/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/240731.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 Wednesday, July 31, 2024, Vol. 25, No. 153 Headlines C Y P R U S UNITED CEMENT: Fitch Puts 'B+' IDR on Watch Neg. & Withdraws Rating F I N L A N D FINNAIR OYJ: Egan-Jones Retains CCC Senior Unsecured Ratings F R A N C E ACCOR SA: Egan-Jones Retains BB Senior Unsecured Ratings ALTICE FRANCE: EUR1.72BB Bank Debt Trades at 25% Discount DERICHEBOURG SA: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable ELIOR GROUP: S&P Alters Outlook to Positive, Affirms 'B' LT ICR G E R M A N Y FRESENIUS MEDICAL: Egan-Jones Retains BB+ Senior Unsecured Ratings G R E E C E INTRALOT SA: Fitch Affirms 'CCC+' LongTerm IDR TITAN CEMENT: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable I R E L A N D CONTEGO CLO VII: Fitch Hikes Rating on Class F Notes to 'B+sf' CVC CORDATUS XXXII: Fitch Assigns B-(EXP)sf Rating to Cl. F-2 Notes GOLDENTREE LOAN 6: Fitch Assigns B-sf Final Rating to Cl. F-R Notes TIKEHAU CLO XII: S&P Assigns Prelim B- (sf) Rating to Cl. F Notes I T A L Y FIMER SPA: Aug. 31 Deadline to Submit Expressions of Interest Set RINO MASTROTTO: Fitch Puts Final 'B+' LongTerm IDR, Outlook Stable L U X E M B O U R G COVIS FINCO: EUR309.6MM Bank Debt Trades at 56% Discount R O M A N I A DIGI COMMUNICATIONS: Fitch Assigns BB LongTerm IDR, Outlook Stable MAS PLC: Fitch Puts 'BB' LongTerm IDR on Watch Negative R U S S I A UZBEK INDUSTRIAL: Fitch Puts Final 'BB-' Rating to $400MM Eurobonds UZBEK INDUSTRIAL: Fitch Puts Final BB- Rating to UZS2.25T Eurobonds U N I T E D K I N G D O M 4WOOD TV: BDO LLP Named as Administrator for Film Set Creator A P V MARINE: Begbies Traynor Appointed as Administrators ACT PRODUCTS: FRP to Lead Administration Proceedings ADVANCED ONCOTHERAPY: Statement of Proposals Available BECK INTERIORS: Begbies Named as Administrators BKE N.E: Leonard Curtis Appointed as Administrators CHARLES HENSHAW: Henderson Loggie Named as Administrators DIGITAL HOME VISITS: Grant Thornton Appointed as Administrators EIGEN TECHNOLOGIES: Statement of Proposals Available FIRST CITY FIRE: KBL to Lead Administration Proceedings HAMILTON CAPITAL: Voscap Appointed as Administrators HERMITAGE 2024: Fitch Assigns 'BB+sf' Final Rating to Cl. E Notes HYPERTUNNEL LIMITED: Opus Restructuring Named as Administrators J D WETHERSPOON: Egan-Jones Retains CCC+ Senior Unsecured Ratings KCA DEUTAG: S&P Places 'B' Issuer Credit Rating on Watch Positive M AND K ENTERTAINMENT: Voscap Named as Administrators MKM DEVELOPMENTS: KRE Named as Administrators NORTH WEST LINEN: Leonard Curtis Named as Administrators PANACHE LEASING: Administrators Looking to Liquidate Rental Firm R&Q CENTRAL: Teneo Named as Administrators SIG PLC: Egan-Jones Retains B+ Senior Unsecured Ratings TENETCONNECT SERVICES: Interpath Named as Administrators ZONE TELECOMMUNICATIONS: Leonard Curtis Named as Administrators - - - - - =========== C Y P R U S =========== UNITED CEMENT: Fitch Puts 'B+' IDR on Watch Neg. & Withdraws Rating ------------------------------------------------------------------- Fitch Ratings has placed Cypriot-registered cement producer United Cement Group Plc (UCG) Long-Term Issuer Default Rating (IDR) of 'B+' on Rating Watch Negative (RWN). Fitch has subsequently withdrawn the rating. The RWN reflects weakened financial transparency and heightened liquidity risk resulting from a delay in the publication of the group's 2022 and 2023 audited financial statements. As Fitch expects that some of UCG's loan agreements would require audited financial statements as a covenant, non-compliance with the reporting covenant could result in a deterioration of the group's access to financing and, potentially, liquidity pressures. The rating was withdrawn due to insufficient information provided. Following the withdrawal Fitch will no longer provide rating or analytical coverage of UCG. Key Rating Drivers Weakening Financial Transparency: The lack of audited financial statements limits its ability to assess the group's financial condition. UCG has not yet published its 2022 and 2023 audited financial statements and Fitch believes the audit completion timeline remains uncertain. According to management, the process was mainly delayed by the audit of the consolidation of Kyzylkum plant in Uzbekistan, which UCG acquired from the state in mid-2022. Other remaining steps include ongoing audits of UCG's standalone financial statements and its Kuwasaycement plant. Increasing Liquidity Risk: Fitch believes a further delay in the release of audited annual accounts may undermine the group's access to financing. Fitch expects that some of UCG's existing loans would include the reporting covenant, which would require timely release of the group's annual audited statements. Fitch expects that the group would remain in discussions with its lenders to rectify the situation, but further non-compliance could lead to liquidity pressures such as inability to obtain new loan tranches under existing loan agreements. RATING SENSITIVITIES No longer relevant as the rating has been withdrawn. REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING As of July 2024, UCG has not published audited IFRS accounts for 2022 and 2023. ESG Considerations UCG has an ESG Relevance Score of '5' for Financial Transparency due to delays in the publication of 2022 audited annual IFRS accounts, which have a negative impact on the credit profile, and are highly relevant to the rating, resulting in RWN. 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. Following the withdrawal of rating for UCG Fitch will no longer be providing the associated ESG Relevance Scores. Entity/Debt Rating Prior ----------- ------ ----- United Cement Group plc LT IDR B+ Rating Watch On B+ LT IDR WD Withdrawn B+ ============= F I N L A N D ============= FINNAIR OYJ: Egan-Jones Retains CCC Senior Unsecured Ratings ------------------------------------------------------------ Egan-Jones Ratings Company, on June 12, 2024, maintained its 'CCC' foreign currency and local currency senior unsecured ratings on debt issued by Finnair Oyj. EJR also withdrew the rating on commercial paper issued by the Company. Headquartered in Vantaa, Finland, Finnair Oyj operates scheduled passenger traffic, technical and ground handling operation, catering, travel agencies, and reservation services. =========== F R A N C E =========== ACCOR SA: Egan-Jones Retains BB Senior Unsecured Ratings -------------------------------------------------------- Egan-Jones Ratings Company, on June 12, 2024, maintained its 'BB' foreign currency and local currency senior unsecured ratings on debt issued by Accor SA. EJR also withdrew the rating on commercial paper issued by the Company. Headquartered in Issy-les-Moulineaux, France, Accor SA, doing business as AccorHotels, is a hospitality company. ALTICE FRANCE: EUR1.72BB Bank Debt Trades at 25% Discount --------------------------------------------------------- Participations in a syndicated loan under which Altice France SA is a borrower were trading in the secondary market around 75.1 cents-on-the-dollar during the week ended Friday, July 26, 2024, according to Bloomberg's Evaluated Pricing service data. The EUR1.72 billion Term loan facility is scheduled to mature on August 31, 2028. About EUR1.70 billion of the loan is withdrawn and outstanding. Altice France provides wireless telecommunication services. The Company offers fiber optic network solutions for all type of media. Altice France serves customers in France. DERICHEBOURG SA: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed French metal-recycler Derichebourg S.A.'s Long-Term Issuer Default Rating (IDR) and its senior unsecured bonds at 'BB+'. The Outlook for the Long-Term IDR is Stable. The Recovery Rating for the bonds is 'RR4'. Weak European steel markets and various challenges will see EBITDA decline around 10% year on year for its financial year-end September 2024, leading to an increase in EBITDA net leverage towards 3.0x even as Fitch expects net debt reduction of EUR30 million-EUR40 million from 2H24. Fitch assumes that earnings will recover slowly to a Fitch-defined EBITDA of EUR265 million in FY26 (or reported EBITDA of EUR340 million before deducting leasing expenses). Fitch expects leverage metrics to improve to around 2.5x by FYE25 and to around 2.1x by FYE26 based on its conservative assumptions. The rating reflects Derichebourg's market-leading position in the French metals recycling business, with additional geographic diversification into Spain, Germany, Belgium, Mexico and North America and a disciplined approach to maintaining sustainable margins (around 90% of earnings) in a business that demonstrates some cyclicality. Its growing municipal services business provides for stable earnings contributions (around 10% of earnings). Key Rating Drivers Challenges in 2024: Average EBITDA per tonne is down for FY24 by mid-single digit euros due to operational challenges following a cyber-attack in November 2023, high electricity prices during last winter and weak demand for long steel products in Europe. Fitch sees less scope for exceptional earnings impact in FY25 as the group has procured already around 70% of power for the year and has some scrap supply commitments with little profit margin expire in June 2024. Fitch assumes EBITDA will slowly recover by FY26 to mid-cycle levels (broadly similar to FY23). Financial Discipline Now Key: Derichebourg invested substantial capex in FY22 and FY23 to upgrade operational efficiency of acquired sites. The group purchased shares in Elior Group for EUR190.5 million in FY22 and agreed to contribute its multi-services business into Elior Group (around EUR50 million of reported EBITDA) in return for a stake increase to 48.4% in FY23. All this has resulted in high debt and leverage metrics and Fitch expects more disciplined capital spending from 2HFY24 to when market conditions improve sustainably. Targeted Debt Reduction: Net debt reduction is expected to be underpinned by conservative financial policies, with management aiming to rapidly lower company-reported leverage to below 2.0x (from 2.6x at end-1HFY24) and closer to 1x over the medium term. Its rating forecast assumes Fitch-adjusted net debt to fall closer to EUR600 million by FYE25 and to around EUR560 million by FYE26, from EUR692 million at FYE23. As the group's financial metrics currently exceed their negative sensitivities, Fitch may downgrades the rating to 'BB' should the group fail to reduce debt and incrementally improve earnings. Energy Transition Trends: Changes to the EU emissions trading scheme, including the increase of the pace of reduction to more than 4% per annum (from 2.2% previously) and phase-out of free emission allowances over 2025-2034, plus the carbon border adjustment mechanism coming into place from 2026 will incentivise European steel companies to use more scrap, pig iron or hot bricketed iron. Blast furnaces can charge 10%-25% of scrap and electric arc furnaces mostly use scrap for metal production. Further, Fitch expects improving GDP growth in Europe from 2025 and implementation of steel companies' decarbonisation strategies, to underpin gradual structural demand growth for ferrous scrap. This, together with Derichebourg's commitment to reduce net debt, supports the 'BB+' rating. Cyclical Earnings: Fitch views the group's FY23 EUR268 million EBITDA as broadly representative of mid-cycle earnings. Fitch projects EBITDA/tonne to revert to around EUR60/tonne by FY26, versus EUR58/tonne in FY23 when volumes declined moderately, energy costs were high, but scrap and non-ferrous prices remained at reasonable levels. Derivation Summary Fitch compared Derichebourg with rated peers such as SPIE SA (BB+/Stable) and Seche Environnement S.A. (BB/RWN). SPIE is a business services company involved in (i) installing and upgrading mechanical, electrical and heating systems, ventilation and air conditioning; (ii) installing, upgrading, operating and maintaining voice, data and image communication systems; and (iii) technical facility management. The fairly technical nature of services and its focus on smaller, low-risk contracts provide some barriers to entry and cash flow visibility. SPIE's business does not have a long order backlog, but tends to generate a high proportion of sales from recurring customers with high retention rates. SPIE's contracts are diversified across a wide spectrum of end-markets and clients (private and public) with only limited exposure to cyclical sectors, such as oil and gas. While EBITDA net leverage at 1.6x-1.2x in 2023-2024 supports an investment-grade rating, SPIE is highly acquisitive and has sufficient leverage headroom to fund expansion. Fitch would expect a larger acquisition (above EUR450 million with accretive revenue) to be partly debt-funded. Seche is a medium-sized waste company, operating in niche markets for resource and energy recovery from hazardous (two thirds of turnover) and non-hazardous (one third) waste sourced mostly from industrial customers. The group targets services that require technical expertise, which provide higher barriers to entry and pricing power (including recycling, waste incineration and landfill disposal). The group intends to broaden its scope in recycling waste streams and also sees opportunities in industrial water treatment. It has a growing international footprint with operations in South Africa and Namibia. Its biggest markets today are France, followed by Italy, with increasing efforts to cross-sell products to its client base. Seche's business generates margins in the 15%-20% range, with earnings on a steady growth path including during Covid, with a mid-cycle target net debt/EBITDA below 3x (company-defined). The group has smaller scale than Derichebourg, but earnings variability through the cycle is lower. The RWN reflects the potential negative impact on Seche's financial profile from its announced acquisition of the Singaporean-based hazardous waste operator ECO Industrial Environmental Engineering Pte Ltd, and its expectation that EBITDA net leverage may exceed 4.0x for an extended period of time. Key Assumptions - Low single-digit CAGR of processed volumes in the metals-recycling business over the next four years - EBITDA per tonne in the recycling business at a low of EUR53 in 2024, before returning to around EUR60 over the medium term - EBITDA contributions from municipal services slowly increasing to around EUR40 million in the near term from EUR30.5 million in 2023 - Effective tax rate of 27% over the next four years - Capex at around 50% of company-reported EBITDA (equivalent to Fitch-defined EBITDA including right-of-use depreciation and lease interest) from FY25 - Dividends in line with historical trend at or below the 30% cap of normalised net income - No further debt-funded acquisitions over the next four years RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - Meaningful earnings growth from more stable income streams, such as public-sector services or services linked to waste streams Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - EBITDA net leverage higher than 2.5x on a sustained basis - Cash flow from operations less capex/total gross debt under 10% on a sustained basis - Lack of progress in debt reduction and earnings recovery over the next 12 months - Material support to Elior Group in future refinancing needs - Acquisitions or asset investments negatively affecting the financial profile Liquidity and Debt Structure Adequate Liquidity: At end-March 2024 Derichebourg had EUR140.3 million of cash and cash equivalents as well as a EUR100 million undrawn, committed revolving credit facility (RCF) maturing in March 2027. All existing term debt has manageable and smooth amortisation, so that Derichebourg is funded beyond FY25. Fitch would expect the RCF to be refinanced in 2026 to maintain conservative liquidity headroom. Issuer Profile Derichebourg operates a dense network of 286 collection and processing sites that are strategically located in industrial areas with high scrap-disposal volumes. It is the market leader in France with diversification into other European markets, Mexico and North America. 