/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/240906.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 Friday, September 6, 2024, Vol. 25, No. 180 Headlines B U L G A R I A NATSIONALNA ELEKTRICHESKA: S&P Affirms 'BB' LT ICR, Outlook Now Pos G R E E C E ALPHA BANK: S&P Raises LT ICR to 'BB+' on Improved Capitalization I R E L A N D DRYDEN 56 2017: Moody's Affirms B2 Rating on EUR21.2MM Cl. F Notes GRIFFITH PARK CLO: Moody's Affirms B2 Rating on Class E-R Notes I T A L Y SNAM SPA: Moody's Rates New Perpetual Subordinated Notes 'Ba1' N E T H E R L A N D S PETROBAS GLOBAL: Moody's Rates New Senior Unsecured Notes 'Ba1' P O R T U G A L CONSUMER TOTTA 2: Moody's Assigns (P)Ba1 Rating to Cl. D Notes U N I T E D K I N G D O M BEVERLEY WAY: Rushtons Insolvency Named as Administrators BURDENS GROUP: Begbies Traynor Named as Joint Administrators C G GODFREY: Quantuma Advisory Named as Administrators FACET INVESTMENT: Voscap Limited Named as Administrators GENACTIS GROUP: Begbies Traynor Named as Administrators JLF MOVING: Opus Restructuring Named as Administrators RNB (GROUP): Begbies Traynor Named as Administrators X X X X X X X X [*] BOOK REVIEW: Macy's for Sale - - - - - =============== B U L G A R I A =============== NATSIONALNA ELEKTRICHESKA: S&P Affirms 'BB' LT ICR, Outlook Now Pos ------------------------------------------------------------------- S&P Global Ratings revised its outlook on Bulgaria-based power producer Natsionalna Elektricheska Kompania (NEK) to positive from stable and affirmed its 'BB' long-term issuer credit rating on the company. S&P said, "The positive outlook indicates that we could raise our ratings on NEK if we upgrade Bulgaria, which would imply that the state has a stronger ability to support NEK's parent, BEH, and NEK's performance improves following the retail energy market's liberalization from 2026. "Since Nov. 23, 2023, our 'BBB' long-term rating on Bulgaria has carried a positive outlook based on a one-in-three chance that the country would join the Eurozone by 2026; due to an oversight, we did not revise our outlook on NEK at that time. "We believe state-owned Bulgarian Energy Holding (BEH), the owner of Natsionalna Elektricheska Kompania (NEK), will likely receive extraordinary government support in the event of financial distress and ongoing support for future nuclear projects, despite political uncertainties in the country. "We also expect NEK would remain a highly strategic subsidiary of BEH during the next two years, despite its volatile and weak performance, and that the group would benefit from the liberalization of Bulgaria's retail power market, expected to be completed by year-end 2025. "We consider Bulgaria to have at least a one-in-three likelihood of joining the eurozone by 2026. Bulgaria does not yet meet all convergence criteria (formal conditions that all countries must meet before joining) for Eurozone accession, including price stability. However, given moderating domestic inflation, the gap to the threshold is narrowing. We believe the unstable political situation in the country could lead to some limited delays to the country's eurozone accession, unless the political deadlock worsens. Even if Bulgaria were not to accede to the eurozone in 2025, we think this would likely be delayed only to Jan. 1, 2026. Bulgaria has been running a currency board for over 25 years and the lev has been included in the Exchange Rate Mechanism (ERM II) since July 2020. We monitor closely the current political uncertainties in Bulgaria and the country's advancement in joining the Eurozone. "We continue to perceive a moderately high likelihood that BEH, NEK's 100% owner, would receive support from the Bulgarian government. This has been demonstrated by a track record of state support, despite the unstable domestic political situation. We observe extraordinary support being provided to BEH's subsidiaries in the form of state guarantees, state loans, and cash capital injections. And, in 2016, NEK received interest-free financial aid directly from the Bulgarian government, which it repaid in April 2022 using its own funds and the proceeds of an intercompany loan from BEH. We expect the government's willingness to provide support would continue in the future, since BEH maintains its strategic importance for the country's security of energy supply and strategic energy plan. BEH is Bulgaria's leading electricity producer, generating 60% of the nation's electricity, and the owner of the electricity and gas transmission systems. We will, however, closely monitor the political uncertainties and the evolution of the rule of law and institutional framework in Bulgaria, since these could impair the government's willingness to support BEH and the timeliness of such support. In addition, decisions regarding required investments and funding of new nuclear reactors in Bulgaria, expected within the next six months, will be critical to our view of the group's credit quality and the likelihood of government support. "The rating on NEK continues to depend on BEH's credit quality, since we regard NEK as a highly strategic subsidiary involved in low-carbon hydro-electricity generation and supply. We view NEK as a highly strategic subsidiary of BEH (its sole owner) given NEK's very important role in Bulgaria's energy system as a hydropower producer, supplier of last resort, and public supplier of electricity at regulated prices, as well as NEK's transformation from a loss-making operation historically to a contributor of close to 10% of BEH's EBITDA in 2024-2026. NEK's leverage is significantly higher than BEH's, whose leverage is minimal, but should gradually reduce once the retail energy market is liberalized. All NEK's debt is to its parent BEH, illustrating what we consider to be ongoing funding support from the parent. In 2024-2026, we expect NEK's funds from operations (FFO) to debt to be 6% on average, compared with more than 100% for BEH, constraining NEK's stand-alone credit profile (SACP) in the 'b' category. Our rating on NEK therefore includes two notches of uplift for parental support above our 'b+' assessment of NEK's SACP, and is capped at one notch below our 'bb+' assessment of BEH's group credit profile (GCP). "NEK's stand-alone credit quality will remain constrained until the retail power market is fully liberalized, which we anticipate by year-end 2025. We forecast NEK will face highly volatile and deteriorated EBITDA margins of 5%-10% until the retail power market's full liberalization by the end of 2025, and the termination of its public