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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

          Wednesday, March 10, 2021, Vol. 22, No. 44

                           Headlines



F I N L A N D

SPA HOLDINGS 3: S&P Gives '(P)B' Rating on New EUR650MM Sec. Notes


G R E E C E

PUBLIC POWER: Fitch Gives 'BB-(EXP)' Rating to New EUR500MM Bond
PUBLIC POWER: S&P Rates New EUR500MM Senior Unsecured Notes 'B'


I R E L A N D

ALKERMES PLC: S&P Affirms 'BB-' ICR & Alters Outlook to Stable
CVC CORDATUS IV: S&P Assigns B- Rating on Class F Notes


N E T H E R L A N D S

ALCOA NEDERLAND: Fitch Assigns BB+ Rating on New Unsecured Notes


S W E D E N

VOLVO CAR: S&P Affirms 'BB+' ICR & Alters Outlook to Positive


T U R K E Y

TURK HAVA: Moody's Completes Review, Retains B3 CFR


U N I T E D   K I N G D O M

CLARKS: Mulls Store Closures Under New Ownership
EG GROUP: Fitch Assigns B(EXP) Rating on US$1.4BB Secured Debt
FREIGHT FORWARDINGS: High Court Winds Up Business
GREENSILL CAPITAL: France Ready to Help Workers at Risk
GREENSILL CAPITAL: Liberty Steel Has Adequate Funding, Says Owner

LIQUOR WORLD: High Court Winds Up Business

                           - - - - -


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F I N L A N D
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SPA HOLDINGS 3: S&P Gives '(P)B' Rating on New EUR650MM Sec. Notes
------------------------------------------------------------------
S&P Global Ratings has assigned its preliminary 'B' issue rating to
SPA Holdings 3 Oy's (Ahlstrom-Munksjo) proposed EUR650 million
(U.S. dollar and euro denominated) senior secured notes due 2028.

S&P said, "The preliminary rating on the notes is in line with our
preliminary 'B' issuer credit rating on SPA Holdings 3 Oy. The
recovery rating of '3' reflects our expectation of meaningful
recovery (50%-70%; rounded estimate: 50%) in the event of a
default."

The secured nature of the notes supports the rating, but the
substantial amount of prior ranking liabilities (nonrecourse
factoring) and the high amount of senior secured debt constrain it.
Headroom under the '3' recovery rating is limited. S&P would
considers lowering our rating on the notes if the company raised
additional prior-ranking or senior secured debt.

This proposed notes issuance will partly finance the acquisition of
a majority stake in SPA Holdings 3 Oy by a consortium led by
private equity firm Bain Capital. The proposed notes rank pari
passu with a EUR1 billion senior secured term loan B due in 2028
and a EUR325 million revolving credit facility due in 2027.




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G R E E C E
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PUBLIC POWER: Fitch Gives 'BB-(EXP)' Rating to New EUR500MM Bond
-----------------------------------------------------------------
Fitch Ratings has assigned Public Power Corporation S.A.'s (PPC)
proposed EUR500 million sustainability-linked senior unsecured (SU)
bond an expected rating of 'BB-(EXP)'/'RR4'. It has also affirmed
PPC's Long-Term Issuer Default Rating (IDR) at 'BB-', and continues
to assess the company's Standalone Credit Profile (SCP) at 'b+'.
The Outlook on the IDR is Stable.

The IDR and SU ratings reflect the more volatile and less
transparent regulatory and operating environments in Greece, with a
history of political intervention, as well as PPC's high leverage
and consistently negative free cash flow (FCF) throughout the
investment cycle. They also reflect a dominant integrated position
in the domestic market and improved long-term sustainability
following PPC's strategic repositioning, coupled with constructive
energy reforms in Greece since 2019. PPC's IDR incorporates a
one-notch uplift, reflecting overall moderate links with the Greek
state (BB/Stable).

The final rating on the SU bond is contingent on the receipt of
final documents conforming materially to the preliminary
documentation reviewed.

KEY RATING DRIVERS

Asset Sale Could Increase Subordination: Fitch believes the
potential sale of a 49% stake in Hellenic Distribution Network
Operation S.A. (HEDNO), PPC's distribution arm, if executed
together with assets and associated debt being moved to opco from
holdco, could raise structural subordination within the group
structure. The sale could see certain loans moved to the level
where the assets are located and the ratio for prior ranking debt
(secured plus operating company debt)/consolidated EBITDA increase
above Fitch's threshold for subordination of 2.0x-2.5x, from 0.7x
in September 2020. This could trigger a downgrade of the SU rating
for the notes.

Uncertainty Around Asset Sale: There is high uncertainty in
relation to HEDNO's valuation and PPC's final decision based on
final offers received; therefore, HEDNO's sale is not part of
Fitch's base case and Fitch does not factor in any structural
subordination. PPC has said that group asset and debt
reorganisation would not happen if the sale does not go ahead.

Strategic Repositioning: Fitch believes PPC's strategic
repositioning has improved the company's long-term sustainability.
The material financial improvement as seen in 9M20 results (EUR696
million EBITDA versus EUR97 million in 9M19) stems from PPC's shift
to a competitive tariff structure that better reflects the cost of
energy, including rising CO2 costs. New tariffs were implemented in
September 2019.

High Forecast Leverage: Fitch forecasts PPC's funds from operations
(FFO) net leverage at 5.4x on average for 2020-2023,
notwithstanding Fitch's expectations of stabilised EBITDA at about
EUR900 million. This is mostly due to high capex (allocated into
renewables, grids modernisation and the construction of the lignite
plant Ptolomaida V) and working capital outflows. Fitch forecasts
FCF to be consistently negative over the same period, at about
EUR350 million on average.

PPC has expressed its commitment to prioritise deleveraging over
additional growth and dividend distributions, including a target of
a maximum 3.5x net debt/EBITDA (as defined by the company) by 2023.
This is consistent with Fitch's guidelines for the 'b+' SCP.

Emerging Renewables Account Deficit: In November 2020, the
country's Renewables Special Account recorded a deficit of EUR430
million, mainly as a result of the Covid-19 impact on power prices
and demand. In December 2020, the Greek government imposed measures
to fund the emerging deficit;, which were borne by all electricity
suppliers (i.e. an EUR2/MWh fee based on electricity sold in 2020),
renewables generators and the state budget (CO2 emission
allowances). For PPC, this resulted in a one-off payment of about
EUR70 million, which Fitch expects to be reflected in 2020 EBITDA.

Our assumptions of recovery from the pandemic and gradually
expiring subsidies for existing renewables, coupled with less
onerous mechanisms (such as power purchase agreements) for new
renewables capacity help to lower the risks of mounting deficits.

Target Model Complex Implementation: The initial months following
the implementation of the new Target Model in Greece in November
2020 resulted in high wholesale prices and political intervention
to contain them. PPC's integrated business profile has allowed the
company to partially offset lower supply revenue, due to
contractual limitations to pass-through the higher prices entirely
to customers, with higher balancing market revenue from its
generation units. Fitch expects the consolidation of the new model
to take some time and this situation to continue well into 2021.

Good Progress in Collections: The inability to cash in customers'
bills has been a key issue for PPC's liquidity and business
sustainability and led to a EUR2.8 billion stock of bad debt by
end-2019, with 80% of it being older than one year. Fitch estimates
the receivables stock to be at about EUR2.4 billion by end-2021.
Further improvement is likely, given the greater management focus
on this area. However, it remains a key liquidity risk, as
collections are exposed to the economic conditions in Greece.

State Links Warrants Uplift: Fitch assigns a one-notch uplift to
PPC's SCP, reflecting the company's links with Greece under Fitch's
Government-Related Entities Rating Criteria. Key to this assessment
are the government's indirect 51% stake and effective control of
PPC's board of directors, state guarantees for about 46% of PPC's
total debt by September 2020, PPC's role as the incumbent
electricity utility company and a large employer in the country and
the sizeable exposure of domestic banks.

DERIVATION SUMMARY

PPC is the incumbent electricity utility in Greece, with the
closest domestic rated peer being Mytilineos S.A. (MYTIL;
BB/Negative), although the latter lags PPC in market share and
scale. MYTIL is a diversified group operating in the more volatile
and cyclical metallurgy (aluminium) and engineering procurement and
construction sectors and in the power sector, with energy
contributing about 21% of EBITDA by end-2019. MYTIL benefits from a
higher renewable capacity in its business mix, more profitable
gas-fired plants and no exposure to loss-making lignite.

