/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/241202.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, December 2, 2024, Vol. 25, No. 241 Headlines F R A N C E ASMODEE GROUP: Fitch Assigns B+(EXP) LongTerm IDR, On Watch Pos. ASMODEE GROUP: S&P Assigns Prelim 'B' LT ICR, On Watch Positive G E R M A N Y RENK GROUP: S&P Upgrades Long-Term ICR to 'BB', Outlook Stable I R E L A N D AURIUM CLO I: S&P Assigns B- (sf) Rating to Class F-RR Notes AVOCA CLO XI: S&P Assigns B- (sf) Rating to Class F-R-R Notes BARINGS EURO 2024-1: S&P Assigns B- (sf) Rating to Class F Notes KINBANE 2024-RPL 2: S&P Assigns B-(sf) Rating to Cl. F-Dfrd Notes TIKEHAU CLO IX: S&P Assigns B- (sf) Rating to Class F-R Notes I T A L Y AUTO ABS 2024-2: Fitch Assigns 'BB+sf' Final Rating to Cl. E Notes K A Z A K H S T A N AK ALTYNALMAS: S&P Assigns 'B+' Long-Term ICR, Outlook Stable L U X E M B O U R G BANQUE HAVILLAND: Administrators Provide Update on Debt Payments N E T H E R L A N D S ABERTIS INFRAESTRUCTURAS: Fitch Rates Hybrid Notes Final 'BB+' R U S S I A UZEX JSC: Fitch Affirms 'B' Long-Term IDRs, Outlook Stable S W E D E N HEIMSTADEN BOSTAD: S&P Rates New Subordinated Hybrid Notes 'BB' U N I T E D K I N G D O M CAMSTEAD LIMITED: Interpath Advisory Named as Joint Administrators HACHE BURGER: Interpath Named as Joint Administrators HOLBROOK MORTGAGE 2023-1: S&P Affirms B-(sf) Rating on Cl. F Notes OAT TOPCO: S&P Assigns 'B' Rating, Stable Outlook SCOTFIELD GROUP: Interpath Advisory Named as Administrators UNIQUE PUB: S&P Raises Class N Notes Rating to 'BB+ (sf)' X X X X X X X X YELCON LIMITED: Interpath Advisory Named as Joint Administrators [*] BOND PRICING: For the Week November 25 to November 29, 2024 - - - - - =========== F R A N C E =========== ASMODEE GROUP: Fitch Assigns B+(EXP) LongTerm IDR, On Watch Pos. ---------------------------------------------------------------- Fitch Ratings has assigned French tabletop games publisher and distributor Asmodee Group AB (Asmodee) an expected Long-Term Issuer Default Rating (IDR) of 'B+(EXP)'. Fitch has also assigned its upcoming EUR940 million senior secured notes (SSN) issue a 'BB-(EXP)' rating with a Recovery Rating of 'RR3'. All ratings are on Rating Watch Positive (RWP). The ratings follow Embracer Group AB's announcement to list Asmodee in a spin-off. Asmodee's ratings reflects its high leverage, as well as its free cash flow (FCF)- generative business model, and its intellectual property (IP) generation capabilities. The RWP reflects Fitch's deleveraging expectations following the announced EUR400 million capital injection by Embracer and EUR300 million debt repayment. This is likely to result in an upgrade to 'BB-' on the resolution of the RWP. The final ratings are subject to the completion of the spin-off and the receipt of the final debt documentation conforming to information already received. Key Rating Drivers Equity Listing: Asmodee, acquired by Embracer in March 2022, is being carved out to Embracer's shareholders. Embracer will raise debt on the carved-out entity to refinance a bridge facility raised to finance an extraordinary dividend payment. Subject to the closing of the disposal of Easybrain, expected to close in 2025, Embracer has announced a EUR400 million equity investment in Asmodee, of which EUR300 million is earmarked for debt prepayment. Material Deleveraging After Disposal: The repayment of EUR300 million debt will significantly lower its financial risk. Fitch forecasts the prepayment to take place over 2025, reducing gross debt to EUR680 million by financial year ending March 2026. Fitch calculates gross EBITDA leverage of 3.6x in FY26, with a mild reduction thereafter. Slow Organic Deleverage Potential: Fitch projects Asmodee's gross leverage at 5.3x Fitch-adjusted EBITDA for FY25, assuming no debt prepayments. While high, this level is manageable and aligns with a 'B+' rating in Asmodee's sector. Similarly, fairly strong profit margins result in an EBITDA interest coverage of about 2.5x or higher. However, without debt prepayments, the company's organic cash generation does not indicate a clear potential for net deleveraging, especially in FY27, when Fitch anticipates significant deferred consideration payments for previous years' acquisitions. Distribution Model Prevails: Asmodee has a creative factory that develops new IP in board games, though this accounted for a minor share of FY24 sales. Trading cards, which make up 46% of sales, are almost entirely distributed but published by third-parties. The remaining sales mainly involve internally published and third-party published board games. The company faces renewal risk for licenses, which come with minimum required royalty payments. Asmodee's expertise in cards and games formats, along with its proven distribution capabilities, is crucial for retaining licensors. Concentration on Pokémon: The distribution of Pokémon-related trading cards represented a meaningful portion of Asmodee's revenues for FY24, which Fitch expects to continue over the rating horizon. Its partnership with the brand, owned and published by Nintendo Co. Ltd and others, dates back to 2003. It exclusively distributes Pokémon-related cards and games, primarily in Europe. These are typically distributed across all channels, with a focus on independent stores. Steady EBITDA and FCF Margins: Fitch estimates Asmodee's Fitch-defined EBITDA margins at just below 15% for FY24, with an improvement of around 1% by FY28. Profitability is supported by an efficient cost structure that recovers investments in any new product launch from the first print run. FCF generation is consistently positive, due largely to limited capex. However, Fitch expects over EUR10 million in annual cash outflows from working capital, as growing inventories are essential to fully exploit sales opportunities during peak seasons. Strong Access to Independent Stores: Europe accounts for around 70% of total sales, with France and the UK being the primary markets, while the Americas contribute 23%. Sales are almost equally distributed across mass market, online, and independent channels, with the latter holding a slight edge. Asmodee has established strong access to independent stores, catering to enthusiasts and collectors who are repeat and less price-sensitive customers. Weaker Pricing in Online Channels: In contrast, Fitch expects weaker pricing power in the online and mass market channels. The dominant presence of Amazon.com, Inc. (AA-/Stable) in online sales, alongside mass retailers, including supermarkets, places a strong emphasis on discounted offers. Dividend Payments: Embracer has announced a financial policy for Asmodee to distribute excess liquidity to shareholders after a net leverage target of 2.0x, as calculated by the company, is achieved post-listing. Fitch expects dividend payments to commence in FY26, averaging EUR30 million per year for the following three years. However, this amount may reduce if significant M&A activity takes place. Moderate Growth in Tabletop: Asmodee's target market in its key countries is valued at over EUR12 billion. Following accelerated growth during the pandemic, moderate growth is projected for 2024 and an annual CAGR of 4% for 2024-2028, on a combination of volumes and pricing. Asmodee's market share is around 40% in France and the UK, below 20% in Germany, and 6% in the US. Fitch projects flat revenue growth for Asmodee through to FY28 after an almost 3% decline for FY25. This is due to moderate pricing improvements and softness in certain European markets, notably Germany. Derivation Summary Asmodee's rated peers include multinationals like Hasbro, Inc. (BBB-/Negative) and Mattel, Inc. (BBB-/Stable), which have larger scale, stronger and more valuable IP portfolios, and greater product and geographic diversification. In the European speculative-grade portfolio, Fitch sees some comparability with IP content generators in the broader media sector, such as Mediawan Holdings SAS (B/Stable) and Banijay SAS (B+/Stable), and in the professional education space with PeopleCert Wisdom Limited (B+/Stable). While both Mediawan and Banijay have comparable margins to Asmodee, they have a stronger foundation in their IP libraries, with Banijay additionally benefiting from greater scale. PeopleCert has significantly higher margins but operates on a smaller scale. Asmodee is also highly comparable with its broader consumer products speculative-grade portfolio, including leisure and gaming operators. Pinnacle Bidco plc (B-/Stable) and Deuce Midco Limited (B/Stable) have comparable scale but benefit from a higher leverage capacity, due to higher margins and a more recurring revenue model. Stan Holding SAS (Voodoo, B/RWN) enjoys similar leverage and profitability but operates on a smaller scale. Key Assumptions • Revenue decline of 2.8% in FY25, followed by a low single-digit growth of 1.1% to FY28 • Fitch-defined EBITDA margin growing from 14.8% in FY25 to 15.8% by FY28 • Working-capital outflows of EUR10 million-EUR13 million a year • Capex at 2.0%-2.5% of sales a year • Dividends payouts of EUR50 million in FY26 and EUR40 million in FY28 • Additional bolt-on M&A of EUR5 million per year, in addition to expected M&A earn-out outflows • Equity injection from Embracer of EUR400 million, of which EUR300 million will be used to repay debt in FY26 Recovery Analysis Its recovery analysis assumes that Asmodee will be considered a going concern (GC) in bankruptcy and that it would be reorganised rather than liquidated. This is because most of its value lies within its publishing and distribution knowledge in its sector and its IP rights. Fitch assesses GC EBITDA at EUR145 million, assuming that corrective measures and a restructuring of its capital structure would allow Asmodee to retain minimal FCF generation. Financial distress leading to a restructuring may be driven by Asmodee losing some of its licensors or a worsening quality of its IP portfolio, resulting in declining product volumes and price erosion. These factors may lead to a reduction in scale and a recalibration of its capital structure. Fitch applies a recovery multiple of 5.0x, which is in the mid-range for consumer and media issuers in EMEA. After deducting 10% for administrative claims, this generates a ranked recovery in the 'RR3' band, leading to a 'BB-(EXP)' instrument rating for the new SSNs, ranking below its EUR150 million super senior revolving credit facility (RCF). This results in a waterfall-generated recovery computation output percentage of 53%. Its estimates of creditor claims include fully drawn new EUR940 million SSNs, a EUR150 million super senior RCF, and about EUR30 million of various bilateral facilities. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Total debt/Fitch-calculated EBITDA deteriorating to above 5.5x for EBITDA, due to operational challenges or more debt-funded acquisitions - Deterioration of EBITDA margins, led by a higher reliance on third-party licenses or weakened product appeal - FCF margins falling to neutral-to-moderately positive levels - EBITDA interest cover remaining below 2.5x Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Revenue growth and EBITDA margins expansion resulting in total debt/Fitch-calculated EBITDA below 4.5x on a sustained basis with a conservative funding mix of cash, debt or equity for M&As - Lower reliance on third-party licenses and consolidation of internally generated IP leading to sustainably higher EBITDA and FCF margins - EBITDA interest cover sustained above 3.5x Liquidity and Debt Structure Fitch projects Asmodee to have a strong cash balance of EUR140 million at FYE26. This will be further supported by projected positive FCF, EUR100 million additional cash from the equity injection and an undrawn EUR150 million RCF. Date of Relevant Committee 21-Nov-2024 Sources of Information Sources of information included pro-forma auditor prepared accounts, a presentation for rating agency and a meeting with management. 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 ----------- ------ -------- Asmodee Group AB LT IDR B+(EXP) Expected Rating senior secured LT BB-(EXP) Expected Rating RR3 ASMODEE GROUP: S&P Assigns Prelim 'B' LT ICR, On Watch Positive --------------------------------------------------------------- S&P Global Ratings assigned a preliminary 'B' long-term issuer credit rating to tabletop games publisher and distributor Asmodee Group AB and preliminary 'B' issue rating to the group's proposed EUR940 million senior secured notes, with a preliminary '3' recovery rating, and placed the ratings on CreditWatch with positive implications. The CreditWatch placement reflects the likelihood that S&P will raise the ratings on Asmodee by at least one notch, once the debt repayment materializes and the spin-off completes, reflecting strengthened credit metrics, with adjusted leverage sustainably less than 5x, strong cash generation, and a commitment to a more-conservative financial policy that would sustain the improvement in the credit metrics. S&P said, "Our rating primarily reflects a high debt burden at the transaction's close, although we expect it to reduce in the first quarter of 2025, thanks to a significant debt repayment. Asmodee Group AB is looking to issue five-year EUR940 million senior secured notes to repay EUR900 million bridge facility and transaction fees ahead of its spin-off from Swedish media and video games Embracer Group. The group also plans to issue a EUR150 million RCF which will remain undrawn at the transaction's close. Once the spin-off is complete, Asmodee will be separately listed on Nasdaq Stockholm, with current Embracer founder Lars Wingefors holding about 20% of Asmodee's shares. Distribution of the remaining shares to institutional investors will be proportionate to their current Embracer shareholdings. The capital structure at the transaction's close will be highly leveraged, with S&P Global Ratings-adjusted leverage at about 5.5x, from a stand-alone leverage of 1.5x as of March 31, 2024. That said, on Nov. 19, 2024, Embracer Group announced it would use the proceeds from the recent sale of its subsidiary Easybrain to make an equity injection of EUR400 million into Asmodee, of which EUR300 million will be used to repay gross debt. Therefore, we expect S&P Global Ratings-adjusted leverage to decline to about 3.5x after the debt repayment, improving credit metrics after the transaction's close." Asmodee has a very solid market position in the highly fragmented tabletop industry, supported by established, although not exclusive, relationship with key market players. The tabletop market is expected to grow at a compound annual growth rate of about 4% between 2024 and 2028, supported by higher volumes of sales that reflect stronger consumer interests to engage in offline social activities, but also new product launches in the industry, oftentimes linked to an existing franchise, tapping into a pre-existing loyal customer base. As a publisher and a global distributor of board games and trading card games, Asmodee has a strong competitive position in its niche market, with leading market shares in France (37%-41% of tabletop industry) and the U.K. (40%-44%). With about 64% of revenue derived from distributed games, S&P believes that Asmodee could benefit from these positive industry dynamics, thanks to its established relationships with third-party intellectual property (IP) owners, relying on Asmodee's creative capabilities and global reach to develop and distributed tabletop games on renowned franchises, such as 'Star Wars', 'Pokemon', or 'Game of Thrones'. That said, the reliance on third-party IPs could affect Asmodee's financial performance if the third-party IP owners were to diminish strategic investments for the franchise or if the company were to lose any key licensing agreement with them. In addition, Asmodee has established a portfolio of IPs it owns and can expand to other product categories; this strengthens its business model but is subject to changes in consumer preferences. The portfolio of more than 400 fully owned IPs makes Asmodee's intellectual property catalogue the largest in the industry. It is constantly refreshed, with more than 1,000 games launched per year. Innovation requires limited upfront investments, and the company is able to generate profit from the first print-run of a new tabletop game. Asmodee's top five ranges of products generate about 50% of its net sales, with three ranges attributable to games published by Asmodee ('Exploding Kittens', 'Ticket to Ride', and 'Dobble/Spot-it!'), and two attributable to games published by partners and distributed by Asmodee ('The Pokemon Trading Card Game' and 'Magic: The Gathering'). Over the past five years, Asmodee has been able to expand the reach of its owned IPs, working with partners to develop ancillary products, such as Netflix's series on 'Exploding Kittens' or French pay-tv Canal + game 'Werewolves of Miller's Hollow'. S&P said, "While we believe that the development of owned IPs into other products can strengthen the company's brands and attract new customers, we also believe that Asmodee's financial performance could be impacted by changes in consumers' preferences, if any of their key titles were to become less popular." A diversified geographic sales footprint, combined with sales channel diversity, should help Asmodee withstand macroeconomic volatility and reinforce the company's established position. Asmodee directly distributes tabletop games in 22 countries, with no single market accounting for more than 30% of total sales, although with notable contributions from France (19%), the U.S. (17%), Germany (15%), and the U.K. (14%). S&P said, "The geographic diversification of revenue is a positive, in our view, since it helps smooth the volatility of macroeconomic conditions and consumers' preferences in different locations. The diversity of its global reach is complemented by a wide client base of various retailers. Asmodee has a balanced revenue stream by channel across three main categories: hobby and independent stores, traditional mass market retailers, and online stores. Hobby and independent stores account for about 35%-40% of board games sales. We see the hobby retailers' channel as strategically important for the group, as it is the main sale channel for high-spending recurring players and the main market route for innovation in the tabletop industry. By maintaining strong relationships with these