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 ----------- ------ -------- ----- Derichebourg S.A. LT IDR BB+ Affirmed BB+ senior unsecured LT BB+ Affirmed RR4 BB+ ELIOR GROUP: S&P Alters Outlook to Positive, Affirms 'B' LT ICR --------------------------------------------------------------- S&P Global Ratings revised its outlook on Elior Group S.A. to positive from negative and affirmed its 'B' long-term issuer credit rating and 'B' issue rating on the company and its senior unsecured bonds. The positive outlook indicates our expectation that the recovery in Elior's performance will drive higher adjusted margins toward 5.5% by fiscal year-end 2025, resulting in leverage below 5x. Elior is on track to post a significant recovery in performance in fiscal 2024. S&P said, "We expect revenue will increase 15% in fiscal 2024, fueled by the full-year contribution of acquired Derichebourg Multiservices (DMS; consolidated from April 2023) as well as positive organic growth, notably thanks to price increases for catering services and higher volumes with the ramp-up of new contracts. We also forecast a significant recovery in profitability, and expect S&P Global Ratings-adjusted EBITDA margins will improve to 5.0% in fiscal 2024 from 3.2% in fiscal 2023." This is thanks to the price increases for the catering division, the renegotiation of loss-making contracts, lower cost inflation, the implementation of cost-savings measures, and EUR30 million of annualized cost synergies with DMS. S&P said, "We anticipate FOCF after leases to turn comfortably positive and funds from operations (FFO) cash interest coverage to stand comfortably above 3x.Propelled by higher EBITDA and strong working capital management with reduced days of sales outstanding (DSO), we expect FOCF after leases of more than EUR90 million in fiscal 2024. Elior should benefit from more than EUR50 million in working capital inflows during the year, excluding higher use of the factoring line. Moreover, we forecast FFO cash interest coverage of 3.5x in fiscal 2024, up from 2.3x in fiscal 2023 and driven by the improved cash flow." The liquidity position has significantly improved with the recovering performance, but the July 2026 maturity wall looms. Headroom under the net total leverage covenant of 4.5x for the group's senior facilities agreement (term loan B [TLB] and revolving credit facility) has significantly improved thanks to EBITDA growth. S&P said, "We now expect that a 15% EBITDA decline versus our forecast would not result in a covenant breach. With EUR49 million of cash on the balance sheet at the end of first-half 2024 and EUR190 million available under the revolving credit facility (RCF), we assess Elior's liquidity position as adequate. However, a large part of the EUR100 million TLB and EUR350 million RCF, and the EUR550 million senior unsecured notes mature in July 2026, in addition to the EUR56 million per year amortization of the French State guaranteed loan (PGE) until 2027. It means that the company will have to refinance the vast majority of its debt structure in the next few quarters, which otherwise constrains the ratings." S&P said, "We understand the financial policy is consistent with S&P Global Ratings-adjusted leverage below 5x.Elior intends to focus on reducing company-reported leverage below 3x by fiscal year-end 2026, before resuming a dividend payout that we do not expect before the full refinancing of the debt structure. In addition, we do not anticipate any material merger and acquisition spending. We expect that this prudent financial policy, combined with stronger operating performance, will drive S&P Global Ratings-adjusted leverage toward 4.5x by Sept. 30, 2025. "The positive outlook reflects our expectation that continued improved operational performance from the successful integration of DMS, price increases, and cost reduction measures will lead to improved profitability for the group and support adjusted leverage improving to less than 5x by fiscal year-end 2025, while generating comfortably positive FOCF. "We could lower the rating if economic headwinds or operational missteps result in FOCF staying negative, or FFO cash interest coverage declining below 2x, both without prospects for recovery. "We could also take a negative rating action if it appeared difficult for Elior to refinance its debt maturities due July 2026 or that its liquidity position would come under pressure, notably due to tightness under covenant tests. "S&P could raise the rating if Elior refinances its debt maturities, notably those due in July 2026. In addition, we would expect to continue forecasting increasing profitability, and obtain further indications that support our forecast ratios, including leverage below 5x by fiscal year-end 2025. We would also require the company to continue to commit to a financial policy consistent with adjusted leverage below 5.5x. "Governance factors are a neutral consideration in our credit rating analysis of Elior (compared with moderately negative before), reflecting our view that management has returned the group to organic revenue growth and improved profitability significantly, while reducing leverage. "Social factors are a negative consideration in our analysis. Although Elior's revenue has fully recovered to pre-pandemic levels as the effects of COVID-19-related restrictions fully faded in 2023 and demand for catering services at business and corporate clients returned, the sector remains sensitive to health and safety issues in our view, and any virus variant resulting in renewed social distancing measures or increased absenteeism at corporate restaurants or school canteens could have a significant impact on the group's operating performance and credit metrics." ============= G E R M A N Y ============= FRESENIUS MEDICAL: Egan-Jones Retains BB+ Senior Unsecured Ratings ------------------------------------------------------------------ Egan-Jones Ratings Company, on June 27, 2024, maintained its 'BB+' foreign currency and local currency senior unsecured ratings on debt issued by Fresenius Medical Care AG. Headquartered in Bad Homburg, Germany, Fresenius Medical Care AG offers kidney dialysis services, and manufactures equipment and products used in the treatment of dialysis patients. =========== G R E E C E =========== INTRALOT SA: Fitch Affirms 'CCC+' LongTerm IDR ---------------------------------------------- Fitch Ratings has affirmed Intralot S.A.'s Long-Term Issuer Default Rating (IDR) at 'CCC+'. The 'CCC+' IDR reflects its view that the complexity of the existing capital structure continues to lead to high refinancing risk for Intralot, limiting its access to international debt capital markets. Intralot has addressed its imminent liquidity needs through successful equity and debt placements and extensions, but in Fitch's view it has yet to put in place a capital structure that will serve its long-term needs. A sustainable capital structure, along with a timely refinancing of its 2025-2026 maturities, would be beneficial to Intralot's credit profile. Underlying operating performance has been solid, and Fitch expects this to continue in its core markets. Key Rating Drivers Temporary Capital Structure: In 1H24 Intralot addressed its remaining 2024 maturities with a syndicated bond loan and a local bond. At the same time, 2025 debt at wholly-owned Intralot Inc. was extended to 2026. The syndicated bond raised with local banks has a short tenor and matures at end-June 2025. Fitch views the current capital structure as temporary. Deterioration in liquidity to the extent it is insufficient to cover current debt would put pressure on the rating. Financial Strategy Still Aggressive: The shift in Intralot's financial strategy towards more disciplined capital allocation, such as equity placements and no shareholder distributions, supports deleveraging. At the same time, refinancing and debt extensions for periods of 12-18 months do not alleviate refinancing and liquidity risks and underline a more aggressive financial strategy than at peers. Also, its US subsidiary debt remains structurally senior to debt raised at Intralot holding-company level. Equity Placement Reduced Leverage: Intralot's EUR135 million equity placement in 2H23 allowed it to improve its capital structure through a EUR126 million cancellation of its 2024 notes. Combined with EBITDAR growth, it allowed Intralot to further improve its leverage in 2023 to 3.5x from 4.9x in 2022. Fitch forecasts stable leverage in 2024 and 2025, with Intralot's principal repayments expected to be offset by a slight decline in consolidated EBITDAR driven by unhedged currency depreciation in some of Intralot's markets of operations. US Operations Driving Performance: As of end-2023, over 50% of Intralot's EBITDAR was generated in the US and Canada through Intralot Inc. Fitch forecasts that new contracts signed in 2023 and 2024 will support low-to-mid single-digit revenue growth in the region over the medium term. Fitch expects Intralot's US operations to continue to see strong profitability, with EBITDAR margins maintained above 40%. Low Leverage for Rating: EBITDAR growth and net debt reduction in 2022-2023 allowed Intralot to progressively improve its EBITDAR leverage to 3.5x in 2023 from 4.9x in 2022 and 5.7x in 2021. EBITDAR grew further to EUR130 million in 2023, despite a modest year-on-year decline in revenues from ceasing lottery operations in Malta. Continued deleveraging should support refinancing prospects, with 2024 credit metrics expected to be strong for Intralot's rating. Contract Portfolio Expiration Risks: Fitch views Intralot's contracted revenues as more visible and predictable than that of B2C gaming operators, albeit subject to license/contract renewal risks. The company is also not always able to compete for renewals with local or international peers. The current portfolio has a moderate license/contract expiration profile, with no large renewals in the medium term, except for a license in Morocco in 2025 that Fitch assumes will not be renewed in its rating case. In 2027, contracts in Argentina and Australia, collectively generating around 20% of EBITDAR as of 2023, will expire. Intralot's ability to maintain a balanced license expiration profile remains important for its rating trajectory. Exposure to Emerging-Market Currencies: Most of Intralot's revenues are not generated in its reporting currency, increasing its exposure to foreign-exchange (FX) market volatility. In 2023, Turkiye and Argentina accounted for 19% of Intralot's EBITDA. Fitch believes the high inflationary environment makes it difficult for Intralot to fully pass on cost increases, and hence expect it to continue to undermine revenue growth and profitability. Intralot does not use financial derivatives to hedge its currency risk. Hence currency volatility, especially in emerging markets, could materially affect its performance. Derivation Summary Intralot's current financial profile is not comparable with that of other more business-to-consumer EMEA gaming companies, such as Flutter Entertainment plc (BBB-/Stable), Entain plc (BB/Stable), Allwyn International a.s. (BB-/Stable), or its business-to-business peers International Game Technology plc (BB+/RWP) and Light & Wonder, Inc. (BB/Stable). After the completion of its 2021 restructuring, Intralot has similar scale and a comparable financial profile to Inspired Entertainment, Inc. (B/Stable). Inspired has slightly lower leverage with longer maturities and a more intact, albeit more geographically concentrated, business model, resulting in a two-notch difference between the ratings. Key Assumptions - Average 2024-2028 annual revenue growth at low single digits, mainly driven by Intralot's operations in the US (EUR170 million-EUR190 million contribution per year) - Improved profitability for operations in the US, but higher contribution from lower-margin Turkiye, resulting in EBITDA margin declining towards 31% from 33% over 2024-2028 - Average annual capex at 8%-9% of revenue for contract renewals and new projects in the US - Working-capital outflow at EUR5 million-EUR10 million per year RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - Further refinancing resulting in a long-term sustainable capital structure including the absence of debt maturities within a 12-18-month period - Healthy liquidity, as underlined by positive free cash flow (FCF) and a lack of permanent revolving credit facility (RCF) drawdowns - EBITDAR leverage below 5.0x - EBITDAR coverage above 1.8x on a sustained basis Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - Failure to refinance upcoming debt maturities six to 12 months in advance - EBITDAR leverage above 7.0x - EBITDAR coverage below 1.5x - Sustained negative or volatile FCF and lack of sufficient liquidity to support operations within the next 12-18 months Liquidity and Debt Structure Concentrated Debt Maturities: Over 60% of Intralot's debt maturities at end-June 2024 were in 2025 and 2026, including its new Greek syndicated bond loan due in June 2025. In March 2024 Intralot extended the maturity of it USD230 million bank loan to 2026 from 2025. Fitch expects the company to proactively address its 2025 and 2026 maturities and establish longer-term capital structure. For the normal course of business, Fitch expects Intralot to have sufficient liquidity to fund its operations, with forecast mainly positive FCF and a USD50 million RCF - fully undrawn as of end 1Q24 - providing additional flexibility for its US operations. Issuer Profile Intralot is a supplier of integrated gaming systems and services. It develops, operates and supports customised software and hardware for the gaming industry and provides innovative technology and services to state and state-licensed lottery and gaming organisations worldwide. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Intralot S.A. LT IDR CCC+ Affirmed CCC+ TITAN CEMENT: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed Titan Cement International S.A.'s (TCI) Long-Term Issuer Default Rating (IDR) at 'BB+' with Stable Outlook. Fitch has also affirmed TITAN GLOBAL FINANCE PLC's (TGF) senior unsecured rating at 'BB+' with a Recovery Rating of 'RR4'. TGF is a direct subsidiary of TCI, which guarantees the notes on a senior unsecured basis. The rating reflects the group's solid EBITDA margins and sustainable positive free cash flow (FCF) margins, leading market position in the regions in which it operates, a diversified customer base, moderate fluctuations of profitability through the cycle, balanced geographical diversification and a moderate ability to pass on costs to customers. The rating is constrained by lower product and geographical diversification, a weaker market position globally and a smaller scale than higher-rated peers'. The Stable Outlook reflects its expectations that TCI will be able to maintain solid operating margins over 2024-2027 and a strong capital structure, aided by expected stable demand for cement in the regions where TCI operates. Key Rating Drivers Moderate Scale Compared with Peers: TCI's business profile is sustainable, albeit weaker than some Fitch-rated peers'. The group has leading market positions in the regions where it operates but is less geographically diversified than larger peers and as a result has a weaker market position globally. Moreover, TCI's product diversification is moderate, but weaker than that of higher-rated peers like Holcim Ltd, Cemex, S.A.B. de C.V. (Cemex) and CRH Plc. Its smaller scale makes it a medium-sized manufacturer. Fitch believes the pricing power of the group is moderate, but weaker than peers'. Positive but Constrained FCF: Historically, TCI has maintained positive FCF, except in 2022 when it was eroded by increased capex and working-capital needs. Fitch expects FCF margin for 2024 will be partly eroded by high capex (over 9% of revenue) and higher dividend payments. Nevertheless, Fitch expects it to remain positive over the next four years at over 2%, subject to EBITDA fluctuation. Flexibility in Capex: TCI plans to further enhance its positions in the US and Europe by investing in capacity expansion and in supply-chain optimisation. One of TCI's goals is to increase contribution from aggregates and ready-mix in total sales to 12% and 35%, respectively, by 2026 from 5% and 30% in 2022. Part of the planned