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       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

          Wednesday, December 25, 2024, Vol. 25, No. 258

                           Headlines



A R M E N I A

ASCE GROUP: S&P Alters Outlook to Negative, Affirms 'B-' ICR


F R A N C E

COLISEE GROUP: S&P Alters Outlook to Negative, Affirms 'B-' ICR
EOS FINCO: S&P Lowers Long-Term ICR to 'CCC+' on Elevated Leverage


G E R M A N Y

TK ELEVATOR: Moody's Affirms 'B2' CFR & Alters Outlook to Stable


I R E L A N D

INVESCO EURO XIV: S&P Assigns B- (sf) Rating to Class F Notes
PERMANENT TSB Group: S&P Withdraws 'BB+/B' Issuer Credit Ratings
TIKEHAU CLO DAC: Moody's Ups Rating on EUR11MM Cl. F-R Notes to B1


I T A L Y

EOLO SPA: S&P Alters Outlook to Stable, Affirms 'B-' LT ICR


L U X E M B O U R G

ALTISOURCE SARL: Moody's Affirms 'Caa2' CFR, Outlook Stable


N E T H E R L A N D S

KONINKLIJKE KPN: Moody's Withdraws 'Ba2' Junior Subordinate Rating


S P A I N

GRIFOLS SA: Moody's Assigns B3 CFR, Rates New Sr. Secured Notes B2
INTERNATIONAL PARK: Moody's Affirms 'B3' CFR, Outlook Now Stable


S W E D E N

HEIMSTADEN AB: S&P Cuts EUR300MM Sub. Perpetual Notes Rating to 'D'


U N I T E D   K I N G D O M

PROJECTS LIMITED: Quantuma Advisory Named as Administrators
TOWD POINT 2024: Moody's Assigns B2 Rating to GBP4.2MM Cl. F Notes
WHEEL BIDCO: Moody's Cuts CFR, GBP335M Sr Sec. Notes Rating to Caa1

                           - - - - -


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A R M E N I A
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ASCE GROUP: S&P Alters Outlook to Negative, Affirms 'B-' ICR
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S&P Global Ratings revised our outlook on Armenian steel products
producer ASCE Group to negative from stable and affirmed its 'B-'
long-term issuer credit rating.

The negative outlook reflects that S&P could lower its rating on
ASCE if it fails to rapidly improve its performance in 2025 and
recover cash flow to strengthen liquidity.

A major operational accident at ASCE Group's Charentsavan plant
that occurred in April this year will result in weak operational
and financial results, with EBITDA of Armenian dram (AMD) 5
billion-AMD6 billion expected for 2024, down from with AMD11
billion in 2023.

Following the accident, the company will have to replenish its
working capital while also investing in a new production line and
servicing increased debt maturities, all of which have added
pressure on liquidity.

Low cash balances, working capital needs, and higher maturities
will squeeze liquidity over the next year.  An accident at ASCE's
industrial plant in Charentsavan in central Armenia forced a
shutdown and depleted most of the company's cash balances. The
accident also stretched its working capital because the company
used up most of its inventories and extended payables. S&P said,
"We therefore expect ASCE to see material working capital outflows
in the next 12 months related to restarting operations and
replenishing inventories. Additionally, the company will need to
ramp-up its second rolling shop at the same plant, which is
completing construction. This will require additional working
capital outflows. Overall, we estimate that at least AMD3
billion-AMD4 billion of working capital will be required in the
following year."

ASCE also has maturities of AMD4.7 billion falling due over the
next 12 months. All these outflows will have to be fully covered by
cash flow as the company doesn't have committed credit lines or
meaningful cash balances. With about AMD4.5 billion-AMD5 billion of
funds from operations (FFO) estimated for the next 12 months, a
material deficiency in liquidity will persist, with the ratio of
sources to uses below 1x. Still, S&P expects ASCE will prioritize
debt servicing to working capital and other uses and expect it to
continue servicing its debt. Nevertheless, if the liquidity
situation does not improve in the next 12 months, S&P will likely
lower the rating.

The operational accident will result in material reduction of
EBITDA by about 50% for 2024, compared to 2023, and a significant
increase in leverage.   S&P said, "We understand that in April this
year, a transformer breakdown occurred at ASCE's electric arc
furnace, which resulted in an effective shutdown of its operations
until late September. The company became fully operational again in
October. ASCE has installed a more powerful and reliable
replacement transformer, as well as acquired a spare one to keep in
stock. Despite the shutdown of almost five months, we expect that
ASCE's sales volumes will only fall by a maximum of 15% as the
company has been selling its inventories during this time. It was
also able to produce rebars from the semi-finished goods in stock.
We estimate that EBITDA will be AMD5 billion-AMD6 billion, compared
with AMD10.9 billion in 2023. ASCE's leverage is expected to
increase, with FFO to debt falling to 5%-10% this year, compared
with 25.6% in 2023." According to company, it managed to meet all
its debt payments, including interest, and did not restructure any
of its outstanding issuances.

Stable operations at the existing facilities will be key to
recovery of credit metrics in 2025.   S&P said, "We expect that in
2025, both ASCE's EBITDA and leverage metrics could begin to
recover, if there are no further shutdowns. We forecast that EBITDA
could improve toward AMD8 billion-AMD9 billion, which should
support FFO to debt rising toward 20%. Further improvements will be
conditional on the ramp-up of the new facility, which could help
boost output as well as add some diversification of assets,
although reliance on a single arc furnace will remain. We therefore
forecast that EBITDA will further strengthen to AMD11 billion-AMD12
billion in 2026 while FFO to debt will rise to 30%. Although an
improvement, this is still well below ASCE's historical results, as
the company's EBITDA was AMD13 billion in 2022. The weak operating
environment, strong dram, and high scrap prices have all hit
profitability in recent years. In our base case, we incorporate a
moderate increase in scrap prices, which ASCE buys in the domestic
market, due to higher local steel production and therefore higher
competition for scrap."

S&P said, "The negative outlook indicates that we could lower our
rating on ASCE to the 'CCC' category if the company's liquidity
does not improve in the coming months as a result of better cash
flow generation. We expect that ASCE will gradually improve its
performance in 2025 from the trough in 2024, with EBITDA improving
toward AMD8 billion-AMD9 billion, compared with an estimated AMD5
billion-AMD6 billion this year. This should allow FFO to debt to
recover toward 20% in 2025, from an estimated 5%-10% this year."

Downside scenario

S&P could downgrade ASCE if its operating performance does not
improve, leading to lower cash flow generation, higher leverage,
and protracted liquidity deterioration. This could happen if the
company's output does not recover after the 2024 accident, leading
to further challenges in 2025.

Upside scenario

S&P would revise the outlook to stable if the company's liquidity
improves materially, resulting from better operating performance
through the ramp-up of the new facility and full recovery of the
old one.




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F R A N C E
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COLISEE GROUP: S&P Alters Outlook to Negative, Affirms 'B-' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook on France-based nursing
homes operator Colisee Group to negative from stable and affirmed
its 'B-' issuer credit rating on the company and its 'B-' issue
rating on Colisee's term loan B.

The negative outlook reflects that there is one in three chance
that S&P could downgrade the group in the next 12 months if the
group is unable to implement its turnaround plan in a timely
manner, resulting in a material deviation from our base-case
scenario.

S&P said, "The outlook revision reflects a material deviation of
Colisee's operating performance from our base-case scenario for
2024 and 2025, owing to exacerbated cost base pressures leading to
significant impairment in profitability and weakened credit
metrics. The group displayed an increasing revenue base of 4.5% for
the first nine months of 2024, thanks to improved occupancy rates
and further repricing of average daily rates across regions.
However, Colisee's reported operating performance has weakened
markedly, with a reported 20.5% EBITDAR margin compared with 24.8%
for the same period a year earlier. Profitability declines mostly
stemmed from incremental pressure on the cost base. Stress was
mostly on the staffing part related to an increasing use of
temporary workers to counter absenteeism, a change in perimeter,
and increased staff recruitment due to a lack of cost control and
inefficiency in operations, with overhiring in some nursing homes
resulting in staffing ratios well above organizational target. The
group faced strain on all other spending areas, with energy costs
increasing due to the end of subsidies, food costs increasing in
line with inflation, and overhead overruns. We now estimate S&P
Global Ratings-adjusted EBITDAR margins to land in the 17.0%-17.5%
range in 2024 compared with our 21.5%-22.0% in our previous
forecast. This translates into S&P Global Ratings-adjusted debt to
EBITDAR spiking to 11.0x in 2024, significantly weaker than our
previous expectations of 8.5x-9.0x. Therefore, we forecast FOCF
after leases to land to negative EUR125 million-negative EUR130
million in 2024 versus our previous expectations of negative EUR45
million-negative EUR50 million and our fixed-charge coverage ratio
to fall below 1.0x, compared with our 1.0x-1.5x expected for 2024.
For 2025, we now estimate S&P Global Ratings-adjusted EBITDAR
margins of 19.5%-20.0% compared with 22.5%-23.0% in our previous
forecast. This translates into S&P Global Ratings-adjusted debt to
EBITDAR at 9.0x-9.5x, significantly weaker than our previous
expectation of 8.0x-8.5x. Therefore, we forecast FOCF after leases
of negative EUR35 million-negative EUR40 million in 2025 versus our
previous expectations of FOCF after leases being flat or positive
of up to EUR5 million and our fixed-charge coverage ratio to fall
below 1.0x compared with 1.0x-1.5x expected for 2025."