retailers, Asmodee can ensure that their products reach the targeted players and that the interest in their catalogue is maintained throughout the year, alleviating seasonality, and reducing reliance on promotional activity to some extent." Improved profitability and free operating cash flow (FOCF) after leases should cover potential future large earn-out payments. In fiscal 2024 Asmodee's S&P Global Ratings-adjusted EBITDA margin stood at about 13%. S&P said, "This is below what we consider the average 20%-30% profitability of leisure companies. We expect the company to be able to increase its profitability over our three-years forecast period to about 15%-16%, supported by a higher share of revenue generated from published games, whose profitability is twice that of distributed games. In spite of lower EBITDA margins than rated peers in the same sector, Asmodee's FOCF after leases generation is strong, thanks to the limited capital expenditure (capex) required for business development and limited amount of fixed charges for the group. That said, regular and large earn-outs that the company could be required to pay under its bolt-on mergers and acquisitions (M&A) strategy could materially affect earnings and cash flow generation. Our base case includes earn-out payments for the recent acquisitions of Exploding Kittens and Venross, but these payments could be larger in the future as the company will resume its acquisitive strategy once it is listed as a separate entity from the Embracer group." A stronger financial policy commitment supports the company's credit quality and can further enhance its future creditworthiness. Asmodee's management recently committed to a net leverage target of below 3x in the medium terms (three to five years) and below 2x in the longer term. The latter will be accompanied with regular shareholders distributions once reached. Although the financial policy commitment is supportive of a higher creditworthiness for the group, so far, S&P has limited track record as to how the financial policy commitment will materialize in conjunction with the inorganic growth strategy and regular shareholders distributions. Until 2022, Asmodee has been controlled by financial sponsors that supported the M&A activity of the group, while the parent company Embracer partially halted the strategy after the acquisition of the group. S&P said, "The final ratings will depend on our receipt and satisfactory review of all final documentation and final terms of the transaction. The preliminary ratings should therefore not be construed as evidence of final ratings. If we do not receive final documentation within a reasonable time, or if the final documentation and final terms of the transaction depart from the materials and terms reviewed, we reserve the right to withdraw or revise the ratings. Potential changes include, but are not limited to, utilization of the proceeds, maturity, size and conditions of the facilities, financial and other covenants, security, and ranking. "We aim to resolve the CreditWatch placement and will likely raise the rating by at least one notch when the equity injections and the spin-off from Embracer materialize and Asmodee repays the EUR300 million senior secured notes as announced. The size of the rating uplift will also depend on the timing of the IPO, its capital structure, and the financial policy thereafter. "We could also remove the rating from CreditWatch and affirm it at 'B' if the final transaction terms differ materially from our base case, or if the planned spin-off from Embracer and separate listing of Asmodee do not materialize as planned." ============= G E R M A N Y ============= RENK GROUP: S&P Upgrades Long-Term ICR to 'BB', Outlook Stable -------------------------------------------------------------- S&P Global Ratings raised its long-term issuer credit rating on RENK Group AG to 'BB' from 'BB-' and the issue rating on the term loan B (TLB) to 'BB' from 'BB-', with the recovery rating on the debt unchanged at '3' (about 65% recovery estimated). The stable outlook reflects S&P's expectation that RENK will continue to benefit from solid end-market demand and from its robust order backlog, with S&P Global Ratings-adjusted EBITDA margins rising to more than 19%, and posting consistently solid free operating cash flow (FOCF) while following a conservative financial policy. The upgrade reflects a solid ongoing operating performance, despite some political upheaval in the U.S. and potential reprioritization of U.S. defense spending, spending allocation, and platform prioritization. With the recent electoral victory of Donald Trump in the U.S., which is the world's largest defense market in the world and where RENK generated about 23% of 2023 revenue, there is now some uncertainty around potential future changes in U.S. defense policy, spending allocation, and the prioritization of defense platforms. S&P said, "However, we believe that any negative changes in the U.S. for RENK will likely be mitigated by increasing defense spending in Europe, as NATO members are increasingly investing to modernize, digitalize, and integrate their armed forces. Moreover, European governments are replenishing their national defense stocks and strengthening their borders, as the Ukraine-Russia and Israel-Hamas wars continue. We note that RENK generated about 56% of 2023 revenue from Europe, the Middle East, and Africa and about 20% in Asia-Pacific." In the first nine months of 2024, RENK's backlog grew steadily toward EUR5 billion (including fixed, frame, and soft order backlog), revenue increased by 19.3% year on year to EUR778 million, led by the Vehicle Mobility Solutions (VMS) division. RENK's backlog covers around five years of 2023 revenue. In addition, RENK confirmed its financial guidance for 2024 and for the medium term. According to management, RENK's total addressable market in defense should expand at a compound annual growth rate of 13% to EUR4.1 billion in 2027 from EUR1.8 billion in 2021. These factors, combined with the company's strategy to increase its capabilities through strategic partnerships, support our revenue growth expectations of around 19%-20% in 2024 and 14%-16% in 2025. The upgrade also reflects financial sponsor Triton reducing its stake in RENK to 33.5%, and RENK's management pursuing a more conservative financial policy Financial sponsor Triton has historically owned a significant portion of RENK's shares (100% in February 2021). Following RENK's public listing in February 2024, Triton owned 62% of the shares, which it further reduced to around 52% in May 2024. In October 2024, Triton then placed an additional 18.4% shares through an accelerated book-building process to institutional investors. S&P said, "As a result, Triton now owns 33.5% of the company's shares and, as such, we no longer view RENK as a financial sponsor-owned and -controlled company. RENK's free float now accounts for nearly 55.6% of the share capital, with the residual 10.9% owned by KNDS (6.7%) and RENK's management through Rebecca Management SARL (4.2%). Triton is now expected to have a lower degree of influence on the company's financial policy. We expect management to maintain a more conservative financial policy, with a public target of net leverage of 1.5x. We note that Triton only has a two-member representation in the supervisory board (out of 12), one of them being the chairman." S&P said, "We expect RENK's credit metrics and its FOCF to continue to strengthen in 2024 and 2025. We forecast RENK will generate S&P Global Ratings-adjusted EBITDA margins of around 19.4% in 2024 and close to 20% in 2025, from 18.2% in 2023." The increase in margins will be supported by continued operational improvements at the company's production plants (which are expected to lead to output increases), positive mix effects from the margin-accretive defense orders and higher-margin aftermarket services, operating leverage from higher volumes, and procurement saving measures. Capital expenditure (capex) will remain at about 3% of revenue in 2024-2025, in line with 2023, with forecast working capital requirements of EUR25 million-EUR30 million in 2024 and EUR10 million-EUR20 million in 2025. This will lead to an S&P Global Ratings-adjusted FOCF of around EUR94 million in 2024, and about EUR130 million in 2025. The increase in the company's profitability could drive the company's deleveraging over the forecast horizon through 2026. RENK's S&P Global Ratings-adjusted debt includes EUR525 million of reported debt, EUR8.5 million of reported lease liabilities, and EUR3.1 million of unfunded pension obligations, netted by accessible cash of around EUR103 million in 2024 and an assumed cash balance of EUR129 million in 2025. This, together with the increase in profitability will lead to an expected leverage of about 2.0x in 2024, potentially improving toward 1.6x in 2025. S&P said, "On the other hand, we note that RENK has historically operated with a tolerance for higher leverage and, as such, we would like to see a period of sustained lower leverage before considering a higher rating. The group's mergers and acquisitions and shareholder remuneration policy will also play a part on whether the company will deleverage in line with our base case." How management navigates these--and the track record it develops--will be part of any potential higher rating in future. A higher rating would also depend on RENK increasing its scale and scope. S&P notes that RENK's aerospace and defense peers that are rated in the 'BB+' or 'BBB-' category are typically significantly larger in terms of their geographic presence, breadth, and depth of products and services, and exhibit materially higher revenue and absolute EBITDA bases. Higher-rated corporates also typically operate as original equipment manufacturers or Tier 1 players, with some even benefitting from partial or full state ownership. Many also operate to publicly stated leverage targets. As such, S&P believes that a further upgrade (of RENK) is unlikely over its 12-month rating horizon but will continue to monitor and assess the group's business perimeter, operating performance, and credit metrics to see whether, over the longer term, they grow or strengthen to a level that supports a higher rating. The stable outlook reflects S&P's expectation that RENK will continue to benefit from solid end-market demand and from its robust order backlog, with profitability continuing to improve as S&P Global Ratings-adjusted EBITDA margins rise above 19%, and the group generates consistently solid FOCF and operates under a conservative financial policy. S&P could lower the rating if RENK's revenue growth prospects, profitability, or cash flow performance were to deteriorate due to factors such as declining end-market demand or supply chain problems, resulting in: -- S&P Global Ratings-adjusted EBITDA margin below 18%, alongside materially weaker FOCF. - The group's adjusted debt to EBITDA rising significantly above 3x. -- FFO to debt falling below 30% which could happen if, for example, Triton or another financial sponsor took a larger stake in the group, and subsequently pursued a more aggressive financial policy. The potential for an upgrade is limited over the next 12 months. In the longer term, S&P could raise the ratings if RENK increases its scale and scope more in line with higher rated peers in the aerospace and defense industry, along with a clear publicly stated financial policy. In this scenario, S&P would also expect to see a consistently conservative financial policy, including: -- A track record of margins growing or remaining comfortably in excess of 18%; -- An S&P Global Ratings-adjusted debt to EBITDA ratio maintained below 2x; -- FFO to debt of sustainably more than 45%; and -- Robust positive FOCF. S&P said, "Governance factors are a moderately negative consideration in our credit rating analysis of RENK, as is our opinion for most rated entities owned by private-equity sponsors. We believe that this points to corporate decision-making that could prioritize the interests of the controlling owners. This also reflects the generally finite holding periods and a focus on maximizing shareholder returns." ============= I R E L A N D ============= AURIUM CLO I: S&P Assigns B- (sf) Rating to Class F-RR Notes ------------------------------------------------------------ S&P Global Ratings assigned its credit ratings to Aurium CLO I DAC's A-1-RR, A-2-RR, B-1-RR, B-2-RR, C-RR, D-RR, E-RR, and F-RR notes. At closing, the issuer also issued unrated subordinated notes. This transaction is a reset of the already existing transaction. The issuance proceeds of the refinancing notes were used to redeem the refinanced notes (the original transaction's class A-R-R, B-R-R, C-R-R, D-R-R, E-R, and F-R notes) and the ratings on the original notes have been withdrawn. The ratings reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,778.07 Default rate dispersion 562.71 Adjusted/actual weighted-average life (years) 5.00/4.21 Obligor diversity measure 144.93 Industry diversity measure 21.34 Regional diversity measure 1.33 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 2.00 Actual 'AAA' weighted-average recovery (%) 36.67 Actual weighted-average spread (%) 3.93 Actual weighted-average coupon (%) 4.49 Under the transaction documents, the rated notes will pay quarterly interest unless a frequency switch event occurs. Following this, the notes will switch to semiannual payments. The portfolio's reinvestment period will end approximately five years after closing. The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, S&P has conducted its credit and cash flow analysis by applying its criteria for corporate cash flow CDOs. S&P said, "In our cash flow analysis, we used the EUR450 million target par amount, the portfolio's covenanted weighted-average spread (3.90%), covenanted weighted-average coupon (4.00%), and actual weighted-average recovery rates for all rating levels. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category." This transaction features a principal transfer test, which allows interest proceeds exceeding the principal transfer coverage ratio to be paid into either the principal or supplemental reserve account. The interest proceeds can only be paid into the principal account senior to the reinvestment overcollateralization test and into the supplemental reserve account junior to the reinvestment overcollateralization test. S&P said, "Therefore, we have not applied a cash flow stress for this. Nevertheless, because the transfer to principal is at the collateral manager's discretion, we did not give credit to this test in our cash flow analysis." S&P said, "Under our structured finance sovereign risk criteria, we consider that the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "The transaction's legal structure and framework is bankruptcy remote, in line with our legal criteria. "Our credit and cash flow analysis indicates that the available credit enhancement for the class B-1-RR to F-RR notes could withstand stresses commensurate with higher ratings than those we have assigned. However, as the transaction will be in its reinvestment phase starting from closing, during which the transaction's credit risk profile could deteriorate, we have capped our ratings assigned to the notes. "Taking the above factors into account and following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe that our ratings are commensurate with the available credit enhancement for the class A-1-RR to F-RR notes. "In addition to our standard analysis, to provide an indication of how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we have also included the sensitivity of the ratings on the class A-1-RR to E-RR notes based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F-RR notes." Environmental, social, and governance S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit assets from being related to certain activities, including, but not limited to the following: illegal activities, child or forced labour, asbestos fibres, sanctioned products, speculative extraction of oil and gas, controversial weapons, hazardous chemicals and pesticides, illegal drugs or narcotics, non-sustainable palm oil production, civilian weapons or firearms, tobacco, thermal coal, fossil fuels, private prisons, activities that adversely affect animal welfare, payday lending, pornography or prostitution, trade in endangered wildlife, or opioids. "Accordingly, since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, we have not made any specific adjustments in our rating analysis to account for any ESG-related risks or opportunities." Aurium CLO I is a European cash flow CLO securitization of a revolving pool, comprising euro-denominated senior secured loans and bonds issued mainly by speculative-grade borrowers. Spire Management Ltd. manages the transaction. Ratings list Amount Credit Class Rating* (mil. EUR) Interest rate§ enhancement (%) A-1-RR AAA (sf) 279.00 3mE + 1.30% 38.00 A-2-RR AAA (sf) 7.875 3mE + 1.60% 36.25 B-1-RR AA (sf) 31.625 3mE + 1.90% 27.00 B-2-RR AA (sf) 10.00 4.95% 27.00 C-RR A (sf) 27.00 3mE + 2.25% 21.00 D-RR BBB- (sf) 31.50 3mE + 3.35% 14.00 E-RR BB- (sf) 20.25 3mE + 5.90% 9.50 F-RR B- (sf) 13.50 3mE + 8.41% 6.50 Sub notes NR 32.00 N/A N/A *The ratings assigned to the class A-1-RR, A-2-RR, B-1-RR, and B-2-RR notes address timely interest and ultimate principal payments. The ratings assigned to the class C-RR, D-RR, E-RR, and F-RR notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to 6mE when a frequency switch event occurs. 3mE--Three-month Euro Interbank Offered Rate. 6mE--Six-month Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. AVOCA CLO XI: S&P Assigns B- (sf) Rating to Class F-R-R Notes ------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Avoca CLO XI DAC's class X-R, A-R-R-R, B-R-R-R, C-R-R, D-R-R, E-R-R, and F-R-R notes. There are also unrated subordinated notes from the original transaction. The transaction is a reset of the already existing transaction. The existing classes of notes were fully redeemed with the proceeds from the issuance of the replacement notes on the reset date. The ratings assigned to the notes reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,785.79 Default rate dispersion 500.49 Weighted-average life (years) 4.18 Weighted-average life (years) extended to cover the length of the reinvestment period 4.63 Obligor diversity measure 168.78 Industry diversity measure 19.51 Regional diversity measure 1.30 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 1.18 Target 'AAA' weighted-average recovery (%) 37.65 Target weighted-average spread (net of floors; %) 3.79 Target weighted-average coupon (%) 4.17 Under the transaction documents, the rated notes will pay quarterly interest unless a frequency switch event occurs. Following this, the notes will switch to semiannual payments. Rationale S&P said, "The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, we have conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we used the EUR500 million target par amount, the covenanted weighted-average spread (3.70%), the covenanted weighted-average coupon (4.00%), and the covenanted weighted-average recovery rates at all rating levels. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Until the end of the reinvestment period on July 15, 2029, the collateral manager may substitute assets in the portfolio as long as our CDO Monitor test is maintained or improved in relation to the initial ratings on the notes. This test looks at the total amount of losses that the transaction can sustain--as established by the initial cash flows for each rating--and compares that with the current portfolio's default potential plus par losses to date. As a result, until the end of the reinvestment period, the collateral manager may through trading deteriorate the transaction's current risk profile, if the initial ratings are maintained. "Under our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our counterparty criteria. "The transaction's legal structure and framework is bankruptcy remote, in line with our legal criteria. "The CLO is managed by KKR Credit Advisors (Ireland) Unlimited Co., and the maximum potential rating on the liabilities is 'AAA' under our operational risk criteria. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe the ratings are commensurate with the available credit enhancement for the class X-R, A-R-R-R, and F-R-R notes. "Our credit and cash flow analysis indicates that the available credit enhancement for the class B-R-R-R to E-R-R notes could withstand stresses commensurate with higher ratings than those assigned. However, as the CLO will be in its reinvestment phase starting from closing--during which the transaction's credit risk profile could deteriorate--we have capped our ratings on the notes. "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we also included the sensitivity of the ratings on the class X-R to E-R-R notes based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F-R-R notes. Environmental, social, and governance S&P said, "We regard the transaction's exposure to environmental, social, and governance (ESG) credit factors as broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental and social credit factors is viewed as below average, while governance credit factors are average. The transaction documents prohibit assets from being related to the following industries: anti-personnel mines, cluster weapons, depleted uranium, nuclear weapons, white phosphorus, biological or chemical weapons; civilian firearms; tobacco; thermal coal or coal extraction; payday lending; thermal coal production, speculative extraction of oil and gas, oil sands and associated pipelines industry; endangered or protected wildlife; marijuana; pornography or prostitution; opioid; and illegal drugs or narcotics. Accordingly, since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Avoca CLO XI DAC is a European cash flow CLO securitization of a revolving pool, comprising mainly euro-denominated leveraged loans and bonds. KKR Credit Advisors (Ireland) Unlimited Co. manages the transaction. Ratings list Amount Credit Class Rating* (mil. EUR) Interest rate§ enhancement (%) X-R AAA (sf) 5.00 Three/six-month EURIBOR N/A plus 0.98% A-R-R-R AAA (sf) 310.00 Three/six-month EURIBOR 38.00 plus 1.29% B-R-R-R AA (sf) 54.50 Three/six-month EURIBOR 27.10 plus 1.95% C-R-R A (sf) 28.00 Three/six-month EURIBOR 21.50 plus 2.25% D-R-R BBB- (sf) 35.00 Three/six-month EURIBOR 14.50 plus 3.20% E-R-R BB- (sf) 25.00 Three/six-month EURIBOR 9.50 plus 6.15% F-R-R B- (sf) 15.00 Three/six-month EURIBOR 6.50 plus 8.25% Sub notes NR 58.50 N/A N/A *The ratings assigned to the class X-R, A-R-R-R, and B-R-R-R notes address timely interest and ultimate principal payments. The ratings assigned to the class C-R-R, D-R-R, E-R-R, and F-R-R notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. BARINGS EURO 2024-1: S&P Assigns B- (sf) Rating to Class F Notes ---------------------------------------------------------------- S&P Global Ratings assigned its preliminary credit ratings to Barings Euro Middle Market CLO 2024-1 DAC's class A-1 Loan and A-2 Loan, and class A, B, C, D, E, and F notes. At closing, the issuer will also issue unrated subordinated notes. The preliminary ratings assigned to the notes and loans reflect our assessment of: -- The static collateral pool, which primarily comprises middle market senior secured leveraged loans and some broadly syndicated speculative-grade senior secured term loans. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The transaction's legal structure, which we expect to be bankruptcy remote. -- The transaction's counterparty risks, which we expect to be in line with our counterparty rating framework. Portfolio benchmarks Current S&P Global Ratings' weighted-average rating factor 3,587.08 Default rate dispersion 456.11 Weighted-average life (years) 4.63 Obligor diversity measure 53.96 Industry diversity measure 14.00 Regional diversity measure 1.00 Transaction key metrics Current Portfolio weighted-average rating derived from S&P's CDO evaluator B- Current 'CCC' category rated assets (%) 8.33 'CCC' category rated assets modelled (%)* 12.5 Actual 'AAA' weighted-average recovery (%) 48.49 Actual weighted-average spread (net of floors, %) 5.56 *The 'CCC' excess is equal to 20%. Accordingly, we have modelled 12.5% 'CCC' rated assets in the portfolio for purpose of modelling the scenario default rates (SDRs). Under the transaction documents, the rated notes and loans pay quarterly interest unless a frequency switch event occurs. Following this, the rated notes and loans will switch to semiannual payments. The portfolio primarily comprises middle market senior secured leveraged loans and some broadly syndicated speculative-grade senior secured term loans. Therefore, S&P has conducted its credit and cash flow analysis by applying its criteria for corporate cash flow CDOs. The issuer will purchase the middle market portfolio from Massachusetts Mutual Life Insurance Company (MassMutual, who is also the originator of these loans) via a sale agreement. In some instances, the sale will be in the form of a participation, which may result in the middle market loans settling with the issuer after the closing date. The transaction documents require that the issuer and MassMutual use commercially reasonable efforts to elevate the participations by transferring to the issuer the legal and beneficial interests in such assets as soon as reasonably practicable. Under the sale agreement, all title and interest of the middle market assets represent an absolute sale and transfer of ownership to the issuer. Furthermore, the middle market assets shall not be part of the MassMutual's bankruptcy estate in the event of its bankruptcy or insolvency. Portfolio Characteristics Target collateral obligations Target par balance (mil. EUR) 380.00 Par balance of middle market loans (mil. EUR) 330.81 Par balance of BSLs (mil. EUR) 49.19 No. of unique obligors 61 No. of middle market obligors 45 No. of BSL obligors 16 Average obligor holding (%) 1.64 Largest obligor holding (%) 2.15 Smallest obligor holding (%) 0.52 BSL--Broadly syndicated loan Ratings distribution The table below shows the credit estimate and ratings distribution in the portfolio. Rating and credit estimate distribution S&P Global Ratings' rating/ implied rating/ credit estimates % of portfolio AAA 0.0 AA+ 0.0 AA 0.0 AA- 0.0 A+ 0.0 A 0.0 A- 0.0 BBB+ 0.0 BBB 0.0 BBB- 0.0 BB+ 0.0 BB 0.9 BB- 0.8 B+ 1.6 B 22.7 B- 65.7 CCC+ 4.2 CCC 4.1 CCC- 0.0 Obligor concentration The underlying portfolio comprises 61 distinct obligors. The table below shows the respective industries of the 10 top obligors. Top obligor holding Obligor Obligor Cumulative Reference Industry (notional (notional amount; %) amount; %) 1 Health care providers and services 2.15 2.15 2 Health care providers and services 2.12 4.27 3 Chemicals 2.11 6.38 4 Software 2.11 8.48 5 Household products 2.11 10.59 6 Chemicals 2.11 12.69 7 Professional services 2.11 14.80 8 Insurance 2.11 16.90 9 IT services 2.11 19.01 10 Electronic equipment, instruments and components 2.11 21.11 Industry distribution The table below shows the top 10 industry distribution in the portfolio. The portfolio comprises 24 distinct industries as per the Capital IQ industry - level 3 classification. Industry distribution S&P Global Ratings' industry classification % of portfolio Software 16.29 Healthcare providers and services 9.98 IT services 7.91 Pharmaceuticals 7.38 Chemicals 7.11 Construction and engineering 6.79 Professional services 5.13 Insurance 4.21 Aerospace and defense 4.12 Healthcare equipment and supplies 3.62 Other 27.46 Country concentration The table below shows the country distribution in the portfolio. The portfolio comprises 10 countries. Country distribution S&P Global Ratings' country classification % of portfolio France 39.11 Netherlands 21.56 Germany 12.71 United Kingdom 6.84 Belgium 6.32 Luxembourg 4.61 Ireland 3.72 Austria 2.11 Italy 2.11 Spain 0.92 Supplemental tests S&P said, "We also conduct a largest industry default test, a largest obligor default test, a largest sovereign default test, and a largest transfer and convertibility default test according to our "Global Methodology And Assumptions For CLOs And Corporate CDOs," published on June 21, 2019, and "Incorporating Sovereign Risk In Rating Structured Finance Securities: Methodology And Assumptions," published on Jan. 30, 2019. Under these assumptions, the notes can withstand the loss amounts indicated in the "Supplemental tests" table at the assigned preliminary ratings." S&P said, "In our cash flow analysis, we used the EUR380 million target par amount, the actual weighted-average spread (5.56%), and the actual weighted-average recovery rate at all rating levels. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Under our structured finance sovereign risk criteria, we consider that the transaction's exposure to country risk is sufficiently mitigated at the assigned preliminary ratings. "We expect the transaction's documented counterparty replacement and remedy mechanisms to adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "We expect the transaction's legal structure and framework to be bankruptcy remote, in line with our legal criteria." Approximately 60% of the portfolio comprises middle market borrowers whose loan terms include some variation of a payment-in-kind (PIK) or PIK-toggle feature. This ranges from some borrowers who have the ability to defer a portion of current cash margin that is due and payable, to some borrowers who have the ability to also defer on the floating-rate index that is due and payable. In all cases, these borrowers are required to pay a minimum cash margin of interest when due (this also includes scenarios where the loan includes a step-down feature). Failure to pay such minimum amount will result in a payment default. S&P said, "As part of our analysis (including sensitivity analysis), we considered a scenario where all PIK and PIK-toggle assets revert to paying the minimum interest rate at the same time. Under this scenario, all classes of notes continue to pass at the assigned rating levels, other than the class E notes, where our analysis indicates a minor negative cushion at the assigned rating level. "Following our analysis (including sensitivity analysis) of the credit, cash flow, counterparty, operational, and legal risks, we believe our assigned preliminary ratings are commensurate with the available credit enhancement for the class A-1 Loan and A-2 Loan, and class A, B, C, D, E, and F notes. "Our credit and cash flow analysis indicates that the available credit enhancement for the class D notes could withstand stresses commensurate with a higher preliminary rating than that we have assigned. However, as the CLO is static from the closing date, a faster deleveraging of notes may result in increased concentration risk at lower rating levels. As a result, we have capped our preliminary rating assigned to the class D notes. "The class F notes' current break-even default rate (BDR) cushion is negative at the current rating level. Nevertheless, based on the portfolio's actual characteristics and additional overlaying factors, including our long-term corporate default rates and recent economic outlook, we believe this class is able to sustain a steady-state scenario, in accordance with our criteria." S&P's analysis further reflects several factors, including: -- The class F notes' available credit enhancement, which is in the same range as that of other CLOs S&P has rated and that has recently been issued in Europe. -- S&P's model-generated BDR, which is at the 'B-' rating level at 32.18% (for a portfolio with a weighted-average life of 4.63 years) versus 14.34% if it was to consider a long-term sustainable default rate of 3.1% for 4.63 years. -- Whether the tranche is vulnerable to nonpayment in the near future. -- If there is a one-in-two chance for this note to default. -- If we envision this tranche to default in the next 12-18 months. -- Following this analysis, S&P considers that the available credit enhancement for the class F notes is commensurate with the assigned preliminary 'B- (sf)' rating. S&P said, "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we also assessed the sensitivity of our ratings on the class A-1 Loan and A-2 Loan, and class A, B, C, D, E notes, based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F notes." Environmental, social, and governance S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit assets from being related to certain activities (non-ESG collateral obligations). "Accordingly, since the exclusion of assets from such industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Assigned Preliminary Ratings Ratings list Prelim Prelim amount Credit Class rating* (mil. EUR) Interest rate (%) enhancement (%) A AAA (sf) 145.60 3mE + 1.47 38.00 A-1 Loan AAA (sf) 40.00 3mE + 1.47 38.00 A-2 Loan AAA (sf) 50.00 3mE + 1.47 38.00 B AA+ (sf) 26.60 3mE + 2.20 31.00 C A+ (sf) 30.40 3mE + 2.70 23.00 D BBB (sf) 19.00 3mE + 4.50 18.00 E BB- (sf) 28.50 3mE + 7.87 10.50 F B- (sf) 9.50 3mE + 9.27 8.00 Subordinated NR 31.00 N/A N/A *The preliminary ratings assigned to the class A-1 Loan and A-2 Loan and class A and B notes address timely interest and ultimate principal payments. The preliminary ratings assigned to the class C, D, E, and F notes address ultimate interest and principal payments. NR--Not rated. N/A--Not applicable. 3mE--Three-month Euro Interbank Offered Rate. KINBANE 2024-RPL 2: S&P Assigns B-(sf) Rating to Cl. F-Dfrd Notes ----------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Kinbane 2024-RPL 2 DAC's class A, B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, and F-Dfrd notes. At closing, Kinbane also issued unrated class RFN, Z1, Z2, and X notes. S&P's rating on the class A notes addresses timely payment of interest and the ultimate payment of principal. S&P's ratings on the class B-Dfrd to F-Dfrd notes address the ultimate payment of interest and principal. A fully funded liquidity reserve fund and non-liquidity reserve fund are available to meet revenue shortfalls on the most senior tranche and to provide credit enhancement to all rated notes. Kinbane 2024-RPL 2 contains EUR427.3 million first-lien residential mortgage loans located in Ireland. The loans were originated by multiple lenders, with the main ones being Allied Irish Banks PLC, Ulster Bank PLC, and EBS DAC. The pool comprises 83.75% owner-occupied properties and 16.25% buy-to-let loans. The assets were previously securitized in the Shamrock Residential 2022-1 DAC transaction that closed in early 2022. All of the loans in pool for Kinbane 2024-RPL 2 were present in Shamrock Residential 2022-1. The servicers, Cabot Financial Ireland Ltd. and Mars Capital Finance Ireland DAC, are experienced servicers with well-established and fully integrated servicing systems and policies. The application of principal proceeds is fully sequential. Credit enhancement can therefore build up over time for the rated notes, enabling the capital structure to withstand performance shocks. The structure incorporates an arrears provisioning mechanism rather than being linked solely to the loans' loss status. S&P considers this more positive for the transaction, given that any excess spread is trapped as soon as the loan is in arrears rather than waiting until the recovery process is completed. S&P has considered this feature in its cash flow analysis. The interest rate cap hedges exposure to liquidity risks in a rising interest rate scenario. Within the securitized pool, 28.34% of the loans are currently at least one month in arrears, with 22.53% of these borrowers being more than three months in arrears. Additionally, over three-quarters of the borrowers (77%) have had their loans restructured in the past. S&P has accounted for this in its analysis. At closing, the issuer used the issuance proceeds to purchase the beneficial interest in the mortgage loans from the seller. The issuer grants security over all its assets in favor of the security trustee. The issuer is bankruptcy remote under S&P's legal criteria. There are no rating constraints in the transaction under S&P's structured finance operational, sovereign and counterparty risk criteria. Ratings Class Rating Class size (EUR) A AAA (sf) 326,920,000 B-Dfrd AA (sf) 20,290,000 C-Dfrd A- (sf) 8,540,000 D-Dfrd BBB (sf) 10,680,000 E-Dfrd BB (sf) 7,470,000 F-Dfrd B- (sf) 16,020,000 RFN NR 8,550,000 Z1 NR 8,550,000 Z2 NR 9,620,000 X NR 2,000,000 NR--Not rated. Dfrd--Deferrable. TIKEHAU CLO IX: S&P Assigns B- (sf) Rating to Class F-R Notes ------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Tikehau CLO IX DAC's class A-R to F-R European cash flow CLO notes. The issuer has unrated subordinated notes outstanding from the existing transaction. The transaction is a reset of the already existing transaction which closed in April 2023. The issuance proceeds of the refinancing notes were used to redeem the refinanced loan and notes (the original transaction's class A loan and class A, B, C, D, E, and F notes). The ratings on the original loan and notes have been withdrawn. Under the transaction documents, the rated notes pay quarterly interest unless a frequency switch event occurs. Following this, the notes will switch to semiannual payments. The transaction has a one-year non-call period and the portfolio's reinvestment period will end approximately 2.15 years after closing. The ratings reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,788.60 S&P Global Ratings' weighted-average rating factor with defaulted assets 2,833.34 Default rate dispersion 534.25 Weighted-average life (years) 4.34 Obligor diversity measure 149.05 Industry diversity measure 23.89 Regional diversity measure 1.17 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 2.77 Target 'AAA' weighted-average recovery (%) 36.44 Actual target weighted-average spread (net of floors; %) 4.07 Actual target weighted-average coupon (%) 4.98 S&P said, "The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, we have conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we used the EUR400 million target par amount, the covenanted weighted-average spread (4.07% ), the covenanted weighted-average coupon (4.98% ), and the covenanted weighted-average recovery rates at all rating levels. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Until the end of the reinvestment period on Jan. 20, 2027, the collateral manager may substitute assets in the portfolio for so long as our CDO Monitor test is maintained or improved in relation to the initial ratings on the loan and notes. This test looks at the total amount of losses that the transaction can sustain as established by the initial cash flows for each rating, and it compares that with the current portfolio's default potential plus par losses to date. As a result, until the end of the reinvestment period, the collateral manager may through trading deteriorate the transaction's current risk profile, if the initial ratings are maintained. "Under our structured finance sovereign risk criteria, we consider that the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "The transaction's legal structure and framework is bankruptcy remote, in line with our legal criteria. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe the assigned ratings are commensurate with the available credit enhancement for the class A-R, B-1-R, B-2-R, C-R, D-R, E-R, and F-R notes. "Our credit and cash flow analysis indicates that the available credit enhancement for the class B-1-R to E-R notes could withstand stresses commensurate with higher ratings than those we have assigned. However, as the CLO will be in its reinvestment phase starting from closing, during which the transaction's credit risk profile could deteriorate, we have capped our ratings assigned to the notes. "For the class F-R notes, our credit and cash flow analysis indicate that the available credit enhancement could withstand stresses commensurate with a lower rating. However, we have applied our 'CCC' rating criteria, resulting in a 'B- (sf)' rating on this class of notes." The ratings uplift for the class F-R notes reflects several key factors, including: -- The class F-R notes' available credit enhancement, which is in the same range as that of other CLOs we have rated and that have recently been issued in Europe. -- The portfolio's average credit quality, which is similar to other recent CLOs. -- Our model generated break-even default rate at the 'B-' rating level of 19.49% (for a portfolio with a weighted-average life of 4.34 years), versus if we were to consider a long-term sustainable default rate of 3.1% for 4.34 years, which would result in a target default rate of 13.45%. -- S&P does not believe that there is a one-in-two chance of this note defaulting. -- S&P does not envision this tranche defaulting in the next 12-18 months. S&P said, "Following this analysis, we consider that the available credit enhancement for the class F-R notes is commensurate with the assigned 'B- (sf)' rating. "In addition to our standard analysis, we have also included the sensitivity of the ratings on the class class A-R to E-R notes based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F-R notes." The transaction securitizes a portfolio of primarily senior secured leveraged loans and bonds and is managed by Tikehau Capital Europe Ltd. Environmental, social, and governance S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit assets from being related to certain activities, including but not limited to, the following: weapons of mass destruction, illegal drugs or narcotics, pornography or prostitution, tobacco, and civilian firearms. Accordingly, since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Ratings Amount Credit Class Rating* (mil. EUR) Interest rate§ enhancement (%) A-R AAA (sf) 244.00 3mE + 1.22% 39.00 B-1-R AA (sf) 37.00 3mE + 2.00% 27.00 B-2-R AA (sf) 11.00 5.00% 27.00 C-R A (sf) 24.00 3mE + 2.45% 21.00 D-R BBB- (sf) 28.00 3mE + 3.55% 14.00 E-R BB- (sf) 18.00 3mE + 6.06% 9.50 F-R B- (sf) 12.00 3mE + 8.34% 6.50 Sub NR 35.15 N/A N/A *The ratings assigned to the class A-R, B-1-R, and B-2-R notes address timely interest and ultimate principal payments. The ratings assigned to the class C-R, D-R, E-R, and F-R notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month Euro Interbank Offered Rate (EURIBOR) when a frequency switch event occurs. NR--Not rated. N/A--Not applicable. 3mE--Three-month Euro Interbank Offered Rate. ========= I T A L Y ========= AUTO ABS 2024-2: Fitch Assigns 'BB+sf' Final Rating to Cl. E Notes ------------------------------------------------------------------ Fitch Ratings has assigned Auto ABS Italian Stella Loans S.r.l. (Series 2024-2)'s notes final ratings, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Auto ABS Italian Stella Loans S.r.l. (Series 2024-2) Class A Notes IT0005619694 LT AAsf New Rating AA(EXP)sf Class B Notes IT0005619710 LT AAsf New Rating AA(EXP)sf Class C Notes IT0005619819 LT A+sf New Rating A+(EXP)sf Class D Notes IT0005619827 LT BBB+sf New Rating BBB+(EXP)sf Class E Notes IT0005619835 LT BB+sf New Rating BB+(EXP)sf Transaction Summary The transaction is a six-month revolving period securitisation of Italian balloon or amortising auto loans originated by Stellantis Financial Services Italia (SFS), a captive lender resulting from a joint venture between Stellantis N.V. (BBB+/Negative/F2) and Santander Consumer Bank S.p.A. (not rated). KEY RATING DRIVERS Low Expected Defaults: Fitch has observed historical default rates lower for SFS than for other captive auto loan lenders operating in Italy. The portfolio comprises loans advanced to private borrowers (94.8%) and commercial borrowers (5.2%). Fitch derived separate asset assumptions for the different products, reflecting different performance expectations and product features. Fitch assumed a weighted average (WA) base-case lifetime default and recovery rate of 1.9% and 47.7%, respectively, for the portfolio. Significant Balloon Risk: The portfolio consists partly of balloon loans (42% of the pool balance), while the remainder comprises amortising auto loans. Balloon loan borrowers may face a payment shock at maturity if they cannot refinance the balloon amount or return or sell their car. Fitch has considered this additional default risk by applying a higher default multiple for balloon loans. The WA default multiple of the portfolio is 5.1x at 'AAsf'. Strong Excess Spread Supports Mezzanines: Fitch expects the portfolio to generate approximately 5% excess spread per year, as the assets earn materially higher yields than the notes' interest and transaction's senior costs. Fitch tested several stresses on portfolio yield reduction and prepayments assumptions and concluded that repayment of the class C and D notes was heavily dependent on excess spread, currently capping the ratings at 'A+sf' and 'BBB+sf', respectively. The class E excess spread notes receive principal solely through the available excess spread in the revenue priority of payments. Fitch caps excess spread notes' ratings at 'BB+sf'. 'AAsf' Sovereign Cap: Italian structured finance transactions are capped at six notches above Italy's Issuer Default Rating (IDR, BBB/Positive/F2), which is the case for the class A and B notes. The Positive Outlook on these notes reflects that on the sovereign. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade At the applicable rating cap, the class A and B notes' ratings are sensitive to changes to Italy's Long-Term IDR and Outlook. A revision of the Outlook on Italy's IDR to Stable would trigger similar action on the notes. Unexpected increases in the frequency of defaults or decreases in recovery rates that could produce loss levels larger than the base case and could result in negative rating action on the notes. For example, a simultaneous increase in the default base case by 50% and decrease in the recovery base case by 50% would lead to up to two-notch downgrades of the class B to D notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of Italy's IDR and revision of the related rating cap for Italian structured finance transactions could trigger upgrades of the class A and B notes. An unexpected decrease in the frequency of defaults or an increase in the recovery rates could produce loss levels lower than the base case. For example, a simultaneous decrease in the default base case by 25% and an increase in the recovery base case by 25% would lead to upgrades of up to five notches for the class C to D notes, provided there are no qualitative arising elements that could limit the ratings. 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 Auto ABS Italian Stella Loans S.r.l. (Series 2024-2) Fitch reviewed the results of a third party assessment conducted on the asset portfolio information, and concluded that there were no findings that affected the rating analysis. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. =================== K A Z A K H S T A N =================== AK ALTYNALMAS: S&P Assigns 'B+' Long-Term ICR, Outlook Stable ------------------------------------------------------------- S&P Global Ratings assigned its 'B+' long-term issuer credit rating to Kazakhstan-Based Gold Miner AK Altynalmas JSC (Altynalmas). The stable outlook reflects S&P's expectation that the company will meet its production and cost targets, while maintaining funds from operations (FFO) to debt consistently above 45%. S&P said, "We assess Altynalmas' business risk profile as weak because of its moderate scale, limited organic growth opportunities, and Kazakhstan's high country risk. We expect Altynalmas will produce and sell up to 491 koz of gold in 2024, a 3% increase from 476 koz in 2023. This makes Altynalmas a midsize gold producer that is smaller than most rated peers. We note that the company's gold output varies annually due to the nature of its assets, which adds volatility to its performance. For example, we expect, in line with the company's guidance, that its output will decline by 15% in 2025 and recover by 15% in 2026. We expect this volatility will continue, making it difficult for Altynalmas to maintain its leverage metrics. Importantly, a trough in production could coincide with a decline in gold prices, resulting in a particularly weak performance in a given year. Even though the company's resources are sizeable at 21.6 million ounces (moz), its reserves are relatively modest at 4.2 moz. Reserve life is about eight years, which is lower than that of most rated peers. We also note that the company has limited growth prospects, with its production likely to decline toward 400 koz in 2028, or by 15%-20% over the next four years. We understand there are no major projects in the pipeline to stabilize production through organic growth, which constrains the rating." A further constraint to our business risk profile assessment is that the company's business is limited to Kazakhstan, a high-risk country. Altynalmas' cost profile is in the middle of the cost curve, which enables it to benefit from the current price environment. S&P said, "Under our midcycle price assumption of $1,800 per ounce (/oz), however, cash flows would decline sharply. Altynalmas' cost profile shows an expected total cash cost (TCC) of $1,150/oz and all-in sustaining costs (AISC) of $1,250/oz in 2024, which is just below the median for the industry. We expect the TCC will peak at about $1,300/oz and the AISC at about $1,500/oz in 2025, due to lower output and declining ore grades. After 2025 higher production levels and better ore grades should support a slightly better cost profile. We expect currently high gold prices will enable the company to generate EBITDA of Kazakhstani tenge (KZT) 245 billion (about $529 million) to KZT255 billion in 2024, with an average gold price of $2,300/oz generating solid EBITDA margins of 40%-45%. We expect gold prices to average $2,300/oz in 2025 and decline to $2,100/oz in 2026 under our base-case forecast. This will lead to a decline in Altynalmas' annual EBITDA to KZT180 billion-KZT190 billion in 2025-2026, since lower gold prices will be compensated by higher output in 2026. However, under our long-term price assumption of $1,800/oz, we expect the company's EBITDA to fall to KZT115 billion–KZT125 billion." This corresponds to an EBITDA decline of about 50% decline from the peak in 2024, which translates into significant volatility in the company's cash flows. Altynalmas also has a construction business, AAEG, which adds volatility to its profile. AAEG is mainly involved in design, construction, and maintenance services for the mining industry. S&P said, "We expect AAEG will generate EBITDA of KZT5 billion-KZT10 billion annually over 2024-2025, with EBITDA margins of 5%-10%. Because AAEG's margins are materially lower than those of the gold mining business, it dilutes Altynalmas' consolidated margins by about 5%. The construction business also generates material working capital swings, which led us to include in our liquidity calculation an additional capital swing of KZT15 billion to ensure the company has sufficient headroom to withstand the volatility resulting from incorporating this business line." Similar to most rated gold miners, Altynalmas will deliver strong credit metrics in 2024 and 2025, but its longer-term leverage depends on financial policy decisions. S&P said, "We expect the company's FFO to debt will exceed 100% this year and debt to EBITDA will be below 1x (we do not deduct the company's cash from debt). However, we do not expect these metrics to be maintained at midcycle prices. Rather, we expect that FFO to debt will decline to 55%-65% and debt to EBITDA will increase to 1.3x-1.7x in 2027, when we expect gold prices to decline to our midcycle assumption of $1,800/oz. In the absence of a clear cash-usage strategy, we assume the company will distribute all of its free cash flow as dividends. The company will also need to engage in expansion and maintenance projects to prevent an even sharper decline in production. We therefore expect capital expenditure (capex) could be increase materially in the coming years. We note that the company has a history of debt-funded acquisitions and rapid expansions, although we do not expect any of these in our current base case. Considering that the company's current financial policy is to maintain net debt to EBITDA below 2x, there is room for a leverage increase. We will therefore observe the company's financial decisions regarding investments, distributions, and debt." S&P said, "The company's management of its capital structure and liquidity is weaker than that of peers, in our view. Being based in Kazakhstan, the company has historically relied on bank financing, specifically from Russian banks. After this financing source dried up due to U.S. and EU sanctions on Russia's banking system, Altynalmas switched to Kazakhstani banks, which decreased the diversification of its lending base. Additionally, the company had to agree to very strict financial and operational covenants, which Russian and Kazakhstani banks regularly impose on small to midsize companies. Altynalmas breached production covenants on a few occasions, which exposed it to potential default, even though we realize that banks rarely trigger such clauses. Altynalmas still has an AISC covenant with its largest lender Halyk Bank, which could expose it to similar risks. Moreover, we consider the company's liquidity management to be worse than that of similarly rated peers; its revolving credit facility (RCF) only allows nine-month tranches. "We believe the 'B+' rating places Altynalmas well against peers, such as Eldorado Gold Corp. (B+/Stable/--). Like Altynalmas, Eldorado delivered about 485 koz of gold in 2023. It also has a similar cost profile, with a TCC of $743/oz and AISC of $1,220/oz in 2023. At the same time, we expect Eldorado will increase its production to 630 koz in 2026, compared with an expected decline in production at Altynalmas. We expect both companies will deliver FFO to debt exceeding 60% and debt to EBITDA lower than 1.5x in 2025. We rate Endeavour Mining PLC (BB-/Negative/--) one notch above Altynalmas. It is larger than Altynalmas, with 1.1 moz of production and an AISC of $967/oz in 2023. However, Endeavour is exposed to Burkina Faso and very high-risk countries in West Africa, and our negative outlook reflects the political unrest in Burkina Faso and need for Endeavour to reduce its exposure to this country. Still, the company's leverage is very low, with expected FFO to debt of close to 100% over the coming years. New Gold Inc. (B/Stable/--), a Canada-based gold and copper producer, is slightly smaller than Altynalmas, with 424, koz of gold equivalent production and slightly higher AISC of $1,545/oz in 2023. It also had higher leverage, with FFO to debt of 38% in 2023. At the same time, we view as positive New Gold's exposure to Canada, a very-low-risk country, and its significantly better access to capital markets. "The stable outlook reflects our expectation that Altynalmas will meet its production and cost targets over 2024-2025, with FFO to debt consistently exceeding 45%. We expect the company can maintain FFO to debt of at least 45% under our long-term gold price