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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

          Thursday, February 25, 2021, Vol. 22, No. 35

                           Headlines



F R A N C E

ACROPOLE BIDCO: Fitch Affirms 'B' LT IDR, Outlook Remains Negative


I R E L A N D

BOSPHORUS CLO VI: Moody's Gives (P)B2 Rating on Class F Notes
BOSPHORUS CLO VI: S&P Assigns Prelim. B Rating on Cl. F Notes
CLARINDA PARK: Moody's Rates EUR21MM Class D Notes 'Ba3'
OAK HILL V: Moody's Affirms B3 Rating on EUR12.9MM Class F Notes


I T A L Y

SAN MARINO: Fitch Assigns BB+ Rating on EUR340MM 2024 Notes
SIENA MORTGAGES 07-5: Moody's Affirms B3 Rating on Class C Notes


L U X E M B O U R G

AI CONVOY: Moody's Completes Review, Retains B2 CFR
MOGO FINANCE: Fitch Maintains 'B-' LongTerm IDR on Watch Negative


N O R W A Y

NORWEGIAN AIR: Boeing Not Engaging With Restructuring Proceedings
NORWEGIAN AIR: NAS Winds Up US Subsidiary in Florida


P O L A N D

GETIN NOBLE: Fitch Cuts LongTerm IDR to CCC, On Watch Negative


S E R B I A

DUNJA: Bankruptcy Auction Scheduled for March 30


S P A I N

ABENGOA SA: Files for Insolvency After Debt Restructuring Fails


S W E D E N

QUIMPER (AHLSELL): S&P Alters Outlook to Stable & Affirms 'B' ICR
QUIMPER AB: Moody's Affirms B2 CFR & Alters Outlook to Stable


S W I T Z E R L A N D

GARRETT MOTION: Moody's Assigns Ba3 CFR Amid Restructuring


T U R K E Y

[*] TURKEY: Bankruptcies Down 55.5% Year-on-Year in January


U N I T E D   K I N G D O M

LIQUID TELECOMMUNICATIONS: Moody's Rates $600MM Secured Notes 'B1'
VICTORIA PLC: Fitch Assigns BB Rating on EUR350MM Secured Notes
VICTORIA PLC: S&P Rates New EUR350MM Senior Secured Notes 'BB-'

                           - - - - -


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F R A N C E
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ACROPOLE BIDCO: Fitch Affirms 'B' LT IDR, Outlook Remains Negative
------------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Issuer Default Rating
(IDR) rating of French insurance brokerage group Acropole BidCo SAS
to 'B', maintaining the Negative Outlook. The senior secured
facilities issued by Sisaho International have been affirmed at
'B+'. The rated companies are the entities that form SIACI Saint
Honore (S2H), following their acquisition by private equity sponsor
Charterhouse.

The coronavirus pandemic affected parts of Acropole's business in
2020, with revenue shrinking in the health and protection division.
The successful integration of recent acquisitions and the initial
effects of a cost efficiency plan provide for an unaffected
business profile.

The Negative Outlook reflects the delayed deleverage prospects
deriving from slower growth due to the pandemic and the exhaustion
of the liquidity headroom provided by the revolving credit facility
(RCF). Fitch's leverage metrics will ease below Fitch's sensitivity
for a downgrade to 'B-' by 2022, one year later than Fitch
forecasted in 2019 before the pandemic began. Leverage increased in
2019 following an increase in M&A activity, including the
acquisition of Italian marine broker Cambiaso Risso.

Significant deleveraging during 2021 and improvements in its
Fitch-defined free cash flow (FCF) generation will be key for
Acropole to maintain its 'B' rating.

KEY RATING DRIVERS

Leverage Remains High: Leverage is high, with gross funds from
operations (FFO) leverage ending 2020 at over 8.0x. Fitch expects
this metric will come down below 7.0x, the upper limit for a 'B'
rating, by end-2022, one year later than Fitch previously
forecasted. Poor deleveraging is due to weak organic revenue growth
and limited profitability enhancements in 2020, both affected by
the pandemic.

The group's debt includes, in addition to its term loan B, a fully
drawn RCF and a set of local credit lines, and is the consequence
of the acceleration in acquisitions undertaken over 2019. Fitch
does not expect any RCF repayments over the next two years,
forecasting gross debt to remain steady.

Pandemic Reduces Growth: Fitch estimates reported revenue growth at
around 6% for 2020, lower than Fitch's previous forecasts of over
8%. Industrial risk protection (IRP) has been the main growth
engine over the year, led by the marine segment and recently
acquired companies including Cambiaso Risso. A decrease in health
and protection revenues drives underperformance relative to Fitch's
expectations, together with a flat result in international
mobility.

The recession caused by the pandemic significantly affected
temporary work contracts in France, lowering the demand for the
related healthcare policies, while low international travel,
especially by students, lowered the growth of mobility protection.

Slow Profitability Improvements: Fitch estimates Fitch-defined
EBITDA for 2020, adjusted for the application of IFRS 16, at EUR88
million, 14% ahead of 2019 and equivalent to a margin of around
20%. Reduced growth, and a delay in cost-cutting, means this is
below Fitch's previous forecast of EUR95 million (from November
2019).

Delays in the execution of the cost cuts, caused by the spread of
coronavirus, which affected savings in labour and IT costs, were
partially compensated for by use of furlough schemes in France and
abroad. The full-year effect of the saving measures will support an
around 1pp margin improvement in Fitch's forecast for 2021, with
slower expansion thereafter.

Low FCF Conversion: Fitch estimates moderately positive FCF for S2H
in 2020. Fitch expects the FCF margin to improve to higher
single-digit percentages for the next three years, pushed by
revenues and EBITDA growth. S2H's cash conversion is mainly
affected by high capex requirements for its sector, led by IT and
digital infrastructure investment.

Fitch assumes around EUR30 million of annual capital expenditure,
driven by platform integration requirements. However, Fitch
understands this should decline after a few years, particularly as
recently acquisitions are fully integrated. Fitch expects neutral
to positive cash flow from brokerage working capital for 2021 to
2023.

Insurers Payables Support Cash: Fitch estimates standalone
brokerage to generate an around break-even cash result for 2020,
affected by acquisitions, capex and restructuring costs. The final
tranche of an equity capital increase, and borrowings under local
facilities, mitigates the outflow. Non-trade working-capital
sources, such as cash related to premiums received from customers
to be transferred to insurers, are a key source of S2H's
liquidity.

Cambiaso Risso Drives IRP: Acquisitions made in 2019 led the growth
of IRP in 2020, making it the strongest S2H division for the year
with around 17% of estimated growth. An increase in market share
boosted the performance of the newly acquired businesses, Cambiaso
Risso in particular, despite the pandemic's impact on shipping.
This traditional marine operator provided S2H with an enhanced
brokerage footprint mainly for the Mediterranean, materially
improving the company's rankings with a combined shipping platform.
Fitch expects 2020 contract wins to support a strong performance in
2021.

Stable Sector Outlook: Fitch's outlook for non-life insurance in
France is stable. This includes business lines such as health and
protection, and property and casualty. Fitch expects the insurers
involved to absorb pandemic-induced losses and withstand economic
pressures on premiums and investment revenues. Fitch believes
broadly improving economic conditions in France are key for S2H to
increase its pace of growth. This applies in particular to health
and protection due to the company's exposure to policies for
temporary hires.

DERIVATION SUMMARY

Acropole's insurance brokerage business, trading as SIACI Saint
Honore, is focused on corporate clients and concentrated on certain
niches, mainly in France. The group holds a strong position in IRP,
particularly marine, and health and protection. The rating is based
on Acropole's market position, moderate EBITDA margin and cash
generation with high leverage.

S2H is smaller than Andromeda Investissements SAS (April,
B/Stable), and has a B2B business model, in contrast with April's
larger distribution platform and more diversified consumer-oriented
proposition. April's offering is aimed at retail clients mainly in
health and protection. Ardonagh Midco 2 plc (B-/Stable) is also
strong in retail and larger than S2H.

Both Acropole and Ardonagh have made significant acquisitions in
recent years. This has led to weaker credit metrics. S2H's Negative
Outlook also derives from coronavirus-related delays in reducing
costs, slowing the pace of deleverage of the company.

KEY ASSUMPTIONS

-- Like-for-like sales growth at 4.5% CAGR for 2020-2023
    including add-on acquisitions

-- EBITDA margin growth of about 4% by 2023 from 2019

-- Cumulative capex of around EUR125 million for 2020-2023

-- Earnouts on acquisitions negotiated and spread out over three
    years rather than one

-- Around EUR10 million of internal funding from insurance
    working capital over the next three years

Key Recovery Assumptions

The recovery analysis assumes that S2H would remain a going concern
in restructuring and that it would be reorganised rather than
liquidated. This is because most of the group's value hinges on the
brand, the client portfolio and the goodwill of relationships.
Fitch has assumed a 10% administrative claim in the recovery
analysis.

Fitch's analysis assumes a going-concern EBITDA of around EUR64
million, compared to projected LTM EBITDA to December 2020 of EUR88
million. At this level of going-concern EBITDA, which assumes
corrective measures have been taken, Fitch would expect the group
to generate breakeven to slightly positive FCF.

A restructuring scenario for the company may arise from an increase
in competition, including from insurtech companies, affecting
commissions pricing, and shrinking revenue and margins. Structural
market changes, affecting the technical profitability of insurers
in segments such as health and protection, may also drive
lacklustre prospects for S2H. Post-restructuring scenarios may
involve acquisition by a larger company, capable of connecting
S2H's clients within an existing platform.

Fitch's waterfall analysis generated a ranked recovery in the 'RR3'
band after deducting 10% for administrative claims, indicating a
'B+'/'RR3'/55% instrument rating for S2H's outstanding senior
secured debt. Fitch included in the waterfall EUR14 million of
local facilities that Fitch understands from management are mainly
borrowed within the restricted group, therefore ranking pari passu
with the senior secured liabilities.

RATING SENSITIVITIES

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

-- FFO leverage below 5.5x

-- FFO leverage at 7.5x or below for 2021 will be a supporting
    factor for the Outlook to be revised to Stable

-- FFO interest coverage above 2.5x

-- EBITDA margins at or higher than 25%

-- Successful integration of acquired companies leading to higher
    FFO through synergies

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

-- FFO leverage remaining above 7.0x, with a lack of significant
    deleveraging during 2021

-- FFO interest coverage below 2.0x

-- EBITDA margin declining towards 20%, due to stronger
    competition or more difficult operating conditions.

-- Ineffective integration of acquisitions weakening FCF

-- Further debt-financed acquisitions

-- Ongoing weak liquidity with high reliance on insurance working
    capital

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Liquidity Constrained: Liquidity is limited. Access to non-trade
working-capital sources, such as insurance premium cash, is a key
source of S2H's liquidity with the company's RCF facility fully
drawn and unlikely to be repaid over the next 24 months.

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.




