/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/241104.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, November 4, 2024, Vol. 25, No. 221 Headlines A U S T R I A OSTREGION: S&P Affirms 'B+' Debt Rating on on Steady Performance A Z E R B A I J A N XALQ BANK: S&P Withdraws 'B/B' Issuer Credit Ratings I R E L A N D ADAGIO VI: S&P Affirms 'B-(sf)' Rating on Class F Notes ARAGVI FINANCE: Fitch Assigns 'B+(EXP)' Rating on $500MM Eurobonds RRE 22 LOAN: S&P Assigns BB-(sf) Rating on EUR18MM Class D Notes L U X E M B O U R G ACCORINVEST GROUP: Fitch Gives 'BB' Final Rating on EUR650MM Notes S P A I N NEINOR HOMES: S&P Assigns 'B+' LongTerm ICR, Outlook Stable U N I T E D K I N G D O M AVON FINANCE 4: S&P Affirms 'CCC' Rating on Class X-Dfrd Notes DOWSON PLC 2024-1: S&P Assigns 'B' Rating on Class X-Dfrd Notes EALBROOK MORTGAGE 2024-1: Moody's Assigns Ba1 Rating to Cl. E Notes HOCHANDA GLOBAL: Leonard Curtis Named as Joint Administrators ITHACA ENERGY: Fitch Assigns 'BB-' Final Rating on $750MM Notes PSG SIPP: Evelyn Partners Named as Joint Administrators SPORTRADAR MANAGEMENT: Fitch Affirms & Withdraws 'BB-' LongTerm IDR VICTORIA PLC: S&P Lowers LongTerm ICR to 'B-', Outlook Negative X X X X X X X X [*] BOND PRICING: For the Week October 28 to November 1, 2024 - - - - - ============= A U S T R I A ============= OSTREGION: S&P Affirms 'B+' Debt Rating on on Steady Performance ---------------------------------------------------------------- S&P Global Ratings affirmed its issue rating and its Underlying Rating (SPUR) on Ostregion's debt at 'B+'. The recovery rating remains '4'. The stable outlook reflects S&P's expectation that the project will continue to operate in line with its life cycle budget, without major penalties or unavailability deductions. Austria-based special-purpose vehicle Ostregion issued EUR775 million of senior secured bonds and loans to design and build a 52-kilometer (km) stretch of motorway north of Vienna under a 33-year public-private partnership concession with the Austrian Roads Agency, Autobahnen-undSchnellstrassen-Finanzierungs-AG (ASFINAG; AA+/Positive /A-1+) expiring in 2039. The issuer on-lent the proceeds to Bonaventura Infrastruktur Gmbh (Bonaventura or ProjectCo), the project concessionaire. Since the construction works were completed in January 2010, the latter operates and maintains the road. Operation and maintenance have been subcontracted to Bonaventura Services GmbH. ProjectCo is compensated by ASFINAG in the form of availability and shadow tolls payments. One or more of the credit ratings referenced in this article was assigned by deviating from S&P Global Ratings' published criteria. S&P said, "The road remains in good condition and revenues are in line with our expectation, sustaining the current rating. During the first half of 2024, the average availability was 99.1%. In addition, Ostregion did not incur in any deductions. This trend supports availability payments, which account on average for about 70% of total revenues during the life of the debt, and thus cash flow stability. For the remaining 30% of revenue, we expect traffic will remain in band two during most of the life of the debt, which limits rating upside. "The road's banding mechanism remunerates traffic only if volumes are in bands one, three, and five. Under our forecasts, light and heavy vehicles will remain within band two and no traffic revenue will be derived from band three during most of the life of the debt due to the steep and sustained increase in traffic required to reach it. During the first half of 2024 -- on the back of the -0.4% GDP we expect for Austria for the full year -- light vehicles increased by 0.9% and heavy vehicles decreased by 2.5% compared to the same period in 2023, positioning light and heavy vehicles within band two. "Under our forecast, DSCRs remain close to 1.0x throughout most of the term of the debt but the significant cash balances trapped within the structure will support debt service payments, if needed. Our base case produces a minimum DSCR of 0.93x in 2031 and median DSCR of 1.0x until debt maturity. Financial ratios are tight due to a combination of lower traffic volumes than initially envisioned at financial close and an increase in life cycle costs after the new life cycle reprofiling performed in 2022. Nevertheless, as of June 30, 2024, Ostregion holds close to EUR31.6 million in cash since it has been in lockup for several years. There is also an overfunded MRA with a total balance of EUR17 million and a debt service reserve account (DSRA) with a balance of EUR24.5 million. "Our assessment of moderate resiliency deviates from S&P Global Ratings' published criteria. The S&P Global Ratings downside case produces a minimum DSCR of 0.87x and a median DSCR of 0.93x. Nevertheless, we assess the resiliency under the downside as moderate even though the DSCRs are below 1.0x during most of the term of the debt, which is a deviation from our published General Project Finance Rating Methodology. This is because we incorporate that even if a combination of pessimistic conditions were to occur, the liquidity of the project would not be depleted. We therefore expect the project will be able to meet all financial obligations throughout the life of the debt under our base case and downside case conditions given the cash trapped in the structure. We have therefore affirmed our 'B+' ratings. Our prior assessment of moderate resiliency under the downside without the criteria exception constituted a misapplication of our General Project Finance Rating Methodology but had no impact on the rating. "The stable outlook on the issue rating and SPUR reflects our expectation of a DSCR close to 1.0x throughout the term of the debt and close to 0.95x on a limited number of periods. This is supported by the maintenance of the existing liquidity being available to repay the debt if needed. The stable outlook also reflects our expectation that the project will continue to operate in line with its updated life cycle budget, without major penalties or unavailability deductions. "Although unlikely, we could lower the ratings on Ostregion if DSCRs were to lower materially from current levels, leading us to expect materially lower levels of liquidity. This could materialize, for example, if the life cycle budget or the project's exposure to latent defects were higher than we currently expect. "We could consider raising the ratings if there is a strong financial improvement corroborated by a sustainable increase in the forecast minimum DSCR above 1.05x. This could happen if the expected traffic volumes increased materially to generate revenue from band three, which at this stage seem unlikely." =================== A Z E R B A I J A N =================== XALQ BANK: S&P Withdraws 'B/B' Issuer Credit Ratings ---------------------------------------------------- S&P Global Ratings withdrew its 'B/B' long- and short-term issuer credit ratings on Xalq Bank at the bank's request. S&P's outlook on the ratings at the time of withdrawal was positive. ============= I R E L A N D ============= ADAGIO VI: S&P Affirms 'B-(sf)' Rating on Class F Notes ------------------------------------------------------- S&P Global Ratings raised its credit ratings on Adagio VI CLO DAC's class B-1 and B-2 notes to 'AA+ (sf)' from 'AA (sf)', C notes to 'AA- (sf)' from 'A (sf)', and D notes to 'A- (sf)' from 'BBB (sf)'. At the same time, S&P affirmed its 'AAA (sf)' rating on the class A notes, 'BB (sf)' rating on the class E notes, and 'B- (sf)' rating on the class F notes. The rating actions follow the application of its global corporate CLO criteria and its credit and cash flow analysis of the transaction based on the August 2024 trustee report. Since the closing date in December 2017: -- The weighted-average rating of the portfolio remains at 'B'. -- The portfolio has become slightly more diversified, as the number of performing obligors has increased to 112 from 108. -- The portfolio's weighted-average life has decreased to 3.25 years from 6.24 years. -- The percentage of 'CCC' rated assets has increased to 7.44% from 2.57% of the performing balance. -- Following the deleveraging of the senior notes, the class A to D notes benefit from higher levels of credit enhancement compared with S&P's previous review. Credit enhancement Current amount At closing Class (mil. EUR) Current (%) in 2017 (%) A 166.31 45.92 41.43 B-1 32.00 32.26 29.43 B-2 10.00 32.26 29.43 C 29.50 22.67 21.00 D 19.00 16.49 15.57 E 17.30 10.86 10.63 F 11.00 7.28 7.49 Sub Notes 37.00 N/A N/A N/A--Not applicable. The scenario default rates (SDRs) have decreased for all rating scenarios primarily due to a reduction in the weighted-average life since the closing date (3.25 years from 6.24 years). Portfolio benchmarks SPWARF 2,896.50 Default rate dispersion 657.41 Weighted-average life (years) 3.25 Obligor diversity measure 91.11 Industry diversity measure 20.76 Regional diversity measure 1.13 SPWARF--S&P Global Ratings' weighted-average rating factor. All figures presented in the table do not include defaulted assets. On the cash flow side: -- The reinvestment period for the transaction ended in April 2022. -- The class A notes have deleveraged by EUR38.7 million since closing. -- No class of notes is currently deferring interest. --All coverage tests are passing as of the August 2024 payment report. Transaction key metrics Total collateral amount (mil. EUR)* 307.50 Defaulted assets (mil. EUR) 0.00 Number of performing obligors 112 Portfolio weighted-average rating B 'AAA' SDR (%) 58.46 'AAA' WARR (%) 35.48 *Performing assets plus cash and expected recoveries on defaulted assets. SDR--Scenario default rate. WARR--Weighted-average recovery rate. In S&P's view, the portfolio is diversified across obligors, industries, and asset characteristics. S&P said, "In our credit and cash flow analysis, we considered the transaction's available current cash balance of approximately EUR55 million, per the August 2024 trustee report. We also considered the level of available principal proceeds, per the September 2024 trustee report. While the manager has actively traded assets in 2024, no assets were purchased between July and September. Additionally, proceeds not reinvested post the reinvestment period shall be disbursed in accordance with the principal proceeds priority of payments on the following payment date, as per the transaction documentation. "We considered a base case cash flow scenario where the full amount of principal cash will be used to pay down the notes. In addition, we also considered the possibility that the manager may still reinvest unscheduled redemption proceeds and sale proceeds from credit-impaired and credit-improved assets. Such reinvestments, as opposed to repayment of the liabilities, may prolong the note repayment profile for the most senior class. "Our credit and cash flow analysis indicates that the available credit enhancement for the class A notes remains commensurate with a 'AAA' rating. We therefore affirmed our 'AAA (sf)' rating. "Our base case cash flow analysis indicates that the available credit enhancement for the class B-1, B-2, C, D, and E notes is commensurate with higher ratings than those assigned. For these classes, we considered the manager may still reinvest all or a part of unscheduled redemption proceeds and sale proceeds from credit-impaired and credit-improved assets. We also considered the level of cushion between our break-even default rates and SDRs for these notes at their passing rating levels, as well as current macroeconomic conditions and these tranches' relative seniority. We therefore limited our upgrades to the class B-1, B-2, C, and D notes, and affirmed our rating on the class E notes. "Our base case cash flow analysis indicates that the available credit enhancement for the class F notes is commensurate with the 'B-' rating level. However, the reinvestment of all or some of the cash proceeds could have a negative effect on the model results." S&P therefore applied its 'CCC' rating criteria, and considered the following key factors: -- The tranche's available credit enhancement, which is in the same range as that of other CLOs S&P has rated and that has recently been issued in Europe. -- The portfolio's average credit quality, which is similar to other recent CLOs. -- Assuming full reinvestment of current cash proceeds, our model generated break-even default rate at the 'B-' rating level of 21.53% (for a portfolio with a weighted-average life of 3.25 years), versus if S&P was to consider a long-term sustainable default rate of 3.1% for 3.25 years, which would result in a target default rate of 10.07%. -- S&P does not believe that there is a one-in-two chance of this tranche defaulting. -- S&P does not envision this tranche defaulting in the next 12-18 months. Having considered the above, S&P affirmed its 'B- (sf)' rating on the class F notes. S&P said, "We consider the transaction's exposure to country risk to be