The two-notch rating difference, on a standalone basis for PPC, is
explained by Fitch's substantially lower forecast for MYTIL's net
leverage, which Fitch expects to trend to 2.0x by 2023, versus
PPC's of about 5.5x. The single-notch uplift for government links
for PPC narrows the final difference between the two IDRs to one
notch.

Among neighbouring countries, PPC's closest peer is Bulgarian
Energy Holding EAD (BEH; BB/Positive) with a 'b+' SCP and
marginally lower FFO net leverage averaging 4.8x for 2021-2023.
However, Fitch sees a slightly better business risk profile and
higher debt capacity for PPC due to its larger scale, and the more
regulated and contracted nature of its cash flow, which is
partially mitigated by a healthier operating environment in
Bulgaria and still profitable mining and coal-fired generation for
BEH. BEH's sovereign support score under Fitch's Government-Related
Entities Rating Criteria is the same as for PPC, but allows for a
higher uplift of two notches compared with one for PPC, due to the
higher sovereign rating of Bulgaria (BBB/Positive) against that of
Greece (BB/Stable).

PPC's integrated business structure and strategic position in the
domestic market make the company comparable with some
investment-grade central European peers, such as CEZ, a.s.
(A-/Stable) and ENEA S.A. (BBB/Stable). The peers share issues
related to coal mining and coal-fired generation, but these sectors
are profitable for the peers and loss-making for PPC. In addition,
PPC operates in a more volatile and less transparent regulatory
environment than CEZ or ENEA and its results are less predictable,
with a history of political intervention. The overall better
business risk profile, healthier operating environment and lower
leverage explain the multi-notch difference with the central
European peers. PPC's rating includes a single-notch uplift to
reflect links with the sovereign, whereas this is not the case for
CEZ or ENEA.

KEY ASSUMPTIONS

Electricity Generation:

-- System marginal price in Greece at EUR49-51/MWh in 2021-2023
    (EUR46/MWh in 2020E);

-- CO2 prices rising to EUR31/tonne by 2023;

-- Phase-out of lignite-red power plants and mines, as announced
    by PPC; commissioning of the new 0.66GW Ptolemaida V in 2022;

-- Decommissioning cash-cost of EUR40 million a year for an
    extended period of 10 years;

-- Gradual ramp-up of renewables (about 80% solar; 20% wind) to
    1.5GW by end-2023;

-- Higher load factors for gas-red plants, due to lignite plants
    closures and efficiency mostly achieved through gas-sourcing
    optimisation;

-- Hydro load factors at about 23% on average for 2021-2023;

-- Oil-fired output in non-interconnected systems sold to the
    regulated market at an average price of EUR180/MWh in 2021
    2023; and

-- Generation EBITDA to contribute positively only from 2022.

Electricity Distribution:

-- Regulatory asset base increasing to EUR3.3 billion in 2023,
    from EUR3.0 billion in 2020;

-- Weighted average cost of capital of 6.7% for 2021-2024. No
    incentives are assumed; and

-- EBITDA stable at about 47% of total EBITDA by 2023.

Supply:

-- Supply market share (interconnected system) declining to 50%
    of domestic market by end-2023. from 66% in June 2020, and
    retention of 'high-value' customers; and

-- EUR2.2 billion of doubtful receivables by 2023, down from
    EUR2.8 billion (including settlements) at year-end 2019.

Other:

-- Total capex (net of customer contributions and grants) of
    about EUR2.6 billion for 2021- 2023, of which about EUR1.0
    billion is in 2023;

-- Total working capital outflow of EUR0.4 billion in 2021-2023
    (EUR0.8 billion outflow in 2020), mostly related to decreasing
    payables; and

-- No dividends distributed over the period to 2023.

RATING SENSITIVITIES

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

-- Further tangible government support, such as a material
    increase in the share of state-guaranteed debt, and generally
    stronger links with the state could lead us to align PPC's
    rating with that of Greece.

-- An upward revision of the SCP would derive from FFO net
    leverage falling below 5.0x on a sustained basis, neutral-to
    positive FCF and FFO interest coverage higher than 3.5x, lower
    regulatory and political risk or higher earnings
    predictability. However, this would result in an upgrade of
    the IDR only if coupled with an upgrade of Greece.

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

-- Weaker links with Greece, including the loss of the state's
    majority ownership or a material reduction of the share of
    state-guaranteed debt.

-- Weaker SCP, for example, due to FFO net leverage exceeding
    6.0x on a sustained basis or FFO interest coverage lower than
    2.5x.

-- Worsened operating environment in Greece coupled with the
    escalation of regulatory, social or political risk, such as
    the reversal or failed implementation of main energy reforms
    initiated in 2019, or failure to improve trade receivables
    collections.

-- Material delays to the decommissioning of mines and lignite
    fired plants and to the ramp-up of renewables as communicated
    by the company.

-- Weaker liquidity position not covering at least 12 months of
    debt maturities.

-- The sale of a minority stake of HEDNO, together with the push
    of related debt down to the operating company, could lead to a
    one-notch downgrade of the SU debt instrument rating at the
    holding company level, if prior-ranking debt goes above 2.0x
    2.5x consolidated EBITDA.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Adequate liquidity: At end-September 2020, liquidity sources
included readily available cash of EUR642 million (which excluded
EUR55.7 million of restricted cash mostly related to debt service),
and EUR148 million in revolver availability maturing beyond one
year, while additional EUR0.3 billion capex facility and EUR0.2
billion securitisation were secured in 4Q20. This is sufficient to
cover debt maturities of EUR0.5 billion and negative FCF of about
EUR0.4 billion until September 2021.

PPC expects to enhance its liquidity position through retained cash
post bond issuance, higher access to revolving credit facilities,
given the reduced exposure to Greek banks (EUR300 million prepaid
out of the bond proceeds), as well as the funding of the
non-performing securitisation of EUR325 million in March/April
2021.

Exposure to Greek Financial System: About 40% of PPC's bank debt
comes from Greek financial institutions and most of the cash at
hand (excluding time deposits) at end-September 2020 was located
within various Greek banks, which have ratings from Fitch that
range from 'B-' to 'CCC'. The remaining debt is held in
supranational financial institutions, such as the European
Investment Bank (EIB; AAA/Stable) and the Black Sea Trade and
Development Bank, which have required state guarantees.

The overall EUR2.6 billion capex (net of customer contributions and
grants) for 2021-2023 plan is financeable, in Fitch's view, as it
relates to debt granted by EIB for distribution grids and widely
available asset-backed project funding for renewables, as well as
finalising the construction of Ptolemaida V.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch adds trade receivables revolving securitisations (EUR525
million expected in 2020-2023) to Fitch's definition of financial
debt.

ESG CONSIDERATIONS

PPC has an ESG Relevance Score of '4' for both GHG Emissions & Air
Quality and Energy Management. This is due to its over 26% share of
lignite coal in its electricity generation mix, which is
carbon-intensive and under political pressure in the EU. Fitch
projects falling lignite fuel usage and CO2 emissions over the next
three years due to PPC's ambitious decommissioning plan, but for
existing lignite-fired plants to remain loss-making through to
2023. Fitch expects the lignite plants to be completely
decommissioned by 2028. These factors have a negative impact on the
credit profile, and are relevant to the ratings in conjunction with
other factors.

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


PUBLIC POWER: S&P Rates New EUR500MM Senior Unsecured Notes 'B'
---------------------------------------------------------------
S&P Global Ratings assigned its 'B' issue rating to Greek utility
Public Power Corporation S.A.'s (PPC's; B/Stable/--) proposed
EUR500 million senior unsecured notes due 2026. The 'B' rating
reflects that the notes rank equally with PPC's existing unsecured
debt in the capital structure. This note issuance is PPC's first
since April 2014.

S&P said, "We expect the company will use about half the proceeds
from this issuance, its first of sustainability-linked notes, for
partial repayment of its Greek banks syndicated loans. We expect it
will use the remaining part for general corporate purposes and to
finance its investment plan."

The 'sustainability' feature of the notes means a potential
interest rates step up of 50 basis points would be triggered should
PPC fail to achieve its Scope-1 CO2 emission reduction target of
40% from 2019 levels by December 2022. This is in line with
company's new strategic plan, which includes large investments in
renewables and the phase-out of its coal plants by 2023.




