/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/240927.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 27, 2024, Vol. 25, No. 195 Headlines I R E L A N D RRE 21 LOAN: Fitch Assigns 'BB-sf' Final Rating on Class D Notes L U X E M B O U R G BELRON GROUP: Fitch Lowers LongTerm IDR to 'BB', Off Watch Negative P O R T U G A L VASCO FINANCE 2: Fitch Assigns 'B+(EXP)' Rating on Class E Notes T U R K E Y FIBABANKA ANONIM: Fitch Gives CCC(EXP) Rating on AT1 Capital Notes U K R A I N E [*] Fitch Hikes Foreign Currency IDRs on 7 Ukrainian Banks to 'CCC' U N I T E D K I N G D O M COLOUR MARKETING: Quantuma Advisory Named as Joint Administrators GEO QUARRIES: Dow Schofield Named as Administrators HOSTMORE PLC: Teneo Financial Named as Administrators INEOS QUATTRO: Fitch Lowers LongTerm IDR to 'BB-', Outlook Stable LERNEN BIDCO: Moody's Rates New $450MM Sr. Secured Term Loan 'B3' LONDON COCKTAIL: Quantuma Advisory Named as Administrators NOMAD FOODS: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable SELINA HOSPITALITY: To Be Delisted From Nasdaq Effective Sept. 30 SUBLIME SCIENCE: Quantuma Advisory Named as Administrators TSP ENGINEERING: Leonard Curtis Named as Administrators - - - - - ============= I R E L A N D ============= RRE 21 LOAN: Fitch Assigns 'BB-sf' Final Rating on Class D Notes ---------------------------------------------------------------- Fitch Ratings has assigned RRE 21 Loan Management DAC final ratings Entity/Debt Rating ----------- ------ RRE 21 Loan Management DAC Class A-1 XS2880780841 LT AAAsf New Rating Class A-2A XS2880781062 LT NRsf New Rating Class A-2B XS2880781229 LT NRsf New Rating Class B XS2880781575 LT NRsf New Rating Class C-1 XS2880781732 LT NRsf New Rating Class C-2 XS2880781906 LT NRsf New Rating Class D XS2880782110 LT BB-sf New Rating Performance Notes XS2880782383 LT NRsf New Rating Preferred Return Notes XS2880782540 LT NRsf New Rating Subordinated XS2880782896 LT NRsf New Rating The class A-2A, A-2B, B, C-1 and C-2 notes are not rated and their model-implied ratings (MIRs) are 'A+sf', 'A+sf', 'BBB+sf', 'BB+sf' and 'BB+sf', respectively. Transaction Summary RRE 21 Loan Management DAC is a securitisation of mainly senior secured obligations with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds were used to purchase a portfolio with a target par of EUR400 million. The portfolio is actively managed by Redding Ridge Asset Management (UK) LLP. The collateralised loan obligation (CLO) has a 4.6 reinvestment period and a nine-year weighted average life (WAL) test. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'/ 'B-'. The Fitch weighted average rating factor (WARF) of the identified portfolio is 25. High Recovery Expectations (Positive): At least 95% of the portfolio 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 62%. Diversified Asset Portfolio (Positive): The transaction includes various concentration limits in the portfolio, including a top-10 obligor concentration limit of 20% and a maximum exposure to the three largest Fitch-defined industries in the portfolio of 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has a roughly 4.6-year reinvestment period and 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. The transaction has four Fitch matrices. One is effective at closing, with a nine-year WAL; one is effective one year after closing, with an eight-year WAL and a collateral principal amount (defaulted obligations at Fitch-calculated collateral value) condition of EUR400 million; and two are effective two years after closing, with a seven-year WAL and a collateral principal amount (defaulted obligations at Fitch-calculated collateral value) condition of EUR400 million and EUR398 million, respectively. All matrices are based on a top-10 obligor concentration limit of 20% and a fixed-rate asset limit of 10%. Cash Flow Modelling (Positive): The WAL used for the transaction's Fitch-stressed portfolio and matrices analysis is 12 months less than the WAL covenant to account for structural and reinvestment conditions after the reinvestment period, including the satisfaction of the over-collateralisation test and Fitch 'CCC' limit, together with a consistently decreasing WAL covenant. These conditions would in Fitch's opinion reduce the effective risk horizon of the portfolio during stress periods. 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 rating impact on the class A-1 notes and would lead to a downgrade of no more than one notch for the D notes. Based on the identified portfolio, downgrades 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 D notes display a rating cushion of two 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 four notches for the class A-1 notes and to below 'B-sf' for the class D notes. 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 an upgrade of two notches for the class D notes. During the reinvestment period, upgrades, based on the Fitch-stressed portfolio, except for the 'AAAsf' notes, 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 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 RRE 21 Loan Management DAC The majority of the underlying assets or risk presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations 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. Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action 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 RRE 21 Loan Management 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 any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. =================== L U X E M B O U R G =================== BELRON GROUP: Fitch Lowers LongTerm IDR to 'BB', Off Watch Negative ------------------------------------------------------------------- Fitch Ratings has downgraded Belron Group S.A.'s Long Term Issuer Default Rating (IDR) to 'BB' from 'BBB-' and removed it from Rating Watch Negative (RWN). The Outlook on the IDR is Stable. Simultaneously, Fitch has downgraded Belron's existing senior secured debt rating to 'BB+' from 'BBB-' and removed it from RWN. The Recovery Rating for the senior secured debt instruments is 'RR2'. Fitch have also assigned Belron's proposed new term loan B (TLB) an expected senior secured rating of 'BB+(EXP)' with 'RR2'. The assignment of final rating is subject to the final documentation conforming to information already reviewed by Fitch. The rating action follows an earlier announcement made by D'Ieteren Group, Belron's majority owner, of planned extraordinary dividend distribution by Belron totalling EUR4.3 billion. The company today also announced that it aims to issue new senior secured debt to repay all existing debt and pay the dividend. The IDR downgrade reflects its expectation of weakened financial flexibility, with EBITDA net leverage projected at around 4.5x for 2024-2028, compared with its earlier expectation of 2.5x. Belron's business-profile strengths, including strong market shares and steady consumer relationships will continue to drive positive free cash flow (FCF) generation and deleveraging potential, supporting the Stable Outlook. Fitch applies its generic approach to Recovery Ratings for instruments issued by corporates with IDR in the 'BB' rating category. Fitch thus views the existing and proposed senior secured instruments as category 2 first-lien debt and rate them at one notch above the IDR. Key Rating Drivers Large Dividend Recap Planned: D'Ieteren Group's announcement states that Belron would raise EUR8.1 billion in new debt. The proceeds, combined with available liquidity, will be used to refinance its existing EUR4.3 billion TLB facilities and fund a EUR4.3 billion extraordinary dividend. This effectively doubles the company's existing debt, significantly affecting its leverage metrics. Although this will sharply raise interest expenses, Belron's robust FCF generation should comfortably absorb the additional costs. Leverage Outlier: The debt issue will result in Belron's capital structure being the primary rating weakness. Its leverage ratios will be weaker than Fitch's 'B' category medians in its criteria for service companies. Fitch projects Belron's EBITDA net leverage to exceed the negative IDR sensitivity of 5.0x at end-2024, with an anticipated return to below this level in two years. Despite strong pre-dividend FCF margins, Fitch expects continued generous dividend distributions post-transaction to limit the pace of deleveraging, resulting in a post-dividend FCF margin at slightly above 1%. Capital-Allocation Policy Key: Belron's strong cash flows and high dividend distributions are central to its deleveraging capacity. It has a solid record of managing leverage and Fitch expects this to continue, thereby supporting the ratings. Shifts in its capital-allocation policy increasing its forecast leverage metrics would drive further negative rating action. New Instrument Rating Uplift: The new instrument ratings reflects their equal ranking, operating company guarantees and security package with other senior secured debt and its revolving credit facility (RCF). Fitch expects the new instruments will be cross-collateralised with other senior secured