limited at the assigned ratings, as the exposure to individual sovereigns does not exceed the diversification thresholds outlined in our structured finance sovereign risk criteria. "Counterparty, operational, and legal risks are adequately mitigated in line with our criteria." Adagio VI CLO is a European cash flow CLO transaction that securitizes loans granted to primarily speculative-grade corporate firms. The transaction is managed by AXA Investment Managers US Inc. ARAGVI FINANCE: Fitch Assigns 'B+(EXP)' Rating on $500MM Eurobonds ------------------------------------------------------------------ Fitch Ratings has assigned Aragvi Holding International Limited's (Trans-Oil, B+/Stable) planned non-callable five-year USD500 million senior secured eurobond an expected rating of 'B+(EXP)' with a Recovery Rating of 'RR4'. The eurobond will be issued by Trans-Oil's fully owned subsidiary, Aragvi Finance International DAC, and used primarily to refinance its 8.45% USD500 million eurobond maturing in 2026 through a tender offer. The expected rating is in line with Trans-Oil's Issuer Default Rating (IDR), reflecting average recovery prospects in case of default. The assignment of the final instrument rating is contingent on the successful placement of the eurobond and the completion of the tender offer. Final documents should conform to information already received. Trans-Oil's IDR reflect the company's dominant and well-protected market position in agricultural exports and sunflower seed crushing in Moldova, while expanding operations to Serbia and Romania and maintaining a superior EBITDA margin compared with larger peers. The Stable Outlook captures its expectation of consistently positive free cash flow (FCF) from the financial year ending June 2024 (FY24) and the company's adherence to a conservative financial policy since FY22. Key Rating Drivers Expected Eurobond Rating Aligned with IDR: The rating on the proposed eurobond is in line with Trans-Oil's IDR, as it will rank equally with all of Trans-Oil's other secured debt and behind pre-export finance and working capital facilities that are secured by inventory. The proposed eurobond's provisions mirror those of the existing bond, suggesting that it is of the same debt class. The proposed issuance addresses a key 2025 maturity, which is planned to be refinanced in advance via the tender offer, subject to the acceptance from holders of early redemption. This makes the transaction leverage neutral. Derivation Summary Trans-Oil is considerably smaller in size and has a weaker ranking on a global scale than international agricultural commodity traders and processors, such as Cargill Incorporated (A/Stable), Archer Daniels Midland Company (A/Stable) and Bunge Global SA (BBB+/Stable). Meanwhile, the two-notch rating differential with Tereos SCA (BB/Positive), reflects Tereos's stronger business profile, which is supported by its larger scale, stronger geographic diversification and a more flexible cost structure. This is partly offset by a weaker financial structure. Trans-Oil compares well with Ukrainian sunflower seed crusher and grain trader, Kernel Holding S.A. (CCC-), due to similar operations and vertically integrated models with substantial logistics and infrastructure assets. However, Kernel's larger scale and integration into crop growing limits its sourcing and procurement risks. It also has a wider and diversified customer base. In contrast, Trans-Oil benefits from lower competition risk, due to its stronger market position and the absence of competition from global commodity traders and processors in Moldova. Kernel's IDR also reflects the heightened operational and financial risks since Russia's military invasion of Ukraine. Key Assumptions - Agricultural commodity prices for the origination segment to decline on average by 15% over FY24-FY27, against FY23, and in the crushing segment to gradually decline from FY25 toward the five-year average by FY27 - Sales volume improving in FY24 after a poor harvest in Moldova in FY23, with a steady reduction of origination volume from Ukraine from FY25 - Preserving the profit margin in the origination and crushing segments, supporting an 8%-9% EBITDA margin - Slightly decreasing interest expense on floating-rate trade finance facilities, driven by lower interest rates in FY24-FY27 - Moderating working capital outflow, resulting in a positive FCF margin in the low single digits - Annual capex of USD25 million in FY24-FY26 - No dividends Recovery Analysis KEY RECOVERY RATING ASSUMPTIONS The senior secured eurobond expected rating is in line with Trans-Oil's IDR, reflecting average recovery prospects given default. The planned eurobond will be secured by pledges over a majority of assets of key Moldovan entities, excluding commodities. Its recovery approach assumes the company will be liquidated instead of restructured in financial distress. Fitch believes the increase in liquid assets, such as readily marketable inventories (RMI) from Trans-Oil's increased scale, would encourage creditors secured by these assets to pursue a liquidation. Under such an outcome, Fitch expects bondholders to receive better recoveries than for a going concern, given pledges over the company's other assets. Fitch has applied customary advance rates for Trans-Oil's main assets, including an 80% advance rate for trade receivables, 30% for non-RMI and 30% for property plant and equipment. Fitch adjusts the RMI used to repay outstanding working credit lines first (USD95 million in FY24), as such creditors have direct recourse to these assets. Its assumptions result in a ranked recovery in the 'RR4' band for the senior secured eurobond, indicating a 'B+' rating. The waterfall analysis percentage on metrics and assumptions was 70%. However, the planned eurobond expected rating is in line with Trans-Oil's IDR, capped by the Moldovan jurisdiction (B+/Stable) in accordance with Fitch's Country Specific Treatment of Recovery Ratings Criteria. Therefore, the waterfall analysis percentage remains capped at 50%. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Local-Currency IDR - Increased scale toward USD250 million and further diversification leading to a resilient EBITDA margin and a positive FCF margin on a sustained basis - Maintaining a conservative capital structure, with RMI-adjusted EBITDA net leverage at or below 2.5x and strengthening of risk-management practices - Maintenance of strong internal liquidity, with sufficient availability of trade-financing lines to secure trading and processing volumes and to cope with price volatility - Stable geopolitical environment in Trans-Oil's core countries of operation Foreign-Currency IDR: - Upgrade of the Local-Currency IDR - Strengthening of the hard-currency debt service ratio to above 1.5x over more than 18 months or increasing EBITDA generated from higher-rated countries, in particular Serbia (BB+/Positive) and Romania (BBB-/Stable), sufficient to fully cover annual hard-currency interest expense over the next three years. This would lead to a change in the applicable Country Ceiling Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Weakening of operations, with consolidated EBITDA declining to below USD150 million - RMI-adjusted EBITDA net leverage above 3.0x and RMI-adjusted EBITDA interest cover below 1.5x - More aggressive risk management or financial policy, as reflected by increased profit volatility and higher-than-expected investments in working capital, capex, M&A or dividend payments - Weakening of liquidity position or risk of insufficient availability of trade-finance lines to fund trading and processing operations, with its internal liquidity score falling to below 1.0x - Deteriorating operating environment in Moldova - Absence of visibility of refinancing options for the eurobond within the next 12 to 18 months Liquidity and Debt Structure Adequate Liquidity: Trans-Oil had Fitch-adjusted available cash of USD104 million, Fitch-estimated RMI of USD265 million and accounts receivables of USD254 million at FYE24, sufficient to cover current liabilities of USD410 million. Fitch expects Trans-Oil to maintain adequate internal liquidity over the next two years. Trans-Oil has extended its USD150 million pre-export financing facility to June 2025. Refinancing risk remains high, given the region's geopolitical instability and weakened access to capital for local companies. However, Fitch recognises that Trans-Oil's conservative financial profile and reinforced scale and diversification allows an early refinance of its USD500 million bond maturing in April 2026. Issuer Profile Trans-Oil is a vertically integrated agro-industrial business based in Moldova. It is focused on origination and wholesale trade of grain and sunflower seeds, storage and trans-shipment operations and the production of vegetable oils, including bottled and in bulk. Summary of Financial Adjustments RMI Adjustments: Fitch applied RMI adjustments to evaluate Trans-Oil's leverage and interest coverage ratios and liquidity. Certain commodities traded by Trans-Oil fulfil Fitch's eligibility criteria for RMI adjustments, as around 85% of its international oilseeds and grain sales volume was based on forward contracts as of FYE24. The differential between RMI-adjusted and RMI-unadjusted EBITDA net leverage is around 1.0x. For the purpose of RMI calculations, Fitch discounted eligible reported inventory by 40% to reflect basis and counterparty risks. In its calculation of leverage and interest cover metrics, Fitch excluded debt associated with financing RMI and reclassified the related interest costs as cost of goods sold. Date of Relevant Committee 14 February 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 ----------- ------ -------- Aragvi Finance International DAC senior secured LT B+(EXP) Expected Rating RR4 RRE 22 LOAN: S&P Assigns BB-(sf) Rating on EUR18MM Class D Notes ---------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to RRE 22 Loan Management DAC's class A-1 to D notes. The issuer also issued unrated performance, preferred return, and subordinated notes. This is a European cash flow CLO transaction, securitizing a portfolio of primarily senior secured leveraged loans and bonds. The transaction is managed by Redding Ridge Asset Management (UK) LLP. The ratings assigned to the notes reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. -- Under the transaction documents, the rated notes will pay quarterly interest unless there is a frequency switch event. Following this, the notes will permanently switch to semiannual payment. -- The portfolio's reinvestment period will end approximately 4.46 years after closing, and the portfolio's maximum average maturity date is approximately 8.5 years after closing. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,800.13 Default rate dispersion 438.84 Weighted-average life (years) 5.00 Obligor diversity measure 95.50 Industry diversity measure 17.28 Regional diversity measure 1.31 Transaction key metrics Total par amount (mil. EUR) 400 Defaulted assets (mil. EUR) 0 Number of performing obligors 111 Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 1.00 Target 'AAA' weighted-average recovery (%) 37.43 Target portfolio weighted-average spread (%) 4.06 S&P said, "The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, we have conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. As such, we have not applied any additional scenario and sensitivity analysis when assigning ratings to any class of notes in this transaction. "In our cash flow analysis, we used the EUR400 million target par amount, the covenanted weighted-average spread (3.70%), and the covenanted weighted-average coupon indicated by the collateral manager (5.40%). We assumed weighted-average recovery rates in line with those of the identified portfolio presented to us, except at the 'AAA' rating level where we assumed covenanted recoveries at 37.00%. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Our credit and cash flow analysis indicates that the available credit enhancement for the class A-2, B, C-1, C-2, and D notes could withstand stresses commensurate with higher ratings than those assigned. However, as the CLO will be in its reinvestment phase starting from closing, during which the transaction's credit risk profile could deteriorate, we have capped the assigned ratings. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "Following the application of our structured finance sovereign risk criteria, we consider the transaction's exposure to country risk to be limited at the assigned ratings, as the exposure to individual sovereigns does not exceed the diversification thresholds outlined in our criteria. "The transaction's legal structure is bankruptcy remote, in line with our legal criteria. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe that our assigned ratings are commensurate with the available credit enhancement for the class A-1, A-2, B, C-1, C-2, and D notes. "In addition to our standard analysis, we have also included the sensitivity of the ratings on the class A-1 to D notes to four hypothetical scenarios." Environmental, social, and governance factors S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit assets from being related to certain industries, including, but not limited: thermal-coal-based power generation, mining or extraction; Arctic oil or gas production, and unconventional oil or gas production from shale, tight reservoirs, or oil sands; production of civilian weapons; development of nuclear weapon programs and production of controversial weapons; management of private for-profit prisons; tobacco or tobacco products; opioids; adult entertainment; speculative transactions of soft commodities; predatory lending practices; non-sustainable palm oil productions; animal testing for non-pharmaceutical products; endangered species; and banned pesticides or chemicals." Accordingly, since the exclusion of assets from these industries does not result in material differences between the transaction and S&P's ESG benchmark for the sector, no specific adjustments have been made in its rating analysis to account for any ESG-related risks or opportunities. Ratings Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ A-1 AAA (sf) 244.00 39.00 Three/six-month EURIBOR plus 1.30% A-2 AA (sf) 49.00 26.75 Three/six-month EURIBOR plus 1.90% B A (sf) 23.00 21.00 Three/six-month EURIBOR plus 2.25% C-1 BBB (sf) 24.00 15.00 Three/six-month EURIBOR plus 3.05% C-2 BBB- (sf) 4.00 14.00 Three/six-month EURIBOR plus 4.10% D BB- (sf) 18.00 9.50 Three/six-month EURIBOR plus 6.20% Performance Notes NR 1.00 N/A N/A Preferred return notes NR 0.25 N/A N/A Subordinated Notes NR 43.65 N/A N/A *The ratings assigned to the class A-1 and A-2 notes address timely interest and ultimate principal payments. The ratings assigned to the class B, C-1, C-2, and D notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. NR--Not rated. N/A--Not applicable. EURIBOR--Euro Interbank Offered Rate. =================== L U X E M B O U R G =================== ACCORINVEST GROUP: Fitch Gives 'BB' Final Rating on EUR650MM Notes ------------------------------------------------------------------ Fitch Ratings has assigned AccorInvest Group S.A.'s (B/ Stable) new EUR650 million notes due 2031 a final senior secured rating of 'BB' with a Recovery Rating of 'RR1'. The proceeds from the notes are being used to partially and equally prepay its term loans A and B, making the transaction leverage-neutral. AccorInvest's 'B' IDR reflects reduced refinancing risks following the recent extension of its term loans and revolving credit facility (RCF) and successful placement of the bond, which addressed its 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 risk of its next large debt maturity in 2027. The rating reflects 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 in addressing its 2025 debt maturities. It has amended and extended its term loans A and B and RCF, and repaid around EUR700 million under its 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 to partially and equally prepay its term loans A and B. AccorInvest now has EUR191 million amortisation payment under government-backed facilities (PGE) as the only 2025 debt maturity. It will also have a more favourable debt maturity profile, with some concentration in 2027, but Fitch expects the company to be able to extend its 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 those not meeting its 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 an unfavourable market environment. Fitch still sees execution risks for the divestments planned for 2024-2025, for which the company aims to net more than EUR800 million. Successful disposals 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 treats as non-debt). Fitch expects AccorInvest's EBITDAR net leverage to fall to 6.1x in 2024 from 6.7x in 2023, which is in line with its 'B' rating. Fitch believes this deleveraging will be sustained, even if EBITDA falls 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 has 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 EBITDA margins to increase by around 200bp over 2024-2027, supported by the planned disposal of lower-profitability assets. In addition, Fitch assumes that AccorInvest's asset swap with Covivio hotels will allow it to reduce rents and improve EBITDA margin. Neutral to Positive FCF: Neutral to positive free cash flow (FCF) is important for AccorInvest's liquidity and its '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 sees 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 2%-4% a year - Asset disposals over 2024-2025 leading to revenue declines of 2% in 2024 and 16% in 2025, while generating around EUR750 million of cash proceeds - EBITDA margin increasing around 200bp over 2024-2027 due to disposal of less profitable assets and cost-saving programme - Capex at EUR220 million-EUR250 million a year over 2024-2027 - Issuance of preference shares or EUR200 million in July 2024 with an 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 given its 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 and its proceeds distributed to relevant creditors in a default. Fitch has applied a 50% advance rate to the EUR8.2 billion AccorInvest gross asset value after deducting EUR337 million of assets secured by a mortgage 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, the EUR750 million senior secured bond due 2029 and thenew EUR650 million senior secured bond due 2031 rank pari passu among themselves. Its waterfall analysis generated a waterfall generated recovery computation (WGRC) for the senior secured debt in the 'RR1' band, indicating a 'BB' 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 been reduced by debt prepayments and transaction costs, while its EUR250 million RCF remains fully drawn. Liquidity has improved after the September bond placement as its proceeds have allowed it 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 Prior ----------- ------ ----- AccorInvest Group S.A. senior secured LT BB New Rating RR1 BB(EXP) ========= S P A I N ========= NEINOR HOMES: S&P Assigns 'B+' LongTerm ICR, Outlook Stable ----------------------------------------------------------- S&P Global Ratings assigned its 'B+' long-term issuer rating to Spanish residential real estate developer Neinor Homes and its 'BB-' issue and '2' recovery ratings to the company's proposed senior secured bond of EUR325 million, expected to mature in 2030 (S&P expects about 85% recovery in the event of a default). The stable outlook reflects S&P's view that Neinor will continue to generate positive free operating cash flow (FOCF) from its development business, supported by pre-sales and sustained demand for its assets, such that S&P Global Ratings adjusted ratio of debt to EBITDA should remain below 5x and an EBITDA interest coverage of at least 2.5x, sustainably from 2025. Neinor Homes has strengthened its position as one of the main leaders in the Iberian Peninsula for residential real estate development with over 2,000 units delivered per year since 2021 and among the largest landbank in the country with over 25,000 units expected at end-2024 including joint-venture (JV) investments. The company is shifting its focus back to its core developer business model and moving away from its build-to-rent platform while making co-investments to secure a sizable pipeline with business partners. S&P said, "Our assessment of Neinor Homes' business risk profile captures the cyclical and highly fragmented nature of the development industry in Spain. We view the Spanish housing development market as highly cyclical, subject to the country's economy, mortgage lending availability and terms. Spanish developers, including Neinor Homes, have shown greater resilience in passing on inflationary pressures to final buyers through price increases, despite rising interest rates. This has allowed the company to protect profitability and production volumes. Neinor Homes benefits from an owned land bank with a book value of about EUR1.5 billion at end-June 2024, which is expected to reach over 25,000 units by year-end taking into account co-investments. Assets in the land bank are located in strategic regions, driving a higher demand supply imbalance. The company has a sound pre-sales level as of September 2024 of 48% for 2025 and 20% for 2026, which supports visibility on earnings and cash flow predictability. Similarly, thanks to the good commercialization rate and the company's leading market standing, Neinor Homes maintained access to development loan financing at similar rates to past loans, despite market instability, which has enabled the company to maintain its production cycle and reach the target delivery of around 2,000 to 2,500 units per year. Although this is line with its largest Spanish peers, such as Via Celere, which delivered 2,031 units in 2023, it is smaller than other European peers like Altareit, which delivered almost 8,000 units in 2023. The high market fragmentation in Spain where the five top developers represent less than 10% of total units delivered in 2023 limits the economies of scale benefits and market power of Spanish developers compared with larger European peers. Neinor Homes' strategic decision to opt out of the build-to-rent market to focus on its core residential developer activities will remove the recurring cash inflow aspect to its operations. "We expect the structural undersupply in the Spanish new housing market to result in resilient house prices despite lower economic growth. Although tightening credit conditions and economic uncertainty continue to weigh on real estate prices, we expect only moderate price corrections on new units given persistent supply-and-demand imbalances for housing in the regions where Neinor Homes is present. Higher interest rates for longer will keep hurting affordability, but low household indebtedness, improving employment levels, and still-supportive credit availability should partially mitigate market headwinds. The demand and price trends are not homogenous across the Iberian Peninsula, with larger metropolitan cities benefiting from the historic trend of city densification and urbanization. Neinor Homes' land bank as of the first half of 2024 is mainly concentrated around Spanish largest cities like Madrid region (35% of gross asset value [GAV]), the South (24%), Barcelona and surroundings (27%), Northern Spain (9%), and Valencia (6%), where the demand and supply imbalance supports price stability despite economic challenges. "We anticipate Neinor Homes' leverage to be elevated in 2024, following the proposed bond issuance, but to stabilize rapidly from 2025 onward. We expect the company's S&P Global Ratings-adjusted debt-to-EBITDA to land at close to 6x in 2024, reflecting a bond issuance of EUR325 million, from 3.2x in 2023 on the back of the increase in debt and lower EBITDA generation as the company is reducing its unit delivery target closer to 2,000 a year. However, we expect the ratio to improve closer to 4x in 2025 as Neinor Homes repays developer loans and increases its EBITDA generation profile on the back of sustained demand for Neinor Home's core offering, stable prices, and deliveries in regions with higher prices per unit. "We expect positive FOCF generation for the next 12 to 24 months, supported by a sound level of deliveries and reduced working capital needs. Neinor Homes is implementing its strategy of refocusing on its core build-to-sell offering, thereby reducing the average number of units delivered to 2,000-2,200 from a high of nearly 3,200 units in 2021. This should translate into lower construction cost outflows and lower land acquisition amounts due to the already very large size of its land bank, as well as owing to a portion of future investments being through co-investments resulting in a reduced level of working capital needs. Combined with high pre-sales and strong demand for Neinor Homes' properties, this should translate into S&P Global Ratings-adjusted FOCF of about EUR50 million-EUR60 million in 2024 and EUR140 million-EUR150 million in 2025 and FOCF to debt of 10%-12% and 30%-45%. We also expect that Neinor Homes will maintain moderate EBITDA interest coverage of at least 2.5x over our two-year forecast horizon. "Our rating factors in the joint controlling stake of shareholders, considered as financial sponsors under our methodology, which could lead to a more aggressive financial policy in the future, albeit this is not our base case. The main shareholders of the company are funds managed by Orion Capital Managers, holding 29.5%, and Stoneshield Capital, holding 25%. In addition, Israeli investment firm Adar Capital Partners holds an additional 14.5% with free float remaining at around 31%. We note that the board of directors is composed of nine members, of which only four are independent, and that Orion and Stoneshield have two seats each. We consider Neinor