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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                          E U R O P E

          Tuesday, February 27, 2024, Vol. 25, No. 42

                           Headlines



A R M E N I A

ARMENIA: S&P Affirms 'BB-/B' Sovereign Credit Ratings


F R A N C E

LUNE HOLDINGS: Moody's Affirms B1 CFR & Alters Outlook to Negative
SIRONA BIDCO: EUR930MM Bank Debt Trades at 17% Discount


I R E L A N D

AQUEDUCT EUROPEAN 1-2017: Moody's Ups Rating on Cl. E Notes to Ba1
EIRCOM FINCO: S&P Rates New Facility B3 Term Loan 'B+'


L U X E M B O U R G

FLAMINGO II LUX: S&P Lowers ICR to 'B-', Outlook Stable


M A L T A

VISTAJET GLOBAL: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable


S E R B I A

SERBIA: Fitch Affirms 'BB+' Foreign Currency IDR, Outlook Stable


S W E D E N

RENEWCELL: Intends to File for Bankruptcy


U N I T E D   K I N G D O M

CD&R FIREFLY 4: Moody's Confirms B2 CFR & Alters Outlook to Stable
DB GROUP: Enters Administration, Halts Operations
DURHAM MORTGAGES A: S&P Assigns Prelim. B(sf) Rating on F Notes
ELAN LASER: Administrators Put Assets Up for Sale
ELSTREE FUNDING 4: S&P Assigns BB+(sf) Rating on F-Dfrd Notes

EURAMAX SOLUTIONS: Goes Into Administration
KIER GROUP: S&P Assigns 'BB-' ICR, Outlook Stable
LIBERTY GLOBAL: S&P Affirms 'BB-' LT ICR on Sunrise Spin-off
MBH CORP: Enters Administration, March 11 Meeting Set
MCCORMACK DEMOLITION: Asset Auction to be Held Today, Feb. 27

TORQUAY UNITED: Owner Set to Lose GBP5-Mil. if Club Collapses

                           - - - - -


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ARMENIA: S&P Affirms 'BB-/B' Sovereign Credit Ratings
-----------------------------------------------------
S&P Global Ratings, on Feb. 23, 2024, affirmed its 'BB-/B' long-
and short-term foreign- and local-currency sovereign credit ratings
on Armenia. The outlook on the long-term ratings is stable.

Outlook

The stable outlook reflects a balance between Armenia's favorable
economic growth prospects over the next year and comparatively
modest net general government debt, against existing balance of
payments vulnerabilities and elevated geopolitical risks.

Upside scenario

S&P could take a positive rating action should Armenia's fiscal or
external balance sheets are stronger than our current expectations
while geopolitical risk remain contained.

Downside scenario

S&P could lower the ratings if a pronounced reversal in accumulated
financial and labor inflows from Russia slows growth, causes
exchange rate depreciation, and weakens fiscal and external balance
sheets. Additionally, although it is not its base-case scenario,
repercussions from escalating geopolitical tensions with either
Azerbaijan or Russia could constrain the ratings.

Rationale

Armenia faces a complex economic and political landscape,
characterized by the recent influx of immigrants from Russia and
Nagorno-Karabakh amid geopolitical uncertainty. Recent developments
include:

-- Tensions with Azerbaijan over the delimitation of borders and
the establishment of a transit corridor, following the transfer of
control of the previously disputed Nagorno-Karabakh region to
Azerbaijan in September 2023.

-- Armenia has started to reassess its security alliances,
including with Russia, and strategies by exploring closer ties with
Western partners and reevaluating military collaborations to adapt
to evolving regional dynamics.

-- Fiscal pressures are intensifying as the authorities increase
spending to accommodate the recent influx of refugees from
Nagorno-Karabakh. Nevertheless, Armenia's prudent fiscal
management, in S&P's view, keeps net general government debt at
modest levels.

Absent the significant escalation of geopolitical tensions,
Armenia's economic prospects remain strong, reflecting higher
productive capacity on the back of capital and labor inflows into
the domestic information and communication technology (ICT)
sector.

S&P's ratings on Armenia are constrained by weak, albeit improving,
institutional settings, moderate per capita income levels, as well
as balance of payments and fiscal vulnerabilities. Armenia's
exposure to geopolitical and external security risks also
constrains the ratings.

The ratings are supported by Armenia's strong growth outlook, its
continued availability of external official funding, and a prudent
policy framework that has helped preserve economic and financial
stability in recent years despite multiple external shocks.

Institutional and economic profile: The economy will likely
decelerate in 2024 compared with the high average real growth rate
of 10.7% over 2022-2023

-- S&P projects real GDP growth will slow to 6.2% in 2024, from
8.7% in 2023, because of weaker external demand and a decrease in
migrant and financial inflows.

-- Despite the cessation of conflict in Nagorno-Karabakh, tensions
between Azerbaijan and Armenia remain.

-- Emerging tensions between Armenia and Russia could introduce an
additional layer of uncertainty, given the country's substantial
economic and energy dependence on Russia.

S&P said, "We expect Armenia's real GDP growth to ease to 6.2% this
year from a high 10.7% on average in 2022-2023; this was the third
highest growth rate among the 137 sovereigns we rate. This slowdown
is primarily due to reduced demand from major external trading
partners, base effects, and the ebbing of Russian migrant and
capital inflows. We project domestic consumption will support
growth on the back of a buoyant tourism sector, positive real wage
growth, and government fiscal stimulus. We also expect investment
to underpin growth, spurred by an increase in government capital
expenditure and construction activities aimed at accommodating the
recent influx of migrants from the Nagorno-Karabakh region and
those fleeing the conflict between Russia and Ukraine. However, we
anticipate a negative impact on growth from net exports from
weakening demand from main trading partners, especially countries
in the Commonwealth of Independent States, such as Russia, which
saw a surge in Armenian exports last year.

"Although Russian labor and capital inflows to Armenia have
decelerated from their peaks in 2022 and early 2023, the risk of a
sharp reversal has diminished, in our view. This is due to
prevailing domestic political and economic uncertainties in Russia
that are reducing the incentives for its citizens who left to
return. Moreover, a considerable number of migrants from Russia who
now reside in Armenia are employed in the ICT sector, continuing to
serve global clients. Their return to Russia could disrupt their
business activities.

"As a result, we project Armenia's economy will expand by a high
annual rate of about 5% on average through to 2027, partly
reflecting higher productive capacity on the back of capital and
labor inflows into the domestic ICT sector. This growth rate is
higher than in the decade preceding the pandemic."

That said, uncertainty persists around Armenia's growth prospects
in the next few years. Downside risks stem from the global
macroeconomic developments and, more importantly, persistent
regional geopolitical volatility.

Tensions between Armenia and Azerbaijan over the previously
disputed Nagorno-Karabakh region date back to the early 20th
century and intensified following the dissolution of the Soviet
Union. A full war lasted six weeks in September-November 2020. More
recently, in September 2023, Azerbaijan undertook a military
offensive against Nagorno-Karabakh with a ceasefire agreement
brokered just one day after the conflict's onset, effectively
transferring Nagorno-Karabakh to Azerbaijani control. A mass exodus
ensued, with over 100,000 residents seeking refuge in Armenia.

Despite the cessation of military conflict, geopolitical tensions
persist between Armenia and Azerbaijan, notably over the
delimitation of borders and the establishment of a transit
corridor. Although Azerbaijan has control over the region, neither
Azerbaijan nor Armenia have fully agreed on the bilateral borders,
and ongoing discussions have yet to yield a definitive peace deal.
Key among the unresolved issues is Azerbaijan's pursuit to create a
corridor through Armenia's Syunik Province to link with its
exclave, Nakhichevan, despite proposals for an alternative route
through Iran, known as the Aras corridor. There are additional
initiatives underway, including "Crossroads of Peace."

Further complicating the regional security settings are emerging
tensions between Armenia and Russia. Issues are partly related to
Russia's reluctance to intervene in the Nagorno-Karabakh conflict,
despite having peacekeepers in the region. This situation has led
Armenia to express dissatisfaction with the effectiveness of
Russian peace-keeping efforts in Nagorno-Karabakh, particularly
after Azerbaijan imposed a blockade on the sole land corridor
between the disputed region and Armenia in December 2022. Since
then, Armenia has been reconsidering its previous security
strategy, cancelling military drills with the Russia-led Collective
Security Treaty Organization (CSTO), and exploring closer ties with
the West, including holding joint military exercises with the U.S.
These developments could reflect Armenia's strategic shift toward
enhancing its international alliances and strengthening defense
capabilities and diplomatic ties amid changing regional dynamics.

In S&P's opinion, these developments would underpin a level of
geopolitical uncertainty for Armenia given its significant economic
and energy reliance on Russia. In 2023, approximately 40.0% of
Armenia's total exports were directed to Russia, while about 31.5%
of imports originated from Russia. Additionally, almost 70% of
remittances came from Russia, underscoring the financial
interconnections between the two countries. This dependency extends
into the energy sector as well, with Russia supplying almost 90% of
Armenia's natural gas through pipelines (which constituted 60% of
the country's total energy needs in 2022).

Flexibility and performance profile: The budget deficit will likely
widen this year before narrowing as refugee-related spending
decreases

-- S&P expects the budget deficit to increase to 4.3% of GDP in
2024, from an estimated 2.2% in 2023, primarily due to increased
spending on refugees from the Nagorno-Karabakh region.

-- Net general government debt will increase to a still-moderate
44% of GDP through 2027, from an estimate of 40% in 2023.

-- After peaking in August 2023, the Central Bank of Armenia's
(CBA's) foreign reserves have gradually declined due to government
external debt repayments.

The government has set a budget deficit target of 4.6% of GDP for
2024, an increase from the previous year's estimated level of 2.2%
of GDP. This expansion in the fiscal deficit is primarily
attributed to elevated capital expenditure and increased defense
spending. Additionally, a notable allocation within the budget is
the approximately 1.5% of GDP to cover housing, utilities, and
one-time stipends, among other expenses, for refugees from the
Nagorno-Karabakh region. The authorities plan to finance these
expenditures by repurposing about 1.5% of GDP from the funds
Armenia previously provided to the Nagorno-Karabakh government in
the form of budget loans. S&P anticipates a general government
fiscal deficit of 4.3% of GDP which is slightly below the
government's projection. This expectation is based on the
government's record of underusing funds allocated for capital
expenditure.

In late 2023, following the ceasefire in the Nagorno-Karabakh
region, the Armenian government opted to directly assume 70% of the
debts owed by the authorities, entities, and individuals in
Nagorno-Karabakh to Armenia's financial institutions, totaling AMD
315 billion (about 2.4% of GDP).