high capex is directed towards decarbonisation. Nevertheless, TCI has flexibility to reduce capex in economic downturns, which will help sustain FCF generation. Healthy Profitability: TCI's EBITDA margin sharply improved to 20.7% in 2023 from 13.8% in 2022, driven by prices increase, sustained demand and reduced costs, mainly for energy. Fitch forecasts EBITDA margin to be solid at over 20% to 2027, supported by normalised energy costs and investments in logistics. Fitch expects EBITDA margins to further improve to comparable levels with higher-rated peers'. Margin sustainability will be key for all sector participants (especially those with weaker market positions) if there is future pricing pressure. Improving Leverage: The profitability improvement in 2023 led to EBITDA leverage at below 1.7x, down from 2.8x at end-2022. Fitch forecasts further EBITDA gross leverage to improve to below 1.5x from 2024, primarily driven by higher EBITDA generation rather than debt repayment. As a result, maintaining healthy EBITDA margins is critical in supporting solid EBITDA gross leverage and may drive a positive rating action. US Dominates Overseas Sales: TCI generated 58% of its revenue primarily from the US, with a favourable market environment (particularly in non-residential end-market) and strong underlying demand for building materials. It has established a production network in the US, with two cement plants and three import terminals supplying growing demand for cement in the US states it operates in. Sales volumes in the US are partly supported by cement imports from TCI plants in other regions, mainly Greece. Transportation costs may weigh on profitability but this is mitigated by higher margins in the US than Greece and other regions. TCI also benefits from its exposure to Greece where the construction market is supported by economic recovery, large infrastructure projects and sustained demand in residential construction. Moderate Diversification Beneficial: TCI's geographical diversification is moderate as it is spread across several regions with differing economic cycles. This helps balance out revenue generation and profitability through the cycle. The product portfolio is moderately diversified, with cement being the main product at 59% of the group's revenue in 2023, while the rest was generated by heavy building materials like ready-mix concrete, aggregates and building blocks. Potential IPO: In May 2024 TCI announced its intention to proceed with the IPO of its US business on The New York Stock Exchange. The group aims to list a minority stake and to complete the IPO by 1Q25. The proceeds will be used primarily to fund growth capex. As there are no further details available regarding the transaction, the IPO was not incorporated in its rating forecast. Derivation Summary TCI's business profile is weaker versus higher-rated peers'. TCI is smaller than Martin Marietta Materials Inc (BBB/Positive) and CRH plc (BBB+/Stable), which have stronger market positions and wider production networks. TCI's product concentration on cement is weaker versus Cemex's (BBB-/Stable), Holcim's (BBB/Positive) and CRH's. In contrast to CRH, Martin Marietta Materials Inc and Vulcan Materials Company (BBB/Stable), which are exposed largely to the US market, TCI also derives its revenue from Greece, Turkey, Egypt and several south eastern European countries. However, Martin Marietta and Vulcan Materials are present across the US while TCI is operating primarily in two states. As a result of an improved cost structure and pricing strategy Fitch expects TCI's EBITDA margins to improve to 21%-22% during 2024-2027 from 14%-17% in 2020-2022. As a result, margins will be comparable with Holcim's, close to Vulcan Materials' and above of that of CRH and CEMEX. TCI's rating is underpinned by its improved and solid leverage profile, which Fitch expects to be sustainable. Its EBITDA gross leverage at 1.7x at end-2023 was slightly better than that of higher-rated peers like CRH (1.9x) and Vulcan Materials (1.9x), and stronger than that of Holcim (2.0x) and CEMEX (2.6x). Key Assumptions - Revenue to rise by low single-digit percentages in 2024-2027 - EBITDA margin to rise to over 21% in 2024 and to 21.9% in 2027 - Capex at 9.5% of revenue in 2024 and 9.8% for 2025-2027 - Dividends payment at EUR67 million in 2024, EUR83 million in 2025, and above EUR95 million per year in 2026-2027 - M&A spending of EUR14 million in 2024 and no M&As in 2025-2027 - Share buybacks of EUR17 million in 2024 and EUR20 million per year in 2025-2027 - Repayment of its 2024 bond of EUR350 million RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improved business risk profile reflecting increased product and geographical diversification - FCF margin consistently above 3% - EBITDA gross leverage below 1.5x on a sustained basis - EBITDA margin of 18% on a sustained basis Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA gross leverage above 2.5x on a sustained basis - EBITDA margin below 15% - FCF margin below 1% on a sustained basis Liquidity and Debt Structure Sufficient Liquidity: At end-1Q24 TCI reported about EUR128 million of cash before Fitch's adjustment of EUR55 million of not readily available cash. Expected positive FCF in the next 12 months of EUR107 million will support the group's liquidity. In addition, TCI has an undrawn revolving credit facility (RCF) of EUR230 million with maturity of over one year and other bank debt facilities of EUR200 million to cover its EUR350 million 2024 bond repayment. Fitch does not expect any difficulties with the bond refinancing as TCI has adequate access to capital markets and banks. TCI's debt structure as at end-1Q24 was mainly represented by bonds of EUR750 million or 90% of Fitch-defined total debt. Issuer Profile Titan is a medium-sized building materials producer with a focus on cement production, which contributed to about 60% of its revenue in 2023. 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 ----------- ------ -------- ----- Titan Cement International S.A. LT IDR BB+ Affirmed BB+ TITAN GLOBAL FINANCE PLC senior unsecured LT BB+ Affirmed RR4 BB+ ============= I R E L A N D ============= CONTEGO CLO VII: Fitch Hikes Rating on Class F Notes to 'B+sf' -------------------------------------------------------------- Fitch Ratings has upgraded Contego CLO VII DAC notes except its class A notes, which are affirmed. Their Outlooks are Stable. Entity/Debt Rating Prior ----------- ------ ----- Contego CLO VII DAC A XS2053876764 LT AAAsf Affirmed AAAsf B-1 XS2053877572 LT AA+sf Upgrade AAsf B-2 XS2053878034 LT AA+sf Upgrade AAsf C XS2053878620 LT A+sf Upgrade Asf D XS2053879354 LT BBB+sf Upgrade BBBsf E XS2053879941 LT BB+sf Upgrade BBsf F XS2053880444 LT B+sf Upgrade Bsf Transaction Summary Contego CLO VII DAC is a securitisation of mainly senior secured loans (at least 90%) with a component of senior unsecured, mezzanine, and second-lien loans. The portfolio is actively managed by Five Arrows Managers LLP. The transaction exited its reinvestment period in June 2024. KEY RATING DRIVERS Performance Better Than Expected Case: Since Fitch's last rating action in September 2023, the portfolio's performance has been stable. Based on the last trustee report dated 31 May 2024, the transaction was passing all its tests, except for the Fitch maximum weighted average rating factor test, which it failed marginally. The transaction was 0.2% above par and has no defaulted assets. Exposure to assets with a Fitch-derived rating of 'CCC+' and below is 2.9%, versus a limit of 7.5% and the portfolio's total par loss remains below its rating-case assumptions. Manageable Refinancing Risk: The transaction has manageable near- and medium-term refinancing risk, with 1.7% of portfolio assets maturing in 2025 and another 4.7% in 1H26, as calculated by Fitch. 'B'/'B-' Portfolio: Fitch assesses the average credit quality of the transaction's underlying obligors at 'B'/'B-'. The weighted average rating factor (WARF) of the current portfolio, as calculated by Fitch under its latest criteria, is 25.7. High Recovery Expectations: Senior secured obligations comprise 97.5% of the portfolio. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate (WARR) of the current portfolio is 61.7%. Diversified Portfolio: The portfolio is well-diversified across obligors, countries and industries. The top 10 obligor concentration, as calculated by Fitch, is 12%, and no obligor represents more than 1.6% of the portfolio balance. Exposure to the three-largest Fitch-defined industries is 25.3% as calculated by the trustee. Unhedged fixed-rate assets as reported by the trustee are 6.5% of the portfolio balance, versus a limit of 7.5%. Transaction Outside Reinvestment Period: The manager can reinvest unscheduled principal proceeds and sale proceeds from credit-improved or -impaired obligations after the reinvestment period, subject to compliance with the reinvestment criteria. Given the manager's ability to reinvest, Fitch's analysis is based on a stressed portfolio using the agency's collateral quality matrix specified in the transaction documentation. Fitch used the matrix with limits of the top-10 obligors of 15%, the largest Fitch-defined industry at 17.5% and the three-largest Fitch-defined industries at 40%. Cash Flow Analysis: Fitch used a customised proprietary cash flow model to replicate the principal and interest waterfalls and the various structural features of the transaction, and to assess their effectiveness, including the structural protection provided by excess spread diverted through the par-value and interest-coverage tests. Deviation from Model-implied Ratings: The class B-1 and B-2 notes ratings are one notch below their model-implied ratings (MIR). The deviation reflects limited default-rate cushions at their MIRs, which would expose it to downside risk stemming from the most vulnerable EMEA leveraged loan issuers under Fitch's stress. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Based on the current portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of default and portfolio deterioration. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other nationally recognised statistical rating organisations and/or European securities and markets authority-registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG CONSIDERATIONS Fitch does not provide ESG relevance scores for Contego CLO VII DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose in the key rating drivers any ESG factor which has a significant impact on the rating on an individual basis. CVC CORDATUS XXXII: Fitch Assigns B-(EXP)sf Rating to Cl. F-2 Notes ------------------------------------------------------------------- Fitch Ratings has assigned CVC Cordatus Loan Fund XXXII DAC expected ratings, as detailed below. The assignment of final ratings is contingent on the receipt of final documents conforming to information already reviewed. Entity/Debt Rating ----------- ------ CVC Cordatus Loan Fund XXXII DAC A Loan LT AAA(EXP)sf Expected Rating A XS2857241470 LT AAA(EXP)sf Expected Rating B-1 XS2857241637 LT AA(EXP)sf Expected Rating B-2 XS2857241553 LT AA(EXP)sf Expected Rating C XS2857241710 LT A(EXP)sf Expected Rating D XS2857241983 LT BBB-(EXP)sf Expected Rating E XS2857241124 LT BB-(EXP)sf Expected Rating F-1 XS2857242015 LT B+(EXP)sf Expected Rating F-2 XS2858075067 LT B-(EXP)sf Expected Rating Subordinated Notes XS2857242361 LT NR(EXP)sf Expected Rating Transaction Summary The CVC Cordatus Loan Fund XXXII DAC is a securitisation of mainly (at least 90%) senior secured obligations with a component of senior unsecured, mezzanine, second lien loans and high-yield bonds. Notes proceeds will be used to purchase a portfolio with a target par of EUR400 million. The portfolio is actively managed by CVC Credit Partners Investment Management Limited (CVC) and the collateralised loan obligation (CLO) will have about 4.5 years reinvestment period and a 7.5-year weighted average life (WAL) test. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'. The Fitch weighted average rating factor (WARF) of the identified portfolio is 24.1. High Recovery Expectations (Positive): At least 90% of the portfolio will comprise senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate (WARR) of the identified portfolio is 60%. Diversified Portfolio (Positive): The transaction will include various concentration limits in the portfolio, including a fixed-rate obligation limit at 10%, a top 10 obligor concentration limit at 20% and a maximum exposure to the three largest Fitch-defined industries at 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. WAL Step-Up Feature (Neutral): The transaction can extend the WAL by one year on the step-up date, which is one year after closing. The WAL extension is at the option of the manager but subject to conditions including passing the collateral-quality, portfolio-profile and coverage tests and the aggregate collateral balance (defaulted obligations at their Fitch-calculated collateral value) being at least at the target par. Portfolio Management (Neutral): The transaction will have a reinvestment period of about 4.5-years and include reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL for the Fitch-stressed portfolio analysis is 12 months less than the WAL covenant. This is to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period, which include passing the coverage tests, the Fitch WARF test and the Fitch 'CCC' bucket limitation test after reinvestment as well as a WAL covenant that progressively steps down, before and after the end of the reinvestment period. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during the stress period. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) across all ratings and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would lead to downgrades of no more than one notch for the class B-1, B-2, C, D, E and F-1 notes, to below 'B-sf' for the class F-2 and have no impact on the class A notes. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of default and portfolio deterioration. Due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio the class F-1 notes display a rating cushion of three notches, the class B-1, B-2, C, D, E and F-2 notes two notches while the class A notes have no rating cushion. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR across all ratings and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to four notches. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR across all ratings and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to four notches, except for the 'AAAsf' notes. During the reinvestment period, based on the Fitch-stressed portfolio, upgrades may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the transaction's remaining life. After the end of the reinvestment period, upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other nationally recognised statistical rating organisations and/or European securities and markets authority-registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG CONSIDERATIONS Fitch does not provide ESG relevance scores for CVC Cordatus Loan Fund XXXII DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose in the key rating drivers any ESG factor which has a significant impact on the rating on an individual basis. GOLDENTREE LOAN 6: Fitch Assigns B-sf Final Rating to Cl. F-R Notes ------------------------------------------------------------------- Fitch Ratings has assigned GoldenTree Loan Management EUR CLO 6 DAC's reset notes final ratings, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- GoldenTree Loan Management EUR CLO 6 DAC X XS2461970324 LT PIFsf Paid In Full AAAsf X-R XS2852128714 LT AAAsf New Rating A XS2461970670 LT PIFsf Paid In Full AAAsf A-L-R LT AAAsf New Rating A-R XS2852128987 LT AAAsf New Rating B-1 XS2461970837 LT PIFsf Paid In Full AAsf B-2 XS2540996191 LT PIFsf Paid In Full AAsf B-R XS2852129100 LT AAsf New Rating C XS2461971058 LT PIFsf Paid In Full Asf C-R XS2852129522 LT Asf New Rating D XS2461971132 LT PIFsf Paid In Full BBB-sf D-R XS2852129878 LT BBB-sf New Rating E XS2461971561 LT PIFsf Paid In Full BB-sf E-R XS2852130025 LT BB-sf New Rating F XS2461971645 LT PIFsf Paid In Full B-sf F-R XS2852130371 LT B-sf New Rating Transaction Summary GoldenTree Loan Management EUR CLO 6 DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of corporate rescue loans, senior unsecured, mezzanine, second-lien loans and high-yield bonds. Net proceeds from the notes were used to refinance the existing notes and fund a portfolio with a target par of EUR425 million. The portfolio is managed by GLM II, LLC. The collateralised loan obligation (CLO) envisages a 4.5-year reinvestment period and a 7.5-year weighted average life (WAL) test. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'. The Fitch-weighted average rating factor (WARF) of the identified portfolio is 24.4. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-weighted average recovery rate (WARR) of the identified portfolio is 62.7%. WAL Step-Up Feature (Neutral): The transaction can extend the weighted average life (WAL) by one year at the step-up date at one year after closing. The WAL extension is subject to conditions including satisfying the portfolio-profile, collateral-quality, coverage tests and meeting the reinvestment target par, with defaulted assets at their collateral value on the step-up date. Diversified Portfolio (Positive): The transaction has four matrices, two effective at closing and two effective one year post-closing. All four matrices are based on fixed-rate limits of 10% and 12.5 and a top-10 obligor concentration limit of 25%. The closing matrices correspond to a 7.5-year WAL test while the forward matrices correspond to a 6.5-year WAL test. The switch to the forward matrices is subject to the aggregate collateral balance (defaulted obligations at Fitch-calculated collateral value) being at least equal to the target par amount. Portfolio Management (Neutral): The transaction has a 4.5-year reinvestment period and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL Fitch modelled is 12 months less than the WAL covenant. This is to account for the strict reinvestment conditions envisaged after the reinvestment period. These include, among others, passing both the coverage tests and the Fitch 'CCC' limit post reinvestment as well as a WAL covenant that progressively steps down over time, both before and after the end of the reinvestment period. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during the stress period. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) across all ratings and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no impact on the class X-R to C-R debt, but would lead to downgrades of no more than one notch for the class D-R and E-R notes, and to below 'B-sf' for the class F-R notes. Downgrades, which are based on the identified portfolio, may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of defaults and portfolio deterioration. Due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio, the class B-R to E-R notes display a rating cushion of two notches and the class F-R notes of three notches. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded either due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR across all ratings and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to four notches for the class A-R debt, of three notches for the class B-R to D-R notes and to below 'B-sf' for the class E-R and F-R notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the RDR across all ratings and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to three notches for the rated notes, except for the 'AAAsf' rated notes. During the reinvestment period, upgrades, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the remaining life of the transaction. After the end of the reinvestment period, upgrades, except for the 'AAAsf' notes, may result from a stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other nationally recognised statistical rating organisations and/or European securities and markets authority-registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG CONSIDERATIONS Fitch does not provide ESG relevance scores for GoldenTree Loan Management EUR CLO 6 DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose in the key rating drivers any ESG factor which has a significant impact on the rating on an individual basis. TIKEHAU CLO XII: S&P Assigns Prelim B- (sf) Rating to Cl. F Notes ----------------------------------------------------------------- S&P Global Ratings assigned preliminary credit ratings to Tikehau CLO XII DAC's class A to F European cash flow CLO notes. At closing, the issuer will issue unrated subordinated notes. Under the transaction documents, the rated notes will pay quarterly interest unless a frequency switch event occurs. Following this, the notes will permanently switch to semiannual payments. The portfolio's reinvestment period will end approximately 4.6 years after closing, while the non-call period will end 1.5 years after closing. 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 Global Ratings' weighted-average rating factor 2,909.84 Default rate dispersion 410.11 Weighted-average life (years) 4.98 Weighted-average life (years) extended to cover the length of the reinvestment period 4.98 Obligor diversity measure 115.36 Industry diversity measure 20.51 Regional diversity measure 1.19 Transaction key metrics CURRENT Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 0.00 'AAA' weighted-average recovery (%) 36.91 Floating-rate assets (%) 94.70 Weighted-average spread (net of floors; %) 4.17 S&P said, "Our preliminary ratings reflect our assessment of the preliminary collateral portfolio's credit quality, which has a weighted-average rating of 'B'. We understand that at closing the portfolio will be well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, we have conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we used the EUR400 million target par amount, the actual weighted-average spread (4.17%), the actual weighted-average coupon (5.67%), and the actual portfolio weighted-average recovery rates for all rated notes. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Our credit and cash flow analysis show that the class B-1, B-2, C, D, E, and F notes benefit from break-even default rate and scenario default rate cushions that we would typically consider to be in line with higher ratings than those assigned. However, as the CLO is still in its reinvestment phase, during which the transaction's credit risk profile could deteriorate, we have capped our preliminary ratings on the notes. The class A notes can withstand stresses commensurate with the assigned preliminary ratings. "Until the end of the reinvestment period on March 15, 2029, the collateral manager may substitute assets in the portfolio for so long as our CDO Monitor test is maintained or improved in relation to the initial ratings on the notes. This test looks at the total amount of losses that the transaction can sustain as established by the initial cash flows for each rating, and compares that with the current portfolio's default potential plus par losses to date. As a result, until the end of the reinvestment period, the collateral manager may through trading deteriorate the transaction's current risk profile, if the initial ratings are maintained. "Under our structured finance sovereign risk criteria, we expect the transaction's exposure to country risk to be sufficiently mitigated at the assigned preliminary ratings. "At closing, 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. We expect the transaction's legal structure and framework to be bankruptcy remote. The issuer is expected to be a special-purpose entity that meets our criteria for bankruptcy remoteness. "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 class A to F notes. "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we have also included the sensitivity of the ratings on the class A to E notes based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category--and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met--we have not included the above scenario analysis results for the class F notes." Environmental, social, and governance S&P regards the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with its benchmark for the sector. For this transaction, the documents prohibit assets from being related to certain activities, including but not limited to, the following: trade of illegal drugs or narcotics; electrical utilities under certain conditions; oil and gas producers under certain conditions; one whose revenues are more than 25% derived from production or trade of highly hazardous chemicals, highly hazardous pesticides, highly hazardous waste or ozone-depleting substances; one whose revenues are more than 5% derived from sale of civilian firearms; one whose revenues are more than 5% derived from tobacco and tobacco-related products including e-cigarettes; one whose revenues are more than 1% derived from sale or extraction of thermal coal, coal based power generation, or oil sands; one whose any revenue is from pornography, prostitution, or payday lending; in violation of "The Ten Principles of the UN Global Compact". Accordingly, since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities. Ratings PRELIM. PRELIM. AMOUNT CLASS RATING* (MIL. EUR) SUB (%) INTEREST RATE§ A AAA (sf) 248.00 38.00 Three/six-month EURIBOR plus 1.34% B-1 AA (sf) 27.80 27.30 Three/six-month EURIBOR plus 1.90% B-2 AA (sf) 15.00 27.30 5.25% C A (sf) 25.20 21.00 Three/six-month EURIBOR plus 2.30% D BBB- (sf) 27.00 14.25 Three/six-month EURIBOR plus 3.25% E BB- (sf) 17.00 10.00 Three/six-month EURIBOR plus 5.96% F B- (sf) 14.00 6.50 Three/six-month EURIBOR plus 8.15% Sub. Notes NR 32.20 N/A N/A *The preliminary ratings assigned to the class A, B-1, and B-2 notes address timely interest and ultimate principal payments. The preliminary ratings assigned to the class C, D, E, and F notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. ========= I T A L Y ========= FIMER SPA: Aug. 31 Deadline to Submit Expressions of Interest Set ----------------------------------------------------------------- Prof. Dr. Eugenio D'Amico, Avv. Maurizio Ascione Ciccarelli and Prof. Dr. Gerardo Losito, The Special Commissioners of FIMER S.p.A. under Extraordinary Administration, with registered office in Milan (20144), 25 Via Tortona Tax Code 09286180154, VAT Id. number 01574720510, intend to call for expressions of interest in submitting bids for the transfer by assignment, inseparably and as a whole of: a. the business complex owned and operated by Fimer at its plant in Terranuova Bracciolini (AR) consisting essentially of (i) real estate located in Terranuova Bracciolini (AR); (ii) plant, machinery and equipment; (iii) inventories (consisting essentially of raw materials and goods in progress); (iv) certifications, authorisations, permits et similia; (v) employment contracts (266 employees to this date); (vi) other contracts resulting in receivables and payables; (vii) movable assets including registered assets; (viii) intellectual property rights, Know how, trademarks and patents; b. the foreign equity investments held by Fimer in (i) Fimer India Private Limited (industrial and commercial) (100 percent of the latter's capital); (ii) Fimer Singapore Pte. Ltd. (commercial and services) (100 percent of the latter's capital); (iii) Marici Taiwan Co. Ltd. (commercial and services) (100 percent of the latter's capital); (iv) Fimer Turkey Yenilenebilir Enerji Sistemleri Ticaret Anonim Şirketi (commercial and services) (100 percent of the latter's capital); (v) Fimer Inc. (USA) (commercial and services) (100 percent of the latter's capital); and (vi) Marici Australia Holdings Pty Limited (commercial and services) (100 percent of the latter's capital), hereinafter referred to as, jointly and inseparably, the "Fimer Business Complex." The Application for Admission and all documentation attached to it must be written in Italian. Should the Application for Admission and/or any documents be in a language other than Italian, they must be accompanied by a sworn translation. In any case, only the Italian language translation will be considered. The Application for Admission must be sent, complete with the documents and statements provided in this Call, to the certified e-mail address: as1.2023milano@pecamministrazionestraordinaria.it and/or to the ordinary e-mail address as1.tender@fimer.com indicating as subject line "Expression of Interest in submitting binding bids for the transfer, inseparably and as a whole, of the Fimer Business Complex." Applications for Admission must be received by August 31, 2024 at 15:00 CET. Should the interested parties wish to receive further explanations and/or information in connection with the submission of the Application for Admission, they may request them by sending appropriate communication in Italian, exclusively by e-mail, to the PEC address as1.2023milano@pecamministrazionestraordinaria.it and or to the ordinary e-mail address as1.tender@fimer.com. FIMER is an Italian company that deals -- also through its foreign subsidiaries -- in the production and marketing of string and centralised inverters as well as systems for charging electric vehicles, with two industrial plants located in Italy, Terranuova Bracciolini (AR), and India. In a judgment dated October 5, 2023, the Court of Milan declared the state of insolvency of the Company, pursuant to Article 8 of Legislative Decree No. 270 of July 8, 1999 (the "Prodi bis Law") and appointed Avv. Maurizio Ascione Ciccarelli, Prof. Dr. Eugenio D'Amico and Prof. Dr. Gerardo Losito as Judicial Commissioners, assigned with the management of the company. In an order dated November 30, 2023, the Court of Milan, judging that FIMER met the requirements under Art. 27 of Legislative Decree 270/1999, opened the Extraordinary Administration procedure and ordered that the business activities would continue "under the management of the Judicial Commissioners, until the Ministry of Enterprise and Made in Italy takes measures in accordance with Art. 38 of Legislative Decree 270/1999". By decree dated December 7, 2023, published in the Official Gazette No. 295 of December 19, 2023, the Minister of Enterprise and Made in Italy (the "Ministry") appointed Avv. Maurizio Ascione Ciccarelli, Prof. Dr. Eugenio D'Amico and Prof. Dr. Gerardo Losito (the "Special Commissioners" or the "Commissioners") as Special Commissioners of the Company. RINO MASTROTTO: Fitch Puts Final 'B+' LongTerm IDR, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has assigned Rino Mastrotto Group S.p.A. (RMG) a final first-time Long-Term Issuer Default Rating (IDR) of 'B+' with a Stable Outlook. At the same time, Fitch has assigned RMG's senior secured notes (SSN) of EUR320 million a final rating of 'BB-' with a Recovery Rating of 'RR3'. The proceeds from the SSNs are being used to refinance existing bank debt of around EUR187 million and to pay EUR124 million dividends to its shareholders plus transaction fees. The final rating is in line with the expected rating Fitch assigned on 8 July 2024 (see Fitch Assigns Rino Mastrotto Group First-Time 'B+(EXP)' IDR; Outlook Stable), and the SSN terms broadly conform to the information already received. RMG's IDR reflects niche-scale operations with certain customer concentration, which are balanced by its entrenched role as a supplier of customised intermediate leather and textile products to premium and luxury clients in fashion, automotive & mobility and interior design. It also has a resilient business model with strong EBITDA margins and healthy free cash flow (FCF), in combination with moderate leverage. The Stable Outlook reflects its view that RMG will continue its profitable growth, which will help reduce EBITDA leverage towards 4.0x by 2026 from around 5.0x at end-2024. Key Rating Drivers Narrow Product Range; Bespoke Offering: RMG's rating reflects its narrow product range with 82% of 2023 EBITDA (pro-forma (PF) for acquisitions) from leather, 16% from textile & components and the remainder from value-added services. The limited product offering is balanced by a bespoke product approach, which supports high customer retention and longstanding customer relationships. Top clients in the luxury segment have low incentives to change suppliers due to high customisation and low price sensitivity. In the automotive segment, client retention