Homes as financial-sponsor owned company under our criteria, given a combined shareholding stake of more than 50%. In addition, we view Neinor Homes' plan to distribute EUR600 million of dividends over a five year period from 2023 to 2027 as slightly more aggressive than before, when dividend payments were relatively small. Although it is not our base case, we believe that having a concentrated shareholder base with more than 50% stake held by financial sponsors, could eventually push the company toward a more aggressive financial strategy, deteriorating its credit metrics. Despite maintaining a moderate leverage ratio, we also note that the company has recently started paying out larger dividends than in previous years. "The stable outlook reflects our view that Neinor Homes will continue to generate positive FOCF from its development business, supported by the high level of pre-sales and sustained demand for newly built residential units in the main metropolitan areas of Spain. The stable outlook also reflects our view that the company will continue to benefit from sustained demand for residential housing in Spain and could withstand any potential impact from economic disturbance. "We estimate Neinor Homes will bring S&P Global Ratings adjusted debt to EBITDA comfortably below 5x over the next 12 months, with EBITDA interest coverage close to 2.5x or above, with sustained positive FOCF." Downside scenario S&P could lower its rating if Neinor Homes' operating performance deteriorated owing to a market downturn with a significant decline in demand or prices in the company's units, or large debt-funded acquisitions, resulting in: -- Debt to EBITDA remaining close to 5x or above; -- EBITDA interest coverage falling below 2x; and -- Sustained negative FOCF. A material deterioration of Neinor Homes' liquidity cushion or change of financial policy, including larger than anticipated shareholder distributions, could also result in a negative rating action. Upside scenario S&P considers an upgrade as unlikely in the short term, given Neinor Homes' diversification strategy focusing on capital-intensive development activities. That said, a positive rating action would stem from the company maintaining adjusted debt to EBITDA below 4.0x and EBITDA interest coverage above 3.0x comfortably. An upgrade would also hinge on Neinor Homes' financial policy commitment to comfortably maintain the ratios at that levels. S&P said, "Governance factors have a moderately negative influence on our credit rating analysis for Neinor Homes. Although the company is listed, more than 50% of shares are owned by private equity companies, which we consider as financial sponsors under our criteria. We believe that a concentrated shareholder base may heighten the risk of a less-prudent financial policy being adopted, which could result in an increase in leverage or the redeployment of sales proceeds. That said, our governance assessment reflects about 31% of minority interests and composition of the board, four out of nine members of which are independent. "We consider Neinor Homes' environmental and social to have a neutral influence on our credit rating analysis. Since 2022, the company operates according to the 2022-2025 Sustainability Plan that it developed in 2021. The plan consists of 16 areas of activity within which 30 objectives and their corresponding 95 courses of action were established. Some of the key milestones are the completion of 8,000 units registered to obtain the BREEAM seal, the highest market share in Spain (21%). 80% of Neinor Homes' units completion comply with EU taxonomy and it was the first developer in Spain to publish a comprehensive social impact of unit deliveries." =========================== U N I T E D K I N G D O M =========================== AVON FINANCE 4: S&P Affirms 'CCC' Rating on Class X-Dfrd Notes -------------------------------------------------------------- S&P Global Ratings lowered its credit ratings on Avon Finance No.4 PLC's class E-Dfrd notes to 'B- (sf)' from 'B+ (sf)', F-Dfrd notes to 'CCC (sf)' from 'B- (sf)', and G-Dfrd notes to 'CCC- (sf)' from 'CCC (sf)'. At the same time, S&P affirmed its 'AAA (sf)' rating on the class A notes, 'AA (sf)' rating on the class B notes, 'A (sf)' rating on the class C-Dfrd notes, 'BBB (sf)' rating on the class D-Dfrd notes, and 'CCC (sf)' rating on the class X-Dfrd notes. The rating actions reflect the transaction's significant deterioration in performance since closing in September 2023. Total arrears have increased as of May 2024 to 21.5% from 15.8%. Arrears greater than or equal to 90 days have risen to 14.6% from 7.7%. While still below S&P's U.K. nonconforming RMBS index for pre-2014 originations, this transaction's performance has deteriorated at a faster pace. Since September 2023, total arrears on S&P's index have increased to 27.0% from 20.9%, and severe arrears have risen to 19.9% from 13.6%. While credit enhancement for the asset-backed notes has increased, reflecting prepayments and the transaction's sequential amortization, the increase has not been significant enough to offset the elevated arrears. S&P said, "Since closing, our weighted-average foreclosure frequency (WAFF) assumptions have increased at all rating levels, reflecting the higher arrears. The elevated arrears also reduce the seasoning benefit that the pool receives, which further increases the WAFF. "We reduced our originator adjustment compared with closing. At closing, we anticipated a future deterioration in arrears for the securitized assets. Considering the increased arrears, as we previously projected, we have reduced our originator adjustment accordingly. Our current originator adjustment reflects our expectations of future collateral performance as well as the arrears that we previously projected materializing." The required credit coverage has increased at all rating levels. Table 1 Portfolio WAFF and WALS Base foreclosure frequency component for an archetypical Credit U.K. mortgage Rating level WAFF (%) WALS (%) coverage (%) loan pool (%) AAA 44.06 22.23 9.80 12.00 AA 38.03 14.96 5.69 8.00 A 34.63 6.32 2.19 6.00 BBB 30.75 3.20 0.98 4.00 BB 26.54 2.00 0.53 2.00 B 25.48 2.00 0.51 1.50 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. S&P said, "Our credit and cash flow results indicate that the available credit enhancement for the class A to D-Dfrd notes continues to be commensurate with the assigned ratings. We therefore affirmed our ratings on these notes. "The downgrades of the class E-Dfrd to G-Dfrd notes reflect the deterioration in their cash flow results due to the increased arrears. These tranches face shortfalls under our standard cash flow analysis at the 'B' rating level. "Therefore, we applied our 'CCC' criteria to assess if either a rating of 'B-' or a rating in the 'CCC' category would be appropriate. Our 'CCC' rating criteria specify the need to assess whether there is any reliance on favorable business, financial, and economic conditions to meet the payment of interest and principal. In our steady state scenario, we decreased our prepayment assumptions in our high interest rate scenario based on the observed prepayment level, stressed actual fees in our cash flow analysis, and did not apply spread compression or commingling. "In the steady state scenario, where the current stress level shows little to no increase and collateral performance remains steady, the class E-Dfrd notes pass our 'B' cash flow stresses. Therefore, in our view, payment of interest and principal on the class E-Dfrd notes does not depend on favorable business, financial, and economic conditions. We therefore lowered to 'B- (sf)' from 'B+ (sf)' our rating on the class E-Dfrd notes. "The class F-Dfrd and G-Dfrd notes do not pass our 'B' cash flow stresses in the steady state scenario and the magnitude of the failures in the steady state scenario has increased for the class G-Dfrd notes. Therefore, in our view, payment of interest and principal on the class F-Dfrd and G-Dfrd notes does depend on favorable business, financial, and economic conditions. We therefore lowered to 'CCC (sf)' from 'B- (sf)' our rating on the class F-Dfrd notes. We lowered our rating on the class G-Dfrd notes to 'CCC- (sf)' from 'CCC (sf)', considering the increase in the magnitude of the failures in the steady state scenario for this class of notes and the relative ranking between the class F-Dfrd and G-Dfrd notes." Macroeconomic forecasts and forward-looking analysis S&P said, "We expect U.K. inflation to remain above the Bank of England's 2% target in 2024 and forecast the year-on-year change in house prices in fourth-quarter 2024 to be 1.4%. "We consider the borrowers in this transaction to be nonconforming and as such generally less resilient to inflationary pressure than prime borrowers. At the same time, all the borrowers are currently paying a floating rate of interest and so have been affected by rate rises. "Given our current macroeconomic forecasts and forward-looking view of the U.K. residential mortgage market, we have performed additional sensitivities relating to higher levels of defaults due to increased arrears. We have also performed additional sensitivities with extended recovery timings due to the delays we have observed in repossession owing to court backlogs in the U.K. and the repossession grace period announced by the U.K. government under the Mortgage Charter. "We ran eight scenarios with increased defaults and higher loss severities. The results of the sensitivity analysis indicate a deterioration that is in line with the credit stability considerations in our rating definitions." Avon Finance No. 4 is backed by a pool of U.K. legacy nonconforming owner-occupied and buy-to-let mortgages originated by GMAC-RFC Ltd. and Platform Funding Ltd. DOWSON PLC 2024-1: S&P Assigns 'B' Rating on Class X-Dfrd Notes --------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Dowson 2024-1 PLC's asset-backed floating-rate class A, B, C, D, E, F-Dfrd, and X-Dfrd notes. The class X-Dfrd notes are excess spread notes. The proceeds from the class X-Dfrd notes are used to fund the initial required cash reserves, the premium portion of the purchase price, and pay certain issuer expenses and fees. Dowson 2024-1 is the seventh public securitization of U.K. auto loans originated by Oodle Financial Services Ltd. (Oodle). S&P also rated the first six Dowson securitizations issued between September 2019 and September 2022. Oodle is an independent auto lender in the U.K., with a focus on used car financing for prime and near-prime customers. The underlying collateral comprises fully amortizing fixed-rate auto loan receivables arising under hire purchase (HP) agreements granted to private borrowers resident in the U.K. for the purchase of used and new vehicles. There are no personal contract purchase agreements in the pool. Therefore, the transaction is not exposed to residual value risk. Of the underlying collateral, 12.6% was previously securitized in Dowson 2021-2 PLC. Collections will be distributed monthly with separate waterfalls for interest and principal collections, and the notes amortize fully sequentially from day one. A combination of note subordination and any available excess spread provides credit enhancement for the rated notes. The class A notes also benefit from credit enhancement and liquidity provided by the class A reserve fund, while a dedicated reserve fund ledger for each of the class B to F-Dfrd notes provides liquidity support to each of the respective notes. The class A reserve fund is sized at 2% of the class A notes' balance at closing, while the class-specific reserve funds for the class B to F-Dfrd notes are sized at 1% of the respective classes' closing balance. Oodle will remain the initial servicer of the portfolio. A moderate severity and portability risk assessment along with a low disruption risk assessment results in no cap on the transaction ratings. The assets pay a monthly fixed interest rate, and all notes pay compounded daily sterling overnight index average plus a margin subject to a floor of zero. Consequently, the notes benefit from an interest rate swap with a fixed amortization profile, with an option to rebalance subject to satisfaction of certain conditions. S&P's structured finance operational risk and sovereign risk criteria do not constrain the assigned ratings. The remedy provisions adequately mitigate counterparty risk in line with its counterparty criteria. Ratings Class Rating* Amount (mil. GBP) A AAA (sf) 227.50 B AA (sf) 35.00 C A+ (sf) 24.50 D A (sf) 14.00 E BBB (sf) 22.75 F-Dfrd B- (sf) 26.25 X-Dfrd† B (sf) 17.50 *S&P's ratings on the class A, B, C, D, and E notes address the timely payment of interest and ultimate payment of principal, while its ratings on the class F-Dfrd and X-Dfrd notes address the ultimate payment of both interest and principal no later than the legal final maturity date. †The class X-Dfrd notes are excess spread notes not backed by