/raid1/www/Hosts/bankrupt/TCREUR_Public/210716.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
Friday, July 16, 2021, Vol. 22, No. 136
Headlines
H U N G A R Y
[*] Moody's Takes Actions on 5 Hungarian Banks
I R E L A N D
CIFC HYDE PARK 2021: Fitch Rates Class F Tranche 'B-(EXP)'
HAYFIN EMERALD VII: S&P Assigns Prelim B- (sf) Rating on F Notes
JUBILEE CLO 2014-XIV: Moody's Affirms B2 Rating on Class F Notes
PBR RESTAURANTS: Restaurateur Loses Unfair Dismissal Case
I T A L Y
ICCREA BANCAIMPRESA: S&P Withdraws 'BB/B' Issuer Credit Ratings
[*] Moody's Takes Actions on 5 Italian Banks Amid Ratings Update
K A Z A K H S T A N
JUSAN GARANT: S&P Upgrades ICR to 'BB-' on Capital Buffers
L U X E M B O U R G
NETS TOPCO 3: Moody's Withdraws B2 Corporate Family Rating
N E T H E R L A N D S
NOBIAN HOLDING: S&P Assigns 'B' Rating, Outlook Stable
U N I T E D K I N G D O M
CONNECT BIDCO: S&P Alters Outlook to Stable, Affirms 'B+' Rating
FINSBURY SQUARE 2020-1: Fitch Affirms 'CCC' E Notes, Outlook Stable
FOOTBALL INDEX: Index Lab Reverses Decision to Stop Payments
NMC HEALTH: Administrators to Pursue Claims After DOCA Launch
PROVIDENT FINANCIAL: FCA Won't Formally Oppose Compensation Plan
RAIL CAPITAL: Fitch Rates USD300MM LPNs Final 'B', On Watch Neg.
TITAN HOMES: Seeks Buyer for Fairfields Residential Development
WRW CONSTRUCTION: Sunnyside Wellness Village to Push Through
X X X X X X X X
[*] BOOK REVIEW: Hospitals, Health and People
- - - - -
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H U N G A R Y
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[*] Moody's Takes Actions on 5 Hungarian Banks
----------------------------------------------
Moody's Investors Service has taken actions on five Hungarian banks
prompted by the agency's change of Hungary's Macro Profile to
"Moderate" from "Moderate-" as well as Moody's expectation of a
strengthening of the banks' financial fundamentals, mainly a
recovery of their profitability in 2021 on the back of sizeable
growth opportunities in the domestic economy and resilience of
their asset quality.
Specifically, Moody's upgraded:
- Budapest Bank Rt. (BB's) and MKB Bank Nyrt. (MKB's) long-term
deposit ratings to Ba1 from Ba2 with the positive outlook
maintained.
- Raiffeisen Bank Zrt. (RBH's) long term deposit ratings to Baa1
from Baa2. The outlook remains stable.
The agency also affirmed:
- Kereskedelmi & Hitel Bank Rt. (K&H's) Baa1 long-term deposit
ratings with a stable outlook and
- Erste Bank Hungary Zrt. (EBH's) Baa1 long-term deposit ratings
with a stable outlook.
A List of Affected Credit Ratings is available at
https://bit.ly/3wKtvte
RATINGS RATIONALE
Changed Macro Profile reflects improved operating environment for
Hungarian banks
The change of the Macro Profile reflects Moody's assessment that
the sizeable recovery of the Hungarian economy, with 3.7% real GDP
growth forecasted for 2021 and 5.2% for 2022, will offer Hungarian
banks significant loan growth opportunities supporting a strong
recovery of their profitability. The agency notes that the positive
macro-economic environment will also support the asset quality of
Hungarian banks, including the performance of the sizeable amount
of loans participating in payment moratoriums which have been
extended until the end of September 2021, exposing the system to
cliff risk.
The change of Hungary's Macro Profile to "Moderate" from
"Moderate-" positively affects the rated Hungarian banks' Baseline
Credit Assessments (BCA). The Macro Profile constitutes Moody's
assessment of the macroeconomic environment in which a bank
operates.
Bank specific considerations
Budapest Bank Rt. (BB)
The upgrade of BB's long-term deposit ratings to Ba1 from Ba2
reflects the upgrade of its BCA to ba3 from b1 and unchanged two
notches of rating uplift following the application of Moody's
Advanced Loss Given Failure (LGF) analysis. The agency's view of a
low likelihood of government support does not result in rating
uplift.
The upgrade of BB's BCA is driven by the significant improvement of
the bank's asset quality in recent years with the ratio of
non-performing loans (NPL) declining to 3.7% as of December 2020
from 8.45% in 2018 and Moody's expectations that the asset quality
deterioration owing to the pandemic will be manageable while
profitability will improve, supported by lower credit costs. The
bank's ba3 BCA continues to incorporate one negative notch
adjustment for corporate behavior capturing the significant
execution challenges associated with BB's planned merger with MKB
Bank Nyrt. and Takarek Bank Zrt (MTB, a group of cooperatives) that
is expected to be completed in 2023.
MKB Bank Nyrt. (MKB)
The upgrade of MKB's long-term deposit ratings to Ba1 from Ba2
reflects the upgrade of its BCA to ba3 from b1 and unchanged two
notches of rating uplift following the application of Moody's
Advanced Loss Given Failure (LGF) analysis. The agency's view of a
low likelihood of government support does not result in rating
uplift.
The upgrade of MKB's BCA is driven by the significant improvement
of the bank's asset quality in recent years with the NPL ratio
declining to 3.1% as of December 2020 from 8.79% in 2018 and
Moody's expectation that the asset quality deterioration owing to
the pandemic will be manageable. The bank's ba3 BCA continues to
incorporate one negative notch adjustment for corporate behavior
capturing the significant execution challenges associated with
MKB's planned merger with BB and MTB.
Raiffeisen Bank Zrt. (RBH)
The upgrade of RBH's long-term deposit ratings to Baa1 from Baa2
reflects: (1) the upgrade of its BCA to ba1 from ba2, (2) the
upgrade of its adjusted BCA to baa3 from ba1 following the agency's
unchanged assumptions of a high likelihood of support from its
parent bank, the Austrian, Raiffeisen Bank International AG (RBI,
deposits and senior debt A3 stable, BCA: baa3) as well as (3)
unchanged two notches of rating uplift following the application of
Moody's Advanced Loss Given Failure (LGF) analysis. The agency's
view of a low likelihood of government support does not result in
rating uplift.
The upgrade of RBH's BCA is driven by the significant improvement
of the bank's asset quality in recent years with the NPL ratio
declining to 3.9% as of December 2020 from 5.7% in 2018 and Moody's
expectations that the asset quality deterioration owing to the
pandemic will not be significant while the improved operating
environment as well as the bank's cost containment initiatives and
focus on higher yielding loan segments will support an improvement
of its profitability in 2021.
Erste Bank Hungary Zrt. (EBH)
The affirmation of EBH's long-term deposit ratings at Baa1
reflects: (1) the upgrade of its BCA to ba1 from ba2, (2) the
affirmation of its adjusted BCA at baa3 following the agency's
unchanged assumptions of a high likelihood of support from its
parent bank, the Austrian Erste Group Bank AG (Erste, deposits and
senior debt A2 stable, BCA: baa1) as well as (3) unchanged two
notches of rating uplift following the application of Moody's
Advanced Loss Given Failure (LGF) analysis. The agency's view of a
low likelihood of government support does not result in rating
uplift.
The upgrade of EBH's BCA is driven by the significant improvement
of the bank's asset quality in recent years, which the agency
expects will be relatively resilient to the pandemic, and the
recovery of its profitability. According to Moody's, EBH's NPL
ratio declined to 4.57% as of December 2020 from 5.07% in 2018. For
the first three months of 2021, EBH reported net profit of HUF15
billion translating to an annualized return on assets of roughly
1.5% compared to 0.5% for 2020. The bank's profit was supported
both by strong growth of its operating income as well as owing to
significantly lower credit costs than the year before.
Kereskedelmi & Hitel Bank Rt.
The affirmation of K&H's long-term deposit ratings at Baa1
reflects: (1) the upgrade of its BCA to ba1 from ba2, (2) the
affirmation of its Adjusted BCA at baa3 following the agency's
unchanged assumptions of a high likelihood of support from its
parent bank, the Belgian KBC Bank N.V. (KBC, deposits Aa3 stable,
BCA: baa1) as well as (3) unchanged two notches of rating uplift
following the application of Moody's Advanced Loss Given Failure
(LGF) analysis. The agency's view of a low likelihood of government
support does not result in rating uplift.
The upgrade of KBH's BCA is driven by the significant improvement
of the bank's asset quality in recent years and the expected
recovery of its profitability in 2021. K&H's NPL ratio declined to
2.4% as of December 2020 from 4.3% in 2018. For the first three
months of 2021, K&H reported net profit of HUF12.6 billion
translating to an annualized return on assets of roughly 1.0% up
from Moody's adjusted 0.7% in 2020. The improvement in the bank's
profitability was supported by strong revenue growth as well as a
provision reversals, namely the release of some Covid-related
provisioning overlays.
OUTLOOK
The outlook on the long-term deposit ratings of the foreign owned
banks --EBH, K&H and RBH--, is stable reflecting the agency's
expectation of broadly stable solvency and funding of the banks
over the next 12 to 18 months.
