/raid1/www/Hosts/bankrupt/TCREUR_Public/220406.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

          Wednesday, April 6, 2022, Vol. 23, No. 63

                           Headlines



G E R M A N Y

DELIVERY HERO: S&P Assigns 'B-' ICR, Outlook Stable


I R E L A N D

BAIN CAPITAL 2022-1: Moody's Assigns (P)B3 Rating to Class F Notes
MAN GLG IV: Moody's Affirms B1 Rating on EUR9.5MM Class F Notes


L U X E M B O U R G

CORESTATE CAPITAL: S&P Downgrades ICR to 'B-' on Refinancing Risk


N E T H E R L A N D S

DTEK ENERGY: Fitch Downgrades Long-Term IDRs to 'C'


R U S S I A

STRUCTURED INVESTMENTS: S&P Cuts to CCp Then Withdraws Notes Rating


S P A I N

ENCE ENERGIA: S&P Withdraws 'BB-' Long-Term Issuer Credit Rating


T U R K E Y

ISTANBUL METROPOLITAN: Fitch Rates New Sr. Unsec. Notes 'B+(EXP)'


U K R A I N E

METINVEST BV: Fitch Affirms 'CCC' LT IDRs


U N I T E D   K I N G D O M

COTTAGE NURSING: Former Flintshire Care Home Put Up for Sale
DERBY COUNTY FOOTBALL: Kirchner to be Named as Preferred Bidder
DIGME FITNESS: Enters Administration, Owes GBP6MM to Creditors
EM MIDCO 2: S&P Assigns Prelim 'B' Long-Term Issuer Credit Rating
GREENSILL CAPITAL: Credit Suisse Litigation May Take Five Years

KCA DEUTAG: Fitch Affirms 'B+' LT IDR, Outlook Stable
MECHFS: Enters Administration, Staff Seek New Jobs
TRICORN GROUP: In Administration; US Unit Sold Via Pre-Pack Deal

                           - - - - -


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G E R M A N Y
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DELIVERY HERO: S&P Assigns 'B-' ICR, Outlook Stable
---------------------------------------------------
S&P Global Ratings assigned its 'B-' issuer credit rating to
Germany-based online delivery services company Delivery Hero SE,
New German Finco, and New US Finco, and its 'B-' issue rating, with
a '3' recovery rating, to the proposed senior secured TLB. The '3'
recovery rating reflects S&P's expectation of meaningful (50%-70%;
rounded estimate: 65%) recovery prospects in the event of a payment
default.

The stable outlook reflects S&P's view that Delivery Hero should be
able to absorb and gradually reduce operating losses, on the back
of ample liquidity, and fulfill its financial obligations over the
next 12-24 months.

S&P's 'B-' rating on Delivery Hero captures the group's strong cash
balance and substantial expenses in the coming 24 months.

Over the past few years, Delivery Hero has registered negative
EBITDA and free cash flow, primarily due to investment into its
platform and geographic expansion. The group has historically
emphasized geographic expansion and attaining scale at the expense
of profitability. S&P said, "Consequently, it has yet to record
positive S&P Global Ratings-adjusted EBITDA since its 2011
inception. Although the group has a global operation--and we expect
it to record revenue of EUR5.9 billion in 2021, as reported by the
International Financial Reporting Standards (IFRS)--the benefits of
its large scale have not yet translated into group-level
profitability, as per its reported EBITDA. Nevertheless, we believe
the group has sufficient liquidity to cover the anticipated cash
burn in the next 24 months, thanks to its EUR2.4 billion cash
balance as of Dec. 31, 2021." Liquidity support will also stem from
the proposed $825 million and EUR300 million senior secured TLBs
and EUR375 million RCF.

Delivery Hero is a global leader in the online food ordering and
delivery services market. S&P said, "In our view, Delivery Hero's
business is supported by its exceptionally strong market positions
for online food ordering and delivery services across Asia, Europe,
the Middle East, and Latin America, since it is the No.1 player in
54 of its 74 countries of operations, following the acquisition of
Glovo. We note the group derives a majority of its revenue from
Asia and the Middle East, with a significant exposure to South
Korea, which pro forma for the combination with Woowa contributed
about half of the group's orders in 2021." Delivery Hero employs a
unified global technology services to power its applications across
the world, but it pursues a localized brand strategy. It thereby
operates a multitude of brands that are aimed at catering to
specific regions and preferences, striving for a localized
connection with customers. At the same time, the group places a
strong focus on technology and digital connections with all areas
of the online ordering and delivery process. This allows Delivery
Hero to collect ample data it can use to optimize its logistics
operations as well as improve the user experience. The regional
brand approach in conjunction with its technological capabilities,
in turn, results in strong customer relationships. Since 2017, the
group has consistently managed to grow the cumulative order
frequency among the annual cohorts of new customers.

The rating is constrained by the track record of loss-making
operations, the low barriers to entry in the food delivery services
industry, and the exposure to some unfavorable labor regulations.
Delivery Hero's revenue base has increased rapidly in the past few
years as the group strategically expanded its operations into
markets where it was able to build solid leadership positions. But
doing so created significant customer acquisition costs related to
marketing and advertisement costs, alongside heavy IT investments.
This has resulted in negative EBITDA and cash flow. A key driver of
Delivery Hero's profitability is size, so fixed costs pertaining to
marketing or technology can proportionally be spread over a larger
base of transaction orders as the group scales up. S&P said, "Given
the group's rapid growth in recent years, the group's scale is now
on par with its markets of operations, and we expect the group will
generate positive EBITDA from 2023. We also note that its core food
ordering platform business could already be profitable in 2022.
Furthermore, we understand the group can implement various
profit-enhancing initiatives, such as introducing or increasing
fees (e.g. for longer distance deliveries), increasingly monetizing
advertising space on its platform, optimizing the efficiency of its
logistics operations, or reducing overhead costs. This should
support an improvement in S&P Global Ratings-adjusted EBITDA
margins, which are based on revenue, to 0.4% by 2023 and beyond 3%
in 2024, from negative 13.2% in 2021. Nevertheless, we observe some
execution risks to the strategic refocus on profitability
improvement. The group enjoys a leadership position in the majority
of its countries of operations, where it benefits from a
first-mover advantage, and has retained its strong position in its
largest market South Korea over the past two years, despite
competition from a well-funded new entrant. That said, the industry
is characterized by low barriers to entry and low platform
switching costs. These factors, in our view, could result in
heightened competitive pressure. A new well-resourced entrant could
aggressively attempt to win market shares, constraining or delaying
Delivery Hero's breakeven." Moreover, delivery services are exposed
to labor regulations and other factors that could weigh on costs
(wage inflation, increased transportation costs, etc.). Although
the commission-based revenue structure from restaurants may offset
some wage inflation, combined, these factors could challenge the
group's profitability targets.

Although profits from core operations are generally in good shape,
investments into quick-commerce and the loss-making nature of
recent acquisitions constrain earnings. Core operations in Middle
East and North Africa (MENA) as well as in South Korea have been
profitable, and the core operations at the group level poised to
achieve profitability in 2022. Having reached a large scale and
customer base for its food ordering and delivery services, the
group now aims at expanding its quick commerce offering. This
refers to the service of enabling customers to order small
quantities of goods, like groceries or toiletries, that are then
delivered to them almost instantly. Although this market promises
high growth rates, it is still very much in its infancy and
requires significant start-up investments to further its presence.
Additionally, the core platform business' potential to achieve
breakeven in 2022 is partially diluted by the loss-making nature of
recent Glovo acquisition. S&P said, "As a result, despite our
projected modest positive EBITDA generation from 2023 at group
level, we anticipate negative free operating cash flow (FOCF)
generation – as per S&P Global Rating's definition to persist
until at least 2024. We do not anticipate any additional
large-scale acquisitions comparable to the size of Woowa and Glovo
that the group acquired recently, as we expect the group's
strategic focus to rebalance toward profit generation rather than
scale, going forward."