Recent changes in management and the turnaround plan should enable
Colisee to streamline its operations . In October 2024, Arnaud
Marion was appointed the new CEO, bringing with him a track record
in restructuring; and Eric de Lencquesaing new CFO, bringing
experience in human capital-intensive businesses. They have been
nominated to implement the company's turnaround plan and put
Colisee on a path toward profitable growth. One-third of this plan
covers initiatives dedicated to maintaining ongoing sales momentum.
The group has enjoyed a good reputation on the market, especially
on quality of care, and the company intends to capitalize on it to
bolster its top line in the next two years. The remaining
two-thirds of the plan will be dedicated to cost initiatives and
tighter cost management. notably on staffing. Rents and central
cost reductions will help the company restore better operating
leverage. Also importantly, Colisee aims to focus more on stronger
cash management and reduce its burn rate, while maintaining good
liquidity, including notably tighter control on working capital and
additional sale and lease back transactions. S&P said, "The plan
should start bearing fruit from third-quarter 2025, but we see
potential execution risks related to the timing delivery that could
delay profitability rebound and credit metric improvement. We
expect nonrecurring costs of EUR35 million in 2024 and EUR15
million from 2025 onward, linked mainly to the implementation of
this plan."

S&P said, "We forecast a profitability rebound in 2025 thanks to
improved cost management and growth prospects, but there is very
limited room for underperformance of our base-case forecast. We
project top-line growth of 3.0%-4.0% in both 2025 and 2026
supported by occupancy improvement in all regions, thanks to
management's actions as per its business plan and reinforced
standard of care. Also, we anticipate further repricing of average
daily rates (ADRs) in all regions thanks to favorable indexation
trends in regulated areas, along with and strict discount policies
and new pricing grids. We anticipate the group will limit cost
inflation over the next 12-18 months thanks to initiatives, with
the reduction of temporary staff and the optimization of full-time
equivalent employees (FTEs) per resident while conserving quality
of care. Also, we assume optimization of central costs such as
energy or food to support the improvement, although ongoing
inflationary pressure will offset the effects in our view. As such,
we forecast S&P Global Ratings-adjusted EBITDAR margins improving
to 19.5%-21.5% in the next 12-18 months. This should result in an
adjusted debt-to-EBITDAR decreasing toward 9.0x-9.5x in 2025 and
improving thereafter. We also anticipate higher rental costs amid
sale-and-lease back operations in 2025 and 2026 and inflationary
pressure. However, this could be offset thanks to rent
renegotiations in France targeted by management. Therefore, we see
the fixed-charge coverage ratio improving slightly to 1.0x-1.2x
over 2025-2026, reflecting the increasing EBITDAR base and lower
pressure on rents and interest payments.

"We anticipate FOCF after leases to be widely negative. We forecast
it will reach negative EUR125 million-negative EUR130 million at
year-end 2024, compared with negative EUR41.7 million in 2023. This
mostly stems from the EBITDAR drop expected in 2024. We expect FOCF
to improve thanks to sale-and-lease-back operations and noncore
asset disposals that will result in cash outflow in 2025 and 2026.
Despite the profitability rebound, we anticipate Colisee will burn
cash in 2025 and 2026, with FOCF after leases remaining at negative
EUR30 million-negative EUR35 million in 2025, improving toward
breakeven in 2026, aided by asset disposals. Additionally, we
expect the group to reach EUR5 million working capital over the
forecast period underpinned by Colisee's action plan on cash
collection. We also anticipate low capital expenditure (capex) to
support recurring investments and new openings. In addition, we
expect overall cash interest payments of EUR175 million-EUR195
million over the next 12-18 months. The group is reasonably
protected against interest-rate fluctuations given 100% of its term
loan B is still hedged.

"In our ratings and outlook, we factor in the company's adequate
liquidity, with no near-term refinancing risks, which allow
sufficient time for management to turn around Colisee's operating
performance . Our assessment of the group's liquidity is
underpinned by the EUR29.6 million cash on the balance sheet (as of
Sept. 30, 2024) and EUR137.6 million available committed undrawn
RCF (out of EUR217.6 million original commitment). The company does
not face refinancing risks until 2027, when its EUR217.6 million
RCF (in May) and approximately EUR1.17 billion term loan B (in
November) are due. This affords management time to tackle operating
challenges. We also forecast in our base-case scenario
opportunistic sale and lease-backs that will help liquidity. Given
that less than 40% of the RCF is drawn, Colisee is not tested on
its covenants, and under our base-case scenario, we anticipate no
large RCF drawings or breaches should the covenant be tested.

"The negative outlook reflects that there is one in three chance
that we could downgrade Colisee Group in the next 12 months if the
group cannot efficiently implement its turnaround plan, resulting
in a material deviation from our base-case scenario. Although we
expect the group's operating performance to rebound in 2025
supported by the plan's effects, our negative outlook is not
incorporating additional risk beyond what we already do in our
base-case scenario regarding the execution of the plan and its
timing that could further slow its deleveraging trajectory.

"We could lower our rating if the company fails to meet our
base-case scenario with no expectation of recovery in second-half
2025 or additional risks beyond our base-case scenario arise. This
could result in the group's inability to embark on planned
deleveraging, leading us to view the capital structure as
unsustainable. Additionally, any large deviation from our base case
could put liquidity under pressure and could trigger a covenant
breach."

S&P could revise its outlook to stable over the next 12 months if
it sees Colisee's operating performance improving, with higher
EBITDA, showing a path to leverage reduction and improving FOCF.
This could stem from the successful implementation of the group's
new business plan focusing on streamlining cost base and bolstering
top line growth. A stable outlook would also require Colisee to
maintain adequate liquidity.


EOS FINCO: S&P Lowers Long-Term ICR to 'CCC+' on Elevated Leverage
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S&P Global Ratings lowered its long-term issuer credit and issue
ratings on France-based telecom provider Eos Finco S.a.r.l
(Netceed) and its debt of about EUR1.6 billion to 'CCC+' from
'B-'.

The negative outlook indicates that remaining challenging market
conditions for the deployment of fiber in Netceed's key end
markets, alongside no signs of a stabilization in demand from its
largest customer Altice, will most likely lead to continued weak
operating performance with elevated leverage and a further
deterioration of liquidity, despite preservation actions being
initiated.

The downgrade reflects continued weak operating performance over
the last 12 months that has led to elevated credit ratios and
tighter liquidity. S&P said, "We expect around negative 33%
like-for-like revenue growth in 2024 due to continued challenging
market conditions in all of its geographies and in particular the
U.S. Altice, its largest customer, contributed 20.1% of
first-nine-months 2024 revenue and remains a major contributor of
the underperformance representing around 40% of the total
compression. Due to Altice U.S. financial constraints, we see an
expected reduction in capex by around $200 million year over year,
with an additional $200 million expected in 2025. As a result of
the strong revenue decline, Netceed's reported EBITDA margin for
the first nine months of 2024 declined to 9.9% from 12.7% in 2023.
Despite EUR16.4 million of delivered cost savings linked to
procurement and strict cost controls, we do not anticipate a change
in this trend in the fourth quarter. Therefore, we forecast very
high leverage of about 19x (15.2x excluding PECs) compared with an
estimated 11.4x last year pro forma for the acquisition of Amady
and BTV (9.4x excluding PECs), while FOCF is significantly negative
at around EUR75 million. Although we forecast a positive inflow
from working capital of more than EUR30 million during 2024, high
debt servicing costs of around EUR190 million-EUR195 million
surpass EBITDA generation and hence significantly compress FOCF.
Due to the negative FOCF, we have also seen a worsening in
liquidity, despite a significant cash balance of above EUR80
million as the company gradually drew under its revolving credit
facility (RCF) of EUR230 million leaving around EUR30 million as of
Sept. 30 2024." The remaining EUR30 million outstanding under the
RCF was fully drawn down in December 2024 as a precautionary
measure. Besides, the headroom under the springing covenant, which
is set at 9.8x net leverage, is gradually reducing quarter over
quarter from more than 35% at the end of 2023 to close to 10% at
the end of Sept. 30 2024.

S&P said, "We continue to see short-term uncertainty and headwinds
in Netceed's key end markets. This despite unchanged structural
elements of growth on the back of fiber under penetration in its
geographies, anticipated higher activity levels coming from the
BEAD program in the U.S., and new growth prospects in datacenters
and artificial intelligence (AI)-related infrastructure buildup. We
forecast negative revenue growth of around 11.5% in 2025 as we do
not see a significant shift in the underlying market trends in each
of its geographies, while acknowledging Netceed's ability to win
new projects such as the U.S. Signal Meta project that expects to
add around $7 million of revenue. The majority of the
underperformance is expected to continue to come from the U.S. and
its largest customer Altice, while we continue to see further
declines in geographies like France and the Netherlands where fiber
penetration rates have reached high levels, with the U.K. business
continuing to see headwinds from market consolidation of Altnets.
In geographies where fiber penetration remains low, such as Germany
and Belgium, we do expect modest growth of up to 5% in the latter
part of 2025. The growth from the BEAD program that aims to expand
high-speed internet access to underserved and rural communities
across the U.S. is not anticipated to start flowing through before
the end of 2025 as administrative hurdles and complex approval
processes hinder the timely allocation of funds to state and local
governments. While the new administration in the U.S. adds
uncertainty to the allocation of the funds, given alternative
options apart from fiber deployment such as satellite broadband may
be considered. Therefore, we only factor in modest revenue growth
of up to 3% from 2026, in which year we also expect to see a
growing share of Netceed's revenue linked to data centers and AI
infrastructure-related equipment."

