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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

          Friday, September 16, 2022, Vol. 23, No. 180

                           Headlines



B E L A R U S

LLC EUROTORG: Fitch Keeps 'B-' Foreign Currency IDR on Watch Neg.


F R A N C E

ACCOR SA: Fitch Affirms BB- Rating on Subordinated Debt


G E R M A N Y

A-BEST 19: Fitch Upgrades Rating on Class E Notes From BB+
DR SCHNEIDER: Files for Bankruptcy in Coburg Court
GOERTZ: Inflation, Soaring Energy Prices Prompt Bankruptcy
LUFTHANSA: German Government Sells Remaining 20% Stake


I R E L A N D

JUBILEE CLO 2022-XXVI: S&P Assigns B-(sf) Rating on Cl. F Notes


I T A L Y

LOTTOMATICA SPA: S&P Affirms 'B' ICR, Outlook Stable


N E T H E R L A N D S

KONINKLIJKE KPN: S&P Rates New Junior Sub, Hybrid Security 'BB+'


R U S S I A

UZBEKISTAN: Fitch Affirms BB- Foreign Currency IDR, Outlook Stable


T U R K E Y

ANADOLU EFES: Fitch Retains 'BB+' LongTerm IDR on Watch Neg.


U N I T E D   K I N G D O M

BELLIS FINCO: Fitch Alters Outlook on 'BB-' LongTerm IDR to Neg.
CHEEVERS POOLE: Enters Administration, Halts Operations
HARBEN FINANCE 2017-1: Fitch Affirms B-sf Rating on Class X Debt
LF WOODFORD: Claimant Group Says GBP306MM Redress Too Paltry
MICRO FOCUS: S&P Puts 'BB-' LongTerm ICR on Watch Positive

RYE HARBOUR: Fitch Affirms B+sf Rating on Class F-R Notes
WORCESTER WARRIORS: Says Club Not Placed in Administration


X X X X X X X X

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

                           - - - - -


=============
B E L A R U S
=============

LLC EUROTORG: Fitch Keeps 'B-' Foreign Currency IDR on Watch Neg.
-----------------------------------------------------------------
Fitch Ratings is maintaining LLC Eurotorg's Long-Term
Foreign-Currency (LTFC) Issuer Default Rating (IDR) of 'B-' on
Rating Watch Negative (RWN).

The RWN reflects a high probability of a rating downgrade over the
next six months given the high level of uncertainty in the
operating and funding environment for Belarusian corporates.

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

Relative resilience of the food retail sector to economic crises
supports Eurotorg's LTFC IDR above that of the Belarusian
sovereign's 'RD' (Restricted Default). However, Belarus' Country
Ceiling of 'B-' continues to constrain Eurotorg's ratings.

KEY RATING DRIVERS

Country-Ceiling Constraint: Eurotorg's IDR is constrained by the
'B-' Country Ceiling of Belarus, reflecting current sanctions and
the possibility of new measures related to Belarus's role in
Russia's invasion of Ukraine, combined with close economic and
financial links to Russia. The Country Ceiling constraint also
underlines the company's lack of export earnings, foreign assets
and financial support from a foreign parent or strategic partners.

Financial Infrastructure Access Risks: Eurotorg currently retains
access to payment infrastructure to service its foreign-currency
liabilities. However, the risk of Eurotorg's impaired access to
liquidity in foreign currency remains very high in short-to-medium
term, as possible additional sanctions against Belarus and its
corporates may affect Eurotorg's ability to pay interest or
principal of its outstanding notes in foreign currencies. We would
likely view this event as leading to a downgrade to 'RD'.

High but Managed FX Risks: Eurotorg faces high FX risk as its debt
is primarily in foreign currencies, while its revenue is in
Belarusian roubles. To reduce FX exposure, Eurotorg converted part
of its debt and lease portfolio to Russian roubles, and launched a
tender offer to existing bondholders. As a result of this tender
offer, Fitch expects the share of hard-currency-denominated debt in
Eurotorg to fall below 20% by end-2022 from around 50% in 2021.

Inflation to Affect Operating Profitability: Fitch said, "We
project pressure on Eurotorg's operating margins from high
inflation, which will be difficult to pass on to consumers given a
prospective decrease in household income. As a result, we forecast
an up to 150bp year-on-year contraction in EBITDAR margin in 2022
from a high of 11.7% in 2021. Recently realised cost-saving
measures will support EBITDAR margin at above 10% over the medium
term under our rating case."

FCF to Remain Minimal: Fitch said, "We expect Eurotorg's free cash
flow (FCF) margin to remain positive in 2022 at around 2% on the
back of higher profitability, but to be close to zero in 2023-2025.
The latter figure is due to increased interest expenses and higher
dividend payments, partially offset by more moderate
working-capital investments more related to the growth of the
business than to improve terms with suppliers. We expect capex to
stabilise at around 1.5% of revenue in 2022-2025, in line with the
company's capex-light expansion strategy of opening primarily small
leasehold stores."

Moderate Leverage: Eurotorg has been operating under moderate
adjusted gross debt/EBITDAR of around 3.5x-4.5x over the past four
years. Fitch said, "We now expect leverage to be maintained at
3.5x-4.0x in 2022-2025, helped by management efforts to reduce the
company's FX risk exposure. This financial structure is
commensurate with a 'B' rating and in line with substantially
higher-rated peers', but the Country Ceiling constrains the IDR to
its current level."

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

Small Scale, Limited Diversification: Eurotorg has limited
geographic diversification as it operates only in Belarus. Presence
across different formats and regions of the country puts it in a
stronger position than competitors, including hard discounters, but
does not reduce concentration risks, as Belarus is a small economy.
The small size of the domestic market also leads to Eurotorg's
substantially smaller business scale (EBITDAR equivalent to around
USD250 million in 2021) than that of other Fitch-rated food
retailers.

DERIVATION SUMMARY

Fitch applies its Food-Retail Navigator framework to assess
Eurotorg's rating and position relative to peers'. Comparing
Eurotorg's rating with international retail chains, such as Tesco
Plc (BBB-/Stable), it has smaller business scale and more limited
geographic diversification, which is partly offset by stronger
growth prospects and structurally greater profitability in the
Belarusian food retail market.

Relative to Bellis Finco (ASDA, BB-/Stable), Eurotorg is rated
three notches lower as its smaller size, higher financial leverage
and exposure to material FX risk are only partially balanced by its
stronger market position and bargaining power and superior
profitability.

Furthermore, Eurotorg's ratings take into consideration the
higher-than-average systemic risks associated with the Belarusian
business and jurisdictional environment whereas international peers
operate in stronger operating environments, and are constrained by
Belarus' Country Ceiling.

No parent-subsidiary linkage was applied to these ratings.

KEY ASSUMPTIONS

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

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

  - Selling space CAGR of 4% in 2022-2025

  - Like-for-like sales growth of 8.3% and 7.4% in 2022 and 2023,
    respectively, and around 3.5% to 2025

  - EBITDA margin to gradually decline to 7% by 2025 due to higher

    logistic costs and our expectation that the company will only
    be able to partially pass on cost inflation to selling prices

  - Working-capital outflow of around BYN94 million in 2022,
    followed by around BYN60 million annually to 2025

  - Capex at around BYN100 million-BYN130 million a year over
    2022-2025

  - Dividends between USD35 million and USD40 million a year over
    2023-2025

  - No M&A in 2022-2025

RECOVERY ASSUMPTIONS

Eurotorg's remaining USD165 million loan participation notes (LPN)
are issued by Bonitron Designated Activity Company, an SPV
domiciled in Ireland, which is restricted in its ability to do
business other than issue notes and provide a loan to Eurotorg. The
notes are secured by a loan to Eurotorg, which ranks equally with
the company's other senior unsecured obligations. Eurotorg is the
major operating company within the Eurotorg group, accounting for
most of the group's assets and EBITDA.

Fitch's recovery analysis assumes that Eurotorg would be considered
a going concern (GC) in bankruptcy and that the company would be
reorganised rather than liquidated. We have assumed a 10%
administrative claim.

Eurotorg's GC EBITDA of USD110 million is 43% below Fitch-adjusted
EBITDA of USD192 million for 2021. It reflects the company's high
FX risk and Fitch's view of a sustainable, post-reorganisation
EBITDA level, upon which we based the valuation of the company.

Fitch said, "We use an enterprise value/EBITDA multiple of 4.0x to
calculate a post-reorganisation valuation reflecting a mid-cycle
multiple. This is in line with the enterprise-value multiple we use
for Ukrainian poultry producer MHP. For the debt waterfall
assumptions, we used Eurotorg's debt at 30 June 2022 pro forma for
the completion of the tender offer by which the outstanding amount
under its Eurobonds is reduced to USD97.7 million. Lease
liabilities were not included in the debt waterfall, in line with
our criteria."

Eurotorg's USD42 million of secured debt ranks prior to LPNs in the
waterfall. For the purpose of recovery calculation, we used LPN
amount of around USD97.7 million, representing an external debt
obligation, as around USD53 million is repurchased by the company
but not redeemed. The waterfall analysis generated a ranked
recovery for senior unsecured LPNs in the 'RR3' band, indicating a
higher rating than the IDR as the waterfall analysis output
percentage on current metrics and assumptions was 65%. However, the
LPNs are rated in line with Eurotorg's IDR of 'B-' as notching up
is not possible due to the Belarusian jurisdiction. Therefore, the
waterfall analysis output percentage is capped at 50%/'RR4'.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to an
Upgrade:

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

  -- Successful execution of expansion strategy as demonstrated by
growing like-for-like sales and stable profitability, leading to
funds from operations (FFO) adjusted gross leverage and adjusted
gross debt/operating EBITDAR below 5.0x

  -- FFO fixed-charge coverage and operating
EBITDAR/(interest+rents) trending towards 2x on a sustained basis

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

  -- Adequate access to external liquidity

Factors that Could, Individually or Collectively, Lead to Rating
Affirmation and Stable Outlook:

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

Factors that Could, Individually or Collectively, Lead to a
Downgrade:

  -- Loss of access to international transaction infrastructure
leading to inability to service foreign-currency liabilities

  -- Sustained operating under-performance, including declining
like-for-like sales and profitability leading to FFO adjusted gross
leverage and adjusted gross debt/operating EBITDAR above 6.0x

  -- FFO fixed-charge coverage and operating
EBITDAR/(interest+rents) below 1.5x on a sustained basis

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

  -- Downward revision of Belarus's Country Ceiling

LIQUIDITY AND DEBT STRUCTURE

Sufficient Liquidity: At end-June 2022, Eurotorg had sufficient
liquidity as reported cash of over USD50 million was able to cover
a material part of short-term debt of USD65 million and will be
supported by expected positive FCF in 2022. Fitch said, "We do not
expect any major near-term refinancing needs, with the largest
maturity in 2025 (Eurobond). However, we see high uncertainty
regarding the functioning of the financial system in Belarus due to
various sanctions imposed on the country, which might hinder the
company's ability to secure foreign-currency funding in the short-
to-medium term."

ISSUER PROFILE

Eurotorg is the largest retailer in the Belarus grocery retail
market. As of June 30, 2022, its retail store portfolio consisted
of 163 rural convenience stores, 733 urban convenience stores, 117
supermarkets and 35 hypermarkets.

