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       T R O U B L E D   C O M P A N Y   R E P O R T E R

                          E U R O P E

          Thursday, April 7, 2022, Vol. 23, No. 64

                           Headlines



F R A N C E

TARKETT PARTICIPATION: Fitch Lowers LT IDR to 'B+', Outlook Stable


I R E L A N D

PALMER SQUARE 2022-2: Moody's Assigns (P)Ba3 Rating to Cl. E Notes
PURPLE FINANCE 1: Moody's Affirms B1 Rating on EUR9.5MM F Notes


I T A L Y

FIS FABBRICA: Fitch Gives Final 'B' LT IDR, Outlook Stable


M O N T E N E G R O

ATLAS BANKA: Stock Exchange Moves Securities to MTP Segment


R O M A N I A

COMPLEXUL ENERGETIC: Romania Grants EUR2.6-Bil. Restructuring Aid


R U S S I A

[*] RUSSIA: U.K. Imposes New Sanctions Following Ukraine Invasion


S E R B I A

FABRIKA VAGONA: Consortium Acquires Assets for RSD498.6 Million


S P A I N

TIMBER SERVICIOS: S&P Assigns 'B' Long-Term Ratings, Outlook Stable


S W I T Z E R L A N D

CEP V INVESTMENT: S&P Assigns 'B' LT ICR on Carlyle Buyout


U N I T E D   K I N G D O M

BRACKNELL PROPERTY: Park Inn Hotel Lease Put Up for Sale
EM MIDCO 2: Moody's Assigns B2 CFR, Outlook Stable
STERLING SUFFOLK: Bought Out of Administration by Amberside ALP
VTB CAPITAL: Applies for Administration Following Sanctions

                           - - - - -


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F R A N C E
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TARKETT PARTICIPATION: Fitch Lowers LT IDR to 'B+', Outlook Stable
------------------------------------------------------------------
Fitch Ratings has downgraded Tarkett Participation's Long-Term
Issuer Default Rating (IDR) to 'B+' from 'BB-' and senior secured
instrument rating to 'BB-' from 'BB+'. The Recovery Rating has been
changed to 'RR3' from 'RR2'. The Outlook on the IDR is Stable.

The downgrade reflects an expected decline of Tarkett's profitable
business in Russia, due the ongoing conflict with Ukraine resulting
in a weaker economy in the region and rouble. Fitch also expects
its remaining operations to be affected by prolonged pressure on
earnings from higher raw material costs, due to a delay to the cost
increase being passed onto customers. Also, its north America
segment performed below Fitch's expectations for 2021 with a lower
EBITDA margin. Fitch expects Tarkett to be outside of its leverage
sensitivities for an extended period as a result.

The rating reflects Tarkett's leading market positions across a
number of product segments and markets combined with strong
diversification, a sound split between renovation and new-build,
and a presence in both the commercial and private residential
end-customer segments. The rating is weighed down by a weaker
financial profile largely attributable to weaker and more volatile
profitability versus the sector. Liquidity is however expected to
remain comfortable through the rating horizon to 2025.

KEY RATING DRIVERS

Heavy Hit to Russian Operations: Sanctions imposed by the West put
pressure on Tarkett's profitable Russian business. While the
Russian business is mainly produced and sourced locally, Fitch
expects both the weakening economy and a declining rouble to affect
demand, which will shave EBITDA in Russia. The inability to
repatriate cash from Russia is not material as to date cash flow
generated has been retained in Russia to further grow the business
there.

Raw Materials Price Pressure: Fitch expects further margin pressure
from high input costs. Tarkett struggled to increase prices during
2021, resulting in an EBITDA margin of 6.8% versus 7.8% expected
previously. While managing a number of price increases, there is a
delay to passing on cost inflation and it only managed to recover
half of 2021's cost increases. This explains the 200bp yoy lower
EBITDA margins in 2021 despite successful structural cost savings.
Tarkett has reasonable pricing power, having raised prices again in
January, and Fitch expects continued sound demand for its flooring
products to allow further price increases to absorb input cost
inflation in 2022.

Higher Leverage: Last year's addition of new debt to finance the
acquisition of minority held shares increased funds from operations
(FFO) gross leverage to 7.3x, from 4.2x at end-2020 and net
leverage to 6.0x from 2.7x. This is higher than Fitch's previous
expectations of 5.7x (4.6x net). With expected limited deleveraging
in 2022, Fitch now forecasts FFO gross and net leverage at
6.3x-5.8x and 5.3x-4.7x, respectively, in 2023-2024 versus Fitch's
negative sensitivity for a 'BB-' rating of 5.5x and 4.5x.

Balanced End-market Diversification: Tarkett's business profile
benefits from an 80/20 split between the more stable renovation
market versus the, potentially, more volatile new-build. Further,
the flooring renovation cycle is quite frequent, with office space
in particular generally changing flooring with every new tenant or
lease contract. Its 68/32 split between commercial and private
residential is generally a positive balance between the different
associated demand drivers. However, in 2020 and 2021, the
commercial business lagged the residential as the latter gained
from general home-improvement trends. Tarkett also benefits from
geographic diversification across the more mature north America
(44% of sales) and Europe (35%) and faster growing CIS countries
and Asia Pacific.

Raw Material Sensitivity: Tarkett is exposed to raw-material cost
swings and has seen a gradual increase in a number of its input
materials, notably of oil-based derivatives PVC, plasticisers,
vinyl etc. It suffers from a fairly long time lag in passing on
cost inflation to its customers. Commercial projects can have up to
one year between order and delivery as floor installation is at a
late stage of project construction. The current increase of crude
oil and freight costs put further pressure on margins, further
delaying earnings recovery to historical levels.

Notching of Senior Secured Debt: The IDR downgrade to the single-B
category has resulted in a change to Fitch's bespoke recovery
analysis for the senior secured debt, and a two-notch downgrade in
the senior secured debt rating to 'BB-'. In Fitch's recovery
analysis, Fitch conservatively values Tarkett by applying a 5.5x
distressed multiple to an estimated post-restructuring EBITDA of
EUR170 million. The output from this recovery waterfall suggests
above-average recovery prospects of 51%-70%, resulting in an 'RR3'
Recovery Rating and a one-notch uplift from the IDR.