spans the lifecycle of models of five-to-seven-years on average. Entrenched Position in Niche Luxury: RMG's business risk profile benefits from long-lasting relationship with global premium and luxury fashion companies and automotive original equipment manufacturers, and Fitch expects this trend to continue. Concentration risk stems from its top five clients accounting for 34% of 2023 PF revenue, but Fitch views the risk of customer loss as highly unlikely. RMG's longstanding relationships with its top clients in the luxury and automotive segments span between 14 and 20 years and the company has a 99% retention rate in its luxury creation segment. Increased Exposure to Luxury Segment: Fitch takes a positive view of RMG's recent increased focus on premium and luxury fashion, which accounted for 51% of 2023 PF revenue. This increases its exposure to soft luxury, which is more resilient in economic downturns, especially in high-end products. The strategic switch to the luxury segment, which Fitch estimates will grow at mid-to-high-single digits a year until 2028, allows RMG to diversify away from a volatile automotive business (33% of PF 2023 revenue). However, Fitch projects the automotive segment to recover, starting from 2026 after a pronounced contraction in 2024 and a mild decline in 2025 as contracted revenue kicks in. Efficient Cost Management Supports Profitability: RMG has shown resilient operating performance through the cycle, with efficient management of volatile prices for hides and chemicals - its key raw materials. It has optimised input costs and passed on costs increases to customers by regularly renegotiating selling prices in the luxury segment and by contracted mechanisms in the automotive segment. Fitch therefore expects Fitch-adjusted EBITDA margin to improve) to 21.5% by 2028 from 18.4% in 2023 (PF for recent acquisitions). Margin Expansion Drives Deleveraging: Fitch forecasts EBITDA leverage at 4.9x at end-2024, which is high for the rating. The Stable Outlook reflects its expectation that leverage will fall below 4.5x by 2026, on gradual EBITDA margin expansion as RMG increases its focus on the more profitable luxury segment, raises productivity, introduces a more efficient tanning process and sources certain production processes in-house. Healthy FCF: EBITDA margin expansion, coupled with modest capex needs (with 1% maintenance capex intensity and overall capex intensity at 3%-4% until 2028), manageable interest expense and contained working-capital outflows, will underpin healthy FCF generation. Fitch estimates FCF margins will be sustained at mid-single digits until end-2026, and increase to above 8% by 2027. This is strong and will support the company's rating at the upper end of the 'B' category. Transformative M&A Event-Risk: RMG has grown organically, complemented by several smaller M&A, some of which were debt-funded. Fitch expects the company will continue to make small add-on acquisitions by reinvesting around EUR10 million-EUR15 million of FCF, aimed at internalising certain production processes. Material debt-funded transformative M&As are not part of its rating case and will be treated as an event risk. Derivation Summary Fitch does not rate direct peers of RMG, which acts as a supplier in consumer products manufacturing. However, Fitch considered Golden Goose S.p.A. (B+/Stable) and Flos B&B Italia S.p.A. (B/Stable), which share certain similar credit factors and are exposed to the industries of fashion and interior design. RMG is rated in line with Golden Goose, a luxury footwear producer and retailer. RMG is smaller in revenue and EBITDA and has weaker operating margin than Golden Goose. However, RMG's credit profile benefits from higher operating resilience due to exposure to the higher-end luxury segment and presence in different end-markets of fashion, automotive & mobility and interior design. Golden Goose is exposed to a single fashion category, and faces fashion and retail risks, with concentration on a single product. RMG is rated above Flos B&B Italia (previously known as IDG), a high-end lighting and furniture producer, which is bigger in scale and more diversified by products. This is balanced by RMG's broadly similar estimated EBITDA margins but stronger expected FCF margins and lower projected leverage at 4.5x in 2025 versus Flos B&B Italia's around 5.0x. Fitch also views RMG's operations as more resilient to economic downturns due to exposure to luxury fashion and its established long-term relationships with key customers. Key Assumptions Fitch's Key Assumptions Within Its Rating Case for the Issuer - Organic revenue flat in 2024, followed by 6% growth annually over 2025-2028 - EBITDA at 18.9% of gross revenues (including other income) in 2024, gradually increasing to 21.5% in 2028 - Effective interest rate of 6.9% in 2025, before declining to 6.3% in 2028, in line with Fitch's forecasts - Capex at around 3.6% of revenues over 2024-2028 - M&A spending of around EUR10 million-EUR15 million a year - Restricted cash of EUR25 million for daily operations of the business Recovery Analysis - The recovery analysis assumes that RMG will be considered as a going concern (GC) rather than liquidated in bankruptcy given its strong market position and the long-term relationship with customers - Fitch assumed 10% administrative claim and EUR33.6 million of securitisation (drawn amount at end-2023), which are unavailable during restructuring and hence deducted from the enterprise value (EV) - The estimated GC EBITDA of EUR55 million reflects the level of earnings required for the company to sustain operations as a GC in unfavourable market conditions of shrinking volumes and with an inability to pass on cost increases - Fitch assumed a 5.5x EV/EBITDA multiple, reflecting RMG's healthy underlying operating and FCF margins and attractive luxury segment fundamentals. This EV/EBITDA multiple is in line with that of Golden Goose but below Flos B&B Italia's 6.0x due to the latter's larger scale - Post-refinancing RMG's debt consists of a EUR50 million super senior revolving credit facility (RCF) due in 2031 (six months before the SSNs) and EUR320 million SSNs due in 2031. The RCF is prior-ranking and, in accordance with Fitch's rating criteria, Fitch assumes it to be fully drawn prior to distress. The SSNs rank after the RCF and EUR6.7 million bilateral bank facilities - Its waterfall analysis generates a ranked recovery for the SSNs in the 'RR3' band, indicating a 'BB-' rating. The waterfall analysis output percentage on current metrics and assumptions is 59%. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - An upgrade is unlikely in the medium term given the limited scale of the company. Increased revenue base, lower customer concentration and EBITDA materially above EUR100 million will be considerations for a positive rating action, in combination with - EBITDA leverage below 3.0x on a sustained basis - EBITDA interest coverage above 4.0x - FCF margin sustained in high single digits Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - EBITDA leverage exceeding 4.5x on a sustained basis - EBITDA interest coverage below 3.0x - FCF margin below 4.0% on a sustained basis Liquidity and Debt Structure Comfortable Liquidity: Post-refinancing, Fitch estimates RMG has a EUR53 million cash balance and a EUR50 million RCF, which Fitch expects to remain fully undrawn for 2024-2028. Fitch projects a continuous build-up of cash leading to year-end freely available cash in excess of EUR100 million by end-2028, supported by sustainable positive FCF generation, from which Fitch deducts EUR25 million as the minimum cash amount required for daily operations. All this leads to a comfortable liquidity position. Debt Structure: RMG has a concentrated debt structure, with its debut EUR320 million seven-year SSNs. The new EUR50 million RCF matures six months before the notes. It has no major maturities before the SSNs come due. Issuer Profile RMG is an Italian manufacturer of customised leather & textile intermediate products for luxury fashion houses, automotive & mobility and interior design industries. Date of Relevant Committee 25 June 2024 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 ----------- ------ -------- ----- Rino Mastrotto Group S.p.A. LT IDR B+ New Rating B+(EXP) senior secured LT BB- New Rating RR3 BB-(EXP) =================== L U X E M B O U R G =================== COVIS FINCO: EUR309.6MM Bank Debt Trades at 56% Discount -------------------------------------------------------- Participations in a syndicated loan under which Covis Finco Sarl is a borrower were trading in the secondary market around 43.8 cents-on-the-dollar during the week ended Friday, July 26, 2024, according to Bloomberg's Evaluated Pricing service data. The EUR309.6 million Term loan facility is scheduled to mature on February 18, 2027. About EUR290.2 million of the loan is withdrawn and outstanding. Covis Finco SARL is an entity affiliated with Covis Pharma, which is backed by Apollo Global Management. Covis Pharma distributes pharmaceutical products for patients with life-threatening conditions and chronic illnesses. Finco is the borrower under a term loan facility used to refinance existing debt and refinance the debt incurred to finance products acquired from AstraZeneca. Finco has its registered office in Luxembourg. ============= R O M A N I A ============= DIGI COMMUNICATIONS: Fitch Assigns BB LongTerm IDR, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has assigned Digi Communications N.V. (Digi) a first-time Long-Term Issuer Default Rating (IDR) of 'BB'. The Outlook is Stable. The rating reflects Digi's strong market positions in Romania in both the fixed-line and mobile segments, increasing geographic diversification, strong growth prospects and moderate leverage. This is balanced against expected negative free cash flow (FCF) over the next five years due to investments in its international markets, high execution risks in launching operations in Portugal and Belgium, partial ownership of networks in some operations outside Romania, fairly low profitability and manageable foreign exchange (FX) risks. The Stable Outlook reflects its expectation that Digi will continue generating sufficiently strong cash flow in Romania to cover international expansion, with EBITDA net leverage remaining within its rating thresholds and trending towards its upgrade sensitivity by end-2028. Access to capital markets and proactive management of its asset base to mitigate refinancing risk are key to maintaining the 'BB' rating. Key Rating Drivers Strong Domestic Position: Digi is a leading provider of fixed-broadband and pay-TV services in Romania as well as the country's third-largest mobile operator, with ANCOM-estimated subscriber market shares of 70%, 73% and 24%, respectively, at end-2023. This is underscored by Digi's domestic EBITDAal margin (company-defined) of 39% with strong cash generation. Fitch expects Digi to maintain its solid market positions, supported by an advanced fibre network, the expansion of its mobile network including 5G services and its offer of fixed-mobile convergent services. Geographic Diversification, Executions Risks: Digi plans to launch operations in Portugal and Belgium in 2024 (in the latter country via a joint venture (JV) with Citymesh), becoming the fourth fixed-line and mobile operator. This will improve its geographic diversification but will also increase execution risk. The development pace in new markets will depend on competitor reaction and market growth. Its base case assumes no dividends from the Belgian JV in the next five years, while Fitch expects EBITDA in Portugal to turn positive only in 2027. This, together with investments in networks, will continue to keep Digi's total FCF negative until 2028. Growing Scale in Spain: As a remedy taker, Digi is purchasing 60 megahertz of spectrum in the mid- to high-band frequency ranges from the merged Orange-MasMovil in Spain. This could allow Digi to build its own mobile network in some parts of the country and deploy a hybrid network model in the medium term. Digi has also recently signed a new long-term national roaming and RAN-spectrum sharing agreement with Telefonica effective from early 2025. Fitch expects this to support revenue growth in Spain of 13%-15% in 2024-2026 and to improve group-defined EBITDAaL margin by 4pp over 2024-2027. Strong Growth, Margin Dilution: Digi has been growing at low double digits (excluding Hungary) over the last six years. Fittch expects it to continue growing rapidly, albeit slightly slower at 6%-10% in 2024-2027, supported by an increasing mobile customer base in Romania as well as expanding scale in Spain and Portugal. Expansion in these markets will support the group's overall growth and increase exposure to higher-rated countries, but at the expense of lower margins. Fitch expects group-defined EBITDAaL margins of 18%-22% in Spain and to be flat to negative in Portugal in 2024-2027, compared with 39% in Romania. The lower margins could, however, be offset by declining capex in the long run. Capex to Pressure Cash Flow: Digi's high capex results in negative FCF despite substantial operating cash flow. Its capex (as defined by Fitch, excluding amortisation of subscriber acquisition and content costs) was 31%-39% of its revenue in 2021-2023, resulting in negative post-dividend FCF margins. These capex needs are likely to prevail over the medium term due to continued fixed- and mobile network upgrades and expansion in Spain, Portugal and Belgium. Fitch expects capex to remain at 32% of revenue in 2024, before gradually decreasing to 20% in 2027. Moderate Leverage: Fitch expects EBITDA net leverage to decrease to 2.6x in 2024 following the repayment of 2024-2025 debt maturities using a combination of available cash, proceeds from its fibre-assets sale in Spain and additional debt. However, Fitch expects high capex needs to keep EBITDA net leverage at 2.5-2.8x in 2025-2026 before it gradually falls to 2.2x in 2028 on expanding scale, improving profitability and lower capex needs. Digi's deleveraging may be delayed by debt-funded M&A activity. Significant acquisitions will be treated as event risk. Partial Network Ownership: Digi fully owns its fixed-line and mobile networks in Romania, but in Spain it is only a mobile virtual network operator with partial ownership of the fixed-line network following the sale of fibre assets. Fitch regards network ownership as one of the key factors in its assessment of telecoms operators as it supports higher profitability and better visibility of cash flow generation. Partial network ownership as well as execution risks related to new operations in Portugal and Belgium result in tighter leverage thresholds per rating band for Digi versus peers that retain full ownership of their networks and benefit from established scaled operations. Manageable FX Risk: At end-2023, Digi had 87% of its total debt as well as 40%-60% of capex and 50% of operating costs denominated in hard currencies, while 60% of revenue was in Romanian leu. However, Digi's operations in Spain and Italy, together with 30% of revenue in Romania being linked to the euro and the historical broad stability of the Romanian leu, reduce the scale of the mismatch and make FX risk manageable. Derivation Summary Digi is rated at the same level as its peer Iliad SA (BB/Stable), which is also using strong domestic cash generation to fund international expansion in new markets including start-up operations. However, Digi's leverage sensitivities are tighter for the 'BB' rating than Iliad's, as the latter has stronger FCF generation, lower execution risks, stronger market positions in non-domestic markets, greater scale and higher profitability. Fitch views Digi's operating profile as weaker than that of single-market operators Telenet Group Holding N.V (BB-/Stable), VMED O2 UK Limited (BB-/Negative) and VodafoneZiggo Group B.V. (B+/Stable) as these companies have lower exposure to early-stage investments, stronger profitability, better FCF generation, greater scale, full ownership of their fixed-line and mobile networks and no FX risks. This is reflected in Digi's tighter leverage thresholds than for these peers. However, they are rated lower than Digi as