/raid1/www/Hosts/bankrupt/TCREUR_Public/241028.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Monday, October 28, 2024, Vol. 25, No. 216
Headlines
F R A N C E
ELIOR GROUP: Fitch Assigns 'B+' LongTerm IDR, Outlook Positive
TARKETT PARTICIPATION: Fitch Affirms 'B+' LT IDR, Outlook Stable
G R E E C E
PUBLIC POWER: Fitch Gives BB(EXP) on New EUR500MM Unsec. Bond
I R E L A N D
INVESCO EURO IX: Fitch Assigns 'B-sf' Final Rating on Cl. F-R Notes
I T A L Y
WEBUILD SPA: Fitch Rates EUR600MM Sr. Unsecured Notes 'BB'
L U X E M B O U R G
ACCORINVEST GROUP: Fitch Assigns 'BB(EXP)' Rating on Sr. Sec Notes
BELRON GROUP: Fitch Affirms 'BB' IDR, Outlook Stable
PICARD GROUPE: Fitch Puts BB- Rating on EUR650MM Notes on Watch Neg
QSRP INVEST: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
N E T H E R L A N D S
SPRINT BIDCO: Moody's Lowers CFR to Ca & Alters Outlook to Stable
R U S S I A
ANOR BANK: Fitch Affirms 'B-' LongTerm IDRs, Outlook Stable
IPAK YULI: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
UNIVERSAL BANK: Fitch Affirms 'B-' LongTerm IDRs
UZKIMYOSANOAT: Fitch Puts 'BB-' IDR on Watch Negative
S W E D E N
INTRUM AB: Fitch Lowers LongTerm IDR Rating to 'C'
INTRUM AB: Moody's Cuts CFR to 'Ca', Outlook Developing
T U R K E Y
TURKIYE WEALTH: Fitch Rates USD750MM Certificates 'BB-'
U N I T E D K I N G D O M
CALDICOT GROUP: Begbies Traynor Named as Joint Administrators
CALDWELL METALWORK: Hudson Weir Named as Joint Administrators
FYLDE COAST: Opus Restructuring Named as Joint Administrators
GRIFFIN MEDIA: RSM UK Named as Joint Administrators
KIER GROUP: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
NEW CINEWORLD: Moody's Affirms 'B3' CFR & Rates New Term Loan 'B3'
NIKAL LTD: Begbies Traynor Named as Joint Administrators
PAVILLION MORTGAGES 2024-1: Fitch Assigns B(EXP) Rating on F Notes
SAFEGUARD BIOSYSTEMS: Resolve Advisory Named as Administrators
ZEUS BIDCO: Moody's Lowers CFR to 'B3', Outlook Negative
X X X X X X X X
[*] BOND PRICING: For the Week October 21 to October 25, 2024
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F R A N C E
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ELIOR GROUP: Fitch Assigns 'B+' LongTerm IDR, Outlook Positive
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Fitch Ratings has assigned Elior Group S.A. a Long-Term Issuer
Default Rating (IDR) of 'B+'. The Outlook is Positive. Fitch has
also assigned its 2026 senior unsecured notes a 'B+' rating with a
Recovery Rating of 'RR4'.
Elior's 'B+' IDR reflects its analytical approach for a stronger
parent (Derichebourg S.A., BB+/Stable, owning 48% of the share
capital) and a weaker subsidiary (Elior). Fitch applies a bottom-up
assessment in accordance with its Parent and Subsidiary Linkage
(PSL) Criteria with a single-notch uplift from Elior's Standalone
Credit Profile (SCP) of 'b'.
Elior's ratings are constrained by currently weak credit metrics,
including high leverage and limited free cash flow (FCF) generation
over the next 12-18 months. They also reflect a robust business
profile with a strong position in the French catering market and
meaningful scale, as well as improved business diversification
following the acquisition of Derichebourg Multi Services (DMS) in
2023. Its diverse contract base results in low customer churn and
moderate revenue and earnings stability across economic cycles.
The Positive Outlook reflects Fitch's expectation of an improvement
in credit metrics over the next 12-18 months as strengthening
profitability helps increase FCF and reduce Fitch-adjusted EBITDA
leverage to 5.5x. This may support an upgrade in the next 12-18
months, assuming Elior maintains a solid business profile and a
stable relationship with Derichebourg.
Key Rating Drivers
Robust Business Model: Elior's SCP of 'b' is underpinned by its
robust business model owing to its strong position in the French
catering market, a large contract base and a diverse customer pool
with low churn rates. The addition of DMS increases business
diversification away from the sole catering business with the
multi-services segment representing 28% of revenue in the last 12
months to March 2024. It also provides scope for future growth
through cross-selling.
PSL Approach, Stronger Parent: In applying its PSL Criteria, Fitch
assesses the legal and operational incentives for Derichebourg to
support Elior as 'Low' and the strategic incentive as 'Medium'.
This reflects the material asset value Elior represents for
Derichebourg, leading to an overall bottom-up approach where
Elior's 'b' SCP is lifted by one notch to its 'B+' IDR. Fitch will
monitor the evolving relationship between the parent and
subsidiary. In case of diminishing strategic importance of Elior
for Derichebourg Fitch may assesses Elior on a standalone basis,
which may lead to the removal of the one-notch uplift above its
SCP.
Recovering Profitability: Fitch estimates Fitch-adjusted EBITDA
margin to have reached 3.6% in FY24 (year-end to September) and to
further strengthen to above 4% after FY25. This represents a
meaningful increase from FY20-FY23 levels and will be key in
driving Elior's FCF and leverage to levels that are commensurate
with a 'b+' SCP, as underlined in its Positive Outlook.
The improvement follows the exit of non-profitable contracts
undertaken in the last 18 months, and the full impact from
integrating the more profitable DMS. Elior has also been working on
optimising its catering cost structure to adapt to changing
customer needs, particularly in the business & industry segment.
Rapid Deleveraging Expected: Fitch expects rapid deleveraging, as a
result of continued recovery and profitability improvements. Fitch
forecasts Fitch-adjusted EBITDA leverage to decline to 6.5x in FY25
and 5.5x in FY26, from a high 7.3x estimated at FYE24. Fitch sees
manageable execution risk, as most of the profitability improvement
measures relate to contract renegotiation and its cost structure
has been updated. Fitch expects good retention rates to be
maintained with its main customers across catering and
multi-services. Deleveraging 0.5x a year until FY28 may support an
upgrade in the next 12-18 months, as signaled by the Positive
Outlook.
Stabilising FCF: Fitch expects Elior to return to moderate FCF
generation in the next 12-18 months, which should further
strengthen in excess of EUR50 million a year or around 1% of
revenues from FY26. This will be driven by improving profitability
and contained capex under its asset-light business model. The
consolidating FCF profile comes after years of negative FCF during
the pandemic followed by years of high inflation. Stabilising FCF
is a critical factor behind an upgrade. Conversely, persistently
neutral-to-negative FCF could weigh on the ratings.
Refinancing Ahead: Elior faces approaching refinancing risk, with
its EUR550 million notes due in July 2026. Fitch expects it to
address it in the upcoming months after having focused its
resources on integrating DMS, profitability recovery and
cost-inflation protection measures. While leverage may still be at
the high end, Fitch believes Elior is better placed now for this
refinancing exercise than it was 18 months ago.
Limited Geographical Diversification: Elior's revenues are
concentrated in Europe, at 76% of FY23 net sales (pro-forma for the
DMS acquisition). The group has a historical focus on the French
market, with around half of its sales generated in the country.
This concentration exposes Elior to downturns affecting the region.
This is partly mitigated by the group's diverse end-markets.
Strong Market Share, Revenue Visibility: Elior benefits from a
strong market share in its key French catering market, at around
32%. Fitch also views positively the group's exposure to different
end-markets, such as private businesses, healthcare providers and
education companies, which provides some revenue and earnings
stability across economic cycles. Elior also has high retention
rates (93.6% at end-March 2024 excluding voluntary contract exits)
across its diversified customer base with multi-year contracts and
its top 10 customers accounting for 12% of FY23 total revenue.
Financial Policy Focuses on Deleveraging: Fitch factors into its
rating analysis Elior's focus on deleveraging and on limiting
dividend payments until net leverage (as calculated by the group)
reaches below 3.0x, which corresponds to a Fitch-defined leverage
of below 5.0x. Fitch expects Derichebourg to be supportive of this
strategy given the nature of its investments in Elior. Evidence of
a more aggressive financial policy undermining the deleveraging of
the business will put the ratings under pressure.
Derivation Summary
Fitch rates Elior using its Business Services Navigator framework.
Elior benefits from a strong position in its core French market and
shows reasonable diversification across the catering and
multi-service segments.
Elior's closest peer in terms of business profile is Sodexo (BBB+
Stable). The large rating difference is warranted by Elior's lower
geographical diversification, much smaller scale and weaker credit
metrics overall. Elior is mostly present in Europe (around 76% of
its revenue) while Sodexo has a balanced presence across Europe
(35% of FY23 revenue), North America (46%) and rest of the world
(18%). Elior's leverage is expected to remain above 5.5x over the
next 24 months, while Sodexo's is forecast at around 2.5x.
Fitch also compares Elior with other business services providers
such as Circet Europe SAS (B+/Positive) and Assemblin Caverion
Group AB (B/Stable). Compared with both peers, Elior 'b' SCP
reflects a more balanced end-market and geographical mix, but also
lower profitability and FCF, as well as higher forecast leverage.
The Positive Outlooks for Circet and Elior reflect their
deleveraging prospects. Finally, Elior's 'B+' IDR benefits from a
one-notch uplift due to the stronger parent in accordance with
Fitch's PSL Criteria.
Key Assumptions
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Revenue growth of 15.2% in FY24, followed by mid-single digit
growth to FY28
- EBITDA margin of 3.4% in FY24, gradually reaching 4.3% by FY28
- Capex at 2% of revenue over the forecast period
- Working-capital inflow of 0.4% of revenue in FY24 and outflow of
0.1% - 0.3% to FY28
- No dividend payments over the forecast period
- M&A spend of about EUR30 million in FY24 and EUR10million a year
to FY28
Recovery Analysis
In conducting its bespoke recovery analysis, Fitch estimates that
Elior's asset-light business model, in the event of default, would
generate more value from a going-concern (GC) restructuring than a
liquidation of the business.
Fitch has assumed a 10% administrative claim in the recovery
analysis.
Its analysis assumes post-restructuring GC EBITDA of around EUR180
million. Fitch has applied a 5x distressed multiple, reflecting
Elior's scale, customer and geographical diversification.
Fitch assumes Elior's securitisation programme at around EUR400
million would need to be replaced by alternative funding at
distress, ranking senior to its unsecured notes. Fitch also assumes
a fully drawn EUR350 million revolving credit facility (RCF).
Based on current metrics and assumptions, the waterfall analysis
generates a ranked recovery at 42%, corresponding to the 'RR4'
band. This indicates a 'B+' instrument rating for the senior
unsecured bonds, in line with Elior's IDR.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Loss of contracts leading to a deterioration of Elior's
competitive position in its main markets
- EBITDA margins remaining below 3.5%
- Gross debt / EBITDA above 6.5x on a sustained basis
- EBITDA interest cover below 2.0x
- (Cash flow from operations (CFO) less capex)/debt below 1%
- Neutral-to-negative FCF
- A multi-notch downgrade of Derichebourg's rating or weakening of
strategic ties with Derichebourg leading to Fitch's assessment of
Elior on a standalone basis
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Continued recovery in revenue growth and demonstration of
cross-selling capabilities across segments
- Improving profitability leading to EBITDA margins above 4% on a
sustained basis
- Gross debt / EBITDA below 5.5x on a sustained basis
- EBITDA interest cover above 3.0x
- (CFO less capex)/debt above 3%
- FCF margins consistently in excess of 1%
Liquidity and Debt Structure
Sufficient Liquidity: Elior had a reported cash position of EUR81
million as of March 2024 and EUR190 million available under its RCF
of EUR350 million. In addition, the group has access to a
securitisation programme, which provides additional liquidity
through receivables financing.
Approaching Debt Maturities: Elior has a senior unsecured bond due
in July 2026, an EUR11 million term loan B and an EUR39 million RCF
both due in July 2025, and another EUR89 million term loan B and
EUR311 million RCF, both due in July 2026. However, Fitch views
refinancing risk as manageable, supported by Elior's improving
profitability and FCF generation. Fitch assumes timely debt
refinancing, albeit at a higher debt cost in its rating case.
Issuer Profile
Elior is an international contract catering and diversified
services provider with leading catering market share in France. Its
services include cleaning, facility management, electrical and
climate engineering, remote surveillance, energy efficiency, public
lighting and green spaces.
Date of Relevant Committee
14 October 2024
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
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Elior Group S.A. LT IDR B+ New Rating WD
senior unsecured LT B+ New Rating RR4
TARKETT PARTICIPATION: Fitch Affirms 'B+' LT IDR, Outlook Stable
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Fitch Ratings has affirmed Tarkett Participation's Long-Term Issuer
Default Rating (IDR) at 'B+' with a Stable Outlook. Fitch has also
affirmed Tarkett's secured debt at 'BB-' with a Recovery Rating of
'RR3' following the announcement of EUR100 million add-on to its
existing term loan B (TLB).
The affirmation and Stable Outlook reflect Tarkett's adequate
credit metrics for the rating, with all remaining well within the
relevant sensitivities. Forecast margins and leverage in the next
two years have sufficient headroom to counterbalance weak demand in
2024 across Tarkett's main regions and segments, except for sport
flooring, which has stronger revenue growth and improving margins.
The rating remains constrained by weaker operating profitability
than the sector and limited free cash flow (FCF).
The rating is supported by Tarkett's leading market positions
across a number of product segments and markets, strong
diversification, a sound split between renovation and new build,
and between commercial and private residential end-customer
segments. The increase in leverage introduced by the add-on
transaction is compensated for by an associated increase in EBITDA
arising from the proceeds being used to fund acquisitions.
Key Rating Drivers
Add-On to Fund M&A: The EUR100 million add-on to the existing TLB
will be used to fund additional M&A bolt-on acquisitions. The
add-on introduces only a limited increase in leverage in the short
term (around a 0.2x increase) as this is largely compensated for by
increasing EBITDA from the anticipated acquisitions, with EBITDA
gross leverage expected to be around 4.2x by 2027.
Improving Leverage: Tarkett's EBITDA gross leverage of 5.4x at
end-2023 was better than its forecast of 6.1x a year ago. This
improvement was largely due to faster than expected repayment of
drawings on the revolving credit facility (RCF), supported by
better inventory management and higher EBITDA. Fitch forecasts
further deleveraging to about 4.8x at end-2024 and 4.5x at
end-2025, slightly above its previous expectations of 4.6x and 4.3x
due to the debt add-on. Fitch believes Tarkett's recent
profitability improvement ensures a comfortable liquidity position
and leverage headroom to counterbalance weak demand for the
building products in 2024, before it recovers on a sustained
basis.
Margins Below Peers, Albeit Improving: Tarkett's margins continue
to lag its Fitch-rated building products sector peers, which the
agency views as a constraint for the rating. However,
Fitch-adjusted EBITDA margins improved to 6.5% in 2023 from 5.5% in
2022 mostly due to cost-cutting and normalised raw material
prices.
Fitch expects Tarkett's margins to trend towards about 8% in the
next two years, as inflationary pressures ease and efficiency
measures crystallise, which is set against low double-digit margins
for peers. The weaker margins reflect Tarkett's less niche product
mix, the lower-margin North America segment (compared with
historical margins although gradually improving), lower margins in
Europe due to weak demand and a fairly long lag to pass through
higher prices on customers.
FCF to Stabilise: Fitch expects FCF margins to stabilise between
1.4% and 1.7% in 2024-2025. Fitch believes it will be supported by
higher EBITDA, lower interest payments, no dividend payments and
stable capex intensity at 2.8% of sales. Fitch views working
capital discipline as critical for positive FCF generation, with
continued disciplined inventory management as a key element.
Sector Demand Remains Challenging: Fitch expects the demand for
building products to remain weak in 2024 with some exceptions
across certain niche products or end-markets. Tarkett is strong in
sport flooring and benefits from high demand, particularly in North
America, which counterbalances weak volumes in other segments.
Residential demand will remain weak in Europe, where Tarkett
generates a quarter of its revenue, partly from residential
flooring, before monetary easing rebuilds consumers' disposable
income and confidence.
Fitch believes Tarkett's sound diversification with high exposure
to renovation and to more resilient commercial education and
healthcare flooring will mitigate weak residential demand in 2024.
However, Fitch expects downward pricing pressure as prices of raw
materials have significantly declined since the 2022 peak.
Russian Operations Contained: Sanctions imposed on Russia at the
outbreak of the war in Ukraine put pressure on Tarkett's profitable
Russian operations. The Russian business is mainly produced and
sourced locally, but the economy and Russian ruble exchange rate
against the euro remain uncertain. The limitations on repatriating
cash from Russia is not a material risk as to date cash flow
generated has been partly retained in Russia to manage local
operations and partly remitted to the group. However, Fitch
considers Tarkett's exposure to Russia in its peer comparison,
rating sensitivities and Recovery Rating analysis.
Raw Material Sensitivity: Tarkett is exposed to raw-material cost
swings, notably of oil-based derivatives PVC, plasticisers and
vinyl. It suffers from a fairly long lag in passing on cost
inflation to its customers. Commercial projects can have up to one
year between order and delivery as floor installation is at a late
stage of project construction.
The company has been able to offset the inflation impact arising
from raw materials increases in 2022, generating a positive
inflation balance in 2023 with fairly strong prices and cheaper raw
materials. Fitch believes recent purchase optimisation and tight
cost control will support further margin recovery.
Balanced End-Market Diversification: Tarkett's business profile
benefits from an 80/20 split between the more stable renovation
market versus the potentially more volatile new-build market. The
flooring renovation cycle is quite frequent, with office space in
particular generally changing flooring with every new tenant or
lease contract. Its 75/25 split between commercial and private
residential allows Tarkett to benefit from different demand
drivers.
Derivation Summary
Tarkett's closest rated peer is Hestiafloor 2 (Gerflor,
B/Positive), which has fairly similar product offerings of vinyl
and linoleum flooring for primarily commercial end-customers.
Gerflor is smaller, with about a third of Tarkett's turnover, and a
fairly high exposure to France, but it has better EBITDA margins
(12%-13%) than Tarkett (7%-8%). Victoria PLC (B+/Stable), which
targets the residential flooring segment mostly in Europe, is also
smaller and generates higher EBITDA margins (11%-13%) than Tarkett
in the next two to three years.
Other peers include the largest flooring company globally, US-based
Mohawk Industries, Inc. (BBB+/Stable) and building products company
Masco Corporation (BBB/Stable). These companies are more than
double Tarkett's size, and have higher exposure to residential
end-customers. Mohawk is large also in ceramic tiles and Masco's
offering spans a portfolio of home-improvement building products.
Tarkett's expected EBITDA gross leverage of 4.8x-4.5x in 2024-2025
is stronger than that of lower rated Gerflor's (5.7x-5.5x). EBITDA
gross leverage of similarly rated Victoria is similar to that of
Tarkett's with 5.1x-4.8x expected by Fitch in the financial years
ending March 2024 and 2025.
Key Assumptions
- Revenue to decline by about 4% in 2024, mid-single-digit growth
in 2025 and low-single-digit annual growth in 2026-2027.
- Broadly stable EBITDA margin at about 8% in 2024-2027 (6.5% in
2023), reflecting easing inflation and cost control.
- Capex at around 2.8% of sales.
- Cost of debt benefiting from hedges until end-2026.
- No dividends assumed over the rating horizon.
Recovery Analysis
- The recovery analysis assumes that Tarkett would be reorganised
as a going concern in bankruptcy rather than liquidated.
- A 10% administrative claim.
- The RCF is fully drawn in a post-restructuring scenario according
to Fitch's criteria. The factoring line is ranked super senior
(deducted from estimated enterprise value). Senior unsecured debt
consists of overdraft facilities and other bank loans, which rank
behind senior secured debt.
- The going-concern EBITDA estimate of EUR170 million reflects its
view of a sustainable, post-reorganisation EBITDA upon which Fitch
bases the valuation of the company. This has been raised from
EUR155 million due to the accelerated M&A expected to be undertaken
in 2024 and 2025.
- An enterprise value multiple of 5.5x is used to calculate a
post-reorganisation valuation. It reflects Tarkett's leading
position in its niche markets (such as sport or resilient flooring
and commercial carpets in western Europe and Russia or wood
flooring in the Nordics), long-term relationship with clients and
an 80% revenue share in the renovation segment, limiting its
exposure to more volatile new-build projects.
- The waterfall analysis output for the senior secured debt (TLB of
around EUR890 million and EUR100 million TLB add-on) generated a
ranked recovery in the 'RR3' band, indicating an instrument rating
of 'BB-'. The waterfall analysis output percentage on current
metrics and assumptions was 55%.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDA margin above 8% on a sustained basis.
- FCF margins sustainably above 2% on a sustained basis.
- EBITDA gross leverage below 4x on a sustained basis.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA margin below 6%.
- Negative FCF.
- EBITDA gross leverage above 6x.
- EBITDA interest coverage below 3x.
Liquidity and Debt Structure
Comfortable Liquidity: At end-1H24, Takett had EUR85 million of
Fitch-adjusted cash and EUR299 million of the RCF (total facility
EUR350 million) with maturity in 2027. Fitch's cash adjustments
include 1% of sales to cover intra-year working capital changes and
cash held in Russia and Ukraine. The company's liquidity position
is supported by no dividend payments, pre-funded M&A activity,
modest capex requirements and no major debt amortisation scheduled
in the next three years. Fitch forecasts positive FCF generation at
around 1.6% of revenue in 2024-2025.
Long Debt Maturity Profile: The capital structure includes two
'Schuldschein' tranches with EUR16 million outstanding (as of June
2024) and the longest maturity in 2026, amortising loans with
outstanding amount of EUR34.8 million (June 2023) and the longest
maturity in 2027, the bond loan of EUR31.5 million with the
maturity in 2031, the RCF with maturity in 2027 and TLBs of
EUR821.2 million and USD69.5 million with maturity in 2028 (with
the addition of the TLB add-on of EUR100 million from October
2024). Fitch believes the refinancing risk for all minor debt items
is low, while for the largest debt portion due in 2028 it is
mitigated by improving key credit metrics.
Issuer Profile
Tarkett is a leading flooring and sports surface manufacturer
offering products and services to the healthcare, education,
housing, hotels, offices, commercial and sports markets. Products
include vinyl, linoleum, carpet, rubber and wood flooring, as well
as synthetic turf and athletics tracks.
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
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Tarkett Participation LT IDR B+ Affirmed B+
senior secured LT BB- Affirmed RR3 BB-
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G R E E C E
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PUBLIC POWER: Fitch Gives BB(EXP) on New EUR500MM Unsec. Bond
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Fitch Ratings has assigned Public Power Corporation S.A.'s (PPC;
BB-/Stable) upcoming proposed EUR500 million senior unsecured bond
due 2031 an expected rating of 'BB-(EXP)'. The Recovery Rating is
'RR4'.