Over the medium term, we anticipate the authorities will adhere to
a fiscal consolidation strategy. As a result, S&P expects the
budget deficit to decrease, averaging 3.4% of GDP in 2024-2027.
Consequently, it projects general government debt net of liquid
assets will average a moderate 44% over the same period.
Approximately 54% of the government's debt is denominated in
foreign currency (FX), making Armenia's debt stock susceptible to
exchange rate fluctuations. However, a considerable portion of the
FX-denominated debt is from bilateral lenders and International
Financial Institutions (IFIs), granted at concessional and fixed
interest rates.

Despite recent improvements, Armenia's balance of payments position
remains vulnerable. The country has recorded consecutive current
account deficits in recent years (except for 2022), leading to a
net external liability position of approximately 90% of current
account receipts (CAR). S&P said, "With external demand moderating,
imports rising, and inward remittances falling, we anticipate the
current account deficit will expand to 3%-4% of GDP in the coming
years, up from a small deficit of 0.3% in 2023. We forecast that
the current account deficits will be financed through a combination
of government external borrowing and net foreign direct investment
inflows. We expect this financing mix will result in Armenia's
narrow net external debt as a percentage of CAR remaining near
50%."

In late 2022, the IMF approved a $171 million Stand-By Arrangement
(SBA) for Armenia. This 36-month-long program was established to
safeguard Armenia against potential balance-of-payments
difficulties. Following the recent completion of the second review,
the Armenian authorities have been granted access to a cumulative
amount of $73.3 million. Despite the availability of funds, the
government continues to treat the SBA as precautionary financing
line and no withdrawals have been made so far. S&P believes the
Armenian government is leveraging the program to maintain
confidence in its commitment to economic reforms and fiscal
discipline.

Foreign reserves stood at $3.6 billion in January 2024, marking a
3% decrease from the same period a year earlier. Notably, reserves
had reached a peak of $4.2 billion in August 2023 largely due to
the CBA's net purchases of FX to absorb excess FX inflows. These
inflows were primarily driven by increased tourist arrivals and
higher remittances. However, reserves declined following sizable
external debt repayments, including the government's buyback of
Eurobonds worth $186.8 million in the second half of 2023. For the
coming three years, S&P expects reserves to remain broadly stable.

The consumer price index (CPI) in Armenia decreased by 0.9% in
January 2024, marking a pronounced reduction from the 8.1% a year
ago. This decline can be attributed to a combination of factors
including an appreciation of the dram leading to reduced import
prices and the CBA's tight monetary policy stance. S&P said, "We
expect CPI to rise and average 3.7% in 2024, spurred by base
effects and a potential weakening of the dram. We anticipate that
average inflation will return to the CBA's target of 4% in 2025.
Given our outlook on inflation, we expect the CBA to continue
taking steps to gradually decrease its benchmark policy rate."

S&P classifies the banking sector of Armenia in group '8' under its
Banking Industry Country Risk Assessment, with an economic risk
score of '8' ('1' denotes the lowest risk and '10' the highest) and
an industry risk score of '8'. Armenia's banking sector appears
adequately capitalized and fairly profitable with flows from Russia
fueling profitability over 2022-2023. Credit growth has been strong
over the past few years, particularly in second half of 2023
reaching 21% year over year on a currency-adjusted basis and
resulting in asset price appreciation, specifically real estate.
The sector has been stable from asset quality perspective with the
exception of exposures to the previous Republic of
Nagorno-Karabakh, which have been subsequently partially assumed by
the government of Armenia.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  Ratings List

  RATINGS AFFIRMED

  ARMENIA

  Sovereign Credit Rating        BB-/Stable/B

  Transfer & Convertibility Assessment     BB




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F R A N C E
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LUNE HOLDINGS: Moody's Affirms B1 CFR & Alters Outlook to Negative
------------------------------------------------------------------
Moody's Investors Service affirmed Lune Holdings S.a.r.l.'s (Kem
One or the company) B1 corporate family rating and B1-PD
probability of default rating. Concurrently Moody's affirmed the B2
rating of the senior secured global notes. Moody's changed the
outlook to negative from stable.  

RATINGS RATIONALE

The negative outlook reflects Moody's expectation that continued
soft demand in polyvinyl chloride (PVC) and high capital
expenditure will lead to significant negative free cash flow (FCF)
in 2024, reducing the company's financial flexibility considerably.
The current rating incorporates the expectation that the company's
liquidity profile remains adequate, although the springing covenant
could prevent full access to its super senior revolving credit
facility (RCF) for a few quarters in 2024. A more severe negative
FCF than expected in 2024 or failure to return to positive FCF
after 2024 would add additional pressure to the company's ratings.

Moody's forecasts Kem One's EBITDA, as defined and adjusted by
Moody's, to be in the range of EUR80 million to EUR100 million in
2024 leading to a Moody's-adjusted gross leverage of 5x to 6x. The
forecast incorporates the assumption that Kem One realizes the
majority  of EBITDA in the second half of 2024, anticipating a
modest recovery in volumes. Should a recovery in the second half of
2024 not occur, Kem One's leverage would substantially exceed the
previously stated forecast. In 2025, the company should benefit
from the technology upgrade at its Fos plant and a better
environment in the construction market, though the pace and degree
of a recovery remains uncertain.

The company has been experiencing a continuous decline in earnings
quarter over quarter, with a significant drop in company-adjusted
EBITDA from EUR63 million in Q1-23 to EUR8 million in Q3-23.
Moody's does not expect materially better results in the first half
of 2024 compared to the last half of 2023. The company's exposure
to commoditised products results in a volatile operating
performance.

The company's main end market is building and construction, which
is currently under severe pressure because of high building costs
and high interest rates. Also, cheaper PVC imports from outside
Europe make European companies less competitive. The disruptions in
the Red Sea should provide some relief as fewer Asian imports find
their way into Europe or countries close to Europe. The European
Commission launched an antidumping investigation into PVC exports
from Egypt and the United States, but the outcome of the
investigation remains uncertain.

Kem One's raw material exposure is mainly to electricity, ethylene
and natural gas prices. The company's access to relatively cheaper
electricity in France is a competitive advantage if European energy
prices remain at higher levels. The expected change to the French
electricity market after 2025 will likely lead to higher
electricity costs for Kem One. However, the company is in the
process of improving the cost position of its production plant in
Fos by upgrading its production technology. The net effect of the
technology upgrade and the change in the French electricity market
after 2025 is challenging to assess at this stage.

The rating affirmation reflects Kem One's good market position in
Europe and its adequate liquidity profile. Kem One has no
meaningful debt maturities prior to 2028, and the interest rates on
its debt are favorable relative to current financial market
conditions.

NEGATIVE OUTLOOK

The negative outlook highlights the risk that the company's credit
metrics might not remain at levels deemed commensurate with its B1
rating over the next 12 to 18 months. The current rating
incorporates the expectation of a volume recovery in the second
half of 2024 and that its liquidity position remains adequate.

LIQUIDITY

Kem One's liquidity is adequate.  As of the end of September 2023,
the company had around EUR180 million of cash on balance and access
to an undrawn EUR100 million super senior revolving credit facility
(RCF). In addition, the company has also access to non-recourse
factoring agreements, which are unused according to the company.
Moody's expects Kem One's cash balance to decrease materially over
the next 12-18 months as the company invests heavily into its Fos
conversion project while its earnings are expected to be
depressed.

Under Moody's base case, Moody's expects little or no drawings
under the RCF. The springing covenant is likely to restrict
temporarily the company to borrow more than 40% of the RCF
capacity.

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

Moody's could consider upgrading Kem One's rating if the company
demonstrates a track record and/or public commitment to a financial
policy in line with expectations for a Ba3 rating, including
through maintaining adjusted debt to EBITDA below 2.5x on a
sustained basis; builds a track record of lower earnings'
volatility; FCF to debt is in the high single digit percent on a
sustainable basis; maintains a good liquidity profile.

Moody's could consider downgrading Kem One's rating if the
company's Moody's-adjusted gross leverage were in excess of 4.5x on
a sustained basis; liquidity profile deteriorates materially or
prolonged inability to access the full RCF; FCF generation turns
negative on a sustained basis; there is evidence or expectations of
a more aggressive financial policy exhibiting shareholder returns
or debt-financed acquisitions were adopted.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Chemicals
published in October 2023.

COMPANY PROFILE

Lune Holdings S.a.r.l. (Kem One), based in Lyon, France, is a base
chemicals producer, primarily focused on PVC and caustic soda. The
company has leading market positions in Southern Europe, while it
has limited sales exposure to Northern European countries. The
company has eight manufacturing sites in France and Spain. Since
2021, Kem One is majority owned by funds managed by affiliates of
Apollo.


SIRONA BIDCO: EUR930MM Bank Debt Trades at 17% Discount
-------------------------------------------------------
Participations in a syndicated loan under which Sirona BidCo SASU
is a borrower were trading in the secondary market around 83.5
cents-on-the-dollar during the week ended Friday, Feb. 23, 2024,
according to Bloomberg's Evaluated Pricing service data.

The EUR930 million facility is a Term loan that is scheduled to
mature on December 16, 2028.  The amount is fully drawn and
outstanding.

Sirona HoldCo (Seqens), headquartered in Ecully, France, is a
producer of small molecules active pharmaceutical ingredients
(APIs), solvents for pharmaceutical customers as well as chemicals
for the cosmetics and electronic industries. Seqens in 2022
generated revenues of around EUR1.356 billion and EBITDA of around
EUR182 million. The company is majority-owned (76.9%) by funds of
private equity sponsor SK Capital.

Sirona BidCo, the borrower entity, has EUR930 million senior
secured term loan B (TLB) and EUR130 million senior secured
revolving credit facility (RCF), both due 2028.




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AQUEDUCT EUROPEAN 1-2017: Moody's Ups Rating on Cl. E Notes to Ba1
------------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the following
notes issued by Aqueduct European CLO 1-2017 Designated Activity
Company:

EUR27,000,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2030, Upgraded to Aa1 (sf); previously on Jun 15, 2023
Upgraded to Aa3 (sf)

EUR20,000,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2030, Upgraded to A2 (sf); previously on Jun 15, 2023
Affirmed Baa1 (sf)

EUR24,000,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2030, Upgraded to Ba1 (sf); previously on Jun 15, 2023
Affirmed Ba2 (sf)

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

EUR234,000,000 Class A-R (Current outstanding amount
EUR111,998,442) Senior Secured Floating Rate Notes due 2030,
Affirmed Aaa (sf); previously on Jun 15, 2023 Affirmed Aaa (sf)

EUR54,000,000 Class B-R Senior Secured Floating Rate Notes due
2030, Affirmed Aaa (sf); previously on Jun 15, 2023 Affirmed Aaa
(sf)

EUR11,300,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2030, Affirmed B1 (sf); previously on Jun 15, 2023
Affirmed B1 (sf)

Aqueduct European CLO 1-2017 Designated Activity Company, issued in
June 2017 and partially refinanced in March 2021, is a
collateralised loan obligation (CLO) backed by a portfolio of
mostly high-yield senior secured European loans. The portfolio is
managed by HPS Investment Partners CLO (UK) LLP. The transaction's
reinvestment period ended in June 2021.