supplier mandate is expected on July 1, 2025, at the earliest. This results in very weak credit metrics for NEK over 2024-2025, with S&P Global Ratings-adjusted FFO to debt expected to decline toward 6% on average from 9% in 2023 and the exceptionally high 56.3% reported in 2022 on the back of a spike in power prices. Adjusted debt to EBITDA will increase toward 12.0x on average in 2024-2025 from 10.4x in 2023 and 1.6x reported in 2022. We expect a gradual improvement in NEK's EBITDA margin only from 2026 once the company's mandate as a public power supplier is terminated and assuming normal hydrology conditions. Until then, NEK is obliged to sell electricity to end suppliers at regulated prices of Bulgarian lev (BGN) 120 per megawatt hour (/MWh) to BGN130/MWh, for which purchased volumes are only partly covered by fixed-price contracts with thermal power producers ContourGlobal and AES that mature in February 2024 and 2026, respectively. NEK will likely experience squeezed margins in 2024-2025 because its costs are only partly compensated by the Security of Electricity Supply Fund (SESF) with a time lag. From 2026, if the retail power market's liberalization is implemented as planned, the company sole activity will be the sale of its low-variable-cost hydropower at market prices as the dominant hydro producer generating about 5% to 6% of Bulgaria's electricity. We therefore expect cash flow from operations to turn positive from 2026 but NEK to remain highly exposed to volatile hydropower volumes and power market prices. "We expect BEH's leverage to stay low in 2024-2026, supported by a more diverse activity mix, including 30% of regulated EBITDA.BEH's adjusted credit metrics for 2023 remained solid, with FFO to debt at 112% and debt to EBITDA at 0.8x. In 2023, BEH reported EBITDA of BGN2.2 billion (about EUR1.1 billion), and increased capital expenditure (capex) and dividends of BGN990 million and BGN1.4 billion, respectively. This resulted in about BGN700 million lower cash on balance sheet, at BGN3.9 billion, slightly eroding the BGN4.6 billion of accumulated cash following rapid deleveraging in 2022. BEH's strong results in 2022 were mainly due to a rise in average power prices on the Bulgarian electricity exchange market (IBEX) beyond BGN500/MWh, equivalent to about EUR250/MWH, from which BEH's fixed-cost nuclear and hydro power producer subsidiaries benefitted greatly. In 2024-2025, we expect power prices to normalize at about BGN180/MWh on average, still relatively high compared with pre-pandemic levels. This, alongside the retail power market's postponed liberalization to year-end 2025, will likely materially reduce BEH's EBITDA to BGN1.5 billion-BGN2.0 billion on average from BGN2.3 billion in 2023. Nevertheless, we expect BEH's debt to EBITDA to stay below 1.0x during that period due to positive discretionary cash flow, despite exceptional dividend distributions to the state in 2023 of about BGN1.4 billion and annual average capex rising to BGN1.1 billion in 2024-2026, notably to fund the digital transformation of the power transmission grid and expansion of Bulgartransgaz's underground gas storage facility in Chiren. "The positive outlook factors in a one-in-third chance of Bulgaria entering the Eurozone by year-end 2026. We would monitor closely the current political uncertainties that might delay this integration. It also reflects our view of NEK as a highly strategic subsidiary of BEH and our view of the group's moderately high likelihood of receiving support from the state. We anticipate BEH will maintain minimal leverage, prudent capex and financial policy, with no new large debt-financed projects, as well as adequate liquidity." S&P could raise the rating on NEK if BEH's GCP improves to 'bbb-', which could stem from a one-notch upgrade of Bulgaria to 'BBB+'. S&P could also upgrade NEK if it revises its assessment of BEH's SACP to 'bbb-' from 'bb+', all other factors remaining equal. This would depend on: -- Greater stability of the group's profitability; and -- Clarity over the national energy transition plan and its implementation by BEH, notably regarding the phaseout of highly carbon-intensive lignite power generation and mining, as well as the development of new nuclear power plants as old units mature. S&P could also upgrade NEK should it starts to regard it as core to BEH, possibly due to improving profitability and leverage in line with BEH's and a materially higher contribution to BEH's EBITDA. These factors notwithstanding, S&P wouldn't upgrade NEK solely because its SACP improved to 'bb-' or 'bb', unless this prompted a revision of BEH's GCP to 'bbb-' at the same time. S&P would likely revise the outlook to stable should it takes a corresponding rating action on Bulgaria, or if: -- S&P no longer saw NEK as highly strategic to BEH, for example because of operational weaknesses at its hydropower plants, or a demonstrated lack of support from its parent. -- S&P sees a lower likelihood of BEH receiving government support. It will monitor the Bulgarian government's stability, its capacity and willingness to support BEH in a timely manner if needed, and any negative intervention from the state beyond exceptional measures taken during the energy crisis. -- BEH's GCP deteriorates to 'bb', which could follow weaker operating performance, higher leverage, or lower liquidity, for example as a result of electricity prices dropping below our forecast, postponement of full market liberalization beyond 2025, or a steep increase in capex or dividends compared to our forecast. S&P said, "Governance factors are a negative consideration in our credit rating analysis of NEK, reflecting our view of a lack of prudent risk management, historical litigations, and unfinished projects at the group level. Still, the company is fully owned by the government through BEH, and its activities are closely aligned with government policy and shaped by applicable regulations. "Environmental and social factors are a relatively negative consideration, since NEK's parent BEH produces about 18% of its electricity through coal power plants and operates coal mines in Bulgaria. Although the total phaseout of coal is not planned before 2038 in Bulgaria's energy plan, we perceive energy transition risk as high and exposure to carbon prices as material. The rest of BEH's generation fleet produces low-carbon electricity, with the Kozloduy nuclear power plant contributing about 74% of BEH's total production in 2023 and NEK's hydropower plants about 8%." NEK also has an important social role