DERIVATION SUMMARY

Tarkett's nearest peer that is rated by Fitch is
HESTIAFLOOR/Gerflor (B+/Negative), which has fairly similar product
offerings of vinyl and linoleum flooring for primarily commercial
end-customers. Gerflor is smaller, about a third in turnover with a
fairly high exposure to France, but has better EBITDA margins
(13%-14%) than Tarkett (7-8%). Victoria plc (BB-/Stable), which
targets the residential flooring segment mostly in Europe, is also
smaller and generates higher EBITDA margins (around 17%) than
Tarkett, due to involvement in highly profitable ceramic flooring.

Other peers include the largest flooring company globally, US-based
Mohawk Industries (BBB+/Stable) and building products company Masco
Corporation (BBB/Stable). These companies are more than twice the
size of Tarkett, and have a higher exposure to residential
end-customers. Mohawk is large also in ceramics tiles and Masco's
offering spans a portfolio of home-improvement building products.

Tarkett's FFO gross leverage of 7.3x-6.3x in 2022-2023 is somewhat
lower than that of similarly rated Gerflor's 7.6x- 6.7x in the same
period. Tarkett's leverage profile through the rating horizon is
somewhat similar to PCF's GmbH (B+/Stable) with FFO gross leverage
trending towards 6x.

KEY ASSUMPTIONS

-- Revenue to decline by nearly 4% in 2022, mainly on the
    depreciation of rouble before it starts growing at low single
    digits until 2025;

-- EBITDA margin to decrease to 6.6% in 2022 on inflated costs,
    partly mitigated by structural savings and passing on higher
    prices to customers before recovering to 7% in 2023 and above
    it in the following two years;

-- Capex at around 3.2% of sales until 2025;

-- No dividends assumed over the rating horizon;

-- M&A of EUR20 million p.a to 2025;

-- No buyback of the remaining 9.6% of shares.

RECOVERY ASSUMPTIONS:

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

-- A 10% administrative claim.

-- Factoring line is ranked super senior.

-- The going-concern EBITDA estimate of EUR170 million reflects
    Fitch's view of a sustainable, post-reorganisation EBITDA upon
    which Fitch bases the valuation of the company.

-- An enterprise value multiple of 5.5x is used to calculate a
    post-reorganisation valuation. It reflects Tarkett's leading
    position in its niche markets (such as sport or resilient
    flooring and commercial carpets in western Europe or wood
    flooring in the Nordics), long-term relationship with clients
    and an 80% revenue share in the renovation segment, limiting
    its exposure to more volatile new-build projects.

-- The waterfall analysis output for the senior secured debt
    (around EUR900 million term loan B (TLB)) generated a ranked
    recovery in the 'RR3' band, indicating an instrument rating of
    'BB-'. The waterfall analysis output percentage on current
    metrics and assumptions was 56%.

RATING SENSITIVITIES

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

-- Delivery of cost-saving measures driving an improved operating
    margin profile;

-- EBITDA margin sustainably above 8%;

-- Free cash flow (FCF) margins sustainably above 2%;

-- FFO gross leverage below 5.5x and debt /EBITDA below 5.0x on a
    sustained basis.

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

-- EBITDA margin below 6%;

-- FFO margin below 4%;

-- Negative FCF;

-- FFO gross leverage sustainably above 6.5x and debt/EBITDA
    above 6.0x.

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: Fitch expects Tarkett to maintain sound
liquidity and forecast about EUR160 million of Fitch-adjusted cash
at end-2022. Fitch has revised down its forecast of FCF generation
with FCF margins of around 1% over the rating horizon, compared
with 2%-3% previously in 2021-2024. Its liquidity position will be
supported by an undrawn revolving credit facility of EUR350 million
with maturity in 2027, no dividend payments, limited M&A activity
and no debt amortisations scheduled before its bullet maturity in
2028.

ISSUER PROFILE

Tarkett is a leading flooring and sports surface manufacturer
offering solutions to the healthcare, education, housing, hotels,
offices, commercial and sports markets. Products include vinyl,
linoleum, carpet, rubber and wood flooring as well as synthetic
turf and athletics track.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of 3 - ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or to the way in which they are being
managed by the entity.

Rating Actions

DEBT                 RATING         RECOVERY    PRIOR
----                 ------         --------    -----
Tarkett Participation

                 LT IDR B+ Downgrade            BB-

senior secured   LT BB- Downgrade      RR3      BB+



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I R E L A N D
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PALMER SQUARE 2022-2: Moody's Assigns (P)Ba3 Rating to Cl. E Notes
------------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following provisional ratings to the Notes to be issued by Palmer
Square European Loan Funding 2022-2 Designated Activity Company
(the "Issuer"):

EUR272,000,000 Class A Senior Secured Floating Rate Notes due
2031, Assigned (P)Aaa (sf)

EUR44,000,000 Class B Senior Secured Floating Rate Notes due 2031,
Assigned (P)Aa2 (sf)

EUR18,000,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)A2 (sf)

EUR22,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Baa3 (sf)

EUR16,000,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2031, Assigned (P)Ba3 (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 static CLO. The issued notes will be collateralized
primarily by broadly syndicated senior secured corporate loans.
Moody's expect the portfolio to be 100% ramped as of the closing
date.

Palmer Square Europe Capital Management LLC (the "Servicer") may
sell assets on behalf of the Issuer during the life of the
transaction. Reinvestment is not permitted and all sales and
unscheduled principal proceeds received will be used to amortize
the notes in sequential order.

