/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/210906.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, September 6, 2021, Vol. 22, No. 172 Headlines F R A N C E CASINO GUICHARD-PERRACHON: Egan-Jones Keeps BB+ Sr. Unsec. Ratings G E R M A N Y AIR BERLIN: Provides Update on Insolvency Proceedings CONTINENTAL AG: Egan-Jones Hikes Senior Unsecured Ratings to BB+ FRESENIUS MEDICAL: Egan-Jones Keeps BB+ Senior Unsecured Ratings I R E L A N D ADAGIO IX EUR: Fitch Assigns Final B- Rating on Class F Tranche ADAGIO IX: Moody's Assigns B3 Rating to EUR11MM Class F Notes I T A L Y ALBA 11 SPV: Moody's Ups Rating on EUR131.1MM Cl. C Notes to Ba3 L A T V I A KURZEMES ATSLEGA 1: Reports Financial Results for First Half 2021 N O R W A Y SEADRILL LTD: Disclosure Statement for Reorganization Plan Okayed S P A I N SANTANDER CONSUMER 2021-1: Moody's Gives (P)Ba2 Rating to E Notes S W E D E N INTRUM AB: S&P Alters Outlook to Stable, Affirms 'BB/B' Ratings T U R K E Y ULKER BISKUVI: Fitch Affirms 'BB-' LT IDR, Outlook Stable U N I T E D K I N G D O M GENESIS MORTGAGE 2019-1: DBRS Confirms BB(high) Rating on E Notes GENLEC ELECTRICAL: Enters Administration Due to Financial Woes GFG ALLIANCE: Credit Suisse's Legal Battle in London Faces Delay JIGSAW: Henrik Madsen Tables Indicative Offer of GBP27 Million POUNDSTRETCHER: 63 Landlords Serve Notice to Vacate Shops - - - - - =========== F R A N C E =========== CASINO GUICHARD-PERRACHON: Egan-Jones Keeps BB+ Sr. Unsec. Ratings ------------------------------------------------------------------ Egan-Jones Ratings Company, on August 26, 2021, maintained 'BB+' foreign currency and local currency senior unsecured ratings on debt issued by Casino Guichard-Perrachon SA. KGaA to CCC+ from CCC. EJR also upgraded the rating on commercial paper issued by the Company to B from C. Headquartered in Saint-Etienne, France, Casino Guichard-Perrachon SA operates a wide range of hypermarkets, supermarkets, and convenience stores. ============= G E R M A N Y ============= AIR BERLIN: Provides Update on Insolvency Proceedings ----------------------------------------------------- The insolvency administrator of Air Berlin PLC provided KEOS GbR ("KEOS"), in its capacity as joint representative of the EUR225 million, 2011/2018, 8.250% bond issued by Air Berlin PLC (ISIN: DE000AB100B4 / WKN: AB100B), with a report on the progress of the insolvency proceedings concerning the assets of Air Berlin PLC. Bondholders can request a copy of the insolvency administrator's report from KEOS upon delivery of proof of their creditor status in the form of a recent deposit account statement (not older than 10 working days). Bondholders can send their request and supporting documents by email to airberlin@onesquareadvisors.com or by fax to +49 89 15 98 98 22. The report will only be sent by email and is only available in German. At the request of certain bondholders, KEOS has translated the main facts for convenience purposes into English. However, only the German version is binding, and the translation is without guarantee and should not be relied upon for purposes of decision making. It is a working version, and the German version alone is authoritative. The report may contain information whose use and/or disclosure may be regulated and/or restricted as MNPI within the meaning of Art. 14 of the regulation (EU) no. 596/2014 on market abuse (market abuse regulation) or other applicable laws. KEOS will not assess whether or not the report in fact contains any such information or sweep the report from (potential) such information. KEOS will keep registered bondholders informed about the further developments and is available for questions via email at airberlin@onesquareadvisors.com. Bondholders who have not yet registered can register on the homepage at https://onesquareadvisors.com/bonds/airberlin/ for future updates on the Air Berlin PLC insolvency proceedings. CONTINENTAL AG: Egan-Jones Hikes Senior Unsecured Ratings to BB+ ---------------------------------------------------------------- Egan-Jones Ratings Company, on August 26, 2021, upgraded the foreign currency and local currency senior unsecured ratings on debt issued by Continental AG to BB+ from BB. Headquartered in Hanover, Germany, Continental AG manufactures tires, automotive parts, and industrial products. FRESENIUS MEDICAL: Egan-Jones Keeps BB+ Senior Unsecured Ratings ---------------------------------------------------------------- Egan-Jones Ratings Company, on August 27, 2021, maintained 'BB+' foreign currency and local currency senior unsecured ratings on debt issued by Fresenius Medical Care AG & Co. KGaA. Headquartered in Bad Homburg, Germany, Fresenius Medical Care AG & Co. KGaA offers kidney dialysis services and manufactures and distributes equipment and products used in the treatment of dialysis patients. ============= I R E L A N D ============= ADAGIO IX EUR: Fitch Assigns Final B- Rating on Class F Tranche --------------------------------------------------------------- Fitch Ratings has assigned Adagio IX EUR CLO DAC final ratings. DEBT RATING PRIOR ---- ------ ----- Adagio IX EUR CLO DAC A XS2369313072 LT AAAsf New Rating AAA(EXP)sf B-1 XS2369313668 LT AAsf New Rating AA(EXP)sf B-2 XS2369314476 LT AAsf New Rating AA(EXP)sf C XS2369315010 LT Asf New Rating A(EXP)sf D XS2369315796 LT BBB-sf New Rating BBB-(EXP)sf E XS2369316331 LT BB-sf New Rating BB-(EXP)sf F XS2369316414 LT B-sf New Rating B-(EXP)sf Subordinated Notes LT NRsf New Rating NR(EXP)sf XS2369316844 X XS2369312850 LT AAAsf New Rating AAA(EXP)sf Z XS2372877626 LT NRsf New Rating TRANSACTION SUMMARY Adagio IX EUR CLO DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds have been used to fund a portfolio with a target par of EUR400 million. The portfolio is actively managed by AXA Investment Managers, Inc. The transaction has a 4.5-year reinvestment period and an 8.5-year maximum weighted average life (WAL). KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors in the 'B/B-' categories. The Fitch weighted average rating factor (WARF) of the identified portfolio, based on Fitch's Exposure Draft: CLOs and Corporate CDOs Rating Criteria, is 25.25. High Recovery Expectations (Positive): At least 90% of the portfolio comprises 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 identified portfolio is 61.80%. Diversified Portfolio (Positive): The transaction has four matrices corresponding to two top-10 obligor limits at 16.0% and 26.5% and two maximum fixed-rate asset limits at 0% and 7.5%, respectively. The transaction also includes various concentration limits, including a 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 4.5-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. Cash flow Modelling (Neutral): Fitch's analysis of the matrices is based on a stressed-case portfolio with a 7.5-year WAL. As per the Exposure Draft: CLOs and Corporate CDOs Rating Criteria, the WAL used for the transaction stress portfolio was 12 months less than the WAL covenant to account for structural and reinvestment conditions post-reinvestment period, including the OC tests and Fitch 'CCC' limitation passing post reinvestment. This ultimately reduces the maximum possible risk horizon of the portfolio when combined with loan pre-payment expectations. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: -- An increase of the default rate (RDR) at all rating levels by 25% of the mean RDR and a decrease of the recovery rate (RRR) by 25% at all rating levels would result in downgrades of no more than four notches, depending on the notes. -- Downgrades may occur if the 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. Factors that could, individually or collectively, lead to positive rating action/upgrade: -- A reduction of the RDR at all rating levels by 25% of the mean RDR and an increase in the RRR by 25% at all rating levels would result in an upgrade of up to four notches depending on the notes, except for the class A notes, which are already at the highest rating on Fitch's scale and cannot be upgraded. -- At closing, Fitch used a standardised stressed portfolio (Fitch's stressed portfolio) that was 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 by reinvestments, and also because the manager can update the Fitch collateral quality test. -- After the end of the reinvestment period, upgrades may occur on better-than-expected portfolio credit quality and deal performance, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. 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 Adagio IX EUR CLO DAC The majority of the underlying assets or risk presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk presenting entities. Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action 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. ADAGIO IX: Moody's Assigns B3 Rating to EUR11MM Class F Notes ------------------------------------------------------------- Moody's Investors Service announced that it has assigned the following definitive ratings to the notes issued by Adagio IX EUR CLO Designated Activity Company (the "Issuer"): EUR1,800,000 Class X Senior Secured Floating Rate Notes due 2034, Definitive Rating Assigned Aaa (sf) EUR248,000,000 Class A Senior Secured Floating Rate Notes due 2034, Definitive Rating Assigned Aaa (sf) EUR23,300,000 Class B-1 Senior Secured Floating Rate Notes due 2034, Definitive Rating Assigned Aa2 (sf) EUR13,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2034, Definitive Rating Assigned Aa2 (sf) EUR25,000,000 Class C Deferrable Mezzanine Floating Rate Notes due 2034, Definitive Rating Assigned A2 (sf) EUR28,000,000 Class D Deferrable Mezzanine Floating Rate Notes due 2034, Definitive Rating Assigned Baa3 (sf) EUR23,500,000 Class E Deferrable Junior Floating Rate Notes due 2034, Definitive Rating Assigned Ba3 (sf) EUR11,000,000 Class F Deferrable Junior Floating Rate Notes due 2034, Definitive Rating Assigned B3 (sf) RATINGS RATIONALE The rationale for the ratings is based on a consideration of the risks associated with the CLO's portfolio and structure as described in Moody's methodology. The Issuer is a managed cash flow CLO. At least 90% of the portfolio must consist of secured senior loans or senior secured bonds and up to 10% of the portfolio may consist of unsecured senior loans, second-lien loans, high yield bonds and mezzanine loans. The underlying portfolio is expected to be fully ramped as of the closing date and to comprise of predominantly corporate loans to obligors domiciled in Western Europe. The remainder of the portfolio will be acquired during the 6 month ramp-up period in compliance with the portfolio guidelines. AXA Investment Managers, Inc. ("AXA IM") will manage the CLO. It will direct the selection, acquisition and disposition of collateral on behalf of the Issuer and may engage in trading activity, including discretionary trading, during the transaction's 4.5 year reinvestment period. Thereafter, subject to certain restrictions, purchases are permitted using principal proceeds from unscheduled principal payments and proceeds from sales of credit risk obligations or credit improved obligations. Interest and principal amortisation amounts due to the Class X Notes are paid pro rata with payments to the Class A Notes. The Class X Notes amortise by EUR180,000 on the second payment date over ten payment dates. In addition to the eight classes of notes rated by Moody's, the Issuer will issue EUR10,000,000 Class Z Notes due 2034 and EUR32,225,000 Subordinated Notes due 2034 which are not rated. The transaction incorporates interest and par coverage tests which, if triggered, divert interest and principal proceeds to pay down the notes in order of seniority. 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. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Moody's modeled the transaction using a cash flow model based on the Binomial Expansion Technique, as described in Section 2.3 of the "Moody's Global Approach to Rating Collateralized Loan Obligations" rating methodology published in December 2020. Moody's used the following base-case modeling assumptions: Performing par: EUR400,000,000 Diversity Score: 51 Weighted Average Rating Factor (WARF): 3040 Weighted Average Spread (WAS): 3.55% Weighted Average Coupon (WAC): 4.25% Weighted Average Recovery Rate (WARR): 43.75% Weighted Average Life (WAL): 8.5 years ========= I T A L Y ========= ALBA 11 SPV: Moody's Ups Rating on EUR131.1MM Cl. C Notes to Ba3 ---------------------------------------------------------------- Moody's Investors Service has upgraded the ratings of several classes of notes in Alba 9 SPV S.r.l., Alba 10 SPV S.r.l. and Alba 11 SPV S.r.l. The rating actions reflect the increased levels of credit enhancement for the affected notes and in the case of Alba 11 SPV S.r.l., a better than expected performance. Moody's affirmed the ratings of the notes that had sufficient credit enhancement to maintain the current rating on the affected notes. Maximum achievable rating is Aa3 (sf) for structured finance transactions in Italy, driven by the corresponding local currency country ceiling of the country. In these three transactions, the current Eligible Investments definition would also limit further upgrades above Aa3(sf) for the junior and mezzanine notes. Issuer: Alba 9 SPV S.r.l. EUR145.8M Class B Notes, Affirmed Aa3 (sf); previously on Nov 16, 2020 Affirmed Aa3 (sf) EUR100.2M Class C Notes, Upgraded to Aa3 (sf); previously on Nov 16, 2020 Upgraded to A2 (sf) Issuer: Alba 10 SPV S.r.l. EUR200M Class A2 Notes, Affirmed Aa3 (sf); previously on Nov 16, 2020 Affirmed Aa3 (sf) EUR130M Class B Notes, Affirmed Aa3 (sf); previously on Nov 16, 2020 Upgraded to Aa3 (sf) EUR75M Class C Notes, Upgraded to Baa1 (sf); previously on Nov 16, 2020 Affirmed Ba2 (sf) Issuer: Alba 11 SPV S.r.l. EUR498.7 M Class A1 Notes, Affirmed Aa3 (sf); previously on Jun 25, 2020 Assigned Aa3 (sf) EUR300 M Class A2 Notes, Affirmed Aa3 (sf); previously on Jun 25, 2020 Assigned Aa3 (sf) EUR143.6 M Class B Notes, Upgraded to A3 (sf); previously on Jun 25, 2020 Assigned Baa1 (sf) EUR131.1 M Class C Notes, Upgraded to Ba3 (sf); previously on Jun 25, 2020 Assigned B1 (sf) RATINGS RATIONALE The upgrade rating actions are prompted mainly by an increase in credit enhancement for the affected tranches. Revision of Key Collateral Assumptions As part of the rating action, Moody's reassessed its default probability and recovery rate assumptions for the portfolios reflecting the collateral performance to date. The performance in Alba 9 SPV S.r.l. and Alba 10 SPV S.r.l. is in line with expectations. The key collateral assumptions have been kept unchanged. In the case