/raid1/www/Hosts/bankrupt/TCREUR_Public/240325.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Monday, March 25, 2024, Vol. 25, No. 61
Headlines
F R A N C E
SOLOCAL GROUP: Moody's Downgrades CFR & Senior Secured Notes to C
I R E L A N D
CVC CORDATUS XXIV: S&P Assigns Prelim B- (sf) Rating to F-R Notes
I T A L Y
ALMAVIVA: S&P Upgrades ICR to 'BB' on Strong Deleveraging
L U X E M B O U R G
EP BCO SA: Fitch Affirms 'BB-' LongTerm IDR, Outlook Negative
WEBPROS INVESTMENTS: Fitch Affirms B+ LongTerm IDR, Outlook Stable
R U S S I A
BANK STRELA: Put on Provisional Administration, License Revoked
S P A I N
BAHIA DE LAS ISLETAS: S&P Upgrades ICR to 'CCC+', Outlook Stable
S W E D E N
INTRUM AB: Moody's Lowers CFR to B3, Under Review for Downgrade
U K R A I N E
VF UKRAINE: S&P Downgrades ICR to 'CCC', Outlook Negative
U N I T E D K I N G D O M
ALUCRAFT SYSTEMS: On Brink of Administration
ARDONAGH GROUP: Fitch Puts Final CCC Rating to $1B Sr. Unsec. Notes
BOWTIE GERMANY: Moody's Affirms 'B3' CFR, Outlook Remains Stable
CULIMETA-SAVEGUARD: Enters Administration, Halts Operations
EAST ONE 2024-1: Moody's Assigns (P)Ba1 Rating to Class E Notes
EEBRIA: Bought Out of Administration by Beer52
JDL ELECTRICAL: On Verge of Administration, Ceases Operations
LIGHTHOUSE: Set to Go Into Administration
NOBLE CORP: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
RENEURON: Enters Administration, Explores Funding Options
SH STRUCTURES: Set to Go Into Administration
STRATTON MORTGAGE 2024-2: Fitch Rates Class F Notes 'BB+(EXP)sf'
X X X X X X X X
[*] BOND PRICING: For the Week March 18 to March 22, 2024
- - - - -
===========
F R A N C E
===========
SOLOCAL GROUP: Moody's Downgrades CFR & Senior Secured Notes to C
-----------------------------------------------------------------
Moody's Ratings has downgraded to C from Caa3 the long term
corporate family rating and to C-PD/LD from Caa3-PD/LD the
probability of default rating of SoLocal Group S.A., a French
provider of local media advertising and digital solutions to the
small and medium-sized enterprise (SME) sector. Concurrently,
Moody's has downgraded to C from Ca the ratings on the EUR168.5
million senior secured notes due 2025 and the EUR17.8 million
senior secured bond due 2025, both issued by SoLocal Group S.A. The
outlook on all ratings remains negative.
These rating actions follow the company's announcement on March 13,
2024[1] that it had received two offers for a financial debt
restructuring both including a significant debt haircut.
RATINGS RATIONALE
The downgrade of Solocal's long term corporate family rating (CFR)
to C from Caa3 and its PDR to C-PD/LD from Caa3-PD/LD reflects
Moody's expectation that creditors will incur significant losses
through the transaction and the assumption of a high likelihood of
completion of one of the two possible debt restructurings in the
short-term.
Moody's expects that both proposed transactions will constitute a
distressed exchange, which is an event of default under Moody's
definitions. Governance is a key factor driving this rating action
reflecting SoLocal's highly aggressive financial strategy and risk
management resulting in an unsustainable capital structure that
needs to be resolved through financial debt restructuring.
On March 13, 2024 the company announced it had received two offers,
one from its bondholders and another one from Ycor, a French family
office. Ycor's offer includes an equity contribution of up to EUR40
million, a potential contribution in kind of Regicom, a digital
marketing company owned by Ycor, and a significant debt reduction
of close to 80%. The company would be controlled by Ycor,
subsequent to the completion of the offer. The bondholder's offer
also includes a significant debt reduction of close to 80% and new
money financing in the form of debt of up to EUR20 million.
Although the board of directors, Solocal's management and revolving
credit facility (RCF) lenders support Ycor's offer, the company has
not yet reached a consensus with all of its creditors. In order to
implement Ycor's offer, Solocal intends to amend the Safeguard Plan
and will consult the General Meeting of Bondholders over the coming
days.
Moody's notes that if a consensual solution is not agreed over the
coming weeks there is a high likelihood that the company could file
for bankruptcy. Additionally, the company no longer benefits from a
waiver on the payment of interests of its bonds and mini bonds.
Given the level of uncertainty around the final terms of the
financial restructuring to be implemented, Moody's will monitor the
situation and upon closing of the transaction, revisit the rating
positioning in light of the final capital structure, assessment of
liquidity position as well as the prospective macroeconomic and
operating environment affecting the business.
Solocal's CFR continues to reflect its high Moody's-adjusted gross
leverage; the highly fragmented and competitive nature of the
markets in which Solocal operates; a structurally challenged
business model, a difficult macroeconomic environment in France;
high churn rates, and difficulties in retaining and attracting
sales personnel; and the company's track record of serial
defaults.
The rating also takes into account its leading position in the
French digital market, the modernisation of its IT infrastructure,
the shift towards a subscription-based auto renewal business model
and a significant reduction in its cost base.
RATIONALE FOR NEGATIVE OUTLOOK
The negative outlook reflects the uncertainty around the company's
ability to implement one of the two proposed restructurings over
the coming months.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if Solocal was to complete the
restructuring and shows operating improvement resulting in the
implementation of a sustainable capital structure.
SoLocal's rating could be downgraded if the company is unable to
complete the restructuring over the coming months.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Media published
in June 2021.
COMPANY PROFILE
SoLocal, headquartered in Paris, France, is a provider of local
media advertising and digital solutions predominantly to the small
and medium-sized enterprise (SME) sector in the country. In 2023,
SoLocal reported revenue of EUR360 million and estimated EBITDA as
calculated by management of EUR64 million. SoLocal is publicly
listed on the Paris Stock Exchange.
=============
I R E L A N D
=============
CVC CORDATUS XXIV: S&P Assigns Prelim B- (sf) Rating to F-R Notes
-----------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to CVC
Cordatus Loan Fund XXIV DAC's class B-1-R, C-R, D-R, E-R, and F-R
notes.
On March 28, 2024, the issuer will refinance the original class
B-1, C, D, E, and F notes by issuing replacement notes of the same
notional.
The replacement notes are largely subject to the same terms and
conditions as the original notes, except for the following:
-- The replacement notes have a lower spread over Euro Interbank
Offered Rate (EURIBOR) than the original notes.
-- The class F available amount, which was used as a turbo feature
on the original class F notes, has been removed now.
The preliminary ratings reflect S&P's assessment of:
-- The diversified collateral pool, which primarily comprises
broadly syndicated speculative-grade senior-secured term loans and
bonds that are governed by collateral quality tests.
-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.
-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.
-- The transaction's legal structure, which S&P expects to be
bankruptcy remote.
-- The transaction's counterparty risks, which S&P expects to be
in line with its counterparty rating framework.
Portfolio benchmarks
CURRENT
S&P weighted-average rating factor 2,950.55
Default rate dispersion 564.45
Weighted-average life (years) 4.08
Obligor diversity measure 120.61
Industry diversity measure 23.35
Regional diversity measure 1.14
Transaction key metrics
CURRENT
Portfolio weighted-average rating
derived from S&P's CDO evaluator B
'CCC' category rated assets (%) 1.70
Actual 'AAA' weighted-average recovery (%) 34.88
Rating rationale
Under the transaction documents, the rated notes will pay quarterly
interest unless a frequency switch event occurs. Following this,
the notes will switch to semiannual payments.
The portfolio's reinvestment period ended in September 2023.
S&P said, "The portfolio is well-diversified, primarily comprising
broadly syndicated speculative-grade senior-secured term loans and
senior-secured bonds. Therefore, we have conducted our credit and
cash flow analysis by applying our criteria for corporate cash flow
CDOs.
"In our cash flow analysis, we used a EUR353.43 million adjusted
collateral principal amount, the portfolio's actual
weighted-average spread, actual weighted-average coupon, and actual
weighted-average recovery rates at each rating level.
"We applied various cash flow stress scenarios, using four
different default patterns, in conjunction with different interest
rate stress scenarios for each liability rating category.
"The Bank of New York Mellon, London Branch is the bank account
provider and custodian. We expect that the transaction's documented
counterparty replacement and remedy mechanisms will adequately
mitigate its exposure to counterparty risk under our current
counterparty criteria.
"Under our structured finance sovereign risk criteria, we consider
that the transaction's exposure to country risk is sufficiently
mitigated at the assigned preliminary ratings.
"At closing, we expect that the transaction's legal structure and
framework will be bankruptcy remote, in line with our legal
criteria.
"Our credit and cash flow analysis indicates that the available
credit enhancement for the class B-1-R, C-R, D-R, and E-R notes
could withstand stresses commensurate with higher ratings than
those assigned. However, although the CLO is in its amortizing
phase, it has just started deleveraging the senior note and, in our
view, can still reinvest by using post reinvestment criteria,
during which the transaction's credit risk profile could
deteriorate. Hence, we have capped the assigned preliminary ratings
on the notes."
For the class F-R notes, the two notches of ratings uplift to 'B-'
from the model generated results of 'CCC', reflect several key
factors, including:
-- Credit enhancement comparison: The available credit enhancement
for this class of notes is in the same range as other CLOs that
S&P's rate and that have recently been issued in Europe.
-- Portfolio characteristics: The portfolio's average credit
quality is like other recent CLOs.
-- S&P's model generated break-even default rate at the 'B-'
rating level of 23.81% (for a portfolio with a weighted-average
life of 4.08 years), versus if it was to consider a long-term
sustainable default rate of 3.1% for 4.08 years, which would result
in a target default rate of 12.66%.
-- S&P does not believe that there is a one-in-two chance of this
note defaulting.
-- S&P does not envision this tranche defaulting in the next 12-18
months.
S&P said, "Following our analysis of the credit, cash flow,
counterparty, operational, and legal risks, we believe our
preliminary ratings are commensurate with the available credit
enhancement for the B-1-R, C-R, D-R, E-R, and F-R notes.
"In addition to our standard analysis, to provide an indication of
how rising pressures among speculative-grade corporates could
affect our ratings on European CLO transactions, we have also
included the sensitivity of the preliminary ratings on the class
B-1-R to E-R notes based on four hypothetical scenarios. The
results are shown in the chart below.
"As our ratings analysis makes additional considerations before
assigning ratings in the 'CCC' category, and we would assign a 'B-'
rating if the criteria for assigning a 'CCC' category rating are
not met, we have not included the above scenario analysis results
for the class F-R notes."
The transaction securitizes a portfolio of primarily senior-secured
leveraged loans and bonds, and it is managed by CVC Credit Partners
Investment Management.
Environmental, social, and governance
S&P regards the transaction's exposure to environmental, social,
and governance (ESG) credit factors as broadly in line with its
benchmark for the sector. Primarily due to the diversity of the
assets within CLOs, the exposure to environmental and social credit
factors is viewed as below average, while governance credit factors
are average.
The transaction documents prohibit assets from being related to the
following industries: manufacture or marketing of anti-personnel
mines, nuclear weapons and chemical weapons, revenue from
manufacturing of civilian firearms, tobacco production, mining of
thermal coal, oil sands extraction, revenue from natural gas or
renewables, provides payday lending, revenue from production or
marketing of pornography or prostitution, trade in endangered or
protected wildlife and production or trade of illegal drugs.
Accordingly, since the exclusion of assets from these industries
does not result in material differences between the transaction and
S&P's ESG benchmark for the sector, no specific adjustments have
been made in its rating analysis to account for any ESG-related
risks or opportunities.
Ratings list
REPLACEMENT ORIGINAL
PRELIM PRELIM NOTES NOTES CREDIT
CLASS RATING* AMOUNT INTEREST INTEREST ENHANCEMENT
(MIL. EUR) RATE§ RATE (%)
B-1-R AA (sf) 27.10 3mE + 2.05% 3mE + 3.51% 27.88
C-R A (sf) 21.30 3mE + 2.53% 3mE + 4.56% 21.85
D-R BBB(sf) 20.20 3mE + 3.80% 3mE + 6.15% 16.13
E-R BB- (sf) 15.30 3mE + 6.50% 3mE + 7.47% 11.80
F-R B- (sf) 10.40 3mE + 8.12% 3mE + 11.02% 8.86
*The preliminary rating assigned to the class B-1-R notes addresses
timely interest and ultimate principal payments. The preliminary
ratings assigned to the class C-R, D-R, E-R, and F-R notes address
ultimate interest and principal payments.
§The payment frequency switches to semiannual and the index
switches to 6mE when a frequency switch event occurs.
3mE--Three-month Euro Interbank Offered Rate.
=========
I T A L Y
=========
ALMAVIVA: S&P Upgrades ICR to 'BB' on Strong Deleveraging
---------------------------------------------------------
S&P Global Ratings raised its long-term issuer credit and its
issue-level ratings on Italian IT-services provider Almaviva and on
its debt to 'BB' from 'BB-'.
The stable outlook reflects S&P's anticipation of robust 9%-11%
organic revenue growth, driving healthy FOCF generation in line
with our base case, supported by solid operating performance and a
prudent financial policy.
Almaviva's continued resilient performance in 2023 supports
substantial deleveraging. S&P estimates that Almaviva posted about
8% revenue growth in 2023, driven by strong expansion in all
business segments. In the IT services business, Almaviva signed
around EUR658 million new contracts in 2023, of which about 74% are
with the public administration. As of fourth-quarter 2023, the
company had secured an order backlog of EUR2.5 billion in revenue.
This was helped by long-term contracts of five-to-10 years with
public administrations; notably, Almaviva had won three tenders
with its biggest client, Gruppo Ferrovie dello Stato, totaling over
EUR1,1 billion for seven years, by year-end 2021. This is 3x the
amount the company's IT services and the Almawave division
generated over the 12 months ending Sept. 30, 2023, and provides a
high visibility on revenue for the next couple of years.
S&P said, "We expect Italy's public administration to invest more
in IT in the next couple of years, not least due to the National
Recovery and Resilience Plan (Piano Nazionale di Ripresa e
Resilienza; PNRR). The PNRR has allocated about EUR50 billion to
digitalization, innovation, and competitiveness; EUR20 billion to
health care, with a focus on technology; and EUR31 billion to
infrastructure and transportation. Almaviva has a strong presence
in all these sectors. The company continues to diversify its
digital relationship management (DRM) International segment away
from telecommunications, with revenue from telcos down to 30% as of
third-quarter 2023 from 77% in 2018. We anticipate Almaviva's
annual revenue will increase by 5%-11% during 2024-2025
organically, supported by Italy's increasing digitalization efforts
and the implementation of operations with new clients in the DRM
International business.