S&P said, "We expect Delivery Hero to remain highly leveraged over
the next 24 months, considering its negative EBITDA and FOCF. Our
assessment of Delivery Hero's financial risk profile reflects our
forecast of negative adjusted debt to EBITDA throughout this year.
We expect the adjusted debt-to-EBITDA ratio to turn positive by
end-2023, when leverage will be very high and somewhat unmeaningful
due to our projection of limited EBITDA generation that year. At
the same time, we expect negative FOCF to persist throughout our
forecast horizon, partly because of the group's investments into
its quick commerce business.

"Currency risk is a significant consideration in our assessment of
Delivery Hero's capital structure, as a result of currency
mismatches. The bulk of the group's operations are generated in
regional currencies, including more volatile ones like the Turkish
lira or the Argentinian peso. Although operations in MENA have been
the group's largest cash generator in 2021, we still view foreign
exchange rate risk that is largely unhedged. Because the majority
of the group's debt is denominated in euros and U.S. dollars, we
view a currency mismatch between revenue and debt repayment
requirements.

"The stable outlook reflects our expectation that Delivery Hero
will execute on its operational improvement and growth strategies
to achieve profitability by 2023. We also consider that Delivery
Hero will have sufficient liquidity to support its operations over
the next 12-24 months.

"We may lower the rating if Delivery Hero does not maintain an
ample liquidity buffer or improve the sustainability of its capital
structure over the next 12-24 months. This could happen if the
company's operational performance fails to strengthen, blocking
positive EBITDA generation by 2023. Rating pressure would also stem
from faster and more-protracted-than-expected cash burn, such that
Delivery Hero would not maintain significantly more than EUR1
billion in liquidity availability through cash and undrawn credit
lines.

"We consider an upgrade to be unlikely over the next 12 months
because of Delivery Hero's weak credit measures owing to negative
EBITDA generation so far. However, we could raise the rating if
Delivery Hero's operating performance is significantly better than
we expect. Increased recurring active users, higher average order
values, or lower costs associated with expanding the quick commerce
business that yields stronger earnings could lead to an upgrade.
Under such a scenario, we would also expect a permanent
strengthening in Delivery Hero's capital structure through improved
currency risk management and sound liquidity, such that the EBITDA
interest coverage is well above 2x."

ESG credit indicators: E-2, S-3, G-2

S&P assesses ESG factors as E2-S3-G2. Social factors are a
moderately negative consideration in our credit rating analysis of
Delivery Hero. The concept of gig economy contractors has provoked
legal and regulatory challenges following criticism that drivers
make less than minimum wage and are not afforded certain labor
rights or benefits of full-time employees. Resultingly, these
dynamics could result in changed employment laws across the
jurisdictions within which Delivery Hero operates. This would have
implications on employee-related expenditures of the group, and
thereby potentially weigh on profitability.




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I R E L A N D
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BAIN CAPITAL 2022-1: Moody's Assigns (P)B3 Rating to Class F Notes
------------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to notes to be issued by Bain Capital
Euro CLO 2022-1 Designated Activity Company (the "Issuer"):

EUR1,000,000 Class X Senior Secured Floating Rate Notes due 2034,
Assigned (P)Aaa (sf)

EUR253,150,000 Class A Senior Secured Floating Rate Notes due
2034, Assigned (P)Aaa (sf)

EUR43,580,000 Class B Senior Secured Floating Rate Notes due 2034,
Assigned (P)Aa2 (sf)

EUR24,900,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)A2 (sf)

EUR28,800,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)Baa3 (sf)

EUR22,300,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2034, Assigned (P)Ba3 (sf)

EUR9,290,000 Class F Senior Secured Deferrable Floating Rate Notes
due 2034, Assigned (P)B3 (sf)

RATINGS RATIONALE

The rationale for the rating 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 senior secured obligations and up to 10%
of the portfolio may consist of senior unsecured obligations,
second-lien loans, mezzanine obligations and high yield bonds. The
portfolio is expected to be at least 90% 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.

Bain Capital Credit U.S. CLO Manager, LLC, Series C 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 17% or EUR166,666 over the six payment
dates starting on the second payment date.

In addition to the seven classes of notes rated by Moody's, the
Issuer will issue EUR33.2M of Class M-1 Subordinated Notes and
EUR0.5M of Class M-2 Notes which are not rated. The Class M-2 Notes
accrue interest in an amount equivalent to a certain proportion of
the senior and subordinated management fees and its notes' payment
is pari passu with the payment of the senior and subordinated
management fee.

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 2021.

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 2021.

Moody's used the following base-case modeling assumptions:

Par Amount: EUR415,000,000

Diversity Score: 59

Weighted Average Rating Factor (WARF): 2950

Weighted Average Spread (WAS): 3.85%

Weighted Average Coupon (WAC): 4.00%

Weighted Average Recovery Rate (WARR): 44.0%

Weighted Average Life (WAL): 7.5 years

MAN GLG IV: Moody's Affirms B1 Rating on EUR9.5MM Class F Notes
---------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the following
notes issued by Man GLG Euro CLO IV Designated Activity Company:

EUR29,000,000 Class B-1 Senior Secured Floating Rate Notes due
2031, Upgraded to Aaa (sf); previously on Jun 8, 2020 Affirmed Aa2
(sf)

EUR20,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2031,
Upgraded to Aaa (sf); previously on Jun 8, 2020 Affirmed Aa2 (sf)

EUR23,500,000 Class C Deferrable Mezzanine Floating Rate Notes due
2031, Upgraded to A1 (sf); previously on Jun 8, 2020 Affirmed A2
(sf)

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

EUR173,000,000 Class A-1 Senior Secured Floating Rate Notes due
2031, Affirmed Aaa (sf); previously on Jun 8, 2020 Affirmed Aaa
(sf)

EUR30,000,000 Class A-2 Senior Secured Fixed Rate Notes due 2031,
Affirmed Aaa (sf); previously on Jun 8, 2020 Affirmed Aaa (sf)

EUR20,000,000 Class D Deferrable Mezzanine Floating Rate Notes due
2031, Affirmed Baa2 (sf); previously on Dec 8, 2020 Upgraded to
Baa2 (sf)

EUR19,000,000 Class E Deferrable Junior Floating Rate Notes due
2031, Affirmed Ba2 (sf); previously on Jun 8, 2020 Confirmed at Ba2
(sf)

EUR9,500,000 Class F Deferrable Junior Floating Rate Notes due
2031, Affirmed B1 (sf); previously on Jun 8, 2020 Confirmed at B1
(sf)

Man GLG Euro CLO IV Designated Activity Company, issued in March
2018, is a collateralised loan obligation (CLO) backed by a
portfolio of mostly high-yield senior secured European loans. The
portfolio is managed by GLG Partners LP. The transaction's
reinvestment period will end in May 2022.

RATINGS RATIONALE

The rating upgrades on the Class B-1, B-2, and C Notes are
primarily a result of the benefit of the shorter period of time
remaining before the end of the reinvestment period in May 2022.

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

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 lower WARF and a shorter WAL 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: EUR340,849,079

Defaulted Securities: 1,810,089

Diversity Score: 63

Weighted Average Rating Factor (WARF): 2920

Weighted Average Life (WAL): 4.4 years

Weighted Average Spread (WAS) (before accounting for Euribor
floors): 3.79%

Weighted Average Coupon (WAC): 4.80%

Weighted Average Recovery Rate (WARR): 43.82%

Par haircut in OC tests and interest diversion test: None

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 2021.

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:

Weighted average life: The notes' ratings are sensitive to the
weighted average life assumption of the portfolio, which could
lengthen as a result of the manager's decision to reinvest in new
issue loans or other loans with longer maturities, or participate
in amend-to-extend offerings. Moody's tested for a possible
extension of the actual weighted average life in its analysis. The
effect on the ratings of extending the portfolio's weighted average
life can be positive or negative depending on the notes'
seniority.