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I R E L A N D
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BOSPHORUS CLO VI: Moody's Gives (P)B2 Rating on Class F Notes
-------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Bosphorus
CLO VI Designated Activity Company (the "Issuer"):

EUR2,000,000 Class X Secured Floating Rate Notes due 2034,
Assigned (P)Aaa (sf)

EUR217,000,000 Class A Secured Floating Rate Notes due 2034,
Assigned (P)Aaa (sf)

EUR26,750,000 Class B-1 Secured Floating Rate Notes due 2034,
Assigned (P)Aa2 (sf)

EUR10,000,000 Class B-2 Secured Fixed Rate Notes due 2034,
Assigned (P)Aa2 (sf)

EUR24,500,000 Class C Secured Deferrable Floating Rate Notes due
2034, Assigned (P)A2 (sf)

EUR19,600,000 Class D Secured Deferrable Floating Rate Notes due
2034, Assigned (P)Baa2 (sf)

EUR17,150,000 Class E Secured Deferrable Floating Rate Notes due
2034, Assigned (P)Ba2 (sf)

EUR10,500,000 Class F Secured Deferrable Floating Rate Notes due
2034, Assigned (P)B2 (sf)

RATINGS RATIONALE

The rationale for the rating is based on a consideration of the
risks associated with the CLO's portfolio and structure as
described in Moody's methodology.

The Issuer is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured obligations and up to 10%
of the portfolio may consist of senior unsecured obligations,
second-lien loans, mezzanine obligations and high yield bonds. The
portfolio is expected to be 85% ramped as of the closing date and
to comprise of predominantly corporate loans to obligors domiciled
in Western Europe. The remainder of the portfolio will be acquired
during the five months ramp-up period in compliance with the
portfolio guidelines.

Commerzbank AG, London Branch, will manage the CLO. It will direct
the selection, acquisition and disposition of collateral on behalf
of the Issuer and may engage in trading activity, including
discretionary trading, during the transaction's 4 year reinvestment
period. Thereafter, subject to certain restrictions, purchases are
permitted using principal proceeds from unscheduled principal
payments and proceeds from sales of credit risk obligations or
credit improved obligations.

Interest and principal amortisation amounts due to the Class X
Notes are paid pro rata with payments to the Class A notes. The
Class X Notes amortise by 12.5% or EUR 250,000 over eight payment
dates starting on the 2nd payment date.

In addition to the eight classes of notes rated by Moody's, the
Issuer will issue EUR 1.5 million of Class Z-1 Notes, EUR 1.5
million of Class Z-2 Notes and EUR 29.95 million of Subordinated
Notes which are not rated. The Class Z-1 and Class Z-2 Notes
receive payments in an amount equivalent to a certain proportion of
the senior and subordinated management fees respectively and its
notes' payment is pari passu with the payment of the management
fees.

The transaction incorporates interest and par coverage tests which,
if triggered, divert interest and principal proceeds to pay down
the notes in order of seniority.

The coronavirus outbreak, the government measures put in place to
contain it, and the weak global economic outlook continue to
disrupt economies and credit markets across sectors and regions.
Moody's analysis has considered the effect on the performance of
corporate assets from the current weak European economic activity
and a gradual recovery for the coming months. Although an economic
recovery is underway, it is tenuous and its continuation will be
closely tied to containment of the virus. As a result, the degree
of uncertainty around Moody's forecasts is unusually high.

Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety.

Methodology underlying the rating action:

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
December 2020.

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

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

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3 of
the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in December 2020.

Moody's used the following base-case modeling assumptions:

Par Amount: EUR 350,000,000

Diversity Score: 38

Weighted Average Rating Factor (WARF): 2775

Weighted Average Spread (WAS): 3.70%

Weighted Average Coupon (WAC): 4.00%

Weighted Average Recovery Rate (WARR): 45.0%

Weighted Average Life (WAL): 8.5 years


BOSPHORUS CLO VI: S&P Assigns Prelim. B Rating on Cl. F Notes
-------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to
Bosphorus CLO VI DAC's class X to F European cash flow CLO notes.
At closing, the issuer will also issue unrated notes.

The transaction securitizes a portfolio of primarily senior secured
leveraged loans and bonds. It will be managed by Commerzbank AG,
London Branch.

The preliminary ratings assigned to Bosphorus CLO VI's notes
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 S&P expects to be
bankruptcy remote.

-- The transaction's counterparty risks, which S&P expects to be
in line with its counterparty rating framework.

Under the transaction documents, the issuer can purchase loss
mitigation loans, which are assets of an existing collateral
obligation held by the issuer offered in connection with
bankruptcy, workout, or restructuring of such obligation, to
improve the recovery value of such related collateral obligation.

The purchase of loss mitigation loans is not subject to the
reinvestment criteria or eligibility criteria. It receives no
credit in the principal balance definition, although where the loss
mitigation loan meets the eligibility criteria with certain
exclusions, it is accorded defaulted treatment in the par coverage
tests. The cumulative exposure to loss mitigation loans is limited
to 10% of target par.

The issuer may purchase loss mitigation loans using either interest
proceeds, principal proceeds, or amounts standing to the credit of
the collateral enhancement account. The use of interest proceeds to
purchase loss mitigation loans is subject to (1) all the interest
and par coverage tests passing following the purchase, and (2) the
manager determining there are sufficient interest proceeds to pay
interest on all the rated notes on the upcoming payment date. The
usage of principal proceeds is subject to (1) passing par coverage
tests and the manager having built sufficient excess par in the
transaction so that (2) the principal collateral amount is equal to
or exceeds the portfolio's target par balance after the
reinvestment and (3) has a par value of less than its purchase
price.

To protect the transaction from par erosion, any distributions
received from loss mitigation loans that are either (1) purchased
with the use of principal, or (2) purchased with interest or
amounts in the supplemental account, but which have been afforded
credit in the coverage test, will irrevocably form part of the
issuer's principal account proceeds and cannot be recharacterized
as interest.

Payments on the class Z-1 notes will rank pro rata with senior
management fees in accordance with the transaction waterfall, which
in aggregate will total 15 basis points of the performing pool
balance. Interest payments on the class Z-1 notes will be fist used
to repay principal until the balance falls to EUR1.

Under the transaction documents, the rated notes will pay quarterly
interest unless there is a frequency switch event. Following this,
the notes will permanently switch to semiannual payment.

The portfolio's reinvestment period will end approximately 4.1
years after closing.

S&P said, "Our preliminary ratings reflect our assessment of the
preliminary collateral portfolio's credit quality, which has a
weighted-average 'B' rating (with an S&P Global Ratings'
weighted-average rating factor of 2,614.43). In our analysis, we
note that the current portfolio presented to S&P Global Ratings
contains a larger proportion of nonidentified assets than we would
typically see in other European CLO transactions. We consider that
the portfolio on the effective date will 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 EUR350 million target par
amount, the covenanted weighted-average spread (3.70%), the
covenanted weighted-average coupon (4.00%), and the covenanted
weighted-average recovery rates for all rating levels. As the
portfolio is being ramped, we have relied on indicative spreads and
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.

"Our credit and cash flow analysis indicate that the available
credit enhancement for the class B-1 to F notes could withstand
stresses commensurate with higher ratings than those we have
assigned. However, as the CLO is in its reinvestment phase, during
which the transaction's credit risk profile could deteriorate, we
have capped our preliminary ratings assigned to the notes. In our
view the portfolio is granular in nature, and well-diversified
across obligors, industries, and assets."

"The Bank of New York Mellon, London Branch, is the bank account
provider and custodian. At closing, we anticipate that the
documented downgrade remedies will be in line with our current
counterparty criteria.

"Under our structured finance sovereign risk criteria, the
transaction's exposure to country risk is sufficiently mitigated at
the assigned preliminary rating levels.

"At closing, we consider that the issuer will be bankruptcy remote,
in accordance with our legal criteria.

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe our preliminary ratings
are commensurate with the available credit enhancement for each
class of notes."

S&P Global Ratings believes there remains high, albeit moderating,
uncertainty about the evolution of the coronavirus pandemic and its
economic effects. Vaccine production is ramping up and rollouts are
gathering pace around the world. Widespread immunization, which
will help pave the way for a return to more normal levels of social
and economic activity, looks to be achievable by most developed
economies by the end of the third quarter. However, some emerging
markets may only be able to achieve widespread immunization by
year-end or later. S&P said, "We use these assumptions about
vaccine timing in assessing the economic and credit implications
associated with the pandemic. As the situation evolves, we will
update our assumptions and estimates accordingly."

S&P said, "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
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.

"As 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, we have not included the above scenario analysis results
for the class F notes."

Bosphorus CLO VI is a European cash flow CLO securitization of a
revolving pool, a portfolio of primarily senior secured leveraged
loans and bonds. Commerzbank AG, London Branch, will manage the
transaction.

  Ratings List

  Class   Prelim.   Prelim.       Interest rate*      Sub (%)
          Rating    amount
                   (mil. EUR)
  -----   -------  ----------     ----------------   --------
  Z-1     NR           1.50        N/A                  N/A
  X       AAA (sf)     2.00     Three-month EURIBOR     N/A
                                   plus 0.30%
  A       AAA (sf)   217.00   Three-month EURIBOR    38.00
                                   plus 0.85%
  B-1     AA (sf)     26.75     Three-month EURIBOR    27.50
                                   plus 1.35%
  B-2     AA (sf)     10.00     1.65%                  27.50
  C       A (sf)      24.50     Three-month EURIBOR    20.50
                                   plus 2.10%
  D       BBB (sf)    19.60     Three-month EURIBOR    14.90
                                   plus 3.43%
  E       BB (sf)     17.15     Three-month EURIBOR    10.00
                                   plus 5.80%
  F       B (sf)      10.50     Three-month EURIBOR     7.00
                                   plus 7.90%
  Z-2     NR           1.50        N/A                   N/A
  Sub A notes   NR     9.05        N/A                   N/A
  Sub B notes   NR    20.90        N/A                   N/A

*The payment frequency switches to semiannual and the index
switches to six-month EURIBOR when a frequency switch event occurs.

NR--Not rated.
N/A--Not applicable.


CLARINDA PARK: Moody's Rates EUR21MM Class D Notes 'Ba3'
--------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to the refinancing notes issued by
Clarinda Park CLO Designated Activity Company (the "Issuer"):

EUR690,000 Class X Senior Secured Floating Rate Notes due 2034,
Definitive Rating Assigned Aaa (sf)

EUR248,000,000 Class A-1 Senior Secured Floating Rate Notes due
2034, Definitive Rating Assigned Aaa (sf)

EUR40,000,000 Class A-2 Senior Secured Floating Rate Notes due
2034, Definitive Rating Assigned Aa2 (sf)

EUR26,000,000 Class B Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned A2 (sf)

EUR25,000,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned Baa3 (sf)

EUR21,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned Ba3 (sf)

EUR11,500,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2034, Definitive Rating Assigned B3 (sf)

RATINGS RATIONALE

The rationale for the ratings is based on a consideration of the
risks associated with the CLO's portfolio and structure as
described in Moody's methodology.

The Issuer issues the refinancing notes in connection with the
refinancing of the following classes of notes: Class A-1 Notes,
Class A-2 Notes, Class B Notes, Class C Notes and Class D Notes due
in 2029 (the "2019 Refinancing Notes"), previously issued on May
15, 2019 (the "2019 Refinancing Date") as well as the Class E Notes
due 2029 (the "2016 Original Notes"), previously issued on November
15, 2016 (the "Original Closing Date"). On the refinancing date,
the Issuer uses the proceeds from the issuance of the refinancing
notes to redeem in full the 2019 Refinancing Notes and the 2016
Original Notes.

On the Original Closing Date, the Issuer also issued EUR 45,100,000
of subordinated notes, which will remain outstanding. The terms and
conditions of the subordinated notes are amended in accordance with
the refinancing notes' conditions.

Interest and principal amortisation amounts due to the Class X
Notes are paid pro rata with payments to the Class A-1 Notes. The
Class X Notes amortise by EUR 240,000 on the first payment date and
by EUR 90,000 over the following five payment dates.