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I R E L A N D
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ALKERMES PLC: S&P Affirms 'BB-' ICR & Alters Outlook to Stable
--------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' issuer credit rating on
Ireland-based biopharmaceutical company Alkermes PLC and revised
the outlook to stable from negative. At the same time, S&P assigned
its 'BB' issue-level rating and '2' recovery rating to the proposed
$300 million term loan B.

S&P said, "The stable outlook reflects our expectation for mid- to
high-single-digit percent revenue growth and continued cost
management, supporting adjusted FOCF to debt of at least 5% over
the next couple of years.

"The outlook revision reflects our expectation that improved
operating performance will continue, supporting positive FOCF.
Alkermes renewed focus on cost management during 2020, including a
reorganization of commercial infrastructure in November. Adjusted
EBITDA margin expanded about 500 basis points during 2020, modestly
better than we expected. It stems from improved gross profit margin
combined with lower selling, general, and administrative, and
research and development (R&D) expenses. Moreover, we believe
profitability should further improve over the next couple of years
as the company executes on its Value Enhancement Plan announced on
Dec. 10, 2020. It includes EBITDA margin targets of 20% in 2023 and
25% in 2024 via rigorous expense management, potential monetization
of noncore assets, and possible strategic collaboration on
Alkermes' immuno-oncology program, ALKS 4230 (Nemvaleukin alfa).
Despite these various initiatives underway, with the launch of
Lybalvi (PDUFA date of June 1), we expect 2021 to be another
investment year. However, we believe expenses should significantly
reduce in subsequent years as Alkermes pursues its aggressive
EBITDA margin targets."

Revenues declined 11% during 2020, but S&P expects near full
recovery during 2021.  A nonrecurring Vumerity milestone payment
from December 2019 of $150 million mainly drove the decline. Top
product Vivitrol, which depends heavily on face-to-face
interactions for patient initiation, was significantly impaired by
the COVID-19 pandemic, resulting in about a 7% year-over-year
revenue decline. Vumerity (Biogen's Tecfidera follow-up for which
Alkermes receives royalties) also had a slower than expected
launch, with just $64 million of sales.

S&P said, "We expect high-single-digit percent revenue growth
during 2021, which incorporates our view that demand for Vivitrol
should stabilize at pre-pandemic levels, Aristada sales should
continue to increase at a double-digit percent rate, and that
Vumerity royalties should exceed $20 million. We also assume
Lybalvi launches in the second half of 2021 and contributes
meaningfully to revenue growth in 2022.

"Alkermes' substantial cash balance remains a key factor in our
rating.   Alkermes had about $635 million cash and cash equivalents
on Dec. 31, 2020 -- more than twice its outstanding debt. We
believe this provides meaningful credit protection against stress
scenarios that may include weaker than expected demand, operating
disruptions, or adverse regulatory changes." Alkermes may also
invest a portion of this to expand its products through
acquisitions, which could lead to higher FOCF and lower adjusted
debt to EBITDA than we forecast.

The company has continued therapeutic concentration and dependence
on two products.  Alkermes is primarily focused on diseases of the
central nervous system and depends on the growth of Vivitrol and
Aristada, which accounted for 53.1% of total revenues in 2020. This
high concentration is somewhat mitigated by patent expirations
being years away. Patents for Aristada, launched in 2015, do not
begin to expire in the U.S. until 2030. Vivitrol's composition of
matter patent expires outside of the U.S. in 2021, but does not
expire in the U.S., the only region where it is sold, until 2029.
Alkermes has two drugs in its late-stage pipeline, including ALKS
3831 (Lybalvi), which treats schizophrenia and bipolar disorder. It
was just accepted for review by the U.S. Food and Drug
Administration. The addition of these drugs should extend the
average patent life of Alkermes' product portfolio and drive
revenue growth.

The stable outlook reflects S&P's expectation for mid- to
high-single-digit percent revenue growth and sustained cost
management, resulting in adjusted debt to EBITDA of about 4x at
year-end 2021. It also reflects our expectation for FOCF to debt of
at least 5%.

S&P could lower its rating on the company within the next 12 months
if:

-- Operating performance weakens in 2021, resulting in adjusted
debt to EBITDA above 5x and negative FOCF. This could occur if
Lybalvi has a weaker than expected launch or either of the top two
products face unforeseen commercialization challenges; or

-- A sizable M&A transaction or share repurchase significantly
reduces Alkermes' cash balance.

S&P could raise its rating on the company within the next 12 months
if:

-- Alkermes' strong operating performance leads to stronger than
expected adjusted EBITDA margins and adjusted debt to EBITDA below
3x, sustained there over time.


CVC CORDATUS IV: S&P Assigns B- Rating on Class F Notes
-------------------------------------------------------
S&P Global Ratings assigned credit ratings to the class X to F
European cash flow CLO refinancing notes issued by CVC Cordatus
Loan Fund IV DAC (CVC Cordatus IV). The issuer issued unrated
subordinated notes.

The ratings reflect S&P's assessment of:

-- The diversified collateral pool, which primarily comprises
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 considers to be
bankruptcy remote.

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

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 four
years after closing, and the portfolio's maximum average maturity
date will be eight-and-a-half years after closing.

  Portfolio Benchmarks
                                                       Current
  S&P Global Ratings weighted-average rating factor   2,919.47
  Default rate dispersion                               586.95
  Weighted-average life (years)                           4.513
  Obligor diversity measure                             104.944
  Industry diversity measure                             15.104
  Regional diversity measure                              1.169

  Transaction Key Metrics
                                                       Current
  Performing pool balance including recoveries          437.90
      (mil. EUR)
  Defaulted assets (mil. EUR)                             2.00
  Number of performing obligors                            148
  Portfolio weighted-average rating derived from
      S&P's CDO evaluator                                  'B'
  'CCC' category rated assets (%)                         7.53
  'AAA' weighted-average recovery (covenanted) (%)       35.14
  Covenanted weighted-average spread (%)                  3.60
  Reference weighted-average coupon (%)                   4.00

Workout loan mechanics

Under the transaction documents, the issuer can purchase workout
loans, which are bonds or loans the issuer acquired in connection
with a restructuring of a related defaulted obligation or credit
impaired obligation, to improve its recovery value.

The purchase of workout loans is not subject to the reinvestment
criteria or the eligibility criteria. It receives no credit in the
principal balance definition, although where the workout meets the
eligibility criteria with certain exclusions, it is accorded
defaulted treatment in the par coverage tests. The cumulative
exposure to loss mitigation loans purchased using interest or
principal proceeds is limited to 10.0% of target par.

The issuer may purchase workout loans using either interest
proceeds, principal proceeds, or amounts in the collateral
enhancement account. The use of interest proceeds to purchase
workout loans are subject to (i) all the interest and par coverage
tests passing following the purchase, and (ii) the manager
determining there are sufficient interest proceeds to pay interest
on all the rated notes on the upcoming payment date. The use of
principal proceeds is subject to passing par coverage tests, and
the manager having built sufficient excess par in the transaction
so that the aggregate collateral amount is equal to or exceeding
the portfolio's reinvestment target par balance after the
acquisition.

To protect the transaction from par erosion, any distributions
received from workout loans purchased with principal will
irrevocably form part of the issuer's principal account proceeds
and any distributions received from workout loans purchased with
interest or collateral enhancement proceeds will irrevocably form
part of the issuer's principal account proceeds unless the manager
has recovered the collateral value of the workout loan.

At closing, the portfolio was well-diversified, primarily
comprising broadly syndicated speculative-grade senior secured term
loans and senior secured bonds. S&P said, "Therefore, we have
conducted our credit and cash flow analysis by applying our
criteria for corporate cash flow collateralized debt obligations.
As such, we have not applied any additional scenario and
sensitivity analysis when assigning ratings to any classes of notes
in this transaction."

S&P said, "In our cash flow analysis, we used the EUR437.90 million
performing pool balance including recoveries, the covenanted
weighted-average spread (3.60%), the reference weighted-average
coupon (4.00%), and the covenanted weighted-average recovery rates
as indicated by the collateral manager at the 'AAA' level. 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 indicates that the available credit enhancement
for the class B-1 to D notes could withstand stresses commensurate
with higher rating levels than those we have assigned. However, as
the CLO will be in its reinvestment phase starting from closing,
during which the transaction's credit risk profile could
deteriorate, we have capped our ratings assigned to the notes.