RATINGS RATIONALE

The rating upgrades on the Class C-R, Class D-R and Class E notes
are primarily a result of the deleveraging of the Class A-R notes
following amortisation of the underlying portfolio since the last
rating action in June 2023.

The affirmations on the ratings on the Class A-R, Class B-R 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-R notes have paid down by approximately EUR67.7million
(28.94%) since the last rating action in June 2023 and
EUR122.0million (52.14%) since closing. As a result of the
deleveraging, the over-collateralisation (OC) has increased for
Class A-R, Class B-R, Class C-R, Class D-R and Class E Notes.
According to the trustee report dated January 2024 [1] the Class
A/B, Class C, Class D and Class E OC ratios are reported at
151.39%, 133.59%, 122.88% and 112.10% compared to April 2023 [2]
levels of 142.89%, 129.30%, 120.78% and 111.94%, respectively.
Moody's notes that the January 2024 principal payments are not
reflected in the reported OC ratios.

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: EUR268.98m

Defaulted Securities: EUR2.52m

Diversity Score: 44

Weighted Average Rating Factor (WARF): 2953

Weighted Average Life (WAL): 3.2 years

Weighted Average Spread (WAS) (before accounting for Euribor
floors): 3.56%

Weighted Average Coupon (WAC): 4.09%

Weighted Average Recovery Rate (WARR): 44.97%

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.

-- Long-dated assets: The presence of assets that mature beyond
the CLO's legal maturity date exposes the deal to liquidation risk
on those assets. Moody's assumes that, at transaction maturity, the
liquidation value of such an asset will depend on the nature of the
asset as well as the extent to which the asset's maturity lags that
of the liabilities. Liquidation values 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.

EIRCOM FINCO: S&P Rates New Facility B3 Term Loan 'B+'
------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue rating and '3' recovery
rating to the proposed new facility B3 term loan due May 2029
issued by eircom Finco S.a.r.l.

The new tranche is part of the proposed partial refinancing of its
senior secured term loans, in which the existing loans in facility
B or facility B2 would roll over into a facility B3. The '3'
recovery rating indicates S&P's expectation of meaningful recovery
expectations (50%-70%; rounded estimate: 55%) in the event of
default. The rating on the proposed facility is in line with that
on the existing senior secured term loans and senior secured
notes.

S&P said, "We currently see limited headroom under the 'B+' rating.
This reflects limited cash flow from continued pressure in the
wholesale broadband market, rising interest expense, higher capital
expenditure (capex) to roll out its fiber network, and material
restructuring costs. Given this, along with continued dividend
payments, we now anticipate S&P Global Ratings-adjusted leverage to
reach slightly above 5.5x and neutral reported FOCF after leases in
fiscal 2023. We understand management has enacted a strategy to
support earnings stabilization and adopts a more moderate dividend
policy. We anticipate credit metrics will improve moderately, with
adjusted leverage reaching 5.0x and material positive reported FOCF
after leases in fiscal years 2024 and 2025, levels commensurate
with the 'B+' rating."

The issue and recovery ratings on the proposed notes are based on
preliminary information and subject to their successful issuance
and S&P's satisfactory review of the final documentation.

Issue Ratings--Recovery Analysis

Key analytical factors

-- The issue rating on the proposed and existing senior secured
term loans from Eircom Finco and on the senior secured notes issued
by Eircom Finance DAC is 'B+', in line with the issuer credit
rating on eircom Holdings (Ireland) Ltd. (Eircom).

-- The '3' recovery rating indicates S&P's expectation of a
meaningful recovery (50%-70%; rounded estimate: 55%) in the event
of default. S&P bases its analysis on the valuation and debt
structure of Eircom excluding Fixed Network Ireland Ltd. (FibreCo),
because FibreCo does not provide a guarantee to the remaining group
nor the group to FibreCo.

-- The recovery rating is supported by S&P's valuation of the
company as a going concern and limited amount of prior ranking debt
in the debt structure. It remains constrained by the large amount
of equal-ranking secured debt with no mandatory annual
amortizations.

-- S&P values Eircom as a going concern in view of its established
broadband customer base (retail and wholesale), solid mobile market
position, and established network asset base in Ireland.

-- In S&P's hypothetical default scenario, it assumes a continual
deterioration of operating performance. S&P envisages, among other
factors, pressure on revenue and operating margins due to
competition, weaker economic conditions, and no substantial
additional revenue from investments in fiber broadband and 5G.

Simulated default assumptions:

-- Year of default: 2028

-- Minimum capex (share of past three years' average sales): 6%

-- Cyclicality adjustment factor: None (standard sector assumption
for telecom and cable)

-- Operational adjustment: 15% (further adjusted to reflect
minimum capex needs)

-- Emergence EBITDA after recovery adjustments: about EUR200
million

-- Implied enterprise value multiple: 6.0x

-- Jurisdiction: Ireland

Simplified waterfall

-- Gross enterprise value at default: About EUR1.2 billion

-- Administrative costs: 5%

-- Net value available to debtors: EUR1.1 billion

-- Secured debt claims of About EUR2.0 billion

    --Recovery expectations: 50%-70% (rounded estimate: 55%)

All debt amounts include six months of prepetition interest. The
revolving credit facility is assumed 85% drawn on the path to
default. The recovery expectation is rounded down to the nearest
5%.




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

FLAMINGO II LUX: S&P Lowers ICR to 'B-', Outlook Stable
-------------------------------------------------------
S&P Global Ratings lowered its issuer credit ratings on Flamingo II
Lux GP S.a.r.l. and Emeria SASU to 'B-' from 'B', its issue-level
rating on the group's senior secured debt to 'B-' from 'B', and its
issue-level rating on its junior subordinated debt to 'CCC' from
'CCC+'. S&P's '3' recovery rating on the senior secured debt
(including the proposed add-on) is unchanged, indicating its
expectation for meaningful (50%-70%; rounded estimate: 50%)
recovery in a simulated default scenario. S&P's '6' recovery rating
on the junior subordinated debt is also unchanged, indicating its
expectation for negligible recovery (0%-10%; rounded estimate: 0%)
in a simulated default scenario.

The stable outlook reflects S&P's view that Emeria will continue to
expand, both organically and through acquisitions, while gradually
improving its S&P Global Ratings-adjusted EBITDA margin toward 20%
and maintaining adequate liquidity supported by its moderately
positive FOCF.

While France-based real estate services company Emeria SASU's
(previously Foncia Management; the sole operating company of
Flamingo II Lux GP S.a.r.l.) residential real estate services
(RRES) segment demonstrated resilience in 2023, its overall
performance was negatively affected by the sharp increase in
interest rates, which led to an abrupt drop in its flow business
(real estate brokerage, joint property management transfer fees,
and lettings).

The downgrade reflects Emeria's weaker-than-expected operating
performance and our expectation for continued muted activity in the
French real estate market through 2024. Although the company's
joint property and lease management businesses continue to exhibit
resilience, its real estate brokerage (REB) segment remained
challenged by macroeconomic conditions in 2023, with an up to 25%
year-over-year decline in its revenue. This primarily stemmed from
the subdued level of second-hand residential property sales during
the year following a sharp increase in interest rates that
negatively affected mortgage volumes. S&P said, "In our view,
mortgage volumes will gradually recover and property prices will
normalize as interest rates stabilize because buyers and sellers
will gain greater clarity. However, we believe this will take some
time because we do not expect European central banks will start
cutting interest rates before mid-year 2024. Therefore, we expect
the dynamics of the French real estate market will remain broadly
in line with its performance in recent quarters in 2024 before
gradually recovering in 2025. Under our base-case forecast, we
assume revenue of EUR1.6 billion-EUR1.7 billion in 2024, which is
up 15% year on year, supported by the continued organic expansion
of its RRES business and a full year of benefits from the
acquisitions it completed in 2023, including Chestertons."

S&P said, "Exceptional costs continued to weigh on Emeria's
profitability in 2023, though we expect they will likely steadily
decline in 2024-2025 due to management's more disciplined merger
and acquisition (M&A) spending and continued progress with its
efficiency initiatives. The company has been reinvesting in its
business, including by implementing Millenium--its new enterprise
resource planning (ERP) system--and establishing a new
organizational model it terms the "Agency of the Future". We note
that Emeria has scaled back its M&A spending since the beginning of
2023. However, management remains open to new bolt-on acquisitions
if attractive opportunities arise because M&A remains a core part
of its growth strategy. Therefore, we assume EUR125 million of M&A
spending per year under our base case, which is down from about
EUR240 million in 2023 (including the acquisition of Chestertons in
the U.K.). In our opinion, the exceptional costs associated with
the company's M&A and transformation projects will likely decline
in 2024-2025, relative to our expectation for about EUR150 million
of non-recurring expenses in 2023, in line with reduced M&A
spending and a gradual realization of cost savings from Millenium
and its Agency of the Future project. As such, we now estimate
Emeria will improve its S&P Global Ratings-adjusted EBITDA margin
toward 20% in 2024-2025, which compares with our expectation of
16%-17% in 2023.

"Emeria's credit metrics have deteriorated relative to our previous
expectations and we now forecast increased leverage, lower FOCF,
and tighter FFO cash interest coverage over the next 12-24 months.
Following its weakened operating performance in 2023, we expect the
company's S&P Global Ratings-adjusted leverage will rise to about
14x, which is above our previous forecasts of the 11x-12x range.
Although we believe the French real estate market will stabilize in
2024 and gradually improve in 2025, Emeria's lower-than-expected
S&P Global Ratings-adjusted EBITDA during the year--arising from
the continued softness in its REB business and high exceptional
costs--will delay its deleveraging timeline. Our base case assumes
S&P Global Ratings-adjusted leverage of more than 10x in 2024 and
about 9x in 2025, which compares with our previous expectation for
the 8x-9x range. In addition, we acknowledge Emeria's stable RRES
business has been acting as cushion, enabling it to mitigate the
tougher market conditions in its REB segment. Nevertheless, the
company faces a heightened cash interest burden amid the high
interest rate environment. Therefore, we anticipate Emeria will
generate lower FOCF in 2024-2025, leading to FOCF to debt in the
2%-3% range, which compares with our previous estimate of 3%-4%.
The company's FFO cash interest coverage will also likely remain
materially below 2.0x in 2024-2025, which compared with our
previous forecast for the 1.8x-2.0x range.

"The stable outlook reflects our view that Emeria will continue to
expand, both organically and through acquisitions, while gradually
improving its S&P Global Ratings-adjusted EBITDA margin toward 20%
and maintaining adequate liquidity supported by its moderately
positive FOCF."

S&P could lower its ratings on Emeria in the next 12 months if:

-- Its operating performance weakens significantly, including a
deterioration in the performance of its RRES business and no signs
of recovery in the REB business, leading us to question the
sustainability of its capital structure;

-- The company generates persistently negative FOCF that weakens
its liquidity position; or

-- S&P assesses the group's financial policy as increasingly
aggressive, including ongoing debt-funded M&A or shareholder
returns that lead it to sustain very high debt to EBITDA with no
clear path for significant deleveraging.