of Alba 11 SPV S.r.l. the observed performance since closing is better than expected with cumulative defaults equal to 0.35% over original pool balance versus an assumption of 13.17%. Moody´s has decreased the default probability assumption in Alba 11 SPV S.r.l. to 12% from 14% of the current portfolio balance and has kept unchanged the fixed recovery rate assumption at 30% and the PCE at 23%. Increased Credit Enhancement Sequential amortization led to the increase of the credit enhancement available in these transactions. For instance, the credit enhancement for the Class C Notes in Alba 9 SPV S.r.l. has increased to 47.18% from 37.42% since the last rating action. The credit enhancement for the Class C Notes in Alba 10 SPV S.r.l. has increased to 28.83% from 24.50% since the last rating action. The credit enhancement for Class B and C Notes in Alba 11 SPV S.r.l. has increased to 29.53% and 17.78% from 25.48% and 14.98% at closing. The principal methodology used in these ratings was "Equipment Lease and Loan Securitizations Methodology" published in August 2021. Factors that would lead to an upgrade or downgrade of the ratings: Factors or circumstances that could lead to an upgrade of the ratings include (1) performance of the underlying collateral that is better than Moody's expected, (2) an increase in available credit enhancement, (3) improvements in the credit quality of the transaction counterparties and (4) a decrease in sovereign risk. Factors or circumstances that could lead to a downgrade of the ratings include (1) an increase in sovereign risk, (2) performance of the underlying collateral that is worse than Moody's expected, (3) deterioration in the notes' available credit enhancement and (4) deterioration in the credit quality of the transaction counterparties. =========== L A T V I A =========== KURZEMES ATSLEGA 1: Reports Financial Results for First Half 2021 ----------------------------------------------------------------- Kurzemes atslega 1 (in liquidation) released its Non-audited Financial Report for first six months of 2021. Net turnover has reached EUR675,839 in the first half of 2021 which is up by 13.4 % or EUR79,913 more in comparison with the first half of the 2020. The first half of 2021 was closed with a loss of EUR232,090, loss per share is EUR0.25. In the first half of 2021, the liquidation of the company is being continued. The company's creditors and debtors have been identified. Part of the employees has been laid off, the accumulated finished products have been sold, as well as the balances from the production process have been partially sold. The value of real estate and potential buyers are identified. Latvia-based Kurzemes atslega 1 produces door and windows hardware. =========== N O R W A Y =========== SEADRILL LTD: Disclosure Statement for Reorganization Plan Okayed ----------------------------------------------------------------- Seadrill Limited (SDRL) ("Seadrill" or the "Company") on Sept. 3 disclosed that the United States Bankruptcy Court for the Southern District of Texas (the "Court") has approved the disclosure statement (the "Disclosure Statement") for the Company's proposed plan of reorganization (the "Plan"), paving the way for its emergence from Chapter 11 in Q4 2021. The Court authorized the Company to distribute the Disclosure Statement and solicit votes from all lenders on the Plan. The Court also set a hearing to consider approval of the Plan for October 26, 2021. The Plan provides a clear pathway for Seadrill to restructure its balance sheet with the Company having already secured support from the majority of its senior secured lenders. The Company's motion to approve the backstop commitment letter has been deferred until a later hearing. Grant Creed, CFO, commented: "We are pleased with these developments, which put us firmly on track for Chapter 11 emergence. The Court approved our timeline for approval of the restructuring and authorized us to solicit lender votes. This will pave the way for a significant balance sheet deleveraging." Copies of the Plan and Disclosure Statement, as well as other information regarding the Company's chapter 11 cases, are available at the following website: https://cases.primeclerk.com/SeadrillLimited/. About Seadrill Ltd. Seadrill Limited (OSE:SDRL, OTCQX:SDRLF) -- http://www.seapdrill.com/-- is a deepwater drilling contractor providing drilling services to the oil and gas industry. As of March 31, 2018, it had a fleet of over 35 offshore drilling units that include 12 semi-submersible rigs, 7 drillships, and 16 jack-up rigs. On Sept. 12, 2017, Seadrill Limited sought Chapter 11 protection after reaching terms of a reorganization plan that would restructure $8 billion of funded debt. It emerged from bankruptcy in July 2018. Demand for exploration and drilling has fallen further during the COVID-19 pandemic as oil firms seek to preserve cash, idling more rigs and leading to additional overcapacity among companies serving the industry. In June 2020, Seadrill wrote down the value of its rigs by $1.2 billion and said it planned to scrap 10 rigs. Seadrill said it is in talks with lenders on a restructuring of its $5.7 billion bank debt. Seadrill Partners LLC, a limited liability company formed by deep-water drilling contractor Seadrill Ltd. to own, operate and acquire offshore drilling rigs, along with its affiliates, sought Chapter 11 protection (Bankr. S.D. Tex. Lead Case No. 20-35740) on Dec. 1, 2020, after its parent company swept one of its bank accounts to pay disputed management fees. Mohsin Y. Meghji, authorized signatory, signed the petitions. On Feb. 7, 2021, Seadrill GCC Operations Ltd., Asia Offshore Drilling Limited, Asia Offshore Rig 1 Limited, Asia Offshore Rig 2 Limited, and Asia Offshore Rig 3 Limited sought Chapter 11 protection. Seadrill GCC estimated $100 million to $500 million in assets and liabilities as of the bankruptcy filing. Additionally, on Feb. 10, 2021, Seadrill Limited and 114 affiliated debtors each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code with the Court. The lead case is In re Seadrill Limited (Bankr. S.D. Tex. Case No. 21-30427). Seadrill Limited disclosed $7.291 billion in assets against $7.193 billion in liabilities as of the bankruptcy filing. In the new Chapter 11 cases, the Debtors tapped Kirkland & Ellis LLP as counsel; Houlihan Lokey, Inc. as financial advisor; Alvarez & Marsal North America, LLC as restructuring advisor; Jackson Walker LLP as co-bankruptcy counsel; Slaughter and May 2021 as co-corporate counsel; Advokatfirmaet Thommessen AS as Norwegian counsel; and Conyers Dill & Pearman as Bermuda counsel. Prime Clerk LLC is the claims agent. On April 9, 2021, the board of directors of Debtor Seadrill North Atlantic Holdings Limited unanimously adopted resolutions appointing Steven G. Panagos and Jeffrey S. Stein as independent directors to the board. Seadrill North Atlantic Holdings Limited tapped Katten Muchin Rosenman LLP as counsel and AMA Capital Partners, LLC as financial advisor at the sole direction of independent directors. ========= S P A I N ========= SANTANDER CONSUMER 2021-1: Moody's Gives (P)Ba2 Rating to E Notes ----------------------------------------------------------------- Moody's Investors Service has assigned provisional credit ratings to the following classes of Notes to