In addition, the Issuer will issue EUR26,700,000 of Subordinated
Note due 2031 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 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 Servicer's investment decisions and management
of the transaction will also affect the debt's 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: EUR400,000,000.00

Diversity Score: 59

Weighted Average Rating Factor (WARF): 2584

Weighted Average Spread (WAS): 3.47% (actual spread vector of the
portfolio)

Weighted Average Coupon (WAC): 3.34% (actual spread vector of the
portfolio)

Weighted Average Recovery Rate (WARR): 45.75%

Weighted Average Life (WAL): 5.11 years (actual amortization vector
of the portfolio)

PURPLE FINANCE 1: Moody's Affirms B1 Rating on EUR9.5MM F Notes
---------------------------------------------------------------
Moody's Investors Service has upgraded the rating on the following
notes issued by Purple Finance CLO 1 DAC:

EUR45,700,000 Class B Senior Secured Floating Rate Notes due 2031,
Upgraded to Aa1 (sf); previously on Jan 10, 2018 Definitive Rating
Assigned Aa2 (sf)

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

EUR173,700,000 Class A Senior Secured Floating Rate Notes due
2031, Affirmed Aaa (sf); previously on Jan 10, 2018 Definitive
Rating Assigned Aaa (sf)

EUR20,400,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed A2 (sf); previously on Jan 10, 2018
Definitive Rating Assigned A2 (sf)

EUR15,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed Baa2 (sf); previously on Jan 10, 2018
Definitive Rating Assigned Baa2 (sf)

EUR13,800,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed Ba2 (sf); previously on Jan 10, 2018
Definitive Rating Assigned Ba2 (sf)

EUR9,500,000 Class F Senior Secured Deferrable Floating Rate Notes
due 2031, Affirmed B1 (sf); previously on Jan 10, 2018 Definitive
Rating Assigned B1 (sf)

Purple Finance CLO 1 DAC issued in January 2018, is a
collateralised loan obligation (CLO) backed by a portfolio of
mostly high-yield senior secured European loans. The portfolio is
managed by Ostrum Asset Management. The transaction's reinvestment
period ended in January 2022.

RATINGS RATIONALE

The rating upgrade on the Class B notes is primarily a result of
the transaction having reached the end of the reinvestment period
in January 2022.

In light of reinvestment restrictions during the amortisation
period, and therefore the limited ability to effect significant
changes to the current collateral pool, Moody's analysed the deal
assuming a higher likelihood that the collateral pool
characteristics would maintain an adequate buffer relative to
certain covenant requirements. In particular, Moody's assumed that
the deal will benefit from a shorter amortisation profile and
higher spread levels than it had assumed at the last rating action
in January 2018.

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

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

Performing par and principal proceeds balance: EUR294.5m

Defaulted Securities: EUR1.5m

Diversity Score: 48

Weighted Average Rating Factor (WARF): 2767

Weighted Average Life (WAL): 4.32 years

Weighted Average Spread (WAS) (before accounting for Euribor
floors): 3.57%

Weighted Average Recovery Rate (WARR): 45.84%

Par haircut in OC tests and interest diversion test: 0.35%

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:

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

Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's 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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I T A L Y
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FIS FABBRICA: Fitch Gives Final 'B' LT IDR, Outlook Stable
----------------------------------------------------------
Fitch Ratings has assigned F.I.S. Fabbrica Italiana Sintetici
S.p.A. (FIS) a final Long-Term Issuer Default Rating (IDR) of 'B'.
The Outlook is Stable. Fitch has also assigned FIS's EUR350 million
notes a final senior secured instrument rating of 'B+' with a
Recovery Rating of 'RR3'.

The ratings balance FIS's modest scale, product and customer
concentration risks and weak free cash flow (FCF) generation during
strategic capex growth with a well-established position in the
non-cyclical and structurally growing European CDMO (contract
development and manufacturing organisation) market, and its solid
manufacturing asset base and expertise. The rating is supported by
modest financial leverage and Fitch's expectation of a prudent
financial policy that favours low leverage against shareholder
remuneration.

The Stable Outlook reflects Fitch's expectations of continued
organic growth and mild profit margin expansion being offset by
high capex requirements over 2022-2023. Completion of its strategic
investment cycle, leading to accelerated growth, and improving
scale, diversification and profitability could result in a positive
rating action provided that management adhere to a modest leverage
profile.

KEY RATING DRIVERS

Scale, High Product Concentration: The rating reflects FIS's small
scale and high product and customer concentration. The top-five and
top-10 drug molecules are expected to account for around 40% and
55% of sales, respectively. The largest molecule (blockbuster
anti-diabetic-inhibitor of dipeptidyl peptidase-4 (DPP-4))
accounted for around 25% of sales in 2020 but Fitch expects this to
decline towards 20%, following the growth of two molecules launched
in 2021.

Strong Revenue Visibility: The rating is supported by FIS's
well-established position in a non-cyclical and growing market and
by strong revenue visibility. As a CDMO of APIs (active
pharmaceutical ingredients) for small molecules, FIS benefits from
long-term contracts with profitable clients that have high
switching costs and focus more on reliability of supply than on
costs. Setting up a contract manufacturer requires significant
capex, as well as technological knowledge, regulatory approvals and
time to build reputation. These factors, combined with the long
life-cycle of pharma products (typically over years), translate
into high revenue visibility.

Supportive Market Fundamentals: FIS's credit profile benefits from
supportive fundamentals of the broader pharmaceuticals market, with
non-cyclical volume growth driven by growing and ageing populations
and increasing access to medical care. The API market is projected
to grow at high single digits in percentage terms.

FIS is well-placed to capitalise on the continuing trend for
outsourcing by pharmaceutical companies of non-core and
technologically complex processes and to leverage its proprietary
knowledge, product pipeline and well-established client
relationships. In addition, FIS may benefit from increased local
production of pharmaceutical APIs, which in recent decades have
been increasingly sourced to China and India.

Capex Constrains FCF: A key rating weakness is Fitch's expectation
of negative FCF over 2022-2023, before FCF becomes neutral. This is
driven by expected high capex particularly in its Lonigo plant. API
manufacturing requires high capex in maintenance, optimisation and
expansion, which is underscored by the significant value of FIS's
three fully-owned manufacturing sites in Italy. Inability to
adequately support the production asset base could undermine its
organic growth prospects, which are instrumental to achieving
sustained positive FCF and deleveraging.

Potential for Margin Expansion: Fitch forecasts a modest expansion
in EBITDA margins to 17% in 2024 from 15.5% in 2017-2021. FIS has
ambitions to expand margins beyond 20% by 2025, on the back of
procurement synergies and operating leverage from new business.
Achieving such margins would result in positive FCF generation on a
sustained basis and upward pressure on the rating. Revenue is
subject to some volatility driven by the commercial success of
target drugs, the gain of new customers and potential loss of key
contracts, as it occurred in 2017.