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
   ----                        ------        --------   -----

LLC Eurotorg           LT IDR    B-  Rating Watch         B-
                                     Maintained

Bonitron Designated
Activity Company

  senior unsecured     LT        B-  Rating Watch On RR4  B-




===========
F R A N C E
===========

ACCOR SA: Fitch Affirms BB- Rating on Subordinated Debt
-------------------------------------------------------
Fitch Ratings has assigned hotel operator Accor S.A.'s senior
unsecured debt a Rating Recovery (RR) of 'RR4', while affirming the
senior unsecured rating at 'BB+'. Fitch also assigned the
subordinated debt, in the form of hybrid securities, a Recovery
Rating of 'RR6', and affirmed its 'BB-' subordinated rating.

Accor's 'BB+' Long-Term Issuer Default Rating (IDR) reflects the
company's leading market position, global diversification and
strong financial flexibility with good liquidity headroom, which
should enable Accor to navigate the slow recovery from the
pandemic. Fitch expects the recovery post-pandemic to accelerate
from 2022, especially for leisure demand, as mobility restrictions
are lifted.

Accor has committed to streamlining its cost structure and align it
with an asset-light business model. We expect these savings,
together with other cash-preservation measures, to drive
deleveraging to a level consistent with the 'BB' rating category,
despite higher inflationary pressures in 2023 and soft consumer
demand. The maintenance of a conservative financial policy and
solid liquidity are key to maintaining its Stable Outlook.

KEY RATING DRIVERS

Average Recoveries for Senior Unsecured: Accor's senior unsecured
rating of 'BB+' is at the same level as its IDR, as per Fitch's
Corporates Recovery Ratings and Instrument Ratings Criteria. This
translates into a Recovery Rating of 'RR4' and average recovery
prospects (31%-50%). However, Accor's hybrid bonds are deemed a
subordinated debt class, hence rated 'BB-' or two notches below the
IDR, with a Recovery Rating of 'RR6' and low recovery prospects
(0-10%), in line with Fitch's criteria.

Long-Lasting Pandemic Delays Deleveraging: Even with a strong
summer season, Fitch said, "We expect 2022 credit metrics will
remain highly disrupted by pandemic effects. We expect no
meaningful deleveraging before 2023, which should be the first year
approaching pre-pandemic levels. We assume normalisation of trading
conditions from 2023, although we factor in a permanent loss of
some business travel, resulting from a bias in some corporates'
policies towards virtual meetings. We expect a continued focus on
post-dividend free cash flow (FCF) generation and a conservative
financial policy to support deleveraging."

Turnaround in 2022: Fitch said, "While we expect Accor's EBITDA
margin to return to positive territory, we expect it to remain
significantly below normalised levels in 2022, due to the legacy of
an asset-heavy structure and a slow recovery of international
business travel, before it picks up towards 20%-21% by 2023-2024.
We also expect Accor to have the capacity to progressively adapt
its cost base in line with its announced restructuring plan to
return to positive EBITDA in 2022. EBITDA should start to normalise
in 2023, though this may be slowed by inflationary pressures."

FCF to Rebound in 2023: Free cash flow (FCF) generation is only
expected to significantly rebound from 2023, on the back of
moderate capex needs and an assumed return to dividend
distributions that is compatible with the company's financial
discipline. Accor has said it will continue working on restoring
its pre-Covid credit profile.

Liquidity Remains Strong: Accor entered the pandemic with a very
large liquidity cushion. This cash reserve (in the form of cash on
balance sheet and access to a revolving credit facility; (RCF)) has
enabled Accor to withstand the crisis, and will remain comfortable
in 2022. The absence of imminent debt maturities reinforces the
liquidity position. Fitch expects Accor to deploy cash only for
under highly volatile circumstances and to maintain a cautious
financial policy focused on cash preservation, which underpins its
Stable Outlook.

Asset-Light Transformation Ongoing: Accor's business model is
mostly asset-light (97% of room portfolio) after the sale of Orbis
hotels in March 2020. The abrupt collapse of revenue in 2020
revealed that Accor's cost structure has yet to adapt to this
business model, and led Accor to implement the Reset plan. We
expect this plan would generate EUR200 million recurrent savings
from 2023, and implementation is so far on track. Once complete,
the fee nature of the asset-light model will help mitigate EBITDA
volatility in a cyclical sector, which remains subject to
fluctuations in occupancies and pricing.

Diversification Will Boost Recovery: Accor's economy segment
(including all Ibis brands) has demonstrated better resilience
during crises. As of end-June 2022, around 40% of Accor's portfolio
was in the economy segment, where revenue per available room
(RevPAR) variations have outperformed the rest of Accor's
categories since the beginning of the pandemic. Global
diversification will also aid Accor's recovery, as travel
restrictions differ by continent.

DERIVATION SUMMARY

Accor's IDR is several notches above that of most European
competitors such as NH Hotel Group S.A. (B/Stable), due to its
larger scale and diversification across segments and geographies.
Accor's size of system network remains smaller than that of major
global peers, such as Marriott International Inc. and
Intercontinental Hotel Group by number of rooms, but it has wider
geographical diversification after having consistently expanded
across continents, including in Asia.

Accor is less profitable and more leveraged than Hyatt Hotels
Corporation (BBB-/Negative) and more leveraged than Whitbread PLC
(BBB-/Stable). Fitch expects Accor's profitability to improve to
levels that are more in line with those of asset-light hotel
operators in the medium term, given the group's ongoing
business-model transformation.

KEY ASSUMPTIONS

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

  -- Revenue for 2022 at around 25% below 2019 levels, driven by
     revenue per available room (RevPAR) pressures across all
     regions

  -- EBITDA turning positive in 2022 with margin recovering
     towards 20%-21% by 2023-2024

  -- Capex on average at EUR200 million per year to 2025

  -- Dividend payments suspended for 2022

RATING SENSITIVITIES

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

- Sustained recovery of the lodging market, enabling rapid
   recovery of RevPAR and fees to pre-crisis levels, coupled with
   successful implementation of the cost-cutting plan

- Lease-adjusted net debt/EBITDAR (adjusted for variable leases)
   trending towards 3.5x coupled with contained medium-term
   shareholder distributions and M&A activity

- Lease-adjusted EBITDAR/gross interest plus rents above 2.5x

- Low- to mid-single digit FCF margin

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

- A deeper and longer economic disruption as part of, or
   following, the Covid-19 pandemic than currently modelled by
   Fitch, leading to a meaningful delay in normalisation of
   operations

- Lease-adjusted net debt/EBITDAR (adjusted for variable leases)
   sustainably above 4.5x

- Lease-adjusted EBITDAR/gross interest plus rents below 1.8x

- Continuing negative FCF

LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity: Accor had EUR1.2 billion of readily available
cash at end-June 2022 in addition to its undrawn RCF of EUR1.2
billion (maturing in June 2025). This, along with Accor's ability
to adapt its financial policies, capex and M&A plans to preserve
financial flexibility, supports the current rating through our
forecast downturn.

Accor's refinancing in 2019 extended its debt maturity profile with
no material maturities before 2024.

Ring-fenced AccorInvest: Accor will continue to own 30% of
AccorInvest until at least mid-2023, but the latter's debt is fully
ring-fenced and Accor is not liable for it.

ISSUER PROFILE

Accor is a global operator in the hotel industry and the European
leader, with a portfolio of approximately 778,000 rooms.
Ninety-seven per cent of the rooms are under management or
franchise contracts and 44% of the rooms were in Europe as of June
2022. Main brands include Ibis, Novotel, Mercure and Pullman.

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
   ----                ------              --------   -----
Accor SA

   senior unsecured    LT BB+  Affirmed    RR4        BB+

   subordinated        LT BB-  Affirmed    RR6        BB-



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

A-BEST 19: Fitch Upgrades Rating on Class E Notes From BB+
----------------------------------------------------------
Fitch has upgraded Asset-Backed European Securitisation Transaction
Nineteen UG's (A-BEST 19) class B to E notes and affirmed the class
A notes.

   Debt                  Rating                Prior
   ----                  ------                -----

Asset-Backed European Securitisation Transaction Nineteen UG

   Class A XS2247538023  LT  AAAsf  Affirmed   AAAsf
   Class B XS2247538452  LT  AA+sf  Upgrade    AAsf
   Class C XS2247538619  LT  A+sf   Upgrade    Asf
   Class D XS2247538882  LT  A-sf   Upgrade    BBBsf
   Class E XS2247539005  LT  BBB-sf Upgrade    BB+sf

TRANSACTION SUMMARY

A-BEST 19 is a two-year revolving securitisation of auto loan
receivables advanced to German private and commercial borrowers and
originated/serviced by FCA Bank S.p.A. Niederlassung Deutschland, a
branch of FCA Bank SpA (BBB+/Rating Watch Positive/F1), itself
belonging to the Stellantis group. Its two-year revolving period is
scheduled to end in November 2022.

KEY RATING DRIVERS

Loan Type Drives Default Risk: Fitch has determined loan type as
the key default performance driver and therefore derived individual
default assumptions split by loan type. As the end of the revolving
period is approaching in November, Fitch no longer assumes a
migration to the riskier loan types, which has a positive effect on
the weighted average (WA) default assumption and is the main reason
for the upgrades. We have also reduced our balloon loans base case
by 50bp to 3.5% to account for updated balloon loan vintages
provided in 2021.

The default base cases for formula and amortising loans (2.5% and
3.0%) are unchanged as Fitch has not received updated data on these
sub-pools and expects to see some stress on borrowers due to the
increasing costs of living in Germany.

These factors resulted in a WA base-case default rate of 3.2% and a
WA 'AAA' default multiple of 4.8x for the total portfolio.

Default Levels Reflect Uncertain Macroeconomic Environment: The
previously anticipated risks from the Covid-19 crisis seem more
remote due to very strong government support over the recent years.
However, Fitch expects to see some portfolio deterioration due to
the volatile macroeconomic environment with the war in Ukraine,
high inflation and the resulting increase in the energy and living
costs. The deterioration potential is reflected in our base cases
that are set below those for the financial crisis but above most
recent vintages. Fitch has kept its recovery base case at 55% in
line with its initial rating analysis.

Low Lifetime Excess Spread: The servicer charges an annual
contractual fee of 1% on performing and defaulted assets, while the
pool's annual yield is at 2.8% as of July 2022. Interest on the
rated notes is paid senior to any principal redemption. In a
stressed scenario, interest in excess of the issuer's expenses and
release amounts from the amortising reserve may be insufficient to
cure defaults and principal payments may be needed to cover
expenses.

Servicer- and Counterparty-Related Risks Addressed: Fitch deems
servicer discontinuity risk to be reduced even though there is no
back-up servicer in place. The assets are standard, which allows
for a simple transfer to a different servicer and the amortising
liquidity reserve provides at least four months of interest and
senior expenses coverage for the class A to E notes. Other
counterparty risks are adequately reduced in line with Fitch's
Structured Finance and Covered Bonds Counterparty Rating Criteria.

RATING SENSITIVITIES

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

Unanticipated increases in default rates or decreases in recovery
rates producing larger losses than our current assumptions could
result in negative rating action on the notes. For example, a
simultaneous increase of our default base case by 25% and decrease
of our recovery base case by 25% would lead to downgrades of one
notch for the class A notes and three notches for the class B, C, D
and E notes.

