/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/240219.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, February 19, 2024, Vol. 25, No. 36 Headlines F R A N C E CGG SA: Moody's Affirms 'B3' LongTerm CFR, Outlook Remains Stable G E R M A N Y KAEFER SE: Fitch Hikes LongTerm IDR to 'BB+', Outlook Stable TUI AG: Moody's Raises CFR to B1, Outlook Remains Positive I R E L A N D BLACKROCK EUROPEAN V: Moody's Affirms B2 Rating on EUR12MM F Notes CARLYLE GLOBAL 2015-3: Moody's Affirms B1 Rating on Class E Notes HARVEST CLO XV: Moody's Affirms B1 Rating on EUR13.5MM F-R Notes OZLME III: Moody's Affirms B2 Rating on EUR12MM Class F Notes I T A L Y [*] DBRS Puts 23 Tranches on 10 EUR ABS Transactions Under Review N E T H E R L A N D S SPRINT BIDCO: EUR700MM Bank Debt Trades at 50% Discount N O R W A Y HURTIGRUTEN GROUP: EUR655MM Bank Debt Trades at 35% Discount R U S S I A TURKMENISTAN: Fitch Affirms 'B+' LongTerm Foreign Currency IDR S P A I N EUTELSAT COMMUNICATIONS: Fitch Lowers IDR to BB-, Outlook Negative TDA CAM 9: Fitch Affirms CCsf Rating on Class D Debt S W E D E N QUIMPER AB: Fitch Hikes LongTerm IDR to 'B+', Outlook Stable S W I T Z E R L A N D PG INVESTMENT 59: Moody's Gives First Time Ba3 Corp. Family Rating U N I T E D K I N G D O M ASPECT FACADES: Administrators Seek Buyers for Assets FIRST CHOICE: Goes Into Administration MEADOWHALL FINANCE: Fitch Affirms 'CCC' Ratings on Two Tranches MILTON THREE: Wear Inns Pub Portfolio Put Up for Sale NANOSUN LIMITED: Collapses Into Administration THAMES WATER: Lack of Funding May Prompt Special Administration WINCANTON DIGITAL: Bought Out of Administration in Pre-pack Deal X X X X X X X X [*] BOND PRICING: For the Week February 12 to February 16, 2024 - - - - - =========== F R A N C E =========== CGG SA: Moody's Affirms 'B3' LongTerm CFR, Outlook Remains Stable ----------------------------------------------------------------- Moody's Investors Service affirmed CGG SA's B3 long term corporate family rating and B3-PD probability of default rating. Concurrently, Moody's affirmed the B3 ratings of the company's EUR585 million and $500 million backed senior secured notes due in April 2027. The outlook remains stable. RATINGS RATIONALE The rating affirmation reflects Moody's expectations that over the next 12-18 months CGG will derive some benefit from slow selective increases in E&P spending for seismic services, despite some quarterly volatility, and maintain a good liquidity buffer. The rating agency also expects the company's growing BTC (beyond the core) new business segments, although still modest relative to total revenue and EBITDA, will continue to scale and help diversify the company away from the highly cyclical oil and gas market while also providing great revenue stability and visibility. The affirmation and stable outlook also assumes CGG addresses the October 2025 maturity of its revolver well in advance of the 12 month maturity. For the twelve months ended September 2023, Moody's estimates CGG's Moody's adjusted debt/EBITDA was around 6.5x and EBITDA/Interest coverage around 2.0x. These metrics incorporate Moody's standard adjustments for pensions and leases, and also treat the company's spending on multi-client surveys as an operating expense. The rating agency also expects CGG's Moody's adjusted FCF to be positive in 2024 and to improve in 2025 when the company's idle vessel compensation payments cease in January of 2025, after negative Moody's adjusted free cash flow from 2020-2022. A material weakening of the OFS market and seismic demand represents a risk to this view. CGG's ratings primarily reflect its: (1) strong market position globally in the seismic industry, with high barriers to entry and leading technology; (2) relatively resilient geoscience sales under improving E&P market conditions; (3) good liquidity between cash on hand and super senior revolving credit facility (RCF) availability; (4) fast growing BTC business lines which will enhance the company's revenue stability and visibility. Offsetting these strengths are CGG's: (1) high cyclicality revenue and EBITDA linked to oil and gas investment cycles; (2) limited revenue visibility and negative free cash flow in recent years; (3) high level of Moody's adjusted gross debt and leverage; and (4) exposure to energy transition risk which will over time reduce demand for the company's core products and services. LIQUIDITY ANALYSIS As of September 30, 2023, CGG had good liquidity with about $275 million of cash on hand and $95 million available on its $100 million super senior RCF maturing in October 2025. Based on the company's preliminary 2023 results release, the company's cash balance was approximately $325 million at the 2023 fiscal year end. The company's cash balance typically includes a modest amount of trapped cash held by subsidiaries that operate in countries where exchange controls or other legal restrictions prevent these cash balances from being available for immediate use by the company or one of its subsidiaries. Over the past several years, trapped cash has declined, but ranged between $30 million-$60 million. The super senior RCF has a springing senior secured net leverage ratio at 3.5x, which will be tested if the super senior RCF is drawn at more than 40%. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Positive rating pressure would likely result from: (i) a sustained improvement in oil & gas industry spending on seismic services, leading to an adjusted debt/EBITDA (excl. multi-client capex) below 4.5x on a consistent basis, (ii) EBITDA/Interest consistently above 2.25x, (iii) positive Moody's adjusted free cash flow and, (iv) maintenance of a good liquidity position. Negative rating pressure would likely result from: (i) a deterioration in oil & gas industry spending on seismic services leading to an adjusted debt/EBITDA (excl. multi-client capex) materially and consistently above 6.0x, (ii) EBITDA/Interest consistently below 1.75x, (iii) sustained negative free cash flow leading to a deterioration in the company's liquidity profile, or (iv) a failure of the company to address its RCF and backed senior secured bond maturities well in advance of becoming current. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Oilfield Services published in January 2023. COMPANY PROFILE Headquartered in France, and listed on the Euronext Paris, CGG SA is an international geoscience company ranking among the top three companies in the seismic industry. For the twelve months ended September 30, 2023, the company had revenue of $1.1 billion and Moody's adjusted EBITDA of $200 million. ============= G E R M A N Y ============= KAEFER SE: Fitch Hikes LongTerm IDR to 'BB+', Outlook Stable ------------------------------------------------------------ Fitch Ratings has upgraded KAEFER SE & Co. KG (KAEFER) Long-Term Issuer Default Rating (IDR) to 'BB+' from 'BB'. The Outlook on the IDR is Stable. The upgrade reflects a stronger financial profile, in line with its previous positive sensitivities, including margins and leverage, following equity injection by new shareholders in 2022 and well-managed inflationary cost pressures. The rating further reflects the group's defensive and diversified business risk profile, but its small scale remains a constraint. Fitch believes a high share of maintenance services ensures revenue and earnings stability, while the conservative financial policy under the new ownership underpins a sustainable improvement in leverage with sufficient headroom for further organic and inorganic growth. This also supports its Stable Rating Outlook. KEY RATING DRIVERS Stronger Leverage, Sufficient Headroom: Fitch views KAEFER's leverage profile as strong and supportive of organic and acquisition growth. Fitch forecasts sustainable earnings growth to help reduce EBITDA gross leverage to 1.4x in 2024 from an estimated 1.6x in 2023, which represents a significant improvement from the peak of over 5.0x in 2020. Fitch believes the cash injected by the new shareholders in 2022 and subsequent debt repayment have provided KAEFER with sufficient leverage headroom under the higher rating to undertake small to medium-sized acquisitions or invest in organic growth, mostly scaffolding that requires upfront investments. The leverage profile is supported by management's and owners' commitment to a conservative capital structure with an internally defined net debt/EBITDA of below 2.0x (0.6x at end-2023), which Fitch views as achievable. Improved FCF Generation: KAEFER's free cash flow (FCF) margin turned positive in 2023 at 1.6% mostly on working-capital release, despite non-recurring costs. Fitch expects working-capital cash flows to broadly mirror the company's revenue trajectory following improved inventory management. FCF generation will also depend on capex, which Fitch estimates at around 3.0% of revenues in 2023 and 3.2% in 2024 on higher investments in scaffolding to service new contracts, before it normalises at around 2% in following two years. EBITDA Margins to Improve: Fitch forecasts EBITDA margins to improve to around 7.7% in 2025 from 6.7% in 2023. This will be driven by margin-accretive acquisitions, an exit from loss-making or low profitability contracts/branches, cost restructuring and better fixed-cost absorption (on revenue growth), bidding discipline on new-build projects and a contractual ability to pass on higher costs to customers. Fitch believes the margin improvement will not compromise the high share of lower-margin maintenance services in revenue (compared with new-build) as such services are lower risk, and provide high revenue visibility. Aligned Growth Strategy: Fitch believes the strategy of organic and acquisitive business expansion is aligned between KAEFER and all shareholders and allows the group to continue with its current conservative financial policy. The strategy is supported by a EUR144 million cash contribution by SMS Group and Altor Fund, which was used to redeem bonds and will support future growth. It is also supported by compliance with its leverage target, a continued 50% stake of the family shareholding in KAEFER, and an M&A strategy, which emphasises discipline with balanced organic growth opportunities. Defensive Diversified Business Profile: KAEFER's business profile benefits from a wide array of services, with around 200 different offering and industry combinations, across new-build (around 25%-30% of revenue) and maintenance services (around 70%-75%). It also has good end-market diversification and a strong geographical mix with a meaningful regional presence. Its comparatively low-pricing-risk contract portfolio, primarily comprising contracts based on unit rates or reimbursable costs, supports earnings predictability in a cost-inflationary environment (staff and material costs respectively at around 50% and 30% of revenue). Growth to Accelerate: The new funds injected by SMS and Altor will facilitate acquisitions in the fragmented market of insulation, access solutions, surface protection and passive fire protection, while a focus on LNG and renewable energy projects taps into current decarbonisation trends. Fitch expects acquisitions to accelerate revenue growth in 2023-2024. Fitch forecasts KAEFER's revenue will grow to around EUR2.6 billion by end-2025 (2019: EUR1.7 billion), but it nevertheless remains small in the broader engineering and construction (E&C) services sector, which constrains its ratings. DERIVATION SUMMARY KAEFER's defensive business model shows strong 'BB' category attributes, with an emphasis on its broadly diversified operations across geographies, end-markets and customers, which Fitch views as positive for the credit profile, counterbalancing its lack of scale in the sector. Fitch benchmarks KAEFER against E&C peers, including Petrofac Limited (B-/RWN) and Webuild S.p.A. (BB/Stable), Skanska AB, Ferrovial SE (BBB/Stable), and Enter Engineering PTE. Ltd., while acknowledging differences in the risk profiles between KAEFER and its E&C peers. Many of them are considerably larger with a varied profitability profile. KAEFER's EBITDA margin at 6.7%-7.7% is somewhat similar to Webuild's 7%-8% and Skanska's but stronger than Ferrovial's 3%-3.5% and should be considered in the context of the company's overall lower contract risk than a typical E&C company, a lower risk of working capital unwinding, a high share of recurring revenues and a more diversified contract portfolio, which has historically led to more resilient profitability. Lower-rated Webuild has a weaker leverage profile than KAEFER with an estimated EBITDA gross leverage of around 3.4x in 2023 and below that in subsequent years compared with 1.6x and below that at KAEFER in the same period. Petrofac has much weaker leverage metrics in the medium term with expected high near-term liquidity pressures, and issues with contracts execution due to difficulties in obtaining performance guarantees from banks for major new awards, as underlined in its Rating Watch Negative. KEY ASSUMPTIONS - Revenue to grow 4.9% in 2024 and 10.7% in 2025 from an estimated 8.6% in 2023 - EBITDA margin 7.1% in 2024 and 7.7% in 2025, up from estimated 6.7% in 2023 - Capex at 3.2% of revenue in 2024 and 2.2% in 2025, down from 3.0% in 2023 - Working-capital changes to follow the revenue trajectory - Dividend policy to remain stable - Two acquisitions forecast for 2024 - Non-recurring costs of EUR3 million a year in 2024-2025, down from EUR6.5 million in 2023 RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - Further rating upside is limited without a significant increase in scale, together with EBITDA gross leverage below 1.5x and FCF margins sustained in mid-single digits Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - EBITDA gross leverage above 2.5x - EBITDA interest coverage below 6x - Evidence of deterioration in the business profile risk, leading to increasing proportion of high-risk projects and/or customer/contract losses - Volatile FCF LIQUIDITY AND DEBT STRUCTURE Sufficient Liquidity: Fitch estimates around EUR117 million of unrestricted cash on KAEFER's balance sheet at end- 2023 (after restricting EUR30 million of cash deemed as not readily available for debt service). This was supported by the availability of EUR145 million under a EUR150 million revolving credit facility due in March 2026 with two one-year extension options. Fitch forecasts an FCF margin of 1.6% in 2023 and 1.3% in 2024, improving to 2.7% in 2025 on working-capital and capex normalisation and limited non-recurring cash outflows. Fitch assumes acquisitions in 2024 are self-funded, but the company benefits from incremental acquisition funding available under an existing syndicated facility. Debt Structure: The refinancing of KAEFER's EUR250 million bonds in 2022 with a EUR150 million term loan extended debt maturities by three years to March 2026 with two one-year extension options. Fitch views refinancing risk as low, given KAEFER's high financial flexibility, a stronger capital structure after the equity injection and its conservative financial policy. ISSUER PROFILE KAEFER is a leading service provider of insulation, access solutions, surface protection and passive fire protection as well as aftersales services. KAEFER's operations span western Europe, central and eastern Europe, APAC, Middle East and Latin America and South Africa. ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- KAEFER SE & Co. KG LT IDR BB+ Upgrade BB TUI AG: Moody's Raises CFR to B1, Outlook Remains Positive ---------------------------------------------------------- Moody's Investors Service upgraded TUI AG's corporate family rating to B1 from B2 and the probability of default rating to B1-PD from B2-PD. The outlook remains positive. RATINGS RATIONALE The rating action reflects TUI's strong results in fiscal year 2023, leading to sustainable improvement of its credit metrics with a Moody's adjusted leverage of 2.6x in fiscal year-ended September 2023. The company benefited from growth in all segments reflecting continued strong pricing and leisure travel demand, which were stronger than expected during the 2023 summer season. The year-to-date bookings and the first quarter results suggest demand to remain resilient with bookings for the summer season ahead of last year bookings at the same period. Delivery of new vessels and TUI's implementation of its asset light and digitalized business model will also help generate growth, despite deteriorating macroeconomic conditions and weakening consumer confidence which expose TUI to cutbacks in discretionary spending such as holidays. TUI's profitability as measured by Moody's adjusted EBITA recovered to 5.8%, slightly below its pre-pandemic level in fiscal 2023. Wider use of hedging instruments to cover for rising fuel price and adverse forex rates movements combined with easing inflationary pressure on cost will help TUI to maintain its profitability at par with pre-pandemic level. TUI's coverage metrics improved to 2.6x by fiscal 2023 reflecting better margin but also lower debt load and reduced utilization of its Revolving Credit Facilities (RCFs). Moody's expect that Moody's adjusted net leverage will reduce over the next 12 to 18 months, while interest coverage will gradually improve closer to 3x over the next 12 to 18 months on robust operations and reduced use of RCFs. Moody's adjusted retained cash flow improved in fiscal year 2023 to EUR654 million. However Moody's adjusted Free Cash Flow (FCF) was slightly negative at - EUR80 million because of capex investments and lease payments. Over the next 12 to 18 months, Moody's expects to see adjusted FCF gradually shift back into the positive range, particularly if revenue growth results in positive working capital movements. OUTLOOK The positive outlook reflects Moody's expectation that TUI's leverage will sustainably stay below 3x, and revenue growth will lessen its dependence to revolvers, thereby enhancing coverage metrics. The outlook also reflects Moody's expectation that TUI will maintain solid liquidity throughout the year, maintaining available liquidity above EUR1.5 billion at all times. ESG CONSIDERATIONS Moody's expects TUI to continuously meet its leverage target (gross leverage less than 3x) and to keep gradually reducing its leverage to meet its long term target of net leverage well below 1x. Furthermore, Moody's expects TUI to refrain from any re-initiation of dividend payments before 2026. LIQUIDITY Moody's views TUI's liquidity as adequate. As of fiscal 2023, TUI had around EUR3.8 billion liquidity comprising EUR1.3 billion of unrestricted cash and EUR2.5 billion of undrawn RCFs out of EUR2.5 billion total commitments. Due to the high seasonality of its operation, TUI is exposed to very large working capital swings during the low season ranging historically towards EUR2 billion. This is why TUI's liquidity relies on large RCFs which mature in July 2026. The company complies with its financial covenants and Moody's expect it will continue to do so in the next 12 to 18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Positive rating pressure could develop if -- Moody's adjusted EBITA/Interest improves to 3x -- The company maintains solid available liquidity of at least EUR1.5 billion, with a track record of prudent liquidity management -- Positive Moody's adjusted FCF with FCF/debt improving toward 5% on a sustained basis -- And Moody's adjusted gross debt/EBITDA declines to below 2.5x on a sustained basis Negative pressure could arise if -- Moody's adjusted gross debt/EBITDA increased to 3.5x -- Moody's adjusted EBITA/Interest remains well below 2.5x -- Liquidity deteriorates with sustainably negative Moody's adjusted FCF and negative working capital movement over the full fiscal year. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Business and Consumer Services published in November 2021. COMPANY PROFILE TUI AG, based in Hannover, Germany, is a leading global tourism group with divisions in Holiday Experiences and Markets and Airlines, serving 21 million customers in 180 regions pre-pandemic. With listings on the Frankfurt, Hannover, and London stock exchanges, TUI reported revenue of EUR20.7 billion and underlying EBIT of EUR977 million for the fiscal year ending September 30, 2023. ============= I R E L A N D ============= BLACKROCK EUROPEAN V: Moody's Affirms B2 Rating on EUR12MM F Notes ------------------------------------------------------------------ Moody's Investors Service has upgraded the ratings on the following notes issued by BlackRock European CLO V Designated Activity Company: EUR42,000,000 Class B Senior Secured Floating Rate Notes due 2031, Upgraded to Aaa (sf); previously on Oct 7, 2022 Upgraded to Aa1 (sf) EUR24,000,000 Class C Senior Secured Deferrable Floating Rate Notes due 2031, Upgraded to Aa2 (sf); previously on Oct 7, 2022 Upgraded to A1 (sf) EUR21,000,000 Class D Senior Secured Deferrable Floating Rate Notes due 2031, Upgraded to A3 (sf); previously on Oct 7, 2022 Upgraded to Baa1 (sf) Moody's has also affirmed the ratings on the following notes: EUR216,000,000 (Current outstanding amount EUR154,611,457) Class A-1 Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf); previously on Oct 7, 2022 Affirmed Aaa (sf) EUR32,000,000 (Current outstanding amount EUR22,905,401) Class A-2 Senior Secured Fixed Rate Notes due 2031, Affirmed Aaa (sf); previously on Oct 7, 2022 Affirmed Aaa (sf) EUR25,000,000 Class E Senior Secured Deferrable Floating Rate Notes due 2031, Affirmed Ba2 (sf); previously on Oct 7, 2022 Affirmed Ba2 (sf) EUR12,000,000 Class F Senior Secured Deferrable Floating Rate Notes due 2031, Affirmed B2 (sf); previously on Oct 7, 2022 Affirmed B2 (sf) BlackRock European CLO V Designated Activity Company, issued in May 2018, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Blackrock Investment Management (UK) Limited. The transaction's reinvestment period ended in October 2022. RATINGS RATIONALE The rating upgrades on the Class B, Class C and Class D notes are primarily a result of the deleveraging of the Class A-1 and Class A-2 notes following amortisation of the underlying portfolio since the last review in June 2023. The affirmations on the ratings on the Class A-1, Class A-2, Class E and Class F notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. The Class A-1 and Class A-2 notes have paid down by approximately EUR59.1 million (23.83%) since the last review in June 2023. As a result of the deleveraging, over-collateralisation (OC) has increased for Class A/B. According to the trustee report dated January 2024 [1] the Class A/B OC ratio is reported at 141.53% compared to May 2023 [2] level of 139.99%. Moody's notes that the January 2024 principal payments are not reflected in the reported OC ratios. Moody's also observed that in the most recent payment date report EUR21.4m was used to repay Class A-1 and Class A-2 notes, further deleveraging the transaction. Consequently, Moody's anticipate an increase in the OC ratios for the other classes compared to the levels reported in January 2024. In light of reinvestment restrictions during the amortisation period, and therefore the limited ability to effect significant changes to the current collateral pool, Moody's analysed the deal assuming a higher likelihood that the collateral pool characteristics would maintain an adequate buffer relative to certain covenant requirements. In particular, Moody's assumed that the deal will benefit from a shorter amortisation profile than it had assumed at the last review in June 2023. 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: EUR313.9m Defaulted Securities: EUR14.4m Diversity Score: 54 Weighted Average Rating Factor (WARF): 2935 Weighted Average Life (WAL): 3.26 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.87% Weighted Average Coupon (WAC): 2.68% Weighted Average Recovery Rate (WARR): 42.85% The default probability derives from the credit quality of the collateral pool and Moody's expectation of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into its cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in December 2021. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank, using the methodology "Moody's Approach to Assessing Counterparty Risks in Structured Finance methodology" published in October 2023. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analysed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. CARLYLE GLOBAL 2015-3: Moody's Affirms B1 Rating on Class E Notes ----------------------------------------------------------------- Moody's Investors Service has upgraded the ratings on the following notes issued by Carlyle Global Market Strategies Euro CLO 2015-3 Designated Activity Company: EUR57,600,000 Class B Senior Secured Deferrable Floating Rate Notes due 2030, Upgraded to Aa2 (sf); previously on Sep 28, 2023 Upgraded to A1 (sf) EUR16,400,000 Class C-1 Senior Secured Deferrable Floating Rate Notes due 2030, Upgraded to Baa1 (sf); previously on Sep 28, 2023 Affirmed Baa2 (sf) EUR10,000,000 Class C-2 Senior Secured Deferrable Floating Rate Notes due 2030, Upgraded to Baa1 (sf); previously on Sep 28, 2023 Affirmed Baa2 (sf) Moody's has also affirmed the ratings on the following notes: EUR344,000,000 (Current outstanding amount EUR217,038,652) Class A1-A Senior Secured Floating Rate Notes due 2030, Affirmed Aaa (sf); previously on Sep 28, 2023 Affirmed Aaa (sf) EUR10,000,000 (Current outstanding amount EUR6,309,263) Class A1-B Senior Secured Fixed Rate Notes due 2030, Affirmed Aaa (sf); previously on Sep 28, 2023 Affirmed Aaa (sf) EUR52,200,000 Class A2-A Senior Secured Floating Rate Notes due 2030, Affirmed Aaa (sf); previously on Sep 28, 2023 Affirmed Aaa (sf) EUR15,000,000 Class A2-B Senior Secured Fixed Rate Notes due 2030, Affirmed Aaa (sf); previously on Sep 28, 2023 Affirmed Aaa (sf) EUR33,600,000 Class D Senior Secured Deferrable Floating Rate Notes due 2030, Affirmed Ba2 (sf); previously on Sep 28, 2023 Affirmed Ba2 (sf) EUR18,600,000 Class E Senior Secured Deferrable Floating Rate Notes due 2030, Affirmed B1 (sf); previously on Sep 28, 2023 Affirmed B1 (sf) Carlyle Global Market Strategies Euro CLO 2015-3 Designated Activity Company, issued in December 2015 and refinanced in January 2018, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by CELF Advisors LLP. The transaction's reinvestment period ended in January 2022. RATINGS RATIONALE The rating upgrades on the Class B, Class C-1 and Class C-2 notes are primarily a result of the deleveraging of the Class A1-A and Class A1-B notes following amortisation of the underlying portfolio since the last rating action in September 2023. The affirmation on the ratings on the Class A1-A, Class A1-B, Class A2-A, Class A2-B, Class D and Class E notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. The Class A1-A and A1-B notes have paid down by approximately EUR48.1 million (13.6%) since the last rating action in September 2023 and EUR130.6 million (36.9%) since closing. As a result of the deleveraging, over-collateralisation (OC) has increased across the capital structure. According to the trustee report dated August 2023 [1] the Class A, Class B, Class C, Class D and Class E OC ratios are reported at 140.86%, 123.17%, 116.47%, 108.92% and 105.15% compared to January 2024 [2] levels of 145.73%, 125.29%, 117.72%,109.31% and 105.16%, respectively. Moody's notes that the January 2024 principal payments are not reflected in the reported OC ratios. Key model inputs: 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: EUR448.7m Defaulted Securities: EUR7.3m Diversity Score: 47 Weighted Average Rating Factor (WARF): 3053 Weighted Average Life (WAL): 3.11 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.72% Weighted Average Coupon (WAC): 4.4% Weighted Average Recovery Rate (WARR): 44.42% The default probability derives from the credit quality of the collateral pool and Moody's expectation of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into its cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in December 2021. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank and swap providers, using the methodology "Moody's Approach to Assessing Counterparty Risks in Structured Finance methodology" published in October 2023. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analysed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. HARVEST CLO XV: Moody's Affirms B1 Rating on EUR13.5MM F-R Notes ---------------------------------------------------------------- Moody's Investors Service has upgraded the ratings on the following notes issued by Harvest CLO XV DAC: EUR41,600,000 Class B-1-R Senior Secured Floating Rate Notes due 2030, Upgraded to Aaa (sf); previously on Apr 6, 2022 Upgraded to Aa1 (sf) EUR 5,000,000 Class B-2-R Senior Secured Fixed Rate Notes due 2030, Upgraded to Aaa (sf); previously on Apr 6, 2022 Upgraded to Aa1 (sf) EUR 31,500,000 Class C-R Senior Secured Deferrable Floating Rate Notes due 2030, Upgraded to Aa3 (sf); previously on Apr 6, 2022 Upgraded to A1 (sf) Moody's has also affirmed the ratings on the following notes: EUR 233,400,000 (Current outstanding amount EUR183,677,626) Class A-1A-R Senior Secured Floating Rate Notes due 2030, Affirmed Aaa (sf); previously on Apr 6, 2022 Affirmed Aaa (sf) EUR30,000,000 (Current outstanding amount EUR23,608,949) Class A-1B-R Senior Secured Fixed Rate Notes due 2030, Affirmed Aaa (sf); previously on Apr 6, 2022 Affirmed Aaa (sf) EUR15,000,000 Class A-2-R Senior Secured Floating Rate Notes due 2030, Affirmed Aaa (sf); previously on Apr 6, 2022 Affirmed Aaa (sf) EUR24,200,000 Class D-R Senior Secured Deferrable Floating Rate Notes due 2030, Affirmed Baa2 (sf); previously on Apr 6, 2022 Affirmed Baa2 (sf) EUR23,100,000 Class E-R Senior Secured Deferrable Floating Rate Notes due 2030, Affirmed Ba2 (sf); previously on Apr 6, 2022 Affirmed Ba2 (sf) EUR13,500,000 Class F-R Senior Secured Deferrable Floating Rate Notes due 2030, Affirmed B1 (sf); previously on Apr 6, 2022 Affirmed B1 (sf) Harvest CLO XV DAC, originally issued in May 2016 and refinanced in May 2018, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Investcorp Credit Management EU Limited. The transaction's reinvestment period ended in May 2022. RATINGS RATIONALE The upgrades to the ratings on the Class B-1-R, Class B-2-R and Class C-R notes are primarily a result of the deleveraging of the Class A-1A-R and Class A-1B-R notes following amortisation of the underlying portfolio since the last rating review in September 2023. The affirmations of the ratings on the Class A-1A-R, Class A-1B-R, Class A-2-R , Class D-R, Class E-R and Class F-R notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. The Class A-1A-R and Class A-1B-R notes have paid down by approximately EUR56 million (21%) since the last rating action in April 2022. As a result of the deleveraging, senior note over-collateralisation (OC) has increased. According to the trustee report dated December 2023 [1] the Class A/B, Class C, Class D, Class E and Class F OC ratios are reported at 142.48%, 127.54%, 118.03%, 110.19% and 106.07% compared to December 2022 [2] levels of 137.45%, 125.20%, 117.18%, 110.43% and 106.83%, respectively. 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: EUR382.0m Defaulted Securities: EUR4.4m Diversity Score: 54 Weighted Average Rating Factor (WARF): 3024 Weighted Average Life (WAL): 3.40 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.72% Weighted Average Coupon (WAC): 3.98% Weighted Average Recovery Rate (WARR): 44.02% Par haircut in OC tests and interest diversion test: None The default probability derives from the credit quality of the collateral pool and Moody's expectation of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into its cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in December 2021. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank, using the methodology "Moody's Approach to Assessing Counterparty Risks in Structured Finance methodology" published in October 2023. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analysed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. OZLME III: Moody's Affirms B2 Rating on EUR12MM Class F Notes ------------------------------------------------------------- Moody's Investors Service has upgraded the ratings on the following notes issued by OZLME III Designated Activity Company: EUR35,500,000 Class B-1 Senior Secured Floating Rate Notes due 2030, Upgraded to Aaa (sf); previously on Feb 15, 2022 Upgraded to Aa1 (sf) EUR20,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2030, Upgraded to Aaa (sf); previously on Feb 15, 2022 Upgraded to Aa1 (sf) EUR26,500,000 Class C Senior Secured Deferrable Floating Rate Notes due 2030, Upgraded to Aa3 (sf); previously on Feb 15, 2022 Affirmed A2 (sf) EUR21,000,000 Class D Senior Secured Deferrable Floating Rate Notes due 2030, Upgraded to Baa1 (sf); previously on Feb 15, 2022 Affirmed Baa2 (sf) Moody's has also affirmed the ratings on the following notes: EUR225,000,000 (Current outstanding amount EUR200,801,230) Class A-1 Senior Secured Floating Rate Notes due 2030, Affirmed Aaa (sf); previously on Feb 15, 2022 Affirmed Aaa (sf) EUR10,000,000 (Current outstanding amount EUR8,924,499) Class A-2 Senior Secured Fixed Rate Notes due 2030, Affirmed Aaa (sf); previously on Feb 15, 2022 Affirmed Aaa (sf) EUR22,000,000 Class E Senior Secured Deferrable Floating Rate Notes due 2030, Affirmed Ba2 (sf); previously on Feb 15, 2022 Affirmed Ba2 (sf) EUR12,000,000 Class F Senior Secured Deferrable Floating Rate Notes due 2030, Affirmed B2 (sf); previously on Feb 15, 2022 Affirmed B2 (sf) OZLME III Designated Activity Company, issued in January 2018 is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Sculptor Europe Loan Management Limited. The transaction's reinvestment period ended in February 2022. RATINGS RATIONALE The upgrades to the ratings on the Class B-1, Class B-2, Class C and Class D notes are due to the deleveraging of the senior notes following amortisation of the underlying portfolio since last review in April 2023 and a shorter weighted average life of the portfolio which reduces the time the rated notes are exposed to the credit risk of the underlying portfolio. The affirmations on the ratings on the Class A-1, Class A-2, Class E and Class F notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. The Class A-1 and Class A-2 notes (the "Class A" Notes) have in aggregate paid down by approximately EUR20.7 million (8.8% on the initial closing balance) since last review. According to the trustee report dated December 2023 [1] the Class A/B, Class C, Class D and Class E and Class F OC ratios are reported at 138.04%, 125.50%, 117.08% 109.38% and 105.60% compared to April 2023 [2] levels of 137.42%, 125.77%, 117.84%, 110.55% and 106.95%, respectively. Key model inputs: 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: EUR362.96m Defaulted Securities: EUR10.06m Diversity Score: 50 Weighted Average Rating Factor (WARF): 2777 Weighted Average Life (WAL): 3.21 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.77% Weighted Average Coupon (WAC): 3.49% Weighted Average Recovery Rate (WARR): 43.71% Par haircut in OC tests and interest diversion test: N/A 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. Moody's notes that the January 2024 trustee report was published at the time it was completing its analysis of the December 2023 data. Key portfolio metrics such as WARF, diversity score, weighted average spread and life, and OC ratios exhibit little or no change between these dates. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in December 2021. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank and swap provider, using the methodology "Moody's Approach to Assessing Counterparty Risks in Structured Finance methodology" published in October 2023. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analysed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from other Moody's analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. ========= I T A L Y ========= [*] DBRS Puts 23 Tranches on 10 EUR ABS Transactions Under Review ----------------------------------------------------------------- DBRS Ratings GmbH and DBRS Ratings Limited (together, Morningstar DBRS) placed their credit ratings on 23 tranches in 10 European ABS transactions Under Review with Positive Implications (UR-Pos.) following the release of an updated ABS methodology. The Ratings are: Debt Rating Action ---- ------ ------ Auto ABS Spanish Loans 2022-1 FT Class A Notes AA (low) (sf) UR-Pos. Class B Notes A (sf) UR-Pos. Class C Notes BBB (sf) UR-Pos. Class D Notes BB (high) (sf) UR-Pos. Class E Notes B (sf) UR-Pos. ** (UR-Pos.) - Under Review with Positive Implications Brignole CQ 2022 S.r.l. Class A Notes AA (low) (sf) UR-Pos. Class B Notes A (sf) UR-Pos. Class C Notes A (low) (sf) UR-Pos. Class D Notes BBB (low) (sf) UR-Pos. Eridano II SPV S.r.l. Class A Asset-Backed Floating-Rate Notes AA (low) (sf) UR-Pos. Class B Asset-Backed Floating-Rate Notes A (high) (sf) UR-Pos. First Swiss Mobility 2023-1 AG Class B Notes AA (sf) UR-Pos. Class C Notes A (low) (sf) UR-Pos. Golden Bar (Securitisation) S.r.l. - Series 2022-1 Class A Notes A (sf) UR-Pos. Class B Notes A (low) (sf) UR-Pos. Marzio Finance S.r.l. - Series 10-2022 Class A Notes AA (low) (sf) UR-Pos. Marzio Finance S.r.l. - Series 9-2022 Class A Notes AA (low) (sf) UR-Pos. Pelmo S.r.l. Class A Notes AA (low) (sf) UR-Pos. Class B Notes A (sf) UR-Pos. Class C Notes A (low) (sf) UR-Pos. Progetto Quinto S.r.l. Class A Notes AA (low) (sf) UR-Pos. Quinto Sistema Sec. 2017 S.r.l. Class A Notes AA (low) (sf) UR-Pos. Class B1 Notes A (sf) UR-Pos. KEY RATING DRIVERS AND CONSIDERATIONS On January 8, 2024, Morningstar DBRS updated its methodology for "Rating European Consumer and Commercial Asset-Backed Securitizations". The ABS Methodology presents the criteria for which European consumer loan, credit card, auto loan, auto lease, and consumer/commercial lease asset-backed securities transaction credit ratings are assigned and/or monitored. The material changes made to the ABS Methodology introduced a revision of the approach to assessing residual value (RV) risk and a revision of the application of stresses to salary-assignment loans (SALs). The changed approach to determining RV risk revises the multiple-based approach to specify the contribution of the contract remaining term and improve the accuracy of how stresses are determined, particularly with reference to the applicable RV haircut. The revision of the application of stresses to SALs clarifies that stresses would take a period of time to unfold, sometimes allowing the transaction to deleverage. However, the magnitude of the stresses and the overall framework remain unaltered. Overall, the impact of the changes is positive. Morningstar DBRS has identified 23 tranches in 10 transactions that could be upgraded by one or two notches, ceteris paribus, and consequently placed them UR-Pos. The affected transactions are listed at the end of this press release and are predominantly Italian SALs transactions. Morningstar DBRS' credit ratings on the notes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Morningstar DBRS' credit ratings do not address nonpayment risk associated with contractual payment obligations contemplated in the applicable transaction documents that are not financial obligations. Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. Notes: All figures are in euros unless otherwise noted. ===================== N E T H E R L A N D S ===================== SPRINT BIDCO: EUR700MM Bank Debt Trades at 50% Discount ------------------------------------------------------- Participations in a syndicated loan under which Sprint Bidco BV is a borrower were trading in the secondary market around 49.8 cents-on-the-dollar during the week ended Friday, Feb. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The loans traded in the secondary market around 58.9 cents-on-the-dollar the previous week ended Feb. 9. The EUR700 million facility is a Term loan that is scheduled to mature on September 16, 2029. The amount is fully drawn and outstanding. Sprint Bidco B.V. is a special purpose vehicle that owns the Dutch-based bicycle company Accell. The Company's country of domicile is the Netherlands. =========== N O R W A Y =========== HURTIGRUTEN GROUP: EUR655MM Bank Debt Trades at 35% Discount ------------------------------------------------------------ Participations in a syndicated loan under which Hurtigruten Group AS is a borrower were trading in the secondary market around 64.6 cents-on-the-dollar during the week ended Friday, Feb. 16, 2024, according to Bloomberg's Evaluated Pricing service data. The loans traded in the secondary market around 62.8 cents-on-the-dollar the previous week ended Feb. 9. The EUR655 million facility is a Term loan that is scheduled to mature on February 28, 2027. The amount is fully drawn and outstanding. Hurtigruten is a Norwegian cruise ship operator that offers cruises along the Norwegian coast, expedition cruises and land-based Arctic experience tourism in Svalbard. In the first nine months of 2023, Hurtigruten reported revenue of EUR512 million (2022: EUR441 million) and company-defined adjusted EBITDA of EUR58 million (2022: EUR46 million). The Company's country of domicile is Norway. =========== R U S S I A =========== TURKMENISTAN: Fitch Affirms 'B+' LongTerm Foreign Currency IDR -------------------------------------------------------------- Fitch Ratings has affirmed Turkmenistan's Long-Term Foreign-Currency (LTFC) Issuer Default Rating (IDR) at 'B+' with a Positive Outlook. KEY RATING DRIVERS Fundamental Rating Strengths and Weaknesses: The rating is supported by Turkmenistan's extremely strong sovereign balance sheet, with the highest sovereign net foreign assets (SNFA)/GDP and lowest public debt in the 'B' peer group, underpinned by the world's fourth-largest gas reserves. These factors are balanced by weak governance, unconventional and opaque economic policy, particularly the exchange-rate framework, a challenging business environment, high commodity dependence and export market concentration. The Positive Outlook reflects its expectation of further balance-sheet strengthening on high energy prices and contained expenditure. External Finances Further Improve: SNFA rose 6pp in 2023 to 51.5% of GDP, compared with the 'B' median of minus 22.5%. Fitch estimates the current account surplus narrowed 2pp in 2023 to 5.9% of GDP, and forecasts it to shrink further to 1.9% in 2025 on lower energy prices and strong imports boosted by capex, slowing SNFA growth. Liquidity metrics have also improved, and Fitch forecasts external debt service remains below 9% of current external receipts through 2025, well below the 2021 level of 14.8%, and the current peer group median of 18.8%. While balance of payments data has steadily improved, significant gaps remain. Broadly Flat Gas Production Expected: The volume of gas exports (which account for two-thirds of total exports) fell 2.3% in 2023, and Fitch projects gas production will be broadly flat in 2024-2025 due to constrained pipeline infrastructure capacity. Eighty per cent of its gas exports in 2023 were to China, and the market share is set to remain heavily concentrated, despite recent discussion of a potential gas deal with Iraq that could be met through lower exports to Russia, and exploration of longer-term routes to Europe through Turkiye. Plans are at a more advanced stage on a fourth gas pipeline to lift capacity to China to 65bcm from around 40bcm but Fitch does not expect the project to complete before 2029. Weakness in Exchange Rate Regime: There continues to be a very large differential between the official exchange rate, fixed at 3.5 against the US dollar since 2015, and the parallel market rate, which appears broadly stable at just above 19 since mid-2022. FX policy is opaque and constrains foreign investment, surrender requirements for SOEs remain in place, and the parallel market rate is near its level in early 2020 despite the sharp improvement in external liquidity since. It is unclear whether the authorities will employ foreign-exchange (FX) reserves to tackle the gap with the parallel rate and associated economic distortions, and its forecast assumes that the official exchange rate is unchanged through 2025. Slightly Narrowing Fiscal Surplus: The state budget surplus narrowed 0.4pp in 2023 to 0.6% of GDP, as tax revenue fell 2.2%, including a 21% drop in natural resource tax receipts (gas exports are made under long-term contracts that frequently link revenue to the oil price). Expenditure rose 1.9%, and capex from the state budget picked up to 0.7% of GDP. Fitch forecasts the fiscal surplus to narrow to 0.1% of GDP in 2024 and move into a deficit of 0.5% in 2025, reflecting lower energy prices (including Fitch's forecast fall in the oil price to average USD70/barrel in 2025) and a moderate increase in capex. Growing Fiscal Buffer: Public debt fell to 4.3% of GDP at end-2023 from 10% at end-2021, and Fitch projects a further reduction to 3.5% at end-2025. The Turkmenistan Stabilisation Fund (TSF), entirely local currency-denominated, rose TMT5.5 billion in 2023, to TMT32 billion, of which TMT17.2 billion (6.1% of GDP) was the fiscal reserves held at the central bank. This was driven by TMT5.3 billion of interest and SOE profits at the "Tier 2" level not captured in the state budget. Tier 2 public finances are approximately twice the size of the state budget and lack transparency, which complicates its fiscal assessment but Fitch does not see evidence of additional public debt. Broad Policy Continuity: Fitch continues to observe a fairly high degree of policy continuity since President Serdar Berdimuhamedov was elected in March 2022. The administration has played a somewhat more active role over the last year in international relations, the climate- transition agenda, and in promoting investment opportunities, although the presence of foreign companies outside the energy sector remains very small, reflecting a highly challenging business environment. Turkmenistan is making progress in the early stages of the WTO accession process, but Fitch anticipates completion would be to a long-term timetable, even with strong political commitment. Limited Economic Diversification: Fitch estimates economic growth picked up to 2.4% in 2023, from 1.6% in 2022 (IMF data, which contrasts with the government's official figure of 6.2%), on stronger investment and real incomes. Fitch forecasts GDP growth to edge down to 2.3% in 2024 and 2.1% in 2025, which balances a further rise in public investment partly due to the second phase of Arkadag "smart" city, and development of downstream energy products and the transportation corridor, with limited progress elsewhere in diversifying the economy, alongside stable gas production volumes. Inflation Falls, But Structurally High: Inflation fell to 1.4% at end-2023, from 3.0% at end-2022 (and 21.1% at end-2021), with non-food inflation of just 0.1%, due to base effects, easing supply-chain disruptions, greater domestic food production, a fall in international prices, and ongoing control of administered prices. However, Turkmenistan has a record of relatively high inflation, averaging 11% in 2018-2022, and monetary policy is underdeveloped, with credit-targeting its main tool. Fitch projects inflation rises to average 7% in 2024-2025, as temporary disinflationary factors dissipate, which compares unfavourably with the peer group median of 4.4%. ESG - Governance: Turkmenistan has an ESG Relevance Score (RS) of '5' for both Political Stability and Rights and for the Rule of Law, Institutional and Regulatory Quality and Control of Corruption. Theses scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in its proprietary Sovereign Rating Model (SRM). Turkmenistan has a low WBGI ranking at the 11.5th percentile, reflecting the centralisation of power, and a low World Bank assessment of voice and accountability, regulatory quality, rule of law and control of corruption. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Public/External Finances: A deterioration in the public and external balance sheets driven, for example, by lower energy prices, disruption to key export contracts, a very large and sustained increase in government spending or crystallisation of contingent liabilities. - Macro: Greater risk that weak credibility of economic policy undermines the durability of sovereign balance-sheet strengthening. - Structural: Destabilising political or geopolitical developments that have an adverse impact on the economy and sovereign balance sheet. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Public/External Finances: Confidence that the strengthening of the public and external balance sheet will be sustained, for example, reflecting persistently high prices of key hydrocarbon exports or greater export capacity and/or greater transparency of fiscal policy and the public-sector balance sheet. - Macro: An improvement in the credibility and consistency of economic policy that reduces macroeconomic distortions and enhances the capacity of the economy to absorb shocks. - Structural: An improvement in governance standards, the availability and reliability of key official economic data, and/or the business environment, likely underpinned by policies to open the economy. SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO) Fitch's proprietary SRM assigns Turkmenistan a score equivalent to a rating of 'BB+' on the Long-Term Foreign-Currency (LT FC) IDR scale. Fitch's sovereign rating committee adjusted the output from the SRM to arrive at the final LT FC IDR by applying its QO, relative to SRM data and output, as follows: - Macro: -1 notch, to reflect an opaque and inconsistent economic policy framework, and use of the official exchange rate highly flattering key GDP metrics, as well as a boost to SRM indicators from high energy prices and post-pandemic recovery that may be temporary. - Public Finances: -1 notch, to reflect the distortion of key public debt ratios by the official exchange rate, the large and highly interconnected public sector, revenue and expenditure rigidities, and uncertainty over the size and remit of off-budget funds. - External Finances: -1 notch, to reflect the inconsistency between large FX reserves and FX rationing in the domestic economy and the heavy reliance on exports of a single commodity to a single customer. Fitch's SRM is the agency's proprietary multiple regression rating model that employs 18 variables based on three-year centred averages, including one year of forecasts, to produce a score equivalent to a LT FC IDR. Fitch's QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within its criteria that are not fully quantifiable and/or not fully reflected in the SRM. COUNTRY CEILING The Country Ceiling for Turkmenistan is 'B+', in line with the LTFC IDR. This reflects the absence of constraints and incentives, relative to the IDR, against capital or exchange controls being imposed that would prevent or significantly impede the private sector from converting local currency into foreign currency and transferring the proceeds to non-resident creditors to service debt payments. Fitch's Country Ceiling Model produced a starting-point uplift of zero notches above the IDR. Fitch's rating committee did not apply a qualitative adjustment to the model result. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING Data on the financial account of the balance of payments (BoP) is incomplete. Available balance of payments data is consistent with trends in external debt and FX reserves, outweighing the uncertainty created by incomplete BoP data and giving Fitch sufficient confidence in the balance of payments information. Its assessment of the balance of payments data provides us with sufficient confidence in its analysis of the credit profile to maintain the rating. ESG CONSIDERATIONS Turkmenistan has an ESG Relevance Score of '5' for Political Stability and Rights as WBGI have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and a key rating driver with a high weight. As Turkmenistan has a percentile rank below 50 for the respective governance indicator, this has a negative impact on the credit profile. Turkmenistan has an ESG Relevance Score of '5' for Rule of Law, Institutional & Regulatory Quality and Control of Corruption as WBGI have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and are a key rating driver with a high weight. As Turkmenistan has a percentile rank below 50 for the respective governance indicators, this has a negative impact on the credit profile. Turkmenistan has an ESG Relevance Score of '4' for Human Rights and Political Freedoms as the Voice and Accountability pillar of the WBGI is relevant to the rating and a rating driver. As Turkmenistan has a percentile rank below 50 for the respective governance indicator, this has a negative impact on the credit profile. Turkmenistan 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 Turkmenistan, as for all sovereigns. As Turkmenistan has track record of 20+ years without a restructuring of public debt and captured in its SRM variable, this has a positive impact on the credit profile. Turkmenistan has an ESG Relevance Score of '4' for International Relations and Trade, reflecting its heavy reliance on sales of a single commodity to a single customer, which has a negative impact on the credit profile, is relevant to the rating and a rating driver. 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. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation of the materiality and relevance of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Turkmenistan LT IDR B+ Affirmed B+ ST IDR B Affirmed B LC LT IDR B+ Affirmed B+ LC ST IDR B Affirmed B Country Ceiling B+ Affirmed B+ ========= S P A I N ========= EUTELSAT COMMUNICATIONS: Fitch Lowers IDR to BB-, Outlook Negative ------------------------------------------------------------------ Fitch Ratings has downgraded Eutelsat Communications S.A.'s (Eutelsat) Long-Term Issuer Default Rating (IDR) to 'BB-' from 'BB'. The Outlook on the IDR is Negative. Fitch has also downgraded Eutelsat's senior unsecured rating to 'B+' from 'BB-' and Eutelsat S.A.'s senior unsecured debt to 'BB-' from 'BB'. Their Recovery Ratings remain at 'RR5' and 'RR4', respectively. The downgrade reflects Eutelsat's significantly higher leverage and slower progress with monetising OneWeb infrastructure following the company's downward revision of its FY24 (financial year ending June 2024) revenue and EBITDA guidance. The Negative Outlook reflects high execution risks and continuing challenges around meeting the medium-term financial targets at OneWeb with low revenue visibility, along with some refinancing risks by October 2025. KEY RATING DRIVERS Higher Leverage: Fitch estimates Eutelsat's Fitch-defined EBITDA net leverage to increase to around 4x on significantly lower EBITDA generation in FY24, and up to 4.5x over the medium term. The company revised its FY24 EBITDA guidance to EUR650 million-EUR680 million from EUR725 million-EUR825 million previously, which is lower by about 15%. Eutelsat also temporarily suspended its FY25 guidance on lower visibility of OneWeb performance. The company expects its GEO (geostationary equatorial orbit)-reliant segments to remain unaffected. Slower Deleveraging: Delayed capex will likely contribute to leverage increase in FY25-FY26. The company estimated its FY24 capex at EUR600 million-EUR650 million, but confirmed its overall capex for OneWeb's generation two constellation roll-out on average at EUR725 million-EUR875 million per year in FY25-FY30. Capex is likely to be front-loaded, implying higher capex in FY25-FY28. This will push free cash flow (FCF) generation deep into negative territory, driving leverage up in the medium term. Eutelsat's medium-term target is to reduce net debt/EBITDA (company-definition) to 3x. High Execution Risks: Eutelsat's guidance revision highlights significant execution risks around its OneWeb strategy and low visibility on its future revenue streams. Demand for low earth orbit (LEO), and in combination with GEO B2B services, Eutelsat's targeted market niche, remains largely untested and competition may be intense. Eutelsat reported an increase in OneWeb's third-party revenue backlog to approximately USD0.9 billion over a period of five years but it corresponds to only a fraction of the revenue that would allow sustained positive EBITDA generation at this subsidiary. LEO Constellations Competition: Delays with rolling-out new infrastructure may weaken Eutelsat's longer-term competitive positions as other operators are active in the market. LEO infrastructure competition will be stiff as a few LEO constellations are being rolled out, supported by multi-billion capex commitments. On top of this, SES S.A., in partnership with Starlink has started offering integrated medium earth orbit (MEO)/LEO maritime services in direct competition with Eutelsat's LEO/GEO solutions. In addition to a fully operational Starlink, which continues launching new satellites, Amazon's Kuiper announced plans to launch customer pilots in 2H24 while Canada-based Telesat plans to start providing a global service in 2027, reportedly having secured funding and launches for its LEO project. This is likely to be followed by the EU-sponsored IRIS constellation. Two-Tier Debt Structure: Fitch estimates that Eutelsat may need to raise significant new capex financing to roll out OneWeb generation two constellation even after assuming continuing strong cash flow generation at Eutelsat's profitable segments (effectively key operating subsidiary Eutelsat S.A.). A significant amount of debt at Eutelsat S.A. leads to structural subordination for Eutelsat (holdco) creditors. At FYE23 Fitch estimates the amount of debt at Eutelsat S.A was more than 3x the group's EBITDA. Under Fitch's methodology, given the lack of any guarantees from Eutelsat S.A., debt issued by Eutelsat is rated one notch below its IDR. Strong Contribution of Incumbent Segments: Fitch expects continuing strong cash flow generation of the incumbent segments, with structural decline in the video segment mitigated by growth in the mobile and fixed connectivity divisions. Video is likely to remain under pressure, reflecting declining popularity of traditional linear TV. This is likely to be at least partially remedied by up to double-digit growth in the mobile and fixed connectivity segments, supported by higher broadband capacity from new high-throughput satellites (HTS) and robust demand for mobility services in both maritime and airplane applications. OneWeb's Competitive Edge: OneWeb has a first-mover advantage in the LEO segment as it benefits from the number one priority position in Ku-Band spectrum used for customer download connections, and has high priority position in the Ka-Band that is used for upload gateway links. The burden of coordination to avoid interference, particularly in the Ku-Band, lies with other operators. Coupled with a higher orbital position, this allows Eutelsat to operate fewer satellites and provide connection services on more reliable service-level agreement (SLA) terms fit for quality-sensitive B2B and government customers, Eutelsat's key targeted segments. However, the size of the potential B2B SLA market is limited and is exposed to substitution risk by mass-market services if B2B customers find them of acceptable quality. DERIVATION SUMMARY Eutelsat's rating reflects its capital-intensive business model with some infrastructure qualities, supported by significant barriers to entry due to substantial required investments to satellite launches and the limited availability of regulated orbital positions and spectrum. However, the industry also faces risks related to technology-driven increases in industry capacity, obsolescence and substitution. Demand for B2B LEO services remains largely untested, and these services face strong competition from pay-as-you-go LEO solutions without longer-term contractual off-take commitments. Eutelsat's strategy of developing a LEO constellation through its merger with OneWeb contrasts with SES S.A.'s (BBB/Stable) focus on building a high capacity medium-earth orbit constellation with reasonably low latency to allow for time delay-sensitive applications such as video conferencing. Eutelsat's leverage thresholds for the rating are somewhat tighter than single-country integrated European telecoms operators, such as Royal KPN N.V. (BBB/Stable), reflecting a stronger contribution of nascent LEO services with lower revenue visibility and negative FCF driven by investments into OneWeb's generation two LEO constellation. Eutelsat has lower leverage than lower-rated Intelsat Jackson Holdings S.A. (B+/Positive) and higher leverage than SES. KEY ASSUMPTIONS - Revenue growth for FY24-FY27 of up to 2% at Eutelsat pre-merger, with mid-single-digit decline in video compensated by growth in other segments - Modest EBITDA margin erosion at pre-merger Eutelsat segments in FY24-FY27 - OneWeb operations achieving positive EBITDA generation by FY26 - Receipt of C-band spectrum proceeds in FY24 - Capex at above the EUR875 million upper end of the company's longer-term guidance, assuming higher front-loaded investments in FY25-FY27 - No dividends RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Upgrade: - EBITDA net leverage sustained at below 4x - Visibility on cash flow turning positive through the cycle and that revenue and EBITDA will not be adversely affected by changes in sector trends and market structure Factors That Could, Individually or Collectively, Lead to Revision of Outlook to Stable: - EBITDA net leverage sustained at below 4.5x - Progress with addressing upcoming refinancing needs and funding OneWeb development, coupled with evidence of improving OneWeb performance Factors That Could, Individually or Collectively, Lead to Downgrade: - EBITDA net leverage above 4.5x on a sustained basis - Significant pressure on FCF driven by EBITDA erosion as a result of pricing pressure, protracted contraction of segments, increasing global overcapacity or new competitive entrants, and higher-than-expected capital intensity and shareholder remunerations - Slow progress with achieving sustained strong EBITDA generation at OneWeb - Higher refinancing risk with weaker access to financial markets and bank financing LIQUIDITY AND DEBT STRUCTURE Weakening Liquidity: Eutelsat had adequate liquidity with EUR482 million of cash on its balance sheet, supported by EUR1 billion available credit lines at FYE23, of which EUR650 million matures in September 2025 (following a recent one-year extension). This is sufficient to cover EUR978 million debt maturing in 2H23-2025; however, additional funding may be required to finance OneWeb's capex. Fitch assumes that the company would retain access to new financing and will manage its refinancing requirements prudently. ISSUER PROFILE Eutelsat is a global satellite operator operating a GEO and LEO constellation with most of its revenues generated in the non-US DTH segment. ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Eutelsat S.A. senior unsecured LT BB- Downgrade RR4 BB Eutelsat Communications S.A. LT IDR BB- Downgrade BB senior unsecured LT B+ Downgrade RR5 BB- TDA CAM 9: Fitch Affirms CCsf Rating on Class D Debt ---------------------------------------------------- Fitch Ratings has upgraded eight tranches of 15 TdA CAM RMBS in Spain, and removed seven of them from Rating Watch Positive (RWP). The rest has been affirmed. All Outlooks are Stable. Entity/Debt Rating Prior ----------- ------ ----- TDA CAM 6, FTA Class A3 ES0377993029 LT AAAsf Affirmed AAAsf Class B ES0377993037 LT BBB+sf Affirmed BBB+sf TDA CAM 7, FTA Class A2 ES0377994019 LT AAAsf Affirmed AAAsf Class A3 ES0377994027 LT AAAsf Affirmed AAAsf Class B ES0377994035 LT BBB+sf Upgrade BB+sf TDA CAM 8, FTA Class A ES0377966009 LT AAAsf Affirmed AAAsf Class B ES0377966017 LT Asf Upgrade BB+sf Class C ES0377966025 LT BBB+sf Upgrade BB+sf Class D ES0377966033 LT CCsf Affirmed CCsf TDA CAM 9, FTA Class A1 ES0377955002 LT AA+sf Upgrade A+sf Class A2 ES0377955010 LT AA+sf Upgrade A+sf Class A3 ES0377955028 LT AA+sf Upgrade A+sf Class B ES0377955036 LT AA-sf Upgrade BB+sf Class C ES0377955044 LT BB+sf Upgrade Bsf Class D ES0377955051 LT CCsf Affirmed CCsf TRANSACTION SUMMARY The transactions comprise fully amortising Spanish residential mortgages serviced by Banco de Sabadell S.A. (BBB-/Positive/F3). KEY RATING DRIVERS Updated Rating Approach: In the update of its Global Structured Finance Rating Criteria on 19 January 2024, Fitch has revised its analytical approach in the interest deferability of notes. Fitch may assign ratings up to 'AA+sf' to notes where Fitch assesses that interest deferrals will be fully repaid pursuant to the terms of the documents and by the legal final maturity. This change has an indirect impact on how Fitch assesses payment interruption risk (PIR), which Fitch now views as immaterial for bonds up to 'AA+sf' (versus prior 'A+sf') when interest payments on the bonds can be deferred without causing an event of default. The upgrades of TDA CAM 9 class A and B notes reflect the new PIR assessment, as interest deferability is permitted under transaction documentation for all rated classes and does not constitute an event of default. Other mitigants against PIR include collections being transferred to the transaction account bank (TAB) within two days and the collection account bank being also an operational continuity bank. The transaction is still not compatible with a 'AAAsf' rating, as is still exposed to PIR in case of servicer disruption, as its reserve fund (RF) has been volatile in the past and it is only at 62% of its target amount. Rating Cap Lifted: Other relevant changes to the criteria include the removal of a condition from its base case related to the 'excessiveness' of the deferral interest amount, which had capped the ratings of notes with such deferrals at 'BB+sf'. The upgrades of CAM 7 class B notes, and CAM 8 and 9 class B and C notes reflect the removal of the deferral cap under the new criteria, as their deferrals are fully recoverable by their legal maturity date, are a common structural feature in the Spanish RMBS market and the prospectus includes a defined mechanism for the repayment of deferred amounts. Neutral Asset Performance Outlook: The rating actions reflect its expectation of a neutral asset performance, consistent with low levels of unemployment and expected gradual reduction in inflation. Moreover, the transactions have a low share of loans in arrears over 90 days (less than 0.7% according to the last trustee investor reports) and are protected by the substantial seasoning of the portfolios (more than 17 years). However, volatility in asset performance is still expected due to the currently weaker affordability of the underlying borrowers. Adequate Credit Enhancement (CE) Protection: The rating actions reflect Fitch's view that the notes are sufficiently protected by CE to absorb the projected losses commensurate with their ratings. For CAM 7 and 9, Fitch expects CE ratios to continue increasing due to the prevailing sequential amortisation of the notes, although in CAM 9 the built-up trend of the RF may reduce the RF target to its floor level (subject to certain performance-based triggers). For CAM 6 and 8, Fitch expects CEs to materially increase as their respective RFs are at their floor level and their amortisation system will switch to sequential once their portfolio balances fall below 10% of their initial balances. ESG Factor: CAM 9 is still exposed to PIR due to its volatile RF in the past not providing enough liquidity to cover PIR amounts, which has resulted in a change to the rating of at least one category. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - For 'AAAsf' notes, a downgrade to Spain's Long-Term Issuer Default Rating (IDR) that could decrease the maximum achievable rating for Spanish structured finance transactions - CE ratios unable to fully compensate the credit losses and cash flow stresses associated with the current ratings, all else being equal, will also result in downgrades. An increase in the weighted average foreclosure frequency (WAFF) and a decrease in the WA recovery rate (RR) each by 15% would result in downgrades of up to three notches in CAM 6 and 7 class B notes, of no more than one notch for CAM 9 class C notes, and up to two notches for CAM 8 class C notes Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Notes rated at 'AAAsf' are rated at the highest level on Fitch's scale and cannot be upgraded - For CAM 9 class A notes, improved liquidity protection against payment interruption risk - Increases in CE ratios as the transactions deleverage to fully compensate the credit losses and cash flow stresses commensurate with higher ratings may result in upgrades. A decrease in the WAFF of 15% and an increase in the WARR of 15% would result in upgrades of up to three notches in CAM 6 and 7 class B notes, two and six notches for CAM 9 class B and C notes, respectively, and four notches in CAM 8 class B and C notes USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pools and the transactions. Fitch has not reviewed the results of any third- party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Fitch did not undertake a review of the information provided about the underlying asset pools ahead of the transactions' initial closing. The subsequent performance of the transactions over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG CONSIDERATIONS TDA CAM 9, FTA has an ESG Relevance Score of '5' for Transaction & Collateral Structure due to PIR, which has a negative impact on the credit profile, and is highly relevant to the rating, resulting in a rating cap of 'AA+sf'. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. =========== S W E D E N =========== QUIMPER AB: Fitch Hikes LongTerm IDR to 'B+', Outlook Stable ------------------------------------------------------------ Fitch Ratings has upgraded Quimper AB's (Ahlsell) Long-Term Issuer Default Rating (IDR) to 'B+' from 'B'. The Rating Outlook is Stable. Concurrently, Fitch has upgraded its senior secured rating to 'BB-' from 'B+'. Its Recovery Rating remains at 'RR3'. The IDR upgrade mainly reflects Fitch's Ahlsell's structurally improved leverage profile, with EBITDA gross leverage to be sustained below 5.0x to 2026, despite a challenging market environment partly due to limited exposure to continued steep volume declines in the new-build residential end-market in 2024. The upgrade also considers the group's resilient profitability as underscored by a record of sound operating margins and consistently positive free cash flow (FCF). The Stable Outlook reflects leverage headroom and expected resilient profitability in 2024, and assumed volume recovery in 2025-2026. KEY RATING DRIVERS Structurally Improved Leverage: Fitch forecasts that Ahlsell's EBITDA gross leverage will remain below its 5x previous positive sensitivity in 2023-2026, driven by its resilient profitability. Fitch expects EBITDA gross leverage of about 4.3x in 2024 and 4.0x in 2025, notwithstanding assumed continued short-term volume pressures in 2024. Ahlsell reduced its EBITDA gross leverage to about 4x in 2022-2023E (from above 6x in 2020) on strong EBITDA generation that was partly supported by completed cash-funded acquisitions, and also full repayment of its second-lien term loans of about SEK4 billion in 2021 (partly offset by about EUR250 million term loan add-on). Resilient Operating Profitability: Fitch expects resilient operating profitability in 2024 despite continued temporary volume pressures. Fitch anticipates mid-single-digit decline in the group's nominal Fitch-defined EBITDA in 2024 on declining activity levels across most construction end-markets, especially new-build residential. However, Fitch expects profitability to be defended by increased contributions from recently completed cash-funded acquisitions as well as the group's strong pricing power supported by its market position, efficient logistics system plus healthy customer and end-market diversification. This is despite some EBITDA margin dilution as the group grows more quickly in lower-margin regions outside their home market of Sweden. Solid Cash Flow Generation: Fitch expects about 3%-4% free cash flow (FCF) margin annually in 2024-2026, despite increasing capex and a growing interest-rate burden. Fitch assumes total cumulative capex of about SEK2.2 billion in 2024-2026, mainly due to new warehouse investments. The upcoming maturity of the group's interest-rate hedging instruments will lead to sharply higher average cost of financing. Fitch estimates about a SEK0.5 billion increase in interest paid in 2024 and about a SEK0.2 billion further increase in 2025. Nonetheless Ahlsell has a good record of converting EBITDA into cash flow due to the asset-light nature of the business and its focus on working-capital management. Its continued delivery of strong cash flow has further allowed Ahlsell to fund acquisitions with internally generated excess cash. Strong Business Profile: Fitch views Ahlsell's business profile as solid, supported by its position as the leading Nordic distributor of installation products, tools and supplies to professional customers as well as its market-leading position in Sweden. Ahlsell's products, customers and suppliers are well-diversified although there is significant geographic concentration to Sweden. Its products are available through branches, online and unmanned solution channels. Fitch views Ahlsell's efficient logistics system as a competitive advantage with short delivery lead-times in the Nordic region. End-Market Diversification: Ahlsell is exposed to cyclical end-markets as its main customers include construction, industrial and infrastructure companies. This is partly mitigated by its limited exposure (about 10% of revenue) to new residential construction, high exposure to more resilient renovation, industrial and infrastructure end-markets (about 75% of revenue), the group's increasing scale, and its broad product offering. Fitch expects performance to be supported by resilient demand in the Nordic distribution market, driven by larger infrastructure and water and sewage projects in the medium- to long-term. Active M&A Strategy: Fitch expects continued acquisition activity in 2024-2026, driven by Ahlsell's sound liquidity and expected strong FCF generation. For 2024-2026, Fitch expects the group to spend around SEK600 million annually on bolt-on acquisitions. Execution risk is mitigated by the group's successful integration record and prudent policy to acquire companies with a clear strategic fit. Nevertheless, the M&A pipeline, deal considerations and post-merger integration remain important rating drivers. Danish Acquisition Aids Diversification: In December 2022, Ahlsell completed the acquisition of Danish industrial and installation distributor Sanistal A/S, which has revenue of about SEK5.2 billion. The cash-funded transaction aids geographic diversification and has a positive impact on the group's leverage profile through additional EBITDA contribution. This is partly offset by modest EBITDA margin dilution resulting from the Danish operations' significantly lower margins versus its core Swedish operations. Fitch estimates that Denmark will account for about 10% of the group's total revenue in 2024-2026. DERIVATION SUMMARY Ahlsell has a solid business profile, with market-leading positions and strong products and customer diversification, albeit with geographical concentration to Sweden. It compares well with building materials distributor Winterfell Financing S.a.r.l. (Stark Group; B/Positive), which, however, has a broader geographical reach in the Nordics, Germany and the UK. Stark Group's broader geographic footprint is partly offset by Ahlsell's stronger end-market diversification given its higher exposure to infrastructure and industry end-markets. Both companies' ratings are constrained by leverage which has, however, improved since their respective refinancings in 2021. Ahlsell's financial profile is stronger than that of Stark Group based on lower expected leverage and stronger profitability supported by higher EBITDA margins and FCF generation. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer: - Revenue at SEK50.2 billion in 2024 and mid-single digit annual growth in 2025-2026, from about SEK50.7 billion in 2023 - Net M&A at SEK0.6 billion annually in 2024-2026 versus about SEK1.1 billion in 2023 - EBITDA margin of 9.4%-9.8% in 2023-2026 - Interest paid increasing to SEK1.4 billion in 2024 and SEK1.6 billion-SEK1.7 billion annually in 2025-2026 from about SEK0.9 billion in 2023 - Capex to increase to 1.3% of revenue in 2024 and 1.4% annually in 2025-2026, from 1.1% in 2023, mainly due to investments in warehouses in Sweden and Norway - Working-capital requirement at 0.1% of revenue in 2024 and 0.3% annually in 2025-2026, down from 0.4% in 2023 RECOVERY ANALYSIS The recovery analysis assumes that Quimper would be reorganised as a going-concern (GC) in bankruptcy rather than liquidated. Fitch has assumed a 10% administrative claim. Its GC EBITDA estimate of SEK2.9 billion reflects Fitch's view of a sustainable, post-reorganisation EBITDA level on which Fitch bases the enterprise valuation (EV). The GC EBITDA reflects intense market competition and a failure to broadly pass on raw-material cost inflation together with an inability to extract acquisition synergies. Fitch applies a distressed EBITDA multiple of 5.5x to calculate a post-reorganisation EV. The multiple reflects Quimper's strong brand value in the Nordics, coupled with its leading market position and strong stable margins. The multiple is in line with that of Nordic building material distributor Stark Group. Fitch assumes that debt comprises about a SEK20.8 billion first-lien term loan at end-September 2023 and about a SEK2.3 billion revolving credit facility (RCF; assumed fully drawn) Its waterfall analysis generates a ranked recovery for the senior secured RCF and notes in the 'RR3' category, leading to a 'BB-' rating. The waterfall-generated recovery computation is 62%. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - EBITDA gross leverage below 4.0x EBITDA on a sustained basis - Maintaining FCF margin above 3% on a sustained basis - EBITDA interest coverage above 4.0x on a sustained basis - Increased geographical diversification outside of Sweden Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - EBITDA gross leverage above 5.0x on a sustained basis - EBITDA interest coverage below 3.0x on a sustained basis - Aggressive acquisitions leading to FCF margin below 2% on a sustained basis LIQUIDITY AND DEBT STRUCTURE Solid Liquidity: At end-September 2023, Ahlsell had about SEK3.5 billion of readily available cash (excluding SEK0.3 billion Fitch's adjustment for intra-year working-capital swings) and the group had access to a fully undrawn committed RCF of about SEK2.3 billion maturing in August 2025. Fitch estimates positive FCF in 4Q23 and 2024-2026. Concentrated Debt Structure: Ahlsell's total debt of about SEK21 billion at end-September 2023 was concentrated on its first-lien term loan with a maturity in February 2026. Fitch views refinancing risk as manageable considering no significant short-term debt maturities and the group's record of through-the-cycle stable performance. ISSUER PROFILE Ahlsell is a leading Nordic distributor of installation products for the professional sector with product assortments across the three sectors heating & plumbing, electrical and tools & supplies. ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Quimper AB LT IDR B+ Upgrade B senior secured LT BB- Upgrade RR3 B+ ===================== S W I T Z E R L A N D ===================== PG INVESTMENT 59: Moody's Gives First Time Ba3 Corp. Family Rating ------------------------------------------------------------------ Moody's Investors Service has assigned Ba3 corporate family rating and Ba3 -PD probability of default rating to PG Investment Company 59 S.a r.l. (Rosen). Concurrently Moody's assigned Ba3 to the proposed USD equivalent 1,150 million senior secured 1st lien term loan due 2031 (TLB) issued by Rosen and the USD300 million senior secured 1st lien revolving credit facility due 2030 (RCF) issued by Ursa Minor US Bidco, LLC, a fully owned subsidiary of Rosen. The outlook is stable. The rated debt facilities support the acquisition of Rosen by Partners Group, agreed in November 2023 and expected to close in the coming months. Partners Group is to invest $880 million in cash equity for a majority stake of the company while the company's founder and owner, Mr. Hermann Rosen, reinvested into the transaction to retain a significant minority shareholding. RATINGS RATIONALE "Rosen benefits from an very strong business profile and an established management team who have consistently delivered solid organic growth over the last 10 years. This combined with favourable trends developing from changes in regulation for the in-line inspection market will support fast deleveraging in line with Ba3 rating category " says Stefano Cavalleri Vice President - Senior Analyst and lead analyst for Rosen. The assigned Ba3 CFR to Rosen reflects its (1) good revenue visibility, supported by recurring stringent regulatory maintenance requirements for all pipeline operators; (2) established leading market position in the pipeline testing, inspection and certification (TIC) market and a 90% ownership of electro-magnetic acoustic transducer (EMAT) fleet, the most advanced testing equipment available worldwide; (3) better-than-peer in-house technology capabilities in advanced testing equipment, and (4) a conservative financial profile and governance for a primary leverage buy-out (LBO), combined with potential rapid deleveraging and the founder/owner retaining significant ownership in the business. Concurrently, Rosen's CFR is constrained by (1) its significant necessary annual investments and developments to maintain its leading edge technology and reputation; (2) estimated negative Moody's adjusted free cash flow (FCF) in 2023 because of working capital outflow and relatively low FCF forecasted in 2024; (3) customer concentration, which is inherent to its business model of being a niche player serving oil & gas pipelines largely located in North America; (4) its technology differentiation being focused on a rather small subsegment of the pipeline inspection service market, and (5) a financial policy that leaves open to the possibility to a future re-leveraging event. The transaction opening leverage calculated with Moody's financial statements adjustments and based on expected 2023 EBITDA is 5.3x. The difference from the marketed opening leverage of 4.1x is largely due Moody's not capitalizing R&D expenses and existing financial and operating leases. Moody's expects fast deleveraging from EBITDA growth, which would lead to a Moody's adjusted debt to EBITDA below 4.0x by 2026 year end. LIQUIDITY Rosen liquidity is adequate. In the first year after closing of the LBO, liquidity is provided by the $300 million RCF that Moody's expects Rosen to use to support intra-year working capital swings. Rosen's net working capital is sizeable and will grow about 30% in 2023 because of increasing volumes and investment into the production of its diagnostic systems. Moody's expects net working capital as percentage of revenue to peak in 2023 at about 41%, but it will continue to absorb cash from operations in the medium term as the business grows. Rosen's liquidity will also be supported by its positive Moody's adjusted free cash flow and Moody's assumptions of no dividends or merger and aquisition (M&A) activity in the next 18-24 month. Moody's expects the company to start building a sizeable cash buffer on the balance sheet over time. ESG CONSIDERATIONS Moody's assessed that Governance risk was a relevant factor in assigning the rating. The company has a concentrated ownership and a financial policy without a leverage target creating a risk of potential re-leverage. On the other hand Moody's views a number of mitigating factors that support a G-3 score on governance risk which is better than most LBO. Key mitigating factors, amongst others, are the presence of independent non-executive directors on the board, the strong influence and continuity provided by Mr Rosen (significant minority shareholding and a number of board seats), the established management with a strong track record of delivering top line growth and stable margins. Rosen is exposed to social risks, such as cybersecurity, data security, talent retention and its personnel health & safety among others. Rosen's reputation as a trusted provider is critical to its success and any decline in its standing could have a significant effect. Moody's environmental risk assessment considered a tail risk from energy transition as Rosen's clients are oil & gas pipeline operators and a moderate risk from waste & pollution derived from Rosen's plant and manufacturing of its own diagnostic systems. STRUCTURAL CONSIDERATIONS The Ba3 ratings assigned to the TLB and the RCF are in line with the CFR, reflecting a senior only financing structure and the facilities ranking pari-passu. The probability of default rating (PDR) is Ba3-PD, reflecting Moody's standard 50% recovery rate for senior secured debt with weak documentation and limited covenants typical of an LBO. The only financial maintenance covenant has a springing nature and is tested only if the RCF is more than 40% drawn; if applicable, net leverage test is set at 9.1x and Moody's expect the company to be able to retain ample capacity. The security package is in line with market standard in leverage finance (share pledges, intercompany loan receivables, bank accounts). COVENANTS Moody's has reviewed the marketing draft terms for the new credit facilities. Notable terms include the following: Guarantor coverage will be at least 80% of consolidated EBITDA (determined in accordance with the agreement) and include all companies representing 5% or more of consolidated EBITDA. Only companies incorporated in the USA, Canada, Germany, Luxembourg, the Netherlands and Switzerland are required to provide guarantees and security. Security will be granted over key shares, bank accounts and receivables, and all assets security shall be granted in the USA. Unlimited pari passu debt is permitted up to a first lien net leverage ratio (FLNLR and determined in accordance with the agreement) of 4.10x, and unlimited and unsecured debt is permitted subject up to a total net leverage ratio of 5.10x or to a 2.00x fixed charge coverage ratio. Any permitted senior secured debt may be incurred as an incremental facility. Any restricted payment is permitted if FLNLR is below 3.85x, and any restricted investment is permitted if FLNLR is below 4.10x. Asset sale proceeds are only required to be applied in full (subject to exceptions) where first lien net leverage is above 3.85x. Opening leverage, as determined in accordance with the documents, is disclosed in the documents as being 4.10x Adjustments to consolidated EBITDA include the full run rate of cost savings and synergies, on an uncapped basis and with no deadline for realization. The proposed terms, and the final terms may be materially different. RATIONALE FOR THE STABLE OUTLOOK The stable rating outlook reflects Moody's expectations that the company will successfully roll-out its new EMAT-C Ultra technology to clients and continue to maintain its technological leadership. Moody's also expects Rosen to maintain a conservative financial policy, deleveraging the balance sheet below 4.5x in terms of Moody's adjusted debt to EBITDA and to retain cash generated within the business to improve its liquidity. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Although a rating upgrade is unlikely in next 18-24 months, positive pressure on the rating could develop over time. A rating upgrade would require a commitment by the company to a leverage target consistent with sustained credit metric, including (1) Moody's adjusted debt to EBITDA below 3.75x; (2) Moody's adjusted Retained Cash Flow to Net Debt above 15% and (3) Moody's adjusted EBITA margins trending towards 30%. An upgrade would also require the company to have good liquidity. A rating downgrade could occur if Moody's adjusted debt to EBITDA remain sustainably above 5.0x or the Moody's adjusted Retained Cash Flow to Net Debt is below 10%. Negative pressure on the rating could also develop if Moody's assesses that Rosen's financial policy has become aggressive or its Moody's adjusted Free Cash Flow turns negative. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Business and Consumer Services published in November 2021. COMPANY PROFILE Rosen offers mission critical diagnostic services to pipeline operators and energy suppliers which are integral to the asset owners' compliance to regulatory and safety standards. The company is headquartered in Switzerland with most of its research & development (R&D) operations based in Lingen, Germany. Rosen is serving its blue-chip client base across more than 120 countries through over 25 locations, 3,800 employees and with a portfolio of highly advanced proprietary diagnostic technologies and industry-leading software solutions. Rosen is expected to report for the full year ending December 2023, revenue of $742 million and company adjusted EBITDA of $277 million. =========================== U N I T E D K I N G D O M =========================== ASPECT FACADES: Administrators Seek Buyers for Assets ----------------------------------------------------- Business Sale reports that administrators are seeking buyers for the assets of a Durham-based roofing and cladding firm following its collapse. According to Business Sale, Aspect Facades Limited had experienced rapid growth over recent years, but fell into administration in the face of external factors including delayed projects and rising costs. Founded in 2017, the company specialised in the design, supply, installation and maintenance of cladding and roofing, operating across the North of England. The company attracted GBP150,000 in funding via the North East Loan Fund and North East Growth Capital Fund and had discussed its ambitions of reaching turnover of GBP2.5 million and breaking into the Scottish and Yorkshire cladding and roofing markets, Business Sale discloses. However, it subsequently suffered as a result of challenging trading conditions, which resulted in cash flow difficulties, impacting the company's ability to operate and ultimately leading to it falling into administration, Business Sale notes. Martyn Pullin and David Willis of FRP Advisory were appointed as joint administrators on February 2, 2024, with the company ceasing trading, resulting in 30 jobs being lost, Business Sale relates. According to Business Sale, FRP Advisory partner and joint administrator Martyn Pullin commented: "Unfortunately, mounting external pressures, most notably delayed projects and rising costs, resulted in the business being unable to meet its financial obligations. Regrettably, this meant the necessary closure of the business." BPI Asset Advisory has been engaged to lead a sale of the company's assets, with Martyn Pullin urging any interested parties to make contact with the joint administrators as soon as possible, Business Sale states. In the firm's accounts to the year ending March 31, 2022, its fixed assets were valued at GBP254,367 and current assets at over GBP2 million, with net assets amounting to GBP258,574, according to Business Sale. FIRST CHOICE: Goes Into Administration -------------------------------------- Business Sale reports that First Choice Facilities Services Limited, trading as 1st Choice Facilities Services Limited, fell into administration earlier this month, with Chris Newell and Duncan Beat of Quantuma appointed as joint administrators. According to Business Sale, in its accounts for the year to February 28, 2022, the Colnbrook-based company reported turnover of GBP13.4 million, up from GBP11.2 million a year earlier, but fell from a post-tax profit of just under GBP183,000 to a loss of almost GBP167,000. First Choice Facilities Services Limited is a provider of facilities management services. MEADOWHALL FINANCE: Fitch Affirms 'CCC' Ratings on Two Tranches --------------------------------------------------------------- Fitch Ratings has revised Meadowhall Finance PLC's Outlook to Stable from Negative while affirming its ratings. Entity/Debt Rating Prior ----------- ------ ----- Meadowhall Finance PLC Class A1 Tap Issue XS0278325476 LT A+sf Affirmed A+sf Class A2 Floating Notes Tap Issue XS0278327415 LT A+sf Affirmed A+sf Class B Tap Issue XS0278326441 LT BBB-sf Affirmed BBB-sf Class C1 Floating Rate Tap Issue XS0278329890 LT CCCsf Affirmed CCCsf Class M1 Floating Notes XS0278328496 LT CCCsf Affirmed CCCsf TRANSACTION SUMMARY The transaction is a 2006 securitisation of a loan backed by rental income from the Meadowhall Shopping Centre located near Sheffield. The securitisation is a 50:50 joint venture between The British Land Company PLC and Norges Bank Investment Management. The long-dated loan financing is tranched into four series (two undrawn), with a combination of bullets and scheduled amortisation arranged non-sequentially and mirrored by the CMBS. Fitch has assumed the class M1 and C1 notes are in issue only for their rating analysis. By assuming that the corresponding financing is undrawn in the rating cases associated with the class A and B notes, its analysis calibrates projected drawdowns of the liquidity facility according to the differing cash flow scenarios assumed. KEY RATING DRIVERS Improving Asset Performance: Meadowhall has seen operating performance gradually improve since the end of pandemic, with sales volumes now above pre-pandemic levels, occupancy close to 100% and estimated rental value (ERV) up 6.8% from March 2022's. Since its review in February 2023, passing rent has increased to GBP67.1 million from GBP66.5 million, and occupancy to 99.4% from 94.8%. Company voluntary arrangements (CVAs) only affected two tenants, down from eight, while overdue rent is also down, to GBP5 million from GBP9 million. Beneficial Principal Amortisation: The cumulative weight of amortisation has helped soften the impact on credit quality from significant declines in property values since 2018. Although amortisation has peaked, signs of a thaw in the UK retail property market as well as ongoing amortisation provide positive credit momentum as reflected in the Stable Rating Outlook. Liquidity Reliance: Passing rent is GBP67.1 million, higher than annual debt service (GBP60.7 million, falling to about GBP40 million in 2027) plus non-recoverable costs. Fitch expects passing rent to fall given ERV is GBP56.2 million and the weighted average lease term to break is only 3.4 years. At investment grade, Fitch assumes GBP23.3 million trapped cash is depleted before the loan defaults, triggering drawdowns from the liquidity facility. The facility can cover up to GBP52.5 million in junior interest, but Fitch assumes senior noteholders would seek a protracted workout to preserve fixed funding costs. Given the strong dependency on the liquidity facility provider to support the transaction, Fitch has capped the notes rating at that of the provider; Lloyds Bank Corporate Markets PLC (A+/Stable). The transaction previously drew on the liquidity facility on both the July and October 2020 interest payment dates (IPDs) during a fall in collections caused by the pandemic. These drawdowns were fully repaid by the January 2021 IPD and the liquidity facility is fully funded. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Increases in retail property yields, which reduce collateral value, could result in negative rating action. The change in model output that would apply with cap rate assumptions at 1pp higher produces the following ratings: 'A-sf' / 'B-sf' / 'CCCsf' / 'CCCsf' Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Increases in collateral value driven by falling retail property yields could result in positive rating action. The change in model output that would apply with cap rate assumptions at 1pp lower produces the following ratings: 'A+sf' / 'BBBsf' / 'CCCsf' / 'CCCsf' KEY PROPERTY ASSUMPTIONS ERV: GBP56.2 million Operating expense: GBP11.2 million Depreciation: 7.5% 'Bsf' cap rate: 8.0% 'Bsf' structural vacancy: 14.0% 'Bsf' rental value decline: 6.5% 'BBsf' cap rate: 8.1% 'BBsf' structural vacancy: 15.0% 'BBsf' rental value decline: 8.5% 'BBB-sf' cap rate: 8.2% 'BBB-sf' structural vacancy: 16.0% 'BBB-sf' rental value decline: 9.9% 'A+sf' cap rate: 8.5% 'A+sf' structural vacancy: 18.0% 'A+sf' rental value decline: 13.8% USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool[s] and the transaction[s]. Fitch has not reviewed the results of any third- party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Fitch did not undertake a review of the information provided about the underlying asset pool ahead of the transaction's initial closing. The subsequent performance of the transaction[s] over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG CONSIDERATIONS The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. MILTON THREE: Wear Inns Pub Portfolio Put Up for Sale ----------------------------------------------------- Emma Lake at The Caterer reports that twenty-five pubs that made up the Wear Inns portfolio have been brought to the market after falling into administration. Wear Inns was acquired by real estate firm Apriprose for GBP22.4 million in 2018 which said it was aiming to build "a pub group of scale", The Caterer recounts. However, administrators Interpath Advisory was appointed to the pubs' operator Milton Three Pub Group in November, The Caterer relates. The firm said at the time all 264 members of staff had been retained to assist with trading, The Caterer notes. The 25 north-east and Yorkshire-based pubs, which remained open throughout the Christmas period, have now been brought to market by Avison Young and Watling Real Estate. The pubs comprise 21 freeholds and four long leaseholds, The Caterer states. According to The Caterer, agents have said they anticipate receiving multiple offers and welcome interest for the group as a whole as well as smaller packages or individual sites. NANOSUN LIMITED: Collapses Into Administration ---------------------------------------------- Business Sale reports that NanoSUN Limited fell into administration earlier this month, with Patrick Lannagan and Conrad Pearson of Mazars appointed as joint administrators. According to Business Sale, in the company's accounts for the year ending December 31, 2022, its fixed assets were valued at over GBP1 million and current assets at GBP12.3 million. At the time, its total equity was around GBP7 million, Business Sale discloses. NanoSUN Limited is a Lancashire-based engineering firm specialising in hydrogen fuel storage and distribution services. THAMES WATER: Lack of Funding May Prompt Special Administration --------------------------------------------------------------- Ben Marlow at The Telegraph reports that the debt crisis at Thames Water risks a bill for taxpayers running into the billions of pounds, according to contingency plans being drawn up to avert disruption to supplies. It is feared that regulatory rulings will prompt the company's shareholders to pull the plug in the coming months, The Telegraph states. According to The Telegraph, sources close to the situation said that by refusing to invest they would force Thames Water into special administration, where it would immediately require a hefty slug of public money to keep contractors on the job and supplies flowing. The concerns are being stoked by the belief that the industry regulator Ofwat is poised to block a request from Thames Water to hit one in four homes with a 40% jump in bills, The Telegraph notes. The company's shareholders, which are led by the Canadian pensions giant Omers and the Universities Superannuation Scheme, have made further investment dependent on approval, The Telegraph discloses. Thames Water has asked its backers for a cash injection of GBP3.3 billion, The Telegraph relates. Ofwat could also hit the company with hundreds of millions of pounds of fines, however, The Telegraph says. Without the shareholder cash, there are concerns that Thames Water would be unable to service its giant debt pile at a time when the beleaguered utility must find billions of pounds to repair its leaky network of pipes and sewers, according to The Telegraph. If Thames Water is put into special administration, it is estimated that as much as GBP5 billion of financial support would be needed from the outset "just to keep the lights on", The Telegraph relays, citing a Whitehall source. Without immediate Treasury guarantees, critical contractors could down tools, it is feared, The Telegraph notes. According to The Telegraph, sources close to the discussions cautioned that they remain at the contingency planning stage and administration could be averted if Ofwat gives the green light to ramp up bills over the next five-year cycle, starting in 2025. A decision is expected by June, The Telegraph states. Thames Water is struggling under the weight of borrowings of nearly GBP19 billion, The Telegraph discloses. Last year, its auditor warned it could run out of cash by April, The Telegraph recounts. Thames Water previously announced that it had secured an initial GBP750 million of new equity into the company by 2025 subject to conditions, The Telegraph relays. However, in December, finance director Alastair Cochran was forced to admit that the funds were still to be confirmed, The Telegraph notes. Investors have also asked Ofwat to agree to less punitive fines for missing pollution and other performance targets, according to The Telegraph. WINCANTON DIGITAL: Bought Out of Administration in Pre-pack Deal ---------------------------------------------------------------- Business Sale reports that Wincanton Digital Print Limited, a Somerset printing firm, has been sold out of administration in a pre-pack acquisition. The Salisbury-based company fell into administration earlier this month, with Andrew Hook and Julie Palmer of Begbies Traynor appointed as joint administrators, Business Sale relates. The company had been trading for more than 40 years and was a specialist in digital, litho, large format and prepress print. It fell into administration after struggling, like many printing companies, with challenging trading conditions over recent years, Business Sale discloses. The firm had previously entered administration after being forced to cease trading as a result of government restrictions during the COVID-19 pandemic in 2020, before resuming operations after a rescue deal was agreed, Business Sale notes. However, more recently, the company has suffered a downturn in sales, while soaring interest rates impacted its debt, Business Sale states. This forced the company's directors to once again seek insolvency advice, with joint administrator Andrew Hook saying the decision to seek advice early had been crucial in securing a rescue deal, Business Sale relays. Following their appointment, the joint administrators completed a pre-packaged sale of the business and its assets to Wincanton Creative Print, a subsidiary of the Remous Group Limited, in a deal that secures 16 jobs at the company. According to Business Sale, commenting on the sale, joint administrator and Begbies Traynor partner Andrew Hook said: "Although this business has encountered a series of financial challenges since the pandemic, it is clear that it has the ability to trade profitably with new backing." "Through a prepackaged sale, we have been able to allow the business to escape the burden of historic debts while maximising the value for creditors. We're confident that the firm is now on a strong footing from which to grow." =============== X X X X X X X X =============== [*] BOND PRICING: For the Week February 12 to February 16, 2024 --------------------------------------------------------------- Coupon Maturity Currency Issuer Price ------ ------ -------- ------ ----- Codere Finance 2 Luxembour 12.75011/30/2027 EUR 1.924 Solocal Group 10.925 3/15/2025 EUR 19.863 Codere Finance 2 Luxembour 13.62511/30/2027 USD 2.274 Oscar Properties Holding A 11.317 7/5/2024 SEK 5.426 Saderea DAC 12.50011/30/2026 USD 43.437 Codere Finance 2 Luxembour 13.62511/30/2027 USD 2.274 Ilija Batljan Invest AB 10.797 SEK 3.975 IOG Plc 13.438 9/20/2024 EUR 10.000 Tinkoff Bank JSC Via TCS F 11.002 USD 37.000 Caybon Holding AB 10.550 3/3/2025 SEK 45.999 Plusplus Capital Financial 11.000 7/29/2026 EUR 9.705 Bakkegruppen AS 11.700 2/3/2025 NOK 46.353 R-Logitech Finance SA 10.250 9/26/2027 EUR 15.250 YA Holding AB 12.78912/17/2024 SEK 15.000 Bourbon Corp SA 11.652 EUR 1.289 Offentliga Hus I Norden AB 10.924 SEK 44.406 UkrLandFarming PLC 10.875 3/26/2018 USD 3.469 Privatbank CJSC Via UK SPV 10.250 1/23/2018 USD 0.645 Bilt Paper BV 10.360 USD 1.750 Avangardco Investments Pub 10.00010/29/2018 USD 0.108 Immigon Portfolioabbau AG 10.258 EUR 9.813 Virgolino de Oliveira Fina 11.750 2/9/2022 USD 0.633 Solocal Group 10.925 3/15/2025 EUR 19.212 Transcapitalbank JSC Via T 10.000 USD 0.805 Virgolino de Oliveira Fina 10.500 1/28/2018 USD 0.010 Phosphorus Holdco PLC 10.000 4/1/2019 GBP 0.373 Virgolino de Oliveira Fina 10.500 1/28/2018 USD 0.010 Privatbank CJSC Via UK SPV 10.875 2/28/2018 USD 8.717 Sidetur Finance BV 10.000 4/20/2016 USD 0.275 Privatbank CJSC Via UK SPV 11.000 2/9/2021 USD 1.000 UBS AG/London 16.500 7/22/2024 CHF 26.400 Goldman Sachs Internationa 16.288 3/17/2027 USD 27.550 Santander Consumer Finance 10.757 EUR 92.858 Virgolino de Oliveira Fina 10.875 1/13/2020 USD 36.000 Codere Finance 2 Luxembour 12.75011/30/2027 EUR 1.924 Societe Generale SA 21.00012/26/2025 USD 27.300 JP Morgan Structured Produ 15.500 11/4/2024 USD 30.480 Bulgaria Steel Finance BV 12.000 5/4/2013 EUR 0.216 Bilt Paper BV 10.360 USD 1.750 Landesbank Baden-Wuerttemb 15.000 2/23/2024 EUR 41.300 Societe Generale SA 16.000 7/3/2024 USD 30.000 Societe Generale SA 16.000 7/3/2024 USD 24.400 Zurcher Kantonalbank Finan 22.000 8/6/2024 USD 46.530 Credit Suisse AG/London 20.00011/29/2024 USD 15.480 Societe Generale SA 13.01011/14/2024 USD 27.000 Virgolino de Oliveira Fina 10.875 1/13/2020 USD 36.000 EFG International Finance 11.12012/27/2024 EUR 32.450 Tailwind Energy Chinook Lt 12.500 9/27/2019 USD 1.500 ACBA Bank OJSC 11.500 3/1/2026 AMD 0.000 Converse Bank 10.500 5/22/2024 AMD 10.033 BNP Paribas SA 10.000 7/26/2027 USD 10.350 Banco Espirito Santo SA 10.000 12/6/2021 EUR 0.063 Virgolino de Oliveira Fina 11.750 2/9/2022 USD 0.633 Ukraine Government Bond 11.000 3/24/2037 UAH 26.062 Societe Generale SA 11.000 7/14/2026 USD 22.450 Finca Uco Cjsc 13.000 5/30/2025 AMD 0.000 Societe Generale SA 18.000 5/31/2024 USD 21.000 National Mortgage Co RCO C 12.000 3/30/2026 AMD 0.000 BNP Paribas Issuance BV 20.000 9/18/2026 EUR 47.600 Leonteq Securities AG/Guer 12.490 7/10/2024 USD 46.810 EFG International Finance 10.300 8/23/2024 USD 38.780 KPNQwest NV 10.000 3/15/2012 EUR 0.890 Ukraine Government Bond 11.000 4/20/2037 UAH 25.840 Tonon Luxembourg SA 12.500 5/14/2024 USD 0.010 Lehman Brothers Treasury C 14.900 9/15/2008 EUR 0.100 NTRP Via Interpipe Ltd 10.250 8/2/2017 USD 0.906 Lehman Brothers Treasury C 18.250 10/2/2008 USD 0.100 Fast Credit Capital UCO CJ 11.500 7/13/2024 AMD 0.000 Ukraine Government Bond 10.570 5/10/2027 UAH 46.796 UkrLandFarming PLC 10.875 3/26/2018 USD 3.469 Sintekom TH OOO 13.000 1/23/2025 RUB 19.230 Societe Generale SA 16.260 8/1/2024 USD 40.200 UniCredit Bank GmbH 10.500 9/23/2024 EUR 33.390 Societe Generale SA 20.000 1/29/2026 USD 34.000 UBS AG/London 17.400 4/14/2027 SEK 45.380 BLT Finance BV 12.000 2/10/2015 USD 10.500 Citigroup Global Markets F 25.530 2/18/2025 EUR 3.350 Bank Vontobel AG 25.000 7/22/2024 USD 42.100 Leonteq Securities AG/Guer 28.000 6/5/2024 CHF 26.870 Privatbank CJSC Via UK SPV 10.875 2/28/2018 USD 8.717 Lehman Brothers Treasury C 11.750 3/1/2010 EUR 0.100 Raiffeisen Switzerland BV 14.000 3/6/2024 CHF 29.390 Ukraine Government Bond 12.500 4/27/2029 UAH 40.838 Ukraine Government Bond 12.50010/12/2029 UAH 39.513 Sidetur Finance BV 10.000 4/20/2016 USD 0.275 Bulgaria Steel Finance BV 12.000 5/4/2013 EUR 0.216 Ukraine Government Bond 11.000 4/8/2037 UAH 26.002 Petromena ASA 10.85011/19/2018 USD 0.622 Ameriabank CJSC 10.000 2/20/2025 AMD 0.000 Swissquote Bank SA 17.200 2/13/2024 CHF 38.470 PA Resources AB 13.500 3/3/2016 SEK 0.124 Ukraine Government Bond 11.000 2/16/2037 UAH 26.238 Leonteq Securities AG/Guer 22.000 8/7/2024 CHF 47.620 Armenian Economy Developme 10.500 5/4/2025 AMD 0.000 DZ Bank AG Deutsche Zentra 20.200 3/22/2024 EUR 46.710 Phosphorus Holdco PLC 10.000 4/1/2019 GBP 0.373 Evocabank CJSC 11.000 9/28/2024 AMD 0.000 ACBA Bank OJSC 11.000 12/1/2025 AMD 0.000 Societe Generale SA 15.000 8/30/2024 USD #N/A N/A UBS AG/London 16.000 3/11/2024 CHF 8.270 UBS AG/London 12.250 3/11/2024 CHF 7.980 UBS AG/London 12.250 3/11/2024 EUR 36.550 Societe Generale SA 20.00012/18/2025 USD 28.000 Societe Generale SA 18.000 7/3/2024 USD 23.839 UniCredit Bank GmbH 10.300 9/27/2024 EUR 33.140 Societe Generale SA 20.00011/28/2025 USD 13.500 Societe Generale SA 16.000 8/1/2024 USD 16.900 Societe Generale SA 18.000 8/1/2024 USD 20.954 Societe Generale SA 18.000 8/1/2024 USD 20.950 Societe Generale SA 20.000 7/21/2026 USD 16.000 Societe Generale SA 16.000 7/3/2024 USD 15.400 Societe Generale SA 15.000 7/3/2024 USD 22.500 UBS AG/London 10.000 3/23/2026 USD 23.410 Societe Generale SA 16.750 3/22/2024 USD 8.000 Bank Vontobel AG 13.000 3/18/2024 CHF 24.300 Landesbank Baden-Wuerttemb 11.000 3/22/2024 EUR 34.480 Landesbank Baden-Wuerttemb 12.500 3/22/2024 EUR 31.590 UniCredit Bank GmbH 16.550 8/18/2025 USD 36.610 UBS AG/London 18.000 2/26/2024 CHF 52.150 UBS AG/London 10.000 5/14/2024 USD 9.975 ObedinenieAgroElita OOO 13.750 5/22/2024 RUB 17.810 Bank Julius Baer & Co Ltd/ 18.400 3/20/2024 CHF 49.450 UBS AG/London 16.000 4/19/2024 CHF 29.100 Inecobank CJSC 10.000 4/28/2025 AMD 0.000 Societe Generale SA 25.26010/30/2025 USD 10.000 Societe Generale SA 26.64010/30/2025 USD 5.000 