The proposed issue is rated in line with PPC's 'BB-' Issuer Default
Rating (IDR) and outstanding senior unsecured sustainability-linked
notes (EUR775 million due March 2026 and EUR500 million due July
2028) and will rank equally with PPC's existing senior unsecured
debt. The draft terms of the proposed notes largely mirror the
terms and conditions of the outstanding notes, with the exception
of the new proposed one not being a sustainability-linked bond.
Fitch expects the proceeds from the notes issue will be used to
fund PPC's capex plan. The final instrument rating is subject to
the receipt of final debt documentation confirming the information
already received.
Key Rating Drivers
Instrument Rating Aligned with IDR: The rating on the proposed
senior unsecured bond is in line with PPC's 'BB-' IDR and its
outstanding notes totalling EUR1,275 million, as the new notes will
constitute unconditional, unsubordinated and unsecured obligations
of PPC, and will, at all times, rank at least equally with PPC's
all other present and future unsecured and unsubordinated
indebtedness. The notes' provisions mirror those of the existing
bonds, which supports the same instrument rating for the new
notes.
Capex-related Issue: PPC's proposed EUR500 million senior unsecured
bond will increase gross debt as the proceeds will be used to
partially fund its announced capex plan - largely to build up
renewable capacity in Greece, Romania and Bulgaria - rather than
repaying existing debt. Fitch expects PPC to refinance its EUR775
million notes maturity in 2026, with new debt to be issued in 2025.
Moreover, the proposed senior unsecured issue at the holding
company will mitigate structural subordination risk within the
group.
Limited Protection Through Covenant Package: The proposed notes
include customary high-yield provisions, i.e. limitations on
dividends payment, non-scheduled debt repayment or restricted
investments, albeit with wide 'permitted payments' baskets. The
covenants will be removed if PPC achieves investment-grade status.
These provide limited protection to bondholders at the current
rating level, in its view. However, the company's self-imposed
financial target of net debt/EBITDA (not including trade
receivables securitisations and operating lease-related debt in the
net debt stock) at 3.0x - 3.5x by 2026, is strong for its 'BB-'
sensitivities.
Current Trading on Track: EBITDA has been strong at EUR0.9 billion
during 1H24 (up from EUR0.6 billion in 1H23) and provides good
visibility for the group's EUR1.8 billion target for FY24 (EUR1.5
billion in Fitch's forecast). The higher EBITDA is largely due to
the contribution of the Romanian business acquired at end-2023 and
Greece's increased output, notwithstanding lower price and an
expected market share reduction for supply. This underpins the
resilience of PPC's increasingly integrated (generation + supply)
business model.
Accelerated Growth Plan: PPC's gross capex (including M&A) plan is
forecast at around EUR9.0 billion for 2024-2026 (EUR1.1 billion
invested by 1H24, not including recent M&A), out of which 44% is
for renewables growth (up 4.4 GW by 2026) and 38% for international
growth. Around 80% of the residual renewable capacity needed for
2026 target was already under construction and ready-to-build as of
June 2024.
Active in M&A: PPC announced in August a binding agreement with
Evryo Group to acquire their renewable energy generation portfolio
in Romania, which comprises 629MW renewables in operation and about
145MW in pipeline assets, for EUR700 million. The acquisition
further strengthens PPC's growth strategy in Romania and southeast
Europe. Moreover, in September the group announced a strategic
agreement for the acquisition of 66.6 MW renewable capacity in
operation and 1.7 GW under development in Greece for an additional
EUR176 million.
Deeply Negative Free Cash Flow: Fitch forecasts PPC's FCF to be
deeply negative at around EUR1.5 billion on average for 2024-2026,
peaking in 2024 and 2025 due to large investments in renewables
(onshore wind and solar PV). According to PPC, FCF is expected to
improve from 2028 when major renewables investments are
commissioned.
FFO Leverage to Rise: Fitch expects the group's funds from
operations (FFO) net leverage to increase to around 4.5x, albeit
still with good headroom under the negative sensitivity for its
'bb-' Standalone Credit Profile (SCP) at 5.0x. This is consistent
with PPC's financial policy of reported net debt at 3.0x-3.5x
EBITDA.
Standalone Approach: Fitch assesses as 'Strong' for both the
precedent of support, due to PPC's legacy stock of state-guaranteed
debt that is currently set to materially decrease, and contagion
risk, due to sizable supranational funding and Greek banks'
exposure to PPC. However, Fitch sees decision-making and oversight
as 'Not Strong Enough', as it is directly linked to the state's 34%
ownership with no enhanced governing or voting rights, and the
preservation of public service is in line with its assessment for
most European utilities. The overall assessment leads to a
standalone rating approach.
Derivation Summary
PPC is the incumbent electricity utility in Greece, with the
closest domestic rated peer being Metlen Energy & Metals S.A.
(Metlen; BB+/Stable), which lags behind PPC in market share and
scale. Metlen is a diversified group operating in the more volatile
and cyclical metallurgy (aluminium) and construction sectors and in
the power sector, with generation and supply contributing around
37% of EBITDA on average up until end-2027.
Metlen benefits from a higher renewables capacity in its business
mix, gas-fired plants and no exposure to lignite. The two-notch
rating difference is due to Metlen's substantially lower forecast
net leverage, trending to below 2.0x versus around 4.5x for PPC in
2024-2026.
PPC's peers include Bulgarian Energy Holding EAD (BEH;
BB+/Positive; SCP: bb) in Bulgaria and Societatea Energetica
Electrica S.A. (BBB-/Negative; SCP: bbb-) in Romania. BEH's FFO net
leverage below 2.0x is materially lower than that of PPC,
notwithstanding the same creditworthiness (excluding support). BEH
benefits from a one-notch support from the sovereign parent
(BBB/Positive) under its GRE Criteria.
PPC is also comparable to Electrica, a utilities company operating
in Romania, following the acquisition of Enel Romania. Electrica's
investment-grade rating reflects a materially higher regulated
EBITDA mix (80% networks compared with around 40% for PPC at
consolidated level), and lower leverage at around 3.3x on average
for 2024-2026. However, Fitch views the regulatory environment in
Romania as less transparent and predictable than in Greece, with
cash flows being penalised in the last two years by high energy
prices and heavy market intervention, resulting in its Negative
Outlook. As with PPC Fitch does not apply any notching support to
Electrica's IDR.
PPC's integrated business structure and strong market position in
the domestic market make the company comparable with some
investment-grade central European peers such as PGE Polska Grupa
Energetyczna S.A. (BBB+/Stable) and ENEA S.A. (BBB/Stable), which
share pollution issues related to coal mining and coal-fired
generation. PPC also operates in a more volatile and less
transparent regulatory environment than ENEA and its results are
less predictable with a history of political intervention. Overall
better business risk profile, a healthier operating environment and
lower leverage explain the multi-notch difference with the central
European peers.
Key Assumptions
Fitch's Key Assumptions within Its Rating Case for the Issuer:
- Average electricity baseload day-ahead market price in Greece to
gradually decrease to EUR71/MWh by 2026 from EUR79.1/MWh in 1H24
and EUR126/MWh in 2023
- Average selling price to gradually decrease to EUR117/MWh in 2026
from EUR191/MWh in 2023
- EBITDA to increase over 2023-2026 at a CAGR of around 9%
- Recovery of Romanian distribution losses as approved, and supply
state receivables to gradually unwind in 2024-2026
- Phase-out of existing lignite-fired power plants in 2026 (total
phase-out including new 0.61GW Ptolemaida V by 2026) and new
Alexandroupolis CCGT unit to start operations in 2026
- Gradual ramp-up of renewables capacity by end-2026 to 3.2GW in
Greece (from 0.8GW at end-2023) and to 2.3GW in Romania and
Bulgaria (from 0.6GW at end-2023), largely to be sold to PPC's
customer base
- Regulated asset base increasing to EUR3.8 billion by end-2026 in
Greece from EUR3.1 billion at end-2023 and stable at around EUR1.2
billion in Romania
- Supply volumes in Greece to decline to 25TWh by end-2026 from
27TWh in 2023
- Sizable regulatory and trade working-capital unwinding in 2024
largely offset by working-capital outflows in 2025-2026
- Cumulative capex net of customer grants of EUR8.0 billion for
2024-2026 (gross capex of EUR8.7 billion) and EUR0.4 billion of
acquisitions in 2024 including Kotsovolos
- Dividends to shareholders resumed from 2024 for the financial
result in 2023, based on an unchanged policy of 35%-55% payout.
Continuation of a share buyback up to 10% of share value
RATING SENSITIVITIES
Factors That Could Collectively or Individually Lead to Positive
Rating Action/Upgrade
- FFO net leverage below 4.0x on a sustained basis
- FFO interest coverage higher than 3.5x
- Successful delivery of the business plan and lower regulatory and
political risk could lead us to relax sensitivities for the rating
Factors That Could Collectively or Individually Lead to Negative
Rating Action/Downgrade
- FFO net leverage exceeding 5.0x on a sustained basis, also as a
result of a more aggressive-than- expected financial policy
- FFO interest coverage lower than 2.5x
- Worsened operating environment in Greece and Romania, including
failure to improve trade receivables collections
- Failure to keep prior-ranking debt at around 2.5x consolidated
EBITDA in 2025-2026, which could lead to a one-notch downgrade of
the senior unsecured rating at the holding company level
Liquidity and Debt Structure
Adequate Liquidity: At end-June 2024, PPC had EUR2.1 billion of
readily available cash and cash equivalents. It also had a combined
EUR2.6 billion of an unused revolver plus working-capital and capex
facilities. This is sufficient to cover debt maturities of EUR2.0
billion and negative FCF and M&As of around EUR2.2 billion for the
12 months to June 2025.
Sizable Opco/Secured Debt: Fitch estimates debt at the PPC holding
company level at end-2023 at around 55% of total consolidated debt
including acquisition debt, with the remainder at the operating
company level (HEDNO, PPCR, EDS, Alexandroupolis CCGT JV, FiberGrid
and various Romanian subsidiaries). PPC's debt allocation and the
presence of minority interests within the group pose structural
subordination risks in the medium term, which Fitch expects PPC
will gradually address by largely raising new debt linked to its
renewable expansion at the holding company level, such as today's
proposed debt issue.
Issuer Profile
PPC is the incumbent integrated utility in Greece and one of the
largest in Romania. Its generation portfolio consists of lignite
(to be decommissioned by 2026), gas-, oil-fired (regulated) and
hydro power plants, as well as a growing base of wind and solar
plants. PPC is also the majority owner (51%) of HEDNO.
Date of Relevant Committee
05 March 2024
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
PPC has an ESG score of '4'for on both GHG Emissions & Air Quality
and Energy Management. This is due to about a 16% share of lignite
coal in its electricity generation mix by end-2024, which is
carbon-intensive and under political pressure in the EU.
Fitch had originally expected lignite plants to be completely
decommissioned by 2025. However, this has been delayed by one year
to 2026 over gas security supply concerns. Temporarily increasing
lignite fuel usage and CO2 emissions, decreasing thereafter as the
decommissioning plan resumes, had an impact on the cost of debt
(+50 bp) as the emissions target by end-2022 included in PPC's
sustainability-linked-bonds was not met. Fitch expects
lignite-fired plants to be structurally loss-making under a
normalised price environment. This has a negative impact on PPC's
credit profile 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
----------- ------ --------
Public Power
Corporation S.A.
senior unsecured LT BB-(EXP) Expected Rating RR4
=============
I R E L A N D
=============
INVESCO EURO IX: Fitch Assigns 'B-sf' Final Rating on Cl. F-R Notes
-------------------------------------------------------------------
Fitch Ratings has assigned Invesco Euro CLO IX DAC Reset final
ratings, as detailed below.
Entity/Debt Rating Prior
----------- ------ -----
Invesco Euro
CLO IX DAC
A Loan LT PIFsf Paid In Full AAAsf
A Notes XS2496643243 LT PIFsf Paid In Full AAAsf
A-R Loan XS2901907464 LT AAAsf New Rating
A-R Note XS2898159707 LT AAAsf New Rating
B XS2496643326 LT PIFsf Paid In Full AAsf
B-1R XS2898159962 LT AAsf New Rating
B-2R XS2898160119 LT AAsf New Rating
C XS2496643755 LT PIFsf Paid In Full Asf
C-R XS2898160382 LT Asf New Rating
D XS2496644050 LT PIFsf Paid In Full BBB-sf
D-R XS2898160549 LT BBB-sf New Rating
E XS2496644217 LT PIFsf Paid In Full BB-sf
E-R XS2898160895 LT BB-sf New Rating
F XS2496644308 LT PIFsf Paid In Full B-sf
F-R XS2898161190 LT B-sf New Rating
X-R XS2898159533 LT AAAsf New Rating
Transaction Summary
Invesco Euro CLO IX DAC is a securitisation of mainly senior
secured obligations (at least 90%) with a component of senior
unsecured, mezzanine, second-lien loans and high-yield bonds. Note
proceeds were used to refinance the original rated notes and to
fund the existing portfolio with a target par of EUR400 million
which is actively managed by Invesco CLO Equity Fund IV L.P. The
collateralised loan obligation has a 4.5-year reinvestment period
and a 8.5 year weighted average life (WAL) test.
KEY RATING DRIVERS
Average Portfolio Credit Quality (Neutral): Fitch assesses the
average credit quality of the obligors at 'B'/'B-'. The
Fitch-calculated weighted average rating factor of the identified
portfolio is 25.9.
High Recovery Expectations (Positive): At least 90% of the
portfolio will comprise senior secured obligations. Fitch views the
recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets. The Fitch-calculated
weighted average recovery rate (WARR) of the identified portfolio
is 62.8%.
Diversified Portfolio (Positive): The transaction includes four
Fitch matrices, two of which are effective at closing with a
maximum 8.5-year WAL test. They all correspond to a top 10 obligor
concentration limit at 25% and fixed-rate asset limits of 7.5% and
12.5%. The transaction also includes various concentration limits,
including the maximum exposure to the three largest Fitch-defined
industries in the portfolio at 42.5%. These covenants ensure that
the asset portfolio will not be exposed to excessive
concentration.
Portfolio Management (Neutral): The transaction has a 4.5 year
reinvestment period and includes reinvestment criteria similar to
those of other European transactions. Fitch's analysis is based on
a stressed-case portfolio with the aim of testing the robustness of
the transaction structure against its covenants and portfolio
guidelines.
Cash-flow Modelling (Positive): The WAL used for the transaction's
stressed-case portfolio analysis is 12 months shorter than the WAL
covenant. This reflects the strict reinvestment criteria in the
post-reinvestment period, which includes the satisfaction of
Fitch's 'CCC' limitation test, the coverage tests, as well as a WAL
covenant that linearly steps down over time. In Fitch's opinion,
these conditions 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
An increase in the default rate (RDR) at all rating levels in the
current portfolio by 25% of the mean RDR and a decrease in the
recovery rate (RRR) by 25% at all rating levels would have no
impact on the class X and A-R notes or the A-R Loan. The scenario
would lead to a downgrade of one notch for the class C-R, the D-R
and E-R notes, a downgrade of two notches for the class B-1-R and
B-2-R notes, and to below 'B-sf' for the class F-R notes.
Based on the identified portfolio, downgrades may occur if the loss
expectation is larger than initially assumed due to unexpectedly
high levels of default and portfolio deterioration. Owing to the
better metrics and shorter life of the current portfolio than the
Fitch-stressed portfolio, the class C-R notes display a rating
cushion of one notch, the class B-1-R, B-2-R, D-R, E-R and F-R
notes display a rating cushion of two notches.
Should the cushion between the current portfolio and the
Fitch-stressed portfolio be eroded either due to manager trading or
negative portfolio credit migration, a 25% increase in the mean RDR
and a 25% decrease in the RRR across all ratings of the stressed
portfolio would lead to downgrades of four notches for the class
A-R to C-R notes, of three notches for the class D-R, and to below
'B-sf' for the class E-R and F-R notes. There would be no impact on
the class X-R notes.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
A reduction in the RDR at all rating levels in the stressed
portfolio by 25% of the mean RDR and an increase in the RRR by 25%
at all rating levels would result in upgrades of up to three
notches for all notes, except for the 'AAAsf' rated notes, which
are at the highest level on Fitch's scale and cannot be upgraded.
During the reinvestment period, based on Fitch's stress portfolio,
upgrades may occur on better-than-expected portfolio credit quality
and a shorter remaining WAL test, meaning the notes are able to
withstand larger than expected losses for the transaction's
remaining life. After the end of the reinvestment period, upgrades
may occur if there is stable portfolio credit quality and
deleveraging, leading to higher credit enhancement and excess
spread being available to cover losses on the remaining portfolio.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.
The majority of the underlying assets or risk presenting entities
have ratings or credit opinions from Fitch and/or other Nationally
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.
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 Invesco Euro CLO IX
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.
=========
I T A L Y
=========
WEBUILD SPA: Fitch Rates EUR600MM Sr. Unsecured Notes 'BB'
----------------------------------------------------------
Fitch Ratings has assigned Webuild S.p.A.'s planned maximum EUR600
million notes a senior unsecured rating of 'BB'. The rating is
aligned with Webuild's 'BB' Long-Term Issuer Default Rating (IDR)
and existing senior unsecured notes' rating. The Outlook on the IDR
is Positive.
Key Rating Drivers
Proposed Structure: The proposed notes will constitute direct,
general and unconditional obligations of Webuild, and rank at least
pari passu with all its present or future senior unsecured
obligations. The net proceeds from the new notes will be used to
refinance existing debt, and for general corporate purposes.
Sound Net Leverage: Fitch expects EBITDA net leverage over
2024-2027 to remain adequate at 0.7x-1.0x. Fitch assumes that the
group's high level of Fitch-defined readily available cash of about
EUR2.9 billion (2023: EUR2.8 billion) at end-June 2024 is
temporary, and expect that excess liquidity will be mainly deployed
on increased capex and working capital requirements in 2024.
Webuild is aiming to maintain its company-defined net cash position
in 2024.
Declining Gross Leverage: Fitch expects EBITDA gross leverage to
decrease to around 2.6x in 2024 and 2.3x in 2025 (2023: 3.4x). This
will mainly be driven by expected strong EBITDA growth, supported
by robust activity and the group's gross debt-reduction target of
EUR200 million-EUR250 million by 2025.
Strong Revenue Visibility: Webuild's improved revenue visibility is
supported by its robust current order book and healthy pipeline of
opportunities. The group's construction order book reached about
EUR55.8 billion at end-June 2024, with inflow of new orders from
various geographies. Webuild received EUR7.5 billion new order
inflows from January to July 2024, with over EUR18 billion bids
awaiting an outcome.
The company is well-positioned to continue benefitting from
increasing government investment in infrastructure across core
markets including Central and Northern Europe, Australia, the US
and the Middle East. Fitch expects that the company will continue
to deliver a large share of projects across the geographies, with a
book-to-bill of 1.0x-1.1x over the four-year rating horizon.
Solid Business Profile: The business profile is mainly underpinned
by leading market positions in niche markets, a solid order backlog
and sound geographical diversification. Webuild is the global
leader in the water infrastructure sub-segment, and has leading
positions in civil buildings and transportation. These strengths
are offset by significant project concentration and structural
working-capital requirements.
Derivation Summary
Fitch views Webuild's business profile as broadly in line with that
of Kier Group Plc (BB+/Stable). Webuild's larger scale of
operations and better geographic diversification is offset by
Kier's less volatile working capital requirement. Webuild's
business profile is weaker than Ferrovial SE's (BBB/Stable) due to
lower exposure to mature concessions and a more volatile working
capital requirement.
Webuild has a limited presence in concessions. Its strategy focuses
on large, complex, value-added infrastructure projects with high
engineering content. The group has an established strong domestic
market position across its different business segments, coupled
with healthy revenue visibility and good contract risk management
in line with other investment-grade engineering & construction
companies.
Webuild's financial profile is slightly weaker than that of Kier
and Ferrovial - mainly due to more volatile free cash flow (FCF)
through the cycle, and slightly higher net leverage.
Key Assumptions
- Revenue of about EUR10.5 billion in 2024, and then growth of
5%-8% in 2025-2027.
- EBITDA margins to improve to 8.1% in 2024 and then stay at 8.3%
between 2025-2027.
- Working capital outflow of around EUR0.9 billion in 2024 and
inflows from 2025-2027.
- Capex at 6.8%-7.5% of revenue during 2024-2025 and stabilising at
4%-4.5% in 2026-2027.
- Annual dividend of around EUR74 million-EUR80 million during
2024-2027.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- EBITDA leverage below 2.5x on a sustained basis;
- EBITDA net leverage below 1.5x on a sustained basis;
- Ability to generate positive three-year average FCF;
- Reduced concentration of 10 largest contracts to below 40% of the
order book.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- EBITDA leverage above 3.5x on a sustained basis;
- EBITDA net leverage above 2.5x on a sustained basis;
- Inability to generate at least neutral FCF on a sustained basis;
- Weak performance on major contracts, with a material impact on
profitability;
- Increasing share of high-risk countries.
Liquidity and Debt Structure
Sufficient Liquidity: At end-June 2024, Webuild's liquidity was
supported by about EUR2.9 billion readily available cash (excluding
around EUR0.3 billion considered not readily available by Fitch,
which is mainly restricted cash for working-capital purposes), and
access to EUR970 million undrawn revolving credit facilities. This
is sufficient to cover expected negative FCF in 2024 and upcoming
maturities in 2H24 and 2025.
Webuild issued EUR500 million new senior unsecured notes in June
2024, and used them to refinance its existing debt. In October
2024, Webuild is planning to issue up to EUR600 million of
additional senior unsecured notes to refinance its 2025 and 2026
debt maturities. This would provide additional liquidity headroom
and improve the debt maturity profile. Fitch views the company's
good relationships with local banks and access to capital markets
as positive for its credit profile.
Issuer Profile
Webuild is an Italian engineering and construction group with
operations spread across various geographies globally. It is mainly
focused on complex infrastructure civil projects with strong
leadership in the water segment.
Date of Relevant Committee
June 3, 2024
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
----------- ------
Webuild S.p.A.
senior unsecured LT BB New Rating
===================
L U X E M B O U R G
===================
ACCORINVEST GROUP: Fitch Assigns 'BB(EXP)' Rating on Sr. Sec Notes
------------------------------------------------------------------
Fitch Ratings has assigned AccorInvest Group S.A.'s (B/ Stable)
proposed notes an expected senior secured rating of 'BB(EXP)' with
a Recovery Rating of 'RR1'.
The company plans to use proceeds from the notes to partially and
equally prepay its term loans A and B, making the transaction
leverage-neutral. The assignment of final ratings is subject to
final documentation conforming to information already received.
AccorInvest's 'B' IDR reflects reduced refinancing risks following
recent extension of the term loans and revolving credit facility
(RCF) and successful placement of the bond, which addressed the
bridge loan maturity in March 2025.
The rating is also supported by projected strengthening of credit
metrics over the next two years, which will increase rating
headroom and reduce refinancing risks related to the next large
debt maturity in 2027. The rating considers the strength of
AccorInvest's business profile in comparison with other 'B'
category peers and neutral to positive free cash flow (FCF)
generation.
