/raid1/www/Hosts/bankrupt/TCREUR_Public/191106.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                          E U R O P E

          Wednesday, November 6, 2019, Vol. 20, No. 222

                           Headlines



G E R M A N Y

DIOK REAL ESTATE: S&P Assigns Prelim. 'B' LT ICR, Outlook Stable
USIL EUROPEAN 36: DBRS Finalizes B(high) Rating on Class F Notes


G R E E C E

GREECE: DBRS Confirms BB(low) LongTerm Issuer Ratings


I R E L A N D

DUBLIN BAY 2018-MA1: DBRS Confirms B(low) Rating on Class Z1 Notes


I T A L Y

ILVA: ArcelorMittal to Hand Back Business to Italian Government
SUNRISE SPV 2019-2: DBRS Finalizes BB(high) Rating on Cl. E Notes


L A T V I A

TRASTA: Action Against ECB Inadmissible, Court Holds


L U X E M B O U R G

AL SIRONA: S&P Puts 'B' ICR on Watch Neg. on Agreed Acquisition


N E T H E R L A N D S

INTERXION HOLDING: S&P Places 'BB' ICR on CreditWatch Positive


N O R W A Y

NORWEGIAN AIR: Rights Issue Among Options Amid Financial Woes


U N I T E D   K I N G D O M

BISHOPSGATE ASSET 1: S&P Lowers Rating on GBP203MM Notes to 'BB+'
CLINTONS: Set to Discuss CVA with Landlords, Future Uncertain
FIAT CHRYSLER: Moody's Alters Outlook on Ba1 CFR to Positive
KENNEDY WILSON: S&P Revises SACP to 'bb+' on Lower Cash Flow Base
MOTHERCARE PLC: Seeks to Protect Workers From Pension Cutbacks


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DIOK REAL ESTATE: S&P Assigns Prelim. 'B' LT ICR, Outlook Stable
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S&P Global Ratings assigned its 'B' preliminary long-term rating to
Germany-based commercial property company DIOK Real Estate AG and
'B' preliminary issue-level rating to the company's senior
unsecured bond due 2023.

The preliminary ratings reflect our view of DIOK's very small scale
and portfolio size, limited asset and tenant diversity compared
with those of other rated peers in the commercial real estate
segment with exposure to one economy (Germany), and its short
operational track record due to its recent establishment in 2018.
Pro forma its planned acquisition in fourth-quarter 2019 of
approximately EUR220 million (gross asset value [GAV] of the Eagle
portfolio), the company owns and manages 28 office assets, valued
at about EUR370 million and spread across Germany's secondary
locations. DIOK's strategy focuses on office properties in
small-to-medium-sized secondary locations in Germany that border
metropolitan cities.

S&P said, "We view market dynamics, such as rental growth potential
and demand-supply-trends in the office market across Germany as
favorable. However, we believe secondary locations such as Ulm,
Aachen, or Freiberg are less dynamic compared with metropolitan
cities such as Berlin or Frankfurt, and it might take longer to
find replacements if a tenant moves out once the lease contract
expires. Sixty-three percent of DIOK's portfolio is in the North
Rhine-Westphalia, 15% in Bavaria, 10% in Saxony, 9% in
Baden-Wurttemberg and the remainder in Hessen und Saxony-Anhalt.
Nevertheless, we believe most of its portfolio to be located in
cities with good infrastructure and favorable macroeconomic
fundamentals, including unemployment and real GDP growth in line
with the German average.

"We note some asset concentration, with the top-two assets, in
Munich and Cologne, accounting for about 16% of the total portfolio
value, including the Eagle portfolio. The company's average asset
value is lower than that of other rated peers, with EUR20
million-EUR25 million per asset. We expect asset diversity will
further improve while the portfolio expands."

DIOK's tenant base is limited, with only about 40 in its portfolio.
The top 10 account for about 55% of total annualized rental income
and about half of the company's assets are single-tenant
properties, which could temporarily risk cash flow for the
respective building once a tenant moves. Overall, S&P views the
tenant base as solid, consisting predominantly of well-established
German mid-sized companies and long-term public tenants. Contracts
are typically leased double net and linked to indexation, in line
with the industry standard. Its current two largest tenants are the
pharmaceutical company Nuvisan and the automotive supplier Yazaki.
These will be replaced by an insurance company and a federal state
after the closing of Eagle portfolio, each contributing about 9%
DIOK's annualized gross rental income.

S&P said, "Our rating also takes into account the company's
relatively short operational track record, given its recent
incorporation and its fast-growing portfolio. We view DIOK's
overall portfolio quality as average and in line with that of rated
peers with a focus in secondary locations, such as DEMIRE Deutsche
Mittelstand Real Estate AG (BB/Stable/--). The company has no large
capital expenditure needs due to its tenant mix, its overall small
portfolio size, and a solid weighted average lease length of more
than five years. The occupancy rate of 93%, including the Eagle
acquisition, is low compared with the German market rate, but in
line with that of German office peers such as Alstria Office-REIT
AG (92.4% as of second-quarter 2019). We view positively that the
company is not involved in any development activities.

"The preliminary rating incorporates a one-notch upward adjustment
for our comparable rating analysis. We believe DIOK's business
model as a real estate holding company with stable rental income
generation, limited asset rotation, and supportive economic
environment compares favorably with some rated peers with the same
business assessment and comparable high leverage, such as
developers or small consumer product-focused companies, which tend
to show greater volatility in performance and credit metrics.
Although the company's cash-flow base remains small and limited,
its long-term lease contracts with domestic tenants, in particular
the share of public tenants, provides near-term cash flow
visibility and stability.

"DIOK's financial risk profile is underpinned by its very high
leverage, with S&P Global Ratings-adjusted debt-to-debt plus equity
of more than 75% and an EBITDA interest coverage of below 2x for
the next 12 months. We consider the company's debt leverage as high
compared with industry standards. We believe DIOK's interest
coverage will improve in the next 12-18 months thanks to its full
EBITDA contribution in 2020 from recent acquisitions and a minor
reduction in its overall cost of debt, following the planned
refinancing of one of its secured loans. However, we believe that
leverage will remain very high in the next couple of years, and
forecast debt-to-debt plus equity and the of debt-to-EBITDA ratio
at well above 65% and above 20x, respectively. The ratings take
also into account the company's speculative assumption of an equity
build-up, based mainly on revaluation gains on its properties
purchased in line with its strategy of buying properties at a
10%-15% discount, while funding the acquisition with debt.

"We understand that DIOK has limited near-term refinancing risk,
with an average debt maturity of 3.8 years and limited debt
amortization. The company has 100% fixed interest rate exposure.

"DIOK plans to issue the third tranche of its senior unsecured bond
due 2023 in the nominal amount of about EUR75 million. The bond
outstanding allows an issuance volume of up to EUR250 million with
a fixed coupon rate of 6%. Most of the bonds' proceeds, we
understand, will fund the company's growth strategy. Since the bond
was set up in 2018, DIOK has placed two tranches with the total
nominal amount of EUR45 million (EUR25 million issued in October
2018 and a further EUR20 million issued in July 2019).