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.



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L U X E M B O U R G
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CORESTATE CAPITAL: S&P Downgrades ICR to 'B-' on Refinancing Risk
-----------------------------------------------------------------
S&P Global Ratings lowered its ratings on Luxembourg-based real
estate asset manager Corestate Capital Holding S.A. (Corestate) and
its senior debt to 'B-' from 'B', and kept them on CreditWatch with
negative implications where we first placed them on Nov. 15, 2021.

The CreditWatch placement reflects the potential for a further
downgrade within the next three months, depending on the company's
progress in alleviating its looming liquidity problems.

On March 30, 2022, Corestate Capital Holding S.A. (Corestate)
announced a further delay in the ongoing audit of its 2021
financial report.

Ongoing audit procedures regarding goodwill accounting indicate
performance problems at Corestate. The extension of audit
procedures is a further adverse development. While the initial
reason for the delayed audit statement seems to be resolved, a new
issue emerged. The ongoing impairment test for goodwill related to
Corestate's subsidiary Helvetic Financial Services (HFS) and
indications that goodwill will at least be partially impaired, in
our view, indicates performance problems at HFS. S&P said, "We note
that a goodwill impairment itself does not directly impact our key
financial metrics but indicates some lower-than-expected earnings
prospects in the real estate debt segment, particularly in the
mezzanine space. We assume the publication of audited financials by
end of April at the latest."

Refinancing risk remains the principal and increasing risk

S&P said, "We see the ongoing uncertainty around the audit report
as a further source of pressure on Corestate's looming refinancing
risk, which was central to our rating action on March 18, 2022. In
our view, Corestate depends on access to the high-yield debt market
to refinance part of its maturing bonds in November 2022 and April
2023. While asset sales and reduction in bridge loans combined with
cash funds from operations could be sufficient to repay the EUR200
million (EUR191 million outstanding) unsecured convertible bond in
November 2022, operating cashflow alone would be insufficient to
allow the company to pay the EUR300 million bond maturity in April
2023. As such, we are paying particular attention to cash
generation over the next three months, especially the closing of
the shopping center deal in Gieben, Germany, as well as looking for
traction in the company's broader refinancing plans."

CreditWatch

S&P said, "We expect to resolve the CreditWatch within the next
three months. The timing may also depend on the eventual release
and contents of the audited 2021 annual financial reports, or other
material events.

"We will observe the company's progress in accumulating liquidity
buffers ahead of its bond maturities. Notably, in our view, the
redemption of the bond maturity in November 2022 requires material
cash conversion of assets. If we see insufficient progress, this
would lead us to lower our rating.

"We could remove the ratings from CreditWatch negative if Corestate
makes material progress in ramping up liquidity and if we would
expect a successful refinancing taking place, supported by robust
business performance or a capital increase."

Company Description

Corestate is a niche real estate investment manager, with EUR27.4
billion in assets under management as of Dec. 31, 2021. The company
provides asset, fund, and property management services along the
whole real estate value chain to a mix of institutional,
semi-institutional, and retail clients. It currently invests across
all major real estate asset classes, including residential and
student housing buildings, offices, and retail spaces. Corestate
mainly operates in German-speaking countries, but also
internationally.

  Ratings Score Snapshot

  Issuer Credit Rating: B-/Watch Neg/--

  Business risk: Fair
  Country risk: Very low
  Industry risk: Intermediate
  Competitive position: Fair
  Financial risk: Aggressive

  Cash flow/Leverage: Aggressive
  Anchor: bb-

  Modifiers

  Diversification/Portfolio effect: Neutral (no impact)
  Capital structure: Neutral (no impact)
  Liquidity: Less than adequate (-1)
  Financial policy: Neutral (no impact)
  Management and governance: Weak (-1)
  Comparable rating analysis: Negative (-1)
  Stand-alone credit profile: b-

Environmental, social, and governance (ESG) credit factors for this
change in credit rating/outlook and/or CreditWatch status:

-- Risk management, culture, and oversight; and
-- Governance structure




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N E T H E R L A N D S
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DTEK ENERGY: Fitch Downgrades Long-Term IDRs to 'C'
---------------------------------------------------
Fitch Ratings has downgraded DTEK Energy B.V.'s Long-Term Foreign-
and Local-Currency Issuer Default Ratings (IDR) and senior
unsecured rating to 'C' from 'CCC'. DTEK Energy is a
Netherlands-based company with operating assets in Ukraine.

The downgrade of the IDR to 'C' follows DTEK Energy's announcement
that it will exercise a grace period after it failed to make its
USD31.5 million coupon payment scheduled on 31 March 2022 on its
USD1,645 million 7%-7.5% senior secured payment-in-kind (PIK)
toggle notes due 2027. The company also announced that it is
seeking noteholders consent for a waiver of two restrictions
related to permitted PIK interest and plans to make interest
payments promptly after obtaining the consent. This follows the
severe operational disruptions resulting from Russia's invasion of
Ukraine.

DTEK Energy's 'C' IDRs denote that a default or default-like
process has begun.

KEY RATING DRIVERS

DDE Likely: While the PIK option itself is envisaged in bond
documentation, DTEK Energy is seeking noteholders consent for a
waiver of the restriction on the number of consecutive payments of
PIK interest permitted, and the timing of the notice of the
intention to pay PIK interest. Fitch is likely to view it as a
distressed debt exchange (DDE), which would result in a downgrade
of the IDR to 'RD' (Restricted Default) upon completion of the
change in terms. Upon completion of DDE the IDR will be re-rated
and may be upgraded.

Priority in Energy Production: DTEK Energy announced that there is
no certainty that the company will have sufficient funds to conduct
necessary operations during 2Q22 and 3Q22. This is due to the
current conflict in Ukraine that has resulted in low electricity
demand and production together with low domestic prices,
significantly reduced payment collections, increased critical
repairs, mandatory fixed costs, and shortage of personnel and
logistical interruptions. These factors have resulted in negative
operating cash flows, which are likely to continue in 2Q22 and
beyond. DTEK Energy's main priority is to ensure supplies of
electricity and heat to industrial and residential consumers,
thereby supporting the energy security of Ukraine. It is providing
energy to military forces, hospitals and bakeries free of charge.

Severe Operational Disruptions: Russia has launched missile, ground
and sea operations across multiple fronts, including in the areas
where DTEK Energy's assets are located. There is high uncertainty
about the extent of Russia's ultimate objectives, the length,
breadth and intensity of the conflict, and its aftermath. However,
multiple infrastructure and industrial facilities have already been
damaged and the risk to employee wellbeing, severe disruption to
operations or plant and equipment remains high.

Moratorium on Foreign-Currency Payments: The National Bank of
Ukraine has introduced a moratorium on cross-border
foreign-currency payments, potentially limiting issuers' ability to
service their foreign-currency obligations. Exceptions can be made
to this moratorium but it is unclear how these will be applied in
practice, particular with disruption caused by the ongoing conflict
and martial law in the country.

DERIVATION SUMMARY

DTEK Energy's 'C' IDRs denote that a default or default-like
process has begun.

KEY ASSUMPTIONS

KEY RECOVERY RATING ASSUMPTIONS

-- The recovery analysis assumes that DTEK Energy would be a
    going concern in bankruptcy and that the company would be
    reorganised rather than liquidated.

-- A 10% administrative claim.

Going-Concern Approach

-- The going-concern EBITDA estimate reflects Fitch's view of a
    sustainable, post-reorganisation EBITDA level, upon which we
    have based the valuation of the company;

-- The going-concern EBITDA of UAH2 billion reflects the
    potential pressure resulting from the sustained invasion of
    Ukraine;

-- Debt is based on Fitch's estimate of post-restructuring debt;

-- An enterprise value multiple of 3.0x;

-- Eurobonds, bank loans and other debt are ranked pari passu.