The Stable Outlook reflects its expectation that further asset
divestments will improve AccorInvest's liquidity, and in case of
slower progress with disposals, the company will be eligible to
receive additional EUR100 million from shareholders.
Key Rating Drivers
2025 Maturities Addressed: AccorInvest has made significant
progress addressing its 2025 debt maturities. It has executed
amendment and extension of term loans A and B and RCF, and repaid
around EUR700 million under the bridge facility since the beginning
of 2024.
It used proceeds from the debut notes issued in September to repay
the remaining EUR457 million outstanding under the bridge facility
and partially and equally prepay term loans A and B. This left
EUR191 million amortisation payment under government-backed
facilities (PGE) as the only 2025 debt maturity. AccorInvest will
also have a more favourable debt maturity profile, with some
concentration in 2027, but Fitch acknowledges the company's ability
to extend the RCF and term loan B to December 2028.
Asset Disposals Part of Strategy: AccorInvest has been
rationalising its hotel portfolio since 2021 through non-core asset
divestments, which included assets outside its core region or not
meeting profitability and return criteria. Progress under the
programme has accelerated in 2024, with EUR386 million of proceeds
received in 7M24 after slowing in 2023 due to the unfavourable
market environment. Nevertheless, Fitch still sees execution risks
for the remaining divestments planned for 2024-2025, for which the
company aims to receive more than EUR800 million. Successful
realisation of the disposal plan would reduce strategy execution
risks and leverage.
Deleveraging Executed: AccorInvest has managed to reduce debt by
around EUR900 million since end-2023, using available cash and
proceeds from asset disposals and preference shares issuance (as a
form of shareholder support, which Fitch treated as non-debt).
Fitch expects AccorInvest's EBITDAR net leverage to fall to 6.1x in
2024 (2023: 6.7x), which is aligned with its 'B' rating. Fitch
believes this deleveraging will be sustained, even if EBITDA
reduces due to asset divestments, as Fitch expects proceeds to be
available for debt repayment and therefore account for them in its
net leverage calculation.
Trading Normalisation: AccorInvest benefited from the post-pandemic
rebound in travel and leisure demand and significant pricing power,
which drove revenue and EBITDA growth in 2022-2023. Fitch projects
revenue per available room growth to moderate to low single digits
as demand stabilises in 2024. Fitch also assumes that further
EBITDA margin improvements, excluding the impact of asset
divestments and swaps, will be more limited and related mostly to
cost savings.
Structural Profitability Improvements: Fitch expects the EBITDA
margin to increase by around 200bp over 2024-2027, supported by the
disposal plan as it focuses on assets with lower profitability. In
addition, Fitch assumes that AccorInvest's asset swap transaction
with Covivio hotels will allow it to reduce rents and improve
EBITDA margin.
Neutral to Positive FCF: Neutral to positive FCF is important for
AccorInvest's liquidity and 'B' rating. Fitch believes this is
achievable if asset disposals do not significantly erode EBITDA
(2023: EUR628 million). Interest payments and capex are
substantial, totalling around EUR500 million-EUR550 million a year
but Fitch acknowledges AccorInvest's flexibility to reduce capex
and save at least EUR100 million a year if necessary.
Strong Business Profile: AccorInvest's business profile is strong
for the rating. The company owns and operates one of the largest
hotel portfolios in Europe with around 110,000 rooms at end-June
2024 and is well-diversified within the region with no significant
reliance on one single country.
It also has some price segment diversification, as it is present in
the economy and midscale segments. AccorInvest owns 47% of its
hotel portfolio (by number of hotels), which gives it additional
financial flexibility compared with peers that lease their
properties. However, its assessment considers the lack of own
brands, as the company operates under the brands of Accor SA
(BBB-/Positive), which is also responsible for providing hotel
management expertise and the reservation system.
Derivation Summary
AccorInvest differs from other Fitch-rated hotel operators as it
does not own brands. It compares best with other asset-heavy hotel
operators, with Whitbread PLC (BBB/Stable) its closest peer. Both
companies operate a similar number of rooms and have comparable
business scale by EBITDAR. AccorInvest is more diversified than
Whitbread due to its footprint across 24 countries, while Whitbread
operates predominantly in the UK and is expanding into Germany.
AccorInvest also has better price segment diversification across
economy and midscale while Whitbread focuses on the economy
segment. Nevertheless, the significant rating differential comes
from AccorInvest's materially weaker financial profile and more
volatile operating performance. Fitch also considers there are
greater execution risks in AccorInvest's strategy, which involves
asset disposals.
AccorInvest's business profile is stronger than those of other
asset-heavy hotel operators (those who own and lease hotels), such
as Sani/Ikos Group Newco S.C.A. (B-/ Stable), FIVE Holdings (BVI)
Limited (B+/ Stable) and One Hotels GmbH (B+/ Stable). FIVE and One
Hotels are rated higher than AccorInvest due to expected stronger
credit metrics and liquidity. AccorInvest is rated higher than Sani
Ikos Group as Fitch projects it to have lower leverage and better
FCF generation.
Key Assumptions
Fitch's Key Assumptions Within Its Rating Case for the Issuer
- Revenue before disposals increasing by 2%-4% a year;
- Asset disposals over 2024-2025, leading to revenue declining by
2% in 2024 and 16% in 2025, and generating around EUR750 million of
cash proceeds
- EBITDA margin increasing by around 200bp over 2024-2027 due to
disposal of less profitable assets and the cost-saving programme
- Capex at EUR220 million-EUR250 million a year over 2024-2027
- EUR200 million preference shares issuance in July 2024;
additional EUR100 million assumed to be issued under Fitch's
disposal proceeds assumptions; all treated as non-debt
- No dividends on ordinary or preference shares
Recovery Analysis
Fitch estimates that AccorInvest would be liquidated in a
bankruptcy rather than restructured on a going-concern basis as
Fitch considers the large tangible asset base, consisting of its
hotels. The liquidation estimate reflects Fitch's view that the
company's hotel portfolio (valued by external third parties as of
June 2024) could be realised in a liquidation scenario and
distributed to relevant creditors upon default. Fitch has applied a
50% advance rate to the EUR8.2 billion AccorInvest gross asset
value after deducting EUR337 million, representing assets secured
by a mortgage security or under finance lease contracts.
Fitch deducts 10% for administrative claims from the resulting
liquidation value. In its analysis, Fitch assumed PGE ranks ahead
of other senior secured debt as the latter is structurally
subordinated. Term loans A and B, the RCF, EUR750 million bond and
proposed new bond rank pari passu among themselves. Proceeds from
new bond will be used to partially and equally prepay term loans A
and B, leaving the total debt quantum unchanged. Its waterfall
analysis generated a waterfall generated recovery computation
(WGRC) for the senior secured debt in the 'RR1' band, indicating a
'BB(EXP)' rating for new bond, three notches above the company's
IDR of 'B'. The WGRC output percentage on current metrics and
assumptions is 95%.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Successful realisation of the disposal plan, building up
liquidity and leading to profitability improvements
- EBITDAR net leverage below 6.0x on a sustained basis
- EBITDAR fixed charge cover above 1.7x on a sustained basis
- Positive FCF generation
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDAR net leverage above 6.5x on a sustained basis
- EBITDAR fixed charge cover below 1.5x on a sustained basis
- Negative FCF, reducing available liquidity
Liquidity and Debt Structure
Limited but Improving Liquidity: Fitch assesses AccorInvest's
liquidity as limited as Fitch estimates that its cash balance has
reduced due to debt prepayments and transaction costs, while its
EUR250 million RCF remains fully drawn. Liquidity improved after
the bond placement as its proceeds would allow the company to repay
the bridge facility and reduce short-term debt to EUR191 million,
related to the amortisation payment under PGE.
Successful execution of asset disposals may replenish AccorInvest's
cash position, improving liquidity assessment to satisfactory.
Fitch also assumes that the company will receive another EUR100
million from shareholders before March 2025 should its asset
disposal proceeds be lower than expected.
Issuer Profile
AccorInvest is a France-based real estate hotel owner and
operator.
Date of Relevant Committee
04 September 2024
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
----------- ------ --------
AccorInvest Group S.A.
senior secured LT BB(EXP) Expected Rating RR1
BELRON GROUP: Fitch Affirms 'BB' IDR, Outlook Stable
----------------------------------------------------
Fitch Ratings has assigned the senior secured US dollar term loan B
(TLB) issued by Belron Finance 2019 LLC, the senior secured euro
TLB and euro and US dollar senior secured notes issued by Belron UK
Finance Plc final 'BB+' ratings with a Recovery Rating (RR) of
'RR2'. Fitch has also affirmed the Issuer Default Rating (IDR) of
Belron Group SA at 'BB' with a Stable Outlook. The final ratings
follow completion of the transaction and receipt of final documents
confirming the information already received.
The IDR reflects the weakened financial flexibility
post-transaction, 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.
Key Rating Drivers
Large Dividend Recap Completed: Belron has successfully raised
EUR8.1 billion in new debt. The proceeds, combined with available
liquidity, were used to refinance its existing EUR4.3 billion TLB B
facilities and to fund a EUR4.3 billion extraordinary dividend to
its shareholders. This effectively doubles the company's existing
debt, significantly affecting its leverage metrics. Although this
will increase interest expenses, Belron's robust free cash flow
generation is expected to comfortably absorb the additional costs.
Leverage Outlier: Fitch identifies Belron's new capital structure
as the primary weakness for its rating. The company's 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 rating sensitivity for a 'BB' IDR
of 5.0x by the end of 2024, with an anticipated return to below
this threshold within two years. Despite strong pre-dividend FCF
margins, continued generous dividend distributions post-transaction
are expected to limit the pace of deleveraging, resulting in a
post-dividend FCF margin above 1%.
Capital Allocation Policy Key: The company's strong cash flows and
high dividend distributions are central to its deleveraging
capacity. Belron has a solid record of managing leverage and Fitch
expects this prudent management to continue, supporting the ratings
at their post-transaction levels. Any aggressive shift in capital
allocation policy that increases leverage metrics would exert
pressure on the ratings.
Instrument Rating Uplift: The alignment of instrument ratings
reflects their equal ranking with the same operating company
guarantees and security. The new instruments are
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 a leading car glass
repair company and 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 in its strong profitability.
Belron's scale in its chosen markets gives it a significant
competitive advantage over its smaller, regional competitors,
supporting its view of 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 median of 18% in its criteria for services. Belron's
service business has low capital intensity at around 2% of revenue,
and the majority of its costs are variable. This was tested during
the pandemic when road traffic significantly reduced, but the
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 be key to increasing profitability.
Customer Diversification: Most of Belron's revenues (77% in 2023)
stem from its contracts with insurers. There is no significant
concentration with a single insurer or end-customer. Fitch sees
similar diversification on the side of Belron's suppliers. Belron
has contracted suppliers for almost all of vehicle model ranges, in
all geographies it operates in. This enables continued service
without disruptions and limits its counterparty risks.
Steady Customer Relationships: Fitch considers Belron's contracts
with insurers to be short term in nature, and there is a constant
renegotiating 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. This 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.
Limited Range of Services: As windshields get more 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 accretive for Belron's margins. Nevertheless, Fitch
deems these services to be broadly in line with the "glass
replacement and repair" 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 (BBB/Stable) and The Bidvest
Group Limited (BB/Stable). Belron's size and scale ensure strong
market shares, resulting in profitability margins similar to Sodexo
SA (BBB+/Stable).
Belron's EBITDA margins, about 22%, align with the 'a' rating
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 4.7x by the end of 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
- Fitch assumes mid-single digit revenue growth during fiscal years
2024-2028 from an increased number of windshield replacements and
recalibrations, along with price increases;
- Fitch assumes EBITDA remaining around 22% during fiscal years
2024-2028 supported by successful cost control and continued
recalibration penetration;
- Fitch assumes capex around 2% of revenue;
- Fitch assumes common dividend of EUR300 annually;
- Fitch assumes EUR50 million per year for small bolt-on
acquisitions.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- A sustainable free cash flow (FCF) margin above 2%, combined with
an EBITDA net leverage ratio 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 sustained above 5x;
- FCF below 1% on a sustained basis.
Liquidity and Debt Structure
Good Liquidity Post-Refinancing: Post-refinancing the company has
access to an undrawn 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.
No Maturity Until 2029: Following the refinancing, Belron's new
senior secured debt facilities have maturities of five and seven
years and therefore the company has no material scheduled debt
repayments until 2029.
Issuer Profile
Belron is the global leader in vehicle glass repair and replace as
well as recalibration. Belron operates in 37 countries across six
continents and employs 29,000 people with annual revenue reaching
EUR6 billion in 2023.
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 UK
Finance Plc
senior secured LT BB+ New Rating RR2 BB+(EXP)
Belron Group S.A. LT IDR BB Affirmed BB
Belron Finance
2019 LLC
senior secured LT BB+ New Rating RR2 BB+(EXP)
PICARD GROUPE: Fitch Puts BB- Rating on EUR650MM Notes on Watch Neg
-------------------------------------------------------------------
Fitch Ratings has placed the 'BB-' ratings of Picard Groupe SAS's
senior secured EUR650 million fixed-rate notes and of Lion/Polaris
Lux 4 S.A.'s senior secured EUR575million floating rate notes on
Rating Watch Negative (RWN). Fitch has also affirmed concurrently
Picard's Long-Term Issuer Default Rating (IDR) at 'B' with a Stable
Rating Outlook.
The RWN on these pari passu instruments reflects its expectation
that their rating will be downgraded to B+ with a Recovery Rating
of 'RR3' from the current 'BB-'/'RR2', following the completion of
a planned EUR200 million tap to Picard's EUR575 million notes,
leading to all of Picard's senior secured notes ratings then
aligned at 'B+' with a 'RR3'. The tap issue is part of the funding
raised to finance a change of ownership at Picard.
The affirmation of the IDR with a Stable Outlook despite the
incremental secured notes reflects its expectation of rapid
deleveraging from high levels proforma for the transaction. In
particular, Fitch expects the EUR120 million planned vendor loan,
which Fitch would treat as debt given its 2027 maturity, to be
repaid with proceeds from equity raise before mid-2025; however,
failure to do so could lead to negative rating action on the IDR
and the ratings of the notes.
Key Rating Drivers
Tap Weighs on Notes Rating: The proposed EUR200 million tap on
existing notes issued by Picard Groupe S.A.S. will result in a
one-notch downgrade given the lower percentage of recovery under
its going concern recovery analysis. The tap proceeds will be
upstreamed to the current shareholders to finance the acquisition
by Invest Group Zouari (IGZ, currently owning 45.7% of Picard) of
Lion Capital's shares, together with new equity and a shareholder
loan from Intermediate Capital Group (ICG), as well as a EUR120
million vendor loan from Lion Capital, which Fitch would treat as
debt given its December 2027 maturity is before the 2029 notes
maturity.
Vendor Loan Refinancing: A key assumption of its affirmation is the
expectation that the vendor loan will, shortly after its
utilization, be repaid with cash proceeds from a minority stake
sale at IGZ level before July 2025. Assuming such refinancing takes
place before the end of March 2025, Fitch expects leverage to be at
7.4x for FY25, and trending below 7.0x in FY26, a trajectory that
remains in line with Picard 'B' IDR, albeit exhausting its rating
headroom. Failure to refinance with equity proceeds, with leverage
remaining above 7.0x beyond FY26, could lead to adverse
consequences on Picard's credit quality, triggering potential
negative rating action.
Financial Policy Reset: Post-transaction, if completed, Picard will
be owned 50.4% by the Zouari family and 49.6% by ICG through IGZ,
marking the exit of Lion Capital as a main shareholder with a
track-record of frequent dividend recapitalization of the business.
Fitch views the funding of Lion's buyout by IGZ as aggressive as
well, through additional debt at Picard together with shareholder
and vendor loans sitting outside of the restricted group. While
Fitch views the change of ownership as potentially bearing a reset
in financial policy, the new owners will need to provide evidence
of creditors-friendly behaviour before Fitch incorporates any
positive elements in its credit view, given the initial
re-leveraging transaction.
Business Strategy Unchanged: Fitch does not expect any change in
business strategy for Picard as a result of the change of
shareholding structure with the majority ownership moving to the
Zouari family following the transaction. The Zouari family operates
a number of food and non-food retail businesses in France,
including stores under the Franpix and Monoprix banners, but Fitch
expects these to continue to operate separately from Picard and
have not assumed any synergies across other business of the Zouari
group.
Easing Margin Pressure: Fitch believes the EBITDA margin bottomed
out in FY24 at 12% and will recover in FY25 towards 13% as pressure
from high energy costs eases and most of its FY25 electricity costs
are already hedged. Selective and cautious price increases aimed at
protecting its market share and profitability demonstrate Picard's
ability to maintain its gross margin at around 44%, despite a
difficult consumer environment over FY23-FY24 and Fitch expects it
to remain stable to FY28. Picard's profit margins are high for the
sector, as they are underpinned by its business model, with revenue
largely generated by own-brand products, a premium offering, and
structurally profitable asset-light expansion.
Steady Sales Growth: Picard has a strong record of steady sales
growth in France, driven by its diversified and frequently renewed
offering in frozen food, which Fitch believes caters to different
consumer needs and occasions, while retaining repeat customers.
This translated into average annual like-for-like (lfl) growth of
1.9% over FY17-FY24, which Fitch expects to continue to FY28. Fitch
also believes Picard is well-positioned to continue exploiting
opportunities to roll out new stores where it does not yet have a
physical presence (both directly-operated and franchised), driving
incremental sales.
FCF Supports Cash Accumulation: Fitch expects Picard to generate
positive annual FCF of EUR60 million on average during FY25-FY28
(around 3% of sales), supported by limited working capital swings
and capex needs. The strong cash flow generation differentiates
Picard from many of its peers in food retail.
Robust Business Model: Picard's leadership in a niche market and
highly profitable own brand continue to underpin its business
model. The group was resilient during the pandemic and in the
recent inflationary environment as its price increases were only
partially offset by a decrease in volumes.
Derivation Summary
Picard's overall profile remains weaker than that of larger food
retail peers, such as Bellis Finco plc (ASDA; B+/Positive) or
Market Holdco 3 limited (Morrisons; B/Positive), due to its smaller
scale and weaker diversification in non-food products and services.
Picard is also smaller in sales than UK frozen food specialist WD
FF Limited (Iceland; B/Stable), but its materially stronger
profitability leads to an equivalent level of EBITDAR.
Following this transaction, Fitch would expect Picard's gross
leverage to remain higher than its peers with anticipated Gross
EBITDAR leverage of up to 7.4x in FY25 (proforma for vendor loan
refinancing with equity), versus 6.4x in March 2025 for Iceland,
under 6x in FY25 for Morrisons and at around 5x by end-2024 for
ASDA.
However, Picard enjoys strong brand awareness and customer loyalty,
which is key for its positioning as a market leader in the French
frozen food retail sector. Picard also has high profitability, due
to its unique business model that is mostly based on own-brand
products and premium positioning. This makes it comparable with
food manufacturers, rather than with its immediate food retailing
peers. This differentiating factor results in superior cash flow
generation that supports Picard's financial flexibility and
satisfactory liquidity.
Key Assumptions
- Revenue growth of 3.0% in FY25, driven equally by lfl growth and
store expansion and franchisee growth;
- Revenue growth in FY26-FY28 of 3.6% on average, with a slightly
higher contribution from expected store and franchise expansions;
- EBITDA margin increasing to 13.0% in FY25 (FY24: 12.0%) as energy
cost normalises, trending back towards pre-pandemic levels by FY27
at 13.4%;
- Capex averaging 3.1% of revenue over FY25-FY28;
- Neutral working capital movements in FY25-FY28;
- Issuance of incremental EUR200 million senior secured notes
maturing 2029;
- EUR120 million Vendor Loan maturing in 2027 treated as debt, and
refinanced before July 2025 with minority equity.
Recovery Analysis
Fitch assumes that Picard would be considered a going-concern (GC)
in bankruptcy and that it would be reorganised rather than
liquidated. Fitch has assumed a 10% administrative claim in the
recovery analysis.
In its bespoke GC recovery analysis Fitch estimates
post-restructuring EBITDA available to creditors of about EUR180
million, unchanged from its previous analysis.
Fitch also assumes a fully drawn EUR60 million RCF.
Fitch has maintained a distressed enterprise value/EBITDA multiple
at 6.0x, which reflects Picard's structurally cash-generative
business operations, despite its small scale.
Its waterfall analysis generates a ranked recovery for Picard's
existing EUR1.2 billion senior secured notes in the 'RR2' category,
resulting in a 'BB-' rating with a waterfall generated recovery
computation (WGRC) of 74%. The Recovery Rating of its EUR310
million senior unsecured notes remains 'RR6', with a rating of
'CCC+' and a WGRC of 0%.
Once the issuance of the planned EUR200 million tap senior note is
completed and the RCF upsized to EUR75 million from EUR60 million,
Fitch expects the recovery of the EUR1.4 billion senior notes,
which will increase to EUR1.4 billion, to be in the 'RR3' category,
indicating a 'B+' rating at 'B' IDR, therefore resulting in a one
notch downgrade of the existing 'BB-'/'RR2' rating.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Continuation of solid operating performance, for example,
reflected in lfl revenue growth and growing EBITDA with strong FCF
margins in mid-single digits;
- EBITDAR leverage below 5.5x on a sustained basis, driven mostly
by debt prepayments, reflecting a commitment to more conservative
capital allocation;
- Operating EBITDAR fixed-charge coverage above 2x on a sustained
basis.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Failure to refinance the EUR120 million vendor loan with minority
equity sales proceeds before mid-2025;
- Deteriorating competitive position or sustained erosion in lfl
sales growth, EBITDA and FCF margin, due to, for instance, the
inability to manage cost inflation, leading to the inability to
deleverage;
- Subdued operating performance, maintenance of the EUR120 million
vendor loan in the capital structure, or evidence of a more
aggressive financial policy including material dividend
distributions leading to EBITDAR leverage remaining above 7.0x
beyond FY26;
- Diminished financial flexibility, due to lost financial
discipline, reduced liquidity headroom or operating EBITDAR
fixed-charge coverage permanently below 1.5x.
Liquidity and Debt Structure
Satisfactory Liquidity: Picard's liquidity is adequate, with an
estimated EUR91.6 million cash proforma of the transaction. The RCF
provides an extra EUR75 million of liquidity buffer (proforma of
the EUR15 million increase), improving its liquidity profile.
Low capex intensity and manageable working-capital outflows provide
for healthy positive FCF generation that Fitch estimates will
further improve Picard's liquidity. Following its refinancing Fitch
expects available cash to return to pre-refinancing levels by FY27.
However, its liquidity position is subject to its 2027 unsecured
note refinancing, as well as new expected transaction closing.
Issuer Profile
Picard is a French food retailer, with a leading market share
(around 20%) in the highly specialised and niche frozen-food
market.
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
----------- ------ -------- -----
Picard Bondco S.A. LT IDR B Affirmed B
senior unsecured LT CCC+ Affirmed RR6 CCC+
Picard Groupe SAS
senior secured LT BB- Rating Watch On RR2 BB-
Lion/Polaris
Lux 4 S.A.
senior secured LT BB- Rating Watch On RR2 BB-
QSRP INVEST: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed QSRP Invest S.a r.l.'s Long-Term Issuer
Default Rating (IDR) at 'B' with a Stable Outlook. Fitch has
downgraded QSRP Finco BV's senior secured debt rating to 'B' from
'B+' and Recovery Rating to 'RR4' from 'RR3'.