"We understand that the company will finance its growth plans
mostly with a mix of secured bank debt and unsecured bond tapping.
The auditor and property appraiser are small domestic German
companies with limited coverage in the industry compared with
larger accounting firms or third-party real estate appraisers.

"The stable outlook reflects our view that DIOK's asset portfolio
should start generating increasing EBITDA and cash flows over the
next 12 months, mainly supported by its full-year rental
contribution from recent acquisitions. We believe that the dynamics
of the office property market in secondary locations in Germany
remains favorable, with solid demand and rising occupancy rates.

"In addition, we expect the company will tap its bond to fund
planned acquisitions for 2019. We forecast EBITDA interest coverage
will improve closer to 2x in the next 12-18 months, while
debt-to-debt plus equity remains high, at 75%-80%.

"We could lower the ratings if the company suffers from key tenant
loss or operational deterioration such as higher vacancy, which
could significantly affect its rental income and EBITDA generation;
or invests in less-favorable secondary locations away from
metropolitan hubs.

"We could also lower the ratings if the company's liquidity
deteriorates, with covenant headroom becoming tighter.

"We would raise the ratings if DIOK increases its portfolio's scale
and scope significantly, to locations with favorable demand trends
for German office properties and increasing occupancy levels, while
enhancing its tenant and asset diversity to a level comparable with
other higher-rated peers."

An upgrade would also be contingent on a strong reduction of its
leverage, with debt-to-debt plus equity falling below 65% on a
sustainable basis, while maintaining EBITDA interest coverage close
to 2x or above. This could occur, for example, due to unexpected
significant debt repayment or equity-financed acquisitions.


USIL EUROPEAN 36: DBRS Finalizes B(high) Rating on Class F Notes
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DBRS Ratings Limited finalized the following provisional ratings on
the notes issued by Usil European Loan Conduit No. 36 Designated
Activity Company (Usil Eloc No. 36 DAC or the Issuer):

-- Class RFN Notes rated AAA (sf)
-- Class A-1 Notes rated AAA (sf)
-- Class A-2 Notes rated AAA (sf)
-- Class B Notes rated AA (low) (sf)
-- Class C Notes rated A (low) (sf)
-- Class D Notes rated BBB (sf)
-- Class E Notes rated BB (high) (sf)
-- Class F Notes rated B (high) (sf)

All notes carry a Stable trend.

The Issuer is the securitization transaction of a EUR 723.9
million, floating-rate senior commercial real estate loan (the
senior loan) advanced by both Morgan Stanley Principal Funding,
Inc. and Morgan Stanley Bank, N.A. to borrowers sponsored by
Blackstone Group L.P. (Blackstone or the Sponsor). The senior loan
is backed by a portfolio of 100 German assets that are
predominantly light-industrial and warehouse properties. The loan
refinanced the original acquisition loan and funded a progressive
CAPEX program. In addition to the senior loan, the transaction
includes a EUR 105.6 million mezzanine loan, which is structurally
and contractually subordinated to the securitized senior loan.

Blackstone acquired the portfolio in Q4 2017 along with M7 Real
Estate Ltd. (M7 or the asset manager) as part of the growth of its
wider European logistics platform. The majority of the portfolio
(i.e., 92 of the assets) was purchased from Hansteen, while the
remaining eight assets were acquired using M7's own funds. The
assets are located in major cities across Germany. North
Rhine-Westphalia houses 35.7% of the portfolio's market value (MV),
Hesse houses 15.2% of MV and the state of Berlin houses 12.4% of
MV. The remaining assets are located across the states of Bavaria,
Baden-Württemberg, Bremen, Lower Saxony, Saxony-Anhalt, and
Saxony. The portfolio mix is granular, with over 2,000 units where
66% of the units are less than 5, 000 square meters (sqm).

The transaction includes a EUR 44.8 million CAPEX facility as part
of the senior loan and a further EUR 6.9 million from the mezzanine
loan to support Blackstone's EUR 66 million CAPEX budget over the
life of the loan. Since the acquisition, Blackstone has
concentrated on stabilizing the portfolio's occupancy. To date,
Blackstone has spent approximately EUR 14 million of CAPEX on
property maintenance and reconstruction, enabling management to
keep a tenant retention rate of over 75%.

As of the June 2019 cut-off date, 87.4% of the portfolio's net
lettable area (NLA) was occupied by 1,064 tenants. The top ten
tenants contribute 18.7% of the gross rental income (GRI). The
largest tenant, Toom Baumarkt GmbH, contributes 4.3% to the GRI,
with no other tenant in the portfolio representing more than 2.5%.
The portfolio is 2.5% under-rented according to the market rent
assessed by Jones Lang LaSalle SE (JLL), consequently providing an
opportunity for management to marginally increase rent while
maintaining the integrity of the weighted-average unexpired lease
term (WAULE) of 3.27 years. Furthermore, the deployment of CAPEX
funds over the term of the loan should also present an opportunity
for the sponsor to extract more reversionary value from the
portfolio.

The senior loan is interest-only (IO) prior to the permitted change
of control and has a two-year maturity with three one-year
extension options subject to certain conditions, including hedging.
In September 2019, JLL valued the portfolio as if the assets were
sold individually and arrived at a valuation of EUR 1,015.3
million. Based on that valuation, the senior loan represents a
loan-to-value (LTV) of 71.3%. Based on the valuation, the senior
loan represents a loan-to-value (LTV) of 71.3%. However, the value
used by the arranger (Morgan Stanley) for covenant calculations is
based on JLL's portfolio appraisal that assumes that if the
portfolio was sold as a whole it would attract a 5.0% premium or a
portfolio value of EUR 1,066.7 million, which translates to an LTV
of 67.9%. The DBRS Morningstar net cash flow (NCF) is EUR 49.2
million, a 17.0% haircut compared with the arranger's net operating
income (NOI) of EUR 59.3 million and DBRS Morningstar's value of
EUR 745.6 million (LTV of 97.1%). The high DBRS Morningstar LTV is
mitigated by cash trap covenants set at an LTV of 71.16%, and,
prior to the second anniversary of the loan utilization date, a
debt yield (DY) of 7.6%, which increases to 8.0% once the first
loan extension option is exercised. The DY at the cut-off date was
8.2%. The latest expected loan maturity date, considering potential
extensions, is February 15, 2025.

The loan structure does not include financial default covenants
prior to a permitted change of control but provides other standard
events of default including (1) any missing payment, including
failure to repay the loan at the maturity date; (2) borrower
insolvency; and (3) a loan default arising as a result of any
creditors' process or cross-default. In DBRS Morningstar's view,
potential performance deteriorations are captured and mitigated by
the presence of cash trap covenants such as (1) an LTV cash trap
covenant set at 71.2% and (2) the DY cash trap covenant as
previously detailed. Following a permitted change of control, the
borrowers are required to amortize the loan on each interest
payment date by 0.25% of the aggregate outstanding principal amount
of the senior loan. Additionally, after a permitted change of
control, the following financial covenants would trigger an event
of default (unless the permitted change of control is to the
current mezzanine lender) if (1) the senior DY falls below the
lesser of (a) 7.15% and (b) 85% of the DY as of the latest interest
payment date (IPD) prior to the permitted change of control or (2)
the senior loan LTV ratio is less than the LTV ratio as of the
latest IPD prior to the permitted change of control plus 12.5%.