Low Leverage: The rating is supported by modest leverage, following
FIS's leveraged buyout, with funds from operations (FFO) net
leverage around 4.5x and net debt/EBITDA around 3.7x. Fitch
includes in its calculation of gross debt used factoring facilities
and treats FIS's subordinated EUR53 million convertible bond as
equity, based on Fitch's expectation of no recurring cash interest
payment on the instrument.

Conservative Financial Policy: Fitch assumes that FIS will follow a
conservative financial policy, which remains at the discretion of
its owners, the Ferrari family. This drives Fitch's assumption that
leverage will remain modest at or below current levels. Fitch
assumes that FIS will pay EUR2 million dividends per year and that
it will focus on organic growth though expansion capex over
acquisitions. The rating has leverage headroom for accretive
bolt-on acquisitions funded by internally generated cash flow, with
a neutral-to-positive rating impact. Large-scale debt-funded M&A
are not included in the rating case and would be an event risk.

DERIVATION SUMMARY

Fitch rates FIS using its global Generic Rating Navigator. Under
this framework, the business profile of FIS is supported by
resilient end-market demand, continued outsourcing trends,
considerable entry barriers, with high switching cost for clients,
and by strong revenue visibility. The rating is constrained by its
overall moderate scale in a fragmented and competitive CDMO market
with some commoditisation in the simple molecules segment.

Fitch regards capital- and asset-intensive businesses such as
Recipharm (Roar Bidco AB, B/Positive), PharmaZell (European Medco
Development, B/Stable) and Ceva Sante (Financiere Top Mendel,
B/Stable) and privately rated CDMOs as the closest peers to FIS as
they all rely on ongoing investments to grow at or above market and
to maintain or improve operating margins.

FIS is smaller than most of its publicly and privately-rated CDMO
peers, with lower EBITDA and FCF generation. FIS's EBITDA margin of
16%-17% is somewhat lower than Recipharm's 18% and well below
PharmaZell's 29% and Ceva's 25%. While Fitch expects FIS to
generate negative-to-neutral FCF over the rating horizon, Recipharm
and PharmaZell are projected to generate positive FCF with
mid-to-high single-digit margins. In addition, FIS is smaller in
sales than Recipharm and Ceva, but twice as big as PharmaZell.
However, FIS's lower profitability, weaker cash flow generation and
smaller size is balanced by lower leverage with an estimated total
debt/EBITDA of 4.6x in 2021 versus 6.6x at Recipharm and 5.4x at
PharmaZell, hence warranting the same rating.

Recipharm's and Ceva Sante's business scale and diversification
support higher debt capacity compared with the more specialised
PharmaZell's, with 2022 leverage that is around 0.5x-1.0x lower for
the same rating.

In Fitch's wider rated pharmaceutical portfolio, generic drug
manufacturing companies Stada (Nidda BondCo GmbH, B/Negative) and
Teva Pharmaceutical Industries Limited (BB-/Stable) are much larger
and have stronger profitability.

Asset-light niche pharmaceutical companies that own patents but
outsource manufacturing to CDMOs such as Cheplapharm (CHEPLAPHARM
Arzneimittel GmbH, B+/Stable), Atnahs (Pharmanovia Bidco Limited,
B+/Stable), Advanz (Cidron Aida Bidco Limited, B/Stable) and
Theramex (IWH UK Midco Limited, B/Stable) are similar in size to
FIS but have superior profitability and positive FCF generation,
allowing them to have higher leverage

KEY ASSUMPTIONS

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

-- Organic sales to grow annually an average 4% over 2022-2025
    from 8.5% in 2021;

-- EBITDA margin gradually improving to 17.2% in 2025 from 15.2%
    in 2021;

-- Working-capital outflow of EUR5 million p.a. over 2022-2025,
    down from EUR20 million in 2021;

-- Capex at EUR80 million in 2022 and EUR70 million in 2023 to
    fund facility extensions, up from EUR50 million in 2021. Capex
    at 10% of sales in 2024 and 2025;

-- No cash interest paid on convertible bond over the rating
    horizon to 2025;

-- EUR40 million dividend payment in 2022 to refinance holdco
    debt, followed by EUR2million in 2023 and EUR2 million-EUR10
    million in 2024 and 2025;

-- No acquisitions to 2025.

KEY RECOVERY RATING ASSUMPTIONS

FIS's recovery analysis is based on a going-concern (GC) approach,
reflecting Fitch's view that despite the valuable asset base of the
company, a GC sale of the business in financial distress would
yield a higher realisable value for creditors than a balance-sheet
liquidation. In Fitch's view, financial distress could arise
primarily from material revenue and margin contraction, following
volume losses or price pressure related to contract losses and
exposure to generic competition.

For the GC enterprise value (EV) calculation, Fitch estimates a
post-restructuring EBITDA of about EUR60 million. This reflects
Fitch's expectation of organic portfolio earnings post-distress,
possible corrective measures and a 5x distressed EV/EBITDA. The
latter in Fitch's view would appropriately reflect FIS's minimum
valuation multiple before considering value added through portfolio
and brand management.

After deducting 10% for administrative claims, Fitch's principal
waterfall analysis generated a ranked recovery in the 'RR3' band,
resulting in a senior secured debt rating of 'B+' for its EUR350
million senior secured notes. In Fitch's debt waterfall, Fitch
treats EUR10 million in short-term borrowings and a EUR50 million
secured revolving credit facility (RCF), which Fitch assumes to be
fully drawn prior to distress, both as super-senior. Outstanding
factoring is excluded from the waterfall analysis as Fitch assumes
the facility would remain available at times of distress, given the
high quality of the receivables. All these result in a
waterfall-generated recovery computation output percentage of 60%
based on current metrics and assumptions.

In Fitch's recovery assumptions and leverage calculations, Fitch
treats FIS's EUR53 million convertible instrument as equity, based
on contractual subordination and an option to defer interest
payments. Fitch's treatment of this instrument as equity assumes
that no interest will be paid in Fitch's four-year rating case to
2025 and Fitch would view the introduction of regular interest
payments on this instrument as a trigger for reviewing its equity
treatment.