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

A better-than-expected performance of assets or an increase in
recovery rates could have a positive impact on the ratings. For
example, a simultaneous decrease of our default base case by 25%
and increase of our recovery base case by 25% would lead to
upgrades of one notch for the class B notes, three notches for the
class C and D notes and four notches for the class E notes.

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.


DR SCHNEIDER: Files for Bankruptcy in Coburg Court
--------------------------------------------------
Teller Report reports that German automotive supplier Dr. Schneider
from Kronach in Upper Franconia has filed for bankruptcy.

The company announced that the Schneider group of companies wanted
to restructure itself with this step, Teller Report relates.

According to Teller Report, the management therefore submitted an
application for insolvency for the group companies in Germany to
the district court in Coburg on Sept. 7.

Around 2,000 employees are affected, Teller Report states.

The foreign subsidiaries in the USA, China, Spain and Poland are
not affected by the insolvency, Teller Report notes.

Overall, the group claims to have more than 4,000 employees
worldwide. The company manufactures components for vehicle
interiors such as panels or ventilation systems.

The provisional insolvency administrator is attorney Joachim Exner
from the law firm Dr. Beck and Partners have been appointed, Teller
Report relates.

The wages and salaries of the employees are initially secured for
three months via the insolvency money from the Federal Employment
Agency, according to Teller Report.

Production should continue without restrictions, Teller Report
notes.


GOERTZ: Inflation, Soaring Energy Prices Prompt Bankruptcy
----------------------------------------------------------
Xinhua reports that fashion chain Goertz, which has 160 stores in
Austria and Germany, files for bankruptcy.

Inflation with soaring energy prices "led to enormous buying
restraint in stores and in online business," Xinhua quotes Goertz
as saying.

According to Xinhua, the company wants to maintain operations and
secure jobs with the help of insolvency compensation from the
Federal Employment Agency (BA).


LUFTHANSA: German Government Sells Remaining 20% Stake
------------------------------------------------------
Victoria Waldersee at Reuters reports that the German government
has sold off its 20% stake in Lufthansa acquired during the
coronavirus pandemic, it said on Sept. 13.

The state's economic stabilisation fund (WSF), which saved
Lufthansa from bankruptcy during the pandemic with a bailout
package totalling EUR9 billion (US$8.97 billion), had progressively
reduced its stake in recent years with the aim of offloading it
completely by October of 2023, Reuters relates.

According to Reuters, it has now sold its last remaining shares to
international investors in a block placement for EUR455 million,
the fund said in a statement on Sept. 13.

It earned a total of EUR1.07 billion from selling its shares,
yielding a EUR760 million profit from the investment, Reuters
discloses.




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JUBILEE CLO 2022-XXVI: S&P Assigns B-(sf) Rating on Cl. F Notes
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S&P Global Ratings assigned credit ratings to Jubilee CLO 2022-XXVI
DAC's class A, B-1, B-2, C, D, E, and F notes. At closing, the
issuer also issued subordinated notes.

The ratings reflect S&P's assessment of:

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

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

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

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

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

  Portfolio Benchmarks
                                                       CURRENT
  S&P weighted-average rating factor                  2,820.50
  Default rate dispersion                               445.02
  Weighted-average life (years)                           5.26
  Obligor diversity measure                             109.28
  Industry diversity measure                             20.11
  Regional diversity measure                              1.25

  Transaction Key Metrics
                                                       CURRENT
  Portfolio weighted-average rating
   derived from S&P's CDO evaluator                          B
  'CCC' category rated assets (%)                         0.25
  Covenanted 'AAA' weighted-average recovery (%)         35.75
  Covenanted weighted-average spread (%)                  4.05
  Covenanted weighted-average coupon (%)                  4.65

Rating rationale

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

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

"In our cash flow analysis, we used the EUR400 million target par
amount, the covenanted weighted-average spread (4.05%), the
reference weighted-average coupon (4.65%), and the weighted-average
recovery rates of the portfolio. We applied various cash flow
stress scenarios, using four different default patterns, in
conjunction with different interest rate stress scenarios for each
liability rating category."

The transaction also features a principal redemption mechanism for
the class F notes (turbo redemption). Via the turbo redemption, 30%
of remaining interest proceeds available before equity distribution
are used to pay down principal on the class F notes. S&P has not
given credit to turbo redemption in its cash flow analysis,
considering some of the senior payments in the waterfall and the
ability to divert interest proceeds to purchase workout loans and
bankruptcy exchange.

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

"Until the end of the reinvestment period on March 12, 2027, the
collateral manager may substitute assets in the portfolio for so
long as our CDO Monitor test is maintained or improved in relation
to the initial ratings on the notes. This test looks at the total
amount of losses that the transaction can sustain as established by
the initial cash flows for each rating, and it compares that with
the current portfolio's default potential plus par losses to date.
As a result, until the end of the reinvestment period, the
collateral manager may through trading deteriorate the
transaction's current risk profile, as long as the initial ratings
are maintained.

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

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

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

"Taking the above factors into account and following our analysis
of the credit, cash flow, counterparty, operational, and legal
risks, we believe that our ratings are commensurate with the
available credit enhancement for all the rated classes of notes.

"In addition to our standard analysis, to provide an indication of
how rising pressures among speculative-grade corporates could
affect our ratings on European CLO transactions, we have also
included the sensitivity of the ratings on the class A-1 to E notes
to five of the 10 hypothetical scenarios we looked at in our
publication, "How Credit Distress Due To COVID-19 Could Affect
European CLO Ratings," published on April 2, 2020. The results
shown in the chart below are based on the actual weighted-average
spread, coupon, and recoveries.

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

Environmental, social, and governance (ESG) factors

S&P said, "We regard the exposure to ESG credit factors in the
transaction as being broadly in line with our benchmark for the
sector. Primarily due to the diversity of the assets within CLOs,
the exposure to environmental credit factors is viewed as below
average, social credit factors are below average, and governance
credit factors are average. For this transaction, the documents
prohibit (and or for some of these activities there are revenue
limits or can't be the primary business activity) assets from being
related to certain activities, including, but not limited to, the
following: coal, speculative extraction of oil and gas, private
prisons, controversial weapons, non-sustainable palm oil
production, speculative transactions in soft commodities, tobacco,
hazardous chemicals and pesticides, trade in endangered wildlife,
pornography, adult entertainment or prostitution, civilian weapons
or firearms, payday lending, activities that adversely affect
animal welfare. Accordingly, since the exclusion of assets from
these industries does not result in material differences between
the transaction and our ESG benchmark for the sector, no specific
adjustments have been made in our rating analysis to account for
any ESG-related risks or opportunities."

The transaction securitizes a portfolio of primarily senior-secured
leveraged loans and bonds, and it will be managed by Alcentra Ltd.

  Ratings List

  CLASS    RATING      AMOUNT     INTEREST RATE (%)     CREDIT
                     (MIL. EUR)                    ENHANCEMENT (%)

  A        AAA (sf)     230.80      3mE + 2.12       42.30

  B-1      AA (sf)       43.40      3mE + 3.68       30.20

  B-2      AA (sf)        5.00            6.00       30.20

  C        A (sf)        21.80      3mE + 4.77       24.75

  D        BBB- (sf)     25.90      3mE + 6.67       18.28

  E        BB- (sf)      17.90      3mE + 8.20       13.80

  F        B- (sf)        9.60     3mE + 11.00       11.40

  Subordinated  NR       37.40             N/A         N/A

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




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LOTTOMATICA SPA: S&P Affirms 'B' ICR, Outlook Stable
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S&P Global Ratings affirmed its 'B' issuer rating on Italy-based
gaming operator Lottomatica SpA and its 'B' issue rating on its
EUR1,215 million existing senior secured notes, due 2025. S&P also
affirmed its 'CCC+' issue rating on the EUR400 million senior
secured payment-in-kind (PIK) notes issued by Gamma Bondco and due
2026.

S&P assigned a 'B' issue rating to the proposed senior secured
notes and a recovery rating of '3'.

The stable outlook indicates that S&P expects Lottomatica's
earnings to grow further over the next 12 months, on the back of
post-COVID-19 recovery and the integration of the business acquired
from International Game Technology (IGT), leading to adjusted
EBITDA in excess of EUR400 million per year (excluding the
contribution of planned M&A) and substantial free operating cash
flows (FOCF).

Lottomatica intends to raise EUR350 million in new senior secured
notes to prepare for future acquisitions. Lottomatica announced it
is considering issuing additional EUR350 million notes to pre-fund
anticipated acquisitions. Despite the likely high cost of the new
debt, Lottomatica and its shareholders aim to pursue strategic
bolt-on opportunities, leveraging on the group's growing earnings
base. The proceeds will be held in escrow and released only to
pursue strategic acquisitions. S&Ps aid, "We understand the group
has already identified potential targets, ranging from small
bolt-ons to transformative acquisitions, and is currently in
advanced diligence and negotiation with select midsize targets. The
company's main objectives in terms of mergers and acquisitions
(M&A) are to gain scale in online and retail, and to expand into
other regulated European markets. Despite the company's strong
record of successful value-accretive acquisitions, we note
acquisitions always carry some integration and other risks.
Moreover, the uncertainty around the potential targets' country,
business, valuation, and funding make any quantitative appreciation
of future M&A in our credit metrics difficult to accurately
ascertain."

The proposed transaction highlights the sponsor's aggressive
financial policy. The issuance will increase S&P Global
Ratings-adjusted leverage to 5.2x (excluding any EBITDA
contribution from planned M&A), compared with 4.5x in our previous
base case, while reducing the group's financial flexibility in an
uncertain economic environment. The proposed issuance comes less
than a year after the group issued EUR400 million in subordinated
PIK notes to pay an exceptional dividend to Apollo, and about 17
months after it issued EUR575 million in notes to partially finance
the acquisition of IGT's Italian unit.

The company's performance strongly rebounded in the first half of
2022. The group reported revenue of over EUR800 million and S&P
Global Ratings-adjusted EBITDA of over EUR215 million during this
period. Performance was supported by the rebound in sport betting
and gaming machines, after various quarters of restricted
activities due to COVID-19. Earnings also benefitted from the
successful integration of the acquired IGT business-to-consumer
(B2C) business, which enabled the group to strengthen its presence
in the fast-growing, highly profitable online segment. In the last
two reported quarters, online activities represented 21% of revenue
and 39% of reported EBITDA. S&P forecasts that EBITDA margins will
improve further in the medium term, because the group identified
additional synergies from the integration of the acquired IGT B2C
business.

S&P said, "Our base case assumes that FOCF generation will be
slightly positive in 2022, and will exceed EUR80 million from 2023.
In 2022, FOCF generation will be constrained by elevated interest
expenses, EUR125 million in IGT earn-outs, and about EUR30 million
more in integration and restructuring costs related to the IGT
acquisition. In our base case, we assume the proposed EUR350
million notes will pay an 8.5% margin, adding around EUR35 million
to the annual interest on Lottomatica's existing notes (EUR70
million) and on Gamma Bondco's payment-in-kind (PIK) notes (EUR32
million). Consequently, we expect the company will generate only
about EUR30 million FOCF in 2022, before starting to generate
material FOCF of above EUR90 million per year from 2023. These
forecasts exclude any eventual FOCF contribution from planned M&A.
We assume all interest will be paid in cash, although the group
could switch to paying Gamma Bondco's noteholders interest in kind,
to preserve the company's liquidity position. In this case, FOCF
generation and liquidity would benefit from EUR32 million in
interest savings, but debt would capitalize at around EUR35 million
per year, increasing leverage.