The positive outlook on the long-term deposit ratings of BB and MKB
reflects the potential upside either because of a strengthening in
their credit profile or as a result of increased volumes of more
subordinated instruments reducing the loss for depositors in case
of resolution. Further an increased likelihood of government
support following the execution of the merger, which will create a
bank with significantly increased systemic importance could also
result in upside ratings pressure.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The CRAs and CRRs of the foreign owned banks could be upgraded
following an upgrade of the rating of the Government of Hungary
(Baa3 positive) as they are currently capped at one and two notches
respectively above the sovereign rating.
The deposit ratings of the foreign owned banks could be upgraded
following an upgrade of their adjusted BCA or owing to increased
volumes of more subordinated debt reducing the loss for depositors
in case of resolution and an upgrade of the rating of the
Government of Hungary.
The CRAs, CRRs and deposit ratings of BB and MKB could be upgraded
due to an improvement in their credit profile reflected in an
upgrade of their BCA, or a higher assumption of government support.
The deposit ratings could also be upgraded due to increased volumes
of more subordinated debt reducing the loss in case of resolution
for depositors.
The deposit ratings of the foreign owned banks could be downgraded
following a significantly reduced likelihood or a material
weakening of their parent's capacity to provide support or, for
RBH, owing to a weakening of its own credit profile. The deposit
ratings could also be downgraded owing to changes in the banks'
liability structures leading to a higher loss in case of resolution
for depositors.
There is limited downside pressure for the foreign owned banks'
CRAs and CRRs, as they are currently constrained by the government
rating. A one notch downgrade of the deposit ratings would not
result in the downgrade of the CRAs or CRRs.
A downgrade of the ratings of BB and MKB is unlikely given the
positive outlook. The outlook could change to stable if there is
significant uncertainty or delays in the execution of the three-way
merger.
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I R E L A N D
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CIFC HYDE PARK 2021: Fitch Rates Class F Tranche 'B-(EXP)'
----------------------------------------------------------
Fitch Ratings has assigned CIFC Hyde Park European Funding 2021 DAC
expected ratings.
The assignment of final ratings is contingent on the receipt of
final documents being in line with the information received for the
expected ratings.
DEBT RATING
---- ------
CIFC Hyde Park European Funding 2021 DAC
Class A LT AAA(EXP)sf Expected Rating
Class B-1 LT AA(EXP)sf Expected Rating
Class B-2 LT AA(EXP)sf Expected Rating
Class C LT A(EXP)sf Expected Rating
Class D LT BBB-(EXP)sf Expected Rating
Class E LT BB-(EXP)sf Expected Rating
Class F LT B-(EXP)sf Expected Rating
Class Y LT NR(EXP)sf Expected Rating
Subordinated Note LT NR(EXP)sf Expected Rating
TRANSACTION SUMMARY
CIFC Hyde Park European Funding 2021 DAC is a securitisation of
mainly senior secured loans (at least 90%) with a component of
senior unsecured, mezzanine, and second-lien loans. The note
proceeds will be used to fund the identified portfolio with a
target par of EUR400 million. The portfolio is managed by CIFC
Asset Management Europe Ltd. The CLO envisages a 4.9-year
reinvestment period and a 9.2-year weighted average life (WAL).
KEY RATING DRIVERS
Average Portfolio Credit Quality (Neutral): Fitch assesses the
average credit quality of obligors in the 'B' category. The Fitch
weighted average rating factor (WARF) of the current portfolio is
32.8, lower than the indicative maximum Fitch WARF of 34.5.
Strong Recovery Expectation (Positive): At least 90% of the
portfolio will comprise senior secured obligations. Fitch views the
recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets. The Fitch weighted
average recovery rate (WARR) of the portfolio is 64.2%, higher than
the indicative minimum Fitch WARR of 62.25%.
Diversified Portfolio (Positive): The indicative top 10 obligors
limit and maximum fixed-rate asset limit is at 20% and 10%,
respectively. The transaction also includes various concentration
limits, including the maximum exposure to the three-largest
Fitch-defined industries in the portfolio at 40%. These covenants
ensure that the asset portfolio will not be exposed to excessive
concentration.
Portfolio Management (Neutral): The transaction has a 4.9-year
reinvestment period and includes reinvestment criteria similar to
those of other European transactions. Fitch's analysis is based on
a stressed-case portfolio with the aim of testing the robustness of
the transaction structure against its covenants and portfolio
guidelines.
Model Implied Ratings Deviation (Negative): The assigned ratings of
all classes are one notch above the model implied ratings (MIR).
Based on the transaction's stressed portfolio analysis, the notes
show a default-rate shortfall ranging from -1% to -3.3% across the
structure at the target ratings. The ratings are supported by the
significant default cushion against downgrade based on the
identified portfolio due to the notable cushion between the
covenants of the transaction and the portfolio's parameters.
All notes pass the assigned ratings based on the identified
portfolio that is used for surveillance. The class F notes'
deviation from the MIR reflects the agency's view that the tranche
displays a margin of safety given the indicative credit enhancement
level. The notes do not present a "real possibility of default",
which is the definition of 'CCC' in Fitch's Rating Definitions.
RATING SENSITIVITIES
This section provides insight into the model-implied sensitivities
the transaction faces when one assumption is modified, while
holding others equal. The modelling process uses the modification
of these variables to reflect asset performance in upside and
downside environments. The results below should only be considered
as one potential outcome, as the transaction is exposed to multiple
dynamic risk factors. It should not be used as an indicator of
possible future performance.
Factors that could, individually or collectively, lead to positive
rating action/upgrade:
-- A 25% reduction of the mean default rate (RDR) across all
ratings and a 25% increase in the recovery rate (RRR) across
all ratings will result in an upgrade of no more than five
notches across the structure, apart from the class A notes,
which are already at the highest rating on Fitch's scale and
cannot be upgraded.
-- At closing, Fitch will use a standardised stressed portfolio
(Fitch's stressed portfolio) that is customised to the
portfolio limits as specified in the transaction documents.
Even if the actual portfolio shows lower defaults and smaller
losses (at all rating levels) than Fitch's stressed portfolio
assumed at closing, an upgrade of the notes during the
reinvestment period is unlikely. This is because the portfolio
credit quality may still deteriorate, not only by natural
credit migration, but also because of reinvestment and that
the manager has the possibility to update the Fitch collateral
quality tests.
-- After the end of the reinvestment period, upgrades may occur
in the event of better-than-expected portfolio credit quality
and deal performance, leading to higher credit enhancement and
excess spread available to cover for losses in the remaining
portfolio. This is with the exception of the class A notes,
which are rated at the highest level on Fitch's scale and
cannot be upgraded.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- A 25% increase of the mean RDR across all ratings and a 25%
decrease of the RRR across all ratings will result in
downgrades of up to five notches across the structure.
-- Downgrades may occur if build-up of the notes' credit
enhancement following amortisation does not compensate for a
larger loss expectation than initially assumed due to
unexpectedly high levels of defaults and portfolio
deterioration.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings
are based on historical performance.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other nationally
recognised statistical rating organisations and/or European
securities and markets authority-registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk-presenting entities.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
HAYFIN EMERALD VII: S&P Assigns Prelim B- (sf) Rating on F Notes
----------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to
Hayfin Emerald CLO VII DAC's class A-1, A-2, B, C, D, E, and F
notes. At closing, the issuer will also issue unrated subordinated
notes.
Under the transaction documents, the rated notes will pay quarterly
interest unless there is a frequency switch event. Following this,
the notes will switch to semiannual payment.
The portfolio's reinvestment period will end approximately four and
a half years after closing, and the portfolio's weighted-average
life test will be approximately eight and half years after
closing.
The preliminary 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 (OC).
-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.
Portfolio Benchmarks
CURRENT
S&P Global Ratings weighted-average rating factor 2,845.96
Default rate dispersion 666.79
Weighted-average life (years) 5.09
Obligor diversity measure 107.02
Industry diversity measure 21.91
Regional diversity measure 1.22
Transaction Key Metrics
CURRENT
Total par amount (mil. EUR) 450.0
Defaulted assets (mil. EUR) 0
Number of performing obligors 126
Portfolio weighted-average rating
derived from S&P's CDO evaluator 'B'
'CCC' category rated assets (%) 2.50
'AAA' weighted-average recovery (%) 35.07
Covenanted weighted-average spread (%) 3.65
Reference weighted-average coupon (%) 4.00
Loss mitigation loan mechanics
Under the transaction documents, the issuer can purchase loss
mitigation loans, which are assets of an existing collateral
obligation held by the issuer offered in connection with the
obligation's bankruptcy, workout, or restructuring, to improve its
recovery value.
The purchase of loss mitigation loans is not subject to the
reinvestment criteria or the eligibility criteria. It receives no
credit in the principal balance definition. The cumulative exposure
to loss mitigation loans is limited to 10% of target par.
The issuer may purchase loss mitigation loans using either interest
proceeds, principal proceeds, or amounts in the collateral
enhancement account. The use of interest proceeds to purchase loss
mitigation loans are subject to (i) all the interest and par
coverage tests passing following the purchase, and (ii) the manager
determining there are sufficient interest proceeds to pay interest
on all the rated notes on the upcoming payment date. The use of
principal proceeds is subject to the transaction passing par
coverage tests and the manager having built sufficient excess par
in the transaction so that the principal collateral amount is equal
to or exceeds the portfolio's target par balance after the
reinvestment.
Rating rationale
S&P said, "Our preliminary ratings reflect our assessment of the
preliminary collateral portfolio's credit quality, which has a
weighted-average rating of 'B'. We consider that the portfolio will
primarily comprise broadly syndicated speculative-grade senior
secured term loans and senior secured bonds. 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 EUR450 million target par
amount, the covenanted weighted-average spread of 3.65%, the
reference weighted-average coupon of 4.00%, and actual
weighted-average recovery rates at each rating level. 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.
