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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

          Tuesday, April 26, 2022, Vol. 23, No. 77

                           Headlines



B E L G I U M

ANHEUSER-BUSCH INBEV: Egan-Jones Hikes Sr. Unsec. Ratings to BB+


E S T O N I A

BALTIC HORIZON: S&P Affirms 'MM3' Mid-Market Evaluation Rating


F R A N C E

AIR FRANCE-KLM: Egan-Jones Keeps CCC Senior Unsecured Ratings
CASINO GUICHARD-PERRACHON: Egan-Jones Retains CCC+ Unsec. Ratings


G E R M A N Y

GRUNENTHAL PHARMA: S&P Upgrades ICR to 'BB-', Outlook Stable


G R E E C E

GREECE: S&P Upgrades Long-Term SCR to 'BB+', Outlook Stable


I R E L A N D

ARMADA EURO II: Moody's Hikes Rating on EUR12MM Cl. F Notes to B1
HENLEY CLO VII: S&P Assigns B- (sf) Rating to Class F Notes
[*] IRELAND: Central Bank Expects Wave of "Covid Bankruptcies"


I T A L Y

ASSICURAZIONI GENERALI: Egan-Jones Keeps BB Sr. Unsecured Ratings
CAPRI: Panorama Hotel Complex Auction Scheduled for May 24
ENEL SPA: Egan-Jones Keeps BB Senior Unsecured Ratings
TELECOM ITALIA: Egan-Jones Keeps B+ Senior Unsecured Ratings


K A Z A K H S T A N

FIRST HEARTLAND: Moody's Withdraws 'B2' Long Term Issuer Rating


N E T H E R L A N D S

REFRESCO: Moody's Assigns 'B2' CFR, Outlook Positive
REFRESCO: S&P Assigns 'B+' LT ICR on Major Stake Acquisition by KKR


P O R T U G A L

TRANSPORTES AEREOS: Moody's Ups CFR & Sr. Unsec. Notes Rating to B3


R U S S I A

[*] RUSSIA: Foreign Creditors Have Few Options to Recover Money


S P A I N

GIRALDA HOLDING: S&P Places 'B+' Ratings on CreditWatch Developing


S W E D E N

ARISE AB: Egan-Jones Cuts Senior Unsecured Ratings to BB-


S W I T Z E R L A N D

TRANSOCEAN LIMITED: Egan-Jones Keeps CCC- Senior Unsecured Ratings


T U R K E Y

PETKIM PETROKIMYA: S&P Assigns Prelim 'B+' ICR, Outlook Stable


U N I T E D   K I N G D O M

BULB ENERGY: Multiple Energy Firms Express Interest in Customers
LIBERTY GLOBAL: Egan-Jones Cuts Senior Unsecured Ratings to BB
SECOND HOME: Silva Seeks Millions of Pounds to Avert Collapse
VECTOR WEALTH: Enters Administration, Faces FSCS Probe
VENATOR MATERIALS: Moody's Affirms 'B2' CFR, Outlook Now Stable

WATT BROTHERS: Easdale Bros Unveil Dev't. Plans for Glasgow Store
WELLESLEY: Satisfies all CVA Payments in Full to Investors

                           - - - - -


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B E L G I U M
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ANHEUSER-BUSCH INBEV: Egan-Jones Hikes Sr. Unsec. Ratings to BB+
----------------------------------------------------------------
Egan-Jones Ratings Company, on March 28, 2022, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Anheuser-Busch InBev NV to BB+ from BBB-.

Headquartered in Leuven, Belgium, Anheuser-Busch InBev NV brews
beer.




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E S T O N I A
=============

BALTIC HORIZON: S&P Affirms 'MM3' Mid-Market Evaluation Rating
--------------------------------------------------------------
S&P Global Ratings affirmed its 'MM3' mid-market evaluation rating
on Estonia-based real estate investment company, Baltic Horizon
Fund (BHF) and its EUR50 million 4.25% senior unsecured notes due
2023.

S&P said, "We could consider lowering our rating on BHF if a
deterioration of rental income results in EBITDA interest coverage
falling below 2.4x and weakening of cash flow generation, with
funds from operations (FFO) to debt falling below 5%. We would also
view as negative an increase in speculative development activity or
a debt-to-debt-plus-equity ratio exceeding 60%. This could occur if
property valuations decline further, or if BHF suffers reduced
access to equity funding for acquisitions or development or
implements a change in financial policy favoring higher leverage. A
tightening of the liquidity cushion resulting in the ratio of
projected liquidity sources to uses falling below 1.2x would also
lead us to lower the rating.

