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

                          E U R O P E

          Tuesday, July 12, 2022, Vol. 23, No. 132

                           Headlines



B E L A R U S

BELARUS: Fitch Downgrades LongTerm Foreign Currency IDR to 'C'


D E N M A R K

DKT HOLDING: Fitch Lowers LongTerm IDR to B-, Off Watch Negative


F R A N C E

ECOTONE HOLDCO III: S&P Lowers LT ICR to 'B-', Outlook Stable


G E R M A N Y

UNIPER SE: Germany Set to Decide on Bailout Terms


G R E E C E

ALPHA BANK: Moody's Gives (P)B2 Rating to Unsecured MTN Program


I R E L A N D

BLACKROCK EUROPEAN I: Moody's Affirms B1 Rating on Class F-R Notes
RYE HARBOUR: Moody's Affirms B2 Rating on Class F-R Notes


K A Z A K H S T A N

AMANAT INSURANCE: S&P Affirms & Then Withdraws 'B+' LT ICR


L U X E M B O U R G

ELEVING GROUP: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable


N E T H E R L A N D S

ATRIUM EUROPEAN: Fitch Lowers IDR to BB- & Then Withdraws Rating
VEON LTD: Fitch Affirms & Then Withdraws 'B+' LongTerm IDR


P O L A N D

INPOST SA: Fitch Affirms 'BB' Rating on Sr. Unsecured Debt


P O R T U G A L

HIPOTOTTA 4: Fitch Upgrades Rating on Class C Debt to 'BB+'


S P A I N

NH HOTEL: Moody's Affirms 'B3' CFR & Alters Outlook to Stable


S W E D E N

SAS AB: Moody's Downgrades CFR to Ca Following Chapter 11 Filing


T U R K E Y

SASA POLYESTER: Fitch Assigns First Time 'B' IDR, Outlook Stable


U N I T E D   K I N G D O M

AMIGO: Seeks to Recommence Lending Following Scheme Approval
ATLANTICA SUSTAINABLE: Fitch Assigns 'BB+' LT IDR, Outlook Stable
CASTELL 2022-1: S&P Assigns Prelim. B+(sf) Rating on Cl. F Notes
ELSTREE FUNDING 1: Moody's Ups Rating on Class F Notes to Ba2
HELIOS TOWERS: Fitch Assigns First Time 'B+' IDR, Outlook Stable

MARSTON'S: Plans to Sell Up to 50 Pubs to Reduce Debt
STEELCRAFT LTIMITED: Seeks Buyer to Rescue Business
UK ENERGY: Octopus Takes on Customers Following Collapse

                           - - - - -


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B E L A R U S
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BELARUS: Fitch Downgrades LongTerm Foreign Currency IDR to 'C'
--------------------------------------------------------------
Fitch Ratings has downgraded Belarus's Long-Term Foreign-Currency
(LTFC) Issuer Default Rating (IDR) to 'C' from 'CCC'.

Fitch typically does not assign Outlooks to sovereigns with a
rating of 'CCC+' or below.

EU CALENDAR DEVIATION DISCLOSURE

Under EU credit rating agency (CRA) regulation, the publication of
sovereign reviews is subject to restrictions and must take place
according to a published schedule, except where it is necessary for
CRAs to deviate from this in order to comply with their legal
obligations. Fitch interprets this provision as allowing us to
publish a rating review in situations where there is a material
change in the creditworthiness of the issuer that Fitch believes
makes it inappropriate for us to wait until the next scheduled
review date to update the rating or Outlook/Watch status. The next
scheduled review date for Fitch's sovereign rating on Belarus will
be 28 October 2022 but Fitch believes that developments in the
country warrant such a deviation from the calendar and Fitch's
rationale for this is set out in the High weight factors of the Key
Rating Drivers section below.

KEY RATING DRIVERS

High

USD Debt to Be Serviced in BYN: The downgrade follows the
announcement by the Ministry of Finance on 29 June of a joint
resolution by the Council of Ministers and the National Bank of
Belarus that payments due in US dollars on Eurobonds will instead
be transferred in Belarussian rubles into an account at ASB
Belarusbank that could be accessed by the paying agent.

The first payment in local currency for a US dollar interest
payment on the 2027 Eurobond was made under this process on 29
June, the day of the announcement. This contravenes bond
documentation that does not allow for settlement in alternative
currencies.

Grace Period: If payments on the 2027 Eurobond in fulfilment of the
original terms are not made by the end of the grace period, 13
July, Fitch would consider this a default and would downgrade the
LTFC IDR to 'RD' (Restricted Default) and the affected debt issue
to 'D'. The LTFC IDR would only be upgraded from 'RD' once Belarus
has normalised its relationship with its international creditors.

Potential Distressed Debt Exchange: In the resolution, the Ministry
of Finance asserts the right to fulfill obligations to Eurobond
holders with their consent on an alternative basis. This could
include replacing debt obligations on Eurobonds with debt
obligations on government securities placed on the domestic
financial market, which Fitch understands could be denominated in
US dollars but paid in local currency. Fitch would likely consider
this as a distressed debt exchange and therefore a default under
its criteria given that the implied redenomination of bond payments
would constitute a material deterioration in terms and would be
needed to avoid a traditional payment default.

Local Currency Rating Affirmed: The affirmation of the Long-Term
Local Currency IDR reflects Fitch's view that local-currency debt
is not subject to the resolution.

ESG - Governance: Belarus has an ESG Relevance Score (RS) of '5'
for both political stability and rights and for the rule of law,
institutional and regulatory quality and control of corruption, as
is the case for all sovereigns. These scores reflect the high
weight that the World Bank Governance Indicators (WBGI) have in
Fitch's proprietary Sovereign Rating Model. (SRM) Belarus has a low
WBGI ranking at the 24th percentile, reflecting the high
concentration of power in the hands of President Lukashenko who has
been in office since 1994, a low level of rights for participation
in the political process and moderate institutional capacity.

ESG - Creditor Rights: Belarus has an ESG Relevance Score (RS) of
'5' for creditor rights as willingness to service and repay debt is
highly relevant to the rating and is a key rating driver with a
high weight. The downgrade of Belarus's rating to 'C' reflects
Fitch's view that a default-like process has begun.

RATING SENSITIVITIES

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

-- Failure to make a payment on a Eurobond in line with original
    terms and within the applicable grace period;

-- Completion of a distressed debt exchange;

-- The Long-Term Local-Currency IDR would be downgraded to 'CC'
    if Fitch assesses that default of some kind appears probable
    or to 'C' if the government announces plans to restructure
    local-currency denominated debt.

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

-- Payment on the Eurobond in line with original terms and clear
    signs that the government is willing and able to making
    continued payments on the Eurobonds based on original terms.

SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO)
In accordance with its rating criteria, Fitch's sovereign rating
committee has not utilised the SRM and QO to explain the ratings in
this instance. Ratings of 'CCC+' and below are instead guided by
Fitch's rating definitions.

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

BEST/WORST CASE RATING SCENARIO

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

ESG CONSIDERATIONS

Belarus has an ESG Relevance Score of '5' for political stability
and rights as WBGI have the highest weight in Fitch's SRM and are
therefore highly relevant to the rating and a key rating driver
with a high weight. As Belarus has a percentile rank below 50 for
the respective governance indicator, this has a negative impact on
the credit profile.

Belarus has an ESG Relevance Score of '5' for rule of law,
institutional & regulatory quality and control of corruption as
WBGI have the highest weight in Fitch's SRM and are therefore
highly relevant to the rating and are a key rating driver with a
high weight. As Belarus has a percentile rank below 50 for the
respective governance indicator, this has a negative impact on the
credit profile.

Belarus has an ESG Relevance Score of '5' for creditor rights as
willingness to service and repay debt is highly relevant to the
rating and a key rating driver with a high weight. On 29 June 2022,
the government entered a grace period on a bond and announced that
foreign-currency denominated debt would be paid in local currency,
which has a negative impact on the ratings.

Belarus has an ESG Relevance Score of '4' for international
relations and trade, reflecting the detrimental impact of sanctions
and close economic linkages, dependence on bilateral financial
support and complex relationship with Russia, which are relevant to
the rating and a rating driver with a negative impact on the credit
profile.

Belarus has an ESG Relevance Score of '4' for human rights and
political freedoms as the voice and accountability pillar of the
WBGI is relevant to the rating and a rating driver. As Belarus has
a percentile rank below 50 for the respective governance indicator,
this has a negative impact on the credit profile.

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

   DEBT                 RATING                           PRIOR
   ----                 ------                           -----
Belarus

                      LT IDR            C     Downgrade   CCC

                      ST IDR            C     Affirmed    C

                      LC LT IDR         CCC   Affirmed    CCC

                      LC ST IDR         C     Affirmed    C

                      Country Ceiling   B-    Affirmed    B-

   senior unsecured   LT                C     Downgrade   CCC




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D E N M A R K
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DKT HOLDING: Fitch Lowers LongTerm IDR to B-, Off Watch Negative
----------------------------------------------------------------
Fitch Ratings has downgraded DKT Holdings ApS's (DKT) Long-Term
Issuer Default Rating (IDR) to 'B-' from 'B+' and removed it from
Rating Watch Negative (RWN). The Outlook is Negative. DKT is the
owner of Danish telecoms companies Nuuday A/S and TDC NET Holding
A/S.

Fitch has also affirmed DKT Finance's instrument ratings and
removed them from Rating Watch Evolving (RWE). Their Recovery
Ratings have been revised to 'RR4' from 'RR6'.

The rating action follows separation of and ringfencing around TDC
NET earlier this year. DKT creditors will have limited access to
TDC NET's assets and cashflows, and rely mainly on assets and cash
flow from Nuuday. The Negative Outlook on DKT reflects increased
refinancing risk, with DKT Finance's approaching maturities on its
outstanding EUR1,050 million and USD410 million notes in mid-2023.

KEY RATING DRIVERS

IDR Construction Change: Following the separation of and
ringfencing around operating subsidiary TDC NET Fitch has changed
Fitch's rating approach from a consolidated profile assessment to
rating DKT under the Nuuday perimeter. With the new ringfenced debt
at TDC NET in place, DKT creditors will now rely mainly on assets
and cash flow from Nuuday to service DKT Finance's debt. DKT may
also receive dividends payments from TDC NET within the limitations
of the ringfence. Fitch forecasts limited dividend payments from
TDC NET over the next three years. Under Fitch's previously
consolidated profile analysis, there were no constraints on cash
being upstreamed from its operating subsidiaries TDC NET and
Nuuday.

High Leverage: Under the existing capital structure, Fitch
forecasts DKT's funds from operations (FFO) leverage at 7.9x-8.0x
for 2022-2024. Fitch expects cash flow from operations (CFO) minus
capex/total debt to remain negative in 2022-2025, due to high cash
interest under the existing DKT Finance notes and significant
capex, which is a key rating constraint.

High Capex Drives Negative FCF: Fitch expects DKT's free cash flow
(FCF) to remain negative in 2022-2025, primarily due to investments
in streamlining its product portfolio and organisational structure
and in a new IT transformation programme. The DKK1.1 billion IT
programme (capex and operating expenditure) is spread across
2022-2025, and is part-funded by DKK600 million of net cash on
balance from the cancellation of Nuuday's share in the cash pool in
TDC Holding. In addition, Fitch expects excess proceeds around
DKK867 million in 2022 from the TDC Pension Fund and DKK150 million
per year in 2023-2025 . Fitch also forecasts total drawings of
around DKK1.075 billion under its revolving credit facility (RCF)
in 2023-2025 to fund cash outflows.

Capex to Fall from 2025: DKT maintains flexibility in capex, which
can help mitigate pressures on cash flow in case of operational
underperformance. Capex should start to decrease materially from
2025 as a result of improved efficiencies and completion of the IT
transformation programme.

Increased Refinancing Risk: DKT Finance's outstanding EUR1,050
million 7% 2023 and USD410 million 9.37% 2023 fixed-rate notes
mature in June 2023. The combination of high leverage, approaching
maturities and increased interest rates increase refinancing risk
and explains the Negative Outlook. Fitch expects DKT to refinance
DKT Finance notes after it has evaluated various financing
alternatives including standalone financing in Nuuday upstreaming
cash for partial debt repayment in DKT.

Leading Market Positions: Nuuday is the leader in the end-user
market for mobile, broadband and pay-TV services in Denmark with a
strong portfolio of brands in both B2C and B2B segments. It is
further supported by the leadership in infrastructure quality and
coverage of TDC NET, its main network partner. Fitch believes that
the structural separation of TDC NET will not affect Nuuday's
market position and expect it to continue benefitting from its
long-term partnership with TDC NET. At the same time, Nuuday's
partnerships with utility companies that offer wholesale fibre
should provide it with additional flexibility for its broadband
expansion.

Access to Best Infrastructure: Long-term contracts and established
relationships with TDC NET allow Nuuday to maintain its competitive
advantage in infrastructure despite structural separation from TDC
NET. Fitch expects TDC NET's quality leadership to remain a major
strength for Nuuday over its competitors. This is particularly true
in the mobile segment, where Nuuday benefits from being ahead of
competition in 5G. In broadband, competition is likely to be
stronger due to the ability of all service providers to have
non-discriminatory access to TDC NET's and utilities' fibre
networks.

Commercial Risks Increase: The separation of network infrastructure
effectively passes the risks of increasing competition to service
companies, such as Nuuday. Intense competition may put pressure on
prices and increase churn, which, combined with a high share of
fixed costs for wholesale network services, may squeeze margins.
Positively, the separation of networks can help operators increase
focus on customer satisfaction and operational efficiency. It also
removes the risks associated with investing in new technologies,
passing them to wholesale network providers.

Margin Improvement: Fitch expects Nuuday to remain cost-efficient
while ongoing cost-optimisation initiatives should continue to
support margin improvement. The TDC Group has a strong record of a
disciplined approach to cost, evident in a history of operating
margin growth, and Fitch expects Nuuday to inherit this approach.
Fitch-defined EBITDA margin is affected by DKK40 million-DKK80
million of annual operating expense from the IT transformation
programme, which should reduce significantly by 2025. Low margins
typical of the asset-lite business model leave little room for
manoeuvre and make continued strong operational delivery
essential.

DERIVATION SUMMARY

The operating profiles of asset-light operators are weaker than
integrated telecoms' due to the former's dependence on third-party
infrastructure, higher exposure to the risk of high competition and
operational underperformance, and lower margins. Nuuday's closest
peer is UK fixed-line operator TalkTalk Telecom Group Plc
(B+/Negative). Compared with TalkTalk, Nuuday benefits from notably
stronger market positions and a diversification across telecom
segments. DKT/Nuuday's FFO gross leverage of around 8x is higher
than TalkTalk's expected 5x in FY22, resulting in the rating
differential.