"At closing, we expect that the transaction's documented
counterparty replacement and remedy mechanisms will adequately
mitigate its exposure to counterparty risk under our current
counterparty criteria.
"Following the application of our structured finance sovereign risk
criteria, we consider the transaction's exposure to country risk to
be limited at the assigned preliminary ratings, as the exposure to
individual sovereigns does not exceed the diversification
thresholds outlined in our criteria.
"At closing, we consider that the transaction's legal structure
will be bankruptcy remote, in line with our legal criteria.
"Our credit and cash flow analysis indicate that the available
credit enhancement for the class B to D notes could withstand
stresses commensurate with higher rating levels than those we have
assigned. However, as the CLO is still in its reinvestment phase,
during which the transaction's credit risk profile could
deteriorate, we have capped our assigned preliminary ratings on the
notes.
"The class F notes' current break-even default rate (BDR) cushion
is negative at the 'B-' rating level. Based on the portfolio's
actual characteristics and additional overlaying factors, including
our long-term corporate default rates, 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 available credit enhancement for this class of notes is in
the same range as that of other CLOs that S&P rates and that have
recently been issued in Europe.
-- The portfolio's average credit quality is similar to that of
other recent CLOs.
-- S&P's model generated BDR at the 'B-' rating level of 26.22%
(for a portfolio with a weighted-average life of 5.09 years) versus
if it was to consider a long-term sustainable default rate of 3.1%
for 5.09 years, which would result in a portfolio default rate of
15.78%.
-- S&P also noted that the actual portfolio is generating higher
spreads and recoveries versus the covenanted thresholds that it has
modeled in its cash flow analysis.
-- If there is a one-in-two chance for this note to default.
-- If S&P envisions this tranche to default in the next 12-18
months.
S&P said, "Following this analysis, we consider that the available
credit enhancement for the class F notes is commensurate with the
preliminary 'B- (sf)' rating assigned.
"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe that our preliminary
ratings are commensurate with the available credit enhancement for
the class A-1, A-2, B, C, D, E, and F 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 to E notes
to five of the 10 hypothetical scenarios we looked at in our
publication, "How Credit Distress Due To COVID-19 Could Affect
European CLO Ratings," published on April 2, 2020. The results
shown in the chart below are based on the actual weighted-average
spread, coupon, and recoveries.
"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."
Hayfin Emerald CLO VII 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.
Hayfin Emerald Management LLP will manage the transaction.
Ratings List
CLASS PRELIM PRELIMINARY SUB(%) INTEREST RATE*
RATING AMOUNT
(MIL. EUR)
A-1 AAA (sf) 236.90 40.24 Three/six-month EURIBOR
plus 0.95%
A-2 AAA (sf) 32.00 40.24 Three/six-month EURIBOR
plus 1.20%§
B AA (sf) 54.00 28.24 Three/six-month EURIBOR
plus 1.65%
C A (sf) 27.20 22.20 Three/six-month EURIBOR
plus 2.15%
D BBB (sf) 32.40 15.00 Three/six-month EURIBOR
plus 3.30%
E BB- (sf) 23.90 9.69 Three/six-month EURIBOR
plus 6.06%
F B- (sf) 12.60 6.89 Three/six-month EURIBOR
plus 8.65%
Sub NR 38.40 N/A N/A
*The payment frequency switches to semiannual and the index
switches to six-month EURIBOR when a frequency switch event occurs.
§EURIBOR subject to a cap of 2.1%.
EURIBOR--Euro Interbank Offered Rate.
NR--Not rated.
N/A—-Not applicable.
JUBILEE CLO 2014-XIV: Moody's Affirms B2 Rating on Class F Notes
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the following
notes issued by Jubilee CLO 2014-XIV DAC:
EUR34,400,000 Class C-R Deferrable Mezzanine Floating Rate Notes
due 2028, Upgraded to Aaa (sf); previously on Dec 18, 2020 Upgraded
to Aa2 (sf)
EUR28,400,000 Class D-R Deferrable Mezzanine Floating Rate Notes
due 2028, Upgraded to Aa2 (sf); previously on Dec 18, 2020 Upgraded
to A2 (sf)
Moody's has also affirmed the ratings on the following notes:
EUR319,500,000 Class A-1-R Senior Secured Floating Rate Notes due
2028, Affirmed Aaa (sf); previously on Dec 18, 2020 Affirmed Aaa
(sf)
EUR5,000,000 Class A-2-R Senior Secured Fixed Rate Notes due 2028,
Affirmed Aaa (sf); previously on Dec 18, 2020 Affirmed Aaa (sf)
EUR51,200,000 Class B-1-R Senior Secured Floating Rate Notes due
2028, Affirmed Aaa (sf); previously on Dec 18, 2020 Upgraded to Aaa
(sf)
EUR12,800,000 Class B-2-R Senior Secured Fixed Rate Notes due
2028, Affirmed Aaa (sf); previously on Dec 18, 2020 Upgraded to Aaa
(sf)
EUR38,500,000 Class E Deferrable Junior Floating Rate Notes due
2028, Affirmed Ba1 (sf); previously on Dec 18, 2020 Upgraded to Ba1
(sf)
EUR18,900,000 Class F Deferrable Junior Floating Rate Notes due
2028, Affirmed B2 (sf); previously on Dec 18, 2020 Affirmed B2
(sf)
RATINGS RATIONALE
The rating upgrades on the Class C and D Notes are primarily a
result of the significant deleveraging of the senior notes
following amortisation of the underlying portfolio since the last
rating action in December 2020.
The affirmations on the ratings on the Class A1, A2, B1, B2, E and
F Notes reflect the expected losses of the notes continuing to
remain consistent with their current ratings after taking into
account the CLO's latest portfolio, its relevant structural
features and its actual over-collateralization (OC).
In aggregate, the Class A Notes have paid down by approximately
EUR82.4 million (25.4%) since the last rating action in December
2020 and EUR242.6 million (74.7%) since closing. Further, the
transaction's current [1] principal proceeds balance stands at
EUR50.3mm As a result of the deleveraging, over-collateralisation
(OC) has increased across the capital structure. According to the
trustee report dated May 2020 [1] the Class A/B, Class C, Class D,
Class E and Class F OC ratios are reported at 192.63%, 155.87%,
134.66%, 113.69% and 105.61% compared to November 2020 [2] levels
of 159.53%, 138.64%, 125.11%, 110.50% and 104.50% respectively.
In light of reinvestment restrictions during the amortisation
period, and therefore the limited ability to effect significant
changes to the current collateral pool, Moody's analysed the deal
assuming a higher likelihood that the collateral pool
characteristics would maintain an adequate buffer relative to
certain covenant requirements. In particular, Moody's assumed that
the deal will benefit from a shorter amortisation profile than it
had assumed at the last rating action in December 2020.
The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.
In its base case, Moody's used the following assumptions:
Performing par and principal proceeds balance: EUR227,951,319 and
EUR50,262,456
Defaulted Securities: EUR8,938,113
Diversity Score: 29
Weighted Average Rating Factor (WARF): 3130
Weighted Average Life (WAL): 3.3252 years
Weighted Average Spread (WAS) (before accounting for Euribor
floors): as per actual assets, beginning 3.4178%
Weighted Average Coupon (WAC): as per actual assets, beginning
4.25%
Weighted Average Recovery Rate (WARR): 46.433%
Par haircut in OC tests and interest diversion test: 0.6987%
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 incorporates these default and recovery
characteristics of the collateral pool into its 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
December 2020.
Counterparty Exposure:
The rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank using the methodology
"Moody's Approach to Assessing Counterparty Risks in Structured
Finance" published in May 2021. 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:
This transaction is subject to a high level of macroeconomic
uncertainty, which could negatively affect the ratings on the note,
in light of uncertainty about credit conditions in the general
economy. In particular, the length and severity of the economic and
credit shock precipitated by the global coronavirus pandemic will
have a significant impact on the performance of the securities. CLO
notes' performance may also be impacted either positively or
negatively by (1) the manager's investment strategy and behaviour
and (2) divergence in the legal interpretation of CDO documentation
by different transactional parties because of embedded
ambiguities.
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 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 assumes 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.
PBR RESTAURANTS: Restaurateur Loses Unfair Dismissal Case
---------------------------------------------------------
Gordon Deegan at The Irish Times reports that a Dublin
restaurateur, who once led a restaurant group with annual revenues
close to EUR5 million, has failed in an unfair dismissal case
against the firm that now runs his former food businesses.
Restaurateur Padraic Hanley's unfair dismissal action against PBR
Restaurants Ltd was dismissed by Workplace Relations Commission
(WRC) adjudicator Catherine Byrne, The Irish Times relates.
However, Ms. Byrne has ordered PBR Restaurants Ltd to pay Mr.
Hanley EUR5,500, the maximum amount of compensation, for not
providing him with a written contract of employment, The Irish
Times discloses.
Mr. Hanley was employed as general manager of the restructured
restaurant business from December 2019 until August 2020, The Irish
Times states.
Mr. Hanley had co-owned the business as a majority shareholder but
an examiner was appointed to PBR Restaurants Ltd by a High Court
judge in August 2019 due to cash flow pressures and other issues,
The Irish Times notes.
At the time of entering examinership, PBR Restaurants operated
Ouzos, Kelly & Coopers gastropub in Blackrock and Fish Shack in
Dún Laoghaire's East Pier, The Irish Times says.
In her report, Ms. Byrne said that when entering examinership, Mr.
Hanley's business was made up of five restaurants and a mobile
takeaway.
In December 2019, the business exited examinership with two of the
restaurants sold, The Irish Times recounts.