debt with no material subordination. Fitch rates Belron's category 2 first-lien debt at one notch above its IDR, in line with its generic approach for rating instruments of companies with 'BB' category IDRs. Scale a Competitive Advantage: Belron is one of the biggest service companies among its Fitch-rated peers, with EBITDA above EUR1 billion. Fitch views Belron's business profile as strong, with leading market shares in Europe and North America as key factor driving its strong profitability. Belron's scale in its chosen markets gives it a significant competitive advantage over its smaller, regional competitors, underpinning its strong business profile. Strong Profitability: Fitch forecasts Belron's EBITDA margin at around 22% in the short-to-medium term, which is higher than the 'A' rating category median of 18% in its criteria for services. Belron has low capex at around 2% of revenues, and the majority of its costs are variable. This was tested during the pandemic when road traffic fell sharply, but its EBITDA margin was maintained at well above 10%. The requirement for specialist windshield calibration services as the penetration of advanced driver-assistance system (ADAS) increases will, in its view, be the main driver of increasing profitability. Customer Diversification: Most of Belron's revenues (77% in 2023) stem from its contracts with insurers. It has no significant concentration on a single insurer or end-customer. Fitch sees similar diversification in Belron's suppliers. Belron has contracted suppliers for almost all vehicle model ranges, in all of the geographies it operates in. This enables continued service without disruptions and limits its counterparty risks. Stable Customer Relationships: Belron's contracts with insurers is short-term in nature, resulting in renewal risk. This is mitigated by Belron's strong record of contract renewals, benefiting from the breadth of its service area, quality and cost of services. The quality of its services is measured by customer surveys, which serve as one of the key inputs for contract renewal. Belron's brand awareness is also significantly stronger than that of its the smaller competitors, making it a go-to choice for customers. Limited Range of Services: As windshields get more sizeable and complex, with increasing ADAS installations and accelerating electric vehicle transition, Fitch expects Belron's revenues from recalibration of windshields to gradually increase. As the change is mainly regulatory-driven, especially in Europe, Fitch expects the shift to be rapid and margin-accretive. Nevertheless, Fitch deems these services as being broadly in line with its vehicle glass repair and replace (VGRR) business, with no meaningful diversification to other auto service opportunities. Derivation Summary Belron is one of the largest service companies in its publicly-rated portfolio. Its nominal revenues and EBITDA margin are comparable to Rentokil Initial Plc's (BBB/Stable) and The Bidvest Group Limited's (BB/Stable). Belron's size ensures strong market shares, resulting in profitability that is similar to Sodexo SA's (BBB+/Stable). Fitch views Belron's contracts as short-term, which exposes the company to frequent negotiations with insurers. However, this risk is mitigated by strong consumer relationships and high renewal rates with insurance companies. Belron's EBITDA margins of around 22% are in line with the 'A' rating category median in its criteria for service companies. However, its FCF is weaker due to substantial shareholder payments. Fitch predicts that Belron's management will follow through with their plan to reduce debt post-transaction. Fitch expects Fitch-adjusted EBITDA net leverage to approach 4.8x by end-2026, slightly higher than its 'B' rating category median of 4.5x for service industries. This is also slightly above its forecasts for lower-rated service companies like Irel Bidco S.a.r.l. (B+/Stable) and Circet Europe SAS (B+/Positive). Key Assumptions - Mid-single digit revenue growth during 2024-2028, driven by increased number of jobs and price increases - EBITDA margin remaining around 22% during 2024-2028, supported by successful cost control and continued recalibration penetration - Capex at around 2% of revenue to 2028 - Common dividend of EUR300 million per annum - Small bolt-on acquisitions of EUR50 million per year to 2028 RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A sustainable FCF margin above 2%, combined with EBITDA net leverage below 4.0x Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Evidence of significant contract losses or like-for-like sales decline with an EBITDA margin below 15% on a sustained basis - EBITDA net leverage consistently above 5.0x - FCF margin below 1% on a sustained basis Liquidity and Debt Structure Good Liquidity Post-Refinancing: At the end of 2Q24, Belron reported EUR532 million in cash and cash equivalents. The company also has access to a EUR1,140 million committed RCF that matures in May 2029. Fitch forecasts a positive FCF margin from 2024 until the end of its forecast horizon in 2028. This is supported by low capex and low working-capital requirements, which partially offset Fitch's assumption of further dividend distributions. Issuer Profile Belron is the global leader in VGRR and recalibration. Belron operates in 37 countries across six continents, and employs 29,000 staff with 2023 revenue of EUR6 billion. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. 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 ----------- ------ -------- ----- Belron Finance Limited senior secured LT BB+ Downgrade RR2 BBB- Belron Luxembourg S.a.r.l senior secured LT BB+ Downgrade RR2 BBB- Belron Finance US LLC senior secured LT BB+ Downgrade RR2 BBB- Belron UK Finance Plc senior secured LT BB+(EXP)Expected Rating RR2 Belron Group S.A. LT IDR BB Downgrade BBB- Belron Finance 2019 LLC senior secured LT BB+(EXP)Expected Rating RR2 senior secured LT BB+ Downgrade RR2 BBB- =============== P O R T U G A L =============== VASCO FINANCE 2: Fitch Assigns 'B+(EXP)' Rating on Class E Notes ---------------------------------------------------------------- Fitch Ratings has assigned Vasco Finance No. 2 expected ratings. The assignment of final ratings is contingent on the receipt of final documents conforming to information already received. Entity/Debt Rating ----------- ------ Vasco Finance No. 2 Class A PTTGUFOM0034 LT AA+(EXP) Expected Rating Class B PTTGUPOM0032 LT A(EXP) Expected Rating Class C PTTGU7OM0023 LT BBB+(EXP) Expected Rating Class D PTTGCEOM0029 LT BB+(EXP) Expected Rating Class E PTTGCFOM0028 LT B+(EXP) Expected Rating Class F PTTGCGOM0027 LT NR(EXP) Expected Rating Class G PTTGC8OM0012 LT NR(EXP) Expected Rating Class X PTTGCNOM0028 LT BB+(EXP) Expected Rating Transaction Summary Vasco Finance No. 2 is a cash flow securitisation of a revolving portfolio of credit card receivables originated by WiZink Bank S.A.U. - Sucursal em Portugal (WiZink Portugal). WiZink Portugal, the Portuguese branch of Wizink Bank, S.A.U., registered in Spain and majority owned by Värde Partners, acts as portfolio servicer, originator and seller. KEY RATING DRIVERS Asset Assumptions Reflect Pool Credit Profile: Fitch Ratings' analysis of the credit card portfolio is linked to a steady state annual charge-off rate assumption of 8%, an annual yield of 15%, a monthly payment rate (MPR) of 8%, and a purchase rate of zero in line with Fitch's "Credit Card ABS Rating Criteria". The analysis considered the historical data from the originator, WiZink Portugal's underwriting and servicing standards, and Portugal's economic outlook. At the 'AA+' rating case commensurate with the class A note rating, the asset assumptions are annual charge-offs of 32.0%, a 10.3% yield, a 5.5% MPR, and a zero purchase rate. The zero purchase rate assumption reflects that no further credit card drawings after the end of the revolving period are assigned to the transaction. Revolving and Pro Rata Amortisation: The portfolio will be revolving until October 2025 as new eligible receivables can be purchased by the issuer monthly. The class A to G notes will be repaid pro rata unless a sequential amortisation event occurs. This event is driven by performance triggers such as annualised defaults (defined as arrears over seven months or 210 days past due) exceeding 10% of the portfolio balance, or a principal deficiency ledger (PDL) greater than zero. Fitch views the switch to sequential amortisation as highly likely during the first years after the end of the revolving period given the portfolio's performance expectations compared with defined triggers. The tail risk posed by the pro rata paydown is mitigated by the mandatory switch to sequential amortisation when the note balance falls below 10% of its initial balance. Counterparty Rating Cap: The maximum achievable rating on the transaction is 'AA+sf' due to the minimum eligibility rating thresholds defined for the transaction account bank (TAB), and the hedge provider of 'A-' or 'F1', which are insufficient to support 'AAAsf' under Fitch's criteria. Payment Interruption Risk