"This transaction also has a EUR2.00 million liquidity facility
provided by The Bank of New York Mellon for a maximum of six years
with the drawn margin of 2.50%. In our cash flows, we have added
this amount to the class A notes' balance since the liquidity
facility payment amounts rank senior to the interest payments on
the rated notes."

The transaction includes an amortizing reinvestment target par
amount, which is a predetermined reduction in the value of the
transaction's target par amount, unrelated to the principal
payments on the notes. This may allow for the principal proceeds to
be characterized as interest proceeds when the collateral par
exceeds this amount, subject to a limit, and affect the
reinvestment criteria, among others. This feature allows some
excess par to be released to equity during benign times, which may
lead to a reduction in the amount of losses that the transaction
can sustain during an economic downturn. Hence, in S&P's cash flow
analysis, it has considered scenarios in which the target par
amount declined by the maximum amount of reduction indicated by the
arranger.

S&P said, "Our cash flow analysis also considers scenarios where
the underlying pool comprises 100% of floating-rate assets (i.e.,
the fixed-rate bucket is 0%) and where the fixed-rate bucket is
fully utilized (in this case, 12.5%). In latter scenarios, the
class F cushion is -0.81%. Based on the portfolio's actual
characteristics of the portfolio and additional overlaying factors,
including our long-term corporate default rates and the class F
notes' credit enhancement (6.83%), we believe this class is able to
sustain a steady-state scenario, where the current market level of
stress and collateral performance remains steady. Consequently, we
have assigned our 'B- (sf)' rating to the class F notes, in line
with our criteria.

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

"Until the end of the reinvestment period on Feb. 22, 2025, the
collateral manager is allowed to substitute assets in the portfolio
for so long as our CDO Monitor test is maintained or improved in
relation to the initial ratings on the notes. This test looks at
the total amount of losses that the transaction can sustain as
established by the initial cash flows for each rating, and compares
that with the default potential of the current portfolio plus par
losses to date. As a result, until the end of the reinvestment
period, the collateral manager can, through trading, deteriorate
the transaction's current risk profile, as long as the initial
ratings are maintained.

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

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

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

The transaction securitizes a portfolio of primarily senior secured
leveraged loans and bonds, and is managed by CVC Credit Partners
Group Ltd. and CVC Credit Partners Investment Management Ltd. as a
sub-manager.

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 X
to E notes to five hypothetical scenarios.

"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."

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."

  Ratings List

  Class   Prelim.    Prelim.    Interest        Credit
          rating     amount     rate            enhancement (%)
                   (mil. EUR)  
  -----   -------  ----------   --------        ---------------
   X      AAA (sf)     1.00     Three/six-month          N/A       

                                EURIBOR plus 0.30%

   A      AAA (sf)   273.00     Three/six-month          37.66
                                EURIBOR plus 0.83%

   B-1    AA (sf)     31.80     Three/six-month          27.84
                                EURIBOR plus 1.30%  

   B-2    AA (sf)     11.20     1.70%                    27.84

   C      A (sf)      25.80     Three/six-month
                                EURIBOR plus 2.10%       21.95

   D      BBB (sf)    29.90     Three/six-month          15.12  
                                EURIBOR plus 3.10%

   E      BB- (sf)    24.00     Three/six-month           9.64
                                EURIBOR plus 5.86%

  F      B- (sf)     12.30     Three/six-month           6.83     
                                EURIBOR plus 8.06%

  Sub notes   NR     52.70     N/A                      N/A

  EURIBOR--Euro Interbank Offered Rate.
  NR--Not rated.
  N/A--Not applicable.




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

ALCOA NEDERLAND: Fitch Assigns BB+ Rating on New Unsecured Notes
----------------------------------------------------------------
Fitch Ratings has assigned a 'BB+'/'RR4' rating to Alcoa Nederland
Holding B.V.'s (Alcoa Nederland) proposed senior unsecured notes.
The notes rank pari passu with the company's existing notes and are
guaranteed by Alcoa Corporation. Proceeds of the notes are to be
used to fund pension obligations and repay debt.

The rating reflects Alcoa's modest leverage; leading positions in
bauxite, alumina and aluminum; strong control over costs and
spending; and flexibility afforded by the scope of its operations.

The Stable Outlook reflects Fitch's view that operations will
continue to see no material impact from the coronavirus pandemic,
total debt/operating EBITDA after minority distributions will
generally be below 2.5x (YE 2.6x), and that FCF will generally be
positive after minimum pension contributions.

KEY RATING DRIVERS

Low-Cost Upstream Position: Alcoa assesses its bauxite costs in the
first quartile, its alumina costs in the first quartile and its
aluminum costs in the second quartile of global production costs.
Most of Alcoa's alumina facilities are located next to its bauxite
mines, cutting transportation costs and allowing consistent feed
and quality. Aluminum assets benefit from prior optimization and
smelters co-located with cast houses to provide value-added
products, including slab, billet and alloys.

Forecasted Sub-3.0x Leverage Metrics: Total debt of $2.5 billion
was 2.6x operating EBITDA after dividends from associates and
distributions to minority interests, and net debt/operating EBITDA
after dividends from associates and distributions to minority
interests was 0.9x at Dec. 31, 2020. Fitch expects operating EBITDA
of at least $1.3 billion in 2021, net debt/EBITDA after minority
distributions to be less than 1.0x and total debt to EBITDA after
minority distributions to remain under 2.5x, assuming average
London Metal Exchange (LME) aluminum prices at $1,950/tonne (t) in
2021 and $1,850/t in 2022 and 2023. Fitch expects FFO leverage
before voluntary pension contributions to trend under 3.0x longer
term.

The company's initial capital structure was set in a $1,600/t
aluminum price environment, and the $500 million notes issued in
2018 were used to fund contributions to pension plans thereby
providing flexibility in making required contributions. While the
$750 million notes issued in July 2020 were for general corporate
purposes, Fitch expects total debt to return to roughly $1.8
billion longer-term absent opportunistic issues to fund pension
contributions.

Sensitivity to Aluminum Prices: While bauxite and alumina are
priced relative to market fundamentals in those markets and their
sales account for the bulk of Alcoa's earnings, these product
prices are sensitive to aluminum prices over the long run. The
company estimates a $100/t change in the LME price of aluminum
affects EBITDA by $195 million, including the effect of the power
LME linked agreements.

Alcoa has some value-added energy and conversion income, and some
power costs are LME linked, but the company will remain exposed to
the aluminum market.

Aluminum Price Volatility: Fitch raised its aluminum price
assumptions to $1,950/t from $1,600/t for 2021 on a stronger demand
recovery in China, particularly from the automotive and solar
energy sectors, and re-stocking outside of China, particularly in
Europe. Fitch expects a production surplus outside of China to
persist, causing prices to soften modestly once pent-up demand is
satisfied.

Supply rationalization improved the average LME aluminum cash price
to about $1,969/t in 2017 from about $1,660/t in 2015 and $1,620/t
in 2016. The LME aluminum price averaged about $2,110/t in 2018 on
dislocation from sanctions on United Company RUSAL Plc (B+/Stable),
and $1,791/t in 2019 as trade tensions bit into demand growth while
supply rebounded. The current spot price is about $2,150/t,
compared with the average of about $1,916/t in 4Q20.

AWAC Considerations: The company's alumina and bauxite operations
are owned through Alcoa Worldwide Alumina and Chemicals (AWAC). In
2020, AWAC generated $896 million in EBITDA and paid $457 million
in dividends, net of capital contributions. AWAC's dividend policy
is generally to distribute at least 50% of the prior calendar
quarter's net income of each AWAC company, and certain companies
will also be required to distribute excess cash. Alcoa consolidates
AWAC's results, and Fitch expects minority distributions net of
contributions to range from about $100 million to $200 million per
year under its price assumptions.

AWAC has scant debt, and incurrence would fall under the subsidiary
debt basket in Alcoa's revolver, equal to the greater of $150
million and 1% of Alcoa's consolidated tangible assets, thereby
limiting the risk of structural subordination.

Pension Underfunding: Alcoa reported minimum required pension
funding through 2025 estimated at $965 million at Dec. 31, 2020,
and the funded status of direct benefit plans was a $1.5 billion
shortfall. The discretionary contributions made in 2018 resulted in
flexibility for future mandatory minimum payments.