"Our rating is constrained by regulatory uncertainty in Italy,
particularly around future concession renewals. This highlights the
risks related to Lottomatica's exposure to a single country. The
group's betting concessions expired in 2016, and have been renewed
annually since then, for an annual fee that is now fixed at about
EUR20 million per year until June 30, 2024. Gaming machine
concessions were extended for free until June 2023, in compensation
for the lockdown closures; we assume these will be renewed for an
annual fee of EUR25 million thereafter. In our base case, we assume
the government will continue to extend the group's licenses for a
total annual fee of EUR45 million. However, we cannot exclude the
possibility that the government will instead launch a tender to
grant nine-year concessions, which would cost Lottomatica an
upfront renewal fee of about EUR400 million. This would have a
significant impact on the group's liquidity position, at a time
when the possibility of future acquisitions make cash flows
particularly difficult to forecast. Historically, the Italian
regulatory regime has been supportive of the gaming industry.
However, future regulatory developments are difficult to predict
and any adverse change in taxes, renewal fees, minimum pay-outs,
restrictions in the number of gaming machines, or on online
activity, could materially depress the company's revenue,
profitability, cash flow generation, and liquidity.

"The stable outlook indicates that we expect Lottomatica to swiftly
recover from the pandemic and to successfully complete its
integration of the acquired IGT B2C business. We forecast that
adjusted EBITDA will increase to well over EUR400 million per year
and FOCF generation to well above EUR80 million, while adjusted
leverage declines toward 4.5x by 2023 (excluding the contribution
of planned M&A). We also assume the group will use the proceeds of
the new issuance to pursue value-accretive acquisitions."

S&P could lower the rating in the next 12 months, if Lottomatica's
credit metrics do not improve in line with our base case.
Specifically, S&P could lower the rating because of one or more of
the following:

-- There is a heightened risk of a specific default event, such as
debt purchase below par, including of Gamma Bondco's PIK notes; a
distressed exchange; or restructuring;

-- Operating earnings demonstrate significant weakness, such that
adjusted leverage increases above 5.5x and funds from operations
(FFO) remain below 12% for a long period.

FOCF after leases, earn-outs, and interest on Gamma Bondco's notes
deteriorates such that the group cannot generate meaningful
structurally positive cash flows.

An upgrade is unlikely at this stage, given the financial sponsor
ownership. That said, S&P could consider an upgrade if
Lottomatica's business and financial standing strengthened
significantly. Ratings upside could follow a record of enlarged
scale and growth in earnings, and demonstrated product, channel,
and earnings diversity. An upgrade would be contingent on leverage
well below 4x and FOCF to debt increasing beyond 10% on a
sustainable basis, with a clear commitment from the financial
sponsor to maintain conservative credit metrics within these
thresholds for the long term.

Lottomatica is a leading Italian gaming company operating in three
main segments. As of June 2022, the group's business mix
comprised:

-- Gaming machines (including amusement with prizes (AWPs), video
lottery terminals (VLTs) and management of owned gaming halls): 58%
of revenue.

-- Sports betting and gaming through the retail network (retail
betting): 22% of revenue.

-- Online sports betting and gaming (online betting): 20% of
revenue.

In 2022, S&P expects the group to generate EUR1,500
million-EUR1,600 million in revenue and EUR400 million-EUR410
million in adjusted EBIDTA.

Financial sponsor Apollo Global acquired the company in 2020.

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

S&P said, "Social factors are a moderately negative consideration
in our credit rating analysis of Lottomatica. Like most gaming
companies, Lottomatica is exposed to regulatory and social risks
and the associated costs related to increasing player health and
safety measures, prevention of money laundering, and changes to
gaming taxes and laws. We think Lottomatica's exposure to a single
regulatory regime accentuates these risks. Governance factors are a
moderately negative consideration, 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 generally finite holding periods and a
focus on maximizing shareholder returns."




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KONINKLIJKE KPN: S&P Rates New Junior Sub, Hybrid Security 'BB+'
----------------------------------------------------------------
S&P Global Ratings assigned its 'BB+' issue-level rating to Dutch
telecom operator Koninklijke KPN N.V.'s proposed junior
subordinated hybrid security. The proceeds of the new issue will be
used to finance or refinance eligible green projects as defined
under KPN's Green Bond Framework. The rating reflects S&P's
notching for subordination and optional interest deferability. It
assesses the security as having intermediate equity content until
the first reset date.

S&P said, "We view this as a liability management transaction that
will enable KPN to replace its existing $600 million (EUR465
million swapped) hybrid security, which it issued in 2013 and has a
first call date in March 2023. Because of this, we now view the
equity content of the later hybrid as minimal, though this does not
change our view of KPN's intent regarding the other hybrids in its
capital structure.

"We categorize the proposed security as having intermediate equity
content because it is subordinated in liquidation to all of KPN's
senior debt obligations, cannot be called for at least five years,
and is not subject to features that could discourage or materially
delay deferral."

S&P derives its 'BB+' issue-level rating on the security by
notching down from our 'BBB' issuer credit rating on KPN. The
two-notch difference reflects its notching methodology, which calls
for deducting:

-- One notch for subordination because our long-term issuer credit
rating on KPN is 'BBB-' or above; and

-- An additional notch for payment flexibility because the
deferral of interest is at the option of the issuer.

S&P said, "The notching indicates we consider it relatively
unlikely that the issuer would defer interest. Should our view
change, we may increase the number of notches we deduct to derive
the issue-level rating.

"In addition, given our view of the intermediate equity content of
the proposed security, we allocate 50% of the related payments on
the security as a fixed charge and 50% as equivalent to a common
dividend. The 50% treatment of principal and accrued interest also
applies to our adjustment of its debt."

Features of the hybrid instrument

S&P understands that the proposed security and coupons are intended
to constitute the issuer's direct, unsecured, and deeply
subordinated obligations, ranking senior only to its common
shares.

The first interest reset date will be in December 2027, 5.25 years
from issuance. KPN can redeem the security from the first call date
in September 2027, which is at least five years after issuance, to
the first interest reset date in December 2027, and on every coupon
payment date thereafter. The securities have no stated maturity,
but the company can call them at any time for a tax, rating, or
accounting event. In addition, KPN has the ability to redeem the
instrument any time through a make-whole redemption option, which
S&P understands the company has no intention to exercise; moreover,
this would be at a premium, and it does not therefore consider this
type of make-whole clause as a call feature in our hybrid
analysis.

If any of these events occur, KPN intends to replace the hybrid but
is not obliged to do so. In S&P's view, this statement of intent
currently mitigates the issuer's ability to repurchase the
security.

The interest deferral doesn't constitute an event of default and
there are no cross defaults with the senior debt instruments. In
addition, the hybrid's terms allow KPN to choose to defer interest
payments on the proposed security--it has no obligation to pay
accrued interest on an interest payment date. That said, if KPN
declares or pays an equity dividend or interest on equally ranking
securities, or if it redeems or repurchases shares or equally
ranking securities, it is required to settle any outstanding
deferred interest payments and the interest accrued thereafter in
cash.

S&P said, "We understand that the interest to be paid on the
proposed security will increase by 25 basis points (bps) in
December 2032 and by a further 75 bps in December 2047. We consider
the cumulative 100 bps increase in interest to be material under
our criteria, which provides KPN with an incentive to redeem the
instrument. Given that KPN has not committed to replacing the
instrument after the second increase, we are unlikely to recognize
the instrument as having intermediate equity content once its
economic maturity falls below 20 years, which would occur in
December 2027.

"Until this date, we expect to classify the instrument as having
intermediate equity content. We could revise our assessment if we
think that the issuer is likely to call the instrument because it
is about to lose its intermediate equity content treatment.
However, KPN has stated that it intends to maintain or replace the
instrument."




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UZBEKISTAN: Fitch Affirms BB- Foreign Currency IDR, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has affirmed Uzbekistan's Long-Term Foreign-Currency
Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook.

KEY RATING DRIVERS

Credit Fundamentals, Geopolitical Shock: Uzbekistan's ratings
balance robust external and fiscal buffers, low government debt and
a record of high growth relative to 'BB' rated peers, against high
commodity dependence, high inflation and structural weaknesses in
terms of low GDP per capita and weak institutional and governance
levels.

Uzbekistan has demonstrated resilience to the initial impact of the
war in Ukraine and sanctions against Russia. Nevertheless,
uncertainty regarding the duration and outcome of the conflict, as
well as its implications for the global economy, the likelihood of
a protracted contraction in Russia, the risk of rouble volatility,
vulnerability to secondary sanctions or the return of migrant
workers continue to represent downside risks.

Resilient Growth: Growth continues to demonstrate resilience to
external shocks. The economy expanded by 5.4% in 1H22 due to
favourable export prices, a supportive fiscal stance, a significant
increase in remittances and an easing of exchange rate pressures.
As a result, we have revised up our 2022 growth forecast to 5.1%
from 3.1%. We expect growth to ease to 4.7% in 2023 due to weaker
global growth, but reach estimated potential of 5.5% in 2024
reflecting gradual fiscal consolidation and reforms that will
positively affect agriculture, construction and industrial
production.

Lower Current Account Deficit: The current account deficit (CAD) is
likely to decline to 2.1% of GDP in 2022, its lowest level since
2017, due to strong growth in gold and non-gold exports and a large
increase in personal transfers (96% yoy or USD6.5 billion in 1H22).
Russia remains Uzbekistan's second main trading partner and the
majority of export and transfers are being settled in US dollars
rather than roubles. Although we expect the CAD to widen to 4.1% of
GDP and 5.4% in 2023 and 2024, respectively, lower fiscal deficits,
moderate credit growth and tighter global financing conditions will
likely mitigate upside risks to the CAD trajectory. Moreover,
exports prospects are favoured by reforms in the mining, textile
and agricultural sectors.

Strong External Balance Sheet: International reserves will remain
robust and average USD33.5 billion in 2023-2024. Reserve coverage,
at nine months of current external payments (CXP), and external
liquidity, measured by the ratio of the country's liquid external
assets to its short-term external liabilities, at 219% in 2024,
will remain higher than peers (five months of CXP and 176%,
respectively). The share of gold in international reserves remains
high at (61%). Increased external financing costs and reduced risk
appetite will likely slow the pace of external debt accumulation
for banks and the private sector.

Moderate Inflation Shock, Tight Monetary Stance: After a 300bp hike
in mid-March, the central bank lowered its policy rate twice by
100bp to 15% due to appreciation of the Uzbek som and easing of
inflation expectations in June-July. Fitch forecasts inflation to
remain above peers, averaging 11.7% in 2022 and falling to 9.2% in
2024. The inflation trajectory will depend on the evolution of food
prices, the timing and magnitude of adjustments to heating gas and
electricity tariffs, the pace of fiscal consolidation and progress
in improving competition in the domestic market.