Mitigated: For the class A to C notes the interest payment obligations are due timely so long the respective class is the senior most outstanding. For these notes, Fitch views payment interruption risk as mitigated in scenarios of servicer distress. This is given: the liquidity protection in the form of dedicated cash reserves; the operational capabilities of WiZink Portugal; the transfer of direct debit collections from the collection account bank (CAB) to the TAB within two business days; an adequate borrower notification process on a servicer termination event; and the presence of a back-up servicer facilitator. Class X Notes Rating (Criteria Variation): The class X notes are only protected by excess spread and their 'BB+(EXP)sf' rating is seven notches higher than the model-implied rating (MIR) as obtained from Fitch's Multi-Asset Cash Flow Model, which projects the cash flows of the transaction during its amortisation phase after the end of the revolving period. This is a variation from Fitch's "Consumer ABS Rating Criteria", which allow for a one-notch deviation from the MIR and is because Fitch expects the class X note to be fully repaid by the transaction's excess spread during the revolving period. This will be about five months after the closing date, driven by the class X small balance and the ample excess spread protection. Under Fitch´s "Global Structured Finance Rating Criteria", the class X notes' rating is capped at 'BB+sf' given its high sensitivity to various credit and cash flow scenarios. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Long-term asset performance deterioration such as increased charge-offs, reduced MPR or reduced portfolio yield, which could be driven by changes in portfolio characteristics, macroeconomic conditions, business practices or legislative landscape. Sensitivity to Increased Charge-offs: Current ratings (class A/B/C/D/E/X): 'AA+(EXP)sf' / 'A(EXP)sf' / 'BBB+(EXP)sf' / 'BB+(EXP)sf'/'B+(EXP)sf' /'BB+(EXP)sf' Increased charge-offs by 25%: 'AA-(EXP)sf' / 'BBB+(EXP)sf' / 'BBB-(EXP)sf' / 'BB-(EXP)sf'/'NR(EXP)sf'/ 'NR(EXP)sf' Increased charge-offs by 50%: 'A(EXP)sf' / 'BBB(EXP)sf' / 'BB+(EXP)sf' / 'B+(EXP)sf' /'NR(EXP)sf'/'NR(EXP)sf' Increased charge-offs by 75%: 'A-(EXP)sf' / 'BBB-(EXP)sf' / 'BB(EXP)sf' / 'NR(EXP)sf' / 'NR(EXP)sf' / 'NR(EXP)sf' Sensitivity to decreased Monthly Payment Rates Current ratings (class A/B/C/D/E/X): 'AA+(EXP)sf' / 'A(EXP)sf' / 'BBB+(EXP)sf' / 'BB+(EXP)sf'/'B+(EXP)sf' /'BB+(EXP)sf' Decreased MPR by 15%: 'AA(EXP)sf' / 'A-(EXP)sf' / 'BBB(EXP)sf' / 'BB(EXP)sf'/'B(EXP)sf'/ 'NR(EXP)sf' Decreased MPR by 25%: 'A+(EXP)sf' / 'BBB+(EXP)sf' / 'BBB-(EXP)sf' / 'BB-(EXP)sf'/'B(EXP)sf'/ 'NR(EXP)sf' Decreased MPR by 35%: 'A(EXP)sf' / 'BBB(EXP)sf' / 'BB+(EXP)sf' / 'BB-(EXP)sf'/'B(EXP)sf'/ 'NR(EXP)sf' Sensitivity to decreased Yield Current ratings (class A/B/C/D/E/X): 'AA+(EXP)sf' / 'A(EXP)sf' / 'BBB+(EXP)sf' / 'BB+(EXP)sf'/'B+(EXP)sf' /'BB+(EXP)sf' Decreased Yield by 15%: 'AA+(EXP)sf' / 'A(EXP)sf' / 'BBB(EXP)sf' / 'BB(EXP)sf'/'NR(EXP)sf'/ 'NR(EXP)sf' Decreased Yield by 25%: 'AA(EXP)sf' / 'A-(EXP)sf' / 'BBB(EXP)sf' / 'BB-(EXP)sf'/'NR(EXP)sf'/ 'NR(EXP)sf' Decreased Yield by 35%: 'AA(EXP)sf' / 'A-(EXP)sf' / 'BBB-(EXP)sf' / 'B+(EXP)sf'/'NR(EXP)sf'/ 'NR(EXP)sf' Sensitivities to increased charge-offs and decrease MPR Current ratings (class A/B/C/D/E/X): 'AA+(EXP)sf' / 'A(EXP)sf' / 'BBB+(EXP)sf' / 'BB+(EXP)sf'/'B+(EXP)sf' /'BB+(EXP)sf' Increased charge-offs by 25% and decreased MPR by 15%: 'A(EXP)sf' / 'BBB(EXP)sf' / 'BB+(EXP)sf' / 'B+(EXP)sf'/'NR(EXP)sf'/ 'NR(EXP)sf' Increased charge-offs by 50% and decreased MPR by 25%: 'BBB+(EXP)sf' / 'BB+(EXP)sf' / 'BB-(EXP)sf' / 'NR(EXP)sf'/'NR(EXP)sf'/ 'NR(EXP)sf' Increased charge-offs by 75% and decreased MPR by 35%: 'BB+(EXP)sf' / 'BB-(EXP)sf' / 'B(EXP)sf' / 'NR(EXP)sf'/'NR(EXP)sf'/ 'NR(EXP)sf' Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade CE ratios increase as the transaction deleverages, and is able to fully compensate for the credit losses and cash flow stresses commensurate with higher rating cases. For the class A notes, the modified TAB and derivative provider minimum eligibility rating thresholds compatible with the 'AAAsf' ratings as under Fitch's Structured Finance and Covered Bonds Counterparty Rating Criteria. CRITERIA VARIATION The class X notes are only protected by excess spread and their 'BB+(EXP)sf' rating is seven notches higher than the model-implied rating (MIR) as obtained from Fitch's Multi-Asset Cash Flow Model, which projects the cash flows of the transaction during its amortisation phase after the end of the revolving period. This is a variation from Fitch's Consumer ABS Rating Criteria which allow for a one notch deviation from the MIR, substantiated as Fitch expects the class X note to be fully repaid by transaction's excess spread during the revolving period (approximately five months after the closing date), driven by the class X small balance and the ample excess spread protection. 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 Vasco Finance No. 2 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action 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. =========== T U R K E Y =========== FIBABANKA ANONIM: Fitch Gives CCC(EXP) Rating on AT1 Capital Notes ------------------------------------------------------------------ Fitch Ratings has published Fibabanka Anonim Sirketi's (Fibabanka; B/Positive/b) planned additional Tier 1 (AT1) capital notes an expected rating of 'CCC(EXP)'. The final rating is subject to the receipt of the final documentation conforming to information already received by Fitch. Key Rating Drivers The notes are Basel III-compliant, perpetual, deeply subordinated, fixed-rate resettable AT1 debt securities. The notes have fully discretionary non-cumulative interest payments and are subject to full or partial write-down if the issuer or group's common equity Tier 1 (CET1) ratio falls below 5.125%. The principal write-down can be reinstated and written-up at the issuer's discretion if positive distributable net profit is recorded. The rating assigned to the notes is three notches below Fibabanka's 'b' Viability Rating, in accordance with Fitch's Bank Rating Criteria. Fitch has only notched down the debt rating three times from Fibabanka's VR (twice for loss severity and only once for non-performance risk), instead of the baseline four notches, due to rating compression, as Fibabanka's VR is below the 'BB-' anchor rating threshold. The notes will have no fixed maturity, although Fibabanka will have the option - subject to approval by the Banking Regulation and Supervision Agency (BRSA) - to call the notes after five years, with a six-month par call period between year five and year 5.5, and every interest payment date thereafter. Fibabanka's consolidated regulatory CET1 and Tier 1 ratios were 10.6% and 10.7%, respectively, at end-1H24, including regulatory forbearance above its regulatory minimum requirements of 7.0% and 8.5%, respectively. Excluding the regulatory forbearance, the ratios would have been 9.2% and 9.3%, respectively. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade As the notes are notched down from Fibabanka's VR, the rating is sensitive to a downgrade of the VR. This may result, for example, from a significant decline in capital buffers relative to regulatory requirements. The notes' rating is also sensitive to an unfavourable revision in Fitch's assessment of incremental non-performance risk. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The notes' rating is sensitive to an upgrade of Fibabanka's VR. ESG CONSIDERATIONS The ESG Relevance Score for Management Strategy of '4' reflects an increased regulatory burden on all Turkish banks. Management ability across the sector to determine their own strategy and price risk is constrained by increased regulatory interventions and also by the operational challenges of implementing regulations at the bank level. This has a moderately negative impact on the bank's credit profile and is relevant to the rating in combination 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. Date of Relevant Committee September 17, 2024 Entity/Debt Rating ----------- ------ Fibabanka Anonim Sirketi Subordinated LT CCC(EXP) Publish ============= U K R A I N E ============= [*] Fitch Hikes Foreign Currency IDRs on 7 Ukrainian Banks to 'CCC' ------------------------------------------------------------------- Fitch Ratings has upgraded the Long-Term Foreign-Currency (LTFC) Issuer Default Ratings (IDRs) of: - Joint-Stock Company Commercial Bank PrivatBank (Privat); - JSC State Savings Bank of Ukraine (Oschadbank); - JSC The State Export-Import Bank of Ukraine (Ukreximbank); - JSB Ukrgasbank; - Joint-Stock Company Sense Bank (Sense); - Joint Stock Company First Ukrainian International Bank (FUIB); and - ProCredit Bank (Ukraine) (PCBU) to 'CCC' from 'CCC-' and Long-Term Local- Currency (LTLC) IDRs to 'CCC+' from 'CCC', respectively. The IDRs do not carry an Outlook at this rating level. Fitch has also upgraded the Viability Ratings (VRs) of the banks apart from Ukreximbank to 'ccc' from 