To maintain compliance with applicable regulatory requirements, the
loan seller retains an ongoing material economic interest of no
less than 5% of the securitization via a Vertical Risk Retention
(VRR) loan that was advanced by the loan seller to the Issuer at
closing.

The transaction includes a Reserve Fund Note (RFN), which acts as
the liquidity reserve. The EUR 20.0 million RFN proceeds and the
EUR 1.05 million VRR loan contributions were deposited into the
transaction's liquidity reserve. The liquidity reserve works
similarly to a liquidity facility by providing liquidity to pay
property protection advances, senior costs and interest shortfalls
(if any) in relation to the corresponding VRR loan interest and the
Class A1, Class A2 and Class B notes. The RFN notes rank pari passu
with the Class A1 notes. According to DBRS Morningstar's analysis,
the liquidity reserve amount is equivalent to 17.5 months' coverage
on the covered notes, based on the annual interest rate cap strike
rate of 1.75%- and 10.8-months coverage based on the LIBOR cap
after loan maturity of 5.0% per year.

The Class E notes and Class F notes are subject to an available
funds cap where the shortfall is attributable to an increase in the
weighted-average margin of the notes. The final legal maturity of
the notes is in February 2030, five years after the fully extended
loan term. Given the security structure and jurisdiction of the
underlying loan, DBRS Morningstar believes the final legal maturity
date provides sufficient time to enforce, if necessary, on the loan
collateral and repay the bondholders.

The transaction includes a Class X diversion trigger event, meaning
that if the Class X diversion triggers, set at 7.6% for DY, which
increases to 8.0% once a loan extension is exercised, and 71.16%
for LTV, were breached, any interest and prepayment fees due to the
Class X noteholders will instead be paid directly to the Issuer
transaction account and credited to the Class X diversion ledger.
However, such funds can potentially be used to amortize the notes
only following a sequential payment trigger event or the delivery
of a note acceleration notice.

Notes: All figures are in Euros unless otherwise noted.




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GREECE: DBRS Confirms BB(low) LongTerm Issuer Ratings
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DBRS Ratings GmbH confirmed the Hellenic Republic's Long-Term
Foreign and Local-Currency - Issuer Ratings at BB (low) and the
Short-Term Foreign and Local-Currency - Issuer Ratings at R-4. The
trend on the Short-Term Foreign and Local-Currency - Issuer Ratings
remains Stable and the trend on the Long-Term Foreign and
Local-Currency - Issuer Ratings is changed from Stable to
Positive.

KEY RATING CONSIDERATIONS

The confirmation of the ratings reflects the fact that Greece is
emerging from the crisis years and is currently in its third
consecutive year of growth. Primary surplus targets are on track. A
large cash buffer exists equivalent to around two years of gross
public sector borrowing needs and borrowing costs are at
post-crisis lows. Still, the public debt burden is large, estimated
by the government to amount to 173.3% of GDP at end-2019. However,
the high public debt stock is mitigated to some extent by the very
long weighted-average debt maturity and the fact that European
Union (EU) institutions hold the majority of the debt.

Since the last rating review, progress is being made in several
respects, leading to a positive trend. A new majority government is
in place with strong commitment and momentum in introducing its
reform agenda. Pro-active public debt strategy has consolidated
market access, and in addition, Greece is on course to pre-pay Euro
2.7bn of relatively more expensive debt owed to the IMF. Moreover,
the Hercules asset protection scheme looks set to support banks
removing non-performing exposures from their balance sheets, while
capital controls were fully lifted on 1 September 2019.

RATING DRIVERS

Triggers for upward rating action include: (1) continued
implementation of fiscal and structural reforms to support future
economic growth; (2) compliance with post-program monitoring; (3)
further consolidation of bond market access (4) continued
improvement in the financial health of banks.

By contrast, triggers for downward rating action include: (1) a
reversal or stalling in structural reforms; (2) material fiscal
slippage (3) renewed financial-sector instability.

RATING RATIONALE

The New Greek Government Shows Strong Commitment to Economic
Reform

The July 7 general elections brought to the government the
center-right New Democracy party with an outright majority of 158
seats out of 300. It is the first one-party government in Greece
after nearly ten years. The outcome of the election gives New
Democracy's leader and Prime Minister, Mr. Kyriakos Mitsotakis, a
strong mandate to implement his reform agenda. Furthermore, DBRS
Morningstar views that Parliament's decision to delink the failure
of appointing the President of the Republic from the premature
dissolution of the Parliament as positive. This decision will
likely reduce the risk of early elections and increases the
stability of the government.

Economic Growth Prospects Improve on Reform and Fiscal Efforts

The Greek economy continues on a path of economic recovery for a
third consecutive year. GDP growth accelerated in 2018 to 1.9%, up
from 1.5% in 2017, driven by stronger exports and higher private
consumption. Exports have been a consistent contributor to the
recovery, reflecting the substantial improvement of the export
share from 19% of GDP in 2009 to 36% in 2018. After a weak start in
the first three months of the year, the economy accelerated in Q2
2019 posting a solid annual growth rate of 1.9%, again underpinned
mainly by strong export growth and a rebound in private
consumption. The economic sentiment indicator amounted to 107.2 in
September; close to a 12-year high, and consumer confidence is at
its highest level since April 2000. The real GDP growth is expected
to reach 2% this year and to accelerate to 2.8% in 2020 according
to government projections, supported by structural reforms. These
reforms aim to address impediments to investment. In addition,
fiscal measures presented in the 2020 draft budget, skew the fiscal
mix towards growth supportive measures.

The 'Invest in Greece' growth and development bill has been
ratified by the Greek Parliament. The bill aims to support
productivity and strengthen growth by reducing bureaucracy that has
in the past curtailed private investment. A Bank of Greece study
illustrates that the full implementation of the measures could add
at least 5 percentage points to real GDP in the next ten years. In
addition, labor market reforms have contributed to employment
growth and the unemployment rate has been falling. The rate
decreased to 16.9% in July 2019 from 19.1% in July 2018, albeit
remaining the highest in the EU. DBRS Morningstar considers that
strong reform commitment and momentum will lead to new reform
efforts and will safeguard the reforms that have already been
adopted. This factor enhances Greece's long-term growth prospects
and as such has led to an uplift in DBRS Morningstar's qualitative
assessment of the "Political Environment" building block.

The Debt Ratio is High but Set to Decline in the Forecast

After peaking at 181.1% in 2018, the debt ratio is estimated at
173.3% in 2019 and looks set to further decline to 167.8% in 2020,
according to government forecasts. To achieve this, Greece is
expected to deliver an appropriate growth-friendly fiscal policy
mix that includes primary surpluses. Debt stock remains at a very
high level; however, mitigants to this include the fact that EU
institutions hold around 70% of government debt. This contributes
to the very long weighted-average maturity and the fact that most
of the debt is financed at very low-interest rates.