As part of this full refinancing, the Issuer renews the
reinvestment period at four years and extends the weighted average
life by four years to 8.5 years. It also amends certain
concentration limits, definitions and minor features. In addition,
the Issuer amends the base matrix and modifiers that Moody's takes
into account for the assignment of the definitive ratings.

The Issuer is a managed cash flow CLO. At least 90% of the
portfolio must consist of secured senior loans or senior secured
bonds and up to 10% of the portfolio may consist of unsecured
senior loans, second-lien loans, high yield bonds and mezzanine
loans. The underlying portfolio is expected to be fully ramped as
of the closing date; the modelled performing par amount is
marginally below the target par amount of EUR 400,000,000.

Blackstone Ireland Limited ("Blackstone") manages the CLO. It
directs the selection, acquisition and disposition of collateral on
behalf of the Issuer and may engage in trading activity, including
discretionary trading, during the transaction's four-year
reinvestment period. Thereafter, subject to certain restrictions,
purchases are permitted using principal proceeds from unscheduled
principal payments and proceeds from sales of credit risk
obligations or credit improved obligations.

The transaction incorporates interest and par coverage tests which,
if triggered, divert interest and principal proceeds to pay down
the notes in order of seniority.

The coronavirus outbreak, the government measures put in place to
contain it, and the weak global economic outlook continue to
disrupt economies and credit markets across sectors and regions.
Moody's analysis has considered the effect on the performance of
corporate assets from the current weak European economic activity
and a gradual recovery for the coming months. Although an economic
recovery is underway, it is tenuous and its continuation will be
closely tied to containment of the virus. As a result, the degree
of uncertainty around Moody's forecasts is unusually high.

Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
December 2020.

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

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

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3 of
the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in December 2020.

Moody's used the following base-case modeling assumptions:

Performing par*: EUR 399,506,234.03

Defaulted Par: EUR 2,500,000 as of January 2021 Trustee Report [1]

Diversity Score: 54

Weighted Average Rating Factor (WARF): 2950

Weighted Average Spread (WAS): 3.40%

Weighted Average Coupon (WAC): 4.0%

Weighted Average Recovery Rate (WARR): 43.0%

Weighted Average Life (WAL): 8.5 years

* Note that the modelled performing par amount considers negative
principal proceeds of EUR 3,193,800 as per January 2021 Trustee
Report [1] and EUR 300,288 principal cash injection as part of this
refinancing.


OAK HILL V: Moody's Affirms B3 Rating on EUR12.9MM Class F Notes
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the following
notes issued by Oak Hill European Credit Partners V Designated
Activity Company:

EUR47,600,000 Class B-1 Senior Secured Floating Rate Notes due
2030, Upgraded to Aa1 (sf); previously on Dec 8, 2020 Aa2 (sf)
Placed Under Review for Possible Upgrade

EUR12,200,000 Class B-2 Senior Secured Fixed Rate Notes due 2030,
Upgraded to Aa1 (sf); previously on Dec 8, 2020 Aa2 (sf) Placed
Under Review for Possible Upgrade

EUR25,900,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2030, Upgraded to A1 (sf); previously on Dec 8, 2020 A2
(sf) Placed Under Review for Possible Upgrade

EUR23,700,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2030, Upgraded to Baa1 (sf); previously on Sep 14, 2020
Confirmed at Baa2 (sf)

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

EUR260,800,000 Class A-1-R Senior Secured Floating Rate Notes due
2030, Affirmed Aaa (sf); previously on Sep 14, 2020 Affirmed Aaa
(sf)

EUR10,600,000 Class A-2 Senior Secured Fixed Rate Notes due 2030,
Affirmed Aaa (sf); previously on Sep 14, 2020 Affirmed Aaa (sf)

EUR30,400,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2030, Affirmed Ba2 (sf); previously on Sep 14, 2020
Confirmed at Ba2 (sf)

EUR12,900,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2030, Affirmed B3 (sf); previously on Sep 14, 2020
Downgraded to B3 (sf)

Oak Hill European Credit Partners V Designated Activity Company,
issued in January 2017 and refinanced in November 2019, is a
collateralised loan obligation (CLO) backed by a portfolio of
mostly high-yield senior secured European loans. The portfolio is
managed by Oak Hill Advisors (Europe), LLP. The transaction's
reinvestment period ended on February 21, 2021.

The action concludes the rating review on the Class B-1 Notes,
Class B-2 Notes and Class C Notes initiated on December 8, 2020,
"Moody's upgrades 23 securities from 11 European CLOs and places
ratings of 117 securities from 44 European CLOs on review for
possible upgrade.",
http://www.moodys.com/viewresearchdoc.aspx?docid=PR_437186.

RATINGS RATIONALE

The rating upgrades on the Class B-1 Notes, Class B-2 Notes, Class
C Notes and Class D Notes are primarily due to the update of
Moody's methodology used in rating CLOs, which resulted in a change
in overall assessment of obligor default risk and calculation of
weighted average rating factor (WARF). Based on Moody's
calculation, the WARF is currently 3040 after applying the revised
assumptions as compared to the trustee reported WARF of 3455 as of
January 2021.

The action also reflects the benefit of the shorter period of time
remaining before the end of the reinvestment period on 21 February
2021 vis a vis the date of the most recent trustee report as
above.

The rating affirmations on the Class A-1-R Notes, Class A-2 Notes,
Class E Notes and Class F Notes reflect the expected losses of the
notes continuing to remain consistent with their current ratings
after taking into account the CLO's latest portfolio, its relevant
structural features and its actual over-collateralization levels as
well as applying Moody's revised CLO assumptions.

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

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

Performing par and principal proceeds balance: EUR 443.4m

Defaulted Securities: EUR 10.5m

Diversity Score: 52

Weighted Average Rating Factor (WARF): 3040

Weighted Average Life (WAL): 4.85 years

Weighted Average Spread (WAS) (before accounting for Euribor
floors): 3.72%

Weighted Average Coupon (WAC): 4.87%

Weighted Average Recovery Rate (WARR): 45.12%

Par haircut in OC tests and interest diversion test: 0.13%

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

The coronavirus outbreak, the government measures put in place to
contain it, and the weak global economic outlook continue to
disrupt economies and credit markets across sectors and regions.
Moody's analysis has considered the effect on the performance of
corporate assets from the current weak global economic activity and
a gradual recovery for the coming months. Although an economic
recovery is underway, it is tenuous and its continuation will be
closely tied to containment of the virus. As a result, the degree
of uncertainty around Moody's forecasts is unusually high.

Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
December 2020.

Counterparty Exposure:

The rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank, using the
methodology "Moody's Approach to Assessing Counterparty Risks in
Structured Finance" published in June 2020. Moody's concluded the
ratings of the notes are not constrained by these risks.

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

This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the
notes, in light of uncertainty about credit conditions in the
general economy. In particular, the length and severity of the
economic and credit shock precipitated by the global coronavirus
pandemic will have a significant impact on the performance of the
securities. CLO notes' performance may also be impacted either
positively or negatively by: (1) the manager's investment strategy
and behavior and (2) divergence in the legal interpretation of CDO
documentation by different transactional parties because of
embedded ambiguities.

Additional uncertainty about performance is due to the following:

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

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




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

SAN MARINO: Fitch Assigns BB+ Rating on EUR340MM 2024 Notes
-----------------------------------------------------------
Fitch Ratings has assigned San Marino's senior unsecured EUR340
million notes maturing in 2024 a 'BB+' rating.

The net proceeds from the notes will be used by the issuer for
general development projects in San Marino, partial repayment of an
international loan taken to bridge borrowing needs for 2020, and
early repayment of San Marino government securities to enhance the
liquidity of the San Marino banking system.

KEY RATING DRIVERS

-- The ratings are in line with San Marino's Long-Term Foreign
    Currency Issuer Default Rating (IDR).

-- Fitch affirmed San Marino's Long-Term Foreign Currency IDR at
    'BB+' with a Negative Outlook on 9 October 2020.

RATING SENSITIVITIES

The bond's rating is sensitive to changes in San Marino's Long-Term
Foreign-Currency IDR.

The following were the rating sensitivities for the sovereign
rating published in the rating action commentary on 9 October
2020.

The main factors that could, individually or collectively, lead to
negative rating action/downgrade are:

-- Structural: Further increase in banking-sector vulnerabilities
    in asset quality and liquidity that would undermine financial
    stability and create additional contingent liability risks for
    the sovereign.

-- Public Finance: Debt remaining on an upward path over the
    medium term, reflecting, for example, a failure to narrow the
    fiscal deficit after the coronavirus subsides.

-- Structural/Macro: A substantial delay in implementation of
    structural reforms that would undermine the banking sector's
    return to profitability and prevent it from supporting the
    economic recovery through increased lending.

The main factors that could, individually or collectively, lead to
positive rating action/upgrade:

-- Structural Features: Evidence of a sustained reduction in
    banking sector's risks related to financial stability and
    contingent liabilities for the sovereign, for example through
    improvements in asset quality, liquidity and capital.

-- Public Finance: Reduction of public debt in the medium term,
    for example through stronger economic growth or fiscal
    adjustment.

BEST/WORST CASE RATING SCENARIO

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

SUMMARY OF DATA ADJUSTMENTS

The World Bank governance indicators are only available for two of
the six input factors for San Marino. For the remaining four input
factors, Fitch has used Italy's score as a proxy, with reasonable
confidence that the expected margin of error would not be
material.

Current account balance estimates by the authorities & IMF are only
available for 2017 - 2019. Fitch has estimated historical and
latest data with reasonable confidence using national accounts data
and IFS international liquidity data.

ESG CONSIDERATIONS

San Marino has an ESG Relevance Score of 5 for Political Stability
and Rights as WBGI have the highest weight in Fitch's SRM and are
highly relevant to the rating and a key rating driver with a high
weight.

San Marino has an ESG Relevance Score of 5 for Rule of Law,
Institutional & Regulatory Quality and Control of Corruption as
WBGI have the highest weight in Fitch's SRM and are therefore
highly relevant to the rating and are a key rating driver with a
high weight.

San Marino has an ESG Relevance Score of 4 for Human Rights and
Political Freedoms as the Voice and Accountability pillar of the of
the WBGI is relevant to the rating and a rating driver.

San Marino 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 San Marino, as for all sovereigns.

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(ies), either due to their nature or to the way in which
they are being managed by the entity(ies).


SIENA MORTGAGES 07-5: Moody's Affirms B3 Rating on Class C Notes
----------------------------------------------------------------
Moody's Investors Service has under review for possible downgrade
five notes, affirmed the rating of one note and upgraded the rating
of one note in three Italian RMBS deals originated by Banca Monte
dei Paschi di Siena S.p.A.:

The placing under review for possible downgrade reflects the
correction of an error identified in the analysis of Eligible
Investments for the affected transactions.

The upgrade reflects better than expected collateral performance
and the increased levels of credit enhancement for the affected
notes.

Moody's affirmed the rating of the notes that had sufficient credit
enhancement to maintain the current rating on the affected notes.