The rating actions follow QSRP's recent acquisitions, which it
plans to fund with a EUR90 million add-on to its EUR525 million
senior secured term loan B (TLB).
The affirmation of the IDR reflects its expectation that leverage
is likely to reduce below its negative rating sensitivity by
end-2025, despite debt-funded acquisitions slowing the deleveraging
pace.
Nevertheless, Fitch notes that rating headroom is exhausted and
Fitch sees material execution risks related to QSRP's deleveraging
as it depends on the company's ability to successfully operate
newly-acquired chains, develop Dunkin' presence in France, expand
the restaurant network in existing markets and internationally and
improve profitability of its currently under-performing Nordsee
brand. Fitch may consider negative rating action if these risks
materialise.
The 'B' rating reflects QSRP's high leverage, small business size
and moderate diversification by brand and geography. Rating
strengths are QSRP's predominantly franchise business model and its
focus on the quick-service restaurant segment, which Fitch believes
ensures greater business stability than for peers in the restaurant
sector. Fitch also assumes QSRP will be able to generate positive
free cash flow (FCF) from 2025 once the Nordsee restructuring is
completed.
Key Rating Drivers
Business Expansion: QSRP recently acquired 70% in French quick
service chain G La Dalle, which offers halal value-for-money
burgers, and 51% stake in Chopstix Group, a pan-Asian quick-service
restaurant chain in the UK and Ireland, for a total EUR94 million
(including deferred consideration). QSRP also signed a master
franchisee agreement for Dunkin' brand in France and entered into
partnership with Global Food Solutions, trader and distributor of
meat products. These transactions are aimed at diversifying QSRP's
offering, brands and geographic footprint or creating supply chain
synergies.
Turnaround of Nordsee: QSRP is turning around its Nordsee seafood
quick-service restaurants. The majority of the business is
represented by the company-operated restaurants in Germany, which
have been underperforming other QSRP brands. The company has
started restructuring the business by closing unprofitable stores
and cutting costs. Fitch projects around half of EBITDA growth in
2024 to come from improved profitability of the Nordsee restaurants
but assume the business will remain less profitable than other QSRP
brands.
Meaningful Execution Risks: Fitch sees meaningful execution risks
related to the turnaround of Nordsee performance, broadened by the
integration and operation of two newly-acquired brands, one of
which is in new markets for QSRP (UK and Ireland), and development
of the Dunkin' franchise in France. The latter is in a new coffee
and bakery segment for QSRP and needs to be grown from scratch.
In addition, Fitch sees execution risks from the expansion of the
O'Tacos restaurant network in new markets outside of QSRP's current
presence, which account for more than half of O'Tacos' new openings
pipeline for 2024-2027. Unsuccessful international expansion,
weaker-than-expected performance of newly-acquired chains, greater
losses at Dunkin' or smaller profitability improvements at Nordsee
may slow deleveraging and be negative for the rating.
Fully Exhausted Leveraged Headroom: QSRP is highly leveraged with
no scope under its current rating for further near-term debt-funded
acquisitions. Fitch views current EBITDAR leverage consistent with
a lower rating in the restaurant sector. However, the 'B' rating is
premised on expected deleveraging over 2025-2026, with EBITDAR
leverage falling to around 6x in 2025 and well below 6x in 2026,
ensuring improved rating headroom.
Although recent trading was broadly in line with its expectations,
Fitch sees material execution risks to EBITDA growth, which is the
main driver of deleveraging. Fitch may consider negative rating
action if EBITDA grows more slowly than projected or if QSRP
performs new debt-funded M&A, further delaying its deleveraging.
New Openings Drive Revenue Growth: Its rating case assumes revenue
growth to be mostly driven by new restaurant openings, primarily
under the O'Tacos, Burger King, Chopstix and G La Dalle brands.
Fitch forecasts the same store sales to grow at low single digits,
with limited downside risks as the quick-service segment tends to
outperform the overall restaurant market.
EBITDA Margin Improvement: Apart from the restructuring of the
Nordsee business, Fitch does not assume any meaningful
profitability improvements at other brands. Nevertheless, EBITDA
margin growth in its rating case is supported by QSRP's growing
franchise business, which is structurally more profitable, and a
declining share of net general and administrative expenses as its
restaurant network expands. Fitch expects growing EBITDA to support
QSRP's increasing FCF generation over 2025-2027, which is an
important attribute for its 'B' rating.
Moderate Diversity, Small Scale: QSRP is a multi-brand restaurant
operator, managing a moderately diversified portfolio of more than
1,300 franchised and company-operated restaurants (excluding
virtual kitchens) under six brands: O'Tacos (28% of units), Burger
King (26%), Nordsee (23%), Quick (6%), G La Dalle (6%) and Chopstix
(11%). Its restaurant network spans several western European
countries, with the largest presence in Belgium, Italy, France,
Germany and the UK. Nevertheless, Fitch views scale as limited with
estimated EBITDAR at EUR154 million in 2023, proforma for recent
acquisitions. This is consistent with the 'B' category in the
sector.
Resilient Quick-Service Segment: QSRP operates under a quick-serve
restaurant model, which has proven resilient through economic
cycles in comparison with full-service restaurants, which are
reliant on more discretionary spending. A reputation for value and
consumers trading down from more expensive options limit downside
risks during economic slowdowns, while increased spending power
during strong economic activity will also lift trade in
quick-service restaurants.
Franchise Model Drives Stability: Around 70% of QSRP's restaurants
operate under its franchising model, where the company receives
franchise fees and is not exposed to the restaurant cost base. This
results in higher and more resilient profitability and favourably
distinguishes QSRP from peers, such as Sizzling Platter, LLC and
Wheel Bidco Limited, which predominantly operate their own
restaurants.
Derivation Summary
QSRP is rated one notch above Sizzling Platter, LLC (B-/Positive),
Wheel Bidco Limited (Pizza Express, B-/Negative). QSRP's higher
rating is supported by its larger scale, diversification of brands,
and stronger EBITDA margin. As QSRP operates in multiple markets in
Europe and is expanding internationally, it is more geographically
diversified than Pizza Express and Sizzling Platter, which mainly
focus on one or two markets. QSRP is also less leveraged than Pizza
Express.
Key Assumptions
Fitch's Key Assumptions Within Its Rating Case for the Issuer:
- Same-store sales growth at low single digits a year over
2024-2027
- New store openings contributing 9-10% to system-wide sales growth
each year
- EBITDA margin improving to above 18% in 2027 (2023: 15.5%)
- Nordsee restructuring costs of EUR4 million in 2024
- Capex of EUR50 million-EUR60 million a year to 2027
- Convertible notes issued by QSRP Platform Holding SCA and on-lent
to the restricted group as intercompany loan treated as equity
- No exercise of options to buy out minority stakes in Chopstix, G
La Dalle or Global Food Solutions to 2027
- Preference shares at G La Dalle treated as debt
- No dividends
- Net M&A spending of EUR82 million in 2024
- No M&A over 2025-2027 (except for GBP5 million deferred
consideration for Chopstix)
Recovery Analysis
The recovery analysis assumes QSRP would be considered a going
concern (GC) in bankruptcy and that it would be reorganised rather
than liquidated. Fitch has assumed a 10% administrated claim.
In its bespoke recovery analysis, Fitch estimates GC EBITDA
available to creditors of around EUR79 million, considering the
recent acquisitions. The GC EBITDA reflects Fitch's view of a
sustainable, post-reorganisation EBITDA, which would allow QSRP to
retain a viable business model.
An enterprise value (EV)/EBITDA multiple of 5.0x is used to
calculate a post-reorganisation valuation. This is in line with the
multiple used for Wheel Bidco.
Fitch treats EUR14 million debt acquired with Chopstix as ranking
prior to senior secured debt. The EUR8 million
government-guaranteed debt raised during the pandemic, QSRP's
senior secured revolving credit facility (RCF) of EUR85 million and
TLB of EUR615 million (including the announced EUR90 million
add-on) rank equally with one another. In accordance with its
criteria, Fitch assumes the RCF to be fully drawn on default. Fitch
also treats EUR111 million convertible bonds, which are outside the
restricted group and on-lent in the form of an intercompany loan,
as non-debt. Therefore, convertible bonds do not affect recovery
prospects for senior secured lenders.
The waterfall analysis generated a ranked recovery for its senior
secured debt in the 'RR4' band indicating a 'B' rating, in line
with the IDR, down from previously B+/'RR3' following the TLB
increase and addition of prior-ranking Chopstix debt. The waterfall
analysis generated a recovery output percentage is 48%, based on
current metrics and assumptions.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade:
- Successful execution of growth strategy and improving restaurant
profitability, leading to consistent EBITDA growth
- EBITDAR leverage below 5.0x on a sustained basis
- EBITDAR fixed charge coverage above 2.0x on a sustained basis
- Positive mid-single digit FCF margins on a sustained basis
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade:
- Inability to turn around Nordsee performance or successfully
operate newly-acquired chains, or slower-than-expected expansion of
its restaurant network
- EBITDAR margin below 16% on a sustained basis
- No visibility of EBITDAR leverage falling below 6.0x on a
sustained basis
- EBITDAR fixed charge coverage below 1.5x on a sustained basis
- Deteriorating FCF
Liquidity and Debt Structure
Sufficient Liquidity: Fitch expectsr QSRP's liquidity to be
satisfactory as the tap issue will help replenish liquidity after
acquisitions, leaving the EUR85 million RCF undrawn. Liquidity will
be also supported by projected positive FCF from 2025.
After the recent debt refinancing, QSRP does not have any near-term
maturities, except for EUR7.8 million government-guaranteed debt
raised during the pandemic. The TLB matures only in 2031.
Issuer Profile
QSRP is a fast-food restaurant platform that operates a diversified
portfolio of brands.
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
----------- ------ -------- -----
QSRP Finco BV
senior secured LT B Downgrade RR4 B+
QSRP Invest S.a r.l. LT IDR B Affirmed B
=====================
N E T H E R L A N D S
=====================
SPRINT BIDCO: Moody's Lowers CFR to Ca & Alters Outlook to Stable
-----------------------------------------------------------------
Moody's Ratings has downgraded bike-manufacturer Sprint BidCo
B.V.'s (Accell or the company) long-term corporate family rating to
Ca from Caa3 and its probability of default rating to C-PD from
Ca-PD. At the same time, Moody's have affirmed at Ca the instrument
rating of the EUR705 million backed senior secured term loan B
(TLB) due June 2029 and the EUR180 million backed senior secured
multi-currency revolving credit facility (RCF) due December 2028,
both borrowed by Sprint BidCo B.V. The outlook was changed to
stable from negative.
The rating action follows Accell's recent announcement that it has
reached an agreement on the terms of a proposed restructuring
transaction backed by its shareholders and the majority of senior
lenders.
RATINGS RATIONALE
The rating action reflects Moody's expectations of very high
likelihood of a default occurring over the next 6 months, together
with low recovery for debtholders, given the terms of the company's
proposed Recapitalization Support Agreement (RSA). Governance
considerations were key drivers of the rating action as reflected
in the very high risk associated with the company's financial
strategy and risk management.
Based on the proposed terms and conditions, the restructuring
transaction will result in a reduction of the company's financial
debt up to 65% given the write-downs of the EUR705 million TLB,
EUR180 million RCF and EUR300 million shareholder loans, as well as
the partial reinstatement of these instruments into a new holding
company outside of Accell's restricted group with interest to be
paid in kind (PIK). In addition, the maturity of the facilities
that will remain within the restricted group will be extended to
May 2030 from December 2028 and June 2029 for the RCF and TLB,
respectively. The RSA will also allow Accell to skip the next
interest cash payment on the TLB and RCF, due over the coming
months, which will be capitalised. The company expects the
transaction will close by end-February 2025 at the latest.
For now, Moody's expect Accell's liquidity to remain weak, with a
cash balance of EUR40 million as of June 2024 and fully utilised
external committed credit facilities. Given the expected negative
free cash flow over the next 12-18 months, Accell will rely on
interim funding provided by its shareholders and debtholders until
the closing of the recapitalization transaction.
Moody's will likely consider the proposed restructuring transaction
as a distressed exchange, which is an event of default under
Moody's definition, because it involves debt write-downs and allows
the company to avoid a default, including the forbearance on the
upcoming interest payments.
Upon closing of the transaction, Moody's will review Accell's
rating positioning in light of the final capital structure and
related cost of funding, the company's operating performance, its
liquidity position, and the prospective operating environment.
RATING OUTLOOK
The stable outlook reflects Moody's expectation that recoveries for
lenders will be in line with those implied by the RSA.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Upward pressure on the rating could materialise if Accell complete
a debt restructuring that leads to a more sustainable capital
structure.
Moody's could downgrade Accell's ratings if creditors' recovery
prospects should weaken further.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Consumer
Durables published in September 2021.
COMPANY PROFILE
Headquartered in Heerenveen, The Netherlands, Accell is a leading
European bicycle manufacturer with a strong focus on e-bikes which
represented more than half of total sales in 2023. The company also
sells bike parts and accessories, traditional bikes and cargo
bikes, and it generates approximately 70% of its revenues in
Central Europe and Benelux. The company owns 12 national and
international brands including Haibike, Batavus and Lapierre. Since
2022, Accell has been owned by a consortium of investors led by
private equity firm Kohlberg Kravis Roberts & Co. LP.
===========
R U S S I A
===========
ANOR BANK: Fitch Affirms 'B-' LongTerm IDRs, Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed Uzbekistan-based Joint-stock company
ANOR BANK's (Anor) Long-Term Foreign- and Local-Currency Issuer
Default Ratings (IDRs) at 'B-' with a Stable Outlook. The bank's
Viability Rating (VR) has been affirmed at 'b-'.
Key Rating Drivers
Anor's Long-Term IDRs are driven by its standalone
creditworthiness, as reflected by its 'b-' VR. The VR captures the
bank's developing business model, narrow, albeit rapidly growing,
franchise and a limited record of profitable performance. The VR
also considers Anor's good asset quality, still weak capitalisation
and high deposit concentrations.
Gradual Market Improvements, Structural Risks: Uzbekistan's banks
have benefitted from ongoing, albeit gradual, market reforms that
have fostered economic growth, lifted restrictions on lending, and
improved governance and risk management practices. However, the
local banking sector remains highly concentrated and
state-dominated, despite privatisation plans. It is also exposed to
heightened credit and currency risks, and reliant on state and
external borrowings.
Small Digital Bank, Diversification Strategy: Anor is a private
bank that makes up 1% of sector assets and loans, and 2% of sector
deposits in Uzbekistan's concentrated banking system. It was
established in 2020 as a branchless digital bank primarily focused
on unsecured consumer lending. Under the bank's ambitious growth
strategy, it aims to develop corporate and SME financing as well.
Continued High Growth, Granular Loans: Fitch expects Anor to keep
growing its loan book at a much faster rate than the sector average
in the medium term. The bank's underwriting standards are untested
since most of its issued loans are yet to season. A high share of
granular retail loans results in low loan concentrations and
dollarisation (17% at end-1H24 under local GAAP), although the
latter has increased materially since the bank started developing
its non-retail franchise.
Impaired Loans to Increase: Anor's impaired loans ratio more than
doubled in 2023 to 5.9% of gross loans. Given high loan growth
reported in 9M24, Fitch forecasts the impaired loans ratio to be
lower this year and to rise moderately on loan seasoning
(particularly in SME and corporate book), although it remains below
5% in the medium term in its baseline scenario.
Strong Recent Performance: High margins and growing business
volumes helped Anor to turn profitable in 2023, with a healthy
return on average equity of 22%. While the bank's operating costs
will likely remain high in the medium term, Fitch forecasts the
operating profit/regulatory risk-weighted assets (RWAs) ratio will
gradually improve further to 2.5%-3% over the next two years, from
2.2% in 2023, on greater economies of scale. However, the net
return will remain sensitive to loan-quality trends, in its view.
Improving Capitalisation: Despite material capital injections from
the shareholder, Anor's high lending growth has resulted in modest
regulatory capitalisation. Its Tier 1 ratio was equal to 10.1% at
end-3Q24, only marginally above the statutory minimum, while the
Fitch Core Capital (FCC) ratio was a low 5% at end-2023. Fitch
forecasts Anor's capitalisation to improve in the near term on
strong internal capital generation, lower growth and full profit
retention. Its baseline scenario forecasts the FCC ratio to
approach 10% over the next two years.
Mostly Deposit Funding, Lower Concentrations: Anor is over 90%
funded by customer accounts, which are primarily retail term
deposits. Single-name deposit concentrations have recently
decreased but remain high, with the 20-largest depositors making up
28% of total liabilities at end-1H24. Fitch expects the bank to
continue gradually diversifying its customer base, although its
funding costs will remain above the sector average. Anor's
liquidity position is modest, with total liquid assets (14% of
total assets at end-3Q24) covering only 0.2x customer accounts.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Anor's Long-Term IDRs and VR could be downgraded on pre-impairment
losses leading to a breach of the minimum statutory capital
requirements. Significant deposit outflows could also weigh on the
ratings.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Anor's VR and Long-Term IDRs would be upgraded if the bank
materially strengthens its business franchise and achieves
consistently strong profitability so that the FCC ratio exceeds 10%
on a sustained basis. Improvements in Fitch's assessment of
Uzbekistan's operating environment could also be credit- positive.
Anor's 'no support' Government Support Rating (GSR) reflects its
low market shares and thus limited systemic importance. Support
from the bank's private shareholders cannot be reliably assessed
and is therefore not factored into the ratings.
Upside for the GSR is currently limited and would require
significant growth of the bank's franchise, making it at least
moderately systemically important.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Joint-stock company
ANOR BANK LT IDR B- Affirmed B-
ST IDR B Affirmed B
LC LT IDR B- Affirmed B-
LC ST IDR B Affirmed B
Viability b- Affirmed b-
Government Support ns Affirmed ns
IPAK YULI: Fitch Affirms 'B' LongTerm IDR, Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed Joint Stock Innovation Commercial Bank
Ipak Yuli's (Ipak Yuli) Long-Term (LT) Issuer Default Ratings
(IDRs) at 'B' with Stable Outlook and its Viability Rating (VR) at
'b'.
Key Rating Drivers
Ipak Yuli's 'B' LT IDRs are driven by the bank's intrinsic
creditworthiness, as captured by its 'b' VR. The VR reflects the
bank's limited franchise in a weak operating environment, high
dollarisation, potentially vulnerable loan quality and a
substantial reliance on wholesale funding. It also incorporates an
extended record of high profitability, adequate liquidity buffer
and reasonable capitalisation.
Gradual Market Improvements, Structural Risks: Uzbekistan's banks
have benefitted from ongoing, albeit gradual, market reforms that
have fostered economic growth, lifted restrictions on lending, and
improved governance and risk management practices. However, the
local banking sector remains highly concentrated and
state-dominated, despite privatisation plans. It is also exposed to
heightened credit and currency risks, and reliant on state and
external borrowings.
Small Bank, SME Lending Focus: Ipak Yuli is a small privately owned
bank in the concentrated Uzbek banking system (2.9% of sector
assets as of 1 September 2024). The bank is focused on SME lending
(end-1H24: 63% of gross loans), but is also developing its retail
segment (24%). Ipak Yuli benefits from partial ownership by
international financial institutions (IFIs), which hold about 31%
of shares, although the bank has a complex ownership structure and
lacks transparency.
Rapid Growth, High Dollarisation: IpakYuli reported high
foreign-exchange (FX)-adjusted loan growth, averaging at 26% in
2021-1H24 and outpacing the sector's 13%. Fitch believes Ipak Yuli
will continue growing rapidly in 2H24-2025, with an increased focus
on retail lending. This is likely to put pressure on the loan
quality in the medium term, once retail exposures season. Loan
dollarisation was a significant 38% at end-1H24, but below the
sector average of 44%.
Moderate Impaired Loans; Good Coverage: Ipak Yuli's impaired loans
(Stage 3 loans under IFRS) rose slightly to 3.9% of gross loans at
end-1H24 (end-2023: 3.7%), and were almost fully covered by total
loan loss allowances. Stage 2 loans decreased substantially, but
remained a sizeable 10% of gross loans at end-1H24 (end-2023: 23%).
Fitch expects some Stage 2 loans to migrate to Stage 3, but for the
bank's impaired loans ratio to remain below 6% in 2024-2025,
supported by write-offs and loan growth.
Strong Profitability: The bank's focus on high-yielding products
results in wide interest margins (1H24: 10.3%, annualised).
Combined with reasonable operating efficiency, this leads to a high
pre-impairment profit (1H24: 10.1% of average loans). The bank's
credit losses widened to 2% of average loans in 1H24 (2023: 0.9%),
which caused a modest decline in the operating profit/risk-weighted
assets (RWAs) ratio to 4.3% (2023: 4.6%). Fitch expects the bank's
operating profitability to remain robust in 2024-2025, although
this could be weighed down by larger credit losses.
Reasonable Capitalisation: Ipak Yuli's Fitch Core Capital (FCC)
ratio fell slightly to 14% at end-1H24 (end-2023: 14.7%), due to
20% RWA growth. The bank's regulatory Tier 1 capital ratio was a
moderate 12% at end-1H24, versus a statutory minimum of 10%. Fitch
expects the FCC ratio to decline, due to continued loan growth, but
to remain above 13% in 2024-2025, supported by strong internal
capital generation.
Wholesale Funding, Adequate Liquidity Buffer: Ipak Yuli's wholesale
funding accounted for a notable 41% of total liabilities at
end-1H24, resulting in a high 140% loans/deposits ratio. It
comprised mostly long-term funds from IFIs (end-1H24: 94% of
total). Non-state customer deposits made up 52% of total
liabilities at end-1H24, higher than at larger peers. The bank's
liquidity cushion was an adequate 27% of total assets at end-1H24
and, net of forthcoming wholesale repayments, covered 32% of
customer deposits.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
The bank's LT IDRs and VR could be downgraded as a result of
material deterioration in asset quality leading to a substantial
increase in impairment charges and larger losses. Further, the VR
may be downgraded if rapid loan growth results in weaker
capitalisation, with the FCC ratio below 12% on a sustained basis
or regulatory capital ratios trending lower towards their
regulatory requirements.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade of the bank's LT IDRs and VR would require a substantial
improvement in Uzbekistan's operating environment, and a
strengthening of the bank's funding structure and asset quality,
while maintaining strong profitability metrics that result in
higher capitalisation.
OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS
The Government Support Rating (GSR) of 'no support' reflects Ipak
Yuli's limited systemic importance in the highly concentrated Uzbek
banking sector. The bank's market share was a modest 2.9% of sector
assets as of 1 September 2024.
OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES
Upside for the GSR is currently limited and would require a
substantial increase in the bank's systemic importance and an
extensive record of timely and sufficient capital support being
provided to private banks by the sovereign authorities.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Joint Stock Innovation
Commercial Bank
Ipak Yuli LT IDR B Affirmed B
ST IDR B Affirmed B
LC LT IDR B Affirmed B
LC ST IDR B Affirmed B
Viability b Affirmed b
Government Support ns Affirmed ns
UNIVERSAL BANK: Fitch Affirms 'B-' LongTerm IDRs
------------------------------------------------
Fitch Ratings has affirmed Uzbekistan-based Joint Stock Commercial
Bank Universal Bank's (Universal Bank) Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDRs) at 'B-' with a Stable
Outlook. The bank's Viability Rating (VR) has been affirmed at
'b-'.
Key Rating Drivers
Universal Bank's IDRs are driven by the bank's Standalone Credit
Profile, as captured by its 'b-' VR. The bank's 'b-' VR is one
notch below its 'b' implied VR due to a negative adjustment to its
business profile, reflecting its limited franchise in the
concentrated banking sector. The VR also captures corporate
governance risks, including potentially high amounts of unreported
related-party lending.
Gradual Market Improvements, Structural Risks: Uzbekistan's banks
have benefitted from ongoing, albeit gradual, market reforms that
have fostered economic growth, lifted restrictions on lending, and
improved governance and risk management practices. However, the
local banking sector remains highly concentrated and
state-dominated, despite privatisation plans. It is also exposed to
heightened credit and currency risks, and reliant on state and
external borrowings.
Small Regional Bank: Universal Bank is a small privately owned
bank, making up less than 1% of total assets in the highly
concentrated banking sector of Uzbekistan. It operates primarily in
the Fergana region, focusing on SME financing complemented by
unsecured retail lending.
Related-Party Lending, Moderate Dollarisation: Universal Bank
mostly provides short-term working-capital loans, with loan
dollarisation (end-2Q24: 13%) well below the sector average (44%).
Reported related-party loans decreased to 3% of gross loans at
end-2023 (the latest available data) from 11% at end-2021, although
their actual amount could be higher, in Fitch's view.
Improved Asset Quality: Universal Bank's impaired loans (Stage 3
loans under IFRS) equaled a limited 1% of gross loans at end-2023.
However, Fitch forecasts the impaired loans ratio could reach 3% by
end-2026 on loan book seasoning. Risks are mitigated by full
coverage of impaired loan loss allowances at end-2023 by IFRS as
well as a low-risk asset structure, with non-loan assets (mainly
cash balances with the Central Bank of Uzbekistan; CBU) equal to
about a third of total assets at end-2Q24.
Fee Income Drives Profitability: An increased share of fees in
Universal Bank's operating income, caused by a change in its
business model since 2021, has driven up its return on average
equity (ROAE) to 27% in 2023 from 6% in 2021. Its operating
profit/risk-weighted assets (RWAs) ratio moderated in 2023 to 6%
(2022: 10%), and Fitch expects it to fall further o around 5% in
the medium term on the back of lending growth.
Moderate Capitalisation: Universal Bank's Tier 1 capital ratio
under local GAAP equaled 14% of regulatory RWAs at end-2Q24. This
was well above the statutory minimum requirement of 10% and
provided a moderate buffer against the bank's asset-quality risks,
in its view. Robust internal profit generation should further
support Universal Bank's capital ratios. Fitch forecasts its Fitch
Core Capital (FCC) ratio to stabilise at around 17% in 2024-2026
(end-2023: 17.6%).
Customer Funding, Ample Liquidity: Universal Bank is primarily
funded by customer accounts (76% of total liabilities at end-2Q24),
while state-related (14%) and wholesale funding (5%) are limited.
The bank's large stock of liquid assets (27% of total assets at
end-2Q24) covered about 44% of non-state customer deposits.
Rating Sensitivities
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Universal Bank's ratings could be downgraded on pre-impairment
losses, or if a material increase in problem loans and widening
credit losses result in the bank's capital ratios falling below
their statutory requirements.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Upside for Universal Bank's VR and IDRs is limited, and would
require a significant strengthening of the bank's commercial
franchise and material improvements in the bank's governance
structure and risk-management framework.
The Government Support Rating (GSR) of 'No Support' reflects
Universal Bank's limited systemic importance in the highly
concentrated Uzbek banking sector.
Upside for the GSR is currently limited and would require a
substantial increase in the bank's systemic importance and an
extensive record of timely and sufficient capital support being
provided to private banks by the sovereign authorities.
ESG Considerations
Universal Bank has an ESG Relevance Score of '4' for Governance
Structure, due to weaknesses in governance and controls leading to
risks of high related-party lending. This factor has a negative
impact on the credit profile and is relevant to the ratings in
conjunction with other factors.
Apart from the scores mentioned above, the highest level of ESG
credit relevance is a score of '3'. A score of '3' means ESG issues
are credit neutral or have only a minimal credit impact on the
entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
----------- ------ -----
Joint Stock Commercial
Bank Universal Bank LT IDR B- Affirmed B-
ST IDR B Affirmed B
LC LT IDR B- Affirmed B-
LC ST IDR B Affirmed B
Viability b- Affirmed b-
Government Support ns Affirmed ns
UZKIMYOSANOAT: Fitch Puts 'BB-' IDR on Watch Negative
-----------------------------------------------------
Fitch Ratings has placed JSC Uzkimyosanoat's (UKS) Issuer Default
Rating (IDR) of 'BB-' on Rating Watch Negative (RWN). Fitch has
also revised down UKS's Standalone Credit Profile (SCP) to 'b-'
from 'b'.
The decision to place the rating on RWN was driven by UKS's
reorganisation. UKS's ownership of its 50.59% stake in the main
operating subsidiary JSC Navoiyazot was transferred to the Ministry
of Economy and Finance, although this is expected to be transferred
back to UKS by end-2024. Fitch understands from UKS's management
that UKS has retained control over Navoiyazot's assets, and made
operational and investment decisions, while its legal ownership was
temporarily transferred.
The resolution of the RWN is subject to a formal finalisation of
the transfer of the majority stake in Navoiyazot back to UKS's
ownership and clarity of UKS's strategy regarding Navoiyazot, which
may take longer than six months.
UKS's IDR is equalised with that of its parent Uzbekistan
(BB-/Stable) in line with Fitch's Government-Related Entities (GRE)
Rating Criteria. Should UKS lose the majority ownership of
Navoiyazot, Fitch would reassess the company's SCP and GRE rating
criteria application, which may result in a multi-notch downgrade.
The downward revision of UKS's SCP reflects its limited
deleveraging capacity and weakening corporate governance. The SCP
also reflects the weak operating environment in Uzbekistan.
Key Rating Drivers
RWN on Key Asset Transfer: UKS's main operating subsidiary,
Navoiyazot, underwent a strategic review in 2023. The management
planned to focus on cost efficiency and deleveraging, and
ultimately privatise this opco. As a result, UKS's ownership of its
50.59% stake in Navoiyazot was ultimately transferred to the
Ministry of Economy and Finance. UKS expects to regain its majority
ownership in Navoiyazot by end-2024 and for the subsidiary to
remain within the group's consolidated perimeter at least in the
medium term.
This created an opaque legal structure with potential material
implications for its assessment of the SCP and GRE rating criteria,
which has resulted in placing UKS's IDR on RWN.
SCP Lowered to 'b-': The revision of UKS's SCP reflects UKS's
limited deleveraging capacity with EBITDA gross leverage above 5x,
its previous negative leverage sensitivity, until 2026 due to weak
fertiliser market conditions and high capex and weakening corporate
governance. Under Fitch's fertilisers price assumptions coupled
with increased energy costs, Fitch forecasts EBITDA to continue
declining by 32% to USD169 million in 2024 before gradually
improving to above USD210 million in 2025, with an EBITDA gross
leverage spike of 6.8x in 2024, decreasing to 5.7x in 2025.
The SCP also reflects UKS's domestic market-leading position, small
scale, average costs, unfavourable location for exports, high
execution risks linked to an ambitious capex programme and the
generally weak operating environment in Uzbekistan.
GRE Considerations: UKS's IDR is equalised with that of its parent
Uzbekistan due to strong links with the government. Fitch assesses
the GRE score at 35. Should UKS lose the majority ownership of
Navoiyazot, Fitch would reassess the company's SCP and GRE rating
criteria application. This may result in a multi-notch downgrade.
'Strong' Decision Making and Oversight: Fitch has changed its
assessment of this factor to 'Strong' from 'Very Strong' due to the
potential reorganisation and privatisation of its key asset. UKS is
fully state-owned, and its high-level strategy and investments are
set by the government through presidential decrees. The board
comprises Uzbek government ministers.
'Very Strong' Support: Fitch views precedents of support factor as
'Very Strong' as the government guaranteed over 90% of UKS's debt
at end-2023 and over 95% of UKS's debt is provided through state
banks. Fitch forecasts guarantees from the government to fall but
stay high, as Fitch assumes new borrowing to fund expansionary
capex is not state guaranteed. Other forms of support totalled
around USD360 million through debt/equity conversion and reduction
or waivers on accrued payments in 2019-2021 due to the pandemic.
The state provided a USD100 million support loan in 2024.
'Strong' Policy Role: Fitch views the preservation of government
policy role factor as 'Strong' as UKS mainly produces fertilisers
for the agriculture industry, which is key for the Uzbek economy.
UKS also has an ambitious investment programme seeking to reduce
imports of non-fertiliser chemical products and diversifying the
production base to higher-value added products.
'Strong' Contagion Risk: Fitch considers UKS's debt as a proxy for
the government's, despite having minimal external debt. Its debt
size is comparable with other GREs so a potential default would be
likely to impair access or cost of financing for the government and
other GREs and may discredit the government's strategy to attract
foreign investment, which underlines its 'Strong' assessment of
contagion risk factor.
Ambitious Investments Plans; Execution Risks: UKS plans to invest
around USD300 million over 2024-2028 to build three chemical
clusters. The clusters will localise production of various chemical
products and diversify the asset base. UKS expects to fund these
projects from foreign loans, cash flow generation and divestment
proceeds of three subsidiaries. Fitch sees execution risks given
the large scale of the projects and its limited access to capital
without government guarantees.
Asset Sales Progressing: In 2023, UKS divested its shares in
Birinchi Rezinotexnika Zavodi and JSC Fargonaazot. Fitch now
anticipates UKS to receive only USD51 million in cash proceeds,
down from the USD150 million projected last year, as the state will
retain the remaining USD100 million and only allocate funds to UKS
when needed. The share transfers for the Dehkanabad potash business
and Kungrad soda ash have been postponed to 2025.
ESG - Group Structure: The government transferred UKS's 50.59%
shares of UKS's material subsidiary JSC Navoiyazot to the Agency
for Strategic Reforms of Uzbekistan and subsequently to the
Ministry of Economy and Finance. Navoiyazot represented 70% of
group EBITDA in 2023 and Fitch expects it to increase should it
return to UKS's majority ownership. While the company expects it to
be on a temporary basis, this creates an opaque and unstable legal
structure with a materially different cash flow and business risk
profile and its assessment of the state ties of the remaining
entity.
Derivation Summary
UKS has significantly smaller scale and weaker diversification than
most Fitch-rated EMEA fertiliser producers. This is slightly
mitigated by its status as the sole domestic producer of
fertilisers and its dominant share in landlocked Uzbekistan, with
high transportation costs for competing importers. UKS benefits
from lower electricity and natural gas prices than the market.
However, its assets require substantial modernization investments,
which reduces its cost-efficiency relative to its peers. The
group's ammonia and urea assets are comfortably placed in the
second quartile of the respective CRU global cost curves, and its
ammonia nitrate asset is in the third quartile of the cost curve.
UKS's leverage is high due to the group's investment programme.
Among its wider peer group, Roehm Holding GmbH (B-/Stable), a
European producer of methyl methacrylate, is a larger and
diversified company with a robust cost position in Europe, but it
is exposed to raw-material price volatility and has higher leverage
since its acquisition by a private equity sponsor.
Lune Holdings S.a r.l. (Kem One) (B/Stable) has a similar size, is
less diversified, has weaker cost position and weaker margins than
UKS. However, it has a more-conservative balance sheet, with EBITDA
gross leverage forecast to return to 3.4x in 2025 after rising to
5.3x in 2024.
Root Bidco S.a.r.l. (Rovensa) (B/Negative) has higher leverage
among peers and limited diversification but operates on a similar
scale that UKS. Rovensa provides price and cash flow visibility as
well as steady growth that are supported by the essential nature of
its products for crop growth and its strategic focus on niche
products. UKS's commodity exposure makes it more exposed to
volatility in feedstock and selling prices than Rovensa. However,
both companies maintain high margins.
Key Assumptions
- Fertiliser prices in line with Fitch's price deck.
- EBITDA margin of around 32% in 2024, before increasing to 40% in
2026-2027.
- The majority of Navoiyazot's shares to be transferred back to UKS
in 2024 and to remain in the group in the forecast horizon.
- Deconsolidation of soda ash and potash business in 2025 with no
proceeds inflow.
- Debt/equity conversion of USD98 million in 2025.
- No dividend paid in 2024, then 50% payout in 2025-2027.
- Capex in line with management's guidance.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- The rating is on RWN, so no positive rating action is expected.
- The RWN will be resolved and Stable Outlook assigned upon the
successful transfer of the majority ownership of Navoiyazot back to
UKS and once more clarity of the consolidated group's strategy
regarding Navoiyazot is provided.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Failure to transfer the majority of shares of Navoiyazot back to
UKS leading to the material change in business profile and its
reassessment of the state ties.
Assuming UKS regains majority ownership over Navoiyazot:
- Negative sovereign rating action.
- Material weakening of links and support from the state.
- Unsuccessful implementation, material delays and/or cost overruns
in cluster projects resulting in EBITDA gross leverage above 6x on
a sustained basis, which would be negative for the SCP and the
IDR.
- Liquidity issues, leading to inability to secure the capex
funding or refinancing of the UKS's near-term maturities.
Uzbekistan (Rating Action Commentary dated 23 August 2024)
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Macro: Consistent implementation of structural reforms that
promote macroeconomic stability, sustain strong GDP growth
prospects and support better fiscal outturns.
- Public Finances: Confidence in a durable fiscal consolidation
that enhances medium-term public debt sustainability.
- Structural: A marked and sustained improvement in governance
standards.
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- External Finances: A marked worsening of external finances, for
example, via a large and sustained drop in remittances, or a
widening in the trade deficit, leading to a significant decline in
FX reserves.
- Public Finances: A marked rise in the government debt/GDP ratio
or an erosion of sovereign fiscal buffers, for example, due to an
extended period of low growth, loose fiscal stance, sharp currency
depreciation, or crystallisation of contingent liabilities.
Liquidity and Debt Structure
Limited Liquidity Buffer: At end-1H24, UKS had a cash balance of
around UZS772 billion. Part of the disposal proceeds of Birinchi
and Fargonazzot, which transactions were closed in 2023, were held
by the state and will be allocated to UKS from time to time when
capex funding is needed. UKS has annual maturity of around UZS2,500
billion in 2024 and 2025. UKS's liquidity strongly relies on
cash-flow generation and divestment proceeds.
Issuer Profile
Uzkimyosanoat is a state-owned Uzbek producer of mineral
fertilisers and other chemical products.
Public Ratings with Credit Linkage to other ratings
UKS's rating is equalised with the sovereign's.
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
UKS's ESG Relevance Score for Group Structure was revised to '5'
from '3' due to its opaque and uncertain legal structure, which has
a negative impact on the credit profile, and is highly relevant to
the rating, resulting in placing the rating on RWN.
UKS has an ESG Relevance Score of '4' for Financial Transparency
due to prolonged delay in the publication of IFRS accounts compared
with international best practice and the absence of interim IFRS
reporting, which has a negative impact on the credit profile, and
is relevant to the ratings in conjunction with other factors.
UKS has an ESG Relevance Score of '4' for Governance Structure due
to limitations of board independence and effectiveness, which has a
negative impact on the credit profile, and is relevant to the
ratings in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Prior
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JSC Uzkimyosanoat LT IDR BB- Rating Watch On BB-
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S W E D E N
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INTRUM AB: Fitch Lowers LongTerm IDR Rating to 'C'
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Fitch Ratings has downgraded Intrum AB (publ)'s Long-Term Issuer
Default Rating (IDR) and senior unsecured debt rating to 'C' from
'CC'.
The rating action follows the announcement that Intrum has launched
a Chapter 11 solicitation process for its debt restructuring
originally announced in July 2024, which Fitch views as the
beginning of a default-like process.
Intrum announced on October 18, 2024 that it had decided to
implement the planned debt restructuring via a 'prepackaged'
Chapter 11 process. Since around 73% of Intrum's noteholders (and
around 97% of revolving credit facility lenders) entered a lock-up
agreement in July and August 2024 and are legally obliged to vote
in favour of the process, Fitch believes it is very likely that
Intrum will meet the two-thirds consent threshold required under
the Chapter 11 process.
The transaction includes an extension of the maturity of Intrum's
outstanding senior unsecured notes currently maturing in 2025 and
beyond by around three years as well as a 10% discount to its face
value. In exchange, bondholders will receive 10% of the company's
equity, an improved security package (including a dividend
prohibition until December 2028) and certain upfront fees.
Key Rating Drivers
Debt Restructuring: The proposed debt restructuring includes a
maturity extension and refinancing of the outstanding bonds below
par, which in its view constitutes a material reduction in terms
despite the allocation of 10% of Intrum's equity to the
bondholders, an improved security package and a higher coupon than
its outstanding senior unsecured debt. Fitch believes that the
transaction is necessary to avoid bankruptcy, insolvency or
intervention proceedings, or a traditional payment default given
Intrum's currently impaired access to conventional capital-market
funding and material pre-transaction near-term debt maturities.
Improved Post-Transaction Funding Profile: Upon closing of the
transaction, Intrum's nearest material debt maturity will be in
September 2027 (20% or around EUR600 million of the restructured
notes) with further maturities staggered out to September 2030.
However, increased interest expense will weigh on Intrum's interest
coverage ratio, which Fitch expects to remain weak at 2x-2.5x in
2025-2026.
Leverage to Remain High: While the transaction will lead to some
improvement in Intrum's leverage, post-transaction leverage will
remain high. Under its forecast, Fitch expects Intrum's gross
debt/adjusted EBITDA ratio to stand at 4.5x-5x in 2025-2026, which
is close to a 'ccc' leverage score under Fitch's Non-Bank Financial
Institutions Criteria.
Business Plan Creates Execution Risk: Execution risks related to
implementation of Intrum's business plan following the transaction
combined with restricted access to debt capital markets will
constrain its assessment of Intrum's credit profile. This is
despite its position as Europe's leading credit management company
with an equivalent of about EUR190 billion (at notional value) of
serviced third-party debt at end-1H24.
After completion of the debt restructuring, Fitch would likely
re-rate Intrum in the 'CCC' or lower end of the 'B' rating
categories, driven largely by increased interest expenses that
would weaken its debt coverage ratio, given Intrum's still high
leverage post-debt restructuring. Fitch forecasts that Intrum's
gross debt/adjusted EBITDA ratio (pro forma for the restructuring)
will be 4.9x at end-2024 and 4.8x at end-2025 (end-2023: 5.1x), and
its adjusted EBITDA/interest expense ratio will weaken and remain
below 3x until 2026 (2023: 3.4x).
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Fitch expects to downgrade Intrum's Long-Term IDR to a default
level rating before re-rating the company on completion of the debt
restructuring and based on its post-transaction financial profile.
Fitch will reassess Intrum's credit profile with a particular focus
on the sustainability of its leverage and liquidity profile. Based
on Fitch's projections of Intrum's post-closing EBITDA and
outstanding gross debt, Fitch expects its gross debt/EBITDA ratio
to remain at about 5x in 2025-2026. This will likely constrain
Intrum's post-transaction Long-Term IDR to the 'CCC' or lower end
of 'B' rating categories.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Intrum's high post-transaction leverage and weak interest coverage
ratio will likely constrain its post-transaction rating to the
'CCC' or low 'B' rating categories in the near term. Beyond that,
Intrum's rating trajectory will largely depend on its ability to
contain post-transaction leverage, improve its interest coverage
ratio while retaining its debt purchasing and servicing franchise.
DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
Intrum's senior unsecured debt rating is equalised with the
Long-Term IDR, reflecting Fitch's expectation of average recovery
prospects.
DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES
Intrum's senior unsecured debt rating is primarily sensitive to
changes to the Long-Term IDR.
ADJUSTMENTS
The 'c' Standalone Credit Profile (SCP) is below the 'ccc+' implied
SCP due to the following adjustment reason: weakest link - funding,
liquidity & coverage (negative).
The 'b' business profile score is below the 'bb' category implied
score due to the following adjustment reason: business model
(negative).
The 'b' earnings & profitability score is below the 'bb' category
implied score due to the following adjustment reason: historical
and future metrics (negative).
The 'c' funding, liquidity & coverage score is below the 'b'
category implied score due to the following adjustment reason:
funding flexibility (negative).
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
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Intrum AB (publ) LT IDR C Downgrade CC
ST IDR C Affirmed C
senior unsecured LT C Downgrade RR4 CC
INTRUM AB: Moody's Cuts CFR to 'Ca', Outlook Developing
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Moody's Ratings has downgraded Intrum AB (publ)'s Corporate Family
Rating and its senior unsecured debt rating to Ca from Caa2/Caa3
respectively. The issuer outlook remains developing.
RATINGS RATIONALE
The downgrade of Intrum's CFR to Ca follows Intrum's announcement
[1] that it seeks debtholders' consent to initiate a voluntary
reorganization under Chapter 11 of the United States Bankruptcy
Code. In Moody's view the risk to unsecured debtholders to bear
losses above 35%, equivalent to Moody's Ca category, increases
significantly throughout an insolvency process.
As the company was not able to reach the required consent threshold
from its debtholders for an out of court implementation process for
its contemplated restructuring plan, Intrum has initiated a
solicitation process for the creditors already supportive to
formally reconfirm their support. Following the solicitation
period, which ends on November 13, 2024, the company intends to
file a voluntary petition for reorganisation under Chapter 11 of
the United States Bankruptcy Code and to seek approval of the
restructuring plan. The court decision is expected by the end of
2024. A positive court decision would allow Intrum to start the
recapitalisation process in Q1 2025. The company has not announced
any changes to the binding lock-up agreement.
The aforementioned steps taken by Intrum reflect its propensity to
resolve its untenable capital structure at the expense of
creditors, which is now reflected in a two notch negative
adjustment for corporate behavior in Intrum's CFR compared to one
notch negative adjustment previously, mainly reflecting severe
underperformance and missing of financial targets. Very high
governance risks are captured by an unchanged governance issuer
profile score (IPS) of G-5, in turn resulting in a Credit Impact
Score of CIS-5 under Moody's framework for assessing environmental,
social and governance (ESG) risks, indicating a pronounced negative
impact of ESG considerations on the ratings.
Intrum's senior unsecured debt positioning of Ca reflects the Ca
positioning of the CFR and the expected loss for debtholders under
the Chapter 11 reorganization plan.
OUTLOOK
The developing outlook reflects the uncertainties regarding the
reorganization of the company during the insolvency process and the
risks which might result in even higher potential losses for the
debtholders. The developing outlook also reflects the potential for
a higher rating positioning if Intrum successfully reaches the
required consent for the restructuring before the end of the
solicitation period, thus avoiding the need to initiate an
insolvency process.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's may upgrade Intrum if it obtains the necessary consent from
its noteholders to proceed with the recapitalization plan without
triggering an insolvency process.