in maintaining reliable, safe, and sustainable electricity supply. However, social factors are the key reasons for historically unsupportive regulation and NEK's accumulation of its historical tariff deficit. However, the retail market's liberalization deadline of year-end 2025 mitigates this factor. =========== G R E E C E =========== ALPHA BANK: S&P Raises LT ICR to 'BB+' on Improved Capitalization ----------------------------------------------------------------- S&P Global Ratings raised its long-term issuer credit ratings on Alpha Bank S.A. to 'BB+' from 'BB' and on Alpha Services and Holdings S.A. to 'BB-' from 'B+'. The outlook is stable. S&P also raised its long- and short-term resolution counterparty ratings (RCR) on Alpha Bank to 'BBB/A-2' from 'BBB-/A-3'. At the same time, S&P affirmed its 'B' short-term issuer credit ratings on Alpha Bank S.A. and Alpha Services and Holdings. In addition to its improving internal capital generation capacity, Alpha Bank issued on Sept. 3, 2024, a EUR300 million of perpetual additional tier one instrument. This issuance significantly strengthens Alpha Bank's capitalization, boosting our forecast risk-adjusted capital ratio to sustainably above 7%. Alpha Bank's additional tier one (AT1) issuance has bolstered the group's capitalization, which was already on a positive trend thanks to the bank's improved operating performance. Over the past five years, Alpha Bank's operating turnaround and a supportive macroeconomic environment have bolstered Alpha Bank's capitalization. Net interest margins have improved greatly, thanks to higher interest rates, while loan impairment charges have normalized after Alpha Bank divested large volumes of legacy bad loans throughout the past several years. Broadly in line with domestic peers, Alpha Bank's cost efficiency also supports earnings generation, with a cost-to-income ratio forecast at 40% in 2024 and 2025, which will help the bank to maintain an above 10% return on equity, despite expected decline from interest rates' contribution to profitability. S&P said, "We also anticipate that the bank's divestment of its Romanian subsidiary as part of a wider deal with UniCredit will provide additional capital relief to the bank through lower risk-weighted assets. The EUR300 million AT1 issuance comes on top of those improvements and will further boost the pro-forma risk-adjusted capital (RAC) ratio by 30-40 basis points, leading our forecast RAC ratio to increase to around 7.2%-7.7% by year-end 2025. In our view, these factors will more than balance the pressure on the group's capitalization from Alpha Bank's business growth and plans to increase dividend distribution similar to other Greek banks. "The high volume of low-quality deferred tax credits (DTCs) in the bank's capital continues to be a weakness. We continue to view Alpha Bank's capital quality to be low due to its significant share of DTCs, which accounted for about 52% of its common equity tier one ratio as of June 30, 2024. We believe the high amount of DTCs weighs on its creditworthiness because of their weak loss absorption capacity, and specifically because triggering DTCs would lead to shareholder dilution, thus disincentivizing the bank from making use of them. We note that the bank expects to gradually reduce the share of DTCs to below 30% by year-end 2026 and below 20% by 2029 through organic capital generation and amortization of DTCs as projected by law." Asset quality continues to improve, benefitting from solid economic perspective in Greece. Thanks to sales of nonperforming loans (NPLs), securitizations, write-offs, and more importantly recoveries, Alpha Bank continues to reduce its stock of NPLs. As of June 30, 2024, nonperforming exposure ratio stood at 4.7%, an improvement from 6% at year-end 2023, although loan loss reserve coverage still remains somewhat low at 47%. Ongoing positive economic momentum in Greece will continue supporting further improvement in the bank's asset quality and its overall risk profile. Despite subdued growth prospects in Europe, we expect the Greek economy to expand on average by 2.4% over 2024-2027, outperforming many countries in the eurozone. This reflects a tangible pick-up in investment activity driven by Next Generation EU projects, improved financial strength of corporates, and a catch-up effect given that Greece's economy is still about 22% smaller than its pre-2008 debt-crisis peak. S&P said, "The outlook on Alpha Bank is stable, reflecting our expectation that the bank will show stable operating performance and its capitalization will improve over the next 12 months, despite the bank's plans to increase dividend distribution. In our view, key asset-quality metrics will continue improving from current levels, benefiting from a supportive economic environment in Greece. "We could consider a negative rating action over the next 12 months if the bank's capitalization materially declines because of higher disbursements, lower earnings retention, or significantly higher dividend payout than anticipated. "In addition, we could lower the rating on Alpha Bank Services and Holdings if we anticipate that its double leverage would significantly exceed 120%, in which case we could widen the notching difference between the operating entity and the holding entity. "We believe a positive rating action over the next 12 months is unlikely. This could materialize if we conclude that Alpha Bank's financial performance stands much above our current expectations, leading its financial performance metrics to improve closer to the levels reported by higher-rated peers." ============= I R E L A N D ============= DRYDEN 56 2017: Moody's Affirms B2 Rating on EUR21.2MM Cl. F Notes ------------------------------------------------------------------ Moody's Ratings has upgraded the ratings on the following notes issued by Dryden 56 Euro CLO 2017 Designated Activity Company: EUR9,100,000 Class B-1 Senior Secured Floating Rate Notes due 2032, Upgraded to Aaa (sf); previously on Jan 31, 2022 Upgraded to Aa1 (sf) EUR63,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2032, Upgraded to Aaa (sf); previously on Jan 31, 2022 Upgraded to Aa1 (sf) EUR40,500,000 Class C Mezzanine Secured Deferrable Floating Rate Notes due 2032, Upgraded to Aa2 (sf); previously on Jan 31, 2022 Affirmed A2 (sf) EUR35,100,000 Class D Mezzanine Secured Deferrable Floating Rate Notes due 2032, Upgraded to Baa2 (sf); previously on Jan 31, 2022 Affirmed Baa3 (sf) Moody's have also affirmed the ratings on the following notes: EUR358,600,000 (current