/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/241111.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 11, 2024, Vol. 25, No. 226 Headlines C R O A T I A HRVATSKA POSTANSKA: Fitch Alters Outlook on 'BB' IDR to Positive G E R M A N Y HH2E AG: To Begin Insolvency Proceedings LILIUM NV: Appoints KPMG to Explore M&A Options I R E L A N D NORTH WESTERLY IX: Fitch Assigns 'B-(EXP)sf' Rating on Cl. F Bonds THUNDER LOGISTICS 2024-1: DBRS Finalizes BB(low) Rating on E Notes N E T H E R L A N D S VEON LTD: UHY LLP Raises Going Concern Doubt S W E D E N NORTHVOLT AB: Long-Term Capital Needs Top US$900 Million, CEO Says SBB-SAMHALLSBYGGNADSBOLAGET: Fitch Keeps CCC+ IDR on Watch Negative T U R K E Y AYDEM YENILENEBILIR: Fitch Alters Outlook on 'B' IDR to Positive LIMAK ISKENDERUN: Fitch Lowers Rating on $370MM Sr. Secured Notes U N I T E D K I N G D O M AARDVARK CLEAR: FRP Advisory Named as Joint Administrators CMA LASERS: Moorfields Named as Joint Administrators HARBOUR 2 PLC: DBRS Gives B(low) Rating on Class X Notes HOCHANDA GLOBAL: Leonard Curtis Named as Joint Administrators HS UPSTREAM: Macintyre Hudson Named as Joint Administrators NEWDAY FUNDING: Fitch Affirms 'B+sf' Final Rating on Two Tranches PRAECLARUS GROUP: CG & Co. Named as Joint Administrators Q C POLYMER: Hudson Weir Named as Joint Administrators REACTION ENGINES: PricewaterhouseCoopers Named as Administrators SALUS (ABBEY COURT): Begbies Traynor Named as Joint Administrators STAPLEFORD PARK: Luxury Wedding Venue Enters Liquidation STELLER SYSTEMS: Faces Liquidation Over Unpaid Debts [*] Kroll Expands Restructuring Team With ACE Advisory Talent X X X X X X X X [*] BOND PRICING: For the Week November 4 to November 8, 2024 - - - - - ============= C R O A T I A ============= HRVATSKA POSTANSKA: Fitch Alters Outlook on 'BB' IDR to Positive ---------------------------------------------------------------- Fitch Ratings has revised Croatian-based Hrvatska Postanska Banka, dionicko drustvo's (HPB) Outlook to Positive from Stable, while affirming its Long-Term Issuer Default Rating (IDR) at 'BB' and Viability Rating (VR) at 'bb'. The revision of the Outlook reflects Fitch's expectations of a gradual improvement of its asset quality, helped by favourable operating conditions for Croatian banks, which should also benefit the bank's risk and financial profiles. Key Rating Drivers VR Drives IDR: HPB's ratings balance a moderate franchise, weaker-than-peers', but stabilising, asset quality against improved profitability and stable capitalisation, funding and liquidity. Improved Operating Environment: Croatia's strong economic growth outlook and strengthened sovereign credit profile have improved opportunities for Croatian banks to maintain consistently profitable operations. A record of income convergence towards EU averages, backed by robust GDP growth, structural improvements of banks' asset quality and diminished structural weaknesses following eurozone accession further support its assessment. Accordingly, Fitch has revised up its assessment of the operating environment for Croatian banks to 'bbb' from 'bbb-'. Franchise Drives Business Profile: HPB's improved market position is underpinned by the consolidation of Nova hrvatska banka d.d., acquired through a recovery and resolution process in April 2022. However, its market share of 9% by total assets at end-1H24 remains moderate in Croatia's small and highly concentrated banking sector. Credit Risks Dominate: The bank's risk profile mainly reflects credit risk surrounding its core retail and SME lending. Concentration risks are primarily driven by public sector exposures. Its sizeable non-loan exposures are of low risk. Asset Quality Weaker than Peers': HPB's asset-quality metrics remain weaker than peers', with a Stage 3 loans ratio of 8.2% at end-1H24 versus sector average of 3.7%. Fitch expects the Stage 3 loans ratio to decrease gradually over the next two years due to slow write-offs and continuing work-outs of legacy problem loans. Specific coverage of Stage 3 loans is adequate. Improved Profitability: Profitability in 2023-1H24 was driven by higher interest rates, adequate cost controls and low impairment charges. Fitch expects core profitability to moderate over the next two years, but to remain healthy, due to narrowing margins and a rise in loan impairment charges. High Capital Ratios: HPB's capital consists entirely of common equity Tier 1 (CET1) capital. The CET1 ratio was 22% at end-1H24 (end-2023: 22.5%), backed by strong earnings and modest growth in risk-weighted assets (RWAs). Cash pay-outs are planned to be moderate and earnings retention should support the bank's CET1 ratio target of above 22% over 2H24-2025, leaving sizeable headroom over regulatory requirements. This supports its assessment of HPB's leverage (measured as tangible equity/tangible assets), which is weaker than larger domestic peers', particularly in light of its growth targets. Primarily Deposit-Funded: HPB is almost exclusively funded by customer deposits, with a sizeable share of highly granular and growing retail deposits, complemented by funds from the government and state-owned enterprises, other corporates and SMEs. Wholesale funding is limited but growing to cover minimum requirement for own funds and eligible liabilities (MREL) requirements. Fitch expects liquidity buffers to remain strong in 2024 and 2025. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Fitch would likely revise HPB's Outlook to Stable if the bank experiences a further deterioration in asset quality with Stage 3 loans ratio exceeding 9%, resulting in pressure on its capitalisation and operating profitability metrics without clear prospects for recovery. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Fitch would likely upgrade HPB's ratings if the bank demonstrates its ability to strengthen asset quality, with the Stage 3 ratio remaining at or below 7% and its overall financial profile remaining stable. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS HPB's 'BB' long-term deposits are rated in line with its Long-Term IDR, as Fitch views the likelihood of default on deposits as the same as that of the bank. This view considers the absence of full depositor preference in Croatia, and HPB's small buffer of junior and senior non-preferred debt available to protect depositors in a resolution. At the same time, Fitch expects HPB to meet its MREL with senior preferred debt and equity, without using deposits. The short-term deposit rating of 'B' maps to a 'BB' long-term deposit rating. HPB's Government Support Rating (GSR) of 'no support' reflect Fitch's view that due to the implementation of the EU's Bank Recovery and Resolution Directive (BRRD), senior creditors of the bank cannot rely on full extraordinary support from the sovereign if the bank becomes non-viable. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES HPB's deposit ratings are primarily sensitive to changes in the bank's IDRs. Therefore, any upgrade or downgrade of the bank's VR and IDRs would likely result in an upgrade or downgrade of the bank's deposit ratings. The deposit ratings are also sensitive to the implementation of full depositor preference in Croatia (Fitch does not expect this before 2025), which would make HPB's deposit ratings eligible for a one-notch uplift over its Long-Term IDR, according to Fitch's criteria. This is provided the bank is required to maintain resolution buffers or holds sufficiently large total debt buffers (above 10% of the resolution group RWAs on a sustained basis) to accrue protection to depositors in a bank resolution. An upgrade of the GSR would be contingent on a positive change in the sovereign's propensity to support the bank. While not impossible, this is highly unlikely, given existing resolution legislation. VR ADJUSTMENTS The asset quality score of 'bb-' is above the implied category score of 'b' due to the following adjustment: historical and future metrics (positive). The earnings and profitability score of 'bb+' is below the 'bbb' category implied score due to the following adjustment reason: earnings stability (negative). The capitalisation and leverage score of 'bb+' is below the implied category score of 'a' due to the following adjustment: risk profile and business model (negative). ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Hrvatska postanska banka, dionicko drustvo LT IDR BB Affirmed BB ST IDR B Affirmed B Viability bb Affirmed bb Government Support ns Affirmed ns long-term deposits LT BB Affirmed BB short-term deposits ST B Affirmed B ============= G E R M A N Y ============= HH2E AG: To Begin Insolvency Proceedings ---------------------------------------- Bloomberg News reports that project developer HH2E AG is set to file for self-administration after it failed to secure financing for one of Germany's largest hydrogen projects. HH2E has been fundraising for its first development project, a hydrogen production plant in the Baltic port of Lubmin. While it said negotiations resulted in final agreements, majority shareholder Foresight Group Holdings Ltd. ultimately decided against providing the necessary financing, HH2E said in a statement, Bloomberg relays. Foresight didn't comment on its role in the breakdown of financing discussions in a separate statement. Bloomberg relates that the firm said its fund level investment in HH2E is not material and that it maintains its conviction in the significant investment opportunity presented by green hydrogen. The fuel made from renewable energy is considered crucial to helping Europe reach its climate targets and steering power-hungry industries like steel away from fossil fuels, the report notes. Germany has outlined ambitious plans for building out hydrogen infrastructure, but uncertainty about costs and logistics have so far made investors hesitate. Equinor ASA earlier this year was said to be in advanced talks to become a key investor in the German hydrogen startup. According to Bloomberg, HH2E said it wants to pursue a structured corporate restructuring process and focus on securing a new investor. "We remain committed to maintaining continuity and stability in our operations as we work toward a long-term solution," Bloomberg quotes Chief Executive Officer Alexander Voigt as saying. "I am convinced we will soon find a strategic partner who shares our passion for green energy and can support HH2E AG's vision." Finding new investors in Germany's current political environment could be challenging in the short-term, the report notes. A government crisis has thrown a wrench into the country's energy goals, including important measures related to the expansion of hydrogen. HH2E AG manufactures hydro energy equipment. LILIUM NV: Appoints KPMG to Explore M&A Options ----------------------------------------------- Lilium N.V. announced on Nov. 5 that it has appointed KPMG to conduct an open, transparent and fair M&A process. First investor briefings will start soon. This followed the local court of Weilheim's approval of the insolvency filing of Lilium's German subsidiaries and the court's granting of Lilium's application for self-administration. Preliminary insolvency proceedings under self-administration are court-ordered restructuring proceedings aimed at preserving the business. The management remains in charge and leads the business through the proceedings, supported by restructuring experts. The court has appointed to the German subsidiaries' Boards of Management with immediate effect two restructuring-experienced lawyers, Prof. Dr. Gerrit Holzle and Dr. Thorsten Bieg as Chief Insolvency Officers (CIOs). Both have already successfully advised a large number of companies in crisis situations. Most recently, they worked for Senvion and The Social Chain AG, among others. They will now oversee the reorganization of Lilium's German subsidiaries. The Local Court of Weilheim has also appointed attorney Mr. Ivo-Meinert Willrodt, Managing Partner at PLUTA Rechtsanwalts GmbH, as the provisional custodian. The restructuring expert is an attorney and specialist lawyer for insolvency and restructuring law and has already acted as trustee for the solar car start-up Sono Motors and the drone manufacturer EMT, among others. His role is to protect the interests of the creditors in the proceedings. Lilium CEO Klaus Roewe welcomed the appointments: "With the support of our appointed custodian and the restructuring experts, we at Lilium remain fully focused on re-emerging following restructuring, with fresh investment to support the all-electric Lilium Jet's path to certification and entry into service." Work at Lilium's subsidiaries continues, with the more than 1,000 employees engaged in progressing towards the next significant program milestone, first manned flight, having been informed on the details of continued employee payment. The business has also informed affected suppliers, outlining expectations and procedural steps. The first two Lilium Jets are currently on the final assembly line, with the first aircraft having recently completed the initial low-voltage power-on milestone and due to advance shortly into the ground testing phase. The fuselage and wings of the third aircraft are currently in assembly at aerostructures suppliers Aciturri and Aernnova. End of October, Lilium engineers moved a fully assembled, conforming Lilium Jet airframe into the static test rig for structural testing, in a significant advance for the program. The structural strength test is an essential part of the testing plan for first manned flight and type certification. The business' current order pipeline consists of firm orders, reservations, options, and memoranda of understanding for more than 780 Lilium Jets to operators in the U.S., South America, Europe, Asia, and the Middle East. Lilium has been notified by NASDAQ that trading of the company's shares and warrants will be suspended at the opening of business on November 6. Following trading suspension, the Company's ordinary shares may commence trading over-the-counter, which may result in significantly lower trading volumes and could further depress the share price. Lilium N.V.'s Board of Directors on Nov. 4 authorized Lilium's listed entity, the Netherlands-registered public limited