RATING SENSITIVITIES

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

-- Successful completion of the strategic investment cycle,
    leading to accelerated growth and improving scale and
    diversification;

-- EBITDA margin trending towards 20% on a sustained basis;

-- FCF margins (after capex) improving to low-to mid-single
    digits on a sustained basis;

-- Evidence of a conservative financial policy leading to FFO
    gross leverage below 5.5x and total debt/operating EBITDA
    below 4.5x on as sustained basis.

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

-- Declining revenue due to product, or production issues or as a
    result of customer losses leading to EBITDA margin declining
    below 15% on a sustained basis;

-- Volatile FCF;

-- FFO gross leverage above 7.0x and total debt/operating EBITDA
    above 6.5x on a sustained basis;

-- FFO interest cover below 2.5x.

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: Fitch views FIS's liquidity as adequate,
supported by around EUR30 million of cash remaining on balance
sheet and full availability under its new EUR50 million RCF. Fitch
expects FIS to generate negative FCF over most of the rating
horizon, primarily driven by investments in the business. Absent
expansionary capex, FIS would generate positive FCF margins in the
low to mid-single digits.

The recent debt refinancing has extended the maturity of FIS's
notes by five to seven years, which will mature six months after
the new RCF.

ISSUER PROFILE

FIS is an Italian pharma CDMO specialised in APIs and intermediates
of small molecules. As a CDMO it provides third-party B2B
manufacturing outsourcing services for pharmaceutical companies.

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.

Rating Actions

DEBT                RATING           RECOVERY    PRIOR
----                ------           --------    -----
F.I.S. Fabbrica Italiana Sintetici S.p.A.

                LT IDR B New Rating              B(EXP)
senior secured  LT B+ New Rating        RR3      B+(EXP)



===================
M O N T E N E G R O
===================

ATLAS BANKA: Stock Exchange Moves Securities to MTP Segment
-----------------------------------------------------------
Radomir Ralev at SeeNews reports that Montenegro Stock Exchange has
moved the securities of insolvent lender Atlas Banka to
multilateral trading facility (MTP) segment from the prime segment,
it said.

According to SeeNews, the Montenegro Stock Exchange said in a
statement earlier this week the decision applies to all Atlas Banka
shares with ATBA and ATBN tickers.

Montenegro's central bank launched insolvency proceedings against
Atlas Banka in April 2019 after a public call for the
recapitalisation of the lender drew no bids, SeeNews relates.

The bank's interim administrator, Tanja Teric, said no investors
had subscribed for any of the 88,710 new ordinary shares of Atlas
Banka under the public call for recapitalisation until the expiry
of the deadline, SeeNews notes.





=============
R O M A N I A
=============

COMPLEXUL ENERGETIC: Romania Grants EUR2.6-Bil. Restructuring Aid
-----------------------------------------------------------------
Nicoleta Banila at SeeNews reports that Romania's government issued
an emergency decree granting energy company Complexul Energetic
Oltenia (CE Oltenia) EUR2.66 billion (US$2.93 billion) in
restructuring aid.

"This decree practically saves CE Oltenia from bankruptcy," SeeNews
quotes government spokesman Dan Carbunaru as saying in a
live-streamed press briefing on March 10.

The European Commission approved the state aid scheme for CE
Oltenia in January, SeeNews recounts.

The restructuring plan builds on Romania's decarbonisation plans to
replace lignite-based electricity production with electricity
produced from natural gas and renewables -- solar and hydropower.

On February 5 2021, the Commission opened an in-depth investigation
to assess whether the restructuring plan submitted by Romania in
December 2020 and the related restructuring aid measures to support
it were in line with EU state aid rules, more specifically the
Commission's guidelines on rescue and restructuring aid, SeeNews
relates.

During the in-depth investigation, Romania submitted a revised
restructuring plan for the company, for the period 2021-2026, with
significant modifications and improvements, SeeNews discloses.

The plan will be supported by restructuring aid in the form of
grants, a state guarantee for a loan, a capital injection, and a
loan-to-grant conversion, SeeNews states.

CE Oltenia is a Romanian public undertaking active in mining, power
generation and local heat supply.  The company is the third largest
producer of electricity in Romania.




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

[*] RUSSIA: U.K. Imposes New Sanctions Following Ukraine Invasion
-----------------------------------------------------------------
Joe Mayes at Bloomberg News reports that the U.K. banned all new
outward investment in Russia and froze the assets of the country's
biggest bank as Prime Minister Boris Johnson sought to tighten the
squeeze on Vladimir Putin's regime in the wake of the invasion of
Ukraine.

According to Bloomberg, the Foreign, Commonwealth & Development
Office said in a statement on April 6 Britain slapped a full asset
freeze on Sberbank of Russia PJSC in a move co-ordinated with the
U.S., and also froze the assets of Credit Bank of Moscow.  It said
the U.K. will also end all imports of Russian coal and oil by the
end of 2022 and sanction another eight wealthy Russians, Bloomberg
relates.

The U.K. and western allies are stepping up measures against Russia
following allegations this week of atrocities in Ukraine by Russian
forces, Bloomberg discloses.  It's Britain's fifth package of
sanctions since the Russian invasion of Ukraine in February,
Bloomberg states.

The latest sanctions package also includes a ban on imports of
Russian iron and steel products and restrictions on Russia's
ability to buy quantum and advanced material technologies from the
U.K., Bloomberg notes.




===========
S E R B I A
===========

FABRIKA VAGONA: Consortium Acquires Assets for RSD498.6 Million
---------------------------------------------------------------
Branislav Urosevic at SeeNews reports that Serbia's Bankruptcy
Supervision Agency on April 1 said a consortium comprising Serbian
logistics company Nelt Group and chemicals company Prvi Maj has
bought assets of bankrupt rolling stock manufacturer Fabrika Vagona
Kraljevo for RSD498.6 million (EUR4.2 million/US$4.7 million).

According to the call for bids, the assets included machines and 40
buildings spanning 87,000 sq. meters, including a train painting
depot, railway repair facility and office buildings, SeeNews
notes.

Fabrika Vagona Kraljevo, along with its seven subsidiaries, went
bankrupt in 2015, SeeNews relays, citing trade registry data.




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

TIMBER SERVICIOS: S&P Assigns 'B' Long-Term Ratings, Outlook Stable
-------------------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term ratings to Altadia's
intermediate parent company Timber Servicios Empresariales S.A. and
to the EUR1.2 billion term loan B (TLB), with a recovery rating of
'3'.