Nuuday's peer group includes small and medium-sized domestically
focused telecom operators Lorca Holdco Limited (B+/Stable), PLT VII
Finance S.a r.l. (Bite; B/Stable), Melita BidCo Limited (B+/Stable)
and eircom Holdings (Ireland) Limited (B+/Stable). Different
leverage thresholds for this peer group reflect differences in
domestic market competitive intensity, strength of market
positions, margins and cash flow generation. Fitch sees significant
leverage, lower margins and negative FCF as rating constraints for
DKT/Nuuday.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer

-- Revenue to decline 0.5% in 2022 and 1.1% in 2023 before
    growing less than 1% in 2024-2025;

-- Fitch-defined EBITDA margin to decline to 9.2% in 2022, on the

    back of the increased costs associated with the IT
    transformation programme, before increasing towards 10.6% in
    2025;

-- Capex at DKK1.6 billion in 2022 (including IT capex),
    gradually reducing to DKK930 million in 2025;

-- Working-capital outflows of 1.2%-0.3% of revenue in 2022-2025
    (excluding impact from IT programme);

-- Negative FCF in 2022-2025.

Key Recovery Rating Assumptions

Fitch has not applied the standard bespoke approach for determining
recovery ratings for issuers with IDRs of 'B+' and below, as
detailed in Fitch's Corporates Recovery Ratings and Instrument
Ratings Criteria Given the wide range of outcomes in debt recovery
depending on the potential opco and holdco default scenarios, Fitch
has applied an average recovery of 40% equivalent to 'RR4' to DKT's
debt and not applied any uplift despite it being nominally secured
by holdco shares.

RATING SENSITIVITIES

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

-- Total debt/EBITDA below 5.5x and FFO gross leverage below
    6.0x, both on a sustained basis;

-- Neutral to positive CFO minus capex/total debt, reflecting a
    stable competitive market position and a normalising capex
    profile.

Factors that could, individually or collectively, lead to a
revision of Outlook to Stable;

-- Successful refinancing of DKT Finance debt, with an improved
    FCF profile and reduced reliance on RCF to fund negative FCF.

Factors that could, individually or collectively, lead to a
downgrade:

-- Total debt/EBITDA above 7.5x and FFO gross leverage above
    8.0x, both on a sustained basis;

-- Increased competitive intensity in the Danish telecoms market,

    resulting in declining EBITDA and sustainably negative FCF;

-- Weak liquidity with off-market refinancing options.

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

Satisfactory Operating Liquidity: Fitch forecasts negative FCF in
Nuuday of around DKK3 billion in 2022-2025, owing to initial high
capex and the IT transformation programme. Fitch expects outflows
to be funded by DKK604 million of cash from cancellation of the TDC
holding cash pool and DKK867 million of cash inflows from the TDC
Pension Fund (both in 2022), and around DKK1.075 billion of
drawings under Nuuday's committed EUR200 million RCF (DKK1.48
billion) in 2023-2025.

Approaching Maturities: DKT's outstanding EUR1,050 million 7% 2023
and USD410 million 9.37% 2023 fixed-rate notes mature in June 2023.
This leads to weak liquidity metrics, including cash on balance and
FCF/debt maturities.

ISSUER PROFILE

In 2019, DKT separated TDC Group, the Danish incumbent telecoms
operator, into a network company (TDC NET) and a services company
(Nuuday) with the goal to attract other telecom operators onto its
infrastructure while maintaining its leadership in digital
services.

Criteria Variation

In Fitch's Corporates Recovery Ratings and Instrument Ratings
Criteria, the bespoke approach that applies to issuers with IDRs in
the 'B+' and below is not appropriate for DKT as a holding company
that owns two operating companies (opcos). The standard approach of
applying an enterprise value (EV) multiple to post-restructuring
EBITDA and distributing the value using a waterfall cannot be
applied as a default of the holdco can happen without the opcos
defaulting. Given the wide range of outcomes in debt recovery
depending on the potential opco and holdco default scenarios, Fitch
has applied an average recovery of 'RR4' to the holdco debt and not
applied any notch uplift despite it being secured by shares of the
holdco. Conversely, the debt is not notched down from the holdco
IDR as the latter already reflects structural subordination to the
opco debt, also in terms of access to the opco's cash flows.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch rates DKT under the Nuuday perimeter, including DKT Finance
debt, but excluding TDC Holding debt that Fitch rates as a
liability of TDC NET.

Due to the Danish statutory demerger law, TDC Holding's GBP425
million 2023 EMTN noteholders could, in a default, forward their
claims onto both TDC NET and Nuuday. While Nuuday is partly
responsible for this debt legally, Fitch expects TDC NET to take
full responsibility for the TDC Holding notes and upstream cash to
repay them in February 2023. This debt is included in Fitch's
calculations of TDC NET's credit metrics.

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.

   DEBT               RATING                RECOVERY   PRIOR
   ----               ------                --------   -----
DKT Holdings ApS    LT IDR   B-   Downgrade            B+

DKT Finance ApS

   senior secured   LT       B-   Affirmed      RR4    B-




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F R A N C E
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ECOTONE HOLDCO III: S&P Lowers LT ICR to 'B-', Outlook Stable
-------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
French food producer Ecotone HoldCo III SAS and issue rating on its
senior debt instruments to 'B-' from 'B', with the '3' recovery
rating unchanged.

The stable outlook reflects S&P's view that Ecotone will gradually
deleverage over the next 12 months and fund its day-to-day
operations, with no near-term debt refinancing risks

Weaker demand for Ecotone's products and high cost inflation are
negatively affecting operating performance and credit metrics in
2022.  S&P said, "For the year, we forecast a revenue decline of
3.0%-3.5%, driven by the drop in volumes not being timely
compensated by the price increases, S&P Global Ratings-adjusted
EBITDA margin near 9.5% (versus 12.0%-12.5% in previous base-case
scenario), thin-but-positive FOCF base and S&P Global
Ratings-adjusted debt leverage increasing to 9.5x-10.0x, a material
deviation from our anticipated debt leverage of 7.5x in our
previous base-case scenario. We believe the volume sales decline
reflects the lower demand for organic premium products in main
markets like France while producers like Ecotone are raising prices
to cover higher operating cost. Lower consumer traffic in
specialized organic food stores reflects decreased purchasing power
and consumer confidence stemming from the current economic
environment. Consumers also appear to be trading down from premium
organic products to find substitutes in private label or
non-organic products. We think this will continue to affect
Ecotone's volume sales as the company has limited exposure to the
private label space (less than 4% of sales in 2021). Profitability,
like many companies in consumer foods, is heavily affected by the
high inflation on raw materials, packaging, energy, and wages,
which is exacerbated by the lag in implementing price increases in
tough retail markets like France (accounting for about 60% of the
company's sales in 2021). FOCF is forecast to be
neutral-to-slightly positive, at EUR5 million-EUR10 million,
reflecting the lower EBITDA base, increased working capital
outflows due to higher raw materials costs and necessity to stock
supplies. Lower capex spending of EUR10 million-EUR15 million
supports FOCF, maintaining the necessary investment related to
capacity expansion and production line improvements as the company
is taking advantage of the current underuse of its factories to
implement some productivity gains. Credit metrics are therefore
materially weaker than expected this year. Adjusted debt had
increased in July 2021 after Ecotone paid a cash dividend to its
private-equity owner PAI Partners. Still, and although the
anticipated debt leverage by year-end 2022 is elevated for the
rating, we view positively the level of the funds from operations
(FFO) cash interest coverage of about 2.5x, reflecting that the
EUR85 million payment-in-kind (PIK) loan included in the debt
structure is not detrimental to cash flows."

S&Ps aid, "In our view, Ecotone's operating performance should
stabilize in 2023, supported by the effective pass-through of cost
increases, rebound in volumes, and reduced reorganization costs.For
2023, we expect rebound in revenue of 4.0%-4.5%, mainly supported
by higher sales prices, with the full-year effect of prices
increases. Along with the price effect, we forecast volumes sales
stabilization with notably lower inflation and the expansion of key
brands in new markets--Clipper and Abbot Kinney's brands in
Benelux--and innovations in the growing dairy alternatives space.
We anticipate S&P Global Ratings-adjusted EBITDA margin to improve
to 10.5%-11.0% in 2023, reflecting the full effect of price
increases, fixed-cost savings--as we believe the company will be
more selective in advertising and marketing spending--and the lower
exceptional costs that related to reorganization and M&A. FOCF
should rebound to EUR20 million-EUR25 million, driven by lower
working capital outflow and contained capex spending . The debt
deleveraging should benefit from the anticipated rebound in EBITDA
but be partly offset by the interest accruing nature of the EUR85
million PIK on our adjusted debt figure. Altogether, we see S&P
Global Ratings-adjusted debt leverage decreasing slightly to
8.5x-9.0x by year-end 2023, with FFO cash interest coverage
rebounding to close to 3.0x. We continue to value Ecotone's
established market positions in selected ambient food and beverage
categories such as dairy alternatives, veggie meals, and hot
drinks, all of which have positive growth prospects. We think the
group retains pricing power through its well-known local brands
with a clear positioning on healthy and sustainable products that
is valued increasingly by consumers in its Western European
markets.

"We see Ecotone focusing on organic growth for now, but
acquisitions could resume as there are no near-term refinancing
risks.For the next 12-18 months, we see management focusing on
restoring a strong operating performance within Ecotone by focusing
on product and pricing mix and cost efficiencies to offset volume
decline and profitability pressure. We think this will take
significant management attention and time notably to select
carefully investment priorities in product innovation and marketing
support to expand the brands in various regions. That said, we
think the group could resume acquisitions, with a likely focus on
small-to-midsize branded businesses from 2023 to continue to
increase the scale of operations. The group is still managing its
liquidity position well, with a fully undrawn revolving credit
facility (RCF) and no near-term debt refinancing (the RCF is due in
2025 and the term loan B in 2026).

"The stable outlook reflects our view that Ecotone's operating
performance should gradually improve from 2023 after weakening in
2022. Under our base-case scenario, we project S&P Global
Ratings-adjusted debt leverage will gradually decrease to 8.5x-9.0x
in 2023 from 9.5x-10.0x in 2022, FFO cash interest coverage will
stay at 2.5x-3.0x, and FOCF will be neutral-to-slightly positive.
This assumes that Ecotone will gradually restore profitability by
actively passing on price increases to mostly offset higher raw
materials costs, inflation, and other operational costs, albeit
with a time lag.

"We could lower the ratings over the next 12 months if credit
metrics deviate materially such that S&P Global Ratings-adjusted
debt to EBITDA is likely to stay at or above 10.0x in 2023, if FFO
cash interest coverage falls below 2.0x. We would also view
negatively a large negative FOCF, which would pressure the group's
liquidity position. We believe the above could occur in case
Ecotone cannot restore its profitability via timely and meaningful
price increases due to more pronounced pressure on operating costs
than anticipated, or is unable to manage working capital swings.

"We could raise the ratings over the next 12 months if adjusted
debt leverage decreases clearly to or below 7.0x sustainably and
the company generates again a solid FOCF cushion. This could happen
if Ecotone significantly exceeds our base-case projections in terms
of profitability by fully and quickly offsetting cost inflation
pressures with price increases and cost savings while maintaining
solid volume growth dynamics in key markets, thanks to a successful
product and price mix strategy."

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

S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis of Ecotone, as is the
case for most rated entities owned by private-equity sponsors. We
believe 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.
Environmental and social factors are an overall neutral
consideration in our credit rating analysis of Ecotone. We see
social and environmental matters, as part of the group's business
strategy and model as illustrated by the B-Corp certification
received in 2019 and adoption of "Entreprise à Mission" status."




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

UNIPER SE: Germany Set to Decide on Bailout Terms
-------------------------------------------------
Josefine Fokuhl at Bloomberg News reports that Germany is ready to
make a decision on a bailout for Uniper SE "soon" but ongoing talks
with the company are "difficult."

Uniper -- which is heavily dependent on Russian gas -- asked the
German government for a bailout on July 8, the first major
corporate casualty of Moscow's squeeze on European energy flows,
Bloomberg relates.  According to Bloomberg, a spokeswoman for the
government said the government is prepared to help the company no
matter what.

Germany and Uniper have been locked in talks for weeks over a
potential rescue package, Bloomberg discloses.  The company may
need about EUR9 billion (US$9.1 billion), more than twice its
market value, as it bleeds cash trying to replace Russian gas
supply with higher-priced alternatives, Bloomberg notes.

Last week, the company appeared to be cranking up the pressure on
the government warning that it would soon have no choice but to
pull gas from storage, raise prices to customers, and even reduce
supply, Bloomberg recounts.  Economy Minister Robert Habeck has
warned of the possibility of Lehman Brothers-like contagion as the
spiraling cost of gas tips suppliers over the brink, taking the
wider economy with it, Bloomberg states.

Germany, Bloomberg says, is in ongoing talks about the Uniper
bailout with Finland -- which holds 50% of Fortum Oyj, the parent
and majority shareholder in Uniper.  Germany wants to get support
from Finland for a potential bailout to ease the financial burden
on tax payers.

According to Bloomberg, Finnish officials said on July 10 the
country isn't warming to the idea that Fortum should give more
financial support to its German subsidiary.  An agreement also
needs to be found within the German government after the Green
lawmaker Anton Hofreiter raised objections to a costly bailout as
well as a state stake in Uniper, Bloomberg notes.  The company has
operations in Sweden and in Russia which makes German government
ownership politically problematic, Bloomberg states.




===========
G R E E C E
===========

ALPHA BANK: Moody's Gives (P)B2 Rating to Unsecured MTN Program
---------------------------------------------------------------
Moody's Investors Service assigned local and foreign currency
long-term senior unsecured (also commonly referred to as "senior
preferred") rating of (P)B2, junior senior unsecured (also commonly
referred to as "senior non-preferred") rating of (P)B3, and
subordinated (Tier 2) rating of  (P)B3 to Alpha Bank S.A.'s (Alpha
Bank) EUR15 billion Euro Medium Term Note (EMTN) programme.

Under this EMTN programme, the bank can issue debt designated as
"Senior Preferred Notes", "Senior Non-Preferred Notes" and "Tier 2
notes" through both its operating company (Alpha Bank S.A.) and its
holding company (Alpha Services and Holdings S.A.). The junior
senior unsecured debt would rank junior to other senior unsecured
obligations and senior to subordinated debt in case of resolution
and insolvency of the bank. All other outstanding ratings and
assessments of the bank remain unchanged, including the positive
outlook for its B1 long-term deposit rating.

RATINGS RATIONALE

ASSIGNMENT OF SENIOR UNSECURED PROGRAMME RATINGS

The (P)B2 rating assigned to Alpha Bank's long-term senior
unsecured EMTN programme reflects (1) the bank's b2 Adjusted
Baseline Credit Assessment (BCA); and (2) no rating uplift from
Moody's Advanced Loss Given Failure (LGF) analysis that indicates
the relatively modest loss absorption buffer provided in the bank's
liability structure with EUR900 million senior unsecured
obligations outstanding and Alpha Services and Holdings S.A.'s EUR1
billion of subordinated Tier 2 bonds available as more junior
instruments.