"We expect Almaviva's FOCF to debt to improve to above 30% in 2023,
and sustainably above 15% thereafter. This improvement will be
underpinned by solid topline growth, adjusted EBITDA margin
expansion, increased cash flow generation, and prudent capital
expenditure (capex) management. We anticipate Almaviva's S&P Global
Ratings-adjusted EBITDA margin will improve to 15%-16% in
2024-2025, from about 14.5% in 2023. This is due to a favorable
business mix, efficient cost management, and declining contribution
from the non-core loss-making customer relationship management
(CRM) Europe business, which will be fully disposed during 2024 and
which accounts for about 1% of total revenues. We estimate adjusted
FOCF generation increased to about EUR95 million in 2023, supported
by improved change in working capital management with an expected
inflow of EUR16 million at year-end 2023, resulting in FOCF to debt
of around 32% for the year. While working capital improved in 2023,
we forecast negative working capital of about EUR50 million in
2024, resulting from top-line growth, and stable capex of about
EUR55 million-EUR60 million in 2024-2025. We however expect
Almaviva to continue generating positive FOCF after lease payments
in 2024, albeit weaker than 2023, of around EUR30 million-EUR40
million, leading to an FOCF to debt of 15%-17%. We expect the
company's S&P Global Ratings-adjusted basis debt to EBITDA reduced
to 1.8x in 2023.
"Improved cash flow generation resulted in significant deleveraging
to 1.8x in 2023 from 2.7x in 2022 , and we believe Almaviva will
continue to reduce debt to EBITDA further to 1.4x in 2024.Since
2017, we anticipate Almaviva gradually decreased its adjusted debt
to EBITDA to 1.8x as of the end of 2023 from 6.5x in 2017, thanks
to its solid EBITDA growth and substantial increase in cash on
balance sheet. We believe that Almaviva will continue investing
internally generated cash flow back into the business and
distribute modest annual dividends. As a result, we expect adjusted
debt to EBITDA to progressively decline toward 1.5x, in line with
the company's reported net leverage target of about 1.0x.
"The stable outlook is founded on our expectation that Almaviva
will see robust, organic revenue expansion of 9%-11% in the next 12
months. This growth trajectory will be primarily driven by the
sustained momentum in its IT services business, DRM International,
and the Almawave business segments. We project strong top-line
performance, supported by ongoing cost efficiency initiatives,
resulting in adjusted EBITDA margins surpassing 15%. Consequently,
we anticipate adjusted debt to EBITDA to comfortably remain below
2.0x, with FOCF to debt exceeding 15% on a sustained basis."
Upside scenario
S&P said, "We do not expect to raise our ratings on Almaviva in the
near term, as we believe the company will likely engage in merger
and acquisition activities given its substantial amount of cash on
the balance sheet. We could, however, upgrade Almaviva if continued
profitability improvement and stronger change in working capital
management significantly increase its FOCF, leading to adjusted
FOCF to debt of above 30% on a sustained basis. An upgrade would
also depend on adjusted debt to EBITDA remaining below 2.0x, and an
adherence to financial policy in line with those metrics."
Downside scenario
S&P said, "We could lower the rating on Almaviva if it
significantly underperformed our expectations, that is, if working
capital became sustainably negative, or the company's capex
management turned more aggressive, leading to a FOCF to debt of
below 15% and adjusted debt to EBITDA above 3.0x. This could be the
result of a decline in competitiveness or increased costs weighing
materially on EBITDA. Alongside any adverse foreign exchange
impact, this could hinder the company's ability to generate
meaningful FOCF and increase FOCF to debt."
===================
L U X E M B O U R G
===================
EP BCO SA: Fitch Affirms 'BB-' LongTerm IDR, Outlook Negative
-------------------------------------------------------------
Fitch Ratings has affirmed EP BCo S.A.'s Long-Term Issuer Default
Rating (IDR) at 'BB-'. Fitch has also affirmed the company's
first-lien EUR515 million term loan B (TLB) and second-lien EUR73
million TLB at 'BB-' with Recovery Ratings of 'RR2' and 'RR6',
respectively. Fitch has affirmed EP BCo's revolving credit facility
(EUR35 million) at 'BB-'/'RR2'. The Outlook is Negative for all of
the ratings.
RATING RATIONALE
The Negative Outlook reflects continued uncertainty around
Euroports' expected deleveraging path following a recent increase
of EUR25 million to its first-lien debt, which adds pressure to the
current negative rating sensitivity.
Euroports' rating reflects stable cash flows from its mature
terminals that are diversified within the commodity sector, and
additional inflows from the freight forwarding division (MPL), as
well as exposure to M&A risk. The rating also reflects the
refinancing risk of its bullet debt structure. The debt service is
interest-only until first-lien maturity in 2029.
For an overview of EP BCo's credit profile, including key rating
drivers, see 'Fitch Affirms EP BCo's IDR; Assigns New Term Loans
Final 'BB-' Ratings', published 25 January 2024, and 'Fitch Rates
Euroports' New Term Loans 'BB-(EXP)'; Negative Outlook' published 1
December 2023.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Failure to reduce gross debt/EBITDA below 6x by 2025 across its
Fitch rating case (FRC)
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The Outlook might be revised to Stable if EP BCo shows a clear
deleveraging trend with gross debt/ EBITDA in its FRC below 6.0x
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
EP BCo S.A. LT IDR BB- Affirmed BB-
EP BCo S.A./Port
Revenues - First
Lien/1 LT LT BB- Affirmed RR2 BB-
EP BCo S.A./Port
Revenues - Second
Lien/2 LT LT BB- Affirmed RR6 BB-
WEBPROS INVESTMENTS: Fitch Affirms B+ LongTerm IDR, Outlook Stable
------------------------------------------------------------------
Fitch Ratings has assigned WebPros Investments S.a r.l. (WebPros;
previously Particle Investments S.a r.l.) proposed first-lien
senior secured term loan B (TLB) an expected senior secured rating
of 'BB(EXP)' with a Recovery Rating of 'RR2'. Fitch has also
affirmed WebPros's Long-Term Issuer Default Rating (IDR) at 'B+'
with a Stable Outlook.
Fitch expects WebPros to raise around USD515 million to repay its
existing TLB in full and outstanding drawn amounts under its
revolving credit facility (RCF) as well as related transaction
costs. The assignment of the final instrument rating is contingent
on completion of the refinancing and receipt of final documents
conforming to information already received.
WebPros's IDR is primarily constrained by its leverage, while small
absolute scale and narrow service diversification around
web-infrastructure software are also important considerations.
Rating strengths are the company's leading positions in its niche,
strong and sustainable margins, and robust free cash flow (FCF)
generation.
The Stable Outlook reflects its expectation of leverage and
interest cover remaining comfortably within its sensitivities.
Despite some commitment to, and record of, deleveraging, WebPros
does not have a clearly articulated capital allocation policy, or
leverage target.
KEY RATING DRIVERS
Refinancing, Maturity Extension: After the refinancing WebPros's
capital structure will likely be extended to 2028 and beyond,
including the new TLB, which will have at least a five-year
maturity. Fitch expects the security package and covenants to
remain broadly consistent with the existing documentation. Given
that the refinancing is for the same amount as outstanding gross
debt (with the addition of transaction costs), it is largely
neutral to leverage. Fitch expects interest cover to remain
comfortably within its rating sensitivities of 2.5x-4.5x EBITDA for
the current rating.
Stable Performance: Fitch estimates 2023 performance would have
been in line with its expectations with revenue growth of around 3%
and a Fitch-defined EBITDA margin of 58.5%, the latter supported by
price increases. WebPros has had some license optimisation through
their partner channel but this is unlikely to materially affect
future revenues as they have secured new long-term contracts with
key partners. Fitch believes WebPros's leading market position and
limited contribution to overall total hosting costs for end-clients
provides scope for further pricing increases, although the
magnitude would depend on the scope and successful execution of new
and improved features.
Fitch forecasts gradual EBITDA growth with a stable margin over
2024-2026 as revenue growth is offset by increased support, staff
and some product-related costs.
Deleveraging, Debt Reduction: Fitch estimates 2023 EBITDA leverage
to have declined to 4.0x, primarily driven by the full prepayment
of its second-lien debt. Fitch expects further deleveraging to be
driven by organic EBITDA growth and supported by incremental
amortisation of the TLB. Fitch projects leverage to continue
declining to 3.7x by end-2026. Any Fitch-defined FCF used for
voluntary debt prepayments over dividends and material acquisitions
remains an upside to its forecasts.
Strong FCF: FCF is underpinned by a high proportion of recurring
revenues, limited capex (R&D largely expensed) and working-capital
outflows, and partially hedged interest costs, leading to a
projected robust FCF margin averaging 27% in 2023-2026. Fitch
expects non-recurring costs associated with the transition of
operations from Russia to Bulgaria to cease from 1Q24 (USD2 million
at end-9M23). Rapid cash accumulation, in the absence of dividend
payments, provides WebPros with significant financial resources for
M&As or debt prepayment.
Bolt-On M&As Possible: Fitch sees a greater possibility for
acquisitions of relevant web application products, funded from
internally generated cash, as a faster way to adopt a new
technology or functionality to complement in-house product
development. Transformational M&A funded by debt is less likely. As
a market leader with an unusually high share, WebPros would be
unable to extract sufficient value, such as synergies and
competitive advantages, from acquisitions of smaller-scale
competitors.
Market Opportunities: Research indicates the SMB market for web
solutions is expected to grow in mid-single digits annually on
increasing digitisation and demand for additional functionality.
This provides opportunities for WebPros to enhance and monetise
additional product capabilities, which can be embedded into
existing products. Recent M&A and R&D investments have focused on
expanding functionality and offering additional capabilities.
Successfully exploiting new opportunities is integral to protecting
WebPros's long-term growth prospects, particularly given its niche
product concentration and potential for market or technological
disruption.
DERIVATION SUMMARY
The ratings of WebPros are supported by its leading position as
web-infrastructure provider for the SMB segment. The company has a
global customer base, established partner relationships with
web-hosting companies and its products have strong reputation.
These strengths are offset by its leverage and limited product
diversification, which increase the risk of technological
disruption.
WebPros's peer group includes Fitch-rated ERP-focused software
companies such as TeamSystem S.p.A. (B/Stable), Unit4 Group Holding
B.V. (Unit4; B/Stable) and healthcare software providers such as
FinThrive Software Intermediate Holdings, Inc. (B-/Negative),
Waystar Technologies, Inc. (B/Positive), athenahealth Group, Inc
(B/Negative) and Dedalus SpA. (B-/Negative).
Similarly, to WebPros, these companies benefit from strong market
positions, high customer retention and good exposure to secular
growth trends. However, WebPros demonstrates significantly higher
margins, stronger FCF generation, has a more solid market
leadership in its niche, and is less exposed to
market-consolidation risks.
KEY ASSUMPTIONS
Fitch's Key Assumptions within its Rating Case for the Issuer:
- Low single-digit revenue growth in 2024-2026
- Fitch-defined EBITDA margin (pre-IFRS16) at 58%-59% for
2024-2026
- Working-capital outflow of around USD4 million annually to 2026
- Capex at 0.5% of revenues per annum for 2024-2026
- Annual non-operational costs of USD2.7 million per annum treated
as recurring to 2026
- Second-lien term loan repaid fully in 2023
- No M&A activity or dividends during 2023-2026
RECOVERY ANALYSIS
The recovery analysis assumes that WebPros would be reorganised
rather than liquidated in a bankruptcy and remain a going concern
(GC) in restructuring. This is because of its market leadership,
strong brand, and customer relationships.
Fitch estimates a GC EBITDA of USD85 million. Fitch would expect a
restructuring to follow a secular decline or lower revenue and
EBITDA on reputational damage, an unlikely emergence of a
disruptive technology, or intensified competition. Fitch uses an
enterprise value (EV) multiple of 6.0x to calculate a
post-restructuring valuation of USD459 million.
Its waterfall analysis generated a ranked recovery in the 'RR2'
band after deducting 10% for administrative claims. This results in
a 'BB(EXP)' senior secured instrument rating for its USD515 million
TLB and a fully drawn senior secured EUR60 million RCF on an
equally-ranking basis, two notches above the IDR, with a
waterfall-generated recovery computation of 80% based on current
metrics and assumptions.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- Clear capital-allocation policy with a commitment to maintaining
Fitch-defined EBITDA gross leverage below 3.5x on a sustained
basis
- Fitch-defined EBITDA interest coverage above 4.5x on a sustained
basis
- Continued strong market leadership and healthy FCF generation
- Increased scale driven by organic/inorganic growth and/or greater
diversification of its business model while maintaining solid
profitability
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- Fitch-defined EBITDA gross leverage expected at above 5.2x on a
sustained basis
- Fitch-defined EBITDA interest coverage below 2.5x on a sustained
basis
- A weakening market position as underlined by slowing revenue
growth and/or increasing customer churn
LIQUIDITY AND DEBT STRUCTURE
Comfortable Liquidity: Fitch estimates around USD19 million cash on
WebPros's balance sheet at end-2023. Fitch expects liquidity to
remain comfortable over the next four years, supported by FCF
generation and a USD60 million RCF. The current TLB matures in
February 2027. The proposed TLB is likely to have an extended
maturity into 2028 or beyond.
ISSUER PROFILE
WebPros is a global leader in web-hosting automation, created
through the combination of Plesk and cPanel. The company offers a
suite of tools that automate and simplify the management and
administration of web servers.
SUMMARY OF FINANCIAL ADJUSTMENTS
Fitch has only considered cash reported at WebPros for its credit
metrics calculation.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Particle
Investments
S.a r.l. LT IDR B+ Affirmed B+
senior secured LT BB(EXP)Expected Rating RR2
===========
R U S S I A
===========
BANK STRELA: Put on Provisional Administration, License Revoked
---------------------------------------------------------------
The Bank of Russia, by its Order No. OD-438, dated March 22, 2024,
revoked the banking license of Moscow-based Bank Strela
(joint-stock company). The credit institution ranked 321st by
assets in the Russian banking system.
The Bank of Russia made this decision in accordance with Clauses 6
and 6.1 of Part 1 of Article 20 of the Federal Law "On Banks and
Banking Activities" based on the facts that credit institution Bank
Strela (joint-stock company):
-- violated federal banking laws and Bank of Russia regulations,
due to which the regulator repeatedly applied supervisory measures
against it over the past 12 months; and
-- failed to comply with Bank of Russia regulations on
countering the legalisation (laundering) of criminally obtained
incomes and the financing of terrorism.
Bank Strela (joint-stock company) specifically engaged in
transferring funds between JSC QIWI Bank and other banking market
participants. Considerable volumes of transactions performed as
part of these activities were aimed at ensuring settlements between
individuals and shadow businesses (transfers of funds to crypto
exchanges, illegal casinos, and bookmakers) and carried high
risks.
The Bank of Russia submitted the information on transactions of
Bank Strela (joint-stock company) having signs of criminal activity
to law enforcement authorities.