Management-led cost-saving initiatives and liquidity measures are
expected to mitigate the continued revenue weakness over the next
12 months. S&P said, "On the back of a strengthened management
team, we expect to see positive cash inflows of up to EUR100
million from further optimization of its working capital, including
EUR45 million from the initiation of factoring, while gaining
around EUR15 million from the sale and lease-back of non-core
assets. In addition, we forecast an EBITDA margin expansion of 140
basis points year over year in 2025 offsetting the revenue decline
and stabilizing S&P Global Ratings-adjusted EBITDA around EUR120
million-EUR125 million. The margin expansion is supported by the
ability of the new management to enforce strict cost controls, with
a full flow through of synergies during 2024 which we estimate to
add EUR20 million in 2025, partially offset by EUR15 million of
exceptional costs. In 2026, we forecast EBITDA to return to modest
growth of around EUR20 million on the back of revenue growth of up
to 3% and further cost initiatives supporting margin expansion,
while operating leverage will gradually improve." Nonetheless,
credit ratios are forecast to remain weak over the next two years,
with leverage above 17x (above 13x excluding PECs) and FFO interest
coverage below 1.0x.

While Netceed has no near-term maturities, a lack of sufficient
improvement in its operating performance could exacerbate its
tightening liquidity situation in light of the significant interest
burden, reflecting a high probability of an unsustainable capital
structure. The company has no near-term maturities, with the RCF
not due until six months before the term loans, due in 2029. S&P
said, "However, we forecast a worsening in liquidity over the next
12 months, with the fully drawn RCF and continued negative FOCF
near EUR40 million (net of the positive cash flow impact from
factoring), leaving very limited headroom for further operating
underperformance versus our base case and uncertainty around the
execution of cash flow enhancing measures. With a continued high
interest burden of at least EUR175 million per year, we believe
Netceed is vulnerable to nonpayment in the long term and depends on
favorable business, financial, and economic conditions to meet its
financial obligations and maintain sufficient liquidity."

The negative outlook indicates that remaining challenging market
conditions for the deployment of fiber in Netceed's key end
markets, alongside no signs of a stabilization in demand from its
largest customer Altice, will mostly likely lead to continued weak
operating performance with elevated leverage and a further
deterioration of liquidity, despite preservation actions being
initiated.

S&P said, "We could lower our rating if operating performance
remains subdued, leading to continuous significantly negative FOCF
and a further deterioration on liquidity with a near-term liquidity
crisis; or if we see heightened risk of default, including debt
exchange offers or similar restructurings that we consider to be
distressed exchanges.

"We could revise the outlook to stable if Netceed overperforms our
projections and demonstrates a path to sustained improvement in
FOCF and an improving liquidity and covenant position."




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G E R M A N Y
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TK ELEVATOR: Moody's Affirms 'B2' CFR & Alters Outlook to Stable
----------------------------------------------------------------
Moody's Ratings affirmed the B2 long term corporate family rating
and B2-PD probability of default rating of elevator and escalator
manufacturer TK Elevator Holdco GmbH (TK Elevator, TKE, or the
company). Concurrently, Moody's have also affirmed the B2 senior
secured instrument and senior secured bank credit facility ratings
of TK Elevator Midco GmbH and TK Elevator US Newco, Inc. and the
Caa1 ratings on the senior unsecured notes due 2028 issued by TKE.
The outlook on the three companies was changed to stable from
negative.

The rating action reflects:

-- Evidence of improved operating performance, anticipated to
continue, will result in progressively better credit metrics.

-- Moody's expect the roll-out of the EOX platform, contributions
from high-margin recurring service and modernization revenues,
continued cost base optimization and the progressive phasing out of
restructuring costs to result in Moody's-adjusted EBITDA of around
EUR1.5 billion and margin expansion to around 15.3% in the next 12
– 18 months.

-- As a result, Moody's expect further deleveraging in the next 12


-– 18 months, following the reduction in Moody's-adjusted
leverage to around 7.0x (preliminary September 30, 2024) from 10.2x
in 2022, and absent debt-funded acquisitions or dividends.

-- The reduced interest burden and extension of some of the
capital structure's maturity profile to 2030 (from 2027) as a
result of the refinancing transaction that took place this March.

-- The improvement in free cash flow (FCF) generation, which
turned positive in 2024, and expectations of around EUR60 million
FCF generation in the next 12 – 18 months.

RATINGS RATIONALE

The affirmation of TKE's ratings considers the benefits from TKE's
restructuring, operational excellence programmes, structural cuts
to its overhead costs and the progressive phasing out of
restructuring expenses, as well as the high and growing share of
recurring modernization and services revenues that have a higher
profitability compared to new installations and are less correlated
to economic cycles, and Moody's expectation of around EUR60 million
FCF generation in FY24/25.

The B2 rating also takes into account restructuring-driven costs
that constrain more meaningful EBITDA and FCF generation; low FCF /
debt; and still high leverage above 7.0x debt / EBITDA compared to
the initial de-leveraging trajectory that the company presented in
2020. The substantial amount of PIK notes, around EUR3.1 billion as
of September 30, 2024, outside the restricted group, which the
company may over time address as part of the refinancing of TKE's
capital structure, also weighs negatively on credit quality.

LIQUIDITY

TKE's liquidity is adequate. As of September 30, 2024, it is
supported by EUR373 million cash on balance sheet and EUR854
million availability under the company's EUR992 million senior
secured revolving credit facility (RCF) due January 2027. The RCF
is subject to a springing covenant, tested when drawings exceed
40%. Moody's do not expect the covenant to be tested, but if it
were TKE would have sufficient headroom.

OUTLOOK

The outlook is stable. Moody's expect TKE's EBITDA to increase
towards EUR1.5 billion. This will contribute to the expected
progressive deleveraging to well below 7.0x and improved FCF
generation. The stable outlook assumes metrics to remain in line
with Moody's expectations for the B2 rating, absent debt-funded
acquisitions or dividends that would result in increased leverage.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

Moody's could downgrade ratings, if TKE (1) failed to progressively
reduce debt to EBITDA to well below 7.0x by FYE24/25; (2) free cash
flow turned negative; (3) EBITA/interest expense fell below 1.5x;
or (4) liquidity started to deteriorate.

Upward pressure on the ratings appears currently unlikely,
considering TKE's still high leverage and the existence of a
substantial amount of PIK notes above the restricted financing
group, reflecting some risk of associated cash leakage over time.
However, TKE's ratings could be upgraded, if (1) debt to EBITDA
fell towards 5.5x; (2) FCF/debt improved to at least 5%; (3) EBITA
to interest expense sustainably exceeds 2.0x; and (4) TKE
established a prudent financial policy, as shown by excess cash
flow being applied to debt reduction and no material shareholder
distributions.

The principal methodology used in these ratings was Manufacturing
published in September 2021.

COMPANY PROFILE

TK Elevator Holdco GmbH, headquartered in Duesseldorf/Germany, is
an intermediate holding company of the group, a leading
manufacturer of elevators and escalators with a global presence in
more than 60 countries and more than 50,000 employees. The group
derived 38% of its fiscal 2024 revenue of around EUR9.3 billion
from new installations, while its more profitable services and
modernization segments accounted for 47% and 16% of revenue,
respectively. Company-adjusted EBITDA amounted to EUR1.47 billion
(15.8% margin).



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I R E L A N D
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INVESCO EURO XIV: S&P Assigns B- (sf) Rating to Class F Notes
-------------------------------------------------------------
S&P Global Ratings assigned its credit ratings to Invesco Euro CLO
XIV DAC's class A-loan and class X, A, B-1, B-2, C, D, E, and F
notes. The issuer has also issued unrated subordinated notes.

Under the transaction documents, the rated loan and notes will pay
quarterly interest unless a frequency switch event occurs, upon
which the loan and notes pay semiannually.

This transaction has a two-year non-call period, and the
portfolio's reinvestment period will end approximately five years
after closing.

The ratings assigned to the loan and notes reflect S&P's assessment
of:

-- The diversified collateral pool, which primarily comprises
broadly syndicated speculative-grade senior secured term loans and
bonds 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 loan and 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     2,799.30
  Default rate dispersion                                 473.82
  Weighted-average life (years)                             4.08
  Weighted-average life (years) including
  reinvestment period                                       5.07
  Obligor diversity measure                               109.42
  Industry diversity measure                               22.89
  Regional diversity measure                                1.20

  Transaction key metrics

  Total par amount (mil. EUR)                             400.00
  Defaulted assets (mil. EUR)                                  0
  Number of performing obligors                              122
  Portfolio weighted-average rating
  derived from our CDO evaluator                               B
  'CCC' category rated assets (%)                           1.00
  'AAA' target portfolio weighted-average recovery (%)     37.33
  Target weighted-average spread (net of floor, %)          4.09
  Target weighted-average coupon (%)                        4.70

Rating rationale

S&P said, "Our ratings reflect our assessment of the collateral
portfolio's credit quality, which has a weighted-average rating of
'B'. The portfolio primarily comprises broadly syndicated
speculative-grade senior secured term loans and senior secured
bonds on the effective date. Therefore, we 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 par amount,
the covenanted (modeled) weighted-average spread (3.90%), the
covenanted (modeled) weighted-average coupon (4.50%), the actual
portfolio weighted-average recovery rate for all the 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.