The stable outlook indicates S&P's view that Altadia will continue
to demonstrate solid performance, while smoothly integrating
Ferro's tile coating business ("Rocher") , with forecast debt to
EBTIDA (leverage) of 5.4x-5.9x in 2022-2023.

Private equity firm Carlyle has acquired Altadia, a leading
manufacturer of intermediate products for ceramic tiles that
generated sales of about EUR960 million in the 12 months to Oct.
31, 2021, from Lone Star Funds.

The transaction has releveraged the company. On Dec. 17, 2021,
Carlyle agreed to purchase Altadia from Lone Star Funds. As part of
the transaction, the company issued:

-- A new EUR175 million senior secured revolving credit facility
(RCF) due 2028, undrawn at closing; and

-- A new EUR1.2 billion first-lien TLB due 2029.

S&P said, "The proceeds are to be used to fund the buyout and
refinance all outstanding debt. At closing of the transaction, we
expect adjusted debt to EBITDA of about 6.2x, falling to about
5.4x-5.9x in 2022-2023 on the back of higher EBITDA. We expect
adjusted leverage will remain below our downgrade trigger of 6.5x.
We will consequently withdraw our ratings on LSFX Flavum Bidco
S.L., the previous issuing entity of Altadia.

"Altadia's solid market position and growth profile support the
rating. Following the acquisition of Rocher in 2021, Altadia became
the largest global producer of tile intermediate products, ahead of
companies such as Gruppo Colorobbia and Torrecid (both not rated).
It has estimated market shares of about 32% in Europe, the Middle
East, and Africa in frits and glazes, and 39% in inks globally.
Altadia's strong research and development capabilities and
well-invested asset base also increase barriers to entry. We
understand that ceramic tile production should continue expanding
in the long term, underpinned by an increasing penetration rate
over other materials, a push toward more sophisticated tiles and
technologies, and ongoing increasing housing demand.

"We anticipate Altadia will pass through most raw material price
and energy cost increases. The main raw materials used by Altadia
are cobalt, aluminum oxide, zinc oxide, and nickel. Raw material
prices and energy costs have materially increased since the
beginning of 2021. Altadia announced several price increases to
pass-through the impact. The intermediate products account for only
a small percentage of the tile cost (about 4%-8%). In addition,
energy costs represent 8%-9% of the product's sale price. We expect
that price increase will drive revenue growth by 4%-5% in 2022.

"Altadia expects significant manufacturing and selling, general,
and administrative synergies following the integration of Rocher.
Most of the synergies should come from cost improvement, relocating
production to more competitive local plants, and procurement gains.
Management also expect gains on the reorganization of Rocher's
sales and technical teams, since some senior executive roles and
support function staff were made redundant. We note that expected
synergies are higher than previously those estimated when the
transaction was announced. Although we do not anticipate major
execution risks, we acknowledge that synergies remain uncertain in
size and timing.

"We forecast limited free operating cash flow (FOCF) of EUR5
million-EUR15 million in 2022, and then over EUR90 million in 2023.
A working capital increase, to account for the increase in the
activity and raw materials price inflation, will constrain the FOCF
in 2022. In addition, we also factor in the cost to implement the
synergies, which consists mainly of costs incurred during
relocation of production, particularly from the Spanish
manufacturing site. We understand that most of these costs will be
incurred in 2022, and we expect FOCF to materially improve from
2023. We also expect EBITDA interest coverage of over 4.0x in
2022-2023.

"The final ratings are in line with the preliminary ratings we
assigned on Feb. 9, 2022.

"The stable outlook indicates our view that Altadia will continue
to demonstrate solid performance, while smoothly integrating the
Rocher business, with forecast adjusted debt to EBITDA of 5.4x-5.9x
in 2022-2023."

S&P could lower the ratings if:

-- The group experienced severe margin pressure or operational
issues, leading to much lower FOCF;

-- Adjusted debt to EBITDA remained above 6.5x over a prolonged
period;

-- Liquidity pressure arose; and

-- Altadia and its sponsor were to follow a more aggressive
strategy with regards to higher leverage or shareholder returns.

In S&P's view, the probability of an upgrade over our 12-month
rating horizon is limited, given the group's high leverage. Private
equity ownership could increase the possibility of higher leverage
or shareholder returns. For this reason, S&P could consider raising
the rating if:

-- Adjusted debt to EBITDA reduced consistently to below 5x;

-- Funds from operations (FFO) to debt increased consistently to
above 12%; and

-- Altadia and its owners showed commitment to lowering and
maintaining leverage metrics at these levels.

Environmental, Social, And Governance

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

S&P said, "Governance is a moderately negative consideration in our
credit rating analysis of Altadia, as for most rated entities owned
by private-equity sponsors. We believe the company's highly
leveraged financial risk profile points to corporate
decision-making that prioritizes the interests of the controlling
owners. This also reflects generally finite holding periods and a
focus on maximizing shareholder returns. Environmental and social
factors have an overall neutral influence on our credit rating
analysis. As a manufacturer of intermediates for ceramic tiles, we
see less environmental risk than for heavy building materials and
cement companies. Altadia has developed leading market shares in
digital inkjet technology, a substitution for traditional glaze
stains. This has materially reduced the waste of inks in the
manufacturing processes of its clients and has led to robust and
increasing margins for Altadia."




=====================
S W I T Z E R L A N D
=====================

CEP V INVESTMENT: S&P Assigns 'B' LT ICR on Carlyle Buyout
----------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issuer credit rating
to CEP V Investment 23 S.a r.l, the immediate holding company of
Switzerland-based sheet metal forming and assembly simulation
software provider AutoForm, and its 'B' issue rating to the senior
secured term loan.

The stable outlook reflects S&P's view that AutoForm's revenue
growth will accelerate to 12%-14% in 2022-2023, from about 10% in
2021, thanks to upselling, increasing customer penetration, and new
assembly solutions, while the adjusted EBITDA margin will stay
above 50%.

In February 2022, private equity firm Carlyle acquired
Switzerland-based sheet metal forming and assembly simulation
software provider AutoForm. The transaction was partly funded by a
EUR472 million senior secured term loan, an undrawn EUR55 million
revolving credit facility (RCF), and a EUR184 million
payment-in-kind (PIK) facility.