The Bank of Russia, by its Order No. OD-439, dated March 22, 2024,
appointed the State Corporation Deposit Insurance Agency as a
provisional administration to manage Bank Strela (joint-stock
company). The provisional administration will carry out its
activity until the appointment of a receiver or a liquidator. In
accordance with federal laws, the powers of the credit
institution’s executive bodies were suspended.
=========
S P A I N
=========
BAHIA DE LAS ISLETAS: S&P Upgrades ICR to 'CCC+', Outlook Stable
----------------------------------------------------------------
S&P Global Ratings raised its issuer credit rating on Canary
Island-based ferry operator Bahia de las Isletas S.L. to 'CCC+'
from 'SD' (selective default). At the same time, S&P assigned its
'CCC+' issuer credit rating to Anarafe S.L.U., a core financing
subsidiary of Bahia and rated at 'B-' the EUR194 million senior
secured notes due in 2026 issued by Anarafe. S&P assigned a
recovery rating of '2' to the notes, based on substantial recovery
prospects (rounded estimate 80%). S&P also withdrew its ratings on
Naviera Armas S.A., at the company's request.
The stable outlook indicates that S&P expects Bahia's EBITDA to
increase, based on passenger volumes that are at least steady; and
anticipate that it will complete its operational turnaround within
the planned timeframe (including liquidity-enhancing measures) so
that its cash flow generation turns positive, while continuing to
honor its financial commitments over the next 12 months.
By completing its financial restructuring, Bahia has materially
reduced its debt burden. After the restructuring, Bahia's capital
structure consists of:
-- About EUR194 million of senior secured notes,
-- EUR61 million of super senior loan facility,
-- About EUR22 million of other financial debt, and
-- About EUR160 million of lease obligations.
Bahia cut its financial debt by close to 59%, including reducing
its senior secured notes from EUR485 million and extending the
maturity to December 2026. This should help the company concentrate
its efforts of improving operating efficiency and reducing pressure
on its liquidity, as well as increasing its financial flexibility.
Bahia's organizational restructuring includes optimization of
routes and route frequencies and a more proactive pricing strategy.
In addition, it will implement stricter control over the supplier
base and enhance its corporate governance structures. We understand
these measures are well underway, contributing to the positive
EBITDA generation momentum for Bahia year to date.
Bahia's liquidity position remains vulnerable. At year-end 2023,
the company had about EUR25 million cash on hand. However, to
comply with the minimum liquidity covenant under the notes'
documentation, it must keep EUR10 million on its balance sheet at
all times. The company's mandatory debt service charges primarily
consist of cash interest expenses of about EUR9 million, related to
the notes and the super senior loan facility, plus about EUR2
million to other debt that is due for repayment in 2024. Although
these remain manageable in 2024, the company's EUR61 million loan
is due in June 2025, which weighs on its liquidity. In addition,
the company needs about EUR30 million-EUR35 million for annual
maintenance capex and up to EUR25 million for regulatory and fleet
efficiency improvement investments over the next two years.
Furthermore, the business is inherently seasonal and could see
working capital swings of up to EUR15 million in the summer months.
In addition, Bahia's ongoing organizational restructuring will
require cash payments of up to EUR15 million during 2024.
S&P said, "In our view, Bahia is likely dependent on its ability to
refinance its debt in due course and secure liquidity from external
sources. These might include the sale of more noncore assets to
boost its liquidity position, notably to tackle the EUR61 million
loan maturity in June 2025.
"Bahia's leverage is forecast to remain high because we expect
operating performance to improve only gradually. We forecast S&P
Global Ratings-adjusted debt to EBITDA of 7.0x-9.0x in 2024, based
on adjusted debt of EUR430 million-EUR440 million (still
comparatively high) and a slow increase in EBITDA. Although the
restructuring enabled Bahia to shrink its financial debt, the
company still has considerable lease commitments of about EUR160
million. We understand that Bahia intends to exit nonperforming
routes to improve its profitability and reduce operating leverage,
but that this will happen only gradually. We therefore predict that
adjusted leverage may fall to a more-sustainable level in the
medium term, if the company's ongoing implementation of
wide-ranging operating efficiency measures, commercial initiatives,
and organizational streamlining result in improving EBITDA in
2024-2025.
"Our rating on Bahia reflects its relatively small scale, narrow
geographic diversification, and exposure to volatile fuel prices.
This offsets our view that the ferry industry has more favorable
fundamentals than traditional shipping. For example, Bahia mainly
operates ferries in the Canary Islands and connects the African
continent with mainland Spain--it covers about 24 routes and 24
ports. In addition, the company's fleet comprises 16 vessels that
it owns and seven that it leases. Its business model is built
around both passenger and freight services--Bahia has over 80
years' experience in the freight transportation segment and over 20
years in the passenger segment. Although it has built a strong
market position in the Canary Islands, we view the underlying
passenger and freight market as mature and competitive. Intense
competition makes it difficult for Bahia to translate its leading
market share into revenue premiums or higher ticket prices than its
peers."
Both the regional government of the Canary Islands and the Spanish
central government provide passenger subsidies, which tend to ease
the variability of demand and pricing volatility across the
seasonal cycle. The subsidies represent about 37% of total
passenger sales. Positively, this offers the company more passenger
transit business, but it also exposes Bahia to the central and
regional governments' capacity to pay the receivables due
quarterly, and to maintain those subsidies. A delay in payment by
the regional government could cause Bahia to suffer a working
capital deficit.
S&P said, "The stable outlook indicates that we expect Bahia to
continue to increase EBITDA based on steady passenger volumes. In
addition, we anticipate that the company will complete its
operational turnaround on a timely basis (including
liquidity-enhancing measures such as route optimization). We expect
Bahia to turn its cash flow generation to positive while continuing
to honor its financial commitments within the next 12 months.
"We could lower the rating if Bahia's liquidity headroom
unexpectedly dwindled because, for example, passenger demand falls
short of our expectation, hampering EBITDA recovery and leading to
a large free operating cash flow (FOCF) deficit and a wider
liquidity shortfall. We could also lower our rating if we consider
a distressed debt restructuring or any other specific default
scenario to be likely within 12 months."
An upgrade would depend on us being confident that the company will
report a steady recovery in EBITDA, that it will reach and sustain
positive FOCF, and it will tackle the upcoming maturities in a
timely manner, so that a liquidity shortfall appears remote.
Environmental factors are a negative consideration in S&P's credit
rating analysis of Bahia. Like other ship owners and operators, the
company is exposed to increasingly stringent greenhouse gas
emission regulations. These could lead to higher costs, as cleaner
fuels are more expensive, and accelerate capital spending on modern
eco-friendly ships or retrofits of existing vessels.
===========
S W E D E N
===========
INTRUM AB: Moody's Lowers CFR to B3, Under Review for Downgrade
---------------------------------------------------------------
Moody's Ratings downgraded Intrum AB (publ)'s (Intrum) corporate
family rating to B3 from B2 and its senior unsecured rating to Caa1
from B3 and placed the ratings on review for downgrade. Previously,
the issuer outlook was negative.
The rating action reflects Intrum's current refinancing challenges
and the firm's announcement on the appointment of advisors to
explore its refinancing options and to implement changes to its
debt stack in order to create a more sustainable long-term capital
structure[1].
RATINGS RATIONALE
The rating action reflects the increased risk of losses to Intrum's
bondholders that could result from the debt restructuring. In
Moody's view, the risk of realization of such losses is exacerbated
by currently distressed trading levels of Intrum's bonds, which
restricts the firm's access to capital markets and significantly
constrains its financial flexibility. Moody's believes the lack of
market access, particularly in light of a potential debt
restructuring, results in a heightened risk of a distressed
exchange, which could involve debt repurchases at a substantial
discount, in-line with current trading prices, or restructuring of
existing obligations, such as through the extension of debt
maturities at unfavorable terms to bondholders.
Intrum's exposure to governance risk is very high, reflecting the
rating agency's concerns related to the firm's funding challenges
and refinancing risk. Moody's reflects this risk in lowering
Intrum's governance issuer profile score to G-5 from G-4 and
accordingly the credit impact score to CIS-5 from CIS-4, indicating
that the company's risk management weaknesses have a very material
impact on the ratings.
During the ratings review, Moody's will assess the likelihood and
magnitude of potential losses that Intrum's bondholders could incur
as a result of the debt restructuring.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Upward rating pressure is unlikely given that the ratings are on
review for downgrade. Intrum's ratings could be confirmed if
Moody's concludes that the firm's bondholders are unlikely to
realize losses in excess of those levels indicated by the current
rating positioning.
Intrum's ratings will be downgraded if Moody's concludes that the
firm's bondholders will likely incur meaningful losses as a result
of the debt restructuring. In the event of a downgrade, the rating
positioning will be commensurate with the level of expected losses
on the bonds. The realization of such losses could be viewed by
Moody's as a distressed exchange and default, under its
definitions.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Finance
Companies Methodology published in November 2019.
=============
U K R A I N E
=============
VF UKRAINE: S&P Downgrades ICR to 'CCC', Outlook Negative
---------------------------------------------------------
S&P Global Ratings lowered its ratings on VF Ukraine and its debt
to 'CCC' from 'CCC+'.
The downgrade incorporates that S&P's rating on VF Ukraine can
exceed the long-term foreign currency rating on Ukraine by two
notches, as per our methodology. S&P downgraded Ukraine to 'CC' on
March 8, 2024.
The negative outlook reflects the risk of a downgrade absent any
positive developments on VF Ukraine's ability to repay the $399
million bond due in February 2025, even though S&P assumes the
company will service its US$12 million coupon due August 2024.
S&P said, "VF Ukraine faces debt restructuring risk because foreign
currency restrictions may complicate the group's ability to repay
the US$399 million bond maturing in February 2025. According to our
liquidity calculations, VF Ukraine will have the financial capacity
and willingness to repay the bond, thanks to delayed capital
expenditure (capex) or minimal local debt issuances (less than 20 %
of the outstanding bond balance). We estimate that VF Ukraine's
liquidity sources-to-uses ratio for the next 12 months will be
slightly above 1.0x. At end-September 2023, the company had
Ukrainian hryvnia (UAH) 7.2 billion of cash on its balance sheet,
of which 88% is held in hard currencies. The company benefited from
UAH0.4billion of undrawn committed bank lines, and we expect the
company to generate about UAH9 billion of cash funds from
operations in 2024. We anticipate that these sources of cash will
be sufficient to cover working capital requirements, capex, and the
Eurobond February 2025 maturity of US$399 million (about UAH16.6
billion according to our US$/UAH exchanges rate assumption).
However, the National Bank of Ukraine's restrictions on the
purchase of foreign currencies and the moratorium on cross-border
foreign currency payments outside of Ukraine might hinder VF
Ukraine's ability to repay the U.S. dollar denominated bonds. As
such, the company could consider restructuring its debt in such a
way that we would view as a distressed exchange and tantamount to
default.
"We expect VF Ukraine, or its parent NEQSOL Holding, to service the
US$12 million coupon payment due in August 2024. VF Ukraine
recently repaid US$12 million in interest payments in February, and
we expect it will repay the next US$12 million of interest payments
due in August. However, because VF Ukraine no longer has enough
cash in foreign accounts, the company will require authorization
from the National Bank of Ukraine to pay the coupon with cash held
in Ukraine. We expect it will receive approval. Alternatively, we
think VF Ukraine could receive support from its parent, NESQOL
Holding, to pay the coupon, should it not get the national bank's
authorization.
"Our rating on VF Ukraine is constrained by the 'CC' foreign
currency rating on Ukraine. We expect the Ukrainian government to
begin formal discussions on debt restructuring with its private
creditors in the short term and complete the process by mid-2024.
VF Ukraine passes our hypothetical sovereign default stress test,
leading us to cap the rating on VF Ukraine at 'CCC', two notches
above the long-term foreign currency rating on Ukraine. This is
because, at end-September 2023, the company had a strong cash
balance of UAH7.2 billion, out of which 88% was held in hard
currencies. We expect the company will generate about UAH4 billion
of annual free operating cash flow in 2023 and 2024.
"We expect VF Ukraine will continue to report resilient and strong
results in 2024, as it did for the first nine months of 2023,
despite fallout from the ongoing war. Revenue increased by 8% in
the first nine months of 2023, while the company's operating income
before depreciation and amortization remained stable at 57% thanks
to a contained contraction in the customer base (by 0.6% between
December 2022 and September 2023). At the same time, mobile average
revenue per user increased due to higher volumes of internet usage
and more users. We expect revenue to have grown 7% for the full
year, to be followed by stable revenue in 2024, with an S&P Global
Ratings-adjusted EBITDA margin declining from 57% in 2022 to still
very strong levels of an estimate 54% in 2023 and forecast 52% in
2024. We anticipate capex will increase to 23% of revenue in
2023-2024, from 18% in 2022, due to repairs of damage incurred
during the war with Russia and 4G network expansion in response to
population displacements. This will have underpinned steady, very
low adjusted leverage in 2023 at about 1.8x, according to our
estimates, increasing toward 2.0x in 2024 (from 1.7x in 2022) and
adjusted free operating cash flow to debt decreasing toward an
estimate 21% in 2023 and 18% in 2024 (from 24% in 2022)."
S&P Global Ratings notes a high degree of uncertainty about the
extent, outcome, and consequences of the Russia-Ukraine war.
Irrespective of the duration of military hostilities, related risks
are likely to remain in place for some time. S&P will update its
assumptions and estimates as the situation evolves.
The negative outlook reflects the risk of a downgrade absent any
strengthening of VF Ukraine's ability to repay the $399 million
bond due in February 2025, even though S&P assumes the company will
service the US$12 million coupon due August 2024.
S&P said, "We could lower the rating on VF Ukraine if we saw an
increased likelihood of a debt restructuring or if the August 2024
US$12 million coupon payment, contrary to our expectation, was not
serviced. We could also lower the rating if VF Ukraine's liquidity
position deteriorates significantly so that it is unable to pass
our hypothetical sovereign default stress test.
"We could revise our outlook to stable if we gain visibility on VF
Ukraine's ability to address the Eurobond maturity in February 2025
without a debt restructuring that we could view as a distressed
exchange."
===========================
U N I T E D K I N G D O M
===========================
ALUCRAFT SYSTEMS: On Brink of Administration
--------------------------------------------
Grant Prior at Construction Enquirer reports that Alucraft Systems
Ltd has filed a notice of intention to appoint an administrator.
The Staffordshire based cladding specialist started its
highest-profile project to date last May to deliver the curtain
walling, aluminium rainscreen and composite cladding to the new
Everton Football Stadium.
An update shared by the company on social media last month showed
the successful installation of the initial batch of cladding panels
on the South elevation of the stadium, Construction Enquirer
relates.
Latest results for Alucraft Systems Ltd for the year to December
31, 2022, show a turnover of GBP18.7 million generating a pre-tax
loss of GBP5.7 million while employing 82 staff, Construction
Enquirer discloses.
Alucraft Systems Ltd is one of four businesses that form the
Clarison Group of cladding specialists.