Issuer: Siena Mortgages 07-5 S.p.A

EUR4,765.9M Class A Notes, Aa3 (sf) Placed Under Review for
Possible Downgrade; previously on Oct 25, 2018 Downgraded to Aa3
(sf)

EUR157.45M Class B Notes, Aa3 (sf) Placed Under Review for
Possible Downgrade; previously on Oct 25, 2018 Downgraded to Aa3
(sf)

EUR239.0M Class C Notes, Affirmed B3 (sf); previously on Oct 25,
2018 Affirmed B3 (sf)

Issuer: Siena Mortgages 07-5, Series 2

EUR3,129.4M Class A Notes, Aa3 (sf) Placed Under Review for
Possible Downgrade; previously on Oct 25, 2018 Downgraded to Aa3
(sf)

EUR108.3M Class B Notes, Aa3 (sf) Placed Under Review for Possible
Downgrade; previously on Oct 25, 2018 Affirmed Aa3 (sf)

Issuer: SIENA MORTGAGES 2010 -7

EUR1,666.9M Class A3 Notes, Aa3 (sf) Placed Under Review for
Possible Downgrade; previously on Oct 25, 2018 Downgraded to Aa3
(sf)

EUR817.6M Class B Notes, Upgraded to Baa3 (sf); previously on Oct
25, 2018 Affirmed Ba3 (sf)

Maximum achievable rating is Aa3 (sf) for structured finance
transactions in Italy, driven by the corresponding local currency
country ceiling of the country.

RATINGS RATIONALE

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

Definition of Eligible Investments:

In previous rating actions, Moody's did not adequately take into
account the definition of Eligible Investments present in the
transactions. In the affected transactions the Issuer can as of
today invest cash in instruments rated at least Baa3 and redeemable
no later than the next following Calculation Date. When accounting
for the correct minimum criteria, the maximum rating consistent
with a Baa3 eligible investment criteria is A1 (sf) for senior
notes with standard linkage and A3(sf) for notes with strong
linkage, according to "Moody's Approach to Assessing Counterparty
Risks in Structured Finance". Mezzanine and junior ranking notes
typically fall into the "strong" category. However Moody's assessed
the linkage of Class B Notes in Siena Mortgages 07-5 S.p.A. and
Siena Mortgages 07-5, Series 2 as standard given their very limited
reliance on reserve funds and the monthly frequency of payment
dates for these transactions.

Moody's is placing under review for possible downgrade the ratings
of Notes that would otherwise be constrained by the Eligible
Investment cap, as it has been informed of the Issuer's intention
to take steps to amend the minimum threshold in the Eligible
Investment definition within a short timeframe.

Revision of Key Collateral Assumptions:

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

The performance of the transactions has continued to improve since
the last rating actions. Total delinquencies have decreased in the
past year, with 90 days plus arrears currently standing at 0.30%,
0.80% and 0.76% of the respective current pool balances for Siena
Mortgages 07-5 S.p.A., Siena Mortgages 07-5, Series 2 and SIENA
MORTGAGES 2010 -7. Cumulative defaults currently stand at 2.43%,
2.95% and 2.86% of the respective original pool balances on Siena
Mortgages 07-5 S.p.A., Siena Mortgages 07-5, Series 2 and SIENA
MORTGAGES 2010 -7, only marginally up from, respectively, 2.35%,
2.87% and 2.72% a year earlier.

Moody's decreased the expected loss assumption to, respectively,
1.60%, 2.00% and 3.40% as a percentage of the respective original
pool balances on Siena Mortgages 07-5 S.p.A., Siena Mortgages 07-5,
Series 2 and SIENA MORTGAGES 2010 -7 from 1.97%, 2.54% and 3.65%
due to the improving performance.

Moody's has also assessed loan-by-loan information as a part of its
detailed transactions' review to determine the credit support
consistent with target rating levels and the volatility of future
losses. As a result, Moody's has maintained the MILAN CE
assumptions at their current levels of, respectively, 10.00%,
14.10% and 12.50% on Siena Mortgages 07-5 S.p.A., Siena Mortgages
07-5, Series 2 and SIENA MORTGAGES 2010 -7.

Increase in Available Credit Enhancement

Non-amortizing reserve funds and trapping of excess spread led to
the increase in the credit enhancement available in SIENA MORTGAGES
2010 -7.

For instance, the credit enhancement on Class B Notes increased to
8.88% from 6.12% since the last rating action.

Counterparty Exposure

The rating actions took into consideration the notes' exposure to
relevant counterparties, such as servicer, account banks or swap
providers.

The coronavirus outbreak, the government measures put in place to
contain it, and the weak global economic outlook continue to
disrupt economies and credit markets across sectors and regions.
Moody's analysis has considered the effect on the performance of
consumer assets from the current weak Italian economic activity and
a gradual recovery for the coming months. Although an economic
recovery is underway, it is tenuous and its continuation will be
closely tied to containment of the virus. As a result, the degree
of uncertainty around Moody's forecasts is unusually high.

Moody's regards the coronavirus outbreak as a social risk under its
ESG framework, given the substantial implications for public health
and safety.

The principal methodology used in these ratings was 'Moody's
Approach to Rating RMBS Using the MILAN Framework' published in
December 2020.

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

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

Factors or circumstances that could lead to an upgrade of the
ratings include (1) performance of the underlying collateral that
is better than Moody's expected, (2) an increase in available
credit enhancement, (3) improvements in the credit quality of the
transaction counterparties and (4) a decrease in sovereign risk.

Factors or circumstances that could lead to a downgrade of the
ratings include (1) an increase in sovereign risk, (2) performance
of the underlying collateral that is worse than Moody's expected,
(3) deterioration in the notes' available credit enhancement and
(4) deterioration in the credit quality of the transaction
counterparties.




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

AI CONVOY: Moody's Completes Review, Retains B2 CFR
---------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of AI Convoy (Luxembourg) S.a.r.l. and other ratings that
are associated with the same analytical unit. The review was
conducted through a portfolio review discussion held on February
12, 2021 in which Moody's reassessed the appropriateness of the
ratings in the context of the relevant principal methodology(ies),
recent developments, and a comparison of the financial and
operating profile to similarly rated peers. The review did not
involve a rating committee. Since January 1, 2019, Moody's practice
has been to issue a press release following each periodic review to
announce its completion.

This publication does not announce a credit rating action and is
not an indication of whether or not a credit rating action is
likely in the near future. Credit ratings and outlook/review status
cannot be changed in a portfolio review and hence are not impacted
by this announcement.

Key rating considerations

AI Convoy (Luxembourg) S.a.r.l. (Cobham)'s B2 corporate family
rating reflects the company's key role and entrenched positions in
multiple defence and commercial aerospace programmes with strategic
importance for large Original Equipment Manufacturers and their
clients, including the US Department of Defense.

Moody's rating also reflects Cobham's relatively small scale with
some revenue concentration in the US and indirectly with the US
government. The rating also considers the company's high level of
Moody's-adjusted leverage and a financial policy with a record of
dividend distributions from disposal proceeds which is likely to
limit deleveraging.

The principal methodology used for this review was Aerospace and
Defense Methodology published in July 2020.


MOGO FINANCE: Fitch Maintains 'B-' LongTerm IDR on Watch Negative
-----------------------------------------------------------------
Fitch Ratings has maintained Mogo Finance S.A.'s Long-Term Issuer
Default Ratings (IDR) of 'B-', senior secured debt rating of
'B-'/'RR4' and Short-Term IDR of 'B' on Rating Watch Negative
(RWN).

Fitch placed Mogo on RWN on 23 November 2020 to reflect a material
reduction in tangible equity, due to foreign-currency (FX) losses
and increased levels of intangible assets following bolt-on
acquisitions during the quarter.

Latvia-based Mogo is a specialised auto finance and leasing company
operating across eastern Europe, central Asia and Africa, using its
sectoral expertise to finance used cars, which are typically beyond
the risk appetite of commercial banks. International expansion
partially mitigates its small niche size, with Mogo actively
operating in 14 countries. Mogo plans to exit a number of markets
currently on hold by 2021 to deleverage and boost profitability. It
recently expanded into unsecured high-cost consumer loans, which
account for 20% of its net portfolio.

In accordance with Fitch's policies, the issuer appealed and
provided additional information to Fitch that resulted in a rating
action that is different than the original rating committee
outcome.

KEY RATING DRIVERS

The maintained RWN reflects continued pressure on Mogo's credit
profile, due to the adverse economic effects of the coronavirus
pandemic and the upcoming refinancing of Mogo's EUR100 million bond
in July 2022 (44% of its total third-party funding). Measures taken
since 4Q20 to improve Mogo's capitalisation have incrementally
strengthened the company's creditworthiness but remain subject to
execution risks, which is reflected in the RWN.

Following the receipt of a EUR5 million subordinated loan from its
shareholders in February 2021, Fitch estimates that leverage,
defined as gross debt to tangible equity (including subordinated
loans qualifying for 100% equity credit), will improve to just
below 8x at the end of February. Exit from some markets and the
sale of local subsidiaries could further support Mogo's
deleveraging in the short term.

In Fitch's view, Mogo's capitalisation is key for its continued
access to external funding. Fitch assessment of the quality of
Mogo's capital is weighed down by high levels of intangible assets
and receivables from related parties. However, the scheduled
reduction in related-party exposures by end-1Q22 and the expected
conversion into cash over 1H21 of the fair-value revaluation of
acquired high-cost consumer portfolios should improve capital
quality and support further deleveraging.

Fitch considers more immediate refinancing risk as less pronounced,
given the size of maturities over the next few months, supported by
Mogo's access to Mintos, an online peer-to-peer lending platform.
Fitch expects Mogo to successfully refinance the EUR30 million
senior unsecured bond (not rated) issued by its Latvian subsidiary
in February or March.

Management expects leverage to progressively reduce, helped by
Mogo's newly-acquired high-yielding consumer loan businesses.
However, Mogo's appetite for leverage remains elevated.
Furthermore, given the size of the equity base, it remains exposed
to downside risks from FX losses and impairment expenses.
Positively, Mogo has partially reduced and plans to further reduce
its FX risk in 2021. The company's expansion into unsecured loans,
which it intends to cap at 25% of the total portfolio, carry high
interest rates and exposes the company to Customer Welfare risks,
which Fitch assigns an ESG score of '4'.

Mogo's corporate governance framework is characterised by limited
independent board oversight, a multi-layered holding structure,
concentrated ownership and material related party transactions.
This constrains Mogo's ratings and is reflected in Fitch's ESG
scores of '4' for Governance Structure and Group Structure.

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

RATING SENSITIVITIES

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

-- Leverage increasing sustainably above 8x or a further
    deterioration in Mogo's capital quality would lead to a
    downgrade. Pressure on the rating would also stem from lower
    inclusion of shareholders' loans into equity, if their size
    was to further increase relative to the group's overall
    capital structure or if their maturity was not extended in
    conjunction with the bond refinancing in July 2022.

-- Inability to address the sizeable bond maturity in July 2022
    well ahead of time or a material increase in cost of funding
    from peer-to-peer platforms would lead to a downgrade.

-- A marked deterioration in asset quality and further FX losses,
    ultimately threatening the company's solvency, could also lead
    to a downgrade.

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

-- Lower recovery assumptions, due for instance to operating
    entity debt increasing in importance relative to rated debt or
    worse-than-expected asset-quality trends (which could lead to
    higher asset haircuts), could lead to below-average recoveries
    and Fitch to notch down the rated debt from Mogo's Long-Term
    IDR.

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

-- Fitch could affirm Mogo's rating if leverage was below 8x for
    a sustained period, quality of capital improved, and tangible
    progress was made in Mogo's refinancing strategy for the
    sizeable July 2022 bond maturity. Reduced funding
    concentration and demonstrated access to wholesale lenders at
    adequate conditions could also support an affirmation.

-- Further deleveraging commitments, a lower open FX position and
    a stabilisation of the operating environment in the medium
    term could support an upgrade.