S&P said, "We could take a positive rating action on Emeria if it
materially improves its operating performance, including a
faster-than-forecast recovery in its REB business. We would need
the company to develop a clear track record of material
deleveraging, coupled with a sustained improvement in its FOCF to
debt toward 5% and its FFO cash interest coverage toward 2.0x,
which would likely involve a more significant reduction in its
exceptional costs than in previous years and a financial policy
that supports its maintenance of these credit metrics.

"Management and governance factors are a moderately negative
consideration in our credit rating analysis of Emeria. Our high
leveraged assessment of the company's financial risk profile
reflects that its corporate decision-making prioritizes the
interests of its controlling owners, which is in line with our view
of the majority of rated entities owned by private-equity sponsors.
Our assessment also reflects private-equity owners' generally
finite holding periods and focus on maximizing shareholder
returns."




=========
M A L T A
=========

VISTAJET GLOBAL: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
----------------------------------------------------------------
Fitch Ratings has affirmed Vista Global Holding Limited's (Vista)
Long-Term Issuer Default Rating (IDR) at 'B+'. The Outlook is
Stable. Fitch has affirmed the senior unsecured ratings on the
bonds issued by VistaJet Malta Finance P.L.C. and Vista Management
Holding Inc. at 'BB-' with a Recovery Rating of 'RR3'. The notes
are guaranteed by Vista and key operating companies (opcos) Vista
(US) Group Holdings Limited and VistaJet Group Holding Limited.

The 'B+' rating reflects Vista's niche operations, concentrated
ownership with key man risk, some volatility embedded in on-demand
services and high EBITDAR leverage, which Fitch expects to decrease
marginally below its negative sensitivity of 5.5x in 2024 and
further in 2025-2027. Rating strengths are its global market
position, albeit in a highly fragmented market, diversified
operations by geography and customer and a sizeable and growing
share of contracted revenue.

KEY RATING DRIVERS

Negative Free Cash Flow in 2023: Vista estimates the company to
have underperformed its forecast for 2023 in free cash flow (FCF)
generation. This was driven mainly by extensive aircraft
refurbishments exceeding its assumptions for last year, as well as
working-capital outflow predominantly due to the paydown of trade
payables. Fitch expects maintenance capex to normalise at around
USD160 million per year, following completion of the refurbishment
cycle. Its forecasts do not assume further growth in fleet size,
while the working capital trend should normalise as well.

Sound Profitability: Fitch estimates Vista's EBITDAR in 2023 at
below its previous expectations, at about USD750 million, which
would still be an increase from USD663 million in 2022. Fitch
anticipates further growth in 2024, driven by higher aircraft
utilisation following the completion of its refurbishment
programme, an increase in contracted 'Program' live hours, as well
as a structural shift of revenue towards more profitable 'Program'
sales. Fitch forecasts EBITDAR margin to remain around 30%, but
EBITDA margin could benefit from a reduction in lease payments as
existing lease liabilities amortise.

High Leverage: Fitch estimates Vista's EBITDAR leverage to have
decreased to 6.1x in 2023 from 6.6x in 2022. Fitch expects that
improved profitability, as well as the normalisation of maintenance
capex and working-capital movements, will support positive FCF from
2024 and, consequently, gradual deleveraging. Fitch forecasts
EBITDAR leverage to decrease to 5.4x in 2024 and remain within its
rating sensitivities of 4.5x-5.5x in 2024-2027.

Increasing Revenue and Profit Visibility: Fitch estimates the share
of contracted 'Program' revenues to have increased to about 46% in
2023 from 39% in 2022 and forecast it to reach 54% in 2027, driven
by the company's partial shift away from ad-hoc business. Fitch
anticipates broadly stable operating cash flows of USD400
million-USD500 million per year, mainly supported by revenue from
use-it-or-lose-it three-year (on average) 'Program' contracts.

Solid Competitive Performance: In 2023 Vista outperformed the
market in flight hours growth, with an increase of 17%, compared
with a 4% decrease for the global market, although this was partly
due to some of its off-fleet (marketplace) business coming
on-fleet, in line with the company's core strategy. Market flight
activity in key regions weakened, but Vista's global coverage
provided some resilience relative to its peers and the company
recorded double-digit growth in on-fleet flight hours in all
regions.

Highly Fragmented Sector: The global private aviation market is
highly fragmented and Vista's market share is about 5%, despite
being one of the leading operators. Operations in the fragmented
market provide growth opportunities for stronger providers, but
they are also subject to strong competitive pressures. Nonetheless,
Vista, as an asset-light operator, has historically expanded more
quickly than providers with fractional or full ownership aviation
services.

Full Spectrum of Asset-light Services: Vista's business profile
benefits from its full spectrum of asset-light services as an
alternative to aircraft ownership. It offers different size and
range of aircraft types as well as different membership benefits to
meet customer needs. Its global footprint with a strong network and
client-base diversity is also one of Vista's competitive
advantages. It has a record of successfully integrating acquired
businesses, which have increased its scale and product offering
globally. However, its forecasts do not assume further M&A and
further debt-funded M&A could put pressure on the rating.

DERIVATION SUMMARY

Fitch views Vista as operating a niche product, which
differentiates the company from airlines in its business model and
cost structure. More broadly, Vista's large share of revenue under
fixed contracts, with a customer base that is more resilient than
the general public to economic cycles and a floating fleet
(aircraft not anchored to certain airports) are key differentiating
factors from commercial airlines. All this supports the company's
higher debt capacity than some second-tier commercial airlines at a
given rating.

Within the private aviation sector, compared with providers with
fractional or full asset ownership, Vista offers both lower all-in
cost and higher flexibility as well as no asset residual risk to
customers.

KEY ASSUMPTIONS

- Average number of aircraft in service to increase to 260 at
end-2024 and 266 at end-2025, following aircraft refurbishment,
then to remain flat until 2027, versus 252 at end-2023

- Average fleet yield down year-on-year in 2023 due to lower oil
prices, but higher than 2019 levels, reflecting broader cost
inflation. From 2024, Fitch assumes only marginal increases in
average fleet yield

- Aircraft utilisation to grow gradually during 2023-2027

- Share of 'Program' live hours in total live hours to increase
gradually in 2023-2027

- All cost factors to grow in line with their nature (fixed versus
variable) to 2027

- No dividend pay-out during 2023-2027

RECOVERY ANALYSIS

Key Recovery Rating Assumptions

The recovery analysis assumes that Vista would be recognised as a
going concern in bankruptcy rather than liquidated. Fitch has
assumed a 10% administrative claim.

Going-concern EBITDA of USD535 million assumes a significant
downturn in the private-aviation industry where Vista's utilisation
by aircraft remains subdued, and is roughly 20% lower than its 2024
EBITDA forecast (which is about 15% lower than management's
forecast).

Fitch applies a distressed enterprise value/EBITDA multiple of 5x
to calculate a going-concern enterprise value, reflecting Vista's
leading niche market position, high customer retention rate of
around 90% and a large proportion of contracted revenue, albeit
partially limited by its moderate scale.

The waterfall analysis output percentage for senior unsecured debt
on current metrics and assumptions is 56%, which is commensurate
with 'RR3'.

RATING SENSITIVITIES

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

- EBITDAR leverage lower than 4.5x

- EBITDAR fixed-charge coverage above 2.5x

- Increase in the share of contracted revenue (Vista's 'Program'
revenue) and maintenance of high member retention rates

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

- EBITDAR leverage above 5.5x

- EBITDAR fixed-charge coverage below 2.0x

- Reduction in contracted revenue to below 30% of total revenue,
resulting in weaker cash flow visibility

- The notes' rating could be downgraded if its expectation for
recovery rates falls below 51%

LIQUIDITY AND DEBT STRUCTURE

Manageable Liquidity: Vista had short-term financial debt
obligations of around 2x its cash balance at end-3Q23, excluding
lease payments. In 2024, Fitch expects the company to generate more
than USD200 million of FCF (after lease payments), which together
with the cash on balance sheet, would be sufficient for scheduled
debt repayment. However, Fitch expects Vista to continue to
refinance any balloon maturities in the near term. In addition to
debt maturities, Vista also has about USD150 million of deferred
consideration payable in 2024 for past acquisitions.

Working Capital to Normalise: Vista had sizeable working-capital
outflow in 9M23 of about USD150 million, resulting from tightening
payment terms with suppliers. Fitch forecasts working-capital cash
flows to be broadly neutral in 2024 although there could be upside
from prepayments on incremental 'Program' flight hours.

A decrease in renewal rate by its 'Program' customers or a net
decline in 'Program' hours sold could result in net cash outflows
related to the unwinding of these contract liabilities through the
year. Fitch forecasts a growth of about 16,000 'Program' live hours
in 2024.

ISSUER PROFILE

Vista is a global provider of private aviation services through its
market-leading asset-light and technology-driven platform. As of
end-2023, it operated a fleet of 266 aircraft.

ESG CONSIDERATIONS

Vista has an ESG Relevance Score of '4' for Governance Structure
due to concentrated ownership, which has a negative impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors.

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

   senior
   unsecured         LT     BB-  Affirmed    RR3      BB-

Vista Management
Holding Inc.

   senior
   unsecured         LT     BB-  Affirmed    RR3      BB-

Vista Global
Holding Limited      LT IDR B+   Affirmed             B+



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

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

KEY RATING DRIVERS

Rating Fundamentals: Serbia's rating is supported by its credible
macroeconomic policy framework, prudent fiscal policy, and somewhat
stronger human development and GDP per capita compared with 'BB'
medians. Set against these factors are Serbia's greater share of
foreign-currency-denominated public debt than peer group medians,
as well as a high degree of banking sector euroisation. Serbia has
weathered the impacts of the regional energy crisis and associated
macroeconomic fallout well, but geopolitical risks linger.

Resilient Economic Growth: Preliminary data put economic growth in
2023 at 2.5%, driven by net trade and investment. Real exports rose
owing to new FDI-financed capacity coming on stream and a
diversification of export markets. Investment growth stemmed from
infrastructure projects and real estate development. A recovery in
the agricultural sector (9% growth) due to favourable weather after
two years of drought also supported growth. Domestic demand should
be the main source of growth in 2024 and 2025. Private consumption
will benefit from continued growth in real wages and further
increases in employment.

High Investment: Investment will remain strong as work ahead of
Expo2027 (hosted by Belgrade) continues. FDI-financed projects will
lift exports, as will the recovery in EU demand, although this will
be offset by the import intensity of construction and
infrastructure projects. Investment/GDP is forecast at around 26.5%
in 2024 and 2025, up from 18.2% between 2010 and 2019. Fitch
forecasts growth of 3.3% in 2024 and 4.2% in 2025. Nearshoring, the
free-trade agreement signed with China in September, the EU's new
Western Balkans growth plan and the infrastructure associated with
the Expo may all support stronger medium-term growth (official
estimated at 4%).