ARDONAGH GROUP: Fitch Puts Final CCC Rating to $1B Sr. Unsec. Notes
-------------------------------------------------------------------
Fitch Ratings has assigned Ardonagh Finco Limited's seven-year
EUR500 million and USD750 million senior secured notes final senior
secured instrument ratings of 'B' with a Recovery Rating of 'RR3'.
It has also assigned Ardonagh Group Finance Ltd's eight-year USD1
billion senior unsecured notes final senior unsecured instrument
ratings of 'CCC' with a Recovery Rating of 'RR6'. Fitch has also
affirmed Ardonagh Midco 2 plc's (Ardonagh) Long-Term Issuer Default
Rating (IDR) at 'B-' with a Positive Outlook.
The ratings reflect Ardonagh's organic deleveraging capacity,
supported by solid free cash flow (FCF) generation, a diversified
revenue base and its expectation that EBITDA will continue to
improve. Evidence of Fitch-defined EBITDA leverage trending down to
below 7.5x, facilitated by gross debt prepayments that reduce
interest costs, and EBITDA interest coverage remaining above 2x
could lead to a one-notch upgrade of the IDR.
KEY RATING DRIVERS
Refinancing Lengthens Maturity Profile: Ardonagh used its debt
issuance proceeds, together with new US dollar, euro and Australian
dollar term loan Bs, to refinance all of its senior unsecured
paid-in-kind (PIK) toggle notes and single unitranche term loan B
facilities and existing local facility in Australia. This extends
its debt maturities to 2031 and 2032 and improves the group's
financial flexibility and capacity for organic deleveraging,
further boosted by its expectation of positive FCF from 2025.
Acquisitions Support Wider Margin: Ardonagh has completed over 150
acquisitions since 2017, with a total enterprise value of GBP3.2
billion, in the fragmented insurance broking market. There is a
strong industrial logic for bolt-on M&A, as they are EBITDA
accretive. Reported adjusted EBITDA was expected to be GBP417
million in 2023 excluding retail, from GBP80 million in 2017, with
the reported adjusted EBITDA margin increasing to 32% from 19%.
This demonstrates a record of extracting deal-related synergies.
High Leverage: Fitch expects the company to use equity proceeds and
available cash to fund bolt-on acquisitions, which should support
organic deleveraging. Ardonagh's pro forma Fitch-defined EBITDA
leverage has remained at above 7x over the past few years, even
though shareholders have demonstrated a commitment to supporting
deleveraging, injecting GBP665 million of equity between 2021 and
2023. However, continued drawdowns on term loan facilities to fund
acquisitions have kept gross leverage high.
Improving Interest Coverage: Interest is payable on Ardonagh's term
loans on a floating-rate basis, although it will be fixed on the
new senior secured and unsecured notes. Fitch expects declining
interest costs from 2024 to gradually improve the company's
interest cover metrics and Ardonagh has the option to further
reduce debt from the proceeds of its UK retail business sale to
Markerstudy Insurance Services Limited. EBITDA interest cover above
2.0x on a sustained basis, along with improving profitability -
mainly through positive FCF - would drive further positive rating
momentum.
Diversified Portfolio: Ardonagh's acquisitions over the last five
years have significantly increased EBITDA scale and diversified its
revenue base. Pricing intervention in 2022 by the UK's Financial
Conduct Authority created tougher market conditions for policy
renewals, which saw the retail business underperform its
expectations during the year. However, by disposing of its retail
assets, Ardonagh will decrease exposure to a business unit that has
shown weaker organic growth relative to the rest of the group.
Organic EBITDA Growth: Fitch expects Ardonagh's M&A, new team hires
and cost-saving programmes to improve organic EBITDA growth in 2024
before the sale of UK retail. It has completed two transformational
deals in the last year in MDS Group and Envest. Businesses like
these allow Ardonagh to expand in new markets, realise synergies
and create opportunities for small bolt-on acquisitions. Ardonagh
has identified several cost-saving areas in its existing business,
such as IT transformation, which should also deliver EBITDA growth
in 2024, while new speciality team hires should boost organic
growth over the next two years.
Execution Risk in M&A: Ardonagh's M&A integration and cost-saving
programmes may take longer than Fitch expects, as they could demand
higher business-transformation spending and investment. Ardonagh
has demonstrated a strong record of integrating new businesses over
the last five years and has achieved sound EBITDA growth from
acquisitions and cost-saving measures. However, acquisitions of
larger businesses, such as Envest and MDS Group, carry higher
integration risk.
DERIVATION SUMMARY
Ardonagh has greater scale and a more diverse product offering than
independent European brokers, like DIOT - SIACI TopCo SAS
(B/Stable), but it does not benefit from as much exposure to the US
market as NFP Corp. (B/Rating Watch Positive). NFP is on Rating
Watch Positive following its acquisition announcement by Aon Public
Limited Company (BBB+/Negative), scheduled for completion between
mid-2024 and mid-2025.
Ardonagh's expertise in niche, high-margin products and leading
position among UK insurance brokers underpin its sustainable
business model, but higher financial risk stemming from elevated
leverage, low interest coverage metrics and the execution risk of
integrating acquisitions constrain its IDR to relatively close to
that of sector peers.
KEY ASSUMPTIONS
- Organic revenue growth of between 6%-8% between 2024 and 2026
excluding the impact of the disposal of the retail business, which
is subject to regulatory approval
- Fitch-defined EBITDA margin to increase to 31.5% by 2026
- Capex at 1%-2% of revenue per year during 2024-2026
- Bolt-on M&A funded through a mixture of debt, 2023 equity
proceeds and disposal proceeds
- No dividend or shareholder remuneration between 2024 and 2026
RECOVERY ANALYSIS
Fitch uses a going-concern approach for Ardonagh in its recovery
analysis, assuming that it would be restructured as a going concern
in the event of a bankruptcy rather than liquidated. Its analysis
assumes a post-restructuring going concern EBITDA of around GBP435
million under the current consolidation perimeter.
Fitch uses an enterprise value multiple of 5.5x to calculate a
post-restructuring valuation and assume a 10% administrative
claim.
Based on current metrics and assumptions, the waterfall analysis
generates a ranked recovery of 52% in the 'RR3' band, indicating a
'B' rating for the planned senior secured instruments, one notch
above Ardonagh's IDR, albeit with limited headroom under the 'RR3'
category (51%-70%). As a result, Fitch assumes zero recovery
expectations for the planned senior unsecured notes, in the 'RR6'
band, indicating a 'CCC' instrument rating, two notches below
Ardonagh's IDR.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- Unchanged operating and regulatory conditions with sustained
EBITDA margin stability. Positive FCF generation and a financial
policy demonstrating a commitment to reducing Fitch-defined EBITDA
leverage to below 7.5x, which could be facilitated by the use of
disposal proceeds to reduce gross debt
- Successful execution of cost-saving programmes and realisation of
deal-related synergies
- EBITDA interest coverage at above 2x on a sustained basis
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- Fitch would revise the Outlook to Stable upon further debt-funded
acquisitions or failure to improve EBITDA, keeping Fitch-defined
EBITDA leverage at above 7.5x. The Outlook would also be revised to
Stable should EBITDA interest coverage remain below 2x for a
sustained period or upon neutral to moderately negative FCF
- A downgrade could stem from consistently negative FCF and
sustained use of revolving credit facilities or other facilities to
support liquidity
- Increasing competitive pressure or operational challenges that
result in lower EBITDA margins and lead to Fitch-defined EBITDA
leverage of above 9.0x for a sustained basis
- EBITDA interest coverage of below 1.5x for a sustained period
LIQUIDITY AND DEBT STRUCTURE
Adequate Liquidity: Fitch expects Ardonagh had over GBP300 million
of available cash at end-2023 and slightly negative FCF in 2023.
Fitch expects FCF to remain negative in 2024 but to turn positive
from 2025. Following the refinancing, Ardonagh's liquidity will be
further supported by access to an undrawn super senior secured
revolving credit facility of GBP300 million maturing in 2029.
ISSUER PROFILE
Ardonagh is one of the largest diversified independent insurance
intermediaries in the UK and one the largest 20 insurance brokers
globally. Its strategy is to operate across global property and
casualty insurance and specialty broking markets.
ESG CONSIDERATIONS
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Ardonagh Finco
Limited
senior secured LT B New Rating RR3 B(EXP)
Ardonagh Group
Finance Ltd
senior
unsecured LT CCC New Rating RR6 CCC(EXP)
Ardonagh
Midco 2 plc LT IDR B- Affirmed B-
BOWTIE GERMANY: Moody's Affirms 'B3' CFR, Outlook Remains Stable
----------------------------------------------------------------
Moody's Ratings has affirmed the B3 long-term corporate family
rating and B3-PD probability of default rating of Bowtie Germany
Bidco GmbH (NextPharma or the company). At the same time, Moody's
has affirmed the B3 instrument ratings of NextPharma's senior
secured bank credit facilities, including its EUR330 million senior
secured term loan B (TLB) due in 2028 and its EUR62.4 million
senior secured revolving credit facility (RCF) due in 2027. The
outlook on all ratings remains stable.
RATINGS RATIONALE
The rating affirmation considers Moody's expectations that key
credit metrics will remain adequately positioned for a B3 rating
over the next 12-18 months. The agency anticipates top line growth
in the mid-to-high single digit range in percentage terms and
improving EBITDA margins as operating leverage will support margin
expansion given that the company invested in recruitment in 2023,
and improving product mix. Over the next 12-18 months, the agency
forecasts a Moody's-adjusted gross leverage to trend around 6x,
with improving Moody's-adjusted free cash flow (FCF) at around
break-even levels, and adequate interest coverage with a
Moody's-adjusted EBITA to interest expense of around 2x.
NextPharma's B3 rating reflects the company's good operational
track record as a medium-sized operator because of its high-quality
standards as a pharmaceutical contract development and
manufacturing organisation (CDMO), the relatively high barriers to
entry because of the capital intensity and regulated nature of the
business, and customer stickiness because of high switching costs
and the company's high share of exclusive contracts with customers,
some including take or pay terms.
The rating is constrained by NextPharma's high leverage, with a
Moody's-adjusted gross leverage of 6.9x in 2023 and limited
Moody's-adjusted FCF generation, driven by the high capital
intensity of the sector and the company's strategy to reinvest in
expansion projects that should support future growth. Although, the
agency has not considered any acquisitions during the next 12-18
months, Moody's believes that M&A could continue because the
industry is still fragmented and the company could look for
opportunities to improve its capacity, technological or
geographical footprint. This could delay deleveraging if funded
with new debt, as was the case for Asker's acquisition that closed
in March 2023, which increased leverage at a time when NextPharma
had just returned to within its rating guidance.
RATING OUTLOOK
The stable outlook reflects Moody's expectation that NextPharma's
operating performance will continue to be good over the next 12-18
months, demonstrating earnings growth, and that Moody's-adjusted
gross leverage will improve towards 6x, with continued at least
adequate liquidity, and improving cash generation. The outlook
assumes that the company will not undertake any major debt-funded
acquisitions or shareholder distributions.
LIQUIDITY
NextPharma's liquidity is adequate and supported by cash balances
of EUR18 million at the end of 2023, the EUR62.4 million RCF, of
which EUR8 million was drawn as of the end of 2023, and no
near-term debt maturities. The agency expects NextPharma's
Moody's-adjusted FCF generation to improve gradually over the next
two years to around break-even levels. FCF is mainly driven by
important capital expenditure which Moody's estimates at around 7%
of revenue and interest payments, although the company's hedging
policy provides some protection. The agency understands that growth
capital expenditure is mostly uncommitted which allows for some
flexibility in case of liquidity needs.
Under the debt documentation, RCF lenders benefit from a springing
net leverage covenant set at 9.94x and tested on a quarterly basis
when the RCF is drawn by more than 40%. Moody's expects the company
to maintain good capacity under this covenant, if tested.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Upward rating pressure could develop if NextPharma increases its
scale while maintaining solid financial performance and operating
metrics; its Moody's-adjusted leverage decreases below 5.5x on a
sustained basis; its Moody's-adjusted FCF increases towards 5%;
liquidity remains at least adequate; and its Moodys-adjusted EBITA
to interest expense remaining above 2x on a sustained basis.
Downward rating pressure could develop if industry fundamentals
become less favourable and NextPharma's operating performance
deteriorates, leading to significant margin deterioration; or the
company's Moody's-adjusted leverage remains above 6.5x beyond 2024;
or its Moody's-adjusted FCF is consistently negative or liquidity
weakens; or its Moody's-adjusted EBITA to interest expense
decreases towards 1x.
STRUCTURAL CONSIDERATIONS
The B3-PD PDR, in line with the CFR, reflects Moody's assumption of
a 50% family recovery rate, typical for covenant-lite secured loan
structures.
The B3 ratings of the TLB and the RCF reflects their pari passu
ranking, with upstream guarantees from material subsidiaries of the
NextPharma group that account for at least 80% of the group's
EBITDA. The security package consists of share pledges, intragroup
receivables and material bank accounts.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
COMPANY PROFILE
Headquartered in the UK, NextPharma provides contract
manufacturing, product development, healthcare logistics and
clinical trial services to biotechnology and pharmaceutical
companies worldwide. The company operates 10 manufacturing sites in
Germany, France, Finland, Scotland and Norway. Its core business is
developing and manufacturing prescription drugs in a wide range of
dosage forms. The company generated revenue of EUR371 million and
company-adjusted EBITDA of EUR55 million during 2023. NextPharma
has been owned by the private equity company CapVest since 2017.
CULIMETA-SAVEGUARD: Enters Administration, Halts Operations
-----------------------------------------------------------
Stephen Topping at Manchester Evening News reports that a Greater
Manchester business has temporarily ceased trading after falling
into administration.
Around 100 workers at Culimeta-Saveguard, in Tameside, are thought
to be affected, Manchester Evening News discloses.
Business restructuring partners Kerry Bailey and Lee Cause, of BDO
LLP, have been appointed as joint administrators of
Culimeta-Saveguard Limited, Manchester Evening News relates. The
business is based on Park Road, in Dukinfield.
It's understood administrators were appointed on March 15,
Manchester Evening News notes. The company manufactures specialist
acoustic and thermal insulation products for the automotive and
industrial sectors.
According to Manchester Evening News, in a statement, BDO LLP said
the business had temporarily ceased trading while administrators
consider all options, and no redundancies have been made so far.
Kerry Bailey, business restructuring partner at BDO, said: "The
Joint Administrators will seek to maximise realisations for
creditors in line with their duties.
"We are exploring the possibility of trading all or part of the
business as we seek a potential buyer to help safeguard as many
jobs as possible."
BDO says other entities in the wider Culimeta-Saveguard group,
including English Fine Cottons Limited, have not entered
administration.