Moody's notes that these senior unsecured and Tier 2 bonds, as well
as those to be issued under its EMTN programme, are recognised as
instruments for the purpose of minimum requirement for own funds
and eligible liabilities (MREL). The bank's MREL was set at 23.4%
to be met by the end of 2025, while its reported MREL was at 17.4%
at the end of the first quarter 2022. The rating agency assumes a
low probability of support from the Government of Greece (Ba3,
stable) in favour of the senior unsecured debt holders of the bank,
which does not translate into any rating uplift.

The (P)B3 assigned to Alpha Services and Holdings S.A.'s long-term
senior unsecured EMTN programme, is positioned one notch lower than
the corresponding rating assigned to Alpha Bank S.A., because
senior unsecured holding company obligations are likely to be
junior to senior unsecured debt issued by the operating company.
This reflects Moody's view that regulators will generally expect
holding company senior debt to fund inter-company debt that is
subordinated to the operating company's senior unsecured debt.

ASSIGNMENT OF JUNIOR SENIOR UNSECURED PROGRAMME RATINGS

The (P)B3 rating assigned to the junior senior unsecured EMTN
programme reflects (1) Alpha Bank's Adjusted BCA of b2; and (2)
Moody's Advanced LGF analysis, which indicates likely higher loss
severity for these instruments in the event of the bank's failure,
leading to a positioning of one notch below the bank's Adjusted
BCA. The rating of Alpha Bank's junior senior unsecured programme
does not benefit from any government support uplift in line with
Moody's assumption of a low probability of support for the bank.

Moody's applies its Advanced LGF analysis in order to determine the
loss-given-failure of the junior senior unsecured (or senior
non-preferred) debt, which is also eligible as MREL instrument and
is senior to its Tier 2 notes. In assigning the rating, Moody's has
taken into consideration the potential funding plans of the bank
over the next 2-3 years. However, the additional volume of such
instruments does not really change the potential loss severity for
its senior preferred and senior non-preferred instruments, other
than benefiting its customer deposits.

The rating agency has also assigned (P)B3 to the junior senior
unsecured EMTN programme of Alpha Services and Holdings S.A.
Moody's believes that debt issuance of this seniority is highly
unlikely to take place in the near future, especially at the
holding company level, given that Greek banks do not currently have
any subordination requirement. The positioning of the rating is at
the same level as the corresponding rating for the operating
company, reflecting the rating agency's view that in a potential
resolution scenario the relative authorities are likely to treat
similarly any junior obligations within the group. Similar to the
senior unsecured programme rating, no rating uplift is incorporated
in the bank's junior senior unsecured programme ratings stemming
from any government support.

ASSIGNMENT OF SUBORDINATED PROGRAMME RATINGS

The (P)B3 rating assigned to the subordinated (Tier 2) EMTN
programme for both Alpha Bank S.A. and Alpha Services and Holdings
S.A. is driven by (1) Alpha Bank's Adjusted BCA of b2; and (2)
Moody's Advanced LGF forward-looking analysis, which indicates
likely higher loss severity for these instruments in the event of
the bank's failure, leading to a positioning of one notch below the
bank's Adjusted BCA.

The rating is positioned at the same level at both the operating
bank and the holding company, to reflect the rating agency's view
that in a potential resolution scenario the relative authority is
likely to treat similarly any subordinated obligations within the
group. The rating agency does not expect any Tier 2 issuances by
the bank in view of its existing EUR1 billion of Tier 2 debt of
Alpha Services and Holdings S.A., leaving no room for additional
such subordinated instruments. Similar to the senior unsecured
programme rating, no rating uplift is incorporated in the bank's
subordinated programme ratings stemming from any government
support.

POSITIVE DEPOSIT RATING OUTLOOK

Alpha Bank's positive outlook on its B1 long-term deposit ratings,
captures the current upward pressure on its BCA and signals a
possible upgrade over the next 12-18 months. The main drivers
behind this BCA upward pressure are:

1) The continued improvement in the bank's asset quality through
the securitization of its nonperforming exposures (NPEs) via the
government's asset protection scheme (HAPS). As a result, the
bank's NPE to gross loans ratio reduced significantly to 12.2% in
March 2022, from 42.8% in March 2021, with a provisioning coverage
of 48%. Through various actions and robust growth in its performing
loans, Alpha Bank is on target to achieve a single digit NPE ratio
(around 7%) by the end of this year, aiming to reduce it further to
around 2% by the end 2024.

2) Moody's expectation of potential enhancement in Alpha Bank's
core profitability and bottom line going forward, mainly through
revenue growth, incremental cost savings and significantly lower
loan impairments. The first signs of these trends are already
visible in the bank's Q1 2022 results, reporting 24% year-on-year
increase in normalised profit after tax of EUR134 million, or
EUR125 million in net profit after tax.

3) The anticipated gradual increase in the bank's regulatory
capital metrics and tangible common equity (TCE) as estimated by
the rating agency. The bank's reported fully-loaded common equity
Tier 1 (CET1) ratio was at 10.9% in March 2022, although the
pro-forma ratio taking into consideration various risk-weighted
relief actions to be completed this year is higher at 12.2%. The
pro-forma total capital adequacy ratio (CAR) was at 15.1% in March
2022, comfortably above the Supervisory Review and Evaluation
Process (SREP) normalized requirement of 14.3%. Concurrently, the
bank aims for a fully-loaded CET1 of around 15% by the end of 2024,
mainly through organic capital generation, which should also
improve its TCE that Moody's adjusts to account for the lower
quality of capital in the form of deferred tax credits (DTCs).

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

Over the next 12-18 months, upward pressure will likely arise on
the deposit and senior unsecured debt ratings as the bank continues
to execute its transformation plan and meet its targets, especially
on the asset quality and profitability front. A further improvement
in Greek banks' operating conditions could lead to a stronger Macro
Profile for Greece, which may result in upward pressure on the
bank's BCA.

A rating downgrade is unlikely at this juncture because of the
bank's positive rating outlook. However, Alpha Bank's long-term
ratings could be downgraded in the event that its transformation
and NPE reduction plan stalls, without any significant improvements
in its recurring profitability. Any potential material
deterioration in the operating environment, mainly due to the
current inflationary pressures, will also strain the bank's
ratings.

LIST OF AFFECTED RATINGS

Issuer: Alpha Bank S.A.

Assignments:

Senior Unsecured Medium-Term Note Program (Local and Foreign
Currency), assigned (P)B2

Junior Senior Unsecured Medium-Term Note Program (Local and
Foreign Currency), assigned (P)B3

Subordinate Medium-Term Note Program (Local and Foreign Currency),
assigned (P)B3

Issuer: Alpha Services and Holdings S.A.

Assignments:

Senior Unsecured Medium-Term Note Program (Local and Foreign
Currency), assigned (P)B3

Junior Senior Unsecured Medium-Term Note Program (Local and
Foreign Currency), assigned (P)B3

Subordinate Medium-Term Note Program (Local and Foreign Currency),
assigned (P)B3

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
Methodology published in July 2021.




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

BLACKROCK EUROPEAN I: Moody's Affirms B1 Rating on Class F-R Notes
------------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the following
notes issued by BlackRock European CLO I Designated Activity
Company:

EUR39,680,000 Class B-1-R Senior Secured Floating Rate Notes due
2031, Upgraded to Aa1 (sf); previously on Mar 15, 2018 Definitive
Rating Assigned Aa2 (sf)

EUR26,320,000 Class B-2-R Senior Secured Fixed Rate Notes due
2031, Upgraded to Aa1 (sf); previously on Mar 15, 2018 Definitive
Rating Assigned Aa2 (sf)

EUR32,000,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2031, Upgraded to A1 (sf); previously on Mar 15, 2018
Definitive Rating Assigned A2 (sf)

Moody's has also affirmed the ratings on the following notes:

EUR266,000,000 Class A-R Senior Secured Floating Rate Notes due
2031, Affirmed Aaa (sf); previously on Mar 15, 2018 Definitive
Rating Assigned Aaa (sf)

EUR24,000,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed Baa2 (sf); previously on Mar 15, 2018
Definitive Rating Assigned Baa2 (sf)

EUR25,500,000 Class E-R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed Ba2 (sf); previously on Mar 15, 2018
Definitive Rating Assigned Ba2 (sf)

EUR10,500,000 Class F-R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed B1 (sf); previously on Mar 15, 2018
Definitive Rating Assigned B1 (sf)

BlackRock European CLO I Designated Activity Company, issued in
February 2016 and refinanced in March 2018, is a collateralised
loan obligation (CLO) backed by a portfolio of mostly high-yield
senior secured European loans. The portfolio is managed by
BlackRock Investment Management (UK) Limited. The transaction's
reinvestment period ended in June 2022.

RATINGS RATIONALE

The rating upgrades on the Class B-1-R, B-2-R and C-R Notes are
primarily a result of the transaction having reached the end of the
reinvestment period in June 2022.

In light of reinvestment restrictions during the amortisation
period, and therefore the limited ability to effect significant
changes to the current collateral pool, Moody's analysed the deal
assuming a higher likelihood that the collateral pool
characteristics would maintain an adequate buffer relative to
certain covenant requirements.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.

In its base case, Moody's used the following assumptions:

Performing par and principal proceeds balance: EUR460.8m

Defaulted Securities: EUR368.3k

Diversity Score: 65

Weighted Average Rating Factor (WARF): 2863

Weighted Average Life (WAL): 4.72 years

Weighted Average Spread (WAS) (before accounting for Euribor
floors): 3.70%

Weighted Average Coupon (WAC): 3.20%

Weighted Average Recovery Rate (WARR): 43.83%

Par haircut in OC tests and interest diversion test: nil

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on future
defaults is based primarily on the seniority of the assets in the
collateral pool. In each case, historical and market performance
and a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporates these default and recovery
characteristics of the collateral pool into its cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analysing.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
December 2021.

Counterparty Exposure:

The rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank, using the
methodology "Moody's Approach to Assessing Counterparty Risks in
Structured Finance" published in June 2022. Moody's concluded the
ratings of the notes are not constrained by these risks.

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

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

Additional uncertainty about performance is due to the following:

Portfolio amortisation: The main source of uncertainty in this
transaction is the pace of amortisation of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortisation could accelerate as a consequence of high loan
prepayment levels or collateral sales by the collateral manager or
be delayed by an increase in loan amend-and-extend restructurings.
Fast amortisation would usually benefit the ratings of the notes
beginning with the notes having the highest prepayment priority.

Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's
over-collateralisation levels.  Further, the timing of recoveries
and the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty.  Moody's
analysed defaulted recoveries assuming the lower of the market
price or the recovery rate to account for potential volatility in
market prices. Recoveries higher than Moody's expectations would
have a positive impact on the notes' ratings.


RYE HARBOUR: Moody's Affirms B2 Rating on Class F-R Notes
---------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the following
notes issued by Rye Harbour CLO, Designated Activity Company:

EUR15,000,000 Class B-1R Senior Secured Floating Rate Notes due
2031, Upgraded to Aaa (sf); previously on Jan 17, 2022 Upgraded to
Aa1 (sf)

EUR20,000,000 Class B-2R Senior Secured Fixed/Floating Rate Notes
due 2031, Upgraded to Aaa (sf); previously on Jan 17, 2022 Upgraded
to Aa1 (sf)

Moody's has also affirmed the ratings on the following notes:

EUR186,750,000 Class A-1R Senior Secured Floating Rate Notes due
2031, Affirmed Aaa (sf); previously on Jan 17, 2022 Affirmed Aaa
(sf)

EUR25,000,000 Class A-2R Senior Secured Fixed Rate Notes due 2031,
Affirmed Aaa (sf); previously on Jan 17, 2022 Affirmed Aaa (sf)

EUR10,000,000 Class C-1R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed A1 (sf); previously on Jan 17, 2022
Upgraded to A1 (sf)

EUR12,750,000 Class C-2R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed A1 (sf); previously on Jan 17, 2022
Upgraded to A1 (sf)

EUR19,225,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed Baa1 (sf); previously on Jan 17, 2022
Upgraded to Baa1 (sf)

EUR23,400,000 Class E-R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed Ba2 (sf); previously on Jan 17, 2022
Affirmed Ba2 (sf)

EUR11,000,000 Class F-R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed B2 (sf); previously on Jan 17, 2022
Affirmed B2 (sf)

Rye Harbour CLO, Designated Activity Company, issued in January
2015 and reset in April 2017, is a collateralised loan obligation
(CLO) backed by a portfolio of mostly high-yield senior secured
European loans. The portfolio is managed by Bain Capital Credit,
Ltd. The transaction's reinvestment period ended in April 2022.

RATINGS RATIONALE

The rating upgrades on the Class B-1R and Class B-2R Notes are
primarily a result of the benefit of the transaction having reached
the end of the reinvestment period in April 2022.

In light of reinvestment restrictions during the amortisation
period, and therefore the limited ability to effect significant
changes to the current collateral pool, Moody's analysed the deal
assuming a higher likelihood that the collateral pool
characteristics would maintain an adequate buffer relative to
certain covenant requirements. In particular, Moody's assumed that
the deal will benefit from a shorter amortisation profile than it
had assumed at the last rating action in January 2022.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.

In its base case, Moody's used the following assumptions:

Performing par and principal proceeds balance: EUR344.3m

Defaulted Securities: EUR0.97m

Diversity Score: 55

Weighted Average Rating Factor (WARF): 2852

Weighted Average Life (WAL): 4.03 years

Weighted Average Spread (WAS) (before accounting for Euribor
floors): 3.65%

Weighted Average Coupon (WAC): 4.55%

Weighted Average Recovery Rate (WARR): 44.29%

Par haircut in OC tests and interest diversion test: none

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on future
defaults is based primarily on the seniority of the assets in the
collateral pool. In each case, historical and market performance
and a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporates these default and recovery
characteristics of the collateral pool into its cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analysing.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
December 2021.

Counterparty Exposure:

The rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank, using the
methodology "Moody's Approach to Assessing Counterparty Risks in
Structured Finance" published in June 2022. Moody's concluded the
ratings of the notes are not constrained by these risks.

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

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

Additional uncertainty about performance is due to the following:

Portfolio amortisation: The main source of uncertainty in this
transaction is the pace of amortisation of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortisation could accelerate as a consequence of high loan
prepayment levels or collateral sales the collateral manager or be
delayed by an increase in loan amend-and-extend restructurings.
Fast amortisation would usually benefit the ratings of the notes
beginning with the notes having the highest prepayment priority.

Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's
over-collateralisation levels. Further, the timing of recoveries
and the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's analysed
defaulted recoveries assuming the lower of the market price or the
recovery rate to account for potential volatility in market prices.
Recoveries higher than Moody's expectations would have a positive
impact on the notes' ratings.



===================
K A Z A K H S T A N
===================

AMANAT INSURANCE: S&P Affirms & Then Withdraws 'B+' LT ICR
-----------------------------------------------------------
S&P Global Ratings affirmed its 'B+' long-term insurer financial
strength and issuer credit ratings on Kazakhstan-based Amanat
Insurance JSC and then withdrew the ratings at the company's
request. The outlook was stable at the time of withdrawal.