be issued by SANTANDER CONSUMER SPAIN AUTO 2021-1, FONDO DE TITULIZACION ("SANTANDER CONSUMER SPAIN AUTO 2021-1, FT"): EUR[ ]M Class A Notes due June 2035, Assigned (P)Aa1 (sf) EUR[ ]M Class B Notes due June 2035, Assigned (P)A2 (sf) EUR[ ]M Class C Notes due June 2035, Assigned (P)Baa3 (sf) EUR[ ]M Class D Notes due June 2035, Assigned (P)Ba1 (sf) EUR[ ]M Class E Notes due June 2035, Assigned (P)Ba2 (sf) Moody's has not assigned any rating to the EUR[ ]M Class F Notes due June 2035. RATINGS RATIONALE SANTANDER CONSUMER SPAIN AUTO 2021-1, FT is a 15 months revolving securitisation of auto loans granted by Santander Consumer Finance S.A. (A2/P-1 Bank Deposits; A3(cr)/P-2(cr)) ("Santander Consumer") to mostly private obligors in Spain. Santander Consumer is acting as originator and servicer of the loans while Santander de Titulizacion S.G.F.T., S.A. (NR) is the Management Company ("Gestora"). As of August 25, 2021, the provisional portfolio comprised [54,458] auto loans granted to obligors located in Spain, [97.96]% of whom are private individuals. The weighted average seasoning of the portfolio is [18.15] months and its weighted average remaining term is [66.88] months. Around [29.65]% of the loans were originated to purchase new vehicles, while the remaining [70.35]% were made to purchase used vehicles. Geographically, the pool is concentrated mostly in Andalucia ([24.46]%), Catalonia ([13.97]%) and Comunitat Valenciana ([10.62]%). The portfolio, as of its pool cut-off date, did not include any loans in arrears. Moody's analysis focused, amongst other factors, on (i) an evaluation of the underlying portfolio of loans; (ii) the historical performance information of the total book and past ABS transactions; (iii) the credit enhancement provided by the subordination, the excess spread and the cash reserve; (iv) the liquidity support available in the transaction, by way of principal to pay interest, and the cash reserve; and (v) the overall legal and structural integrity of the transaction. According to Moody's, the transaction benefits from several credit strengths such as the granularity of the portfolio, securitisation experience of Santander Consumer and significant excess spread. However, Moody's notes that the transaction features a number of credit weaknesses, such as a complex structure including, pro-rata payments on Class A to E Notes from the first payment date. These characteristics, amongst others, were considered in Moody's analysis and ratings. Hedging: As the collections from the pool are not directly linked to a floating interest rate, a higher index payable on the floating interest rate Class A to C Notes would not be offset with higher collections from the pool. The transaction therefore benefits from an interest rate cap, with Banco Santander S.A. (Spain) (A2/P-1 Bank Deposits; A3(cr)/P-2(cr)) as cap counterparty, where the issuer will be paid any positive difference between the Three-month EURIBOR and the strike rate of [0.5]% on a notional linked to the scheduled amortization of the floating interest rate Class A to C Notes. Even if Moody's were not provided with a breakdown of vehicles by emission standard, the securitised portfolio is exposed to approx. 51.7% diesel engines, the majority of which should be adhered to the Euro 6 standards given the vehicle registration year. MAIN MODEL ASSUMPTIONS Moody's determined the portfolio lifetime expected defaults of 4.00%, expected recoveries of 35.00% and Aa1 portfolio credit enhancement ("PCE") of 13.00% related to borrower receivables. The expected defaults and recoveries capture Moody's expectations of performance considering the current economic outlook, while the PCE captures the loss Moody's expect the portfolio to suffer in the event of a severe recession scenario. Expected defaults and PCE are parameters used by Moody's to calibrate its lognormal portfolio loss distribution curve and to associate a probability with each potential future loss scenario in the ABSROM cash flow model to rate Consumer ABS. Portfolio expected defaults of 4.00% are in line with the Spanish Auto Loan ABS average and are based on Moody's assessment of the lifetime expectation for the pool taking into account (i) historic performance of the loan book of the originator and in particular of the sub-book filtered by the eligibility criteria of the transaction, (ii) performance of the existing Auto deals previously originated by Santander Consumer, (ii) benchmark transactions and (iii) other qualitative considerations. Portfolio expected recoveries of 35.00% are in line with the Spanish Auto Loan ABS average and are based on Moody's assessment of the lifetime expectation for the pool taking into account (i) historic performance of the loan book of the originator, (ii) benchmark transactions, and (iii) other qualitative considerations. PCE of 13.00% is in line with the Spanish Auto Loan ABS average and is based on Moody's assessment of the pool taking into account the relative ranking to originator peers in the Spanish Auto loan market and the fact that the transaction is revolving for 15 months. The PCE of 13.00% results in an implied coefficient of variation ("CoV") of [59.7]%. Principal Methodology: The principal methodology used in these ratings was "Moody's Global Approach to Rating Auto Loan- and Lease-Backed ABS" published in December 2020. Factors that would lead to an upgrade or downgrade of the ratings: Factors that may cause an upgrade of the ratings include (i) a significantly better than expected performance of the pool or (ii) an increase in credit enhancement of the notes. Factors that may cause a downgrade of the ratings include (i) a decline in the overall performance of the pool, (ii) the deterioration of the credit quality of Santander Consumer or (iii) a decline of Spain's local currency country ceiling. =========== S W E D E N =========== INTRUM AB: S&P Alters Outlook to Stable, Affirms 'BB/B' Ratings --------------------------------------------------------------- S&P Global Ratings revised its outlook on Sweden-based Intrum to stable from negative and affirmed its 'BB/B' ratings on the company, while affirming its 'BB' rating on Intrum's senior unsecured notes, with the recovery rating staying at '4', indicating its expectation of average recovery in the event of default. S&P said, "Our stable outlook reflects the assumption that the pandemic's effects are largely contained for Intrum and that the company will continue to focus on efficiency improvements, with no plans for meaningful new debt-funded acquisitions in the next 12-18 months. "We expect Intrum's leverage to gradually decrease under the current, relatively new management set-up. Intrum appointed a new CEO, Chief Financial Officer, Chief Risk Officer, and Chief Investment Officer over 2020-2021, and we believe the new management should support the repeated aim of deleveraging and optimizing the cost structure by 2022. We note that Intrum was likely to have missed the related financial targets for 2020, even without the pandemic-induced recession, in our view. We anticipate that Intrum's leverage will be closer to 4.0x over the next 12-24 months, significantly lower than the 5.5x peak of 2019, while being sustainably better than the 4.3x we calculated for December 2020. This will be accompanied by normalization of