EAST ONE 2024-1: Moody's Assigns (P)Ba1 Rating to Class E Notes
---------------------------------------------------------------
Moody's Ratings has assigned provisional long-term credit ratings
to Notes to be issued by East One 2024-1 PLC:
GBP [ ]M Class A Mortgage Backed Floating Rate Notes due December
2055, Assigned (P)Aaa (sf)
GBP [ ]M Class B Mortgage Backed Floating Rate Notes due December
2055, Assigned (P)Aa1 (sf)
GBP [ ]M Class C Mortgage Backed Floating Rate Notes due December
2055, Assigned (P)A1 (sf)
GBP [ ]M Class D Mortgage Backed Floating Rate Notes due December
2055, Assigned (P)Baa1 (sf)
GBP [ ]M Class E Mortgage Backed Floating Rate Notes due December
2055, Assigned (P)Ba1 (sf)
GBP [ ]M Class X Floating Rate Notes due December 2055, Assigned
(P)Ba3 (sf)
Moody's has not assigned a rating to the subordinated GBP [ ]M
Class Z Mortgage Backed Notes due December 2055 and to GBP[ ]M
Class R Notes due December 2055.
RATINGS RATIONALE
The Notes are backed by a static pool of UK non-conforming
second-lien residential mortgage loans originated by Equifinance
Limited. This deal represents the first issuance from Equifinance
Limited.
The portfolio of assets amount to approximately GBP 252.4 million
as of December 31, 2023 pool cut-off date. The transaction benefits
from a liquidity reserve fund sized at 2.25 % of the collateral
balance at closing. The liquidity reserve fund required amount will
be tracking 2.6% of the outstanding balance of the Class A Notes
and Class B Notes at the interest payment date, with excess amounts
amortising down the principal waterfall, ultimately providing
credit enhancement to Class A to Class Z notes. After the step-up
date, the reserve fund is floored at the amount as at the step up
date. The reserve fund required amount will be reduced to zero,
when its balance is sufficient to redeem Class A and Class B notes.
Credit enhancement for Class A Notes is provided by 19%
subordination at closing, the liquidity reserve fund (sized at
2.25% of the collateral balance at closing), and excess spread.
The ratings are primarily based on the credit quality of the
portfolio, the structural features of the transaction and its legal
integrity.
The transaction benefits from various credit strengths such as a
granular portfolio and an amortising liquidity reserve. However,
Moody's note that the transaction features some credit weaknesses
such as an unrated originator and servicer. Various mitigants have
been included in the transaction structure such as Homeloan
Management Limited (NR) acting as the back-up servicer to mitigate
the operational risk. To ensure payment continuity over the
transaction's lifetime, the transaction documents incorporate
estimation language whereby the cash manager Citibank, N.A., London
Branch (Aa3(cr)/P-1(cr)) can use the three most recent servicer
reports to determine the cash allocation in case no servicer report
is available.
Additionally, there is an interest rate risk mismatch between the
93.4% of loans in the pool that are fixed rate, of which 91.8%
revert to the SVR plus a contractual margin, and the Notes which
are floating rate securities with reference to compounded daily
SONIA. To mitigate this mismatch there will be a scheduled notional
fixed-floating interest rate swap provided by Citibank Europe plc
(Aa3(cr)/ P-1(cr)). The absence of the minimum margin criteria, as
well as the difference between the SVR and the SONIA-linked
liabilities was taken into account in the stressed margin vector
used in the cash flow modelling. The swap framework is in
accordance with Moody's guidelines. The collateral trigger is set
at loss of A3(cr) and the transfer trigger at loss of Baa1(cr).
Portfolio expected loss of 6%: This is higher than the UK
non-conforming RMBS sector average and is based on Moody's
assessment of the lifetime loss expectation for the pool taking
into account: (i) limited performance data ; (ii) the current
macroeconomic environment in the United Kingdom and the impact of
future interest rate rises on the performance of the mortgage
loans; and (iii) benchmarking with similar transactions in the UK
non-conforming sector.
MILAN stressed loss for this pool is 21.8%, which is higher than
the UK non-conforming RMBS sector average and follows Moody's
assessment of the loan- by-loan information, taking into account:
(i) 100% of the pool is second lien, (ii) the originator, data
quality and servicer assessment, (iii) the arrears balance (9.4% of
the total pool is in arrears) and the exposure to borrowers with
adverse credit (7.5% of borrowers are with CCJs) and (iv) the
limited historical performance data.
The principal methodology used in these ratings was "Residential
Mortgage-Backed Securitizations Methodology" published in October
2023.
The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage. Please see "Residential Mortgage-Backed Securitizations
Methodology" for further information on Moody's analysis at the
initial rating assignment and the on-going surveillance in RMBS.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that may cause an upgrade of the ratings of the notes
include significantly better than expected performance of the pool
together with an increase in credit enhancement of Notes.
Factors that would lead to a downgrade of the ratings include: (i)
an increase in the level of arrears resulting in a higher level of
losses than forecast; (ii) increased counterparty risk leading to
potential operational risk of servicing or cash management
interruptions; or (iii) economic conditions being worse than
forecast resulting in higher arrears and losses.
EEBRIA: Bought Out of Administration by Beer52
----------------------------------------------
James Beeson at The Grocer reports that online beer subscription
service Beer52 has agreed a deal to purchase "certain trade and
assets" of stricken craft beer distributor Eebria.
According to The Grocer, the deal -- terms of which were not
disclosed -- will see 16 full time employees transfer to Beer52.
It came after Eebria was placed into administration on March 19,
The Grocer relates.
Beer52, as cited by Beer52 said, said the rescue would allow Eebria
"to move forward well-capitalised, with a strong balance sheet and
a clear focus to get more craft beer into more pubs, bars, shops
and restaurants".
It added that the business would continue to trade as normal, while
"benefitting from the new owner's capabilities in operations, sales
and marketing to grow its customer base".
Founded in 2013, Eebria's online marketplace enables hospitality
and retail businesses to purchase stock directly from brewers
across the UK.
Beer52 said the platform facilitated "around GBP7 million of trade
each year", Beer52 said notes.
According to Beer52 said, in a letter to Eebria customers seen by
The Grocer, Beer52 CEO Fraser Doherty admitted that "trade
creditors are unlikely to be repaid in full for the trading period
prior to administration, as a result of debts to lenders, HMRC and
others".
He added Beer52 wanted "to do all that is possible to see the
platform thrive under our ownership".
JDL ELECTRICAL: On Verge of Administration, Ceases Operations
-------------------------------------------------------------
Charlotte Banks at Construction News reports that a York-based
mechanical, electrical and plumbing (MEP) contractor has filed a
notice of intent to appoint administrators.
JDL Electrical, Plumbing and Heating Ltd stopped trading on March
12, when its directors announced they intended to formally place
the company into administration, Construction News relates.
According to Construction News, the statement said: "Unfortunately,
it is with great sadness that JDL Electrical, Plumbing and Heating
Ltd ceased trading on [March 12].
"We will be unable to complete any outstanding works and would
recommend that you seek an alternative contractor to complete these
works.
"We are extremely sorry for the inconvenience caused and thank you
for your support over the years."
RSM UK has been appointed as provisional liquidator, Construction
News relays, citing Creditsafe.
JDL reported net liabilities of GBP77,000 in its latest set of
unaudited accounts, covering the financial year ending September
2022, Construction News discloses. Company directors chose not to
publish its most recent profit and loss account.
The 17-year-old firm offered electrical design and installation
services for commercial projects alongside people, according to its
LinkedIn page.
LIGHTHOUSE: Set to Go Into Administration
-----------------------------------------
Grant Prior at Construction Enquirer reports that modular homes
specialist Lighthouse had filed a notice of intention to appoint an
administrator.
Bosses at the Sheffield based business have told staff to continue
working from home on March 18 while they try to secure the
company's future, Construction Enquirer relates.
According to Construction Enquirer, an email sent to all staff by
CEO Tom White said: "I must now inform you that we have initiated a
Notice of Intention to appoint an administrator. This decision was
made after careful consideration of our financial situation.
"It's important to note that this action does not mean that we have
entered administration. Instead, it provides us with the necessary
time to continue our efforts to secure the future of the business.
"We understand the uncertainty and stress this situation is causing
and we want to assure you that your well-being and the future of
our team remain our top priorities.
"Discussions are ongoing and whilst we don't have all the answers
at this moment, we are committed to keeping you informed and
maintaining open communication throughout this process."
NOBLE CORP: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed Noble Corp. plc's (Noble) Long-Term
Issuer Default Rating at 'BB-'. The Rating Outlook is Stable.
Noble's rating reflects its low and improving leverage, strong
liquidity and well-positioned fleet. The company has one of the
largest fleets in the global floater market and has good revenue
visibility for 2024 and 2025, with strong contract coverage that is
reflected in its $4.6 billion backlog, up from $3.9 billion a year
ago. These strengths are offset by the high volatility in
utilization and day rates inherent in the offshore drilling
market.
The Stable Outlook is based on Fitch's expectation of broadly
stable day rates in 2024-2025 with gradual decreases thereafter.
Fleet utilization and day rates are expected to grow through 2025
before reversing modestly thereafter in line with Fitch's oil price
assumptions.
KEY RATING DRIVERS
Leader in Offshore Drilling: Fitch views Noble's large and diverse
fleet of drilling equipment as supportive of the credit. The
company owns 19 floating rigs, including 15 drillships and four
semisubmersible rigs, and 13 jackups. Noble operates in all major
offshore oil and gas basins, such as the Gulf of Mexico, South
America, West Africa, the North Sea and Southeast Asia. The
contract backlog as of Dec. 31, 2023 totaled $4.6 billion. Noble
expects to convert approximately 41% of its backlog into revenue in
2024 and 28% into revenue in 2025.
Customer Concentration: Fitch views the concentration of Noble's
backlog with Exxon Mobil Corporation and Aker BP ASA (BBB/Stable)
of approximately 58% as modestly positive. The typical concern
about customer concentration is offset somewhat by the credit
strength of these two counterparties. ExxonMobil is the
second-largest integrated oil and gas company in the world with a
credit quality commensurate with the 'aa' rating category.
In addition, the relationships with ExxonMobil and Aker BP both
operate under long-term arrangements that allow for maintenance of
market pricing and focus on areas of great importance to both of
the operators - Guyana and Suriname for ExxonMobil, and Norway for
Aker BP.
Rebound in Floater Market: The recovery in floater day rates is a
credit positive for Noble. As long-term forward oil prices started
to increase in 2021, market day rates for floaters began growing at
a fast pace and almost doubled between end-2020 and end-2022.
Noble's realized average floater day rates increased 40% in 2023 to
$382,041/day. Fitch expects a more modest improvement in day rates
in 2024 before forecasting rates to decline modestly in 2025 based
on its oil price deck. Noble's floater utilization declined from
77% to 73% in 2023 as Noble has been disciplined in
re-contracting.
Lagging Rebound in Jackup Market: Noble's exposure in the jackup
market is a modest near-term credit negative. The jackup market is
lagging the recovery occurring in the floater market with day rates
recovering slowly. Noble realized day rates increased 7% to
$128,161/day in 2023 and its utilization rate fell from 64% in 2023
from 77% the previous year. Fitch expects modest improvement in
both measures in 2024. The low cost of reactivating jackup rigs
relative the cost for floaters adds a level uncertainty to the
recovery. Noble's cash flow is much more leveraged to floaters than
jackups, with floater-generated gross margin averaging
approximately 90% of the total.
Elevated Near-Term Capex: Elevated capex in 2024 due to a high
number of Special Periodic Surveys (SPS) is manageable within cash
flow. In line with the age of vessels, Noble has more regulatorily
required SPS work to do in 2024 before declining in 2025. Capex in
2024 is expected to be $400 million-$440 million before declining
to a normal run-rate of approximately $300 million.
DERIVATION SUMMARY
Noble's offshore peers include Valaris Limited (Valaris; B+/Stable)
and Seadrill (B+/Stable). Valaris has similar scale to Noble but
has lower margins, less consistent FCF margins and higher leverage.
Seadrill is smaller than Noble, has comparable margins and is
slightly more levered. On-shore peers include Nabors Industries,
Ltd. (Nabors; B-/Stable); Precision Drilling Corporation
(Precision; B+/Positive), and KCA DEUTAG ALPHA LIMITED (KCA Deutag;
B+/Positive). All three generate lower EBITDA margins than Noble.
Precision and KCA Deutag are both smaller and more highly levered.
Nabors is of comparable size but is also more highly levered. The
onshore drilling segment, which is more stable than the offshore
segment, can withstand somewhat higher leverage.
KEY ASSUMPTIONS
- Brent oil price of $80/barrel (bbl) in 2024, $70/bbl in 2025,
$65/bbl in 2026, $65.BBL in 2027 and $60/bbl thereafter;
- EBITDA margins maintain in the mid- to high-30% range in 2024 and
2025 before returning to the mid-20% range;
- Capex elevated at $420 million in 2024 due to elevated Special
Survey work before returning to a normalized $250 million.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Sustainably stronger offshore drilling market fundamentals, as
shown by higher day rates, increased utilization, longer contract
terms and growing backlog;
- Track record of conservative financial policy that keeps gross
debt in check;
- Midcycle EBITDA leverage below 1.5x.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- A loss of material customer contracts;
- Deteriorating market fundamentals, such as a sustained decrease
in day rates and offshore rig utilization;
- A significant increase in gross debt;
- Weakening liquidity;
- Midcycle EBITDA leverage above 2.5x.
LIQUIDITY AND DEBT STRUCTURE
Ample Liquidity: Liquidity at the end of 2023 consists of $361
million of cash and $550 million available under the credit
facility which matures in 2028. Aside from the credit facility the
only other maturity is the senior notes in 2030. As long as Noble
remains disciplined regarding capital spending, acquisitions and
stock buybacks, the company is expected to have ample liquidity.
ISSUER PROFILE
Noble Corporation plc (Noble) is a leading provider of offshore
contract drilling services with operations around the globe. The
company maintains a fleet of 32 offshore rigs consisting of 12 7G
drillships, three 6G drillships, four 6G semisubmersibles, eight
harsh environment jackups and five ultra-harsh environment
jackups.
ESG CONSIDERATIONS
Noble has an ESG Relevance Score of '4' for Waste & Hazardous
Materials Management; Ecological Impacts due to the risk that a
possible offshore oil spill may affect the drilling company. This
factor has a negative impact on the credit profile, and is relevant
to the ratings in conjunction with other factors. The highest level
of ESG credit relevance is a score of '3', unless otherwise
disclosed in this section. A score of '3' means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity. Fitch's ESG Relevance Scores are not inputs
in the rating process; they are an observation on the relevance and
materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Noble Corporation plc LT IDR BB- Affirmed BB-
Noble Finance II LLC LT IDR BB- Affirmed BB-
senior unsecured LT BB- Affirmed RR4 BB-
RENEURON: Enters Administration, Explores Funding Options
---------------------------------------------------------
Sion Barry at WalesOnline reports that a life sciences firm that
has received millions in funding from the Welsh Government has been
put into administration.
