
6.0%-6.8%, depending on each portfolio's asset and country mix. The
remaining CEE peers do not disclose directly comparable NIY data.
Fitch believes the quality of Globalworth's and GTC's portfolios is
broadly similar to that of NEPI and Atrium.

Lithuanian all-retail Akropolis has the most conservative financial
profile, with end-2020 net debt/EBITDA at 4.4x, ahead of a planned
construction project, which will increase its leverage over time.
However, its rating is constrained by its concentration on a
limited number of assets, restricting asset and geographical
diversification.

Except for Atrium, none of the above real estate companies have
exposure to Russia.

KEY ASSUMPTIONS

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

-- In euro terms, a 40-50% decrease in net rental income from
    Russian assets and their value reflecting rouble devaluation,
    tenant concessions and a worsening economic environment. In
    Fitch's stress case, Fitch has assumed EUR28 million (using
    end-2021 exchange rate) of Russian net rental income ceases,
    and for the LTV sensitivity Fitch has assumed EUR259 million
    of Russian assets are foregone.

-- Rent changes arising from acquisitions, disposals or
    developments coming on-stream are annualised rather than
    accounted on a part-year basis.

-- Rents for 2022 include the effect of a further 5% decrease in
    rents from expiring leases, a stable occupancy at around 93%,
    and the adding back of most 2021 rent concessions.

-- Around net EUR185 million on capex and acquisitions during
    2022-2024.

-- Around EUR13 million quarterly dividend starting in 2Q22.

-- No debt arising from the merger transaction in Atrium.

RATING SENSITIVITIES

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

-- Atrium's rating is constrained by the consolidated credit
    profile of Gazi and Atrium. An upgrade would require an
    improvement in this profile or the presence of stronger ring
    fencing protection for Atrium's creditors.

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

-- Inability to access and convert rouble receipts into euro;

-- Evidence of stronger linkage to Gazit, including adverse
    transfers of values, evidence of co-mingling of funds,
    upstream guarantees, or co-borrowings that further limit
    Atrium's independence or weaken its credit profile;

-- Deteriorating consolidated credit profile of Gazit and Atrium;

-- Atrium's net debt/EBITDA above 11x;

-- Deterioration in leverage towards the bond covenants' 60% LTV.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: As at end-4Q21, Atrium held EUR500 million of
cash and a EUR300 million undrawn revolving credit facility (2023
maturity). This is an adequate liquidity position, taking into
account EUR155 million of bonds maturing in October 2022 and its
EUR257 million special dividend paid in February 2022. The next
debt maturity EUR500 million is not until 2025. The average debt
maturity is 4.2 years.

Except for secured mortgage loans financing Atrium's two large top
10 assets, the group's balance sheet is unsecured. This results in
an end-4Q21 unencumbered investment property/unsecured debt
coverage of 1.9x pro forma for the special dividend. Excluding
Atrium's Russian assets, the equivalent would be 1.7x.

ISSUER PROFILE

Atrium is a property investment and development company with retail
assets in Poland, Czech Republic, Slovakia and Russia. The
investment portfolio as at end-December 2021 comprised 26
properties worth EUR2.5 billion (including one joint-venture asset
at share).

ESG CONSIDERATIONS

Atrium has an ESG Relevance Score of '4' for Governance Structure,
due to its ownership by Gazit resulting in stronger effective
control, more 'porous' legal ringfencing and the weaker financial
profile of the consolidated credit profile of Gazit and Atrium.
This has a negative impact on the credit profile, and is relevant
to the ratings in conjunction with other factors.

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

D&M MEATS: Owes More Than GBP1.5 Million to Creditors
-----------------------------------------------------
Sam Greenway at Worcester News reports that a liquidated Worcester
butchers that owed more than GBP1.5 million had "very little" stock
and few assets at closure, new documents reveal.

According to Worcester News, D&M Meats Ltd's closed suddenly after
Christmas with a sign put on the door of the former business
premises, in Venture Business Park, saying: "Regrettably D&M Meats
Ltd has now gone into administration."

The website for Companies House, the government's registrar of
businesses, shows D&M Meats Ltd "commencement of winding up" began
on Jan. 19 and the firm was liquidated later that month, Worcester
News recounts.

Now Companies House shows further documents listing the assets of
the company at closure in a "statement of affairs".