collection patterns through 2021-2022, solid interest coverage metrics, and limited debt maturities over at least the next 24 months, which provides some financial and operational flexibility. We believe the company will benefit from the economic rebound that we expect for 2021-2022, even if moderate lockdowns are reimposed in the autumn or winter. However, increasing availability of nonperforming loan (NPL) portfolios in the market at attractive rates could lead to higher-than-anticipated portfolio purchases, making the deleveraging path less clear. Our calculation of EBITDA for Intrum, as for other distressed-debt purchasers, includes an adjustment to add back collections applied to principal, or portfolio amortization, which flows through the cash flow statement. This is to reflect the cash flow associated with collections on distressed receivables, since those collections could be used for debt repayment in theory, instead of being reinvested. That said, distressed-debt purchasers consistently purchase new distressed receivables to replenish their income-generating asset base and maintain profitability over the cycle. Therefore, we also note the possibility of ongoing purchases (that is, not assuming a rapid contraction of activities or a run-off scenario) in our assessment. In such a scenario, amortization-adjusted EBITDA may overstate the true cash available to repay debt. With this in mind, we also consider in our analysis EBITDA excluding the add-back for portfolio amortization. "We assume the recent reduction of a single private-equity investor's stake to below 40% may somewhat reduce pressure for aggressive growth. We note that Intrum has been one of the most shareholder-friendly companies in the sector, paying dividends even in the form of share buybacks during 2020, a very uncertain year due to the pandemic, while reporting an accounting loss for the full year 2019. In addition, we still view Intrum's dividend policy, which translates into a pay-out ratio of 60% or higher, as aggressive, especially given the reinvestment and deleveraging needs. We note that the company displays one of the lowest, negative tangible equity metrics in the sector, given its very sizeable goodwill and accordingly, nonexistent tangible equity base. We view it as a sign of a track record of very aggressive growth but expect improvement in the coming years, with a greater focus on organic expansion and increasing revenue from the servicing business. "We see the proactive, early management of debt maturity concentration as providing safe liquidity buffers, despite recent share buybacks or high dividends paid. Intrum's enlarged and prolonged (until 2026) EUR1.8 billion revolving credit facility (RCF)--with no meaningful debt maturities before 2024--provide the company with a quite comfortable liquidity situation and support financial flexibility in the coming 12 months, with headroom for efficiency improvement programs, such as ONE Intrum, or a cushion against further unexpected market turbulence. In our view, liquidity sources will cover liquidity uses by meaningfully more than 1.2x in the next 12-24 months. Intrum also benefits from substantial headroom under debt covenants; it has to comply with maintenance covenants under its RCF documentation or incurrence covenants for bonds, under which we expect the company will maintain significant headroom. "Despite recent performance challenges in joint-venture projects (especially in Italy), and slow improvement in credit management services (CMS) segment earnings, we assume gradually improving new servicing business. In our opinion, the third-party balance-sheet-light servicing business, which generates almost half Intrum's revenue, remains a source of stability and relationship advantage for the company. This is although we are slightly more cautious about Intrum's assumption of banking sector NPLs more than doubling by the end of 2021 or early 2022, compared with the 2019 year-end figure for Europe. Nevertheless, we assume a gradually improving pipeline and revenue. We note that third-party servicing may be less profitable than portfolio investments, but is also less oriented to one-off gains and bears a lower risk of pricing uncertainty. This is especially true for valuations or revaluations of Intrum's portfolios, which are difficult for us to project. In our opinion, the timing of those effects remains largely at the discretion of management and internal, relatively subjective from our perspective, model assumptions. We note, however, that the process is being audited by external, independent auditors. "The stable outlook indicates that a potential, limited resurgence of COVID-19-related lockdowns in Europe, in particular in Intrum's core markets, should not critically test the company's profitability in the next 12 months or cause material portfolio or goodwill impairments. We also believe that, under the new management, the company is now focused on improving its long-term cost efficiency and containing risks to its financial profile, rather than on aggressive short-to-medium-term portfolio and profitability growth. We note that the company aims to reduce its leverage in line with its publicly announced 2.5x-3.5x targets by year-end 2022. "We could lower the rating over the next 12 months if we saw significant delays in collections or material impairments leading to a deterioration in profitability and liquidity. This could happen if the coverage of interest by EBITDA worsened, with the cash-adjusted leverage ratio increasing meaningfully to over 5.0x in our forecasts at the same time. Another reason for a downgrade could be aggressive, debt-elevating growth in investments or large acquisitions eroding tangible equity metrics further. "We could also lower the ratings if we saw Intrum's currently sound liquidity buffer deteriorate; for example, due to excessive or close-to-full utilization of the available RCF. "We see a positive rating action as remote over the next 12 months. Nevertheless, we could raise the ratings if we saw Intrum's leverage (in terms of our gross debt to cash-adjusted EBITDA metric) meaningfully and sustainably dropping below 3.5x over that period. For an upgrade, we would also need to see the "ONE Intrum" program bearing fruit, namely improved cost efficiency and performance of third-party servicing, the segment that contributes positively to our ratings on Intrum." =========== T U R K E Y =========== ULKER BISKUVI: Fitch Affirms 'BB-' LT IDR, Outlook Stable --------------------------------------------------------- Fitch Ratings has affirmed Ulker Biskuvi Sanayi A.S.'s Long-Term Issuer Default Rating (IDR) at 'BB-' with Stable Outlook. Fitch has also affirmed senior unsecured rating at 'BB-' and assigned a Recovery Rating of 'RR4'. The rating and Stable Outlook reflect Fitch's expectation that Ulker's leverage will reduce over 2022-2024 after being above Fitch's negative rating sensitivity in 2020-2021. Deleveraging will be helped by the recent acquisition of Onem Gıda Sanayi ve Ticaret A.S., which brought additional EBITDA and reduced Ulker's off-balance sheet obligations, while only mildly increasing Fitch-defined net debt. Nevertheless, Fitch sees some uncertainty around the pace of net leverage reduction, because of limited visibility on Ulker's cash-management policy in