Fitch's waterfall analysis generated a waterfall generated recovery
computation for the notes in the 'RR5' band, indicating a 'C'
instrument rating.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

-- An upgrade is unlikely at this point as Fitch does not expect
    DTEK Energy to pay its 31 March 2022 coupon fully in cash
    given the changes in notes terms proposed by the company;

-- The payment of the overdue coupon by the end of the 10-day
    grace period after the consent from the noteholders and the
    timely payment of upcoming maturities under the PIK notes due
    2027;

-- Ending of military operations, resumption of normal business
    operations and improved liquidity position.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

-- Execution of a DDE or non-payment of the overdue coupon by the
    end of the 10-day grace period, which would result in a
    downgrade to 'RD';

-- The IDR will be further downgraded to 'D' if DTEK Energy
    enters into bankruptcy filings, administration, receivership,
    liquidation or other formal winding-up procedures, or ceases
    business.

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

Tight Liquidity: As of end-2021, DTEK Energy had a cash balance of
almost USD170 million against short term debt of USD65 million.
However, bank lines are currently not available due to liquidity
constraints on Ukraine's banking system. The company has decided to
adopt all protective measures to ensure sufficient funding for
operational needs in the current circumstances.

ISSUER PROFILE

DTEK Energy is the largest private power generating company in
Ukraine with total installed capacity of 13.3GW. Its market share
of electricity production fell to 18%-19% in 2019-2020 from about
25% in 2016, mainly on the back of stagnant electricity consumption
and active development of renewable energy, which is higher in the
merit order.

ESG CONSIDERATIONS

DTEK Energy's ESG Relevance Score for Management Strategy has been
revised to '3' from '4', since the drivers of this score no longer
represent a constraint to the rating given that non-payment of
interest on 31 March 2022 is driven by the impact of Russia's
invasion of Ukraine and not by management strategy. A score of '3'
expresses minimal credit-relevance to the rating.

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.



===========
R U S S I A
===========

STRUCTURED INVESTMENTS: S&P Cuts to CCp Then Withdraws Notes Rating
-------------------------------------------------------------------
S&P Global Ratings lowered to 'CCp' from 'CCC-p' and kept on
CreditWatch negative its credit rating on Special Purpose Company
"Structured Investments 1" LLC's repack notes. S&P placed the
rating on CreditWatch negative on March 3, 2022. Subsequently, S&P
withdrew the ratings on its repack notes.

The rating action also follows S&P's March 31, 2022, rating action
on Alfa-Bank JSC and its March 17, 2022, rating action on Russia's
RUB150 billion fixed-rate note.

Under S&P's "Global Methodology For Rating Repackaged Securities"
criteria, it weak-links its rating on Special Purpose Company
"Structured Investments 1"'s repack notes to the lowest of:

-- S&P's rating on the RUB150 billion fixed-rate note issued by
Russia;

-- S&P's issuer credit rating (ICR) on Banque Internationale a
Luxembourg, as custodian; and

-- S&P's ICR on Alfa-Bank JSC, as bank account.

S&P said, "In keeping our rating on CreditWatch negative before
withdrawing our rating, we considered the recent rating actions on
the underlying collateral and the bank account provider.

"The withdrawal of our rating on the repack notes follows the
decision of the European Union (EU) on March 15, 2022 to ban the
provision of credit ratings to legal persons, entities, or bodies
established in Russia and our ensuing announcement that we will
withdraw all our outstanding ratings on relevant issuers before
April 15, 2022, the deadline imposed by the EU."




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

ENCE ENERGIA: S&P Withdraws 'BB-' Long-Term Issuer Credit Rating
----------------------------------------------------------------
S&P Global Ratings has withdrawn its 'BB-' long-term issuer credit
rating on Spain-based ENCE Energia y Celulosa S.A. (ENCE) at the
company's request. The outlook was negative at the time of the
withdrawal, reflecting that S&P could have lowered the rating by
one or more notches if it became certain that ENCE's concession to
operate the pulp mill in Pontevedra would be annulled. S&P thought
such an event could result in the weakening of ENCE's credit
metrics and the probable deterioration of its business risk
profile.




===========
T U R K E Y
===========

ISTANBUL METROPOLITAN: Fitch Rates New Sr. Unsec. Notes 'B+(EXP)'
-----------------------------------------------------------------
Fitch Ratings has assigned Istanbul Metropolitan Municipality's
(B+/Negative) upcoming issue of senior unsecured notes an expected
long-term rating of 'B+(EXP)'. The proposed USD305 million
fixed-rate bond will have a tenor of five years. The proceeds will
be used to finance two of Istanbul's metro projects.

The assignment of the final rating is contingent on the receipt of
documents confirming the information already received.

KEY RATING DRIVERS

The proposed bond will represent a direct, unconditional,
unsubordinated and unsecured obligation of Istanbul and will rank
pari passu with all of its present and future unsecured and
unsubordinated obligations, which are rated in line with Istanbul's
'B+' Long-Term Foreign-Currency Issuer Default Rating (IDR).

Istanbul's 'vulnerable' risk profile and 'aa' debt sustainability
lead to a Standalone Credit Profile (SCP) of 'b+'. Istanbul's IDRs
are aligned with the sovereign's IDR (B+/Negative). The Negative
Outlooks on the IDRs reflect that on the sovereign. In Fitch's
assessment, Fitch does not apply extraordinary support from the
upper-tier government or asymmetric risk for Istanbul.

Istanbul is the economic and financial hub of the country with a
value-added contribution to the national economy far above the
national average (share of national GDP consistently at 30%).

KEY ASSUMPTIONS

Qualitative Assumptions:

Fitch assumes the long-term rating of Istanbul's issued senior
unsecured US dollar-denominated notes will remain for the whole
maturity of the notes and is equalised with Istanbul Metropolitan
Municipality's Long-Term Foreign-Currency IDR.

Quantitative assumptions:

Not applicable to this rating action.

RATING SENSITIVITIES

Factor that could, individually or collectively, lead to positive
rating action/upgrade:

-- An upgrade of Istanbul's IDR would lead to a positive rating
    action on the senior unsecured notes.

Factor that could, individually or collectively, lead to negative
rating action/downgrade:

-- A downgrade of Istanbul's IDR would lead to negative rating
    action on the senior unsecured notes.

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.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

Istanbul's IDRs, and hence its bond rating, are capped by the
Turkish sovereign 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.



=============
U K R A I N E
=============

METINVEST BV: Fitch Affirms 'CCC' LT IDRs
-----------------------------------------
Fitch Ratings has affirmed Metinvest B.V.'s Long-Term Foreign- and
Local-Currency Issuer Default Ratings (IDR) at 'CCC' and senior
unsecured rating at 'CCC'. The Recovery Rating is 'RR4'.

Fitch has also downgraded the company's National Long-Term rating
to 'AA+(ukr)' from 'AAA(ukr)' following the agency's downgrade of
Ukraine and subsequent recalibration of the national rating scale.
The Rating Outlook for the National Long-Term rating is Stable. A
full list of ratings is detailed below.

Metinvest's 'CCC' Long-Term IDRs reflect its increased potential
for default after Russia's military invasion of Ukraine increases
its operational risks. Several of Metinvest's key assets are
reported to have been severely damaged, and most of its assets in
Ukraine may remain idle or under-utilised in the near future.
Furthermore, Metinvest's ability to export from Ukraine may be
affected by logistical bottlenecks. These risks are somewhat
counterbalanced by Metinvest's lack of large maturities in the next
12 months, accumulated cash balances and international assets in
its portfolio.