"The transaction's documented counterparty replacement and remedy
mechanisms adequately mitigate its exposure to counterparty risk
under our counterparty criteria.

"Following the application of our structured finance sovereign risk
criteria, we consider the transaction's exposure to country risk to
be limited at the assigned ratings, as the exposure to individual
sovereigns does not exceed the diversification thresholds outlined
in our criteria.

"The transaction's legal structure is bankruptcy remote, in line
with our legal criteria.

"The operational risk associated with key transaction parties (such
as the collateral manager) that provide an essential service to the
issuer is in line with our operational risk criteria.

"Our credit and cash flow analysis indicate that the available
credit enhancement for the class B-1 to E notes could withstand
stresses commensurate with higher ratings than those assigned.
However, as the CLO is still in its reinvestment phase, during
which the transaction's credit risk profile could deteriorate, we
capped our assigned ratings on the notes. The class A-loan and
class X, A, and F notes can withstand stresses commensurate with
the assigned ratings.

"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 to 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, including, but not limited to weapons or
firearms, illegal drugs or narcotics etc. 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."

Invesco Euro CLO XIV 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. Invesco CLO
Equity Fund 6 LLC manages the transaction.

  Ratings list
                     Amount
  Class   Rating*   (mil. EUR)   Sub (%)     Interest rate§

  X       AAA (sf)      2.00    N/A     Three/six-month EURIBOR
                                        plus 0.98%

  A       AAA (sf)    180.00    38.00   Three/six-month EURIBOR
                                        plus 1.34%

  A-loan  AAA (sf)     68.00    38.00   Three/six-month EURIBOR
                                        plus 1.34%

  B-1     AA (sf)      34.00    27.00   Three/six-month EURIBOR
                                        plus 2.20%

  B-2     AA (sf)      10.00    27.00   4.70%

  C       A (sf)       24.00    21.00   Three/six-month EURIBOR
                                        plus 2.70%

  D       BBB- (sf)    28.00    14.00   Three/six-month EURIBOR
                                        plus 3.90%

  E       BB- (sf)     16.00    10.00   Three/six-month EURIBOR
                                        plus 6.53%

  F       B- (sf)      13.00     6.75   Three/six-month EURIBOR
                                        plus 8.56%

  Sub. Notes  NR       28.90      N/A   N/A

*The ratings assigned to the class A loan and class X, A, B-1, and
B-2 notes address timely interest and ultimate principal payments.
The ratings assigned to the class C, D, E, and F 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.


PERMANENT TSB Group: S&P Withdraws 'BB+/B' Issuer Credit Ratings
----------------------------------------------------------------
S&P Global Ratings withdrew its 'BB+/B' and 'BBB+/A-2' long- and
short-term issuer credit ratings on Permanent TSB Group Holdings
PLC and Permanent TSB PLC, respectively, at the company's request.
The outlook was positive at the time of the withdrawal.


TIKEHAU CLO DAC: Moody's Ups Rating on EUR11MM Cl. F-R Notes to B1
------------------------------------------------------------------
Moody's Ratings has upgraded the ratings on the following notes
issued by Tikehau CLO DAC:

EUR19,250,000 Class C-R Notes due 2034, Upgraded to Aaa (sf);
previously on Jul 15, 2024 Upgraded to Aa3 (sf)

EUR24,500,000 Class D-R Notes due 2034, Upgraded to A1 (sf);
previously on Jul 15, 2024 Affirmed Baa2 (sf)

EUR17,500,000 Class E-R Notes due 2034, Upgraded to Ba1 (sf);
previously on Jul 15, 2024 Affirmed Ba2 (sf)

EUR11,000,000 Class F-R Notes due 2034, Upgraded to B1 (sf);
previously on Jul 15, 2024 Affirmed B3 (sf)

Moody's have also affirmed the ratings on the following notes:

EUR217,000,000 (Current outstanding amount EUR90,785,560) Class
A-R Notes due 2034, Affirmed Aaa (sf); previously on Jul 15, 2024
Affirmed Aaa (sf)

EUR21,750,000 Class B-1R Notes due 2034, Affirmed Aaa (sf);
previously on Jul 15, 2024 Upgraded to Aaa (sf)

EUR15,000,000 Class B-2R Notes due 2034, Affirmed Aaa (sf);
previously on Jul 15, 2024 Upgraded to Aaa (sf)

Tikehau CLO DAC, issued in July 2015 and refinanced in December
2017, and August 2021, is a collateralised loan obligation (CLO)
backed by a portfolio of mostly high-yield senior secured European
loans. The portfolio is managed by Tikehau Capital Europe Limited.
The transaction's reinvestment period ended in February 2024.

RATINGS RATIONALE

The rating upgrades on the Class C-R, Class D-R, Class E-R and
Class F-R notes are primarily a result of the significant
deleveraging of the Class A-R notes following amortisation of the
underlying portfolio since the last rating action in July 2024.

The affirmations on the ratings on the Class A-R, B-1R and B-2R
notes are primarily a result of the expected losses on the notes
remaining consistent with their current rating levels, after taking
into account the CLO's latest portfolio, its relevant structural
features and its actual over-collateralisation ratios.

The Class A-R notes have paid down by approximately EUR97.2 million
(44.8% of original balance) since the last rating action in July
2024 and EUR126.2 million (58.2%) since closing. As a result of the
deleveraging, over-collateralisation (OC) has increased across the
capital structure. According to the trustee report dated November
2024 [1] the Class A/B, Class C, Class D, Class E and Class F OC
ratios are reported at 172.20%, 149.62%, 128.21%, 116.33% and
109.92% compared to July 2024 [2] levels of 142.93%, 131.65%,
119.64%, 112.32% and 108.16%, respectively.

The deleveraging and OC improvements primarily resulted from high
prepayment rates of leveraged loans in the underlying portfolio.
Most of the prepaid proceeds have been applied to amortise the
liabilities. All else held equal, such deleveraging is generally a
positive credit driver for the CLO's rated liabilities.

Key model inputs:

The key model inputs Moody's use in Moody's analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on Moody's published methodology
and could differ from the trustee's reported numbers.

In Moody's base case, Moody's used the following assumptions:

Performing par and principal proceeds balance: EUR218.9m

Defaulted Securities: EUR2.6m

Diversity Score: 39

Weighted Average Rating Factor (WARF): 3030

Weighted Average Life (WAL): 3.43 years

Weighted Average Spread (WAS) (before accounting for Euribor
floors): 3.86%

Weighted Average Coupon (WAC): 4.62%

Weighted Average Recovery Rate (WARR): 43.77%

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on future
defaults is based primarily on the seniority of the assets in the
collateral pool. In each case, historical and market performance
and a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporate these default and recovery
characteristics of the collateral pool into Moody's cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analysing.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
May 2024.

Counterparty Exposure:

The rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank and swap providers,
using the methodology "Moody's Approach to Assessing Counterparty
Risks in Structured Finance" published in October 2024. Moody's
concluded the ratings of the notes are not constrained by these
risks.

Factors that would lead to an upgrade or downgrade of the ratings:

The rated notes' performance is subject to uncertainty. The notes'
performance is sensitive to the performance of the underlying
portfolio, which in turn depends on economic and credit conditions
that may change. The collateral manager's investment decisions and
management of the transaction will also affect the notes'
performance.

Additional uncertainty about performance is due to the following:

-- Portfolio amortisation: The main source of uncertainty in this
transaction is the pace of amortisation of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortisation could accelerate as a consequence of high loan
prepayment levels or collateral sales by the collateral manager or
be delayed by an increase in loan amend-and-extend restructurings.
Fast amortisation would usually benefit the ratings of the notes
beginning with the notes having the highest prepayment priority.

-- Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assume have
defaulted can result in volatility in the deal's
over-collateralisation levels. Further, the timing of recoveries
and the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's analysed
defaulted recoveries assuming the lower of the market price or the
recovery rate to account for potential volatility in market prices.
Recoveries higher than Moody's expectations would have a positive
impact on the notes' ratings.

In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
Moody's other analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.



=========
I T A L Y
=========

EOLO SPA: S&P Alters Outlook to Stable, Affirms 'B-' LT ICR
-----------------------------------------------------------
S&P Global Ratings revised its outlook on the long-term issuer
credit rating on Italy-based fixed wireless access (FWA) broadband
internet provider Eolo Spa to stable from negative and affirmed the
rating at 'B-'. At the same time, S&P affirmed its 'B-' issue-level
rating on the company's senior secured notes.

The stable outlook reflects S&P's expectation that, over the next
12 months, Eolo will increase its revenue and earnings thanks to
client base expansion. This will translate into S&P Global
Ratings-adjusted leverage of 5.5x-6.0x (excluding the preference
shares) and the reducing reported FOCF deficit after leases.

S&P said, "The outlook revision to stable reflects our expectation
of sound operating performance, a gradually reducing FOCF deficit,
and increased liquidity headroom. We expect Eolo to continue
posting good revenue and earnings growth over the next 12 months,
leveraging on its existing technologies (5 GHz and 28 GHz) and the
new partnership with Fastweb (26 GHz). This, along with somewhat
moderating growth capex due to lower network investments in
existing technologies, will lead to gradually falling FOCF
deficits. Combined with EUR50 million of the equity injection from
its financial sponsor (EUR30 million was injected in September
2024), this increases Eolo's liquidity leeway in our view.
Furthermore, the company recently raised bank financing to support
its liquidity needs for the next 12 months. We continue viewing
liquidity management as tighter than that for similarly rated
telecom companies, and the company's liquidity remains less than
adequate.