collateral. EALBROOK MORTGAGE 2024-1: Moody's Assigns Ba1 Rating to Cl. E Notes ------------------------------------------------------------------- Moody's Ratings has assigned definitive ratings to Notes issued by Ealbrook Mortgage Funding 2024-1 PLC: GBP354.3M Class A mortgage backed floating rate notes due August 2066, Definitive Rating Assigned Aaa (sf) GBP18.7M Class B mortgage backed floating rate notes due August 2066, Definitive Rating Assigned Aa2 (sf) GBP5.9M Class C mortgage backed floating rate notes due August 2066, Definitive Rating Assigned A1 (sf) GBP5.9M Class D mortgage backed floating rate notes due August 2066, Definitive Rating Assigned A3 (sf) GBP8.9M Class E mortgage backed floating rate notes due August 2066, Definitive Rating Assigned Ba1 (sf) RATINGS RATIONALE The Notes are backed by a static pool of predominantly owner-occupied non-conforming UK residential mortgage loans originated and serviced by Bluestone Mortgages Limited, a wholly owned subsidiary of Shawbrook Bank Limited. This represents the second securitization that is rated by us. Bluestone Mortgages Limited launched in 2015 as a specialist UK lender active in the owner occupied and buy-to-let markets after the acquisition of Basinghall Finance Plc, and targets borrowers with complexity of circumstances. It has stopped lending buy-to-let mortgages since 2023. The portfolio of assets amount to approximately GBP393.6 million as of the September 30, 2024 pool cutoff date. At closing a liquidity reserve fund and a general reserve fund will be funded such that the total credit enhancement for the Class A Notes will be 11.40%. The ratings are primarily based on the credit quality of the portfolio, the structural features of the transaction and its legal integrity. The transaction benefits from various credit strengths such as a granular portfolio and an amortising liquidity reserve sized at 1.4% of the Class A and B Notes balance. An amortising general reserve fund sized at 1.4% of the collateralized Notes Class A to E minus the liquidity reserve fund will provide additional credit and liquidity support to Classes A to E. However, Moody's note that the transaction features some credit weaknesses such as an unrated servicer. Various mitigants have been included in the transaction structure such as a back-up servicer facilitator which is obliged to appoint a back-up servicer if the servicer's appointment is terminated, an independent cash manager, the benefit of approximately 3.5 months of liquidity provided by the reserve funds and estimation language in case no servicer report is available. Moody's determined the portfolio lifetime expected loss of 2.7% and MILAN Stressed Loss of 10.4% related to borrower receivables. The expected loss captures Moody's expectations of performance considering the current economic outlook, while the MILAN Stressed Loss captures the loss Moody's expect the portfolio to suffer in the event of a severe recession scenario. Expected loss and MILAN Stressed Loss are parameters used by us to calibrate its lognormal portfolio loss distribution curve and to associate a probability with each potential future loss scenario in the ABSROM cash flow model to rate RMBS. Portfolio expected loss of 2.7%: This is in line with the comparable transactions in UK Non-Conforming RMBS sector and is based on Moody's assessment of the lifetime loss expectation for the pool taking into account: (i) the collateral performance of Bluestone Mortgages Limited originated loans to date, as provided by the originator and observed in previously securitized portfolios; (ii) the portfolio characteristics including the weighted average current loan-to-value (CLTV) of 65.9%, the high percentage (23.8%) of borrowers with county court judgements (CCJs) and 8.8% of borrowers with individual voluntary arrangement (IVA); (iii) benchmarking with similar securitised portfolios; and (iv) the current macroeconomic environment in the UK. MILAN Stressed Loss of 10.4%: This is lower than the average comparable transactions in UK Non-Conforming RMBS sector and follows Moody's assessment of the loan-by-loan information taking into account the following key drivers: (i) the CLTV of 65.9% which is in line with the sector average; (ii) borrower characteristics such as 28.0% self-employed and 6.2% help to buy; and (iii) prior adverse credit such as 23.8% of primary borrowers with CCJs and 8.8% of primary borrowers with IVA. The principal methodology used in these ratings was "Residential Mortgage-Backed Securitizations" published in October 2024. The analysis undertaken by Moody's at the initial assignment of ratings for RMBS securities may focus on aspects that become less relevant or typically remain unchanged during the surveillance stage. Factors that would lead to an upgrade or downgrade of the ratings: Factors that would lead to an upgrade of the ratings include: (i) significantly better than expected performance of the pool together with an increase in credit enhancement of Notes; or (ii) a deleveraging of the capital structure. Factors that would lead to a downgrade of the ratings include: (i) increased counterparty risk leading to potential operational risk of (a) servicing or cash management interruptions and (b) the risk of increased swap linkage due to a downgrade of a swap counterparty ratings; and (ii) economic conditions being worse than forecast resulting in higher arrears and losses. HOCHANDA GLOBAL: Leonard Curtis Named as Joint Administrators ------------------------------------------------------------- Hochanda Global Limited was placed in administration proceedings in the High Court of Justice Business and Property Courts of England and Wales Court Number, Court Number: CR-2024-005816, and Neil Bennett and Alex Cadwallader of Leonard Curtis were appointed as administrators on Oct. 25, 2024. Hochanda Global engages in television programming and broadcasting activities. Its registered office is at First Floor, 5 Fleet Place, London, EC4M 7RD. Its principal trading address is at Nene House, Nene Valley Business Park, Oundle, Peterborough, PE8 4HNX. The joint administrators can be reached at: Neil Bennett Alex Cadwallader Leonard Curtis 5th Floor, Grove House 248a Marylebone Road, London NW1 6BB For further details, contact: The Joint Administrators Email: recovery@leonardcurtis.co.uk Tel: 020 7535 7000 Alternative contact: Toby Gibbons ITHACA ENERGY: Fitch Assigns 'BB-' Final Rating on $750MM Notes --------------------------------------------------------------- Fitch Ratings has assigned Ithaca Energy (North Sea) Plc's USD750 million notes due 2029 a final senior unsecured rating of 'BB-' with a Recovery Rating of 'RR4'. The notes are guaranteed on a senior unsecured basis by Ithaca Energy (E&P) Limited, fully owned by Ithaca Energy plc (Ithaca; BB-/Stable), and on a senior subordinated basis by certain subsidiaries that guarantee and secure its reserve-based lending (RBL) facility. Newly acquired Eni SpA's UK assets will also guarantee the senior unsecured bond on a senior subordinated basis at the earlier of the assets acceding as guarantors to the RBL facility and 90 days following the bond issue. The proceeds, together with cash on hand, will be used to repay USD625 million existing unsecured notes due 2026, USD100 million drawn under an existing loan and to pay fees and transaction costs. Ithaca's Long-term Issuer Default Rating of 'BB-' reflects its enlarged scale and operational diversification following its merger with Eni SpA's UK business without adding any debt. Fitch expects the combined Ithaca to benefit from improved financial flexibility, aided by its low leverage and conservative financial policy. Fitch forecasts Ithaca's EBITDA net leverage to remain low on average at 1x in 2024-2027. Rating constraints are the combined Ithaca's short reserve life relative to peers at around six years on a 1P basis, concentrated exposure to the mature UK Continental Shelf (UKCS) with high operating costs of over USD20 per barrel of oil equivalent (boe), high taxation and a less predictable tax regime. Fitch rates Ithaca on a standalone basis given its diluted shareholding structure. Key Rating Drivers Assets Boost Business Profile: The merger boosts Ithaca's business profile by increasing its scale and operational diversification. The projected 2024 pro-forma production is 100-110 thousand barrels of oil equivalent per day (kboe/d) with no single asset/hub accounting for more than 20%. The target assets' gas-weighted production will provide a better balance between Ithaca's exposure to oil and gas prices with a liquids/gas mix of around 60%, versus 65% before the merger. Further, the target assets' lower operating costs of around USD15/boe will stabilise Ithaca's unit operating expenses. Moderate Reserve Life: Ithaca's reserve base will increase to 219 million barrels of oil equivalent (mmboe) on a proved (1P) basis and to 368 mmboe on a proved and probable basis (2P) due to the merger. However, Fitch expects the reserve life to be unchanged from Ithaca's reserve life of around six years on a 1P basis, which is shorter than at peers. Greenfield Projects: Ithaca's shorter reserve life is mitigated by substantial contingent (2C) resources including greenfield projects (e.g. Cambo) that could support its business profile in the long term and also brownfield projects linked to existing assets that offer short payback periods. Ithaca's low leverage should also allow for M&A to replenish reserves. Decommissioning Obligations Diluted: The Eni UK assets carry some decommissioning obligations (USD8/1P boe), but these are lower and longer-term than Ithaca's (USD12/1P boe). This, combined with the lower capital intensity of the Eni assets owing to their mostly developed status (around 85% of 2P), should enable strong cash flow generation in the short term. Costs Remain High: Although typical for the UKCS, Ithaca's pre-merger cost position of USD27/boe in 1H24 is high relative to peers' and may be a disadvantage if oil prices fall. Beyond 2024, Fitch expects operating spending to improve and to average around USD22/boe in 2025-2027 as a result of the lower-cost Eni assets, brownfield production growth absorbing fixed costs, and the decommissioning of older high-cost fields. Standalone Production to Increase: Ithaca's production fell sharply to 53kboe/d in 1H24 from 76kboe/d in 1H23 due to extended turnaround activity in the wider UKCS in light of the UK government's energy profit levy but also operational issues in non-operated assets. Ithaca expects production to resume to around 60kboe/d as operational issues are resolved in 2H24. For 2025-2026, excluding the merger impact, Fitch anticipates production to be maintained at around 60kboe/d as brownfield projects such as Captain contribute to production and around 70kboe/d in 2027 as Rosebank reaches first oil. Fitch expects the combined business to maintain production at over 100kboe/d in 2025-2027. Supportive Shareholders: Fitch views the addition of Eni as Ithaca's shareholder a positive development. Eni now owns around 39% of Ithaca's shares, reducing Delek's ownership to around 51% from around 90%. Ithaca will also benefit from Eni's industry expertise and capabilities as Eni has appointed the CEO, two non-executive board members and other senior technical management roles. Fitch believes the shareholders are both supportive of Ithaca's independent strategy and financial policy. Disciplined Capital Allocation: Ithaca's capital-allocation priorities have remained consistent since its IPO, with no changes from the Eni UK deal. Fitch views these priorities as credit-positive given management's commitment to low leverage and a flexible dividend policy tied to cash flow and operational and market conditions. It prioritises capex to maintain production over 100kboe/d, followed by a strong balance sheet with a debt ceiling of below 1.5x EBITDAX and common dividends at around 15%-30% of post-tax cash flow from operations (CFO). Excess cash flow may be used for special dividends or inorganic business growth. Low Leverage: Fitch forecasts Ithaca's EBITDA net leverage to remain low at around 0.7x in 2024-2025 and to rise to 1.3 in 2026 as Fitch assumes hydrocarbon prices to decline towards mid-cycle levels. Increased capex for Rosebank, decommissioning costs, tax charges and dividend payments in line with Ithaca's dividend policy will turn free cash flow mostly negative until 2027. Nonetheless, Fitch expects Ithaca to maintain adequate rating headroom. Tax Burdens Manageable: Fitch believes the UK government's combined tax rate of 78% following revisions in July 2024 will be manageable for Ithaca, due to its material tax losses, which should allow Ithaca to offset future profits. Fitch estimates annual tax charge to average about USD290 million in 2024-2027 (or about 23% of Fitch-defined EBITDA). However, the pending tax changes and lack of clarity over their evolution reduce its longer-term cash flow