assumption of $1,800/oz, irrespective of volatility in its output over the next few years. We also expect the company can maintain a consistent financial policy without excessively large acquisitions and unexpected dividend payments that could increase leverage materially." Downside scenario S&P could downgrade Altynalmas if the company suffered a major operational setback leading to a decline in is operational cash flows and an increase in leverage, with FFO to debt consistently below 45% under current market conditions. FFO to debt of 30%-45% is unlikely to trigger a downgrade if gold prices were to decline materially. A material liquidity shortage, aggressive acquisitions, and dividend payments resulting in a material leverage increase could also lead to a downgrade. Upside scenario S&P could raise the rating to 'BB-' if the company strengthened its reserves and stability of production, with better visibility of how output and related costs might evolve. S&P would also expect more diversified funding sources and a much stronger liquidity profile. A track record of a consistent and sufficiently conservative financial policy would be key for a higher rating. =================== L U X E M B O U R G =================== BANQUE HAVILLAND: Administrators Provide Update on Debt Payments ---------------------------------------------------------------- By commercial judgment no. 2024TALCH02/01516 (docket numberTAL-2024-06491) of October 31, 2024, the District Court in and of Luxembourg-City, second chamber, sitting in commercial matters, ruling contradictory and in a public hearing, after having heard in council chamber the public limited company BANQUE HAVILAND S.A., the administrators and the representatives of the COMMISSION DE SURVEILLANCE DU SECTEUR FINANCIER in their conclusions has supplemented judgment no. 2024TALVCOM/00116 of August 9, 2024 as follows: -- declares that acts of pure daily management over amounts of less than EUR10,000 -- are not subject to the administrators' approval, it being clarified that the reimbursement of a deposit is not an act of daily management; -- declares that the payment for periodic services provided by the following providers and co-contractors is not subject to the administrators' approval: Contractual benefits to employees and benefits related to the payment of salaries -- (ALD Automotive) -- Alphabet : -- KBC Lease Luxembourg -- Securex IT systems and their maintenance -- FNZ Switzerland -- Bloomberg Finance LP -- Excellium Services -- Wolters Kluwer Financial ServiLuxembourg -- Anidris -- SIX Financial Information Luxembourg -- Swift -- LexisNexis Business Inf Solu -- Inetum Luxembourg (former Gfi PSF) -- Coin Availability Services Luxembourg -- Refinitiv Limited -- Six Financial Information Suisse -- Refinitiv SA Luxembourg Branch -- Proximus Luxembourg -- Telindus EastNets Europe -- Orange Business Luxembourg Office rent and maintenance costs -- Kaytwo/Inowai -- Deep Post Telecom -- iCleanlux -- Leo -- G4S Security Solutions -- declares that it is the responsibility of the public limited company BANQUE HAVILLAND SA to ensure that only periodic operating costs, excluding all costs of an exceptional or non periodic nature, due to these service providers are paid on the basis of this authorisation; and -- declares that, with the approval of the administrators, the public limited company BANQUE HAVILLAND SA is authorised to pay its debts and commitments having arisen prior to August 2, 2024, to the extent that such payments are essential for the continuity of the public limited company BANQUE HAVILLAND SA and its operations. ===================== N E T H E R L A N D S ===================== ABERTIS INFRAESTRUCTURAS: Fitch Rates Hybrid Notes Final 'BB+' --------------------------------------------------------------- Fitch Ratings has assigned Abertis Infraestructuras Finance B.V.'s (Abertis Finance) EUR750 million hybrid securities a final 'BB+' rating with Stable Outlook. The securities qualify for a 50% equity credit. The new hybrid notes are guaranteed by Abertis Infraestructuras SA (Abertis) and their proceeds are used for partial repayment of its outstanding hybrid notes. RATING RATIONALE The notes are deeply subordinated and coupon payments can be deferred at the option of the issuer. These features are reflected in the 'BB+' rating, which is two notches lower than Abertis's senior unsecured rating. The 50% equity credit reflects their cumulative interest coupon, a feature that is more debt-like in nature. The new notes rank equally with Abertis's 'BB+' rated outstanding EUR2.0 billion hybrids issued during November 2020 and January 2021. The final rating is are the same as the expected rating because the transaction's terms are in line with the draft documentation. For further information on Abertis's rating, see 'Fitch Affirms Abertis's IDR at 'BBB'; Stable Outlook', dated 5 July 2024. KEY RATING DRIVERS Ratings Reflect Deep Subordination: The notes are rated two notches below Abertis's senior unsecured rating of 'BBB', given their deep subordination relative to senior obligations. The notes only rank senior to the claims of equity shareholders. Fitch believes Abertis intends to maintain a consistent amount of EUR2 billion hybrids in the capital structure, and therefore apply 50% equity credit to the full amount of hybrid securities. Equity Treatment: The new securities qualify for 50% equity credit as they are deeply subordinated, have a remaining effective maturity of at least five years, and full discretion to defer coupons for at least five years and limited events of default. These are key equity-like characteristics, affording Abertis greater financial flexibility. The interest coupon deferrals are cumulative, a feature more debt-like in nature, resulting in 50% equity treatment and 50% debt treatment of the hybrid notes by Fitch. Despite the 50% equity treatment, Fitch treats coupon payments as 100% interest. Mandatory Interest Payment Possible: Abertis is obliged to make a mandatory settlement of deferred interest payments under certain circumstances, including the declaration of a cash dividend. Under the existing shareholders' agreement, the dividend policy is flexible and may be adjusted to maintain an investment-grade rating threshold. However, Fitch notes that perceived deterioration in the shareholders' agreement, leading to decreasing flexibility in the dividend policy, could negatively affect the equity credit of the hybrid notes. Effective Maturity Date: While the proposed hybrid is perpetual, Fitch deems its effective remaining maturity as the date from which the issuer will no longer be subject to replacement language (second step-up date), which discloses the company's intent to redeem the instrument at its reset date with the proceeds of a similar instrument or with equity. This is applicable even if the coupon step-up is within Fitch's aggregate threshold of 100bp. The equity credit of 50% will change to 0% five years before the effective maturity date. The issuer has the option to redeem the notes in the three months immediately preceding and including the first reset date, which is 5.25 years from the issue date, and on any coupon payment date thereafter. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Fitch-adjusted leverage above 6.2x by 2025 under the Fitch Rating Case Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Positive rating action is currently unlikely given Abertis's acquisitive strategy TRANSACTION SUMMARY Abertis is a large Spain-based infrastructure group with network under management predominantly located in Spain, France, Brazil, Chile, US and Mexico. Date of Relevant Committee 04-Jul-2024 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 ----------- ------ ----- Abertis Infraestructuras Finance B.V. Abertis Infraestructuras, S.A./Toll Revenues - Second Lien – Expected Ratings/1 LT LT BB+ New Rating BB+(EXP) =========== R U S S I A =========== UZEX JSC: Fitch Affirms 'B' Long-Term IDRs, Outlook Stable ---------------------------------------------------------- Fitch Ratings has affirmed JSC UZEX's (or Uzbek Commodity Exchange) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'B'. The Outlooks are Stable. Key Rating Drivers Rating Constrained by TrustBank Exposure: UZEX's ratings are constrained by its high reliance on Private Joint Stock Bank TrustBank (B/Stable), where UZEX places the bulk of its liquid assets. As a result, Fitch believes that a default of TrustBank would trigger a failure and likely a default of UZEX. UZEX has begun diversifying its bank placements in 2023 with an agreement with JSC Octobank, a domestic private bank. UZEX's ratings also consider the absence of corporate debt, its healthy profitability and established franchise in the small sector of commodity trade intermediation and market infrastructure in Uzbekistan. High Counterparty and Concentration Risk: Until recently, UZEX utilised a single counterparty for liquidity management purposes, resulting in very high concentration in TrustBank (73% of total assets at end-2023). Plans to improve diversification should reduce credit concentration risk in the long term. Fitch also views TrustBank, which has an overall 37% stake in UZEX, as a related party. Positively, within its clearing activities, UZEX is not directly exposed to counterparty risk as it acts as an agent only. In case of non-delivery by one of the counterparties, the transaction is cancelled with no recourse to UZEX. Credible Niche Franchise: UZEX is Uzbekistan's main commodity exchange, with an estimated market share of around 90% at end-1H24 and virtually no local competition. Commodities, including cotton and metals, are a relevant part of the local economy, but UZEX's franchise is small and concentrated compared with that of more diversified domestic financial institutions, notably banks. UZEX offers trading, clearing and settlement in a wide range of commodities but five groups of commodities (cement, sugar, cotton, metals, and oil and gas) account for about 70% of total revenue. Adequate Recurring Profitability and Liquidity: Commodity exchange trading fees and exchange clearing fees (84% at end-2023) are UZEX's main sources of revenue. UZEX also services the state tender process, which is mandatory for government bodies and state-owned enterprises. This segment contributed 9% to total revenue in 2023. Profitability (both EBITDA margins and pre-tax income) has historically been low and volatile but has improved and stabilised since 2018, resulting in an EBITDA margin of 73% in 2023, which Fitch views as solid. UZEX's liquidity profile is supported by its short-dated balance sheet, which is largely driven by clearing-related margin deposits. Customers' collateral deposits are normally very short-term and at end-1H24 were 105% covered by UZEX's liquid and back-to-back assets. Basic Risk Management Practices: Fitch views UZEX's risk management practices as acceptable for its business model. Counterparty risk management is rudimentary, with a flat margin requirement at 10%, which do not take into account the varying credit quality of counterparties or differing volatility inherent in various commodities. However, despite the volatile operating environment, UZEX's risk controls provide reasonable protection against operational and indirect market risk, as underlined in a record of limited clearing-related losses (no more than 2% of pre-tax income in 2020-2023). No Corporate Debt: UZEX does not have any outstanding corporate debt and Fitch understands from management that the company does not have any plans to raise corporate debt in the medium term. UZEX distributed 87% of net profit in 2024 and plans to maintain distribution at around 80% in the medium term, with a minimum distribution of 50%. Support Cannot be Relied On: As UZEX is the leading commodity exchange in Uzbekistan, support from the government cannot be ruled out. However, UZEX's ratings do not rely on this support because of its limited importance to the Uzbek financial system or to social policy. Fitch also views UZEX as too large to be supported by TrustBank. UZEX's end-1H24 assets amounted to 2.0x the bank's total capital. With TrustBank controlling only a minority stake in UZEX, its assessment of propensity to support is limited. ESG Governance Structure: UZEX's high reliance on TrustBank (direct and indirect 37% stake), where UZEX keeps majority of its cash/liquid assets negatively affects its ESG Relevance Score for Governance Structure. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A downgrade of TrustBank would result in increased counterparty risk for UZEX and trigger a downgrade of its Long-Term IDR. An abrupt deterioration in UZEX's performance, with sizeable losses threatening the company's solvency, would also result in negative rating action. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of TrustBank would result in lower counterparty risk for UZEX and likely result in an upgrade of its Long-Term IDR. Over the long term, a large decrease in the reliance on TrustBank, through a diversification of liquidity placements to higher-rated bank counterparties, would likely result in positive rating action. Greater control by the state (reflected for example in a higher ownership stake), coupled with higher systemic importance of UZEX, would result in a positive reassessment of support. ESG Considerations UZEX has an ESG Relevance Score of '5' for Governance Structure. This reflects risks arising from a high reliance on related party, Trustbank. UZEX keeps all of its cash/liquid assets in Trustbank. A default of Trustbank would, in its view, trigger a failure of UZEX. UZEX is in the process of diversifying to other banks but this is currently constraining UZEX's ratings and highly relevant to the ratings in conjunction with other factors. UZEX has an ESG Relevance Score of '4' for Financial Transparency due to limitations in quality and timeliness of financial disclosures and auditing processes, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This 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 of the materiality and relevance of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- JSC UZEX LT IDR B Affirmed B ST IDR B Affirmed B LC LT IDR B Affirmed B LC ST IDR B Affirmed B Government Support ns Affirmed ns Shareholder Support ns Affirmed ns =========== S W E D E N =========== HEIMSTADEN BOSTAD: S&P Rates New Subordinated Hybrid Notes 'BB' --------------------------------------------------------------- S&P Global Ratings assigned its 'BB' issue rating to the proposed unsecured subordinated hybrid notes to be issued by Sweden-based residential property manager, Heimstaden Bostad AB (HSTB; BBB-/Negative/--). S&P said, "We understand that the issuances of hybrid bonds would be approximately benchmark size (about EUR500 million) fixed to the reset rate, with the first reset date in 5.25 years. The completion and size of the transaction will be subject to market conditions. HSTB plans to use the proceeds to repay the full balance of about EUR589 million of the EUR800 million hybrid notes issued in 2019, which has a first reset date in February 2025. "Our 'BB' rating on the proposed notes is two notches lower than our issuer credit rating on HSTB. The rating difference reflects our notching methodology, which calls for the deduction of one notch for subordination, because our long-term rating on HSTB is investment grade (higher than 'BB+'); and an additional notch is deducted for payment flexibility, because the option to defer interest stands with the issuer. "We assess the proposed notes as having intermediate equity content until their first reset date. This is because the notes are subordinated to the company's senior debt obligations, cannot be called for at least five years, and are not subject to features that could discourage or materially delay deferral. Overall, we think the proposed notes' terms and conditions are similar to those of the outstanding notes. In addition, to reflect our view of the intermediate equity content of the proposed notes, we treat 50% of the related payments as interest and 50% as equivalent to a common dividend. The 50% treatment of principal also applies to our adjustment of debt. We no longer regard the outstanding EUR589 million hybrid notes as having equity content, in view of the company's intention to redeem them." The transaction includes a cash tender component that could reduce the overall amount of outstanding hybrids by about net EUR89 million, representing about 3%-4% of HSTB's total hybrid instruments. The cash component would result in a slight decrease of the hybrid portfolio to about EUR2.3 billion from EUR2.4 billion as of Sept. 30, 2024. S&P said, "We view this cash component as immaterial, since it represents only 3%-4% of the total outstanding hybrids. This is in line with our criteria, where we typically consider redemptions of up to a maximum of 10% of hybrid instruments over a 12-month period as immaterial. We understand that the company is committed to keeping the subordinated perpetual notes as a permanent part of its capital structure and expect its capitalization rate to remain below our 15% threshold; the capitalization rate was 7.2% as of Sept. 30, 2024." The transaction will not materially affect the company's credit metrics and by itself is unlikely to lead to an outlook revision. =========================== U N I T E D K I N G D O M =========================== CAMSTEAD LIMITED: Interpath Advisory Named as Joint Administrators ------------------------------------------------------------------ Camstead Limited was placed into administration proceedings in the High Court Of Justice Business and Property Courts in Leeds Insolvency and Companies List (ChD), Court Number: CR-2024-LDS-001113, and James Richard Clark and Howard Smith of Interpath Advisory, Interpath Ltd were appointed as joint administrators on Nov. 19, 2024. Camstead Limited specializes in buying and selling of its own real estate. Its registered office is at Interpath Ltd, 4th Floor, Tailors Corner, Thirsk Row, Leeds, LS1 4DP. Its principal trading address is 3 The Gateway North, Marsh Lane, Leeds, LS9 8AX. The joint administrators can be reached at: James Richard Clark Howard Smith Interpath Advisory, Interpath Ltd 4th Floor, Tailors Corner Thirsk Row, Leeds LS1 4DP For further details, contact: Becca Sargeant Email: CamsteadCreditors@interpath.com HACHE BURGER: Interpath Named as Joint