Intrum's ratings could be downgraded further to C if the firm's
bondholders were to incur losses above 65% of the principal
amount.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Finance
Companies published in July 2024.
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T U R K E Y
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TURKIYE WEALTH: Fitch Rates USD750MM Certificates 'BB-'
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Fitch Ratings has assigned Turkiye Wealth Fund's (TWF: BB-/ Stable)
100% owned subsidiary TVF IFM Gayrimenkul Insaat ve Yonetim A.S.'s
(TWF IFC) USD750 million 6.95% fixed rate lease certificate
issuance due 2030 (ISIN: XS2911679004) a final 'BB-' rating.
TWF IFC's payment obligations under the lease certificates (sukuk)
are unconditionally and irrevocably guaranteed by TWF to which it
is a party. The final rating is therefore equalised with the
ultimate parent (Guarantor) TWF's Long Term Issuer Default Ratings
(IDRs) and senior unsecured debt rating of TWF at 'BB-' and will
apply only to the senior unsecured lease certificates issued.
The issuance is made on behalf of TWF IFC by TWF's wholly owned
asset leasing company TVF Varlik Kiralama A.S. TVF Varlik Kiralama
A.S. in its capacity is the issuer, seller and the lessor, is an
asset leasing company in the form of a joint stock company
incorporated in Turkiye in accordance with the Founding Law solely
for the purpose of participating in the transactions contemplated
by the transaction documents to which it is a party. TWF IFC is the
obligor, purchaser, lessee and the servicing agent. TWF is the
guarantor.
The proceeds are being used for its general corporate purposes.
The final ratings follow the receipt of documents confirming the
information already received.
Key Rating Drivers
Unconditional and Irrevocable Guarantee:
The lease certificate issuance's final rating is driven solely by
TWF's Long-Term IDR. The payment obligations of TWF IFC as the
obligor (acting in any capacity) under the transaction documents
are irrevocably and unconditionally guaranteed by TWF in favour of
the issuer, the representative and the agents pursuant to the deed
of guarantee.
The guarantee is on first demand, legally binding and valid through
the tenor of the sukuk. Guaranteed payment obligations under the
guarantee are direct, unconditional, unsubordinated and (subject to
negative-pledge provisions) unsecured obligations of the guarantor.
They at all times rank at least equally with all other present and
future senior unsecured and unsubordinated obligations of the
guarantor from time to time. This reflects Fitch's view that
default of these senior unsecured obligations would reflect a
default of TWF in accordance with Fitch's rating definitions.
Fitch has given no consideration to any underlying assets or any
collateral provided, as Fitch believes the issuer's ability to
satisfy payments due on the certificates ultimately depends on TWF
IFC satisfying its unsecured payments obligations to the issuer
under the transaction documents described in the offering
circular.
In addition to TWF IFC's propensity to ensure repayment, TWF IFC is
required to ensure full and timely repayment of TVF Varlik Kiralama
A.S. obligations, due to its various roles and obligations under
the sukuk structure and documentation, especially but not limited
to the below features:
Pursuant to the servicing agency agreement, TWF IFC as servicing
agent, is to ensure sufficient funds are available to meet the
periodic distribution amounts payable by the issuer under the
certificates on each periodic distribution date. TWF IFC, through
the deed of guarantee, can prompt TWF to ensure that there is no
shortfall and that the payment of principal and profit are paid in
full, and in a timely manner.
On any dissolution or default event, the issuer will have the right
under the purchase undertaking to require TWF IFC to purchase all
of its rights, titles, interests, benefits and entitlements in, to,
and under the lease assets for an amount equal to the exercise
price. The exercise price payable by TWF IFC, together with the
aggregate amounts of the deferred sale price then outstanding, if
any are intended to fund the dissolution distribution amount, which
should equal the sum of the outstanding face amount of the
certificate and any due but unpaid periodic distribution amounts.
TWF IFC's payment obligations under the transaction documents are
direct, unconditional, unsubordinated and unsecured (subject to
negative-pledge provisions) obligations and at all times rank at
least equally with all its other present and future unsecured and
unsubordinated obligations as well as with those of TWF, as stated
in the deed of guarantee.
Tangibility Ratio:
The sukuk documentation includes an obligation for TWF IFC to
ensure at all times, the tangibility ratio (calculated as the value
of the lease assets to the aggregate of the value of the lease
assets and each deferred sale price outstanding at the relevant
time) is more than 50%. Failure of TWF IFC to comply with this
obligation will not constitute an obligor event.
If the tangibility ratio falls to 50% and below but stays above
33%, the servicing agent will take steps (in consultation with the
Shari'a advisor) required to ensure the tangibility ratio is
restored to more than 50%. If the tangibility ratio falls below 33%
(tangibility event), each certificate holder can exercise a put
option to have their holdings redeemed, in whole or in part, and
the certificates will be delisted from any stock exchange falling
15 days after the put right redemption date. In such an event,
there would be implications on tradability and listing of the
certificates.
Fitch expects TWF IFC to maintain the tangibility ratio above 50%
through the tenor of the sukuk. According to 2023 year-end
financials, TWF IFC has eligible asset (real estate in Istanbul
Finance Center) with a value of USD1.1billion, which provides
substantial headroom within the tangibility ratio. In case of
dilution of headroom Fitch expects timely extraordinary support
from Turkish government for TWF, whose ratings are equalised with
that of the sovereign based on its very strong support
expectations.
If a loss event has occurred (unless the Ijara assets have been
replaced) and there is a shortfall from insurance proceeds, TWF IFC
as obligor will undertake to pay the loss shortfall amount. If the
servicing agent is not in compliance with the obligation to insure
the assets against a loss event, it will immediately deliver a
written notice to the issuer and the representative of such
non-compliance, and this will constitute an obligor event.
TWF IFC's sukuk issuance includes negative-pledge covenants,
including Shari'a-specific covenants, and cross-default on debt
issuance under the sukuk transaction in relation to any other
senior unsecured debt of TWF exceeding USD40 million, financial
reporting provisions and a change-of-control event.
TWF IFC, as the lessee, agrees to allow the lessor, TVF Varlik
Kiralama A.S., and any person authorised by the lessor at all
reasonable times to inspect and examine the condition of the lease
assets, subject to the lessor having given 15 days' notice in
writing. The lessee further agrees to maintain actual or
constructive possession, custody or control of all of the lease
assets. If the lessee fails to comply, it would constitute a
dissolution event.
Additionally, if the lessee, TWF IFC, fails to keep and maintain
the security or optimum condition of the lease assets (other than
fair wear and tear), the lessor TVF Varlik Kiralama A.S shall be
entitled, but not obliged, on giving 15 business days' notice to
take possession of the lease assets. This is for the purpose of
taking all necessary steps or measures at the cost and expense of
the lessee to ensure that the lease assets are in suitable
condition for their current or intended use.
Certain aspects of the transaction are governed by English law,
while others are governed by Turkish law. Fitch does not express an
opinion on whether the relevant transaction documents are
enforceable under any applicable law. However, Fitch's rating on
the lease certificates reflects the agency's belief that TWF IFC
would stand behind its obligations.
Fitch does not express an opinion on the lease certificates'
compliance with Shari'a principles when assigning ratings to the
lease certificates.
Derivation Summary
The sukuk issuance's final rating is derived from TWF's Long-Term
IDR. TWF IFC's payment obligations under the sukuk structure are
guaranteed by TWF and represent TWF's direct, unconditional,
unsubordinated and unsecured obligations. Guaranteed payment
obligations rank equally with TWF's present and future senior
unsecured and unsubordinated obligations.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
A downgrade of TWF's Long- Term IDR would be reflected in the
senior unsecured notes' ratings.
The senior unsecured notes' rating may also be sensitive to changes
to the roles and obligations of TWF under the sukuk's structure and
documents.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade of TWF's Long-Term IDR would be reflected in the senior
unsecured note's rating.
Issuer Profile
TWF IFC is a government-related entity and a 100% owned subsidiary
of TWF. It is a real estate company, focusing on developing and
managing properties primarily for the new Istanbul Financial Center
but also other properties in line with TWFs' policy mandate. IFC
real estate development is one of the government's strategic
objective to increase Turkiye's financial competitiveness and
strengthen its integration with international financial and capital
markets.
Date of Relevant Committee
11 October 2024
Public Ratings with Credit Linkage to other ratings
TWF IFC's senior unsecured rating is credit-linked to TWF.
ESG Considerations
Fitch does not provide ESG relevance scores for TWF IFC.
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.
Entity/Debt Rating Prior
----------- ------ -----
TVF IFM Gayrimenkul
Insaat ve Yonetim A.S
senior unsecured LT BB- New Rating BB-(EXP)
===========================
U N I T E D K I N G D O M
===========================
CALDICOT GROUP: Begbies Traynor Named as Joint Administrators
-------------------------------------------------------------
Caldicot Group Limited was placed in administration proceedings in
the Bristol High Courts of Justice, Court Number: BRS-000103 of
2024, and Paul Wood and Andrew Hook of Begbies Traynor (Central)
LLP were appointed as administrators on Oct. 14, 2024.
Caldicot Group is a road works recovery specialists.
Its registered office is at Unit 9 Castle Way, Severn Bridge
Industrial Estate, Caldicot, Monmouthshire, NP26 5PR.
The joint administrators can be reached at:
Paul Wood
Andrew Hook
Begbies Traynor (Central) LLP
3rd Floor Castlemead
Lower Castle Street Bristol
BS1 3AG
Any person who requires further information may contact
Joshua Cook
Begbies Traynor (Central) LLP
Tel No: 0117 363 7442
Email: Joshua.Cook@btguk.com
CALDWELL METALWORK: Hudson Weir Named as Joint Administrators
-------------------------------------------------------------
Caldwell Metalwork Fabrication Limited was placed in administration
proceedings in the High Court of Justice, Business and Property
Courts of England and Wales, Insolvency and Companies List (ChD),
Court Number: CR-2024-005900, and Nimish Patel and Hasib Howlader
of Hudson Weir Limited were appointed as administrators on Oct. 17,
2024.
Caldwell Metalwork is a manufacturer of metal structures and parts
of structures.
Its registered office is at 62-66 Bermondsey Street, London,
England, SE1 3UD.
The administrators can be reached at:
Nimish Patel
Hasib Howlader
Hudson Weir Limited
58 Leman Street
London, E1 8EU
For further details, contact:
Hudson Weir
Tel No: 02070996086
FYLDE COAST: Opus Restructuring Named as Joint Administrators
-------------------------------------------------------------
Fylde Coast Gate Limited was placed in administration proceedings
in the High Court of Justice, Court Number: CR-2024-MAN-001298, and
Ian McCulloch and Frank Ofonagoro of Opus Restructuring LLP were
appointed as administrators on Oct. 17, 2024.
Fylde Coast is a manufacturer of metal structures and parts of
structures.
Its registered office is at Richard House, 9 Winckley Square,
Preston, Lancashire, PR1 3HP. Its principal trading address is at
Unit 7, Skyways Commercial Campus, Amy Johnson Way, Blackpool,
Lancashire, FY4 3RS.
The joint administrators can be reached at:
Ian McCulloch
Frank Ofonagoro
Opus Restructuring LLP
Mount Suite, Rational House
32 Winckley Square, Preston
Lancashire, PR1 3JJ
For further information, contact:
Maria Price
Email: maria.price@opusllp.com
Tel No: 01772 669 862
GRIFFIN MEDIA: RSM UK Named as Joint Administrators
---------------------------------------------------
Griffin Media Solutions Ltd was placed in administration
proceedings in the High Court of Justice, Business and Property
Courts of England and Wales, Insolvency and Companies List (ChD),
Court Number: CR-2024-006111, and David Shambrook and James Dowers
of RSM UK Restructuring Advisory LLP were appointed as
administrators on Oct. 16, 2024.
Griffin Media is an advertising agency.
Its registered office is at c/o RSM UK Restructuring Advisory LLP,
25 Farringdon Street, London, EC4A 4AB. Its principal trading
address is at 3 Calverley Street Tunbridge Wells TN1 2BZ.
The joint administrators can be reached at:
David Shambrook
James Dowers
RSM UK Restructuring Advisory LLP
25 Farringdon Street, London
EC4A 4AB
Correspondence address & contact details of case manager:
Kirsty Baillie
RSM UK Restructuring Advisory LLP
25 Farringdon Street, London, EC4A 4AB
Tel No: 0203 201 8000
Further details contact:
Joint Administrators
Tel No: 020 3201 8000
KIER GROUP: Fitch Affirms 'BB+' LongTerm IDR, Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed Kier Group Plc's (Kier) Long-Term Issuer
Default Ratings (IDR) and its senior unsecured ratings at
'BB+/RR4'. The Outlook is Stable.
The affirmation reflect Kier's continued financial discipline,
highlighted by leverage being within rating sensitivities and
profitability growth. Management's prudent bidding approach and
cost control allow for good cash conversion with positive free cash
flow (FCF) generation expected for FY25-FY28 (year-end June).
Kier's rating is constrained by geographical concentration, with
its operations almost exclusively in the UK and limited
diversification of low-risk dividend streams.
The Stable Outlook reflects strong revenue visibility and stable
operating profitability, driven by Kier's strong market position as
a leading engineering and construction (E&C) company in the UK's
construction sub-sector.
Key Rating Drivers
Stable Operating Performance: Fitch forecasts Kier's revenue to
grow 2%-3.5% annually in FY25-FY27. This is driven by a growing
order book as of FYE24, which underpins 90% and 65% of FY25 and
FY26 revenue, respectively. Fitch forecasts EBITDA margin to remain
stable at around 4.0% across FY25-FY28. This will be supported by
stable margins in the current order book, alongside management's
bidding strategy, which targets limited volatility in operating
profit margins.
Declining Gross Leverage: Fitch forecasts Kier's Fitch-defined
EBITDA leverage to fall to 1.6x at FYE25 (FYE24: 1.9x) and to
remain at 1.5x-1.6x across FYE26-FYE28. This leverage improvement
will be driven by reduction in gross debt to around GBP250 million
in FY25 from GBP292 million currently, and stable profitability.
Fitch expects Kier to maintain a strong available cash balance with
a net cash position over the short-to-medium term, supported by its
financial policy.
Through-the-Cycle Positive FCF: Fitch expects Kier will continue
generating positive FCF across FY25-FY28. The group's structurally
lower operating profitability than other Fitch-rated peers' - due
to the competitive construction market in the UK - is partly offset
by its increasing use of limited-risk cost contract structure
(target-cost and cost-plus), which reduces margin volatility. This
is further supported by healthy cash conversion due to effective
working-capital management and lower capex intensity.
Kier plans to invest its excess cash generation to grow its
property portfolio, which may offer stable dividends or additional
profits following asset maturity. Fitch forecasts cumulative cash
outflows of around GBP80 million in FY25-FY28 to support investment
in properties.
Strong Revenue Visibility: Kier has strong revenue visibility,
supported by its growing order book and healthy pipeline of
opportunities. Its order book increased to GBP10.8 billion at FYE24
due to new orders from both its infrastructure and construction
segments. Fitch believes Kier is well-positioned to benefit from
increasing government investments, especially driven by new
infrastructure and construction programmes. Fitch forecasts Kier's
book-to-bill ratio at around 1.0x for FY25-FY28.
Effective Contract-Risk Management: Kier's solid bidding strategy,
where about 60% of its overall order book is cost-plus or
target-cost and has pass-through clauses embedded within the
contract terms, supports margin stability. Most of the remaining
contracts include a two-stage negotiation process, allowing Kier to
share project risk and price contracts accordingly during
inflationary times. Fitch believes Kier will maintain contract-risk
management procedures in line with investment-grade peers'.
Geographical Concentration Risk: Kier's rating is constrained by
its single geography concentration, operating almost exclusively in
the UK, following its withdrawal from and scaling backing in
various overseas markets. This risk is mitigated by its order book
size and diversification, where the top 10 customers account for
less than 40% of the overall order value (temporarily higher given
the scale of HS2), and where each project has a limited scale.
Typically, investment-grade E&C peers have well-diversified
geographical profiles, mitigating the risk of concentrated cash
flows from a single region.
Derivation Summary
Fitch views Kier's business profile as weaker than that of other
E&C companies, like Ferrovial SE (BBB/Stable) and Balfour Beatty
Plc, but similar to Webuild S.p.A.'s (BB/Positive), albeit with
more limited geographical diversification. Kier has an established
strong domestic market position across its different business
segments, coupled with healthy revenue visibility and solid
contract-risk management in line with other investment-grade E&C
groups.
Kier's scale is smaller than that of Ferrovial, Balfour Beatty and
Webuild, but larger than Petrofac Limited (Restricted Default).
Balfour Beatty has slightly stronger end-market diversification due
to its exposure to support services, and benefits from stable
concessionary assets. Ferrovial has a higher contribution of
recurring dividends from infrastructure assets and a more
attractive concession portfolio, including toll roads with longer
average duration than most peers, and a healthy tariff growth
outlook.
Kier has a sound financial profile for its 'BB+' rating, supported
by improving and less volatile profitability, plus expected
positive FCF generation. The group's committed financial discipline
provides good liquidity and an adequate financial structure,
although higher-rated peers typically have lower gross leverage in
addition to consistent net cash positions.
Key Assumptions
- Revenue to grow at 3%-3.5% in FY25-FY26 and 2% in FY27. Revenues
to decline 1% in FY28 following the expected completion of HS2
project
- Stable EBITDA margin at around 4.0% for FY25-FY28, supported by
margins in existing order backlog and prudent bidding discipline
for new orders
- Working-capital inflow for FY25 and slight working-capital
outflow in FY26-FY28
- Capex at 0.4% of revenue in FY25-FY28
- Cumulative investments in joint ventures at GBP80 million across
FY25-FY28
- Dividends of GBP22 million-GBP29 million a year for FY25-FY28
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDA leverage below 1.5x on a sustained basis
- Improvement of quality/diversification of dividend income
streams
- EBITDA margins above 3.5% and low single-digit FCF margins, both
on a sustained basis
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Significant decrease in order backlog or loss of cash flow
visibility
- Negative FCF on a sustained basis
- EBITDA leverage above 2.5x on a sustained basis
- Significant restructuring/one-off costs
Liquidity and Debt Structure
Ample Liquidity: Kier's liquidity is supported by about GBP364
million of readily available cash (after Fitch's restriction of
2.5% of revenue for working-capital adjustments) and a GBP261
million fully undrawn committed revolving credit facility (RCF)
maturing in March 2027. Fitch forecasts Kier to generate positive
FCF across FY25-FY28.
Debt Structure: Kier's capital structure at FYE24 comprised a RCF
to be resized to GBP150 million from January 2025 onwards and
GBP43.6 million US private placement notes maturing in January
2025, a project finance loan of GBP15.2 million, which Kier plans
to repay in FY25, and a GBP250 million new senior unsecured bond
with a 2029 maturity.
Issuer Profile
Kier provides specialist design and build capabilities in E&C. It
caters across various business divisions including highways, power,
telecoms, buildings, rail and water.
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
----------- ------ -------- -----
Kier Group Plc LT IDR BB+ Affirmed BB+
senior unsecured LT BB+ Affirmed RR4 BB+
NEW CINEWORLD: Moody's Affirms 'B3' CFR & Rates New Term Loan 'B3'
------------------------------------------------------------------
Moody's Ratings has affirmed the B3 corporate family rating and
B3-PD probability of default rating of NEW CINEWORLD MIDCO LIMITED
(Cineworld or the company). Concurrently, Moody's assigned a B3
rating on the new $1.9 billion backed senior secured first lien
term loan due 2031 as well as a Ba3 rating on the new $350 million
backed super senior secured first lien revolving credit facility
(RCF) due 2029 at Crown Finance US, Inc. level. The outlook for
both entities remains stable.
RATINGS RATIONALE
Cineworld's B3 CFR reflects (1) the company's scale and leadership
position as an international cinema operator, with strong presence
in the US and UK; (2) Moody's expectation of a gradual recovery in
attendance levels combined with recliner conversion and strategic
initiatives; (3) the company's relatively good performance
notwithstanding the impact from the Screen Actors Guild-American
Federation of Television and Radio Artists (SAG-AFTRA) strike
causing shifts in releases to 2025 from 2024; and (4) the role of
cinema operators as an essential part of studio's content
distribution, with the adherence to a theatrical windows of at
least 45 days for big studio productions, up to 100 days for
successful blockbusters and 31 days for small productions.
In contrast, the rating is constrained by: (1) the unpredictability
of movies' success at the box office, contingent on release quality
and timing, broad appeal, and marketing; (2) ongoing secular trends
and competitive pressures from alternative entertainment options,
such as on-demand streaming services and online gaming, as consumer
viewing behaviour continues to shift and become more fragmented;
(3) the high degree of dependency on uninterrupted studio releases
of popular blockbusters and a box office that remains well below
its historical peak; (4) high fixed costs associated with
long-tenured leases despite recent restructuring plan in the UK and
Ireland, within the context of overcapacity in the industry; (5)
exposure to cost and labour inflation and energy prices; (6) the
impact from cost conscious consumers reducing out-of-home
entertainment amid affordable subscription-based streaming
services; (7) limited track record of adhering to the stated
financial policy.
Following a weak first half of 2024 due to impact of the SAG-AFTRA
strike, Moody's expect the second half of the year to be stronger
leveraging from the performance in the third quarter and the strong
movie slate for the remainder of the year. In the third quarter,
the company generated $1 billion of revenues and $157 million of
company's adjusted EBITDA (after cash rent and net of deferrals),
despite admissions decreasing by 14% from the strong comparable
quarter in 2023. This was due to the successful increase in Average
Ticket Prices (ATP) and Spend per Patron (SPP), setting a new
record for the highest increase for a quarter in the company's
history.
Pro forma for the proposed refinancing, Cineworld's Gross Debt/
EBITDA leverage will be 6.0x as of LTM September 2024 and Moody's
expect it to reduce toward 5.7x for the full year 2024 taking into
account the strong movie slate expected for the remainder of the
year. In addition, including the contribution from the UK lease
restructuring and recliner conversions, Moody's expect pro forma
Moody's adjusted gross leverage to reduce below 5.0x in 2025.
Though the industry continues to be pressured by growing secular
trends Moody's believe that given a strong slate of blockbuster
titles, cinemas will continue to appeal to consumers but the
industry's longer term evolution is unclear at present.
LIQUIDITY
Cineworld's liquidity position is adequate. As of June 2024, the
company reported a cash balance of around $472 million, which
includes the $242 million proceeds from the rights issuance (net of
transaction and backstop fees) to pre-fund the recliner conversion
in the US. In addition, pro-forma for the refinancing, the company
will have $350 million available under its new $350 million backed
super senior secured first lien revolving credit facility (RCF) due
2029, subject to 30% springing covenant and net leverage ratio
testing.
STRUCTURAL CONSIDERATIONS
The Ba3 rating on the $350 million backed super senior secured
first lien RCF reflects its seniority in the capital structure. The
B3 rating on the backed senior secured first lien new term loan
facility is at the same level as the long term corporate family
rating (CFR) reflecting its preponderance in Cineworld's total
financial debt.