connection to allocations to financial investments (which Fitch does not treat as cash), and over foreign-exchange rates for the US dollar and euro, in which Ulker's debt is denominated. Rating strengths are Ulker's strong market position in the Turkish confectionery market and free cash flow (FCF) generation. Fitch also assumes that Ulker will be able to restore its EBITDA margin after its temporary reduction in 2021. KEY RATING DRIVERS Onem Acquisition Neutral for Leverage: The recent acquisition of a related party chocolate dough and flour manufacturer Onem Gida Sanayi ve Ticaret A.S. (Onem) is neutral to Ulker's funds from operations (FFO) net leverage. This is because the payment was funded without taking on new debt but with sources that Fitch does not treat as cash. Ulker liquidated part of its financial investments (TRY1.6 billion) and also used cash from the repayment of TRY2.1 billion loan it had previously provided to the seller Yildiz Holding A.S. Ulker also consolidated around TRY0.6 billion of Onem's debt. Financial Investments Excluded: Unlike Ulker, Fitch does not treat reported financial investments (TRY3.6 billion at end-2020) as cash equivalents and therefore does not take them into account for net leverage calculations. These consist of investments in traded equity, fixed income and alternative investments, which may be subject to market fluctuations. Fitch believes that such investments are likely to be liquidated only to fund potential M&A and Fitch does not assume them as a funding source for debt repayment. Foreign Operations Reduce FX Risks: In 2020, foreign operations accounted for 40% of Ulker's revenue and 50% EBITDA. This helps reduce FX risks due to hard currency-denominated exports and sales in Saudi riyal and United Arab Emirates dirham, which are pegged to the US dollar. Nevertheless, Fitch assesses FX risks as material for Ulker due to large hard-currency debt (96% of total at end-2020). High Leverage: FFO net leverage exceeded Fitch's negative rating sensitivity of 4.5x in 2020 as the company's cash balance was reduced due to the loan Ulker provided to Yildiz and the allocation of part of the cash to investments in financial assets. Fitch expects leverage to remain high at 5.1x in 2021 on unfavourable FX impact on debt and a weaker EBITDA margin. Deleveraging to below 4.5x is possible from 2022 on expected EBITDA margin recovery and full consolidation of Onem's EBITDA. However, Fitch's projections are sensitive to FX rates and Ulker's cash-management decisions, including the allocation of resources to investments in financial assets and loans to related parties. Therefore, lack of deleveraging towards levels consistent with a 'BB-' rating may lead to a negative rating action. EBITDA Margin Under Pressure: Fitch projects Ulker's EBITDA margin to reduce in 2021, for the first time in a decade, due to unprecedented price inflation in raw materials and packaging, which is challenging food producers globally. The pressure on Ulker's margin is amplified by weakness of the Turkish lira against hard currencies, in which the confectioner's major inputs are denominated. Fitch expects Ulker to gradually pass on cost increases to consumers and recover its margins over 2022-2024. Positive FCF: The ratings are supported by Ulker's ability to generate FCF, which Fitch expects to be sustained over 2021-2024 as the company has completed its investment cycle and now has low capex needs. This is despite a resumption of dividend payments from 2021 after having paid no dividends in 2019 and 2020. Largest Confectionery Producer in Turkey: Ulker's ratings benefit from the company's strong position as the largest confectionery producer in Turkey with a 37.3% market share at end-June 2021. Ulker has leading market shares in chocolate and biscuits but is behind Eti, its largest competitor, in the cake category. Limited Threat from International Confectioners: Market shares of international confectionery producers, such as Nestle SA (A+/ Stable), Mondelez International Inc. and Ferrero, in Turkey are substantially smaller than those of Ulker and Eti, despite their portfolios of global brands and strong innovation capabilities. This is because of consumer loyalty to local brands and Ulker's adequate product innovation, which Fitch believes effectively address consumer needs in Turkey. Synergy products, which are produced under Godiva and McVitie brands and sold by Ulker in countries where it has a presence, also enhance the competitiveness of its product offer. Related-Party Transactions: Ulker has an ESG Relevance Score of '4' for Group Structure as its operations are characterised by a relevant degree of interconnection with companies that are ultimately owned by its shareholder Yildiz. These related-party transactions are mostly in the company's ordinary course of business, including sales to modern and traditional retail and procurement of chocolate dough and flour from Onem. Fitch expects financial transparency to improve after Ulker acquires Onem as purchases from Onem accounted for 35% of Ulker's costs of goods sold in 2020. Additionally, Ulker pays royalties to Yildiz, which owns the brands under which Ulker markets its products. Fitch assumes these transactions will continue to be conducted at arm's length and will not result in significant cash leakage outside Ulker's consolidated scope of activities. Ring-Fencing from the Parent: The rating is premised on Ulker being ring-fenced from the rest of Yildiz group and Fitch assumes that Ulker's cash flows will not be used to service the substantial debt of Yildiz nor of Ulker's sister companies. However, Fitch includes in its calculation of leverage metrics the guarantees Ulker provides for obligations of third parties, which increased FFO net leverage by about 1x in 2020. However, off-balance sheet obligations have reduced materially after Onem's acquisition as the guarantee Ulker provides for Onem's obligations is now within the consolidation scope. According to management, Onem does not provide guarantees for related-party obligations. DERIVATION SUMMARY Ulker compares well against Argentinean confectionery producer Arcor S.A.I.C. (FC IDR: B/Stable, LC IDR: B+/Stable) due to similar operational scale, strength of local brands and geographic diversification. Both companies generate about 30%-40% of revenue outside their domestic markets. Ulker's rating is higher than Arcor's due to stronger EBITDA margins, positive FCF and lower volatility in operating performance. Arcor's FC IDR cannot be higher than Argentinian Country Ceiling by more than one notch. Ulker is also rated higher than Russia's largest confectionery producer JSC Holding Company United Confectioners (B/Stable) as it benefits from larger market shares in its domestic market, better geographic diversification and the resulting larger business scale. United Confectioners has weaker financial transparency and opaque related-party transactions, which constrain its rating, despite its more conservative leverage. Ulker is rated lower than Mexico-based Grupo Bimbo, S.A.B. de C.V. (BBB/Stable), the world's largest baked goods producer with about a 3% market share, due to its smaller scale and geographic footprint and higher leverage. No parent-subsidiary linkage, Country Ceiling or operating environment aspects were