Fitch expects Alcoa to manage its contributions through cash
generation and cash on hand as well as proceeds from the issuance
of the proposed notes. Fitch also expects Alcoa to make voluntary
contributions consistent with its capital-allocation policies when
generating excess cash flow and use flexibility to defer
contribution to shore up liquidity when cash balances are expected
to be below $1 billion. Fitch expects annual FCF before pension
contributions to average at least $250 million.

Alcoa has taken several actions to freeze the defined pension plans
for U.S. and Canadian salaried employees and eliminate retiree
medical subsidies, effective Jan. 1, 2021.

DERIVATION SUMMARY

Alcoa Corp.'s total debt/operating EBITDA after associate and
minority dividends generally under 2.5x position it well against
'BB+' metals peers. While pension obligations are high, required
contributions are expected to be manageable. Fitch expects EBITDA
margins to average around 11% based on Fitch's price assumptions
over the next 24 months. The ratings of Alcoa Nederland Holding
B.V. are equalized with those of Alcoa Corp. due to their strong
operational and strategic linkages, in line with Fitch's Parent and
Subsidiary Rating Linkage (PSL) criteria.

Comparable Fitch-rated aluminum peers include United Company RUSAL
international public joint-stock company (B+/Stable), China
Hongqiao Group Limited (BB-/Stable), and Aluminum Corporation of
China Ltd. (Chalco; A-/Stable).

RUSAL benefits from substantial size (it is the largest aluminum
company outside of China) and its stake in PJSC MMC Norilsk Nickel.
FFO leverage is expected to be above 3.5x through 2022. RUSAL's
rating also captures the higher-than-average systemic risks
associated with the Russian business and jurisdictional
environment.

Hongqiao benefits from greater size, higher vertical integration
and EBITDA margins above 20%. Before the pandemic, Fitch expected
Hongqiao to continue to report positive FCF in the near term and
FFO net leverage to remain at 2.4x-2.7x. The company's ratings are
constrained by weak internal controls and uncertainties regarding
the policy implications of unpaid power tariffs and potential
surcharges on power costs, which could significantly increase
production costs.

Chalco is rated on a top-down approach based on the credit profile
of parent Chinalco, which owns 32% of the company. Fitch's internal
assessment of Chinalco's credit profile is based on its
Government-Related Entities Rating Criteria and is derived from
China's (A+/Stable) rating, reflecting its strategic importance.

KEY ASSUMPTIONS

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

-- Fitch commodity price assumptions for aluminum (LME spot) of
    $1,950/t in 2021, $1,850/t in 2022 and 2023;

-- Estimated shipments at guidance;

-- Capex at guidance;

-- Warrick Rolling Mill sale is completed as announced;

-- Pension contributions deferred while cash on the balance sheet
    is less than $1 billion and capacity exists;

-- No change in capital allocation framework

RATING SENSITIVITIES

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

-- Meaningful and sustainable reduction in unfunded pension
    status;

-- EBITDAR margins expected to be sustained above 15%;

-- FFO leverage expected to be sustained below 2.5x;

-- Total debt/EBITDA expected to be sustained below 2.0x.

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

-- EBITDAR margins sustained below 10%;

-- FFO leverage expected to be sustained above 3.0x;

-- Total debt/EBITDA expected to be sustained above 2.5x;

-- LME aluminum prices expected to be sustained below $1,600/t.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity: Cash on hand was $1.6 billion at Dec. 31, 2020.
The company has an undrawn $1.5 billion senior secured revolver due
to mature on Nov. 21, 2023 (scant utilization for LOC). Based on
the leverage ratio calculation as of Dec. 31, 2020, the maximum
additional borrowing capacity available to remain in compliance
with the covenant was $1.3 billion.

The revolver was amended on June 24, 2020 to allow for netting of
interest or financing cost accrued on the $750 million notes issued
in July 2020 notes for cash interest expense calculation purposes;
and netting from total debt of the lesser of unrestricted cash on
the balance sheet and proceeds of the $750 million notes issued in
July 2020 to the extent not used to repay the $750 million notes
due 2024, through the quarter ended June 30, 2021, provided the
company would have to issue cash netting notices for the March 31,
2021 and June 30, 2021 quarters, and the revolver availability for
those quarters would be reduced by one-third of the net proceeds of
the notes issued in July 2020.

The revolver was further amended on March 4, 2021 to allow the
company to issue notes to fund voluntary or mandatory pension or
other post retirement obligation plan contributions while enhancing
access to the facility.

The agreement amended the maximum leverage ratio (substantially,
total debt/EBITDA) to 2.75x from 3.0x (through April 1, 2021 and
from 2.5x thereafter) provided that if the company issues senior
notes and funds contributions to pension or other postretirement
benefit plans during 2021, then on or after March 31, 2022 the
maximum leverage ratio shall be increased by an amount equal to the
lesser of such contributions and the principal amount of the notes
divided by consolidated EBITDA for the four fiscal quarters most
recently ended on or prior to the date of issuance of the notes to
1.00.

The amendment also allows the netting from total debt, for any
period on or before Dec. 31, 2021, the amount of notes issued in
2021, proceeds of which have been, or are intended to be, used to
fund contributions to pension or other postretirement benefit
plans.

The interest expense coverage ratio (substantially, EBITDA/cash
interest expense) covenant was amended to a minimum of 4.0x from a
minimum of 5.0x.

The company has a $120 million receivables purchase facility
maturing in October 2022, which was unutilized at Dec. 31, 2020.

Fitch anticipates FCF to be positive over the ratings horizon
before voluntary pension contributions.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch has made no material adjustments that are not disclosed
within the company's public filings.




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

VOLVO CAR: S&P Affirms 'BB+' ICR & Alters Outlook to Positive
-------------------------------------------------------------
S&P Global Ratings revised its outlook on car manufacturer Volvo
Car AB to positive from stable, and affirmed its 'BB+' long-term
issuer credit rating.

The positive outlook indicates a potential upgrade over the next
12-18 months if Volvo Car further solidifies its position in key
geographic markets and improves its adjusted EBITDA margin to well
above 8%, while sustaining adjusted FOCF to sales of more than 2%
and an adjusted net cash position.

Volvo's robust operating performance in 2020, despite
COVID-19-related constraints, facilitates continued improvements
over the coming 12-18 months.  While global light vehicles unit
sales fell by about 14% in 2020 due to COVID-19 fallout, Volvo
Car's volumes decreased by only 6%. This relative resilience stems
from the company's position in the lower premium segment, which
fared better than the mass market. It also reflects the company's
material share of business in the more elastic Chinese market (25%
of 2020 volumes), as well as its market share gains in its key
operating regions: China, Europe, and the U.S. In Europe, Volvo's
share in the premium segment increased to 9.3% in 2020 from 8.8% in
2019. Similarly, in the U.S., its share rose to 4.8% in 2020 from
4.0% in 2019. The combination of management's swift actions on
costs, government support on short-term work schemes, and carbon
dioxide credits sold to Ford, Volvo managed to report an S&P Global
Ratings-adjusted EBITDA margin of about 7.3% in 2020. This is only
marginal lower than the 8.0% reported in 2019. Furthermore, the
company demonstrated its capacity to preserve cash flows through
tight working capital management (inflow of about SEK11 billion in
2020) and cuts in capital expenditure (capex) for tangible assets
of about 15% from the previous year. In 2020, Volvo Car's free
operating cash flow (FOCF) to sales soared to about 5.8% from 4.1%
in 2019 and 2.8% in 2018.

S&P forecasts that Volvo Car could gradually improve its EBITDA
margin towards 9% by 2022.  Sales volumes are driving improvements
in Volvo Car's EBIDTA margin. The company sold 662,000 cars in
2020, indicating that the company continues to be a small car
manufacturer by global standards. However, this is offset by its
marked presence in the three largest auto markets, China, Europe,
and the U.S. In 2020, revenues from Europe (46%) still represented
the largest portion, compared with China (23%) and the U.S. (15%).
S&P anticipates that automakers with a large presence in China are
likely to benefit from the market's quicker recovery from last
year's COVID-19-related slump--with volumes reaching pre-crisis
levels by 2022--as well as improved growth prospects. Beyond
external factors, Volvo Car is also poised to benefit from its
clear focus on electrified vehicles and its product pipeline,
targeting the launch of one new electric car every year until 2025.
Volvo Car's electrified car strategy has been successful so far,
with one out of three cars sold in Europe being a plug-in hybrid
electric vehicle (PHEV). The company is preparing to increase its
sales of battery electric vehicles (BEVs) with the recent launch of
the XC40 Recharge and the C40 Recharge. That said, over the next
couple of years, Volvo Car could be up against a dented market
position due to intensified competition from other automakers'
massive pipeline of electric cars. For example, market research
firm LMC expects that more than 300 models will become available on
the market in 2022, from about 140 models in 2020. The company,
similar to its peers, will probably continue to adhere to cost
controls, and S&P believes these savings will represent the other
contributing growth factor of the company's EBITDA margin. However,
at about 9% EBITDA margin, Volvo Car would still lag other premium
incumbent manufacturers such as Daimler and BMW, or even recent
entrant Tesla.