At the same time, S&P affirmed then withdrew its 'kzBBB' national
scale rating on the insurer.




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

ELEVING GROUP: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable
--------------------------------------------------------------
Fitch Ratings has affirmed Eleving Group's Long-Term Issuer Default
Rating (IDR) and senior secured debt rating at 'B-'. The Outlook on
the Long-Term IDR is Stable.

Eleving is the privately-owned Luxembourg-domiciled holding company
of a Latvian-headquartered group primarily providing car finance in
a number of eastern European, central Asian and African markets
(mainly under its "Mogo" brand). At end-1Q22, it had total assets
of EUR342 million.

KEY RATING DRIVERS

IDRs

Eleving's IDRs are driven by its nominal franchise in a competitive
niche, exposure to potentially volatile markets, large risk
appetite, a largely secured funding profile and historically high
leverage. The ratings also consider Eleving's strong profitability,
experienced management team and improving leverage ratio.

The Stable Outlook reflects that, in Fitch's view, Eleving's narrow
franchise, high risk appetite, frequent changes in strategy and
downside risk from the Russia-Ukraine war for some of its key
markets (including second-order impact) offset recent improvements
in some of Eleving's financial metrics, notably leverage and
funding.

Eleving's leverage ratio (defined as gross debt/tangible equity
inclusive of subordinated debt to which Fitch has assigned equity
credit) stood at 6.8x at end-1Q22 versus around 13x at end-2020.
The company also placed two bonds in 4Q21 (EUR150 million senior
secured bond in October 2021 and EUR25 million subordinated bond in
December 2021) and made some progress in addressing its weak asset
quality.

Eleving's high risk appetite reflects, in Fitch's view, its
targeted higher-risk client base, historically rapid growth and a
considerable open foreign-currency (FX) position. Eleving targets
below-prime clients in emerging markets who cannot afford newer
cars, but which reflect the overall median earner in Eleving's
countries of operations. Eleving's asset quality is reflective of
its target market (impaired loans ratio of 19% at end-1Q22) and is
normally mitigated by strong loan yields (interest income/average
gross portfolio was 65% in 2021). Asset quality has been improving
since impaired loans peaked at 24% at end-5M20 and Fitch expects
that the generation of new impaired loans will remain at about 10%
in 2022 of its total loans outside Ukraine (2% of net loans at
end-1Q22, about EUR3.5 million at end-May 2022). The portfolio in
Belarus is being run down, but remains performing in line with its
loans in other countries.

Eleving has reduced its FX risk appetite following sizeable credit
and FX losses in 2020. However, its open FX position remains large
(3.5x tangible equity plus shareholders' loans at end-2021) and
Eleving's entry in unsecured high-cost consumer loans (about 20% of
the net portfolio) indicates a still higher-than-average risk
appetite.

Eleving has historically maintained high leverage ratios and,
although this has recently been managed down, Fitch still views the
current leverage level as high, especially in relation to Eleving's
exposure to credit and FX risks. The quality of capital continues
to be a weakness, but has improved owing to gradual profit
retention and the issuance of long-dated subordinated bonds.
Receivables from related parties have also significantly decreased
(EUR3.6 million or around 10% of capital at end-1Q22). Subordinated
bonds qualify for equity credit under Fitch's criteria (see
"Eleving's Ratings Unaffected by Junior Debt Refinancing",
published on 29 December 2021 and available at
www.fitchratings.com).

Funding flexibility improved owing to the two bond issuances in
4Q21, which have materially lengthened the maturity profile of
Eleving's liabilities. Eleving's EUR150 million bond has a bullet
repayment in October 2026, resulting in refinancing risk from 2025.
Eleving's funding profile is further supported by its proven access
to Mintos, a peer-to-peer funding platform (EUR68 million at
end-1Q22), which is also a modest source of contingent liquidity if
needed.

Eleving's corporate-governance framework is characterised by
limited independent board oversight, a multi-layered holding
structure, concentrated ownership and material, albeit declining,
related-party transactions. This constrains Eleving's ratings and
is reflected in Fitch's ESG scores of '4' for governance structure
and group structure. Eleving's expansion into unsecured loans also
exposes the company to regulatory risks concerning lending
practices and Fitch has assigned Eleving an ESG score of '4' for
customer welfare in line with other high-cost lenders'.

SENIOR SECURED DEBT

Eleving's senior secured debt rating is equalised with its
Long-Term IDR to reflect the effective structural subordination to
outstanding debt at operating entities, which despite their secured
nature leads to only average recoveries, as reflected in a 'RR4'
Recovery Rating.

RATING SENSITIVITIES

IDRs

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

-- Rating upside is limited in the short term. In the medium
    term, a positive rating action could be supported by increased

    scale, improved corporate governance, a leaner corporate
    structure and demonstrated stability in Eleving's business
    model and strategy, combined with stable profitability and
    improved asset quality;

-- Maintaining access to diversified funding sources and
    reduction of leverage to 5x, together with a lower open FX
    position and improved quality of capital could be rating-
    positive.

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

-- Marked deterioration in asset quality or further FX losses,
    ultimately threatening the company's solvency;

-- Marked increases in Eleving's leverage, reducing its buffers
    to absorb credit and FX losses;

-- Unexpected difficulties in accessing funding sources or
    increasing cost of funding from peer-to-peer platforms.

SENIOR SECURED DEBT

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

-- An upgrade of Eleving's Long-Term IDR would likely be mirrored

    on the company's senior secured bond rating;

-- Higher recovery assumptions due to, for instance, operating
    entity debt falling in importance compared with rated debt
    instruments, could lead to above-average recoveries and Fitch
    to notch up the rated debt from Eleving's Long-Term IDR.

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

-- A downgrade of Eleving's Long-Term IDR would likely be
    mirrored on the company's senior secured bond rating;

-- Lower recovery assumptions due to, for instance, operating
    entity debt increasing in importance relative to rated debt or

    worse-than-expected asset-quality trends (which could lead to
    larger asset haircuts), could lead to below-average recoveries

    and Fitch to notch down the rated debt from Eleving's Long-
    Term IDR.

BEST/WORST CASE RATING SCENARIO

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

ESG CONSIDERATIONS

Eleving has an ESG Relevance Score of '4' for both governance
structure and group structure. The former reflects historically
considerable related-party transactions and the material role of
the founders in Eleving's strategy. The governance structure score
is in line with that of other rated peers where the founder(s)
plays a material role in strategy or operations. Group structure
reflects Fitch's view that Eleving's organisational structure is
complex relative to the company's business model. This has a
moderately negative impact on the credit profile and is relevant to
the rating, in conjunction with other factors.

Eleving's '4' ESG Relevance Score for customer welfare reflects
Fitch's view that Eleving's entry into the high-cost credit sector
means that its business model is sensitive to regulatory changes
(such as lending caps) and conduct-related risks. This has a
moderately negative impact on the credit profile and is relevant to
the rating, in conjunction with other factors.

Eleving has an ESG Relevance Score of '3' for GHG emissions & air
quality, to reflect possible, but minimal regulatory risk for the
value of Eleving's collateral. This is higher than the standard
score of '2' for finance and leasing companies, but in line with
that of other rated peers with exposure to the automotive sector.

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

   DEBT                RATING                RECOVERY   PRIOR
   ----                ------                --------   -----
Eleving Group        LT IDR   B-   Affirmed             B-

                     ST IDR   B    Affirmed             B

   senior secured    LT       B-   Affirmed     RR4     B-




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

ATRIUM EUROPEAN: Fitch Lowers IDR to BB- & Then Withdraws Rating
----------------------------------------------------------------
Fitch Ratings has downgraded Atrium European Real Estate Limited's
Long-Term Issuer Default Rating (IDR) to 'BB-' from 'BB', and
maintained it on Rating Watch Negative (RWN).  All ratings have
subsequently been withdrawn.

The downgrades reflect higher than previously anticipated leverage
resulting from a EUR305 million shareholder loan from Gazit Globe
Ltd, which Fitch treats as Atrium's debt. The loan does not qualify
for equity credit under Fitch's criteria. It is subordinated to
Atrium's senior debt but matures at end-December 2026, ahead of the
group's 2027 EUR300 million bond.

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. The RWN also reflects the
risk of restrictions on payments from Atrium's Russian operations
to the rest of the group, although Fitch believes that payment in
roubles is still possible. Russia is a non-core operation for
Atrium, which has been looking to sell these assets for some time.

Atrium's ratings have been withdrawn for commercial reason. Fitch
will no longer provide ratings or analytical coverage of Atrium.

KEY RATING DRIVERS

Increased Leverage: Fitch forecasts that Atrium's net debt/EBITDA
will increase to 12.2x in 2022, including the EUR305 million loan
from Gazit. This compares with Fitch's previous forecast of below
10x. Lower rental income from Russia, due to lower rent receipts,
and/or further payment restrictions constraining Atrium's ability
to extract cash from Russian operations, would increase cashflow
leverage further.

Deteriorating Retail Environment in Russia: Both the deteriorating
retail environment and international sanctions in Russia have
prompted large international tenants (including H&M, Inditex) to
close or suspend operations in Russia. Some of these tenants have
sold their Russian operations to local retailers who resumed
trading while other tenants continue to pay rents after agreeing
discounts with Atrium. Furthermore, tenants' supplies of goods from
international suppliers may be disrupted, potentially affecting
sales of tenants that continue to operate.

Headroom in Covenants: Fitch expects Atrium to maintain headroom in
its bond covenants even if Fitch fully 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
group's outstanding hybrid bond and its interest payment
obligations.

Stronger Linkage with Gazit: After becoming the sole shareholder in
February 2022, Gazit's control of Atrium is no longer constrained
by the latter's minority shareholders or its separate listing. The
oversight of independent directors is no longer strong. This allows
Gazit the ability 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' assessment (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 which 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-/Negative) with only 10% (by market value) of the portfolio
located in non-core Russia. 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 than 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.

Fitch forecasts Atrium's end-2022 net debt/EBITDA at above 12x.
This is higher than NEPI's leverage of around 6x, while GTC and
Globalworth have leverage of about or below 9x, respectively.

Atrium and NEPI have comparable net initial yields (NIY - defined
as annualised net rents/investment property asset values) of
6.1%-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

-- Decrease in net rental income from Russian assets and their
    value, reflecting tenant concessions, a worsening economic
    environment and potential restrictions on rouble payments. In
    Fitch's stress case, Fitch has assumed EUR28 million of
    Russian net rental income ceases, and for the loan-to-value
    (LTV) sensitivity Fitchs has assumed EUR250 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, stable occupancy at around 93%,
    and most 2021 rent concessions being added back;

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

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

RATING SENSITIVITIES

Rating sensitivities are no longer applicable given the rating
withdrawal.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: At end-1Q22, Atrium held EUR232million of cash,
which was adequate for EUR155 million of bonds maturing in October
2022. The next debt maturity EUR500 million is not until 2025.
Atrium's EUR300 million undrawn revolving credit facility matures
in 2023.

Except for secured mortgage loans financing two of Atrium's top 10
assets, the group's balance sheet is unsecured. This results in an
end-2021 unencumbered investment property/unsecured debt coverage
of 1.9x pro-forma for the group's special dividend. Excluding
Atrium's Russian assets, the ratio 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 at end- 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.

   DEBT                  RATING                   PRIOR
   ----                  ------                   -----
Atrium Finance Issuer B.V.

   senior unsecured    LT       WD    Withdrawn    BB-

   senior unsecured    LT       BB-   Downgrade    BB

Atrium European Real Estate Limited

                       LT IDR   BB-   Downgrade    BB

                       LT IDR   WD    Withdrawn    BB-

                       ST IDR   B     Affirmed     B

                       ST IDR   WD    Withdrawn    B

   senior unsecured    LT       WD    Withdrawn    BB-

   senior unsecured    LT       BB-   Downgrade    BB

   subordinated        LT       WD    Withdrawn    B

   subordinated        LT       B     Downgrade    B+


VEON LTD: Fitch Affirms & Then Withdraws 'B+' LongTerm IDR
----------------------------------------------------------
Fitch Ratings has affirmed VEON Ltd's Long-Term Issuer Default
Rating (IDR) and senior unsecured rating at 'B+'. The senior
unsecured rating has a Recovery Rating of 'RR4'/50%. The Outlook on
the IDR is Stable.

The rating reflects weak Russian and Ukrainian operating
environments following Fitch's downgrades of the Country Ceiling of
Russia to 'B-', before being withdrawn, and Ukraine's Country
Ceiling to 'B-'. With limited access to cash in these countries,
the group's credit profile is primarily shaped by operations in
other markets. Russia and Ukraine generated 62% of the group's
reported 2021 EBITDA. Analytical deconsolidation of operations in
Russia and Ukraine leads to a significant increase in leverage to
around 3.5x net debt/EBITDA at end-2022.

VEON's ratings have been withdrawn for commercial purposes. Fitch
will no longer provide ratings or analytical coverage of VEON.

KEY RATING DRIVERS

Deconsolidate Russia and Ukraine: The introduction of currency
controls in Russia limits VEON's access to cash generated by its
Russian operations. We also view access to cash flows in Ukraine as
problematic. We therefore deconsolidate these operations from the
overall group in our assessment. Nonetheless, both businesses in
Russia and Ukraine are deemed self-sufficient and more than 90% of
VEON's base stations are operational in Ukraine, according to
management. Therefore, we do not expect these two countries to
require any cash funding from the holding company.

Weaker Operating Environment: VEON benefits from wide geographic
diversification across emerging markets, but with limited
contribution from operations in countries with strong operating
environments. Without Russia and Ukraine, Pakistan, with its
Country Ceiling of 'B-', accounted for almost half of VEON's
remaining reported 2021 EBITDA, while contribution from Kazakhstan
(Country Ceiling BBB+) was slightly under a quarter. Without Russia
and Ukraine, the weighted average level of Country Ceilings across
VEON's asset portfolio is close to 'B+'.

Substantial Foreign-Exchange (FX) Mismatch: VEON faces a
significant mismatch between its cash flows in local currency and
significant foreign-currency debt. However, EBITDA generated in
Kazakhstan, which has an investment-grade Country Ceiling of
'BBB+', is sufficient to comfortably cover VEON's hard-currency
gross interest payments (excl. Russia and Ukraine).

High Deconsolidated Leverage: With Russian and Ukrainian operations
deconsolidated, VEON's leverage is expected to be around 3.5x net
debt/EBITDA at end-2022. As we forecast pre-dividend free cash flow
(FCF) to be neutral to negative till 2024, VEON could reduce
leverage from organic EBITDA growth, which we expect to be around
mid-single digits in 2023 and 2024. The resumption of dividend
payments in 2023 could increase leverage further, as could adverse
FX movements.

1Q22 Results Reasonable: VEON reported flat revenue in 1Q22 and a
4% decline in EBITDA. However, revenue and EBITDA grew between
single- and low double-digit percentages annually in all countries
in local-currency terms. Most, if not all key performance
indicators, improved in 1Q22 in all countries where VEON operates.

DERIVATION SUMMARY

No longer relevant as the ratings have been withdrawn.