UniCredit Bank GmbH 10.700 2/3/2025 EUR 25.720 UniCredit Bank GmbH 10.700 2/17/2025 EUR 25.980 Credit Suisse AG/London 29.000 3/28/2024 USD 16.748 UBS AG/London 14.250 8/19/2024 CHF 55.250 Leonteq Securities AG 20.000 7/3/2024 CHF 27.860 Leonteq Securities AG 26.000 7/3/2024 CHF 32.320 Corner Banca SA 15.000 7/3/2024 CHF 48.520 Raiffeisen Switzerland BV 12.300 8/21/2024 CHF 32.520 Leonteq Securities AG/Guer 20.000 9/26/2024 USD 41.940 Raiffeisen Switzerland BV 20.000 6/26/2024 CHF 29.520 BNP Paribas Emissions- und 27.000 3/21/2024 EUR 50.900 Citigroup Global Markets F 14.650 7/22/2024 HKD 35.665 Leonteq Securities AG/Guer 24.000 7/10/2024 CHF 33.760 Bank Vontobel AG 10.000 8/19/2024 CHF 25.800 Corner Banca SA 23.000 8/21/2024 CHF 40.100 Swissquote Bank SA 26.120 7/10/2024 CHF 34.320 Bank Vontobel AG 20.500 11/4/2024 CHF 35.600 Bank Vontobel AG 28.000 9/9/2024 CHF 46.200 Leonteq Securities AG/Guer 14.000 7/3/2024 CHF 26.080 Societe Generale SA 15.000 9/29/2025 USD 10.750 Swissquote Bank SA 27.700 9/4/2024 CHF 46.700 UBS AG/London 13.000 9/30/2024 CHF 16.760 Corner Banca SA 13.000 4/3/2024 CHF 30.980 Societe Generale SA 15.00010/31/2024 USD 25.900 Bank Vontobel AG 11.000 2/23/2024 CHF 9.100 Societe Generale SA 22.75010/17/2024 USD 19.400 Societe Generale SA 15.000 4/3/2024 USD 14.250 Societe Generale SA 14.000 4/3/2024 USD 19.000 Leonteq Securities AG 20.000 8/28/2024 CHF 37.350 Societe Generale SA 20.000 9/18/2026 USD 11.750 Russian Railways JSC 12.940 2/28/2040 RUB 50.000 Derzhava-Garant OOO 19.000 6/12/2030 RUB 44.000 Leonteq Securities AG/Guer 22.000 8/28/2024 CHF 41.040 Swissquote Bank SA 22.760 3/6/2024 CHF 31.890 Raiffeisen Switzerland BV 10.500 7/11/2024 USD 23.270 Societe Generale SA 18.000 5/31/2024 USD 13.400 Bank Vontobel AG 19.000 4/9/2024 CHF 13.300 Leonteq Securities AG/Guer 20.000 8/7/2024 CHF 30.050 Leonteq Securities AG/Guer 30.000 8/7/2024 CHF 34.790 Leonteq Securities AG/Guer 15.300 8/7/2024 CHF 48.550 UBS AG/London 18.000 4/8/2024 CHF 41.700 Finca Uco Cjsc 12.000 2/10/2025 AMD 0.000 Russian Railways JSC 12.940 2/28/2040 RUB 50.000 Finca Uco Cjsc 12.500 6/21/2024 AMD 0.000 Bank Vontobel AG 13.500 1/8/2025 CHF 41.300 Bank Vontobel AG 12.000 9/30/2024 EUR 36.700 Zurcher Kantonalbank Finan 18.000 4/17/2024 CHF 18.160 Swissquote Bank SA 26.980 6/5/2024 CHF 31.370 Leonteq Securities AG/Guer 30.000 4/24/2024 CHF 21.460 Bank Julius Baer & Co Ltd/ 17.200 2/16/2024 CHF 40.250 Armenian Economy Developme 11.000 10/3/2025 AMD 0.000 Evocabank CJSC 11.000 9/27/2025 AMD 10.300 Ukraine Government Bond 10.36011/10/2027 UAH 43.048 Lehman Brothers Treasury C 10.000 6/17/2009 USD 0.100 Lehman Brothers Treasury C 13.432 1/8/2009 ILS 0.100 Lehman Brothers Treasury C 12.000 7/4/2011 EUR 0.100 Lehman Brothers Treasury C 11.000 7/4/2011 CHF 0.100 Lehman Brothers Treasury C 16.00012/26/2008 USD 0.100 Lehman Brothers Treasury C 14.10011/12/2008 USD 0.100 Lehman Brothers Treasury C 16.800 8/21/2009 USD 0.100 Lehman Brothers Treasury C 10.000 5/22/2009 USD 0.100 Lehman Brothers Treasury C 12.400 6/12/2009 USD 0.100 Lehman Brothers Treasury C 11.000 7/4/2011 USD 0.100 Lehman Brothers Treasury C 10.00010/23/2008 USD 0.100 Lehman Brothers Treasury C 16.000 11/9/2008 USD 0.100 Raiffeisen Switzerland BV 16.000 5/22/2024 CHF 33.750 Bank Vontobel AG 10.000 5/28/2024 CHF 22.000 Leonteq Securities AG/Guer 27.000 2/16/2024 CHF 13.910 Vontobel Financial Product 24.000 3/22/2024 EUR 50.750 Leonteq Securities AG/Guer 21.600 2/20/2024 CHF 17.310 Zurcher Kantonalbank Finan 21.000 5/17/2024 CHF 37.070 Vontobel Financial Product 25.000 3/22/2024 EUR 49.640 Vontobel Financial Product 24.500 3/22/2024 EUR 45.840 Landesbank Baden-Wuerttemb 14.000 2/23/2024 EUR 50.320 Leonteq Securities AG/Guer 20.000 2/20/2024 CHF 16.950 UniCredit Bank GmbH 16.800 3/22/2024 EUR 45.360 UniCredit Bank GmbH 15.200 3/22/2024 EUR 46.860 Zurcher Kantonalbank Finan 12.000 2/14/2024 CHF 35.140 Zurcher Kantonalbank Finan 12.500 3/8/2024 CHF 44.830 Vontobel Financial Product 16.000 3/22/2024 EUR 46.610 Vontobel Financial Product 10.000 3/22/2024 EUR 39.690 Bank Vontobel AG 15.000 3/11/2024 CHF 41.600 Raiffeisen Switzerland BV 20.000 2/20/2024 CHF 16.980 Zurcher Kantonalbank Finan 18.000 2/15/2024 CHF 29.390 UBS AG/London 16.750 2/15/2024 EUR 44.450 Leonteq Securities AG/Guer 27.000 5/30/2024 CHF 28.720 Leonteq Securities AG/Guer 28.000 3/20/2024 CHF 42.990 Leonteq Securities AG/Guer 15.000 4/30/2024 CHF 38.490 Leonteq Securities AG/Guer 14.000 4/30/2024 CHF 22.730 Leonteq Securities AG/Guer 30.000 3/20/2024 CHF 16.690 Leonteq Securities AG/Guer 19.000 6/3/2024 CHF 45.370 Zurcher Kantonalbank Finan 24.000 3/1/2024 USD 40.320 Leonteq Securities AG/Guer 23.000 3/27/2024 CHF 17.950 Leonteq Securities AG/Guer 18.000 3/27/2024 CHF 33.630 Leonteq Securities AG/Guer 25.000 3/27/2024 CHF 18.360 UniCredit Bank GmbH 17.900 3/22/2024 EUR 47.850 UniCredit Bank GmbH 19.600 3/22/2024 EUR 46.460 UniCredit Bank GmbH 19.500 6/28/2024 EUR 50.010 Bank Vontobel AG 13.000 6/26/2024 CHF 23.900 BNP Paribas Issuance BV 19.000 9/18/2026 EUR 0.820 Leonteq Securities AG/Guer 24.000 3/27/2024 CHF 31.880 Leonteq Securities AG 25.00012/18/2024 CHF 49.780 Vontobel Financial Product 11.000 6/28/2024 EUR 41.260 HSBC Trinkaus & Burkhardt 22.750 3/22/2024 EUR 48.150 Vontobel Financial Product 19.500 6/28/2024 EUR 46.420 Bank Vontobel AG 23.500 4/29/2024 CHF 19.900 Raiffeisen Schweiz Genosse 18.400 5/2/2024 CHF 19.880 Bank Vontobel AG 10.500 7/29/2024 EUR 48.500 UniCredit Bank GmbH 14.300 6/28/2024 EUR 46.870 Bank Vontobel AG 22.000 5/31/2024 CHF 22.000 Bank Vontobel AG 13.000 3/4/2024 CHF 41.300 Raiffeisen Switzerland BV 15.000 3/6/2024 CHF 41.030 UBS AG/London 18.750 5/31/2024 CHF 23.760 Leonteq Securities AG 24.000 7/17/2024 CHF 43.600 Leonteq Securities AG/Guer 25.000 3/6/2024 CHF 12.760 Basler Kantonalbank 24.000 7/5/2024 CHF 32.530 UniCredit Bank GmbH 16.400 3/22/2024 EUR 49.370 Erste Group Bank AG 14.500 8/2/2024 EUR 48.250 Bank Julius Baer & Co Ltd/ 14.900 2/28/2024 CHF 41.150 Swissquote Bank SA 21.060 4/11/2024 CHF 22.590 Zurcher Kantonalbank Finan 17.000 3/13/2024 CHF 45.880 Vontobel Financial Product 13.500 3/22/2024 EUR 39.910 Vontobel Financial Product 23.000 3/22/2024 EUR 52.080 Vontobel Financial Product 12.000 3/22/2024 EUR 42.710 Vontobel Financial Product 18.500 3/22/2024 EUR 39.950 Vontobel Financial Product 22.000 3/22/2024 EUR 35.670 Vontobel Financial Product 25.000 3/22/2024 EUR 33.470 UniCredit Bank GmbH 16.000 3/22/2024 EUR 50.680 Bank Vontobel AG 25.500 4/3/2024 CHF 19.400 Vontobel Financial Product 16.250 3/22/2024 EUR 28.460 Vontobel Financial Product 23.500 3/22/2024 EUR 34.510 Vontobel Financial Product 21.000 3/22/2024 EUR 37.120 Leonteq Securities AG/Guer 25.000 5/2/2024 CHF 21.070 UBS AG/London 18.750 4/26/2024 CHF 19.320 Leonteq Securities AG/Guer 26.000 3/13/2024 CHF 12.160 Leonteq Securities AG/Guer 30.000 3/13/2024 CHF 17.630 Raiffeisen Switzerland BV 20.000 3/13/2024 CHF 16.050 Leonteq Securities AG/Guer 23.000 7/24/2024 CHF 32.730 Raiffeisen Schweiz Genosse 20.000 7/24/2024 CHF 35.980 Leonteq Securities AG/Guer 20.000 5/2/2024 CHF 29.530 Leonteq Securities AG/Guer 27.500 5/2/2024 CHF 21.450 Leonteq Securities AG/Guer 23.000 3/13/2024 USD 36.140 Swissquote Bank SA 14.560 3/13/2024 CHF 39.990 Raiffeisen Switzerland BV 14.000 2/27/2024 CHF 42.350 Bank Vontobel AG 21.000 2/26/2024 CHF 17.000 Swissquote Bank SA 16.380 7/31/2024 CHF 25.940 Swissquote Bank SA 13.230 2/27/2024 CHF 40.560 Leonteq Securities AG/Guer 26.000 7/31/2024 CHF 33.440 Leonteq Securities AG/Guer 30.000 5/8/2024 CHF 24.390 HSBC Trinkaus & Burkhardt 23.250 3/22/2024 EUR 45.160 Basler Kantonalbank 26.000 5/8/2024 CHF 23.210 Leonteq Securities AG 25.00012/11/2024 CHF 46.570 Leonteq Securities AG 18.000 9/11/2024 CHF 42.340 Zurcher Kantonalbank Finan 17.400 4/19/2024 USD 46.660 Leonteq Securities AG/Guer 21.600 6/26/2024 CHF 29.040 Leonteq Securities AG/Guer 27.600 6/26/2024 CHF 28.470 Bank Vontobel AG 18.50012/16/2024 CHF 33.800 UBS AG/London 19.000 7/12/2024 CHF 29.740 UBS AG/London 14.250 7/12/2024 EUR 22.340 Leonteq Securities AG/Guer 22.000 4/24/2024 USD 45.360 Leonteq Securities AG 26.000 7/10/2024 CHF 31.920 UniCredit Bank GmbH 15.900 3/22/2024 EUR 48.730 UniCredit Bank GmbH 13.800 3/22/2024 EUR 48.010 Leonteq Securities AG/Guer 27.000 7/24/2024 CHF 32.180 DZ Bank AG Deutsche Zentra 10.300 4/26/2024 EUR 47.880 UBS AG/London 18.750 4/15/2024 CHF 17.940 Leonteq Securities AG/Guer 22.000 4/17/2024 CHF 33.170 Leonteq Securities AG/Guer 26.000 4/17/2024 CHF 20.220 Leonteq Securities AG/Guer 15.000 7/24/2024 CHF 25.920 Basler Kantonalbank 24.000 3/8/2024 CHF 16.330 DZ Bank AG Deutsche Zentra 12.500 3/22/2024 EUR 47.100 Bank Vontobel AG 20.000 4/15/2024 CHF 56.100 Vontobel Financial Product 12.500 3/22/2024 EUR 39.950 Vontobel Financial Product 10.000 3/22/2024 EUR 39.690 Vontobel Financial Product 11.000 3/22/2024 EUR 39.790 Vontobel Financial Product 23.500 3/22/2024 EUR 33.240 Leonteq Securities AG/Guer 24.000 5/17/2024 CHF 45.720 Finca Uco Cjsc 13.00011/16/2024 AMD 0.000 Swissquote Bank SA 26.040 7/17/2024 CHF 35.260 Zurcher Kantonalbank Finan 11.500 3/1/2024 CHF 50.040 Basler Kantonalbank 16.000 6/14/2024 CHF 34.090 Leonteq Securities AG/Guer 21.000 5/22/2024 USD 35.540 Raiffeisen Switzerland BV 20.000 5/22/2024 CHF 30.050 Leonteq Securities AG/Guer 22.000 9/18/2024 CHF 46.180 Raiffeisen Switzerland BV 16.000 6/12/2024 CHF 34.780 Vontobel Financial Product 14.000 6/28/2024 EUR 46.550 Leonteq Securities AG/Guer 26.000 5/22/2024 CHF 25.780 Swissquote Bank SA 28.320 9/18/2024 CHF 50.550 Corner Banca SA 18.500 9/23/2024 CHF 32.360 Vontobel Financial Product 12.000 3/22/2024 EUR 47.750 DZ Bank AG Deutsche Zentra 22.900 3/22/2024 EUR 45.590 DZ Bank AG Deutsche Zentra 18.900 3/22/2024 EUR 49.600 Vontobel Financial Product 16.500 6/28/2024 EUR 47.820 EFG International Finance 24.000 6/14/2024 CHF 28.290 UBS AG/London 10.50012/16/2024 CHF 50.000 BNP Paribas Emissions- und 16.000 3/21/2024 EUR 47.800 Vontobel Financial Product 17.500 3/22/2024 EUR 46.500 Vontobel Financial Product 19.000 6/28/2024 EUR 47.460 Vontobel Financial Product 21.000 3/22/2024 EUR 44.150 Raiffeisen Schweiz Genosse 20.000 6/12/2024 CHF 29.900 Societe Generale SA 27.30010/20/2025 USD 11.000 Leonteq Securities AG/Guer 15.000 4/3/2024 CHF 23.160 Leonteq Securities AG/Guer 22.000 4/3/2024 CHF 32.530 Corner Banca SA 24.000 4/3/2024 CHF 19.630 Bank Vontobel AG 20.750 6/24/2024 CHF 20.300 Vontobel Financial Product 20.500 3/22/2024 EUR 45.400 Vontobel Financial Product 18.500 3/22/2024 EUR 46.590 DZ Bank AG Deutsche Zentra 23.600 3/22/2024 EUR 42.500 Leonteq Securities AG/Guer 18.000 2/27/2024 CHF 29.980 Leonteq Securities AG/Guer 22.000 2/27/2024 CHF 17.720 Vontobel Financial Product 17.000 3/22/2024 EUR 47.930 Vontobel Financial Product 22.000 3/22/2024 EUR 44.250 UBS AG/London 21.250 4/2/2024 CHF 16.440 Swissquote Bank SA 17.200 2/27/2024 CHF 41.420 Leonteq Securities AG/Guer 19.000 5/24/2024 CHF 25.900 DZ Bank AG Deutsche Zentra 22.700 3/22/2024 EUR 46.620 Bank Vontobel AG 12.000 6/10/2024 CHF 38.500 Swissquote Bank SA 20.120 6/20/2024 CHF 27.560 Bank Vontobel AG 24.000 3/25/2024 CHF 17.600 Raiffeisen Schweiz Genosse 20.000 4/3/2024 CHF 19.090 Zurcher Kantonalbank Finan 16.500 3/27/2024 CHF 44.420 Raiffeisen Switzerland BV 20.000 3/20/2024 CHF 17.060 UBS AG/London 17.500 3/15/2024 CHF 41.100 DZ Bank AG Deutsche Zentra 14.700 3/22/2024 EUR 45.870 Vontobel Financial Product 22.000 3/22/2024 EUR 42.200 Bank Vontobel AG 12.250 6/17/2024 CHF 46.100 UBS AG/London 26.000 3/22/2024 CHF 14.380 Vontobel Financial Product 23.000 3/22/2024 EUR 44.540 Vontobel Financial Product 17.500 3/22/2024 EUR 42.530 Vontobel Financial Product 14.500 3/22/2024 EUR 44.770 UniCredit Bank GmbH 13.500 6/28/2024 EUR 48.110 Vontobel Financial Product 21.500 3/22/2024 EUR 47.390 Vontobel Financial Product 21.750 3/22/2024 EUR 25.530 Vontobel Financial Product 25.000 3/22/2024 EUR 37.910 Vontobel Financial Product 24.000 3/22/2024 EUR 39.230 Vontobel Financial Product 20.000 3/22/2024 EUR 45.770 Vontobel Financial Product 21.500 3/22/2024 EUR 46.350 Vontobel Financial Product 20.000 3/22/2024 EUR 48.350 UniCredit Bank GmbH 11.800 6/28/2024 EUR 50.950 UBS AG/London 19.000 2/15/2024 CHF 34.700 Vontobel Financial Product 12.500 3/22/2024 EUR 47.450 Vontobel Financial Product 23.000 3/22/2024 EUR 40.650 Vontobel Financial Product 21.000 3/22/2024 EUR 43.900 Vontobel Financial Product 20.000 3/22/2024 EUR 40.530 Vontobel Financial Product 24.500 3/22/2024 EUR 42.900 Vontobel Financial Product 25.000 3/22/2024 EUR 42.110 UniCredit Bank GmbH 12.600 6/28/2024 EUR 49.450 Societe Generale Effekten 13.500 2/23/2024 EUR 47.320 Leonteq Securities AG/Guer 22.000 2/23/2024 CHF 56.800 Bank Vontobel AG 23.000 2/12/2024 CHF 14.100 Bank Vontobel AG 25.000 2/12/2024 CHF 14.600 DZ Bank AG Deutsche Zentra 12.800 3/22/2024 EUR 43.570 DZ Bank AG Deutsche Zentra 21.100 6/28/2024 EUR 40.320 Bank Vontobel AG 21.750 3/18/2024 CHF 13.400 Leonteq Securities AG/Guer 16.000 6/20/2024 CHF 35.610 UBS AG/London 18.500 6/14/2024 CHF 22.720 Leonteq Securities AG/Guer 24.000 4/3/2024 CHF 17.460 Leonteq Securities AG/Guer 28.000 4/11/2024 CHF 18.690 Raiffeisen Switzerland BV 15.000 3/20/2024 CHF 29.010 Leonteq Securities AG/Guer 11.000 5/13/2024 CHF 34.790 DZ Bank AG Deutsche Zentra 11.200 6/28/2024 EUR 45.110 UBS AG/London 13.500 2/22/2024 EUR 46.800 Bank Vontobel AG 10.000 2/19/2024 CHF 39.300 Raiffeisen Switzerland BV 17.000 2/13/2024 CHF 13.790 Raiffeisen Switzerland BV 14.000 2/13/2024 CHF 36.270 Ist Saiberian Petroleum OO 14.00012/28/2024 RUB 15.960 Corner Banca SA 22.000 3/20/2024 CHF 17.250 Zurcher Kantonalbank Finan 24.250 3/28/2024 USD 43.960 Lehman Brothers Treasury C 10.00010/22/2008 USD 0.100 Lehman Brothers Treasury C 16.00010/28/2008 USD 0.100 Lehman Brothers Treasury C 11.25012/31/2008 USD 0.100 Lehman Brothers Treasury C 13.15010/30/2008 USD 0.100 Lehman Brothers Treasury C 16.200 5/14/2009 USD 0.100 Lehman Brothers Treasury C 10.600 4/22/2014 MXN 0.100 Lehman Brothers Treasury C 10.44211/22/2008 CHF 0.100 Lehman Brothers Treasury C 23.300 9/16/2008 USD 0.100 Lehman Brothers Treasury C 15.000 6/4/2009 CHF 0.100 Lehman Brothers Treasury C 17.000 6/2/2009 USD 0.100 Lehman Brothers Treasury C 13.500 6/2/2009 USD 0.100 Ukraine Government Bond 10.710 4/26/2028 UAH 41.182 Ukraine Government Bond 11.580 2/2/2028 UAH 44.139 Ukraine Government Bond 11.570 3/1/2028 UAH 43.660 Ukraine Government Bond 11.110 3/29/2028 UAH 42.350 Teksid Aluminum Luxembourg 12.375 7/15/2011 EUR 0.619 Lehman Brothers Treasury C 10.500 8/9/2010 EUR 0.100 Lehman Brothers Treasury C 10.000 3/27/2009 USD 0.100 Lehman Brothers Treasury C 11.000 6/29/2009 EUR 0.100 Lehman Brothers Treasury C 11.00012/20/2017 AUD 0.100 Lehman Brothers Treasury C 11.00012/20/2017 AUD 0.100 Lehman Brothers Treasury C 10.000 2/16/2009 CHF 0.100 Lehman Brothers Treasury C 13.00012/14/2012 USD 0.100 Lehman Brothers Treasury C 10.000 6/11/2038 JPY 0.100 Lehman Brothers Treasury C 12.000 7/13/2037 JPY 0.100 Lehman Brothers Treasury C 11.00012/19/2011 USD 0.100 Lehman Brothers Treasury C 15.000 3/30/2011 EUR 0.100 Lehman Brothers Treasury C 13.50011/28/2008 USD 0.100 Ukraine Government Bond 11.000 4/24/2037 UAH 28.685 Lehman Brothers Treasury C 16.000 10/8/2008 CHF 0.100 Lehman Brothers Treasury C 11.00012/20/2017 AUD 0.100 Lehman Brothers Treasury C 11.000 2/16/2009 CHF 0.100 Lehman Brothers Treasury C 13.000 2/16/2009 CHF 0.100 Ukraine Government Bond 11.000 4/1/2037 UAH 26.029 Lehman Brothers Treasury C 13.000 7/25/2012 EUR 0.100 Ukraine Government Bond 11.000 4/23/2037 UAH 25.949 Lehman Brothers Treasury C 14.90011/16/2010 EUR 0.100 Tonon Luxembourg SA 12.500 5/14/2024 USD 0.010 ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2024. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. * * * End of Transmission * * *