COVENANTS
Moody's have reviewed the marketing draft terms for the new credit
facilities. Notable terms include the following:
Guarantor coverage will be at least 80% of consolidated EBITDA
(determined in accordance with the agreement) and 80% of
consolidated assets. Security will be granted over all
substantially all assets, subject to the security principles.
Incremental facilities are permitted up to the greater of $600
million and 1.00x consolidated EBITDA, plus any available capacity
under the ratio debt baskets.
Unlimited pari passu debt is permitted up to a first lien net
leverage ratio of 3.50x, and unlimited unsecured debt is permitted
subject to a total net leverage ratio of 5.00x or a 2.00x fixed
charge coverage ratio. All restricted payments are permitted if
total net leverage is 2.75x or lower, and all restricted
investments are permitted if total net leverage is 3.00x or lower.
Asset sale proceeds are only required to be applied in full
(subject to exceptions) where secured net leverage is 2.85x or
greater.
Adjustments to consolidated EBITDA include the full run rate of
cost savings and synergies, capped at 25% of consolidated EBITDA
and with a look forward period of 24 months.
The proposed terms, and the final terms may be materially
different.
OUTLOOK
The stable outlook reflects Moody's expectation of a continued
gradual recovery in cinema attendance levels leading to margin
expansion, strengthening leverage and coverage, as well as free
cash flow generation by 2025/26.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if (1) there is a continued recovery
in revenues and profitability to at least pre-pandemic levels, with
Moody's-adjusted leverage maintained below 4.5x; (2)
Moody's-adjusted FCF to debt increases to positive low to
mid-single digit percentages; and (3) management adheres to
conservative financial policies which include the absence of
debt-funded acquisitions.
The ratings could be downgraded if (1) cinema attendance levels do
not return toward pre-pandemic levels (2) the company's liquidity
profile deteriorates; or (3) the company does not strengthen its
credit profile maintaining its Moody's adjusted debt/EBITDA above
6x and negative free cash flow.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
COMPANY PROFILE
Cineworld plc was listed on the London Stock Exchange between May
2007 and July 2023. The company grew through expansion and
acquisition to become the second-largest cinema group in the world.
Cineworld operates around 8,113 screens across 664 theatres in 10
countries including the US, the UK, Ireland, Poland, the Czech
Republic, Slovakia, Hungary, Bulgaria, Romania and Israel. The
company was delisted on July 28, 2023, as part of the emergence
from bankruptcy and is now controlled by its lenders.
NIKAL LTD: Begbies Traynor Named as Joint Administrators
--------------------------------------------------------
Nikal Ltd was placed into administration proceedings in the High
Court of Justice Business and Property Courts in Manchester,
Insolvency & Companies List (ChD), Court Number:
CR-2024-MAN-001350, and Paul Stanley and Mark Weekes of Begbies
Traynor (Central) LLP were appointed as administrators on Oct. 17,
2024.
Nikal Ltd operates in the buying and selling of own real estate
sector. Its registered office is at Mynshulls House, 14 Cateaton
Street, Manchester, M3 1SQ.
The joint administrators can be reached at:
Paul Stanley
Mark Weekes
Begbies Traynor (Central) LLP
340 Deansgate, Manchester
M3 4LY
Any person who requires further information may contact:
Dale Taylor
Begbies Traynor (Central) LLP
Email: Dale.Taylor@btguk.com
Tel No: 0161 837 1700
PAVILLION MORTGAGES 2024-1: Fitch Assigns B(EXP) Rating on F Notes
------------------------------------------------------------------
Fitch Ratings has assigned Pavillion Mortgages 2024-1 PLC's
(Pavillion 2024-1) notes expected ratings.
The assignment of final ratings is contingent on the receipt of
final documents confirming to information already received.
Entity/Debt Rating
----------- ------
Pavillion Mortgages
2024-1 PLC
A XS2903327885 LT AAA(EXP)sf Expected Rating
B XS2903328263 LT AA-(EXP)sf Expected Rating
C XS2903337926 LT A(EXP)sf Expected Rating
D XS2903353709 LT BBB(EXP)sf Expected Rating
E XS2903375934 LT BB(EXP)sf Expected Rating
F XS2903389307 LT B(EXP)sf Expected Rating
G XS2903407133 LT NR(EXP)sf Expected Rating
Z XS2903409428 LT NR(EXP)sf Expected Rating
Transaction Summary
Pavillion 2024-1 is a securitisation of UK prime owner-occupied
(OO) mortgages originated by Barclays Bank UK Plc (BBUK) in the UK
between 2013 and 2024. BBUK will remain as legal title holder and
servicer of the assets.
KEY RATING DRIVERS
High Arrears Portfolio: The pool consists of OO mortgages
originated by BBUK since 2013 with a weighted average (WA)
seasoning of 3.4 years. Despite the prime nature of the loans, with
some adverse components such as county court judgements and
restructurings, the pool contains a high level of arrears. Loans
with more than three payments in arrears represent 15.3%.
Nevertheless, Fitch has modelled the pool on the prime matrix and
applied an originator adjustment of 1.0x as borrower and loan
attributes are captured by foreclosure frequency (FF) adjustments.
High Concentration of FTBs: Of the borrowers in the pool, 58.8% are
first-time buyers (FTB). Fitch considers that FTBs are more likely
to suffer underperformance than other borrowers and considers their
concentration in this pool analytically significant. In line with
its criteria, Fitch has applied an upward FF adjustment of 1.4x to
each loan where the borrower is an FTB.
Fixed Interest Rate Hedging Schedule: At closing, 82.9% of the
loans will pay a fixed rate of interest (reverting to a floating
rate), while the notes pay a SONIA-linked floating rate. The issuer
will enter into a swap at closing to mitigate the interest rate
risk arising from the fixed-rate mortgages in the pool. The swap
features a defined notional balance that could lead to over-hedging
in the structure due to defaults or prepayments. This could reduce
available revenue funds in decreasing interest rate scenarios.
Residual Interest Rate Risk: Borrowers may request a further
advance or product switch from BBUK. Product switches granted for
loans less than two payments in arrears and further advances in all
cases will be repurchased from the pool by the seller. BBUK can
also offer short-term fixed-rate products for forbearance reasons
to borrowers in arrears, which can remain in the pool.
To mitigate the risk of a material portion of unhedged fixed-rate
loans in the pool, the issuer will enter into additional hedging
when the proportion of fixed-rate loans exceeds the existing swap
notional by 5% of the outstanding current balance of all loans.
Fitch incorporated in its analysis the exposure to unhedged
product-switches up to the allowed limit.
Non-Payers and Vulnerable Borrowers: Around 6.7% of the pool
represents advances to borrowers that did not make any scheduled
payments over three consecutive months prior to April 2024. Over
the 12 months to April 2024, on average 15% of the borrowers made
no payment in any given month. To address the risk of fluctuating
cash flows and yield compression, Fitch modelled a percentage of
the pool to be on a 0% fixed rate for the life of the transaction.
The non-payers may include borrowers considered vulnerable, and for
that reason litigation proceedings may take longer.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Material increases in the frequency of defaults and loss severity
on defaulted receivables producing losses greater than Fitch's
base-case expectations may result in negative rating action on the
notes. Fitch's analysis revealed that a 15% increase in the WAFF,
along with a 15% decrease in the WA recovery rate (RR), would lead
to downgrades of up to three notches for the class A, B and D
notes, four notches for the class C and E notes, and two notches
for the class F notes.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Stable to improved asset performance driven by stable delinquencies
and defaults would lead to increasing credit enhancement and
potentially upgrades. Fitch found a decrease in the WAFF of 15% and
an increase in the WARR of 15% would lead to upgrades of two
notches for the class B and C notes, three notches for the class D
and E notes and four notches for the class F notes. The class A
notes are at the highest achievable rating on Fitch's scale and
cannot be upgraded.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Fitch was provided with Form ABS Due Diligence-15E (Form 15E) as
prepared by PwC. The third-party due diligence described in Form
15E focused on the data provided in the loan level pool tape
against the original loan files. Fitch considered this information
in its analysis and it did not have an effect on Fitch's analysis
or conclusions.
DATA ADEQUACY
Fitch reviewed the results of a third-party assessment conducted on
the asset portfolio information, and concluded that there were no
findings that affected the rating analysis.
Fitch conducted a review of a small targeted sample of the
originator's origination files and found the information contained
in the reviewed files to be adequately consistent with the
originator's policies and practices and the other information
provided to the agency about the asset portfolio.
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
Pavillion Mortgages 2024-1 PLC has an ESG Relevance Score of '4'
for Human Rights, Community Relations, Access & Affordability due
to the concentration of FTBs, which has a negative impact on the
credit profile, and is relevant to the ratings in conjunction with
other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
SAFEGUARD BIOSYSTEMS: Resolve Advisory Named as Administrators
--------------------------------------------------------------
Safeguard Biosystems Holdings Limited was placed in administration
proceedings in the High Court of Justice, Business & Property
Courts of England & Wales, Insolvency & Companies List (ChD), Court
Number: CR-2024-005824, and Lee Manning and Simon Jagger of Resolve
Advisory Limited were appointed as administrators on Oct. 17, 2024.
Safeguard Biosystems specializes in business support service
activities.
Its registered office is at c/o Quadrant House, Floor 6, 4 Thomas
More Square, London, E1W 1YW.
The joint administrators can be reached at:
Lee Manning
Simon Jagger
Resolve Advisory Limited
22 York Buildings
London, WC2N 6JU
For further information, contact:
The Administrators
Tel No: 020 7702 9775
Alternative contact:
Hashem Kherfan
Email: Hashem.Khefan@resolvegroupuk.com.
ZEUS BIDCO: Moody's Lowers CFR to 'B3', Outlook Negative
--------------------------------------------------------
Moody's Ratings has downgraded Zeus Bidco Limited (Zenith)'s
Corporate Family Rating to B3 from B1, and Zenith Finco Plc's
long-term senior secured rating on its GBP475 million senior
secured notes to Caa1 from B1. The issuers' outlooks are now
negative; these ratings were previously on review for downgrade.
This rating action concludes the review for downgrade initiated on
June 18, 2024.
RATINGS RATIONALE
The downgrade of the CFR to B3 reflects Zenith's high leverage and
significant negative tangible common equity, compounded by the
adverse impact of high volatility in used car prices, in particular
affecting battery electric vehicles (BEVs), which are constraining
the company's profitability, cash flow generation and consequently
debt servicing capacity.
Moody's believe used BEV's price volatility is likely to continue
reflecting that some of the UK government subsidies have been
withdrawn and highly competitive environment. In response to these
adverse trends, Zenith has launched BEV lease extension programs in
the first quarter of 2024 which are likely to moderate but not to
eliminate the adverse impact on earnings from used car price
fluctuations over the medium term.
Zenith's debt to EBITDA leverage has been persistently high and was
at 5.8x as of June 30, 2024 (annualised), which Moody's expect to
remain elevated, absent strengthening of underwriting and better
used BEV price performance. Furthermore, the company continues to
show a significant tangible common equity deficit which is driven
by large amounts of goodwill and intangibles incurred as a result
of the ownership change in 2017. Looking ahead, Moody's expect the
deficit to remain absent an external capital injection.
Zenith does not have any imminent refinancing needs, but almost all
of its borrowings are secured, including its GBP900.8 million drawn
under both of its securitization facilities as at June 30, 2024
with a facility limit of GBP1,075 million following the upsize in
July. At present, the end date of the revolving period of the
facility is in November 2025. Additionally, the company has
bilateral residual value facilities with an outstanding amount of
GBP97.8 million further contributing to very high asset
encumbrance. Its GBP475 million senior secured notes which are
junior to the securitization facilities mature in 2027. As of June
2024, Zenith had a cash balance of GBP42 million, GBP65 million
available under its unutilized revolving credit facility (RCF)
maturing in 2027 and circa GBP170 million committed headroom
available under its securitization facilities. Operating cost
measures are being put in place to preserve the company's cash
position.
The downgrade of the senior secured notes' rating to Caa1 from B1
reflects the downgrade of the CFR and the very high asset
encumbrance by Zenith's securitization facility, which is senior to
the GBP475 million senior secured notes.
OUTLOOK
The negative issuer outlooks reflect the risk related to Zenith's
ability to achieve meaningful deleveraging and improved debt
servicing capacity in the currently challenging operating
environment, primarily characterized by losses in its BEV fleet.
Furthermore, the negative outlooks reflect Zenith's medium-term
debt maturity concentrations in 2027, which present a refinancing
risk, particularly if the company is not able to improve its cash
flows and leverage well in advance of their maturities.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Given the negative outlook, there is no upward pressure on Zenith's
ratings.
However, a stable outlook could develop if the firm's profitability
and interest coverage levels improve and its Debt/EBITDA leverage
declines to at least 5x on a gross debt basis. For the outlook to
return to stable, the company will also need to extend the
revolving period under its securitization facilities, renew its RCF
due in April 2027 well in advance of its maturity, and to
demonstrate a credible plan to refinance its June 2027 bonds at
least eighteen months prior to their maturities. Further, a
material reduction in asset encumbrance and achieving a capital
surplus could drive upwards the bond ratings.
Zenith's CFR could be downgraded if the company continues to
exhibit high earnings volatility and if Moody's conclude that it
will be unable to de-lever on a sustained basis in the next 12
months. The ratings could also be downgraded if refinancing of the
RCF is not achieved at least eighteen months prior to its
maturity.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Finance
Companies published in July 2024.
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X X X X X X X X
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[*] BOND PRICING: For the Week October 21 to October 25, 2024
-------------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
Altice France Holding 10.500 5/15/2027 USD 31.558
NCO Invest SA 10.000 12/30/2026 EUR 0.346
AFE SA SICAV-RAIF 11.131 7/15/2030 EUR 45.028
NCO Invest SA 10.000 12/30/2026 EUR 0.138
Turkiye Government Bo 10.400 10/13/2032 TRY 47.750
Ferralum Metals Group 10.000 12/30/2026 EUR 30.000
Fastator AB 12.500 9/26/2025 SEK 37.963
Codere Finance 2 Luxe 12.750 11/30/2027 EUR 0.682
Fastator AB 12.500 9/25/2026 SEK 32.915
Codere Finance 2 Luxe 11.000 9/30/2026 EUR 44.041
Oscar Properties Hold 11.270 7/5/2024 SEK 0.109
IOG Plc 12.679 9/22/2025 EUR 4.917
Avangardco Investment 10.000 10/29/2018 USD 0.186
UkrLandFarming PLC 10.875 3/26/2018 USD 1.913
Tinkoff Bank JSC Via 11.002 USD 42.875
Marginalen Bank Banka 12.695 SEK 40.002
Codere Finance 2 Luxe 13.625 11/30/2027 USD 1.000
Saderea DAC 12.500 11/30/2026 USD 49.458
Altice France Holding 10.500 5/15/2027 USD 30.977
Privatbank CJSC Via U 11.000 2/9/2021 USD 0.500
Plusplus Capital Fina 11.000 7/29/2026 EUR 7.247
Immigon Portfolioabba 10.055 EUR 15.562
Bilt Paper BV 10.360 USD 0.676
Fastator AB 12.500 9/24/2027 SEK 41.853
Privatbank CJSC Via U 10.250 1/23/2018 USD 3.588
Codere Finance 2 Luxe 13.625 11/30/2027 USD 1.000
R-Logitech Finance SA 10.250 9/26/2027 EUR 16.433
Codere Finance 2 Luxe 11.000 9/30/2026 EUR 44.858
UkrLandFarming PLC 10.875 3/26/2018 USD 1.913
Elli Investments Ltd 12.250 6/15/2020 GBP 1.115
Sidetur Finance BV 10.000 4/20/2016 USD 0.852
Ilija Batljan Invest 10.007 SEK 10.000
Phosphorus Holdco PLC 10.000 4/1/2019 GBP 0.145
Kvalitena AB publ 10.067 4/2/2024 SEK 45.000
Transcapitalbank JSC 10.000 USD 1.450
Societe Generale SA 22.750 10/17/2024 USD 26.800
JP Morgan Structured 15.500 11/4/2024 USD 49.290
Societe Generale SA 20.000 11/28/2025 USD 11.530
Goldman Sachs Interna 16.288 3/17/2027 USD 23.220
Societe Generale SA 26.640 10/30/2025 USD 1.300
NTRP Via Interpipe Lt 10.250 8/2/2017 USD 1.002
Bulgaria Steel Financ 12.000 5/4/2013 EUR 0.216
Privatbank CJSC Via U 10.875 2/28/2018 USD 4.936
Societe Generale SA 23.500 3/3/2025 USD 43.410
AFE SA SICAV-RAIF 11.131 7/15/2030 EUR 45.028
KPNQwest NV 10.000 3/15/2012 EUR 0.823
Ukraine Government Bo 11.000 4/24/2037 UAH 38.688
Leonteq Securities AG 19.000 11/22/2024 CHF 35.740
UBS AG/London 17.500 2/7/2025 USD 17.800
Evocabank CJSC 11.000 9/27/2025 AMD 0.000
Societe Generale SA 11.000 7/14/2026 USD 16.800
Citigroup Global Mark 25.530 2/18/2025 EUR 0.010
Societe Generale SA 21.000 12/26/2025 USD 26.860
Codere Finance 2 Luxe 12.750 11/30/2027 EUR 0.682
Deutsche Bank AG/Lond 12.780 3/16/2028 TRY 46.301
Deutsche Bank AG/Lond 14.900 5/30/2028 TRY 48.109
Lehman Brothers Treas 10.000 6/11/2038 JPY 0.100