KEY ASSUMPTIONS

No longer relevant as the ratings have been withdrawn.

RATING SENSITIVITIES

No longer relevant as the ratings have been withdrawn.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity: As of June 2022, VEON had around USD2.4 billion
of cash, of which USD1.8 billion (excluding future proceeds from
Algeria transaction) was at the headquarters with large
international banks.

VEON's liquidity is sufficient to meet its obligations over the
next 12 months and the company has no material debt maturing in
2022.

ISSUER PROFILE

VEON is a facilities-based mobile network operator with leading or
well-established competitive positions in most of its countries of
operations including Russia, Ukraine, Kazakhstan, Bangladesh and
Pakistan.

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.

   DEBT                   RATING              RECOVERY   PRIOR
   ----                   ------              --------   -----
VEON Holdings B.V.

   senior unsecured    LT       B+    Affirmed   RR4     B+

   senior unsecured    LT       WD    Withdrawn          B+

VEON Ltd.
                       LT IDR   B+    Affirmed           B+

                       LT IDR   WD    Withdrawn          B+

   senior unsecured    LT       B+    Affirmed   RR4     B+

   senior unsecured    LT       WD    Withdrawn          B+




===========
P O L A N D
===========

INPOST SA: Fitch Affirms 'BB' Rating on Sr. Unsecured Debt
----------------------------------------------------------
Fitch Ratings has assigned InPost S.A. (BB/Stable) senior unsecured
instrument, which is rated at 'BB', a Recovery Rating of 'RR4'.

The 'RR4' on InPost's senior unsecured instrument is in line with
Fitch's generic approach described in Fitch's Corporate Recovery
Rating Criteria and treatment for issuers rated in the 'BB' range.

The 'BB' rating reflects InPost's highly cash-generative business,
its strong domestic position in Poland, satisfactory execution of a
French business acquisition, high growth potential in the
e-commerce market and the company's disruptive technology, which
drives operational efficiency. The rating also reflects its small
scale, weak diversification relative to vertically integrated
peers' and high execution risk outside its home market in
introducing automatic parcel machine (APM) networks.

KEY RATING DRIVERS

Deleveraging Delayed: Fitch expects a delay to InPost's
deleveraging due to a more aggressive roll-out of APM and lower
margin on the back of tougher economic conditions versus Fitch's
previous forecast. Fitch assumes Fitch-defined EBITDA (after
lease-related interest and depreciation) margin to drop further in
2022 to 20% before improving to around 23% (previous forecast 26%)
by 2024. Fitch believes the company's highly cash-generative
business will lead to rapid deleveraging, within its net
debt/EBITDA target of 2.0x-2.5x, which is consistent with the
current rating.

Short-term Challenges: Rising inflation, including in labour and
fuel, will weigh on margins and the economic slowdown of the
general economy may translate into slower volume growth. Consumers
returning to services such as dining and travelling as restrictions
are lifted is also a contributor to slowing e-commerce growth.
Fitch expects the company's margin will take an immediate hit from
higher operating cost, at least until repricing with its main
customers from 4Q22. However, in the long term, Fitch expects cost
pressure will accelerate the structural shift towards APM, away
from costlier to-door deliveries.

Polish Market Gain Continues: Fitch expects InPost to outperform
the wider parcel delivery market due to the structural shift away
from to-door deliveries. InPost is a clear leader in the Polish B2C
market where it continued to increase its market share to around
48% in 2021 (from 44% in 2020). Competition is growing in the APM
segment where its share of APMs fell to 87% in 2021 (2020: 98%),
but competitors' scale is far from being a threat. Fitch's view is
supported by a growing base of loyal and frequent customers and the
first-mover advantage that InPost enjoys. Customers who ordered at
least 12 parcels in 12 months increased to 45% in 2021 (2019:
27%).

Established Presence in France: InPost's well-established pick-up
and drop-off (PUDO) delivery business in France through Mondial
Relay SAS (MR) results in lower execution risk in France than other
international businesses including the UK, in Fitch's view. InPost
is looking to leverage on its APM technology to gradually shift
MR's predominantly PUDO delivery service offering towards its APM
business. MR is the second-biggest PUDO service company in France
after state-owned La Poste. Fitch expects some opportunity from the
B2C segment in partnership with larger merchants.

International to Break-even by 2024: Fitch expects InPost's
International business (excluding France) to break-even by 2024 - a
year later than Fitch's previous forecast. Fitch's revision is due
to the weaker economic outlook, its loss of partnership with Hermes
and existing competition from Amazon. Nonetheless, Fitch expects
InPost's UK focus on dense cities to establish their APM network
and partnership with major merchants to mitigate the execution risk
of rolling out the APM network.

Cross-border Synergy Gaining Traction: InPost's growing presence in
different markets has started to show the benefit of synergies. Its
disruptive technology leverages on accumulated data and experience
to improve their operational efficiency such as cost and delivery
times, which ultimately reduce execution risk. Management is
actively adapting a successful product offering such as 'label-less
returns' in Poland to other markets. Geographic expansion provides
flexibility in asset allocation and enhances ties with other
pan-European merchants, such as Vinted, Europe's largest C2C
fashion marketplace, with whom InPost has signed a five-year
pan-European agreement.

DERIVATION SUMMARY

We assess InPost's rating using Fitch's Generic Ratings Navigator.
Despite similarities in the nature of business, comparability with
other global logistics operators such as Deutsche Post AG (DP,
BBB+/Positive) or La Poste S.A. (A+/Stable) is limited. This is due
to InPost's significantly smaller scale, weak international
presence and lack of service-offering diversification, which is
offset by its dominant market position and disruptive technology,
the latter of which is a potential threat to bigger operators.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer

-- One-month Warsaw interbank offered rate at an average of 7.2%
    in 2022-2025;

-- InPost's volume to continue to grow at 15%-23% during 2022-
    2025 on the back of network expansion and fast-growing e-
    commerce;

-- International business to gain momentum and break-even by
    2024;

-- Capex (including maintenance capex) on average PLN1,100
    million annually over 2022-2025.

RATING SENSITIVITIES

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

-- Funds from operations (FFO) net leverage below 2.3x or net
    debt/Fitch-defined EBITDA (after lease) below 2.0x on a
    sustained basis, supported by a more conservative financial
    policy;

-- Successful implementation of its international expansion
    strategy, supporting growth and diversification.

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

-- Negative free cash flow (FCF) through the cycle due to lower
    operating margin, high dividend pay-outs or new acquisitions;

-- FFO net leverage above 3.0x or net debt/Fitch-defined EBITDA
    (after lease) above 2.7x on a sustained basis;

-- FFO interest coverage below 3.0x or operating EBITDA/interest
    paid below 3.5x.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

No Refinancing Risk Until 2026: In January 2021, InPost entered
into senior facilities agreement for a PLN1,950 million term loan
and a PLN800 million revolving credit facility, which can be drawn
in multi-currencies. It has no material maturities until 2026 other
than lease-related repayments. Fitch expects the company to be
FCF-neutral-to-positive to 2025.

ISSUER PROFILE

InPost is a leading parcel delivery service in Poland, providing
package delivery services through its nationwide network of
'locker-type' APM as well as to-door delivery and fulfilment
services.

ESG CONSIDERATIONS

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

   DEBT                 RATING              RECOVERY   PRIOR
   ----                 ------              --------   -----
InPost S.A.

   senior unsecured    LT    BB    Affirmed    RR4     BB



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

HIPOTOTTA 4: Fitch Upgrades Rating on Class C Debt to 'BB+'
-----------------------------------------------------------
Fitch Ratings has upgraded HipoTotta No. 4 Plc (Hipototta 4) while
affirming Gamma, STC S.A. / Hipototta No. 13 (Hipototta 13), as
detailed below.

   DEBT                 RATING                 PRIOR
   ----                 ------                 -----
HipoTotta No. 13

Class A PTGMMBOM0001   LT   A+sf    Affirmed   A+sf

HipoTotta No. 4 Plc

Class A XS0237370605   LT   A+sf    Upgrade    Asf

Class B XS0237370787   LT   A+sf    Upgrade    Asf

Class C XS0237370860   LT   BB+sf   Upgrade    BB-sf

TRANSACTION SUMMARY

The transactions comprise Portuguese residential mortgage loans
originated and serviced by Banco Santander Totta SA
(BBB+/Stable/F2). The rating actions follow a periodic review of
the transactions and the identification of past inaccurate
loan-level data provided by the transactions' servicer.

KEY RATING DRIVERS

Correction on Loan-Level Data

The servicer has provided new mapping for borrowers' employment
type in its loan-level data templates, following the detection of
previously incorrect data. As a result, the majority of
self-employed borrowers have now been reclassified as employed. The
new mapping attracts less conservative adjustments in Fitch's
European RMBS Rating Criteria, and ultimately leads to a one-notch
upgrade of all classes of Hipototta 4 notes. Hipototta 13 is
unaffected by the new data mapping, as its class A notes' rating is
at the 'A+sf' cap for counterparty risk.

Counterparty Risk Cap Ratings

For Hipototta 13, the class A notes' rating cap at 'A+sf' reflects
the account bank replacement trigger of 'BBB' and 'F2', which is
insufficient to support 'AAsf' or 'AAAsf' ratings, as per Fitch's
"Structured Finance and Covered Bonds Counterparty Rating
Criteria".

For Hipototta 4, the counterparty provision of 'F2' also does not
support ratings in the 'AAsf' or 'AAAsf' rating categories.

Stable Performance

Asset performance over the past 12 months has remained stable for
both transactions, supported by portfolio deleveraging. The
cumulative gross default ratios remained stable at 3.5% and 0.1%
for Hipototta 4 and 13, respectively. For Hipototta 4, the ongoing
pro-rata amortisation and a non-amortising reserve fund have led to
a slight increase in credit enhancement (CE) for all classes of
notes. For Hipototta 13, CE for the class A notes has been
increasingly steadily as it amortises sequentially.

ESG Credit Relevant for Hipototta 4

Hipototta 4 has an ESG Relevance Score of '4' for transaction
parties & operational risk due to modification of the account bank
eligibility triggers after transaction closing.

RATING SENSITIVITIES

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

Deterioration in asset performance beyond Fitch's assumptions could
trigger negative rating action on the notes for both transactions.

CE failing to fully compensate for credit losses and cash flow
stresses associated with the current rating scenarios, all else
being equal, could also trigger negative rating action.

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

Hipototta 4's class A and B notes and Hipototta 13's class A notes
could be upgraded up to 'AAsf', the Country Ceiling for Portugal,
provided account bank replacement triggers support higher ratings,
in accordance with Fitch's Structured Finance and Covered Bonds
Counterparty Rating Criteria. This would be subject to counterparty
compliance with those triggers, and adequate CE to sustain stresses
at higher ratings.

Hipototta 4's class C notes could also be upgraded up to 'A+sf' on
sufficient increase in CE to compensate for expected losses
commensurate with higher ratings.

BEST/WORST CASE RATING SCENARIO

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

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.

DATA ADEQUACY

Hipototta 13

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

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

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

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.

Hipototta 4

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.

Fitch did not undertake a review of the information provided about
the underlying asset pool ahead of the transaction's initial
closing. The subsequent performance of the transaction over the
years is consistent with the agency's expectations given the
operating environment and Fitch is therefore satisfied that the
asset pool information relied upon for its initial rating analysis
was adequately reliable.

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

ESG CONSIDERATIONS

Hipototta 4 has an ESG Relevance Score of '4' for transaction
parties & operational risk due to modification of the account bank
eligibility triggers after transaction closing, which has a
negative impact on the credit profile, and is relevant to the
rating[s] in conjunction with other factors.

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




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

NH HOTEL: Moody's Affirms 'B3' CFR & Alters Outlook to Stable
-------------------------------------------------------------
Moody's Investors Service has affirmed NH Hotel Group S.A.'s B3
corporate family rating and the probability of default rating of
Caa1-PD. At the same time, the B2 instrument rating of the
company's EUR400 million senior secured notes due 2026 was also
affirmed. The outlook was changed to stable from negative.

"Our decision to affirm the ratings and to change the outlook to
stable from negative reflects the improvement in NH Hotel's key
credit metrics. Over the first 5 months of 2022, we have witnessed
a meaningful and sustained recovery in traveling and hotel stays;
as of Q2 2022, NH Hotel's revenue per available room ("RevPAR")
improved to roughly EUR85, slightly above 2019 level,  which will
enable NH Hotel to maintain credit metrics commensurate with its
current rating. Liquidity is robust and Moody's forecasts it will
be further supported by positive cash-flow generation beyond H1
2022" said Elise Savoye, CFA, a Moody's Vice President - Senior
Analyst and lead analyst for NH Hotel.

RATINGS RATIONALE

Over the first 5 months of 2022, NH Hotel's operating performance
has recovered significantly driven by strong leisure travel mostly
from European travelers. Business travel is lagging but improving
through the early months of 2022 while the acceleration of bookings
for H2 2022 and the continued pricing strength for leisure travel
this summer suggests recovery will continue in H2 2022. Even if
occupancy is not yet back at its pre-pandemic level (67% for Q2
2022 vs. 75% in Q2 2019), average daily rate (ADR) exceeds 2019
levels which supports RevPar's recovery and ultimately NH Hotel's
credit metrics improvement. NH Hotel's debt/EBITDA (as adjusted by
Moody's) reached 13.8x as of FY2021 and will be about 6.1x at the
end of 2022.

Moody's caution however that high inflation will likely impact
consumer spending over time and poses risks to the continued
recovery. Also, there are still risks of a more challenging
operating environment if Moody's have various virus mutations
resistant to current vaccine types and/or a recession pulling up
travels. However, Moody's also acknowledge that over the last two
years, NH Hotel has implemented structural changes such as the
increase of flexible costs' share or the disposal of trophy assets
in 2021 to reduce leverage. Moody's also believe that the group's
share of domestic guests, which is on average 70%-75% of total
guests for Euro area, and its focus on leisure travel will help NH
Hotel to cope with a potential new virus variant. Overall, Moody's
expect NH Hotel's occupancy will gradually increase to 56%-62% in
the end of 2022 with an ADR of EUR100 to 110 and RevPAR of EUR56 to
69. The debt to EBITDA will still be high but Moody's expect the
company to reduce debt once starting to generate meaningful amounts
of cash.

The affirmation of the CFR at B3 and the senior secured notes
rating at B2 reflects that despite the uncertainty of the recovery
of the operating environment, credit metrics have improved and will
remain commensurate with a B3 rating over the next 12 to 18 months.
The senior secured rating and the CFR also reflect the significant
property portfolio of EUR2.0 billion, of which EUR815 million is
unencumbered and fully owned by NH Hotel. This compares to an
estimated EUR813 million of financial debt as per June 2022, same
as the reported figure in March 2022. In case of default, the
portfolio value would provide prospects of high recovery for
secured creditors.

RATING OUTLOOK

The stable outlook reflects the improvement of NH Hotel's credit
metrics on the back of the recovering operating environment and NH
Hotel's measures to deleverage and maintain consistently robust
liquidity. The stable outlook also reflects Moody's expectation
that NH Hotel will maintain credit metrics commensurate with its
current rating despite the slowing of the economic growth in the
countries it operates.