Administrators ----------------------------------------------------- Hache Burger Connoisseurs Ltd was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Birmingham, Insolvency and Companies List (ChD), Court Number: CR-2024-006774, and Stephen John Absolom of Interpath Ltd, and Christopher Robert Pole of Interpath Advisory, were appointed as joint administrators on Nov. 19, 2024. Hache Burger Connoisseurs operates licensed restaurants. Its registered office is at C/o Interpath Ltd, 10 Fleet Place, London, EC4M 7RB. Its principal trading address is at 95-97 High Holburn, London, WC1V 6LF. The joint administrators can be reached at: Stephen John Absolom Interpath Ltd 10 Fleet Place, London EC4M 7RB -- and -- Christopher Robert Pole Interpath Advisory Interpath Ltd 2nd Floor, 45 Church Street Birmingham, B3 2HB Further Details Contact: Alex Ashley Email: Hacheburgersuppliers@interpath.com Tel No: 0203 989 2800 HOLBROOK MORTGAGE 2023-1: S&P Affirms B-(sf) Rating on Cl. F Notes ------------------------------------------------------------------ S&P Global Ratings raised its credit ratings on Holbrook Mortgage Transaction 2023-1 PLC's class B-Dfrd notes to 'AA+ (sf)' from 'AA (sf)', C-Dfrd notes to 'AA- (sf)' from 'A (sf)', D-Dfrd notes to 'A- (sf)' from 'BBB (sf)', and E-Dfrd notes to 'BBB- (sf)' from 'BB (sf)'. At the same time, S&P affirmed its 'AAA (sf)' and 'B- (sf)' ratings on the class A and F-Dfrd notes, respectively. The rating actions follow S&P's full analysis of the most recent transaction information we have received and the transaction's structural features. S&P said, "As of October 2024, arrears greater than 30 days past due remain relatively low at 4.42%, below our non-conforming index. The sequential priority of payments and the notes' swift amortization has increased the level of available credit enhancement. The pool factor is 57.7% as of October 2024. The liquidity reserve fund and the general reserve fund are undrawn. "We applied our global RMBS criteria to our analysis of this transaction. Since closing, our weighted-average foreclosure frequency assumptions decreased at all rating levels. This is mainly due to the lower effective loan-to-value (LTV) ratio we used for our foreclosure frequency analysis--which reflects 80% of the original LTV ratio and 20% of the current LTV ratio. "Our weighted-average loss severity assumptions decreased at all rating levels, reflecting the updated house price index assumptions used in our analysis." Credit analysis results WAFF (%) WALS (%) Credit coverage (%) AAA 24.49 41.40 10.14 AA 16.78 34.79 5.84 A 12.88 24.20 3.12 BBB 8.94 18.07 1.61 BB 4.98 13.80 0.69 B 3.99 10.07 0.40 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity S&P said, "The overall effect of our credit analysis results is a decrease in the required credit coverage for all rating levels since closing, reflected in our upgrades of the class B-Dfrd, C-Dfrd, D-Dfrd, and E-Dfrd notes. "The affirmation of our rating on the class A notes reflects our cash flow results, which are unchanged based on the slightly higher credit enhancement and lower credit results. "We affirmed our 'B- (sf)' rating on the class F-Dfrd notes as they do not benefit from increasing credit enhancement." The rating reflects the high prepayment cashflow runs. The transaction is backed by a mortgage pool of first-ranking owner-occupied residential mortgages originated by The Mortgage Lender Ltd. in England, Wales, and Scotland. OAT TOPCO: S&P Assigns 'B' Rating, Stable Outlook ------------------------------------------------- S&P Global Ratings assigned its 'B' rating to Oat Topco Ltd. (OCU), its financing subsidiary Oat Bidco Ltd., the term loan B (TLB) of EUR530 million and GBP200 million, and the fungible delayed draw facility of GBP75 million. The '3' recovery rating on the debt reflects its expectation of meaningful recovery (50-70%; rounded estimate: 55%) in the event of a payment default. S&P said, "The stable outlook reflects our view that OCU will demonstrate healthy organic revenue growth in the next 12-24 months, thanks to its strong orderbook and project pipeline. This reflects our view that OCU will continue to capitalize on favorable secular megatrends and rising committed multiyear spending in regulated markets. Coupled with the earnings contribution of recently acquired RJ McLeod and good cost discipline, OCU will improve its adjusted EBITDA margin toward 13% or above, supporting gradual deleveraging toward debt to EBITDA of 6x or below and positive free operating cash flow (FOCF) generation from fiscal 2026. "The final ratings assigned are in line with the preliminary ratings that we assigned on Oct. 15, 2024. There were no material changes to the transaction or financial documentation compared with our original assessment." OCU is a U.K.-based leading utility infrastructure services provider and energy transition enabler. It provides end-to-end service offerings across the entire value chain in multiple regulated and critical end-markets including energy transition, telecoms, power, and water. The group benefits from multiyear framework agreements and long-tenured customer relationships under strong sector and regulatory tailwinds. However, OCU's business position is somewhat constrained by its geographical footprint, scale, customer concentration, and its operations within a fragmented and competitive market. OCU has refinanced its existing capital structure. The group sought to refinance its existing debt of GBP551 million with a new TLB of EUR530 million and GBP200 million. This accompanies the issuance of a new senior secured RCF of GBP150 million, a new guarantee facility of GBP80 million, and a fungible delayed draw facility of GBP75 million, all of which remain undrawn at the close of transaction. OCU intends to use the net proceeds to also repay a deferred consideration (GBP69 million) due on recent acquisitions, an acquisition in the pipeline (GBP24 million), and other liabilities (GBP18 million). S&P said, "We note preference shares are also present in the capital structure, which sit at an entity above Oat Topco Ltd. We treat these as equity and exclude them from our leverage and coverage calculations because we see an alignment of interest between noncommon and common equity holders." Under strong sector and regulatory tailwinds, OCU's broad core service offerings and regional delivery model support its national leading market position. OCU provides end-to-end service offerings in multiple regulated and critical end-markets including energy transition, telecoms, power, and water. It is currently established as a one-stop-shop utility infrastructure services provider and serves the entire value chain, including design, planning, technical and civil work, connection, and commissioning, as well as maintenance. These services are provided to customers via a regional delivery model spanning the national footprint in the U.K. and Ireland. OCU is located close to a regional operations team with local demand, which underpins its flexibility and timeliness of providing bespoke services in response to customer needs. S&P said, "Relative to peers with few service offerings and specialization in limited end-markets under a centralized business model, we view positively OCU's diverse service offerings and decentralized, regional coverage in multiple end markets and believe these will offer OCU an edge over competitors. Coupled with the emerging structural tailwinds like decarbonization and committed government spending trends through successive regulatory cycles, we expect these will help develop the orderbook and project pipeline, supporting the competitive position of the business." Flexible cost structure and technology-enabled business processes enhance OCU's operating efficiency. OCU is structurally well-positioned to scale with an efficient operation, exhibited through its flexible cost base, subcontractor usage, and digitalized business model. Within OCU's cost structure, the company has a high share of variable or semi-variable costs (over 80%), including labor, materials, plant, and equipment hire costs, among others. Although labor costs account for the largest cost base of the business, OCU utilizes a subcontracting arrangement extensively, with employees only representing about 40% of the total 4,500-strong workforce. In addition, OCU has progressed well with its digital transformation journey. S&P said, "We note there have been significant digital investments in recent years, including the implementation of an enterprise resource planning system, workforce management tools, customer risk management software, and the roll-out of shared services. In our view, the flexible cost structure, subcontracting model, and technology-enabled processes will allow OCU to exercise greater control over its cost base and demonstrate agility in coping with seasonality trends and fluctuations in demand." OCU's business risk profile is constrained by its geographical footprint, scale, and customer concentration. Following the acquisition of RJ McLeod, OCU has pro forma annual revenue of over GBP800 million, of which 100% is generated in the U.K. and Ireland. It operates with a regional service delivery model through 52 sites and is supported by a workforce of more than 4,500 including employees and subcontractors. The group has a high customer concentration, with its top 10 customers accounting for over 50% of total revenues. S&P said, "We view OCU's scale and diversification as largely in line with other rated small-to-midsize, national-focused multiutility service providers. Although improving to a certain extent, we believe OCU currently lacks relative scale and its high customer concentration and limited geographical diversification put it in a weaker position than sizable, international rated peers with diversified customer bases, to which we assign a stronger business risk profile." OCU operates in a fragmented and competitive market with modest barriers to entry. The multiutility marketplace comprises many players, ranging from established, national one-stop shop service providers like OCU, to boutique, regional-focused specialists. Once an attractive project is identified and secured by competitors or opportunistic entrants due to more favorable commercial terms, incumbents would need to pursue other contract opportunities to build a consistently strong orderbook and project pipeline. Without differentiated, high quality service offerings and a strong reputation, this fragmented landscape is likely to raise the degree of competition and reduce project opportunities for any undifferentiated market participants. That said, S&P acknowledges that OCU's long-tenured customer relationships, high contract renewal rate, specialized tangible asset base, agile workforce, and early positioning in promising end-markets would create barriers to entry and help protect its market position in a fragmented and competitive market. S&P said, "We expect OCU will continue to actively pursue value-adding opportunities in a fragmented but consolidating sector. Since Triton took ownership in 2022, OCU has completed 12 acquisitions, of which RJ McLeod was the most transformational. Historical acquisitions provided OCU with the strategic opportunities to widen its footprint, expand capability, and add capacity to its established and scalable platform. In the coming 12-18 months, OCU will continue to execute its inorganic growth strategy in a disciplined manner. In our view, any future acquisitions are likely to be debt-funded through the use of a delayed draw facility of GBP75 million. To complement its strategic portfolio, we anticipate OCU will focus on high-growth, dynamic end markets in untapped regions, in order to fine-tune its regional presents and end-to-end service capabilities within the U.K. and Ireland. "OCU's financial risk profile reflects our expectation that the company's adjusted leverage and funds from operations (FFO) to debt will be characterized by high leverage in the next 12-18 months. From fiscal year 2025 (ending April 30, 2025), we expect OCU's portfolio of multiyear framework agreements and short-to-medium term project-based contracts will help build the orderbook and project pipeline, reinforcing organic growth prospects over the medium term. In our base case, we include acquisition spending of about GBP37.5 million each both fiscal 2025 and 2026, adding annualized revenue and EBITDA of about GBP90 million and about GBP15 million in total. Coupled with the earnings contribution of RJ McLeod and good cost discipline, we forecast OCU will improve its adjusted EBITDA margin toward 13% or above, supporting gradual deleveraging toward debt to EBITDA of 6x or below and positive FOCF generation from fiscal 2026. "The stable outlook reflects our view that OCU will demonstrate healthy organic revenue growth in the next 12-24 months, thanks to its strong orderbook and project pipeline. This reflects our view that OCU will continue to capitalize on favorable secular megatrends and growing committed multiyear spend in regulated markets. Coupled with the earnings contribution of RJ McLeod and good cost discipline, we expect OCU will improve its adjusted EBITDA margin toward 13% or above, supporting gradual deleveraging toward 6x or below and positive FOCF generation from fiscal 2026." Downside scenario S&P could lower the rating if: -- The company underperformed our forecasts, resulting in sustained negative FOCF absent material earnings growth; -- FFO cash interest coverage remained persistently below 2x; or -- The company adopted a more aggressive financial policy, with debt-funded acquisitions or shareholder friendly returns that push adjusted debt to EBITDA above 7x. Upside scenario S&P could consider taking a positive rating action if OCU outperformed our forecasts such that adjusted debt to EBITDA fell below 5x and FFO to debt increased above 12% on a sustained basis. An upgrade would also require a commitment from shareholders to demonstrate and sustain a prudent financial policy that supports maintenance of these credit metrics. SCOTFIELD GROUP: Interpath Advisory Named as Administrators ----------------------------------------------------------- Scotfield Group Limited was placed into administration proceedings in the High Court Of Justice Business and Property Courts in Leeds Insolvency and Companies List (ChD), Court Number: CR-2024-LDS-001112, and James Richard Clark and Howard Smith of Interpath Advisory, Interpath Ltd, were appointed as joint administrators on Nov. 19, 2024. Scotfield Group specializes in the buying and selling of its own real estate. Its registered office is at Interpath Ltd, 4th Floor, Tailors Corner, Thirsk Row, Leeds, LS1 4DP. Its principal trading address is at 3 The Gateway North, Marsh Lane, Leeds, LS9 8AX. The joint administrators can be reached at: James Richard Clark Howard Smith Interpath Advisory Interpath Ltd 4th Floor, Tailors Corner Thirsk Row, Leeds LS1 4DP Further Details Contact: Becca Sargeant Email: ScotfieldCreditors@interpath.com UNIQUE PUB: S&P Raises Class N Notes Rating to 'BB+ (sf)' --------------------------------------------------------- S&P Global Ratings raised to 'BB+ (sf)' from 'BB- (sf)' and removed from CreditWatch positive its credit rating on Unique Pub Finance Co. PLC (The)'s class N notes. Transaction Structure Unique Pub Finance is a corporate securitization of the U.K. operating business of the leased and tenanted (L&T) pub estate operator Unique Pub Properties Ltd. (UPP or the borrower). It originally closed in June 1999 and was last tapped in February 2005. The transaction initially featured three classes of notes (A, M, and N), the proceeds of which have been on-lent by Unique Pub Finance to UPP via issuer-borrower loans. The operating cash flows generated by UPP are available to repay its borrowings from the issuer, which, in turn, uses those proceeds to service the notes, alongside any amounts available under the liquidity facility and cash reserve. S&P said, "Since our previous review in August 2024, when we placed our rating on the class N notes on CreditWatch positive, the class A4 notes have been fully repaid on the September 2024 interest payment date. The issuer repaid the class A4 notes using the proceeds of a subordinate loan to the borrower (UPP), having received these funds from Stonegate Pub Company, the parent company of UPP. This subordinate loan ranks junior to the rated note obligations of the issuer. As a result of this repayment, the structure has deleveraged significantly. Following this repayment, the class N notes are now the only outstanding notes in the transaction. The class N notes will only start to amortize from September 2027, in line with the existing predefined schedule. Currently, the issuer does not intend to prepay the class N notes ahead of their scheduled amortization starting in September 2027. "Considering our macroeconomic outlook and UPP's asset sale strategy, we have revised our operating cash flow forecasts downward slightly through to financial year (FY) 2026. The cash flow available for debt service benefits from lower capital expenditure (capex) forecasts, which are revised downward from our previous forecasts due to the revised strategy for UPP to convert many fewer of the leased and tenanted pubs into managed pubs, as well as the gradual reduction in the size of the estate subject to the disposal covenants. "Following the repayment of the class A4 notes, the restricted payment conditions (RPC) continue to be applicable and the issuer will be able to upstream cash to the borrower (and ultimately to the parent), provided the RPC conditions are met (the cash reserve at its required level and the DSCR is at least 1.5x). "Based on our discussion with UPP, there is no obligation to top up the fully drawn cash reserve to the previous target level following the full repayment of the class A4 notes. The cash reserve remains fully depleted and its account balance after the September 2024 payment date is zero. This would have been topped up from excess cash if class A4 notes remained outstanding. "Given the current senior position of the class N notes, they now feature weaker covenants compared with the senior notes in other transactions rated at the 'BBB' or 'BB' levels. This now results in a negative two-notch adjustment under our modifier analysis. "We also apply a one-notch negative adjustment, primarily because of the weaker