According to The Irish Times, as part of the restructuring process,
Mr. Hanley resigned as managing director while his shares were sold
to a holding company and he assumed the role of general manager,
reporting to the company's directors.
Ms. Byrne records that Mr. Hanley's salary from December 9th, 2019
was EUR71,500 while his salary prior to the examinership was
EUR97,500, The Irish Times discloses.
In March 2020, the business shut down due to Covid-19 and in
August, the company directors decided that the GM role was no
longer required and Mr. Hanley was made redundant, The Irish Times
relates.
Represented by well-known Dublin-based lawyer Gerald Kean in the
case, Mr. Hanley claimed his job was not made redundant and that
his dismissal was unfair, The Irish Times notes.
According to The Irish Times, PBR Restaurants Ltd argued that Mr
Hanley was unable to take an unfair dismissal action as his
employment dated only over eight months from December 2019 to
August 2020.
Employees need to be employed for one year to take an unfair
dismissal case and Mr. Hanley argued that he was employed by the
business since 2008.
Dismissing his action on the preliminary issue, Ms. Byrne found
that Mr. Hanley didn't have the requisite service to bring a
complaint under the Unfair Dismissals Act and that she didn't have
jurisdiction to adjudicate on the complaint, The Irish Times
relays.
=========
I T A L Y
=========
ICCREA BANCAIMPRESA: S&P Withdraws 'BB/B' Issuer Credit Ratings
---------------------------------------------------------------
S&P Global Ratings has withdrawn its 'BB' long-term and 'B'
short-term issuer credit ratings on Italy-based Iccrea BancaImpresa
SpA at the issuer's request. This follows the transfer of Iccrea
BancaImpresa's corporate lending activities to its parent company
Iccrea Banca SpA, thereby focusing its business on leasing
activities.
At the time of the withdrawal, there were no issue ratings on debt
instruments issued or guaranteed by Iccrea BancaImpresa. The issuer
credit ratings on Iccrea BancaImpresa were equal to those on Iccrea
Banca, reflecting S&P's view of Iccrea BancaImpresa's status as a
core subsidiary of its parent. The outlook on Iccrea BancaImpresa
at the time of withdrawal was negative, mirroring the outlook on
Iccrea Banca.
[*] Moody's Takes Actions on 5 Italian Banks Amid Ratings Update
----------------------------------------------------------------
Moody's Investors Service has taken rating actions on five Italian
banks. The rating actions were driven by revisions to Moody's
Advanced Loss Given Failure (Advanced LGF) framework, which is
applied to banks operating in jurisdictions with Operation
Resolution Regimes, following the publication of Moody's updated
Banks Methodology on July 9, 2021. This methodology is available at
this link: https://bit.ly/36yL3xB.
A List of Affected Credit Ratings is available at
https://bit.ly/36AO2pm
All other Italian banks were unaffected by the rating action and
the update of the Banks methodology.
RATINGS RATIONALE
The rating actions on five Italian banks were driven by revisions
to the Advanced Loss Given Failure framework within Moody's updated
Banks methodology.
In particular, ratings were impacted by revised notching guidance
table thresholds at lower levels of subordination and volume in the
liability structure, which have been applied to all Italian banks.
For Italian banks with overseas subsidiaries the rating actions
also reflect Moody's view that group-wide resolutions coordinated
in a unified manner will be more common following the requirement
to issue internal loss absorbing capital (ILAC), which could lead
to a transfer of losses from subsidiaries to parents, at the point
of failure. For banks that are subsidiaries of international
parents and subject to ILAC requirements the rating actions reflect
the required and expected issuance of such instruments. [The update
further includes the consideration of all Additional Tier 1 (AT1)
securities issued by banks domiciled in Italy in Moody's Advanced
LGF framework, eliminating the previous analytical distinction
between those high trigger instruments that were deemed to provide
equity-like absorption of losses before the point of failure and
other AT1 securities].
RATINGS RATIONALE FOR INDIVIDUAL BANKS
UniCredit S.p.A. (UniCredit)
Moody's downgraded the junior senior program ratings and junior
senior debt ratings of UniCredit to (P)Baa3 and Baa3 from (P)Baa2
and Baa2, respectively.
The action reflects Moody's expectation that UniCredit S.p.A will
be resolved in a unified manner alongside its main overseas
subsidiaries in accordance with the adoption of the single point of
entry resolution strategy. The rating agency assess that issuance
of loss absorbing instruments from the group's subsidiaries
domiciled in the European Union to the parent bank will result in
the transfer of losses to UniCredit S.p.A. in a resolution
scenario. The inclusion of the Tangible Banking Assets of the
subsidiaries within Moody's Advanced LGF analysis results in no
uplift from the bank's BCA from previously one notch, which is
reflective of higher losses that junior senior debt will incur
following a failure.
Intesa Sanpaolo S.p.A. (Intesa Sanpaolo)
Intesa Sanpaolo's junior senior unsecured debt ratings were
upgraded by one notch to Baa3 from Ba1.
Under Moody's Advanced LGF analysis they are rated at the level of
the bank's BCA, which better captures the risk characteristics of
this class of debt following the agency's revised view around the
distribution of losses post failure.
Moody's also affirmed the subordinated programme ratings and
subordinated debt ratings of Intesa Sanpaolo at (P)Ba1 and Ba1
respectively. Even though Moody's revised notching guidance table
indicates the bank's subordinated debt ratings at the level of the
BCA, a sustained level of subordination at the current level would
be necessary to warrant an upgrade of the current ratings.
The rating actions also reflect Moody's expectation that Intesa
Sanpaolo will be resolved in a unified manner alongside its main
overseas subsidiaries in accordance with the adoption of the single
point of entry resolution strategy. The rating agency assess that
issuance of loss absorbing instruments from the group's
subsidiaries domiciled in the European Union to the parent bank
will result in the transfer of losses to Intesa Sanpaolo in case of
failure. The inclusion of the Tangible Banking Assets of the
subsidiaries within Moody's Advanced Loss Given Failure analysis
has no impact on Intesa Sanpaolo's ratings despite the greater
volume of losses the bank's liabilities will be expected to absorb
following a failure.
Banco BPM S.p.A. (Banco BPM)
Moody's upgraded the long-term junior senior unsecured rating of
Banco BPM to Ba3 from B1.
Banco BPM's long-term junior senior rating was upgraded by one
notch to Ba3 from B1, as under Moody's Advanced LGF analysis it is
now rated in line with the BCA, which better captures the risk
characteristics of this class of debt following the agency's
revised view around the distribution of losses post failure.
Moody's also affirmed the senior unsecured debt ratings of Banco
BPM at Ba2. The affirmation follows Moody's revised notching
guidance table that maintains the bank's senior unsecured debt
ratings at one notch above the BCA; however the one-notch uplift
from the BCA is no longer based on Moody's forward-looking
expectation of material issuance of bail-in-able debt but rather on
the bank's current metrics.
Banca Nazionale Del Lavoro S.p.A. (BNL)
Moody's upgraded the long-term senior unsecured debt rating of BNL
to Baa2 from Baa3.
BNL's long-term senior unsecured debt and issuer ratings were
upgraded by one notch to Baa2 from Baa3, as under Moody's Advanced
LGF analysis they are now rated in line with the Adjusted BCA,
which better captures the risk characteristics of this class of
debt following the agency's revised view around the distribution of
losses post failure.
Credito Valtellinese S.p.A. (Creval)
Moody's upgraded the long-term senior unsecured debt rating of
Creval to Baa1 from Baa2.
Creval's long-term senior unsecured debt rating was upgraded by one
notch to Baa1 from Baa2, as under Moody's Advanced LGF analysis it
is now rated in line with the Adjusted BCA, which better captures
the risk characteristics of this class of debt following the
agency's revised view around the distribution of losses post
failure.
Creval's long-term senior unsecured debt rating benefits from one
notch of uplift stemming from Moody's Advanced Loss Given Failure
assessment (from -1 previously) owing to the inclusion of Creval
liabilities in the resolution perimeter of Credit Agricole Italia
following the acquisition in June 2021.
OUTLOOK
The outlook on the senior unsecured debt ratings of BNL and Banco
BPM is stable.
The rating outlooks of the other banks affected by the rating
action remain unchanged.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The affected long-term deposit ratings, senior unsecured debt
ratings, issuer ratings, CRRs and CR Assessments could be upgraded
following an improvement in the standalone creditworthiness of the
banks, or an upgrade of the relevant country sovereign debt
rating.
The long-term deposit, senior unsecured debt ratings, and issuer
ratings could also be upgraded following a significant increase in
the stock of more junior bail-in-able liabilities.
The affected ratings and assessments could be downgraded following
a substantial deterioration in the standalone creditworthiness of
the banks or following a significant reduction in the stock of
bail-in-able liabilities.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Banks
Methodology published in July 2021.
===================
K A Z A K H S T A N
===================
JUSAN GARANT: S&P Upgrades ICR to 'BB-' on Capital Buffers
----------------------------------------------------------
S&P Global Ratings raised its long-term insurer financial strength
and issuer credit ratings on Kazakhstan-based insurer Jusan Garant
to 'BB-' from 'B+'. The outlook is stable.
Simultaneously, S&P upgraded the Kazakhstan national scale rating
on Jusan Garant to 'kzA-' from 'kzBBB+'.
S&P said, "The upgrade reflects our view that Jusan Garant has
gradually reduced risk in its investment portfolio over the past
three years, and we expect it to sustainably manage its average
invested assets at 'BBB-' or above. The company also maintains
strong capital adequacy and an average competitive standing among
the top-10 largest players in Kazakhstan. As a result, we consider
that the insurer's financial strength is holistically more
comparable with 'BB-' rated peers, taking into account its market
share in the Kazakhstan property/casualty (P/C) sector and
still-evolving operating performance after strong growth in the
past two years.