liability company (naamloze vennootschap) to file for insolvency. About Lilium Lilium (NASDAQ: LILM) -- www.lilium.com -- is creating a sustainable and accessible mode of high-speed, regional transportation for people and goods. Using the Lilium Jet, an all-electric vertical take-off and landing jet, designed to offer leading capacity, low noise, and high performance with zero operating emissions, Lilium is accelerating the decarbonization of air travel. Working with aerospace, technology, and infrastructure leaders, and with announced sales and indications of interest in Europe, the United States, China, Brazil, UK, and the Kingdom of Saudi Arabia, Lilium's 1000+ strong team includes approximately 500 aerospace engineers and a leadership team responsible for delivering some of the most successful aircraft in aviation history. Founded in 2015, Lilium's headquarters and manufacturing facilities are in Munich, Germany, with teams based across Europe and the U.S. Munich, Germany-based PricewaterhouseCoopers GmbH Wirtschaftsprufungsgesellschaft, the Company's auditor since 2019, issued a "going concern" qualification in its report dated March 15, 2024, citing that the Company has incurred recurring losses from operations since its inception and expects to continue to generate operating losses that raise substantial doubt about its ability to continue as a going concern. ============= I R E L A N D ============= NORTH WESTERLY IX: Fitch Assigns 'B-(EXP)sf' Rating on Cl. F Bonds ------------------------------------------------------------------ Fitch Ratings has assigned North Westerly IX ESG CLO DAC expected ratings. The assignment of final ratings is contingent on the receipt of final documents conforming to information already reviewed. Entity/Debt Rating ----------- ------ North Westerly IX ESG CLO DAC A-L LT AAA(EXP)sf Expected Rating A-N LT AAA(EXP)sf Expected Rating B-1 LT AA(EXP)sf Expected Rating B-2 LT AA(EXP)sf Expected Rating C LT A(EXP)sf Expected Rating D LT BBB-(EXP)sf Expected Rating E LT BB-(EXP)sf Expected Rating F LT B-(EXP)sf Expected Rating M-1 LT NR(EXP)sf Expected Rating M-2 LT NR(EXP)sf Expected Rating Sub Notes LT NR(EXP)sf Expected Rating Transaction Summary North Westerly IX ESG CLO DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds will be used to fund a portfolio with a target par of EUR400 million that is actively managed by Aegon Asset Management UK PLC and North Westerly Holding BV, a wholly-owned subsidiary of Aegon Asset Management Holding BV. The CLO will have an approximately five-year reinvestment period and an eight-year weighted average life (WAL), which can be extended by one year if the WAL test step-up condition is met one year after the closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'/'B-'. The Fitch weighted average rating factor of the identified portfolio is 24.6. High Recovery Expectations (Positive): At least 90% of the portfolio will comprise senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate of the identified portfolio is 63.7%. Diversified Portfolio (Positive): The transaction will have a concentration limit for the 10 largest obligors at 20%. The transaction will also include various concentration limits, including a maximum exposure to the three-largest Fitch-defined industries in the portfolio at 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. WAL Step-Up Feature (Neutral): The transaction can extend the WAL by one year, to eight years, on the step-up date, which can be one year after closing at the earliest. The WAL extension is at the option of the manager but subject to conditions including tests satisfaction and the adjusted collateral principal amount being at least at the reinvestment target par balance. Portfolio Management (Neutral): The transaction will have a reinvestment period of about five years and include reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL used for the Fitch-stressed portfolio and matrices analysis is 12 months less than the WAL covenant at issue date. This is to account for structural and reinvestment conditions post-reinvestment period, including the meeting coverage tests and Fitch 'CCC' limitation, among others. This ultimately reduces the maximum possible risk horizon of the portfolio when combined with loan pre-payment expectations. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) across all ratings and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would lead to a downgrade of one notch on the class B to D notes, and have no impact on the class A, E and F notes. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of default and portfolio deterioration. Due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio, the class F notes display a rating cushion of three-notches, the class B to E notes have cushion of two notches, while the class A notes have no rating cushion. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR across all ratings and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to four notches for the notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR across all ratings and a 25% increase in the RRR across all ratings of Fitch-stressed portfolio would lead to upgrades of up to three notches, except for the 'AAAsf' rated notes. During the reinvestment period, based on the Fitch-stressed portfolio, upgrades may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the transaction's remaining life. After the end of the reinvestment period, upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority-registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for North Westerly IX ESG CLO DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. THUNDER LOGISTICS 2024-1: DBRS Finalizes BB(low) Rating on E Notes ------------------------------------------------------------------ DBRS Ratings GmbH finalized its provisional credit ratings on the following classes of notes issued by Thunder Logistics 2024-1 DAC (the Issuer): -- Class A notes at AAA (sf) -- Class B notes at AA (sf) -- Class C notes at A (low) (sf) -- Class D notes at BBB (low) (sf) -- Class E notes at BB (low) (sf) The trends on all classes are Stable. CREDIT RATING RATIONALE Thunder Logistics 2024-1 DAC is the securitization of a EUR 250 million floating-rate commercial real estate loan backed by a pan-European portfolio of 22 big box logistics properties spread across Spain, France, Germany, and the Netherlands, which are collectively managed by Logicor (the asset manager). The loan is regulated by a common terms agreement, and it is divided into four term facilities; term A to term D; with term facility A being advanced only to the French borrowers, and the other three facilities being advanced, respectively, to the Spanish borrowers, the German and Luxembourg borrowers, and the Dutch borrower (each a borrower and, together, the borrowers). The borrowers are limited-purpose entities established for the purposes of owning and managing the properties (in the case of the Propcos) and acting as holding companies (in the case of the Holdcos). They are all ultimately owned and controlled by The Blackstone Group Inc. (the Sponsor). On August 20, 2024, Goldman Sachs Bank Europe SE and Societe Generale S.A. (the loan sellers) advanced the loan to the borrowers. The purpose of the loan was (1) to refinance the existing indebtedness of members of the group (including, without limitation, accrued interest, hedge termination costs, break costs, prepayment fees and any other fees, costs, and expenses in relation thereto); (2) general corporate purposes (including making permitted distributions); and (3) financing or refinancing the financing costs. On June 1, 2024, CBRE Limited (CBRE) conducted valuations on the 22 properties and appraised their aggregate market value (MV) at EUR 381.9 million. CBRE also valued the property portfolio at EUR 398.13 million (the portfolio MV) on the assumption that the assets transact as part of a corporate sale and, as such, incur lower transaction costs. This translates into a day-one loan-to-value ratio (LTV) of 65.4% and 62.8% based on the aggregate MV and the portfolio MV, respectively. As of 31 May 2024 (the cut-off date), the property portfolio offered a total of 462,828 square meters (sqm) of gross lettable area (GLA) let to 23 different tenants at an occupancy level of 80.8%. Physical vacancy is concentrated in three assets which are situated in locations with strong supply and demand dynamics. Two of them, namely the Pla de Santa Maria asset in Spain and the Rouen 2 asset in France, were fully vacant on the cut-off date. In Morningstar DBRS' opinion, the strong fundamentals of the relevant submarkets and good state of maintenance of the properties will facilitate the letting process. At cut-off, the property portfolio generated EUR 19.5 million in-place gross rental income (GRI) and EUR 18.6 million net operating income (NOI), which reflects a day-one debt yield (DY) of 7.4%. When comparing the total in-place GRI with EUR 26.3 million estimated rental value under full occupancy assumption as per the CBRE valuation report, the portfolio is 26.0% under-rented. The properties are spread across four different European countries, namely Spain (37.4% by MV), France (36.1% by MV), Germany (17.8% by MV), and the Netherlands (8.7% by MV). The Sponsor acquired the properties through 13 separate transactions between 2019 and 2020. During the Sponsor's ownership, occupancy improved to 80.8% from 65.0% in 2020. The properties are all well-located in major distribution hubs and benefit from a well-diversified tenant base in the food retail, e-commerce, third-party logistics and manufacturing sectors, with strong tenants' commitment to the properties (majority of the properties were originally built-to-suit developments for them). At the cut-off date, the portfolio's weighted-average lease term to break and to expiry were 3.2 years and 4.4 years, respectively. Morningstar DBRS' long-term sustainable net cash flow (NCF) assumption for the property portfolio is EUR 16.9 million per annum (p.a.), representing a haircut of 9.0% to the in-place portfolio's NOI at cut-off. Based on a Morningstar DBRS' long-term sustainable cap rate assumption of 6.54%, the resulting Morningstar DBRS value is EUR 258.3 million, which represents a haircut of 32.4% to the CBRE valuation. The loan is interest-only and it is structured with a five-year fixed loan term. The loan margin reflects the WA margin payable on the notes at each IPD (excluding the class A liquidity reserve portion of the class A notes). On the closing date the loan margin was set at 2.42% p.a. However, this margin is subject to a contractual cap (the loan margin cap) which is set at 3.25% p.a. or 4.25% p.a. during a servicer extension period. Pursuant to an ongoing issuer costs letter entered into between the borrowers and the Issuer, the transaction's senior costs will be borne entirely by the borrowers. By the first loan interest payment date (IPD), each borrower is required to enter into a hedging agreement (either cap or swap) to hedge against increases in the interest payable under the loan due to fluctuations in the three-month Euribor. The hedging agreement is expected to be in the form of a cap to be entered into with HSBC Bank plc, providing coverage during the whole loan term. The notional amount will be equal to not less than 95.0% of the outstanding principal amount of the loan, and the strike rate must be set at no more than the higher of 4.0% p.a. and the level required to ensure a hedged interest cover ratio (ICR) of not less than 1.25 times (x). As per the CTA, failure to comply with any of the required hedging conditions outlined above will constitute a loan event of default (EoD). The loan features cash trap covenants based on DY and LTV. In particular, a cash trap event will occur if (i) the loan's LTV is greater than 72.79% and/or (ii) the loan's DY is less than 6.2%. The loan does not feature any financial default covenants prior to the occurrence of a permitted change of control (CoC). After the occurrence of a permitted CoC, at each IPD the borrowers must ensure that the loan's LTV does not exceed the lower of (i) the LTV at the date of the permitted CoC + 15% (on an absolute basis) and (ii) 80.0%. The DY, instead, must not fall below 85.0% of the DY on the date of the occurrence of the permitted CoC. The Sponsor can dispose of any assets securing the loan by repaying a release price of 100% of the allocated loan amount (ALA) up to the first-release price threshold (i.e. no release premium), which is 10% of the initial portfolio valuation. Once the first-release price threshold is met, the release price will be 105% of the ALA up to the second-release price threshold, which is 20% of the initial portfolio valuation. The release price will be 110% of the ALA thereafter. On or after the occurrence of a permitted CoC, the release price applicable on the disposal of a property will be 115% of the ALA of that property. On the closing date, the Issuer acquired the whole interest in the loan pursuant to the loan sale documents. For the purpose of satisfying the applicable risk retention requirements, Goldman Sachs Bank USA and Société Générale S.A., as the Issuer lenders, advanced a EUR 13.1 million loan (the Issuer loan) to the Issuer. The proceeds of the issuance of the notes were used by the Issuer, together with the amount borrowed under the Issuer loan, to acquire the loan from the loan sellers. A portion of the proceeds of the issuance of the Class A notes in an amount equal to EUR 11.4 million together with EUR 0.6 million of the amount drawn under the Issuer loan were used to fund a EUR 12.0 million liquidity reserve (the Issuer liquidity reserve) to provide liquidity support to, among other things, the interest payments to Class A and Class B (the covered notes). Morningstar DBRS estimated that the Issuer liquidity reserve will cover approximately 18 months of interest payments on the covered notes, based on a cap strike rate of 4.0% and a Euribor cap of 4.0% after the notes' expected maturity date in 2029, respectively. The Class E notes are subject to an available funds cap where the shortfall is attributable to an increase on the WA margin payable on the notes (however arising) or to a final recovery determination of the loan. The loan matures on November 15, 2029, which is approximately five years after the utilization date. There are no extension options. The final legal maturity of the notes is 17 November 2036, thus seven years after the loan maturity date. Morningstar DBRS is of the opinion that, if necessary, this would provide sufficient time to enforce on the loan collateral and ultimately repay the noteholders, given the security structure and the relevant jurisdictions involved in this transaction. Morningstar DBRS' credit ratings on the Class A, Class B, Class C, Class D, and Class E notes to be issued by the Issuer address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations are the initial principal amounts and the interest amounts. Notes: All figures are in euros unless otherwise noted. ===================== N E T H E R L A N D S ===================== VEON LTD: UHY LLP Raises Going Concern Doubt -------------------------------------------- VEON Ltd. disclosed in a Form 20-F Report filed with the U.S. Securities and Exchange Commission for the fiscal year ended December 31, 2023, that its auditor has expressed substantial doubt about the Company's ability to continue as a going concern. Melville, New York-based UHY LLP, the Company's auditor since 2024, issued a 'going concern' qualification in its report dated October 17, 2024, citing that the Company has been negatively impacted and will continue to be negatively impacted by the consequences of the Russian government's invasion of Ukraine, and has stated that these events or conditions indicate that a material uncertainty exists that may cast significant doubt (or raise substantial doubt as contemplated by PCAOB standards) on the Company's ability to continue as a going concern. As of December 31, 2023, the Company had $8.2 billion in total assets, $7.1 billion in total liabilities, and $1.1 billion in total equity. A full-text copy of the Company's Form 20-F is available at: https://tinyurl.com/bdhs4kuh About VEON Ltd. VEON Ltd., also known as VEON Group, is a multinational telecommunication and digital services company. Headquartered in Amsterdam, the company is publicly traded on Euronext Amsterdam and NASDAQ. =========== S W E D E N =========== NORTHVOLT AB: Long-Term Capital Needs Top US$900 Million, CEO Says ------------------------------------------------------------------ Bloomberg News reports that cash-strapped battery maker Northvolt AB is working on a plan to raise more than SEK10 billion (US$920 million) to continue its operations beyond the immediate horizon, according to its chief executive officer. "In the long term we need to secure a capitalization of somewhat north of 10 billion kronor in the coming year," CEO Peter Carlsson told reporters after a seminar in Stockholm on Nov. 6. "We are talking to existing owners as well as potential new investors." He wouldn't discuss the timing or size of a separate, smaller rescue package Northvolt is working on to tide the electric-vehicle supplier over its liquidity hurdles, the report says. Bloomberg News has previously reported that Northvolt is closing in on about $300 million in funding that includes debt and equity, citing people familiar with the matter. Northvolt spends about $100 million a month on operational costs, according to local media. According to Bloomberg, Mr. Carlsson said the company is working to improve customer deliveries and implement a strategic plan that involves cutting costs and either divesting or bringing in partners in parts of the business. Northvolt has received about $10 billion in debt and equity funding since its founding in 2017, Bloomberg says. But it's up against established Chinese competitors like Contemporary Amperex Technology Co. and BYD Co. that have had years to master the challenge of making battery cells and have much lower costs. Asked whether any of the new investors could be Chinese, Mr. Carlsson didn't rule out the possibility. "We are now looking at potential partnerships, including in Asia," Bloomberg quotes Mr. Carlsson as saying. "But those discussions are in an early phase." Strategic relationships have the potential to help Northvolt develop its battery-making expertise, Mr. Carlsson said. "It's interesting to exchange experiences around scaling up operationally and potentially finding benefits of scale that can bring us more rapidly to the volume advantage the industry requires," Mr. Carlsson said. Bloomberg notes that the company has struggled to ramp up cell production at its main plant near the Arctic Circle in Sweden, and costs from its expansion have been piling up. In response, Northvolt has scaled back major projects and narrowed its focus to increasing output. Separately, automaker Volvo Car AB last week began the process of taking over a joint venture with Northvolt and said any future battery production at the Gothenburg site on Sweden's west coast would be dependent on "third party or other partner involvement," Bloomberg reports. Bloomberg says the crisis at Northvolt is already hurting the area around its battery factory in Skelleftea, where an expansion project was driven into bankruptcy last month - cascading into several large bankruptcies among its suppliers. Northvolt AB operates as a renewable energy components. The Company offers batteries to replace fossil fuels with electricity that helps in energy generation and distribution from coal, oil, and natural gas. Northvolt serves auto industries in Europe. SBB-SAMHALLSBYGGNADSBOLAGET: Fitch Keeps CCC+ IDR on Watch Negative ------------------------------------------------------------------- Fitch Ratings is maintaining SBB - Samhallsbyggnadsbolaget i Norden AB's (SBB) Long-Term Issuer Default Rating (IDR) and its senior unsecured debt rating, both 'CCC+', on Rating Watch Negative (RWN). Fitch calculates SBB has sufficient liquidity to meet all of its unsecured debt maturities in 2025 following the receipt of SEK3.5 billion Sveafastigheter initial public offer (IPO) proceeds, assuming most of its remaining secured debt maturities are refinanced. SBB's next material bond maturity (EUR498 million outstanding/SEK5.8 billion) is due in September 2026. Despite the improved liquidity position, SBB's resultant credit profile, following multiple cash-generative transactions including the Sveafastigheter IPO and Castlelake JVs, is weak with a Fitch-forecast net debt/EBITDA near 32x in 2025. The RWNs primarily incorporate the SBB-contested formal claim from a sole bondholder of a covenant breach, which is currently proceeding in the UK courts. If the courts decide that a covenant breach did occur this could result in an event of default (EofD). Depending on relevant bondholders' reactions, such an outcome may result in a downgrade of SBB's ratings. Key Rating Drivers Successful Sveafastigheter Monetisation: SBB completed the public listing of its residential-for-rent subsidiary, Sveafastigheter AB on 18 October 2024. The IPO proceeds of about SEK3.5 billion were less than Fitch's expectations of SEK6 billion-SEK7 billion, due to SBB retaining a higher share in Sveafastigheter (56% against its expected below 50%), retaining the entity SBB Residential Property, and a larger discount to net asset value (NAV). These proceeds are expected to be used to repay SBB's January 2025 bond maturities. Sveafastigheter's asset base comprises most of SBB's residential-for-rent assets. It has also assumed SEK10.2 billion of SBB's secured bank debt and SEK1.7 billion of unsecured bonds (originally SBB bondholders) through a bond exchange programme. The bond exchange reduced SBB's nominal debt by SEK3.8 billion, of which SEK1.6 billion was unsecured bonds and the remainder subordinated hybrid bonds. Changed Credit Profile: SBB's credit profile has been fundamentally changed by its liquidity-raising transactions completed during 2024 and 2023. The majority of its property assets are now held via joint ventures (JVs) from which Fitch expects limited cash dividends to be paid, while its consolidated property portfolio of mainly community service investment property has been reduced to SEK27 billion, excluding its 56%-owned Sveafastigheter. SBB also held SEK16.6 billion in JV equity stakes and SEK8.2 billion in receivables from JVs at end-1H24. This includes its Nordiqus (education assets) equity stake (SEK9.4 billion) and vendor loan (SEK5.2 billion at nominal value), and other JVs. SBB's equity stake in Sveafastigheter adds SEK4.4 billion (using IPO share price). This asset base and wholly-owned investment properties compare with a Fitch-estimated SEK44 billion of remaining senior debt and SEK11 billion in hybrid bonds less SEK7 billion in cash pro forma for the IPO and bond exchange. This leaves SBB reliant on further proceeds being realised from its JV equity stakes to reduce leverage to a more sustainable level. Weak Financial Profile: SBB's leverage remains very high regardless of which metric is used. Without dividends from its JVs, Fitch forecasts net debt/EBITDA at around 32x in 2025. With hybrid coupons deferred, Fitch expects SBB to be able to cover cash interest expense during 2024-2027 with cash from operations. The key factor for SBB's sustainability will be its ability to continue raising liquidity to meet its sizable 2026 and 2027 bond maturities, particularly as the capital markets remain unreceptive. Options to Raise Liquidity: SBB needs to continue to raise cash through various options at its disposal, including asset sales, sale of retained JV stakes, raising external capital on its remaining wholly-owned community service portfolio through asset-backed transactions similar to the Castlelake JVs or another strategic partnership or IPO to meet debt maturities after 2025. If SBB were to segregate a portion of debt specifically for its community service portfolio, this would effectively make SBB an investment holding company for its remaining debt holders. EofD Claim Continues: SBB continues to face the risk of an EofD if the UK courts rule in favour of the formal claim by a sole bondholder of an interest coverage covenant breach tested in 2023. However, a final decision may not be reached until end-1H25. Meanwhile, SBB continues to pay interest (except recent hybrids) and principal when due, and is using the negative news from the EofD claim to make voluntary tender offers to buy back bonds and hybrids at a discount. Unreceptive Bond Market: SBB does not have capital markets access to refinance its unsecured bonds. This is due to several factors, including the EofD claim now under legal proceedings, SBB's high leverage and creditors' concerns about real estate values and their effect on SBB's portfolio when monetised as a 'distressed' seller, and refinance risk. Hybrids Downgraded: Following the payment of cash dividends and deferred January-June hybrid coupons, on 2 July 2024 SBB announced deferral of coupons on all four hybrid bonds issued by the parent entity. Therefore, Fitch has now classified the instruments as non-performing and downgraded them to 'C' from 'CCC-'. Derivation Summary Fitch views SBB's Nordic property portfolio as stable, supported by the education and community service properties' stable tenant base with long-term indexed leases. This is tempered by the regional location of some assets within SBB's portfolio. Within the community service portfolio, Assura plc (A-/Negative) builds and owns modern general practitioners' facilities in the UK, with approved rents indirectly paid by the state National Health Service and a similar 11.2 years weighted average unexpired lease term (WAULT). Its portfolio is much smaller than SBB's at GBP2.7 billion (EUR3.2 billion). Reflecting Assura's community service activities, its net initial yield as of September 2023 was 5.0% versus SBB's 5.3% for its Nordic community service assets at end-2023. Assura has a 99% occupancy rate and specific-use assets. Assura's downgrade rating sensitivity to 'BBB+' includes net debt/EBITDA greater than 9x. The smaller, but community service-akin Civitas Social Housing Limited (A-/Stable) and Triple Point Social Housing REIT PLC (A-/Negative) have the same 'BBB+' leverage downgrade rating sensitivity as Assura for their long WAULT, low vacancy rate, and special needs accommodation that also has a government rental income covenant (housing benefit). Under Fitch's EMEA Real Estate Navigator, many of SBB's portfolio-focused factors are investment-grade. Key Assumptions Fitch's Key Assumptions Within Its Rating Case for the Issuer - Moderate rental growth of 3.5% per year, driven by CPI-indexation and rental uplifts - Stable net rental income margins - No dividends from SBB's JVs - Cash shareholder loan interest from Nordiqus included - Completion of existing development projects and modest spend thereafter. Total capex to average around SEK350 million per year - Hybrid interest deferred - Interest derivatives retained by SBB following the Sveafastigheter IPO Recovery Analysis Its recovery analysis assumes that SBB would be liquidated rather than restructured as a going-concern (GC) in a default. Recoveries are based on the end-1H24 independent valuation of the investment property portfolio. Fitch has used the 1H24 non-pledged property values of around SEK22.7 billion as unencumbered investment property assets. This already deducts pledged properties transferred to Sveafastigheter post end-1H24. Fitch applies a standard 20% discount to these values. Fitch has adjusted SBB's unsecured and hybrid debt for bonds exchanged for newly issued bonds in Sveafastigheter. Fitch assumes no cash is available for recoveries. This analysis also attributes zero value to various investments in equity stakes, including the SEK10.2 billion Nordiqus equity, SEK4.4 billion Sveafastigheter equity and SEK5.3 billion Nordiqus vendor loan. After deducting a standard 10% for administrative claims, the total amount of unencumbered investment property assets Fitch assumes available to unsecured creditors is around SEK16.4 billion. In the debt hierarchy Fitch deducted the SEK2.3 billion SBB Residential Property AB preference shares, which rank ahead of SBB's unsecured creditors. The outstanding unsecured debt includes the benefit of the July 2024 settled bond exchange. Fitch's principal waterfall analysis generates a ranked recovery for senior unsecured debt of 'RR4' (a waterfall-generated recovery computation output percentage of 44% based on current metrics and assumptions). The 'RR4' indicates a 'CCC+' unsecured debt instrument rating. Given the structural subordination of SBB's hybrids, Fitch estimates a ranked recovery of 'RR6' with 0% expected recoveries. As loss-absorption has been triggered (coupons deferred) the instrument rating is 'C', four notches below SBB's IDR. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Evidence that refinancing risk has eased, including improved capital markets receptivity to SBB - Proceeds from successful disposals used to prepay the sizeable 2025 and 2026 debt maturities, and increasing liquidity - A material reduction in leverage Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Lack of progress in refinancing secured bank funding - Actions pointing to a widespread potential renegotiation of debt's terms and conditions, including a material reduction in lenders' terms sought to avoid a default - Further shrinking of the unencumbered investment property portfolio relative to unsecured debt would lead to a change in the Recovery Rating and further downgrade of the senior unsecured rating Liquidity and Debt Structure Improved Liquidity: SBB's available liquidity at end-1H24 was SEK5.6 billion (end-2023: SEK4.1 billion), of which SEK914 million was attributed to Sveafastigheter. This is further supported by about SEK3.5 billion Sveafastigheter IPO proceeds, together covering SBB's 2025 unsecured debt maturities. SBB has no revolving credit facilities available for drawdown. Assuming its remaining senior secured debt (mainly bank debt) is rolled over, SBB's unsecured maturities in 4Q24 and 2025 total SEK6.5 billion. This includes its net SEK5 billion January 2025 bonds. The next debt material maturity is its EUR498 million/SEK5.7 billion Eurobond in September 2026. SBB's 1H24 average cost of debt was 2.1%, excluding hybrids (averaging 3.3%), higher-coupon Morgan Stanley preference shares (13%) in SBB Residential Property AB and the debt raised in the non-consolidated Castlelake-funded SBB Infrastructure AB and SBB Social Facilities (375bp-500bp plus STIBOR/EURIBOR). Derivatives, together with fixed-rate debt, afford SBB interest rate coverage of all debt, for an average 3.1 years, pre-the Sveafastigheter IPO. SBB's on-balance sheet end-1H24 debt was a mix of secured (30%) and unsecured (70%) funding, excluding hybrids. 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 SBB has an ESG Relevance Score of '4' for Governance Structure to reflect previous key person risk (the previous CEO) and continuing different voting rights among shareholders affording greater voting rights to the key person. SBB has an ESG Relevance Score '4' for Financial Transparency, reflecting an ongoing investigation by the Swedish authorities into the application of accounting standards and disclosures. Both these considerations have a negative impact on the credit profile, and are relevant to the ratings in conjunction with other factors. These factors are, however, improving under the new SBB management. 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 ----------- ------ -------- ----- SBB – Samhallsbyggnadsbolaget i Norden AB LT IDR CCC+ Rating Watch Maintained CCC+ ST IDR C Rating Watch Maintained C Subordinated LT C Downgrade RR6 CCC- senior unsecured LT CCC+ Rating Watch Maintained RR4 CCC+ senior unsecured ST C Rating Watch Maintained C SBB Treasury Oyj senior unsecured LT CCC+ Rating Watch Maintained RR4 CCC+ =========== T U R K E Y =========== AYDEM YENILENEBILIR: Fitch Alters Outlook on 'B' IDR to Positive ---------------------------------------------------------------- Fitch Ratings has revised Aydem Yenilenebilir Enerji Anonim Sirketi's (Aydem) Outlook to Positive from Stable, while affirming its Long-Term Issuer Default Ratings (IDR) at 'B'. The revision of Outlook reflects its expectation of stronger credit metrics on the back of moderate capex, stabilised working capital and management's focus on deleveraging as its bond starts amortising in 2025. The rating trend will depend on Aydem's investment decision about its large battery storage project currently under assessment and its impact on leverage, and the company's ability to mitigate its rising exposure to merchant prices and foreign exchange (FX), as feed-in tariffs (FiT) gradually expire. The rating continues to reflect Aydem's large exposure to the Turkish economy with volatile macro indicators, small market share in Turkiye, decreasing share of FiT-eligible generation and rising FX risks. Rating strengths are low offtake risk, supportive regulation for renewable energy producers in Turkiye, reasonable scale, high profitability and consistently positive free cash flow (FCF) generation. Key Rating Drivers Stronger Financial Profile: Fitch forecasts funds from operations (FFO) net leverage at or below 4x over 2024-2027 (3.9x in 2023), which aligns with the tightened sensitivity for a rating upgrade. This is backed by its expectations of largely stable cash flow from operations close to USD100 million per year over 2024-2027, moderate expansion capex for smaller hybrid projects of USD63 million per year in 2025-2026 and dividends averaging USD21 million per year over 2024-2027. Fitch forecasts FFO interest coverage at around 3x on average over 2024-2027, also above its positive sensitivity for a 'B' rating. Rising Merchant Exposure: At end-June 2024, the average remaining FiT period was under two years. Fitch forecasts the share of FiT-eligible revenue to fall to around 70% in 2024, 54% in 2025, 30% in 2026 and below 15% in 2027, from about 80% in 2022-2023 as FiTs for the company's hydro and wind plants gradually expire. The increasing merchant exposure will also drive higher FX risk, which is largely neutralised by the indexation of FiT-based production. Fitch has tightened the company's debt capacity for the 'B' rating by 0.5x to reflect rising merchant exposure and FX risk. Moderate Capex Programme: In 2024-2027 Aydem plans to put into operation 140MW of new capacity in hybrid solar and wind plants. This is out of its expansion capex programme of 300MW of hybrid solar and wind plants in 2023-2027 (160MW already commissioned). Aydem's capex programme was reduced several times from its 2021 initial plans to commission around 700MW by 2023. Optional Battery Storage Project: Aydem has an optional project of 500MW each of battery storage and additional renewable capacity in solar and wind. The company expects to make an investment decision in 2025, and construction may start in 2026. This project is not part of its rating case and it could be worth investments of over USD400 million. If the project proceeds, Aydem will attract new debt, and the resulting leverage trend would be inconsistent with an upgrade. New Capacities Increase Diversification: In June 2024, Aydem's installed capacity was 72% derived from hydro plants, down from 84% at end-2021. Hydro plants are highly dependent on weather conditions and contribute to cash flow volatility, but receive a premium on wholesale prices if based on reservoirs. By 2026, the share of wind and solar plants should reach around 35%, which would make Aydem's generation mix more diversified and its production less volatile. Geographical diversification across Turkiye also slightly reduces operational volatility. Moderating Merchant Prices: Merchant prices were at around USD70/MWh on average over 9M24, down from around USD80/MWh in 2023 (accounting for the price cap). Aydem's average selling price is higher than merchant prices as its largest Goktash hydro plant can sell USD10-15/MWh above the merchant price due to its reservoir capacity, and Aydem receives a premium on merchant prices when selling through bilateral agreements with related-party supply companies. Its long-term forecast for Aydem's selling price is USD73/MWh, largely unchanged from previous expectations. Stabilised Working Capital: Aydem reported a working capital inflow of 17% of revenue in 1H24 and an outflow of 6% in 2023, after a large outflow of 34% of revenue in 2022. In 1H24 Aydem sold almost half of the production through spot sales on the energy exchange, with the rest sold through related-party supply companies. Selling through related parties allows Aydem to earn a premium on merchant price, but exposes it to longer trade receivables days and higher payment collection risk. Aydem does not have large reserves for receivables and expects them to be collected. Fitch views sales through the energy exchange as lower-risk. Over 2024-2028, Fitch forecasts moderate working capital outflow of 1%-3% of revenue. Supportive Regulation: Around 70% of Aydem's electricity generation in 2024 and 54% in 2025 are eligible for the renewable energy support mechanism, or YEKDEM, a law that provides fixed FiTs denominated in US dollars for 10 years. Assets under the YEKDEM framework benefit from a lack of price risk and low offtake risk as all renewable generation is purchased by the Energy Market Regulatory Authority. After 10 years, assets switch to merchant-market terms and start selling at wholesale prices in Turkish lira. Derivation Summary Aydem shares the same operating and regulatory environment as Turkish integrated utility, Zorlu Enerji Elektrik Uretim A.S. (B+/Stable). Zorlu Enerji benefits from higher revenue visibility than Aydem, as around 80% of its 2024 EBITDA will come from regulated activities in electricity distribution and contracted activities from renewables generation under the YEKDEM framework. Fitch expects this portion to slightly drop to 75% by end-2027. Also, Aydem's exposure to hydro leads to more volatile generation volumes compared with relatively stable production at Zorlu's geothermal power plants. Aydem has a moderately stronger leverage profile than Zorlu Enerji but is rated one notch lower due to Zorlu Enerji's higher debt capacity. Aydem's business profile compares well with that of Uzbekistan-based hydro power generator Uzbekhydroenergo JSC (UGE, BB-/Stable, Standalone Credit Profile (SCP) b+), due to higher revenue visibility supported by FiT and better asset quality. Uzbekhydroenergo has a similar debt capacity to Aydem but it is based on gross leverage. Uzbekhydroenergo's stronger SCP is supported by lower leverage. Aydem's operates in a weaker operating and regulatory environment than Energia Group Limited (BB/Stable), an integrated electricity generation and supply company operating across Northern Ireland and the Republic of Ireland. Similar to Aydem, Energia benefits from a large share of regulated and quasi-regulated EBITDA, but for Aydem Fitch expects this share to decrease over time. Energia benefits from a higher debt capacity than Aydem. Its financial profile is also moderately stronger. Key Assumptions Fitch's Key Assumptions Within its Rating Case for the Issuer - GDP growth in Turkiye of 3.5% per year over 2024-2028. Inflation of 60% in 2024 and averaging 20% per year in 2025-2027 - Electricity generation volumes at 2.4-2.7 TWh annually over 2024-2027 - Effective selling price of around USD73/MWh over 2024-2027 - Capex totalling around USD150 million over 2024-2026; battery project not included in forecasts - Dividend at about 35% of pre-dividend FCF on average over 2024-2027 Recovery Analysis KEY RECOVERY RATING ASSUMPTIONS - The recovery analysis assumes that Aydem would be a going concern (GC) in bankruptcy and that the company would be reorganised rather than liquidated - A 10% administrative claim - A GC EBITDA estimate of USD99 million reflects Fitch's view of a sustainable, post-reorganisation EBITDA level on which Fitch bases the valuation of the company - An enterprise value multiple of 5x - These assumptions result in its waterfall generated recovery computation (WGRC) for the senior secured debt in the 'RR3' band. However, according to Fitch's Country-Specific Treatment of Recovery Ratings Criteria, the Recovery Rating for Turkish corporate issuers is capped at 'RR4'. The Recovery Rating for the senior secured notes is therefore 'RR4' with a WGRC of 50%. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Increased visibility on new investments and ability to maintain a stronger financial profile and materially positive FCF, with FFO net leverage below 4x and FFO interest cover above 2.5x on a sustained basis Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Generation volumes or prices well below current forecasts, higher investment, a reduction in profitability on a sustained basis or a more aggressive financial policy leading to inability to maintain FFO net leverage below 4x and FFO interest cover above 2.5x on a sustained basis. This would result in the revision of the Outlook to Stable - FFO net leverage above 5x and FFO interest cover below 1.7 x on a sustained basis would lead to a downgrade - Inability to secure liquidity to meet bond amortisation payments on a timely basis would lead to a downgrade Liquidity and Debt Structure Adequate Liquidity: At end-1H24, Aydem had cash and cash equivalents of TRY2,897 million (USD89 million), and funds in an interest reserve account and other cash of TRY1,081 million (USD33 million). Fitch forecasts that Aydem will generate positive pre-dividend FCF of around USD50 million per year over 2024-2026. It faces bond amortisation payments of around USD135 million (20% of outstanding bond amount in total) in 2025 and in 2026. In its view, Aydem may need additional funding in 2026, while management expects to repay bond amortisation with internally generated cash flows. Rising FX Risk Exposure: Aydem's FX exposure will gradually become less balanced as the share of the company's US dollar-linked revenue will fall to about 70% in 2024, 54% in 2025, 30% in 2026 and below 15% from 2027. This will limit financial flexibility and increase the company's exposure to the volatile US dollar/Turkish lira exchange rate. This is mitigated by a partially amortising debt structure from 2025. Issuer Profile Aydem is a renewable energy producer with 1.2 GW of installed capacity across its hydro, wind and solar power plants in Turkiye. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Aydem Yenilenebilir Enerji Anonim Sirketi LT IDR B Affirmed B senior secured LT B Affirmed RR4 B LIMAK ISKENDERUN: Fitch Lowers Rating on $370MM Sr. Secured Notes ----------------------------------------------------------------- Fitch Ratings has downgraded Limak Iskenderun Uluslararasi Liman Isletmeciligi A.S.'s (LimakPort) USD370 million senior secured notes to 'B-' from 'B'. The Outlook is Negative. RATING RATIONALE The downgrade reflects LimakPort's operating underperformance in 2024 against management's budget in volumes and deterioration in cash flow generation, with EBITDA still materially below pre-earthquake figures despite a recovery in volumes. The Outlook remains Negative as debt sustainability under its Fitch base case (FBC) still relies on material volume growth over the next two years, particularly in view of a still uncertain environment due to persisting disruptions in the Red Sea. LimakPort maintains strong liquidity of USD45 million as of end-September 2024, of which USD37 million were mandatory reserves. KEY RATING DRIVERS Industrial Hinterland, Exposed to Competition - Revenue Risk - Volume: 'Midrange' LimakPort focuses on container handling, which accounts for more than 80% of its revenues. It also services cargo, roll-on/roll-off and dry bulk. The port mainly serves the needs of its dynamic hinterland in importing raw materials and exporting finished/semi-finished goods to the EU, Middle East and north Africa. This results in a diversified and balanced mix between imports and exports across the major ports in the basin. LimakPort faces competition from two alternative ports in the same area targeting the same volumes (Mersin Port and Assan Port). Both of these ports are generally used for containers and are nearing capacity. LimakPort is the only port in the area that is currently operating below capacity. Revenue Risk - Volume - Midrange Mainly Unregulated US Dollar Tariff - Revenue Risk - Price: 'Midrange' LimakPort's revenue is predominantly unregulated, because only tariffs for marine services (about 10% of revenue) are regulated by Ministry of Transportation. This gives significant price flexibility in the unregulated business as reflected by management's decision to increase tariffs in the previous years. The depreciation of the Turkish lira does not have a direct impact on LimakPort's tariffs, which are set in dollars. Revenue Risk - Price - Midrange Ample Capacity to Grow - Infrastructure Dev. & Renewal: 'Midrange' In 2023, Turkey suffered two major earthquakes that affected the port's infrastructure and key areas in the hinterland. Its available capacity is currently at 80% of the total port capacity of 1 million 20-foot equivalent units (TEU). This is still above the port's current utilisation of 0.5 million TEU. Growth capex linked to the port's capacity expansion is highly flexible and will only be rolled out if volumes exceed certain thresholds. This growth capex and increased capacity are required to service the company's debt. Infrastructure Dev. & Renewal - Midrange Fully Amortising Debt, Small Reserves - Debt Structure: 'Midrange' LimakPort's debt consists of a single tranche of USD370 million senior secured notes due in 2036, which are fully amortising and fixed-rate. The debt features typical project-finance protections, including limits on additional equally ranking debt and a distribution lock-up covenant of 1.25x. The structure benefits from a three-month operations and maintenance expenses reserve account, a six-month debt service reserve account and a capex reserve account covering 1.5-years of all capex and major maintenance costs. Positively, the port's long concession maturity in 2047 provides long-term financial flexibility. Debt Structure - 1 - Midrange Financial Profile LimakPort's performance in 2024 improved year-over-year due to a full year of operations and recovery of pre-earthquake volumes but were materially below expectations in volume growth and cash flow generation. As a consequence, the projected debt service coverage metrics under its FBC is weak at around 1.0x over the life of the notes, with some dependence of volume growth over the next two years. However, Fitch believes LimakPort has some margin of safety to continue meeting all its financial commitments, and any potential minor debt service shortfall in the short-to-medium-term will be covered by the ample liquidity available. PEER GROUP LimakPort's closest peer is the nearby Mersin Uluslararasi Liman Isletmeciligi A.S. Port (Mersin) which is rated 'BB-'/Stable. Mersin is the largest port in the region and Turkey's largest export-import port. This exposes Mersin to the same diversified yet volatile mix of volumes as LimakPort with a similarly well-connected hinterland. LimakPort is considerably smaller than Mersin, despite the location and hinterland similarities. Both ports are able to flexibly set tariffs as long as they are not excessive or discriminatory, although Limak's tariffs are lower than Mersin's. LimakPort benefits from a fully amortising and protective project finance debt structure as opposed to Mersin's corporate bullet structure. This leads to Mersin's key metric being leverage, while LimakPort's is the debt service coverage ratio. Mersin's rating is capped by Turkiye's sovereign IDR, while LimakPort's rating and Outlook reflects a low coverage ratio and the uncertainty about volume growth in the coming two years. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deterioration in port's operations and the cash flow generation, resulting in a weakening of projected debt service coverage metrics over the life of the debt. - Deterioration in available liquidity, reducing the margin of safety in case of underperformance Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improvement in port's operations and cash flow generation, resulting in an improvement of projected debt service coverage metrics over the life of the debt 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 ----------- ------ ----- Limak Iskenderun Uluslararasi Liman Isletmeciligi A.S. Limak Iskenderun Uluslararasi Liman Isletmeciligi A.S. /Project Revenues – Senior Secured Debt/1 LT LT B- Downgrade B =========================== U N I T E D K I N G D O M =========================== AARDVARK CLEAR: FRP Advisory Named as Joint Administrators ---------------------------------------------------------- Aardvark Clear Mine Limited was placed into administration proceedings in the Court of Session, Court Number: SC080167, and Michelle Elliot and Chad Griffin of FRP Advisory Trading Limited were appointed as administrators on Oct. 28, 2024. Aardvark Clear is into maufacturing. Its registered office is at 51 Newall Terrace, Dumfries, DG1 1LN (to be changed to C/o FRP Advisory Trading Limited, Level 2, The Beacon, 176 St Vincent Street, Glasgow, G2 5SG). Its principal trading address is at Shevock Estate, Insch, AB52 6XQ. The joint administrators can be reached at: Michelle Elliot Chad Griffin FRP Advisory Trading Limited Level 2, The Beacon 176 St Vincent Street Glasgow G2 5SGContact Tel No: 0141 212 4955 Alternative contact: Ryan McGee Email: cp.glasgow@frpadvisory.com CMA LASERS: Moorfields Named as Joint Administrators ---------------------------------------------------- CMA Lasers Limited was placed in administration proceedings in the High Court of Justice Business and Property Courts of England & Wales, Court Number: 005660 of 2024, and Michael Solomons and Andrew Pear of Moorfields were appointed as administrators on Oct. 24, 2024. Its registered office is at 8th Floor 1 Southampton Street, London, WC2R 0LR. Its principal trading address is at Ground Floor at 34A Hans Road, London, SW3 1RW. The joint administrators can be reached at: Michael Solomons Andrew Pear Moorfields 82 St John Street, London EC1M 4JN Telephone: 020 7186 1144 For further details, contact Michelle Sanchez Moorfields 82 St John Street London, EC1M 4JN Email: msanchez@moorfieldscr.com Tel No: 020 7186 1144 HARBOUR 2 PLC: DBRS Gives B(low) Rating on Class X Notes -------------------------------------------------------- DBRS Ratings Limited assigned credit ratings to the residential mortgage-backed notes issued by Harbour No. 2 PLC (Harbour 2 or the Issuer) as follows: -- Class A1 at AAA (sf) -- Class A2 at AAA (sf) -- Class B at AA (low) (sf) -- Class C at A (low) (sf) -- Class D at BBB (low) (sf) -- Class E at BB (high) (sf) -- Class F at B (high) (sf) -- Class X at B (low) (sf) The credit ratings on the Class A1 and Class A2 notes (together, the Class A notes) address the timely payment of interest and the ultimate repayment of principal on or before the final maturity date in January 2054. The credit ratings on the Class B, Class C, Class D, Class E, Class F, and Class X notes address the timely payment of interest once they are the senior-most class of notes outstanding, otherwise the ultimate payment of interest, and the ultimate repayment of principal on or before the final maturity date. Morningstar DBRS does not rate the Class Z or Class R notes or the residual certificates also issued in this transaction. CREDIT RATING RATIONALE The Issuer is a bankruptcy-remote special-purpose vehicle (SPV) incorporated in the UK. The collateralized notes (the Class A to Class F and Class Z notes) are backed by owner-occupied and buy-to-let mortgage loans originated by several originators, which ceased their lending operations after the financial crisis of 2008. The mortgage loans in the pool and their related security are governed by English law, Scottish law, or Northern Irish law. The portfolio was originally assembled by buying three different portfolios: the Wall portfolio (30.5% of the total pool); the MAQ portfolio (40.4%); and the Morag portfolio (29.1%). Each portfolio is serviced by a different servicer: the Wall portfolio is serviced by Intrum Mortgages UK Finance Limited (formerly Mars Capital Finance Limited), the MAQ portfolio is serviced by Pepper (UK) Limited, and the Morag portfolio is serviced by Topaz Finance Limited. On the closing date, Harbour No. 1 plc (Harbour 1) sold the portfolios to Isle of Wight Home Loans Limited (the Seller), an SPV fully owned by Barclays Bank PLC. On the same date, the Seller transferred all three portfolios to the Issuer. Harbour 2 is a securitization where the Seller is not the originator or servicer of the loan portfolio. This poses more risks than a traditional residential mortgage-backed security (RMBS) transaction, where the originator remains a mortgage lender in the jurisdiction of the securitized portfolio and services the assets, and consequently has a contractual duty and commercial incentives to support the securitizations of its assets. Furthermore, the transaction involves more than one sale of the underlying portfolio through different SPVs, which results in representations and warranties that are more limited than usual. Morningstar DBRS reviewed legal opinions on the validity of the transfers (from the vendors to the Seller and from the Seller to Harbour 1 that took place on Harbour 1 transaction's closing date as well as from Harbour 1 to the Seller and from the Seller to the Issuer that took place on the closing date for this transaction). The pool comprises around 44% of loans that are three or more months in arrears with only 35% of the pool balance currently clear of arrears. In addition to the pool's three-month arrears increasing since early 2023, longer arrears (12 months or longer) have also been increasing. Interest-only (IO) loans, including part and part loans, make up 83.2% of the mortgage portfolio, where the principal is repaid bullet at loan maturity. This poses a risk at loan maturity if the borrower does not have a repayment strategy in place or is unable to refinance before the maturity date. About 9% of the IO loans have matured in the past and are technically in default status while still, in most cases, paying their regular IO instalment. An additional 27% is scheduled to mature in the next five years. The portfolio is entirely backed by loans paying a floating rate: 79% track the Bank of England base rate, 16% track Sonia, and the remainder are Standard Variable Rate (SVR) loans. The notes pay interest linked to Sonia, which gives rise to basis risk that is not hedged in the transaction. Compared with peer transactions, the pool shows a higher proportion of trackers, which have lower margins than those typically charged for SVR loans. Morningstar DBRS views the lower margins paid by the portfolio as a credit positive because it implies cheaper instalments for the borrowers; however, at the same time, this results in lower excess spread over the life of the transaction compared with other legacy nonconforming deals. The mortgage portfolio is almost 18 years seasoned on a weighted-average (WA) basis, which is considered a credit positive. The WA current indexed LTV (WACLTV (ind)) of the mortgage portfolio is 56.3% (as calculated by Morningstar DBRS). The proportion of loans with a WACLTV (ind) of higher than 80% is approximately 7.6%, which reflects favorable house price movements that allowed for the buildup of significant borrower equity despite the high original WA LTV of the portfolio at 84.3 % and the IO nature of most of the pool. The transaction benefits from a non-amortizing general reserve fund (GRF), which provides liquidity and credit support to the Class A to Class F notes, and a liquidity reserve fund (LRF), which provides liquidity support to the Class A notes. The GRF was established and fully funded at closing and has a target amount of 1.25% of the initial portfolio balance. The LRF was also established and fully funded at closing and amortizes at the lower of 0.5% of the Class A notes' initial balance and 1.0% of the Class A notes' outstanding balance before a LRF Trigger Event occurs (i.e., when the GRF amount is lower than 1.0% of the initial portfolio), and at 1.0% of the Class A notes' balance while the event is ongoing. Morningstar DBRS based its credit ratings on a review of the following analytical considerations: -- The transaction's capital structure, including the form and sufficiency of available credit