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

A rating upgrade could develop if there is a combination of the
following:

» Strong liquidity and a return to meaningful and sustained
positive free cash flow

» Improvement in credit metrics with debt/EBITDA well below 6.0x,
coverage (EBITA/interest) approaching 1.5x and cash flow (retained
cash flow/net debt) above 10%, all on a sustained basis and
including Moody's standard adjustments

The rating could be downgraded if there is a combination of the
following:

» Weakening of NH Hotel's liquidity position with recurring
monthly cash drain in the short term

»A rapid deterioration of the underlying business conditions

» A material deterioration in the loan-to-value (LTV) coverage of
the secured notes could also exert pressure on Moody's recovery
assumptions including for the senior secured notes.

LIST OF AFFECTED RATINGS

Affirmations:

Issuer: NH Hotel Group S.A.

Probability of Default Rating, Affirmed Caa1-PD

LT Corporate Family Rating, Affirmed B3

Senior Secured Regular Bond/Debenture, Affirmed B2

Outlook Actions:

Issuer: NH Hotel Group S.A.

Outlook, Changed To Stable From Negative

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.

COMPANY PROFILE

NH Hotel Group S.A. (NH Hotel) is among the top 10 largest European
hotel chains, with 350 open hotels (owned, leased and managed) and
54,565 rooms in 30 countries. Besides Europe, NH Hotel has a
limited presence in Latin America (6% of net turnover in 2021). NH
Hotel focuses on midscale and upscale urban business hotels, and
has been shifting its portfolio towards an asset-light strategy
through management contracts and variable leases, even if it
retains ownership of around 20% of its hotels. As of year-end 2021,
the company reported revenue of EUR747 million, 56% below 2019
revenues of EUR1708 million.



===========
S W E D E N
===========

SAS AB: Moody's Downgrades CFR to Ca Following Chapter 11 Filing
----------------------------------------------------------------
Moody's Investors Service has downgraded the long term corporate
family rating of SAS AB ('SAS or the company') to Ca from Caa3 and
the probability of default rating to D-PD from Ca-PD, following the
company's announcement on July 5, 2022 that it has filed for
protection under Chapter 11 of the US Bankruptcy Code. Moody's has
also downgraded the backed senior unsecured MTN rating of SAS
Denmark-Norway-Sweden to (P)Caa3 from (P)Caa2 and the backed
subordinated rating of SAS Denmark-Norway-Sweden to C from Ca. The
Baseline Credit Assessment (BCA) of SAS remains unchanged at Ca.
Moody's also affirmed the commercial paper rating at NP and the
backed other short term at (P)NP.

The outlook on all entities remains negative.

A list of the Affected Credit Ratings is available at
https://bit.ly/3NTi5f7

RATINGS RATIONALE

On July 05, 2022, SAS AB announced that it has initiated a
voluntary Chapter 11 filing to restructure its balance sheet and
support its comprehensive SAS Forward restructuring programme. The
filing constitutes an event of default under Moody's criteria.
According to the announcement, SAS AB is in well advanced
discussions with a number of potential lenders with respect to
obtaining additional debtor-in-possession financing for up to
USD700 million (equivalent to approximately SEK7 billion) to
bolster its liquidity and maintain operations during its filing
procedure.

SAS AB has an unsustainable capital structure following the
material deterioration in earnings and the high level of associated
cash burn since the beginning of the coronavirus pandemic. SAS has
initiated a comprehensive restructuring programme SAS Forward to
restructure its cost base and capital structure to ensure the long
viability of its airline operations. Many stakeholders have been
asked to contribute to the restructuring plan but little progress
has been made on negotiations with the various stakeholders since
the announcement of the programme earlier this year. The company's
Chapter 11 filing resulted in the downgrade of SAS AB's PDR to
D-PD. The CFR and the rating on the company's senior unsecured and
subordinated ratings were downgraded to reflect Moody's view on
potential recoveries. Moody's has also stopped factoring any
support from the ownership from the Swedish and Danish government
into SAS' ratings following the Swedish government's recent
announcement that it won't participate in the SEK9.5 billion rights
issue that SAS AB expects to launch to help restoring its liquidity
and capital structure.

Subsequent to the actions, Moody's will withdraw all of its ratings
for SAS given the company's bankruptcy filing.

PRINCIPAL METHODOLOGIES

The methodologies used in these ratings were Passenger Airlines
published in August 2021.



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

SASA POLYESTER: Fitch Assigns First Time 'B' IDR, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has assigned Sasa Polyester Sanayi Anonim Sikreti
(Sasa) a First-Time Public Long-Term Issuer Default Rating (IDR) of
'B'. The Outlook is Stable.

The IDR reflects Sasa's high funds from operations (FFO) gross
leverage, which we expect to remain at around 5x in 2022 and 2023.
High leverage is driven by its substantial and largely debt-funded
expansion programme, which exposes the company to delays in
facilities construction and to potential market downturns. We
expect Sasa to maintain adequate liquidity throughout the
investment cycle but potential investment opportunities may lead to
higher leverage beyond 2024.

The rating also reflects Sasa's strong market position in the
Turkish polyester market and is constrained by single-site asset
concentration and exposure to the Turkish economy accounting for
75% of sales.

KEY RATING DRIVERS

Sustained Capex Drives High Leverage: Sasa's capacity expansion
started in 2017 will continue until at least 2024, maintaining high
leverage but also increasing EBITDA generation. We expect FFO gross
leverage of about 5x in 2022 and 2023, before it reduces to 3x in
2024 with the full-year benefit of integration into purified
terephthalic acid (PTA), its main feedstock, and based on the
current pipeline of investment projects. However, Sasa has other
capacity expansion plans that may lead to high leverage for longer.
We expect Sasa to pace its investment plan in line with its cash
flow generation and maintain adequate liquidity throughout the
investment cycle.

EBITDA Increases on Vertical Integration: We expect Sasa's
investment of about USD1 billion to build a 1.5mt PTA capacity to
lift its EBITDA margin to 25% by 2024, from an average of about 20%
in 2020- 2023, due to significant savings on freight and duties in
addition to the spread between PTA and paraxylene (PX). It will
also reduce the company's dependence on imports, which have
prevented a high utilisation of downstream assets in the past.
Further polyester capacity expansion will fully utilise its future
PTA capacity, and raise polymerisation capacity to 2mt in 2025 from
1.4mt in 2021.

Execution Risk: The increased EBITDA contribution of new lines will
depend on Sasa's ability to maintain high asset utilisation. Growth
in output is expected to be delivered through sequentially
commissioned facilities and partly rely on cash flow from early
investments. Consequently, production ramp-up is exposed to delays,
to potential cost overruns post PTA commissioning, and also depends
on continuously strong performance of volatile polyester markets.

Domestic Market Deficit: Sasa accounts for around 60% of domestic
polyester production capacity although Turkey has historically been
a net importer of polyester products, mainly from Asia, with around
1mt of domestic production deficit in 2019-2020. We see
opportunities for Sasa to increase its market share, due to the
lack of growth in the capacity of other domestic producers, but
also as supply chain becomes more regional given ongoing
disruptions. Such market structure, in our view, would reduce the
risk of low utilisation of new assets.

Single-Site Producer: Sasa's manufacturing facilities are
concentrated in a single site in Adana, Turkey, which exposes the
company to potential disruptions to either the manufacturing
process or supplies through Turkey's largest container port Mersin.
Asset concentration is partially mitigated by the plant's
segregation into 24 production lines. Sasa generates around 75% of
sales from the domestic market and while its customers are mainly
exporters it remains exposed to the deterioration of macro-economic
conditions in Turkey.

Limited Margin Protection: Sasa purchases all raw materials and
sells over 90% of output based on contracts linked to spot prices,
which exposes the company to potential volatility in margins. This
structure is expected to remain unchanged following the start of
its PTA facility when the company will need to source PX, the
feedstock needed for PTA production. The exposure can lead to
short-term fluctuations of raw materials and polyester prices,
given Sasa's moderate sales lead time of around two months.

Weak Links with Parent: Sasa is majority-owned by Erdemoglu
Holding, which directly owns around 63% of shares and controls two
entities that own around 23% of Sasa's shares. We rate Sasa on
standalone basis as it relies on independent, external funding, has
its own treasury functions and does not provide any guarantees for
other group companies. Sasa's ability to upstream cash to the
parent is limited by certain leverage covenants under its EUR200
million convertible bond.

FX Exposure Manageable: Sasa's foreign-exchange (FX) exposure is
manageable as over 90% of sales is indexed to the euro and US
dollar. Prices of raw materials accounting for around 75% of
operating costs are also denominated in hard currencies and the
majority of Sasa's existing and forecast debt is also in hard
currencies. Sasa's domestic customers are mostly export-driven
companies selling in hard currencies.

DERIVATION SUMMARY

Alpek, S.A.B. de C.V. (BBB-/Stable) is a Mexican chemical producer
with a focus on the consumer goods-oriented polyester market
accounting for around 75% of its turnover. With a total capacity of
8mt it is significantly larger, already diversified into PTA
production and has a wider geographical reach compared with Sasa.

Ineos Quattro Holdings Limited (BB/Stable) is one of the largest PX
and PTA and PVC manufacturers in Europe. It is also one of the
leaders in the global polystyrene and styrene monomers markets.
Ineos is significantly larger and more diversified than Sasa.

Petkim Petrokimya Holdings A.S. (B+/Negative) and Sasa are both
small-scale commodity producers with similar margins, but Sasa will
generate higher revenue and EBITDA once its expansion programme is
completed, and has a stronger domestic market share than Petkim.
However, Sasa has higher leverage, weaker liquidity and is exposed
to higher execution risk due to its capex plan.

Lune Holdings Sarl (Kem One, B/Stable) is an integrated PVC
producer with production assets concentrated in the south of
France. Both Sasa and Kem One have had volatile capacity
utilisation rates over the past years and are carrying out
significant investments to improve their position in their
respective value chains. Kem One has more conservative leverage and
stronger liquidity, but Sasa has larger scale and better supplier
diversification.

Roehm Holdings GmbH (B-/Stable) has similar scale to Sasa but
greater diversification, a stronger market position and higher
liquidity. However, Roehm has significantly higher leverage and is
exposed to cyclical end-markets.

KEY ASSUMPTIONS

-- Sales volume at 1.3mt in 2022, 1.2mt in 2023, 1.6mt in 2024
    and 1.8mt in 2025;

-- EBITDA margin of around 18.5% in 2022, 22.5% in 2023, 25.5% to

    2025;

-- Cumulative capex of TRY34.2 billion over 2022-2025;

-- No dividends or share repurchase;

-- USD/TRY (year-end) at 20 in 2022, 21 in 2023, and 22 to 2025;

-- USD/TRY (average) at 16.8 in 2022, 20.5 in 2023 and 21.5 to
    2025;

-- PTA facility to start production in 4Q23, polyester staple
    fibre (PSF) and melt-to-resin (MTR) lines to start operating
    in 2Q24.

RATING SENSITIVITIES

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

-- FFO net leverage below 3.0x and net debt/EBITDA below 3.5x,
    both on a sustained basis;

-- Successful refinancing supporting liquidity;

-- A record of stable, high asset utilisation rates.

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

-- Aggressive expansion plan, large dividends to the parent or
    cross-group guarantees leading to FFO net leverage above 4.5
    and net debt/EBITDA above 5x, both on a sustained basis;

-- Recurring negative FCF;

-- Weakening liquidity.

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

Liquidity Constrained by Capex: Although a large part of Sasa's
funding for the USD1.5 billion growth capex of 2022-2024 is already
signed, additional funds of several hundred million dollars are
needed to maintain adequate liquidity. As of 1Q22, Sasa's
unrestricted cash and cash equivalents of TRY2.1 billion (USD142
million) were not sufficient to cover TRY4.9billion (USD333
million) of current financial liabilities.

Sasa has some flexibility to stagger its capex and benefits from
committed lines from a mix of Turkish and foreign credit
institutions. We believe that liquidity could become tight if those
lines became unavailable.

ISSUER PROFILE

Sasa is the largest Turkish manufacturer of PSF, filament yarns,
polyester-based and specialty polymers and intermediates.

SUMMARY OF FINANCIAL ADJUSTMENTS

We have reduced financial debt from the amount of lease liabilities
(TRY172 million) and reclassified depreciation of right-of-use
assets (TRY2 million) and lease-related interest expenses (TRY5
million) to cash operating expenses for the calculation of EBITDA
and FFO.

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.

   DEBT            RATING
   ----            ------
Sasa Polyester     LT IDR    B    New Rating
Sanayi Anonim Sirketi



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

AMIGO: Seeks to Recommence Lending Following Scheme Approval
------------------------------------------------------------
Siddharth Venkataramakrishnan at The Financial Times reports that
loan collections have remained "robust" despite rising numbers of
delinquencies said Amigo Loans, but the UK subprime-focused company
warned that the cost of living crisis was likely to intensify.

"It's a very difficult position for people and to be frank I don't
think we have seen the worst of it," the FT quotes chief executive
Gary Jennison on July 8 as saying.  "We will see a real impact when
the energy cap goes up again in October and people start to use
heating over the winter."

His warning comes after UK inflation hit another 40-year high in
May amid surging food and fuel prices, with the Bank of England
expecting the measure to exceed 11% in October, the FT notes.

Amigo, the FT says, has not been able to carry out new lending
since November 2020 due to uncertainty caused by the pandemic and a
dispute over customers' compensation for historic mis-selling.

The company is currently seeking consent from the Financial Conduct
Authority to recommence lending after the High Court sanctioned its
proposed new business scheme in May, the FT discloses.  Under the
approved scheme, Amigo will pay at least GBP112 million in
compensation provided that it can restart lending within nine
months of approval and that it can raise new equity within 12
months of approval, the FT states.

Amigo announced pre-tax profits of GBP170 million in the year to
March 31, compared to a loss of GBP283.6 million in the previous 12
months, the FT relays.  However, Mr. Jennison, as cited by the FT,
said this was not a reflection of the Bournemouth-based company's
performance but was rather due to a release of provisions set aside
for complaints following the High Court decision.  Revenues fell
47.6% to GBP89.5 million, the FT discloses.

The company, the FT says, is aiming to launch two products, a
personal loan and a guarantor loan, under a new brand, RewardRate.
Borrowers will have the opportunity to reduce their annual interest
rate by up to 15 percentage points, the FT states.  New lending
would be capped at GBP35 million until it completes a capital
raise, the FT notes.

Shares in Amigo have fallen by more than 45% over the past year,
the FT discloses.


ATLANTICA SUSTAINABLE: Fitch Assigns 'BB+' LT IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Rating
(IDR) of Atlantica Sustainable Infrastructure plc (Atlantica) at
'BB+' with a Stable Rating Outlook. Fitch also affirmed the
'BBB-'/'RR2' senior secured rating on Atlantica's revolving credit
facility and the 'BB+'/'RR4' senior unsecured rating on its green
senior notes due 2028.