"Jusan Garant's absolute capital grew by 10% to $28 million in the
last six months, above the $25 million mark that we previously saw
as the cap on the company's capital and earnings. This is because
we believe that companies with a smaller capital are more
susceptible to capital volatility in case of large losses. We
forecast that Jusan Garant will solidify its capital at about $30
million-$32 million in 2021-2022 due to retained earnings and zero
dividend policy in the next two years. At the same time, Jusan
Garant expanded its business by 70% in 2020 and doubled its
insurance portfolio in the first five months 2021 compared with the
same period in 2020. As a result, we forecast that capital adequacy
in 2021-2022 might come under pressure due to substantial insurance
premium growth, but will stabilize at a strong level.
"We view positively the company's consistent steps to improve the
average asset quality to investment grade. We note that
investment-grade instruments (rated 'BBB-' and above) comprise 60%
of invested assets, compared with less than 45% two years earlier.
"In our view, Jusan Garant's competitive position continues to
reflect the company's small premium base in absolute terms and
intense competition in Kazakhstan's insurance market. We take a
positive view of the company's cleanup of its insurance portfolio
in the past two to three years, which led to improvement of the net
loss ratio to 92% in the first five months of 2021, compared with a
five-year average of close to 100%. We anticipate that the company
will achieve underwriting profitability in 2021-2022 with a
combined (loss and expense) ratio close to 95% in 2021. We expect
that the combined ratio will gradually grow to 98% in 2022 due to
increasing loss ratios (close to 43% by end-2022). That said, we
expect that the company will be able to manage its cost base and
underwriting profitability in the next two years on the back of
expected 20% growth in gross premiums written in 2021 and 12%
growth in 2022 due to economic revival.
"Our ratings on Jusan Garant are based on the stand-alone business
and financial characteristics of the insurance company. The ratings
are currently not influenced by our credit opinion on the parent,
Jusan Bank. We believe the regulatory framework in Kazakhstan will
continue to prevent an outflow of funds from Jusan Garant to
support the bank parent. That said, we also believe that Jusan
Garant is strategically important to the bank's long-term strategy,
which envisages diversification of business within the group.
"The stable outlook reflects our expectation that Jusan Garant will
maintain its competitive standing together with good underwriting
performance, a sufficient capital cushion at least at the 'A'
level, and an average investment portfolio at 'BBB-'.
"We see a negative scenario as unlikely unless Jusan Garant
materially weakens its standards for asset allocation with average
invested assets falling to 'BB', or we see that losses or excessive
growth materially pressure the company's capital adequacy.
"We also see a positive scenario as unlikely at this stage,
considering rapid premium growth, still-modest capital size, and
comparability with bigger players. However, we could consider a
positive rating action in the medium term if we saw further
improvements in the company's competitive standing, sustainability
of the capital adequacy, and further investment allocation toward
investment-grade instruments."
Further movements will hinge on S&P's view of potential constraints
coming from the wider group's creditworthiness on Jusan Garant's
overall financial strength.
===================
L U X E M B O U R G
===================
NETS TOPCO 3: Moody's Withdraws B2 Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service has withdrawn all ratings of Nets Topco 3
S.a r.l., namely the B2 corporate family rating, the B2-PD
probability of default rating and the B1 rating on the guaranteed
senior secured credit facilities borrowed at Nets Holdco 4 ApS, an
indirect subsidiary of Nets. The outlook for both organizations has
been changed to Ratings Withdrawn from Ratings Under Review. This
concludes the review for upgrade initiated on November 30, 2020.
RATINGS RATIONALE
Moody's has decided to withdraw the ratings for its own business
reasons.
COMPANY PROFILE
Nets is a European payments company, with each of its brands
holding leading market positions in its core countries. The company
generated net revenue of EUR975 million and EBITDA of EUR130
million in 2020 (after deducting EUR214 million of expenses that
the company classifies as special items).
=====================
N E T H E R L A N D S
=====================
NOBIAN HOLDING: S&P Assigns 'B' Rating, Outlook Stable
------------------------------------------------------
S&P Global Ratings assigned 'B' ratings to Nobian's intermediate
parent company, Nobian Holding 2 BV, its EUR1,1090 million term
loan B (TLB), and EUR525 million other senior secured debt, with a
'3' recovery rating. The ratings are in line with the preliminary
ratings S&P assigned on June 14, 2021.
The stable outlook reflects S&P's view that Nobian will gradually
reduce debt to EBITDA from high levels following the transaction
thanks to resilient operating performance and improving EBITDA.
In May 2021, Nouryon announced its intention to spin out its base
chemicals business, Nobian, which now operates as a stand-alone
entity following the carve-out. As part of the transaction, Nobian
obtained:
-- EUR1,615 million in senior debt, including the EUR1,090 million
TLB and EUR525 million of other senior secured debt; and
-- A EUR200 million RCF.
The senior debt facilities, as of the closing date, include an
additional EUR20 million bilateral ancillary facility for trade
letters of credit and other bank guarantees in addition to the
EUR200 million RCF. As of July 1, 2021, Nouryon and Nobian
completed the transaction, which resulted in two separate
companies, operating as stand-alone entities. Nobian's board of
directors comprises members from Carlyle, GIC, and Nouryon's
executive leadership team.
S&P said, "We expect Nobian's S&P Global Ratings-adjusted debt to
EBITDA will reduce to 5.5x-6.0x in 2022 from about 6.0x-7.0x in
2021-2022, mostly thanks to expected resilient topline growth and
improving profitability. Our assessment of Nobian's financial risk
profile is mainly constrained by the company's private equity
ownership and high adjusted gross debt, which stood at about EUR1.8
billion at the transaction close, with an undrawn RCF. Our debt
adjustments at transaction closing include about EUR100 million of
leasing liabilities, EUR53 million of pension deficits, and other
adjustments for about EUR74 million related to asset retirement
obligations.
"We think Nobian's financial sponsor ownership limits the potential
for leverage reduction over the medium term.We do not deduct cash
from debt in our calculation, owing to Nobian's private-equity
ownership." In the medium term, the financial sponsor's commitment
to maintaining adjusted debt to EBITDA sustainably below 5.0x would
be necessary for an improved financial profile assessment.
Nobian has a solid market position as a European producer of salt,
chlor-alkali, and chloromethanes. Nobian is the leading producer of
salt for the chemical transformation market in Europe, holding the
No. 1 market position in this segment, with an overall market share
of about 43%. The company provides high-purity vacuum salt, which
we view as less cyclical and more profitable than rock salt used
for consumers and for de-icing. In the merchant market, Nobian
holds the No. 1 position for chlorin and No. 2 position for caustic
soda. Nobian holds the No. 1 market position, with a 36% share, for
methyl chloride, methylene chloride, and chloroform, which are
mostly used in the automotive, building construction, and
pharmaceutical markets. Nevertheless, S&P thinks the markets in
which Nobian operates are subject to high volatility and
competition, which could affect the company's market position,
given the commoditized nature of the products.
The full vertical integration and rather flexible cost base leads
to high profitability. Nobian benefits from its position at the
lower end of the cost curve for some of its raw materials and input
factors, thanks to its locations. This, combined with full vertical
integration, provides the company with good and resilient
profitability, leading to an EBITDA margin above 27% for 2020. The
company generates more than half the steam for its processes
internally, and it uses about 27% of its salt production as a key
input for the production of chlor-alkali, of which it uses about
22% for the production of chloromethanes. This unusual setup
significantly mitigates the volatility in raw material prices,
allows for higher margins, and ensures reliable operations. Nobian
also benefits from a rather flexible cost base, with about 60% of
operating expenses related to cost of goods sold and other variable
expenses.
Although Nobian benefits from long-standing relationship with its
clients, which provides significant business resilience, customer
concentration is high. Nobian has a strong logistics network, with
an integrated customer base, since all its sites are co-located
with its clients. This, combined with long-term contracts of up to
10 years, provides the company with good demand visibility and
resilient margins. S&P also notes that Nobian supplies more than
90% of its customers' industrial salt, chlor-alkali, and,
chloromethanes, which provides the company with some pricing power.
Somewhat counterbalancing these strengths, Nobian has high customer
concentration, with its top three customers accounting for more
than 45% of the salt business, 25% of chlor-alkali, and 36% of
chloromethanes.
S&P said, "We view Nobian's size and scope as a relative weakness,
which constrains our business risk assessment.With end-2020 revenue
at EUR938 million, we think Nobian's revenue size in its markets is
relatively small, compared with both European and global players.
For example, U.S.-based Olin Corp. generated about 4x Nobian's
revenue in chlor-alkali. Additionally, we believe Olin Corp. is
more diverse in terms of product offering and customer base." The
size of Nobian's salt business, in terms of revenue, is comparable
with SCHI Holding's (before the acquisition of Morton Salt from
K+S) and American Rock Salt.
Nobian has quite a limited product offering compared to larger
commodity chemicals companies, generating most of its sales in
Western Europe.Another rating constraint is the company's
concentration on one chemical value-chain and rather limited
product offering, with significant dependence on the Western
European economy. In 2020, Nobian generated almost 60% of its
revenue from chlor-alkali, followed by 23% from salt and 9% from
chloromethanes, with the remainder from energy production sold to
third parties. S&P thinks Nobian has more limited product portfolio
compared to other commodity chemicals producers and companies
operating in the same markets. Moreover, Nobian generates more than
95% of sales in Western Europe, with the Netherlands and Germany
accounting for 36% and 33% of total revenue, respectively, leading
to higher geographic concentration compared to peers.