Volvo will continue to generate sizable FOCF in the next couple of
years, albeit less than in 2019-2020.  S&P assumes that Volvo Car's
FOCF will stand at SEK3 billion-SEK5 billion in 2021 and SEK5
billion-SEK7 billion in 2022, versus about SEK15 billion in 2020
and SEK11 billion in 2019. Apart from a one-off reversal in working
capital in 2021 related to payments that had been delayed from
2020, the decrease in FOCF mainly reflects an uptick in
investments, reflecting a combination of continued high research
and development (R&D) spending and expenditure related to the
company's subscription model "Care by Volvo." However, following
the anticipated dip in 2021, S&P expects that Volvo's S&P Global
Ratings-adjusted FOCF to sales could return to more than 2% from
2022, and hover around 3% on average over 2018-2023.

Volvo Car's strong balance sheet and liquidity are a key support
for the rating.   The company operates with a net cash position of
about SEK29 billion as of Dec. 31, 2020, and it has maintained a
net cash position for the past six years. S&P expects that Volvo
Car will continue its conservative financial policy stance and
adjust investments and returns to shareholders such that it
sustains a net cash position in the foreseeable future. In S&P's
view, the net cash position will help Volvo Car offset the damage
on credit metrics from temporary episodes of volatility in its end
markets and operating performance. In addition, the company's high
cash balance and additional credit facilities bolster liquidity. As
of end-December 2020, Volvo had access to liquidity sources
equivalent to about 36% of its sales; this is in line with the
company's intentions to maintain liquidity sources in excess of 15%
of its sales.

S&P said, "We continue assessing Volvo Car as a highly strategic
subsidiary of the Geely group.   The Feb. 24, 2021 announcement
about the intentions of Volvo Car and Chinese carmaker Geely
Automobile Holdings Ltd. (Geely Auto) to pursue their collaboration
on a contractual basis rather than through a full merger has no
impact on our current assessment of Volvo Car's highly strategic
status within the Geely group. We understand that Volvo Car and
Geely Auto will look to optimize synergies through
joint-purchasing, joint-development of new technologies and
platform sharing while keeping their own standalone operations. The
group parent Zhejiang Geely Holding Group Co. Ltd.
(BBB-/Negative/--) controls Volvo Car AB through its ownership of
97.8% of the company's shares. While Volvo Car accounts for a large
portion of the Zhejiang Geely's auto volume sales (34% in 2019) and
represents a strategic asset to the group, we do not align our
rating on Volvo with the rating on Zhejiang Geely. This is due to
the lack of full integration of Volvo's operations with the group
and because Volvo continues to be managed independently.

"The positive outlook indicates that we could raise our rating on
Volvo Car in the next 12-18 months if the company continues to
expand its position in key markets despite increasing competition
in electric vehicles, while further improving profitability and
FOCF.

"We could raise our rating on Volvo Car in the next 12-18 months if
the company continues to expand its market share in key markets and
successfully executes on its EV model pipeline, sustainably
translating into an S&P Global Ratings-adjusted EBITDA margin well
above 8% and FOCF to sales above 2%. An upgrade would also hinge on
the company's ability to maintain a strong balance sheet through a
net cash position.

"We could revise the outlook to stable if we saw a low probability
of Volvo Car achieving an adjusted EBITDA margin well above 8% and
FOCF to sales of more than 2% on a sustainable basis. This could
happen due to operating setbacks, for example related to the launch
of new models or failure to maintain a lean cost structure, or
higher competition on new electrified models. We could also revise
the outlook and align it with that on Geely if we were to downgrade
the parent to 'BB+'."




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

TURK HAVA: Moody's Completes Review, Retains B3 CFR
---------------------------------------------------
Moody's Investors Service has completed a periodic review of the
ratings of Turk Hava Yollari Anonim Ortakligi and other ratings
that are associated with the same analytical unit. The review was
conducted through a portfolio review discussion held on February
25, 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

The B3 corporate family rating on Turk Hava Yollari Anonim
Ortakligi (Turkish Airlines) incorporates a baseline credit
assessment (BCA) of caa1 and a one-notch uplift as a result of
Turkish Airlines being classified as a government-related issuer
(GRI) in view of its significant ownership by the government of
Turkey through its Turkey Wealth Fund. The B3 rating reflects the
significant stress in the aviation industry as a result of the
coronavirus pandemic. Turkish Airlines' credit profile is impacted
by the heightened refinancing risk as a result of weak operational
cash flows relative to near-term debt maturities. The airline is
the national flag carrier and has a strong market position in
Turkey. The airline historically has had a well-diversified
passenger revenue base supported by tourism traffic into the
country and the Istanbul Airport acting as a global aviation hub.

The principal methodologies used for this review were Passenger
Airline Industry published in April 2018.




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

CLARKS: Mulls Store Closures Under New Ownership
------------------------------------------------
Huw Hughes at FashionUnited reports that Clarks is reportedly
eyeing closures across its 320-strong store estate under its new
ownership.

The company's executive chairman and CEO Victor Herrero has been
tasked with creating a plan to steer the British footwear retailer
out of the pandemic, which will likely begin with store closures,
FashionUnited relays citing The Telegraph.

But he said he would try to save "as many as possible", according
to the newspaper.

Hong Kong-based private equity firm LionRock Capital acquired a
GBP100 million majority stake in Clarks late last year,
FashionUnited recounts.  It came as the 195-year-old British
footwear retailer received the green light from its creditors to
launch a company voluntary arrangement (CVA) which will see its
stores switch to turnover-based rents, FashionUnited notes.

"We're in the final stages of wrapping all the UK store
restructuring that needs to take place," Lionrock founder Daniel
Tseung, as cited by FashionUnited, said, according to The
Telegraph.

But he was tight-lipped about how many jobs cuts there might be
across Clarks' 12,000-strong workforce, FashionUnited notes.

In February, Clarks reported an 8% drop in pre-Covid sales to
GBP725.3 million for the year ended February 2020, FashionUnited
discloses.

The company said the fall reflected "continued difficult conditions
in the UK and ROI retail channel as footfall declines continued",
FashionUnited relates.

Its operating loss was GBP14.1 million, down from a loss of GBP48.7
million the year before, while its loss after tax was GBP15
million, compared to a loss of GBP20.9 million a year earlier,
according to FashionUnited.


EG GROUP: Fitch Assigns B(EXP) Rating on US$1.4BB Secured Debt
--------------------------------------------------------------
Fitch Ratings has assigned EG Group Limited's (EG) USD1.4
billion-equivalent senior secured debt and EUR610 million
second-lien debt expected senior secured instrument ratings of
'B(EXP)'/'RR3' and 'CCC(EXP)'/'RR6', respectively. The expected
ratings are aligned with existing instrument ratings.

Fitch has affirmed EG's Long-Term Issuer Default Rating (IDR) at
'B-' with a Stable Outlook following the announcement of its
planned acquisitions of ASDA and OMV's forecourt businesses, whose
completion is subject to regulatory approvals.

Final instrument ratings are contingent upon completion of these
acquisitions from ASDA (Bellis Finco BB-/Stable) for GBP750 million
and from OMV for EUR485 million and the refinancing of USD188
million of existing senior secured debt and existing USD309 million
second-lien debt under a structure as presented, and receipt of
final documentation conforming materially to information already
received.

The 'B-' IDR reflects high leverage following a large number of
successive mainly debt-funded acquisitions. Positive momentum from
2020's resilient trading and the delivery of synergies provide EG
with deleveraging capacity, assuming no further debt-funded M&A
beyond these transactions. The rating also incorporates the group's
position as a leading global petrol fuel station (PFS)/ convenience
store/ food service operator with a global reach.