Atlantica's ratings reflect the stable and predictable nature of
contracted cash flows generated at its nonrecourse project
subsidiaries, which are well-diversified with respect to
geographical exposure and asset class. All of Atlantica's assets
are either long-term contracted or regulated, in the case of its
Spanish solar assets and a transmission line in Chile, with minimal
commodity risk.

KEY RATING DRIVERS

Adequate Holdco Leverage: Fitch expects Atlantica's gross holding
company (holdco) leverage to be in the 3.5x-3.8x range over
2022-2025, trending downward over the forecast period. Holdco-only
interest coverage is projected to average greater than 7.0x over
the forecast period, which Fitch considers to be strong for the
rating.

Spain Regulatory Framework Modified: Fitch views the recent changes
to Spanish regulation as neutral to Atlantica's credit quality,
despite increasing the potential volatility of future cash flows.
On March 30, 2022, Royal Decree Law 6/2022 was published, adopting
urgent measures in response to the economic and social consequences
of the war in Ukraine. This Royal Decree Law contains a bundle of
measures in diverse fields, including those targeted at containing
the sharp rise in the prices of gas and electricity. It includes
temporary changes to the detailed regulated components of revenue
received by Atlantica's solar assets in Spain, which are applicable
from Jan. 1, 2022.

The statutory half-period of three years from 2020 to 2022 has been
split into two statutory half-periods: 1) from Jan. 1, 2020 until
Dec. 31, 2021 and 2) calendar year 2022. The 7.4% and 7.1% allowed
rates of return remain in place, so the regulatory framework
modifications remain neutral to the net present value of returns.
However, the return on operations component based on net
electricity produced was eliminated for 2022. For the three-year
half-period starting on Jan. 1, 2023 and ending on Dec. 31, 2025,
the adjustment mechanism for electricity market price deviations in
the preceding statutory half-period will be progressively modified
to take into account a mix of actual market prices and future
market prices. Fitch expects Atlantica to consider hedging
opportunities to mitigate potential future market price exposure.

Enhanced Flexibility to Grow Distributions: Atlantica's manageable
distribution growth rate of 5%-8% supports the company's
conservative financing policy and provides additional flexibility
to manage growth. Atlantica continues to target equity investment
of approximately USD300 million per year over the forecast period.
Other levers to drive distribution growth include pricing
indexation, built in contractual agreements and additional
project-level refinancings.

Ample access to capital markets, including a track record of equity
support from Atlantica's sponsor Algonquin Power & Utilities Corp.
(APUC; BBB/Stable), have enabled Atlantica to execute its growth
plan. Corporate cash on hand and sufficient revolver capacity
provide an additional cushion to finance future acquisitions
without need to access capital markets.

Conservative Financial Policy: A majority of debt at Atlantica
consists of nonrecourse project debt held at ring-fenced project
subsidiaries. The distribution test in project finance agreements
is typically set at a debt service coverage ratio (DSCR) of
1.10x-1.25x. All of the projects were performing in excess of their
required DSCRs at YE 2021.

Project debt is typically long-term and self-amortizing, with a
shorter term than the duration of the contracts. More than 94% of
the long-term interest exposure is either fixed or hedged,
mitigating any impact in a rising interest rate environment.
Approximately 90% of the CAFD is in U.S. dollars or euros, and
Atlantica typically hedges its euro exposure on a 24-month rolling
basis.

Stable Cash Flow and Asset Diversity: Atlantica's portfolio of
assets produces stable, predictable cash flows underpinned by
long-term contracts with a weighted average remaining contract life
of 15 years. Most counterparties have strong investment-grade
ratings. The contracts are typically fixed-price with annual
escalation mechanisms. Atlantica's portfolio does not bear material
resource availability risk or commodity risk and does not depend on
any single project for more than 15% of its project distributions.
There have been some operational issues, notably with the storage
tanks at the Solana project, but the tanks are expected to be fully
fixed this year and have not meaningfully affected cash flows at
the project level.

The forecast cash distributions to the holdco from the project
subsidiaries are largely derived from renewable assets at 70%, with
the remainder split between natural gas plants, transmission lines
and water. Geographically, the split is 46% from the U.S. and
Mexico, 31% from Spain, 15% from South America and 8% from the rest
of the world. Approximately 60% of project distributions are
generated from solar projects; solar resource availability has
typically been strong and predictable.

DERIVATION SUMMARY

Fitch views Atlantica's portfolio of assets as favorably positioned
due to the asset type compared with those of NextEra Energy
Partners, LP (NEP; BB+/Stable) and TerraForm Power Operating, LLC
(TERPO; BB-/Stable), owing to Atlantica's large concentration of
solar generation assets that exhibit less resource variability. In
comparison, NEP's portfolio consists of a large proportion of wind
projects, and TERPO's portfolio consists of 43% solar and 57% wind
projects.

Fitch views NEP's geographic exposure in the U.S. and Canada (100%
of MW) favorably as compared with TERPO's (68%) and Atlantica's
(about one-third). Both Atlantica and TERPO have exposure to the
Spanish regulatory framework for renewable assets, but the current
construct provides clarity of return for the next six or 12 years.
In terms of total MW, approximately one-third of Atlantica's power
generation portfolio is in Spain, compared with approximately
one-quarter for TERPO. Atlantica's long-term contracted fleet has a
remaining contracted life of 15 years, higher than NEP's at about
14 years and TERPO's at 13 years.

Atlantica's credit metrics are stronger than those of TERPO and
NEP. Fitch forecasts Atlantica's gross leverage ratio (holdco
debt/CAFD) to decline to the mid-3x range after 2022, compared with
high 3x for NEP and around 6.0x for TERPO. Atlantica's distribution
per-unit target of 5%-8% is more conservative than NEP's at
12%-15%. TERPO has been taken private and is no longer subject to
public growth targets.

Atlantica, TERPO and NEP have strong parent support. Fitch
considers NEP best positioned owing to NEP's association with
NextEra Energy, Inc. (A-/Stable), which is the world's largest
renewable developer. TERPO benefits from having Brookfield Asset
Management as a 100% owner. APUC currently has 43% ownership
interest in Atlantica. Fitch rates Atlantica, NEP and TERPO with a
deconsolidated approach, because their portfolios comprise assets
financed using nonrecourse project debt or with tax equity.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer
Include:

-- Acquisitions generate 8%-9% CAFD yield;

-- Acquisitions financed using a combination of debt and equity;

-- All projects operate as expected and are able to make regular
    distributions to the holdco;

-- Dividend payout ratio of roughly 83%;

-- Annual growth investment averaging approximately USD 300
    million over the forecast period;

-- Returns in Spain at 7.4% and 7.1%, depending on the project.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to a
Positive Rating Action/Upgrade:

-- Holdco leverage below 3.0x for several quarters and payout
    ratio at or below 80%.

Factors that Could, Individually or Collectively, Lead to a
Negative Rating Action/Downgrade:

-- Lower than expected performance at its largest assets and
    absence of mitigating measures to replace the lost CAFD;

-- Growth strategy underpinned by aggressive acquisitions or
    addition of assets in the portfolio that bear material
    volumetric, commodity, counterparty or interest rate risks;

-- Unfavorable future developments with respect to the regulated
    rate of return in Spain;

-- Lack of access to equity markets to fund growth that may lead
    Atlantica to deviate from its target capital structure;

-- Holdco leverage ratio exceeding 4.0x and payout ratio
    exceeding 85% for several quarters.

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: Corporate cash on hand was USD113.1 million at
March 31, 2022, and Atlantica had USD440 million of availability
under its USD450 million revolver, which matures Dec. 31, 2024.

Atlantica also has a credit facility with a local bank for up to
EUR5 million, which matures Dec. 4, 2025, and a euro CP program
that allows Atlantica to issue short-term notes over the next 12
months for up to EUR50 million.

Atlantica has an average corporate debt maturity of six years with
minimal debt maturities in the near term.

ISSUER PROFILE

Atlantica is a dividend growth-oriented company that owns and
manages a diversified portfolio of contracted assets in the power
and environmental sectors predominately located in Spain and North
and South America.

SUMMARY OF FINANCIAL ADJUSTMENTS

No financial statement adjustments were made that depart materially
from those contained in the published financial statements of the
relevant rated entity.

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.

   DEBT               RATING                  RECOVERY   PRIOR
   ----               ------                  --------   -----
Atlantica             LT IDR   BB+    Affirmed           BB+
Sustainable
Infrastructure Plc

   senior unsecured   LT       BB+    Affirmed   RR4     BB+

   senior secured     LT       BBB-   Affirmed   RR2     BBB-


CASTELL 2022-1: S&P Assigns Prelim. B+(sf) Rating on Cl. F Notes
----------------------------------------------------------------
S&P Global Ratings assigned its preliminary ratings to Castell
2022-1 PLC's class A, A Loan Note, B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd,
F-Dfrd, and X-Dfrd notes. At closing, Castell 2022-1 will also
issue unrated class G-Dfrd and H notes, as well as RC1 and RC2
residual certificates.

The assets backing the notes are U.K. second-ranking mortgage
loans. Most of the pool is considered prime, with 86.4% originated
under UK Mortgage Lending's prime product range. Additionally, 3.5%
of the pool refers to loans advanced to borrowers under UK Mortgage
Lending's "near prime" product, with the remaining 10.1% loans
advanced to borrowers under its "Optimum+" product. Loans advanced
under the "near prime" or "Optimum+" product range have lower
credit scores and potentially higher amounts of adverse credit
markers, such as county court judgments, than those under the
"prime" product range.

The transaction benefits from liquidity provided by a liquidity
reserve fund, and principal can be used to pay senior fees and
interest on the notes subject to various conditions.

Credit enhancement for the rated notes will consist of
subordination.

The transaction incorporates a swap with a fixed schedule to hedge
the mismatch between the notes, which pay a coupon based on the
compounded daily Sterling Overnight Index Average (SONIA), and the
loans, which pay fixed-rate interest before reversion.

At closing, the issuer will use the issuance proceeds to purchase
the full beneficial interest in the mortgage loans from the seller.
The issuer grants security over all of its assets in the security
trustee's favor.

There are no rating constraints in the transaction under our
counterparty, operational risk, or structured finance sovereign
risk criteria. S&P considers the issuer to be bankruptcy remote.

Pepper (UK) Ltd. is the servicer in this transaction. In our view,
it is an experienced servicer in the U.K. market with
well-established and fully integrated servicing systems and
policies. It has our ABOVE AVERAGE ranking as a primary and special
servicer of residential mortgages in the U.K.

S&P said, "Our credit and cash flow analysis and related
assumptions consider the transaction's ability to withstand the
potential repercussions of the current macroeconomic environment,
namely, higher defaults and longer recovery timing. Considering
these factors, we believe that the available credit enhancement is
commensurate with the assigned preliminary ratings."

  Preliminary Ratings

  CLASS      PRELIM. RATING*     CLASS SIZE (%)

  A§            AAA (sf)            72.75†

  A Loan Note§  AAA (sf)          72.75†

  B-Dfrd        AA+ (sf)           6.50

  C-Dfrd        A+ (sf)            6.00

  D-Dfrd        BBB+ (sf)          4.75

  E-Dfrd        BB+ (sf)           3.50

  F-Dfrd        B+ (sf)            2.00

  G-Dfrd        NR                 2.50

  X-Dfrd        CCC (sf)           3.00

  H             NR                 2.00

  RC1 Certs     NR                  N/A

  RC2 Certs     NR                  N/A

*S&P Global Ratings' ratings address timely receipt of interest and
ultimate repayment of principal on the class A notes and A loan
note, and the ultimate payment of interest and principal on all
other rated notes. S&P's ratings also address timely interest on
the rated notes when they become most senior outstanding. Any
deferred interest is due immediately.
§The class A and A loan note rank pro rata and pari passu without
preference or priority among themselves regarding payment of
interest and principal throughout the transaction's life. †The
class A note and class A loan note together represent 72.75% of the
total notes' balance.
TBD--To be determined.
NR--Not rated.
N/A--Not applicable.


ELSTREE FUNDING 1: Moody's Ups Rating on Class F Notes to Ba2
-------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of five notes in
Elstree Funding No.1 PLC. The rating action reflects better than
expected collateral performance as well as the increased levels of
credit enhancement for the affected notes.

Moody's affirmed the rating of the note that had sufficient credit
enhancement to maintain its current rating.

GBP208.7M Class A Notes, Affirmed Aaa (sf); previously on Nov 5,
2020 Definitive Rating Assigned Aaa (sf)

GBP21.7M Class B Notes, Upgraded to Aaa (sf); previously on Nov 5,
2020 Definitive Rating Assigned Aa1 (sf)

GBP12.2M Class C Notes, Upgraded to Aa2 (sf); previously on Nov 5,
2020 Definitive Rating Assigned A2 (sf)

GBP6.8M Class D Notes, Upgraded to A2 (sf); previously on Nov 5,
2020 Definitive Rating Assigned Baa2 (sf)

GBP4.1M Class E Notes, Upgraded to Baa2 (sf); previously on Nov 5,
2020 Definitive Rating Assigned Ba1 (sf)

GBP4.8M Class F Notes, Upgraded to Ba2 (sf); previously on Nov 5,
2020 Definitive Rating Assigned B1 (sf)

RATINGS RATIONALE

The rating action is prompted by decreased key collateral
assumptions, namely the portfolio Expected Loss (EL) assumption due
to better than expected collateral performance and an increase in
credit enhancement for the affected tranches through transaction
deleveraging.

Revision of Key Collateral Assumptions:

As part of the rating action, Moody's reassessed its lifetime loss
expectation for the portfolio reflecting the collateral performance
to date.

The performance of the transaction has continued to be stable since
closing. Total delinquencies have not materially changed in the
past year, with 90 days plus arrears currently standing at 0.17% of
current pool balance compared with 0.52% a year ago. Cumulative
repossessions currently stand at 0.08% of original pool balance up
from 0.00% a year earlier. There have been no realized losses to
date with a pool factor of 70.3%.

Moody's decreased the expected loss assumption to 4.8% as a
percentage of original pool balance from 6.50% due to the
transaction's good performance. This is equivalent to an expected
loss assumption of 6.5% as a percentage of the current pool
balance.

Moody's has also assessed loan-by-loan information as a part of its
detailed transaction review to determine the credit support
consistent with target rating levels and the volatility of future
losses. As a result, Moody's has maintained the MILAN CE assumption
at 23.0%.

Increase in Available Credit Enhancement

Sequential amortization led to the increase in the credit
enhancement available in this transaction.

For instance, the credit enhancement for the tranche B, tranche C,
tranche D, tranche E and tranche F upgraded in the rating action
increased to 23.6%, 17.2%, 13.7%, 11.6% and 9.1% from 17.3%, 12.8%,
10.3%, 8.8% and 7.0% respectively since closing.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
February 2022.

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

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

Factors or circumstances that could lead to an upgrade of the
ratings include: (i) performance of the underlying collateral that
is better than Moody's expected; (ii) an increase in available
credit enhancement; (iii) improvements in the credit quality of the
transaction counterparties; and (iv) a decrease in sovereign risk.