Alternative Investment Market listed stem cell development firm
ReNeuron, based in Bridgend, received a GBP5 million equity
investment from the Welsh Government's GBP50 million Wales Life
Sciences Investment Fund (WLSIF) back in 2013 -- as part of a GBP25
million equity round also supported by institutional investors
Abingworth and Invesco, WalesOnline discloses.
At the same time Welsh Government also announced a GBP7.8 million
grant package to support its relocation from Guildford to Pencoed
to establish a cell manufacturing and development facility,
WalesOnline notes. The Welsh Government has been asked to clarify
whether all the grant offer was drawn down by ReNeuron and if any
other subsequent support was also provided, WalesOnline states.
Last year, the Welsh Government's flagship life sciences investment
fund was forced to write off GBP27 million and its performance was
dubbed a national embarrassment by the Welsh Conservatives,
WalesOnline relates.
According to WalesOnline, while ReNeuron was actively seeking to
raise new investment, in its interim results last November the
company said it only had a cash runway, with bank deposits of
GBP5.1 million, up until April this year.
Without being able to raise new investment that scenario has now
materialised with Stephen Cork and Mark Smith of Cork Gully LLP
having been appointed joint administrators, WalesOnline states.
Loss-making ReNeuron employs 19.
In a statement to the City, ReNeuron said that despite the
appointment of administrators it was still exploring fundraising
options, as well as being acquired, WalesOnline notes. However, it
added: "There is no guarantee that such negotiations will
successfully conclude, and should they not, any residual value to
transpire from the administration process will be distributed to
the agreed creditors and, should funds permit, the company's
shareholders with the company being dissolved thereafter."
SH STRUCTURES: Set to Go Into Administration
--------------------------------------------
Aaron Morby at Construction Enquirer reports that North
Yorkshire-based award-winning steelwork specialist SH Structures
has filed a notice of intention to appoint an administrator.
The business set up in 1992 by now chairman Simon Holden is
understood to have been touted around the market for some time.
But management failed to find a buyer for the firm despite a
formidable reputation for delivering specialist bridges and complex
steel structures, Construction Enquirer relates.
Its high-profile projects include the monumental Kelpies steel
horse-heads near Falkirk in Scotland, Hull's eye-catching Murdoch
bridge, and the PoliNations public sculpture of five giant
architectural steel trees in Birmingham.
According to most recent accounts, the firm employs 70 staff out of
its 3,000 sq m Sherburn-in-Elmet factory.
Its cash reserves in reported accounts to February 2023 show
available cash had plunged to around GBP600 from GBP311,000 at the
end of the previous year, Construction Enquirer notes.
The business has been particularly hard hit by the downturn
following on from the Covid pandemic, when it took out a GBP500,000
Government business interruption loan repayable over five years,
Construction Enquirer discloses.
STRATTON MORTGAGE 2024-2: Fitch Rates Class F Notes 'BB+(EXP)sf'
----------------------------------------------------------------
Fitch Ratings has assigned Stratton Mortgage Funding 2024-2 plc's
notes expected ratings.
The assignment of final ratings is conditional on the receipt of
final documents conforming to the information already reviewed.
Entity/Debt Rating
----------- ------
Stratton Mortgage
Funding 2024-2 plc
A LT AAA(EXP)sf Expected Rating
B LT AA+(EXP)sf Expected Rating
C LT A+(EXP)sf Expected Rating
D LT BBB+(EXP)sf Expected Rating
E LT BBB-(EXP)sf Expected Rating
F LT BB+(EXP)sf Expected Rating
X1 LT NR(EXP)sf Expected Rating
X2 LT NR(EXP)sf Expected Rating
Z LT NR(EXP)sf Expected Rating
TRANSACTION SUMMARY
This is a securitisation of non-prime owner-occupied (OO) and
buy-to-let mortgages backed by properties in the UK. The mortgages
were predominantly originated by GMAC-RFC, Irish Permanent Isle of
Man, Platform Homeloans and Rooftop Mortgages and were previously
securitised in the Stratton Mortgage Funding 2021-1 plc
transaction. The sponsor is Burlington Loan Management Designated
Activity Company.
KEY RATING DRIVERS
Seasoned Loans: About 99% of loans in the pool were originated
between 2003 and 2008. The pool has benefited from a considerable
degree of house price indexation, with a weighted average (WA)
indexed current loan to value (LTV) of 47.4%, leading to a WA
sustainable LTV of 59.2%. The OO loans, which make up 64.6% of the
pool, contain a high proportion of interest-only loans (87.2%)
Arrears and Non-performing loans: Total arrears were 33.1% as at
January 2024 pool cut date. Also, Fitch considered 5.9% of loans in
the pool to be non-performing, as the borrowers have not made any
payment in the last three months. Fitch did not classify the
portfolio as non-performing and applied its UK RMBS Rating criteria
in its analysis. However, Fitch assumed no interest payments are
made by borrowers for these loans, which reduces available revenue
funds in the transaction.
Ratings Lower than MIR: Fitch performed a forward-looking analysis
by running scenarios assuming lower recovery rates and therefore
increased losses at all rating levels, to account for observed
weaker than expected recovery proceeds below those envisaged by its
criteria assumptions. The assigned rating for the class B notes is
one notch lower than the model-implied rating (MIR) and in line
with the UK RMBS Rating Criteria. The class C-F notes' ratings are
three notches below the MIR, which constitutes a variation from the
UK RMBS Rating Criteria.
Rental Income Not Provided: Rental income figures for the 41.9% of
BTL loans was not provided to Fitch for its asset analysis. Fitch
has assumed the minimum permissible rental income for the BTL loans
based on the originators' lending criteria at the time of
origination, using conservative assumptions for the interest rate
assessment.
Weak Representations and Warranties Framework: The seller provides
the majority of representations and warranties Fitch expects in a
UK RMBS transaction, but many are qualified by awareness on the
part of the seller. Protection for R&W breaches is limited to the
seller's obligation to repurchase mortgage loans or make an
indemnity payment in lieu of such repurchase. The seller is not a
rated entity and may have limited resources available to indemnify
the issuer or to repurchase loans on a breach of the R&Ws.
Fitch views this framework as weak compared with typical UK RMBS,
but the seasoning of the assets and the absence of warranty
breaches in the Stratton Mortgage Funding 2021-1 plc transaction,
makes the likelihood of the issuer suffering a material loss
sufficiently remote.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
The transaction's performance may be affected by changes in market
conditions and economic environment. Weakening economic performance
is strongly correlated to increasing levels of delinquencies and
defaults that could reduce credit enhancement (CE) available to the
notes.
Additionally, unanticipated declines in recoveries could also
result from lower net proceeds, which may make certain notes
susceptible to negative rating action depending on the extent of
the decline in recoveries. Fitch found that a 15% increase in the
weighted average foreclosure frequency (WAFF) and a 15% decrease in
the weighted average recovery rate (WARR) indicates a model-implied
downgrade of one notch for the class A, D, E and F notes. The
sensitivity had no impact on the class B and C notes.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Stable to improved asset performance driven by stable delinquencies
and defaults would lead to increasing CE and potentially upgrades.
Fitch found a decrease in the WAFF of 15% and an increase in the
WARR of 15% indicates model implied upgrades of six notches for the
class D, E and F notes, three notches for the class C notes and one
notch for the class B notes. The class A notes are at the highest
achievable rating on Fitch's scale and cannot be upgraded.
CRITERIA VARIATION
Fitch performed a forward looking analysis to account for observed
weaker recovery rates in the asset pool than suggested by the
resiglobal: UK model. The assigned ratings for the notes were based
on a 15% recovery rate haircut, which translates to a rating that
is three notches lower than the MIR for the class C to F notes
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Fitch was provided with Form ABS Due Diligence-15E ("Form 15E") as
prepared by Deloitte LLP. The third-party due diligence described
in Form 15E focused on validating loan level data against the
relevant primary sources. Fitch considered this information in its
analysis and it did not have an effect on Fitch's analysis or
conclusions.
DATA ADEQUACY
Fitch reviewed the results of a third-party assessment conducted on
the asset portfolio information, and concluded that there were no
findings that affected the rating analysis.
Overall, and together with the assumptions referred to above,
Fitch's assessment of the asset pool information relied upon for
the agency's rating analysis according to its applicable rating
methodologies indicates that it is reliable.
ESG CONSIDERATIONS
Stratton Mortgage Funding 2024-2 Plc has an ESG Relevance Score of
'4' for Customer Welfare - Fair Messaging, Privacy & Data Security
due to the high proportion of interest-only loans in legacy OO
mortgages, which has a negative impact on the credit profile, and
is relevant to the ratings in conjunction with other factors.
Stratton Mortgage Funding 2024-2 Plc has an ESG Relevance Score of
'4' for Human Rights, Community Relations, Access & Affordability
due to a large proportion of the pool containing OO loans advanced
with limited affordability checks, which has a negative impact on
the credit profile, and is relevant to the ratings in conjunction
with other factors.
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.
===============
X X X X X X X X
===============
[*] BOND PRICING: For the Week March 18 to March 22, 2024
---------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
Codere Finance 2 Luxe 11.000 9/30/2026 EUR 30.000
Codere Finance 2 Luxe 12.750 11/30/2027 EUR 2.000
Kvalitena AB publ 10.067 4/2/2024 SEK 33.750
Solocal Group 10.940 3/15/2025 EUR 18.506
R-Logitech Finance SA 10.250 9/26/2027 EUR 15.406
Caybon Holding AB 10.566 3/3/2025 SEK 46.349
YA Holding AB 12.758 12/17/2024 SEK 15.025
Codere Finance 2 Luxe 13.625 11/30/2027 USD 2.001
Ilija Batljan Invest 10.768 SEK 3.281
IOG Plc 13.428 9/20/2024 EUR 10.000
UkrLandFarming PLC 10.875 3/26/2018 USD 4.101
Tinkoff Bank JSC Via 11.002 USD 43.002
Turkiye Government Bo 10.400 10/13/2032 TRY 53.000
Codere Finance 2 Luxe 13.625 11/30/2027 USD 2.001
Solocal Group 10.940 3/15/2025 EUR 8.433
Bakkegruppen AS 11.700 2/3/2025 NOK 46.468
Oscar Properties Hold 11.317 7/5/2024 SEK 3.332
Privatbank CJSC Via U 10.250 1/23/2018 USD 3.436