Greece is applying a strategy of reducing the interest rate burden
by pre-paying more expensive debt. This month, the Boards of
Directors of the European Stability Mechanism (ESM) and the
European Financial Stability Facility (EFSF) agreed to waive the
mandatory repayment obligations of ESM/EFSF loans in connection
with a partial early repayment by Greece to the IMF, amounting to
around Euro 2.7bn.

Moreover, Greece has made progress towards the consolidation of
bond market access. In the recent re-opening of its 10-year bond in
October, Greece raised Euro 1.5bn at a historically low rate of
1.5%. In addition to the favorable environment in international
bond markets, this also reflects the growing confidence in the
Greek economy. DBRS Morningstar considers that the implementation
of growth-supporting policies, while remaining fiscally prudent,
and at the same time maintaining the liquidity buffer that amounts
to around Euro 30 billion in total, is supporting Greece's efforts
to strengthen confidence among market participants. The sizeable
cash buffer that reduces repayment risk has led to an upward
adjustment in the qualitative section of the "Debt and Liquidity"
building block.

Greece Continues to Meet its Primary Surplus Targets

Since 2010, Greece has undertaken an unprecedented fiscal
adjustment, with the cumulative improvement in the primary balance
exceeding 11 percentage points by 2018. In 2018 Greece delivered a
primary surplus of 4.3% of GDP well above the 3.5% target set by
the program, due to higher than expected revenues and the under
execution of the public investment budget. In the 2020 draft
Budget, the Greek authorities project a primary surplus of 3.7% for
the current year and 3.6% for 2020, in excess of the 3.5% target.
Fiscal measures include the reduction of property tax (ENFIA),
lowering personal and corporate rate tax and enhancing the
electronic payment system.

Various reforms implemented during the economic adjustment programs
improved Greece's fiscal management by modernizing the tax system
and enhancing tax compliance. Progress with privatization is
visible in the Hellenikon development, as bureaucracy has been
unblocked. DBRS Morningstar considers that commitment to the
structural reform agenda helps towards mitigating the risks to the
fiscal outlook and safeguards Greece from potential fiscal shocks.

Steps Taken to Strengthen Financial Institutions

The high level of non-performing exposures, the highest in the
European Union, at around EUR 75 billion or 43.6% of gross loans at
end-June 2019, remains a challenge for Greece. However,
nonperforming exposures are on a downward trend, falling by more
than EUR 30 billion from the peak in March 2016. The reduction has
been mainly driven by sales and write-offs. The four systemic banks
aim to reduce their non-performing exposures significantly by
end-2021 and have submitted updated operational targets to the
Single Supervisory Mechanism (SSM).

On October 10, the European Commission approved Greece's plan known
as the Hercules Project (HAPS) to accelerate the reduction of
banks' non-performing exposures (NPEs). This may, by further
strengthening banks' balance sheets, help build on the recovery in
bank credit to corporations and reverse the contraction in bank
loans to households. The HAPS, which involves NPE portfolio
securitizations with around 9 billion Euros of government
guarantees for senior tranches, could help the banks offload around
30 billion Euros of bad loans, according to the government. DBRS
Morningstar views that the implementation of the HAPS could support
banks' efforts to clear their balance sheets from legacy loans and
to also aid the recovery of the economy.

Improvement in External Imbalances

After years of large deficits, Greece's current account narrowed by
more than ten percentage points of GDP. In 2018, the deficit stood
at 2.9% of GDP from 1.8% in 2017. This is partly due to a weakening
balance of goods, which was only partially offset by the
improvement in the services balance. The strong performance of the
services balance is mainly attributed to the improvement in the
travel balance with foreign arrivals increasing by almost 20% in
the period 2016-2018. Overall, Greek exports have increased
significantly, due to improved competitiveness. However, Greece's
net external liabilities remain high at 143.8% of GDP in 2018, up
from 88.8% in 2011, mostly reflecting public sector external debt.
It is expected to remain at high levels because of the long-term
horizon of foreign official-sector loans to the public sector.

EURO AREA RISK CATEGORY: MEDIUM

Notes: All figures are in Euros unless otherwise noted. Public
finance statistics reported on a general government basis unless
specified.




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DUBLIN BAY 2018-MA1: DBRS Confirms B(low) Rating on Class Z1 Notes
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DBRS Ratings GmbH confirmed its ratings on the bonds issued by
Dublin Bay Securities 2018-MA1 DAC (the Issuer) as follows:

-- Class A1 notes rated AAA (sf)
-- Class A2A notes rated AAA (sf)
-- Class A2B notes rated AAA (sf)
-- Class S notes rated AAA (sf)
-- Class B notes rated AA (sf)
-- Class C notes rated A (high) (sf)
-- Class D notes rated A (sf)
-- Class E notes rated BBB (sf)
-- Class F notes rated B (high) (sf)
-- Class Z1 notes rated B (low) (sf)

DBRS Morningstar does not rate the Class Z2 and Class R notes.

The ratings assigned to the Class A1, Class A2A, Class A2B, and
Class S notes address the timely payment of interest and ultimate
payment of principal by the legal final maturity date. The ratings
of Class B to Class Z1 notes address the ultimate payment of
interest and principal by the legal final maturity date.

The confirmations follow an annual review of the transaction and
are based on the following analytical considerations:

-- Portfolio performance, in terms of delinquencies, defaults and
losses.

-- Probability of default (PD), loss given default (LGD) and
expected loss assumptions on the remaining receivables.

-- Current available credit enhancement to the notes to cover the
expected losses at their respective rating levels.

The Issuer is a bankruptcy-remote special-purpose vehicle (SPV)
incorporated in the Republic of Ireland (Ireland). The issued notes
were used to fund the purchase of Irish residential mortgage loans
originated by Bank of Scotland plc and secured over properties
located in Ireland. In September 2018, Bank of Scotland sold the
portfolio mortgages to Erimon Home Loans Ireland limited, a
bankruptcy-remote SPV wholly owned by Barclays Bank plc. Pepper
Finance Corporation (Pepper) acts as servicer of the mortgage
portfolio during the life of the transaction while CSC Capital
Markets (Ireland) Limited acts as the replacement servicer
facilitator.

On October 22, 2019, DBRS Morningstar transferred the ongoing
coverage of the ratings assigned to the Issuer to DBRS Ratings GmbH
from DBRS Ratings Limited. The lead analyst responsibilities for
this transaction have been transferred to Shalva Beshia.

Both DBRS Ratings Limited and DBRS Ratings GmbH are registered with
the European Securities and Markets Authority (ESMA) under
Regulation (EC) No. 1060/2009 on Credit Rating Agencies, as
amended, and are registered Nationally Recognized Statistical
Rating Organization (NRSRO) affiliates in the United States and
Designated Rating Organization (DRO) affiliates in Canada.

PORTFOLIO PERFORMANCE

As of September 2019, loans with two to three-month arrears
represented 0.4% of the outstanding portfolio balance, up from 0.0%
in October 2018. As of September 2019, the 90+ delinquency ratio
was 2.1%, increasing rapidly from 0.0%, 11 months since closing. As
of September 2019, there were no cumulative defaults reported. DBRS
Morningstar continues to monitor the transaction performance
closely.