The statement says of the plant, machinery, fixtures and fittings
left there was a "gas packing machine, vac packers and mincing
machines, glass lidded chest freezers, cold room freezers and
cutting prep room" which were inspected and valued by auctioneers
at a total of GBP7,500, Worcester News relates.

According to Worcester News, on motor vehicles, the statements
says: "This represents a Citreon Berlingo Van inspected and valued
by auctioneers, a Scania Market Truck, which has previously been
sold for GBP6,000.

The "estimated to realise" money raised from the sale of these
assets was put at GBP18,343, with a total of just GBP33,343
available for "preferential creditors".

A creditors list showed the butchers owed GBP1,628,190.17 to a
total of 60 firms nationally and internationally, Worcester News
notes.


IVC EVIDENSIA: S&P Affirms 'B' Issuer Credit Rating, Outlook Stable
-------------------------------------------------------------------
S&P Global Ratings affirmed its 'B' long-term issuer credit and
issue ratings on IVC Evidensia (IVC) and the existing senior
secured debt.

S&P said, "The stable outlook reflects our expectation that IVC's
adjusted leverage will remain slightly above 7x in the next 12
months and fall below 7x thereafter, with strong free operating
cash flow (FOCF), which we assume will be partly used for mergers
and acquisitions (M&A). We also anticipate limited cost and
disruption to the business from the VetStrategy integration."

"The merger with VetStrategy will result in increased scale of
operations and geographical diversification and solid
profitability. We expect IVC's revenue to increase to about GBP3.3
billion and adjusted EBITDA to about GBP606 million as of the
fiscal year ending Sept. 30, 2022 (fiscal 2022), mainly driven by
the merger with VetStrategy, which will materially increase the
company's scale. This is significantly above the reported and
adjusted metrics of fiscal 2019, with revenue at about GBP1.0
billion and adjusted EBITDA at GBP108 million. We believe the
larger scale will benefit the company, leaving it better prepared
to face possible earnings volatility from economic downturns and
providing valuable synergies, namely through procurement
optimization, enlarged negotiation power with suppliers and
clients, and efficient cost management. This will result in
improved profitability measures. We expect adjusted EBITDA margins
of about 20% over fiscals 2022-2023 compared with about 10%-15%
over fiscals 2018-2020. We also view positively IVC's expansion
into North America following the merger. IVC is the No. 1 player in
the veterinary services provider market in the U.K., Ireland,
Sweden, and the Netherlands, among other European countries, as
well as in Canada. Globally, the company is No. 2 behind Mars
Petcare.

"The track record of good integration of newly acquired businesses
gives us confidence regarding management's ability to successfully
manage the VetStrategy merger. IVC's acquisitive strategy has
proven highly successful and helped it expand and consolidate its
position in the European market in recent years. We believe
management has the required skills to continue successfully
pursuing its M&A strategy, underpinned by maintaining clinical
independence at a local level and empowering teams. IVC's cost
management post acquisitions has been highly efficient, with
management extracting valuable synergies to deliver revenue growth
and cost savings on procurement contracts and digital capabilities,
among others.

"The company plans to raise new debt to repay the existing drawings
on the GBP600 million RCF in fiscal 2022. To achieve this, IVC
plans to privately place a new term loan denominated in euros and
equivalent to about GBP400 million, as well as a new GBP123 million
second-lien term loan. Under our base-case scenario, we assume S&P
Global Ratings-adjusted leverage of slightly above 7x in the next
12 months and further deleveraging thereafter, due to
EBITDA-accretive acquisitions and organic growth. We expect FOCF of
GBP290 million-GBP310 million over fiscal 2022.

"The stable outlook reflects our expectation that adjusted leverage
will be slightly above 7x in fiscal 2022, moderating to below 7x
thereafter following the full integration of VetStrategy and the
contribution of EBITDA-accretive acquisitions. We expect the
company to successfully integrate VetStrategy and newly acquired
businesses with limited cost and disruption. The outlook also
reflects our assumption that IVC will generate strong FOCF, which
we assume management will partly use to continue pursuing its M&A
strategy.