Bilt Paper BV 10.360 USD 1.491
Immigon Portfolioabba 10.258 EUR 9.812
Bourbon Corp SA 11.652 EUR 1.377
Codere Finance 2 Luxe 11.000 9/30/2026 EUR 30.000
Plusplus Capital Fina 11.000 7/29/2026 EUR 10.563
Offentliga Hus I Nord 10.924 SEK 44.027
Avangardco Investment 10.000 10/29/2018 USD 0.108
Saderea DAC 12.500 11/30/2026 USD 44.000
Virgolino de Oliveira 10.500 1/28/2018 USD 0.010
Sidetur Finance BV 10.000 4/20/2016 USD 0.223
Virgolino de Oliveira 11.750 2/9/2022 USD 0.685
Virgolino de Oliveira 10.500 1/28/2018 USD 0.010
Privatbank CJSC Via U 10.875 2/28/2018 USD 3.954
Marginalen Bank Banka 13.068 SEK 45.000
Transcapitalbank JSC 10.000 USD 1.450
Goldman Sachs Interna 16.288 3/17/2027 USD 25.620
Bulgaria Steel Financ 12.000 5/4/2013 EUR 0.216
Privatbank CJSC Via U 11.000 2/9/2021 USD 1.000
Tonon Luxembourg SA 12.500 5/14/2024 USD 0.010
Phosphorus Holdco PLC 10.000 4/1/2019 GBP 0.375
Codere Finance 2 Luxe 12.750 11/30/2027 EUR 2.000
Societe Generale SA 16.000 8/1/2024 USD 30.600
KPNQwest NV 10.000 3/15/2012 EUR 0.894
NTRP Via Interpipe Lt 10.250 8/2/2017 USD 1.003
Societe Generale SA 15.000 8/30/2024 USD 18.300
Societe Generale SA 16.000 7/3/2024 USD 28.500
Societe Generale SA 15.360 11/8/2024 USD 24.400
Societe Generale SA 16.000 8/1/2024 USD 13.800
Leonteq Securities AG 12.490 7/10/2024 USD 35.270
Societe Generale SA 16.000 8/30/2024 USD 27.500
Societe Generale SA 15.000 10/31/2024 USD 49.800
UBS AG/London 13.750 7/1/2024 CHF 33.700
Societe Generale SA 15.000 8/1/2024 USD 18.700
Societe Generale SA 21.000 12/26/2025 USD 28.800
Virgolino de Oliveira 10.875 1/13/2020 USD 36.000
Turkiye Ihracat Kredi 12.540 9/14/2028 TRY 48.488
Societe Generale SA 11.000 7/14/2026 USD 13.800
Credit Suisse AG/Lond 20.000 11/29/2024 USD 16.140
Virgolino de Oliveira 11.750 2/9/2022 USD 0.685
Zurcher Kantonalbank 24.673 6/28/2024 CHF 44.870
Evocabank CJSC 11.000 9/28/2024 AMD 10.000
Banco Espirito Santo 10.000 12/6/2021 EUR 0.063
Societe Generale SA 23.510 6/23/2026 USD 7.600
Nordea Bank Abp 10.170 1/20/2029 SEK 51.940
Tailwind Energy Chino 12.500 9/27/2019 USD 1.500
Societe Generale SA 16.000 7/3/2024 USD 21.800
Zurcher Kantonalbank 22.000 8/6/2024 USD 48.100
Russian Railways JSC 8.690 2/28/2040 RUB 50.000
Lehman Brothers Treas 10.000 6/11/2038 JPY 0.100
Lehman Brothers Treas 11.750 3/1/2010 EUR 0.100
Bilt Paper BV 10.360 USD 1.491
Leonteq Securities AG 12.000 4/23/2024 CHF 49.480
Leonteq Securities AG 25.000 5/2/2024 CHF 27.660
Virgolino de Oliveira 10.875 1/13/2020 USD 36.000
UBS AG/London 18.750 5/31/2024 CHF 32.250
Evocabank CJSC 11.000 9/27/2025 AMD 9.500
Bank Vontobel AG 18.000 6/28/2024 CHF 36.500
ACBA Bank OJSC 11.500 3/1/2026 AMD 0.000
Swissquote Bank SA 25.390 5/30/2024 CHF 36.430
Armenian Economy Deve 11.000 10/3/2025 AMD 9.900
Tonon Luxembourg SA 12.500 5/14/2024 USD 0.010
Ukraine Government Bo 11.000 3/24/2037 UAH 26.205
Petromena ASA 10.850 11/19/2018 USD 0.622
Finca Uco Cjsc 12.000 2/10/2025 AMD 0.000
Societe Generale SA 13.010 11/14/2024 USD 27.000
Finca Uco Cjsc 12.500 6/21/2024 AMD 0.000
Leonteq Securities AG 14.000 4/30/2024 CHF 12.820
Societe Generale SA 15.110 10/31/2024 USD 28.000
Finca Uco Cjsc 13.000 5/30/2025 AMD 0.000
Finca Uco Cjsc 13.000 11/16/2024 AMD 0.000
Russian Railways JSC 8.690 2/28/2040 RUB 50.000
Inecobank CJSC 10.000 4/28/2025 AMD 10.285
Societe Generale SA 20.000 11/28/2025 USD 6.667
Swissquote Bank SA 23.990 7/3/2024 CHF 43.280
Raiffeisen Schweiz Ge 20.000 7/24/2024 CHF 49.220
Leonteq Securities AG 24.000 6/19/2024 CHF 41.210
Ukraine Government Bo 12.500 4/27/2029 UAH 40.773
Credit Agricole Corpo 10.200 12/13/2027 TRY 44.420
Phosphorus Holdco PLC 10.000 4/1/2019 GBP 0.375
Privatbank CJSC Via U 10.875 2/28/2018 USD 3.954
UkrLandFarming PLC 10.875 3/26/2018 USD 4.101
Raiffeisen Switzerlan 20.000 5/8/2024 EUR 47.685
Ukraine Government Bo 10.570 5/10/2027 UAH 46.853
Bulgaria Steel Financ 12.000 5/4/2013 EUR 0.216
Lehman Brothers Treas 16.000 10/28/2008 USD 0.100
Credit Suisse AG/Lond 29.000 3/28/2024 USD 17.898
Leonteq Securities AG 26.000 7/31/2024 CHF 40.590
Leonteq Securities AG 24.000 4/11/2024 CHF 30.030
Swissquote Bank SA 20.120 6/20/2024 CHF 13.370
Raiffeisen Schweiz Ge 15.500 4/11/2024 CHF 31.860
Ukraine Government Bo 11.000 4/24/2037 UAH 28.667
Ukraine Government Bo 10.360 11/10/2027 UAH 43.040
Lehman Brothers Treas 10.442 11/22/2008 CHF 0.100
BLT Finance BV 12.000 2/10/2015 USD 10.500
PA Resources AB 13.500 3/3/2016 SEK 0.124
Societe Generale SA 15.840 8/30/2024 USD 14.300
Converse Bank 10.500 5/22/2024 AMD 10.317
UBS AG/London 19.000 7/12/2024 CHF 43.450
Bank Vontobel AG 25.000 7/22/2024 USD 33.400
Ukraine Government Bo 11.000 2/16/2037 UAH 26.237
ObedinenieAgroElita O 13.750 5/22/2024 RUB 19.640
Raiffeisen Switzerlan 10.500 7/11/2024 USD 23.750
JP Morgan Structured 15.500 11/4/2024 USD 30.480
Leonteq Securities AG 20.000 8/7/2024 CHF 19.810
DZ Bank AG Deutsche Z 16.000 6/28/2024 EUR 36.820
UniCredit Bank GmbH 19.300 12/31/2024 EUR 41.780
Leonteq Securities AG 30.000 8/7/2024 CHF 35.550
UniCredit Bank GmbH 18.200 6/28/2024 EUR 36.300
UniCredit Bank GmbH 19.500 6/28/2024 EUR 35.200
UniCredit Bank GmbH 18.500 12/31/2024 EUR 42.400
Raiffeisen Schweiz Ge 20.000 8/7/2024 CHF 34.940
Leonteq Securities AG 28.000 9/5/2024 CHF 45.900
HSBC Trinkaus & Burkh 17.000 6/28/2024 EUR 37.430
Leonteq Securities AG 14.000 7/3/2024 CHF 16.240
UniCredit Bank GmbH 13.900 11/22/2024 EUR 44.950
UniCredit Bank GmbH 14.300 8/23/2024 EUR 40.720
HSBC Trinkaus & Burkh 17.600 9/27/2024 EUR 36.080
HSBC Trinkaus & Burkh 15.100 12/30/2024 EUR 39.590
UniCredit Bank GmbH 10.700 2/3/2025 EUR 24.510
HSBC Trinkaus & Burkh 12.500 12/30/2024 EUR 41.920
HSBC Trinkaus & Burkh 10.800 12/30/2024 EUR 44.220
UniCredit Bank GmbH 10.700 2/17/2025 EUR 24.790
BNP Paribas SA 10.000 7/26/2027 USD 10.350
Leonteq Securities AG 24.000 7/3/2024 CHF 38.410
HSBC Trinkaus & Burkh 18.300 9/27/2024 EUR 43.540
Sintekom TH OOO 13.000 1/23/2025 RUB 16.900
Swissquote Bank SA 27.700 9/4/2024 CHF 51.020
UBS AG/London 10.000 5/14/2024 USD 9.975
HSBC Trinkaus & Burkh 15.500 6/27/2025 EUR 40.110
EFG International Fin 10.300 8/23/2024 USD 31.670
Societe Generale SA 16.000 7/3/2024 USD 24.400
Landesbank Baden-Wuer 11.000 6/28/2024 EUR 30.460
Corner Banca SA 13.000 4/3/2024 CHF 35.200
UBS AG/London 13.000 9/30/2024 CHF 20.340
Nordea Bank Abp 10.000 7/20/2027 SEK 51.250
Bank Vontobel AG 13.500 1/8/2025 CHF 27.000
UBS AG/London 16.500 7/22/2024 CHF 19.340
UBS AG/London 21.600 8/2/2027 SEK 50.120
UniCredit Bank GmbH 14.500 11/22/2024 EUR 42.040
UniCredit Bank GmbH 13.800 2/28/2025 EUR 45.300
UniCredit Bank GmbH 14.700 8/23/2024 EUR 37.580
UniCredit Bank GmbH 14.500 2/28/2025 EUR 44.490
UniCredit Bank GmbH 10.300 9/27/2024 EUR 31.370
UniCredit Bank GmbH 19.400 6/28/2024 EUR 32.700
UniCredit Bank GmbH 13.800 9/27/2024 EUR 38.480
UniCredit Bank GmbH 18.000 9/27/2024 EUR 35.500
Leonteq Securities AG 24.000 1/13/2025 CHF 36.950
UniCredit Bank GmbH 13.700 9/27/2024 EUR 41.770
UniCredit Bank GmbH 14.800 9/27/2024 EUR 40.560
UniCredit Bank GmbH 14.800 9/27/2024 EUR 37.540
UniCredit Bank GmbH 15.800 9/27/2024 EUR 36.720
UniCredit Bank GmbH 16.900 9/27/2024 EUR 36.060
UniCredit Bank GmbH 19.100 9/27/2024 EUR 35.030
UniCredit Bank GmbH 20.000 12/31/2024 EUR 39.260
Leonteq Securities AG 21.000 8/14/2024 CHF 38.750
Nordea Bank Abp 10.100 7/20/2028 SEK 53.330
Bank Vontobel AG 20.500 11/4/2024 CHF 44.400
Leonteq Securities AG 22.000 8/14/2024 CHF 44.520
Bank Vontobel AG 12.000 9/30/2024 EUR 21.900
UBS AG/London 14.250 8/19/2024 CHF 28.960
UBS AG/London 18.000 4/8/2024 CHF 38.550
UniCredit Bank GmbH 10.500 9/23/2024 EUR 31.190
Fast Credit Capital U 11.500 7/13/2024 AMD 0.000
Armenian Economy Deve 10.500 5/4/2025 AMD 0.000
UniCredit Bank GmbH 16.550 8/18/2025 USD 32.600
Leonteq Securities AG 25.000 3/27/2024 CHF 23.950
Leonteq Securities AG 18.000 3/27/2024 CHF 28.020
Zurcher Kantonalbank 15.000 4/18/2024 CHF 46.150
BNP Paribas Emissions 16.000 6/27/2024 EUR 48.240
BNP Paribas Emissions 13.000 6/27/2024 EUR 49.060
Vontobel Financial Pr 24.750 6/28/2024 EUR 31.080
Bank Vontobel AG 18.000 7/19/2024 CHF 37.600
Leonteq Securities AG 27.000 7/24/2024 CHF 17.830
Raiffeisen Switzerlan 20.000 6/19/2024 CHF 33.290
Leonteq Securities AG 19.000 6/10/2024 CHF 31.110
Leonteq Securities AG 15.000 4/30/2024 CHF 43.750
Leonteq Securities AG 24.000 3/27/2024 CHF 24.000
ACBA Bank OJSC 11.000 12/1/2025 AMD 10.022
Leonteq Securities AG 23.000 3/27/2024 CHF 23.480
Swissquote Bank SA 25.080 6/12/2024 CHF 34.870
Raiffeisen Switzerlan 16.000 6/12/2024 CHF 26.560
Vontobel Financial Pr 19.500 6/28/2024 EUR 49.030
Raiffeisen Switzerlan 18.000 6/12/2024 CHF 34.320
Raiffeisen Schweiz Ge 20.000 6/12/2024 CHF 35.330
Zurcher Kantonalbank 13.000 6/7/2024 CHF 43.910
Zurcher Kantonalbank 17.500 6/7/2024 CHF 46.520
Bank Vontobel AG 21.000 6/10/2024 CHF 32.700
Basler Kantonalbank 18.000 6/17/2024 CHF 31.390
HSBC Trinkaus & Burkh 17.300 9/27/2024 EUR 38.400
HSBC Trinkaus & Burkh 13.400 12/30/2024 EUR 43.350
Leonteq Securities AG 22.000 4/3/2024 CHF 28.280
Corner Banca SA 24.000 4/3/2024 CHF 25.940
Zurcher Kantonalbank 21.000 5/17/2024 CHF 45.740
Vontobel Financial Pr 21.000 6/28/2024 EUR 46.620
Vontobel Financial Pr 18.000 6/28/2024 EUR 48.660
Swissquote Bank SA 26.980 6/5/2024 CHF 33.140
Leonteq Securities AG 27.000 5/30/2024 CHF 13.890
Leonteq Securities AG 28.000 5/30/2024 CHF 36.130
Bank Vontobel AG 24.000 3/25/2024 CHF 22.500
Bank Vontobel AG 20.750 6/24/2024 CHF 74.900
Leonteq Securities AG 15.000 4/3/2024 CHF 12.980
Leonteq Securities AG 24.000 4/3/2024 CHF 21.630
Leonteq Securities AG 21.000 6/5/2024 CHF 35.320
Raiffeisen Schweiz Ge 19.500 6/6/2024 CHF 36.200
Zurcher Kantonalbank 18.000 3/28/2024 CHF 46.460
Zurcher Kantonalbank 24.250 3/28/2024 USD 36.910
Raiffeisen Schweiz Ge 20.000 4/3/2024 CHF 24.970
Raiffeisen Schweiz Ge 18.000 4/3/2024 CHF 35.190
UniCredit Bank GmbH 13.200 6/28/2024 EUR 47.910
UniCredit Bank GmbH 18.000 6/28/2024 EUR 43.440
UniCredit Bank GmbH 19.800 6/28/2024 EUR 39.810
Raiffeisen Switzerlan 19.000 3/27/2024 CHF 31.370
UBS AG/London 21.250 4/2/2024 CHF 20.320
Ameriabank CJSC 10.000 2/20/2025 AMD 9.340
Bank Vontobel AG 23.000 6/4/2024 CHF 34.800
Leonteq Securities AG 18.000 9/11/2024 CHF 22.760
Raiffeisen Schweiz Ge 20.000 9/11/2024 CHF 40.540
Zurcher Kantonalbank 15.000 7/12/2024 CHF 49.360
UBS AG/London 19.500 7/19/2024 CHF 40.500
Zurcher Kantonalbank 12.000 4/26/2024 EUR 49.130
UBS AG/London 18.750 4/26/2024 CHF 24.880
Raiffeisen Schweiz Ge 18.400 5/2/2024 CHF 26.630
Bank Vontobel AG 10.500 7/29/2024 EUR 48.200
Bank Vontobel AG 23.500 4/29/2024 CHF 26.600
UBS AG/London 12.000 11/4/2024 EUR 50.300
Basler Kantonalbank 26.000 5/8/2024 CHF 30.830
Bank Vontobel AG 22.000 7/1/2024 CHF 40.600
Basler Kantonalbank 24.000 7/5/2024 CHF 42.030
Erste Group Bank AG 14.500 8/2/2024 EUR 51.550
UBS AG/London 14.250 7/12/2024 EUR 16.000
Leonteq Securities AG 20.000 8/28/2024 CHF 20.720
UniCredit Bank GmbH 14.700 11/22/2024 EUR 43.740
UniCredit Bank GmbH 17.800 6/28/2024 EUR 31.200
UniCredit Bank GmbH 19.200 6/28/2024 EUR 30.540
UniCredit Bank GmbH 19.700 12/31/2024 EUR 37.370
Leonteq Securities AG 24.000 5/17/2024 CHF 54.000
EFG International Fin 15.000 7/12/2024 CHF 46.670