Gradual Fiscal Consolidation: Fitch said, "We forecast the
consolidated budget deficit to decline to 4.8% of GDP in 2022, down
from 5.6% in 2021 but above the government's revised budget target
of 4.1% of GDP, and Fitch expects the deficit to decline further to
4.1% of GDP in 2023, incorporating authorities' continued emphasis
on social spending, and investment. The government has announced a
VAT rate cut from 15% to 12% (1.4% of GDP) in 2023. Revenue loss
will be partially compensated by removal of tax exemptions,
continued formalisation and improvements in tax efficiency."

Low Government Debt: Fitch said, "We project government debt to
increase to 37.3% of GDP (including 8.9% in external guarantees) in
2022, well below the 55.0% 'BB' median forecast, before declining
to 35.3% by 2024, given our baseline of a relative stable Uzbek
som, lower deficits and reduced external borrowing. Government debt
is almost entirely foreign currency-denominated (93.7%), but
mitigating factors include the structure in terms of maturity and
costs, with official debt accounting for 89% of the external stock.
The government also has high liquid assets estimated at 20% of GDP
in 2022."

Parliament approved the Law of Public Debt, which introduces a
60%-of-GDP public debt ceiling, annual borrowing limits and the
requirement to undertake corrective measures if debt rises above
50% of GDP. The government also intends to introduce a 3% deficit
ceiling. In Fitch's view, the credibility of these policy anchors
will depend on their capacity to sustainably slow the pace of debt
growth, manage the risk of contingent liabilities and preserve the
relative strength of government fiscal buffers, a key supportive
factor for the rating.

Continued Reform, Diplomatic Balance: Commitment to reform remains
strong despite a more challenging external environment. The
government liberalised the domestic price of wheat and flour, but
the timing and pace of gas and electricity tariffs increases remain
uncertain due to socio-political considerations. A public vote on a
new constitution is likely to take place in October. Changes are
likely to include the lengthening and re-set of presidential terms.
Proposed changes (later discarded) regarding the status of the
Karakalpakstan region led to social unrest in early July.

Uzbekistan maintains a careful diplomatic balance in the war in
Ukraine, supporting Ukraine's territorial integrity, while
refraining from joining Western sanctions and maintaining a
dialogue with Russia on important economic issues such as the
resolution of links with the sanctioned financial institutions.

ESG - Governance: Uzbekistan 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.
Theses scores reflect the high weight that the World Bank
Governance Indicators (WBGI) have in Fitch's proprietary Sovereign
Rating Model. Uzbekistan has a low WBGI ranking at the 19th
percentile, reflecting weak rights for participation in the
political process and institutional capacity, uneven application of
the rule of law and a high, albeit declining, level of corruption.

RATING SENSITIVITIES

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

  -- External Finances: Weakening of external finances, for example
through a sustained widening of the current account deficit derived
from a permanent decline in remittances or increase in trade
deficit, resulting in a significant decline in FX reserves or rapid
increase in external liabilities.

  -- Public Finances: A marked rise in the government debt-to-GDP
ratio or the erosion of the sovereign fiscal buffers, for example
due to an extended period of low growth or crystallisation of
contingent liabilities, that could result in the removal of the +1
notch for this factor.

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

  -- Macro: Significant narrowing of Uzbekistan's GDP per capita
gap vs. peers, for example underpinned by the implementation of
structural reforms, while improving macroeconomic stability.

  -- Structural: Significant improvement of governance standards
including rule of law, voice and accountability, regulatory quality
and control of corruption.

  -- External and Public Finances: Significant strengthening of the
sovereign's fiscal and external balance sheets, for example,
through sustained high commodity export revenues.

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

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

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

  -- Public Finances: +1 notch, to reflect government deposits
(8.6% of GDP) and Uzbekistan Fund for Reconstruction and
Development liquid assets (11% of GDP), which provide a strong
liquidity buffer and mean that net government debt is materially
lower than gross debt, which feeds into the SRM.

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

ESG CONSIDERATIONS

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

Uzbekistan has an ESG Relevance Score of '5' for Rule of Law,
Institutional & Regulatory Quality and Control of Corruption as
World Bank Governance Indicators 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 Uzbekistan has a percentile
rank below 50 for the respective Governance Indicators, this has a
negative impact on the credit profile.

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

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

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

   Debt                    Rating          Prior
   ----                    ------          -----

Uzbekistan, Republic of
    
          LT IDR            BB- Affirmed   BB-
          ST IDR            B   Affirmed   B
          LC LT IDR         BB- Affirmed   BB-
          LC ST IDR         B   Affirmed   B
          Country Ceiling   BB- Affirmed   BB-

senior unsecured

          LT                BB- Affirmed   BB-




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

ANADOLU EFES: Fitch Retains 'BB+' LongTerm IDR on Watch Neg.
------------------------------------------------------------
Fitch Ratings is maintaining Anadolu Efes Biracilik ve Malt Sanayii
A.S.'s (Efes) Long-Term Issuer Default Rating (IDR) and senior
unsecured (SU) rating of 'BB+' on Rating Watch Negative (RWN).

Maintaining the RWN reflects increased rating pressure from the
potential acquisition of the partner's stake in the jointly owned
ABI-Efes operations in Russia and Ukraine, which could lead to
additional debt incurrence. The RWN also continues to reflect the
challenging macroeconomic environment in the company's two largest
markets of Turkiye and Russia, which is compounded by uncertainty
surrounding the company's ability to repatriate profits generated
in Russia.

Fitch would seek to resolve the Rating Watch once there is
confirmation of the acquisition and its funding mix, as well as
clarity over Efes's access to profits in Russia. Restrictions to
dividend repatriation may lead us to remove the Russian business
from the scope of Efes's operations, resulting in an increase in
leverage and, potentially, leading to a multi-notch downgrade.

At the same time, Efes benefits from adequate liquidity, including
hard-currency cash balances to cover the remaining balance of a US
dollar-denominated bond due in 2022. Also, it continues to
demonstrate strong resilience amid a challenging input cost
environment and is gaining market share in its core markets,
including Russia.

KEY RATING DRIVERS

Reduced Access to Russian Profits: As Russia is the main
contributor to Efes's overseas earnings (around two thirds of
profit based on Russia and Ukraine proportionately consolidated)
restrictions on dividend payments in Russia to foreign parents,
which were introduced in connection with the conflict in Ukraine,
could heavily reduce access to the cash flow of these operations.
Should these restrictions continue, we would better represent
Efes's credit profile through the deconsolidation of these
operations, which would adversely affect the company's scale,
leverage and diversification.

Strong 1H22 Performance: Efes delivered strong revenue and profit
growth in 1H22 of 114% and 267% yoy (beer group-reported basis),
respectively, and an increase of EBITDA margin to 16.3% (1H21:
9.5%; beer group-reported basis) despite strong pressure from
increasing raw material costs. This was due to an effective hedging
policy and low price elasticity of consumers, which allowed Efes to
increase prices across most of its core markets. Efes's revenues
and profitability were also supported by a return of out-of-home
consumption, including the recovery of demand from tourists in
Turkiye. Also, we believe that the decision by two main competitors
to exit the market should result in a more favourable competitive
environment for Efes.

Potential M&A and Debt Funding: Since the conflict started in
Ukraine its JV partner Anheuser Busch InBev NV/SA (ABI) has
expressed its intention to leave the Russian market and Efes its
intention to purchase their stake. Efes has a record of commitment
to maintaining a conservative net debt/BITDA under 2.0x, which
corresponds to a broadly similar level of our funds from operations
(FFO) net leverage. However, we see some risk of leverage remaining
higher than this threshold in the event of a debt-funded
acquisition. These risks contribute to our decision to maintain the
RWN.

Uncertain Trading Outlook: We see a more challenging consumer
environment in 2H22 and 2023 where growing input and energy costs
may be less easy to pass onto customers. Spending power of Turkish
consumers has so far benefitted in 2022 from two minimum wage
increases and from negative real interest rates, but we believe
that these effects may wane and be overcome by eroding purchasing
power. Turkiye's upcoming general elections in 2023 add to
uncertainty. Risks of a recession in Russia could also affect
consumer spending.

Increased Leverage in 2022: Efes's debt is mostly denominated in US
dollars and, when converted into the Turkish lira, has been
materially increasing since end-2021. Its impact on net leverage is
partly mitigated by Efes's policy of holding its cash balances in
hard currencies. Nevertheless, we expect FFO net leverage, to rise
to around 3.5x in 2022 (around 2.0x in 2018-2021), which would be
high for its 'BB+' IDR. The higher leverage is also due to an
expected large working-capital outflow in 2022 leading to negative
free cash flow (FCF) and our adjustment to Efes's cash balances
held in Russia. Leverage after 2022 could decline if the working
capital outflow unwinds but our RWN reflects the risk of further
trading challenges and of other events preventing de-leveraging.

CCI Deconsolidation: Fitch deconsolidates and treats Efes's 50.3%
ownership of Coca Cola Icecek (CCI; BBB-/Positive) as an associate.
This is because Efes's ability to control CCI is constrained by
important voting rights of the other shareholder The Coca-Cola
Company (A/Stable). Also, CCI's and Efes's treasury functions and
debt structures are fully ring-fenced from each other. However,
Fitch recognises the stability of the dividend flow to Efes and
that its ownership of CCI enhances its financial flexibility. In
case of need, Efes could pledge CCI's shares or, in the event of
severe stress, divest its stake, which is currently valued at over
USD1.1 billion.

JV Proportional Consolidation: In its accounts, Efes consolidates
100% of AB InBev Efes B.V. (ABI Efes), its JV resulting from the
merger of the Russian and Ukrainian operations of Efes and ABI.
However, since Efes owns and has access only to 50% of cash flow of
this entity, Fitch deconsolidates the remaining 50%. The approach
to Fitch's treatment of the JV is subject to the potential change
in Efes's stake in the business and/or its ability to access the
cash flows generated in Russia.

Kazakhstan Country Ceiling Applicable: Efes is incorporated in
Turkiye but generated around 15%-20% of its TRY1.7 billion 2021
consolidated EBITDA from Kazakhstan, which has a Country Ceiling of
'BBB+', higher than Turkiye's. We project hard-currency interest
expenses at about TRY300 million-TRY330 million and that the cash
flow from Kazakhstan should cover these charges with sufficient and
growing headroom. Based on our Non-Financial Corporates Exceeding
the Country Ceiling Rating Criteria, this leads us to apply the
Kazakhstan Country Ceiling to Efes's Foreign-Currency IDR.

DERIVATION SUMMARY

Efes does not have the same size and degree of geographic
diversification as large international beer groups such as
Carlsberg Breweries A/S (BBB+/Stable) and ABI (BBB/Positive). It is
also smaller than the US number two Molson Coors Brewing Company
and Asian beer and spirits peer Thai Beverage Public Company
Limited (BBB-/Stable). However, Efes has historically displayed a
significantly more conservative capital structure (consistent with
the 'A' category) than ABI or Thai Beverage, and which is more in
line with Carlsberg's.

KEY ASSUMPTIONS

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

  -- Doubling of revenue in Turkiye in 2022, driven by average
     price increases and sales volume recovery toward 5.2 million
     hectolitres (mhl), from 4.9 mhl in 2021. Sales volumes
     gradually to recover towards pre-pandemic levels by 2025

  -- Organic revenue growth in Russia in the mid-20s in percentage

     terms, mainly due to price increases, with continued momentum

     in 2023 before moderating to high single digits in 2024-2025.