Strengthening External Position: FX reserves climbed by 20% in 2023
to EUR27.9 billion (equivalent to 5.7 months of current external
payments; 'BB' median 4.5). This was driven by a sharp
energy-related narrowing of the current account deficit (CAD) and
record net FDI inflows. Fitch estimates a current account deficit
of 2.1% of GDP, down 7% in 2022, owing to much lower imports
(largely energy-related) and higher exports, led by manufactured
goods. Net services also performed strongly, rising by 39% owing to
higher tourism, ICT and transport credits. However, this was
outweighed by higher net primary income outflows reflecting foreign
investors' profit repatriation.

Further reserve accumulation is anticipated over the forecast
period. Net FDI inflows will remain strong and sufficient to cover
the CAD. The CAD is forecast to widen, reflecting imports required
for capex and the Expo, which will more than offset the boost to
exports from improved growth in key trading partners. Continued
expansion of the services balance is expected driven by the ICT
sector, although outflows of profit transfers will also rise in
line with the ongoing FDI inflows. Net external debt will remain on
its long-term downward trajectory and at 14.6% of GDP in 2025 will
be broadly in line with the forecast peer median.

Falling Government Debt: The general government deficit is
officially estimated at 2.2% of GDP, comfortably inside the revised
target of 2.8% (revised from an original 3.3%). The improvement
against the original budget reflects much lower transfers to energy
SOEs, which were less than half the budgeted level, and
accommodates ad hoc salary and pension increases a few months
before the elections.

The deficit is forecast to narrow to 1.4% in 2024 due to the
strengthening economy and gains from improved revenue collection.
Fitch expects Expo financing to push the deficit to 1.7% in 2025.
Fitch's deficit projections are consistent with debt remaining on a
downward trend and Fitch forecasts debt/GDP at 48.4% at end-2025
(protected 'BB' median 50.2%).

Elections Strengthen Ruling Party: The ruling SNS party of
president Vucic won the parliamentary elections in December,
increasing its share of the vote from the April 2022 polls and
securing a small overall majority. The election conduct was
criticised by external observers and there were also reports of
irregularities on the day. Fitch does not expect the elections to
lead to any change in policy. New parliamentary elections are not
due until December 2027, but there has been a recent tendency for
snap elections. With attention focussed on the Expo, the current
parliament may have greater longevity. Relations with Kosovo remain
a stumbling block for EU accession.

Solid Banks: The 76% foreign-owned banking sector remains healthy.
At end-September capital adequacy was 22.2%, up from 20.2% at
end-2022 and non-performing loans stood around their long-term low
at 3.1% and fully covered by provisions. The central bank
introduced an untargeted cap on mortgage loan rates in September
owing to some pressure on the housing loan portfolio as interest
rates picked up (mortgages are indexed to EURIBOR). Banks have been
able to absorb this in their profits and still record a return on
equity of 18.2%.

Dinarisation has resumed its upward trend after disruption by the
outbreak of the war in Ukraine. Corporate and household deposit
dinarisation was 44.6% at end-2023, up from 39% at end-2022. Local
currency savings grew rapidly last year but from a much lower base.
Credit contracted by 10.2% in real terms owing to higher interest
rates and the repayment of pandemic-related facilities that led to
a fall in corporate loans.

ESG - Governance: Serbia has an ESG Relevance Score of '5' for both
Political Stability and Rights and for the Rule of Law,
Institutional and Regulatory Quality and Control of Corruption, as
is the case for all sovereigns. These scores reflect the high
weight that the World Bank Governance Indicators (WBGI) have in its
proprietary Sovereign Rating Model (SRM). Serbia has a medium WBGI
ranking, at the 47th percentile, reflecting a moderate level of
rights for participation in the political process, moderate
institutional capacity, established rule of law and a moderate
level of corruption.

RATING SENSITIVITIES

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

- Public Finances: A sustained increase in general government
debt/GDP over the medium term, for example, due to a structural
fiscal loosening and/or weaker GDP growth prospects, or a sharp
rise in the debt and interest burdens due to currency
depreciation.

- Macro: Persistent weakening of economic growth, for example, from
markedly lower FDI or a prolonged increase in geopolitical risk.

- External Finances: An increase in external vulnerabilities, for
example, from intensified financing pressures or a worsening of
imbalances, leading to a sharp fall in FX reserves, or higher
external debt and interest costs.

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

- Public Finances: A marked reduction in general government
debt/GDP reflecting, for example, a persistent narrowing of the
general government deficit.

- Macro: An improvement in medium-term growth prospects that
increases the pace of convergence in GDP per capita with higher
rated peers, for example, due to structural reforms that enhance
economic governance.

- Structural: An improvement in governance potentially
incorporating steps that would smooth EU accession prospects.

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

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

Fitch's sovereign rating committee did not adjust the output from
the SRM to arrive at the final LT FC IDR.

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 Serbia is 'BBB-', 1 notch above the LT FC
IDR. This reflects the absence of material 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 0
notches above the IDR. Fitch's rating committee applied a +1 notch
qualitative adjustment to this, under the Long-Term Institutional
Characteristics pillar, reflecting the importance of FDI to
Serbia's open economy and the EU accession process.

ESG CONSIDERATIONS

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

Serbia 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 Serbia has a percentile rank below 50 for the
respective Governance Indicators, this has a negative impact on the
credit profile.

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

Serbia 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 Serbia, as for all sovereigns. As Serbia has
a fairly recent restructuring of public debt in 2004, this has a
negative impact on the credit profile.

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
   -----------                   ------           -----
Serbia            LT IDR          BB+  Affirmed   BB+
                  ST IDR          B    Affirmed   B
                  LC LT IDR       BB+  Affirmed   BB+
                  LC ST IDR       B    Affirmed   B
                  Country Ceiling BBB- Affirmed   BBB-

   senior
   unsecured      LT              BB+  Affirmed   BB+




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

RENEWCELL: Intends to File for Bankruptcy
-----------------------------------------
Rhonda Richford at WWD reports that textile recycler Renewcell
revealed on Feb. 25 that it intends to file for bankruptcy, after
failing to secure additional funding and consecutive quarters of
slow sales.

The Swedish company, a pioneer in textile-to-textile recycling and
maker of the Circulose fiber, was due to report its full fiscal
year earnings Friday, but postponed that release until Thursday,
WWD relates.

According to WWD, in a release issued on Feb. 25, the company said
it had been negotiating with its two largest shareholders, Swedish
fast-fashion behemoth H&M and materials company Girindus, as well
as existing lenders BNP Paribas, European Investment Bank,
Finnerva, Nordea and AB Svensk Exportkredit.  

Renewcell categorized those negotiations as "intense."

"Unfortunately, it is now clear that these discussions have not
resulted in a solution which would provide Renewcell with the
necessary liquidity and capital to ensure its operations going
forward," WWD quotes the company as saying in a statement.

It also failed to attract new investors, WWD notes.

"I regret to inform that we have been forced to take this decision
to file for bankruptcy. As we have a strong belief in the company's
long-term potential, we have together with our advisers spent very
substantial time and efforts into trying to secure the necessary
liquidity, capital and ownership structure for the company to
secure its future," Renewcell chairman of the board of directors
Michael Berg, as cited by WWD, said.

Renewcell produces Circulose, a textile pulp made from chemically
recycled cotton waste. It's one of the first commercial scale
textile-to-textile recycling plants in the world.

The company had previously called on brands to buy its product,
highlighting that brands are hanging their "eco-friendly"
credentials on recycling technology, but were failing to come
through with orders, WWD notes.

According to WWD, Renewcell interim CEO Magnus Hakansson said the
company was producing below its financial breakeven point, and
while it had the capacity to increase production at its factory, it
needed brands to be on the receiving end.

The fashion industry and particularly fast-fashion brands have
touted textile-to-textile "circularity" as a solution to its
landfill and waste problem, and a step in achieving sustainability
targets, particularly in Europe with new textile collection and
waste laws rolling out over the next few years.

Renewcell's tech has positioned it as a pioneer, but it has
suffered from low demand even as it has upped production and set up
storage facilities in China to help shorten the delivery window,
WWD states.




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

CD&R FIREFLY 4: Moody's Confirms B2 CFR & Alters Outlook to Stable
------------------------------------------------------------------
Moody's Investors Service has confirmed CD&R Firefly 4 Limited's
(Motor Fuel Group, MFG or the company) B2 long term corporate
family rating and B2-PD probability of default rating.
Simultaneously, Moody's has also confirmed the B2 ratings of CD&R
Firefly Bidco Limited (MFG)'s backed senior secured bank credit
facilities. In addition, Moody's has assigned B2 ratings to the new
GBP800 million equivalent backed senior secured term loan B EUR and
GBP tranches and the new GBP310 million backed senior secured
revolving credit facility (RCF). The outlook on both entities has
changed to stable from ratings under review.

The rating action concludes the review for downgrade which was
initiated on February 2, 2024. The review was initiated following
the announcement on January 30, 2024 [1] that MFG and Market Holdco
3 Limited (Morrisons, B2 negative) had entered into an agreement
for MFG to acquire 337 petrol forecourts and over 400 associated
sites for electric vehicle charging development from Morrisons for
GBP2.5 billion. The acquisition will be funded with GBP1.6 billion
of debt, and has underwritten commitments from banks. The rest of
the acquisition and associated fees will be funded through equity.

The rating action reflects that:

-- MFG's credit metrics are expected to stay within the range for
the B2 ratings, with Moody's adjusted gross debt/ EBITDA of around
5.5x and interest cover (Moody's adjusted EBITDA-capex/ interest
expense) of around 1.3x over the next 12-18 months.

-- The acquisition is credit positive for MFG's business profile.
MFG will be the largest fuel forecourt operator in the UK by both
number of sites and volume. The good market fundamentals driving
convenience retail will support earnings growth, MFG will be the
second largest independent convenience retailer in the UK by number
of sites. The acquisitions also adds to MFG's leading EV strategy
in the UK, as the company adapts its business model to accommodate
the electrification of vehicles.

-- Despite the potential synergies identified by the company and
the good track record it has of integrating acquisitions, there is
still execution risk with such a sizable transaction.

RATINGS RATIONALE

MFG's B2 CFR is supported by: (1) strong market position as the
largest fuel forecourt operator in the UK by number of sites and
volumes, with a high-quality forecourt network; (2) stable cash
flow; (3) growing convenience retail and food-to-go markets
providing significant rollout opportunities across its estate; (4)
experienced, founder-led management team with strong track record
and; (5) well-invested, predominantly freehold sites maintained by
Morrisons acquisition, with around 86% of properties owned. The B2
rating is also underpinned by MFG's company-owned
franchise-operated (COFO) business model, with limited fixed costs
and relatively predictable income streams. All of the Morrisons'
sites will be operated under the COFO model.