visibility. It can also affect its ability to secure partners for large projects, such as Cambo, and influence investment decisions on non-operated assets. Derivation Summary Following completion of the Eni transaction, Ithaca's scale (2023: 70.2kboe/d) will increase to around 100kboe/d for 2024 (on a pro-forma basis) and its reserve base will increase to 219 mmboe from 156 mmboe on a 1P basis and to 368 mmboe from 242 mmboe on a 2P basis. This yields a reserve life of around six years on a 1P basis and around nine years on a 2P basis. Its operating costs will improve due to the Eni UK assets' lower cost at around USD15/boe based on 2024 guidance versus Ithaca's USD20.5/boe for 2023. Ithaca's scale as measured by production will be larger than Kosmos Energy Ltd.'s (B+/Stable; 2023: 63kboe/d) even after the latter ramps up production towards 80kboe/d at end-2024. Kosmos's 1P reserves of around 280 mmboe and 1P reserve life of 11 years are higher than that of Ithaca. However, Ithaca maintains lower leverage metrics through the cycle than Kosmos. Ithaca will be smaller by production than Harbour Energy PLC (BBB-/Stable) with pro-forma production of around 480kboe/d. Harbour's 2P pro-forma reserve life of around eight years is similar to that of Ithaca at around nine years after the Eni UK transaction. Harbour's pro-forma operating cost is lower at USD13-USD14/boe versus Ithaca's. Following divestitures, Energean plc's (BB-/Stable) scale (2023: 123kboe/d) is now comparable with Ithaca's. Energean benefits from a longer reserve life of around 21.2 years on a 2P basis and 2024 pro-forma production guidance, and lower production costs in the low teens. However, it is less diversified by resources (mainly gas after disposals) than Ithaca's balanced liquids/gas product mix. Fitch expects Ithaca to maintain lower leverage in 2024-2025 than Energean. Key Assumptions Fitch's Key Assumptions within Its Rating Case for the Issuer - Brent oil prices at USD80/bbl in 2024, USD70/bbl in 2025, USD65/bbl in 2026-2027 - Title Transfer Facility gas prices at USD10/mcf in 2024-2025, USD8/mcf in 2026, USD7/mcf in 2027 - Production increasing to 78kboe/d in 2024 on half-year consolidation of Eni UK assets, averaging 104kboe/d in 2024-2027 including Rosebank full-year contribution in 2027 - Operating costs (excluding over/under lift, tariff income and tanker costs) averaging USD23/boe in 2024-2027 - Annual capex averaging about USD610 million in 2024-2027 - Annual decommissioning costs averaging around USD130 million in 2024-2027 - Dividends in line with public dividend policy at 15%-30% of CFO in 2024-2027 and at 30% in 2024-2025 RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Substantial increase in scale (production and/or reserve levels) or business diversification while maintaining EBITDA net leverage below 1x or funds from operations (FFO) net leverage below 1.5x Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA net leverage above 2x or FFO net leverage above 2.5x on a sustained basis - Production falling significantly below 100kboe/d on a sustained basis or inability to replenish reserves to current levels Liquidity and Debt Structure Comfortable Liquidity: Ithaca held USD159 million of cash and USD585 million available liquidity under its RBL as of end-1H24 and as adjusted for the October 2024 refinancing. The refinancing extends the next upcoming bond maturity to 2029 from 2026 and the amortisation of the RBL to 2027. Ithaca also had USD35 million headroom as of October under its USD150 million optional capex facility that Ithaca can use to fund its share of development costs for the Rosebank project. Issuer Profile Ithaca is an exploration and production company focusing on the North Sea. Date of Relevant Committee 08 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 Ithaca has an ESG Relevance Score of '4' for Waste & Hazardous Materials Management; Ecological Impacts due to high decommissioning obligations relative to global peers, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Ithaca has an ESG Relevance Score of '4' for GHG Emissions & Air Quality due to the company's operations in a stringent climate-related regulatory environment, high cost of production and energy transition strategies focusing only on Scope 1 and 2 emissions. This has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Ithaca Energy (North Sea) Plc senior unsecured LT BB- New Rating RR4 BB-(EXP) PSG SIPP: Evelyn Partners Named as Joint Administrators ------------------------------------------------------- PSG SIPP Limited was placed in administration proceedings in the High Court of Justice Business and Property Courts of England and Wales, Insolvency & Companies List, Court Number: CR-2024-006423, and Adam Henry Stephens and Christopher Allen of Evelyn Partners LLP, were appointed as administrators on Oct. 25, 2024. PSG SIPP Limited is a pension scheme operator. Its registered office is at F1 Avonside Enterprise Park, New Broughton Road, Melksham, SN12 8BT and in the process of being changed to c/o Evelyn Partners LLP, RRS Department, 45 Gresham Street, London, EC2V 7BG. Its principal trading address is at F1 Avonside Enterprise Park, New Broughton Road, Melksham, SN12 8BT. The joint administrators can be reached at: Adam Henry Stephens Evelyn Partners LLP RRS Department 45 Gresham Street London, EC2V 7BG -- and -- Christopher Allen Evelyn Partners LLP RRS Department 14th Floor 103 Colmore Row Birmingham B3 3AG For further details, contact: Administrators Tel No: 0121 710 5200 Optional alternative contact name: Tanja Waack SPORTRADAR MANAGEMENT: Fitch Affirms & Withdraws 'BB-' LongTerm IDR ------------------------------------------------------------------- Fitch Ratings has affirmed Sportradar Management Ltd's (SRAD) Long-Term Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook and subsequently withdrawn the rating. Fitch has also affirmed and withdrawn Sportradar Capital S.a.r.l's senior secured rating. The ratings have been withdrawn for commercial purposes. Key Rating Drivers There has been no material change in SRAD's credit profile since the previous rating action on October 3, 2023. The affirmation reflects SRAD's continued positive operating performance with solid growth across betting technology & solutions and sports content, technology and solutions (as of 1H24) supported by an improving Fitch-defined EBITDA margin around 14% and a stable positive free cash flow (FCF) margin around 8%. The company benefits from an asset-light business model, low churn and positive industry trends, particularly in the US, where SRAD has benefited from consistent EBITDA growth after heavy investment in sports rights deals. Fitch believes the US offers fresh growth opportunities with the potential for further states to legalise gambling, albeit at a slower pace than recent years. SRAD benefits from no debt, as defined by Fitch excluding lease liabilities, supporting ample leverage headroom at the 'BB- 'rating and a strong liquidity position. SRAD began a USD200 million share repurchase programme in 2Q24, although Fitch believes the company has sufficient funds to cover the programme without materially impairing its liquidity profile. Rating constraints include a lack of commitment to a target leverage policy, exposure to sports rights inflation risk and relatively small scale. M&A event risk also constrains the rating. The sports data rights industry remains fragmented and may benefit from consolidation via economies of scale. Derivation Summary SRAD's Fitch-defined EBITDA of around EUR100 million is smaller than that of data analytics business services peers such as Dun & Bradstreet Holdings, Inc. (BB-/Positive). It has strong geographic diversification and good contracted revenue visibility. SRAD has weaker product diversification than Dun & Bradstreet, with full exposure to the betting industry and exposure to sports rights renewal and inflation risk. SRAD is the leader in a rapidly growing market, with revenue growth exceeding its mature investment grade-rated peers. Following its debt repayment, its financial profile will become more consistent with investment grade-rated data analytics and media companies. SRAD is exposed to betting risk in Managed Trading Services where it typically takes a share of trading profits or losses. In its view, its business model compares favourably with traditional bookmakers. It has no physical retail stores, is a clear leader in a market with only four main competitors, is less directly exposed to betting volumes or regulatory pressures, and is geographically diversified. Key Assumptions - Organic revenue growth of 14.2% in 2024 with the US the biggest contributor. This is followed by gradually declining organic revenue growth of 10.2% in 2025 and around 6% in further years. - Fitch-defined EBITDA margin to grow to 13.6% 2024 with a gradual increase to 14% by 2027, due to high operating leverage and revenue growth. - Total sports rights expense (including depreciation) at 24%-25% of revenue between 2024 and 2027. - Capex (excluding sports rights) at 1% of revenue to 2027. - Small working-capital outflows between 2024 and 2027. - No new M&A. - No dividends between 2024 and 2027. RATING SENSITIVITIES Not applicable as the ratings have been withdrawn. Liquidity and Debt Structure Strong Liquidity: At end-2Q24, SRAD had cash and cash equivalents of EUR322 million and an undrawn EUR220 million revolving credit facility (RCF). The company is in a net cash position and Fitch expects it to generate stable positive FCF over the next four years. Refinancing risk is limited. Generic Approach for Senior Secured Debt: Fitch rates SRAD's senior secured rating at 'BB+' in accordance with its Corporates Recovery Ratings and Instrument Ratings Criteria, under which Fitch applies a generic approach to instrument notching for 'BB' rated issuers. Fitch labels SRAD's debt as 'category 2 first lien' under its criteria, resulting in a Recovery Rating of 'RR2', with a two-notch uplift from the IDR to 'BB+'. Issuer Profile SRAD is a leading service provider of end-to-end sports data analytics solutions to both betting and media industries, as well as to sport federations and authorities. 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 SRAD has an ESG Relevance Score of '4' for Exposure to Social Impacts due to increasing regulatory scrutiny on the sector, greater awareness around social implications of gaming addiction and an increasing focus on responsible gaming, in the UK and increasingly in other markets where the company is present. This factor has a negative impact on the credit profile, as already reflected in the rating, and is relevant to the rating in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Sportradar Capital S.a.r.l senior secured LT BB+ Affirmed RR2 BB+ senior secured LT WD Withdrawn Sportradar Management Ltd LT IDR BB- Affirmed BB- LT IDR WD Withdrawn VICTORIA PLC: S&P Lowers LongTerm ICR to 'B-', Outlook Negative --------------------------------------------------------------- S&P Global Ratings lowered its long-term issuer credit rating on U.K.