"We see an upgrade as unlikely in the medium term. However, we
could raise the rating if BHF were to increase its portfolio's
scale and scope significantly, thereby diminishing the impact of
operating risks related to individual properties and tenants, while
enhancing its tenant and asset quality to a level comparable with
other that of higher-rated peers. An upgrade would also be
contingent on a reduction of leverage, with the
debt-to-debt-plus-equity ratio falling below 50% on a sustainable
basis and EBITDA interest coverage staying close to 4x or higher."




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F R A N C E
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AIR FRANCE-KLM: Egan-Jones Keeps CCC Senior Unsecured Ratings
-------------------------------------------------------------
Egan-Jones Ratings Company, on March 22, 2022, maintained its 'CCC'
foreign currency and local currency senior unsecured ratings on
debt issued by Air France-KLM. EJR also maintained its 'C' rating
on commercial paper issued by the Company.

Headquartered in Tremblay-en-France, France, Air France-KLM offers
air transportation services.


CASINO GUICHARD-PERRACHON: Egan-Jones Retains CCC+ Unsec. Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company, on March 28, 2022, maintained its
'CCC+' foreign currency and local currency senior unsecured ratings
on debt issued by Casino Guichard-Perrachon SA. EJR also maintained
its 'B' rating on commercial paper issued by the Company.

Headquartered in Saint-Etienne, France, Casino Guichard-Perrachon
SA operates a wide range of hypermarkets, supermarkets, and
convenience stores.




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G E R M A N Y
=============

GRUNENTHAL PHARMA: S&P Upgrades ICR to 'BB-', Outlook Stable
------------------------------------------------------------
S&P Global Ratings raised its long-term issuer credit rating on
German pharmaceutical manufacturer Grunenthal Pharma GmbH & Co. KG
(Grunenthal) to 'BB-' from 'B+' and revised its outlook to stable.
Consequently, S&P also raised its issue ratings on Grunenthal's
senior secured notes to 'BB-' from 'B+'.

The stable outlook primarily indicates that tangible cost savings
from recent investments and the matured product portfolio's strong
brand equity should allow Grunenthal to maintain adjusted EBITDA
margins of 23%-25% and debt leverage sustainably below 4.0x.

S&P's rating action on Grunenthal reflects its expectation that
2021's strong credit metrics will continue over 2022 and 2023.

S&P said, "With reported sales of about EUR1.47 billion and S&P
Global Ratings-adjusted EBITDA of EUR333 million in 2021,
Grunenthal's results were better than we expected. We attribute the
stronger sales growth partially to the rebound following the
COVID-19-induced slowdown in 2020, when doctor-patient interaction
was irregular and stockpiling occurred in the pandemic's early
stages." Moreover, despite the loss of exclusivity in Europe in
August 2021, top-selling drug Palexia (about 21.5% of total 2021
sales) exhibited strong growth of 11.4% thanks to a lack of generic
competition in end markets. New launches appear manageable, with
only one alternative generic version registered in the U.K.,
although this is a small market for Palexia. However, the company
confirmed protection against substitutable generics for Palexia
because it has patent protection for the key salt ingredient across
end markets until 2025, which limits volume decline. Elsewhere in
the product portfolio, the acquisition of cholesterol-reducing
drug, Crestor, was also highly value-accretive for the company's
EBITDA generation, and will continue to be so until 2024 under a
phased takeover distribution agreement with AstraZeneca. The
company appears to have utilized the increased sales visibility
around Palexia into 2022 to invest in cost-saving initiatives;
namely, restructuring its salesforce in Europe to help transition
its commercial platform toward pain specialists, where promotional
activity is less intense. This will allow Grunenthal to benefit
from the strong brand equity of its product portfolio.
Collectively, these factors should continue to support solid
overall EBITDA generation of over EUR300 million per year until
2024, and adjusted (gross) debt to EBITDA comfortably in the range
of 3.0x-4.0x in the next 12-18 months. This is despite S&P's
expectations of a return to overall sales decline in 2022 and 2023
of up to 4% and 6%, respectively, from ongoing pricing pressure on
the company's matured (off-patent) product portfolio (72% of total
sales in 2021).