PORTFOLIO ASSUMPTIONS

DBRS Morningstar conducted a loan-by-loan analysis of the remaining
pool of receivables and has updated its base case PD and LGD
assumptions to 3.2% and 20.1%, respectively.

CREDIT ENHANCEMENT

Credit enhancement for the Class A1, Class A2A, and Class A2B notes
is 21.0%, down from 23.0% at closing. Credit enhancement for the
Class B notes is 16.7%, down from 18.8% at closing. Credit
enhancement for the Class C notes is 13.9%, down from 16.0% at
closing. Credit enhancement for the Class D notes is 10.7%, down
from 12.8% at closing. Credit enhancement for the Class E notes is
8.4%, down from 10.5% at closing. Credit enhancement for the Class
F notes is 6.2%, down from 8.3% at closing. Credit enhancement for
the Class Z1 notes is 3.9%, down from 5.5% at closing. The decrease
of the credit enhancements is driven by the build-up of the
Protected Amortization Reserve Fund. The Class S notes are excess
spread notes, i.e. they are not collateralized and do not have any
credit enhancement. Class S notes are redeemed under the
pre-enforcement revenue priority of payments, but principal
receipts can be used to cure shortfalls in the required payments
for Class S notes.

The transaction benefits from the Protected Amortization Reserve
Fund of EUR 8.0 million, which provides credit and liquidity
support to the Class A2 notes to ensure that the scheduled payments
are met. The reserve fund was unfunded at the transaction closing.
It reached its target level of 2% of the original balance of
collateralized notes according to the September 2019 interest
payment date.

The transaction also benefits from a liquidity reserve fund of EUR
3.8 million which is available to provide liquidity support to the
senior fee and interest payments on Class A and S notes.

The Issuer Account Bank, Paying Agent and Cash Manager are
Citibank, N.A., London Branch (Citibank). Based on the DBRS
Morningstar private rating of the Issuer Account Bank, the
downgrade provisions outlined in the transaction documents, and
other mitigating factors inherent in the transaction structure,
DBRS Morningstar considers the risk arising from the exposure to
Citibank to be consistent with the rating assigned to the notes, as
described in DBRS Morningstar's "Legal Criteria for European
Structured Finance Transactions" methodology.

The transaction structure was analyzed in Intex DealMaker.

Notes: All figures are in Euros unless otherwise noted.




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

ILVA: ArcelorMittal to Hand Back Business to Italian Government
---------------------------------------------------------------
Michael Pooler and Miles Johnson at The Financial Times report that
the future of Europe's biggest steelworks, Ilva, and thousands of
jobs have been plunged into doubt after the Italian plant's
operator said it would pull out because of a decision to end
criminal immunity for environmental breaches.

According to the FT, ArcelorMittal revealed it would hand back
control of the lossmaking Ilva business to the Italian authorities,
following the removal of a legal protection designed to shield the
company and its managers from prosecution while they undertake a
clean-up of the heavily polluting facilities.

Ilva is based in the southern Italian town of Taranto and employs
about 8,000 people in a region with high unemployment, the FT
discloses.  Once controlled by the Riva family, the plant was
accused of poisoning local residents with toxic emissions and then
nationalized in 2014, before ArcelorMittal agreed to a EUR1.8
billion takeover last year, the FT recounts.

The rescue deal included plans to restore Ilva to a sound financial
footing, along with pledges to invest hundreds of millions of euros
to bring it up to required environmental standards, the FT states.


However, this month the Italian government passed legislation that
revoked immunity from prosecution for managers of the Ilva plant,
at the request of lawmakers from the anti-establishment Five Star
Movement, the FT relates.

ArcelorMittal, as cited by the FT, said it had a contractual right
to withdraw from the lease and purchase agreement in the event of a
new law that would "materially impair" its ability to operate the
Taranto plant, or implement its industrial turnround plan.

The global steel group's decision prompted an emergency meeting
between several government ministers, and anger from Italian trade
unions, which criticized a recent government reform that they
argued had worsened the situation, the FT notes.


SUNRISE SPV 2019-2: DBRS Finalizes BB(high) Rating on Cl. E Notes
-----------------------------------------------------------------
DBRS Ratings Limited finalized its provisional ratings of Class A,
Class B, Class C, Class D and Class E Notes (the Rated Notes and
together with the unrated Class M Notes, the Notes) issued by
Sunrise SPV Z80 S.r.l. (the Issuer) - as Sunrise 2019-2, as
follows:

-- AA (high) (sf) to the Class A Notes
-- A (high) (sf) to the Class B Notes
-- BBB (high) (sf) to the Class C Notes
-- BBB (low) (sf) to the Class D Notes
-- BB (high) (sf) to the Class E Notes

DBRS Morningstar does not rate the lowest-ranked Class M Notes.

The rating of the Class A Notes addresses the timely payment of
scheduled interest and ultimate repayment of principal by the legal
final maturity date. The ratings of the Class B Notes, the Class C
Notes, the Class D Notes, and the Class E Notes address the
ultimate payment of scheduled interest while subordinated but
timely payment of scheduled interest as the most senior class and
ultimate repayment of principal by the legal final maturity date.

The Notes are backed by a pool of receivables related to consumer
loan contracts originated by Agos Ducato S.p.A. (Agos), a leading
consumer finance company in Italy.

Notes: All figures are in Euros unless otherwise noted.




===========
L A T V I A
===========

TRASTA: Action Against ECB Inadmissible, Court Holds
----------------------------------------------------
Philip Blenkinsop at Reuters reports that shareholders in former
Latvian bank Trasta suffered a setback on Nov. 5 when the European
Court of Justice ruled that their action against the European
Central Bank (ECB) was inadmissible before the court.

The ECB withdrew Trasta Komercbanka's banking license in 2016 after
it broke rules to fight money laundering and terror financing,
Reuters relates.

The General Court of the European Union had previously ruled in
2017 that the case of the group of shareholders was admissible,
Reuters recounts.

However, the European Court of Justice, the EU's upper court, said
that the lower court had erred in its judgment, Reuters notes.

It also ordered the shareholders to pay the legal costs of the ECB,
as well as those of the European Commission, Reuters discloses.




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

AL SIRONA: S&P Puts 'B' ICR on Watch Neg. on Agreed Acquisition
---------------------------------------------------------------
S&P Global Ratings placed its 'B' ratings on Al Sirone (Luxembourg)
Acquisition Sarl -- Zentiva's parent company -- its senior secured
notes on CreditWatch with negative implications.

S&P expects to resolve the CreditWatch in the next three to six
months, once it has clarity on the new capital structure, business
integration plan, and the financial policy post transaction.

The CreditWatch placement follows the announcement on Oct. 25,
2019, that Zentiva agreed to acquire Alvogen's CEE portfolio of
more than 200 generic and OTC products.