-- An upgrade of Mogo's Long-Term IDR would likely be mirrored on
    the company's senior secured bond rating.

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

ESG Considerations

Mogo has an ESG Relevance Score of '4' for Governance Structure and
Group Structure. Governance Structure reflects a number of issues
around related-party transactions and concentration of
decision-making. Group Structure reflects Fitch's reservations
about the appropriateness of Mogo's organisational structure
relative to the company's business model and intra-group dynamics.
These issues have a moderately negative impact on the rating.

Fitch has revised Mogo's ESG Relevance Score for Customer Welfare
to '4' from '3'. This reflects Fitch's view that Mogo's entry to
the high-cost credit sector means that its business model is
sensitive to potential regulatory changes (such as lending caps)
and conduct-related risks. These issues have a moderately negative
impact on the rating.

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance for Mogo 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.

BEST/WORST CASE RATING SCENARIO

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




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

NORWEGIAN AIR: Boeing Not Engaging With Restructuring Proceedings
-----------------------------------------------------------------
Conor Humphries at Reuters reports that Boeing is not engaging with
Norwegian Air's restructuring proceedings in Ireland or Norway, a
lawyer for Norwegian said on Feb. 24, a decision that may
complicate the airline's efforts to recover from the brink of
collapse.

Norwegian was given protection from bankruptcy in both Norway and
Ireland, where most of its assets are registered, late last year
and is aiming to emerge from the process with fewer aircraft and
less debt, Reuters recounts.

According to Reuters, Brian Kennedy told Ireland's High Court
Boeing "to date hasn't engaged in the examinership process, or the
Norwegian reconstruction . . . it is not anticipated that Boeing
will engage in either".

Norwegian last year unilaterally terminated its remaining orders
with Boeing for 97 aircraft and sought compensation for the
grounding of the Boeing 737 MAX jets and technical problems with
787 Dreamliners, Reuters discloses.

Boeing has contested the move and also made counterclaims against
Norwegian, Reuters relays, citing documents filed by the airline.

Mr. Kennedy said Boeing wrote to the Norwegian official overseeing
Norwegian's restructuring in that country on Dec. 28 saying that
neither Boeing nor its affiliates submit to the jurisdiction of the
Norwegian courts, Reuters notes.

He said it is Norwegian Air's understanding that it is taking a
similar position in relation to the Irish process, according to
Reuters.


NORWEGIAN AIR: NAS Winds Up US Subsidiary in Florida
----------------------------------------------------
The Irish Times reports that Norwegian Air Shuttle (NAS) is winding
up a US subsidiary that hired crew for long-haul flights.

According to The Irish Times, the news comes as the Scandinavian
group and four Irish subsidiaries are due back in the High Court
today, Feb. 25, to apply to end aircraft leases and other
contracts.

Fort Lauderdale, Florida-based Norwegian Air Resources US Inc.
filed for bankruptcy in the US bankruptcy court for the southern
district of Florida this week, The Irish Times relates.

The company hired crew for the group's long-haul services, which it
is axing as it cuts back operations and its fleet in a bid to
restructure, The Irish Times notes.

The High Court appointed Kieran Wallace of KPMG as examiner to NAS
and its Irish subsidiaries in November, The Irish Times recounts.
The group chose the Republic's courts as its aircraft were held
through companies registered in Ireland, The Irish Times states.

Last week, the court extended the examinership to April 16, The
Irish Times relays.  NAS, The Irish Times says, has agreed to
settle outstanding leases with several creditors, but will apply to
end other such contracts today, Feb. 25.




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

GETIN NOBLE: Fitch Cuts LongTerm IDR to CCC, On Watch Negative
--------------------------------------------------------------
Fitch Ratings has downgraded Getin Noble Bank S.A.'s Long Term
Issuer Default Rating (IDR) to 'CCC' from 'CCC+' and Viability
Rating (VR) to 'ccc' from 'ccc+', and placed the ratings on Rating
Watch Negative (RWN).

The rating actions follows the bank's announcement that it has
breached its total capital requirement (based on the Capital
Requirements Regulation (CRR)) of 8% due to the booking of legal
provisions on the Swiss franc mortgage portfolio, the increased
recognition of IFRS 9 reserves in regulatory capital and the
estimated contribution to the bank resolution fund, which it
recognises up front for the year. The bank indicated that its total
capital ratio has fallen to 7.5%. This has also resulted in a
breach of the bank's legal requirement for the Tier 1 ratio of
7.02% (including a Pillar 2 buffer for Swiss franc mortgages).
Fitch estimates the bank's Tier 1 ratio has fallen to about 6.3%.

Fitch expects to resolve the RWN once Fitch has more clarity about
the potential losses from the legal risks on the bank's Swiss franc
mortgage portfolio stemming from the growing number of legal cases
filed against the bank and the ruling of the Polish Supreme Court
relating to these loans, and in turn, their impact on the bank's
modest capital ratios, which is expected on 25 March 2021.

In accordance with Fitch's policies, the issuer appealed and
provided additional information to Fitch that resulted in a rating
action that is different than the original rating committee
outcome.

KEY RATING DRIVERS

IDR, VR and NATIONAL RATINGS

Getin's ratings mainly reflect the bank falling deeper into breach
of its capital requirements and persistent losses. Getin's failure
is a real possibility because its capacity to replenish its capital
is highly vulnerable to the economic fallout from the coronavirus
outbreak and legal risks stemming from its foreign currency (mainly
Swiss franc) retail mortgage portfolio. Fitch believes the economic
implications of the pandemic and the continued inflow of legal
cases filed by borrowers create additional risks to Fitch's
assessment of Getin's capitalisation, profitability and asset
quality.

Getin's capital position has been weakened by persistent losses
since 2017. The bank breached its total capital ratio legal
requirement (including the Pillar 2 add-on related to Swiss franc
mortgages) in mid-March 2020 and was already in breach of its
combined buffer requirement in 2018. The latter was driven by an
increase in risk weights on foreign-currency denominated mortgages
to 150%, which has been further exacerbated by appreciation of the
Swiss franc against the Polish zloty.

Getin plans to address its capital shortfalls mainly through
improved profitability and amortisation of high capital-absorbing
Swiss franc loans (resulting in a 3% reduction of risk-weighted
assets annually according to the bank). Fitch believes internal
capital generation in the current environment will be challenging
for Getin and realistically it will take the bank several years to
restore its capital ratios above the pre-Covid-19 combined buffer
requirement. However, Fitch does not expect immediate sanctions on
the bank as long as management is able to demonstrate some
profitability improvements. The regulator has publicly stated that
it will take a pragmatic approach to cases of temporary
non-compliance driven by coronavirus-related turbulence.

Legal risks related to the Swiss franc mortgage portfolio continue
rising, reflected in the increased numbers of lawsuits filed
against Getin, and the increasing share of these that are being
lost by the bank. The bank's legal provision coverage of the
portfolio increased to about 3.4% of the outstanding Swiss franc
mortgage book, after the announced PLN110 million charge, but
remains below the levels recorded by other Polish banks with
material Swiss franc mortgage exposures. In Fitch's view, legal
provisions coupled with expected elevated loan impairment charges
as asset quality risks from the pandemic materialise, will continue
to weigh on the bank's profitability, making it difficult to
address capital needs in the short to medium term.

The Polish Supreme Court is set to rule on issues related to
lawsuits filed by Swiss franc mortgage borrowers against banks on
25 March 2021. The ruling should clarify the potential substitution
of currency conversion clauses, the way the borrowers and banks
should settle, in case of contract invalidity, and whether banks
should be remunerated by borrowers for use of the funds, since loan
origination, when a contract is cancelled. This would remove
significant uncertainty about the potential magnitude of losses for
banks in case of lost court cases.

The National Ratings reflect the bank's creditworthiness relative
to Polish peers.

SUPPORT RATING and SUPPORT RATING FLOOR

The Support Rating Floor (SRF) of 'No Floor' and the Support Rating
(SR) of '5' for Getin express Fitch's opinion that potential
sovereign support for the bank cannot be relied upon.

This is underpinned by the Polish resolution legal framework, which
requires senior creditors to participate in losses, if necessary,
instead of a bank receiving sovereign support.

RATING SENSITIVITIES

IDRS, VR

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

-- The main trigger for a downgrade of the bank's Long-Term IDR
    and VR is a material and lasting widening of the capital
    shortfall that remains unaddressed, whether due to an increase
    in legal claims related to Swiss franc mortgages or other
    factors. In particular Fitch would downgrade the bank if it
    sustainably breaches its legal Tier 1 capital requirement of
    6%.

-- Fitch will also downgrade Getin if the bank fails to improve
    its earnings to the level allowing absorption of the IFRS 9
    amortisation in its regulatory capital. This could be achieved
    through further improved funding and operating cost
    efficiency, but derailed by the need to further materially
    provision for Swiss franc mortgages' legal risk.

-- If the bank becomes dependent on prolonged regulatory
    forbearance of an extraordinary nature, this will also lead to
    a downgrade of the VR, but the Long-Term IDR could be affirmed
    if Fitch believes the risk of a default on senior obligations
    has not increased materially.

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

-- Getin's ratings could be upgraded if the bank manages to
    restore its internal capital generation and sustainably
    increase its capital ratios to levels above regulatory
    requirements. This could also be achieved through successful
    securitisation of credit risk from its Swiss franc mortgage
    portfolio that materially improves capital ratios or a
    sustained improvement of profitability.

NATIONAL RATINGS

The National Ratings are sensitive to changes in the bank's
Long-Term IDR.

SUPPORT RATING AND SUPPORT RATING FLOOR

An upgrade of Getin's SR and upward revision of the bank's SRF
would be contingent on a positive change in the sovereign's
propensity to support the bank, which Fitch does not expect given
resolution legislation in place.

BEST/WORST CASE RATING SCENARIO

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

ESG CONSIDERATIONS

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




===========
S E R B I A
===========

DUNJA: Bankruptcy Auction Scheduled for March 30
------------------------------------------------
Dragana Petrushevska at SeeNews reports that Serbia's Bankruptcy
Supervision Agency said it is offering for sale insolvent
confectionery producer Dunja at an auction on March 30.

The Bankruptcy Supervision Agency said in a notice on Feb. 23 the
starting price is set at RSD187.9 million (US$1.9 million/EUR1.6
million), SeeNews relates.

According to SeeNews, a deposit of RSD75.2 million which should be
paid by March 23 is required in order to participate in the
auction.




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

ABENGOA SA: Files for Insolvency After Debt Restructuring Fails
---------------------------------------------------------------
Irene Garcia Perez at Bloomberg News reports that renewable energy
group Abengoa SA filed for insolvency late on Feb. 23, after its
latest attempt to restructure its debts fell apart.

According to Bloomberg, the parent company of the renewable-energy
producer, which is the entity that filed for insolvency, had around
EUR1 billion (US$1.22 billion) of liabilities in 2019.  The group
as a whole had EUR7.9 billion in liabilities as of March 31,
Bloomberg relays, citing latest earnings statement.

The company said in the filing the board of directors is seeking
alternatives to ensure the subsidiaries that carry out the group's
activities remain viable, Bloomberg notes.

On Feb. 23, the Spanish regulator initiated a disciplinary
procedure against the company and its board for the offense of
failing to report earnings on time, Bloomberg relates.

Abengoa reached a deal with its creditors in August to restructure
its debt and obtain additional liquidity, Bloomberg recounts.  The
agreement fell apart on Feb. 22 after it failed to secure EUR20
million from Andalusia's regional government, Bloomberg discloses.