KEY RATING DRIVERS

Some Assets Damaged, Utilisation Falls: Metinvest's operations have
been heavily hit by Russia's invasion. Its production facilities
located in Mariupol and Avdiivka are in hot conservation mode but
the joint venture in Zaporizhzia is currently being reactivated.
Additionally, assets in Mariupol and Avdiivka are believed to be
damaged, though the scale of damage is impossible to assess at this
stage. Other assets in Ukraine, including Kametsteel and iron ore
and coking coal assets remain operational though under-utilised.
Metinvest's international assets remain operational but benefit
less from vertical integration with the group's assets in Ukraine.

Near-Term Cash Flows Uncertain: Rapid developments in Ukraine have
resulted in uncertainty over Metinvest's cash flows. Its free cash
flow (FCF) may come under some pressure in the very near term in
view of the working-capital volatility, but the group should be
able to generate moderately positive FCF later in the year, helped
by reduced capex.

Business, Financial Profiles Under Review: Metinvest's longer-term
cash flow forecasts are also uncertain at this stage given
potential damage to some of its key production facilities and
unclear duration and severity of the war with Russia. Fitch will
re-assess its business and financial profiles once Fitch has more
certainty on the extent of the damage to the company's assets, its
capex programme and other factors.

Before the war started Fitch's rating case had assumed retention of
FCF to reduce gross debt to around USD2.9 billion by 2023
(Fitch-adjusted value), which translated into funds from operations
(FFO) gross leverage of 1.5x-1.6x at mid-cycle earnings.

Access to Ports Constrained: Proximity to Black Sea and Azov Sea
ports had traditionally allowed Metinvest to benefit from cheaper
steel and iron ore exports and seaborne coal import logistics,
though its access to ports is now constrained. The company now has
to rely on rail exports, which may be subject to logistic
bottlenecks.

DERIVATION SUMMARY

The 'CCC' ratings for most corporate issuers in Ukraine reflect
heightened operational and financial risks. The uncertainty and
rapid developments make meaningful differentiation between
companies impossible at this stage. At 'CCC', issuers' ratings are
in line with Ukraine's sovereign rating but below the Ukrainian
Country Ceiling of 'B-'.

KEY ASSUMPTIONS

-- Fitch's iron ore price deck: USD110/t for 2022, USD85/t for
    2023 and USD75/t for 2024.

-- Projected cash flows are discounted compared with previous
    forecasts to reflect uncertainty regarding Metinvest's
    performance, particularly in the near term.

RECOVERY ANALYSIS ASSUMPTIONS

Fitch's recovery analysis is based on a liquidation approach, which
assumes that Metinvest would be liquidated in a bankruptcy rather
than reorganised. The liquidation estimate reflects Fitch's view of
the value of balance-sheet assets that can be realised in sale or
liquidation processes conducted during a bankruptcy or insolvency
proceeding and distributed to creditors.

Fitch assumed a 20% advance rate for inventories, receivables and
property, plant and equipment, given potential damage to the
company's Ukrainian assets but also taking into account its
overseas assets.

Fitch assumes that Metinvest's senior unsecured notes are
subordinated to its secured debt.

Taking into account Fitch's Country-Specific Treatment of Recovery
Ratings Rating Criteria and after a deduction of 10% for
administrative claims, Fitch's waterfall analysis generated a
waterfall-generated recovery computation (WGRC) in the 'RR4' band,
indicating a 'CCC' instrument rating for the company's senior
unsecured notes. The WGRC output percentage on current metrics and
assumptions is 50%.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

-- De-escalation of Russia's war in Ukraine, reducing operating
    risks;

-- More clarity on the extent of the damage to Metinvest's
    assets, operations and financial profile after the conflict
    has receded.

Factor that could, individually or collectively, lead to negative
rating action/downgrade:

-- Increased signs of a probable default, for instance from
    liquidity stress, inability to service debt or failing
    operations and depleted cash flows.

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

Weak Liquidity: Fitch views Metinvest's liquidity position as
fairly weak in view of existing operational and financial risks,
albeit still consistent with the current rating. Metinvest has no
large maturities before April 2023, when its USD176 million bond is
due, and Fitch estimates its one-year liquidity ratio is above
1.0x. However, Metinvest's cash flow generation remains uncertain.

ISSUER PROFILE

Metinvest is a sizeable eastern European producer of pig iron and
steel (10.6mt in 2021) and iron ore (31.3mt of concentrate and
5.8mt of pellets in 2021), with around 225% self-sufficiency in
iron ore and almost 70% in coking coal (following its Pokrovske
Coal transaction and integration of DMK assets, now Kametsteel).

ESG CONSIDERATIONS

Metinvest has an ESG Relevance Score of '4' for Group Structure due
to sizeable related-party transactions, which has a negative impact
on the credit profile, and is relevant to the rating 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.


DEBT                    RATING                RECOVERY    PRIOR
----                    ------                --------    -----
Metinvest B.V.

                   LT IDR CCC Affirmed                    CCC
                   ST IDR C Affirmed                      C
                   LC LT IDR CCC Affirmed                 CCC
                   LC ST IDR C Affirmed                   C
                   Natl LT AA+(ukr) Downgrade             AAA(ukr)

                   Natl ST F1+(ukr) Affirmed              F1+(ukr)

senior unsecured   LT CCC Affirmed              RR4       CCC



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

COTTAGE NURSING: Former Flintshire Care Home Put Up for Sale
------------------------------------------------------------
Business Sale reports that a former care home in Flintshire, North
Wales has been brought to market with an asking price of GBP1.25
million, after the company that operated the facility fell into
administration.

The Cottage Nursing Home in Mold closed in February 2022 after the
collapse of its operating company in September 2021, Business Sale
recounts.

Originally built as a school, the 49-bedroom site had operated
successfully as a care home for more than 30 years prior to its
closure, Business Sale notes.

According to Business Sale, joint administrators David Shambrook
and Gary Hargreaves of FRP Advisory have now engaged Christie & Co.
to bring the property to market.

The property is being sold on a vacant freehold basis, with a full
trade inventory, Business Sale states.  The care home is located on
a site covering approximately 0.86-acres in a prominent position
close to Mold town centre, offering good public transport routes.
Additional features include on-site car parking and landscaped
gardens.

The site offers care for up to 52 elderly clients, with most of its
49 bedrooms being en suite.  The care home has seen numerous
extensions, with the most recent being a wing of 24 bedrooms added
only three years ago.

Prior to the collapse of its operating company, the care home was
well-established in the Flintshire area, showing historically
strong occupancy levels and profitability, Business Sale relays.
According to research from Christie & Co, the area has a
significant under-supply of bed-compliant spaces, along with an
ageing local population, Business Sale notes.

The sale is being managed by Christie & Co's James Knight and Rob
Kinsman, Business Sale discloses.


DERBY COUNTY FOOTBALL: Kirchner to be Named as Preferred Bidder
---------------------------------------------------------------
Ed Dawes at BBC News reports that US businessman Chris Kirchner is
set to be named as the preferred bidder to take over Derby County
Football Club.

According to BBC, Mr. Kirchner is expected to be confirmed within
24 hours.

His offer for the Championship club comes three months after he
withdrew an initial bid to take the Rams out of administration, BBC
notes.

Derby manager Wayne Rooney backed Mr. Kirchner's attempt to buy the
club when the American first showed interest last year, BBC
states.

Despite indicating in November that he was keen to press ahead with
his attempt to takeover the club even after the Rams were deducted
nine points for breaches of accounting rules to add to a 12-point
penalty for going into administration, he ended talks a month
later, BBC recounts.

At the time, he said he made a formal offer to buy the club and
felt he "presented a very detailed, generous and ambitious
long-term sustainable business plan."

He had said his plans to buy Derby included the purchase of its
Pride Park Stadium home from former owner Mel Morris, BBC relays.

His interest in including the stadium as part of his latest bid is
not known, BBC notes.

An EFL board meeting is due to be held on Thursday, April 7, with
some kind of update on the whole Derby situation expected by then,
BBC discloses.