Ongoing growth momentum from Qutenza and resilience on matured but
resilient brands should support continued strong FOCF generation in
the coming years. The company considerably strengthened its
commercial platform in the U.S. in 2021 by almost doubling the
salesforce. Qutenza (about 3% of total 2021 sales), the only strong
revenue growth driver in the product portfolio, now has full
coverage by Medicare in the U.S. S&P said, "Following the label
extension in July 2020 for diabetic peripheral neuropathy of the
feet in adults, and the enhanced salesforce in 2021, we believe
that a growth rate for Qutenza of around 50% per year over
2022-2024 is achievable, which should help mitigate sales erosion
elsewhere in the product portfolio. In addition, in its matured
product portfolio, the company has certain brands that have been in
the market for a long time and are no longer protected by patents,
but which continue to generate strong revenue and cash flow. These
include Versatis, Tramal, Zaldiar, and Transtec. We attribute this
longevity to the general stickiness and efficacy of existing drugs
in pain relief and a general lack of groundbreaking new drugs--an
observation we have also made in the wider central nervous system
(CNS) therapeutic area." The earnings and cash flow generation from
these brands should be further supported by the re-orientation of
sales toward the omnichannel and pain specialists, as opposed to
general practitioners.

S&P said, "While we see acquisitions as a possibility in the near
future, we believe the company will target an optimal funding mix
to ensure prompt debt reduction, and we see the ownership structure
as a credit positive. Following the strong set of results in 2021,
Grunenthal ended the fiscal year with overall cash balances of
about EUR328 million. We understand that in the event of larger
acquisitions, the company will consider an optimal funding mix that
would enable it to reduce the deviation from current credit metrics
and support deleveraging in a relatively short timeframe. At this
stage, we have not incorporated any acquisitions in our base case,
primarily because of uncertainty regarding timing and size. That
said, we believe acquisitions are possible, because the company
continuously seeks to diversify its product portfolio and offset
natural revenue erosion from its matured product portfolio.
Grunenthal's key criteria for acquisitions--established brands with
immediate EBITDA and cash flow contribution, under phased takeover
distribution agreements--narrow the timeframe for credit metrics to
stabilize, which we view positively from a credit perspective. We
also view the ownership structure as positive from a credit
perspective, because the Wirtz family has owned Grunenthal since
inception, and is under no pressure to generate returns for
external parties and exit the business. We anticipate dividend
distributions of about EUR20 million-EUR30 million per year over
2022 and 2023, which will be comfortably covered by our
expectations for FOCF generation of over EUR120 million.

Mestex's acquisition supplemented the company's late-stage pipeline
with a promising revenue-generating candidate in the medium to long
term. Mestex's acquisition in 2021 supplemented the Grunenthal's
thin late-stage pipeline--which includes Qutenza for post-surgical
neuropathic pain--with a new promising candidate, resiniferatoxin
(RTX), an investigational medicine for the treatment of knee
osteoarthritis. Grunenthal is sharing the risks by partnering with
U.S.-based private equity firm NovaQuest, which will co-fund the
research and development (R&D) costs that are estimated at about
EUR110 million until 2025. In exchange, NovaQuest will receive
one-time payments, milestones, and revenue-based payments over the
course of the commercialization, which--if successful--will begin
in 2025. S&P said, "We view RTX as a timely replacement for the
MPC-06-ID project, developed by Grunenthal's Australian partner
Mesoblast Ltd. MPC-06-ID is a cell therapy for patients who suffer
from chronic lower back pain. It suffered a setback in 2021 in the
first phase 3 study, and is currently under an additional study,
but we remain cautious on its prospects. RTX appears to be a
promising candidate in a high-unmet-need therapeutic area, where
alternative treatments are scarce and tend only to incorporate knee
surgery, which does not always provide optimal results for
patients. Grunenthal sees highly profitable prospects in Asia, in
particular Japan, which is reportedly a EUR1 billion market alone,
compared with the U.S. and Europe markets which are over EUR1
billion collectively. We will continue to monitor developments in
Grunenthal's own R&D pipeline, as we would view positively--from an
earnings-generation capacity perspective—a track record of
value-accretive, new product launches. Such launches normally lead
to a natural de-risking of the credit profile. This is as opposed
to a strategy revolving around new acquisitions to contain a
naturally eroding revenue base from pricing pressure on matured
products."