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

QUIMPER (AHLSELL): S&P Alters Outlook to Stable & Affirms 'B' ICR
-----------------------------------------------------------------
S&P Global Ratings revised its outlook on Quimper, Nordic materials
distributor Ahlsell's intermediate parent, to stable from negative,
and affirmed its 'B' ratings on the company.

S&P said, "The stable outlook reflects our view that the company
will continue to benefit from resilient building materials
end-markets, while generating free operating cash flow (FOCF) in
excess of SEK1.8 billion and with adjusted leverage of about
5.4x-5.6x.

"The pandemic continues to have limited impact on Ahlsell.  
Lockdowns measures have been less severe in the Nordics than in
continental Europe and have had a limited immediate impact on
Ahlsell's operations so far. Building materials companies are
considered essential to the Nordic economies. Ahlsell's
distribution network remains fully open and operational. The
company also benefitted from government support, such as temporary
lay-offs and sick pay compensation, which reduced costs by
approximately SEK50 million. We also note that Ahlsell's strong
digital offering, with e-sales making up about 30% of total, could
support the business should its branches be closed.

"After solid results in 2020, we forecast a resilient performance
for Ahlsell in 2021.   In 2020, Ahlsell's reported revenue
increased by 0.5%, and 1.2% on an organic basis. Sweden, which
represents about 70% of the group's sales, was the main source of
growth while Norway and Finland slightly lagged. Ahlsell also
benefitted from a good end to 2020, on the back of an increased
number of trading days during the holiday season in Sweden and
Norway. Importantly, operating profits spiked, with reported EBITA
up by 20% from the previous year, and a reported EBITA margin of
9.3%. This was possible thanks to a favorable business mix, its
cost-savings program, a slightly positive impact from the number of
trading days, lower travel and marketing costs, and government
support. We expect Ahlsell's end-markets to remain resilient,
particularly the renovation end-market, and that the Norwegian
activity will recover from its mild slowdown.

"We expect Ahlsell's FOCF to remain robust.   In 2020, Ahlsell
generated FOCF of about SEK2.8 billion, boosted by the strong
performance, positive working capital development, and the
postponement of tax payments. While FOCF should moderate in 2021,
as the company replenishes inventories and catches up on tax
payments, we believe it will remain well above SEK1.8 billion in
the coming years."

The contemplated refinancing will result in a decrease of Ahlsell's
adjusted leverage.   Ahlsell plans to raise a SEK2.5 billion add-on
to its first-lien term loan. Together with SEK1.5 billion of cash,
the add-on will be used to repay the second-lien term loan. This
would translate into gross debt reduction of about SEK1.5 billion.
Upon completion of the transaction, we forecast that our adjusted
leverage (post-Interntional Financial Reporting Standard 16 and
gross of cash) will decrease to about 5.4x-5.6x in 2021-2022. In
addition, the transaction should result in a reduction of interest
expenses.

S&P said, "We do not expect significant change in Ahlsell's
strategy.   We understand that Ahlsell will continue focusing on
improving its operations, mainly through improvement of its sales
mix, development of its three product verticals, branches'
portfolio optimization, and cost controls. We expect that excess
cash will continue to fund bolt-on acquisitions. However, we cannot
exclude a transformational merger or acquisition (M&A) or
shareholder dividend distributions coming from its financial
sponsor CVC Capital Partners."

S&P Global Ratings believes there remains high, albeit moderating,
uncertainty about the evolution of the coronavirus pandemic and its
economic effects.

Vaccine production is ramping up and rollouts are gathering pace
around the world. Widespread immunization, which will help pave the
way for a return to more normal levels of social and economic
activity, looks to be achievable by most developed economies by the
end of the third quarter. However, some emerging markets may only
be able to achieve widespread immunization by year-end or later.
S&P said, "We use these assumptions about vaccine timing in
assessing the economic and credit implications associated with the
pandemic. As the situation evolves, we will update our assumptions
and estimates accordingly."

The stable outlook reflects S&P's view that the company will
continue to benefit from resilient building materials end-markets,
while generating FOCF in excess of SEK1.8 billion and with adjusted
leverage of about 5.4x-5.6x.

S&P could lower the ratings if:

-- Adjusted debt to EBITDA remained above 6.5x over a prolonged
period;

-- The group experienced severe margin pressure or operational
issues, leading to much lower FOCF;

-- Liquidity pressure arose;

-- Quimper and its sponsor were to follow a more aggressive
strategy with regards to higher leverage or shareholder returns.

In S&P's view, the probability of an upgrade over our 12-month
rating horizon is limited, reflecting the group's high leverage.
Private equity ownership could increase the possibility of higher
leverage or shareholder returns. For this reason, S&P could
consider raising the rating if:

-- Adjusted debt to EBITDA reduced consistently to below 5x;

-- Funds from operations (FFO) to debt increased consistently to
above 12%; and

-- Ahlsell and its owners showed commitment to lowering and
maintaining leverage metrics at these levels.


QUIMPER AB: Moody's Affirms B2 CFR & Alters Outlook to Stable
-------------------------------------------------------------
Moody's Investors Service has changed the outlook on Quimper AB's
(Ahlsell) ratings to stable from negative and affirmed the B2
corporate family rating, the B2-PD probability of default rating.
Concurrently, Moody's has downgraded the instrument ratings on
senior secured first lien credit facilities to B2 from B1,
consisting of the proposed amended and upsized term loan B and a
SEK2.25 billion senior secured revolving credit facility (RCF).

The company announced its plans to reprice its existing term loan B
and to issue an EUR250 million senior secured first lien term loan
B add-on. Proceeds from the proposed SEK2.5 billion equivalent
issuance together with SEK1.5 billion cash on balance sheet will be
used to fully repay its existing SEK3.9 billion of senior secured
second lien term loan, as well as to cover any transaction related
fees and expenses. The transaction will lead to around 0.4x gross
leverage reduction and to lower annual interest payment, which will
support free cash flow (FCF) generation.

Moody's has aligned the first lien term loan B and the RCF
instrument ratings with the CFR, because the envisaged transaction
will remove the first loss cushion provided by the second lien term
loan.

RATINGS RATIONALE

The change in the outlook has been triggered by (i) Ahlsell's
ability to improve its operating performance in 2020 despite the
pandemic, including operating margin expansion and continued
positive FCF generation, (ii) the anticipated debt reduction, which
together with earnings growth reduces Moody's adjusted debt /EBITDA
to around 5.9x in 2020 from 6.8x in 2019, and (iii) Moody's
forecast of gradual operating performance improvement in the next
12-18 months, which translates to Moody's adjusted Debt/EBITDA of
around 5.5x and FCF/Debt of around 5%.

The B2 corporate family rating (CFR) of Ahlsell continues to
reflect its (1) leading market positions in Sweden within HVAC,
Electricals and Tools; (2) well-established omni-sales channels,
supported by over 230 branches across Sweden, Norway and Finland;
(3) industry leading EBITA-margin, with Sweden showing 10%-12% in
the last eight years, reflective of strong market positions; and
(4) its solid liquidity profile with superior record to generate
positive FCF with only 1 year of negative FCF since 2006.

However, the rating is constrained by (1) high financial leverage,
with a pro forma Moody's-adjusted debt/EBITDA of 5.9x in 2020; (2)
low but improving single digit EBITA margins in Norway and Finland,
mainly due to a lack of sufficient scale; (3) its significant
exposure to cyclicality of some of its end markets, such as new
construction and industrial production, to some extent mitigated by
the company's overall broad end market exposure and its ability to
outgrow the market historically, and (4) risk of increased pricing
pressures making it difficult to expand margins significantly.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

In terms of governance, Ahlsell is a private company owned by the
private equity firm CVC Capital Partners. The financial policy is
fairly aggressive, as illustrated by the high starting leverage
following LBO, but with the commitment to deleverage the balance
sheet. Over the past years, the company's growth strategy has been
largely organic and supplemented by a number of bolt-on
acquisitions funded by positive FCF.

LIQUIDITY

Ahlsell's liquidity is good, supported by a pro forma cash balance
of SEK2.7 billion at December 2020 and by a SEK2.25 billion undrawn
revolving credit facility maturing in 2025. There are intra-year
working capital swings, where there generally is a buildup in Q1-Q3
and a subsequent release in Q4, all expected to be covered by
internally generated cash flows. Moody's expect ample covenant
headroom, given the maintenance covenant stipulating that FLNLR
must be lower than 9x whenever 40% or more of the RCF has been
utilized.

STRUCTURAL CONSIDERATIONS

In Moody's loss-given-default (LGD) assessment, the group's senior
secured first lien term loan and the senior secured RCF rank pari
passu amongst each other and share the same security interest and
guarantees of entities of the group representing at least 80% of
consolidated EBITDA. Given the weak collateral value of the
security (consisting mainly of share pledges, bank accounts,
intercompany receivables) these facilities rank first together with
unsecured trade payables, pension obligations and short term lease
commitments at the level of operating entities.

OUTLOOK

Ahlsell is strongly positioned in the B2 rating category. The
stable outlook rests on the assumption that the company will
maintain its profitability levels at around 7.5% operating margin
(Moody's adjusted) and record low single digit revenue growth in
the next 12-18 months, which will translate into Moody's-adjusted
debt / EBITDA of around 5.5x and FCF / Debt of around 5%. The
forward view does not incorporate any debt-funded acquisitions or
shareholder distributions.

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

Positive ratings pressure would arise should debt/EBITDA reduce
below 5.25x on a sustained basis, operating margins in high single
digits or above and FCF/ debt remains in high single digits.

The company's ratings could be downgraded if debt/EBITDA is above
6.5x, operating margins decline below 7%, FCF/debt reduces below 2%
or liquidity deteriorates.

LIST OF AFFECTED RATINGS

Issuer: Quimper AB

Affirmations:

LT Corporate Family Rating, Affirmed B2

Probability of Default Rating, Affirmed B2-PD

Downgrades:

1st lien Senior Secured Bank Credit Facility, Downgraded to B2
from B1

Outlook Actions:

Outlook, Changed To Stable From Negative

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Distribution &
Supply Chain Services Industry published in June 2018.

COMPANY PROFILE

Headquartered in Stockholm, Sweden, Quimper AB (Ahlsell) is a
pan-Nordic wholesale distributor providing professional users with
a wide assortment of goods and services in the HVAC, electricals
and tools and supplies segments. The company is active in all four
Nordic countries, with Sweden generating 66% of revenue, Norway
19%, Finland 12%, and Denmark and other regions 2%. The company is
owned by funds affiliated with CVC Capital Partners. In 2020, the
company reported revenue of SEK32.9 billion and EBITDA of SEK3.8
billion.




=====================
S W I T Z E R L A N D
=====================

GARRETT MOTION: Moody's Assigns Ba3 CFR Amid Restructuring
----------------------------------------------------------
Moody's Investors Service has assigned a Ba3 corporate family
rating and Ba3-PD probability of default rating to Garrett Motion
Inc., as well as a Ba2 rating to the senior secured bank credit
facilities expected to be entered into by Garrett's wholly owned
subsidiaries Garrett Motion S.a r.l. and Garrett LX I S.a r.l. with
Garrett Motion Holdings, Inc. being a co-borrower. The outlook on
all ratings is stable.

"The Ba3 rating reflects the strength of Garrett's underlying
operating business and a successful balance sheet restructuring,
which will allow the company to emerge from Chapter 11 in the
second quarter of 2021.", said Matthias Heck, a Moody's Vice
President -- Senior Credit Officer and Lead Analyst for Garrett.
"The stable outlook reflects the expectation of a continued
recovery in global light vehicle sales in 2021, leading to positive
FCF generation and continued debt reduction." added Mr. Heck.