'ccc-'. Ukreximbank's VR has been affirmed at 'f'. At the same time Fitch has upgraded PCBU's Shareholder Support Rating (SSR) to 'ccc' from 'ccc-' and affirmed the Government Support Ratings (GSR) of the other banks at 'no support' (ns). PCBU's LTFC IDR (xgs) has been upgraded to 'CCC(xgs)' from 'CCC-( xgs)' and its LTLC IDR (xgs) upgraded to 'CCC+(xgs)' from 'CCC( xgs)'. All banks' National Ratings are unaffected by these rating actions and may be reviewed if its National Rating equivalency analysis results in different relative creditworthiness across Ukrainian issuers. The rating actions follow the upgrade of Ukraine's LTLC IDR to 'CCC+' on September 5, 2024 following the completion of the Eurobond debt exchange. The new Eurobonds issued subsequent to the completion of the Eurobond debt exchange have been assigned a 'CCC' rating in line with the sovereign's expected post -restructuring LTFC IDR. As Ukraine's Eurobond debt restructuring constitutes only a part of a single broader restructuring that is ongoing, the LTFC IDR remains on 'RD' until Fitch judges the exchanges have been completed and relations with a significant majority of external commercial creditors are normalised. The VR upgrades to 'ccc' reflect reduced sovereign and macro-financial stability risks to the banks' standalone credit profiles. This is due to the banks' direct exposure to the sovereign through holdings of government securities and placements at the National Bank of Ukraine and exposure to the operating environment in Ukraine through their domestic operations. The upgrades of the banks' LTFC IDRs to 'CCC' and LTLC IDRs to 'CCC+' reflect a reduced probability of default as reflected in the sovereign's expected post-restructuring LTFC IDR of 'CCC' and the upgrade of the sovereign's LTLC IDR to 'CCC+'. Fitch views macroeconomic and financial stability risks to have reduced in the near term on the back of the completed Eurobond debt exchange by the sovereign. The completion of the debt restructuring supports the progress of the IMF programme, which is a key element of continued international support to Ukraine, which together with regulatory support measures, underpins banks' resilient financial performance. Operating conditions for Ukrainian banks remain challenging, as reflected in its operating environment assessment at 'ccc'. However, banks have shown considerable resilience despite the challenging operating conditions. Key Rating Drivers The bank's VRs reflect the high risks to their standalone profiles caused by the war and that failure remains a real possibility. Ukreximbank's VR reflects the capital shortfall arising from a surge in impairment provisions caused by the war, which resulted in a breach of its minimum regulatory capital adequacy ratio requirements. This amounts to a material capital shortfall that under Fitch's Bank Rating Criteria constitutes a bank failure, as the bank needs extraordinary capital support to restore its viability. The LTFC IDRs continue to reflect Fitch's view that a default on senior FC third-party non-government obligations remains a real possibility due to the war. Banks maintain generally adequate FC liquidity, helped by various regulatory capital and exchange controls in place since the outbreak of the war to reduce the risks of deposit and capital outflows and maintain stability and confidence in the banking system. The 'CCC+' LTLC IDRs, one notch above the LTFC IDRs, reflects limited regulatory constraints on LC operations. PCBU's LTFC IDR is driven by potential support from ProCredit Holding AG (PCH; BBB/Stable/bb), and underpinned by its VR of 'ccc'. PCBU's SSR of 'ccc' reflects Fitch's view of the bank's strategic importance to PCH, but also potential constraints on its ability to utilise parent support, in particular to service FC obligations, due to government intervention risk. Ukreximbank's LTFC and LTLC IDRs are above its VR and reflects its view that the bank has sufficient liquidity to meet its obligations in the near term despite its failure. This approach is consistent with Fitch's criteria under certain circumstances when bank and sovereign ratings are at very low levels. The bank's VR of 'f' is below the implied VR of 'cc' due to the negative adjustment from the weakest link of capitalisation and leverage, which has a greater impact on the VR than the weighting suggests. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Fitch would downgrade the banks' IDRs and debt ratings (Oschadbank and Ukreximbank) in the event of a sovereign downgrade, or if Fitch perceives an increased likelihood that the banks will default on or seek a restructuring of their senior obligations. A marked further deterioration in asset quality or a weakening of profitability that eroded the banks' loss absorption buffers would lead to VR downgrades. PCBU's LTFC IDR could be downgraded if Fitch believes the parent has a lower propensity to support its subsidiary, and if PCBU's VR was also downgraded. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Fitch believes positive action on the IDRs and debt ratings is unlikely in the near term. However, the ratings could be upgraded in the event the sovereign's LTFC IDR was upgraded above 'CCC'. PCBU's LTFC IDR could be upgraded if Fitch views the bank has a greater ability to use parental support due to reduced government intervention risk. Upgrades of the VRs would likely require an upgrade of the sovereign LTFC IDR above 'CCC' and a considerable improvement in the operating environment, leading to lower solvency risk. An improvement in Ukreximbank's capital position, including from encumbrance of capital by unreserved impaired loans, could lead to an upgrade of its VR. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS The 'CCC' rating of Oschadbank's senior unsecured debt issued by UK-registered SSB No.1 PLC and Ukreximbank's senior unsecured debt issued by Biz Finance PLC, respectively, are aligned with the banks' LTFC IDRs. Fitch believes the default risk of these bonds is equivalent to the default risk implied by the LTFC IDRs, and view these senior unsecured obligations as having average recovery prospects, as reflected in the Recovery Rating of 'RR4'. The Short-Term IDR of 'C' is the only possible option mapping to IDRs in the 'CCC' category. PCBU's LTFC and LTLC IDRs (xgs) are notched from its parent's 'BB(xgs)' Long-Term IDR (xgs) and are in line with the bank's LTFC and LTLC IDRs, respectively, because they are constrained, in its view, by intervention risks. PCBU's LTLC IDR (xgs) is one notch above its LTFC IDR (xgs), reflecting limited regulatory restrictions and constraints on local-currency operations in Ukraine relative to those in foreign currency. The STFC IDR (xgs) and STLC IDR (xgs) are mapped to the bank's LTFC IDR (xgs) and LTLC IDR (xgs), respectively, taking into account the parent's ST IDR (xgs). The GSRs of 'ns' reflect its view that regulatory forbearance would be more likely than recapitalisation in case of a material capital shortfall. PCBU's SSR of 'ccc' reflects Fitch's view of the bank's strategic importance to PCH, but also potential constraints on the bank's ability to utilise parent support, in particular to service FC obligations. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES The senior unsecured debt ratings of Oschadbank and Ukreximbank are sensitive to change in the LTFC IDRs with which it is aligned. The Short-Term IDRs are sensitive to changes in the LT IDRs. PCBU's LTFC IDR (xgs) and LTLC IDR (xgs) are sensitive to changes in the bank's SSR or VR. The STFC IDR (xgs) and STLC IDR (xgs) are sensitive to changes in PCBU's LTFC IDR (xgs) and LTLC IDR (xgs), respectively. The GSRs could be upgraded if the sovereign rating was upgraded or Fitch believed it was likely that public finances would be used to recapitalise state-owned banks, if needed. An upgrade of FUIB's GSR is highly unlikely given the bank's private ownership. PCBU's SSR may be sensitive to changes to its view of its ability to use parental support, or the parent's ability or propensity to provide support to it. VR ADJUSTMENTS The operating environment score of 'ccc' is below the 'b' category implied score due to the following adjustment reason: sovereign rating (negative). The business profile scores of 'ccc' are below the 'b' category implied score due to the following adjustment reason: business model (negative). The business profile score of 'ccc+' for Privatbank is below the 'b' category implied score due to the following adjustment reason: business model (negative). The earnings & profitability score of 'ccc+' of Privatbank has been assigned below the 'bb' implied score due to the following adjustment reason: revenue diversification (negative). The earnings and profitability score of 'ccc' of FUIB is below the 'bb' category implied score due to the following adjustment reason: revenue diversification (negative). The capitalisation and leverage score of 'ccc' of FUIB is below the 'bb' category implied score due to the following adjustment reason: risk profile and business model (negative). The funding and liquidity score of 