Nordea Bank Abp 10.910 7/20/2029 SEK 52.540
Leonteq Securities AG 24.000 5/22/2024 CHF 36.880
Leonteq Securities AG 24.000 6/5/2024 CHF 36.230
Leonteq Securities AG 21.000 5/22/2024 USD 26.550
Vontobel Financial Pr 16.500 6/28/2024 EUR 45.500
Basler Kantonalbank 17.000 7/19/2024 CHF 40.570
Leonteq Securities AG 26.000 5/22/2024 CHF 29.630
National Mortgage Co 12.000 3/30/2026 AMD 0.000
Leonteq Securities AG 28.000 6/5/2024 CHF 32.760
Leonteq Securities AG 22.000 4/17/2024 CHF 28.750
Leonteq Securities AG 26.000 4/17/2024 CHF 27.150
Swissquote Bank SA 21.550 4/17/2024 CHF 36.700
Leonteq Securities AG 24.000 7/17/2024 CHF 34.170
Leonteq Securities AG 20.000 5/2/2024 CHF 25.750
Vontobel Financial Pr 10.750 6/28/2024 EUR 47.600
Raiffeisen Switzerlan 17.500 5/30/2024 CHF 37.640
Raiffeisen Switzerlan 16.000 5/22/2024 CHF 25.670
Raiffeisen Switzerlan 20.000 5/22/2024 CHF 35.770
UniCredit Bank GmbH 13.400 9/27/2024 EUR 43.570
UBS AG/London 25.000 7/12/2024 CHF 40.850
Bank Julius Baer & Co 13.600 6/17/2024 CHF 49.400
Bank Julius Baer & Co 15.300 6/17/2024 EUR 49.450
Raiffeisen Schweiz Ge 16.000 4/18/2024 CHF 35.700
Vontobel Financial Pr 14.500 6/28/2024 EUR 47.910
Vontobel Financial Pr 12.000 6/28/2024 EUR 50.350
Vontobel Financial Pr 19.500 6/28/2024 EUR 43.880
Vontobel Financial Pr 11.000 6/28/2024 EUR 39.540
DZ Bank AG Deutsche Z 16.900 6/28/2024 EUR 47.680
Ist Saiberian Petrole 14.000 12/28/2024 RUB 9.930
UniCredit Bank GmbH 14.300 6/28/2024 EUR 50.420
Bank Vontobel AG 10.000 9/2/2024 EUR 48.700
Bank Vontobel AG 22.000 5/31/2024 CHF 21.800
Leonteq Securities AG 19.000 6/3/2024 CHF 49.680
Raiffeisen Switzerlan 10.800 6/5/2024 EUR 50.410
Bank Julius Baer & Co 12.720 2/17/2025 CHF 39.100
UBS AG/London 10.000 3/23/2026 USD 27.530
Leonteq Securities AG 25.000 9/5/2024 EUR 45.730
Swissquote Bank SA 29.000 6/4/2024 CHF 40.390
Leonteq Securities AG 24.000 9/4/2024 CHF 44.860
UniCredit Bank GmbH 19.100 12/31/2024 EUR 39.550
Leonteq Securities AG 22.000 9/18/2024 CHF 52.580
UniCredit Bank GmbH 17.000 6/28/2024 EUR 27.910
UniCredit Bank GmbH 19.500 6/28/2024 EUR 26.990
DZ Bank AG Deutsche Z 23.200 6/28/2024 EUR 47.040
Leonteq Securities AG 30.000 5/8/2024 CHF 29.770
Swissquote Bank SA 16.380 7/31/2024 CHF 16.490
Basler Kantonalbank 18.000 6/21/2024 CHF 35.220
UniCredit Bank GmbH 18.800 12/31/2024 EUR 37.530
Bank Vontobel AG 20.000 6/26/2024 CHF 31.900
Bank Vontobel AG 13.000 6/26/2024 CHF 11.700
UniCredit Bank GmbH 18.000 12/31/2024 EUR 34.670
Raiffeisen Schweiz Ge 20.000 9/25/2024 CHF 30.070
UniCredit Bank GmbH 15.800 6/28/2024 EUR 28.470
UniCredit Bank GmbH 18.200 6/28/2024 EUR 27.410
DZ Bank AG Deutsche Z 10.300 4/26/2024 EUR 44.900
UBS AG/London 18.750 4/15/2024 CHF 22.360
UniCredit Bank GmbH 17.200 12/31/2024 EUR 34.800
UniCredit Bank GmbH 18.800 12/31/2024 EUR 34.590
UniCredit Bank GmbH 19.600 12/31/2024 EUR 34.550
UniCredit Bank GmbH 15.000 8/23/2024 EUR 39.270
Vontobel Financial Pr 18.000 9/27/2024 EUR 29.960
Zurcher Kantonalbank 15.000 4/3/2024 CHF 45.100
Swissquote Bank SA 22.120 4/11/2024 CHF 33.490
Swissquote Bank SA 21.060 4/11/2024 CHF 13.490
Swissquote Bank SA 27.050 7/31/2024 CHF 45.090
Raiffeisen Switzerlan 20.000 5/10/2024 CHF 37.310
Leonteq Securities AG 24.000 8/14/2024 CHF 41.500
Basler Kantonalbank 22.000 9/6/2024 CHF 41.600
HSBC Trinkaus & Burkh 18.750 9/27/2024 EUR 32.760
UBS AG/London 16.000 4/19/2024 CHF 31.250
HSBC Trinkaus & Burkh 11.250 6/27/2025 EUR 42.770
HSBC Trinkaus & Burkh 15.000 6/28/2024 EUR 33.900
HSBC Trinkaus & Burkh 20.250 6/28/2024 EUR 28.790
HSBC Trinkaus & Burkh 17.500 12/30/2024 EUR 36.320
Leonteq Securities AG 26.000 7/3/2024 CHF 41.290
Swissquote Bank SA 24.040 9/11/2024 CHF 42.730
Leonteq Securities AG 22.000 9/11/2024 CHF 41.150
Leonteq Securities AG 20.000 7/3/2024 CHF 18.340
Leonteq Securities AG 20.000 7/3/2024 CHF 41.610
Societe Generale SA 15.000 9/29/2025 USD 11.300
Bank Vontobel AG 10.000 8/19/2024 CHF 13.900
Bank Vontobel AG 19.000 4/9/2024 CHF 16.200
HSBC Trinkaus & Burkh 19.000 6/28/2024 EUR 31.310
HSBC Trinkaus & Burkh 11.000 6/28/2024 EUR 39.570
Leonteq Securities AG 28.000 8/21/2024 CHF 41.310
Landesbank Baden-Wuer 15.000 8/23/2024 EUR 39.110
Leonteq Securities AG 22.000 8/7/2024 CHF 38.650
Leonteq Securities AG 24.000 8/21/2024 CHF 42.770
Raiffeisen Switzerlan 12.300 8/21/2024 CHF 17.500
DZ Bank AG Deutsche Z 11.800 9/27/2024 EUR 49.630
Vontobel Financial Pr 13.500 6/28/2024 EUR 49.210
Vontobel Financial Pr 16.000 6/28/2024 EUR 46.730
Leonteq Securities AG 23.000 5/15/2024 CHF 41.360
Vontobel Financial Pr 19.000 6/28/2024 EUR 44.860
Basler Kantonalbank 21.000 7/5/2024 CHF 41.430
Corner Banca SA 23.000 8/21/2024 CHF 44.590
Leonteq Securities AG 24.000 7/10/2024 CHF 43.540
Citigroup Global Mark 14.650 7/22/2024 HKD 36.775
Raiffeisen Switzerlan 20.000 7/10/2024 CHF 40.740
Raiffeisen Schweiz Ge 20.000 8/28/2024 CHF 23.170
Swissquote Bank SA 26.120 7/10/2024 CHF 44.260
Swissquote Bank SA 23.200 8/28/2024 CHF 44.600
Leonteq Securities AG 22.000 8/28/2024 CHF 45.840
Vontobel Financial Pr 11.000 6/28/2024 EUR 45.880
Vontobel Financial Pr 14.000 6/28/2024 EUR 46.620
UniCredit Bank GmbH 19.300 12/31/2024 EUR 40.700
Leonteq Securities AG 27.600 6/26/2024 CHF 32.020
Leonteq Securities AG 21.600 6/26/2024 CHF 14.890
Vontobel Financial Pr 12.500 6/28/2024 EUR 46.250
Leonteq Securities AG 21.000 7/17/2024 CHF 45.860
Raiffeisen Switzerlan 20.000 6/26/2024 CHF 34.640
UniCredit Bank GmbH 19.500 12/31/2024 EUR 44.310
Swissquote Bank SA 26.040 7/17/2024 CHF 45.580
Leonteq Securities AG 23.000 6/26/2024 CHF 32.760
Leonteq Securities AG 20.000 9/26/2024 USD 33.130
Bank Vontobel AG 15.500 11/18/2024 CHF 41.000
Corner Banca SA 18.500 9/23/2024 CHF 18.410
UniCredit Bank GmbH 19.800 6/28/2024 EUR 33.990
Swissquote Bank SA 21.320 7/17/2024 CHF 46.000
BNP Paribas Issuance 19.000 9/18/2026 EUR 0.820
BNP Paribas Issuance 20.000 9/18/2026 EUR 31.500
Leonteq Securities AG 23.000 12/27/2024 CHF 36.930
EFG International Fin 11.120 12/27/2024 EUR 30.070
UniCredit Bank GmbH 11.900 6/28/2024 EUR 49.510
UniCredit Bank GmbH 18.900 6/28/2024 EUR 41.510
Bank Vontobel AG 25.500 4/3/2024 CHF 25.700
Bank Vontobel AG 19.000 4/3/2024 CHF 34.700
Leonteq Securities AG 24.000 7/10/2024 CHF 38.470
Leonteq Securities AG 26.000 7/10/2024 CHF 39.580
UBS AG/London 13.500 8/15/2024 CHF 47.150
DZ Bank AG Deutsche Z 11.200 6/28/2024 EUR 43.320
Bank Vontobel AG 12.000 6/10/2024 CHF 42.600
Citigroup Global Mark 25.530 2/18/2025 EUR 2.320
Bank Vontobel AG 20.000 4/15/2024 CHF 28.800
Leonteq Securities AG 11.000 5/13/2024 CHF 39.540
Leonteq Securities AG 27.500 5/2/2024 CHF 28.160
Bank Vontobel AG 10.000 5/28/2024 CHF 10.800
Leonteq Securities AG 28.000 5/2/2024 CHF 31.320
Societe Generale Effe 13.250 4/26/2024 EUR 45.350
Leonteq Securities AG 19.000 5/24/2024 CHF 12.790
UBS AG/London 11.250 9/16/2024 EUR 49.700
UniCredit Bank GmbH 13.500 6/28/2024 EUR 51.940
Bank Vontobel AG 11.000 9/10/2024 EUR 50.800
HSBC Trinkaus & Burkh 14.800 12/30/2024 EUR 42.030
Leonteq Securities AG 23.400 6/19/2024 CHF 33.810
Zurcher Kantonalbank 16.000 6/14/2024 CHF 43.720
Zurcher Kantonalbank 17.300 4/19/2024 USD 47.690
UBS AG/London 18.500 6/14/2024 CHF 31.000
Leonteq Securities AG 23.000 7/24/2024 CHF 42.440
Zurcher Kantonalbank 17.400 4/19/2024 USD 43.380
Zurcher Kantonalbank 16.700 4/19/2024 CHF 47.320
UBS AG/London 15.750 10/21/2024 CHF 43.500
Leonteq Securities AG 15.000 7/24/2024 CHF 16.480
Raiffeisen Schweiz Ge 16.000 7/24/2024 CHF 45.970
DZ Bank AG Deutsche Z 24.300 6/28/2024 EUR 44.580
Leonteq Securities AG 20.000 6/19/2024 CHF 32.440
Leonteq Securities AG 30.000 4/24/2024 CHF 23.720
Leonteq Securities AG 15.000 9/12/2024 USD 22.820
Zurcher Kantonalbank 18.000 4/17/2024 CHF 25.390
Basler Kantonalbank 16.000 6/14/2024 CHF 25.890
EFG International Fin 24.000 6/14/2024 CHF 36.080
Leonteq Securities AG 28.000 4/11/2024 CHF 22.910
UBS AG/London 14.500 10/14/2024 CHF 41.300
Leonteq Securities AG 20.000 4/24/2024 CHF 37.360
Leonteq Securities AG 16.000 6/20/2024 CHF 27.210
UniCredit Bank GmbH 19.700 6/28/2024 EUR 38.130
UniCredit Bank GmbH 18.600 12/31/2024 EUR 45.100
Ukraine Government Bo 12.500 10/12/2029 UAH 39.473
Ukraine Government Bo 11.000 4/20/2037 UAH 25.825
Ukraine Government Bo 11.000 4/1/2037 UAH 26.160
Ukraine Government Bo 11.000 4/8/2037 UAH 26.123
Ukraine Government Bo 10.710 4/26/2028 UAH 41.160
Ukraine Government Bo 11.000 4/23/2037 UAH 26.049
Ukraine Government Bo 11.110 3/29/2028 UAH 42.358
Ukraine Government Bo 11.570 3/1/2028 UAH 43.593
Ukraine Government Bo 11.580 2/2/2028 UAH 43.949
Teksid Aluminum Luxem 12.375 7/15/2011 EUR 0.619
Lehman Brothers Treas 13.500 11/28/2008 USD 0.100
Credit Agricole Corpo 10.500 2/16/2027 TRY 47.891
Lehman Brothers Treas 14.900 9/15/2008 EUR 0.100
Deutsche Bank AG/Lond 12.780 3/16/2028 TRY 44.142
Lehman Brothers Treas 10.000 3/27/2009 USD 0.100
Lehman Brothers Treas 10.500 8/9/2010 EUR 0.100
Lehman Brothers Treas 11.000 6/29/2009 EUR 0.100
Credit Agricole Corpo 10.200 8/6/2026 TRY 50.470
Deutsche Bank AG/Lond 14.900 5/30/2028 TRY 47.484
Credit Agricole Corpo 11.190 3/12/2027 TRY 48.784
Sidetur Finance BV 10.000 4/20/2016 USD 0.223
Credit Agricole Corpo 10.320 7/22/2026 TRY 50.877
Credit Agricole Corpo 11.640 3/24/2027 TRY 49.448
Lehman Brothers Treas 11.000 12/19/2011 USD 0.100
Lehman Brothers Treas 15.000 3/30/2011 EUR 0.100
Lehman Brothers Treas 12.000 7/13/2037 JPY 0.100
Lehman Brothers Treas 11.000 12/20/2017 AUD 0.100
Lehman Brothers Treas 11.000 12/20/2017 AUD 0.100
Lehman Brothers Treas 11.000 12/20/2017 AUD 0.100
Lehman Brothers Treas 13.000 7/25/2012 EUR 0.100
Lehman Brothers Treas 23.300 9/16/2008 USD 0.100
Lehman Brothers Treas 11.000 7/4/2011 CHF 0.100
Lehman Brothers Treas 18.250 10/2/2008 USD 0.100
Lehman Brothers Treas 16.000 11/9/2008 USD 0.100
Lehman Brothers Treas 10.600 4/22/2014 MXN 0.100
Lehman Brothers Treas 13.500 6/2/2009 USD 0.100
Lehman Brothers Treas 16.200 5/14/2009 USD 0.100
Lehman Brothers Treas 15.000 6/4/2009 CHF 0.100
Lehman Brothers Treas 17.000 6/2/2009 USD 0.100
Lehman Brothers Treas 10.000 5/22/2009 USD 0.100
Lehman Brothers Treas 10.000 10/23/2008 USD 0.100
Lehman Brothers Treas 10.000 10/22/2008 USD 0.100
Lehman Brothers Treas 14.900 11/16/2010 EUR 0.100
Lehman Brothers Treas 16.000 10/8/2008 CHF 0.100
Lehman Brothers Treas 13.000 2/16/2009 CHF 0.100
Lehman Brothers Treas 11.000 2/16/2009 CHF 0.100
Lehman Brothers Treas 10.000 2/16/2009 CHF 0.100
Lehman Brothers Treas 13.150 10/30/2008 USD 0.100
Lehman Brothers Treas 13.000 12/14/2012 USD 0.100
Lehman Brothers Treas 11.250 12/31/2008 USD 0.100
Lehman Brothers Treas 14.100 11/12/2008 USD 0.100
Lehman Brothers Treas 16.800 8/21/2009 USD 0.100
Lehman Brothers Treas 12.400 6/12/2009 USD 0.100
Lehman Brothers Treas 11.000 7/4/2011 USD 0.100
Lehman Brothers Treas 10.000 6/17/2009 USD 0.100
Lehman Brothers Treas 13.432 1/8/2009 ILS 0.100
Lehman Brothers Treas 12.000 7/4/2011 EUR 0.100
Lehman Brothers Treas 16.000 12/26/2008 USD 0.100
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.
Copyright 2024. All rights reserved. ISSN 1529-2754.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each. For subscription information,
contact Peter Chapman at 215-945-7000.
* * * End of Transmission * * *