enhancement; -- The credit quality of the mortgage portfolio and the ability of the servicers to perform collection and resolution activities. Morningstar DBRS estimated stress-level probability of default (PD), loss given default (LGD), and expected losses (EL) on the mortgage portfolio. Morningstar DBRS used the PD, LGD, and EL as inputs into the cash flow engine. Morningstar DBRS analyzed the mortgage portfolio in accordance with its "European RMBS Insight: UK Addendum" methodology; -- The transaction's ability to withstand stressed cash flow assumptions and repay the Class A, Class B, Class C, Class D, Class E, Class F, and Class X notes according to the terms of the transaction documents; -- The structural mitigants in place to avoid potential payment disruptions caused by operational risk, such as a downgrade, and replacement language in the transaction documents; -- The sovereign credit rating of AA with a Stable trend on the United Kingdom of Great Britain and Northern Ireland as of the date of this press release; and -- The consistency of the transaction's legal structure with Morningstar DBRS' "Legal Criteria for European Structured Finance Transactions" methodology and the presence of legal opinions addressing the assignment of the assets to the Issuer. Morningstar DBRS' credit ratings on the rated notes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations for each of the rated notes are the related Interest Amounts and the related Class Balances. Notes: All figures are in British pounds sterling unless otherwise noted. HOCHANDA GLOBAL: Leonard Curtis Named as Joint Administrators ------------------------------------------------------------- Hochanda Global Limited was placed in administration proceedings the High Court of Justice Business and Property Courts of England and Wales, Court Number: CR-2024-005816, and Neil Bennett and Alex Cadwallader of Leonard Curtis were appointed as administrators on Oct. 25, 2024. Hochanda Global specializes 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 4HN. The joint administrators can be reached at: Neil Bennett Alex Cadwallader Leonard Curtis 5th Floor, Grove House 248a Marylebone Road London, NW1 6BB Further Details Contact: The Joint Administrators Tel: 020 7535 7000 Alternative contact: Toby Gibbons HS UPSTREAM: Macintyre Hudson Named as Joint Administrators ----------------------------------------------------------- HS Upstream Limited was placed in administration proceedings in the High Court of Justice, Court Number: CR-2023-002207, and Liam Alexander Short and Nicholas O'Reilly of Macintyre Hudson LLP were appointed as administrators on Oct. 28, 2024. HS Upstream engages in management consultancy activities other than financial management. Its registered office is at C/O Tc Group 6th Floor Kings House, 9 - 10 Haymarket, London, SW1Y 4BP. The joint administrators can be reached at: Liam Alexander Short Nicholas O'Reilly Macintyre Hudson LLP 6th Floor, 2 London Wall Place London, EC2Y 5AU For further details, contact William Cutts Email: William.Cutts@mha.co.uk Tel No: 0207 429 4100 NEWDAY FUNDING: Fitch Affirms 'B+sf' Final Rating on Two Tranches ----------------------------------------------------------------- Fitch Ratings has assigned NewDay Funding Master Issuer Plc's series 2024-3's notes final ratings. The final rating on the class C notes is one notch higher than the expected rating, due to lower final margins payable on the notes, in turn implying larger excess spread for the transaction. Fitch has also affirmed NewDay Funding series 2021-3, 2022-1, 2022-2, 2022-3, 2023-1, 2024-1, 2024-2 and VFN-F1 V1 notes. Entity/Debt Rating Prior ----------- ------ ----- NewDay Funding Master Issuer Plc 2021-3 Class A1 XS2399701254 LT AAAsf Affirmed AAAsf 2021-3 Class A2 65120LAD3 LT AAAsf Affirmed AAAsf 2021-3 Class B XS2399700447 LT AA+sf Affirmed AA+sf 2021-3 Class C XS2399700793 LT A+sf Affirmed A+sf 2021-3 Class D XS2399791149 LT BBB+sf Affirmed BBB+sf 2021-3 Class E XS2399805972 LT BB+sf Affirmed BB+sf 2021-3 Class F XS2399973176 LT BB-sf Affirmed BB-sf 2022-1 Class A1 XS2452635118 LT AAAsf Affirmed AAAsf 2022-1 Class A2 65120LAK7 LT AAAsf Affirmed AAAsf 2022-1 Class B XS2452635464 LT AA+sf Affirmed AA+sf 2022-1 Class C XS2452635548 LT A+sf Affirmed A+sf 2022-1 Class D XS2452635977 LT BBB+sf Affirmed BBB+sf 2022-1 Class E XS2452636272 LT BB+sf Affirmed BB+sf 2022-1 Class F XS2452636512 LT BB-sf Affirmed BB-sf 2022-2 Class A Loan Note LT AA+sf Affirmed AA+sf 2022-2 Class C XS2498643589 LT A+sf Affirmed A+sf 2022-2 Class D XS2498643829 LT BBB+sf Affirmed BBB+sf 2022-2 Class E XS2498644124 LT BB+sf Affirmed BB+sf 2022-2 Class F XS2498644470 LT B+sf Affirmed B+sf 2022-3 Class A XS2554910591 LT AA-sf Affirmed AA-sf 2022-3 Class D XS2554989678 LT BBB+sf Affirmed BBB+sf 2022-3 Class E XS2554989918 LT BB+sf Affirmed BB+sf 2022-3 Class F XS2554991062 LT B+sf Affirmed B+sf 2023-1 Class A1 XS2716700286 LT AAAsf Affirmed AAAsf 2023-1 Class A2 65120LAL5 LT AAAsf Affirmed AAAsf 2023-1 Class B XS2716700526 LT AA+sf Affirmed AA+sf 2023-1 Class C XS2716700799 LT A+sf Affirmed A+sf 2023-1 Class D XS2716700872 LT BBB+sf Affirmed BBB+sf 2023-1 Class E XS2716700955 LT BB+sf Affirmed BB+sf 2023-1 Class F XS2716701094 LT BB-sf Affirmed BB-sf 2024-1 Class A XS2768182367 LT AAAsf Affirmed AAAsf 2024-1 Class B XS2768182797 LT AA+sf Affirmed AA+sf 2024-1 Class C XS2768182953 LT A+sf Affirmed A+sf 2024-1 Class D XS2768183175 LT BBB+sf Affirmed BBB+sf 2024-1 Class E XS2768183415 LT BBsf Affirmed BBsf 2024-2 Class F XS2768183761 LT BB-sf Affirmed BB-sf 2024-2 Class A XS2834466976 LT AAAsf Affirmed AAAsf 2024-2 Class B XS2834467438 LT AA+sf Affirmed AA+sf 2024-2 Class C XS2834467941 LT A+sf Affirmed A+sf 2024-2 Class D XS2834468592 LT BBB+sf Affirmed BBB+sf 2024-2 Class E XS2834469137 LT BBsf Affirmed BBsf 2024-2 Class F XS2834469483 LT BB-sf Affirmed BB-sf 2024-3 Class A XS2909751740 LT AAAsf New Rating AAA(EXP)sf 2024-3 Class B XS2909752391 LT AA+sf New Rating AA+(EXP)sf 2024-3 Class C XS2909752557 LT AA-sf New Rating A+(EXP)sf 2024-3 Class D XS2909752987 LT BBB+sf New Rating BBB+(EXP)sf 2024-3 Class E XS2909753100 LT BBsf New Rating BB(EXP)sf 2024-3 Class F XS2909753365 LT BB-sf New Rating BB-(EXP)sf VFN-F1 V1 Class A LT BBB+sf Affirmed BBB+sf VFN-F1 V1 Class E LT BB+sf Affirmed BB+sf VFN-F1 V1 Class F LT BB-sf Affirmed BB-sf Transaction Summary The notes issued by NewDay Funding Master Issuer Plc are collateralised by a pool of non-prime UK credit card receivables originated by NewDay Limited (NewDay). NewDay is one of the largest specialist credit card companies in the UK and offers cards both under its own brands and in partnership with individual retailers. Only the cards branded by NewDay, which are targeted at higher-risk borrowers on average, are included in this transaction. The cards co-branded with retailers are financed through a separate securitisation. KEY RATING DRIVERS Unchanged Asset Assumptions: Fitch has maintained its asset assumptions, with the steady-state charge-off rate held at 17% and monthly payment rate (MPR) at 11%. Fitch changed these levels earlier this year to reflect (i) NewDay's increasing strategic focus on acquiring and retaining slightly lower-risk borrowers; (ii) the strength and stability of portfolio performance metrics during challenging macroeconomic conditions; and (iii) continued refinements to NewDay's automated credit-scoring process. Charge-off and MPR stresses are unchanged and remain at the low end of the criteria range (3.5x and 45% at the 'AAAsf' rating case, respectively). This considers the high absolute level of the steady-state charge-off rate, the low volatility in the historical data and the low payment rates typical of the non-prime credit card sector. Sound Performance Versus Steady States: The transaction's recent performance remains below Fitch's steady-state charge-off rate. Over the last year, charge-offs and the MPR have averaged 12.3% and 14.2%, respectively. Performance metrics are expected to fluctuate around its steady states through the economic cycle. VFN Add Flexibility: The structure includes a separate originator variable funding note (VFN), purchased and held by NewDay Funding Transferor Ltd (the transferor), in addition to series VFN-F1 and VFN-F2 providing the funding flexibility typical and necessary for credit card trusts. It provides credit enhancement to the rated notes, adds protection against dilutions by way of a separate functional transferor interest and meets UK and US risk-retention requirements. Key Counterparties Unrated: The NewDay group acts in several capacities through its various entities, most prominently as originator, servicer and cash manager. The reliance on the group is mitigated by the transferable operations, agreements with established card service providers, a back-up cash management agreement and a series-specific liquidity reserve. Additionally, a back-up servicer was appointed in October 2024. Upon the occurrence of a servicer termination event, the back-up servicer will replace the existing servicer within 30 days. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Rating sensitivity to increased charge-off rate Increase steady state by 25% / 50% / 75%: Series 2024-3 A: 'AA+sf'/ 'AA+sf' / 'AA-sf' Series 2024-3 B: 'AAsf'/ 'A+sf' / 'Asf' Series 2024-3 C: 'Asf'/ 'A-sf' / 'BBB+sf' Series 2024-3 D: 'BBB-sf'/ 'BB+sf' / 'BB-sf' Series 2024-3 E: 'B+sf'/ 'Bsf' / N.A. Series 2024-3 F: 'B+sf'/ N.A. / N.A. Rating sensitivity to reduced MPR Reduce steady state by 15% / 25% / 35%: Series 2024-3 A: 'AA+sf'/ 'AA+sf' / 'AA-sf' Series 2024-3 B: 'AAsf'/ 'A+sf' / 'Asf' Series 2024-3 C: 'Asf'/ 'A-sf' / 'BBB+sf' Series 2024-3 D: 'BBBsf'/ 'BBB-sf' / 'BB+sf' Series 2024-3 E: 'BB-sf'/ 'BB-sf' / 'B+sf' Series 2024-3 F: 'BB-sf'/ 'B+sf' / 'B+sf' Rating sensitivity to reduced purchase rate Reduce steady state by 50% / 75% / 100%: Series 2024-3 D: 'BBBsf'/ 'BBBsf' / 'BBBsf' Series 2024-3 E: 'BB-sf'/ 'BB-sf' / 'BB-sf' Series 2024-3 F: 'BB-sf'/ 'BB-sf' / 'B+sf' No rating sensitivities are shown for the class A to C notes, as Fitch already assumes a 100% purchase rate stress in these rating scenarios. Rating sensitivity to increased charge-off rate and reduced MPR Increase steady-state charge-offs by 25% / 50% / 75% and reduce steady-state MPR by 15% / 25% / 35%: Series 2024-3 A: 'AAsf'/ 'Asf' / 'BBB+sf' Series 2024-3 B: 'A+sf'/ 'A-sf' / 'BBB-sf' Series 2024-3 C: 'A-sf'/ 'BBB-sf' / 'BBsf' Series 2024-3 D: 'BB+sf'/ 'BB-sf' / 'Bsf' Series 2024-3 E: 'B+sf'/ N.A. / N.A. Series 2024-3 F: 'Bsf'/ N.A. / N.A. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Rating sensitivity to reduced charge-off rate and increased MPR Reduce steady-state charge-offs by 25% and increase steady-state MPR by 15%: Series 2024-3 A: 'AAAsf' Series 2024-3 B: 'AAAsf' Series 2024-3 C: 'AAAsf' Series 2024-3 D: 'Asf' Series 2024-3 E: 'BBBsf' Series 2024-3 F: 'BBB-sf' USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Prior to the transaction closing, Fitch sought to receive a third-party assessment conducted on the asset portfolio information, but none was available for this transaction. The last third-party assessment for this master programme was received in June 2024. Prior to the transaction closing, Fitch conducted a review of a small targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations 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. PRAECLARUS GROUP: CG & Co. Named as Joint Administrators -------------------------------------------------------- Praeclarus Group Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Manchester, Court Number: CR-2024-MAN-001349, and Edward M Avery-Gee and Nick Brierley of CG & Co. were appointed as administrators on Oct. 29, 2024. Praeclarus Group specializes in management consultancy activities other than financial management & quantity surveying activities. Its registered office and principal trading address is at Genesis Centre, Garrett Field, Birchwood, Warrington, WA3 7BH. The administrators can be reached at: Edward M Avery-Gee Nick Brierley CG & Co. 27 Byrom Street, Manchester M3 4PF For further information, contact: Bill Brandon Tel No: 0161 358 021 Q C POLYMER: Hudson Weir Named as Joint Administrators ------------------------------------------------------ Q C Polymer Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List (ChD), Court Number: CR-2024-06406, and Nimish Patel and Hasib Howlader of Hudson Weir Limited were appointed as administrators on Oct. 29, 2024. Q C Polymer is a manufacturer of plastics in primary forms including plastic plates, sheets, tubes and profiles. Its registered office is at Unit 14-18 Cannon Business Park Gough Road, Bilston, England, WV14 8XR. The administrators can be reached at: Nimish Patel Hasib Howlader Hudson Weir Limited 58 Leman Street London, E1 8EU For further details, contact: Hudson Weir Tel No: 02070996086 REACTION ENGINES: PricewaterhouseCoopers Named as Administrators ---------------------------------------------------------------- Reaction Engines Limited was placed into administration proceedings in the High Court of Justice, Business & Property Courts of England & Wales, Insolvency & Companies List, Court Number: CR-2024-006533, and Sarah O’Toole, Peter David Dickens, and Edward Williams of PricewaterhouseCoopers LLP were appointed as administrators on Oct. 31, 2024. Reaction Engines specializes in engineering design activities for industrial process and production. Its registered office and principal address is at Building F5, Culham Campus, Abingdon, England, OX14 3DB. The joint administrators can be reached at: Sarah O’Toole Peter David Dickens PricewaterhouseCoopers LLP 1 Hardman Square, Manchester M3 3EB -- and -- Edward Williams PricewaterhouseCoopers LLP 1 Chamberlain Square Birmingham, B3 3AX For further information, contact: Sophie Hall Email: uk_reactionengines_enquiries@pwc.com Tel No: 0113 289 4000 SALUS (ABBEY COURT): Begbies Traynor Named as Joint Administrators ------------------------------------------------------------------ Salus (Abbey Court) Ltd was placed into administration proceedings, Court Number: SC602568, and Kenneth Robert Craig of Begbies Traynor (Central) LLP were appointed as administrators on Oct. 25, 2024. Salus (Abbey Court) specializes