outstanding amount EUR222,830,377) Class A Senior Secured Floating Rate Notes due 2032, Affirmed Aaa (sf); previously on Jan 31, 2022 Affirmed Aaa (sf) EUR25,600,000 Class E Mezzanine Secured Deferrable Floating Rate Notes due 2032, Affirmed Ba2 (sf); previously on Jan 31, 2022 Affirmed Ba2 (sf) EUR21,200,000 Class F Mezzanine Secured Deferrable Floating Rate Notes due 2032, Affirmed B2 (sf); previously on Jan 31, 2022 Affirmed B2 (sf) Dryden 56 Euro CLO 2017 Designated Activity Company, issued in December 2017, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by PGIM Limited. The transaction's reinvestment period ended in January 2022. RATINGS RATIONALE The rating upgrades on the Class B-1, Class B-2, Class C and Class D notes are primarily a result of the deleveraging of the Class A notes following amortisation of the underlying portfolio since the last review in February 2024. The affirmations on the ratings on the Class A, Class E and Class F notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. The Class A notes have paid down by approximately EUR84.72 million (23.63%) since the last review in February 2024 and EUR135.77 million (37.86%) since closing. As a result of the deleveraging, over-collateralisation (OC) has increased. According to the trustee report dated July 2024 [1] the Class A/B, Class C, Class D and Class E OC ratios are reported at 149.47%, 131.42%, 118.97% and 111.28% compared to January 2024 [2] levels of 140.26%, 126.74%, 116.97% and 110.74%, respectively. The key model inputs Moody's use in Moody's analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on Moody's published methodology and could differ from the trustee's reported numbers. In Moody's base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR438.55m Defaulted Securities: EUR10.78m Diversity Score: 40 Weighted Average Rating Factor (WARF): 2949 Weighted Average Life (WAL): 3.02 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.91% Weighted Average Coupon (WAC): 4.51% Weighted Average Recovery Rate (WARR): 40.84% The default probability derives from the credit quality of the collateral pool and Moody's expectation of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporate these default and recovery characteristics of the collateral pool into Moody's cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in May 2024. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank, using the methodology "Moody's Approach to Assessing Counterparty Risks in Structured Finance methodology" published in October 2023. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assume have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analysed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from Moody's other analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. GRIFFITH PARK CLO: Moody's Affirms B2 Rating on Class E-R Notes --------------------------------------------------------------- Moody's Ratings has upgraded the ratings on the following notes issued by Griffith Park CLO Designated Activity Company: EUR20,500,000 Class A-2A Senior Secured Floating Rate Notes due 2031, Upgraded to Aaa (sf); previously on Apr 6, 2023 Upgraded to Aa1 (sf) EUR20,000,000 Class A-2B Senior Secured Fixed Rate Notes due 2031, Upgraded to Aaa (sf); previously on Apr 6, 2023 Upgraded to Aa1 (sf) EUR31,400,000 Class B Senior Secured Deferrable Floating Rate Notes due 2031, Upgraded to Aa3 (sf); previously on Apr 6, 2023 Upgraded to A1 (sf) EUR26,900,000 Class C Senior Secured Deferrable Floating Rate Notes due 2031, Upgraded to Baa2 (sf); previously on Apr 6, 2023 Affirmed Baa3 (sf) Moody's have also affirmed the ratings on the following notes: EUR264,000,000 (Current outstanding amount EUR199,378,397) Class A-1A Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf); previously on Apr 6, 2023 Affirmed Aaa (sf) EUR8,750,000 Class A-1B Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf); previously on Apr 6, 2023 Affirmed Aaa (sf) EUR24,450,000 Class D-R Senior Secured Deferrable Floating Rate Notes due 2031, Affirmed Ba3 (sf); previously on Apr 6, 2023 Affirmed Ba3 (sf) EUR11,250,000 Class E-R Senior Secured Deferrable Floating Rate Notes due 2031, Affirmed B2 (sf); previously on Apr 6, 2023 Affirmed B2 (sf) Griffith Park CLO Designated Activity Company, originally issued in September 2016 and last time refinanced in March 2021, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Blackstone Ireland Limited. The transaction's reinvestment period ended in May 2023. RATINGS RATIONALE The rating upgrades on the Class A-2A, Class A-2B, Class B and Class C notes are primarily a result of the deleveraging of the senior notes following amortisation of the underlying portfolio in the last 12 months. The affirmations on the ratings on the Class A-1A, Class A-1B, Class D-R and Class E-R notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. The Class A-1A notes have paid down by approximately EUR64.6 million (24.5%) in the last 12 months. As a result of the deleveraging, over-collateralisation (OC) has increased. According to Moody's recalculated OC ratios, taking into account the August 2024 payments, the Class A, Class B, Class C and Class D OC ratios are 150.6%, 133.71%, 121.99% and 112.99%, compared to August 2023 [1] levels of 140.54%, 127.73%, 118.48% and 111.17%, respectively. The key model inputs Moody's use in Moody's analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on Moody's published methodology and could differ from the trustee's reported numbers. In Moody's base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR373.6m Defaulted Securities: EUR2.1m Diversity Score: 55 Weighted Average Rating Factor (WARF): 3097 Weighted Average Life (WAL): 3.79 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.78% Weighted Average Coupon (WAC): 3.57% Weighted Average Recovery Rate (WARR): 43.76% Par haircut in OC tests and interest diversion test: none The default probability derives from the credit quality of the collateral pool and Moody's expectation of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporate these default and recovery characteristics of the collateral pool into Moody's cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in May 2024. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank and swap providers, using the methodology "Moody's Approach to Assessing Counterparty Risks in Structured Finance methodology" published in October 2023. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Weighted average life: The notes' ratings are sensitive to the weighted average life assumption of the portfolio, which could lengthen as a result of the manager's decision to reinvest in new issue loans or other loans with longer maturities, or participate in amend-to-extend offerings. The effect on the ratings of extending the portfolio's weighted average life can be positive or negative depending on the notes' seniority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assume have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analysed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from Moody's other analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. ========= I T A L Y ========= SNAM SPA: Moody's Rates New Perpetual Subordinated Notes 'Ba1' -------------------------------------------------------------- Moody's Ratings has assigned a Ba1 long-term rating to the proposed perpetual subordinated securities (the "Hybrid") to be issued by SNAM S.p.A. ("SNAM"). The size and completion of the hybrid are subject to market conditions. The outlook for SNAM is stable. RATINGS RATIONALE The Ba1 rating assigned to the Hybrid is two notches below SNAM's baa2 Baseline Credit Assessment (BCA) and Baa2 long-term Issuer Rating, reflecting the features of the Hybrid. It is a subordinated debt instrument ranking junior to all senior debt obligations but senior to all classes of share capital of SNAM. In Moody's view, the Hybrid has equity-like features that allows it to receive Basket 'M' treatment (please refer to Moody's Hybrid Equity Credit methodology published in February 2024), i.e. 50% equity credit and 50% debt for financial leverage purposes. The features of the Hybrid include (1) an undated maturity; (2) the optional coupon with cumulative settlement; and (3) no step-up in coupon prior to year 10.25, with the step-up not exceeding a total of 100 basis points thereafter. As the Hybrid's rating is positioned relative to another rating of SNAM, a change in either (1) Moody's relative notching practice; or (2) the senior unsecured rating of SNAM, could affect the rating of the hybrid. SNAM's ratings are supported by the low business risk profile of its monopoly-like gas transport and storage activities within an established and supportive regulatory framework; the stability and predictability of its cash flow; its strategic focus on upgrading and developing its domestic infrastructure; its good cash flow generation, with funds from operations (FFO)/net debt likely around 12% over the next 18-24 months; and its sound liquidity. SNAM's ratings are constrained by its gradually increasing investments in regulated assets; the high proportion of cash flow allocated to dividend payments; and the country risk associated with Italy (Baa3 stable), where the company generates most of its earnings. SNAM falls within the scope of Moody's Government-Related Issuers methodology, because the Government of Italy has indirect control. Based on Moody's expectation of a moderate support probability by the government in case of financial distress, and very high default dependence with the government, the Baa2 senior unsecured ratings of SNAM do not include any uplift from the company's standalone credit profile or BCA of baa2. This is because SNAM's BCA is already higher than the Baa3 rating of its supporter. RATIONALE FOR THE STABLE OUTLOOK The stable outlook reflects SNAM's strong positioning in its rating category, together with the fact that any upward rating pressure is capped by the Government of Italy's current Baa3 rating. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Any potential upgrade of SNAM's ratings would be contingent on an upgrade of the Italian government's rating, coupled with the maintenance of SNAM's historically strong credit metrics and sound liquidity. Moody's could downgrade SNAM's ratings following a downgrade of the Italian government's rating because of its links with the sovereign's credit profile, particularly if associated with a deterioration in the domestic macroeconomic environment. Downward pressure on the rating could also result from a structural deterioration in SNAM's own credit profile, which might be illustrated, for example, by a weakening in FFO/net debt to below 9% and RCF/net debt to below 6%; or its net debt/fixed assets exceeding 75%. Unexpected negative regulatory developments, evidence of political interference or adverse fiscal measures would also constrain SNAM's ratings. PRINCIPAL METHODOLOGIES The methodologies used in this rating were Regulated Electric and Gas Networks published in April 2022. Headquartered in San Donato Milanese, SNAM is the main operator of gas transport and storage assets in Italy. As of the end of December 2023, the company's asset base included around 38,000 kilometres of transportation pipeline network, 10 storage concessions (including one field under development), one re-gasification facility, and two floating storage and re-gasification units (FSRUs). CDP RETI S.p.A. (Baa3 stable) is SNAM's de facto controlling shareholder with a 31.35% stake. ===================== N E T H E R L A N D S ===================== PETROBAS GLOBAL: Moody's Rates New Senior Unsecured Notes 'Ba1' --------------------------------------------------------------- Moody's Ratings has assigned a Ba1 rating to the proposed backed senior unsecured notes due 2035 to be issued by Petrobras Global Finance B.V. and fully and unconditionally guaranteed by Petroleo Brasileiro S.A. - PETROBRAS (Petrobras, Ba1 stable). Petrobras' existing ratings including its Ba1 corporate family rating remain unchanged. The outlook is stable. The proposed issuance is part of Petrobras's liability management strategy and proceeds will be used to fund a tender offer for Petrobras outstanding notes due in 2030, 2031, 2043, 2049, 2050 and 2051 and for general corporate purposes, thus not affecting the company's debt protection metrics. The rating of the proposed notes assumes that the final transaction documents will not be materially different from draft legal documentation reviewed by us to date and assume that these agreements are legally valid, binding and enforceable. RATINGS RATIONALE Petrobras' Ba1 corporate family rating (CFR) and ba1 Baseline Credit Assessment (BCA), a measure of a company's standalone credit risk without government support, reflect the company's strong credit metrics for its rating category, and its positive track record of operational and financial improvement. The rating also reflects Moody's expectation that Petrobras' operating and financial discipline will continue to support cash generation, which will help