S&P said, "We understand that the financial sponsor Advent will
inject equity to partially fund the deal; however, the majority
will be debt-funded. As such, we continue to expect leverage will
likely materially exceed our current base case as the transaction
might increase the debt burden by about one-third. This has led us
to forecast that the group's adjusted debt to EBITDA could fall
above 7.5x in the next 12 months." Previously, Zentiva's ability to
maintain adjusted debt to EBITDA between 6.0x and 7.0x on average
over the next three years was a core assumption supporting the 'B'
rating."

Zentiva is a pan-European generic company, manufacturing and
developing diversified products in Western and Eastern Europe.
Headquartered in Prague, Zentiva generated revenues of EUR699
million and reported pro forma EBITDA of EUR159 million in the 12
months ending Dec. 31, 2018.

S&P said, "We expect to resolve the CreditWatch within the next
three-to-six months, once the details of the capital structure have
been released. We intend to assess Zentiva's financial risk profile
pro forma for the transaction, with emphasis on the company's
prospective financial policies and credit metrics.

"We could lower our rating on Zentiva by one notch if we believe
that the finalized capital structure will translate to the group
needing at least two years to restore its business growth and debt
leverage trajectory to levels prior to the Alvogen transaction."




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

INTERXION HOLDING: S&P Places 'BB' ICR on CreditWatch Positive
--------------------------------------------------------------
S&P Global Ratings placed its 'BB' ratings on Interxion Holding N.V
(Interxion) on CreditWatch with positive implications.

S&P said, "We are placing data-center operator Interxion on
CreditWatch with positive implications because we believe that,
following its acquisition by DLR, Interxion will benefit from
belonging to a group with greater scale and cheaper funding than
Interxion on a stand-alone basis. Additionally, we think Interxion
and DLR will benefit from combined access to leading cloud platform
operators and global enterprises. We understand Interxion will
merge its operations with DLR's (while maintaining its brand name)
and that outstanding debt at Interxion level will be refinanced at
the DLR level in order to improve the cost of funding. We therefore
expect Interxion will benefit from the same credit quality as the
new enlarged DLR group."

As per the announcement, DLR will acquire Interxion in an all-stock
transaction. Each share of Interxion's stock will be converted into
a 0.7067 share of DLR stock.

S&P said, "We expect to resolve the CreditWatch upon successful
closing of the acquisition, expected in 2020. At that time, we
anticipate we will discontinue the ratings on Interxion.
Alternatively, we could reassess our ratings should the transaction
fail to close, most likely resulting in a rating affirmation."




===========
N O R W A Y
===========

NORWEGIAN AIR: Rights Issue Among Options Amid Financial Woes
-------------------------------------------------------------
Tanya Powley at The Financial Times reports that over the past four
months, Geir Karlsen, the chief executive of Norwegian Air Shuttle,
has sold off a large chunk of the airline's assets at a remarkable
pace as he attempts to secure the future of the world's
fifth-biggest low-cost carrier.

According to the FT, Norwegian's turbocharged growth has put
Europe's third-biggest low-cost airline under heavy financial
pressure.  Since April last year, the company's share price has
plummeted 75% as investors have worried that the Oslo-based carrier
has overstretched itself, the FT discloses.

It has a big debt burden of NOK62 billion (US$6.8 billion), the FT
states.  It tapped investors for money twice in the past two years
and it remains heavily lossmaking, the FT notes.  According to the
FT, Bloomberg consensus figures show the airline is not predicted
to make a net profit until 2021.  This year, analysts are
estimating a NOK2.16 billion net loss, the FT relays.

The Nordic airline has also been hit by problems beyond its own
control in recent years, including ongoing engine troubles with
Boeing's Dreamliner aircraft, the grounding of the 737 Max since
April, and an aborted takeover attempt by Spanish rival IAG, the
owner of British Airways, the FT says.

Significantly, Mr. Karlsen has not ruled out another rights issue
to raise money from investors to help keep the airline afloat,
according to the FT.

Just a year ago, Norwegian announced a significant strategic shift,
prioritizing profitability over growth and raising fresh capital,
the FT recounts.  This plan has accelerated over the past six
months, with the airline restructuring two maturing bonds, selling
a stake in a Norwegian bank, as well as implementing a NOK2 billon
cost-cutting program, the FT relates. It has also changed both its
chief executive and chairman as it cut ties with its old ambitious
growth strategy, the FT notes.

In October, Norwegian also sealed a long-awaited aircraft joint
venture with a subsidiary of one of China's biggest banks, which
entails the airline offloading 27 of its Airbus aircraft on order
and slash its capital expenditure by US$1.5 billion, the FT
relays.

According to the FT, analysts agree that the airline appears to
have done enough restructuring to enable it to survive the
traditionally weak winter season -- and avoid the fate of other
struggling carriers such as the UK's Thomas Cook, which collapsed
this year, the UK's Monarch and Germany's Air Berlin in 2017.




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

BISHOPSGATE ASSET 1: S&P Lowers Rating on GBP203MM Notes to 'BB+'
-----------------------------------------------------------------
S&P Global Ratings lowered to 'BB+' from 'BBB-' its credit rating
on the (GBP203,680,000) guaranteed asset-backed fixed-rate notes
issued by Bishopsgate Asset Finance Ltd. series 1.

S&P said, "Our rating on the notes is weak-linked to the lower of
our issue rating on the collateral issued by Consort Healthcare
(Birmingham) Funding Ltd., our long-term issuer credit rating (ICR)
on Deutsche Bank AG, London Branch as custodian, and our long-term
ICR on Natwest acting as Swap counterparty.

"As the rating on the notes is dependent on the issue rating on the
collateral issued by Consort Healthcare (Birmingham) Funding
--which we recently downgraded to 'BB+-'--we have downgraded our
rating on the series 1 repack notes in line with our global repack
criteria.

"We believe the operational and legal risks in the transaction are
adequately mitigated in line with our criteria."


CLINTONS: Set to Discuss CVA with Landlords, Future Uncertain
-------------------------------------------------------------
Sam Morton at Chichester Observer reports that Clintons, the UK's
second-largest independent greeting cards chain, is facing an
uncertain future with the company set to hold meetings with its
landlords.

Sky News reported on Nov. 1 that Clintons had written to landlords
that day to invite them to a series of 'town-hall meetings' to
discuss a possible company voluntary arrangement (CVA), Chichester
Observer relates.

According to Sky, the discussions, which were due to take place
this week, will "raise the prospect" of Clintons axing dozens of
its 340 UK stores during the coming months, Chichester Observer
notes.

Commenting on the speculation, Eddie Shepherd, CEO of Clintons, as
cited by Chichester Observer, said: "We can confirm that we are in
the process of inviting our landlord partners to a series of
informal meetings to discuss the current financial position of the
company and for them to consider whether they want to work with us
through a CVA process."

Clintons has 11 stores in Sussex -- two in Worthing, two in
Eastbourne, and in Chichester, Crawley, Horsham, Haywards Heath,
Brighton, Seaford and Bexhill, Chichester Observer discloses.

KPMG, the accountancy firm which has overseen a number of retail
CVAs in recent years, has been lined up to work on the proposals,
according to Sky, which claimed a number of restructuring or
financing options "remain on the table", Chichester Observer
relates.