in the letting and operating of own or leased real estate (other than Housing Association real estate and conference and exhibition services) n.e.c.. Its registered office and principal trading address is at Abbey Court Care Home, 34 Abbey Green Street, Glasgow, G34 0JH. The joint administrators can be reached at: Bob Maxwell Kenneth Robert Craig Begbies Traynor (Central) LLP 2 Bothwell Street, Glasgow G2 6LU For further details, contact: Administrators Email: glasgow@btguk.com Tel No: 0141 222 2230 STAPLEFORD PARK: Luxury Wedding Venue Enters Liquidation -------------------------------------------------------- Tom Oakley at BBC News reports that more than 90 jobs have been lost after a luxury wedding venue went into liquidation. Stapleford Park Hotel in Leicestershire ceased trading with immediate effect and cancelled all its bookings on October 16, BBC News discloses. Leonard Curtis was appointed as liquidator of Stapleford Park Limited, it was confirmed on Nov. 1. BBC News relates that the firm said the hotel company did not own the Grade-I listed property, near Melton Mowbray, and that its future "remains uncertain at this stage". A total of 92 staff members have been made redundant following the closure of the venue, which hosted celebrities including late US pop star Michael Jackson. According to BBC News, Alex Cadwallader, of Leonard Curtis, who has been appointed as joint liquidator along with Neil Bennett, said: "Our priority was to ensure the most orderly wind-down of trading possible. "Significant efforts were made to communicate with and relocate the guests that were staying at the hotel, which was at approximately 50% occupancy. "Leonard Curtis attended the site and worked closely with front of house staff to make this possible, and the wider group also met some essential costs to limit the impact on guests and future bookings. "However, we fully appreciate that some guests will have been adversely impacted." The estate features 48 guest rooms and 500 acres of parkland surrounding a Grade-I listed mansion. BBC News adds that the liquidator said that "despite efforts to reach profitability", the company running the hotel "was unable to generate the turnover required". Guests who were due to hold their wedding reception at the hotel said they were "flabbergasted" after being told their bookings had been cancelled, BBC News relays. STELLER SYSTEMS: Faces Liquidation Over Unpaid Debts ---------------------------------------------------- George Allison at UK Defence Journal reports that Steller Systems Ltd, a British naval architecture and marine engineering firm, is facing a winding-up petition filed by HM Revenue and Customs (HMRC) over unpaid debts. According to the report, the petition seeks to place the company into compulsory liquidation, effectively dissolving Steller Systems Ltd and liquidating its assets to settle outstanding obligations to creditors. The hearing was scheduled for last week of October in the High Court's Chancery Division, Royal Courts of Justice, in London. The petition, pursued under the Insolvency Act 1985, is a serious step from HMRC as it aims to recover debts through compulsory liquidation. The result of the hearing will be decisive for Steller Systems Ltd, determining whether the firm can continue its operations or face dissolution, UK Defence Journal notes. Based in Nailsworth, Gloucestershire, Steller Systems Ltd has garnered a reputation within the UK defence industry for its innovative designs and expertise. The firm's team comprises highly skilled naval architects and marine engineers, with each actively involved in professional societies. UK Defence Journal says the company's Managing Director is notably a Fellow of both the Royal Institution of Naval Architects (RINA) and the Institution of Marine Engineers, Scientists and Technologists (IMarEST), underscoring its established presence in the industry. Steller Systems Ltd has also contributed to key discussions around UK naval capabilities. Recently, their Fearless design attracted attention and sparked debate as a potential solution for amphibious operations, highlighting the company's role in shaping the landscape of UK maritime innovation. [*] Kroll Expands Restructuring Team With ACE Advisory Talent ------------------------------------------------------------- Kroll, the leading independent provider of global risk and financial advisory solutions, announced the talent acquisition of professionals from ACE Advisory, a boutique corporate finance firm, into its Global Restructuring team. The addition of this team significantly enhances Kroll's service offerings in the Dutch market and its global operational footprint, bolstering cross-border capabilities in the UK and other jurisdictions. Founded by Nenad Cvjetkovic and Gerben Bos, ACE Advisory offers comprehensive M&A, debt/equity capital raising and restructuring capabilities. The addition of ACE's talented team of professionals underscores Kroll's dedication to top-tier advisory services and its commitment to enhancing its financial and risk advisory services globally. Following this talent acquisition, Kroll's capabilities in the Dutch market have expanded to include turnaround and restructuring management, independent business reviews, and debt and capital restructuring. Sarah Rayment, Managing Director and Head of Global Restructuring at Kroll said, "We are thrilled to welcome the ACE Advisory team. ACE's industry knowledge and restructuring expertise will be invaluable as we expand in the Netherlands and across Europe, the Middle East and South Africa. This acquisition enhances our operations and broadens our advisory capabilities, providing clients with unmatched expertise in navigating complex global business landscapes." Gerben Bos, who joins as a Managing Director and Co-Head of Restructuring for the Netherlands at Kroll said, "Since the Dutch Scheme (WHOA) was introduced in 2021, we have seen an increase in cross-border restructurings. Joining forces with Kroll allows us to expand our reach and enhance our support for Dutch companies with international operations and multinationals with interests in the Netherlands. Together, we can tackle complex challenges and guide clients through every stage of the value-creation process." Nenad Cvjetkovic, who joins as a Managing Director and Co-Head of Restructuring for the Netherlands at Kroll said, "We are excited to join Kroll's extensive global platform and resources. Kroll is the right partner for us, enabling us to elevate our services and expand client support. By combining the strengths of ACE and Kroll, we will bolster Kroll's global restructuring business, providing comprehensive support for clients that need restructuring and financial advisory services." Kroll's Amsterdam office includes Valuation Services, Global Restructuring Services, Expert Services, and Investigations and Due Diligence Services. ACE Advisory's team enhances Kroll's ability to deliver exceptional financial guidance and strategic solutions, driving value and long-term success for clients. This follows the integration of the BFI team in 2023, further solidifying Kroll's commitment to excellence in financial and risk advisory services for the Netherlands and globally. About Kroll As the leading independent provider of risk and financial advisory solutions, Kroll leverages unique insights, data, and technology to help clients stay ahead of complex demands. Kroll's team of more than 6,500 professionals worldwide continues the firm's nearly 100-year history of trusted expertise spanning risk, governance, transactions, and valuation. Our advanced solutions and intelligence provide clients the foresight they need to create an enduring competitive advantage. At Kroll, our values define who we are and how we partner with clients and communities. Learn more at Kroll.com =============== X X X X X X X X =============== [*] BOND PRICING: For the Week November 4 to November 8, 2024 ------------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- Altice France Holding SA 10.500 5/15/2027 USD 30.231 NCO Invest SA 10.000 12/30/2026 EUR 0.152 Ferralum Metals Group SA 10.000 12/30/2026 EUR 28.000 Marginalen Bank Bankakti 12.039 SEK 7.000 Codere Finance 2 Luxembo 11.000 9/30/2026 EUR 44.916 NCO Invest SA 10.000 12/30/2026 EUR 0.152 Cabonline Group Holding 12.487 4/19/2026 SEK 39.530 IOG Plc 12.575 9/22/2025 EUR 1.177 Oscar Properties Holding 11.270 7/5/2024 SEK 0.110 Fastator AB 12.500 9/26/2025 SEK 40.038 Fastator AB 12.500 9/25/2026 SEK 32.516 Turkiye Government Bond 10.400 10/13/2032 TRY 45.100 Bilt Paper BV 10.360 USD 1.041 Saderea DAC 12.500 11/30/2026 USD 47.164 Tinkoff Bank JSC Via TCS 11.002 USD 42.875 Ilija Batljan Invest AB 10.007 SEK 10.000 Kvalitena AB publ 10.067 4/2/2024 SEK 45.750 Bulgaria Steel Finance B 12.000 5/4/2013 EUR 0.216 Plusplus Capital Financi 11.000 7/29/2026 EUR 7.244 Privatbank CJSC Via UK S 10.250 1/23/2018 USD 3.643 Altice France Holding SA 10.500 5/15/2027 USD 29.977 UkrLandFarming PLC 10.875 3/26/2018 USD 1.879 Avangardco Investments P 10.000 10/29/2018 USD 0.186 R-Logitech Finance SA 10.250 9/26/2027 EUR 15.000 Sidetur Finance BV 10.000 4/20/2016 USD 0.767 Privatbank CJSC Via UK S 11.000 2/9/2021 USD 0.500 Fastator AB 12.500 9/24/2027 SEK 40.750 Immigon Portfolioabbau A 10.055 EUR 15.624 Transcapitalbank JSC Via 10.000 USD 1.450 Privatbank CJSC Via UK S 10.875 2/28/2018 USD 5.300 Phosphorus Holdco PLC 10.000 4/1/2019 GBP 0.144 Societe Generale SA 23.510 6/23/2026 USD 6.625 Elli Investments Ltd 12.250 6/15/2020 GBP 1.144 Leonteq Securities AG/Gu 19.000 11/22/2024 CHF 22.130 UBS AG/London 10.000 3/23/2026 USD 31.890 Goldman Sachs Internatio 16.288 3/17/2027 USD 22.460 Deutsche Bank AG/London 12.780 3/16/2028 TRY 47.173 Serica Energy Chinook Lt 12.500 9/27/2019 USD 1.500 UkrLandFarming PLC 10.875 3/26/2018 USD 1.879 BNP Paribas Emissions- u 15.000 9/25/2025 EUR 40.620 Societe Generale SA 23.500 3/3/2025 USD 48.920 Finca Uco Cjsc 13.000 5/30/2025 AMD 0.000 Leonteq Securities AG/Gu 20.800 2/5/2025 CHF 40.840 UBS AG/London 11.000 1/20/2025 EUR 49.400 BNP Paribas Issuance BV 20.000 9/18/2026 EUR 30.100 UBS AG/London 10.250 3/10/2025 EUR 46.900 Societe Generale SA 20.000 11/28/2025 USD 11.530 Evocabank CJSC 11.000 9/27/2025 AMD 0.000 UBS AG/London 17.500 2/7/2025 USD 17.800 Citigroup Global Markets 25.530 2/18/2025 EUR 0.010 Societe Generale SA 20.000 7/21/2026 USD 3.070 Societe Generale SA 26.640 10/30/2025 USD 1.300 Societe Generale SA 21.000 12/26/2025 USD 26.860 KPNQwest NV 10.000 3/15/2012 EUR 1.254 NTRP Via Interpipe Ltd 10.250 8/2/2017 USD 1.002 Deutsche Bank AG/London 14.900 5/30/2028 TRY 48.865 UniCredit Bank GmbH 12.800 2/28/2025 EUR 41.700 Banco Espirito Santo SA 10.000 12/6/2021 EUR 0.058 Ukraine Government Bond 11.000 4/24/2037 UAH 37.648 BLT Finance BV 12.000 2/10/2015 USD 10.500 Ukraine Government Bond 11.000 2/16/2037 UAH 34.927 Ukraine Government Bond 11.000 4/20/2037 UAH 34.889 Petromena ASA 10.850 11/19/2018 USD 0.622 Phosphorus Holdco PLC 10.000 4/1/2019 GBP 0.144 Tonon Luxembourg SA 12.500 5/14/2024 USD 2.216 Bank Vontobel AG 20.000 7/31/2025 CHF 37.700 Bank Julius Baer & Co Lt 17.100 3/19/2025 CHF 50.800 Bank Julius Baer & Co Lt 18.690 3/7/2025 CHF 46.800 Bank Vontobel AG 12.000 6/17/2025 CHF 26.600 Swissquote Bank SA 20.060 5/22/2025 CHF 42.610 Bank Vontobel AG 12.000 3/5/2025 CHF 43.300 Bank Vontobel AG 14.000 3/5/2025 CHF 8.300 Raiffeisen Switzerland B 11.000 1/3/2025 CHF 29.560 DZ Bank AG Deutsche Zent 11.500 12/31/2024 EUR 17.450 Vontobel Financial Produ 18.500 6/27/2025 EUR 39.283 Vontobel Financial Produ 23.250 6/27/2025 EUR 38.557 DZ Bank AG Deutsche Zent 20.400 3/28/2025 EUR 29.400 DZ Bank AG Deutsche Zent 18.500 3/28/2025 EUR 31.460 DZ Bank AG Deutsche Zent 17.600 6/27/2025 EUR 30.280 Zurcher Kantonalbank Fin 14.000 6/17/2025 USD 48.490 Swissquote Bank SA 24.070 5/6/2025 CHF 40.060 DZ Bank AG Deutsche Zent 22.800 3/28/2025 EUR 42.420 DZ Bank AG Deutsche Zent 23.100 12/31/2024 EUR 34.990 DZ Bank AG Deutsche Zent 12.700 12/31/2024 EUR 43.990 Landesbank Baden-Wuertte 16.000 1/3/2025 EUR 19.290 Landesbank Baden-Wuertte 19.000 1/3/2025 EUR 17.640 Landesbank Baden-Wuertte 22.000 1/3/2025 EUR 16.460 Landesbank Baden-Wuertte 25.000 1/3/2025 EUR 15.600 Landesbank Baden-Wuertte 14.000 6/27/2025 EUR 18.640 Landesbank Baden-Wuertte 16.000 6/27/2025 EUR 18.650 Landesbank Baden-Wuertte 19.000 6/27/2025 EUR 19.540 Landesbank Baden-Wuertte 21.000 6/27/2025 EUR 20.000 Landesbank Baden-Wuertte 10.500 1/2/2026 EUR 18.220 Bank Vontobel AG 26.000 3/5/2025 CHF 40.600 Landesbank Baden-Wuertte 13.000 6/27/2025 EUR 21.800 Landesbank Baden-Wuertte 11.000 1/2/2026 EUR 22.450 Landesbank Baden-Wuertte 16.000 1/2/2026 EUR 25.250 Landesbank Baden-Wuertte 16.000 6/27/2025 EUR 21.400 Landesbank Baden-Wuertte 15.000 1/3/2025 EUR 25.780 UniCredit Bank GmbH 12.250 2/28/2025 EUR 42.650 Zurcher Kantonalbank Fin 23.000 3/5/2025 CHF 46.160 Vontobel Financial Produ 29.200 1/17/2025 EUR 41.670 Bank Vontobel AG 16.000 2/10/2025 CHF 46.400 Landesbank Baden-Wuertte 11.500 2/28/2025 EUR 23.220 Landesbank Baden-Wuertte 15.000 2/28/2025 EUR 21.030 Landesbank Baden-Wuertte 19.000 2/28/2025 EUR 19.890 UniCredit Bank GmbH 13.400 8/22/2025 EUR 22.360 Landesbank Baden-Wuertte 10.500 4/24/2026 EUR 24.060 Landesbank Baden-Wuertte 11.500 4/24/2026 EUR 24.680 Landesbank Baden-Wuertte 13.000 4/24/2026 EUR 26.120 Bank Vontobel AG 11.000 4/29/2025 CHF 20.100 Bank Vontobel AG 14.250 5/30/2025 USD 43.900 Bank Vontobel AG 12.000 4/11/2025 CHF 41.900 Bank Vontobel AG 11.000 4/11/2025 CHF 14.600 Leonteq Securities AG/Gu 14.000 10/15/2025 CHF 48.700 Bank Vontobel AG 15.000 4/29/2025 CHF 47.500 Leonteq Securities AG/Gu 22.200 4/29/2025 CHF 47.310 Leonteq Securities AG/Gu 20.000 1/22/2025 CHF 44.990 Leonteq Securities AG/Gu 20.000 1/22/2025 CHF 14.580 Raiffeisen Schweiz Genos 17.500 11/20/2024 CHF 45.570 DZ Bank AG Deutsche Zent 22.500 12/31/2024 EUR 41.930 EFG International Financ 20.000 11/8/2024 EUR 49.130 UniCredit Bank GmbH 10.400 2/28/2025 EUR 48.890 Landesbank Baden-Wuertte 16.500 4/28/2025 EUR 22.520 Raiffeisen Switzerland B 16.500 3/11/2025 CHF 19.420 Leonteq Securities AG 24.000 1/16/2025 CHF 25.990 Vontobel Financial Produ 20.250 12/31/2024 EUR 18.960 Bank Vontobel AG 21.000 12/23/2024 