S&P said, "The stable outlook reflects our view that cost savings
from recent investments, ongoing strong sales momentum from
Qutenza, and strong brand equity of the matured product portfolio,
should enable Grunenthal to maintain adjusted EBITDA margins in the
range of 23%-25%. This is despite our forecast of a return to
overall sales erosion from generic and reimbursement pricing
pressure. Assuming prudent capital expenditure (capex) and working
capital management, we project that the company can continue to
generate strong positive annual FOCF of over EUR120 million, which
should allow it to maintain adjusted debt to EBITDA below 4.0x over
the next 12-18 months.

"We could lower the ratings on Grunenthal if we observed
stronger-than-expected pricing pressure on its matured product
portfolio, such that anticipated cost savings from recent
investments prove ineffective in protecting the company's
profitability and cash flow generation. Under such a scenario, we
would likely observe a decline in our adjusted EBITDA margins
toward 20%, which could push our adjusted debt to EBITDA to 4x,
with no prospect for rapid improvement.

"We could also lower the ratings on Grunenthal if the company
engaged in more aggressive financial policies, particularly linked
to large debt-funded acquisitions. This could occur if multiples
materially exceed the historical range of 4.5x-5.5x, which would
likely push our adjusted leverage to or above 4x.

"We could take a positive rating action if the company sustainably
outperformed our base case, stemming from existing brands' revenue
generation continuing the positive momentum from 2021, or further
diversity of profit pools. Under such a scenario, we would observe
adjusted EBITDA margins sustainably improving above 27%,
translating into adjusted debt to EBITDA below 3.0x. Positive
revenue momentum from existing brands will likely stem from
continued strong penetration of Qutenza in the U.S., no generic
entry for Palexia across main markets, and continued resilience
across the remainder of the matured product portfolio. An upgrade
would hinge on continued prudent acquisition strategy, optimal
funding mix, and commitment by the management and owners to
maintain credit metrics at such levels on an ongoing basis."

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

S&P said, "Environmental, social, and governance (ESG) factors have
an overall neutral influence on our credit rating analysis of
Grunenthal. The company is balancing social risks linked to
exposure to opioid drugs that could lead to addiction by increasing
investments in nonopioids. Prescriptions in Grunenthal's core
European markets are heavily regulated. The high proportion of
generic products in the portfolio supports affordability and access
to medications, which is important for patients. Governance risks
from private ownership are balanced by the owners' prudent
financial policy and experienced all-independent supervisory board
that oversees the corporate executive board. Supervisory board
members are elected by the private family shareholders, but have no
relationship to them."





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G R E E C E
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GREECE: S&P Upgrades Long-Term SCR to 'BB+', Outlook Stable
-----------------------------------------------------------
On April 22, 2022, S&P Global Ratings raised its long-term
sovereign credit rating on Greece to 'BB+' from 'BB' and affirmed
its short-term rating at 'B'. The outlook is stable.

Outlook

The stable outlook reflects S&P's expectation that Greece's fiscal
buffers and proven policy effectiveness will allow the country to
absorb the indirect impact of the war in Ukraine on its economy and
public finances.

Downside scenario

S&P could lower the ratings if the economy weakens significantly
more than it expects, or budgetary performance deviates
significantly from its current projections.

Upside scenario

S&P could raise its ratings on Greece if structural reforms
continue alongside stronger-than-expected economic and budgetary
performance.

Rationale

The upgrade reflects our expectation of a continuous improvement in
Greece's policy effectiveness, while the fallout from the war in
Ukraine appears manageable in light of considerable buffers in both
the private and public sectors.

Higher energy prices and an acceleration of inflation will
contribute to a deceleration of GDP growth this year to 3.4% versus
8.3% in 2021, with GDP projected to average more than 3% during
2023-2025, thanks to large expected Next Generation EU (NGEU) and
other transfers, and a strong anticipated further recovery in
tourism earnings.