     Material decline in sales volumes in Ukraine in 2022 of up to

     85%, due to the Russian invasion in the country. Modest sales

     recovery in Ukraine in 2023-2025

  -- Mid-teens organic revenue growth for other international
     operations in 2022, and moderating to mid-single digits in
     2023-2025

  -- EBITDA margin at around 15.5% in 2022, gradually improving
     toward 16%-16.5% in 2023-2025, supported by normalisation of
     inflationary pressures and supply-chain challenges

  -- Capex to decline to 6.5% of revenue in 2022 as part of cash-
     preservation measures, normalising at 7.5%-9% over 2023-2025

  -- Annual common dividends of TRY1.1 billion in 2022-2023,
     increasing to TRY1.2 billion-TRY1.3 billion in 2024-2025

  -- No large M&A transactions for the next four years

RATING SENSITIVITIES

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

  -- EBITDA returning to around USD200 million-equivalent, due to
     stabilisation of sales and profitability in Turkiye and
     Russia, among other factors

  -- Resumption of ability to upstream dividends from Russia

  -- EBITDA margin increasing above 16% (calculated by
     deconsolidating CCI, proportionately consolidating ABI Efes)

  -- FFO gross leverage sustainably below 3.5x or below 2.0x net
     of readily available cash (calculated by deconsolidating CCI,

     proportionately consolidating ABI Efes)

  -- FCF margin above 3%

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

  -- Inability to maintain a consolidated EBITDA margin of at
     least 14% (calculated by deconsolidating CCI, proportionately

     consolidating ABI Efes) and to stabilise Turkiye's profit
     margins

  -- Prospect of FFO gross leverage remaining permanently above    

     4.0x or higher than 2.5x net of readily available cash
     (calculated by deconsolidating CCI, proportionately
     consolidating ABI Efes)

  -- Inability to generate pre-dividend FCF margins in high single

     digits on a sustained basis

  -- FFO interest coverage below 5.0x

  -- Permanently impaired ability to access cash flow from ABI
     Efes or deteriorating liquidity at ABI Efes requiring support

     from Efes

  -- Increasing macroeconomic and / or political instability
     further affecting trading performance and liquidity

Factors that could, individually or collectively, lead to an
affirmation of ratings

  -- Overall stabilisation of cash flow generation capability,
     including restoration of access to profits of ABI Efes,
     leading to visibility that leverage may trend below 4.0x by
     2023

  -- Continued ability to procure external funding and sufficient
     hard-currency liquidity buffers

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: Fitch views Efes's liquidity as adequate, with
near-term maturity of its USD180 million November 2022 bond covered
by hard-currency cash balances held outside of Turkiye or Russia
and limited imminent other debt maturities. The other hard-currency
denominated bond at USD500 million is due in 2028, outside our
rating case to 2026.

Committed bank facilities are not commonly available in Turkiye. As
of end-June 2022 Efes had no committed credit facilities, but had
access to USD754 million of uncommitted credit lines. The Russian
entity carries some short-term local debt, which is partly backed
by cash held at the same entity. Shareholders Efes and ABI are
committed to supporting the liquidity of this entity and we assume
Efes will contribute its own proportionate share of liquidity, if
necessary.

Until we see certainty in Efes's ability to upstream abroad cash
flows generated in Russia, we conservatively assume all of the cash
kept in Russia as restricted from 2022.

ISSUER PROFILE

Efes is the largest beer company in Turkiye. It also owns 50.3% of
CCI and operates its beer business in Russia, where it is the joint
market leader, through a 50%-50% JV with ABI.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch has deconsolidated the financial results of CCI from Efes's
consolidated financial statements. In addition, we follow a
proportional consolidation approach for ABI Efes.

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 to the way in which they are being
managed by the entity.

   Debt   Rating                                       Prior
   ----   ------                                       -----

Anadolu Efes Biracilik
ve Malt Sanayii A.S.

          LT IDR    BB+     Rating Watch Maintained  BB+

          LC LT IDR BB+     Rating Watch Maintained  BB+

          Natl LT   AAA(tur)Rating Watch Maintained  AAA(tur)

senior unsecured

          LT        BB+     Rating Watch Maintained  BB+




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

BELLIS FINCO: Fitch Alters Outlook on 'BB-' LongTerm IDR to Neg.
----------------------------------------------------------------
Fitch Ratings has revised Bellis Finco plc's (ASDA) Outlook to
Negative from Stable while affirming the supermarket's Long-Term
Issuer Default Rating (IDR) at 'BB-'.

The Negative Outlook reflects Fitch's expectation that leverage
will not remain commensurate with the current rating over the next
two years due to lower expected earnings and the addition of GBP200
million debt to fund its Coop store acquisition, which is still
subject to CMA review.

The new debt ranks pari passu with all other senior secured debt,
and Fitch assumes repayment of this debt in 2023, although there is
an extension option available to the borrower.

The IDR is supported by ASDA's market position and scale in a
resilient, but competitive, UK food retail sector, as well as high
financial flexibility. The Coop store acquisition provides ASDA
with direct exposure to the convenience segment, but this does not
change Fitch's view of ASDA's business profile. Lack of reversal in
like-for-like (lfl) sales decline or continued profitability
decline leading to higher leverage would be triggers for a
downgrade.

KEY RATING DRIVERS

Higher Leverage Than Expected: Fitch expects funds from operations
(FFO) adjusted gross leverage at 6.3x in 2022 against our previous
forecast of 5.2x on lower earnings forecast and an additional
GBP200 million debt. Fitch forecasts deleveraging to the maximum
leverage consistent with the rating of 5.5x by 2024, given ASDA's
cash-generation capabilities. Fitch assumes no debt reduction in
2022 as GBP238 million of cash will be used to part fund the
acquisition of Coop stores, followed by GBP200 million debt
amortisation annually. The acquisition will aid deleveraging once
the acquisition-related debt is repaid in 2023 under our forecast.

Acquisition Adds Convenience: Fitch positively views the
acquisition of around 130 Coop stores that are expected to generate
GBP55 million EBITDA and to broaden ASDA's convenience channel.
This is due to the convenience segment typically growing ahead of
larger supermarkets and its higher profit margin. However, we do
not see this as materially changing its business profile, as ASDA
will continue to have a lower exposure to convenience than the
other "Big Four" supermarkets. The acquisition complements its
slowly progressing 'ASDA on the Move' initiative (45 sites by
2Q22), which represents wholesale sales of ASDA products to EG
Group's forecourts. It will also increase ASDA's exposure to fuel,
by adding around 130 to its 320 petrol filling stations. Our rating
case does not incorporate any disposals upon potential CMA review/
approval.

EBITDA Forecast Cut: Fitch said, "We have cut 2022 EBITDA forecast
to around GBP850 million from around GBP1.1 billon previously. This
follows a 25% drop in 1H22 EBITDAR as lfl sales declined following
a strong 1Q21 and price rises ahead of competitors'. Our lower
profit forecast captures ASDA's new focus on market-share growth,
price investments, including re-investment of all savings measures
that were previously driving some earnings improvement, delays to
achieving GBP14 million synergies from its cooperation with EG
Group, and cost inflation. We expect EBITDA to trend towards GBP1.1
billion only by 2025."

High Execution Risks Despite Opportunities: Fitch said, "We see
execution risk relating to ASDA's strategy to drive volumes and
market-share growth via price investments and to compete with hard
discounters. At the same time, the strategy of being the cheapest
of the "Big Four" provides an opportunity to win market share,
especially, when consumers are trading down given the current
cost-of-living crisis. Inability to grow selling volumes to offset
competitive pricing could lead to downside risks to our forecasts,
in turn resulting in further profit weakness and negative rating
pressure."

Continued Decent Cash Generation: Fitch said, "We continue to
expect reasonable cash generation that permits deleveraging, albeit
slightly lower than our previous forecast. We expect FFO margin to
reach 3% and free cash flow (FCF) margin 1% by 2025. Management are
focused on cash generation, for example, via working-capital
management and tighter control on capex. We have reflected an
increase in supply- chain finance arrangements as part of
working-capital movements, but if payables days become materially
longer in comparison to peers', we may review our approach and
treat some of it as debt."

Financial Policy Defines Deleveraging Path: In the absence of
material scheduled debt amortisation and a publicly stated
financial policy, the use of accumulated cash balances will depend
on capital-allocation decisions. Funding of Coop store acquisition
uses a mix of debt and equity, but leads to no debt amortisation in
2022. Fitch said, "We do not expect the repayment of Walmart's
GBP500 million instrument over the next few years, which we treat
as equity in line with our criteria, due to Walmart's importance to
ASDA in technology. A strong freehold asset base, valued at around
GBP9.3 billion, provides financial flexibility."

Resilient Food Retail Operations: ASDA is one of the leading food
retailers in the UK with a good brand and scale. Food retail is
resilient through economic cycles. ASDA is trying to win market
share, having seen a decline over a couple of quarters recently and
also since discounters started expanding in the UK, given its
higher exposure to lower-income customers. ASDA lacks a meaningful
presence in the convenience segment at present, but its online
channel has grown significantly with ASDA being number 2 in the UK
and 17% of its grocery sales now online.

Superior Recoveries for Secured Creditors: Fitch continues to rate
ASDA's senior secured debt at 'BB+', two notches above the IDR,
reflecting its Category 2 first lien debt class under Fitch's
Corporates Recovery Ratings and Instrument Ratings Criteria, which
translates into a Recovery Rating of 'RR2'. This is supported by
ASDA's large tangible asset value. However, the senior notes issued
within the group are deemed a subordinated debt class, rated 'B+',
one notch below the IDR, with a Recovery Rating of 'RR5'.

DERIVATION SUMMARY

Fitch rates ASDA using its global Food Retail Navigator. ASDA's
rating is negatively influenced by the group's smaller scale and
weaker market position than that of large food retailers in Europe,
such as Tesco plc (BBB-/Stable) and Ahold Delhaize NV. Fitch views
ASDA's and Market Holdco 3 Limited's (Morrisons; BB-/Stable)
business profiles as robust and comparable, with operations
restricted to the UK.

ASDA has larger market share than Morrisons, but the latter has
stronger vertical integration that supports profitability, a
better-invested store format with a higher portion of freehold
assets. At the same time, ASDA's positioning could provide it with
competitive advantage at times when consumers trade down and
tighten their spending in the current cost-of-living crisis. Both
ASDA and Morrisons are working on deepening their access to the
faster-growing convenience market, which presents execution risk.
However, this is partly mitigated by ASDA shareholder's extensive
experience in the convenience segment.

Fitch said, "We expect ASDA's total adjusted debt/operating EBITDAR
to trend towards 5.0x by 2024, which is meaningfully higher than
Tesco's (around 3.5x excluding Tesco Bank), but below WD FF Limited
(Iceland Foods)'s (B/Negative) estimated 7.0x at FYE25 (year-end
March). ASDA's focus on price investments has a slight negative
impact on forecast profit margins, which are however still expected
to remain healthy with an FFO margin trending towards 3% from 2.5%
over the rating horizon, against 3%-4% for Tesco and Morrisons."