"In our updated forecast, Eolo's FOCF deficit will fall in fiscal
years 2025-2026 on somewhat moderating capex. Eolo will continue
pursuing its growth strategy in the very competitive and fragmented
Italian telecom market. The company will fund material investments
to support customer base expansion, customer retention, and upgrade
of its infrastructure for its 26 GHz technology. Its network capex
related to equipment and access for its 5 GHz and 28 GHz
technologies will moderate over the same period following recent
high investment. We therefore expect the company's annual capex
will moderate to about EUR100 million in 2025-2026, from EUR108
million in fiscal 2024 and EUR117 million in fiscal 2023. With
this, Eolo will decrease the FOCF deficit from our base-case
forecast from November 2023 by EUR5 million-EUR7 million to EUR37
million and EUR24 million (reported FOCF after leases) in 2025 and
2026, respectively.

"The rating reflects our expectation of broadly stable leverage at
5.5x-6.0x (excluding the preference shares) and EBITDA cash
interest coverage ratio staying comfortably above 2.0x. In our
updated base-case scenario, we expect S&P Global Ratings-adjusted
debt-to-EBITDA ratio of 6.2x-6.3x in 2025-2026, including the
equity injection (preference shares) from Partner Group. We treat
these instruments as debt-like, in line with our criteria, and
include it in our calculations of credit metrics. Excluding them,
leverage remains broadly at 5.4x-5.7x in fiscal years 2025-2026,
being somewhat below historical levels. We expect that Eolo's
growing EBITDA will offset the company's moderately increasing
debt. We anticipate that Eolo will continue raising debt to fund
its growth ambitions. This could include further drawings under the
company's EUR140 million revolving credit facility (RCF; about
EUR14 million was still available as of Sept. 30, 2024) and new
bank financing such as the recently obtained unsecured bank loan.
Furthermore, Eolo's creditworthiness is supported by its sound
EBITDA cash interest coverage of 3.5x-4.5x over 2025-2026, thanks
to the company's expected EBITDA growth and a large portion of its
interest payments being fixed.

"We expect Eolo will benefit from supportive operating trends and
expand its operations amid the competitive Italian telecom market
in fiscal 2025. We expect the company will continue sign new
clients and retain current ones, supported by its reliable and
competitive broadband internet offering with high speeds, and its
client retention efforts that contain churn rates. Eolo's client
base expanded to 691,000 in second-quarter fiscal 2025 from 652,000
in the same period a year earlier. The company continued to
increase the share of millimeter-wave FWA technology 28 GHz
technology among its total broadband contracts to about 50% in
fiscal 2024, which supports customer retention and the average
revenue per user (ARPU). In our view, the company's internet
offering is attractive in rural and suburban communities in Italy,
where it offers high internet speeds of up to 300 megabits per
second, which compares well with alternative technology in those
areas. Due to its strategic partnership with Fastweb, Eolo will be
able to offer up to 1 gigabit per second (Gbps) internet access
available in areas not reached by fiber, through the FWA
infrastructure based on millimeter waves and 5G standard.
Therefore, we think that Eolo will be able to compete with other
telecom players and maintain its fixed broadband market share,
which stood at about 3.5% for the Italian broadband market and
about 30% for the FWA market. We therefore expect the company will
increase its revenue by about 5% in fiscal years 2025-2026 mainly
because of expansion in its customer base; we assume a stable ARPU
in that time.

"The stable outlook reflects our expectation that Eolo will grow
its revenue and earnings thanks to client base expansion. This will
translate into leverage of 6.0x-6.5x (or 5.5x-6.0x excluding the
preference shares) and the falling reported FOCF deficit after
leases. The outlook also reflects our view that the company's
liquidity remains less than adequate and our expectation that Eolo
will fund its growth through additional drawings under its RCF,
unsecured bank financing, and the equity injection from its
financial sponsor."

S&P could lower its rating on Eolo if it views its credit metrics
and FOCF will deteriorate beyond its expectations over the next 12
months. This could occur if:

-- The company significantly underperforms our base-case scenario
due to increasing competition, lower subscriber growth, higher
churn or pricing pressure, and higher-than-expected capex
translating into weaker top line and EBITDA growth and higher FOCF
outflows than our expectations;

-- Its liquidity position deteriorates materially; or

-- S&P views its capital structure becoming unsustainable.

Upward rating potential is unlikely over the next 12 months. S&P
could, however, raise its rating if Eolo delivers
better-than-anticipated operating performance in fiscal years 2025
and 2026. This will translate into stronger EBITDA margin and FOCF
turned sustainably positive, and adjusted debt to EBITDA (excluding
the preference shares) returning comfortably below 5.5x. Upside
will also hinge on the company's liquidity headroom increasing such
that its sources will cover uses by at least 1.2x sustainably.




===================
L U X E M B O U R G
===================

ALTISOURCE SARL: Moody's Affirms 'Caa2' CFR, Outlook Stable
-----------------------------------------------------------
Moody's Ratings has affirmed Altisource S.a.r.l.'s (Altisource)
Caa2 corporate family rating and Caa2 long-term backed senior
secured term loan B facility (SSTL) rating. The outlook is stable.

On December 17, 2024, Altisource announced an agreement with
certain lenders of its $231 million SSTL to support and participate
in an exchange offer to receive a pro-rata portion of an up to $110
million first lien loan, an up to $50 million non-interest-bearing
exit fee, and common shares representing 63.5% of the pro forma
outstanding shares of Altisource immediately following the
transaction. The maturity of the new loan is April 30, 2030. For
lenders who instead wish to receive cash, Altisource will attempt
to replace such lenders, in which case such lenders will receive
cash equal to and no greater than 30% of the par value of their
existing SSTL.

As of December 17, holders representing 99% of the SSTL have
indicated their intension to participate in the exchange offer.
Altisource expects to consummate the exchange sometime in Q1 2025
following shareholder approval. Upon the closing of the exchange,
Moody's will likely view the exchange to be a distressed exchange
and a default.

RATINGS RATIONALE

The affirmation of Altisource's Caa2 ratings reflects the potential
exchange offer, the write-down of the SSTL lenders' loan and
Altisource's continued stressed financial profile.

Although foreclosure moratoriums ended in 2021, with unemployment
at low levels and home equity at record levels, foreclosure
activity remains at historically low levels, which negatively
impacts the demand for Altisource's servicing products that account
for around 80% of the company's revenues. With rates expected to
continue to remain elevated in 2025, Moody's only expect
originations to rise modestly in 2025 to around $1.8 to $2.0
trillion, up from an estimated $1.7 trillion in 2024.

While market conditions will remain constrained, Moody's expect
that Altisource's profitability will continue to improve over the
next 12-18 months, but remain well below pre-pandemic levels. The
increase in profitability will be driven by an increase in revenues
from new and existing clients and a reduction in expenses because
of the company's cost-cutting efforts. In addition, the proposed
exchange would reduce the company's interest expense an estimated
$18 million.

The completion of the company's exchange offer would be a modest
credit positive as it materially reduces the company's debt
outstanding, reduces the company's annual interest expense and
extends the maturity of the company's term debt to 2030.
Nonetheless, the company's financial profile will remain
constrained due to the expected continued stressed operating
conditions for the company's current services.

The Caa2 long-term senior secured bank credit facility rating is at
the same level as Altisource's Caa2 CFR and reflects the debt's
priority of claim and strength of asset coverage.

The stable outlook reflects that the potential loss to creditors is
in line with Altisource's current Caa2 ratings. In addition, the
stable outlook reflects Moody's view that profitability will
improve, but only modestly, over the next 12-18 months due to the
difficult operating conditions and will remain below historical
levels.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

Altisource's ratings could be upgraded upon the completion of the
exchange offer, if profitability and liquidity improve and leverage
declines, such that the company achieves and sustains debt to
adjusted EBITDA of 8.0x or less and adjusted EBITDA to cash
interest of 1.0x or more.

Altisource's ratings could be downgraded if the company's financial
performance remains very weak. In particular, the ratings could be
downgraded if profitability, liquidity and leverage do not improve
over the next 12-18 months; for example, annualized adjusted EBITDA
increasing and expecting to remain above $15 million and adjusted
EBITDA to cash interest of more than 0.75x. In addition, the
ratings could be downgraded if the company does not successfully
refinance its SSTL by the target date of the exchange.

The principal methodology used in these ratings was Finance
Companies published in July 2024.



=====================
N E T H E R L A N D S
=====================

KONINKLIJKE KPN: Moody's Withdraws 'Ba2' Junior Subordinate Rating
------------------------------------------------------------------
Moody's Ratings has withdrawn Koninklijke KPN N.V. 's ("KPN" or
"the company") ratings, including its Baa3 senior unsecured
ratings, its (P)Baa3 senior unsecured MTN program, its (P)Ba1
subordinated MTN program ratings, its Ba2 junior subordinate rating
and the Prime-3 (P-3) short-term issuer rating. The outlook prior
to the withdrawal was positive.

RATINGS RATIONALE

Moody's have decided to withdraw the rating(s) following a review
of the issuer's request to withdraw its rating(s).