Since 2020, Greece's governance effectiveness and economic
resilience efforts have received a boost via the monetary and
fiscal policy responses at the eurozone and EU levels,
respectively. The European Central Bank's (ECB's) supportive
monetary policy facilitated market access for government borrowing
at relatively low costs due to the inclusion of Greek government
bonds in the ECB's Pandemic Emergency Purchase Program (PEPP) and
as collateral in the ECB's repurchase operations. More recently,
ahead of the termination of PEPP in March 2022, the ECB clarified
that it could continue purchasing Greek government bonds over and
above rollovers of redemptions if it observed a deterioration in
the monetary policy transmission in Greece while the economy is
still recovering from pandemic fallout. S&P said, "At the same
time, we note a significant improvement in systemic banks' asset
quality as the share of nonperforming exposures (NPEs) in total
banking sector loans dropped sharply to 12.8% in 2021, from 31% in
2020, and we now expect it to be below 8% by the end of 2022. We
believe that all these developments have strengthened the
effectiveness of monetary policy transmission in Greece."

Greece's creditworthiness continues to benefit from the
government's significant fiscal buffers, thanks to the preservation
of substantial liquidity reserves on the government's balance
sheet; and a favorable government debt structure. S&P estimates
that current cash reserves in the single treasury account are
equivalent to coverage of almost three times the next two years of
net government borrowing. This, alongside low commercial
refinancing requirements, will help to immunize public finances
against a rise in global interest rates, although rising real rates
could exert downward pressure on public finances by weighing on GDP
growth.

In terms of maturity and average interest costs, Greece has one of
the most advantageous debt profiles of all the sovereigns we rate.
S&P said, "We expect the commercial portion of Greece's central
government debt will represent about 25% of total debt, or slightly
more than 50% of GDP at end-2022. We project that Greece's general
government gross and net debt-to-GDP ratios will continue on a
downward trend during 2022-2025, aided by a recovery in nominal GDP
growth and budgetary consolidation."

S&P's ratings on Greece are constrained by the country's high
external and government debt.

Institutional and economic profile: Underlying growth will remain
positive despite the fallout from the war in Ukraine

-- Higher energy prices and an acceleration of inflation will
contribute to a deceleration of GDP growth this year to about 3.4%
versus 8.3% in 2021.

-- S&P believes that the Greek economy will benefit substantially
from the available facilities under the NGEU agreement.

-- The ECB clarified that it could continue purchasing Greek
government bonds over and above rollovers of redemptions if it
observed a deterioration in the monetary policy transmission in
Greece while the economy is still recovering from pandemic
fallout.

S&P said, "Following the deep GDP contraction in 2020 (-9.0%) and
much stronger rebound than expected in 2021 (8.3%), we expect the
Greek economy to expand by 3.4% in 2022, which implies a slowdown
to underlying growth of just under 2%, after accounting for the
statistical carry-over effect estimated at 1.6 percentage points.
We revised down this year's growth forecast (from 5% previously)
due to the impact of the war in Ukraine, which we expect will
result mainly from indirect economic effects, in particular via
sharp increases in energy and electricity prices, given that direct
trade links with Russia and Ukraine are limited. We expect the
impact on the basis of our current assumptions will be manageable
and over the next three years, we expect Greece's economic growth
will surpass the eurozone average, including in real GDP per capita
terms." There are large uncertainties around these projections,
primarily to the downside, in the event the war is prolonged, the
war escalates to North Atlantic Treaty Organization members, or an
embargo on Russian gas exports is put in place.

Greece's buoyant recovery in 2021 was fueled mainly by surging
domestic demand and exports. The latter benefitted from a strong
albeit incomplete recovery in tourism and a rebound in the
transportation sector and exports of goods. Following a 0.3%
decline in 2020 because of the pandemic, gross fixed capital
formation jumped sharply by almost 20% during 2021, driven mainly
by a rise in investment in machinery and equipment. This, together
with the increase in private consumption and rising energy prices
in the second part of the year, explains a notable increase in
imports.

Tourism accounts for an estimated 10% of total employment and just
under 7% of gross value added. In 2019, Greece's net tourism
exports hit an all-time high of EUR15.4 billion, equivalent to 8.4%
of GDP. S&P doesn't project the return of net tourism earnings to
these elevated pre-pandemic levels until 2023-2024. However,
earnings in the sector improved significantly during 2021. For
example, tourist arrivals practically doubled in comparison with
2020, while travel receipts more than doubled to EUR10.7 billion
from EUR4.3 billion, reaching 47% and 59% of their 2019 levels.
This suggests that the ongoing recovery in tourism will
significantly support economic growth in the coming years and
contribute to a gradual decline in the current account deficit.
That expectation is also supported by indications of significant
increases in flight capacity to Greece (excluding from Russia, to
which flights are banned).