it has lower leverage. Digi has slightly tighter leverage thresholds compared with VEON Ltd. (BB-/Negative), whose higher emerging market and FX risks are counterbalanced by strong market positions in all its countries of operations with full ownership of networks, higher margins and greater scale. Key Assumptions - Revenue to grow 9%-10% in 2024-2025, before slowing to 6% in 2027 - Fitch-defined EBITDA margin of 22% in 2024 and 21% in 2025, before gradually improving to 23% in 2027 - Capex including spectrum at 32% of revenue in 2024, gradually declining to 20% by 2027 - Dividends of EUR24 million in 2024 increasing to EUR28 million a year in 2026-2027 - Proceeds from the fibre-asset sale of EUR485 million received in 2024 with the remainder to be received over 2025-2027. Fitch assumes this will support the repayment of the 2024-2025 debt maturities RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustained competitive positions in Romania and reduced executions risks with improved scale and market positions in Spain, Portugal and Belgium - Cash flow from operations less capex/debt trending up to 9% or above on a sustained basis - A disciplined financial policy that sustains Fitch-defined EBITDA net leverage at below 2.2x Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Weakening market positions and cash flow in Romania or increasing cash flow requirements in Spain, Portugal and Belgium leading to higher-than-expected cash burn or peak funding requirements - Deteriorating liquidity, with notably weaker funding access and limited headroom under committed credit facilities or from asset disposals - Fitch-defined EBITDA net leverage above 3.0x on a sustained basis - Inability to reach CFO-capex/debt of 7.5% in the medium-to-long term - Increased volatility of Romanian leu leading to greater FX risks Liquidity and Debt Structure Satisfactory liquidity: At end-1Q24, Digi had cash and cash equivalents of EUR165 million and a fully undrawn EUR100 million-equivalent revolving credit facility. It also had EUR695 million of short-term debt consisting of EUR450 million in bonds and EUR242 million in term loans. Fitch expects refinancing to be manageable, supported by proceeds from the sale of Spanish fibre assets in 2024, cash on balance and additional debt facilities, including a EUR150 million three-year term loan signed in June 2024, a EUR50 million bridge facility signed in 1Q24 and an undrawn facility of EUR150 million signed in 2023. Issuer Profile Digi is an integrated provider of telecommunication services on the Romanian and Spanish markets and a mobile virtual network operator in Italy. 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 ----------- ------ Digi Communications N.V. LT IDR BB New Rating MAS PLC: Fitch Puts 'BB' LongTerm IDR on Watch Negative ------------------------------------------------------- Fitch Ratings has placed the Romania-based real estate company MAS PLC's 'BB' Long-Term Issuer Default Rating (IDR) and senior unsecured rating on Rating Watch Negative (RWN). The senior unsecured rating's Recovery Rating is 'RR4'. The RWN has been triggered by MAS's announcement of PKM Development Ltd's (DJV) potential acquisition of (i) 60% of its ordinary equity from Prime Kapital (PK) that MAS does not own; and (ii) the commercial property development platform owned and utilised by PK. If this goes ahead, MAS will own 100% of DJV. Fitch expects DJV's restructuring would simplify MAS's complex corporate structure and enable MAS to access proceeds from raising and optimising debt against DJV's completed assets. Fitch expects there to be a cash outlay from DJV to acquire its shares, which may strain the group's liquidity if payable ahead of MAS's May 2026 bulk bond refinancing. Fitch expects to resolve the RWN when the final terms of the DJV restructuring, including any cash outlay and its financing sources, are known. Key Rating Drivers Potential Restructuring of DJV: DJV is contemplating buying PK's 60% share in DJV, resulting in the DJV becoming a wholly-owned subsidiary of MAS. DJV would also buy PK's development platform, enabling the continuation of property developments within the MAS group. As part of the sale, DJV will transfer to PK its residential assets and a consideration that could include shares in MAS currently owned by DJV. Depending on advised and agreed valuations, the consideration may also include a significant cash outlay. PK is a privately-owned real estate company owned by individuals that were previously also MAS management. Fitch expects to resolve the RWN when information on the final structure is available, including any potential net cash inflows and outflows that result from direct ownership of DJV's assets and its timing. Sequencing of Cash Outflows: In resolving the RWN, Fitch wants to understand the sequencing of main cash items including using MAS's existing cash resources (April 2024: around EUR81 million), possible sale of assets, raising and optimising debt financings, the cash outflows from MAS to DJV assets to fund the completion of its developments, the transaction's possible outflows to acquire 60% of DJV, and visibility of cash resources available for the repayment of the May 2026 bond (EUR173 million outstanding). Uncovered Capital Commitments: At end-April 2024, MAS estimated its commitments, including maturing debt, capex and DJV funding at EUR350 million until the financial year ending June 2026 (FYE26). The sources included EUR81 million cash and EUR110 million of secured loans signed or negotiated. MAS planned to cover the gap with additional debt and suspended dividends. The company acknowledged that raising secured debt on income-producing assets is proving more difficult than originally thought, and it also has other options, including asset disposals. Focus On 2026 Bond Maturity: If the net capital commitment materially increases due to the DJV transaction but is not covered with additional sources of capital, this may strain the group's liquidity ahead of its May 2026 bond repayment. Complex Corporate Structure: MAS's corporate structure is complicated by its relationship with the DJV, which provides it with exclusive exposure to property developments. PK controls capital allocation in the DJV, but its development projects are primarily funded through preference shares subscribed by MAS. At end-April 2024, MAS's remaining funding commitment to DJV was EUR49.8 million and EUR30 million under a revolving credit facility (RCF) provided by MAS to the DJV. The DJV has partially used preference share proceeds to acquire MAS shares. MAS disclosed that the DJV increased its ownership in MAS in 1H24. If the DJV transaction is completed, this complex structure will be simplified. Cash Flows Between MAS, DJV: MAS profits from a 7.5% coupon payable to it in cash or accrued on its preference shares in the DJV, as well as its share of common stock dividends. If the DJV transaction is completed, the preference shares will effectively cease to exist and MAS will benefit from rental income generated by DJV-owned income-producing properties. DJV Property Assets and Developments: At end-2023, the DJV had two enclosed malls, and three extensions (strip malls) to MAS directly-owned assets, with a total gross asset value (GAV) of EUR133.1 million that generated around EUR10.1 million net rent. In April 2024, the DJV completed Arges Mall (estimated value at completion of EUR156 million and estimated net rental income of EUR9.8 million). The DJV also owns a newly completed office building with an end-2023 GAV of EUR42 million. Major redevelopment and extension of an existing enclosed mall, Mall Moldova, is underway and scheduled for completion in April 2025, requiring capex to complete. Robust Operational Performance: MAS's CEE assets (including those it indirectly owns) continue to have good operational performance. During the first four months of 2024, like-for-like footfall increased 5% yoy, tenant sales by 6% and occupancy remained high at 98%. The occupancy cost ratio remained under 11%. Financial Profile: Fitch only includes cash-paid preference share coupons from the DJV's recurring rental income. MAS's 2022 acquisition of six assets from the DJV included the assumption of EUR122 million of secured debt and a cash spend of EUR90 million. This increased net debt/EBITDA to a relatively low 7.0x at FYE23. Fitch had forecast this to increase to 8.0x by FYE24 as the company raises new secured bank debt, but steadily reduce thereafter as debt is repaid and the suspension of dividends and new residential developments boost cash holdings. Derivation Summary MAS differs from other rated EMEA real estate companies in its complex corporate structure, within which new properties are exclusively developed and held through the DJV. MAS funds the DJV by subscribing to preference shares, gaining returns through a 7.5% coupon on the preference shares, as well as common dividends owing to its 40% ownership in the DJV. Peers typically directly develop and own their assets or through a JV structure. One of MAS's closest peers is NEPI Rockcastle N.V. (BBB+/Stable). The founders of PK originally set up New Europe Property Investments, the predecessor of NEPI, and MAS significantly invested in NEPI's shares in the past. NEPI is larger and more diverse than MAS with a retail portfolio of EUR6.6 billion assets across eight CEE countries with a focus on destination malls. MAS concentrates more on convenience-led shopping in secondary locations. AKROPOLIS GROUP, UAB (BB+/Stable) owns and operates a retail portfolio valued at around EUR1 billion, concentrated in five assets in Lithuania and Latvia, which means it has even higher asset and geographic concentration than MAS. All three companies let space to variety of well-known international and regional brands. Compared with western European peers, regional retailers experienced higher retail sales growth, as other jurisdictions tend to have higher and increasing e-commerce shares and an oversupply of retail space in some cases. This provides some buffer against the risk of a decline in consumer demand, increasing staff salaries or inventories prices in CEE retail markets. Key Assumptions Fitch's Key Assumptions Within Its Previous Rating Case (using FYE23 actuals) for the Issuer: - Only cash-paid preference share coupons generated from the DJV's post-interest expense, recurring rental-derived, profits (not planned residential development and sales) are included in MAS's Fitch-adjusted EBITDA. If the DJV restructuring goes ahead, Fitch will have to redefine the group and consolidate DJV accordingly. - EUR180 million of secured bank debt issued in FYE24. - No dividends in FYE24 and FYE25 and issued in line with historical levels thereafter. - Remaining Western European property disposed in FYE24 (update: delayed). - Minimal acquisitions, mainly small extensions still being held by the DJV. - In line with its previous commitment, MAS invests its remaining EUR180 million of DJV preference shares in FYE24 (this has been delayed). - Only current residential phases and commercial projects carried out in the DJV RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: - The ratings are on RWN therefore a positive rating action, including a Stable Outlook is unlikely until the RWN is resolved. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - The extent of any downgrade will reflect the near-term net cash outflows (if any) related to the DJV restructuring and the visibility of liquidity resources ahead of MAS's May 2026 bond maturity. - A 12-month liquidity score below 1.0x on a sustained basis - Material deterioration in operating metrics, such as occupancy below 90%. - Net debt/EBITDA (including cash-paid preference share coupons) exceeding 8.5x - Unencumbered investment property assets/unsecured debt below 1.5x - For notching down unsecured debt: unencumbered investment property assets/unsecured debt below 1.0x Liquidity and Debt Structure Adequate Liquidity: At end-April 2024, MAS had readily available cash of EUR81 million. MAS also had a EUR20 million RCF available that matures in November 2025 and it is in the process of procuring additional debt. Available liquidity comfortably covers small debt amortisations and capital commitments in the next 12 months. May 2026 Bond Maturity: MAS is actively managing its debt maturities to reduce its 2026 refinancing risk. In December 2023, in a tender offer it repurchased EUR81 million of its eurobond maturing in May 2026. In April 2024 an additional EUR40 million was refinanced by private placement notes with a 6.5% coupon due in April 2029. After these transactions, debt maturities in FYE26 amount to over EUR200 million, including EUR173 million outstanding under the May 2026 bond. Unencumbered Asset Pool: The unencumbered asset pool at end-December 2023 decreased to EUR436 million, but the unencumbered asset ratio remained at 2x as the proceeds from the procured secured loans were used to prepay the unsecured bond. If new secured debt proceeds are not used to prepay the unsecured bond, this ratio will inevitably decrease. Issuer Profile MAS is a real estate company owning and operating a portfolio of retail assets mainly in Romania, but also Bulgaria and Poland. The shopping centres are largely focused on secondary locations with a slant towards convenience-led stores. MAS has exposure to asset development exclusively through the DJV. ESG Considerations MAS PLC has an ESG Relevance Score of '4' for Group Structure due to the group's complexity, which includes disclosed related-party transactions (including preference shares, a previous property disposal transaction to MAS) and cross-holdings (such as the unusual circumstance of DJV owning shares in MAS). This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. MAS PLC has an ESG Relevance Score of '4' for Governance Structure due to the potential for conflicts of interest and related party transactions. While common management between MAS and the DJV has been significantly reduced, last year MAS had disclosed that the DJV owns around 10% of MAS - this increased in 1H24. MAS's majority-independent board members scrutinising most dealings and transactions, mitigating the risk of conflicts of interest. This 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 ----------- ------ -------- ----- MAS PLC LT IDR BB Rating Watch On BB senior unsecured LT BB Rating Watch On RR4 BB MAS Securities B.V. senior unsecured LT BB Rating Watch On RR4 BB =========== R U S S I A =========== UZBEK INDUSTRIAL: Fitch Puts Final 'BB-' Rating to $400MM Eurobonds ------------------------------------------------------------------- Fitch Ratings has assigned Uzbek Industrial and Construction Bank Joint-Stock Commercial Bank's (UICB) issue of USD400 million 8.95% five-year senior unsecured Eurobonds a final long-term rating of 'BB-' and a final long-term rating (xgs) of 'B(xgs)'. The assignment of the final ratings follows the receipt of documents conforming to information already received. The final ratings are the same as the expected ratings assigned to the unsecured notes (see 'Fitch Rates UICB's USD-Denominated Eurobonds 'BB-(EXP)'/'B(xgs)(EXP)' published dated 12 July 2024). Key Rating Drivers The notes' long-term rating is in line with UICB's 'BB-' Long-Term Foreign-Currency Issuer Default Rating (IDR), as all settlements are in US dollars. The notes represent direct, unconditional and senior unsecured obligations of the bank, which rank equally with its other senior unsecured obligations. UICB's 'BB-' Long-Term Foreign-Currency IDR reflects a moderate probability of support from the government of Uzbekistan, as captured by its 'bb-' Government Support Rating. This is based on its majority state ownership, the potentially low cost of support relative to the sovereign's foreign-currency reserves, and a record of support for the country's public-sector banks that dominate the banking sector. The government is planning to sell the bank's controlling stake to a strategic investor by end-2024. However, Fitch believes that state support should be available to UICB as long as it is majority state-owned. The terms of the Eurobond include financial covenants relating to UICB's compliance with regulatory capital ratios and dividend payments. A put option gives bondholders the right to seek early repayment in the event that the national government ceases to control at least 50% plus one share of the bank's issued and outstanding voting common stock, unless the issuer is acquired by an entity with a rating at least equal to the rating of the Republic of Uzbekistan. The terms also contain provisions for a call option that can be exercised by the issuer at any time prior to the maturity date. The proceeds will be used for general corporate purposes. For more details on UICB see Fitch's rating action commentary dated 5 April 2024 ('Fitch Affirms Uzbek Industrial and Construction Bank at 'BB-'; Outlook Stable'). Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The notes' long-term rating could be downgraded if the bank's Long-Term Foreign-Currency IDR was downgraded. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The notes' long-term rating could be upgraded if the bank's Long-Term Foreign-Currency IDR was upgraded. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS The ex-government support IDR of 'B(xgs)' excludes assumptions of extraordinary government support from the underlying rating on the international scale and is assigned at the level of the bank's 'b' Viability Rating (VR). OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES The notes' long-term rating (xgs) is sensitive to changes in the bank's VR. Date of Relevant Committee 03 April 2024 REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING Public Ratings with Credit Linkage to other ratings UICB's Long-Term IDRs are driven by potential support from the government of Uzbekistan (BB-/Stable). ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Uzbek Industrial and Construction Bank Joint- Stock Commercial Bank senior unsecured LT BB- New Rating BB-(EXP) senior unsecured LT (xgs) B(xgs)New Rating B(xgs)(EXP) UZBEK INDUSTRIAL: Fitch Puts Final BB- Rating to UZS2.25T Eurobonds ------------------------------------------------------------------- Fitch Ratings has assigned Uzbek Industrial and Construction Bank Joint-Stock Commercial Bank's (UICB) UZS2.25 trillion 21% three-year senior unsecured Eurobonds a final long-term rating of 'BB-' and a final long-term rating (xgs) of 'B(xgs)'. The issue is Uzbekistan soum-denominated, but all settlements are in US dollars using the exchange rate reported by the Central Bank of Uzbekistan at each settlement date. The assignment of the final ratings follows the receipt of documents conforming to information already received. The final ratings are the same as the expected ratings of assigned to the unsecured notes (see 'Fitch Rates UICB's UZS-Denominated Eurobonds 'BB-(EXP)'/'B(xgs)(EXP)' published on www.fitchratings.com dated 12 July 2024). Key Rating Drivers The notes' long-term rating is in line with UICB's 'BB-' Long-Term Foreign-Currency Issuer Default Rating (IDR), as all settlements are in US dollars. The notes will represent direct, unconditional and senior unsecured obligations of the bank, which rank equally with its other senior unsecured obligations. UICB's 'BB-' Long-Term Foreign-Currency IDR reflects a moderate probability of support from the government of Uzbekistan, as captured by its 'bb-' Government Support Rating. This is based on its majority state ownership, the potentially low cost of support relative to the sovereign's foreign-currency reserves, and a record of support for the country's public-sector banks that dominate the banking sector. The government is planning to sell the bank's controlling stake to a strategic investor by end-2024. However, Fitch believes that state support should be available to UICB as long as it is majority state-owned. The terms of the Eurobond include financial covenants relating to UICB's compliance with regulatory capital ratios and dividend payments. A put option gives bondholders the right to seek early repayment in the event that the national government ceases to control at least 50% plus one share of the bank's issued and outstanding voting common stock, unless the issuer is acquired by an entity with a rating at least equal to the rating of the Republic of Uzbekistan. The terms also contain provisions for a call option that can be exercised by the issuer at any time prior to the maturity date. The proceeds will be used for financing social and green projects in Uzbekistan. For more details on UICB see Fitch's rating action commentary dated 5 April 2024 ('Fitch Affirms Uzbek Industrial and Construction Bank at 'BB-'; Outlook Stable'). Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The notes' long-term rating could be downgraded if the bank's Long-Term Foreign-Currency IDR was downgraded. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The notes' long-term rating could be upgraded if the bank's Long-Term Foreign-Currency IDR was upgraded. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS The ex-government support IDR excludes assumptions of extraordinary government support from the underlying rating on the international scale and is assigned at the level of the bank's 'b' Viability Rating (VR). OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES The notes' long-term rating (xgs) is sensitive to changes in the bank's VR. Date of Relevant Committee 03 April 2024 REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING Public Ratings with Credit Linkage to other ratings UICB's Long-Term IDRs are driven by potential support from the government of Uzbekistan (BB-/Stable). ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Uzbek Industrial and Construction Bank Joint- Stock Commercial Bank senior unsecured LT BB- New Rating BB-(EXP) senior unsecured LT (xgs) B(xgs)New Rating B(xgs)(EXP) =========================== U N I T E D K I N G D O M =========================== 4WOOD TV: BDO LLP Named as Administrator for Film Set Creator ------------------------------------------------------------- 4Wood TV and Film Ltd was placed in administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List (ChD), Court Number: CR-2024-004102, and BDO LLP was appointed as administrators on July 23, 2024. 4Wood TV and Film Ltd is one of the leading UK set creators for TV, film, and live events. Its registered office and principal trading address is at Unit 5a Trident Industrial Park, Glass Avenue, Cardiff, CF24 5EN. The Joint Administrators may be reached at: Simon Girling BDO LLP Bridgewater House, Counterslip Bristol, BS1 6BX - and - Kiri Holland BDO LLP 55 Baker Street London, W1U 7EU For further details contact: Ben Wightman Tel: +44(0)7551 415110 E-mail: BRCMTLondonandSouthEast@bdo.co.uk A P V MARINE: Begbies Traynor Appointed as Administrators --------------------------------------------------------- A P V Marine Limited was placed in administration proceedings in the Business & Property Courts of England & Wales, Insolvency & Companies List (ChD), Court Number: CR-2024-004027, and Begbies Traynor (Central) LLP was appointed as administrators on July 22, 2024. A P V Marine Limited is a boat builder specializing in pleasure and sporting boats. Its registered office is at 5 Prospect House, Meridians Cross, Ocean Way, Southampton, SO14 3TJ. The Joint Administrators may be reached at: Simon Lowes Stephen Mark Powell Begbies Traynor (Central) LLP 5 Prospect House Meridians Cross, Ocean Way Southampton, SO14 3TJ - and - Julie Anne Palmer Begbies Traynor (Central) LLP Units 1-3 Hilltop Business Park Devizes Road, Salisbury Wiltshire, SP3 4UF Any person who requires further information may contact: Jonathan Kennedy Begbies Traynor (Central) LLP E-mail: jonathan.kennedy@btguk.com Tel: 023 8021 9820 ACT PRODUCTS: FRP to Lead Administration Proceedings ---------------------------------------------------- ACT Products Limited was placed in administration proceedings in the High Court of Justice, Business and Property Courts in Newcastle, Court Number: CR-2024-124, and FRP Advisory Trading Limited was appointed as administrators on July 23, 2024. ACT Products Limited manufactures builders' carpentry and joinery. Its registered office and principal trading business is at Old Town Depot, Depot Road, Middlesbrough TS2 1DN. The Joint Administrators may be reached at: Iain Townsend David Antony Willis FRP Advisory Trading Limited 1st Floor, 34 Falcon Court Preston Farm Business Park Stockton on Tees, TS18 3TX Tel: 01642 917555 Alternative contact: Lianne Maidman E-mail: cp.teesside@frpadvisory.com ADVANCED ONCOTHERAPY: Statement of Proposals Available ------------------------------------------------------ Pursuant to Paragraph 49(6) of Schedule B1 to the Insolvency Act 1986, and Rule 3.37(4) of the Insolvency (England and Wales) Rules 2016, members of Advanced Oncotherapy plc can write to the Joint Administrators at 2nd Floor, 110 Cannon Street, London, EC4N 6EU for a copy of the Administrator's Statement of Proposals for achieving the purpose of the Administration which will be supplied free of charge. Advanced Oncotherapy was placed in administration proceedings in the High Court of Justice, Court Number: CR-2024-002829, and FRP Advisory Trading Limited was appointed as administrators on May 30, 2024. Advanced Oncotherapy, which trades as AVO, is a specialist developer and provider of a breakthrough proton therapy system, the LIGHT system, which is the result of 25 years of work at CERN and ADAM. Its registered office is at 110 Cannon Street, London, EC4N 6EU (formerly) 143 Harley Street, Ground Floor, London, W1G 6BH. Its principal trading address is at 4 Tenterden Street London, W1S 1TE. The Joint Administrators may be reached at: David Hudson Ian James Corfield FRP Advisory Trading Limited 110 Cannon Street London, EC4N 6EU Tel: 020 3005 4000 Alternative contact: Akhil Dabasia E-mail: AVOPLC@frpadvisory.com BECK INTERIORS: Begbies Named as Administrators ----------------------------------------------- Beck Interiors Limited was placed in administration proceedings in the High Court of Justice, Business and Property Courts in Birmingham, Insolvency and Companies List (ChD), Court Number: CR-2024-BHM-000454, and Begbies Traynor (London) LLP was appointed as administrators on July 23, 2024. Beck Interiors Limited provides building construction services. The Joint Administrators may be reached at: Stephen Katz Begbies Traynor (London) LLP 31st Floor, 40 Bank Street London, E14 5NR - and - David Rubin David Birne Begbies Traynor (London) LLP Pearl Assurance House 319 Ballards Lane London, N12 8LY Any person who requires further information may contact: Chris O'Dwyer Begbies Traynor (London) LLP Tel: 020 7400 7900 E-mail: RM-team@btguk.com BKE N.E: Leonard Curtis Appointed as Administrators --------------------------------------------------- BKE N.E Ltd was placed in administration proceedings in the High Court of Justice, Business and Property Courts in Newcastle-upon-Tyne, Company & Insolvency List (ChD), Court Number: CR-2024-NCL-000128, and Leonard Curtis was appointed as administrators on July 22, 2024. BKE N.E Ltd provides management consultancy services. Its registered office and principal trading address is at The Town Hall, High Street East, Wallsend, Tyne And Wear, England, NE28 7AT. The Joint Administrators may be reached at: Iain Nairn Leonard Curtis Unit 13, Kingsway House Kingsway Team Valley Trading Estate Gateshead, NE11 0HW - and - Sean Williams Leonard Curtis 9th Floor, 7 Park Row Leeds, LS1 5HD Tel: 0191 933 1560 E-mail: recovery@leonardcurtis.co.uk Alternative contact: Ryan Butler CHARLES HENSHAW: Henderson Loggie Named as Administrators --------------------------------------------------------- Charles Henshaw & Sons Limited was placed in administration proceedings and Henderson Loggie was appointed as administrators on July 12, 2024. Charles Henshaw & Sons Limited, doing business as Henshaw, is a manufacturer and installer of integrated facade systems, providing architectural solutions for over 100 years. Its registered office and principal trading address is at Russell Road, Edinburgh, EH11 2LS. The Administrator may be reached at: Shona Campbell Henderson Loggie The Vision Building 20 Greenmarket Dundee, DD1 4QB Tel: 01382 200055 E-mail: shona.campbell@hlca.co.uk Alternative contact for inquiries on proceedings: Kendra Wyllie Tel: 01382 200055 E-mail: kendra.wyllie@hlca.co.uk DIGITAL HOME VISITS: Grant Thornton Appointed as Administrators --------------------------------------------------------------- Digital Home Visits Ltd was placed in administration proceedings in the High Court Of Justice, Insolvency & Companies List, No 003922 of 2024, and Grant Thornton UK LLP was appointed as administrators on July 16, 2024. Digital Home Visits -- https://www.dhv-group.co.uk -- is a group of Social Care Technology and Domiciliary Care Services, offering technology for monitoring individuals in their homes to ensure their safety and well-being, and to provide data for better care management. Its principal trading address is at 5 Tancred Close, Leamington Spa, Warwickshire, CV31 3RZ. The Joint Administrators may be reached at: Alistair Wardell Grant Thornton UK LLP 6th Floor, 3 Callaghan Square Cardiff, CF10 5BT Tel: 029 2023 5591. - and - Richard J Lewis Grant Thornton UK LLP 2 Glass Wharf, Temple Quay Bristol, BS2 0EL Tel: 0117 305 7600. For further information, contact: Steve P Tuffin Tel: 0191 203 7784 E-mail: Steve.P.Tuffin@uk.gt.com EIGEN TECHNOLOGIES: Statement of Proposals Available ---------------------------------------------------- Pursuant to Paragraph 49(6) of Schedule B1 to the Insolvency Act 1986 and Rule 3.37(1) of the Insolvency (England and Wales) Rules 2016, members of ETL Realisations 2024 Limited, previously known as Eigen Technologies Limited, can write to the Joint Administrators by post to: Alexander Zografakis Cork Gully LLP 40 Villiers Street London, WC2N 6NJ Email: alexanderzografakis@corkgully.com for a copy of the Joint Administrators' Statement of Proposals for achieving the purpose of the Administration, which will be supplied free of charge from July 29, 2024. Eigen Technologies Ltd was placed in administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List (ChD), Court Number: CR-2024-003370, and Cork Gully LLP was appointed as administrators on June 5, 2024. Eigen Technologies is a business and domestic software developer. Its principal trading address is at Fetter Yard, 86 Fetter Lane, London, EC4A 1EN. The Joint Administrators may be reached at: Stephen Robert Cork Mark Smith Cork Gully LLP 40 Villiers Street London, WC2N 6NJ For further details, contact: Alexander Zografakis E-mail: alexanderzografakis@corkgully.com FIRST CITY FIRE: KBL to Lead Administration Proceedings ------------------------------------------------------- First City Fire and Security Limited was placed in administration proceedings in the High Court of Justice Business and Property Courts in Liverpool, No CR-2024-LIV-0201 of 2024, and KBL Advisory Limited was appointed as administrators on July 17, 2024. First City Fire and Security Limited is an independent specialist provider of fire alarm systems, security systems and modern access control solutions. The Company is previously known as Rentpulse Limited. Its registered office is at Stamford House, Northenden Road, Sale, Greater Manchester, M33 2DH. Its principal trading address is at Unit 2, Longstone Road, Manchester, Greater Manchester, M22 5LB. The Joint Administrator may be reached at: Steve Kenny Richard Cole KBL Advisory Limited Stamford House Northenden Road, Sale Cheshire, M33 2DH For further information, contact: Dan Cookson KBL Advisory Limited Tel: 0161 637 8100 E-mail: Daniel.Cookson@kbl-advisory.com HAMILTON CAPITAL: Voscap Appointed as Administrators ---------------------------------------------------- Hamilton Capital Holding Ltd was placed in administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List, Court Number: CR-2024-004323, and Voscap Limited was appointed as administrators on July 19, 2024. Hamilton Capital Holding Ltd provides management consultancy services. Its registered office and principal trading address is at Aurora House, 71-75 Uxbridge Road, London, W5 5SL. The Joint Administrators may be reached at: Ian Goodhew Abigail Shearing Voscap Limited 67 Grosvenor Street, Mayfair London, W1K 3JN For further details, please contact: William