applied to Ulker's rating. Fitch could consider linking Ulker's rating to Yildiz's credit profile if the current ringfencing weakens. KEY ASSUMPTIONS -- USD/TRY at 8.9 at end-2021, 9.5 at end-2022 and 9.7 at end 2023; -- Revenue CAGR of 14% over 2021-2024, driven mostly by price/mix changes; -- EBITDA margin reducing in 2021 and recovering gradually over 2022-2024; -- Capex at TRY250 million-TRY300 million a year to 2024; -- Acquisition of Onem for TRY4.4 billion on a debt-free basis; cash payment of TRY3.7 billion, funded by liquidation of financial investments and write-off of loan to Yildiz; -- Cash balance of at least TRY2.7 billion at -end-2021 and at least TRY2 billion-TRY2.2 billion at year-end over 2022-2024; -- Dividends of TRY350 million a year. RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: -- Upgrade of Turkey's Country Ceiling; -- Annual EBITDA from Saudi Arabia and Kazakhstan sufficiently exceeding annual hard-currency interest payments or Fitch projected hard-currency debt service ratio exceeding 1x over the next three to four years; -- FFO net leverage consistently below 4.0x. Factors that could, individually or collectively, lead to negative rating action/downgrade: -- Downgrade of Turkey's Country Ceiling to below 'BB-'; -- Increased competition eroding Ulker's market share in Turkey or internationally; -- Deterioration in FCF profile on a sustained basis; -- FFO net leverage consistently above 4.5x; -- Larger-than-assumed M&A, investments in high-risk securities or related-party transactions leading to significant cash leakage outside Ulker's scope of consolidation. BEST/WORST CASE RATING SCENARIO International scale credit ratings of Non-Financial Corporate 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 four 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. LIQUIDITY AND DEBT STRUCTURE Adequate Liquidity: At end-June 2021, Ulker had adequate liquidity as cash and cash equivalents of TRY2.8 billion, which together with expected positive FCF, were sufficient to cover TRY0.9 billion of short-term debt. Ulker's next material debt maturity is in April 2023, when its USD110 million and EUR244 million syndicated loan and EUR75 million EBRD loan are due. ISSUER PROFILE Ulker is the largest confectionary producer in Turkey with presence in Saudi Arabia, Egypt, and Kazakhstan. ESG CONSIDERATIONS Ulker an ESG Relevance Score of '4' for Group Structure due to the complexity of the structure of the wider Yildiz group and material related-party transactions, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. =========================== U N I T E D K I N G D O M =========================== GENESIS MORTGAGE 2019-1: DBRS Confirms BB(high) Rating on E Notes ----------------------------------------------------------------- DBRS Ratings Limited took the following rating actions on the Notes issued by Genesis Mortgage Funding 2019-1 plc (the Issuer): -- Class A Notes confirmed at AAA (sf) -- Class B Notes confirmed at AA (sf) -- Class C Notes confirmed at A (high) (sf) -- Class D Notes confirmed at BBB (high) (sf) -- Class E Notes confirmed at BB (high) (sf) -- Class F Notes upgraded to B (high) (sf) from B (low) (sf) The rating of the Class A Notes addresses the timely payment of interest and the ultimate payment of principal on or before the legal final maturity date in December 2056. The ratings of the Class B, Class C, Class D, Class E, and Class F Notes address the ultimate payment of interest and principal while junior, and the timely payment of interest while the senior-most class outstanding. The upgrade and confirmations follow an annual review of the transaction and are based on the following analytical considerations: -- Portfolio performance, in terms of delinquencies, defaults, and losses, as of the June 2021 payment date. -- Portfolio default rate (PD), loss given default (LGD), and expected loss assumptions on the remaining receivables. -- Current available credit enhancement to the notes to cover the expected losses at their respective rating levels. -- Current economic environment and an assessment of sustainable performance, as a result of the Coronavirus Disease (COVID-19) pandemic. The Issuer is a securitization of first-lien UK owner-occupied and buy-to-let residential mortgage loans originated and serviced by Bluestone Mortgages Limited. PORTFOLIO PERFORMANCE As of June 2021, two- to three-month arrears represented 1.0% of the outstanding portfolio balance, up from 0.3% in June 2020. Loans more than three months in arrears represented 2.2% of the outstanding balance, up from 1.0% in June 2020. The cumulative loss ratio was zero. PORTFOLIO ASSUMPTIONS AND KEY DRIVERS DBRS Morningstar conducted a loan-by-loan analysis of the remaining pool of receivables and updated its base case PD and LGD assumptions, including coronavirus-related adjustments, to 15.8% and 14.5%, respectively. CREDIT ENHANCEMENT As of the June 2021 payment date, credit enhancement to the Class A, Class B, Class C, Class D, Class E, and Class F Notes was 26.2%, 19.6%, 15.9%, 12.2%, 8.5%, and 5.5%, respectively, up from 18.5%, 14.0%, 11.5%, 9.0%, 6.5%, and 4.5%, respectively, at the DBRS Morningstar initial rating. Credit enhancement consists of subordination of the junior notes and a general reserve fund (GRF). The GRF is currently funded to its target level of GBP 3.2 million, equal to 2% of the outstanding balance of the Class A to Class G Notes. The GRF is available to cover senior fees, interest shortfalls, and principal losses via the principal deficiency ledgers on the notes. The Liquidity Reserve Fund (LRF) was funded on the first interest payment date using available principal funds and is currently funded to its target level of GBP 1.9 million, equal to 1.5% of the outstanding balance of the Class A Notes. The LRF is available to cover senior fees and interest shortfall on the Class A Notes. Citibank N.A./London Branch acts as the account bank for the transaction. Based on the DBRS Morningstar private rating of Citibank N.A./London Branch, the downgrade provisions outlined in the transaction documents, and other mitigating factors inherent in the transaction structure, DBRS Morningstar considers the risk arising from the exposure to the account bank to be consistent with the rating assigned to the Class A Notes, as described in DBRS Morningstar's "Legal Criteria for European Structured Finance Transactions" methodology. National Australia Bank Limited acts as the swap counterparty for the transaction. DBRS Morningstar's public long-term rating of National Australia Bank Limited at AA is consistent with the First Rating Threshold as described in DBRS Morningstar's "Derivative Criteria for European Structured Finance Transactions" methodology. DBRS Morningstar analyzed the transaction structure in Intex DealMaker. The Coronavirus Disease (COVID-19) and the resulting isolation measures have caused an economic contraction, leading in some cases to increases in unemployment rates and income reductions for borrowers. DBRS Morningstar anticipates that delinquencies may continue to increase in the coming months for many structured finance transactions, some meaningfully. The ratings are based on additional analysis and, where appropriate, adjustments to expected performance as a result of the global efforts to contain the spread