Serica Energy Chinook 12.500 9/27/2019 USD 1.500
Tonon Luxembourg SA 12.500 5/14/2024 USD 2.216
Bulgaria Steel Financ 12.000 5/4/2013 EUR 0.216
Petromena ASA 10.850 11/19/2018 USD 0.622
Ukraine Government Bo 11.000 3/24/2037 UAH 35.920
Bank Vontobel AG 20.000 7/31/2025 CHF 45.000
Bank Vontobel AG 16.000 2/10/2025 CHF 43.500
Bank Vontobel AG 14.500 4/4/2025 CHF 40.300
Raiffeisen Schweiz Ge 16.000 7/4/2025 CHF 45.730
Vontobel Financial Pr 19.250 6/27/2025 EUR 47.900
Landesbank Baden-Wuer 11.500 2/28/2025 EUR 31.800
DZ Bank AG Deutsche Z 18.500 3/28/2025 EUR 38.570
DZ Bank AG Deutsche Z 17.600 6/27/2025 EUR 34.480
Raiffeisen Switzerlan 11.000 1/3/2025 CHF 46.770
Landesbank Baden-Wuer 13.000 4/24/2026 EUR 28.460
Landesbank Baden-Wuer 11.500 4/24/2026 EUR 26.960
Landesbank Baden-Wuer 10.500 4/24/2026 EUR 26.320
Bank Vontobel AG 11.000 4/29/2025 CHF 25.500
Raiffeisen Schweiz Ge 15.000 3/18/2025 CHF 49.670
Bank Vontobel AG 12.000 4/11/2025 CHF 39.300
DZ Bank AG Deutsche Z 10.500 1/22/2025 EUR 23.600
Landesbank Baden-Wuer 15.000 2/28/2025 EUR 29.360
Landesbank Baden-Wuer 19.000 2/28/2025 EUR 27.990
Bank Vontobel AG 12.000 6/17/2025 CHF 32.400
DZ Bank AG Deutsche Z 18.600 3/28/2025 EUR 46.550
BNP Paribas Emissions 24.000 12/30/2024 EUR 45.500
DZ Bank AG Deutsche Z 23.100 12/31/2024 EUR 29.180
Landesbank Baden-Wuer 14.000 6/27/2025 EUR 25.910
Landesbank Baden-Wuer 21.000 6/27/2025 EUR 24.500
Landesbank Baden-Wuer 13.000 6/27/2025 EUR 30.120
Landesbank Baden-Wuer 15.000 1/3/2025 EUR 36.010
Landesbank Baden-Wuer 11.000 1/2/2026 EUR 27.360
Landesbank Baden-Wuer 16.000 1/2/2026 EUR 28.080
Landesbank Baden-Wuer 16.000 6/27/2025 EUR 29.300
DZ Bank AG Deutsche Z 12.700 12/31/2024 EUR 43.820
DZ Bank AG Deutsche Z 22.800 3/28/2025 EUR 46.790
DZ Bank AG Deutsche Z 20.400 3/28/2025 EUR 37.430
Landesbank Baden-Wuer 10.500 1/2/2026 EUR 20.610
Bank Vontobel AG 11.000 4/11/2025 CHF 18.600
Bank Vontobel AG 12.000 3/5/2025 CHF 40.400
DZ Bank AG Deutsche Z 11.500 12/31/2024 EUR 26.850
Bank Vontobel AG 15.000 4/29/2025 CHF 44.800
Bank Julius Baer & Co 18.690 3/7/2025 CHF 44.300
Bank Vontobel AG 14.000 3/5/2025 CHF 10.600
Landesbank Baden-Wuer 16.000 1/3/2025 EUR 28.220
Landesbank Baden-Wuer 19.000 1/3/2025 EUR 26.180
Landesbank Baden-Wuer 22.000 1/3/2025 EUR 24.660
Landesbank Baden-Wuer 25.000 1/3/2025 EUR 23.540
Landesbank Baden-Wuer 16.000 6/27/2025 EUR 25.590
Landesbank Baden-Wuer 19.000 6/27/2025 EUR 26.260
Landesbank Baden-Wuer 18.000 1/3/2025 EUR 44.130
Swissquote Bank SA 24.070 5/6/2025 CHF 51.490
Landesbank Baden-Wuer 16.500 4/28/2025 EUR 30.850
BNP Paribas Emissions 15.000 9/25/2025 EUR 35.810
Leonteq Securities AG 11.000 1/9/2025 CHF 40.600
Landesbank Baden-Wuer 19.000 4/28/2025 EUR 30.680
Leonteq Securities AG 24.000 1/9/2025 CHF 20.370
BNP Paribas Emissions 17.000 3/27/2025 EUR 49.140
BNP Paribas Emissions 19.000 3/27/2025 EUR 50.000
BNP Paribas Emissions 16.000 3/27/2025 EUR 50.240
BNP Paribas Emissions 18.000 3/27/2025 EUR 48.140
BNP Paribas Emissions 20.000 3/27/2025 EUR 49.000
BNP Paribas Emissions 22.000 3/27/2025 EUR 47.270
BNP Paribas Emissions 21.000 3/27/2025 EUR 48.090
Swissquote Bank Europ 25.320 2/26/2025 CHF 35.100
DZ Bank AG Deutsche Z 13.200 3/28/2025 EUR 44.600
DZ Bank AG Deutsche Z 18.900 3/28/2025 EUR 48.140
DZ Bank AG Deutsche Z 21.200 3/28/2025 EUR 44.670
DZ Bank AG Deutsche Z 12.500 12/31/2024 EUR 45.460
DZ Bank AG Deutsche Z 23.600 3/28/2025 EUR 42.110
DZ Bank AG Deutsche Z 16.400 3/28/2025 EUR 44.210
Leonteq Securities AG 20.000 1/22/2025 CHF 22.930
Raiffeisen Schweiz Ge 15.000 1/22/2025 CHF 34.500
Swissquote Bank SA 15.740 10/31/2024 CHF 4.950
Vontobel Financial Pr 16.500 12/31/2024 EUR 28.900
Vontobel Financial Pr 11.250 12/31/2024 EUR 31.950
Vontobel Financial Pr 13.000 12/31/2024 EUR 30.770
Vontobel Financial Pr 14.750 12/31/2024 EUR 29.820
Bank Julius Baer & Co 19.400 1/30/2025 CHF 43.700
Vontobel Financial Pr 18.500 12/31/2024 EUR 28.190
Vontobel Financial Pr 20.250 12/31/2024 EUR 27.520
DZ Bank AG Deutsche Z 16.500 12/27/2024 EUR 38.720
DZ Bank AG Deutsche Z 23.400 12/31/2024 EUR 34.160
Vontobel Financial Pr 26.450 1/24/2025 EUR 31.918
Raiffeisen Schweiz Ge 14.500 1/29/2025 CHF 49.000
Vontobel Financial Pr 10.000 3/28/2025 EUR 46.160
Leonteq Securities AG 24.000 1/16/2025 CHF 29.280
DZ Bank AG Deutsche Z 19.900 12/31/2024 EUR 48.270
Vontobel Financial Pr 20.250 12/31/2024 EUR 33.900
Landesbank Baden-Wuer 12.000 2/27/2026 EUR 25.080
DZ Bank AG Deutsche Z 10.500 3/28/2025 EUR 47.500
Landesbank Baden-Wuer 11.000 2/27/2026 EUR 24.400
Landesbank Baden-Wuer 10.500 4/28/2025 EUR 32.550
Bank Vontobel AG 13.500 1/8/2025 CHF 3.900
DZ Bank AG Deutsche Z 19.000 12/31/2024 EUR 32.990
DZ Bank AG Deutsche Z 17.600 12/31/2024 EUR 48.040
DZ Bank AG Deutsche Z 14.200 12/31/2024 EUR 23.050
DZ Bank AG Deutsche Z 11.400 12/31/2024 EUR 42.110
DZ Bank AG Deutsche Z 12.800 12/31/2024 EUR 39.700
DZ Bank AG Deutsche Z 14.200 12/31/2024 EUR 37.620
DZ Bank AG Deutsche Z 15.700 12/31/2024 EUR 35.840
DZ Bank AG Deutsche Z 17.300 12/31/2024 EUR 34.310
Raiffeisen Switzerlan 16.000 3/4/2025 CHF 21.460
Vontobel Financial Pr 16.000 3/28/2025 EUR 41.590
Vontobel Financial Pr 15.750 3/28/2025 EUR 48.290
DZ Bank AG Deutsche Z 14.300 12/31/2024 EUR 41.770
Bank Julius Baer & Co 17.100 3/19/2025 CHF 47.850
Landesbank Baden-Wuer 14.000 1/24/2025 EUR 27.030
Leonteq Securities AG 20.000 3/11/2025 CHF 20.490
Raiffeisen Switzerlan 16.500 3/11/2025 CHF 20.660
Raiffeisen Switzerlan 13.000 3/11/2025 CHF 45.600
Bank Vontobel AG 14.250 5/30/2025 USD 48.700
Raiffeisen Schweiz Ge 13.000 3/25/2025 CHF 44.080
BNP Paribas Emissions 13.000 12/30/2024 EUR 41.510
UniCredit Bank GmbH 16.600 12/31/2024 EUR 45.520
HSBC Trinkaus & Burkh 15.200 12/30/2024 EUR 22.720
HSBC Trinkaus & Burkh 13.100 12/30/2024 EUR 24.360
HSBC Trinkaus & Burkh 11.100 12/30/2024 EUR 26.510
HSBC Trinkaus & Burkh 11.600 3/28/2025 EUR 27.810
Landesbank Baden-Wuer 16.000 11/22/2024 EUR 30.350
Vontobel Financial Pr 12.750 12/31/2024 EUR 48.480
Landesbank Baden-Wuer 11.000 3/28/2025 EUR 25.690
Landesbank Baden-Wuer 15.000 3/28/2025 EUR 23.380
UniCredit Bank GmbH 19.800 12/31/2024 EUR 46.330
Landesbank Baden-Wuer 10.000 6/27/2025 EUR 28.940
Landesbank Baden-Wuer 14.000 6/27/2025 EUR 26.400
HSBC Trinkaus & Burkh 18.100 12/30/2024 EUR 17.080
HSBC Trinkaus & Burkh 15.700 12/30/2024 EUR 18.620
HSBC Trinkaus & Burkh 16.300 12/30/2024 EUR 22.040
HSBC Trinkaus & Burkh 13.400 3/28/2025 EUR 26.310
Landesbank Baden-Wuer 13.000 3/28/2025 EUR 24.280
UniCredit Bank GmbH 15.700 12/31/2024 EUR 47.170
Landesbank Baden-Wuer 15.000 1/3/2025 EUR 26.590
DZ Bank AG Deutsche Z 19.100 12/31/2024 EUR 39.600
DZ Bank AG Deutsche Z 13.400 12/31/2024 EUR 39.760
DZ Bank AG Deutsche Z 21.300 12/31/2024 EUR 36.400
Leonteq Securities AG 21.000 10/30/2024 CHF 27.690
Landesbank Baden-Wuer 10.500 11/22/2024 EUR 38.360
Leonteq Securities AG 25.000 1/3/2025 CHF 38.700
Landesbank Baden-Wuer 10.000 11/22/2024 EUR 39.910
Leonteq Securities AG 21.000 1/3/2025 CHF 19.390
UBS AG/London 12.000 11/4/2024 EUR 43.500
DZ Bank AG Deutsche Z 10.500 12/27/2024 EUR 41.020
BNP Paribas Emissions 14.000 12/30/2024 EUR 44.990
UniCredit Bank GmbH 18.600 12/31/2024 EUR 44.110
UniCredit Bank GmbH 19.500 12/31/2024 EUR 42.460
BNP Paribas Emissions 16.000 12/30/2024 EUR 29.310
DZ Bank AG Deutsche Z 14.000 12/20/2024 EUR 43.870
BNP Paribas Emissions 13.000 12/30/2024 EUR 48.730
BNP Paribas Emissions 17.000 12/30/2024 EUR 41.770
BNP Paribas Emissions 17.000 12/30/2024 EUR 28.390
DZ Bank AG Deutsche Z 11.000 12/20/2024 EUR 48.910
Armenian Economy Deve 11.000 10/3/2025 AMD 0.000
Finca Uco Cjsc 13.000 5/30/2025 AMD 9.700
Corner Banca SA 20.000 3/5/2025 USD 49.630
UniCredit Bank GmbH 19.100 12/31/2024 EUR 36.600
HSBC Trinkaus & Burkh 12.500 12/30/2024 EUR 46.830
HSBC Trinkaus & Burkh 11.100 12/30/2024 EUR 25.170
HSBC Trinkaus & Burkh 13.300 6/27/2025 EUR 27.710
HSBC Trinkaus & Burkh 11.300 6/27/2025 EUR 28.900
HSBC Trinkaus & Burkh 15.600 11/22/2024 EUR 20.810
HSBC Trinkaus & Burkh 12.600 11/22/2024 EUR 23.020
HSBC Trinkaus & Burkh 15.100 12/30/2024 EUR 41.610
HSBC Trinkaus & Burkh 15.000 3/28/2025 EUR 24.730
HSBC Trinkaus & Burkh 10.400 10/25/2024 EUR 24.610
HSBC Trinkaus & Burkh 10.300 11/22/2024 EUR 25.340
HSBC Trinkaus & Burkh 16.100 12/30/2024 EUR 21.600
HSBC Trinkaus & Burkh 15.900 3/28/2025 EUR 24.340
HSBC Trinkaus & Burkh 12.800 10/25/2024 EUR 22.110
UniCredit Bank GmbH 10.700 2/28/2025 EUR 30.910
UniCredit Bank GmbH 11.700 2/28/2025 EUR 29.880
UniCredit Bank GmbH 20.000 12/31/2024 EUR 35.270
DZ Bank AG Deutsche Z 22.500 12/31/2024 EUR 46.280
Landesbank Baden-Wuer 14.000 10/24/2025 EUR 26.190
Landesbank Baden-Wuer 10.000 10/24/2025 EUR 26.200
UBS AG/London 11.000 1/20/2025 EUR 49.950
HSBC Trinkaus & Burkh 11.250 6/27/2025 EUR 47.090
HSBC Trinkaus & Burkh 10.250 6/27/2025 EUR 34.950
Zurcher Kantonalbank 10.500 2/4/2025 EUR 48.820
Bank Vontobel AG 20.500 11/4/2024 CHF 25.000
Leonteq Securities AG 10.340 8/31/2026 EUR 45.470
UniCredit Bank GmbH 12.800 2/28/2025 EUR 28.770
UniCredit Bank GmbH 14.500 11/22/2024 EUR 42.180
UniCredit Bank GmbH 14.500 2/28/2025 EUR 43.730
UniCredit Bank GmbH 13.800 2/28/2025 EUR 45.280
Landesbank Baden-Wuer 11.500 10/25/2024 EUR 57.110
Landesbank Baden-Wuer 13.000 10/25/2024 EUR 52.540
HSBC Trinkaus & Burkh 14.800 12/30/2024 EUR 45.200
HSBC Trinkaus & Burkh 11.400 12/30/2024 EUR 25.880
HSBC Trinkaus & Burkh 15.100 3/28/2025 EUR 25.190
HSBC Trinkaus & Burkh 13.400 6/27/2025 EUR 28.030
HSBC Trinkaus & Burkh 14.400 3/28/2025 EUR 12.740
HSBC Trinkaus & Burkh 13.100 10/25/2024 EUR 22.720
HSBC Trinkaus & Burkh 12.800 11/22/2024 EUR 23.620
HSBC Trinkaus & Burkh 10.000 11/22/2024 EUR 26.820
HSBC Trinkaus & Burkh 13.900 12/30/2024 EUR 46.170
HSBC Trinkaus & Burkh 12.800 3/28/2025 EUR 47.810
HSBC Trinkaus & Burkh 14.100 12/30/2024 EUR 23.480
HSBC Trinkaus & Burkh 11.500 6/27/2025 EUR 29.610
HSBC Trinkaus & Burkh 15.200 12/30/2024 EUR 15.670
HSBC Trinkaus & Burkh 10.200 10/25/2024 EUR 26.110
HSBC Trinkaus & Burkh 15.700 11/22/2024 EUR 21.270
HSBC Trinkaus & Burkh 12.750 6/27/2025 EUR 15.830
HSBC Trinkaus & Burkh 11.750 6/27/2025 EUR 48.960
HSBC Trinkaus & Burkh 15.500 6/27/2025 EUR 39.620
UniCredit Bank GmbH 19.700 12/31/2024 EUR 33.350
HSBC Trinkaus & Burkh 22.250 6/27/2025 EUR 17.780
HSBC Trinkaus & Burkh 17.500 6/27/2025 EUR 15.940
BNP Paribas Emissions 17.000 12/30/2024 EUR 46.890
HSBC Trinkaus & Burkh 14.500 12/30/2024 EUR 26.990
Vontobel Financial Pr 13.000 12/31/2024 EUR 33.900
Vontobel Financial Pr 16.750 12/31/2024 EUR 31.510
Landesbank Baden-Wuer 16.000 10/25/2024 EUR 45.400
DZ Bank AG Deutsche Z 15.500 12/31/2024 EUR 35.460
Vontobel Financial Pr 20.000 12/31/2024 EUR 44.530
DZ Bank AG Deutsche Z 17.100 12/31/2024 EUR 43.770
Leonteq Securities AG 24.000 1/13/2025 CHF 7.310
DZ Bank AG Deutsche Z 18.200 3/28/2025 EUR 48.460
Vontobel Financial Pr 17.250 12/31/2024 EUR 46.680
Vontobel Financial Pr 14.250 12/31/2024 EUR 32.480
Vontobel Financial Pr 12.500 12/31/2024 EUR 33.790
Vontobel Financial Pr 10.750 12/31/2024 EUR 35.280
HSBC Trinkaus & Burkh 13.400 12/30/2024 EUR 48.120
HSBC Trinkaus & Burkh 16.000 3/28/2025 EUR 24.760
HSBC Trinkaus & Burkh 11.000 3/28/2025 EUR 28.230
HSBC Trinkaus & Burkh 16.300 3/28/2025 EUR 12.790
Raiffeisen Schweiz Ge 20.000 10/16/2024 CHF 20.050
Vontobel Financial Pr 11.000 12/31/2024 EUR 35.350
Vontobel Financial Pr 14.750 12/31/2024 EUR 32.600
Corner Banca SA 10.000 11/8/2024 CHF 43.530
HSBC Trinkaus & Burkh 17.400 12/30/2024 EUR 21.610
UniCredit Bank GmbH 18.500 12/31/2024 EUR 40.710
UniCredit Bank GmbH 19.300 12/31/2024 EUR 39.330
Leonteq Securities AG 25.000 12/11/2024 CHF 31.300
BNP Paribas Issuance 19.000 9/18/2026 EUR 0.980
Landesbank Baden-Wuer 12.000 1/24/2025 EUR 26.500
UniCredit Bank GmbH 18.800 12/31/2024 EUR 34.220
HSBC Trinkaus & Burkh 10.250 12/30/2024 EUR 35.030
HSBC Trinkaus & Burkh 17.500 12/30/2024 EUR 35.250
Leonteq Securities AG 25.000 12/18/2024 CHF 36.980
Landesbank Baden-Wuer 15.500 1/24/2025 EUR 22.980
BNP Paribas Issuance 20.000 9/18/2026 EUR 31.500
Vontobel Financial Pr 11.000 12/31/2024 EUR 28.570
Landesbank Baden-Wuer 18.000 1/3/2025 EUR 24.830
DZ Bank AG Deutsche Z 10.750 12/27/2024 EUR 27.910
DZ Bank AG Deutsche Z 20.500 12/31/2024 EUR 47.060
Landesbank Baden-Wuer 14.500 11/22/2024 EUR 31.860
Landesbank Baden-Wuer 12.000 1/3/2025 EUR 30.880
Vontobel Financial Pr 18.000 12/31/2024 EUR 49.330
HSBC Trinkaus & Burkh 12.900 12/30/2024 EUR 49.040
Landesbank Baden-Wuer 11.000 11/22/2024 EUR 38.300
Landesbank Baden-Wuer 18.000 11/22/2024 EUR 27.610
HSBC Trinkaus & Burkh 19.600 12/30/2024 EUR 19.980
Landesbank Baden-Wuer 15.000 1/3/2025 EUR 49.820
UniCredit Bank GmbH 11.000 11/22/2024 EUR 45.510
UniCredit Bank GmbH 14.200 11/22/2024 EUR 23.680
UniCredit Bank GmbH 10.900 11/22/2024 EUR 31.540
UniCredit Bank GmbH 10.200 11/22/2024 EUR 47.120
UniCredit Bank GmbH 10.000 11/22/2024 EUR 33.350
UniCredit Bank GmbH 11.900 11/22/2024 EUR 29.960
UniCredit Bank GmbH 10.400 2/28/2025 EUR 40.450
UniCredit Bank GmbH 13.900 11/22/2024 EUR 46.380
UniCredit Bank GmbH 19.300 12/31/2024 EUR 37.940
UniCredit Bank GmbH 13.000 11/22/2024 EUR 28.550
Bank Vontobel AG 15.500 11/18/2024 CHF 30.600
UniCredit Bank GmbH 14.700 11/22/2024 EUR 44.230
UniCredit Bank GmbH 12.900 11/22/2024 EUR 24.670
Ameriabank CJSC 10.000 2/20/2025 AMD 0.000
Leonteq Securities AG 24.000 12/27/2024 CHF 37.900
Leonteq Securities AG 23.000 12/27/2024 CHF 32.360
UniCredit Bank GmbH 18.000 12/31/2024 EUR 31.140
UniCredit Bank GmbH 18.800 12/31/2024 EUR 30.440
UniCredit Bank GmbH 10.700 11/22/2024 EUR 38.130
UniCredit Bank GmbH 11.600 2/28/2025 EUR 38.430
ACBA Bank OJSC 11.000 12/1/2025 AMD 0.000
Leonteq Securities AG 10.000 11/12/2024 CHF 44.900
Bank Vontobel AG 10.000 11/4/2024 EUR 45.700
Bank Vontobel AG 12.000 11/11/2024 CHF 48.600
HSBC Trinkaus & Burkh 13.500 12/30/2024 EUR 44.660
Inecobank CJSC 10.000 4/28/2025 AMD 0.000
Bank Julius Baer & Co 12.720 2/17/2025 CHF 28.750
UBS AG/London 10.000 3/23/2026 USD 34.060
UniCredit Bank GmbH 17.200 12/31/2024 EUR 31.890
UniCredit Bank GmbH 19.600 12/31/2024 EUR 29.790
ACBA Bank OJSC 11.500 3/1/2026 AMD 0.000
National Mortgage Co 12.000 3/30/2026 AMD 0.000
UniCredit Bank GmbH 10.500 4/7/2026 EUR 31.230
UniCredit Bank GmbH 10.500 12/22/2025 EUR 37.610
Finca Uco Cjsc 12.000 2/10/2025 AMD 0.000
UniCredit Bank GmbH 16.550 8/18/2025 USD 19.990
Raiffeisen Schweiz Ge 10.000 12/31/2024 CHF 48.610
Landesbank Baden-Wuer 11.000 1/3/2025 EUR 21.940
Landesbank Baden-Wuer 13.000 1/3/2025 EUR 20.240
UBS AG/London 15.750 10/21/2024 CHF 29.680
UBS AG/London 21.600 8/2/2027 SEK 22.080
UBS AG/London 11.750 12/9/2024 EUR 48.250
Erste Group Bank AG 14.500 5/31/2026 EUR 32.750
UBS AG/London 14.500 10/14/2024 CHF 31.050
Leonteq Securities AG 13.000 10/21/2024 EUR 46.050
UBS AG/London 20.000 11/29/2024 USD 17.810
Armenian Economy Deve 10.500 5/4/2025 AMD 0.000
Landesbank Baden-Wuer 10.000 10/25/2024 EUR 27.660
Landesbank Baden-Wuer 11.500 10/25/2024 EUR 24.390
UniCredit Bank GmbH 10.700 2/3/2025 EUR 16.850
UniCredit Bank GmbH 10.700 2/17/2025 EUR 17.140
Credit Agricole Corpo 10.200 12/13/2027 TRY 48.271
Finca Uco Cjsc 13.000 11/16/2024 AMD 0.000
EFG International Fin 11.120 12/27/2024 EUR 42.720
Lehman Brothers Treas 13.500 11/28/2008 USD 0.100
Lehman Brothers Treas 15.000 3/30/2011 EUR 0.100
Lehman Brothers Treas 14.900 9/15/2008 EUR 0.100
Teksid Aluminum Luxem 12.375 7/15/2011 EUR 0.619
Lehman Brothers Treas 11.000 12/19/2011 USD 0.100
Sidetur Finance BV 10.000 4/20/2016 USD 0.852
Lehman Brothers Treas 10.500 8/9/2010 EUR 0.100
Lehman Brothers Treas 10.000 3/27/2009 USD 0.100
Lehman Brothers Treas 11.000 6/29/2009 EUR 0.100
Lehman Brothers Treas 12.000 7/13/2037 JPY 0.100
BLT Finance BV 12.000 2/10/2015 USD 10.500
Bilt Paper BV 10.360 USD 0.676
Banco Espirito Santo 10.000 12/6/2021 EUR 0.058
Lehman Brothers Treas 16.800 8/21/2009 USD 0.100
Lehman Brothers Treas 11.250 12/31/2008 USD 0.100
Lehman Brothers Treas 10.600 4/22/2014 MXN 0.100
Lehman Brothers Treas 16.000 11/9/2008 USD 0.100
Lehman Brothers Treas 10.442 11/22/2008 CHF 0.100
Lehman Brothers Treas 17.000 6/2/2009 USD 0.100
Lehman Brothers Treas 23.300 9/16/2008 USD 0.100
Lehman Brothers Treas 11.000 7/4/2011 USD 0.100
Lehman Brothers Treas 12.000 7/4/2011 EUR 0.100
Lehman Brothers Treas 14.100 11/12/2008 USD 0.100
Lehman Brothers Treas 13.000 12/14/2012 USD 0.100
Lehman Brothers Treas 11.000 12/20/2017 AUD 0.100
Lehman Brothers Treas 11.000 12/20/2017 AUD 0.100
Phosphorus Holdco PLC 10.000 4/1/2019 GBP 0.145
Privatbank CJSC Via U 10.875 2/28/2018 USD 4.936
PA Resources AB 13.500 3/3/2016 SEK 0.124
Tonon Luxembourg SA 12.500 5/14/2024 USD 2.216
Elli Investments Ltd 12.250 6/15/2020 GBP 1.115
Ukraine Government Bo 11.000 4/1/2037 UAH 35.909
Ukraine Government Bo 11.000 4/8/2037 UAH 35.901
Ukraine Government Bo 11.000 4/20/2037 UAH 36.043
Lehman Brothers Treas 13.000 7/25/2012 EUR 0.100
Lehman Brothers Treas 18.250 10/2/2008 USD 0.100
Lehman Brothers Treas 14.900 11/16/2010 EUR 0.100
Lehman Brothers Treas 16.000 10/8/2008 CHF 0.100
Lehman Brothers Treas 11.000 2/16/2009 CHF 0.100
Lehman Brothers Treas 10.000 2/16/2009 CHF 0.100
Lehman Brothers Treas 13.000 2/16/2009 CHF 0.100
Lehman Brothers Treas 11.000 12/20/2017 AUD 0.100
Lehman Brothers Treas 10.000 10/23/2008 USD 0.100
Lehman Brothers Treas 10.000 10/22/2008 USD 0.100
Lehman Brothers Treas 16.000 10/28/2008 USD 0.100
Lehman Brothers Treas 12.400 6/12/2009 USD 0.100
Lehman Brothers Treas 11.750 3/1/2010 EUR 0.100
Lehman Brothers Treas 16.200 5/14/2009 USD 0.100
Lehman Brothers Treas 10.000 5/22/2009 USD 0.100
Lehman Brothers Treas 15.000 6/4/2009 CHF 0.100
Lehman Brothers Treas 13.500 6/2/2009 USD 0.100
Lehman Brothers Treas 10.000 6/17/2009 USD 0.100
Lehman Brothers Treas 11.000 7/4/2011 CHF 0.100
Lehman Brothers Treas 16.000 12/26/2008 USD 0.100
Lehman Brothers Treas 13.432 1/8/2009 ILS 0.100
Lehman Brothers Treas 13.150 10/30/2008 USD 0.100
Ukraine Government Bo 11.000 2/16/2037 UAH 35.988
Ukraine Government Bo 11.000 4/23/2037 UAH 35.887
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.
Copyright 2024. All rights reserved. ISSN 1529-2754.
This material is copyrighted and any commercial use, resale or
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contact Peter Chapman at 215-945-7000.
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