KEY RATING DRIVERS

Leverage Remains High: Fitch forecasts funds from operations (FFO)
adjusted gross leverage to remain high at 8.5x in 2021 (versus 8.2x
in 2020), consistent with 'B-' rating, following the USD2.1 billion
new debt, USD500 million of which will refinance existing debt. Its
two wholly debt-funded acquisitions from OMV and ASDA for USD1.6
billion show a continued desire to expand under an aggressive
financial policy. Fitch expects deleveraging to 7.8x by 2022,
towards Fitch's positive rating threshold of 7.5x. This is subject
to EG balancing its appetite for further expansion with
deleveraging towards an IPO with management's medium-term target of
4x-4.5x net debt/EBITDA.

EBITDA Growth and Synergies: Fitch forecasts an increase in EBITDA
to USD1.6 billion in 2022, the first full year of contribution from
OMV and ASDA forecourts, which bring a historical combined EBITDA
of USD150 million (excluding synergies). Fitch expects EBITDA to
trend towards USD1.7 billion over the next four years, compared
with management's guided pro-forma EBITDA of USD1.78 billion,
including around USD270 million synergies. Although management has
a good track record in extracting synergies from acquisitions,
Fitch conservatively assumes some haircut to total synergies, with
food service synergies from ASDA forecourts acquisition being
delivered by 2024. Fitch forecasts broadly neutral free cash flow
(FCF) in the initial two years on higher capex, with FCF margin
trending towards 1% thereafter, enabling deleveraging.

Solid 2020 Performance: EG outperformed Fitch's 2020 forecast with
EBITDA up 50% yoy at USD1.25 billion as strong fuel margin - which
increased to 10 cpl in 2020 from 7.2 cpl in 2019- helped to offset
pandemic-induced disruption in fuel demand (20% reduction in fuel
volumes). Performance was further supported by earnings
contributions from 2019 acquisitions, delivery of synergies, cost-
and cash-mitigation measures, including government support and
reduction in discretionary capex.

Fuel Margin May Decline: Fitch expects some EBITDA margin pressure
due to anticipated fuel margin contraction to 8.0 cpl-8.5 cpl over
the next four years if higher oil prices relative to 2020 levels
are sustained. A 1 cpl change in gross margin has around USD250
million impact on Fitch-forecast EBITDA in 2022, although the
absolute impact can differ depending on fuel volumes. Fitch
understands from management that fuel pricing of EG and ASDA will
remain separate, with the latter generating a lower margin. Fitch
expects the unhedged negative oil price impact on profitability to
be somewhat offset by increased contribution from higher-margin
non-fuel sales and potentially greater purchasing power on
increased scale.

Focus on Governance and Controls: EG is still developing governance
and internal controls that are appropriate for its size. Its
previous external auditor Deloitte had cited weakness of internal
controls for the group's complexity upon its resignation in 3Q20.
Meanwhile EG has made progress by establishing an internal audit
team in 2020, which will report to the newly appointed independent
director chairing the audit committee. Fitch views positively the
increased independent oversight at EG's board via three recent
high-calibre independent director appointments, which should help
balance its stakeholder interests at the board level.

Execution Risks Mitigated: EG's enlarged scale and market reach
gained over a short time period present meaningful execution risks.
Fitch believes that the execution risk from the two new
acquisitions in the markets where EG already has established its
presence is mitigated by its good record of integrating previous
acquisitions, identifying margin improvements and cost-saving
opportunities on a lower scale. Over the past year EG has proven
its ability to deliver synergies linked to previous acquisitions.

Material Synergies: ASDA's forecourt business acquisition will
almost double EG's presence by site numbers in the UK, while
planned synergies at USD113 million are material, more than half of
which will be delivered from establishing a food-service
proposition on ASDA estate, albeit not fully realised until 2024.
OMV forecourts acquisition is a bolt-on acquisition with limited
planned synergies of USD10 million.

Leading Global PFS Operator: The rating of EG remains fundamentally
supported by its scale, diversification and its positions in
western Europe, the US and Australia as a leading PFS and
convenience retail/food services operator, following a large number
of acquisitions since 2018. Increased purchasing scale allows EG to
benefit from a stronger negotiating position on fuel contracts with
oil majors. The significant 3.0 billion litre increase in fuel
sales to 4.7 billion litres in the UK, following the ASDA
forecourts acquisition, should enable some procurement savings.

DERIVATION SUMMARY

The majority of EG's business is broadly comparable with that of
other peers that Fitch covers in its food/non-food retail rating
and credit-opinions portfolios, although the "company-owned
company- operated" model should provide more flexibility and
profitability for EG.

With around 300 highway sites, EG can be compared to motorway
services group Moto Ventures Limited (B-/Stable) and, to a lesser
extent, to emerging-markets oil product storage/distributor/PFS
vertically integrated operators such as Puma Energy Holdings Pte
Limited (BB-/Rating Watch Negative) and Vivo Energy Plc
(BB+/Stable).

Moto has slightly higher leverage than EG, although it benefits
from an infrastructure-like business profile as it operates in a
regulated market with high barriers to entry that Fitch believes
are more defensive than that of EG. During the pandemic traffic
decline was more pronounced on motorways, thus having a more
negative impact on Moto's fuel volumes and retail-segment revenues
than on EG's. Both companies rely on non-fuel operations to improve
margins. EG is more geographically diversified with exposure to
both the US and Australian markets and a strong market share in
seven western European countries, against only one in Moto's case.

KEY ASSUMPTIONS

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

-- Annual fuel volumes, inclusive of ASDA and OMV, above 25
    billion litres over the next four years;

-- Fuel margin at 8 cpl-8.5 cpl over the next two years;

-- Total gross profit evenly split between fuel and non-fuel;

-- Annual working capital outflows peaking at USD200 million in
    2022, as tax deferral (USD573 million) starts to unwind in
    October 2021;

-- Capex to remain above USD500 million over the next four years;
    and

-- No further M&A for the next four years. If further M&As
    materialise, Fitch would assess their impact based on their
    scale, funding, multiples paid and how accretive to earnings
    they are, including synergies.

Key Recovery Assumptions:

According to Fitch's bespoke recovery analysis, higher recoveries
would be realised by preserving the business model using a
going-concern approach, reflecting EG's structurally
cash-generative business. This is despite the reasonable asset
value of EG's sites, but real value to creditors is embedded in
such assets being operational rather than liquidated.

Fitch estimates a post-restructuring going concern EBITDA of
USD1,250 million, following the acquisitions of forecourts
businesses from ASDA and OMV. This corresponds to a 30% discount
compared with management's identified USD1,775 million pro-forma
EBITDA. Fitch estimates that at this post-restructuring going
concern EBITDA level group would become FCF-neutral.

In a distressed scenario, Fitch believes that a 5.5x multiple
reflects a conservative view of the weighted average value of EG's
portfolio. By comparison, Moto's 7.5x distressed multiple reflects
the regulated nature of the market, the high quality and strategic
importance of the company's highway sites and infrastructure-like
cash-flow profile.

As per its criteria, Fitch assumes EG's revolving credit facility
(RCF) and local-currency debt facilities to be fully drawn and
deducts 10% from the enterprise value to account for administrative
claims.

S&P's waterfall analysis generated a ranked recovery for the senior
secured facilities, in the 'RR3' band, indicating a 'B' instrument
rating, one notch above the IDR. The waterfall analysis output
percentage on current metrics and assumptions remains unchanged at
55%.

Second-lien instruments (existing and expected) are in the 'RR6'
band and have an instrument rating at 'CCC', two notches below the
IDR.

RATING SENSITIVITIES

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

-- Unqualified audit opinion for 2020's annual accounts and
    continued improvement in governance is a pre-requisite for a
    positive rating action in the future, in tandem with:

-- A continued recovery post Covid-19 disruption, successful
    integration of acquired businesses, increasing EBITDA towards
    EUR1.6 billion in tandem with a committed financial policy,
    which together will bring FFO lease-adjusted gross leverage to
    7.5x or below on a sustained basis;

-- FFO fixed-charge cover of 2x or higher on a sustained basis;
    and

-- Positive FCF on sustained basis.

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

-- Weak post Covid-19 disruption recovery and negative impact
    from rising oil prices leading to EBITDA below USD1.3 billion,
    after including the newly acquired businesses;

-- FFO lease-adjusted gross leverage increasing to/above 9x in
    2022 on a sustained basis;

-- FFO fixed-charge cover sustainably below 1.5x, along with
    deteriorating liquidity; and

-- Neutral-to-negative FCF on a sustained basis.