'ccc' of Oschadbank is below the 'bb' category implied score due to the following adjustment reason: deposit structure (negative). Public Ratings with Credit Linkage to other ratings PCBU's ratings are linked to PCH's ratings. ESG Considerations Oschadbank and Ukreximbank have an ESG Governance Structure score of '4', which reflects the high influence of the government over the bank's business operations and strategy development. This has a moderately negative impact on the bank's credit profile due to governance risks and potential involvement in directed financing, in Fitch's view, and is relevant to the rating 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 ----------- ------ -------- ----- ProCredit Bank (Ukraine) LT IDR CCC Upgrade CCC- ST IDR C Affirmed C LC LT IDR CCC+ Upgrade CCC LC ST IDR C Affirmed C Viability ccc Upgrade ccc- LT IDR (xgs) CCC(xgs)Upgrade CCC-(xgs) LC ST IDR (xgs) C(xgs)Affirmed C(xgs) LC LT IDR (xgs) CCC+(xgs)Upgrade CCC(xgs) ST IDR (xgs) C(xgs)Affirmed C(xgs) Shareholder Support ccc Upgrade ccc- JSC State Savings Bank of Ukraine (Oschadbank) LT IDR CCC Upgrade CCC- ST IDR C Affirmed C LC LT IDR CCC+ Upgrade CCC Viability ccc Upgrade ccc- Government Support ns Affirmed ns Joint-Stock Company Sense Bank LT IDR CCC Upgrade CCC- ST IDR C Affirmed C LC LT IDR CCC+ Upgrade CCC Viability ccc Upgrade ccc- Government Support ns Affirmed ns Joint-Stock Company Commercial Bank PrivatBank LT IDR CCC Upgrade CCC- ST IDR C Affirmed C LC LT IDR CCC+ Upgrade CCC Viability ccc Upgrade ccc- Government Support ns Affirmed ns SSB No.1 PLC senior unsecured LT CCC Upgrade RR4 CCC- JOINT STOCK COMPANY FIRST UKRAINIAN INTERNATIONAL BANK LT IDR CCC Upgrade CCC- ST IDR C Affirmed C LC LT IDR CCC+ Upgrade CCC LC ST IDR C Affirmed C Viability ccc Upgrade ccc- Government Support ns Affirmed ns JSB Ukrgasbank LT IDR CCC Upgrade CCC- ST IDR C Affirmed C LC LT IDR CCC+ Upgrade CCC LC ST IDR C Affirmed C Viability ccc Upgrade ccc- Government Support ns Affirmed ns Biz Finance PLC senior unsecured LT CCC Upgrade RR4 CCC- JSC The State Export-Import Bank of Ukraine (Ukreximbank) LT IDR CCC Upgrade CCC- ST IDR C Affirmed C LC LT IDR CCC+ Upgrade CCC Viability f Affirmed f Government Support ns Affirmed ns =========================== U N I T E D K I N G D O M =========================== COLOUR MARKETING: Quantuma Advisory Named as Joint Administrators ----------------------------------------------------------------- Colour Marketing Services Limited was placed in administration proceedings in the High Court of Justice Business and Property Courts of England & Wales, Court Number: CR-2024-004997, and Brian Burke and Elias Paourou of Quantuma Advisory Limited were appointed as administrators on Sept 17, 2024. Colour Marketing manufactures sampling solutions for the interior design market. Their products and services include fabric cuttings, fabric books, wallpaper samples, paint swatches, peelable paint patches, chip cards, shade cards and swatches of all products including leathers and trimmings. They also provide a complete fulfilment service, linking our warehouse to your e-commerce platforms and fulfilling customer orders for samples and swatches seamlessly to their door. Its registered office is at Units 9 & 10, Farthing Road Industrial Estate, Farthing Road, Ipswich, Suffolk, IP1 5AP and it is in the process of being changed to 3rd Floor, 37 Frederick Place, Brighton, BN1 4EA. Its principal trading address is at Units 9 & 10, Farthing Road Industrial Estate, Farthing Road, Ipswich, Suffolk, IP1 5AP. The joint administrators can be reached at: Brian Burke Elias Paourou Quantuma Advisory Limited 3rd Floor, 37 Frederick Place Brighton, BN1 4EA For further details, contact: Joel Daly Email: joel.daly@quantuma.com Tel No: 01273 322413 GEO QUARRIES: Dow Schofield Named as Administrators --------------------------------------------------- Geo Quarries Ltd 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-001200, and John Allan Carpenter and Lisa Marie Moxon of Dow Schofield Watts Business Recovery LLP were appointed as administrators on Sept 17, 2024. Geo Quarries specializes in the quarrying of aggregates. Its registered office is at 7400 Daresbury Park, Daresbury, Warrington, Cheshire, WA4 4BS (Formerly) Prestige Court Beza Road, Hunslet, Leeds, West Yorkshire, LS10 2BD. Its principal trading address is at Whalebone Lane, Little Ponton, Grantham, NG31 7TU. The administrators can be reached at: John Allan Carpenter Lisa Marie Moxon Dow Schofield Watts Business Recovery LLP 7400 Daresbury Park, Daresbury Warrington, WA4 4BS For further details, contact: The Joint Administrators Tel No: 0192838014 Alternative contact: Cameron McArthur Email: cameron@dswrecovery.com HOSTMORE PLC: Teneo Financial Named as Administrators ----------------------------------------------------- Hostmore PLC was placed in administration proceedings in the High Court of Justice, Business and Property Courts of England & Wales, Court Number: CR-2024-005434, and Daniel James Mark Smith and Julian Heathcote of Teneo Financial Advisory Limited, were appointed as administrators on Sept 18, 2024. The Hostmore Group is a hospitality business in the UK, with operations focused on casual dining brand, Fridays and cocktail-led bar and restaurant brand, 63rd+1st. Its principal trading address is at Highdown House, Yeoman Way, Worthing, West Sussex BN99 3HH. The administrators can be reached at: Daniel James Mark Smith Julian Heathcote Teneo Financial Advisory Limited The Colmore Building 20 Colmore Circus Queensway Birmingham, B4 6AT For further details, contact: The Joint Administrators Email: TGIFcreditors@teneo.com Tel No: +44 121 619 0128 INEOS QUATTRO: Fitch Lowers LongTerm IDR to 'BB-', Outlook Stable ----------------------------------------------------------------- Fitch Ratings has downgraded INEOS Quattro Holdings Limited's (INEOS Quattro) Long-Term Issuer Default Rating (IDR) to 'BB-' from 'BB'. The Outlook is Stable. Fitch has affirmed the senior secured ratings at 'BB+'. The Recovery Rating is 'RR2'. Fitch has downgraded the senior unsecured rating to 'B+' from 'BB-'. The Recovery Rating is 'RR5'. Fitch has assigned an expected senior secured rating of 'BB+(EXP)' to the euro and US dollar term loan B (TLB) to be issued by INEOS Quattro Holdings UK Limited and INEOS US Petrochem LLC, respectively. The Recovery Rating is 'RR2'. The expected proceeds will be used to refinance existing secured and unsecured debt maturing in 2026 and 2027. This highlights the company's proactive maturity management. Fitch will assign final ratings upon receipt of final documentation conforming to information already received The Long-Term IDR downgrade reflects continued underperformance and excessive EBITDA net leverage at 6.3x in 2023, although Fitch expects this to fall to 5.3x in 2024 and 4.3x in 2025 but remain well above its previous negative rating sensitivity of 3.7x. Weak global growth and oversupply in chemical markets will postpone a return to mid-cycle EBITDA to 2026 with significant uncertainty, despite decisive actions taken to reduce costs, capex and dividends, and close underperforming assets. INEOS Quattro's ratings reflect its position as a globally diversified producer of chemical commodities with leading market positions and a large scale, but with exposure to cyclical end-markets and volatile prices. Key Rating Drivers Prolonged Trough and High Leverage: Fitch estimates that INEOS Quattro's EBITDA net leverage peaked at close to 7x in 1Q24 due to falling performance in all businesses, from the 2021-2022 peak. This is mainly explained by oversupply coupled with weak demand, especially in China. Fitch-defined EBITDA fell by 65% to EUR774 million in 2023, well below the company's guidance of bottom-of-cycle EBITDA. Fitch forecasts a modest EBITDA recovery in 2025 as recovery signals are still weak and US and China growth are expected to slow. This will maintain EBITDA net leverage above its previous negative sensitivity of 3.7x until 2027. Cost Control: INEOS Quattro has taken steps to restore net debt/EBITDA below 3x through the cycle. Capex is reduced to maintenance for 2024 and dividend has been suspended. It also announced initiatives to reduce fixed costs by at least EUR115 million by end-2026, as well as the mothballing or closures of several assets due to underperformance, in particular where the relevant market faces structural oversupply. This will help preserve free cash flow (FCF) before dividends, which Fitch expects to remain structurally positive, albeit break-even in 2023-2024 under very depressed market conditions. Inovyn Temporary Weakening: Fitch expects EBITDA at its Inovyn subsidiary to decrease by 35% in 2024, after a 50% fall in 2023, as caustic soda prices dropped from their 1Q23 peak. Fitch believes Inovyn has stronger barriers to entry in its markets than other divisions, but it is exposed to the cyclicality in polyvinyl chloride (PVC) demand, related to construction, and to the price dynamics of caustic soda. The European PVC market has been affected by lower-cost imports from US and Egypt since 