sustain its current capital structure. Conversely, Petrobras' rating is constrained by the company's exposure to potential policy shifts and risk of government influence in the company's business decisions. Petrobras' Ba1 rating is one notch above the Government of Brazil's (Brazil, Ba2 positive) rating based on the company's considerably stronger fundamental credit profile than that of the sovereign, and its ability to withstand adverse economic and business conditions, as observed during the coronavirus pandemic in 2020. There is a low likelihood that the company will default as a result of sovereign credit distress given Petrobras' solid financial metrics and capital structure; its low reliance on domestic funding sources; its limited exposure to foreign-currency risk; and the fact that around 30% of its sales are related to exports. Policy shifts can pose higher credit risk for Petrobras if the government starts to use the national oil company to cover fiscal deficits, control fuel prices and inflation. Petrobras' corporate governance standards provides it with some protection from government interference and so far, the current administration's changes to its executive team, boardroom and financial and investment strategies have not materially changed its credit quality. There would be negative credit implications if the quality of Petrobras' corporate governance declines, increasing its vulnerability to policy shifts. A change in Petrobras' current business strategy or capital allocation that weakens its credit metrics or financial strength would also be credit negative. The company's execution of its asset sale program, liability management and its business strategy over the past several years have allowed it to reduce debt levels significantly and to improve its credit metrics, which leaves Petrobras at a very comfortable level to withstand volatility at this point. Petrobras' strong credit metrics and liquidity support its rating, with leverage declining to 1.5x in the twelve months ended June 2024 from 4x in 2017 and a very good liquidity profile. At the end of June 2024, Petrobras had $12.1 billion in cash and short-term investments and a sizable committed revolving credit facilities in an aggregate amount of $7.9 billion. Moody's expect the company's cash generation of around $35 billion in 2024 to be more than enough to cover its annual debt maturities of around $2.1 billion plus annual capital spending of about $19 billion through the period, allowing it to maintain reported debt below $65 billion. The proposed transaction is part of Petrobras' liability management strategy and proceeds will be used to fund a tender offer for Petrobras' notes due in in 2030, 2031, 2043, 2049, 2050 and 2051 and for general corporate purposes, thus improving liquidity while lengthening the company's debt amortization schedule further. Moody's continue to assume moderate default dependence between Petrobras and the government. RATING OUTLOOK The stable outlook on Petrobras' ratings reflects Moody's view that its credit profile will remain mostly unchanged over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING An upgrade of Petrobras' Ba1 rating is unlikely over the next 12-18 months because Moody's expect the company's credit metrics to remain relatively stable and it is unlikely that the company would be rated more than one notch above the sovereign. However, the ratings could be upgraded if credit metrics are at least stable and there is evidence of significant lower exposure to adverse government influence. An upgrade of Petrobras' rating would also require an upgrade of Brazil's sovereign rating. Petrobras' ratings could be downgraded if its operating performance deteriorates or there are external factors that increase liquidity risk or debt leverage from the current levels on a sustained basis; if the quality of the company's corporate governance declines, increasing its vulnerability to adverse government interference; or if Brazil's sovereign rating is downgraded. The methodologies used in this rating were Integrated Oil and Gas published in September 2022. COMPANY PROFILE Petrobras is an integrated energy company, with total assets of $190 billion and annual revenue of $99.9 billion in the twelve months ended June 2024. Petrobras dominates Brazil's oil and natural gas production, and refining and fuel marketing sectors. The company also holds a stake in petrochemicals and power plant business segments. The Brazilian government directly and indirectly owns about 36.6% of Petrobras' outstanding capital stock and 50.3% of its voting shares. =============== P O R T U G A L =============== CONSUMER TOTTA 2: Moody's Assigns (P)Ba1 Rating to Cl. D Notes -------------------------------------------------------------- Moody's Ratings has assigned the following provisional ratings to the Notes to be issued by Consumer Totta 2 2024: EUR[ ]M Class A Floating Rate Notes due February 2034, Assigned (P)Aaa (sf) EUR[ ]M Class B Floating Rate Notes due February 2034, Assigned (P)Aa2 (sf) EUR[ ]M Class C Floating Rate Notes due February 2034, Assigned (P)Baa1 (sf) EUR[ ]M Class D Floating Rate Notes due February 2034, Assigned (P)Ba1 (sf) Moody's have not assigned a rating to the subordinated EUR[ ]M Class E Floating Rate Notes due February 2034, the subordinated EUR[ ]M Class F Floating Rate Notes due February 2034 and the subordinated EUR[ ]M Class X Notes due February 2034. RATINGS RATIONALE The Notes are backed by a 5-month revolving pool of Portuguese unsecured consumer loans originated by Banco Santander Totta S.A. ("Santander Totta"), (A2/P-1 Bank Deposits; A2(cr)/P-1(cr)). This represents the second ABS issuance originated by Banco Santander Totta S.A. The portfolio consists of approximately EUR387.6 million of loans as of July 4, 2024 pool cut-off date. The Reserve Fund will be funded to 1.0% of the A to E Notes balance at closing and the total credit enhancement for the Class A Notes will be 21%. The ratings are primarily based on the credit quality of the portfolio, the structural features of the transaction and its legal integrity. The transaction benefits from various credit strengths such as the granularity of the portfolio, the financial strength and securitisation experience of Santander group, subordination of the Notes and significant excess spread. However, Moody's note that the transaction features a number of credit weaknesses, such as a (i) complex structure including interest deferral triggers for junior Notes, (ii) pro-rata payments on all rated classes of Notes