-headquartered flooring products manufacturer and distributor Victoria PLC to 'B-' from 'B'. At the same time, S&P lowered its issue rating on Victoria's EUR739 million bonds to 'B-', with an unchanged recovery rating at '3' and recovery prospects of 50%-70% (rounded estimated: 55%). The negative outlook reflects the continued uncertainty on the timing of the recovery in the demand environment to support the uplift in Victoria's operating performance. In addition, the approach of its 2026 maturities elevates the pressure. The downgrade reflects a material deviation in expected operating performance for fiscal 2025, owing to continued volume weakness. For the first half of fiscal 2025, Victoria's results are significantly lower than anticipated with guidance for topline contracting about 10% year on year to about GBP580 million owing to continued volume weakness. Overall, the flooring market has seen volume declines close to 20%-25% compared with 2019 levels. While Victoria's decline has remained on top of the overall market due to the sustained pricing position and market leadership in key markets across U.K. and Europe, there has nonetheless been substantial depletion in EBITDA generation, with guidance at approximately GBP50 million for the half year. S&P said, "As such, we have revised down our base case for fiscal 2025, expecting revenue decline by about 8% and S&P Global Ratings-adjusted EBITDA to approximately GBP120 million. This is a material deviation from our previous forecast for 1.5%-2.0% revenue growth and adjusted EBITDA slightly above GBP160 million. As a result, key credit metrics for fiscal 2025 are significantly weaker than our previous expectations. We estimate S&P Global Ratings' adjusted debt to EBITDA--including preference shares with noncash interest treated as debt—at about 9.5x-10.0x (around 7.0x-7.5x excluding preference shares). This is compared with our previous forecast for adjusted leverage of 7.0x. Additionally, EBITDA interest coverage is now expected at 1.5x (previously approximately 2.0x). However, decline in EBITDA is likely partially offset by improvements in working capital management, and normalized capital expenditure (capex) such that free operating cash flow (FOCF) generation will be positive for fiscal 2025 at about GBP40 million." S&P said, "While uplift in the demand environment will remain challenged, we assume Victoria will gradually benefit from operational reorganization initiatives. Under our new base-case projections, we assume a return to annual revenue growth of about 3.0% in fiscal 2026, primarily stemming from gradual recovery of volumes as housing transactions pick up and consumers' discretionary spending increases. There are initial signs or recovery, although not yet stabilized, with leading indicators such as gradually increasing mortgage approvals in U.K. and Europe as interest rates start coming down. However, uncertainty about the timing of the recovery remains high. In the meantime, Victoria remains focused on operational reorganization to streamline the business. Key initiatives involve optimizing benefits from the recent completion of the full integration of Balta's U.K. carpet business, integration of the procurement process along with reorganization and optimization of ceramics production. Combined cost initiatives are expected to bring savings of approximately GBP25 million-GBP30 million across the next 12-18 months, although heavily weighted toward fiscal 2026. We therefore forecast S&P Global Ratings' adjusted EBITDA to recover to about GBP150 million-GBP155 million in fiscal 2026, although this remains sensitive to recovery in the operating environment. "We assume Victoria will generate positive FOCF over the next 12 months to maintain adequate liquidity to self-fund operations. As Victoria prioritizes working capital management, in particular on inventory, we anticipate modest working capital inflows in both fiscal 2025 and 2026. Alongside expected EBITDA recovery and stable capex spending around GBP60 million annually on maintenance and reorganization projects, we forecast FOCF generation around GBP45 million-GBP50 million in fiscal 2026. We therefore anticipate Victoria's credit metrics to gradually improve in fiscal 2026, although remaining elevated. We forecast adjusted debt to EBITDA to come down to about 8.0x with EBITDA interest coverage in the 1.5x-2.0x range. Positively, according to our estimates, the group maintains an adequate liquidity position as of September 30, 2024, including a cash balance which comfortably enables the group to run its operations and a largely undrawn RCF. "The approaching 2026 maturities increase the pressure on Victoria to refinance in a timely manner. The super senior RCF is due February 2026, and the EUR489 million senior secured notes are due August 2026. Given our expectation of positive FOCF and gradual improvement in credit metrics, we think that the group still has some headroom to address upcoming debt maturities in a timely manner. That said, Victoria is highly dependent on a supportive operating environment and the timing of a recovery remains uncertain. "The negative outlook reflects our expectation that given continued weak customer demand driving volume decline, S&P Global Ratings' adjusted debt to EBTIDA is anticipated at about 9.5x-10.0x in fiscal 2025 and remain elevated in the next 12 months. Given the uncertain timing of the recovery trajectory in the operating environment, we could likely downgrade Victoria if the company's operational performance deviates further such that deleveraging falters and FOCF remains negative and if we saw increasing debt refinancing risk relating to the 2026 maturities creating liquidity pressure. "We could lower our ratings on Victoria PLC to 'CCC+' or lower within the next 12 months if the company underperforms our base-case forecast and demonstrates lower-than-anticipated EBITDA generation such that adjusted debt to EBITDA--including preference shares with noncash interest treated as debt--is above 10.0x without prospects of deleveraging and if we saw increasing debt refinancing risk relating to the 2026 maturities creating liquidity pressure. "In addition, we could take a negative rating action if we continued to see negative FOCF generation or EBITDA interest coverage approaching 1.0x. This could stem from continued weakness in volume demand or operational setbacks with reorganizational cost savings not materializing. "We could revise our outlook to stable if Victoria is able to sustainably improve operational performance such that adjusted debt to EBITDA comes down towards 7.0x supported by positive FOCF generation and EBITDA interest coverage of approximately 2.0x. This could occur if the company's revenue and EBITDA generation improves substantially driven by recovery in volume demand and successful realization of cost benefits from reorganizational projects. We would also require Victoria to present a deliverable refinancing plan ahead of the 2026 maturities. "Environmental, social, and governance factors are an overall neutral consideration in our credit rating analysis of flooring products provider Victoria. As a manufacturer of soft floorings and ceramic tiles, we think that Victoria is exposed to environmental risks linked to the emission of greenhouse gases related to product manufacturing and generation of waste. That said, the company has invested in green energy through solar panels and wind turbines to generate energy on site and uses efficient IT technology to cut carpet rolls to minimize waste." =============== X X X X X X X X =============== [*] BOND PRICING: For the Week October 28 to November 1, 2024 ------------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- Altice France Holding 10.500 5/15/2027 USD 29.885 NCO Invest SA 10.000 12/30/2026 EUR 0.152 Ferralum Metals Group 10.000 12/30/2026 EUR 28.000 Marginalen Bank Banka 12.039 SEK 8.805 NCO Invest SA 10.000 12/30/2026 EUR 0.152 IOG Plc 12.585 9/22/2025 EUR 1.176 AFE SA SICAV-RAIF 10.556 7/15/2030 EUR 50.075 Codere Finance 2 Luxe 11.000 9/30/2026 EUR 45.017 Fastator AB 12.500 9/26/2025 SEK 40.031 Turkiye Government Bo 10.400 10/13/2032 TRY 46.000 Fastator AB 12.500 9/25/2026 SEK 32.509 Saderea DAC 12.500 11/30/2026 USD 47.599 Tinkoff Bank JSC Via 11.002 USD 42.875 Oscar Properties Hold 11.270 7/5/2024 SEK 0.116 Kvalitena AB publ 10.067 4/2/2024 SEK 45.750 UkrLandFarming PLC 10.875 3/26/2018 USD 1.913 Privatbank CJSC Via U 10.250 1/23/2018 USD 3.635 Plusplus Capital Fina 11.000 7/29/2026 EUR 7.235 R-Logitech Finance SA 10.250 9/26/2027 EUR 15.000 Codere Finance 2 Luxe 11.000 9/30/2026 EUR 44.916 Altice France Holding 10.500 5/15/2027 USD 29.709 Bilt Paper BV 10.360 USD 1.058 Avangardco Investment 10.000 10/29/2018 USD 0.186 Fastator AB 12.500 9/24/2027 SEK 41.290 Immigon Portfolioabba 10.055 EUR 15.624 Bulgaria Steel Financ 12.000 5/4/2013 EUR 0.216 Ilija Batljan Invest 10.007 SEK 10.000 Sidetur Finance BV 10.000 4/20/2016 USD 0.767 Privatbank CJSC Via U 11.000 2/9/2021 USD 0.500 Transcapitalbank JSC 10.000 USD 1.450 Privatbank CJSC Via U 10.875 2/28/2018 USD 5.326 Societe Generale SA 23.510 6/23/2026 USD 6.625 Elli Investments Ltd 12.250 6/15/2020 GBP 1.070 Societe Generale SA 23.500 3/3/2025 USD 48.920 UBS AG/London 10.000 3/23/2026 USD 31.980 Deutsche Bank AG/Lond 12.780 3/16/2028 TRY 46.772 Phosphorus Holdco PLC 10.000 4/1/2019 GBP 0.143 BLT Finance BV 12.000 2/10/2015 USD 10.500 Deutsche Bank AG/Lond 14.900 5/30/2028 TRY 48.421 NTRP Via Interpipe Lt 10.250 8/2/2017 USD 1.002 Serica Energy Chinook 12.500 9/27/2019 USD 1.500 Bank Vontobel AG 14.000 3/5/2025 CHF 9.400 Leonteq Securities AG 19.000 11/22/2024 CHF 22.240 Societe Generale SA 20.000 11/28/2025 USD 11.530 Finca Uco Cjsc 13.000 5/30/2025 AMD 0.000 UniCredit Bank GmbH 12.800 2/28/2025 EUR 37.450 Societe Generale SA 20.000 7/21/2026 USD 3.070 Societe Generale SA 11.000 7/14/2026 USD 16.800 UBS AG/London 10.250 3/10/2025 EUR 47.050 UBS AG/London 11.000 1/20/2025 EUR 47.850 Evocabank CJSC 11.000 9/27/2025 AMD 9.900 BNP Paribas Issuance 20.000 9/18/2026 EUR 28.220 Societe Generale SA 26.640 10/30/2025 USD 1.300 Goldman Sachs Interna 16.288 3/17/2027 USD 22.630 Citigroup Global Mark 25.530 2/18/2025 EUR 0.010 KPNQwest NV 10.000 3/15/2012 EUR 0.820 Ukraine Government Bo 11.000 2/16/2037 UAH 33.076 Ukraine Government Bo 11.000 4/20/2037 UAH 33.063 Ukraine Government Bo 11.000 4/24/2037 UAH 35.816 Petromena ASA 10.850 11/19/2018 USD 0.622 Bilt Paper BV 10.360 USD 1.058 Elli Investments Ltd 12.250 6/15/2020 GBP 1.070 Banco Espirito Santo 10.000 12/6/2021 EUR 0.058 UkrLandFarming PLC 10.875 3/26/2018 USD 1.913 Tonon Luxembourg SA 12.500 5/14/2024 USD 2.216 Phosphorus Holdco PLC 10.000 4/1/2019 GBP 0.143 BNP Paribas Emissions 15.000 9/25/2025 EUR 40.480 Bank Vontobel AG 12.000 6/17/2025 CHF 30.800 Basler Kantonalbank 14.200 9/17/2025 CHF 50.690 Bank Vontobel AG 20.000 7/31/2025 CHF 42.200 Raiffeisen Switzerlan 11.000 1/3/2025 CHF 29.380 DZ Bank AG Deutsche Z 18.500 3/28/2025 EUR 32.670 DZ Bank AG Deutsche Z 17.600 6/27/2025 EUR 31.210 DZ Bank AG Deutsche Z 18.900 3/28/2025 EUR 45.470 DZ Bank AG Deutsche Z 21.200 3/28/2025 EUR 42.020 DZ Bank AG Deutsche Z 23.600 3/28/2025 EUR 39.460 DZ Bank AG Deutsche Z 12.500 12/31/2024 EUR 47.520 DZ Bank AG Deutsche Z 10.500 3/28/2025 EUR 49.770 DZ Bank AG Deutsche Z 16.400 3/28/2025 EUR 44.220 Landesbank Baden-Wuer 11.000 2/27/2026 EUR 22.750 Landesbank Baden-Wuer 12.000 2/27/2026 EUR 23.360 Swissquote Bank SA 20.060 5/22/2025 CHF 43.290 Landesbank Baden-Wuer 16.000 1/3/2025 EUR 20.220 Landesbank Baden-Wuer 14.000 6/27/2025 EUR 19.030 Landesbank Baden-Wuer 16.000 6/27/2025 EUR 19.030 Landesbank Baden-Wuer 21.000 6/27/2025 EUR 20.370 Vontobel Financial Pr 26.450 1/24/2025 EUR 20.206 Raiffeisen Schweiz Ge 14.500 1/29/2025 CHF 50.400 Swissquote Bank Europ 20.300 1/29/2025 USD 52.310 Bank Julius Baer & Co 18.690 3/7/2025 CHF 47.750 Leonteq Securities AG 20.000 3/11/2025 CHF 19.880 Raiffeisen Switzerlan 13.000 3/11/2025 CHF 50.270 Raiffeisen Switzerlan 16.500 3/11/2025 CHF 19.930 Vontobel Financial Pr 16.000 3/28/2025 EUR 26.240 Swissquote Bank Europ 25.320 2/26/2025 CHF 32.920 DZ Bank AG Deutsche Z 13.200 3/28/2025 EUR 49.470 DZ Bank AG Deutsche Z 13.200 3/28/2025 EUR 39.030 Leonteq Securities AG 16.000 3/4/2025 CHF 46.750 Raiffeisen Switzerlan 16.000 3/4/2025 CHF 20.440 Landesbank Baden-Wuer 11.500 2/28/2025 EUR 24.310 Landesbank Baden-Wuer 15.000 2/28/2025 EUR 22.010 Landesbank Baden-Wuer 19.000 2/28/2025 EUR 20.800 Landesbank Baden-Wuer 16.000 1/2/2026 EUR 25.950 Landesbank Baden-Wuer 16.000 6/27/2025 EUR 21.850 Landesbank Baden-Wuer 15.000 1/3/2025 EUR 26.970 DZ Bank AG Deutsche Z 18.600 3/28/2025 EUR 45.200 DZ Bank AG Deutsche Z 23.100 12/31/2024 EUR 34.520 DZ Bank AG Deutsche Z 23.400 12/31/2024 EUR 29.310 Zurcher Kantonalbank 23.000 3/5/2025 CHF 48.300 Leonteq Securities AG 24.000 4/23/2025 CHF 41.760 Swissquote Bank Europ 18.530 3/5/2025 CHF 50.390 Bank Vontobel AG 26.000 3/5/2025 CHF 42.600 Bank Vontobel AG 12.000 3/5/2025 CHF 44.200 DZ Bank AG Deutsche Z 20.400 3/28/2025 EUR 30.580 Swissquote Bank SA 24.070 5/6/2025 CHF 41.310 Bank Vontobel AG 11.000 4/11/2025 CHF 17.000 Raiffeisen Schweiz Ge 16.000 7/4/2025 CHF 49.550 Leonteq Securities AG 22.200 4/29/2025 CHF 48.260 Leonteq Securities AG 14.000 10/15/2025 CHF 49.200 Landesbank Baden-Wuer 13.000 4/24/2026 EUR 26.870 Bank Vontobel AG 14.250 5/30/2025 USD 45.300 Landesbank Baden-Wuer 11.500 4/24/2026 EUR 25.470 Raiffeisen Schweiz Ge 13.000 3/25/2025 CHF 48.540 Leonteq Securities AG 21.000 11/27/2024 EUR 47.470 DZ Bank AG Deutsche Z 19.000 12/31/2024 EUR 39.770 DZ Bank AG Deutsche Z 17.600 12/31/2024 EUR 46.690 DZ Bank AG Deutsche Z 14.200 12/31/2024 EUR 15.750 DZ Bank AG Deutsche Z 12.800 12/31/2024 EUR 48.840 DZ Bank AG Deutsche Z 14.200 12/31/2024 EUR 46.100 DZ Bank AG Deutsche Z 17.300 12/31/2024 EUR 41.610 BNP Paribas Emissions 13.000 12/30/2024 EUR 40.510 Vontobel Financial Pr 11.000 12/31/2024 EUR 43.480 Vontobel Financial Pr 13.000 12/31/2024 EUR 41.450 Vontobel Financial Pr 14.750 12/31/2024 EUR 39.620 Vontobel Financial Pr 16.750 12/31/2024 EUR 38.040 Vontobel Financial Pr 14.750 12/31/2024 EUR 47.080 Vontobel Financial Pr 17.250 12/31/2024 EUR 44.450 Vontobel Financial Pr 20.000 12/31/2024 EUR 42.230 DZ Bank AG Deutsche Z 17.100 12/31/2024 EUR 41.130 DZ Bank AG Deutsche Z 15.500 12/31/2024 EUR 35.400 Landesbank Baden-Wuer 12.000 1/3/2025 EUR 22.480 Landesbank Baden-Wuer 15.000 1/3/2025 EUR 18.900 Landesbank Baden-Wuer 15.000 1/3/2025 EUR 47.430 Leonteq Securities AG 20.000 1/22/2025 CHF 15.110 Raiffeisen Schweiz Ge 15.000 1/22/2025 CHF 28.880 Leonteq Securities AG 20.800 2/5/2025 CHF 43.200 DZ Bank AG Deutsche Z 11.500 12/31/2024 EUR 18.170 DZ Bank AG Deutsche Z 12.700 12/31/2024 EUR 42.770 Landesbank Baden-Wuer 19.000 1/3/2025 EUR 18.510 Landesbank Baden-Wuer 22.000 1/3/2025 EUR 17.280 