liquidity position. "As a result of the lower debt-service requirements for the issuer and reduced leverage, the DSCR for the class N notes has improved. Therefore, we have raised to 'BB+ (sf)' from 'BB-(sf)' and removed from CreditWatch positive our rating on Unique Pub Finance's class N notes following redemption of the class A4 notes. We removed our CreditWatch placement based on our revised cash flow projections. "In our opinion, the transaction would qualify for the appointment of an administrative receiver under the U.K. insolvency regime. An obligor default would allow the noteholders to gain substantial control over the charged assets prior to an administrator's appointment without necessarily accelerating the secured debt, both at the issuer and borrower levels." Rating Rationale S&P said, "Our rating addresses the ultimate payment of interest and principal on the deferrable class N notes. It is based primarily on our ongoing assessment of the borrowing group's underlying business risk profile (BRP), the integrity of the transaction's legal and tax structure, and the robustness of the operating cash flows supported by structural enhancements. "As part of our analysis, we assess whether the operating cash flows generated by the borrower are sufficient to make the payments required under the notes' loan agreements by using a DSCR analysis under a base-case and a downside scenario. Our view of the borrowing group's potential to generate cash flows is informed by our base-case operating cash flow projection and our assessment of its BRP, which we derive using our corporate methodology." Business risk profile S&P said, "We continue to assess the borrower's BRP as fair, supported by the sizable scale of the group's operations as part of the consolidated Stonegate Pub Company, the largest pub operator in the U.K., its higher-than-average profitability, and the earnings stability provided by the L&T model. We believe that the group is in a good position to continue to benefit from resilient demand in the industry, despite the macroeconomic challenges, and would be able to absorb any potential shocks thanks to its position in the market and its stable earnings base." Recent performance and events Since the end of FY2023, UPP has disposed of 28 pubs, ending the twelve-month period to September 2024 with a securitized estate of 1,720 pubs. Despite the reduction, it is still the largest estate in our rated U.K. pub universe. S&P expects UPP to report revenues close to GBP164 million in FY2024, a 4% increase from FY2023, while it anticipates EBITDA margins to fall toward 81%-82%, down from 84% in the preceding two years. This will result in EBITDA of about GBP134 million, demonstrating the resilience of the business model in a tough macroeconomic environment as consumers traded down from traditional restaurants and largely absorbed price increases. Macroeconomic pressures have started to ease compared with a year ago, but some constraints remain. These include a reduction in consumer discretionary spending that could affect demand, and stubbornly high costs, compared with a year ago, but some constraints remain. Furthermore, S&P notes that the recent changes announced on the U.K. budget in relation to national insurance and minimum living wage could put pressure on the cost base of some of the publicans. Given UPP's L&T business model, the company itself is less directly exposed to increasing costs as these are largely borne by the publicans. UPP generates revenue mostly from rent and tied-in drink supply agreements. S&P said, "Although we recognize that the recovery in earnings and cash generation is faster in the L&T model, economic conditions remain challenging and may still affect publicans' ability to pay their rent. This could put pressure on UPP's ability to collect payments from the publicans. However, we understand that the group has a pipeline of potential publicans that could take over the premises and continue with the services." S&P said, "We believe that UPP is well positioned to weather any potential macroeconomic shocks and we expect revenue and EBITDA generation to remain resilient, though potentially affected by a reduction in the estate in the medium term." Issuer's liquidity position The cash reserve remains fully depleted as of September 2024 payment date. As per the transaction documents and confirmed by Stonegate, the cash reserve target will not be replenished to the GBP65 million target level. Instead, this target was reduced to zero following the repayment of the class A4 notes in September 2024, based on the cash reserve required level formula. The committed liquidity facility remains fully undrawn, with GBP36 million available to the issuer as of September 2024. Following the repayment of class A4 notes ahead of scheduled amortization, the liquidity facility available to the class N notes remains unchanged and the overall size of the liquidity facility does not amortize immediately. As S&P understands it, the overall liquidity facility will instead continue to follow the original schedule (assuming the class A4 and M notes were not amortized), and will reduce progressively to GBP12.5 million by September 2027. The absence of the cash reserve combined with the class N available liquidity facility (GBP12.5 million or at about 6.6% of the class N notes), represents a weaker liquidity position than at our previous review. S&P said, "We rate the class N notes on a deferrable basis in line with the transaction documents. This means that if there are insufficient funds available to the issuer to pay principal and interest on the class N notes, the unpaid amounts could be deferred and ultimately due in March 2032, along with accrued interest on the deferred amounts. Nonpayment of the class N notes prior to March 2032 will not lead to an issuer event of default. However, under the transaction documents, the nonpayment on the secured issuer-borrower loan would lead to a borrower event of defaults and the likely enforcement of the security package by the trustee. In the past, the borrower always had sufficient funds to fulfill its debt obligations in a timely manner and we expect the UPP to adhere to the scheduled amortization profile on the outstanding loan." DSCR analysis S&P's cash flow analysis serves to both assess whether cash flows will be sufficient to service debt through the transaction's life, and to project minimum DSCRs in its base-case and downside scenarios. Base-case forecast S&P said, "Our base-case EBITDA and cash flow projections in the short term and the company's satisfactory BRP rely on our corporate methodology. We give credit to growth through to the end of FY2026. Beyond that, our base-case projections are based on our methodology and assumptions for corporate securitizations, to which we then apply assumptions for capex and taxes to arrive at our projections for the cash flow available for debt service." UPP's earnings depend largely on general economic activity and discretionary consumer demand. Considering the economic outlook, and UPP's financial 2024 results, we have revised our forecasts of Unique Pub Finance's business performance through to 2026. S&P's current macroeconomic assumptions are: -- Macroeconomic pressures have started to ease with inflation coming closer to the long-term target of 2%. However, recent macroeconomic challenges and fiscal rules in the U.K. may delay further decreases in inflation. -- The labor market remains tight, with wage inflation remaining high, supported by recurrent increases in the minimum living wage in the U.K. in the light of the new budget. S&P said, "We think that the Bank of England will continue lowering interest rates through 2024 and 2025, bearing in mind the long lags that monetary policy changes can have and the uncertainty over how the economy will develop. We expect 100 basis points (bps) to 150 bps of cuts through to the end of 2026. "Considering our macroeconomic outlook and UPP's signs of recovery and asset sale strategy going forward, we have revised our operating cash flow forecasts downward slightly through to FY2026. The cash flow available for debt service benefits from lower capex forecasts, which are revised downward from our previous forecasts due to the revised strategy for UPP to no longer convert the leased and tenanted pubs into managed pubs, as well as the gradual reduction in the size of the estate subject to the disposal covenants. "We expect total revenues in FY2025 to be about 1% lower than the previous year's levels and relatively flat thereafter. This is the result of a lower number of pubs due to the business' future disposal profile, despite the marginal increase in revenues per pub. "We expect retail price index-linked rental income to support revenue growth, while drink and food income will continue to increase marginally supported by resilient demand and potential price increases. "We typically do not give any credit to disposal proceeds in our cash flow analysis as we do not consider them to be internal cash generated by the assets. Equally, we do not consider the buildup of disposal proceeds in the disposal account as a source of cash for debt service as we cannot discount the possibility that the borrower could apply the disposal proceeds to nondebt service payments." S&P established an anchor of 'bbb-' for the class N notes, based on: -- S&P's assessment of UPP's fair BRP, which we associate with a business volatility score of 4. -- The minimum DSCR achieved in our base-case analysis. -- No credit given to issuer-level structural features (such as the liquidity facility). Downside DSCR analysis S&P said, "Our downside DSCR analysis tests whether the issuer-level structural enhancements improve the transaction's resilience under a moderate stress scenario. UPP falls within the pubs, restaurants, and retail industry. Considering U.K. pubs' historical performance during the financial crisis of 2007-2008, in our view, a 25% decline in EBITDA from our base case is appropriate for the tenanted pub subsector. "We applied the decline to the base case at the point when we believe the stress on debt service would be greatest. "Our downside DSCR analysis resulted in a strong resilience score for the class N notes, higher than the score in our previous review for the class N notes. "This reflects the headroom above a 4.0:1.8 DSCR threshold that is required under our criteria to achieve a strong resilience score after considering the level of liquidity support available to the class N notes. "While the class A4 and M notes were outstanding, there were limits on the amount of the liquidity facility that could be used to cover any potential liquidity shortfalls on the class N notes. This limit remains unchanged following the repayment of the class A4 and M notes. Therefore, although the size of the liquidity facility available to the issuer is GBP36 million as of September 2024, in our downside analysis we only give credit to the limited amount (GBP12.5 million) available for the class N notes. "The combination of a strong resilience score and the 'bbb-' anchor that we derive in our base case results in a resilience-adjusted anchor of 'bbb+' for the class N notes." Liquidity facility adjustment Currently, the liquidity facility amounts available to the issuer represent a significant level of liquidity support, measured as a percentage of its total current rated outstanding balance. However, the liquidity support available specifically to the class N notes is about 6%, which is unchanged following the redemption of class A4 and M notes. Therefore, it will be below the 10% threshold in S&P's corporate securitization criteria. S&P said, "We have therefore not applied a one-notch increase of the resilience-adjusted anchor to account for the size of the available liquidity support relative to the class N notes balance. "We did not adjust the class N notes' resilience-adjusted anchor. This is unchanged from our previous review and in line with our corporate securitization criteria." Modifiers analysis S&P said, "We applied a two-notch downward adjustment to the class N notes to reflect the weak effectiveness of the two main covenant tests (the restricted payment condition covenant and the lack of the cash reserve post amortization of class A4 notes), as the class N notes are now the only outstanding notes in the transaction. Previously, this adjustment was only applied on the class A4 notes, which we applied since our Nov. 22, 2019 review. The class N notes now feature weaker covenants compared with the senior notes in other transactions rated at the 'BBB' or 'BB' levels. Following the repayment of the class A4 notes on the September 2024 payment date, the RPC continues to be applicable and the issuer will be able to upstream cash to the borrower (and ultimately to the parent) provided the RPC conditions are met. However, there is no obligation to top up the fully drawn cash reserve to the previous target level, weakening the amount of potential liquidity available to service the debt in case of deteriorating performance." Comparable rating analysis S&P said, "Based on our corporate securitization criteria, the rated notes should benefit from liquidity provisions at the securitization issuer level to cover for disruption of cash flows arising from an insolvency of the operating company. We typically expect 12-18 months of debt service coverage for a sufficient liquidity position." Under the transaction structure, the cash reserve at the borrower level, combined with an amortizing tranched liquidity facility at the issuer level, aimed to cover about 18 months of debt service (including deferrable notes) and constituted strong liquidity support for the class N notes." However, since the prepayment of the class A4 and M notes, the requirement to top up the cash reserve to the required level of GBP65 million (before amortizing from September 2027) has fallen away. As the cash reserve is fully drawn already there is no requirement to fund it to its previous target after the redemption of the class A4 notes. The absence of the cash reserve combined with the available liquidity facility, which represents GBP12.5 million or about 6.6% of the class N notes' balance, represents a weaker liquidity position than a year ago. S&P has therefore applied a one-notch downward adjustment as a result of the comparable rating analysis. Counterparty risk S&P's rating on the notes is not currently constrained by the long-term issuer credit ratings on any of the counterparties, including the liquidity facility provider (Barclays Bank PLC) and bank account providers (National Westminster Bank PLC and Barclays Bank PLC). Outlook S&P said, "We expect the pub sector's earnings growth to remain resilient over the next 12-24 months as the sector benefits from continued demand despite macroeconomic challenges in the U.K., where high inflation and pressures on discretionary income could further affect publicans. An improvement in UPP's profitability in 2023, paired with debt repayments, has helped to continue reducing leverage. "Our expectation of a continuous improvement in profitability and credit metrics in 2025 and 2026, as well as the improvement in the group's liquidity profile and debt service, will be key in shaping our view of the issuer's underlying credit quality, and will be the main reason for any future rating actions. "For many rated pub operators, their significant freehold property portfolios have offered substantial operational and financial flexibility, but we have yet to see meaningful large-scale valuation support from conversions or alternative uses for pub properties. Rather, we expect that their quality of earnings will be more of a defining factor in the credit profile compared with the quantum of real estate ownership. "We expect the L&T model to show more resilience than the managed model. This is because under the latter, the pub is directly exposed to increasing costs, which creates higher earnings volatility and pressure." Downside scenario S&P said, "We may consider lowering our rating on the class N notes if the minimum projected DSCRs in our downside scenario have a material adverse effect on the respective class N notes' resilience-adjusted anchor. We may also consider lowering our rating on the class N notes if the respective minimum forecast DSCR weakens in our base-case scenario. Additionally, we may consider lowering our rating if there is a materially higher number of disposals of the pub estate than predicted in our analysis." Upside scenario S&P said, "We could raise our rating on the class N notes if our minimum DSCR improves to the middle end of the 4.00x-1.80x range in our base-case scenario. Alternatively, we could take a positive rating action if UPP's BRP were to increase, although this is unlikely over the near-to-medium term." =============== X X X X X X X X =============== YELCON LIMITED: Interpath Advisory Named as Joint Administrators ---------------------------------------------------------------- Yelcon Limited was placed into administration proceedings in the High Court Of Justice Business and Property Courts in Leeds Insolvency and Companies List (ChD), No CR-2024-LDS-001111, and James Richard Clark and Howard Smith of Interpath Advisory, Interpath Ltd were appointed as joint administrators on Nov. 19, 2024. Yelcon Limited specializes in the buying and selling of its own real estate. Its registered office is at Interpath Ltd, 4th Floor, Tailors Corner, Thirsk Row, Leeds, LS1 4DP. Its principal trading address is at 3 The Gateway North, Marsh Lane, Leeds, LS9 8AX. The joint administrators can be reached at: James Richard Clark Howard Smith Interpath Advisory, Interpath Ltd 4th Floor, Tailors Corner Thirsk Row, Leeds LS1 4DP Further details, contact: Becca Sargeant Email: YelconCreditors@interpath.com [*] BOND PRICING: For the Week November 25 to November 29, 2024 --------------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- Altice France Hold 10.500 5/15/2027 USD 28.586 Cabonline Group Ho 12.487 4/19/2026 SEK 70.750 NCO Invest SA 10.000 12/30/2026 EUR 0.152 Codere Finance 2 L 11.000 9/30/2026 EUR NCO Invest SA 10.000 12/30/2026 EUR 0.152 Turkiye Government 10.400 10/13/2032 TRY 47.250 Ferralum Metals Gr 10.000 12/30/2026 EUR 29.750 Fastator AB 12.500 9/26/2025 SEK 40.320 Fastator AB 12.500 9/25/2026 SEK 40.405 Saderea DAC 12.500 11/30/2026 USD 51.240 Marginalen Bank Ba 12.039 SEK 7.001 Avangardco Investm 