KEY ASSUMPTIONS

  -- Revenue to increase 1.5% in 2022, as a strong rebound in
petrol revenue is partly offset by a decline in food and non-food
revenue. Revenue to grow on average 2% in 2023-2025 amid inflation
and an increase in volume

  -- EBITDA margin to dip to 3.5% in 2022 and 2023, before
gradually increasing towards 4.1% by 2025

  -- Working-capital inflow of about GBP200 million in 2022, GBP109
million in 2023 on the back of payable day improvements. This is
followed by slightly small working-capital inflow to 2025

  -- Capex of about GBP450 million p.a. to 2025

  -- Debt amortisation of GBP200 million per year in 2023 to 2025

  -- No dividends and major M&A activities over the next four years
(apart from the announced Coop stores acquisition). Dividends may
be revised, for example, when net debt/ EBITDA is under 2.6x,
according to bond documentation

RATING SENSITIVITIES

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

Fitch does not anticipate an upgrade over the next two years, until
ASDA successfully executes its new strategy despite cost challenges
without further eroding profitability. Positive rating momentum
would also depend on governance principles and financial disclosure
being aligned with listed peers' and a commitment to conservative
financial policies favouring deleveraging leading to:

  -- FFO adjusted gross leverage trending below 4.0x and/or total
     adjusted debt/operating EBITDAR trending below 3.0x on a
     sustained basis

  -- FFO fixed charge cover above 2.5x or operating EBITDAR/gross
     interest paid + rents above 3.0x

Factors that could, individually or collectively, lead to an
Outlook revision to Stable:

  -- Improving trading over the next few quarters with some
     visibility on the success of strategy, leading to lfl sales
     growth and improving EBITDA

  -- FFO adjusted gross leverage trending downwards to 5.0x on a
     sustained basis or total adjusted debt/operating EBITDAR
     trending downwards to 4.5x

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

  -- Lfl sales decline exceeding other "Big Four" competitors'
     resulting in continued market share loss and EBITDA erosion

  -- Weakening liquidity buffer due to neutral or negative FCF
     margin

  -- FFO adjusted gross leverage remaining above 5.5x or total
     adjusted debt/operating EBITDAR remaining above 5.0x on a
     sustained basis

  -- FFO fixed charge cover below 2.0x or operating EBITDAR/gross
     interest paid + rents below 2.0x

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: Liquidity is adequate with GBP370 million
unrestricted cash on balance sheet and an undrawn revolving credit
facility (RCF) of GBP500 million as of June 2022. In addition, ASDA
will have no material financial debt maturing for the next three
years.

Cash paid for the Coop stores should be partially supported by
working-capital inflow of about GBP100 million-GBP200 million in
2022. We expect ASDA's liquidity to remain adequate over the next
two to three years with positive FCF generation.

Fitch's restricts GBP150 million cash from readily available cash
for working-capital purposes.

ISSUER PROFILE

ASDA is the third largest supermarket chain in the UK.

SG CONSIDERATIONS

ASDA has an ESG Relevance Score of '4' for group structure due to
complexity of the group structure with a number of related-party
transactions. ASDA has made some progress with two non-executive
appointments to the Board at end-2021. However, following a number
of management changes ASDA does not have a formal CEO and the
finance function is run by an interim CFO at present. This has a
negative impact on the credit profile, and is relevant to the
rating 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        Recovery  Prior
  ----                        ------        --------  -----
            
Bellis Finco plc        LT IDR  BB-  Affirmed          BB-

  Senior Secured
  2nd Lien              LT      B+   Affirmed    R5    B+

Bellis Acquisition
Company Plc

  senior secured        LT      BB+  Affirmed    RR2   BB+


CHEEVERS POOLE: Enters Administration, Halts Operations
-------------------------------------------------------
Tiya Thomas-Alexander at Construction News reports that Cheevers
Poole, a London-based luxury property contractor, has filed for
administration.

Cheevers Poole specialised in residential properties in West
London, particularly Chelsea, Belgravia, and Kensington, as well as
carrying out some work in South Africa.  It described its
construction business as one for the "super prime property
sector".

The Chelsea-headquartered company has appointed insolvency
practitioners from Leonard Curtis, Construction News relates.

The administrators have not yet revealed the reasons for the firm's
collapse, but confirmed that work had already halted on most of its
sites before they were appointed, Construction News notes.

Joint administrator Alex Cadwallader said that they were currently
speaking to clients, according to Construction News.

"The business has a very strong brand and impressive track record,
and we will be working quickly to establish whether any of the
contractual arrangements can be salvaged for the benefit of the
company's creditors," Construction News quotes Mr. Cadwallader as
saying.

Some management staff have been retained to help with the process
of administration, Construction News states.

The sunken contractor, registered to Companies House as Cheevers
Poole Ltd, is part of a wider group called Cheevers Howard Ltd.

In its latest accounts for the year ending on March 30, 2020, the
group turned over GBP34.9 million, up from GBP24.7 million in the
previous year, Construction News discloses.  Some 65 people were
employed in 2020, which was unchanged from the year before,
Construction News notes.

According to Construction News, joint administrator Dane O'Hara
added: "None of the other companies within the group are subject to
proceedings and are continuing to trade as usual."


HARBEN FINANCE 2017-1: Fitch Affirms B-sf Rating on Class X Debt
----------------------------------------------------------------
Fitch Ratings has upgraded four tranches of Ripon Mortgages PLC
(2022 Refi) (Ripon) and three tranches of Harben Finance 2017-1 PLC
(2022 Refinance) (Harben). All other tranches have been affirmed.
Ripon's class B to X notes and Harben's class B to X notes have
been removed from Under Criteria Observation.

   Debt                     Rating                 Prior
   ----                     ------                 -----
Ripon Mortgages plc (2022 Refi)
  
   Class A XS2433693392     LT  AAAsf  Affirmed    AAAsf
   Class B XS2433703704     LT  AAsf   Affirmed    AAsf
   Class C XS2433704850     LT  A+sf   Upgrade     Asf
   Class D XS2433705824     LT  BBB+sf Upgrade     BBBsf
   Class E XS2433710238     LT  BBBsf  Affirmed    BBBsf
   Class F XS2433710741     LT  BB+sf  Upgrade     BBsf
   Class G XS2433711392     LT  BB+sf  Upgrade     BB-sf
   Class X XS2433716862     LT  Bsf    Affirmed    Bsf

Harben Finance 2017-1 Plc (2022 Refi)

   Class A XS2433720039     LT  AAAsf  Affirmed    AAAsf
   Class B XS2433722324     LT  AAsf   Affirmed    AAsf
   Class C XS2433722753     LT  Asf    Affirmed    Asf
   Class D XS2433730855     LT  BBBsf  Affirmed    BBBsf
   Class E XS2433738080     LT  BBB-sf Upgrade     BB+sf
   Class F XS2433749525     LT  BB-sf  Upgrade     B+sf
   Class G XS2433821738     LT  Bsf    Upgrade     B-sf
   Class X XS2433822462     LT  B-sf   Affirmed    B-sf

TRANSACTION SUMMARY

The transactions are securitisations of UK buy-to-let (BTL) loans
originated by Bradford and Bingley (B&B) and its wholly-owned
subsidiary, Mortgage Express, mainly between 2005 and 2008. The
loans were previously securitised under Ripon Mortgages plc and
Harben Finance 2017-1 plc.

KEY RATING DRIVERS

Updated UK RMBS Criteria: Fitch updated its UK RMBS Rating Criteria
on 23 May 2022, including its sustainable house price assumptions
for each of the 12 UK regions, house price indexation and gross
disposable household income. The changes increased the regional
multiples for all regions other than the north-east and Northern
Ireland. The sustainable house price is now higher in all regions
except Northern Ireland. This has a positive impact on recovery
rates (RR) and consequently Fitch's expected loss in UK RMBS
transactions.

Fitch also reduced its foreclosure frequency (FF) assumptions for
loans in arrears, based on a review of historical data from its UK
RMBS portfolio. The changes better align the assumptions with
observed performance in the expected case and incorporate a margin
of safety at the 'Bsf' level.

The updated criteria contributed to the upgrades.

Ratings Lower than MIR: Ripon's class B, C, D, E and G notes'
ratings and Harben's class B to F notes' ratings are one notch
below their model-implied ratings (MIR). Ripon's class F notes'
rating is two notches below the MIR. This reflects Fitch's view
that a modest increase in arrears could result in lower MIR than
the current ratings in future analyses.

Seasoned Loans, Stable Performance: The portfolios comprise
15-year-seasoned BTL loans originated by B&B. Fitch applied a 1.0x
originator adjustment for the portfolio, taking into account the
historical performance of Ripon Mortgages and Harben 2017 since
their respective closing in April 2017. Due to system migration at
the servicer, part of the loan-by-loan data relied upon is based on
the initial due diligence data provided at the transactions'
original closing in 2017.

In 2017, both portfolios benefited from positive selection through
the exclusion of loans in arrears by more than one month, which
resulted in lower arrears and repossessions than some other BTL
legacy portfolios. However, at the refinancing closing in 2022,
both pools already included a material amount of outstanding
defaults.

IO Concentration Drives FF: The portfolio has high interest-only
(IO) concentration. During 2031-2033, 40.4% (Ripon) and 40.6%
(Harben) of the loans in the portfolios mature and must make
principal payments. Fitch derives an IO concentration weighted
average (WA) FF based on this peak concentration and applies the
higher of this WAFF and the standard portfolio WAFF for each rating
level in its analysis. The IO concentration WAFF is higher than the
standard portfolio WAFF at the majority of ratings.

Low Margins, Moderate Affordability: All loans track the Bank of
England base rate (BBR). Similarly, 97.6% (Ripon) and 97.5%
(Harben) of the loans in the portfolios are IO. The WA margins for
these loans are relatively low, at 1.7%. Affordability for these
loans is moderate compared with other BTL legacy portfolios, with a
WA interest coverage ratio of 122.6% (Ripon) and 125% (Harben) due
to B&B's slightly weaker lending policy. The low WA margin adds to
a low realised and expected constant prepayment rate for the pool.

Basis Risk Unhedged: The transaction is exposed to basis risk
between BBR and SONIA as the notes pay daily compounded SONIA.
Fitch stressed the transaction cash flows for basis risk, in line
with its criteria. Combined with the low asset margins, this
resulted in limited excess spread in Fitch's cash flow analysis.

PIR Constrains Class C Ratings: Fitch expects long-term coverage of
payment interruption risk (PIR) exposure through reserves for notes
where deferring payments may cause an event of default, including
notes that are not deferable when most senior. For both
transactions' class C notes, the general reserve fund provisions
are sufficient to cover the PIR exposure at the current ratings.

RATING SENSITIVITIES

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

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

   available to the notes.

- A 15% increase in the WAFF and a 15% decrease in the WARR
   indicates model-implied downgrades of no more than four notches

   for both transactions.

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

- Stable to improved asset performance driven by stable
   delinquencies and defaults would lead to increasing credit
   enhancement levels and potential upgrades. Fitch tested an
   additional rating sensitivity scenario by applying a decrease
   in the WAFF of 15% and an increase in the WARR of 15%. The
   results indicate a positive rating impact of up to six notches
   for both transactions.

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.


LF WOODFORD: Claimant Group Says GBP306MM Redress Too Paltry
------------------------------------------------------------
Kirstin Ridley at Reuters reports that claimant groups planning
multi-million pound lawsuits over a collapsed fund run by former
star stock picker Neil Woodford said on Sept. 13 any redress of
around GBP306 million (US$359 million) ordered by Britain's
regulator would be too paltry.