S&P said, "The ratings are in line with the preliminary ratings we
assigned Jan. 17, 2022. There were no material changes to our base
case or the financial documentation compared with the previous
review.

"The stable outlook reflects our view that AutoForm's revenue will
increase by 12%-14% in 2022-2023, compared with about 10% growth in
2021. The acceleration will stem from upselling, increasing
customer penetration, and new assembly solutions. We also
anticipate that AutoForm will maintain S&P Global Ratings-adjusted
EBITDA margin above 50%. This will enable sound deleveraging toward
9x (6x excluding PIK) in 2023, marking an improvement from our
estimate of 10x (7x excluding PIK) in 2022. We also project FOCF to
debt to strengthen to 6%-7% in 2023 from 5%-6% in 2022."

S&P could lower the rating if AutoForm experiences much
slower-than-expected revenue growth, pursues an aggressive
shareholder return or acquisition strategy, or decides to pay cash
interest on the PIK facility, leading to:

-- Adjusted leverage staying above 10x (7x excluding PIK);

-- FOCF to debt of less than 5%; or

-- An EBITDA cash interest coverage ratio below 3x.

A positive rating action is unlikely because of the company's
highly leveraged capital structure and financial sponsor ownership.
However, we could raise the rating if:

-- Adjusted leverage falls below 6x, alongside the sponsor's
strong commitment to maintaining the ratio at this level; and

-- FOCF to debt stays well above 10%.




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

BRACKNELL PROPERTY: Park Inn Hotel Lease Put Up for Sale
--------------------------------------------------------
Business Sale reports that the lease on a prominent Glasgow
building that formerly operated as a hotel has gone up for sale
after the companies operating the site fell into administration.

According to Business Sale, the lease for the former Park Inn by
Radisson Glasgow City Centre will be marketed for sale by Savills
following the collapse of Bracknell Property and Bracknell Property
Subco.

Bracknell Property had an interest in the lease for the site, which
is located at 139-141 West George Street, while the hotel was
traded by Bracknell Property Subco.  Azets partners Derek Forsyth
and Nicola Banham were appointed joint administrators to both
businesses, which were suffering from cash flow issues, Business
Sale relates.

Cash flow issues arose due to pandemic-related trading problems and
low occupancy levels, Business Sale discloses.  These issues
ultimately proved to be unsustainable, leading to the closure of
the hotel, which ceased trading with all staff made redundant,
Business Sale notes.

The hotel has 91 bedrooms, a restaurant and lobby bar, as well as
two conference suites.  

The joint administrators say that they expect strong interest in
the lease, which is being sold with more than 100 years remaining,
both from parties looking to acquire well-located Glasgow
properties, as well as existing hotel operators, Business Sale
relays.


EM MIDCO 2: Moody's Assigns B2 CFR, Outlook Stable
--------------------------------------------------
Moody's Investors Service has assigned a B2 corporate family rating
and B2-PD probability of default rating to EM Midco 2 Limited
("Element", or "the group"). Concurrently, Moody's has assigned B1
instrument ratings to the new $1,825 million equivalent backed
senior secured first-lien term loan B due 2029, the new $200
million backed senior secured first-lien revolving credit facility
(RCF) and the new $200 million backed senior secured first-lien
acquisition capex facility due in 2028, all to be issued by EM
Bidco Limited. The outlook on all ratings is stable.

As part of the same rating action, Moody's withdraws the B3 CFR and
B3-PD PDR and the stable outlook assigned to Element Materials
Technology Limited. The B2 instrument ratings and stable outlook
assigned to Greenrock Finance, Inc. and Greenrock Midco Limited
remain unaffected and will be withdrawn upon repayment.

The refinancing transaction was driven by the announced acquisition
of Element by its previous minority shareholder Temasek who is
acquiring a majority stake from previous owner Bridgepoint. The
proceeds of the new $1.8 billion first-lien debt issuance, together
with $350 million of second-lien debt and the $4.8 billion equity
contribution (incl. the new PIK note), will be used to fund the
equity purchase, refinance existing debt and fund a larger
acquisition of a North American business for a consideration of
about $0.75 billion.

RATINGS RATIONALE

The effective upgrade of the CFR to B2 from B3 reflects Element's
strong business profile which has become significantly more
diversified in recent years and is further strengthened by the
acquisition of a leading provider of laboratory-based testing,
inspection and certification (TIC) services in North America. At
the same time, the ratings factor in Element's high financial
leverage of 8.2x Moody's-adjusted EBITDA pro forma at closing of
the transaction based on year-end 2021, but also reflects Moody's
expectation that the group will be able to reduce its leverage to
around 6.5x within the next 12-18 months, dependent on the
successful integration of the acquired businesses and the
realisation of targeted synergies.

Element's B2 CFR further reflects (1) the group's well established
position in the TIC market, supported by high barriers to entry
into the technically demanding testing market and significant
switching costs for customers; (2) the critical and
non-discretionary nature of the group's testing services, which are
dedicated to largely resilient industries with zero or low
tolerance for failure; (3) Element's strengthened business profile
with significantly improved revenue diversification towards less
cyclical, new technology markets with good growth prospects.

Conversely, the CFR is constrained by (1) Element's high financial
leverage and debt-funded growth strategy; (2) the historically
limited free cash flow generation albeit improving on the back of
the cost actions taken by management and as one-off costs fade
away; (3) Element's exposure to cyclical end markets, such as
commercial aerospace and energy which still accounted for around
one quarter of 2021 revenues (pro forma for acquisitions).

ESG CONSIDERATIONS

Element's ratings factor in certain governance considerations such
as the ownership structure with Temasek as the new majority
shareholder. Compared to the previous owner, the private equity
firm Bridgepoint, Moody's expects Element to follow a somewhat more
conservative financial policy under new owner Temasek with
financial leverage levels that are lower compared to recent years.
Furthermore, the presence of a PIK note as part of the new capital
structure increases structural complexity and highlights the
group's tolerance for high leverage.

RATING OUTLOOK

The stable outlook reflects Moody's expectation that Element will
be able to continue to achieve good organic revenue and EBITDA
growth and that its aerospace and energy segments show good
recovery in 2022 and 2023. The outlook further assumes that
liquidity will remain adequate and that any larger acquisitions
will not lead to material re-leveraging.