of the coronavirus. For this transaction, DBRS Morningstar increased its expected default rate for self-employed borrowers and conducted additional sensitivity analysis to determine that the transaction benefits from sufficient liquidity support to withstand potential high levels of payment holidays in the portfolio. Notes: All figures are in British pound sterling unless otherwise noted. GENLEC ELECTRICAL: Enters Administration Due to Financial Woes -------------------------------------------------------------- Business Sale reports that Genlec Electrical Contractors, a mechanical and electrical (M&E) firm based in Leigh, Lancashire, has fallen into administration. According to Business Sale, the business was said to have experienced financial difficulties which meant it was unable to meet its obligations. In its most recent set of accounts available at Companies House, covering the year to December 31 2019, the company reported holding fixed assets of GBP41,329, with current assets amounting to GBP3.45 million, Business Sale relates. At the time, the company owed GBP2.4 million to creditors within one year and GBP550,000 to creditors due after more than one year, Business Sale discloses. This left the business with total equity of GBP473,380, down from close to GBP3 million a year earlier, Business Sale states. The business had been pursuing a growth strategy prior to the onset of the COVID-19 pandemic, as it looked to take on larger and more complex contracts, Business Sale notes. However, after running into financial troubles, the business was forced to appoint administrators from FRP Advisory, Business Sale relays. The joint administrators will now proceed with an orderly wind down of Genlec, Business Sale says. All 18 of the firm's employees have been made redundant and administrators have said they will support those affected in making claims to the Redundancy Payments Service, Business Sale recounts. GFG ALLIANCE: Credit Suisse's Legal Battle in London Faces Delay ---------------------------------------------------------------- Ellen Milligan at Bloomberg News reports that Credit Suisse Group AG's London legal battle with Sanjeev Gupta was delayed by another six months, as the metals tycoon continues to seek funding for his empire. According to Bloomberg, a court official said by email an initial hearing over the bank's attempt to push some of Mr. Gupta's companies into insolvency has been rescheduled to March by consent between the parties. Earlier this year, the Swiss lender, through Citibank, filed "winding-up petitions" against a number of companies in Mr. Gupta's GFG Alliance Group, including Liberty Commodities Ltd, Bloomberg recounts. The reprieve allows Mr. Gupta more time to secure the survival of his corporate empire, after his biggest lender Greensill Capital collapsed into insolvency earlier this year, Bloomberg states. Mr. Gupta and GFG have been searching for new financing while simultaneously trying to persuade his existing lenders to hold off, Bloomberg notes. In July, GFG secured a deal with Glencore Plc to refinance the debt on its aluminum assets, Bloomberg recounts. Mr. Gupta's also been in talks with White Oak Global Advisors for loans to some of his European and Australian units, Bloomberg relays. This isn't the only legal threat GFG faces, Bloomberg discloses. While the group has settled long-running disputes with Rio Tinto Group and Tata Steel Ltd, it still faces a legal challenge from creditor American Industrial Partners, according to Bloomberg. JIGSAW: Henrik Madsen Tables Indicative Offer of GBP27 Million -------------------------------------------------------------- Sam Chambers at The Sunday Times reports that a little-known investor has made an offer to buy fashion retailer Jigsaw, a favourite of the Duchess of Cambridge, as it struggles to get on to its feet after the pandemic. According to The Sunday Times, Henrik Madsen has tabled an indicative offer of GBP27 million for Jigsaw, which is majority owned by Carphone Warehouse co-founder David Ross. He is seeking investor backing for his plan to move Jigsaw upmarket, invest in online and grow its licensing arm, The Sunday Times discloses. Mr. Madsen runs retail and brand consultancy HMJ International. His LinkedIn profile indicates Mr. Madsen spent 12 years at designer outlet owner McArthurGlen. Sources close to Jigsaw said a sale process had not begun and doubted how Madsen would fund the deal, The Sunday Times relates. As reported by the Troubled Company Reporter-Europe on Sept. 7, 2020, BBC related creditors approved Jigsaw's Company Voluntary Arrangement (CVA). According to BBC, Will Wright, partner at KPMG and joint supervisor of the CVA said: "The successful CVA proposal ensures that the business is well-placed to trade in the current retail environment, and is an important step in the company's wider review of its operations." Like many other retailers, the company was hit by lockdown, BBC disclosed. With weddings and other similar events cancelled, demand for its tailoring and formal dresses had shrunk, BBC noted. Meanwhile, with few workers returning to the office its workwear had also suffered, BBC said. POUNDSTRETCHER: 63 Landlords Serve Notice to Vacate Shops --------------------------------------------------------- Steve Farrell at The Grocer reports that more than 60 landlords have served Poundstretcher with a notice to vacate shops after the variety discounter demanded they slash rents in a restructuring programme. Poundstretcher launched a company voluntary arrangement (CVA) rescue plan in July last year, demanding rent cuts from hundreds of landlords while switching the whole estate to monthly payments, The Grocer recounts. According to The Grocer, the deal carved the estate into categories A, B or C. Landlords in B were told their premises were only viable with rent reductions, while those in C were deemed viable "only if zero rent is paid". The rent concessions were to be in place for the duration of the CVA, but terms also said it was "not possible to state with any certainty" the length of that process, The Grocer notes. However, the CVA also gave category B and C landlords the right to terminate the variety discounter's leases, The Grocer states. The number of landlords to pull the plug on the retailer has been revealed in a one-year CVA progress report filed at Companies House, The Grocer discloses. "In accordance with the terms of the CVA, the category B and category C landlords have the right to bring the respective category B and category C leases to and end by serving the company with a notice to vacate," The Grocer quotes the report as saying. "Since the approval of the CVA, 14 category B landlords and 49 category C landlords have exercised their rights under the CVA requesting the company to vacate the relevant sites." Poundstretcher said in October store closures in the CVA would be offset by 50 new openings, The Grocer recounts. But The Grocer revealed in July this year the estate had shrunk by 75 stores to 362 since the CVA launch, based on analysis by property data specialist CACI. Under the CVA, only category A premises were deemed to require no changes to lease terms "other than to make the rent payable monthly in advance", The Grocer relays. ********* 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 * * *