FIAT CHRYSLER: Moody's Alters Outlook on Ba1 CFR to Positive
------------------------------------------------------------
Moody's Investors Service the outlook on the ratings of Fiat
Chrysler Automobiles N.V. and Fiat Chrysler Finance Europe SA to
positive from stable. Concurrently, Moody's affirmed the Ba1
corporate family rating and the Ba1-PD probability of default
rating of FCA and the Ba2 ratings on the senior unsecured
instruments issued by FCA and Fiat Chrysler Finance Europe SA.

"The positive outlook reflects the potential for a stronger credit
profile of the combined Fiat and PSA entity should the proposed
merger between FCA and PSA be successfully executed.", said Falk
Frey, a Senior Vice President and Moody's lead analyst for FCA.
"The merger would create a larger and more diversified global auto
manufacturer with substantial synergy and efficiency potential,
which will help to mitigate multiple challenges within the global
automotive manufacturing industry.", added Mr. Frey.

RATINGS RATIONALE

RATIONALE FOR THE POSITIVE OUTLOOK

Moody's considers the rationale of the proposed merger as strong,
given (i) the significant scale effects compared to FCA's
standalone sales of EUR110 billion in 2018 (excluding Magneti
Marelli), including improved market shares globally and in the
individual regions, (ii) the additional regional and brand
diversification, and (iii) expected material synergies in the area
of production cost, research and development (R&D) and capital
expenditures. The merger also addresses FCA's perceived weakness in
its electrification strategy, with the transaction allowing it to
participate in more comprehensive and advanced solutions offered by
PSA. Taking the Baa3 rating of PSA and the benefits of the merger
into consideration, its successful execution could result in a
rating upgrade for FCA, assuming no further deterioration of the
global automotive industry environment in 2020.

However, Moody's believes that there are significant uncertainties
in relation to reaching a definitive merger agreement and that
executing the merger will be a lengthy and complex process in an
increasingly challenging global auto market. Hence, for any further
positive rating action, Moody's would need to better understand the
timing and financial implications of the transaction as well as get
comfortable that the combined entity can sustain credit metrics
commensurate with an investment grade rating in during a period of
potentially weaker market conditions.

Its standalone expectation for FCA includes continued improvement
of its financial metrics in the current fiscal year according to
the company's guidance thus achieving a Moody's adjusted EBITA
margin level of around 6% and containing its Moody's adjusted gross
leverage (debt/EBITDA) below 2.0x.

On October 31, 2019, FCA announced that its Board of Directors has
unanimously agreed with the supervisory board of Peugeot S.A. (PSA,
Baa3 stable) to work towards a full combination of the company's
respective businesses by way of a 50/50 merger. Both boards have
mandated their respective teams to develop a binding memorandum of
understanding in the coming weeks. A realization of the merger plan
would create the world's fourth largest automotive original
equipment manufacturer (OEM) with approximately 8.7 million
vehicles sold in 2018, and combined revenues of nearly EUR170
billion. The merger plan, which is subject to execution risks,
includes planned synergies of EUR3.7 billion annually, against
one-time restructuring cost of EUR2.8 billion, and the payment of
special dividends of EUR5.5 billion in cash and the shareholding in
Comau to FCA's shareholders. PSA plans to distribute its 46% stake
in the automotive parts supplier Faurecia (Ba1 stable) to its
shareholders.

Environmental, social and governance risks have been considered in
FCA's ratings and outlook. The company is exposed to the transition
risks of the industry towards alternative fuel vehicles, and
autonomous driving technologies, which will weigh negatively on the
company's future cash flow generation. Moody's notes that FCA has
been cautious so far to invest aggressively into these areas
compared to most of its European peers. In addition, in order to
improve its competitive position, global visibility and enhance its
model range, FCA will continue to make significant investments in
the next few years for the renewal of its models across the brand
portfolio. The company is exposed to the sector specific social
risks, including strike risks of typically well organized workers
unions and demographic changes within its end markets, where
customers could seek to buy more environmental friendly vehicles
and pay less attention to the brand value of vehicles. FCA's
governance risks are relatively low, given the company's status as
listed company with high standards in terms of organzational
structure and public disclosure. Moody's also considers FCA's
financial policy as conservative.

RATIONALE FOR RATING AFFIRMATION

The rating affirmation reflects FCA's standalone credit profile.
The Ba1 CFR is supported by (1) the company's significantly
improved credit metrics in recent years, driven by substantial
deleveraging actions and sustainably improved albeit still moderate
operating profitability (note: all 2018 and 2017 figures presented
in the following exclude Magneti Marelli); (2) its degree of
geographic diversity, including a large exposure to North America,
and its market leading presence in its domestic market Italy and in
Brazil; (3) the now local production of certain key Jeep models in
China, India, Italy, Mexico and Brazil, expanding Jeep's geographic
coverage and improving FCA's cost structure and (4) the recent
successful new model launches in the SUV and pickup truck segment
leading to a more favorable product mix.

FCA's Ba1 rating remains constrained by (1) the highly competitive
nature of the automotive industry, especially in Europe, which
weighs on growth and pricing activity; (2) FCA's high reliance on
the market in North America which seems to have reached its peak
and on the Jeep and Ram brands; (3) still low profitability in
Europe (-0.5% EBIT margin as adjusted by company in Q3 2019)
despite a solid growth in car demand over the last 4 years; (4)
transition risk of the industry towards alternative fuel vehicles
and autonomous driving technologies.

WHAT COULD CHANGE THE RATINGS UP

With respect to the merger, positive rating pressure could build
once Moody's has more clarity on timing and financial implications
of the merger transaction as well as comfort that the combined
entity can sustain credit metrics commensurate with an investment
grade rating during a period of potentially weaker market
conditions.

Qualitatively, upward pressure on FCAs rating could materialize if
the company is able to demonstrate a successful and sustainable
improvement in its competitive position outside the North America
region in particular Europe and China. Furthermore the company
needs to implement and successfully execute a profitable and
resilient competitive position for its Alfa Romeo and Maserati
brands. An upgrade would also require sustainability in FCA's
current operating profitability and cash flow generation, even if
market conditions were to weaken in the US and in Europe as well as
its track record in successfully addressing tougher emission
standards without being a leader in supporting technologies.

Quantitatively, an upgrade could occur if FCA were able to achieve
(1) a Moody's-adjusted EBITA margin sustainably above 6%, (2) a
consistently positive and robust free cash flow without
compromising on its capital expenditures and R&D expenses needed to
achieve emission targets, to manage the transition to alternative
fuel vehicles and new drivetrain technologies as well as autonomous
vehicles and (3) keeping its leverage based on Moody's-adjusted
(gross) debt/EBITDA sustainably below 2.0x.

WHAT COULD CHANGE THE RATINGS DOWN

FCAs ratings might come under downward pressure should FCAs
operating performance and cash flow generation come under
significant pressure as a result of market share declines or if
market conditions were to weaken in the US and in Europe.