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

While an upgrade in the near term is unlikely, given the initially
weak rating positioning, upward rating pressure could occur if
Moody's-adjusted Debt/EBITDA sustainably decreases towards 5.0x,
Moody's-adjusted free cash flow/debt increases to the high-single
digits in percentage terms and liquidity remains adequate.

Downward pressure on the rating could develop if Element fails to
reduce its Moody's-adjusted Debt/EBITDA to around 6.5x within the
next 18 months, Moody's-adjusted free cash flow remains negative
for a sustained period of time or liquidity weakens. Any
significant delays in integrating recent acquisitions, and as such
the targeted synergies will not be realised as planned would also
create negative rating pressure.

LIQUIDITY PROFILE

Moody's considers Element's liquidity to be adequate. On December
31, 2021, the group had $115 million of cash on balance sheet and a
combined $85 million of availability under its committed
facilities. Following the full refinancing as part of the Temasek
acquisition, the group's committed facilities will be refinanced
and the group will have access to a fully undrawn $200 million RCF
and a $200 million backed senior secured first-lien acquisition
capex facility both with maturity in 2028.

The RCF is subject to a springing first-lien net leverage covenant
set with 40% initial headroom and is tested when the facility is
drawn for more than 40%.

STRUCTURAL CONSIDERATIONS

The new backed senior secured first-lien term loan B, the pari
passu ranking RCF and backed senior secured first-lien acquisition
capex facility, benefit from first-lien guarantees from all
material subsidiaries covering at least 80% of the consolidated
EBITDA and are secured by a first-lien pledge over substantially
all tangible and intangible assets of the borrowers and guarantors
in the US and by shares, bank accounts, intra-group receivables and
a floating charge in England & Wales. The B1 instrument rating of
the first-lien facilities is one notch above the B2 CFR and
reflects the presence of the second-lien term loan facility in the
capital structure.

PRINCIPAL METHODOLOGY

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

LIST OF AFFECTED RATINGS

Assignments:

Issuer: EM Bidco Limited

BACKED Senior Secured Bank Credit Facility, Assigned B1

Issuer: EM Midco 2 Limited

Probability of Default Rating, Assigned B2-PD

LT Corporate Family Rating, Assigned B2

Withdrawals:

Issuer: Element Materials Technology Limited

Probability of Default Rating, Withdrawn , previously rated B3-PD

LT Corporate Family Rating, Withdrawn , previously rated B3

Outlook Actions:

Issuer: EM Midco 2 Limited

Outlook, Assigned Stable

Issuer: EM Bidco Limited

Outlook, Assigned Stable

Issuer: Element Materials Technology Limited

Outlook, Changed To Rating Withdrawn From Stable

CORPORATE PROFILE

Headquartered in the United Kingdom, Element is an independent
provider of materials and product qualification testing, offering a
full suite of laboratory-based services. The group is specialised
in the aerospace, space & defence, connected technology, life
sciences, mobility, energy & transition and built environment
sectors, mainly in the US and Europe with a growing presence in
Asia. Services provided cover technically demanding testing for a
broad range of advanced materials, components, products and systems
to ensure compliance with safety, performance and quality standards
imposed by customers, accreditation bodies and regulatory
authorities. In January 2022 Element announced its acquisition
(subject to customary regulatory approvals) by previous minority
shareholder Temasek, a Singapore-based investment company that will
hold more than 80% of the group's share capital.

STERLING SUFFOLK: Bought Out of Administration by Amberside ALP
---------------------------------------------------------------
Alec Mattinson at The Grocer reports that specialist UK tomato
grower Sterling Suffolk has been rescued after soaring energy
prices forced it into administration.

The company, which traded a glasshouse operation from its site at
Blakenham Nursery, Bramford, Suffolk, brought in administrators on
March 29 following a downturn in trading, The Grocer relates.

"Unfortunately, the company has had to contend with a number of
issues which have affected both trading and cashflow," The Grocer
quotes joint administrator Andrew Kelsall as saying.  "The latest
and final aspect was the significant increase and uncertainty in
energy prices.

"Whilst a third party sale, as a going concern, was desirable, this
has not been possible."

However, upon being placed into administration, the company has
been sold to Amberside ALP -- the company's prime investor, The
Grocer discloses.

The administrator, as cited by The Grocer, said it had liaised with
independent body the Pre Pack Pool and obtained the required
clearance to proceed with the purchase.

In the interim, it said it would fund future trading and recommence
operations as soon as possible, The Grocer notes.


VTB CAPITAL: Applies for Administration Following Sanctions
-----------------------------------------------------------
Jane Croft and Owen Walker at The Financial Times report that the
UK arm of Russia's second-biggest lender has applied to go into
administration, citing the impact of "paralysing" sanctions imposed
since Russia's invasion of Ukraine.

According to the FT, VTB Capital says it has been unable to find a
bank that would allow it to open or operate an account and so
cannot pay its debts as they fall due.

A majority of its directors applied to London's High Court on April
6 for an order to appoint administrators, the FT relates.

Daniel Bayfield QC, representing the directors, told a court
hearing that the move would allow an orderly wind-down of the
company, which is balance-sheet solvent with net assets of US$338
million, the FT discloses.

Mr. Bayfield told the court that the lack of banking facilities
meant company operations "have been paralysed even beyond the
paralysis caused by sanctions.  The company can't make any
payments", the FT notes.

Mr. Justice Timothy Fancourt said he was willing in principle to
make the order appointing administrators -- but he said a formal
order would not be made by the court until a licence had been
obtained from the US Office of Foreign Assets Control (Ofac), which
administers the US sanctions regime, the FT relates.

The High Court heard VTB Capital had discussed its application with
financial regulators including the Prudential Regulation Authority,
the Financial Conduct Authority and the Bank of England, which had
not opposed its plans, according to the FT.

It has also received an adjustment from the UK Office of Financial
Sanctions Implementation that permits payments relating to
insolvency proceedings -- although Ofac is yet to grant a similar
licence, the FT states.  The court heard Teneo is the proposed
administrator, the FT notes.



                           *********


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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Information contained herein is obtained from sources believed to
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