2023, leading to the imposition of anti-dumping duties by the European Commission. Fitch forecasts Inovyn's EBITDA to improve in 2025 but to remain below mid-cycle levels as higher PVC production driven by lower interest rates usually drives caustic soda prices down. However, EBITDA will recover to EUR600 million in 2027 as regional supply tightens on the lack of new capacities. Oversupply, Fierce Competition: Its Styrolution subsidiary faces major capacity-driven oversupply of styrene monomer in China, but margins are improving in the US and Europe due to tighter regional supply. Fitch forecasts EBITDA margins to rise to 8% in 2024, 10% in 2025 and 11% from 2026. For acetyls, Fitch forecasts EBITDA margin to grow to 15% in 2024 and to 20% by 2026. The aromatics business generates very weak margins since 2H22 despite cost savings, as large capacity additions in China compress margins. Fitch forecasts low-single-digit EBITDA margins in 2024-2025 and mid-single digits in 2026-2027. Diversified Global Leader: INEOS Quattro operates in four chemical value chains and is a top three producer in North America and Europe for some products, while its position is more mid-tier in the more fragmented Asian market. Styrolution and Inovyn offer more value-added products, leading to more pricing power, while the aromatics and acetyls businesses produce pure commodity chemicals and have more volatile earnings. The four businesses operate largely independently, but INEOS Quattro continues to pursue operational synergies. Rated on Standalone Basis: INEOS Quattro is part of a wider INEOS Limited group. Fitch rates the company on a standalone basis. It operates as a restricted group with no cross-guarantees or cross-default provisions with INEOS Limited or other entities within the wider group. Debt Ratings: Over 90% of the group's debt is senior secured with the remainder unsecured. The senior secured rating reflects the security package and is two notches above INEOS Quattro's IDR. The senior unsecured rating is one notch below the IDR, reflecting subordination. The proposed transaction aims to raise additional senior secured debt to fully repay outstanding unsecured notes. Derivation Summary INEOS Quattro's divisions operate in similar sectors as Olin Corporation (BBB-/Stable), Westlake Corporation (BBB/Stable) or Celanese Corp. (BBB-/Stable). However, their mid-cycle EBITDA margins are much stronger, above 20% through the cycle, compared to INEOS Quattro's mid-teen mid-cycle EBITDA margins. Both Olin and Westlake operate with low leverage, whereas Fitch forecasts Celanese's EBITDA net leverage to fall below 3x by 2026. Ingevity Corporation (BB/Stable), a manufacturer of specialty chemicals and high-performance activated carbon materials, is smaller than INEOS Quattro, with EBITDA of USD300-400 million. On the other hand, it generates stronger EBITDA margins of 20%-30% and Fitch expects its EBITDA net leverage has been less volatile, and forecast it to remain below 3.4x in 2024-2026. INEOS Quattro's business profile is broadly similar to INEOS Group Holdings S.A.'s (IGH; BB/Stable). While IGH is much larger, they both benefit from scale, global reach and business diversification. However, IGH benefits from a cost advantage at its US sites, and also from feedstock flexibility in Europe. Fitch expects IGH's EBITDA net leverage to be higher than INEOS Quattro in 2024 and 2025 due to the Project One capex, but to fall below from 2026 as the project generates significant EBITDA contribution. H.B. Fuller Company (BB/Stable), a producer of adhesives, is smaller and less diversified than INEOS Quattro but its EBITDA is less volatile and EBITDA margins are higher. Its EBITDA net leverage is forecast to decrease to 2.6x by 2026. Synthos Spolka Akcyjna (BB/Stable) mainly engages in the manufacture of synthetic rubber and insulation materials, with operations concentrated in central Europe. Synthos is smaller (2023 EBITDA: EUR186 million) and less diversified than INEOS Quattro, has similar EBITDA margins in mid-teens, but benefits from a strong vertical integration and maintains lower EBITDA net leverage, which Fitch expects at below 2.5x from 2025. INEOS Enterprises Holdings Limited (IE; BB-/Negative) is a diversified chemical producer specialised in pigments, composites, solvents and other chemical intermediates. It is much smaller than IGH and INEOS Quattro and is only a regional leader in niche chemical markets, but with modestly higher margins. Fitch forecasts IE's EBITDA net leverage about 0.8x lower than INEOS Quattro's in 2024-2026. Key Assumptions Fitch's Key Assumptions Within Its Rating Case for the Issuer - Revenues to grow 5% in 2024, 2% in 2025, 3% in 2026 and 2% in 2027. - EBITDA margin to improve to 7% in 2024, 9% in 2025, 10% in 2026 and 11% in 2027. - Effective interest rate to average 7% in 2024-2027. - No dividends in 2024 (apart from management fees), EUR130 million in 2025, EUR261 million in 2026, EUR433 million in 2027. - Capex of EUR250 million in 2024, gradually increasing to EUR500 million by 2027. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA net leverage below 3.7x on a sustained basis. - EBITDA gross leverage below 4.2x on a sustained basis. - Record of conservative financial-policy implementation supporting a faster deleveraging than Fitch expects. - Improvement in cost structure and specialty product offerings leading to lower overall earnings volatility. Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA net leverage above 4.2x on a sustained basis. - EBITDA gross leverage above 4.7x on a sustained basis. - EBITDA interest coverage below 3x on a sustained basis. - Significant deterioration in business profile such as scale, diversification or product leadership, or prolonged market pressure. - High dividend payments or capex leading to sustained negative FCF and material increase in net debt. Liquidity and Debt Structure Strong Liquidity: At end-1H24, INEOS Quattro had EUR1.8 billion of cash and cash equivalents. This fully covers changes in working capital and the next meaningful debt repayments of EUR1 billion in 1Q26, which the company is proposing to refinance by term loans and other senior secured debt. INEOS Quattro has a prudent liquidity and debt management policy to hold sizeable cash and to refinance debt well ahead of its maturity through diversified capital markets. Large Floating Debt: About 65% of INEOS Quattro's EUR7.5 billion gross debt has floating rates. The interest burden surged in 2023 because of this and Fitch expects further growth to EUR550 million on average in 2024-2027. Over 90% of the company's debt is guaranteed by INEOS Quattro and other subsidiaries in the group on a senior secured basis. The senior unsecured notes are guaranteed by INEOS Quattro on a senior basis and by other subsidiaries in the group on a senior subordinated basis. Issuer Profile Quattro is a diversified producer of chemical commodities and intermediates. Its main products are styrenics, vinyls, aromatics and acetyls. Summary of Financial Adjustments Fitch has reclassified EUR90.1 million right-of-use asset depreciation and EUR13.5 million lease-related interest expense as cash operating costs. Fitch excludes EUR306.6 million lease liabilities from financial debt. Fitch has added back EUR108 million issue costs to financial debt. Fitch added back EUR75 million of non-recurring costs to EBITDA. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. 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 ----------- ------ -------- ----- INEOS Quattro Finance 2 Plc senior secured LT BB+ Affirmed RR2 BB+ INEOS Styrolution US Holding LLC senior secured LT BB+ Affirmed RR2 BB+ INEOS Quattro Finance 1 Plc senior unsecured LT B+ Downgrade RR5 BB- INEOS Quattro Holdings Limited LT IDR BB- Downgrade BB INEOS US Petrochem LLC senior secured LT BB+(EXP)Expected Rating RR2 USD Floating Term Loan B Oct-2031 LT BB+(EXP)Expected Rating RR2 senior secured LT BB+ Affirmed RR2 BB+ INEOS Quattro Holdings UK Limited senior secured LT BB+(EXP)Expected Rating RR2 senior secured LT BB+ Affirmed RR2 BB+ INEOS Styrolution Group GmbH senior secured LT BB+ Affirmed RR2 BB+ LERNEN BIDCO: Moody's Rates New $450MM Sr. Secured Term Loan 'B3' ----------------------------------------------------------------- Moody's Ratings has assigned a B3 instrument rating to Lernen Bidco Limited's (Cognita) contemplated new $450 million senior secured term loan B with maturity in September 2031, to be issued by its subsidiary Lernen US Finco LLC. All other ratings, including the B3 instrument rating of the upsized GBP300 million senior secured revolving credit facility (RCF) with maturity in 2028, and Cognita's stable outlook remains unaffected. The outlook for Lernen US Finco LLC is stable. RATINGS RATIONALE The assignment of the B3 instrument rating to Cognita's new $450 million term loan tranche primarily reflects the small impact the add-on has on the company's credit metrics. Based on the 12 months period to May 31, 2024, pro forma for the debt add-on and the EBITDA contribution from recently completed acquisitions Cognita's