Despite announcing a number of times since December that
confirmation of a preferred bidder was imminent, Quantuma have
failed to name anyone, BBC recounts.

Former Newcastle United owner Mike Ashley and a consortium that
includes former owner Andy Appleby and backers from the United
States have been among the interested parties, BBC states.

Quantuma last week said delays were "beyond their control",
according to BBC.

The decision to place Derby into administration was taken by Mr.
Morris after proposed takeovers by Derventio Holdings and Spanish
businessman Erik Alonso collapsed last year, BBC relates.

As well as the club's debts, including GBP29.3 million owed to HM
Revenue and Customs, the search by administrators Quantuma for
potential new owners was held up by claims for compensation from
Middlesbrough and Wycombe because of Derby's breaches of financial
rules, BBC discloses.

Middlesbrough eventually reached a "resolution" over their claim
after Mr. Morris offered to personally accept responsibility for
meeting it, BBC relates.

               About Derby County Football Club

Founded in 1884, Derby County Football Club is a professional
association football club based in Derby, Derbyshire, England.  The
club competes in the English Football League Championship  (EFL,
the 'Championship'), the second tier of English football.  The team
gets its nickname, The Rams, to show tribute to its links with the
First Regiment of Derby Militia, which took a ram as its mascot.
Mel Morris is the owner while Wayne Rooney is the manager of the
club.  

On Sept. 22, 2021, the club went into administration.  The EFL
sanctioned a 12-point deduction on the club, putting the team at
the bottom of the Championship.  Andrew Hosking, Carl Jackson and
Andrew Andronikou, managing directors at business advisory firm
Quantuma, had been appointed joint administrators to the club.

DIGME FITNESS: Enters Administration, Owes GBP6MM to Creditors
--------------------------------------------------------------
Jacob Thorburn at Mail Online reports that a high-end fitness chain
backed by Rishi Sunak's millionaire wife has collapsed after
receiving taxpayer-backed furlough payments of up to GBP630,000.

Digme Fitness, which called in creditors last month, owes around
GBP6.1 million in what is understood to be unpaid VAT and PAYE, and
counts Akshata Murthy, 41, among its directors, Mail Online
discloses.

Creditors and suppliers are not expected to recover any money after
the company fell into administration, Mail Online notes.

The developments come despite Digme receiving between GBP310,000
and GBP635,000 in furlough payments between December 2020 and
September 2021, Mail Online relays, citing the Times.


EM MIDCO 2: S&P Assigns Prelim 'B' Long-Term Issuer Credit Rating
-----------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B' long-term issuer
credit rating to EM Midco 2 Ltd. (Element) and its preliminary 'B'
issue rating and preliminary '3' recovery rating to its $1,825
million term loan B (TLB) split across a USD and EUR tranche.

S&P said, "The stable outlook reflects our expectation that Element
will deleverage from below 12x in 2022 (including PIK notes and
excluding any annualization for acquisitions) to close to 9x by
2023, supported by topline growth and margin expansion. We expect
tailwinds from ESG-linked initiatives, coupled with some synergy
realization and full-year effects from 2022 acquisitions. We
anticipate funds from operations (FFO) cash interest coverage above
2x from 2023 and positive free operating cash flow (FOCF)
generation."

Previous minority shareholder Temasek is acquiring Element
Materials Technology Ltd. from private equity company Bridgepoint,
via a new entity, EM Midco 2 Ltd. (Element).

This will be funded with $2.975 billion of new debt (including $800
million of payment-in-kind [PIK] notes from the holdco), alongside
$3.985 billion of equity (including rolled equity) and $80 million
of cash on balance sheet.

Element's business risk profile is supported by its leading
position in materials and product-qualification testing. Its
competitive advantage stems from strong technical expertise in
subsegments of the testing, inspection, and certification (TIC)
market, which are increasingly supported by regulatory and
sustainability drivers. Excess funds from the transaction are
intended for the acquisition of a North American laboratory-based
TIC provider, which focuses primarily on testing services in North
America across various end markets. Post-acquisition, the combined
entity will cement itself as market leader in North America for
space and defense TIC, the global leader and No. 1 player by
revenues in the global aerospace market. It will also be in the top
five TIC providers for pharma. With increased testing requirements
in these industries--which need to comply with local, global, and
industry-specific regulations and standards--80% of Element's
revenue is now driven by regulation.

Element's specialized TIC services allow the group to operate in an
industry with high barriers to entry, limiting new competitors. The
bulk of the combined entity's revenues will come from segments that
require technical complexity and expertise such as life sciences
(23%), connected technology (18%), and commercial aerospace (15%).
The reputational risk associated with such segments calls for
end-user trust. Element is well positioned in this regard given its
long-term relationships with high-profile industry leaders.
Post-acquisition, Element will benefit from a large laboratory
network (over 230 labs for the combined entity), creating a
significant advantage over industry newcomers that face high
laboratory costs upfront.

Regulation-driven revenues, alongside a structural shift toward
noncyclical markets, support long-term revenues, margins, and cash
stability. An increase in noncyclical markets' revenue share to 58%
(2022) from 25% (2016)--a trend likely to continue--suggests
Element is well placed to maintain EBIDTA margins in line with
peers. The North American acquisition should further strengthen
cash stability as the combined entity is well placed to benefit
from increased end-market-user diversification. Apart from the
above-mentioned end markets, Element is also well diversified
across the built environment (12%), space and defense (11%), the
energy transition (10%), and assurance and other (10%). This
diversification--and the fact that over 80% of revenues are backed
by regulation--makes for stable revenues, operating margins, and
cash flows. Element has demonstrated its ability to generate
positive FOCF amid challenging business conditions, which supports
its business resilience. This is despite having a business model
that requires highly specialized operations, creating a relatively
inflexible cost base. Element requires highly educated staff with
deep technical expertise, a scarce resource that is not easy to
reduce during economic downturns. However, management was able to
adjust the operating cost base swiftly during the pandemic by up to
$100 million via staff reductions (81%), salary suppression (10%),
and operating spending cuts (9%). Relatively low capital
expenditure (capex) and working capital needs further support FOCF,
signifying that Element can operate well in challenging
conditions.

S&P sees the green transition to low and carbon-free energy as
positive for Element. More than 60% of Element's revenues are
driven by customers' ESG targets, compared to an estimated 40%-45%
for Element's competitors. Customers' increased focus on
sustainability and health and safety initiatives is likely to
increase demand for Element's services. Element's end markets
contribute to more than 80% of global greenhouse gas emissions and
will need to reduce this to 60% by 2035. The materials technology
sector will be key to decarbonization, and industry investment will
be critical to helping entities reach net zero targets.

S&P said, "Our assessment of Element's business risk profile is
constrained by the niche markets in which it operates.Its absolute
revenue base, including the $1.2 billion effect of the acquisition
expected by end-2022, remains small compared to the overall TIC
market size and larger peers. For instance, market leaders such as
Bureau Veritas have almost 11x the revenue of the combined entity.
This reflects the niche markets in which the combined entity
operates, which are very small compared to the total outsourced TIC
market. Element's focus in a highly fragmented market is on the
product testing stage in niche industries, while other players such
as Bureau Veritas operate across multiple segments of the value
chain. This limits Element's business strength relative to peers.

"Our financial risk profile assessment incorporates high leverage
for fiscal 2022, before significant deleveraging supported by
organic as well as inorganic topline growth and margin expansion.
By the end of 2022, we expect Element's S&P Global Ratings-adjusted
net debt to EBITDA will be below 12x. This includes the holdco PIK
notes of $800 million, which we consider a debt liability. On a
cash pay basis, we foresee leverage of 9.0x while FOCF is negative.
This mainly reflects transaction fees of around $105 million, with
the expected adjusted EBITDA of $276 million being impacted by
exceptional costs of about $25 million. Furthermore, fiscal 2022
adjusted EBITDA does not include any full-year annualization of the
North American acquisition. From 2023, we expect leverage to
improve to below 7.0x coupled with solid FOCF generation of above
$65 million and FFO cash interest coverage sustainably above 2x.