COMPANY PROFILE

KPN is the leading integrated telecommunications provider in the
Netherlands. In 2023, KPN generated adjusted revenue from
continuing operations of EUR5.4 billion and adjusted EBITDA of
EUR2.4 billion.



=========
S P A I N
=========

GRIFOLS SA: Moody's Assigns B3 CFR, Rates New Sr. Secured Notes B2
------------------------------------------------------------------
Moody's Ratings has assigned a B3 corporate family rating (and a
B3-PD probability of default rating to Grifols S.A. (Grifols or the
company). Consequently, Moody's have assigned B2 instrument ratings
to the backed senior secured instruments issued by Grifols, Grifols
World Wide Operations Ltd. and Grifols World Wide Operations USA,
Inc. At the same time, Moody's have assigned Caa2 instrument
ratings to the backed senior unsecured instruments issued by
Grifols Escrow Issuer, S.A.U. The outlook on all ratings is
positive.

RATINGS RATIONALE

The B3 rating reflects the company's good market position and
vertical integration in human blood plasma-derived products; the
favourable fundamental demand drivers of the sector; the barriers
to entry in the industry because of regulation, customer loyalty
and capital intensity; and its good product safety track record.
Moody's also recognise improving profitability and good liquidity
which has recently been addressed with the issuance of EUR1.3
billion of senior secured notes due in 2030, fully repaying the
drawn amounts under the RCF and the EUR343m outstanding senior
secured bonds due in Feb-25. However, there is still around EUR3
billion of debt remaining due in 2027 that will need to be
addressed in due course.

At the same time the rating factors in Grifols' negative
Moody's-adjusted free cash flow (FCF) generation and high
Moody's-adjusted gross leverage, which stood at 7.2x at the end of
September 2024, both of which Moody's expect to improve over the
next 12-18 months.

Moody's forecast the company's top-line revenue growth to be in the
mid-single digit range in percentage terms over the next 12-18
months, mainly driven by Grifols leading position in the global
plasma-derived products and expected continued demand for these
products. Moody's expect Grifols to improve its profitability in
2024-25 due to revenue growth and operational leverage, reduced
donor fees, benefits of its efficiency programme, and roll-out and
market penetration of higher-margin products. With the repayment of
a portion of debt from the SRAAS proceeds and gradual recovery in
EBITDA, Moody's expect Grifols' Moody's adjusted leverage to
decline to around 7x by end 2024, from 9.9x in 2023, and to around
6.3x by end 2025. Moody's expect Grifols' interest coverage,
defined as Moody's-adjusted EBITA to interest expense, to be 2x
over the next 12-18 months.

Moody's anticipate Grifols' Moodys-adjusted FCF to be negative in
2024, driven by large interest costs, working capital outflow and
extraordinary capital spending mainly relating to commitments to
purchase collection centres built under the collaboration agreement
with ImmunoTek GH, LLC. From 2025, Moody's expect Moody's-adjusted
FCF will turn positive to around EUR50 million driven by lower
capital expenditures, reduced working capital outflows and
continued improvement in earnings. For 2024, Moody's assumed about
EUR150 million in working capital outflow (adjusted for factoring
utilisation) and capital expenditure of around EUR645 million,
including EUR256 million related to ImmunoTek payments. For 2025,
Moody's estimate working capital outflows of about EUR250 million
and capital expenditure of EUR525 million, which includes
extraordinary capital expense related to Immunotek.

Governance considerations were a key driver of Grifols' B3 rating.
Moody's recognise Grifols has made some positive changes to its
governance, including the recent separation of management from
shareholders, nomination of a non-executive Chairman of the Board
and completion of a new Executive Committee, which should improve
governance practices and management execution. However there is
still a limited track record of the company operating under this
framework.

LIQUIDITY

Moody's view Grifols' liquidity as good following the issuance of
EUR1.3 billion of senior secured notes due in 2030, which will be
used to repay the EUR343 million outstanding notes due in February
2025, along with cash, and repay the drawn portion of its revolving
credit facility (RCF), leaving a fully undrawn RCF. Grifols
partially extended its RCF to about 853.5 million which will mature
in May 2027. As of September 2024, Grifols had cash balances of
EUR645 million. The RCF is subject to a springing leverage covenant
(net debt/EBITDA at a maximum of 7x) that is activated if drawings
exceed 40%. Grifols' leverage covenant was 5.1x as of September 30,
2024.

The company will still need to address around EUR3 billion of debt
due in 2027, along with the extended RCF, in a timely manner.

OUTLOOK

The positive outlook reflects Moody's expectations that Grifols'
Moody's-adjusted FCF generation will continue to gradually recover
over the next 12-18 months and will turn positive, on a sustained
basis, driven by earnings growth, leading to a Moody's-adjusted
debt/EBITDA ratio improving to below 6.5x. The outlook also assumes
that Grifols is likely to implement and maintain more cautious
refinancing and liquidity policies going forward.

ESG CONSIDERATIONS

Grifols' G-4 score reflects the company's track record of
tolerating high leverage, and its complex and opaque organizational
structure which includes multiple partnerships, joint ventures and
related-party transactions. Moody's assessment also takes into
account the history of large debt-funded M&A, although Moody's
understand the focus going forward will be on organic growth,
internal innovation and optimisation, rather than large debt-funded
acquisitions. Moreover, Grifols has a weak track record in terms of
the predictability of its financial results. This was most recently
illustrated by unexpected cash outflows related to commitments to
acquire collection centres in the US and additional restructuring
costs, which will result in Grifols not generating positive free
cash flow during 2024. At the same time Moody's recognise that
Grifols has made some positive changes to its governance, including
the recent separation of management from shareholders, nomination
of a non-executive Chairman of the Board and completion of a new
Executive Committee, which should improve governance practices and
management execution. However there is still a limited track record
of the company operating under this framework.

Grifols' (S-4) score reflects its exposure to product safety risk,
litigation risk, high manufacturing compliance standards, and
exposure to regulatory changes which can affect product prices.
Grifols is notably exposed to product safety risk because of the
risk of contamination in the collection and fractionation of
plasma-derived medicines, although the company has set up stringent
control procedures.

STRUCTURAL CONSIDERATIONS

Grifols' capital structure comprises a mix of senior secured debt
instruments (term loans, RCF and notes) rated B2, one notch above
the CFR, and senior unsecured notes that are ranked behind the
senior secured debt in the waterfall and are rated Caa2, two
notches below the CFR. All these instruments benefit from
guarantees of subsidiaries representing at least 60% of Grifols'
EBITDA. The senior secured debt instruments benefit from
collateral, which includes among others certain tangible and
intangible assets and plasma inventories.

The B3-PD probability of default rating (PDR) is in line with the
B3 CFR, assuming a 50% corporate family recovery rate appropriate
for debt structures comprising bank and bond debt.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

Moody's could upgrade the rating if there is a continued
improvement to operating, financial performance, profitability and
cash flow generation. Quantitatively, this would translate into a
Moody's-adjusted gross leverage moving towards 6.5x,
Moody's-adjusted EBITA to interest expense towards 2.0x, and
Moody's-adjusted free cash flow turning positive; all on a
sustainable basis. Moreover, an upgrade would require a track
record of reduced governance risks, which includes greater
predictability of the company's financial performance, improved
liquidity management and prudent management of debt maturities.

Conversely, Moody's could downgrade Grifols' rating if its
liquidity weakens, which could notably happen if its FCF remains
negative. Also, if Grifols' Moody's-adjusted gross leverage
deteriorates above 7.5x or its Moody's-adjusted EBITA/interest
ratio declines well below 1.5x, this could lead to negative rating
pressure.

LIST OF AFFECTED RATINGS

Issuer: Grifols S.A.

Assignments:

LT Corporate Family Rating, Assigned B3

Probability of Default Rating, Assigned B3-PD

Backed Senior Secured Bank Credit Facility (Local Currency),
Assigned B2

Backed Senior Secured (Local Currency), Assigned B2

Outlook Actions:

Outlook, Assigned Positive

Issuer: Grifols World Wide Operations Ltd.

Assignments:

Backed Senior Secured Bank Credit Facility (Foreign Currency),
Assigned B2

Outlook Actions:

Outlook, Assigned Positive

Issuer: Grifols World Wide Operations USA, Inc.

Assignments:

Backed Senior Secured Bank Credit Facility (Local Currency),
Assigned B2

Outlook Actions:

Outlook, Assigned Positive

Issuer: Grifols Escrow Issuer, S.A.U.

Assignments:

Backed Senior Unsecured (Foreign Currency), Assigned Caa2

Backed Senior Unsecured (Local Currency), Assigned Caa2

Outlook Actions:

Outlook, Assigned Positive

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Medical
Products and Devices published in October 2023.

COMPANY PROFILE

Grifols, headquartered in Barcelona, Spain, is a global healthcare
company that is primarily focused on human blood plasma-derived
products and transfusion medicine. Grifols also supplies devices,
instruments and assays for clinical diagnostic laboratories. It
reported a company adjusted EBITDA of EUR1,697 million for the last
twelve months ended in September 2024.

INTERNATIONAL PARK: Moody's Affirms 'B3' CFR, Outlook Now Stable
----------------------------------------------------------------
Moody's Ratings has affirmed International Park Holdings B.V.'s
(PortAventura or the company) B3 long term corporate family rating
and its B3-PD probability of default rating. Concurrently, Moody's
also affirmed the B3 rating on the EUR640 million guaranteed senior
secured term loan maturing in December 2026. The outlook was
changed to stable from positive.