Moody's-adjusted Debt/EBITDA increases from 7.6x to 8.0x. Despite this increase in leverage, Moody's continue to view Cognita's B3 corporate family rating (CFR) as adequately positioned. About GBP270 million of the proceeds raised will be used to repay RCF drawings and to fund upcoming payments of deferred considerations in respect of past acquisitions, both of which were already included in the c. GBP2.1 billion of Moody's-adjusted debt Cognita had prior to the transaction. Hence, the increase in Moody's-adjusted debt is limited to about GBP80 million. In addition, Cognita will receive GBP150 million of fresh equity from its shareholder to finance an additional acquisition and add cash to the balance sheet. Cognita's B3 CFR continues to reflect (1) the company's position as an established operator in the fragmented private-pay K-12 education market with a geographically diversified portfolio of schools in 17 countries; (2) its good track record of organic revenue and EBITDA growth through growing student numbers and tuition fee increases above cost inflation; (3) the good revenue and cash flow visibility from committed student enrolments; and (4) the barriers to entry through regulatory requirements, brand reputation and a purpose-built real-estate portfolio. Conversely, the CFR is constrained by (1) Cognita's high financial leverage, weak interest coverage and free cash flow which resulted from an aggressive financial policy in the past; (2) the concentration risk within the top ten schools which continue to account for over half of group EBITDA; (3) the company's reliance on its academic reputation and brand quality in a highly regulated environment; and (4) its risk exposure to changes in the political, legal and economic environment, including the upcoming VAT introduction in the United Kingdom. RATING OUTLOOK The stable outlook reflects Moody's expectation that Cognita will continue to achieve good organic revenue and EBITDA growth and further improve its credit metrics over the next 12-18 months. The outlook further assumes that liquidity remains at least adequate and Cognita will adhere to a more balanced financial policy. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upward pressure on the rating could develop if Moody's adjusted Debt/EBITDA sustainably decreases below 7.0x, Free Cash Flow generation turns positive on a sustainable basis, and liquidity remains adequate. Downward pressure on the rating could arise if Cognita is not able to organically grow its revenue and EBITDA on a sustainable basis, or Moody's adjusted Debt/EBITDA fails to decrease below 8.0x, EBITA/Interest Expense declines below 1.0x, or liquidity weakens with limited availability under the RCF and substantially negative free cash flows. Any materially negative impact from a change in any of the company's schools' regulatory approval status could also pressure the ratings. LIQUIDITY PROFILE Moody's consider Cognita's liquidity to be adequate. On May 31, 2024, the company had GBP166 million of cash on balance sheet and around GBP110 million availability under its GBP214.5 million RCF due in 2028. The RCF is subject to a springing net first-lien leverage covenant set at 7.9x which is tested when the facility is drawn down for more than 40%. At the end of May 2024, the company had sufficient headroom under the covenant and Moody's expect this to continue to be the case. STRUCTURAL CONSIDERATIONS The B3 instrument ratings assigned to the existing EUR1.26 billion senior secured first-lien term loan B due 2029 and the pari passu ranking GBP214.5 million RCF due 2028, as well as the contemplated GBP450 million term loan B due 2031 rank in line with the B3 CFR, reflecting the all-senior secured capital structure with limited other liabilities. The security package provided to the first-lien lenders is relatively weak and limited to a pledge over shares, bank accounts and intercompany receivables, as well as guarantees from operating companies (80% guarantor test) and a floating charge provided by the English borrower. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Business and Consumer Services published in November 2021. CORPORATE PROFILE Cognita is an established operator in the global private-pay K-12 education market with headquarters in London. The company operates more than 100 schools across 17 countries in Europe, Asia, North America, Latin America and the Middle East, offering primary and secondary private education. Founded in 2004, Cognita has rapidly grown through acquisitions and capacity expansion to over 90,000 students enrolled across its institutions. During the financial year ended August 31, 2023, Cognita generated GBP858 million of revenue and a company-adjusted EBITDA of around GBP217 million (before leases). The company is majority-owned by Jacobs Holding AG with minority shareholders BDT Capital Partners and Sofina. LONDON COCKTAIL: Quantuma Advisory Named as Administrators ---------------------------------------------------------- London Cocktail Bars Limited was placed in administration proceedings in the High Court of Justice Business and Property Courts of England and Wales, Court Number: CR-2024-004754, and Andrew Andronikou and Brian Burke of Quantuma Advisory Limited were appointed as administrators on Sept 17, 2024. London Cocktail is in the bar business. Its registered office is at c/o PSB Accountants, Jubilee House, Townsend Lane, London, England, NW9 8TZ and it is in the process of being changed to c/o Quantuma Advisory Limited 7th Floor, 20 St Andrew Street, London, EC4A 3AG. The joint administrators can be reached at: Andrew Andronikou Brian Burke Quantuma Advisory Limited 7th Floor, 20 St. Andrew Street London, EC4A 3AG For further details, contact: Darren McEvoy Email: darren.mcevoy@quantuma.com Tel No: 020 3856 6720 NOMAD FOODS: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable ------------------------------------------------------------ Fitch Ratings has affirmed Nomad Foods Limited's (Nomad) Long-Term Issuer Default Rating (IDR) at 'BB' and senior secured rating at 'BB+' with a Recovery Rating of 'RR2'. The Outlook is Stable. The Stable Outlook reflects its expectations of resilient organic revenue growth over 2024-2027, driven by continued recovery in sales volumes and a positive price and product mix. Fitch expects a gradual recovery in EBITDA margin toward historical levels of around 17%, thereby allowing a gradual build-up of gross leverage headroom, which had remained tight at end-2023. The Stable Outlook is also supported by Nomad's reiterated financial policy of keeping EBITDA net leverage at less than 3.5x with no material debt-funded M&A anticipated in the near term. The 'BB' rating remains supported by Nomad's position as the largest frozen food producer in western Europe, its strong free cash flow (FCF) generation, and adequate interest coverage translating into solid financial flexibility for the rating. Key Rating Drivers Organic Growth, Sales Volume Recovery: Fitch assumes Nomad's organic revenue growth to be around 2% in 2024 (1H24: 0.4% year on year), supported by a positive impact from its price/product mix and further recovery in sales volumes that began in 2Q24. Fitch projects that 2H24 will benefit from increased advertising and promotional activities during 1H24, as well as from innovation and a softer trading base in 2H23. Fitch forecasts revenue to grow at low single digits over 2025-2027, due to still moderate consumer spending recovery and intense competition, including from private labels. Gradual Profitability Gains: Fitch estimates the Fitch-adjusted EBITDA margin to improve to 15.7% in 2024 and further to 16.2% in 2025 (2023: 15.3%), driven by sales growth of higher-margin (Must-Win-Battles) products, cost efficiencies, normalising cost inflation as well as efficiencies gained from recent acquisitions. Fitch projects this will largely offset higher spending on marketing and promotions. Fitch assumes EBITDA margin will gradually recover to around 17% in 2027, in line with Nomad's historical levels. Leverage Headroom to Improve: Fitch projects that steady growth in EBITDA in 2024-2027 will help restore rating headroom, with EBITDA leverage gradually declining toward 4.1x in 2025, and further to around 3.6x in 2027. Nomad's EBITDA leverage stood at 4.5x at end-2023, which is tight under Fitch's negative rating sensitivity of 4.5x. Clear Financial Policy: The Stable Outlook is supported by Nomad's public commitment to adhere to its net debt/EBITDA target of 2.5x-3.5x, which Fitch estimates should translate into Fitch-calculated EBITDA gross leverage of below 4.5x. The Stable Outlook is further underpinned by the absence of material debt-funded M&A in the near future. Despite recently initiated dividend payments Fitch expects Nomad's residual FCF to be sufficient to fund its new share buyback of USD500 million that it plans to execute up to 2026. Strong FCF: FCF will continue to be supported by improving profitability and steady, moderate capex. Fitch projects FCF margin to normalise at around 3%-5% in 2024-2027 (2023: 7.3%), mainly driven by the