10.000 10/29/2018 USD 0.186 Tinkoff Bank JSC V 11.002 USD 42.875 Ilija Batljan Inve 10.007 SEK 10.000 IOG Plc 12.434 9/22/2025 EUR 1.195 Bilt Paper BV 10.360 USD 0.593 Privatbank CJSC Vi 10.250 1/23/2018 USD 3.670 Plusplus Capital F 11.000 7/29/2026 EUR 8.914 Immigon Portfolioa 10.055 EUR 14.251 Altice France Hold 10.500 5/15/2027 USD 29.423 Instituto de Credi 10.940 12/5/2025 BRL 50.000 UkrLandFarming PLC 10.875 3/26/2018 USD 1.483 Kvalitena AB publ 10.067 4/2/2024 SEK 45.750 Fastator AB 12.500 9/24/2027 SEK 40.313 Societe Generale S 17.800 2/12/2026 USD 42.501 Sidetur Finance BV 10.000 4/20/2016 USD 0.784 Privatbank CJSC Vi 11.000 2/9/2021 USD 0.500 Bulgaria Steel Fin 12.000 5/4/2013 EUR 0.216 Privatbank CJSC Vi 10.875 2/28/2018 USD 4.729 Transcapitalbank J 10.000 USD 1.450 R-Logitech Finance 10.250 9/26/2027 EUR 15.000 DZ Bank AG Deutsch 14.100 3/28/2025 EUR 45.500 Goldman Sachs Inte 16.288 3/17/2027 USD 22.870 Oscar Properties H 11.270 7/5/2024 SEK 0.092 Societe Generale S 18.320 2/26/2026 USD 40.800 UBS AG/London 10.000 3/23/2026 USD 37.120 Tonon Luxembourg S 12.500 5/14/2024 USD 2.216 Phosphorus Holdco 10.000 4/1/2019 GBP 0.216 UniCredit Bank Gmb 12.250 2/28/2025 EUR 40.950 Societe Generale S 20.000 7/21/2026 USD 3.070 Societe Generale S 26.640 10/30/2025 USD 1.300 Societe Generale S 20.000 9/18/2026 USD 5.200 Bilt Paper BV 10.360 USD 0.593 Swissquote Bank Eu 19.340 8/5/2025 USD 47.940 Societe Generale S 23.500 3/3/2025 USD 39.277 Raiffeisen Schweiz 15.000 3/18/2025 CHF 48.690 Societe Generale S 11.000 7/14/2026 USD 14.510 Bank Julius Baer & 12.720 2/17/2025 CHF 15.850 Ameriabank CJSC 10.000 2/20/2025 AMD 9.695 Leonteq Securities 12.500 12/4/2024 CHF 42.630 Societe Generale S 20.000 11/28/2025 USD 11.530 Lehman Brothers Tr 12.400 6/12/2009 USD 0.100 Serica Energy Chin 12.500 9/27/2019 USD 1.500 Sidetur Finance BV 10.000 4/20/2016 USD 0.784 Privatbank CJSC Vi 10.875 2/28/2018 USD 4.729 UkrLandFarming PLC 10.875 3/26/2018 USD 1.483 Deutsche Bank AG/L 14.900 5/30/2028 TRY 49.769 Banco Espirito San 10.000 12/6/2021 EUR 0.058 BLT Finance BV 12.000 2/10/2015 USD 10.500 Ukraine Government 11.000 2/16/2037 UAH 29.672 Bulgaria Steel Fin 12.000 5/4/2013 EUR 0.216 Ukraine Government 11.000 4/24/2037 UAH 32.368 NTRP Via Interpipe 10.250 8/2/2017 USD 1.002 Petromena ASA 10.850 11/19/2018 USD 0.622 Lehman Brothers Tr 14.900 11/16/2010 EUR 0.100 KPNQwest NV 10.000 3/15/2012 EUR 1.151 Bank Vontobel AG 20.000 7/31/2025 CHF 22.400 Bank Vontobel AG 14.000 7/16/2025 CHF 47.800 Basler Kantonalban 14.200 9/17/2025 CHF 43.080 Bank Vontobel AG 12.000 6/17/2025 CHF 15.300 Swissquote Bank Eu 17.590 4/22/2025 USD 43.210 Bank Vontobel AG 14.250 5/30/2025 USD 36.500 Bank Vontobel AG 15.000 10/14/2025 USD 48.800 DZ Bank AG Deutsch 18.500 3/28/2025 EUR 23.600 DZ Bank AG Deutsch 17.600 6/27/2025 EUR 23.770 Vontobel Financial 23.250 6/27/2025 EUR 46.120 Swissquote Bank SA 14.960 7/1/2025 CHF 43.800 DZ Bank AG Deutsch 20.400 3/28/2025 EUR 22.010 Bank Julius Baer & 14.000 6/4/2025 CHF 50.120 Swissquote Bank SA 24.070 5/6/2025 CHF 39.400 DZ Bank AG Deutsch 22.800 3/28/2025 EUR 40.300 Raiffeisen Switzer 16.000 3/4/2025 CHF 11.550 Swissquote Bank Eu 18.530 3/5/2025 CHF 29.550 Vontobel Financial 29.200 1/17/2025 EUR 27.225 Bank Julius Baer & 12.000 5/28/2025 USD 42.050 Swissquote Bank Eu 25.320 2/26/2025 CHF 24.780 DZ Bank AG Deutsch 13.200 3/28/2025 EUR 35.270 DZ Bank AG Deutsch 23.600 3/28/2025 EUR 33.450 DZ Bank AG Deutsch 12.500 12/31/2024 EUR 45.540 DZ Bank AG Deutsch 10.500 3/28/2025 EUR 47.960 Bank Vontobel AG 12.000 4/11/2025 CHF 36.800 Bank Vontobel AG 11.000 4/11/2025 CHF 7.600 Bank Vontobel AG 15.000 4/29/2025 CHF 41.700 DZ Bank AG Deutsch 18.900 3/28/2025 EUR 38.770 DZ Bank AG Deutsch 21.200 3/28/2025 EUR 35.720 Bank Vontobel AG 11.000 4/29/2025 CHF 10.200 Landesbank Baden-W 11.500 4/24/2026 EUR 21.570 Landesbank Baden-W 10.500 4/24/2026 EUR 20.810 Landesbank Baden-W 13.000 4/24/2026 EUR 23.090 DZ Bank AG Deutsch 16.000 6/27/2025 EUR 46.330 JP Morgan Structur 10.000 12/31/2024 EUR 1.003 JP Morgan Structur 20.000 12/31/2024 EUR 1.014 JP Morgan Structur 20.000 12/31/2024 EUR 1.014 JP Morgan Structur 20.000 12/31/2024 EUR 0.983 Bank Vontobel AG 14.500 4/4/2025 CHF 37.500 Leonteq Securities 14.000 10/15/2025 CHF 44.790 Landesbank Baden-W 11.000 2/27/2026 EUR 19.020 Landesbank Baden-W 12.000 2/27/2026 EUR 19.770 Leonteq Securities 14.500 2/27/2025 CHF 35.860 Leonteq Securities 16.000 3/4/2025 CHF 29.460 Leonteq Securities 18.000 5/27/2025 CHF 50.300 Raiffeisen Schweiz 14.500 1/29/2025 CHF 44.280 Raiffeisen Schweiz 16.000 2/19/2025 CHF 29.240 Swissquote Bank SA 20.060 5/22/2025 CHF 42.520 Bank Vontobel AG 14.000 3/5/2025 CHF 4.700 Bank Julius Baer & 18.690 3/7/2025 CHF 40.890 Leonteq Securities 20.000 3/11/2025 CHF 15.600 UBS AG/London 15.000 4/7/2025 USD 42.900 Raiffeisen Switzer 11.000 1/3/2025 CHF 20.660 Bank Vontobel AG 26.000 3/5/2025 CHF 38.100 Bank Vontobel AG 12.000 3/5/2025 CHF 37.800 DZ Bank AG Deutsch 14.300 12/31/2024 EUR 32.250 DZ Bank AG Deutsch 16.500 12/27/2024 EUR 12.030 Bank Julius Baer & 19.400 1/30/2025 CHF 40.190 Raiffeisen Schweiz 16.000 7/4/2025 CHF 44.870 Landesbank Baden-W 11.000 1/2/2026 EUR 18.920 Landesbank Baden-W 16.000 1/2/2026 EUR 22.150 Landesbank Baden-W 16.000 6/27/2025 EUR 17.460 Bank Julius Baer & 17.100 3/19/2025 CHF 44.610 Landesbank Baden-W 13.000 6/27/2025 EUR 17.550 Landesbank Baden-W 15.000 1/3/2025 EUR 19.060 DZ Bank AG Deutsch 19.900 12/31/2024 EUR 43.700 Landesbank Baden-W 10.500 2/28/2025 EUR 46.550 Landesbank Baden-W 11.500 2/28/2025 EUR 17.450 Landesbank Baden-W 15.000 2/28/2025 EUR 15.810 Leonteq Securities 10.500 5/15/2025 CHF 50.050 BNP Paribas Emissi 15.000 9/25/2025 EUR 45.800 Bank Vontobel AG 16.000 2/10/2025 CHF 39.700 Bank Vontobel AG 20.000 3/17/2025 CHF 49.500 Bank Vontobel AG 10.000 12/9/2024 CHF 48.000 DZ Bank AG Deutsch 20.300 12/31/2024 EUR 48.480 Vontobel Financial 20.250 12/31/2024 EUR 38.160 Leonteq Securities 20.800 2/5/2025 CHF 30.100 Vontobel Financial 26.450 1/24/2025 EUR 12.573 Vontobel Financial 13.750 12/31/2024 EUR 46.920 Vontobel Financial 16.500 12/31/2024 EUR 41.230 Vontobel Financial 10.000 12/31/2024 EUR 48.520 Landesbank Baden-W 18.000 1/3/2025 EUR 11.950 Landesbank Baden-W 12.000 1/3/2025 EUR 15.830 Landesbank Baden-W 15.000 1/3/2025 EUR 13.100 DZ Bank AG Deutsch 11.050 5/23/2025 EUR 46.540 Vontobel Financial 16.000 3/28/2025 EUR 17.100 Leonteq Securities 24.000 1/16/2025 CHF 25.030 Vontobel Financial 20.250 12/31/2024 EUR 11.960 Leonteq Securities 20.000 12/11/2024 CHF 36.730 Landesbank Baden-W 10.500 4/28/2025 EUR 18.500 Landesbank Baden-W 16.500 4/28/2025 EUR 17.590 Corner Banca SA 18.400 7/22/2025 CHF 47.580 Zurcher Kantonalba 23.000 3/5/2025 CHF 35.870 Zurcher Kantonalba 14.000 6/17/2025 USD 42.100 Landesbank Baden-W 19.000 2/28/2025 EUR 14.820 DZ Bank AG Deutsch 14.200 12/31/2024 EUR 10.040 UniCredit Bank Gmb 11.200 12/28/2026 EUR 46.100 Leonteq Securities 12.000 12/4/2024 CHF 40.870 Landesbank Baden-W 19.000 4/28/2025 EUR 17.630 Bank Vontobel AG 24.000 4/14/2025 CHF 47.100 Leonteq Securities 24.000 4/23/2025 CHF 46.260 Raiffeisen Switzer 13.000 3/11/2025 CHF 44.600 Raiffeisen Switzer 16.500 3/11/2025 CHF 15.230 Vontobel Financial 11.250 12/31/2024 EUR 47.190 Vontobel Financial 13.000 12/31/2024 EUR 44.990 Vontobel Financial 18.500 12/31/2024 EUR 39.630 Vontobel Financial 14.750 12/31/2024 EUR 43.020 Leonteq Securities 12.000 8/5/2025 CHF 47.220 Vontobel Financial 14.750 12/31/2024 EUR 47.440 Vontobel Financial 16.750 12/31/2024 EUR 45.260 DZ Bank AG Deutsch 17.100 12/31/2024 EUR 34.500 DZ Bank AG Deutsch 15.500 12/31/2024 EUR 39.710 DZ Bank AG Deutsch 18.500 12/31/2024 EUR 49.680 DZ Bank AG Deutsch 23.400 12/31/2024 EUR 28.130 Bank Vontobel AG 13.500 6/3/2025 USD 48.900 Leonteq Securities 21.000 12/18/2024 CHF 32.650 Leonteq Securities 20.000 1/22/2025 CHF 31.140 Landesbank Baden-W 14.000 1/24/2025 EUR 13.830 Leonteq Securities 18.000 12/27/2024 CHF 29.560 Leonteq Securities 20.000 1/22/2025 CHF 11.300 Raiffeisen Schweiz 15.000 1/22/2025 CHF 25.550 Leonteq Securities 16.000 1/15/2025 EUR 43.680 Leonteq Securities 23.000 1/9/2025 CHF 28.350 Leonteq Securities 18.000 2/20/2025 CHF 51.000 DZ Bank AG Deutsch 18.600 3/28/2025 EUR 41.490 Finca Uco Cjsc 12.000 2/10/2025 AMD 0.000 Leonteq Securities 24.000 1/9/2025 CHF 16.080 UniCredit Bank Gmb 10.700 2/17/2025 EUR 12.070 DZ Bank AG Deutsch 16.800 12/31/2024 EUR 46.810 Leonteq Securities 11.000 1/9/2025 EUR 45.120 Leonteq Securities 11.000 1/9/2025 CHF 46.730 DZ Bank AG Deutsch 13.400 12/31/2024 EUR 45.180 DZ Bank AG Deutsch 22.500 12/31/2024 EUR 39.820 Bank Vontobel AG 21.000 12/23/2024 CHF 29.900 Leonteq Securities 20.000 3/21/2025 CHF 31.730 Vontobel Financial 11.000 12/31/2024 EUR 42.310 DZ Bank AG Deutsch 19.100 12/31/2024 EUR 30.860 DZ Bank AG Deutsch 21.300 12/31/2024 EUR 27.990 DZ Bank AG Deutsch 20.900 12/31/2024 EUR 39.380 Societe Generale S 23.510 6/23/2026 USD 6.625 Landesbank Baden-W 11.000 3/28/2025 EUR 13.670 Landesbank Baden-W 13.000 3/28/2025 EUR 12.910 Landesbank Baden-W 15.000 3/28/2025 EUR 12.470 Leonteq Securities 25.000 1/3/2025 CHF 24.090 Corner Banca SA 13.000 4/2/2025 CHF 47.280 Leonteq Securities 21.000 1/3/2025 CHF 16.950 Leonteq Securities 12.000 1/2/2025 EUR 43.420 Raiffeisen Switzer 10.500 4/2/2025 EUR 45.570 Zurcher Kantonalba 10.000 3/27/2025 EUR 44.150 Zurcher Kantonalba 20.000 1/17/2025 CHF 50.020 Raiffeisen Schweiz 13.000 3/25/2025 CHF 43.100 Zurcher Kantonalba 21.000 12/20/2024 CHF 46.770 DZ Bank AG Deutsch 11.500 12/31/2024 EUR 11.810 DZ Bank AG Deutsch 23.100 12/31/2024 EUR 40.140 BNP Paribas Emissi 13.000 12/30/2024 EUR 37.120 HSBC Trinkaus & Bu 14.500 12/30/2024 EUR 19.720 DZ Bank AG Deutsch 12.500 12/31/2024 EUR 49.990 Bank Vontobel AG 12.000 12/23/2024 CHF 49.100 Bank Vontobel AG 18.000 12/31/2024 USD 47.000 UniCredit Bank Gmb 10.700 2/3/2025 EUR 11.760 DZ Bank AG Deutsch 10.300 3/28/2025 EUR 48.250 DZ Bank AG Deutsch 12.100 3/28/2025 EUR 48.650 DZ Bank AG Deutsch 20.700 12/31/2024 EUR 48.570 UniCredit Bank Gmb 16.550 8/18/2025 USD 18.400 Finca Uco Cjsc 13.000 5/30/2025 AMD 0.000 DZ Bank AG Deutsch 11.000 12/20/2024 EUR 44.480 UBS AG/London 21.600 8/2/2027 SEK 20.800 BNP Paribas Emissi 10.000 12/30/2024 EUR 39.470 BNP Paribas Emissi 11.000 12/30/2024 EUR 38.040 DZ Bank AG Deutsch 14.000 12/20/2024 EUR 39.400 Erste Group Bank A 14.500 5/31/2026 EUR 42.300 Landesbank Baden-W 22.000 1/3/2025 EUR 11.690 DZ Bank AG Deutsch 17.600 12/31/2024 EUR 42.700 Landesbank Baden-W 25.000 1/3/2025 EUR 10.940 Landesbank Baden-W 16.000 6/27/2025 EUR 15.330 Landesbank Baden-W 21.000 6/27/2025 EUR 16.780 DZ Bank AG Deutsch 14.900 12/31/2024 EUR 46.020 Erste Group Bank A 10.750 3/31/2026 EUR 36.700 Landesbank Baden-W 19.000 1/3/2025 EUR 12.690 Landesbank Baden-W 10.000 10/24/2025 EUR 16.500 Landesbank Baden-W 14.000 10/24/2025 EUR 17.720 Leonteq Securities 10.000 5/26/2025 CHF 40.240 BNP Paribas Emissi 14.000 12/30/2024 EUR 40.250 BNP Paribas Emissi 17.000 12/30/2024 EUR 40.030 BNP Paribas Emissi 13.000 12/30/2024 EUR 38.180 HSBC Trinkaus & Bu 17.500 6/27/2025 EUR 11.570 HSBC Trinkaus & Bu 15.500 6/27/2025 EUR 46.470 HSBC Trinkaus & Bu 22.250 6/27/2025 EUR 13.380 HSBC Trinkaus & Bu 12.750 6/27/2025 EUR 10.930 HSBC Trinkaus & Bu 11.750 6/27/2025 EUR 44.820 Leonteq Securities 24.000 12/27/2024 CHF 19.420 Leonteq Securities 23.000 12/27/2024 CHF 36.040 Banque Internation 10.000 3/19/2025 EUR 43.000 BNP Paribas Emissi 16.000 12/30/2024 EUR 41.710 BNP Paribas Emissi 12.000 12/30/2024 EUR 46.610 BNP Paribas Emissi 13.000 12/30/2024 EUR 43.840 BNP Paribas Emissi 17.000 12/30/2024 EUR 36.870 UBS AG/London 10.250 3/10/2025 EUR 36.100 Raiffeisen Schweiz 10.000 12/31/2024 CHF 46.900 Corner Banca SA 12.000 12/16/2024 CHF 39.470 Vontobel Financial 18.000 12/31/2024 EUR 45.100 Vontobel Financial 10.000 12/31/2024 EUR 45.880 UBS AG/London 11.750 4/29/2025 EUR 49.250 HSBC Trinkaus & Bu 16.300 12/30/2024 EUR 16.780 Landesbank Baden-W 10.000 6/27/2025 EUR 16.500 HSBC Trinkaus & Bu 15.200 12/30/2024 EUR 17.430 Landesbank Baden-W 14.000 6/27/2025 EUR 15.470 HSBC Trinkaus & Bu 15.700 12/30/2024 EUR 12.880 HSBC Trinkaus & Bu 11.600 3/28/2025 EUR 22.450 HSBC Trinkaus & Bu 18.100 12/30/2024 EUR 11.470 HSBC Trinkaus & Bu 11.100 12/30/2024 EUR 20.960 HSBC Trinkaus & Bu 13.100 12/30/2024 EUR 18.990 HSBC Trinkaus & Bu 13.400 3/28/2025 EUR 21.110 HSBC Trinkaus & Bu 17.500 12/30/2024 EUR 42.540 Landesbank Baden-W 10.000 1/3/2025 EUR 39.480 Landesbank Baden-W 11.000 1/3/2025 EUR 10.520 Landesbank Baden-W 13.000 1/3/2025 EUR 9.410 HSBC Trinkaus & Bu 10.250 12/30/2024 EUR 28.110 Inecobank CJSC 10.000 4/28/2025 AMD 0.000 BNP Paribas Issuan 20.000 9/18/2026 EUR 28.570 BNP Paribas Issuan 19.000 9/18/2026 EUR 0.980 BNP Paribas Issuan 16.000 9/18/2026 EUR 44.140 UBS AG/London 11.750 12/9/2024 EUR 34.200 UniCredit Bank Gmb 10.500 4/7/2026 EUR 26.580 Citigroup Global M 25.530 2/18/2025 EUR 0.010 Armenian Economy D 11.000 10/3/2025 AMD 0.000 UniCredit Bank Gmb 10.500 12/22/2025 EUR 31.220 HSBC Trinkaus & Bu 11.100 12/30/2024 EUR 19.850 HSBC Trinkaus & Bu 15.000 3/28/2025 EUR 19.720 HSBC Trinkaus & Bu 11.300 6/27/2025 EUR 23.830 HSBC Trinkaus & Bu 16.100 12/30/2024 EUR 16.420 HSBC Trinkaus & Bu 15.900 3/28/2025 EUR 19.350 HSBC Trinkaus & Bu 13.300 6/27/2025 EUR 22.830 Bank Vontobel AG 10.500 5/12/2025 EUR 37.200 Zurcher Kantonalba 10.500 2/4/2025 EUR 42.940 ACBA Bank OJSC 11.000 12/1/2025 AMD 0.000 Armenian Economy D 10.500 5/4/2025 AMD 0.000 Basler Kantonalban 10.000 2/3/2025 EUR 39.920 Leonteq Securities 10.000 1/20/2025 CHF 46.720 Vontobel Financial 12.500 12/31/2024 EUR 43.000 Leonteq Securities 24.000 1/13/2025 CHF 4.120 Vontobel Financial 12.000 12/31/2024 EUR 47.740 Vontobel Financial 14.250 12/31/2024 EUR 47.400 DZ Bank AG Deutsch 12.100 3/28/2025 EUR 46.290 Landesbank Baden-W 16.000 1/3/2025 EUR 14.040 Landesbank Baden-W 14.000 6/27/2025 EUR 15.200 Landesbank Baden-W 19.000 6/27/2025 EUR 16.260 Landesbank Baden-W 10.500 1/2/2026 EUR 15.700 Vontobel Financial 12.750 12/31/2024 EUR 43.650 UniCredit Bank Gmb 20.000 12/31/2024 EUR 43.700 Leonteq Securities 12.000 12/5/2024 CHF 47.920 UBS AG/London 11.000 2/17/2025 EUR 46.950 National Mortgage 12.000 3/30/2026 AMD 0.000 Evocabank CJSC 11.000 9/27/2025 AMD 9.733 DZ Bank AG Deutsch 10.750 12/27/2024 EUR 10.610 ACBA Bank OJSC 11.500 3/1/2026 AMD 0.000 Leonteq Securities 10.340 8/31/2026 EUR 44.780 UniCredit Bank Gmb 10.400 2/28/2025 EUR 48.530 UniCredit Bank Gmb 11.500 2/28/2025 EUR 46.660 Vontobel Financial 11.000 12/31/2024 EUR 44.810 Vontobel Financial 14.000 12/31/2024 EUR 41.370 Corner Banca SA 10.000 2/25/2025 CHF 41.320 Leonteq Securities 10.000 2/25/2025 CHF 40.980 Bank Vontobel AG 13.500 1/8/2025 CHF 2.900 UBS AG/London 17.400 4/14/2027 SEK 47.140 BNP Paribas Emissi 14.000 12/30/2024 EUR 44.300 BNP Paribas Emissi 14.000 12/30/2024 EUR 36.210 Corner Banca SA 11.000 7/14/2025 EUR 47.440 HSBC Trinkaus & Bu 17.400 12/30/2024 EUR 15.090 Leonteq Securities 25.000 12/11/2024 CHF 19.760 Bank Vontobel AG 10.000 12/23/2024 EUR 38.700 HSBC Trinkaus & Bu 13.500 12/30/2024 EUR 40.210 HSBC Trinkaus & Bu 19.600 12/30/2024 EUR 13.620 Leonteq Securities 10.000 1/21/2025 EUR 40.740 HSBC Trinkaus & Bu 11.000 3/28/2025 EUR 22.820 HSBC Trinkaus & Bu 11.500 6/27/2025 EUR 24.420 Bank Vontobel AG 11.500 1/14/2025 EUR 48.100 Basler Kantonalban 10.000 1/20/2025 EUR 46.760 UBS AG/London 11.000 1/20/2025 EUR 44.750 Landesbank Baden-W 12.000 1/24/2025 EUR 13.560 Landesbank Baden-W 15.500 1/24/2025 EUR 11.380 HSBC Trinkaus & Bu 11.400 12/30/2024 EUR 20.410 HSBC Trinkaus & Bu 13.400 6/27/2025 EUR 23.050 HSBC Trinkaus & Bu 16.300 3/28/2025 EUR 9.620 HSBC Trinkaus & Bu 14.400 3/28/2025 EUR 9.640 Raiffeisen Switzer 10.250 1/21/2025 EUR 40.850 HSBC Trinkaus & Bu 14.100 12/30/2024 EUR 18.170 HSBC Trinkaus & Bu 16.000 3/28/2025 EUR 19.690 HSBC Trinkaus & Bu 15.100 3/28/2025 EUR 20.090 HSBC Trinkaus & Bu 15.200 12/30/2024 EUR 10.610 Raiffeisen Switzer 10.300 6/11/2025 CHF 45.860 Leonteq Securities 11.000 1/3/2025 EUR 40.860 EFG International 11.120 12/27/2024 EUR 39.320 Lehman Brothers Tr 11.750 3/1/2010 EUR 0.100 Lehman Brothers Tr 10.000 10/22/2008 USD 0.100 Lehman Brothers Tr 10.600 4/22/2014 MXN 0.100 Lehman Brothers Tr 17.000 6/2/2009 USD 0.100 Lehman Brothers Tr 13.500 6/2/2009 USD 0.100 Lehman Brothers Tr 10.000 6/17/2009 USD 0.100 Lehman Brothers Tr 11.000 7/4/2011 USD 0.100 Lehman Brothers Tr 12.000 7/4/2011 EUR 0.100 Lehman Brothers Tr 13.432 1/8/2009 ILS 0.100 Lehman Brothers Tr 13.150 10/30/2008 USD 0.100 Lehman Brothers Tr 16.800 8/21/2009 USD 0.100 Lehman Brothers Tr 11.250 12/31/2008 USD 0.100 Lehman Brothers Tr 13.000 12/14/2012 USD 0.100 Teksid Aluminum Lu 12.375 7/15/2011 EUR 0.619 PA Resources AB 13.500 3/3/2016 SEK 0.124 Tonon Luxembourg S 12.500 5/14/2024 USD 2.216 Lehman Brothers Tr 11.000 2/16/2009 CHF 0.100 Lehman Brothers Tr 13.000 2/16/2009 CHF 0.100 Deutsche Bank AG/L 12.780 3/16/2028 TRY 48.250 Credit Agricole Co 10.200 12/13/2027 TRY 48.415 Credit Agricole CI 29.699 12/29/2031 EUR 49.604 Lehman Brothers Tr 11.000 12/19/2011 USD 0.100 Elli Investments L 12.250 6/15/2020 GBP 0.962 Elli Investments L 12.250 6/15/2020 GBP 0.962 Lehman Brothers Tr 10.500 8/9/2010 EUR 0.100 Lehman Brothers Tr 10.000 3/27/2009 USD 0.100 Lehman Brothers Tr 11.000 6/29/2009 EUR 0.100 Lehman Brothers Tr 12.000 7/13/2037 JPY 0.100 Lehman Brothers Tr 10.000 6/11/2038 JPY 0.100 Lehman Brothers Tr 15.000 3/30/2011 EUR 0.100 Lehman Brothers Tr 14.900 9/15/2008 EUR 0.100 Lehman Brothers Tr 13.500 11/28/2008 USD 0.100 Ukraine Government 11.000 3/24/2037 UAH 29.557 Ukraine Government 11.000 4/20/2037 UAH 29.558 Lehman Brothers Tr 13.000 7/25/2012 EUR 0.100 Lehman Brothers Tr 18.250 10/2/2008 USD 0.100 Ukraine Government 11.000 4/1/2037 UAH 29.536 Ukraine Government 11.000 4/8/2037 UAH 29.520 Ukraine Government 11.000 4/23/2037 UAH 29.489 Lehman Brothers Tr 16.000 10/8/2008 CHF 0.100 Lehman Brothers Tr 10.000 2/16/2009 CHF 0.100 Lehman Brothers Tr 10.000 10/23/2008 USD 0.100 Lehman Brothers Tr 16.000 10/28/2008 USD 0.100 Lehman Brothers Tr 16.200 5/14/2009 USD 0.100 Lehman Brothers Tr 16.000 11/9/2008 USD 0.100 Lehman Brothers Tr 10.000 5/22/2009 USD 0.100 Lehman Brothers Tr 15.000 6/4/2009 CHF 0.100 Lehman Brothers Tr 10.442 11/22/2008 CHF 0.100 Lehman Brothers Tr 23.300 9/16/2008 USD 0.100 Lehman Brothers Tr 11.000 7/4/2011 CHF 0.100 Lehman Brothers Tr 16.000 12/26/2008 USD 0.100 Lehman Brothers Tr 14.100 11/12/2008 USD 0.100 Phosphorus Holdco 10.000 4/1/2019 GBP 0.216 ********* 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 * * *