S&P said, "We forecast adjusted EBITDA margins of 28%-32% in
2021-2022. This improvement on 2020 will stem from several
cost-saving initiatives and recovery from the negative effects of
the COVID-19 pandemic. Although we think some restructuring costs
will impair profitability following the carve-out, we expect Nobian
will have a lower cost base as a stand-alone entity. We view the
chlor-alkali industry's medium- to long-term fundamentals as
favorable despite weakness in 2019-2020, and we expect increasing
demand to greatly outpace supply additions over the next several
years. We expect this will contribute to sound topline growth that,
combined with lower costs, will lead to margins improving to about
27%-29% in 2021 and 31%-33% in 2022 from about 27% in 2020. We note
that this level of profitability is higher than the industry
average.
"We think high capital expenditure (capex) could constrain cash
flow generation. We expect adjusted free operating cash flow (FOCF)
to remain well above EUR50 million in 2021 and 2022 due to moderate
interest expenses and outflow from working capital. Nevertheless,
we note that capex is higher compared to the industry average, and
we expect it to increase to about 18% of revenue by 2023 from about
12% of revenue in 2021. We think cash flow generation could come
under pressure, especially during times of economic downturns, if
the company were to incur any additional unplanned capex.
"The stable outlook reflects our view that Nobian will show
resilient performance following the carve-out, supported by
improving profitability and good growth prospects in end-markets.
We expect adjusted debt to EBITDA will gradually decrease to about
5.5x-6.0x over the coming two years, and we anticipate that Nobian
will continue to generate positive FOCF. We do not net cash, so
EBITDA growth will drive the leverage reduction. Headroom at the
current rating level is relatively comfortable."
S&P could lower the ratings if:
-- Nobian's operating performance deteriorates, jeopardizing the
sustainability of its capital structure and resulting in a much
weaker operating performance and adjusted debt to EBITDA staying
above 7.0x;
-- The company generates negative FOCF in 2021 and 2022, without
prospects for a swift recovery; or
-- The company's liquidity deteriorates materially.
An upgrade is remote at this stage, given the high amount of debt
in the capital structure. That said, S&P could consider raising the
ratings if adjusted debt to EBITDA drops below 5x and the sponsor
commits to maintaining lower leverage.
===========================
U N I T E D K I N G D O M
===========================
CONNECT BIDCO: S&P Alters Outlook to Stable, Affirms 'B+' Rating
----------------------------------------------------------------
S&P Global Ratings revised its outlook on Connect Bidco Ltd.
(Inmarsat) to stable from negative and affirmed its 'B+' rating.
S&P said, "The stable outlook reflects our expectation that
Inmarsat will deliver significant underlying EBITDA growth and
positive underlying FOCF in 2021, and that potential debt-funded
acquisitions will not lead its adjusted gross leverage to rise
sustainably above 6x.
"After gradual stabilization in H2 2020 and Q1 2021, we forecast
strong underlying growth in the remainder of 2021. After a slower
underlying revenue decline of 3.8% in H2 2020, Inmarsat's
underlying revenue was flat in Q1 2021 and we expect a strong
improvement for the rest of the year." S&P forecasts overall
underlying revenue growth of 6%-7% in 2021, driven by:
-- Growth of 25%-30% in the aviation segment thanks to a strong
recovery in its core business jets revenue, partly offset by flat
commercial in-flight connectivity (IFC) revenue due to continued
subdued global commercial air traffic volumes;
-- Transition to about 2%-3% revenue growth in the maritime
segment after four consecutive years of decline, driven by about a
$10 million-$12 million contribution from contracts acquired from
Speedcast, and marginal growth in organic revenue thanks to reduced
churn and average revenue per user (ARPU) uplift as customers
migrate from narrowband to broadband; and
-- Continued strong revenue growth of about 6%-8% in the
government segment.
S&P said, "We also expect Inmarsat's underlying adjusted EBITDA
margin, which improved to 53.7% in 2020, will improve further to
54.5%-55.0% in 2021. This is based on realizing a full year of
savings from management actions taken last year and early this year
to reduce costs, including a 10% reduction in the total workforce.
Inmarsat's adjusted leverage and underlying FOCF is consistent with
its 'B+' rating. After S&P Global Ratings-adjusted gross leverage
of 5.4x in 2020, or 5.7x excluding a one-off $33.3 million payment
from Ligado, we now forecast a gross leverage reduction to
5.2x-5.4x in 2021 thanks to strong underlying EBITDA growth of
8%-9%. In addition, after underlying adjusted FOCF of $101 million
(2.7% of adjusted gross debt) in 2020, excluding $733.3 million
total payments from Ligado, we now forecast that Inmarsat's
underlying FOCF will reduce but nonetheless remain comfortably
positive in 2021. We assume about $50 million-$70 million
(1.5%-1.7% of adjusted gross debt) of underlying FOCF, excluding a
potential one-off tax settlement with HMRC." While we expect about
$120 million higher capex in 2021, largely driven by satellite
launches, we expect this will be partly offset by:
-- $55 million-$60 million higher underlying EBITDA; and
-- About $25 million lower interest payments, excluding potential
interest payable on the case with HMRC, partly thanks to a
repricing of the $1.75 billion term loan from LIBOR +4.5% to LIBOR
+3.5% in January.
S&P said, "We view these credit metrics as consistent with our 'B+'
rating on Inmarsat. Further possible upside to the rating was
precluded by Inmarsat's decision to make a $570 million
distribution to shareholders in Q1 2021 out of the $700 million
payment received from Ligado in Q4 2020.
"We expect further organic leverage reduction in 2022, but
underlying FOCF is likely to reduce further. We anticipate further
organic leverage reduction in 2022 thanks to another year of about
30% growth in the aviation segment as IFC revenues recover,
continued low-single-digit maritime growth, and mid-single-digit
government growth. However, we forecast that underlying FOCF will
reduce further to about $35 million-$50 million (about 0.9%-1.3% of
adjusted gross debt) in 2022, despite significant EBITDA growth."
This is due to a further step-up in reported capex to about $480
million-$500 million in 2022, from about $410 million-$420 million
in 2021, mostly driven by the timing of contractual payments
related to satellite launches. FOCF should be substantially
stronger from 2023 onward as capex moderates.
M&A could pose downside risks, although likely limited by
Inmarsat's financial policy
S&P said, "We expect bolt-on acquisitions to be part of Inmarsat's
growth strategy over the short to medium term, though these are
unlikely to materially affect its credit ratios. If Inmarsat also
executes a transformative acquisition, there is a risk that its S&P
Global Ratings-adjusted gross leverage could increase to 6x or
above. Nonetheless, we understand Inmarsat will likely partially
fund a transformative acquisition with equity and attempt to
quickly reduce its leverage thereafter to meet its long-term net
leverage target of below 4.0x, or below about 4.5x on an S&P Global
Ratings-adjusted gross basis.
"The stable outlook reflects our expectation that Inmarsat will
deliver significant underlying EBITDA growth and positive
underlying FOCF in 2021, and that potential debt-funded
acquisitions will not lead its adjusted gross leverage to rise
sustainably above 6x.
"We could lower our rating if Inmarsat's adjusted gross debt to
EBITDA increases sustainably above 6x, or its EBITDA cash interest
coverage falls to close to 2x. We think this could happen if
Inmarsat undertakes a transformative acquisition and faces
integration issues. A downgrade would also require Inmarsat's
underlying FOCF to be significantly negative, for example due to
weaker-than-expected performance in the maritime and aviation
divisions combined with high capex.
"We think an upgrade is unlikely over the next 12 months due to
Inmarsat's appetite for potential debt-funded acquisitions and its
limited FOCF relative to debt. Nonetheless we could raise the
rating if Inmarsat reduces its adjusted gross debt to EBITDA to
below 5x on a sustainable basis, with a financial policy commitment
to maintain this level of leverage. An upgrade would also require
Inmarsat to generate FOCF approaching 5% of debt, which would
likely require it to transition to lower capex."
FINSBURY SQUARE 2020-1: Fitch Affirms 'CCC' E Notes, Outlook Stable
-------------------------------------------------------------------
Fitch Ratings has revised Finsbury Square 2018-2's (FSQ 18-2) and
Finsbury Square 2020-1's (FSQ 20-1) Outlooks to Stable from
Negative. All ratings have been affirmed.
DEBT RATING PRIOR
---- ------ -----
Finsbury Square 2020-1 PLC
A XS2105015502 LT AAAsf Affirmed AAAsf
B XS2105015338 LT AAsf Affirmed AAsf
C XS2105014950 LT A+sf Affirmed A+sf
D XS2105014794 LT A+sf Affirmed A+sf
E XS2105014281 LT CCCsf Affirmed CCCsf
X XS2105013556 LT BB+sf Affirmed BB+sf
Finsbury Square 2018-2 plc
Class A XS1898246530 LT AAAsf Affirmed AAAsf
Class B XS1898246704 LT AA+sf Affirmed AA+sf
Class C XS1898246969 LT Asf Affirmed Asf
Class D XS1898247009 LT A-sf Affirmed A-sf
Class E XS1898247348 LT CCCsf Affirmed CCCsf
TRANSACTION SUMMARY
The transactions are securitisations of prime owner-occupied (OO)
and buy-to-let (BTL) mortgages originated by Kensington Mortgage
Company in the UK.
KEY RATING DRIVERS
Credit Enhancement Mitigates Rising Arrears
Each of the transactions has experienced increasing arrears over
approximately the last 12 months. Higher levels of arrears
contribute to a higher weighted average foreclosure frequency.