Law firm Leigh Day, which represents around 13,000 clients in a
lawsuit against Link Fund Solutions (LFS), the administrator of the
flagship LF Woodford Equity Income Fund, said the figure was
"nowhere near enough" to compensate thousands who had suffered
financial losses, Reuters relates.

"Leigh Day calculates that if all of the individuals who suffered
losses as a result of investing in this fund signed up to the
claims proceeding through the courts, the court claims could be in
the billions," Reuters quotes lawyer Meriel Hodgson-Teall as
saying.

LFS has said it would vigorously defend itself against any
proceedings and denies wrongdoing, Reuters notes.

According to Reuters, prompted by a planned takeover of LFS to lay
out its thoughts, the FCA said on Sept. 12 it was considering
ordering LFS to pay up to GBP306 million in redress or penalty
because of failures in managing the liquidity of the fund.  But its
inquiry continues and LFS can challenge any final warning notice,
Reuters states.

Woodford was once one of Britain's most high profile investors,
Reuters recounts.  But he was sacked and his GBP3.7 billion WEIF
fund was suspended by LFS in 2019 after he was criticised for
holding a large number of hard-to-sell illiquid assets and
struggled to meet redemption requests after months of
underperformance, Reuters relays.

The move trapped around 300,000 investors -- and sparked an
investigation by the UK Financial Conduct Authority (FCA), Reuters
discloses.

RGL Management, a claims company also considering a lawsuit, said
any redress of around 1,000 pounds per investor was "very
significantly below" what it believed to be an average claim,
Reuters relates.

Law firms Leigh Day and Harcus Parker, which has around 7,000
claimants, are hoping to be formally appointed as joint lead
lawyers to manage group claims against LFS at a court hearing in
December, Reuters states.


MICRO FOCUS: S&P Puts 'BB-' LongTerm ICR on Watch Positive
----------------------------------------------------------
S&P Global Ratings placed its 'BB-' long-term issuer credit rating
on U.K.-headquartered software firm Micro Focus International PLC
(Micro Focus) on CreditWatch with positive implications.

S&P said, "At the same time, we affirmed our 'BB-' issue rating on
Micro Focus' term loans as we expect Open Text to repay them in
conjunction with the acquisition.

"The CreditWatch positive placement indicates that we expect to
raise our ratings on Micro Focus as its credit quality improves
after its acquisition by Open Text, and in view of the increased
scale, growth, and synergy opportunities that the combined company
will have."

On Aug. 25, 2022, Canada-headquartered information management
software firm Open Text Corp. (BB+/Negative) announced that it had
reached an agreement to purchase U.K.-headquartered software firm
Micro Focus International PLC (Micro Focus) for about US$6
billion.

S&P said, "If the acquisition of Micro Focus closes successfully,
we expect its credit quality to improve as a result of combining
with Open Text. We expect that after the acquisition closes, which
we expect to occur in the first quarter of 2023, Micro Focus will
benefit from similar credit quality to Open Text (BB+/Negative). We
affirmed our rating on Open Text following the acquisition
announcement, but we revised the outlook to negative as we expect
its credit metrics to weaken following the acquisition. Following
the acquisition, Open Text will nearly double its scale and likely
more than double its EBITDA in two years if it executes the
acquisition synergies properly. In addition, Open Text's
acquisition of Micro Focus will improve the combined company's
product and geographical revenue diversity, enhance its digital
transformation capabilities, and provide cross-selling
opportunities. It will also provide a smoother transition to
software as a service for Micro Focus as it leverages Open Text's
proven expertise. Lastly, despite the acquisition, the combined
company will benefit from stronger credit metrics than Micro Focus
on a stand-alone basis.

"We have not placed the issue rating on CreditWatch because we
expect Open Text to repay Micro Focus' debt upon the closing of the
acquisition.Open Text has entered a delayed-drawdown $2.6 billion
first-lien term loan and has commitments of up to $2.0 billion
under a bridge loan. Together with cash on hand and borrowings
under its existing revolving credit facility, Open Text will use
the funds largely to repay Micro Focus' outstanding term loans, as
these are subject to immediate termination under change-of-control
provisions. We expect to withdraw our 'BB-' issue rating if the
acquisition closes successfully and all Micro Focus' debt is
repaid."

CreditWatch

S&P said, "The CreditWatch positive placement indicates that we
expect to raise our rating on Micro Focus up to the level of our
rating on Open Text if the acquisition closes successfully. We
expect this to happen in the first quarter of 2023. We would remove
the ratings from CreditWatch and affirm them if the planned sale to
Open Text does not close, providing that Micro Focus reduces its
S&P Global Ratings-adjusted leverage to below 4x by the fiscal year
ending Oct. 31, 2023, through revenue stabilization and a
cost-restructuring program."

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


RYE HARBOUR: Fitch Affirms B+sf Rating on Class F-R Notes
---------------------------------------------------------
Fitch Ratings has upgraded Rye Harbour CLO DAC's class D-R notes
and revised the Outlooks on the class B, C, E and F notes to Stable
from Positive.

   Debt                  Rating                  Prior
   ----                  ------                  -----

Rye Harbour CLO DAC

   A-1-R XS1596795432    LT  AAAsf  Affirmed     AAAsf
   A-2-R XS1596796679    LT  AAAsf  Affirmed     AAAsf
   B-1-R XS1596796836    LT  AA+sf  Affirmed     AA+sf
   B-2-R XS1596797487    LT  AA+sf  Affirmed     AA+sf
   C-1-R XS1596798295    LT  A+sf   Affirmed     A+sf
   C-2-R XS1596798881    LT  A+sf   Affirmed     A+sf
   D-R XS1596799699      LT  A-sf   Upgrade      BBB+sf
   E-R XS1596800372      LT  BB+sf  Affirmed     BB+sf
   F-R XS1596800299      LT  B+sf   Affirmed     B+sf

TRANSACTION SUMMARY

Rye Harbour CLO DAC is a cash flow CLO comprising mostly senior
secured obligations. The transaction is actively managed by Bain
Capital Credit, Ltd. and exited its reinvestment period in April
2022.

KEY RATING DRIVERS

Transaction Outside Reinvestment Period: Despite the transaction's
exit from its reinvestment period the manager is unlikely to
reinvest unscheduled principal proceeds and sale proceeds from
credit-risk and credit-improved obligations due to the breach of
the weighted average life (WAL) and the Fitch-calculated maximum
weighted average rating factor (WARF) tests. No amortisation has
yet occurred on the rated notes.

Since the manager is unlikely to reinvest, Fitch has assessed the
transaction based on the current portfolio, and has notched down by
one level all assets in the current portfolio with Fitch-derived
ratings (FDR) that are on Negative Outlook.

The Outlook revision to Stable reflects the current uncertain
macro-economic outlook. The Stable Outlook on other tranches
reflects Fitch's expectation of sufficient credit protection to
withstand potential deterioration in portfolio credit quality at
the current rating.

Stable Asset Performance: The transaction's metrics indicate stable
asset performance. The transaction is currently is 1.56% below par
but is passing all tests except the WAL (3.74 versus the maximum
3.71) e the WARF (33.03 versus maximum 32.75) and the weighted
average recovery rate (WARR; 63% versus minimum 63.3%). Exposure to
assets with a Fitch-derived rating of 'CCC+' and below is 6.1%, as
calculated by the trustee.

'B'/'B-' Portfolio: Fitch assesses the average credit quality of
the obligors at 'B'/'B-'. The Fitch-calculated WARF of the current
portfolio was 24.62 and of the notched-down portfolio with Negative
Outlook was 25.92.

High Recovery Expectations: Senior secured obligations comprise
99.1% of the portfolio as calculated by the trustee. Fitch views
the recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets. The Fitch-calculated
WARR of the current portfolio is 64.73%.

Diversified Portfolio: The portfolio is well-diversified across
obligors, countries and industries. The top 10 obligor
concentration is 14.24%, and no obligor represents more than 1.66%
of the portfolio balance, as reported by the trustee.

Cash Flow Modelling: Fitch used a customised proprietary cash flow
model to replicate the principal and interest waterfalls and the
various structural features of the transaction, and to assess their
effectiveness, including the structural protection provided by
excess spread diverted through the par- value and interest-coverage
tests.

Deviation from Model-Implied Ratings: The class B-1-R/B-2-R, E-R
and F-R note ratings of 'AA+sf', 'BB+sf, and 'B+sf', respectively,
are a notch below their model-implied ratings (MIR). The upgraded
class D-R note ratings of 'A-sf' are two notches below their
respective MIRs. The deviations reflect the limited cushion on the
notched-down portfolio with Negative Outlook and uncertain
macro-economic conditions.

RATING SENSITIVITIES

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

An increase of the default rate (RDR) at all rating levels by 25%
of the mean RDR and a decrease of the recovery rate (RRR) by 25% at
all rating levels would result in downgrades of no more than three
notches depending on the notes.

While not Fitch's base case, downgrades may occur if build-up of
the notes' credit enhancement following amortisation does not
compensate for a larger loss expectation than initially assumed due
to unexpectedly high levels of defaults and portfolio
deterioration.

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

A reduction of the RDR at all rating levels by 25% of the mean RDR
and an increase in the RRR by 25% at all rating levels would result
in upgrades of up to three notches depending on the notes, except
for the class A-1-R and A-2-R notes, which are already at the
highest rating on Fitch's scale and cannot be upgraded.

Upgrades may also occur if the portfolio's quality remains stable
and the notes continue to amortise, leading to higher credit
enhancement across the structure.


WORCESTER WARRIORS: Says Club Not Placed in Administration
----------------------------------------------------------
Duncan Bech at Irish Examiner reports that Worcester have released
a statement to make it clear the club have not been placed into
administration after a Department of Digital, Culture, Media and
Sport letter suggested they had been.

The Warriors moved quickly to clarify their position which is that
they are waiting for an agreement with an undisclosed buyer to be
signed as they seek survival amid debts of over
GBP25 million, Irish Examiner relates.

"Worcester are aware of a letter that is in circulation from the
Department of Digital, Culture, Media and Sport claiming that the
owners have put the club into administration.  This is NOT true,"
Irish Examiner quotes the Warriors' statement as saying.

"The statement was sent out in error by DCMS who have apologised
for their mistake and the distress and anxiety it has caused to our
staff and suppliers at what is already an extremely stressful
time."

DCMS is understood to be looking into how the error occurred, and
is continuing to work with Worcester, the Rugby Football Union and
Premiership Rugby on options around their survival, Irish Examiner
notes.

The letters were sent to supporters by email on Sept. 15 in an
extraordinary mistake by the Government that has left Worcester to
pick up the pieces, Irish Examiner states.

It is another twist in a roller coaster few weeks for the club,
whose home debut for the 2022-23 season against Exeter on Sunday,
Sept. 18, is in serious danger of not going ahead, Irish Examiner
discloses.

According to Irish Examiner, while an agreement has been reached
between co-owners Colin Goldring and Jason Whittingham and the
undisclosed investor, the details are still being thrashed out by
lawyers.

Director of rugby Steve Diamond said he is confident the Sixways
clash will go ahead, yet it is the new buyer who is due to supply
the finance needed to stage the game, Irish Examiner relays.




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

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

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

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

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

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

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

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

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



                           *********


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

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

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

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

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

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


                * * * End of Transmission * * *