after the end of the revolving period, (iii) a five months revolving structure which could increase performance volatility of the underlying portfolio, partially mitigated by early amortisation triggers, revolving criteria both on individual loan and portfolio level and the eligibility criteria for the portfolio, and (iv) the high linkage to Santander Totta, acting as originator and servicer. These characteristics, amongst others, were considered in Moody's analysis and ratings. Moody's determined the portfolio lifetime expected defaults of 6.0%, expected recoveries of 15% and portfolio credit enhancement ("PCE") of 18% related to borrower receivables. The expected defaults and recoveries capture Moody's expectations of performance considering the current economic outlook, while the PCE captures the loss Moody's expect the portfolio to suffer in the event of a severe recession scenario. Expected defaults and PCE are parameters used to calibrate Moody's lognormal portfolio loss distribution curve and to associate a probability with each potential future loss scenario in the ABSROM cash flow model to rate Consumer ABS. Portfolio expected defaults of 6.0% are in line with the EMEA Consumer Loan ABS average and are based on Moody's assessment of the lifetime expectation for the pool taking into account: (i) historical performance of the loan book of the originator, (ii) benchmark transactions, and (iii) other qualitative considerations, such as the high balloon loan component of the portfolio. Portfolio expected recoveries of 15% are in line with the EMEA Consumer Loan ABS average and are based on Moody's assessment of the lifetime expectation for the pool taking into account: (i) historical performance of the loan book of the originator, (ii) benchmark transactions, and (iii) other qualitative considerations. PCE of 18% is in line with the EMEA Consumer Loan ABS average and is based on Moody's assessment of the pool which is mainly driven by: (i) the revolving period, and (ii) the relative ranking to originator peers in the EMEA Consumer loan market. The PCE level of 18.0% results in an implied coefficient of variation ("CoV") of 34.55%. The principal methodology used in these ratings was "Moody's Approach to Rating Consumer Loan-Backed ABS" published in July 2024. Factors that would lead to an upgrade or downgrade of the ratings: Factors that may cause an upgrade of the ratings of the Notes include significantly better than expected performance of the pool together with an increase in credit enhancement of the Notes. Factors that would lead to a downgrade of the ratings include: (i) increased counterparty risk leading to potential operational risk of (a) servicing or cash management interruptions and (b) the risk of increased swap linkage due to a downgrade of a currency swap counterparty ratings; and (ii) economic conditions being worse than forecast resulting in higher arrears and losses. =========================== U N I T E D K I N G D O M =========================== BEVERLEY WAY: Rushtons Insolvency Named as Administrators --------------------------------------------------------- Beverley Way Developments Ltd was placed into administration proceedings in the High Court of Justice Business and Property Courts of England and Wales, Insolvency & Companies List (ChD), Court No: CR-2024-005013, and Nicola Baker of Rushtons Insolvency Limited was appointed as administrator on Aug. 23, 2024. Beverley Way specializes in the development of building projects. Its registered office is at 107 Bell Street, London, NW1 6TL. The administrator can be reached at: Nicola Baker Rushtons Insolvency Limited 6 Festival Building, Ashley Lane Saltaire, BD17 7DQ For further details, contact: The Administrator Tel No: 01274 598 585 Alternative contact: Dominic Wolski E-mail: dwolski@rushtonsifs.co.uk BURDENS GROUP: Begbies Traynor Named as Joint Administrators ------------------------------------------------------------ The Burdens Group Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts in Leeds Insolvency and Companies List, Court Number: CR-2024-LDS-000814, and Gareth David Rusling and Robert Dymond of Begbies Traynor (Central) LLP were appointed as joint administrators on Aug. 19, 2024. The Burdens Group is a manufacturer of agricultural machinery. Its registered office address is at Suite 500, Unit 2, 94A Wycliffe Road, Northampton, NN1 5JF. The joint administrators can be reached at: Gareth David Rusling Robert Dymond Begbies Traynor (Central) LLP 3rd Floor, Westfield House 60 Charter Row Sheffield, S1 3FZ For further details, contact: Marcus Wright E-mail: sheffield.north@btguk.com Tel No: 0114 2755033 C G GODFREY: Quantuma Advisory Named as Administrators ------------------------------------------------------ C G Godfrey Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts of England and Wales, Court Number: CR-2024-004578, and Duncan Beat and Andrew Watling of Quantuma Advisory Limited were appointed as administrators on Aug. 27, 2024. C G Godfrey specializes in the construction of civil engineering projects. Its registered office address is at Glenside South, West Pinchbeck, Spalding, Lincs, PE11 3SA and it is in the process of being changed to Office D, Beresford House, Town Quay, Southampton, SO14 2AQ. Its principal trading address is at Glenside South, West Pinchbeck, Spalding, Lincolnshire, PE11 3NH. The administrators can be reached at: Duncan Beat Andrew Watling Quantuma Advisory Limited Office D, Beresford House Town Quay Southampton, SO14 2AQ For further details, contact: Konrad Cajgler E-mail: konrad.cajgler@quantuma.com Tel No: 02382 356936 FACET INVESTMENT: Voscap Limited Named as Administrators -------------------------------------------------------- Facet Investment Management Ltd was placed into administration proceedings in the High Court of Justice Business and Property Courts of England and Wales, Insolvency & Companies List (ChD), Court Number: CR-2024-004914, and Ian Goodhew and Abigail Shearing of Voscap Limited were appointed as administrators on Aug. 23, 2024. Facet Investment offers independent financial advisory services. Its registered office address is at Unit 35 Basepoint Business Centre, Metcalf Way, Crawley, RH11 7XX (to be changed to 67 Grosvenor Street, Mayfair, London W1K 3JN). Its principal trading address is at Unit 35 Basepoint Business Centre, Metcalf Way, Crawley, RH11 7XX. The administrators can be reached at: Ian Goodhew Abigail Shearing Voscap Limited 67 Grosvenor Street, Mayfair London, W1K 3JN For further details, contact: E-mail: facet@voscap.co.uk Tel No: 0207 769 6831 GENACTIS GROUP: Begbies Traynor Named as Administrators ------------------------------------------------------- Genactis Group Limited was placed into administration proceedings in the High Court of Justice, The Business & Property Courts of England and Wales, Court No: CR-2024-004785, and Bai Cham and Manjit Shokar of Begbies Traynor (Central) LLP were appointed as administrators on Aug. 27, 2024. Genactis Group specializes in market research and public opinion polling. Its registered office is at c/o Begbies Traynor, Innovation Centre Medway, Maidstone Road, Chatham, Kent, ME5 9FD. The administrators can be reached at: Bai Cham Manjit Shokar Begbies Traynor (Central) LLP Innovation Centre Medway Maidstone Road, Chatham Kent, ME5 9FD For further information, contact: Jamie Mayhew Begbies Traynor (Central) LLP E-mail: Jamie.Mayhew@btguk.com Tel No: 01634 975440 JLF MOVING: Opus Restructuring Named as Administrators ------------------------------------------------------ JLF Moving Solutions Ltd was placed into administration proceedings in the High Court of Justice, Court Number: CR-2024-000823, and Emma Mifsud and Mark Nicholas Ranson of Opus Restructuring LLP were appointed as administrators on Aug. 22, 2024. JLF Moving, trading as JLF Ltd, and previously known as Shift Logistics Ltd., offers removal services. Its registered office and principal trading address is at Unit 16, Zone 3 Cinder Road, Burntwood Business Park, Burntwood, WS7 3FS. The joint administrators can be reached at: Emma Mifsud Mark Nicholas Ranson Opus Restructuring LLP Fourth Floor, One Park Row Leeds, LS1 5HN For further details, contact: Bethany Tuffs E-mail: bethany.tuffs@opusllp.com Tel No: 01622 427 433 RNB (GROUP): Begbies Traynor Named as Administrators ---------------------------------------------------- RNB (Group) Limited was placed into administration proceedings in in the High Court of Justice Business and Property Courts in Leeds, Insolvency & Companies List (ChD), Court Number: CR-2024-LDS-000793, and Robert Alexander Henry Maxwell and Louise Longley of Begbies Traynor (Central) LLP were appointed as administrators on Aug. 21, 2024. RNB (Group)specializes in postal activities under universal service obligation. Its registered office address is at Leigh House, 28-32 St Paul's Street, Leeds LS1 2JT. The administrators can be reached at: Robert Alexander Henry Maxwell Louise Longley Begbies Traynor (Central) LLP Floor 2, 10 Wellington Place, Leeds, LS1 4AP For further information, contact: Benjamin Silverwood Begbies Traynor (Central) LLP E-mail: benjamin.silverwood@btguk.com Tel No: 0113 285 8610 =============== X X X X X X X X =============== [*] BOOK REVIEW: Macy's for Sale -------------------------------- Author: Isadore Barmash Paperback: 180 pages List price: $34.95 Review by Henry Berry Order your personal copy today at http://www.beardbooks.com/beardbooks/macys_for_sale.html Isadore Barmash writes in his Prologue, "This book tells the story of Macy's managers and their leveraged buyout, the newest and most controversial device in the modern financial armament" when it took place in the 1980s. At the center of Barmash's story is Edward S. Finkelstein, Macy's chairman of the board and chief executive office. Sixty years old at the time, Finkelstein had worked for Macy's for 35 years. Looking back over his long career dedicated to the department store as he neared retirement, Finkelstein was dismayed when he realized that even with his generous stock options, he owned less than one percent of Macy's stock. In the years leading up to his unexpected, bold takeover, Finkelstein had made over Macy's from a run-of-the-mill clothing retailer into a highly profitable business in the lead of the lucrative and growing fashion and "lifestyle" field. To aid him in accomplishing the takeover and share the rewards with him, Finkelstein had brought together more than three hundred of Macy's top executives. To gain his support for his planned takeover, Finkelstein told them, "The ones who have done the job at Macy's are the ones who ought to own Macy's." Opposing Finkelstein and his group were the Straus family who owned the lion's share of Macy's and employees and shareholders who had an emotional attachment to Macy's as it had been for generations, "Mother Macy's" as it was known. But the opponents were no match for Finkelstein's carefully laid plans and carefully cultivated alliances with the executives. At the 1985 meeting, the shareholders voted in favor of the takeover by roughly 80%, with less than 2% opposing it. The takeover is dealt with largely in the opening chapter. For the most part, Barmash follows the decision making by Finkelstein, the reorganization of the national company with a number of branches, the activities of key individuals besides Finkelstein, Macy's moves in the competitive field of clothing retailing, and attempts by the new Macy's owners led by Finkelstein to build on their successful takeover by making other acquisitions. Barmash allows at the beginning that it is an "unauthorized book, written without the cooperation of the buying group." But as he quickly adds, his coverage of Macy's as a business journalist and his independent research for over a year gave him enough knowledge to write a relevant and substantive book. The reader will have no doubt of this. Barmash's narrative, profiles of individuals, and analysis of events, intentions, and consequences ring true, and have not been contradicted by individuals he writes about, subsequent events, or exposure of material not public at the time the book was written. First published in 1989, the author places the Macy's buyout in the context of the business environment at the time: the aggressive, largely laissez-faire, Reagan era. Without being judgmental, the author describes how numerous corporations were awakened from their longtime inertia, while many individuals were feeling betrayed, losing jobs, and facing uncertain futures. Isadore Barmash, a veteran business journalist and author, was associated with the New York Times for more than a quarter-century as business-financial writer and editor. He also contributed many articles for national media, Reuters America, and the Nihon Kenzai Shimbun of Japan. He has published 13 books, including a novel and is listed in the 57th edition of Who's Who in America. He was born in 1921 and died in 2006. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2024. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. * * * End of Transmission * * *