RATINGS RATIONALE

On January 11, 2021, Garrett announced that it selected an enhanced
proposal from a consortium led by Centerbridge Partners, L.P.
("Centerbridge") and funds managed by Oaktree Capital Management,
L.P. ("Oaktree"), along with Honeywell International Inc.
("Honeywell") and holders of a majority of Garrett's common stock,
to reorganize the company and emerge from Chapter 11 in Q2 2021.
According to the plan, Garrett's existing creditors will be repaid
in full in cash with proceeds from debt and equity financing (other
than Honeywell, which has agreed to reduce and convert its claims
into subordinated preferred equity exclusively under the plan).

The newly raised debt is expected to consist of a $1,250 million
seven-year guaranteed senior secured Term Loan B and a $300 million
guaranteed senior secured revolving credit facility. Approximately
$1,251 million Convertible Series A preferred equity provided by
Centerbridge, Oaktree, and certain other investors will be
considered equity, according to Moody's criteria. The capital
structure will resolve the indemnity obligations and a tax matters
agreement with Garrett's previous owner Honeywell, via an upfront
cash payment and the issuance of a new Series B Preferred Equity
instrument, with annual payments beginning after emergence from
Chapter 11 and concluding in 2030 (unless deferred or repaid
earlier) that have a total net present value of around $584
million. The Series B Preferred Equity instrument is considered
subordinated debt, according to Moody's criteria.

The Ba3 rating balances (i) Garrett's market leading position in
turbochargers for passenger and commercial vehicles, (ii) the
increased market penetration of turbochargers globally, which
should allow the company to outperform global light vehicle sales
in the next few years, (iii) long-standing customer relationships
with a diversified group of original equipment manufacturers
(OEMs), and (iv) relatively strong margins (Moody's adjusted
EBITA), despite a highly competitive industry environment.

Garrett's rating is constrained by (i) the company's focus on
rebalancing its product mix toward light vehicle gasoline engines
in recent years, with an expectation of further growth, (ii) a
historically strong presence in light vehicle diesel engines in
Europe, whereas vehicle demand is shifting toward gasoline engines,
(iii) ongoing automotive industry developments in electric
vehicles, although Moody's believe internal combustion engines will
retain a significant share of the vehicle powertrain well into the
current decade, and (iv) somewhat elevated leverage, which is,
however, expected to improve gradually.

RATIONALE FOR THE OUTLOOK

Garrett's stable rating outlook incorporates Moody's expectation
that the company's globally competitive position and strong profit
margin will drive positive FCF generation, which will support debt
reduction as the company's product mix shifts toward
gasoline-powered engines. It also reflects our expectation of a
continued recovery in global light vehicle sales in 2021 and 2022.

LIQUIDITY

Moody's consider Garrett's liquidity profile as good. Upon
emergence from Chapter 11, Garrett is expected to have around $100
million of unrestricted cash on balance, supported by a $300
million undrawn revolving credit facility. The RCF is expected to
be subject to a springing financial covenant (tested when at least
35% is drawn) and customary conditions to borrowing, including a
"no-MAC" representation. Moody's expect Garrett to have sufficient
headroom to the expected covenant level of 4.7x gross leverage.
Moody's expect funds from operations (FFO) of at least $250 million
over the next four quarters.

These total liquidity sources of at least $650 million over the
next four quarters to March 2022 should be sufficient to cover cash
uses for working cash (Moody's estimate 3% of revenues or around
$100 million), potential further minor negative changes in working
capital as well as capex of around $120 million. The company does
not have major short-term debt maturities.

STRUCTURAL CONSIDERATIONS

The instrument ratings incorporate our EMEA approach within the
Loss Given Default Analysis, which includes treating trade payables
as pari passu with the most senior secured debt, based on the
expected approach in the reorganization. Under this approach, the
secured rating of Ba2 reflects an uplift due to the subordinated
Series B Preferred Equity instruments owed to Honeywell.

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

An upgrade would require establishing an operational and financial
track record post emergence from Chapter 11. More specifically, an
upgrade would require Debt/EBITDA (Moody's adjusted) sustainably
below 3.0x, EBITA margin (Moody's adjusted) in the low teens in
percentage terms, maintaining positive free cash flow generation in
the high teens as percentage of debt, and maintenance of good
liquidity.

Garrett's ratings could be downgraded if there is a significant
decline in automotive demand, and the company is unable to continue
to win new profitable turbo business on gasoline powered engines as
the industry mix shifts away from diesel, resulting in future
strained revenue. More specifically, a downgrade could result from
Debt/EBITDA (Moody's adjusted) sustained above 4.0x, EBITA (Moody's
adjusted) margin trending below 10%, negative free cash flow
generation, or a deterioration of liquidity.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Automotive
Supplier Methodology published in January 2020.

COMPANY PROFILE

Garrett Motion Inc. ("Garrett"), headquartered in Rolle,
Switzerland, emerged from the spinoff of Honeywell's Transportation
Systems business in October 2018. Garrett designs, manufactures and
sells highly engineered turbocharger and electric-boosting
technologies for light and commercial vehicle OEMs and the
aftermarket. Post emergence from Chapter 11, its shares are
expected to be relisted on the New York Stock Exchange. For 2020,
the company reported revenue of $3.0 billion and EBITDA of $281
million.




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

[*] TURKEY: Bankruptcies Down 55.5% Year-on-Year in January
-----------------------------------------------------------
Aleksia Petrova at SeeNews reports that the number of companies
that went out of business in Turkey decreased by 55.5% year-on-year
in January.

During the same month, the number of newly-established companies in
the country increased by 8.1% on the year, SeeNews relays, citing
Anadolu Agency.

A total of 11,329 companies were founded in January, which compares
to 10,477 in January of 2020, SeeNews discloses.




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U N I T E D   K I N G D O M
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LIQUID TELECOMMUNICATIONS: Moody's Rates $600MM Secured Notes 'B1'
------------------------------------------------------------------
Moody's Investors Service has assigned a B1 guaranteed instrument
rating to the proposed US$600 million senior secured notes to be
issued by Liquid Telecommunications Financing plc, a wholly owned
subsidiary of Liquid Telecommunications Holdings Limited's ("Liquid
Telecom" or "Group"), a provider of bandwidth infrastructure and
network neutral interconnection services across 13 African
countries. The rating outlook is negative.

The proposed notes, along with a US$220 million rand denominated
term loan, will be used to refinance $730 million of the existing
senior secured notes, pay the costs associated with the early
redemption and repay the $40 million drawn revolving credit
facility (RCF).

"The early refinancing of the notes is credit positive because it
strengthens Liquid Telecom's liquidity by extending the debt
maturity profile" says Dion Bate, a Moody's Vice President and
local market analyst. "In addition, the company's credits metrics
will be less sensitive to currency fluctuations because of the
closer currency alignment between debt obligations and cash flows",
adds Mr Bate.

RATINGS RATIONALE

The B1 rating assigned to the proposed US$600 million senior
secured notes is in line with the Group's CFR and reflects the
notes' pari passu position in the capital structure relative to the
proposed US$60 million RCF issued by Liquid Telecommunications
Holdings Limited and the proposed $220 million rand denominated
term loan issued by Liquid Telecommunications South Africa
Proprietary Limited. The senior notes, RCF and term loan will
benefit from guarantees from Liquid Telecom and Group subsidiaries
representing 76.4% of EBITDA and 84.9% of net assets.

The reduced currency risk and removal of the $730 million
refinancing wall in July 2022 are credit positive. The issuance of
rand debt, equal to 26% of total debt will be more aligned to the
cashflow generation from its South African operations, representing
about 30% of total EBITDA for the 9 months to 30 November 2020.
However, Liquid Telecom is still exposed to some currency risk,
given around 30% of the Group's EBITDA is earned in other local
currencies across Africa, which include Zimbabwe's Real Time Gross
Settlement $ (RTGS), contributing to about 22% to total EBITDA.

Post the bond issuance, Moody's-adjusted leverage, as measured by
debt/EBITDA, is expected to increase to 4.0x for the financial year
ending February 28, 2021 (FY2021) compared to 3.4x for FY2020 due
to a projected 5% decrease in Moody's adjusted EBITDA to around
$232 million against the prior year and $50 million of additional
debt. Moody's expects leverage to remain around 4x for FY2022 given
higher expected lease liabilities from new projects and data
centres no longer contributing to EBITDA, before a meaningful
deleveraging in FY2023. Moody's assesses the company's leverage and
liquidity excluding Zimbabwe because the current difficulties in
accessing US dollar and transferring cash out of the country
continue and this cash flow cannot be reliably used to service
debt. Excluding Zimbabwe EBITDA (22% of total EBITDA before
eliminations), leverage for FY2021 would be higher at 5.2x but
projected to fall towards 4.5x for FY2022, as Zimbabwe's dollar
contribution to EBITDA falls.

As part of the debt refinancing, Liquid Telecom will be disposing
of its 3 data centres (2 in South Africa and 1 in Kenya) for an
expected total consideration of $193 million to a related party
outside of the restricted group, Africa Data Centre Holding Limited
(ADC, owned by Liquid Telecommunications (Jersey) Limited, parent
of Liquid Telecom). The initial $60 million proceeds will be used
to boost cash balances and the remaining $133 million will be held
as a subordinated loan to ADC, payable after 3 years. The disposal
is not considered material, representing approximately 3% of
revenues, 5% of EBITDA and 5% of net assets. On balance, Moody's
view the disposal as being credit neutral. While over the next few
years it will help alleviate the capital expenditure burden and
improve free cash flow generation, it removes an important revenue
stream for the Group over the longer term.

Post the proposed debt refinancing, Liquid Telecom liquidity
profile will be strengthened, as the sizable US$730 million debt
maturity wall in July 2022 will be removed. Liquidity will be
supported by positive operating cash flows, unrestricted cash
balances of around US$50 million (excluding $30 million in
Zimbabwe), $60 million from the disposal of ADC and a proposed $60
million undrawn RCF, which combined will be sufficient to service
debt obligations and a less demanding capital expenditure over the
next 18 months.

NEGATIVE OUTLOOK

The negative outlook reflects the macroeconomic challenges that
South Africa and other African countries are facing that are
weighing on Liquid Telecoms credit metrics that could lead to
leverage remaining above 5.0x (excluding Zimbabwe) and Moody's
adjusted free cash flow remaining structurally negative as the
company pursues its growth strategy.

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

Given the rating is weakly positioned in the B1 category, upward
ratings movement is unlikely over the near term. However, the
ratings could develop upward pressure if (1) gross debt/EBITDA were
sustainably below 3.5x (excluding EBITDA generated in Zimbabwe);
(2) free cash flow were sustainably positive with FCF/gross debt
exceeding 5%; and (3) liquidity is good.

Conversely, the ratings could develop downward pressure if (1)
Liquid Telecom were to not progressively deleverage over
FY2022-FY2023 financial period such that gross debt/EBITDA
(excluding EBITDA generated in Zimbabwe) remains sustainably above
5x; (2) the company generates negative free cash flow on a
sustained basis; or (3) liquidity deteriorates.

All credit metrics are adjusted as per Moody's standard definitions
and adjustments.

PRINCIPAL METHODOLOGY

The principal methodology used in this rating was Communications
Infrastructure Industry published in September 2017.