initiation of dividend payments in 2024. Fitch projects annual dividend at around EUR90 million-EUR107 million per year over 2024-2027. Strong FCF generation remains a credit strength and differentiates Nomad from its peers. It also allows cash accumulation for bolt-on acquisitions, reducing Nomad's need for external funding and refinancing risk. Derivation Summary Nomad compares well with Conagra Brands, Inc (BBB-/Stable), which is the second-largest branded frozen food producer globally with operations mostly in the US. Similar to Nomad's, Conagra's growth strategy is based on bolt-on M&A. The two-notch rating differential stems from Conagra's larger scale and product diversification as it also sells snacks, which account for around 20% of its revenue. In addition, Conagra's organic growth profile is stronger than Nomad's, which allows it to better cope with cost inflation, supporting greater business resilience. Despite its more limited geographical diversification and smaller business scale, Nomad is rated higher than the world's largest margarine producer, Sigma Holdco BV (B/Stable). The rating differential is explained by Nomad's lower leverage, proven ability to generate positive FCF, and less challenging demand fundamentals for frozen food than for plant-based spreads. Nomad is rated below global packaged food and consumer goods companies, such as Nestle SA (A+/Stable), and The Kraft Heinz Company (BBB/Stable), due to its narrower product and geographical diversification, smaller business scale and weaker financial profile. Key Assumptions Fitch's Key Assumptions Within Its Rating Case for the Issuer: - Organic revenue growth of below 2% in 2024 and stabilising at around 2% annually in 2025-2027 - EBITDA margin at 15.7% in 2024, before gradually recovering towards 17% in 2027 - Capex at 2.6%-3% of revenue in 2024-2027 - Dividends payments growing from EUR90 million in 2024 to EUR107 million in 2027 - Share buybacks of up to a cumulative USD450 million over 2024-2026 - Accumulated cash to be used for bolt-on M&A RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Strengthened business profile via increased business scale or greater geographical and product diversification - Continuation of organic growth in sales and EBITDA - EBITDA leverage below 3.5x on a sustained basis, supported by a consistent financial policy - Maintenance of strong FCF margins Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Weakening organic sales growth, resulting in market-share erosion across key markets - EBITDA leverage above 4.5x on a sustained basis as a result of operating underperformance or large-scale M&As - A reduction in EBITDA margins or higher-than-expected exceptional charges leading to FCF margins below 2% on a sustained basis Liquidity and Debt Structure Adequate Liquidity: At end-June 2024, Nomad had sufficient liquidity with reported cash of EUR328million and EUR165 million available under a revolving credit facility (RCF) of EUR175 million (of which EUR10 million is carved out as a guarantee facility). Together with expected strong FCF in 2024-2025, this should be more than sufficient to cover small amortisation payments due in the next 12 months on its US dollar term loan. The next material debt maturity in 2028. Uplift to Senior Secured Rating: The one-notch uplift to the rating of the senior secured loans and notes to 'BB+' reflects its view of above-average recovery prospects. These are supported by moderate leverage that is partly offset by the lack of material subordinated, or first-loss, debt tranche in the capital structure. The senior credit facilities and notes share the same collateral and therefore rank equally among themselves. Issuer Profile Nomad is the largest frozen food producer in western Europe. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. 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 ----------- ------ -------- ----- Nomad Foods Lux S.a.r.l. senior secured LT BB+ Affirmed RR2 BB+ Nomad Foods Limited LT IDR BB Affirmed BB Nomad Foods Europe Midco Limited senior secured LT BB+ Affirmed RR2 BB+ Nomad Foods US LLC senior secured LT BB+ Affirmed RR2 BB+ Nomad Foods BondCo Plc senior secured LT BB+ Affirmed RR2 BB+ SELINA HOSPITALITY: To Be Delisted From Nasdaq Effective Sept. 30 ----------------------------------------------------------------- The Nasdaq Stock Market LLC (the Exchange) disclosed in a 25-NSE that it has determined to remove from listing the securities of Selina Hospitality PLC, effective at the opening of the trading session on September 30, 2024. Based on review of information provided by the Company, Nasdaq Staff determined that the Company no longer qualified for listing on the Exchange pursuant to Listing Rule 5550(a)(2). The Company was notified of the Staff determination on April 17, 2024. On April 24, 2024, the Company exercised its right to appeal the Staff determination to the Listing Qualifications Hearings Panel (Panel) pursuant to Listing Rule 5815. On May 20, 2024, the Company received an additional delist determination for its failure to maintain compliance with Listing Rule 5250(c)(1). On July 25, 2024, upon review of the information provided by the Company, the Panel denied the Company request to remain listed in the Exchange and Panel determined to delist the Company. The Company securities were suspended on July 29, 2024. The Company did not appeal the delist decision to the Nasdaq Listing and Hearing Review Council (Council) and the Council did not call the matter for review. The Staff determination to delist the Company became final on September 9, 2024. About Selina Hospitality Headquartered in London, England, Selina Hospitality PLC is an operator of lifestyle and experiential Millennial- and Gen Z-focused hotels, with 118 destinations opened in 24 countries across six continents. Tysons, Virginia-based Baker Tilly US, LLP, the Company's auditor since 2021, issued a "going concern" qualification in its report dated April 28, 2023, citing that the Company has suffered historical losses from operations, has a net capital deficiency, negative working capital, and cash outflows from operations that raise substantial doubt about its ability to continue as a going concern. In December 2023, the Company missed certain payments due under an Indenture with Wilmington Trust, National Association, as trustee, dated as of Oct. 27, 2022, in respect of 6% Convertible Senior Notes due 2026. The Company announced on Feb. 5, 2024, that it had received a notice from a holder of more than 25% of the principal amount of the 2026 Notes informing the Company that the holder was purporting to exercise its right under the Indenture to accelerate the outstanding principal amount of, premium (if any) on, and accrued and unpaid interest due under all of the 2026 Notes. The Company said in March it has engaged with relevant noteholders to discuss potential settlement arrangements and is assessing its legal position. "There can be no assurances that such discussions will result in a successful outcome and the Company may need to consider formal restructuring options in relation to the indebtedness due under the 2026 Notes and its other liabilities," the Company warned. SUBLIME SCIENCE: Quantuma Advisory Named as Administrators ---------------------------------------------------------- Sublime Science Limited was placed in administration proceedings in the the High Court of Justice - Business and Property Courts in Birmingham Court, Court Number: CR-2024-BHM-000553, and Richard Easterby and Michael Kiely of Quantuma Advisory Limited were appointed as administrators on Sept 16, 2024. Sublime Science Limited specializes in educational support services. Its principal trading address is at Unit 4 Fernleigh Business Park Blaby Road, Enderby, Leicester, LE19 4AQ. The administrators can be reached at: Richard Easterby Michael Kiely Quantuma Advisory Limited 7th Floor, 20 St. Andrew Street London, EC4A 3AG For further information, contact: Archie Edmonds Email: Archie.Edmonds@quantuma.com Tel No: 0203 744 7234 TSP ENGINEERING: Leonard Curtis Named as Administrators ------------------------------------------------------- TSP Engineering Limited 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-000898, and Iain Nairn and Sean Williams of Leonard Curtis were appointed as administrators on Sept 13, 2024. TSP Engineering manufactures fabricated metal products and specializes in engineering design activities for industrial process and production. Its registered office is at Curwen Road, Derwent Howe, Workington, Cumbria, CA14 3YX to be changed to Unit 13, Kingsway House, Kingsway, Team Valley Trading Estate, Gateshead, NE11 0HW. Its principal trading address is at Curwen Road, Derwent Howe, Workington, Cumbria, CA14 3YX. The administrators can 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 For further information, contact: The Joint Administrators Tel No: 0191 933 1560 Email: recovery@leonardcurtis.co.uk Alternative contact: Ryan Butler ********* 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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