Belsey-Farrer Tel: 0203 709 7872 E-mail: william.belsey-farrer@voscap.co.uk HERMITAGE 2024: Fitch Assigns 'BB+sf' Final Rating to Cl. E Notes ----------------------------------------------------------------- Fitch Ratings has assigned Hermitage 2024 Plc final ratings, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Hermitage 2024 Plc Class A XS2847616344 LT AAAsf New Rating AAA(EXP)sf Class B XS2847616773 LT AA+sf New Rating AA+(EXP)sf Class C XS2847616856 LT Asf New Rating A(EXP)sf Class D XS2847616930 LT BBBsf New Rating BBB(EXP)sf Class E XS2847617078 LT BB+sf New Rating BB+(EXP)sf Class F XS2847617235 LT NRsf New Rating NR(EXP)sf Transaction Summary Hermitage 2024 Plc is the second securitisation of equipment finance receivables originated by Haydock Finance Limited (Haydock) to SME borrowers in the UK. Affiliates of funds managed by Apollo Global Management, Inc. acquired a majority stake in Haydock in 2018. KEY RATING DRIVERS Moderate Obligor Credit Risk: Fitch assumed a default base case of 8%, 1pp lower than initially set for Hermitage 2023. Recent performance has been stable, despite a challenging operating environment for SMEs. Haydock targets riskier segments than prime-only lenders, resulting in higher interest rates and an increased focus on asset recovery value. This is reflected in the moderately high base case, which also incorporates its expectation that performance will worsen relative to vintages that benefited from government support measures during the pandemic. The 'AAA' default multiple was set at 4.0x, resulting in a 'AAA' default rate of 32%. Pro Rata Increases Risk: The class A to E notes and the unrated class F notes amortise pro-rata with one another until the breach of certain triggers. This is a material change from Hermitage 2023, which is fully sequential. In Fitch's view, this increases tail risk, and makes the ratings more sensitive to default timing and prepayment rates. Fitch analysed the package of triggers in its cash flow modelling and believe they are adequate to mitigate the risk at the assigned ratings. Limited Portfolio Concentration: Obligor concentrations are higher than in a typical EMEA ABS pool due to the commercial nature of the borrowers and the presence of some high value assets. However, the pool is still sufficiently granular for Fitch's Consumer ABS Rating Criteria approach to apply. The largest obligor comprises 0.6% of the total pool balance. There is wide diversification across industries, asset types and geographies. Heterogenous Equipment Collateral: The loans finance many asset types, including heavy goods vehicles, light commercial vehicles, prestige vehicles, industrial machinery and buses. Haydock focuses on business-critical, high recovery and easily-movable assets. This supports strong recoveries. Fitch assigned a recovery base case of 60%. Fitch also applied an above-median 'AAA' recovery haircut of 55%. The secured nature of recoveries is a strength, but there is risk of volatility stemming from exposure to larger, more specialised and higher-value assets. Servicing Continuity Risk Addressed: The credit risk of the obligors and the heterogeneity of the financed equipment increases the complexity of finding replacement servicers. However, Fitch views the risk as adequately mitigated by the presence of back-up servicer and the availability of liquidity to preserve timely payments on the notes during the transition period. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade This section provides insight into the model-implied sensitivities the transaction faces when one assumption is stressed, while holding others equal. The modelling process uses the estimation and stress of these variables to reflect asset performance in a stressed environment. The results below should only be viewed as one potential outcome, as the transaction is exposed to multiple dynamic risk factors. It should not be used as an indicator of future performance. Rating sensitivity to increased default rates: Increase default rate by 10% / 25% / 50% Class A: 'AAAsf' / 'AA+sf' / 'AAsf' Class B: 'AA+sf' / 'AAsf' / 'A+sf' Class C: 'Asf' / 'A-sf' / 'BBB+sf' Class D: 'BBBsf' / 'BBB-sf' / 'BB+sf' Class E: 'BB+sf' / 'BB+sf' / 'BBsf' Rating sensitivity to reduced recovery rates: Reduce recovery rate by 10% / 25% / 50% Class A: 'AAAsf' / 'AAAsf' / 'AA+sf' Class B: 'AA+sf' / 'AA+sf' / 'AA-sf' Class C: 'Asf' / 'A-sf' / 'BBBsf' Class D: 'BBBsf' / 'BBB-sf' / 'BB+sf' Class E: 'BB+sf' / 'BB+sf' / 'BB-sf' Rating sensitivity to increased default rates and reduced recovery rates: Increase default rate and reduce recovery rate each by 10% / 25% / 50% Class A: 'AAAsf' / 'AA+sf' / 'A+sf' Class B: 'AAsf' / 'AA-sf' / 'A-sf' Class C: 'A-sf' / 'BBBsf' / 'BBsf' Class D: 'BBB-sf' / 'BB+sf' / 'B-sf' Class E: 'BB+sf' / 'BB-sf' / 'NRsf' Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Rating sensitivity to reduced default rates and increased recovery rates: Reduce default rate and increase recovery rate each by 10% Class B: 'AAAsf' Class C: 'AA-sf' Class D: 'A-sf' Class E: 'BBB+sf' The class A notes are already rated at 'AAAsf', which is the highest level on Fitch's scale and and cannot be upgraded. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch 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 any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. HYPERTUNNEL LIMITED: Opus Restructuring Named as Administrators --------------------------------------------------------------- hyperTunnel Holdings and hyperTunnel Limited were placed in administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List, Court Numbers: CR-2024-004357 and 2024-004359, and Opus Restructuring LLP was appointed as administrators on July 23, 2024. hyperTunnel -- https://www.hypertunnel.co.uk -- is a start-up developing revolutionary infraTech for tunnels and underground which is faster, safer, more economical and environmentally friendly. Its registered office and principal trading address is at Viewpoint, Basing View, Basingstoke, Hampshire, RG21 4RG. The Joint Administrators may be reached at: Paul Michael Davis Timothy John Edward Dolder Opus Restructuring LLP 1 Radian Court, Knowlhill Milton Keynes, MK5 8PJ Further details, contact: Rizwana Patel Email: rizwana.patel@opusllp.com J D WETHERSPOON: Egan-Jones Retains CCC+ Senior Unsecured Ratings ----------------------------------------------------------------- Egan-Jones Ratings Company, on June 12, 2024, maintained its 'CCC+' foreign currency and local currency senior unsecured ratings on debt issued by J D Wetherspoon PLC. EJR also withdrew the rating on commercial paper issued by the Company. Headquartered in Watford, United Kingdom, J D Wetherspoon PLC owns and operates group of pubs throughout the United Kingdom. KCA DEUTAG: S&P Places 'B' Issuer Credit Rating on Watch Positive ----------------------------------------------------------------- S&P Global Ratings placed all of its ratings on KCA Deutag Alpha on CreditWatch with positive implications, including the 'B' issuer credit rating and the 'B+' issue ratings on KCA's senior secured notes. S&P expects to resolve its CreditWatch placement upon the close of the acquisition, which is expected in late 2024. KCA Deutag International Ltd.'s shareholders have agreed on terms to an acquisition by Helmerich & Payne Inc. (H&P), which remains subject to regulatory approval. S&P said, "We placed our ratings on KCA and its debt on CreditWatch with positive implications, following the announcement on July 25, in which the company and H&P announced a definitive agreement for $1.9725 billion. We expect KCA to strongly benefit from being part of a much larger group with strong financials. "We expect the group's debt instruments will be repaid after the transaction's close." CreditWatch The CreditWatch positive placement reflects the potential for a multiple-notch upgrade with the transaction closing by end of 2024, subject to customary closing conditions and regulatory approvals. Company Description KCA, through its subsidiaries, operates as a drilling and engineering services company for the onshore and offshore energy industry. The company offers offshore platform drilling, land rig drilling, and engineering services, as well as drilling rig design, construction, and components. M AND K ENTERTAINMENT: Voscap Named as Administrators ----------------------------------------------------- M and K Entertainment Limited was placed in administration proceedings in the High Court of Justice, Court Number: CR-2024-004315, and Voscap Limited was appointed as administrators on July 19, 2024. M and K Entertainment Limited is an operator of licensed restaurants. Its registered office is at 67 Grosvenor, Mayfair, London, W1K 3JN. Its principal trading address is at Units E1-E6 The Arcadian Centre, 70 Hurst Street, Birmingham, B5 4TD. The Joint Administrators may be reached at: Ian Lawrence Goodhew Abigail Shearing Voscap Limited 67 Grosvenor Street, Mayfair, London, W1K 3JN For further details, please contact: Zayan Mirdha Tel: 0203 709 0101 E-mail: zayan.mirdha@voscap.co.uk MKM DEVELOPMENTS: KRE Named as Administrators --------------------------------------------- MKM Developments Limited was placed in administration proceedings in the Royal Court of Justice, Court Number: CR-2024-004403, and KRE Corporate Recovery Limited was appointed as administrators on July 24, 2024. MKM Developments Limited is a property developer. Its Registered office is c/o KRE Corporate Recovery Limited, Unit 8, The Aquarium, 1-7 King Street, Reading, Berkshire, RG1 2AN The Joint Administrators may be reached at: Rob Keyes David Taylor KRE Corporate Recovery Limited Unit 8, The Aquarium 1-7 King Street Reading, RG1 2AN Tel: 01189 977355 E-mail: info@krecr.co.uk Alternative contact: Vikki Claridge E-mail: Vikki.claridge@krecr.co.uk NORTH WEST LINEN: Leonard Curtis Named as Administrators -------------------------------------------------------- North West Linen Services Limited was placed in administration proceedings in the High Court of Justice, Business and Property Courts in Manchester, Insolvency & Companies List (ChD), Court Number: CR-2024-MAN-000955, and Leonard Curtis was appointed as administrators on July 22, 2024. North West Linen Services Limited provides washing and (dry-)cleaning services of textile and fur products. Its registered office and principal trading address is at Unit 5 Hermes Road, Gilmoss Industrial Estate, Liverpool, L11 0ED. The Joint Administrators may be reached at: Mike Dillon Andrew Knowles Leonard Curtis Riverside House Irwell Street Manchester, M3 5EN Tel: 0161 831 9999 E-mail: recovery@leonardcurtis.co.uk Alternative contact: Helen Hales PANACHE LEASING: Administrators Looking to Liquidate Rental Firm ---------------------------------------------------------------- RG Insolvency, the Joint Administrators of Panache Leasing Ltd, is seeking a decision from creditors on placing the Company into Creditors' Voluntary Liquidation pursuant to Rule 15.13 of the Insolvency (England and Wales) Rules 2016, by way of a virtual meeting. The meeting will be held as a virtual meeting by telephone conference on Aug. 15, 2024 at 10 a.m. A creditor may appoint a person as a proxy-holder to act as their representative and to speak, vote, abstain or propose resolutions at the meeting. A proxy for a specific meeting must be delivered to the chair before the meeting. A continuing proxy must be delivered to the Joint Administrators and may be exercised at any meeting which begins after the proxy is delivered. In order to be counted, a creditor's vote must be accompanied by a proof in respect of the creditor's claim (unless it has already been given). A vote will be disregarded if a creditor's proof in respect of their claim is not received by 4 p.m. on Aug. 14 (unless the chair of the meeting is content to accept the proof later). A creditor who has opted out from receiving notices may nevertheless vote if the creditor provides a proof of debt in the requisite time frame. Proxies and proofs of claim may be delivered to: RG Insolvency Devonshire House, Manor Way Borehamwood Hertfordshire WD6 1QQ Panache Leasing Ltd was placed in administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Court Number: CR-2023-004022, and RG Insolvency was appointed as administrators on Sept. 4, 2023. Panache Leasing Ltd., does business as 5 Star PCO Rentals. It is engaged in renting and leasing of cars and light motor vehicles. Its registered office is at Hill Lodge, Radleys End, Duton Hill, Dunmow, CM6 3PT. Its principal trading address is at 17-25 Shirley Street, London E16 1HU. The Joint Administrators may be reached at: Michael Goldstein Avner Radomsky RG Insolvency Devonshire House Manor Way, Borehamwood Hertfordshire, WD6 1QQ E-mail: info@rginsolvency.com R&Q CENTRAL: Teneo Named as Administrators ------------------------------------------ R&Q Central Services Limited was placed in administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Court Number: CR-2024-004445, and Teneo Financial Advisory Limited was appointed as administrators on July 25, 2024. R&Q Central Services Limited provides business support services. Its principal trading address is at 71 Fenchurch Street, London, EC3M 4BS. The Joint Administrators may be reached at: David Philip Soden Michael William Jerome Tagg Ian Colin Wormleighton Teneo Financial Advisory Limited The Colmore Building 20 Colmore Circus Queensway Birmingham, B4 6AT Tel: 0113 396 0164 Tel: 0121 619 0120 E-mail: alia.khan@teneo.com SIG PLC: Egan-Jones Retains B+ Senior Unsecured Ratings ------------------------------------------------------- Egan-Jones Ratings Company, on June 12, 2024, maintained its 'B+' foreign currency and local currency senior unsecured ratings on debt issued by SIG plc. EJR also withdrew the rating on commercial paper issued by the Company. Headquartered in Sheffield, United Kingdom, SIG plc distributes specialty building products. TENETCONNECT SERVICES: Interpath Named as Administrators -------------------------------------------------------- Ed Boyle, Rob Spence and Howard Smith of Interpath Ltd were appointed as Joint Administrators of Tenet Group Limited, and Boyle and Spence were appointed as Joint Administrators of Tenet Limited, TenetConnect Ltd and TenetConnect Services Ltd. on June 5, 2024. Tenet Network Services and TenetConnect are both trading styles of TenetConnect Ltd and TenetConnect Services Ltd that have been historically used in correspondence with Appointed Representatives but not in correspondence with customers. The administration proceedings are pending in the High Court of Justice, Business and Property Courts, Insolvency and Companies List (ChD), Court Number: CR-2024-003333. Tenet provides financial intermediation services. Its principal trading address is at 5 Lister Hill, Horsforth, Leeds, West Yorkshire, LS18 5AZ. The Joint Administrators may be reached at: Edward George Boyle Robert Thomas Spence Interpath Advisory Interpath Ltd 10 Fleet Place London, EC4M 7RB E-mail: tenet.customers@interpath.com tenet.employees@interpath.com or tenet.creditors@interpath.com All notices and documents relating to the administration shall be delivered by being placed on the Joint Administrators' website at http://TenetConnectServicesLimited.ia-insolv.com ZONE TELECOMMUNICATIONS: Leonard Curtis Named as Administrators --------------------------------------------------------------- Zone Telecommunications Ltd was placed in administration proceedings in the High Court of Justice, Business and Property Courts in Leeds, Insolvency & Companies List (ChD), Court Number: CR-2024-LDS-000737, and Leonard Curtis was appointed as administrators on July 25, 2024. Zone Telecommunications Ltd does business as Zone Broadband. It provides wired telecommunications services. Its principal trading address is at Communications House, 4 Lintonville Terrace, Ashington, Northumberland NE63 9UN. The Joint Administrators may be reached at: Sean Williams Leonard Curtis 9th Floor, 7 Park Row Leeds, LS1 5HD - and - Richard Pinder Leonard Curtis 21 Gander Lane Barlborough, Chesterfield, S43 4PZ Tel: 0113 323 8890 E-mail: recovery@leonardcurtis.co.uk ********* 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. 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