Landesbank Baden-Wuer 25.000 1/3/2025 EUR 16.390 Landesbank Baden-Wuer 19.000 6/27/2025 EUR 19.910 Landesbank Baden-Wuer 10.500 1/2/2026 EUR 18.810 Leonteq Securities AG 20.000 1/22/2025 CHF 47.600 Landesbank Baden-Wuer 14.000 1/24/2025 EUR 19.990 Landesbank Baden-Wuer 18.000 1/3/2025 EUR 17.460 Leonteq Securities AG 21.000 12/18/2024 CHF 46.870 Zurcher Kantonalbank 14.000 6/17/2025 USD 49.410 Bank Vontobel AG 14.500 4/4/2025 CHF 43.600 DZ Bank AG Deutsche Z 22.800 3/28/2025 EUR 41.360 Vontobel Financial Pr 29.200 1/17/2025 EUR 44.214 Raiffeisen Schweiz Ge 16.000 2/19/2025 CHF 46.480 Bank Vontobel AG 16.000 2/10/2025 CHF 47.300 Landesbank Baden-Wuer 11.000 1/2/2026 EUR 23.350 Landesbank Baden-Wuer 13.000 6/27/2025 EUR 22.300 Leonteq Securities AG 18.000 2/20/2025 CHF 45.580 Landesbank Baden-Wuer 10.500 4/24/2026 EUR 24.910 Bank Vontobel AG 11.000 4/29/2025 CHF 23.600 Bank Vontobel AG 15.000 4/29/2025 CHF 48.400 Landesbank Baden-Wuer 10.500 4/28/2025 EUR 24.880 Landesbank Baden-Wuer 19.000 4/28/2025 EUR 23.160 Bank Vontobel AG 12.000 4/11/2025 CHF 42.700 Vontobel Financial Pr 23.250 6/27/2025 EUR 42.550 DZ Bank AG Deutsche Z 16.500 12/27/2024 EUR 17.440 Bank Julius Baer & Co 19.400 1/30/2025 CHF 47.300 DZ Bank AG Deutsche Z 14.300 12/31/2024 EUR 36.110 Bank Vontobel AG 25.000 11/11/2024 CHF 49.900 Landesbank Baden-Wuer 10.500 11/22/2024 EUR 27.490 Landesbank Baden-Wuer 16.000 11/22/2024 EUR 20.540 Vontobel Financial Pr 12.750 12/31/2024 EUR 47.480 Leonteq Securities AG 11.000 1/9/2025 CHF 50.280 Bank Vontobel AG 13.500 1/8/2025 CHF 3.800 Vontobel Financial Pr 16.500 12/31/2024 EUR 34.770 Vontobel Financial Pr 18.500 12/31/2024 EUR 33.650 Vontobel Financial Pr 20.250 12/31/2024 EUR 32.620 Vontobel Financial Pr 11.250 12/31/2024 EUR 39.110 Vontobel Financial Pr 13.000 12/31/2024 EUR 37.490 Vontobel Financial Pr 14.750 12/31/2024 EUR 36.050 Vontobel Financial Pr 22.500 12/31/2024 EUR 48.230 Swissquote Bank Europ 16.030 1/16/2025 USD 52.970 Leonteq Securities AG 24.000 1/16/2025 CHF 26.990 Vontobel Financial Pr 20.250 12/31/2024 EUR 20.330 Leonteq Securities AG 24.000 1/13/2025 CHF 7.210 Vontobel Financial Pr 12.500 12/31/2024 EUR 41.360 Vontobel Financial Pr 10.750 12/31/2024 EUR 43.440 Bank Vontobel AG 21.000 12/23/2024 CHF 46.500 DZ Bank AG Deutsche Z 13.400 12/31/2024 EUR 39.930 DZ Bank AG Deutsche Z 22.500 12/31/2024 EUR 40.800 Leonteq Securities AG 18.000 12/27/2024 CHF 43.270 Landesbank Baden-Wuer 16.500 4/28/2025 EUR 23.260 Vontobel Financial Pr 14.250 12/31/2024 EUR 39.540 Vontobel Financial Pr 17.500 12/31/2024 EUR 47.470 Inecobank CJSC 10.000 4/28/2025 AMD 0.000 UniCredit Bank GmbH 10.700 11/22/2024 EUR 42.640 UniCredit Bank GmbH 10.400 2/28/2025 EUR 48.890 UniCredit Bank GmbH 11.600 2/28/2025 EUR #N/A N/A UniCredit Bank GmbH 13.500 2/28/2025 EUR 49.840 Landesbank Baden-Wuer 10.000 10/24/2025 EUR 20.420 Landesbank Baden-Wuer 14.000 10/24/2025 EUR 21.100 Vontobel Financial Pr 18.000 12/31/2024 EUR 51.930 DZ Bank AG Deutsche Z 10.750 12/27/2024 EUR 15.190 BNP Paribas Emissions 14.000 12/30/2024 EUR 47.580 Landesbank Baden-Wuer 15.000 3/28/2025 EUR 16.950 Leonteq Securities AG 20.000 12/11/2024 CHF 42.980 HSBC Trinkaus & Burkh 14.500 12/30/2024 EUR 19.960 Leonteq Securities AG 24.000 1/9/2025 CHF 19.140 Leonteq Securities AG 23.000 1/9/2025 CHF 43.360 Erste Group Bank AG 14.500 5/31/2026 EUR 31.000 JP Morgan Structured 15.500 11/4/2024 USD 49.290 UniCredit Bank GmbH 16.550 8/18/2025 USD 19.340 DZ Bank AG Deutsche Z 14.000 12/20/2024 EUR 45.480 Bank Vontobel AG 11.500 1/14/2025 EUR 50.400 UniCredit Bank GmbH 10.700 2/3/2025 EUR 16.820 UniCredit Bank GmbH 10.700 2/17/2025 EUR 17.100 Raiffeisen Schweiz Ge 10.000 12/31/2024 CHF 47.670 Landesbank Baden-Wuer 11.000 3/28/2025 EUR 18.790 Landesbank Baden-Wuer 13.000 3/28/2025 EUR 17.650 Leonteq Securities AG 25.000 1/3/2025 CHF 33.860 Leonteq Securities AG 21.000 1/3/2025 CHF 18.070 UniCredit Bank GmbH 14.000 12/31/2024 EUR 49.360 UniCredit Bank GmbH 14.800 12/31/2024 EUR 48.050 UniCredit Bank GmbH 15.700 12/31/2024 EUR 45.920 UniCredit Bank GmbH 16.600 12/31/2024 EUR 44.390 HSBC Trinkaus & Burkh 16.300 12/30/2024 EUR 20.380 HSBC Trinkaus & Burkh 15.200 12/30/2024 EUR 21.070 HSBC Trinkaus & Burkh 13.100 12/30/2024 EUR 22.740 HSBC Trinkaus & Burkh 11.100 12/30/2024 EUR 24.880 HSBC Trinkaus & Burkh 13.400 3/28/2025 EUR 24.650 Landesbank Baden-Wuer 10.000 6/27/2025 EUR 21.220 Landesbank Baden-Wuer 14.000 6/27/2025 EUR 19.400 HSBC Trinkaus & Burkh 11.600 3/28/2025 EUR 26.150 HSBC Trinkaus & Burkh 18.100 12/30/2024 EUR 12.410 HSBC Trinkaus & Burkh 15.700 12/30/2024 EUR 13.560 DZ Bank AG Deutsche Z 18.200 3/28/2025 EUR 46.100 BNP Paribas Emissions 11.000 12/30/2024 EUR 49.790 Bank Vontobel AG 10.000 12/23/2024 EUR 49.600 UniCredit Bank GmbH 12.900 11/22/2024 EUR 33.530 UniCredit Bank GmbH 14.200 11/22/2024 EUR 31.530 UniCredit Bank GmbH 19.300 12/31/2024 EUR 45.840 Leonteq Securities AG 10.340 8/31/2026 EUR 45.010 UniCredit Bank GmbH 11.500 2/28/2025 EUR 49.420 UniCredit Bank GmbH 13.800 2/28/2025 EUR 46.380 UniCredit Bank GmbH 14.500 2/28/2025 EUR 49.890 UniCredit Bank GmbH 20.000 12/31/2024 EUR 42.480 UniCredit Bank GmbH 10.700 2/28/2025 EUR 34.360 UniCredit Bank GmbH 11.700 2/28/2025 EUR #N/A N/A UniCredit Bank GmbH 13.100 2/28/2025 EUR 46.500 Finca Uco Cjsc 12.000 2/10/2025 AMD 0.000 HSBC Trinkaus & Burkh 11.100 12/30/2024 EUR 23.600 HSBC Trinkaus & Burkh 10.300 11/22/2024 EUR 23.770 UBS AG/London 21.600 8/2/2027 SEK 18.980 DZ Bank AG Deutsche Z 19.100 12/31/2024 EUR 37.040 DZ Bank AG Deutsche Z 21.300 12/31/2024 EUR 33.860 Vontobel Financial Pr 13.250 12/31/2024 EUR 47.490 UniCredit Bank GmbH 19.300 12/31/2024 EUR 47.620 UBS AG/London 17.500 2/7/2025 USD 17.800 Armenian Economy Deve 10.500 5/4/2025 AMD 0.000 Vontobel Financial Pr 11.000 12/31/2024 EUR 35.050 Leonteq Securities AG 20.000 3/21/2025 CHF 46.710 Societe Generale SA 15.360 11/8/2024 USD 33.000 Landesbank Baden-Wuer 12.000 1/24/2025 EUR 19.570 Landesbank Baden-Wuer 15.500 1/24/2025 EUR 16.580 Zurcher Kantonalbank 10.500 2/4/2025 EUR 44.950 HSBC Trinkaus & Burkh 15.100 12/30/2024 EUR 49.060 HSBC Trinkaus & Burkh 16.100 12/30/2024 EUR 19.960 HSBC Trinkaus & Burkh 15.000 3/28/2025 EUR 23.090 HSBC Trinkaus & Burkh 11.300 6/27/2025 EUR 27.390 HSBC Trinkaus & Burkh 12.600 11/22/2024 EUR 21.430 HSBC Trinkaus & Burkh 11.400 12/30/2024 EUR 24.270 HSBC Trinkaus & Burkh 15.100 3/28/2025 EUR 23.520 HSBC Trinkaus & Burkh 11.000 3/28/2025 EUR 26.560 HSBC Trinkaus & Burkh 13.400 6/27/2025 EUR 26.500 HSBC Trinkaus & Burkh 15.200 12/30/2024 EUR 11.380 HSBC Trinkaus & Burkh 16.300 3/28/2025 EUR 10.160 HSBC Trinkaus & Burkh 15.700 11/22/2024 EUR 19.590 HSBC Trinkaus & Burkh 10.000 11/22/2024 EUR 25.200 HSBC Trinkaus & Burkh 13.900 12/30/2024 EUR 44.120 HSBC Trinkaus & Burkh 12.800 3/28/2025 EUR 45.680 Landesbank Baden-Wuer 18.000 11/22/2024 EUR 18.300 Landesbank Baden-Wuer 14.500 11/22/2024 EUR 21.890 HSBC Trinkaus & Burkh 17.400 12/30/2024 EUR 15.790 Bank Vontobel AG 12.000 11/11/2024 CHF 47.100 Landesbank Baden-Wuer 11.000 11/22/2024 EUR 27.510 HSBC Trinkaus & Burkh 19.600 12/30/2024 EUR 14.540 HSBC Trinkaus & Burkh 12.900 12/30/2024 EUR 46.950 HSBC Trinkaus & Burkh 10.250 12/30/2024 EUR 33.070 HSBC Trinkaus & Burkh 17.500 12/30/2024 EUR 41.070 UniCredit Bank GmbH 19.600 12/31/2024 EUR 35.160 UniCredit Bank GmbH 19.700 12/31/2024 EUR 40.010 BNP Paribas Emissions 17.000 12/30/2024 EUR 40.550 BNP Paribas Emissions 17.000 12/30/2024 EUR 33.870 BNP Paribas Emissions 17.000 12/30/2024 EUR 44.490 HSBC Trinkaus & Burkh 22.250 6/27/2025 EUR 15.550 Basler Kantonalbank 10.000 1/20/2025 EUR 48.980 BNP Paribas Emissions 13.000 12/30/2024 EUR 47.680 BNP Paribas Emissions 14.000 12/30/2024 EUR 43.920 BNP Paribas Emissions 16.000 12/30/2024 EUR 47.340 BNP Paribas Emissions 16.000 12/30/2024 EUR 35.140 Bank Vontobel AG 20.500 11/4/2024 CHF 23.300 HSBC Trinkaus & Burkh 15.900 3/28/2025 EUR 22.690 HSBC Trinkaus & Burkh 13.300 6/27/2025 EUR 26.210 HSBC Trinkaus & Burkh 15.600 11/22/2024 EUR 19.150 HSBC Trinkaus & Burkh 11.750 6/27/2025 EUR 48.080 HSBC Trinkaus & Burkh 12.750 6/27/2025 EUR 12.870 Leonteq Securities AG 24.000 12/27/2024 CHF 31.080 HSBC Trinkaus & Burkh 15.500 6/27/2025 EUR 44.930 HSBC Trinkaus & Burkh 17.500 6/27/2025 EUR 13.600 HSBC Trinkaus & Burkh 10.250 6/27/2025 EUR 41.210 Leonteq Securities AG 23.000 12/27/2024 CHF 35.440 Bank Vontobel AG 10.000 11/4/2024 EUR 44.400 Leonteq Securities AG 10.000 11/12/2024 CHF 43.470 Bank Vontobel AG 10.500 5/12/2025 EUR 49.600 ACBA Bank OJSC 11.500 3/1/2026 AMD 0.000 National Mortgage Co 12.000 3/30/2026 AMD 0.000 ACBA Bank OJSC 11.000 12/1/2025 AMD 0.000 HSBC Trinkaus & Burkh 13.500 12/30/2024 EUR 43.680 Leonteq Securities AG 25.000 12/11/2024 CHF 23.040 BNP Paribas Issuance 19.000 9/18/2026 EUR 0.980 Leonteq Securities AG 25.000 12/18/2024 CHF 25.620 UBS AG/London 12.000 11/4/2024 EUR 42.550 Corner Banca SA 10.000 11/8/2024 CHF 43.710 Bank Vontobel AG 15.500 11/18/2024 CHF 25.400 UniCredit Bank GmbH 18.800 12/31/2024 EUR 41.200 UniCredit Bank GmbH 13.000 11/22/2024 EUR 31.770 UniCredit Bank GmbH 11.900 11/22/2024 EUR 36.310 UniCredit Bank GmbH 10.900 11/22/2024 EUR 38.980 UniCredit Bank GmbH 10.200 11/22/2024 EUR 44.990 UniCredit Bank GmbH 10.000 11/22/2024 EUR 37.290 UniCredit Bank GmbH 11.000 11/22/2024 EUR 43.380 Ameriabank CJSC 10.000 2/20/2025 AMD 9.700 Landesbank Baden-Wuer 11.000 1/3/2025 EUR 15.200 UniCredit Bank GmbH 18.000 12/31/2024 EUR 37.380 HSBC Trinkaus & Burkh 14.100 12/30/2024 EUR 21.850 HSBC Trinkaus & Burkh 16.000 3/28/2025 EUR 23.080 HSBC Trinkaus & Burkh 11.500 6/27/2025 EUR 28.060 HSBC Trinkaus & Burkh 14.400 3/28/2025 EUR 10.010 HSBC Trinkaus & Burkh 12.800 11/22/2024 EUR 22.000 HSBC Trinkaus & Burkh 11.500 3/28/2025 EUR 48.070 UniCredit Bank GmbH 11.600 12/31/2024 EUR 49.370 UniCredit Bank GmbH 10.500 4/7/2026 EUR 29.830 UniCredit Bank GmbH 10.500 12/22/2025 EUR 36.260 Societe Generale SA 21.000 12/26/2025 USD 26.860 EFG International Fin 11.120 12/27/2024 EUR 40.950 UBS AG/London 11.750 12/9/2024 EUR 45.500 Armenian Economy Deve 11.000 10/3/2025 AMD 0.000 Bank Julius Baer & Co 12.720 2/17/2025 CHF 23.950 Landesbank Baden-Wuer 13.000 1/3/2025 EUR 13.930 Corner Banca SA 12.000 12/16/2024 CHF 50.370 UBS AG/London 20.000 11/29/2024 USD 17.810 UniCredit Bank GmbH 18.500 12/31/2024 EUR 47.180 UniCredit Bank GmbH 17.200 12/31/2024 EUR 36.710 Finca Uco Cjsc 13.000 11/16/2024 AMD 0.000 Ukraine Government Bo 11.000 3/24/2037 UAH 32.988 Ukraine Government Bo 11.000 4/1/2037 UAH 32.972 Ukraine Government Bo 11.000 4/8/2037 UAH 32.961 Ukraine Government Bo 11.000 4/23/2037 UAH 32.940 Credit Agricole Corpo 10.200 12/13/2027 TRY 47.575 Lehman Brothers Treas 11.000 12/19/2011 USD 0.100 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 11.250 12/31/2008 USD 0.100 Lehman Brothers Treas 13.000 12/14/2012 USD 0.100 Lehman Brothers Treas 13.432 1/8/2009 ILS 0.100 Lehman Brothers Treas 16.800 8/21/2009 USD 0.100 Lehman Brothers Treas 18.250 10/2/2008 USD 0.100 Lehman Brothers Treas 13.000 7/25/2012 EUR 0.100 Lehman Brothers Treas 16.000 10/28/2008 USD 0.100 Lehman Brothers Treas 10.600 4/22/2014 MXN 0.100 Lehman Brothers Treas 15.000 6/4/2009 CHF 0.100 Lehman Brothers Treas 10.000 10/23/2008 USD 0.100 Lehman Brothers Treas 11.750 3/1/2010 EUR 0.100 Lehman Brothers Treas 16.000 11/9/2008 USD 0.100 Lehman Brothers Treas 11.000 2/16/2009 CHF 0.100 Lehman Brothers Treas 10.000 10/22/2008 USD 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 12.000 7/13/2037 JPY 0.100 Lehman Brothers Treas 10.000 6/11/2038 JPY 0.100 Lehman Brothers Treas 17.000 6/2/2009 USD 0.100 Lehman Brothers Treas 12.400 6/12/2009 USD 0.100 Lehman Brothers Treas 16.000 10/8/2008 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 14.900 11/16/2010 EUR 0.100 Lehman Brothers Treas 14.900 9/15/2008 EUR 0.100 Bulgaria Steel Financ 12.000 5/4/2013 EUR 0.216 Sidetur Finance BV 10.000 4/20/2016 USD 0.767 Lehman Brothers Treas 11.000 6/29/2009 EUR 0.100 Lehman Brothers Treas 10.000 3/27/2009 USD 0.100 Lehman Brothers Treas 10.500 8/9/2010 EUR 0.100 Privatbank CJSC Via U 10.875 2/28/2018 USD 5.326 Tonon Luxembourg SA 12.500 5/14/2024 USD 2.216 PA Resources AB 13.500 3/3/2016 SEK 0.124 Teksid Aluminum Luxem 12.375 7/15/2011 EUR 0.619 Lehman Brothers Treas 13.500 6/2/2009 USD 0.100 Lehman Brothers Treas 11.000 7/4/2011 USD 0.100 Lehman Brothers Treas 10.442 11/22/2008 CHF 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 13.150 10/30/2008 USD 0.100 Lehman Brothers Treas 23.300 9/16/2008 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 EFG International Fin 20.000 11/8/2024 EUR 49.130 UniCredit Bank GmbH 11.100 2/28/2025 EUR 17.980 UniCredit Bank GmbH 11.500 2/28/2025 EUR 1.900 UniCredit Bank GmbH 14.500 11/22/2024 EUR 48.840 UniCredit Bank GmbH 19.100 12/31/2024 EUR 41.700 UniCredit Bank GmbH 18.800 12/31/2024 EUR 34.430 UniCredit Bank GmbH 13.400 8/22/2025 EUR 22.360 ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2024. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. * * * End of Transmission * * *