However, this is mitigated by increase in credit enhancement for
both transactions since the last rating action in August 2020. The
Outlook change to Stable reflects Fitch's expectations that any
further increase in arrears would be offset by the credit
enhancement available to the notes, which will continue to increase
through time.
Product Switches Limited
As part of cashflow modelling, Fitch incorporates product switches
occurring up to the level of the documented maximum permissible in
each transaction. This reduces the amount of revenue each
transaction is expected to receive as loan interest rates assumed
for product switch loans are lower than the present interest rates.
In practice the number of product switches retained in each pool
has been at a much lower level and further product switches are
increasingly unlikely as the step-up date in each transaction
approaches (to be retained as collateral, loans must have product
switched before this date). As a result the level of revenue
reduction due to product switches will be less severe than what is
modelled, creating some rating headroom as the step-up date
approaches.
Payment Holidays Reduced
The number of loans on payment holidays in each of these
transactions has decreased considerably since mid-2020. Loans on
payment holiday made up less than 2% of each transaction as at
end-May 2021; this is not expected to increase given payment
holiday applications related to Covid-19 are no longer possible.
The reduction in the level of payment holidays is credit-positive
as available revenues at each payment date are higher than at the
time of the last rating actions (relative to collateral balance).
This is relevant in particular for supporting the rating of the
class X notes that remain outstanding in FSQ 20-1, given these
notes receive principal via available excess spread in the revenue
priority of payments. Fitch caps excess spread notes' ratings, and
therefore the class X notes here at 'BB+sf'.
Coronavirus-related Assumptions
Fitch applied coronavirus assumptions to the mortgage portfolios
(see EMEA RMBS: Criteria Assumptions Updated due to Impact of the
Coronavirus Pandemic). The combined application of revised 'Bsf'
representative pool weighted average foreclosure frequency (WAFF)
and revised rating multiples resulted in a 'Bsf' multiple to the
current FF assumptions of 1.1x for the OO sub-pools in each
transaction and 1.2x for the BTL sub-pools and no impact at 'AAAsf'
for any sub-pool. The coronavirus assumptions are more modest for
higher rating levels as the corresponding rating assumptions are
already meant to withstand more severe shocks.
RATING SENSITIVITIES
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- The transactions' performance may be affected by changes in
market conditions and economic environment. Weakening asset
performance is strongly correlated to increasing levels of
delinquencies and defaults that could reduce credit
enhancement available to the notes.
-- Additionally, unanticipated declines in recoveries could also
result in lower net proceeds, which may make certain note
ratings susceptible to negative rating actions depending on
the extent of the decline in recoveries. Fitch conducts
sensitivity analyses by stressing both a transaction's base
case FF and recovery rate (RR) assumptions, and examining the
rating implications on all classes of issued notes. A 15%
increase in WAFF and a 15% decrease in WARR indicate a
downgrade of up to two notches rating i in FSQ 18-2 and up to
three notches in FSQ 20-1.
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- Stable to improved asset performance driven by stable
delinquencies and defaults would lead to increasing credit
enhancement levels and, potentially, upgrades. A decrease in
WAFF of 15% and an increase in WARR of 15% indicate for the
subordinated notes an upgrade of up to two notches in FSQ 18-2
and FSQ 20-2.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings
are based on historical performance.
CRITERIA VARIATION
Kensington may choose to lend to self-employed individuals with
only one year's income verification completed. Fitch believes this
practice is less conservative than that at other prime lenders. For
OO mortgages, Fitch applied an increase of 1.3x to the FF for
self-employed borrowers with verified income instead of the 1.2x
increase, as per its criteria. Excluding the criteria variation
results in no rating change to the notes.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. Fitch has not reviewed the results of
any third- party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.
Prior to the transactions' closing, 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.
Prior to the transactions' closing, Fitch conducted a review of a
small targeted sample of the originator's origination files and
found the information contained in the reviewed files to be
adequately consistent with the originator's policies and practices
and the other information provided to the agency about the asset
portfolio.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG CONSIDERATIONS
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.
FOOTBALL INDEX: Index Lab Reverses Decision to Stop Payments
------------------------------------------------------------
Simon Neville at Independent reports that Index Labs, a company
which was supposed to distribute funds to customers of Football
Index who lost out when the firm went bust in March, has reversed a
decision to stop making payments.
Last month, a judge approved payments to customers of Jersey-based
BetIndex's service, where investors could bet on the success of
footballers, Independent relates.
According to Independent, on July 12 Index Labs said it would stop
working with administrators for the bust firm but reversed its
position within 24 hours.
NMC HEALTH: Administrators to Pursue Claims After DOCA Launch
-------------------------------------------------------------
Michael Fahy at The National reports that the joint administrators
of UAE healthcare group NMC Health have said they intend to begin
legal action in a bid to recover part of the US$4 billion that
disappeared from the company.
According to The National, Richard Fleming, joint administrator
from Alvarez & Marsal, said cases are expected to be filed once the
group's restructuring through a Deeds of Company Arrangement, or
Doca, is complete.
A Doca refers to binding arrangement between a company and its
creditors that details how the former's assets and operations are
to be dealt with.
"Investigations on the cause and facilitation of the fraud, which
was catalyst to the crisis that befell NMC in February 2020, is
ongoing and progressing at pace," The National quotes Mr. Fleming
as saying.
"Following the formal launch of the Doca, the joint administrators
intend to start commencing legal actions."
NMC Health was placed into administration in April last year, The
National recounts. Problems at the UAE's biggest healthcare group
first emerged in December 2019 after activist investor Muddy Waters
issued a report claiming the company had under-reported its debts
and inflated the value of its assets, The National discloses.
That triggered an investigation that uncovered more than US$4.4
billion of previously unreported debt, The National notes. In
total, US$6.4 billion worth of claims were filed with
administrators from hundreds of creditors, The National states.
The proposed restructuring involves bringing the company's debt
back down to a more manageable level of US$2.25 billion, with
creditors receiving equity stakes in return for part of the
$4bn-plus written off, according to The National.
The administrators said last month the deal had received "firm
commitments" from most creditors, with companies representing 99%
of the allocated value in the restructured group acceding to
proposals, The National relays.
However, it is understood that Dubai Islamic Bank, which is owed
about US$425 million by NMC Health and is involved in ongoing legal
disputes with NMC entities in onshore Dubai and Sharjah courts, has
not agreed to the restructuring, The National relates.
In a progress report filed in May, NMC Health's administrators said
they were continuing "to progress the investigation and formulation
of claims" in a bid to pursue some of the missing money, The
National notes.
PROVIDENT FINANCIAL: FCA Won't Formally Oppose Compensation Plan
----------------------------------------------------------------
Muvija M in Bengaluru at Reuters reports that Britain's financial
watchdog will not formally oppose Provident's compensation plan for
its doorstep lending unit in court even as it voiced concerns that
consumers were being short-changed.
The Financial Conduct Authority (FCA), which successfully argued
for a similar proposal by guarantor lender Amigo to be rejected in
London's High Court in May, said in a statement its decision to not
oppose Provident's plan was because the only likely alternative was
the insolvency of the business, Reuters relates.
Separately, Provident acknowledged the concerns which were
expressed in a letter to it earlier in the week, and said the GBP50
million (US$69 million) proposal was "fair and in the best
interests of Consumer Credit Division (CCD) customers", Reuters
notes.
According to Reuters, Provident said if the court were to reject
the scheme, it would withdraw financial support for CCD, which
would then be expected to start insolvency proceedings, adding
customers would receive no redress in that scenario.
The FCA, which concluded that the plan was inconsistent with its
rules, principles and objectives, said it expected the company to
bring the letter to the court's attention at a hearing scheduled
for July 30, Reuters relays.
Provident, as cited by Reuters, said that since placing CCD into
managed run-off in early May, its loan book has been reduced to 42
million pounds, while 1,000 employees have left the business.
Provident decided in May to close the unit and exit the home credit
market altogether after a surge of customer complaints and as the
pandemic hit turnaround efforts for the business, Reuters
recounts.
It has said an independent assessment by Ernst and Young has backed
the company's view that CCD had no value and will likely face
insolvency if the plan does not go through, according to Reuters.
The industry, which lends to people who cannot get a loan from
mainstream banks, has faced intense regulatory scrutiny in recent
years for charging sky-high interest rates, Reuters discloses.
RAIL CAPITAL: Fitch Rates USD300MM LPNs Final 'B', On Watch Neg.
----------------------------------------------------------------
Fitch Ratings has assigned Rail Capital Markets Plc's USD300
million fixed-rate loan participation notes (LPNs) due 2026 a final
senior unsecured 'B' rating and placed them on Rating Watch
Negative (RWN).
The assignment of final rating follows the receipt of final
documents conforming to information already received.
KEY RATING DRIVERS
The notes were issued for the sole purpose of funding a loan by
Rail Capital Markets Plc to JSC Ukrainian Railway (UR; B/RWN). UR
is using the proceeds of the loan to refinance the repayment of its
existing short-term debt, which will improve its liquidity. The
noteholders rely solely on UR's credit and financial standing for
the payment of obligations under the notes.
The LPNs are rated at the same level as UR's Long-Term Issuer
Default Rating (IDR) as they constitute direct, unconditional
senior unsecured obligations of UR and rank pari passu with all
other present and future unsecured and unsubordinated obligations.