"Element will see the benefits of the full-year effects of the
acquisitions in 2023, in our view. We view 2022 as a
transformational year given the change in ownership, as well as
numerous acquisitions. In 2023, we forecast solid topline growth of
21.5%, of which we estimate about one-third will come from
like-for-like growth across all segments. We also estimate around
150 basis points of margin expansion coming from better scale, a
positive product mix reflecting a bigger share of higher-margin
business, and lower exceptional costs. Noting Element's business
strategy to continue growing through bolt-on mergers and
acquisitions (M&A), as well as organic growth, we have factored
into our base case about $30 million of additional acquisition
spending annually from 2023. We expect this amount to be funded via
drawdowns under the $200 million revolving credit facility (RCF).
For 2024, we forecast revenue growth of 6.5%, mostly organic.
ESG-related initiatives from clients will provide tailwinds to
business growth. We forecast an adjusted EBITDA margin of 25.6% in
2024, supporting FOCF generation of close to $100 million and
deleveraging to 8.5x and 6.0x on a cash-pay basis.

"We view the group's financial policy as neutral and Temasek as a
strategic investor. Temasek's acquisition of Element from the
previous private equity owner, Bridgepoint, is expected to result
in a less aggressive financial policy. Our view is that the company
will not pay dividends in the short-to-medium term and will focus
on organic growth. This has led to our neutral financial policy
assessment, despite the high opening leverage. Our assessment
aligns with other businesses we rate and of which Temasek has
majority ownership, and for which we also have a neutral financial
policy assessment.

"The final ratings will depend on the successful completion of the
proposed transaction and our receipt and satisfactory review of all
final transaction documentation. Accordingly, the preliminary
rating should not be construed as evidence of the final ratings. If
we do not receive final documentation within a reasonable time
frame, or if final documentation departs from the material
reviewed, we reserve the right to withdraw or revise the ratings.
Potential changes include, but are not limited to, use of loan
proceeds, maturity, size, and conditions of the loans, financial
and other covenants, security, and ranking. The rating on Element
Materials Technology remains 'B-' on CreditWatch positive. We
expect to align this rating with the final rating on Element once
the transaction has closed.

"The stable outlook indicates that we expect Element to deleverage
from below 12x (9x on a cash-pay basis) in 2022 to close to 9x
(6.8x on a cash-pay basis) by 2023. This will be supported by
topline growth and margin expansion on growth across all end
markets amid tailwinds from ESG-linked initiatives. This momentum
will be coupled with some synergy realizations and the full-year
effects of acquisitions undertaken during 2022. We anticipate
Element will achieve FFO cash interest coverage above 2x from 2023,
while generating sound positive FOCF."

S&P could consider lowering the rating if:

-- Element generates weak or negative FOCF on a sustained basis;

-- FFO cash interest coverage declines sustainably below 2x; and

-- Element adopts a more aggressive financial policy through
shareholder returns or material debt-funded acquisitions that
increase leverage beyond S&P's current projections. S&P currently
assumes the company will not pay shareholder dividends, but if this
changes it could weigh on the rating.

S&P said, "We could consider raising the rating on Element if its
adjusted debt to EBITDA improves to sustainably below 5x while
EBITDA margins normalize to around 25% and the group demonstrates a
track record of sustainable FOCF. We view it as unlikely that the
business would releverage to fund dividends, but we think
significant part-debt-funded acquisitions could hamper long-term
deleveraging."

Environmental, Social, And Governance

ESG credit indicators: E-1, S-2, G-2

S&P said, "Environmental factors are a positive consideration in
our credit rating analysis of Element. The company's business model
leads to cooperation with end markets that account for over 80% of
global emissions. This will need to be reduced to 60% by 2035,
creating structural demand for materials technology to act as a key
decarbonization tool. Increased demand for Element's services--like
environmental and battery testing--align closely with the
industry's environmental agenda. Element stands to profit from
increasingly stringent EU laws in the medium term, which should
more than compensate for the very slow decline in its traditional
fossil-fuel-related activities. We view social and governance
factors as neutral considerations to our rating on Element."


GREENSILL CAPITAL: Credit Suisse Litigation May Take Five Years
---------------------------------------------------------------
Silke Koltrowitz at Reuters reports that Credit Suisse said on
April 4 that litigation related to Greensill supply chain finance
funds (SCFF) could take around five years and warned that some
investors would not be able to recover their money.

Credit Suisse racked up a CHF1.6 billion (US$1.73 billion) loss
last year when it was hit by the implosion of investment fund
Archegos and the collapse of US$10 billion in SCFFs linked to
insolvent British financier Greensill, Reuters relates.

"It is expected that litigation will be necessary to enforce claims
against individual debtors and the insurance companies, which may
take around five years," Reuters quotes the Swiss bank as saying on
April 4 in a document on its website answering questions from
pension fund adviser Ethos.

It said its asset management had taken all necessary steps to
collect the outstanding amounts since March 2021, but in some cases
refinancing or sales of assets were not yet possible, Reuters
notes.

"It can be assumed that investors in the Virtuoso Fund and the High
Income Fund will suffer a loss," it said, adding the percentage of
the potential loss could not be estimated at this stage.

Credit Suisse also gave details of a US$140 million loan its
investment banking granted to Greensill in November 2020 ahead of a
possible private placement of shares in Greensill or an initial
public offering that did not happen in the end, Reuters discloses.

It said the loan did not affect the SCFFs as it was granted by
Credit Suisse's investment banking division, according to Reuters.


KCA DEUTAG: Fitch Affirms 'B+' LT IDR, Outlook Stable
-----------------------------------------------------
Fitch Ratings has affirmed KCA Deutag Alpha Limited's (KCAD)
Long-Term Issuer Default Rating (IDR) at 'B+' with a Stable
Outlook. The agency has also affirmed the senior secured rating of
the notes issued by KCA Deutag UK Finance plc at 'B+' with a
Recovery Rating of 'RR4'.

KCAD has recently announced that it will suspend new investments in
Russia, which has traditionally been one of its key regions,
following the country's invasion of Ukraine. Even though KCAD's
exposure to Russia has been meaningful Fitch believes that its
business and financial profile will remain commensurate with the
current rating.

KCAD's 'B+' rating is constrained by the oilfield services (OFS)
sector's high volatility, spare capacity and competition, the
group's fairly modest scale and its status as largely a one-service
provider (onshore and offshore drilling).

Rating strengths are its relatively geographically diversified
operations with a focus on the Middle East, including Oman and
Saudi Arabia, where operations are typically more resilient during
downturns compared with other regions. The rating also reflects
KCAD's conservative leverage, sound liquidity and free cash flow
(FCF)-generation capacity.

KEY RATING DRIVERS

New Investments in Russia Suspended: Around 20% of KCAD's owned
drilling rigs are located in Russia. In 2020 and 2021, Fitch
estimates that Russia accounted for around a quarter of the group's
revenue and EBITDA. Fitch conservatively assumes that KCAD's
Russian operations will not contribute to the group's cash flows in
2022 and beyond, meaning that its operating cash flows will be
lower than Fitch previously expected. However, this will partially
be mitigated by KCAD's increased operations in Oman.

Business Profile Intact: KCAD's business profile will still be
commensurate with the 'B+' rating, despite suspended investments in
Russia. Projected EBITDA, excluding Russia, should be broadly
comparable to that of ADES International Holding PLC (B+/Stable)
and the two companies have a similar number of onshore drilling
rigs.

Acquisitions Possible: KCAD's strategy includes pursuing
opportunistic acquisitions, given expected consolidation in the
sector, but its revised financial policy targets a maximum net
debt/EBITDA of 2x, which is more conservative than most peers'.
Fitch assumes that acquisitions will be funded from FCF and larger
acquisitions will include an equity component.