"The change in outlook to stable reflects company's
underperformance in 2024 compared to Moody's expectations when the
outlook was changed to positive in December 2023, as well as the
delay in expected leverage reduction. These developments mean
Moody's expect the company will remain adequately positioned within
the B3 category over the next twelve months rather than Moody's
previous expectations that an upgrade could by now have been
appropriate", says Elise Savoye, a Moody's Ratings VP- Senior
Analyst and lead analyst for PortAventura.

RATINGS RATIONALE

PortAventura's summer season in 2024 was weaker than Moody's
expected mainly due to: (1) softness in consumer confidence and
spending; (2) the impact on demand of floods in the Mediterranean
area of Spain; and (3) a greater than anticipated impact on
customer volumes from the large sports events in neighbouring
countries (UEFA Euro24 and Olympic Games). In the first nine months
of the year, in-park visitors decreased by around 7% compared to
the same period last year, although room nights increased by around
19% and PerCap (revenue from parks including tickets and in-park
consumption) remained broadly flat. Additionally, revenue from the
event business and hotels under management outside the resort
increased, although these activities carry lower margins.
Consequently, Moody's forecast a slight decrease in the company's
Moody's adjusted EBITDA from EUR122 million in 2023 to EUR118
million in 2024. Moody's forecast PortAventura's EBITDA to improve
in 2025 on the back of continued operational initiatives (optimised
pricing and staffing as well as continued extension of opening
periods), and the one-off nature of 2024 events which should yield
low to mid-single digit revenue increases, towards levels just
below EUR130 million.

The decrease in profitability in combination with higher interest
rates in 2024 than 2023 partly as a consequence of hedging run off,
means that Moody's expect the company's interest coverage ratios to
be weaker than previously. Moody's forecast Moody's-adjusted
EBITA/interest expense to decrease to 1.5x in 2024 from 2.0x in
2023. More positively, Moody's base case assumes an improvement
towards 2.0x in 2025 helped by the combination of improving
profitability and Moody's expectations of lower interest rates.

Moody's expect Moody's-adjusted leverage to remain broadly flat at
around 6.1x by the year-end 2024 (6.0x in 2023) and a moderate
decrease to 5.6x in 2025. Moody's expect the improving
profitability in 2025 and consequent leverage reduction to be
driven by operational improvements, including new revenue
management tools under development; the addition of one hotel under
management; and continued focus on improving profitability in F&B
and merchandise sales.

PortAventura's rating continues to reflect its established position
as a European family destination resort operator with a good
geographical location and well-invested parks; positive industry
fundamentals and high barriers to entry; and good track record of
growth with high margins.

At the same time the rating also reflects PortAventura's exposure
to discretionary spending and Moody's expectations for only
moderate GDP growth across Europe. The company's ratings also
continues to be constrained by its overall smaller scale and
single-site location compared to other rated peers as well as the
seasonal nature of its businesses.

LIQUIDITY

PortAventura's liquidity profile is adequate. As of September 2024,
it was supported by EUR26 million cash on balance sheet, and a
fully undrawn Revolving Credit Facility (RCF) of EUR52.5 million
due in June 2026. While Moody's expect the liquidity position to
weaken over the next two quarters as the company enters the low
season, Moody's view the overall liquidity position as sufficient
to support the business over the next 12-18 months. Moody's also
note that the company has a significant level of unencumbered
assets, which provides additional liquidity flexibility.

The company's RCF has one springing net leverage covenant of 8.75x
only tested when the drawn RCF represents more than 35% of the RCF
commitment. As of September the net leverage, as defined in the
company's debt documentation, stood at 4.7x, providing ample
headroom.

Moody's forecast Moody's-adjusted free cash flow (FCF) to remain
negative in 2024 at around EUR10 million (from EUR38 million
negative in 2023) and to turn positive at around EUR10 million in
2025 as capital spending and interest costs reduce.

STRUCTURAL CONSIDERATIONS

The EUR640 million term loan is rated in line with the CFR. The
instrument is senior secured and guaranteed by guarantors that
represent around 80% of the group's EBITDA and total assets. The
security consists of bank accounts and shares of the issuer and the
subsidiary guarantors. The RCF is secured by the same collateral as
the senior secured term loan. The B3-PD is at the same level as the
CFR, reflecting the use of a standard 50% recovery rate as is
customary for capital structures with first-lien bank loans and a
covenant-lite documentation.

OUTLOOK

The stable outlook reflects Moody's expectation that PortAventura
will experience sustained organic revenue growth at low to
mid-single-digit annual percentage rates over the next 12-18 months
and will generate positive FCF while maintaining an adequate
liquidity. The outlook is contingent upon the company's effective
and timely management of refinancing the TLB and RCF.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

Moody's could upgrade the company's ratings if it continues to
improve sales and earnings, reflected in Moody's adjusted leverage
reducing towards 5.0x on a sustained basis, Moody's adjusted
EBITA/Interest remains around 2.0x on a sustained basis and
Moody's-adjusted FCF turns materially positive. Maintaining an at
least adequate liquidity profile would also be a pre-requisite for
an upgrade.

Negative rating pressure could materialise if the company's
Moody's-adjusted leverage increases to above 6.5x on a sustained
basis; Moody's adjusted EBITA/Interest falls below 1.5x on a
sustained basis, or if FCF remains negative or its liquidity
weakens.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.

COMPANY PROFILE

Based in Vila-seca, Spain, PortAventura is a fully integrated
destination resort that consists of three main theme parks: the
PortAventura World Park, the PortAventura Caribe Aquatic Park, and
the Ferrari Land Park. These resorts are complemented by a
Convention Centre, six fully owned themed hotels and 3 hotels under
management. In the twelve months that ended September 2024, the
company generated revenue of around EUR311 million and
company-adjusted EBITDA of around EUR118 million. The company is
owned by funds advised by InvestIndustrial and KKR.



===========
S W E D E N
===========

HEIMSTADEN AB: S&P Cuts EUR300MM Sub. Perpetual Notes Rating to 'D'
-------------------------------------------------------------------
S&P Global Ratings has downgraded the EUR300 million subordinated
perpetual notes issued by Heimstaden AB (HST, B-/Negative/--) to
'D' from 'CC' following the company's announcement that it would
defer the coupon payment on the instrument. S&P expects the coupon
deferral to continue for more than 12 months, and S&P considers
this action as a missed interest payment and constituting a default
under its criteria, prompting the rating action.

In October 2021, HST issued EUR300 million subordinated perpetual
notes with a fixed annual coupon rate of 6.75%. The next coupon
payment is scheduled for Jan. 15, 2025. S&P said, "We note HST has
announced it would defer this payment and subsequent payments until
further notice to conserve cash and enhance its credit profile.
This decision is in line with our prior expectations regarding
coupon deferrals on euro bonds. The effective maturity of the euro
notes remains under 10 years; hence, we continue to assess the euro
subordinated perpetual notes as having no equity content."

The negative outlook on HST reflects our expectation of materially
weaker EBITDA interest and dividend coverage and tightening
liquidity headroom. S&P will closely monitor HST's liquidity over
the next few weeks and update its analysis and ratings
accordingly.




===========================
U N I T E D   K I N G D O M
===========================

PROJECTS LIMITED: Quantuma Advisory Named as Administrators
-----------------------------------------------------------
Projects Limited was placed into administration proceedings in the
High Court of Justice Business and Property Courts in Manchester,
Court Number: CR-2024-MAN-001557, and Jeremy Woodside and Rehan
Ahmed of Quantuma Advisory Limited were appointed as administrators
on Nov. 29, 2024.  

Projects Limited specializes in construction activities.

Its registered office is at 19 Vine Street, Hazel Grove, Stockport,
SK7 4JD and it is in the process of being changed to Quantuma
Advisory, 6th Floor, The Lexicon, 10- 12 Mount Street, Manchester,
M2 5NT.  Its principal trading address is at 19 Vine Street, Hazel
Grove, Stockport, SK7 4JS.

The administrators can be reached at:

            Jeremy Woodside
            Rehan Ahmed
            Quantuma Advisory Limited
            The Lexicon, 10 - 12 Mount Street
            Manchester, M2 5NT

Further details contact:

            Matt Wright
            Email: Matt.Wright@quantuma.com
            Tel No; 01615 189 612

TOWD POINT 2024: Moody's Assigns B2 Rating to GBP4.2MM Cl. F Notes
------------------------------------------------------------------
Moody's Ratings has assigned definitive ratings to Notes issued by
Towd Point Mortgage Funding 2024 - Granite 7 PLC:

GBP279.7M Class A1 Asset Backed Floating Rate Notes due April
2051, Definitive Rating Assigned Aaa (sf)

GBP16.9M Class B Asset Backed Floating Rate Notes due April 2051,
Definitive Rating Assigned Aa2 (sf)

GBP10.1M Class C Asset Backed Floating Rate Notes due April 2051,
Definitive Rating Assigned A2 (sf)

GBP8.4M Class D Asset Backed Floating Rate Notes due April 2051,
Definitive Rating Assigned Baa3 (sf)

GBP6.7M Class E Asset Backed Floating Rate Notes due April 2051,
Definitive Rating Assigned Ba2 (sf)

GBP4.2M Class F Asset Backed Floating Rate Notes due April 2051,
Definitive Rating Assigned B2 (sf)

GBP11.8M Class XA1 Asset Backed Floating Rate Notes due April
2051, Definitive Rating Assigned Ca (sf)

Moody's have not assigned ratings to the GBP11M Class Z Asset
Backed Notes due April 2051, GBP8.4M Class XA2 Asset Backed
Floating Rate Notes due April 2051, and the Class XB Certificates.