Constraints to the rating include the company's: (1) exposure to
the inherently low, and the risk of fluctuating profit margin
associated with fuel retail operations, though strongly rising over
the past few years; (2) limited contributions, albeit growing, from
non-fuel offering reflected by the COFO model; (3) historical
aggressive financial policy and potential to re-leverage the
capital structure and; (4) the execution risk around the
acquisition. The rating also factors the company's high investment
requirements to manage the transition to alternative fuel and the
negative impact on cash flow.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's expectations that the company's
credit metrics will stay within the range required for the rating
category over the next 12-18 months. The outlook also reflects the
rating agency's expectation that the Morrisons acquisition will be
successfully integrated.

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

The ratings could experience upward pressure if Moody's adjusted
gross leverage was expected to (1) sustainably reduce below 5.25x
or (2) Moody's adjusted EBITDA–capex / interest expense was to
exceed 1.75x. An upgrade would also require expectations of broadly
stable fuel volumes and margins, as well as successful integration
of the Morrisons acquisition.

On the other hand, negative pressure could arise if: (1) Moody's
adjusted gross leverage increases above 6.25x over the next 12-18
months; (2) Moody's adjusted EBITDA–Capex / interest expense
decreases below 1.25x; (3) free cash flow was to turn negative for
an extended period or; (4) a case of weaker than expected liquidity
transpired.

ENVIRONMENTAL, SOCIAL & GOVERNANCE CONSIDERATIONS

MFG's ESG Credit Impact Score CIS-4 reflects Moody's assessment
that environmental, social and governance all have an impact on the
current ratings. High carbon transition related risks are the main
driver of MFG's exposure to environmental risk, while social risks
are mainly driven by increasing demographic and social pressures
affecting future fuel demand in light of the electrification of
vehicles. Governance risk exposures reflects its majority private
equity ownership and an aggressive financial strategy as
demonstrated by high leverage and a history of dividend
recapitalisation, mitigating this is the more conservative
financial policy decisions made recently.

LIQUIDITY

Moody's views MFG's liquidity as adequate. Liquidity is supported
by the agency's expectation of ongoing availability under CD&R
Firefly Bidco Limited (MFG)'s backed senior secured revolving
credit facility (RCF) upsized to GBP661 million. Moody's considers
this facility to be adequate to cover intra-quarter working capital
needs. The RCF has only one springing maintenance covenant based on
net senior secured leverage, tested only when drawn by more than
40%, which Moody's expects MFG to maintain sizeable headroom. The
backed senior secured term loans B facilities are covenant-lite.
Moody's also factors in the supply chain financing agreements the
company will enter following the acquisition in its liquidity
assessment. Although these lines can be cancelled with short
notice, the facilities are expected to not be fully drawn and used
as an additional source of liquidity for the company to mitigate
against oil price fluctuations.

STRUCTURAL CONSIDERATIONS

CD&R Firefly Bidco Limited (MFG)'s B2 rating of the backed senior
secured bank credit facility instrument ratings is in line with
MFG's CFR and reflects the company's capital structure being all
senior and pari passu ranking. These considerations incorporate the
impact of the pro forma capital structure, which includes GBP1.6
billion additional debt and GBP1.2 billion of equity coming into
the group.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Retail and
Apparel published in November 2023.

COMPANY PROFILE

Headquartered in St Albans, England, MFG is the largest independent
forecourt operator in the UK with 1,210 stations, pro forma for the
proposed acquisition, operating under multiple fuel brands. The
company mainly operates petrol filling stations and offers
convenience retail stores and food-to-go-services. The proposed
acquisition of Morrisons' sites will increase MFG's EBITDA by
around 50% on a company defined basis, to GBP681 million proforma
and including GBP40 million synergies. The company has been
majority owned by funds managed by private equity firm Clayton
Dubilier & Rice, LLC (CD&R) since 2015.


DB GROUP: Enters Administration, Halts Operations
-------------------------------------------------
Grant Prior at Construction Enquirer reports that the firm behind
zero-cement concrete brand Cemfree has gone into administration

DB Group traded under the Cemfree brand and Pudlo waterproofing
products.

According to Construction Enquirer, administrators from BDO LLP
took charge of the companies last week and the group has ceased to
trade.

Latest results for the year to December 31, 2022, show DB Group had
a turnover of GBP5.5 million generating a pre-tax loss of
GBP170,000 while employing 56 staff, Construction Enquirer
discloses.

The results state that funds generated by the other group
businesses have "continued to be used to fund to finance Cemfree
development and commercialisation, acceleration of which pushed the
group into operating losses financed from internal reserves",
Construction Enquirer notes.


DURHAM MORTGAGES A: S&P Assigns Prelim. B(sf) Rating on F Notes
---------------------------------------------------------------
S&P Global Ratings assigned preliminary credit ratings to Durham
Mortgages A PLC's class A, B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, F-Dfrd,
and X-Dfrd notes. At closing, Durham Mortgages A will also issue
unrated class Z and R notes, and unrated X and Y certificates.

The transaction is a second refinancing of the Durham Mortgages A
PLC transaction, which closed in May 2018 (the original
transaction) and was refinanced in February 2021.

S&P said, "We have based our credit analysis on the preliminary
pool, which totals GBP1.25 billion. The pool comprises first-lien
U.K. residential mortgage loans that Bradford & Bingley PLC and
Mortgage Express PLC originated. The loans are secured on
properties in England, Wales, Scotland, and Northern Ireland and
were originated between 1994 and 2009. The underlying loans in the
securitized portfolio are and will continue to be serviced by Topaz
Finance Ltd. Topaz Finance is a subsidiary of Computershare
Mortgage Services Ltd. We reviewed Topaz Finance's servicing and
default management processes and are satisfied that it is capable
of performing its functions in the transaction."

Over 99% of the loans in the portfolio are more than 10 years
seasoned.

S&P considers the collateral to be nonconforming based on the
prevalence of loans to self-certified borrowers and borrowers with
adverse credit history, such as prior county court judgments, an
individual voluntary arrangement, or a bankruptcy order.

Of the preliminary pool, 12.9% of the mortgage loans by current
balance are currently in arrears greater than (or equal to) one
month. There is high exposure to interest-only loans in the pool at
87.9%.

S&P said, "Our preliminary rating on the class A notes addresses
the timely payment of interest and the ultimate payment of
principal. Our preliminary ratings on the class B-Dfrd to F-Dfrd
notes and X-Dfrd notes reflect the ultimate payment of interest and
principal. Our ratings definitions are in line with the notes'
terms and conditions."

The timely payment of interest on the class A notes is supported by
the principal borrowing mechanism, the general reserve, and the
liquidity reserve. These reserve funds will be funded at closing.

The reserve fund comprises a general reserve fund and liquidity
reserve fund (LRF). The LRF covers the senior fees, class A
interest, and X -certificate payments. The LRF will be initially
funded at 1% of the class A notes' closing balance and amortizes in
line with the class A notes. The general reserve fund is
non-amortizing and will be funded initially at 1.25% of the closing
portfolio balance.

When the class B-Dfrd to F-Dfrd notes become the most senior class,
S&P's ratings will address the ultimate repayment of principal and
timely payment of interest. For the most senior class of notes, a
deferral of interest would constitute an event of default under the
terms and conditions of the notes.

There will be no swap counterparty to hedge the mismatch between
the interest rate paid under the mortgage loans and the interest
rate paid under the notes.

S&P said, "There are no rating constraints in the transaction under
our counterparty, operational risk, or structured finance sovereign
risk criteria. We consider the issuer to be bankruptcy remote.

"Our credit and cash flow analysis and related assumptions consider
the transaction's ability to withstand the potential repercussions
of the cost of living crisis, namely higher defaults and longer
recovery timing. As the situation evolves, we will update our
assumptions and estimates accordingly."

  Preliminary ratings

  CLASS          PRELIM. RATING*     CLASS SIZE (%)

  A              AAA (sf)            83.70

  B-Dfrd         AA (sf)              4.35

  C-Dfrd         A+ (sf)              3.70

  D-Dfrd         BBB+ (sf)            3.10

  E-Dfrd         BB (sf)              2.10

  F-Dfrd         B (sf)               0.90

  Z              NR                   2.15

  R§             NR                   2.09

  X-Dfrd§        CCC (sf)             0.70

  X certificate† NR                    N/A

  Y certificate  NR                    N/A

*S&P's preliminary rating on the class A notes addresses the timely
payment of interest and the ultimate payment of principal. S&P's
preliminary ratings on the class B-Dfrd to F-Dfrd notes and X-Dfrd
notes reflect the ultimate payment of interest and principal.
§ The class R and X-Dfrd notes are not collateralized by the pool
assets.
†The X certificates pay a fixed rate on the loans' outstanding
balance.
N/A--Not applicable.
NR--Not rated.
SONIA--Sterling Overnight Index Average.


ELAN LASER: Administrators Put Assets Up for Sale
-------------------------------------------------
Business Sale reports that administrators are marketing the assets
of a company that operated luxury laser and skin treatment clinics
for sale following its collapse.

Elan Laser Clinics fell into administration on February 15, 2024,
with FRP Advisory partners Michelle Elliot and Anthony Collier
appointed as joint administrators, and has now ceased trading,
Business Sale relates.

The company was founded in March 2022 and operated five clinics
across the UK, with locations in Portman Square (London), Leeds,
Liverpool, Beaconsfield and Hale Barns. The clinics provided a
range of skincare, cosmetic and laser hair removal treatments.

According to Business Sale, despite seeing initial growth of the
business and brand, the company incurred significant capital and
operating costs while setting up the clinics and developing its
brand.  The significant operational costs of the company's business
model, combined with revenue growth that failed to meet
expectations, led to unmanageable cash flow pressures, Business
Sale notes.

Following the appointment of administrators, all 35 employees have
been made redundant and the company's assets are being marketed for
sale, with interested parties urged to contact FRP Advisory,
Business Sale discloses.  The company's latest available balance
sheet at Companies House dates from shortly after its founding in
March 2022, with the firm's total assets at the time amounting to
around GBP295,000.  However, its debts at the time left it with
total liabilities of more than GBP250,000, Business Sale states.


ELSTREE FUNDING 4: S&P Assigns BB+(sf) Rating on F-Dfrd Notes
-------------------------------------------------------------
S&P Global Ratings assigned its credit ratings to Elstree Funding
No. 4 PLC's class A to X notes. At closing, Elstree Funding No. 4
also issued unrated class Z and RC1 and RC2 residual certificates.

S&P's ratings address timely receipt of interest and ultimate
repayment of principal on the class A notes, the ultimate payment
of principal on the class X notes, and the ultimate payment of
interest and principal on all other rated notes.

Of the loans in the pool, 40.5% are first-lien buy-to-let (BTL)
mortgages, 54.2% are second-lien owner-occupied mortgages, and 5.3%
are second-lien BTL mortgage loans.