Utilisations Bottomed Out: Fitch expects that utilisation will
gradually improve on the back of stronger oil prices and relaxation
of OPEC+ production restrictions. Utilisation in the land business
dropped sharply to about 50% in 2H20 and 56% in 3Q21, from 73% in
1H20, driven by very low utilisation in non-core countries and
regions, such as Europe, Africa and Iraq. It remained at the same
weak level in 1H21 but should increase to at least 59% in 4Q21,
based on KCAD's order book.

Offshore Operations Moderately Improved: In late 2021 around 30% of
KCAD's offshore rigs were stacked, compared with around 50% in
2020. Fitch expects utilisation to remain broadly stable in
2022-2023. KCAD's offshore operations are asset-light and have low
operating leverage, making KCAD less exposed to the highly volatile
offshore market. The long-term nature of most contracts in the
segment also makes its performance more predictable.

Order Book Offers Visibility: KCAD's order book provides some
certainty to its medium-term performance. As at 1 November 2021,
its total backlog amounted to USD2.2 billion (plus an optional part
of USD2.6 billion), compared with an annual Fitch-projected revenue
of USD1.2 billion for 2022-2025. KCAD's revenue is more diversified
by customer than peers'.

Low Leverage: KCAD's funds from operations (FFO) net leverage is
conservative and significantly lower than most peers'. Under
Fitch's rating case it will peak at 2.3x-2.4x in 2022-2023,
assuming no cash flows from Russia, before falling to below 2x in
2024-2025 on positive FCF and recovering earnings. In 2023 KCAD's
FCF could come under pressure from higher capex related to a
recently won contract in Oman, but it should turn positive in the
following years. KCAD's accumulated cash and positive FCF could be
used to fund inorganic growth opportunities.

Onshore Focus: KCAD's drilling operations are focused on onshore
(around 63% of total EBITDA in 2020), but offshore also represents
a significant part of the business (34%). The remaining 3% is its
rig construction and engineering units. KCAD's onshore fleet,
excluding Russia, includes 59 rigs, 57 of which it owns, while all
of its offshore platforms and jack-ups (31 units) are owned by
KCAD's clients. In the land business, excluding Russia, KCAD's
largest exposure is to Oman (22 rigs), followed by Saudi Arabia
(eight) and Europe (six). Fitch views its operations as reasonably
diversified by region.

DERIVATION SUMMARY

Fitch regards UAE-headquartered ADES International Holding PLC
(ADES, B+/Stable) and Canadian Precision Drilling Corporation
(Precision, B+/Stable) as KCAD's closest peers. However, unlike
these two peers, KCAD also operates rig construction and
engineering units, which currently do not contribute much to
profits but could provide growth opportunities over the longer
term.

ADES's operations are focused on Saudi Arabia and Kuwait, where the
cost of upstream production is very low, and benefit from a high
share of contracted revenue and a strong backlog, although its
leverage is higher than KCAD's.

Unlike KCAD, Precision focuses solely on onshore operations.
Precision's projected scale measured by EBITDA is higher than that
of KCAD, though its leverage is also higher and its operations are
more volatile.

KEY ASSUMPTIONS

Fitch's key assumptions within its rating case for the issuer
include:

-- Results for 2021 are based on the first nine months, and an
    estimate for 4Q;

-- Improvements in onshore performance driven by market recovery
    and increased operations in Oman;

-- Broadly stable offshore operations to 2025;

-- EBITDA margin (after lease charge) at around 15% in 2022-2023
    and increasing to around 18% in 2024-2025;

-- Capex peaking in 2023 on the back of the new contract in Oman
    before moderating to 2025;

-- No dividend payments;

-- No cash flows from Russia's operations in 2022-2025.

KEY RECOVERY ANALYSIS ASSUMPTIONS

-- The recovery analysis assumes that KCAD would be reorganized
    as a going concern in bankruptcy rather than liquidated.

-- The going concern (GC) EBITDA reflects Fitch's view of a
    sustainable, post-reorganisation EBITDA level upon which Fitch
    bases the enterprise valuation (EV). KCAD's going concern
    EBITDA of USD158 million (net of lease charges) excludes the
    company's operations in Russia and reflects a downturn
    followed by one year of moderate recovery.

-- In a distressed scenario, Fitch believes that a 3.5x multiple
    reflects a conservative view of KCAD's EV. This reflects the
    structurally declining industry with pricing pressure, which
    is dependent on robust E&P budgets.

-- Fitch ranks the super senior basket above the senior secured
    notes.

-- After deduction of 10% for administrative claims and taking
    into account Fitch's Country-Specific Treatment of Recovery
    Ratings Rating Criteria, Fitch's waterfall analysis generated
    a waterfall-generated recovery computation (WGRC) in the 'RR4'
    band, indicating a 'B+' rating for the senior secured notes.
    The WGRC output percentage on current metrics and assumptions
    is 50%.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

-- A record of maintaining a conservative financial profile with
    FFO net leverage below 2x through the cycle;

-- Material improvement in business profile through higher
    exposure to low-cost producers or larger scale.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

-- Large debt-funded acquisitions, sizeable capex or dividends
    leading to FFO net leverage consistently above 3x;

-- Unexpected erosion in competitive position leading to
    significantly lower utilisation or daily rig rates.

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

Comfortable Liquidity: Following its restructuring in December
2020, KCAD's liquidity is strong, with no debt maturities until
2025. Fitch expects KCAD to be FCF-neutral/positive even assuming
no contribution from its Russian business, with the exception of
2023, when its FCF may come under some pressure from increased
capex.

ISSUER PROFILE

KCAD is an international onshore and offshore drilling and
engineering contractor to the oil and gas industry.

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.


DEBT                  RATING         RECOVERY     PRIOR
----                  ------         --------     -----
KCA DEUTAG ALPHA LIMITED

                  LT IDR B+ Affirmed              B+

KCA DEUTAG UK Finance plc

senior secured    LT B+ Affirmed       RR4        B+

MECHFS: Enters Administration, Staff Seek New Jobs
--------------------------------------------------
Grant Prior at Construction Enquirer reports that staff at
Doncaster-based MechFS are looking for new jobs as the M&E
specialist stops work on sites.

According to Construction Enquirer, employees at the GBP50 million
turnover business have taken to LinkedIn to find new roles.

MechFS was being put into administration on April 5 over big bad
debt, Construction Enquirer relays, citing an employee.

MechFS also has regional offices in the Midlands, Sheffield and
Leeds and has been trading for more than a decade.

Latest accounts for the year to June 30, 2020, show the firm made a
pre-tax profit of GBP923,970 from a turnover of GBP49.7 million and
employed 104 staff, Construction Enquirer discloses.


TRICORN GROUP: In Administration; US Unit Sold Via Pre-Pack Deal
----------------------------------------------------------------
Sam Metcalf at TheBusinessDesk.com reports that AIM-listed pipe
manufacturer Tricorn has finally fallen into administration.

Mike Denny and Mark Firmin of Alvarez & Marsal have been appointed
as joint administrators to the Tricorn Group, TheBusinessDesk.com
discloses.

Immediately following the administrators' appointment, Tricorn USA,
a subsidiary of the company, was sold to Lander Holdings via a
pre-pack deal, TheBusinessDesk.com relates.  Tricorn USA has been
supplying piping and tubing solutions globally for more than three
decades.

According to TheBusinessDesk.com, Mike Denny, managing director,
Alvarez & Marsal, said "The lasting effects of the pandemic and
rising input costs in recent months have left many businesses
struggling.  We are pleased to have secured a future for the
business through a going concern sale to a strategic buyer, which
preserves over 100 jobs and provides a platform for growth under
new ownership."

Tricorn admitted to running out of cash last September and filed a
notice to appoint administrators, TheBusinessDesk.com recounts.



                           *********


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 2022.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
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