RATINGS RATIONALE

The subject transaction is a static cash securitisation of
residential mortgage loans (96.5% of the total portfolio) as well
as unsecured personal loans (3.5% of the total portfolio) extended
to borrowers located in the UK and originated by Landmark Mortgages
Limited ("Landmark", formerly NRAM plc and Northern Rock plc). This
transaction represents the eleventh securitisation that is rated by
us from this originator.

The total portfolio of assets amounts to approximately GBP336.9
million as of 30 November 2024 pool cutoff date. At closing, a 364
days revolving liquidity facility equal to 1.7% of the Class A1
Notes' outstanding balance will be provided by Bank of America N.A.
(Aa1/P-1; Aa1(cr)/P-1(cr)) acting through its London Branch and
will be available to pay senior fees and interest on the Class A1
Notes. It can be drawn in the event revenue and principal proceeds
as well as funds held in the Class A1 liquidity reserve fund are
insufficient. On the liquidity facility replacement date (April
2030), the facility will be reduced by the amounts held in the
Class A1 liquidity reserve fund and terminates if the Class A1
liquidity reserve fund is funded at its target. The credit
enhancement for the Class A1 Notes will be 17%.

The ratings are primarily based on the credit quality of the
portfolio, the structural features of the transaction and its legal
integrity.

The transaction benefits from various credit strengths such as (i)
a granular portfolio; (ii) 18.7 years seasoning of the pool being
significantly higher than the average of UK RMBS transactions;
(iii) a secured residential mortgage pool that has a low WA current
loan-to-indexed value ratio of 47.6% as calculated by us; and (iv)
a liquidity facility and a liquidity reserve fund that will provide
liquidity support for Class A1 Notes.

However, Moody's note that the transaction features some credit
weaknesses such as (i) high arrears, reflecting the non-conforming
nature of the borrowers (the unsecured consumer loans pool, 3.5% of
the total pool, has historically shown high level of arrears and
losses; the 90 days plus arrears of the secured pool are currently
standing at 16.2%); (ii) the majority of the portfolio is exposed
to floating rate loans and has shown a deterioration of performance
in the current interest rate environment and (iii) an unrated
servicer. Various mitigants have been included in the transaction
structure such as a back-up servicer facilitator, which is obliged
to appoint a back-up servicer, if necessary, an independent cash
manager and estimation language.

At closing, Landmark Mortgages Limited (Landmark, formerly NRAM
plc) is the legal title holder however this will be transferred to
Topaz Finance Limited (Topaz) during the transaction. The role of
servicer will also be transferred to Topaz. The migration includes
the notification to the borrower of the change in legal title and
servicing as well as the redirection of the payments to a new
collection account. This is expected to last a couple of months,
however no hard stop date is included in the documentation.

Moody's determined the portfolio lifetime expected loss of 3.6% and
MILAN Stressed Loss of 15.9% related to borrower receivables. The
expected loss captures Moody's expectations of performance
considering the current economic outlook, while the MILAN Stressed
Loss captures the loss Moody's expect the portfolio to suffer in
the event of a severe recession scenario. Expected loss and MILAN
Stressed Loss are parameters used by us to calibrate its lognormal
portfolio loss distribution curve and to associate a probability
with each potential future loss scenario in the ABSROM cash flow
model to rate RMBS.

Portfolio expected loss of 3.6%: This is higher than the UK
non-conforming RMBS sector average and is based on Moody's
assessment of the lifetime loss expectation for the pool taking
into account: (i) the collateral performance of the loans to date,
22.1% of the total pool (as of November 30, 2024) are 1 month or
more in arrears, (ii) the current macroeconomic environment in the
UK, and (iii) benchmarking with comparable transactions in the UK
non-conforming sector.

MILAN stressed loss for this pool is 15.9%, which is higher than
the UK non-conforming RMBS sector average and follows Moody's
assessment of the loan-by-loan information taking into account the
following key drivers: (i) the loan characteristics including 3.5%
of the total pool being together loans (3.0% still linked loans)
for which an unsecured loan balance is outstanding. These are loans
where the borrower obtained a secured and an unsecured loan, (ii)
the weighted average current loan-to-value of the secured mortgage
pool of 76.3%, (iii) the weighted average seasoning of 18.7 years
for the total pool, and (iv) the proportion of interest-only loans
(excluding part & part) in the secured mortgage pool of 65.2%.

The principal methodology used in these ratings was "Residential
Mortgage-Backed Securitizations" published in October 2024.

Moody's analysis undertaken at the initial assignment of ratings
for RMBS securities may focus on aspects that become less relevant
or typically remain unchanged during the surveillance stage. Please
see Residential Mortgage-Backed Securitizations methodology for
further information on Moody's analysis at the initial rating
assignment and the on-going surveillance in RMBS.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS:

Factors that would lead to an upgrade of the ratings include
significantly better than expected performance of the pool together
with an increase in credit enhancement of Notes.

Factors that would lead to a downgrade of the ratings include: (i)
increased counterparty risk leading to potential operational risk
due to a servicing or cash management interruptions or (ii)
economic conditions being worse than forecast resulting in higher
arrears and losses.

WHEEL BIDCO: Moody's Cuts CFR, GBP335M Sr Sec. Notes Rating to Caa1
-------------------------------------------------------------------
Moody's Ratings has downgraded the long-term corporate family
rating of Wheel Bidco Limited (PizzaExpress or the company) to Caa1
from B3 and the probability of default rating to Caa1-PD from
B3-PD. Concurrently, Moody's have downgraded the rating of the
company's GBP335 million backed senior secured notes to Caa1 from
B3 and the rating of the company's GBP30 million super senior
secured revolving credit facility (RCF) to B1 from Ba3. The outlook
remains negative.

RATINGS RATIONALE      

The rating action is driven by the upcoming refinancing risk for
PizzaExpress' bond due in July 2026, against a backdrop of lower
than expected operating performance this year.

The company's performance has been weaker than Moody's previously
expected. PizzaExpress reported a decrease in like-for-like covers
of 6.7% in the first nine months of 2024, relative to the same
period in the previous year, and the prospects for recovery remain
uncertain given the difficult market conditions.

PizzaExpress will also continue to face significant cost pressures,
exacerbated by the increase in national insurance contributions and
national living wage from April 2025, which Moody's expect will
offset the potential benefits from its cost-saving initiatives. As
a result, Moody's expect the company-adjusted EBITDA margin to
continue to decline over the next 12 to 18 months and
Moody's-adjusted EBIT interest coverage to stay at or below 0.8x.

PizzaExpress' free cash flow generation will also be constrained by
increased lease payments following the end of the rent reductions
agreed in the Company Voluntary Arrangement (CVA). Limited cash
flow generation may obstruct refurbishment plans and therefore
further decrease brand attractiveness and sales over time.

However, PizzaExpress' Caa1 CFR continues to benefit from the
company's long-established brand with scale and clear positioning
in the casual dining restaurant segment; fixed interest, which has
protected it from higher interest rates in the last two years,
although refinancing in 2026 is approaching; a degree of
diversification, supported by access to the delivery business; and
adequate liquidity.

LIQUIDITY

PizzaExpress has adequate liquidity for now, supported by GBP56
million in cash as of the end of September 2024, as well as GBP26
million of availability under the GBP30 million senior secured RCF
to support capital expenditures and working capital needs. The RCF
is subject to a leverage covenant, under which Moody's expect the
company to have significant headroom. However, Moody's note that
the company's debt maturity is approaching in 2026, which will
create pressure on liquidity if not addressed on a timely basis.

STRUCTURAL CONSIDERATIONS

The RCF's priority right of repayment in the event of a default,
coupled with its relatively modest size, drives the three-notch
uplift to its B1 rating compared with the Caa1 CFR and the rating
of the backed senior secured notes.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects Moody's expectation that
like-for-like revenue growth will remain subdued over the next 12
to 18 months, while margins will continue to be under pressure,
resulting in increased refinancing risk for the company's 2026 debt
maturities.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

The negative outlook indicates that an upgrade is unlikely in the
next 12 to 18 months. However, upward pressure on the ratings could
result from a sustained improvement in operating performance,
including like-for-like sales and EBITDA growth, such that
meaningful progress can be made in addressing the 2026 debt
maturities without losses to bondholders.

Downward pressure on the ratings could result from: a further
persistent decrease in EBITDA margins and contraction in
like-for-like sales over a prolonged period, leading to a further
deterioration of EBIT/interest expense; a substantial deterioration
in liquidity; or an increasing risk of a distressed exchange.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Restaurants
published in August 2021.

CORPORATE PROFILE

PizzaExpress is one of the largest operators in the UK casual
dining market in terms of the number of restaurants. It has 360
sites in the UK and Ireland, 29 directly operated international
restaurants and around 71 international restaurants operated by
franchisees. Additionally, the company has a licensed retail
business. In the 12 months that ended in September 2024, the
company generated revenue of GBP441 million and EBITDA (pre-IFRS
16) of GBP50 million.

The company was founded in 1965. Its three largest shareholders -
Bain Capital Credit, LP, Cyrus Capital Partners and Glendon
Opportunities — collectively own 61% of the business.


                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

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