BEST/WORST CASE RATING SCENARIO

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

LIQUIDITY AND DEBT STRUCTURE

Satisfactory Liquidity: EG's liquidity was strengthened during
2020, due to resilient trading performance and the group's ability
to defer around USD626 million of tax payments. The cumulative
impact saw the RCF being fully paid down, providing USD591 million
of available, undrawn liquidity. Total available liquidity,
including available cash balances, was around USD1.2 billion at the
end of 2020 (excluding Fitch's assumed restricted cash of USD100
million).

Our forecasts envisage that FCF generation will be neutral in the
medium term, even once tax deferral starts unwinding in October
2021 and is paid out over the subsequent 36 months. Fitch views the
need to meaningfully utilise the RCF for operations as low. As part
of this transaction, the RCF maturity is expected to be extended to
2024 from 2022. The bulk of debt maturities are in 2025.

ESG CONSIDERATIONS

EG has an ESG Relevance Score of '4' for Financial Transparency due
to internal controls pending improvements and expected delay of
audited accounts, which has a negative impact on the credit profile
and is relevant to the ratings in conjunction with other factors.

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


FREIGHT FORWARDINGS: High Court Winds Up Business
-------------------------------------------------
Freight Forwardings Ltd was wound up in the public interest in the
High Court on January 12, 2021, before Judge Prentis.  The Official
Receiver has been appointed liquidator of the company.

During the proceedings, the court heard that Freight Forwardings
Ltd arranged the transportation of goods, mainly vehicles, around
the world by using other freight companies.  It took advance fees
from customers with the promise of passing on funds to shipping
firms and customs offices as required.

Freight Forwardings Ltd came to the attention of the Insolvency
Service after it received complaints from customers that funds had
not been properly distributed as agreed. Customers had also
contacted the police.

Investigators conducted confidential enquiries and discovered that
the company failed to arrange delivery of goods they were entrusted
with. In other cases, customers were also forced to pay sums direct
to shipping firms to recover their possessions and often these
possessions were lost entirely.

The court wound up the company on the grounds of its lack of
transparency, its failure to file correct statutory documents, its
failure to maintain, preserve or make available company records and
it traded with a lack of commercial probity.

Lynda Copson, Chief Investigator for the Insolvency Service, said:

"Freight Forwardings Ltd took funds from its customers who believed
and trusted that it would provide a first class one-stop shop
enabling them to deliver valuable possessions to other countries.
Instead, the company failed to provide the promised service, often
leaving customers out of pocket or out of the possessions they had
entrusted with the company."

"We have worked quickly to wind up this company in the public
interest to stop anyone else falling victim to their poor
practices."

All public enquiries concerning the company should be sent to
Official Receiver: piu.or@insolvency.gov.uk.

Freight Forwardings Ltd - company registration number 08103731 -
was incorporated on June 13, 2012.

The petition was presented on November 11, 2020, by the Secretary
of State for Business, Energy and Industrial Strategy and the
Official Receiver was appointed as liquidator on the making of the
winding up order on January 12, 2021.

Company Investigations, part of the Insolvency Service, uses powers
under the Companies Act 1985 to conduct confidential fact-finding
investigations into the activities of live limited companies in the
UK on behalf of the Secretary of State for Business, Energy &
Industrial Strategy (BEIS).


GREENSILL CAPITAL: France Ready to Help Workers at Risk
-------------------------------------------------------
Sudip Kar-Gupta at Reuters reports that the French government
stands ready to help any workers at steel sites such as Ascoval
that might be affected by the insolvency of Greensill Capital,
Finance Minister Bruno Le Maire told France 2 TV on March 9.

Greensill Capital filed for insolvency on March 8, days after
losing investor funding and insurance coverage for its supply chain
financing business, Reuters relates.


GREENSILL CAPITAL: Liberty Steel Has Adequate Funding, Says Owner
-----------------------------------------------------------------
Eric Onstad at Reuters reports that Liberty Steel has adequate
financing to meet its current requirements and is seeking long-term
alternatives, its owner Sanjeev Gupta told British trade unions on
March 9, after major financial backer Greensill Capital went into
administration.

Trade unions had demanded assurances about Liberty, which is
Britain's third largest steelmaker with 3,000 workers and part of
the Gupta family's GFG Alliance conglomerate, after Greensill
Capital filed for insolvency on March 8, Reuters relates.

The insolvency filing came after Greensill Capital lost insurance
coverage for its debt repackaging business, Reuters notes.  It said
in its court filing that GFG Alliance, which is its largest client,
had started to default on its debts, Reuters relays.

"We have adequate funding for our current needs while we bridge the
gap to refinancing the business," Reuters quotes Mr. Gupta as
saying in prepared remarks provided by a source close to the
meeting.

"Securing alternative long-term funding is progressing well but
will take some time to organize."

The court document supporting Greensill's insolvency application
said that without insurance it was no longer able to sell notes
backed by debts to investors, nor fund clients such as GFG in
return, Reuters notes.

According to Reuters, GFG said in a statement on March 9 that the
group as a whole was operationally strong, and was benefiting from
a 13-year high in steel prices.

It said, however, that some parts of the British business were
under pressure, including the speciality steel business, Reuters
notes.

In his prepared remarks, Mr. Gupta said the group was dealing with
underperformance, Reuters recounts.

Trade unions, as cited by Reuters, said in a statement that they
had told Mr. Gupta that "all options should be considered" to
secure the future of all Liberty Steel's UK assets.


LIQUOR WORLD: High Court Winds Up Business
------------------------------------------
Liquor World (Scotland) Ltd was wound up in the public interest on
February 11, 2021, by order of Lord Clark in the Court of Session.
Julie Tait and Stuart Preston of Grant Thornton UK LLP have been
appointed joint interim liquidators of the company.

The company, which appeared to have traded as a retailer and
wholesaler of alcoholic beverages, came to the attention of the
Insolvency Service after concerns were raised about the accuracy of
its filed accounts.

Following confidential enquiries, investigators found evidence that
the company had used false and misleading documents to obtain loans
and finance from lenders.

During 2019 and 2020 Liquor World filed accounts that showed a
dramatic, and unexplained, improvement in its financial position.
The drinks company then used this improved position to make several
applications to lenders for various types of credit including
loans, asset finance and invoice factoring finance.

Investigators established that to support some of the finance
applications, Liquor World provided lenders with bank statements
that falsely showed significantly higher levels of transactions
than was actually the case. Other false or misleading documents
were also produced to lenders by the company.

Whilst a number of the finance applications were rejected by
lenders, investigators discovered that Liquor World successfully
secured finance totalling more than GBP300,000.

The court wound up the company on the grounds that the company had
been misused as a vehicle to obtain credit, operated in a manner
that has caused harm and loss to credit providers, filed false and
misleading accounts, and failed to maintain or produce adequate
accounting records with its director failing to cooperate with the
investigation.

Liquor World's current director, appointed in around April 2019,
failed to co-operate with the investigation.

David Hope, Chief Investigator for the Insolvency Service, said:

   * Liquor World has blatantly and cynically used false and
     misleading information to persuade lenders to advance funds
     to it resulting in those lenders suffering a significant
     financial loss.

   * By acting swiftly in bringing winding up proceedings, we
     have prevented any further harm taking place at the hands
     of this company.

All public enquiries concerning the company should be sent to the
joint interim liquidators: Julie Tait and Stuart Preston, Grant
Thornton UK LLP, 7 Exchange Crescent, Conference Square, Edinburgh,
EH3 8AN, Tel: 0131 229 9181.

Liquor World (Scotland) Ltd - company registration number SC472891
- was incorporated on March 19, 2014.  The company's registered
office is at 15, Unit B/3 Edison Street, Hillington Park, Glasgow
G52 4JW.

The petition was presented under s124A of the Insolvency Act 1986
on January 22, 2021, and Julie Tait and Stuart Preston of Grant
Thornton UK LLP were appointed by the Court as joint provisional
liquidators on January 26, 2021, before being appointed as interim
liquidators on February 11, 2021, on the making of the winding up
order.

Company Investigations, part of the Insolvency Service, uses powers
under the Companies Act 1985 to conduct confidential fact-finding
investigations into the activities of live limited companies in the
UK on behalf of the Secretary of State for Business, Energy &
Industrial Strategy (BEIS).



                           *********


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

Troubled Company Reporter-Europe is a daily newsletter co-
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Editors.

Copyright 2021.  All rights reserved.  ISSN 1529-2754.

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