"We could lower the rating if IVC's adjusted debt to EBITDA rises
above 7.0x on a prolonged basis, notwithstanding the contribution
to EBITDA from acquired businesses, and annual FOCF is materially
below our base case. This could be caused by difficulties in
integrating VetStrategy and acquired businesses, resulting in lower
returns on investment, operational disruption, and additional
costs, leading to weaker profitability.

"We could upgrade IVC if the company manages to absorb all
integration costs from the VetStrategy merger and other acquired
entities through synergies, while ensuring solid profitability and
FOCF that materially outperforms our base case. This would need to
be combined with significant debt reduction, so that adjusted
leverage moves to about or below 5x permanently and the private
equity owner commits to maintaining it at this level."

ESG credit indicators: E-2, S-2, G-3

Governance factors are a moderately negative consideration in
credit rating analysis of IVC, as is the case for most rated
entities owned by private-equity sponsors. S&P believes the
company's highly leveraged financial risk profile points to
corporate decision-making that prioritizes the interests of the
controlling owners. This also reflects the generally finite holding
periods and a focus on maximizing shareholder returns.


J C ROOK: Enters Administration, Staff Face Redundancy
------------------------------------------------------
Kathy Bailes at The Isle of Thanet News reports that J C Rook &
Sons has gone into administration resulting to the closure of
shops.

According to The Isle of Thanet News, shops in Broadstairs and
Ramsgate and the factory site in Ramsgate are among those where
staff are now facing redundancy.

J C Rook and Sons has been trading in Kent for well over half a
century, The Isle of Thanet News notes.

The Rook family has had a connection with the meat trade since the
18th century, originating in and around Norfolk.

The company operated 11 shops in East and Mid Kent with a
production and distribution facility in Ramsgate. The company
website says the firm employs more than 130 staff.

In 2019, a decision was taken to put four stores on the market, The
Isle of Thanet News relates.  At the end of last year, Andrew Rook
resigned as director, The Isle of Thanet News recounts.



LOANS AT HOME: Goes Into Administration Following FCA Review
------------------------------------------------------------
Tom Daldry at Credit Strategy reports that doorstep lender
(well-known term for home collected credit) Loans at Home applied
to the Finance Conduct Authority (FCA) to be placed into
administration on March 11, with Grant Thornton UK LLP appointed as
administrator.

The Leeds-based lender, which was established in 1955, offered a
range of services, including instalment loans, short-term loans and
bad credit loans.

But following a detailed independent review of the company by the
FCA, it was concluded that "there may have been harm to certain
home credit customers", Credit Strategy relates.

The firm was acquired by Non-Standard Finance (NSF) in 2015 in an
GBP82.5 million deal, Credit Strategy recounts.  At the time, NSF
chairman John van Kuffeler said the acquisition provided "a
well-established platform, a growing business, attractive operation
and return on assets", Credit Strategy notes.

But the directors of SD Taylor Limited (who traded as 'Loans at
Home'), "reluctantly concluded" that the business was "no longer
viable", Credit Strategy discloses.

According to Credit Strategy, the group's "extensive discussions"
with the FCA explored how home credit "should be defined and the
implications for future lending".


WELLESLEY: Nears End of Company Voluntary Arrangement
-----------------------------------------------------
Kathryn Gaw at Peer2Peer Finance News reports that property lender
Wellesley is nearing the end of its company voluntary arrangement
(CVA) process, while the final instalment of its loanbook sale
payments has been scheduled.

The company announced in September 2020 that it was restructuring
due to liquidity issues amid the pandemic and a challenging
regulatory environment, Peer2Peer Finance News recounts.

Earlier this year, Wellesley's investors complained that the
December 2021 dividend had not been paid as planned, Peer2Peer
Finance News relates.  However, Andrew Turnbull, director and
co-founder of Wellesley Finance, told Peer2Peer Finance News that
all dividend payments had been scheduled.

Wellesley launched as a peer-to-peer lender in 2013 and later moved
into mini-bonds, Peer2Peer Finance News notes.  However, in 2019
the City regulator introduced a ban on the mass marketing of
speculative mini-bonds, Peer2Peer Finance News states.  This led to
Wellesley's decision to restructure its business via a CVA,
Peer2Peer Finance News relays.

Turnbull confirmed that following the CVA, Wellesley will focus on
unregulated syndicated property lending with institutional funding,
according to Peer2Peer Finance News.



                           *********


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
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Information contained herein is obtained from sources believed to
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