The loans in the pool were originated by West One Secured Loans
Ltd. (WOSL) and West One Loan Ltd. (WOLL), which are wholly owned
subsidiaries of Enra Specialist Finance Ltd. (Enra), between 2017
and 2023. 38.2% of the collateral was previously securitized in
Elstree Funding No.1, which was called in November 2023.

Most of the second-lien owner-occupied pool is considered to be
prime, with 97.8% originated under Enra's "prime plus" or "prime"
product ranges and the remainder categorized as "near prime". The
near prime loans are categorized by lower credit scores and
potentially more adverse credit markers, such as county court
judgments, than those under the prime or prime plus ranges.

The class A and B-Dfrd notes benefit from liquidity provided by a
liquidity reserve fund, and principal can be used to pay senior
fees and interest on the rated notes subject to various
conditions.

Credit enhancement for the rated notes consists of subordination
and a general reserve fund.

The transaction incorporates a swap to hedge the mismatch between
the notes, which pay a coupon based on the compounded daily
Sterling Overnight Index Average, and the portion of loans, which
pay fixed-rate interest before reversion.

At closing, the issuer used the issuance proceeds to purchase the
full beneficial interest in the mortgage loans from the seller. The
issuer grants security over all its assets in favor of the security
trustee.

WOSL services the portfolio.

S&P said, "There are no rating constraints in the transaction under
our counterparty, operational risk, or structured finance sovereign
risk criteria. We consider the issuer to be bankruptcy remote.

"Our current macroeconomic forecasts and forward-looking view of
the U.K. residential mortgage market are considered in our ratings
through additional cash flow sensitivities."

  Ratings

  CLASS          RATING     AMOUNT (MIL. GBP)

  A              AAA (sf)       293.739

  B-Dfrd         AA (sf)         16.224

  C-Dfrd         AA- (sf)        11.101

  D-Dfrd         A (sf)           8.539

  E-Dfrd         BBB (sf)         6.831

  F-Dfrd         BB+ (sf)         4.270

  Z              NR               0.854

  X              BBB+ (sf)        7.685

  RC1 Residual Certs   NR           N/A

  RC2 Residual Certs   NR           N/A

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


EURAMAX SOLUTIONS: Goes Into Administration
-------------------------------------------
Business Sale reports that Euramax Solutions Limited, a South
Yorkshire manufacturer of windows and doors, has fallen into
administration.

According to Business Sale, the Barnsley-based company had suffered
cashflow issues following the collapse of a major customer,
combined with decreasing demand from the UK's holiday homes
market.

Chris Ratten and Gareth Harris of RSM Restructuring Advisory have
been appointed as joint administrators of the company, but
emphasised that no redundancies have been made so far at business,
which employs around 200 staff, Business Sale relates.

The company specialises in manufacturing uPVC windows and doors for
a number of sectors, including modular construction, leisure and
DIY.  In the company's accounts for the year ending June 30, 2022,
it reported turnover of GBP26.5 million, roughly the same as it
generated in the period from January 1, 2020 to June 30 2021, with
pre-tax profits of GBP129,000, down from GBP579,000 in the 18
months covered in its previous accounts, Business Sale discloses.

At the time, the company's non-current assets were valued at GBP1.4
million and current assets at GBP14.3 million, Business Sale
recounts.  However, the company's debts at the time stood at more
than GBP10 million, with its net assets valued at GBP4.3 million,
Business Sale states.

Following their appointment, the joint administrators will work to
maximise potential returns for creditors, working alongside the
company's management team and suppliers to support limited
operations in order to fulfil outstanding orders for customers,
Business Sale notes.


KIER GROUP: S&P Assigns 'BB-' ICR, Outlook Stable
-------------------------------------------------
S&P Global Ratings assigned its 'BB-' ratings to Kier Group PLC and
to the GBP250 million senior unsecured notes and assigned a
recovery rating of '3' to the notes.

The stable outlook reflects Kier's improved earnings and cash
generation in 2023 and our expectation that cash generation will
normalize in 2024, as well as its forecast that adjusted funds from
operations (FFO) to debt will be about 30%-35% in 2024 and
operating cash flow (OCF) to debt at about 20%.

London Stock Exchange-listed engineering and construction group
Kier has refinanced its capital structure. As part of the
transaction, Kier issued GBP250 million of senior unsecured notes
due 2029 and has recently amended and extended its revolving credit
facility (RCF) to GBP150 million maturing in March 2027. The funds
were used to pay down, on a pro-rata basis, Kier's GBP75 million
(equivalent) private placement notes due in January 2025, its
recently amended and extended RCF, and for general corporate
purposes.

Kier's credit metrics strengthened in fiscal year 2023 (ended June
30, 2023), thanks to improved profitability and robust cash
generation. The group demonstrated progress toward its medium-term
plan and achieved a net cash position (as defined by management),
while improving its profitability and cash conversion. Kier's S&P
Global Ratings-adjusted EBITDA increased by 19% to GBP162 million,
up from GBP136 million in fiscal 2022, due to higher revenue in its
infrastructure and construction divisions, more than offsetting the
impact from lower property transactions. The infrastructure
division was boosted by the ramp-up of High-Speed 2 (HS2),
Britain's new high-speed railway and one of the largest
infrastructure projects in Europe. In addition, adjusted EBITDA
margin improved by about 50 basis points (bps) to about 4.8%,
thanks to ongoing cost-saving initiatives by management and lower
restructuring costs, which we include in S&P's calculation of
EBITDA.

The group's cash generation improved markedly, thanks to the higher
level of activity and the resultant working capital inflow on
projects. Specifically, Kier's OCF improved to about GBP144 million
in fiscal 2023 from GBP45 million in fiscal 2022. As a result,
Kier's credit metrics have improved in fiscal 2023, with FFO to
debt increasing to about 41%, from 33% in fiscal 2022.

S&P said, "We anticipate Kier will maintain improved credit metrics
in 2024 and 2025, with adjusted FFO to debt at 30%-35%. We forecast
a further increase in revenue by 9%-10% in fiscal 2024, before
moderating to 5%-7% in fiscal 2025, supported by the orderbook
growth. As of Dec. 31, 2023, Kier's order backlog increased by 6%
year on year to GBP10.7 billion and covered about 90% of our
projected 2024-2026 revenue.

"After significant improvement in profitability in fiscal 2023, we
expect EBITDA growth to normalize in the next 12-24 months, with
the EBITDA margin at 4.5%-5.0%--representing a marginal decline
compared with 2023. In our base case, we factor in the development
of the product mix within the construction segment. In particular,
we expect the lower-margin regional build business to expand faster
than the property management business. Still, we forecast adjusted
EBITDA (including restructuring costs) will improve to GBP170
million-GBP180 million in fiscal 2024 before increasing to GBP180
million-GBP190 million in fiscal 2025. We believe that Kier's
margins will find support at that level due to contractual
protections, considering that about 60% of its contracts,
particularly those related to more complex infrastructure and civil
engineering projects, such as the HS2 and the Hinkley Point C
nuclear power station, are either cost plus or target cost
contracts.

"On the other hand, we expect OCF to normalize to GBP70
million-GBP80 million in fiscal 2024 and 2025 from about GBP144
million in 2023, mainly because we assume more modest working
capital inflows in the next few years. Our assumptions reflect new
project wins, as well as development and completion of existing
projects in a context where we assume revenue growth." This is
thanks to Kier's working capital characteristics, whereby it
typically has a release when the top-line grows as the group
receives cash for projects under construction before investing in
operating assets.

Kier's strong reputation in contract execution for the public
sector and established framework positions are positive for S&P's
rating. The group's strategy is focused on work undertaken under
frameworks: a pre-established agreement between a government body
and pre-selected suppliers. Within frameworks, projects continue to
be tendered on a competitive basis but involve a small number of
suppliers (typically six-12) over a multiyear fixed term, which in
our view lowers the degree of competition compared with open market
tenders. Most of the major public sector work is awarded through
frameworks, which supports Kier's revenue visibility and provides
the group with a pipeline of projects it can bid for, along with
the ability to plan its resources effectively. Importantly, it
allows Kier to deal on a recurring basis with the same client,
reducing execution risk, and deliver repeat work based on
standardized designs, for example schools for the U.K. Department
of Education. S&P believes this entails learning-curve benefits for
Kier and has helped the group develop expertise and a strong
reputation in areas such as education, defense, and justice.

S&P said, "We regard Kier's narrow geographic diversity, project
concentration, and modest scale as the main constraints for its
credit profile. The group generated revenue of about GBP3.4 billion
in fiscal 2023, and adjusted EBITDA of about GBP162 million. We
project the group's sales will increase to about GBP3.9 billion by
fiscal 2025. Although growing, this is still modest compared with
similar or higher rated peers, such as Webuild and Fluor, which are
several times larger and have operations in multiple countries."
Moreover, Kier's project concentration is still somewhat high
compared with industry peers, as its 10 top projects represent
about 39% of its secured and probable orderbook, albeit this is
temporarily influenced by the impact of HS2.

Lastly, Kier operates exclusively in the mature and competitive
U.K. market, which also results in a comparatively smaller
addressable market than peers that have the same level of
geographic concentration operating in North America. S&P said,
"While we think that the group is well positioned to benefit from
increased public spending under the U.K.'s National Infrastructure
Strategy, its geographic concentration nonetheless affects the
group's credit profile because potential budgetary pressure can
lead to project postponements or delays, reducing earnings quality
and predictability. We saw evidence of this in fiscal 2022, when
construction income declined by 19% due to deferred orders and
delayed project starts as inflationary pressures strained customer
budgets."

S&P said, "The stable outlook reflects Kier's improved earnings and
cash generation in 2023 and our expectation that cash generation
will normalize in 2024. In our base-case scenario, we forecast that
S&P Global Ratings-adjusted FFO to debt will remain strong for the
rating at about 30%-35% in 2024, but we anticipate that OCF will
decline to GBP70 million-GBP80 million in 2024 from GBP144 million
in 2023, corresponding to OCF to debt of about 20%.

"We would consider lowering the rating on Kier if the group
experiences material project postponements or margin erosion,
reflecting a lower quality of earnings and negatively affecting our
assessment of its business risk.

"We could also lower the rating if Kier's FFO to debt declines to
below 20% without near-term recovery prospects, for example due to
cost overruns, or if the group deviates from its publicly stated
dividend policy or embarks on sizable leveraged acquisitions.

"We could raise our rating on Kier if its FFO-to-debt ratio remains
comfortably within the 30%-45% range, while maintaining OCF to debt
sustainably above 30%.