Headquartered in Mauritius, Liquid Telecom is a provider of
bandwidth infrastructure and network neutral interconnection
services. The company owns and operates over 70,000 fibre optic
route kilometers across 13 central, eastern, southern African
regions in addition to South Africa, five data centres (one of
which is tier 3 and two that are being built to tier 3 standards)
and satellite earth stations. For the 12 months ended November 30,
2020, Liquid Telecom's reported revenue and EBITDA was $773 million
and $231.1 million, respectively.


VICTORIA PLC: Fitch Assigns BB Rating on EUR350MM Secured Notes
---------------------------------------------------------------
Fitch Ratings has assigned Victoria plc's EUR350 million (GBP310
million-equivalent) senior secured notes (SSN) with a 5.5-year
maturity a rating of 'BB'. The notes have a Recovery Rating of
'RR2'.

The new notes rank pari-passu to the existing SSNs. The proceeds
will be used to partially refinance the existing notes and to
support acquisitions. Fitch expects the acquisition funds to be
largely deployed by financial year ending March 2022. However,
should Victoria fail to acquire its potential targets in the
short-to-medium term, Fitch would expect any excess cash to be used
for debt repayment.

KEY RATING DRIVERS

Leverage-Neutral SSN Issue: Victoria is using GBP88 million of the
new SSN issue to partially refinance existing SSN debt and the
remainder to support its acquisition strategy target of up to an
additional GBP100 million of EBITDA by FYE22. As previously
presented by management, Fitch expects acquisition funding to
include equity (preferred or ordinary) and Victoria's typical
earn-out structure. Post the new issue, Fitch expects funds from
operations (FFO) net leverage at FYE22 to remain within Fitch's
rating sensitivities, at around 3.2x.

Acquisition Spend Higher than Forecast: Fitch conservatively
assumes Victoria will gain an additional EBITDA of GBP80 million
from a total spend of GBP600 million on new acquisitions by FYE22,
yielding a Fitch expected average enterprise value (EV)/EBITDA of
7.5x (relative to the company's 7x expectation). Fitch expects
EBITDA margins at FYE22 to be slightly lower than Fitch's previous
forecast at 15.7% before improving towards 16.5% by FYE24.
Acquisition spend is higher than Fitch had expected for FYE21 and
FYE22.

Limited Financial Profile Impact: Additional EBITDA from
acquisitions will be balanced by increased debt to leave FFO net
leverage and FFO margins largely stable. Victoria's record of
acquisitions supports Fitch's view that new acquisitions will be
successfully integrated. Financial policy is unchanged and Victoria
has expressed its commitment to deleveraging.

Acquisition-based Strategy: It is Fitch's assumption that Victoria
will continue its acquisition-led strategy over the next four
years, driven by available opportunities in its fragmented core
markets. The strategy entails moderate execution risks, and
successful integration and synergy realisation from M&A
transactions can be challenging in a sharp market downturn.
However, Fitch views the management team as experienced and
disciplined, with a history of successful integrations and
reasonable acquisition-valuation multiples.

Preference Share Issue Supportive: Koch recently acquired an
approximately 10% ordinary share interest in Victoria from an
existing institutional investor, while Victoria bought back 6.8% of
its shares from the same institutional investor. Koch has also
provided up to GBP175 million in preferred equity investment in
Victoria to support the group's M&A activities. As part of this
agreement Koch has also received warrants for up to an additional
9% of Victoria's common equity, subject to exercise options.

Koch's preferred share investment of up to GBP175 million is split
between an initial GBP75 million with a further GBP100 million
available to Victoria over the following 18 months, available for
drawdown at the latter's discretion. Fitch forecasts the additional
GBP100 million will be used for acquisitions.

Pandemic Impact Limited: Despite the effect of April's strict
lockdowns, especially in the UK and the Spanish divisions, Victoria
managed to control its costs and minimise losses. Fitch expects the
group's recovery to pre-pandemic levels to continue in FY21, with
January-March likely to be strongest. Fitch expects a 5% decline in
organic revenue to be offset by M&A growth to result in total
revenue growth of around 7% in FY21. Fitch expects organic revenue
to fully recover in FY22 with a 13% growth.

Victoria's focus on the residential market has benefited from
increased spending on home improvement during the pandemic.
However, Fitch remains cautious that the longer-term economic
effects could limit demand in FY22.

Expected Reduction in Leverage Metrics: FFO net leverage for FYE20
was 4.2x, higher than the previous Fitch case of 3.6x, but down
from 4.4x in FYE19. This was caused by the full drawdown of a GBP75
million revolving credit facility (RCF), and also a weaker EBITDA
margin in 4QFYE20. As of end-September 2020, Victoria had fully
repaid its RCF. Fitch forecasts FFO net leverage to be within
Fitch's sensitivity range of 2.0x to 3.5x by FYE22 due to a
smaller-than-previously expected decline in revenue and margins.

Diversification Limits UK Exposure: Due to Victoria's recent
expansion in Europe, revenue contribution from the UK fell to
around 40% of revenue in FYE20. Victoria remains geographically
concentrated with nearly 80% of EBITDA generated in Europe
(including around 30% in the UK). Furthermore, 90% of Victoria's
revenue is exposed to the renovation market, and while construction
markets tend to behave independently across countries, the
renovation market tends to follow similar geographical patterns
given its link to consumer confidence and GDP growth.

Low Customer Concentration, Strong Brand: Victoria's customer base
is diversified, largely composed of small independent retailers and
no exposure to third-party distributors. This limits customer
concentration, with the top 10 representing only 18% of sales in
FY20 and the largest at 3%, in turn providing Victoria with some
pricing power. Victoria has built a strong brand
proposition/loyalty leading to long-term relationship with its
customers. Its operational integration and manufacturing
flexibility enable the group to quickly produce customisable
products, limiting the need to maintain both high stock levels for
retailers and working capital.

DERIVATION SUMMARY

Victoria is one-tenth the size of Mohawk Industries Inc.
(BBB+/Stable), the world's leading flooring manufacturer, is less
diversified geographically and exhibits higher leverage metrics. In
Fitch's view, Victoria exhibits a business profile that is
consistent with the 'BB' category. Its profitability is
particularly strong at the mid-points of Fitch's Rating Navigator
for Building Products due to the high-margin ceramic businesses it
has acquired over the last few years.

However, Victoria's end-market is concentrated on residential and
less diversified than global players such as Mohawk or other large
building products companies such as Compagnie de Saint-Gobain
(BBB/Stable). This is common among small to medium-sized players
such as Hestiafloor 2/Gerflor (B+/Stable), which is mostly exposed
to commercial (around 90%). Although Gerflor is double the size of
Victoria and offers a broader range of products in the resilient
flooring market with a focus on luxury vinyl tile products, it has
lower profitability and higher leverage, resulting in its rating
being one notch lower than Victoria's.

Fitch views FFO leverage of below 4.0x and FFO net leverage below
3.5x as consistent with the 'BB' category. Although Fitch expects
Victoria's FFO net leverage to increase in FYE21, Fitch forecasts
FFO net leverage to improve back towards 3.2x in FYE22 (March
year-end).

KEY ASSUMPTIONS

-- Pro-forma (for the latest bond issue) EBITDA of GBP225 million
    for FY22, of which GBP80 million is newly acquired EBITDA.

-- EBITDA margin around 15.7% at FYE22, moving towards 16.5% at
    FYE24.

-- Pro-forma FY22 sales of around GBP1.4 billion, of which around
    GBP700 million is newly acquired revenue.

-- Neutral to positive working capital from FY22.

-- Capex of 4.5% of sales for the next four years.

-- New debt of GBP310 million SSNs partially refinancing GBP88
    million (EUR100 million equivalent) of existing notes in FY21.

-- Additional equity raised to support acquisitions including
    utilising the full Koch potential investment of GBP100 million
    plus the GBP75 million issued in October 2020.

-- New acquisitions of GBP600 million until FY22, incorporating
    expected earn-out of GBP233 million. Earn-out outflow of GBP58
    million per year between FY22 and FY25.

-- Additional acquisitions after FY22 of around GBP30 million
    GBP40 million per year.

RATING SENSITIVITIES

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

-- Continued increase in scale and product/geographical
    diversification as well as successful integration

-- FFO net leverage below 2.0x

-- EBITDA margin increasing towards 19%

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

-- Material drop in EBITDA margin towards 15%

-- Breach of stated financial policy leading to FFO net leverage
    above 3.5x for a sustained period

-- Failure to recover from the Covid-19 crisis in the next two
    years leading to free cash flow (FCF) margin in low single
    digits and FFO net leverage above 3.5x in FY23.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Sound Liquidity: As of 30 September 2020, Victoria had GBP130
million cash on balance sheet, and a GBP75 million RCF that was
fully undrawn. Fitch expects Victoria to have around GBP100 million
cash on balance sheet, post M&A activity and debt and equity
proceeds, by FYE22.

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.


VICTORIA PLC: S&P Rates New EUR350MM Senior Secured Notes 'BB-'
---------------------------------------------------------------
S&P Global Ratings has assigned its 'BB-' issue rating to the
proposed EUR350 million senior secured notes that Victoria PLC
(BB-/Negative) intends to issue. S&P anticipates that the company
will use the proceeds to partly prepay its outstanding senior
secured notes and fund potential acquisitions. S&P believes this is
consistent with the group's ambition to consolidate Europe's
fragmented flooring products sector and to penetrate the U.S.
market. The recovery rating on the proposed notes is '3',
reflecting its expectation of meaningful recovery prospects
(50%-70%; rounded estimate: 50%), constrained by a large amount of
outstanding debt and the company's prior-ranking revolving credit
facility (RCF).

Victoria is a U.K.-based designer, manufacturer, and distributor of
flooring products. The group produces a range of carpets, ceramic
tiles, underlays, luxury vinyl tiles, artificial grass, and
flooring accessories. Victoria's operating performance has been
resilient despite the revenue shortfall caused by COVID-19-related
lockdowns and social-distancing requirements affecting the
company's ability to open its factories. Victoria has benefitted
from its flexible cost structure and its ability to adjust
manufacturing capabilities to changes in demand, in addition to
supportive consumer trends, with many households buying online and
increasing their focus on home improvement projects.

S&P said, "We expect Victoria to generate 1%-3% revenue growth in
fiscal year ending March 31, 2021 (fiscal 2021) and 7%-10% in
fiscal 2022, thanks to continued demand for flooring products in
the U.K. and continental Europe, as well as integration of recent
and potential acquisitions, partly offset by difficult market
conditions in Australia. We forecast that Victoria will achieve
stable S&P Global Ratings-adjusted EBITDA margins of 17%-18% in the
same period, owing to a positive product mix, including sales of
more profitable ceramic tiles. For fiscal 2021 and fiscal 2022, we
forecast Victoria will generate GBP35 million-GBP45 million of free
operating cash flow and maintain S&P Global Ratings-adjusted debt
to EBITDA within the 4.5x-5.0x range; this level of debt leverage
leaves little room for underperformance under the current rating."

S&P Global Ratings believes there remains high, albeit moderating,
uncertainty about the evolution of the coronavirus pandemic and its
economic effects. Vaccine production is ramping up and rollouts are
gathering pace around the world. Widespread immunization, which
will help pave the way for a return to more normal levels of social
and economic activity, looks to be achievable by most developed
economies by the end of the third quarter. However, some emerging
markets may only be able to achieve widespread immunization by
year-end or later. S&P said, "We use these assumptions about
vaccine timing in assessing the economic and credit implications
associated with the pandemic. As the situation evolves, we will
update our assumptions and estimates accordingly."



                           *********


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

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