DERIVATION SUMMARY
UR's 'ccc' Standalone Credit Profile (SCP) and support score of
27.5 under Fitch's Government-Related Entities Criteria lead to
rating equalisation with the Ukraine sovereign IDR at 'B'. However,
due to insufficient immediate liquidity at end-April 2021 UR does
not share the sovereign's Stable Outlook and is on RWN. Once the
short-term debt is refinanced, UR's ratings are likely to be
removed from RWN.
RATING SENSITIVITIES
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- The senior unsecured debt rating will be upgraded on a similar
action on UR's Long-Term IDR.
Factor that could, individually or collectively, lead to negative
rating action/downgrade:
-- The senior unsecured debt rating will be downgraded on a
similar action on UR's Long-Term IDR.
For UR's rating sensitivities see the Rating Action Commentary
published on 29 April 2021:
Factor that could, individually or collectively, lead to positive
rating action/upgrade:
-- An affirmation would result from an improved liquidity
position, sufficient to service debt payments coming due in
the next 12 months.
Factors that could, individually or collectively, lead to negative
rating action/downgrade:
-- A downgrade of Ukraine's sovereign rating;
-- Downward reassessment of the SCP, resulting from persistent
liquidity stress.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Sovereigns, Public Finance
and Infrastructure issuers have a best-case rating upgrade scenario
(defined as the 99th percentile of rating transitions, measured in
a positive direction) of three notches over a three-year rating
horizon; and a worst-case rating downgrade scenario (defined as the
99th percentile of rating transitions, measured in a negative
direction) of three notches over three years. The complete span of
best- and worst-case scenario credit ratings for all rating
categories ranges from 'AAA' to 'D'. Best- and worst-case scenario
credit ratings are based on historical performance.
CRITERIA VARIATION
Fitch has applied a GRE Criteria variation by overriding the rating
floor of 'B' stemming from UR's GRE support score of 27.5 and a SCP
at no more than three notches away from the sovereign's IDR.
PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS
UR's IDRs are directly linked to Ukraine's IDRs.
ESG CONSIDERATIONS
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.
TITAN HOMES: Seeks Buyer for Fairfields Residential Development
---------------------------------------------------------------
Business Sale reports that administrators are seeking a buyer for a
residential development in the West End of Glasgow after the
company behind the project, property developer Titan Homes, fell
into administration.
The company has appointed Quantuma's Ian Wright and Scott Milne as
joint administrators, Business Sale relates.
The Fairfields development would involve 45 two- and three-bedroom
apartments set over seven floors, along with a lower ground space
featuring parking for up to 51 vehicles, Business Sale discloses.
The development is located on Meadow Road in the Partick area.
The site is 0.3 acres, with the construction area spanning slightly
over 35,000 square feet, Business Sale states. The development was
proposed in 2015, with construction only beginning in August 2020.
Titan Homes was founded in 2015 and fell into administration
earlier this month after encountering a period of financial
difficulties, Business Sale recounts. Quantuma, Business Sale
says, is now actively seeking a developer to take over control of
the Fairfields project.
The administrators added that interested parties should contact the
Glasgow office of chartered surveyor DM Hall, Business Sale notes.
WRW CONSTRUCTION: Sunnyside Wellness Village to Push Through
------------------------------------------------------------
Hannah Neary at WalesOnline reports that stakeholders have
confirmed they are still committed to delivering multi-million
pound developments in Bridgend county as the construction company
behind them is being placed into administration.
According to WalesOnline, partners say they are seeking new
arrangements to ensure Bridgend's Sunnyside Wellness Village and a
GBP2.3 million children's hub will still be built following the
news that WRW Construction is set to go into administration.
WRW, one of Wales' leading firms, said the closure came as it had
come under "significant financial stress", despite a having a large
number of orders, WalesOnline relates.
Plans for Sunnyside Wellness Village include 59 homes and a GBP10.7
million healthcare centre, located on the site of the old Sunnyside
council offices and magistrates court in Bridgend, WalesOnline
discloses. The whole project, approved by Bridgend Council in
2019, is expected to cost GBP23 million, with GBP18 million funding
from Welsh Government, WalesOnline notes.
Housing association and care provider Linc Cymru is behind the
development, which is being funded by Welsh Government and Cwm Taf
Morgannwg University Health Board (CTMUHB), WalesOnline states.
The company was also working with WRW to develop a housing estate
in Malvern Drive, Cardiff.
A council spokesperson, as cited by WalesOnline, said the closure
of WRW is "very disappointing news" and the authority is in
discussions with partners about what to do next about the wellness
village and "further clarification is being sought by them from WRW
Construction as a matter of urgency".
They added: "While this will inevitably impact upon the timescales
for all projects that the contractor was involved with, including
the wellness village and the children's hub, we remain confident
that another high-quality contractor will soon be confirmed, and
that the projects will still be delivered for the benefit of local
residents."
===============
X X X X X X X X
===============
[*] BOOK REVIEW: Hospitals, Health and People
---------------------------------------------
Author: Albert W. Snoke, M.D.
Publisher: Beard Books
Softcover: 232 pages
List Price: $34.95
Order your personal copy today at
http://www.beardbooks.com/beardbooks/hospitals_health_and_people.html
Hospitals, Health and People is an interesting and very readable
account of the career of a hospital administrator and physician
from the 1930's through the 1980's, the formative years of today's
health care system. Although much has changed in hospital
administration and health care since the book was first published
in 1987, Dr. Snoke's discussion of the evolution of the modern
hospital provides a unique and very valuable perspective for
readers who wish to better understand the forces at work in our
current health care system.
The first half of Hospitals, Health and People is devoted to the
functional parts of the hospital system, as observed by Dr. Snoke
between the late 1930's through 1969, when he served first as
assistant director of the Strong Memorial Hospital in Rochester,
New York, and then as the director of the Grace-New Haven Hospital
in Connecticut. In these first chapters, Dr. Snoke examines the
evolution and institutionalization of a number of aspects of the
hospital system, including the financial and community
responsibilities of the hospital administrator, education and
training in hospital administration, the role of the governing
board of a hospital, the dynamics between the hospital
administrator and the medical staff, and the unique role of the
teaching hospital.
The importance of Hospitals, Health and People for today's readers
is due in large part to the author's pivotal role in creating the
modern-day hospital. Dr. Snoke and others in similar positions
played a large part in advocating or forcing change in our hospital
system, particularly in recognizing the importance of the nursing
profession and the contributions of non-physician professionals,
such as psychologists, hearing and speech specialists, and social
workers, to the overall care of the patient. Throughout the first
chapters, there are also many observations on the factors that are
contributing to today's cost of care. Malpractice is just one
example. According to Dr. Snoke, "malpractice premiums were
negligible in the 1950's and 1960's. In 1970, Yale-New Haven's
annual malpractice premiums had mounted to about $150,000." By the
time of the first publication of the book, the hospital's premiums
were costing about $10 million a year.
In the second half of Hospitals, Health and People, Dr. Snoke
addresses the national health care system as we've come to know it,
including insurance and cost containment; the role of the
government in health care; health care for the elderly; home health
care; and the changing role of ethics in health care. It is
particularly interesting to note the role that Senator Wilbur Mills
from Arkansas played in the allocation of costs of hospital-based
specialty components under Part B rather than Part A of the
Medicare bill. Dr. Snoke comments: "This was considered a great
victory by the hospital-based specialists. I was disappointed
because I knew it would cause confusion in working relationships
between hospitals and specialists and among patients covered by
Medicare. I was also concerned about potential cost increases. My
fears were realized. Not only have health costs increased in
certain areas more than anticipated, but confusion is rampant among
the elderly patients and their families, as well as in hospital
business offices and among physicians' secretaries." This aspect of
Medicare caused such confusion that Congress amended Medicare in
1967 to provide that the professional components of radiological
and pathological in-hospital services be reimbursed as if they were
hospital services under Part A rather than part of the co-payment
provisions of Part B.
At the start of his book, Dr. Snoke refers to a small statue,
Discharged Cured, which was given to him in the late 1940's by a
fellow physician, Dr. Jack Masur. Dr. Snoke explains the
significance the statue held for him throughout his professional
career by quoting from an article by Dr. Masur: "The whole question
of the responsibility of the physician, of the hospital, of the
health agency, brings vividly to mind a small statue which I saw a
great many years ago.it is a pathetic little figure of a man, coat
collar turned up and shoulders hunched against the chill winds,
clutching his belongings in a paper bag-shaking, tremulous,
discouraged. He's clearly unfit for work-no employer would dare to
take a chance on hiring him. You know that he will need much more
help before he can face the world with shoulders back and
confidence in himself. The statuette epitomizes the task of medical
rehabilitation: to bridge the gap between the sick and a job."
It is clear that Dr. Snoke devoted his life to exactly that
purpose. Although there is much to criticize in our current
healthcare system, the wellness concept that we expect and accept
today as part of our medical care was almost nonexistent when Dr.
Snoke began his career in the 1930's. Throughout his 50 years in
hospital administration, Dr. Snoke frequently had to focus on the
big picture and the bottom line. He never forgot the importance of
Discharged Cured, however, and his book provides us with a great
appreciation of how compassionate administrators such as Dr. Snoke
have contributed to the state of patient care today. Albert Waldo
Snoke was director of the Grace-New Haven Hospital in New Haven,
Connecticut from 1946 until 1969. In New Haven, Dr. Snoke also
taught hospital administration at Yale University and oversaw the
development of the Yale-New Haven Hospital, serving as its
executive director from 1965-1968. From 1969-1973, Dr. Snoke worked
in Illinois as coordinator of health services in the Office of the
Governor and later as acting executive director of the Illinois
Comprehensive State Health Planning Agency. Dr. Snoke died in April
1988.
*********
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 2021. 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 * * *