Factors or circumstances that could lead to a downgrade of the
ratings include: (i) an increase in sovereign risk; (ii)
performance of the underlying collateral that is worse than Moody's
expected; (iii) deterioration in the notes' available credit
enhancement; and (iv) deterioration in the credit quality of the
transaction counterparties.

HELIOS TOWERS: Fitch Assigns First Time 'B+' IDR, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has assigned Helios Towers Plc (HT) a first-time
Long-Term Issuer Default Rating (IDR) of 'B+' with a Stable
Outlook. Fitch has also assigned the USD975 million bond issued by
wholly owned subsidiary HTA Group Limited a senior unsecured
instrument rating of 'B+' with a Recovery Rating of 'RR4'.

HT's ratings are constrained by a fairly weak operating
environment, with the majority of earnings and cash flows coming
from countries with sovereign ratings of 'B' or lower.
Foreign-exchange (FX) risks are also a consideration for the
ratings but are mitigated by a significant share of earnings being
generated in countries either using hard-currency or currencies
pegged to hard-currencies.

Rating strengths include HT's leading position in most markets it
operates in, long-term earnings and cash flow visibility
underpinned by long contracts with mobile network operators, strong
market-growth prospects, and an experienced management team.

KEY RATING DRIVERS

Africa- and Middle East-Focused: HT is one of the leading tower
operators focused in Africa and the Middle East regions. With
around 13,900 towers (pro-forma for pending acquisitions in Oman
and Gabon), it holds strong positions in the countries where it
operates, being the leading independent tower company in eight out
of its 10 markets. Helios provides mission-critical tower
infrastructure services to telecoms operators, which ensures low
churn rates. Fitch believes HT's market position benefits from high
barriers to entry due to customers' high switching costs, and the
group's service quality.

Operating-Environment Constraints: HT operates in countries
characterised by a fairly weak operating environment associated
with mid-to-low 'B' sovereign ratings. Even in the absence of
transfer and convertibility risks, Fitch deems the ratings of
corporates operating in such markets as being somewhat anchored to
the respective sovereign ratings. Fitch believes that fragile
economic structures and uncertain regulation, among other risks,
may negatively affect HT's business profile. Fitch's rating
thresholds for HT are therefore tighter than those for peers
operating in developed markets.

High Leverage Post Acquisitions: HT estimates its company-defined
net leverage will be at the higher end of its 3.5x-4.5x target once
pending acquisitions close. Fitch estimates Fitch-defined funds
from operations (FFO) net leverage to reach 5.6x by 2023 (4.9x on a
Fitch-defined net debt/EBITDA basis, which is calculated using
EBITDA after lease-related expenses).

Deleveraging Capacity from EBITDA Growth: HT's 2022-2026 strategy
is to focus on margin expansion in contrast with the 2020-2022
period when the focus was geographical expansion. We estimate the
group will reduce FFO net leverage by around 0.4x per annum after
2023. This will be driven by EBITDA growth as we expect free cash
flow (FCF) to be negative as discretionary capex remains high. In
addition to organic growth, selective acquisition opportunities may
lead to leverage remaining at the higher end of HT's target range.

Market Growth Prospects: HT is well-positioned to benefit from
telecoms' growth potential in the geographies it operates, which
are generally characterised by low fixed-line broadband coverage,
and where high-speed broadband is often accessed through 3G and LTE
networks. Fitch expects mobile telecoms operators to continue
densifying their networks to increase coverage and capacity to
service a growing population, rising mobile penetration and data
consumption, consequently upping demand for HT's tower
infrastructure over the medium term.

Contractual Visibility: The contracts HT has with its tenants for
telecoms-site rentals have long-term durations, with a current
average term of around eight years. Fitch envisages a high
probability of renewal of these contracts, which is factored into
our rating case. Overall, contract characteristics offer long-term
visibility and stability to the group's cash flow, benefiting from
annual inflation escalators and quarterly or annual power
escalators. About 56% of its revenue (pro-forma for acquisitions)
are from either dollarised countries or from countries where the
currency is euro- or dollar-pegged, while another 18% of revenue
are contractually linked to the hard currencies. This substantially
mitigates the risk of adverse FX movements.

Improved Diversification: HT has grown its footprint in Africa and
Middle East to 10 countries pro-forma for pending acquisitions as
of end-March 2022 from five at end-2020. Recent expansion to
Madagascar, Malawi, Senegal, Oman and Gabon offers the group
geographical diversification as well as additional revenue
expansion opportunities. Fitch estimates around two thirds of
pro-forma 2022 EBITDA will be generated from HT's operations in
Tanzania and Democratic Republic of Congo, down from more than 80%
a few years ago.

Country Ceiling Not A Constraint: Fitch uses our Non-Financial
Corporates Exceeding the Country Ceiling Criteria to assess the
risk from the currency mismatch between cash flow and debt (mostly
in US dollars) as well as transfer and convertibility risk. Fitch
determines HT's effective Country Ceiling at 'B'. Fitch believes HT
has structural enhancements allowing for at least a one-notch IDR
uplift above the applicable Country Ceiling. However, any uplift
will be capped at the Long-Term Local-Currency IDR, hence the
Country Ceiling is not a determining factor of the Long-Term
Foreign-Currency IDR for HT.

DERIVATION SUMMARY

HT's ratings are constrained by the operating environment the group
operates in. Absent operating-environment considerations, HT's
business and financial characteristics would be consistent with a
higher rating.

Fitch benchmarks HT's ratings to a wide group of peers that include
various emerging-market telco infrastructure and integrated
operators.

HT's closest peer is IHS Holding Limited (IHS, BB-/Stable), a tower
company focused on emerging markets with a significant African
presence, particularly in Nigeria. The difference in the ratings is
because HT operates in some countries with weaker operating
environments, has higher leverage than IHS, and a weaker FCF
profile partly due to a more organic investments leading to higher
capex intensity.

Axian Telecom (Axian, B+/Stable), an integrated Africa-focused
telecom operator, is present in similarly weak
operating-environment countries. Compared with Axian, HT has a
higher debt capacity at the 'B+' rating due to lower business risk
given the infrastructure nature of the business and lower
competition.

Except for its weaker operating environment, HT shares some
operating and financial characteristics with its investment-grade
international peers, such as American Tower Corporation (BBB+/RWN),
Cellnex Telecom S.A. (BBB-/Stable) or PT Profesional Telekomunikasi
Indonesia (BBB/Stable).

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer

-- Reported revenue to grow 31% in 2022 and 18% in 2023, due to
    strong organic growth and acquisitions, with organic growth in

    the mid-to-high single digits in 2024-2025;

-- Fitch-defined EBITDA margin of around 44.6% in 2022, improving

    gradually to 48% by 2025;

-- Working-capital outflows of around USD20 million p.a. to 2025;

-- Capex at around 37% of revenue in 2022, mostly driven by
    expansionary investments. Capex to gradually decline to 23% by

    2026;

-- No dividends in 2022-2025;

-- Oman and Gabon acquisition consolidated from 2H22 and 1H23,
    respectively.

Key Recovery Rating Assumptions

-- The recovery analysis assumes that HT would be considered a
    going concern in bankruptcy and that it would be reorganised
    rather than liquidated;

-- A 10% administrative claim;

-- Post-restructuring going-concern EBITDA of USD268 million
    (including Oman and Gabon) in a scenario reflecting
    significant deterioration in HT's operating environment, with
    disruption to customers' operations, leading to weaker revenue

    and margins at HT;

-- An enterprise value (EV) multiple of 5.5x is used to calculate

    a post-reorganisation valuation. Fitch calculates the recovery

    prospects for the senior unsecured debt at 72%. This includes
    the group's USD975 million 7% senior notes, and assumes a
    fully drawn term loan of USD200 million and a fully drawn
    revolving credit facility (RCF) of USD70 million. Fitch is
    also taking into account our estimate of USD434 million
    equivalent of prior-ranking debt. For our recovery
    calculation, Fitch has assumed HT's USD300 million 2.875%
    convertible bonds are subordinated to the senior unsecured
    debt;

-- While recovery prospects of 72% would generally imply a two-
    notch uplift for the instrument rating relative to the IDR,
    according to our "Country-Specific Treatment of Recovery
    Ratings Rating Criteria" the instrument rating for companies
    operating in the African countries HT operates in is capped at

    the IDR, yielding a Recovery Rating of 'RR4'/50%.

RATING SENSITIVITIES

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

-- Improvement in the operating environment of the countries in
    which HT operates or favourable change in the geographical mix

    of cash flows, continued strong market position in countries
    of operation along with FFO net leverage sustained below 5.0x
    (and below 4.5x on net debt/EBITDA basis)

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

-- FFO net leverage sustained above 6.0x (and above 5.5x on a net

    debt/EBITDA basis);

-- FFO interest coverage below 2.0x;

-- Competitive weaknesses, market-share erosion, regulatory
    pressures or shareholder distributions leading to significant
    deterioration in FCF generation;

-- Material deterioration in the operating environments of the
    countries in which HT operates;

-- Liquidity risks, including challenges in moving cash out of
    operating companies to HT to service offshore debt.

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: HT had at end-March 2022 cash of USD483
million, an undrawn credit facility of USD270 million along with
other local committed facilities. We estimate remaining liquidity
will be sufficient to cover its FCF deficit, albeit shrinking,
driven by expansionary organic investments. Refinancing risk is
limited at present with the bulk of indebtness maturing in 2025
(USD975 million bonds) and 2027 (USD300 million convertible
bonds).

Criteria Variation

Fitch applied a criteria variation to the 'Non-Financial Corporates
Exceeding the Country Ceiling Criteria', which normally require a
Country Ceiling to be assigned by the sovereign team. In this
instance, HT operates in countries that Fitch currently does not
rate. As a result, we have carried out an internal assessment,
rather than obtaining a credit opinion normally required in the 'B'
rating category, to determine the appropriate Country Ceiling for
HT.

Our internal assessment is predicated on an informal indication
received from the sovereign team in terms of both the likely
sovereign rating and Country Ceiling of the countries where HT
operates. As a result of the sovereign team's feedback, we
determined that the most appropriate Country Ceiling is 'B', in
accordance with our 'Non-Financial Corporates Exceeding the Country
Ceiling Criteria'. It should be noted that the Country Ceiling is
not a determining factor of the Foreign-Currency IDR for HT.

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.

   DEBT              RATING                        RECOVERY
   ----              ------                        --------
Helios Towers Plc     LT IDR   B+    New Rating

   senior unsecured   LT       B+    New Rating     RR4

HTA Group, Ltd

   senior unsecured   LT       B+    New Rating     RR4


MARSTON'S: Plans to Sell Up to 50 Pubs to Reduce Debt
-----------------------------------------------------
Business Sale reports that pub operator Marston's is considering
selling a portfolio of up to 50 pubs that are not considered a core
part of its operations.

Wolverhampton-based Marston's currently operates an estate of close
to 1,500 pubs across the UK, employing around 12,000 staff,
Business Sale discloses.

According to Business Sale, while the pubs being considered for
sale in the latest disposal have not yet been named, it has been
reported that the sites in the non-core portfolio are located
across England and Wales.

"As you would expect, we review our estate from time to time as
part of normal course of business.  We are potentially looking to
dispose of a small package of non-core pubs which no longer satisfy
our pub strategy," Business Sale quotes a spokesperson for
Marston's as saying.

"In the event of a successful transaction, any disposal proceeds
raised will be used to further reduce the Company's debt in line
with our stated strategy.  A further announcement will be made as
appropriate."

Earlier this year, Marston's said that it was seeking to reduce its
net debt to under GBP1 billion by 2025, Business Sale relates.  At
that time, the company reported that it had seen a return to pub
operating profit, with trading levels approaching pre-COVID levels,
Business Sale notes.


STEELCRAFT LTIMITED: Seeks Buyer to Rescue Business
---------------------------------------------------
Business Sale reports that Steelcraft Limited, an architectural
metalwork firm based in Chester-le-Street, County Durham, is
seeking a rescue buyer after being impacted by factors including
Brexit and COVID-19.

According to Business Sale, the firm's managing director says it
has a full order book and a strong base of longstanding customers.

The company has turnover of GBP1.4 million and gross profits of
GBP370,000, Business Sale discloses.  However, its turnover has
seen a sharp fall during the COVID-19 pandemic as a result of
customers deferring jobs or closing, Business Sale relates.  This
situation has been exacerbated by the impact of Brexit and the
ongoing war in Ukraine on the steel industry, Business Sale notes.

Founded in 1989, the company initially operated as a fabricator of
security grills, before expanding into the supply of products
including stairs, railings and gates.  The company's products are
supplied to a customer base largely comprised of housebuilders and
local authorities.

Northpoint, Business Sale says, has been appointed to oversee the
sale of the business, which has reportedly already generated
interest.  This has raised hopes that the company could be sold as
a going concern, although a sale out of administration is reported
to be more likely, Business Sale states.


UK ENERGY: Octopus Takes on Customers Following Collapse
--------------------------------------------------------
Gill Plimmer and Nathalie Thomas at The Financial Times report that
another small British household energy supplier has collapsed in a
sign that rising wholesale gas prices are continuing to take a toll
on the market, as well as on household energy bills.

Around 3,000 customers of UK Energy Incubator Hub, which trades as
Northumbria Energy and Neo Energy, have been transferred to Octopus
Energy, the country's fifth-largest supplier, the FT relays, citing
energy regulator Ofgem.

The transfers were made through the government's so-called supplier
of last resort process, which allows companies to recover the costs
of taking on customers from collapsed energy providers, the FT
discloses.  The Citizens Advice charity warned on July 11 that
householders were already bearing the price of supplier failures
through an additional GBP164 a year charge on their bills, the FT
recounts.

"As we enter the winter period, it will continue to be challenging
for suppliers and we may see more failures," the FT quotes Alasdair
Dorrat, a partner at consultancy Baringa, as saying.

Ofgem announced the collapse of Northumberland-based UK Energy
Incubator Hub just hours before its chief executive Jonathan
Brearley faced a grilling from MPs about domestic energy prices and
the regulator's role in Britain's retail energy crisis, which has
claimed more than 30 companies since the start of 2021, the FT
recounts.

An independent investigation commissioned by the regulator said it
had offered new entrants a "free bet", enabling them to join with
minimal risk and to exit with almost no downside, the FT notes.

UK Energy Incubator Hub had faced a series of warnings from Ofgem,
the FT discloses.

Mr. Brearley repeated claims that the crisis was triggered by a
"once in a generation" change in wholesale energy prices driven by
global geopolitical factors, but admitted that the regulator should
have done more earlier to ensure suppliers in the market were more
financially resilient to external shocks, the FT relates.

According to the FT, he also said the design of Britain's energy
price cap, which dictates bills for 23mn households, did not allow
suppliers to pass on big surges in wholesale prices quickly
enough.



                           *********


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

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

Copyright 2022.  All rights reserved.  ISSN 1529-2754.

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

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

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000.


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