A downgrade could occur in case these events would result in the
following credit metrics for a sustained period of time: (1) a
Moody's-adjusted EBITA margin falling below 4%, (2) a sizable
negative free cash flow, or (3) a Moody's-adjusted (gross)
debt/EBITDA exceeding 3.0x.

Outlook Actions:

Issuer: Fiat Chrysler Automobiles N.V.

Outlook, Changed To Positive From Stable

Issuer: Fiat Chrysler Finance Europe SA

Outlook, Changed To Positive From Stable

Affirmations:

Issuer: Fiat Chrysler Automobiles N.V.

Corporate Family Rating, Affirmed Ba1

Probability of Default Rating, Affirmed Ba1-PD

Senior Unsecured Shelf, Affirmed (P)Ba2

Other Short-Term, Affirmed (P)NP

Senior Unsecured Medium-Term Note Program, Affirmed (P)Ba2

Senior Unsecured Regular Bond/Debenture, Affirmed Ba2

Issuer: Fiat Chrysler Finance Europe SA

Other Short-Term, Affirmed (P)NP

Senior Unsecured Medium-Term Note Program, Affirmed (P)Ba2

Senior Unsecured Regular Bond/Debenture, Affirmed Ba2

PRINCIPAL METHODOLOGY

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

CORPORATE PROFILE

Having its corporate seat in Amsterdam, the Netherlands, and its
principal executive offices in the United Kingdom, FCA is one of
the world's largest automotive manufacturers by unit sales. Its
portfolio of automotive brands includes Abarth, Alfa Romeo,
Chrysler, Dodge, Fiat, Fiat Professional, Jeep, Lancia, Ram and
Maserati. In 2018, FCA generated consolidated net revenues of
EUR110.4 billion and reported an adjusted EBIT of EUR6.7 billion
(both excluding Magneti Marelli).


KENNEDY WILSON: S&P Revises SACP to 'bb+' on Lower Cash Flow Base
-----------------------------------------------------------------
S&P Global Ratings revised its stand-alone credit profile (SACP) on
Kennedy Wilson Europe Real Estate (KWE) to 'bb+' from 'bbb-'.

S&P is affirming its 'BB+' long-term issuer credit rating on KWE
and its 'BBB-' issue rating on the company's unsecured notes.

KWE's overall revenue and cash flow base has reduced.

S&P said, "In our view, the challenging retail environment in
Europe, combined with macroeconomic uncertainty, has affected KWE's
revenue and cash flow base. The company reported a decline in
revenue of about 15.4% in its overall portfolio during the first
half of 2019, versus revenue growth of 9.1% as of June 30, 2018. On
a like-for-like basis, NOI is down by 1.3% over this period. We
understand that this development mainly stems from loss of revenue
from assets that have been disposed of since 2018; reduced
availability during refurbishment work at Shelbourne Hotel in
Ireland; and a temporary increase in vacancies at some of KWE's key
assets, which KWE is already working to fill."

Overall, the vacancy rate has demonstrated some recovery--the
overall vacancy rate decreased to 7.8% as of June 30, 2019, from
9.5% on Dec. 31, 2018, supported by strong leasing activity in
multifamily assets and a few office assets. The vacancy rate
remains low compared with that of peers rated in the same
category.

Reducing the asset portfolio's size and scale has limited
diversity. Over the past three years, KWE has been disposing of
smaller U.K. assets, but also, on an opportunistic basis, of larger
assets that have provided large returns. These disposals have
reduced the portfolio value to GBP2.35 billion as of June 30, 2019,
from GBP3.0 billion on June 30, 2016, and the asset base to 151
assets from 278 assets over the same period. KWE has largely
up-streamed the proceeds from the asset sales to its parent, KWH,
and, to a lesser extent, deployed them in asset purchases or
investments. In S&P's view, the disposals have weakened the size
and scale of KWE's portfolio, and also its asset diversity compared
to peers with the same ratings.

By the end of the third quarter of 2019, KWE had completed noncore
asset sales worth GBP73 million, including EUR50 million from the
recent sale of the Portmarnock Hotel & Golf Links in Ireland. S&P
said, "We expect the company to remain a net seller of assets
during the short-to-medium term. It has no plans for large asset
acquisitions in the near term. In our view, this further constrains
its scale, size, and asset diversity. However, the medium-term
capital expenditure (capex) plan should partly supplement current
disposals."

S&P said, "That said, we still assess KWE's business risk as
satisfactory and note that its weighted-average lease maturity is
still strong, at 6.0 years until the first break option, and at
about 8.1 years overall. Furthermore, in our view, KWE has a
relatively diverse asset base, and is present in several
subsectors, notably including retail, offices, residential, and
hotels.

"We continue to believe that KWE's focus on developing and
extending its Irish multifamily portfolio developments should
enrich its business risk assessment over the medium term. This is
because there is high demand for these assets and a supply gap for
multifamily homes. We also view the sector as more stable than
retail and hotels."

KWE's stand-alone credit metrics have deteriorated due to low
capital investment in assets. KWE's credit metrics have
deteriorated, with the reported loan-to-value (LTV) ratio
increasing to 56.7% as of June 30, 2019. This translates into a
ratio of debt to debt plus equity of about 57.9%, versus 56.8% as
of Dec. 31, 2018. This is close to the 60% threshold stipulated in
the financial covenant on the unsecured notes. KWE also reported a
weaker EBITDA interest coverage ratio of close to 2.1x in the
rolling 12 months to June 30, 2019, and debt to EBITDA of about
12.7x, versus an EBITDA interest coverage ratio of 2.4x and about
debt to EBITDA of 11.0x as of Dec. 31, 2018. S&P said, "We
understand that the deterioration in ratios is due to KWE investing
less capital in new assets and using more cash flow to upstream
dividends to the parent, in addition to weaker or slightly negative
like-for-like NOI. However, we understand that KWE's leverage
tolerance is aligned with that of KWH, which has full control of
its subsidiary."

S&P said, "Our stable outlook reflects our expectation that KWE
should remain core for KWH. We believe that a rating action on KWE
would most likely follow a rating action on its parent. We expect
that KWE's rental income will be underpinned by its diverse real
estate portfolio and relatively high weighted-average lease
structure.

"Our downside and upside scenarios also depend on negative or
positive rating actions on KWH."


MOTHERCARE PLC: Seeks to Protect Workers From Pension Cutbacks
--------------------------------------------------------------
Laura Onita at The Telegraph reports that Mothercare plc was racing
to protect thousands of staff and former workers from pension
cutbacks on Nov. 4 ahead of calling in administrators.

The toy and baby clothes seller is expected to dump its collapsing
UK arm, putting 2,500 jobs at risk, The Telegraph discloses.

According to The Telegraph, its retirement programme is almost
GBP140 million in the red, meaning if the British division goes
bust then the pensions lifeboat will be forced to step in --
triggering major cutbacks for 6,000 members of the scheme.

It comes after Mothercare admitted that its 79 stores are incapable
of making money, The Telegraph notes.  The chain is now calling in
PwC to act as administrator, The Telegraph relates.  However, the
ailing retailer's international business is still solvent and will
be unaffected by the administration, The Telegraph states.



                           *********


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,
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Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
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Editors.

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


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