CHF 43.700 DZ Bank AG Deutsche Zent 19.100 12/31/2024 EUR 32.930 DZ Bank AG Deutsche Zent 21.300 12/31/2024 EUR 30.180 DZ Bank AG Deutsche Zent 20.900 12/31/2024 EUR 46.710 DZ Bank AG Deutsche Zent 21.200 3/28/2025 EUR 37.940 Bank Vontobel AG 14.500 4/4/2025 CHF 42.800 DZ Bank AG Deutsche Zent 14.000 12/20/2024 EUR 44.700 DZ Bank AG Deutsche Zent 17.300 12/31/2024 EUR 42.200 HSBC Trinkaus & Burkhard 14.500 12/30/2024 EUR 19.220 Leonteq Securities AG 24.000 1/9/2025 CHF 18.540 Leonteq Securities AG 23.000 1/9/2025 CHF 39.080 Leonteq Securities AG/Gu 11.000 1/9/2025 CHF 48.580 Bank Vontobel AG 13.500 1/8/2025 CHF 3.600 Leonteq Securities AG 24.000 1/13/2025 CHF 6.890 BNP Paribas Emissions- u 11.000 12/30/2024 EUR 49.540 BNP Paribas Emissions- u 14.000 12/30/2024 EUR 47.320 HSBC Trinkaus & Burkhard 15.100 12/30/2024 EUR 46.930 HSBC Trinkaus & Burkhard 16.100 12/30/2024 EUR 17.750 HSBC Trinkaus & Burkhard 11.100 12/30/2024 EUR 20.910 HSBC Trinkaus & Burkhard 15.900 3/28/2025 EUR 21.290 HSBC Trinkaus & Burkhard 15.000 3/28/2025 EUR 21.610 HSBC Trinkaus & Burkhard 13.300 6/27/2025 EUR 24.720 HSBC Trinkaus & Burkhard 11.300 6/27/2025 EUR 25.730 HSBC Trinkaus & Burkhard 15.600 11/22/2024 EUR 16.870 HSBC Trinkaus & Burkhard 12.600 11/22/2024 EUR 18.860 HSBC Trinkaus & Burkhard 10.300 11/22/2024 EUR 20.920 UniCredit Bank GmbH 18.500 12/31/2024 EUR 47.180 Zurcher Kantonalbank Fin 10.500 2/4/2025 EUR 46.490 Landesbank Baden-Wuertte 10.500 11/22/2024 EUR 25.670 Landesbank Baden-Wuertte 16.000 11/22/2024 EUR 19.120 Vontobel Financial Produ 12.750 12/31/2024 EUR 48.480 Vontobel Financial Produ 11.000 12/31/2024 EUR 35.590 Bank Vontobel AG 10.000 12/23/2024 EUR 49.500 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 60.610 HSBC Trinkaus & Burkhard 16.300 12/30/2024 EUR 18.140 HSBC Trinkaus & Burkhard 15.200 12/30/2024 EUR 18.720 HSBC Trinkaus & Burkhard 13.100 12/30/2024 EUR 20.170 HSBC Trinkaus & Burkhard 11.100 12/30/2024 EUR 22.040 HSBC Trinkaus & Burkhard 13.400 3/28/2025 EUR 23.020 Landesbank Baden-Wuertte 10.000 6/27/2025 EUR 20.720 Landesbank Baden-Wuertte 14.000 6/27/2025 EUR 19.000 HSBC Trinkaus & Burkhard 11.600 3/28/2025 EUR 24.400 HSBC Trinkaus & Burkhard 18.100 12/30/2024 EUR 11.970 HSBC Trinkaus & Burkhard 15.700 12/30/2024 EUR 13.080 DZ Bank AG Deutsche Zent 18.200 3/28/2025 EUR 49.840 BNP Paribas Emissions- u 13.000 12/30/2024 EUR 41.330 Landesbank Baden-Wuertte 18.000 1/3/2025 EUR 16.630 Leonteq Securities AG 20.000 12/11/2024 CHF 42.940 Leonteq Securities AG 21.000 12/18/2024 CHF 44.290 Leonteq Securities AG/Gu 20.000 3/11/2025 CHF 18.080 Raiffeisen Switzerland B 13.000 3/11/2025 CHF 49.510 DZ Bank AG Deutsche Zent 16.400 3/28/2025 EUR 46.270 Raiffeisen Schweiz Genos 16.000 7/4/2025 CHF 49.080 Swissquote Bank Europe S 25.320 2/26/2025 CHF 32.040 DZ Bank AG Deutsche Zent 13.200 3/28/2025 EUR 51.840 DZ Bank AG Deutsche Zent 13.200 3/28/2025 EUR 36.900 Vontobel Financial Produ 16.000 3/28/2025 EUR 24.730 Raiffeisen Schweiz Genos 16.000 2/19/2025 CHF 44.140 Swissquote Bank Europe S 18.530 3/5/2025 CHF 46.970 Vontobel Financial Produ 26.450 1/24/2025 EUR 19.098 Vontobel Financial Produ 11.000 12/31/2024 EUR 43.930 Vontobel Financial Produ 16.750 12/31/2024 EUR 38.360 Vontobel Financial Produ 14.750 12/31/2024 EUR 50.370 Vontobel Financial Produ 20.000 12/31/2024 EUR 45.060 DZ Bank AG Deutsche Zent 17.100 12/31/2024 EUR 36.490 Vontobel Financial Produ 13.000 12/31/2024 EUR 41.850 Vontobel Financial Produ 14.750 12/31/2024 EUR 39.980 Vontobel Financial Produ 17.250 12/31/2024 EUR 47.500 DZ Bank AG Deutsche Zent 15.500 12/31/2024 EUR 37.240 Leonteq Securities AG/Gu 12.000 12/4/2024 CHF 53.670 DZ Bank AG Deutsche Zent 16.500 12/27/2024 EUR 16.730 Bank Julius Baer & Co Lt 19.400 1/30/2025 CHF 46.300 Raiffeisen Schweiz Genos 14.500 1/29/2025 CHF 49.570 DZ Bank AG Deutsche Zent 14.300 12/31/2024 EUR 33.970 DZ Bank AG Deutsche Zent 23.400 12/31/2024 EUR 30.260 Vontobel Financial Produ 20.250 12/31/2024 EUR 32.840 Vontobel Financial Produ 14.750 12/31/2024 EUR 36.370 Vontobel Financial Produ 22.500 12/31/2024 EUR 51.470 Vontobel Financial Produ 16.500 12/31/2024 EUR 35.050 Vontobel Financial Produ 11.250 12/31/2024 EUR 39.500 Vontobel Financial Produ 18.500 12/31/2024 EUR 33.900 Vontobel Financial Produ 13.000 12/31/2024 EUR 37.840 DZ Bank AG Deutsche Zent 18.900 3/28/2025 EUR 40.880 DZ Bank AG Deutsche Zent 23.600 3/28/2025 EUR 35.790 DZ Bank AG Deutsche Zent 12.500 12/31/2024 EUR 53.670 DZ Bank AG Deutsche Zent 10.500 3/28/2025 EUR 55.990 Landesbank Baden-Wuertte 11.000 2/27/2026 EUR 22.000 Landesbank Baden-Wuertte 12.000 2/27/2026 EUR 22.660 Leonteq Securities AG/Gu 16.000 3/4/2025 CHF 44.400 Raiffeisen Switzerland B 16.000 3/4/2025 CHF 19.850 Raiffeisen Schweiz Genos 15.000 1/22/2025 CHF 27.480 Landesbank Baden-Wuertte 14.000 1/24/2025 EUR 18.910 Raiffeisen Schweiz Genos 13.000 3/25/2025 CHF 47.810 Leonteq Securities AG 20.000 3/21/2025 CHF 44.400 Leonteq Securities AG 18.000 12/27/2024 CHF 40.790 Leonteq Securities AG/Gu 10.340 8/31/2026 EUR 45.350 UniCredit Bank GmbH 14.500 11/22/2024 EUR 48.840 UniCredit Bank GmbH 13.100 2/28/2025 EUR 46.500 UniCredit Bank GmbH 19.100 12/31/2024 EUR 41.700 UniCredit Bank GmbH 20.000 12/31/2024 EUR 40.980 Landesbank Baden-Wuertte 10.000 10/24/2025 EUR 19.810 Landesbank Baden-Wuertte 14.000 10/24/2025 EUR 20.620 Basler Kantonalbank 10.000 1/20/2025 EUR 50.640 HSBC Trinkaus & Burkhard 11.400 12/30/2024 EUR 21.490 HSBC Trinkaus & Burkhard 14.400 3/28/2025 EUR 9.890 HSBC Trinkaus & Burkhard 14.100 12/30/2024 EUR 19.390 HSBC Trinkaus & Burkhard 16.000 3/28/2025 EUR 21.660 Landesbank Baden-Wuertte 11.000 3/28/2025 EUR 18.040 Landesbank Baden-Wuertte 13.000 3/28/2025 EUR 16.960 Landesbank Baden-Wuertte 15.000 3/28/2025 EUR 16.300 Leonteq Securities AG 25.000 1/3/2025 CHF 32.080 Leonteq Securities AG 21.000 1/3/2025 CHF 17.480 Leonteq Securities AG 25.000 12/11/2024 CHF 22.170 UniCredit Bank GmbH 17.200 12/31/2024 EUR 36.710 UniCredit Bank GmbH 18.800 12/31/2024 EUR 34.430 UniCredit Bank GmbH 19.600 12/31/2024 EUR 35.160 UniCredit Bank GmbH 19.300 12/31/2024 EUR 45.840 UniCredit Bank GmbH 19.700 12/31/2024 EUR 40.010 UniCredit Bank GmbH 10.200 11/22/2024 EUR 44.990 UniCredit Bank GmbH 11.000 11/22/2024 EUR 43.380 HSBC Trinkaus & Burkhard 17.500 12/30/2024 EUR 39.280 BNP Paribas Issuance BV 19.000 9/18/2026 EUR 0.980 HSBC Trinkaus & Burkhard 10.250 12/30/2024 EUR 29.250 Leonteq Securities AG/Gu 10.000 11/12/2024 CHF 43.350 Leonteq Securities AG 25.000 12/18/2024 CHF 24.620 Raiffeisen Schweiz Genos 10.000 12/31/2024 CHF 47.050 UniCredit Bank GmbH 10.500 4/7/2026 EUR 27.720 Inecobank CJSC 10.000 4/28/2025 AMD 0.000 Bank Vontobel AG 12.000 11/11/2024 CHF 48.000 ACBA Bank OJSC 11.000 12/1/2025 AMD 9.077 Landesbank Baden-Wuertte 11.000 1/3/2025 EUR 14.480 Landesbank Baden-Wuertte 13.000 1/3/2025 EUR 13.260 Ameriabank CJSC 10.000 2/20/2025 AMD 9.250 UniCredit Bank GmbH 10.900 11/22/2024 EUR 38.980 UniCredit Bank GmbH 11.900 11/22/2024 EUR 36.310 UniCredit Bank GmbH 12.900 11/22/2024 EUR 33.530 UniCredit Bank GmbH 14.200 11/22/2024 EUR 31.530 Landesbank Baden-Wuertte 15.000 1/3/2025 EUR 50.700 Landesbank Baden-Wuertte 15.000 1/3/2025 EUR 18.020 Landesbank Baden-Wuertte 12.000 1/3/2025 EUR 21.460 DZ Bank AG Deutsche Zent 17.600 12/31/2024 EUR 47.950 DZ Bank AG Deutsche Zent 14.200 12/31/2024 EUR 15.150 Bank Vontobel AG 25.000 11/11/2024 CHF 49.000 Leonteq Securities AG/Gu 12.640 11/20/2024 CHF 44.730 Leonteq Securities AG/Gu 21.000 11/27/2024 EUR 50.910 DZ Bank AG Deutsche Zent 19.000 12/31/2024 EUR 40.330 Vontobel Financial Produ 13.250 12/31/2024 EUR 50.950 DZ Bank AG Deutsche Zent 13.400 12/31/2024 EUR 42.010 Leonteq Securities AG/Gu 18.000 2/20/2025 CHF 44.530 DZ Bank AG Deutsche Zent 14.100 3/28/2025 EUR 50.770 DZ Bank AG Deutsche Zent 18.600 3/28/2025 EUR 46.320 Landesbank Baden-Wuertte 10.500 4/28/2025 EUR 24.030 Landesbank Baden-Wuertte 19.000 4/28/2025 EUR 22.440 Vontobel Financial Produ 12.500 12/31/2024 EUR 41.770 Vontobel Financial Produ 10.750 12/31/2024 EUR 43.890 Vontobel Financial Produ 14.250 12/31/2024 EUR 39.900 Vontobel Financial Produ 17.500 12/31/2024 EUR 50.740 HSBC Trinkaus & Burkhard 16.300 3/28/2025 EUR 10.000 HSBC Trinkaus & Burkhard 15.700 11/22/2024 EUR 17.240 HSBC Trinkaus & Burkhard 12.800 11/22/2024 EUR 19.360 HSBC Trinkaus & Burkhard 11.500 3/28/2025 EUR 51.330 Landesbank Baden-Wuertte 15.500 1/24/2025 EUR 15.690 DZ Bank AG Deutsche Zent 10.750 12/27/2024 EUR 14.580 UniCredit Bank GmbH 11.500 2/28/2025 EUR 50.650 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 13.800 2/28/2025 EUR 46.380 UniCredit Bank GmbH 14.500 2/28/2025 EUR 49.890 UniCredit Bank GmbH 11.600 12/31/2024 EUR 49.250 Leonteq Securities AG 24.000 12/27/2024 CHF 29.310 Leonteq Securities AG 23.000 12/27/2024 CHF 34.160 National Mortgage Co RCO 12.000 3/30/2026 AMD 0.000 ACBA Bank OJSC 11.500 3/1/2026 AMD 0.000 Armenian Economy Develop 11.000 10/3/2025 AMD 0.000 Finca Uco Cjsc 12.000 2/10/2025 AMD 0.000 HSBC Trinkaus & Burkhard 12.900 12/30/2024 EUR 50.180 BNP Paribas Emissions- u 13.000 12/30/2024 EUR 49.820 HSBC Trinkaus & Burkhard 12.750 6/27/2025 EUR 12.550 HSBC Trinkaus & Burkhard 10.250 6/27/2025 EUR 41.920 BNP Paribas Emissions- u 14.000 12/30/2024 EUR 44.810 BNP Paribas Emissions- u 16.000 12/30/2024 EUR 35.380 BNP Paribas Emissions- u 17.000 12/30/2024 EUR 47.510 HSBC Trinkaus & Burkhard 22.250 6/27/2025 EUR 15.440 HSBC Trinkaus & Burkhard 17.500 6/27/2025 EUR 13.460 HSBC Trinkaus & Burkhard 15.500 6/27/2025 EUR 43.380 Landesbank Baden-Wuertte 11.000 11/22/2024 EUR 25.690 Landesbank Baden-Wuertte 14.500 11/22/2024 EUR 20.390 HSBC Trinkaus & Burkhard 19.600 12/30/2024 EUR 14.020 BNP Paribas Emissions- u 17.000 12/30/2024 EUR 41.340 BNP Paribas Emissions- u 17.000 12/30/2024 EUR 34.090 BNP Paribas Emissions- u 16.000 12/30/2024 EUR 50.590 Bank Vontobel AG 10.500 5/12/2025 EUR 49.500 HSBC Trinkaus & Burkhard 11.750 6/27/2025 EUR 49.030 Landesbank Baden-Wuertte 18.000 11/22/2024 EUR 17.010 HSBC Trinkaus & Burkhard 17.400 12/30/2024 EUR 15.200 BNP Paribas Emissions- u 13.000 12/30/2024 EUR 48.670 Bank Vontobel AG 15.500 11/18/2024 CHF 23.700 HSBC Trinkaus & Burkhard 13.500 12/30/2024 EUR 44.610 Erste Group Bank AG 14.500 5/31/2026 EUR 34.400 Corner Banca SA 12.000 12/16/2024 CHF 50.320 UniCredit Bank GmbH 10.700 2/3/2025 EUR 16.070 HSBC Trinkaus & Burkhard 15.100 3/28/2025 EUR 22.050 HSBC Trinkaus & Burkhard 11.000 3/28/2025 EUR 24.750 HSBC Trinkaus & Burkhard 13.400 6/27/2025 EUR 24.980 HSBC Trinkaus & Burkhard 11.500 6/27/2025 EUR 26.360 HSBC Trinkaus & Burkhard 15.200 12/30/2024 EUR 11.000 HSBC Trinkaus & Burkhard 10.000 11/22/2024 EUR 22.190 HSBC Trinkaus & Burkhard 13.900 12/30/2024 EUR 47.110 HSBC Trinkaus & Burkhard 12.800 3/28/2025 EUR 48.720 Landesbank Baden-Wuertte 12.000 1/24/2025 EUR 18.510 UniCredit Bank GmbH 16.550 8/18/2025 USD 19.360 Bank Julius Baer & Co Lt 12.720 2/17/2025 CHF 22.500 UBS AG/London 21.600 8/2/2027 SEK 17.810 Armenian Economy Develop 10.500 5/4/2025 AMD 9.444 UBS AG/London 11.750 12/9/2024 EUR 45.350 Societe Generale SA 15.360 11/8/2024 USD 33.000 UniCredit Bank GmbH 10.500 12/22/2025 EUR 32.560 Societe Generale SA 11.000 7/14/2026 USD 14.500 UniCredit Bank GmbH 10.700 2/17/2025 EUR 16.360 Finca Uco Cjsc 13.000 11/16/2024 AMD 0.000 EFG International Financ 11.120 12/27/2024 EUR 40.910 Sidetur Finance BV 10.000 4/20/2016 USD 0.767 Lehman Brothers Treasury 10.500 8/9/2010 EUR 0.100 Lehman Brothers Treasury 10.000 3/27/2009 USD 0.100 Lehman Brothers Treasury 11.000 6/29/2009 EUR 0.100 Teksid Aluminum Luxembou 12.375 7/15/2011 EUR 0.619 Lehman Brothers Treasury 15.000 3/30/2011 EUR 0.100 Bulgaria Steel Finance B 12.000 5/4/2013 EUR 0.216 Lehman Brothers Treasury 13.000 7/25/2012 EUR 0.100 Lehman Brothers Treasury 11.000 12/19/2011 USD 0.100 Lehman Brothers Treasury 16.000 11/9/2008 USD 0.100 Lehman Brothers Treasury 15.000 6/4/2009 CHF 0.100 Lehman Brothers Treasury 16.000 12/26/2008 USD 0.100 Lehman Brothers Treasury 16.800 8/21/2009 USD 0.100 Lehman Brothers Treasury 13.000 12/14/2012 USD 0.100 UniCredit Bank GmbH 19.300 12/31/2024 EUR 45.730 UniCredit Bank GmbH 18.800 12/31/2024 EUR 39.560 UniCredit Bank GmbH 18.000 12/31/2024 EUR 35.900 Elli Investments Ltd 12.250 6/15/2020 GBP 1.144 Lehman Brothers Treasury 12.000 7/13/2037 JPY 0.100 Lehman Brothers Treasury 10.000 6/11/2038 JPY 0.100 Lehman Brothers Treasury 11.000 2/16/2009 CHF 0.100 Lehman Brothers Treasury 13.000 2/16/2009 CHF 0.100 Ukraine Government Bond 11.000 3/24/2037 UAH 34.833 Ukraine Government Bond 11.000 4/8/2037 UAH 34.804 Lehman Brothers Treasury 11.750 3/1/2010 EUR 0.100 Lehman Brothers Treasury 10.000 10/23/2008 USD 0.100 Lehman Brothers Treasury 10.000 10/22/2008 USD 0.100 Lehman Brothers Treasury 16.200 5/14/2009 USD 0.100 Lehman Brothers Treasury 10.600 4/22/2014 MXN 0.100 Lehman Brothers Treasury 10.000 5/22/2009 USD 0.100 Lehman Brothers Treasury 10.442 11/22/2008 CHF 0.100 Lehman Brothers Treasury 17.000 6/2/2009 USD 0.100 Lehman Brothers Treasury 13.500 6/2/2009 USD 0.100 Lehman Brothers Treasury 12.400 6/12/2009 USD 0.100 Lehman Brothers Treasury 11.000 7/4/2011 USD 0.100 Lehman Brothers Treasury 11.000 7/4/2011 CHF 0.100 Lehman Brothers Treasury 12.000 7/4/2011 EUR 0.100 Lehman Brothers Treasury 13.150 10/30/2008 USD 0.100 Lehman Brothers Treasury 14.100 11/12/2008 USD 0.100 Lehman Brothers Treasury 11.250 12/31/2008 USD 0.100 Lehman Brothers Treasury 16.000 10/28/2008 USD 0.100 Lehman Brothers Treasury 23.300 9/16/2008 USD 0.100 Lehman Brothers Treasury 10.000 6/17/2009 USD 0.100 Lehman Brothers Treasury 13.432 1/8/2009 ILS 0.100 Lehman Brothers Treasury 18.250 10/2/2008 USD 0.100 Lehman Brothers Treasury 14.900 11/16/2010 EUR 0.100 Lehman Brothers Treasury 16.000 10/8/2008 CHF 0.100 Lehman Brothers Treasury 10.000 2/16/2009 CHF 0.100 Ukraine Government Bond 11.000 4/1/2037 UAH 34.816 Ukraine Government Bond 11.000 4/23/2037 UAH 34.780 Bilt Paper BV 10.360 USD 1.041 Lehman Brothers Treasury 14.900 9/15/2008 EUR 0.100 Lehman Brothers Treasury 13.500 11/28/2008 USD 0.100 PA Resources AB 13.500 3/3/2016 SEK 0.124 Tonon Luxembourg SA 12.500 5/14/2024 USD 2.216 Privatbank CJSC Via UK S 10.875 2/28/2018 USD 5.300 Credit Agricole Corporat 10.200 12/13/2027 TRY 47.962 ********* 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 * * *