"ESG factors are a neutral consideration on our credit assessment
of the Kier Group. The group derives over 90% of its revenue and
EBITDA from engineering and construction, and the rest from
property development. Given the group's focus in the U.K., and the
fact that a large proportion of its earnings stem from government
contracts, environmental factors are an important driver of future
revenue growth. This is because carbon reduction plans are a
consideration in the procurement of major government contracts,
which bidding suppliers are required to provide, and to confirm
their commitment to achieving net zero by 2050. Kier is focusing on
energy efficiency, fleet emissions, use of alternative fuels such
as hydrogen generators in construction, and the use of battery
storage units across the business to achieve a 65% CO2 emissions
reduction over the next decade (compared with 2019) and to reach
net zero by 2045.

"Governance factors are a neutral consideration in our credit
rating analysis, given the board's independence, the group's
well-developed risk management culture, and limited legal issues
historically."


LIBERTY GLOBAL: S&P Affirms 'BB-' LT ICR on Sunrise Spin-off
------------------------------------------------------------
S&P Global Ratings affirmed its BB-' long-term issuer credit rating
on multinational telecommunications company Liberty Global.

The stable outlook reflects that S&P expects Liberty Global to
maintain adjusted debt to EBITDA around 5x, supported by the
company's financial policy of maintaining adjusted leverage at the
higher end of 4x-5x.

Liberty Global has announced details of its plan to spin-off 100%
of UPC Holding B.V. (Sunrise), which is expected to complete in the
second half of 2024.

Liberty Global's spin-off of Sunrise will reduce scale and cash
flow but its financial policy supports rating stability. The
announced spin-off of Sunrise will lower the scale and geographic
diversity of Liberty Global's business. It removes its telecom
asset in the wealthy Swiss market, which generated material cash
flows of about $350 million, but was underperforming and carried
higher leverage than the other group subsidiaries. In S&P's view,
management's commitment to maintain adjusted EBITDA at around 5x
will support its current 'BB-' rating on Liberty Global.

Liberty Global plans to spin-off 100% of Sunrise toward the second
half of 2024 and list it on Swiss stock exchange. Before listing,
Liberty Global expects to reduce debt at Sunrise by around $1.7
billion, using proceeds from the sale of All3Media (about $400
million), free cash flow at Sunrise (about $350 million-$400
million), and cash at Liberty Global ($1 billion). Pro forma the
transaction, S&P Global Ratings expects Liberty Global's adjusted
debt to EBITDA to be approximately 5.0x, down from just under 5.5x
in 2023. The deleveraging is driven by the deconsolidation of
Sunrise, which carries higher leverage (adjusted debt to EBITDA at
Sunrise was around 6.5x in 2023 compared with around 5.5x for
Liberty Global) as well as S&P's expectations of higher dividends
from VodafoneZiggo, which it includes in its adjusted EBITDA.

Sunrise's adjusted EBITDA of around EUR1.2 billion in 2023
accounted for almost a quarter of Liberty Global's S&P Global
Ratings-adjusted EBITDA. S&P said, "From a business risk
perspective, we view negatively Liberty Global's reduced scale and
diversification, and loss of exposure to the premium Swiss market.
That said, we don't anticipate a change in the business risk
profile as pro forma the transaction, Liberty Global's business
risk profile compares well with other rated peers in the telecom
sector. Once the spin-off is completed as announced, we may
slightly tighten the thresholds for the rating to reflect the
marginally weaker business, but expect Liberty Global's credit
metrics to stay within these boundaries."

S&P said, "We expect broadly stable revenue and earnings over the
next two years but free operating cash flow is likely to be
subdued. S&P Global Ratings anticipates broadly stable revenues and
earnings pro forma for Liberty Global (excluding Sunrise) over the
next 12-24 months. During this time, we expect growth in Ireland
and the Netherlands to offset the adjusted EBITDA decline in the
U.K. and Belgium. We expect adjusted debt (excluding the impact of
the Sunrise deconsolidation) to remain broadly stable in this
period as we expect the company's free cash flow to be distributed
to shareholders. However, we anticipate no dividend
recapitalization in the next 12-24 months. We anticipate adjusted
debt to EBITDA will stay around 5x over the next two years.

"In our view, Liberty Global's capital intensity will remain
elevated over the next few years as most subsidiaries are rolling
out fiber network and widening their 5G coverage. Capex (calculated
as additions to property and equipment) as a percentage of sales
was around 18% in 2023 and we expect this to increase to around 22%
for the next two years (excluding Sunrise). The increase in capex
is mainly due to higher capex in Belgium (Telenet), where capex to
sales is expected to be close to 35% as the network company (Wyre)
begins to invest in fiber-to-the home. We acknowledge the sizable
cash on Telenet's balance sheet, which would be used to fund the
higher capex requirement over the next few years. We also expect
annual free operating cash flow (FOCF) at Liberty Global to remain
largely subdued over the next two years due to the high capital
intensity. We expect annual FOCF of around $700 million-$800
million. We do not view this as a key credit weakness since Liberty
Global plans to fund part of the high capex at Telenet with cash on
hand (around $1 billion).

"The stable outlook reflects that we expect Liberty Global to
report stable revenue and EBITDA in 2024-2025. The outlook also
reflects our view that Liberty will maintain adjusted debt to
EBITDA at around 5.0x and generate annual FOCF of above $700
million.

"We could lower the rating if we expect that the group's adjusted
debt to EBITDA will increase to substantially above 5.5x, on a
sustained basis, due to larger-than-anticipated shareholder returns
or on the back of leveraged transactions that do not materially
enhance our view of the business.

"Increasing competition--that results in declining EBITDA margins
or a significant increase in capex resulting in adjusted FOCF to
debt falling materially below 3% on a sustained basis--could also
lead us to consider a downgrade.

"We do not expect to take a positive rating action on Liberty
Global in the near term, primarily because of the group's high
capex and aggressive financial policy, which we expect will
maintain adjusted debt to EBITDA at 4x-5x over the longer term,
which at the upper end means just over 5x on an S&P Global
Ratings-adjusted basis.

"Moreover, a positive rating action is also unlikely due to Liberty
Global's relatively limited FOCF over the next few years. However,
if management adopted a deleveraging policy, we could raise the
rating if leverage reduced and remained at comfortably less than
5x, while adjusted FOCF to debt (excluding vendor financing)
increased to sustainably above 5%."


MBH CORP: Enters Administration, March 11 Meeting Set
-----------------------------------------------------
Anna Cooper at TheBusinessDesk.com reports that a diversified
investment firm has been placed into administration with directors
at odds at how the company will move forward.

MBH Corporation, headquartered in Birmingham, acquires and develops
businesses in fragmented industries.  It's given SMEs the
opportunity to be listed on the Frankfurt and Dusseldorf Stock
Exchanges as part of the group and up until Dec. 1, MBH was also
listed on AQUIS.  Investors have had access to businesses in the
US$1 million-US$10 million EBITDA range through the buy and build
approach.

Nineteen companies belong to the group which spans across the
world, businesses include Boulder Sausage based in Louisville;
Learning Wings is a Singapore education firm; Robinsons Caravans
group is located in Chesterfield and Cobul Constructions is based
in Australia.

According to TheBusinessDesk.com, the decision to enter
administration was made on Friday, Feb. 23, with Kris Wigfield of
Begbies Traynor and Douglas Pinteau of WSM Marks Bloom appointed as
joint administrators on Feb. 26.

An Extraordinary General Meeting will be held on March 11 to
discuss the future of the business and to vote for the removal of
the board of directors, TheBusinessDesk.com discloses.

Not all directors are in support of the move, with statements
released to say there is a turnaround plan and line of funding
available and entering administration "is not in the best interests
of creditors, shareholders or bondholders", TheBusinessDesk.com
notes.

David Hunter, of Loughborough-based Take Me Group (formerly ADT
Taxis), which is part of MBH, has been appointed to the board as
executive director, TheBusinessDesk.com relays.


MCCORMACK DEMOLITION: Asset Auction to be Held Today, Feb. 27
-------------------------------------------------------------
Gary McDonald at The Irish News reports that an auction will be
held today, Feb. 27, at Wilsons in Mallusk to sell off the assets
of a long-standing Belfast demolition company which went into
administration in November 2023.

McCormack Demolition in Mallusk and its sister company McCormack
Site Services (Ireland) Ltd, which had been in business for more
than 40 years, called in administrators from Keenan CF in November,
The Irish News relates.

The firm's previous shareholder and director Eamonn McCormack (63),
who had been involved with the family business since its
foundation, has been speaking of his hopes for the future, The
Irish News notes.

It comes following an article in the Irish News on Feb. 16 which
revealed that the estimated payment for unsecured creditors could
be in the range of 6.42p and 10.68p in the pound, The Irish News
states.

According to The Irish News, he said: "The McCormack family
resigned as directors and shareholders of the company in November
2022 at the end of a two-year exit planning strategy.

"Financial checks were carried out at that time and the company was
in excellent financial health, with significant cash reserves and a
strong balance sheet.

"At no time during 2021/22 or at any previous time did the company
seek or obtain additional finance to bridge cash flow."

Mr. McCormack -- who has since set up a new company called Level
Demolition - said: "HP agreements were put in place to finance new
equipment as part of McCormack Demolition's ongoing policy to
maintain a modern fleet of equipment -- not to bridge cash flow."

And he added: "The McCormack family is deeply saddened by the
collapse of the company and the difficulties this has created for
creditors."

Administrators anticipate recouping at least GBP1.3 million when
the demolition firm's entire assets -- which include EC380
excavators, Brokk machines, containers, machinery attachments and
construction equipment, commercial vehicles, and HGVs -- come under
the hammer.


TORQUAY UNITED: Owner Set to Lose GBP5-Mil. if Club Collapses
-------------------------------------------------------------
Michael Ribbeck at TheBusinessDesk.com reports that the owner of
Torquay United looks set to lose around GBP5 million when the club
is placed into administration.

Late last week, Clarke Osborne announced he could no longer afford
to back the club and was intending to call in the administrators,
TheBusinessDesk.com relates.

Company accounts have revealed Mr. Osborne lent the firm more than
GBP4 million with the final figure expected to be even higher,
TheBusinessDesk.com notes.

According to TheBusinessDesk.com, University of Liverpool's Kieran
Maguire said: "He's going to have to take a significant haircut.

"There's no way that somebody's going to want to inherit those
debts.

"So it then comes down to what do we sell the club for? That gets
allocated to the creditors, of which one will be Clarke Osborne and
his companies."

The club, which was relegated to National League South last season,
are expected to be fined 10 points for going into administration.

Manager Gary Johnson left the club a few hours after the
announcement and assistant manager Aaron Downes has been placed in
temporary charge, TheBusinessDesk.com recounts.

Torquay United Supporters' Trust chairman Nick Brodrick has met
with the club's administrators, TheBusinessDesk.com states.

He said the trust does not want to take over the club, but will
help to raise money and facilitate anything needed by any potential
new owners, TheBusinessDesk.com relays.

He said the trust's main objective was to help raise funds to keep
the club running in the short term while administrators search for
a new owner, according to TheBusinessDesk.com.



                           *********


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
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Information contained herein is obtained from sources believed to
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