Construction and manufacturing activity has been recovering
quickly, with the manufacturing purchasing managers' index having
reached levels not seen since the late 1990s. Nevertheless, in
recent months, business and consumer confidence indicators, as well
as trends in industrial production, have been affected by
uncertainties related to inflation dynamics, in particular in
relation to high energy and electricity prices. While the
government's supportive economic and budgetary measures, together
with strong performance of the labor market, have boosted household
disposable income and recovery in domestic demand, the sharp rise
in inflation will likely weigh on private consumption and
investment.

As a result of a sharp rise in inflation, S&P expects private
consumption and investment activity will decelerate this year,
although S&P expects net foreign direct investment (FDI) to
continue rising. Following the sharp slowdown in 2020, several
privatization projects are in their final stages (DEPA
Infrastructure) or well advanced (regional sea ports and
concessions for Attiki Odos and the Egnatia motorway), which, if
finalized, will contribute to a substantial increase in
privatization proceeds this year.

S&P said, "We believe that the Greek economy will benefit
substantially from the available facilities under the NGEU
agreement. Greece is set to receive grants of EUR17.8 billion by
2026 and loans of EUR12.7 billion, without considering loans it
received via the Support to Mitigate Unemployment Risks in an
Emergency (SURE) scheme for employment support. In 2021, it
received almost EUR4 billion in grants and loans from the EU
Recovery and Resilience Facility (RRF), with another EUR5.2 billion
scheduled for disbursement in 2022. More than one-third of the
allocation from the RRF is planned for the country's green
transition, almost one-quarter for digitalization, and the
remainder for supporting private investment, labor market policies,
health care, and public administration, including tax
administration and the judiciary. We believe that, if used
efficiently, these funds could fast-track the structural
improvements in the economy and will contribute to stronger growth
during our forecast horizon, especially in the context of
heightened uncertainties with respect to the adverse impact of the
war in Ukraine."

The ECB's PEPP, launched at the pandemic's onset to stabilize
financial markets, helped absorb the economic shocks stemming from
the COVID-19 pandemic, including in Greece. Besides granting a
waiver of the eligibility requirements for securities issued by the
Greek government, the ECB accepted Greek government bonds as
collateral in its repurchase operations, further boosting liquidity
support to the banking system. In light of the decision to
discontinue net asset purchases under the PEPP at the end of March
2022, the ECB clarified that it could continue purchasing Greek
government bonds over and above rollovers of redemptions if it
observed a deterioration in the monetary policy transmission in
Greece while the economy is still recovering from the fallout from
the pandemic.

Greece has made progress in improving the business environment. The
government is reducing undue administrative burdens (especially to
speed up investment), tackling inefficiencies in the judiciary,
setting up the cadastral agency and completing cadastral mapping by
mid-year 2022, and advancing digital transformation, particularly
in the services sector. This includes embedding digital skills
training into primary and secondary education, as well as
digitalizing public administration. Furthermore, the government has
adopted vocational training and higher education reforms to improve
labor market outcomes. S&P believes successful reforms would likely
result in productivity gains, enhance macroeconomic outcomes, and
improve the sovereign's debt-servicing ability in the
medium-to-long term. In S&P's view, the funds available under the
NGEU agreement could act as a catalyst for such reforms, with
previous and ongoing structural initiatives likely to boost
economic growth.

In S&P's opinion, a drop in banks' nonperforming exposures (NPE) is
key to a faster economic recovery since it would spur
private-sector credit, which in net terms is still shrinking. Banks
have continued their efforts to reduce the large stock of NPEs,
despite the pandemic's repercussions on corporate balance sheets.
The share of NPEs in total loans of the systemically important
banks dropped sharply to 10% in 2021 from 31% in 2020. Moreover,
the government is drawing EUR12.7 billion of loans from the EU RRF
and channeling them to the private sector at low borrowing costs
via the banking system, which should help address the gap between
the credit demand and supply in the economy and spur economic
activity in the coming years.

Following the end of the European Stability Mechanism program,
Greece is subject to quarterly reviews under the European
Commission's enhanced surveillance framework until August this
year, after which it will be subject to post-program surveillance
with the focus on meeting budgetary targets and continued
implementation of structural reforms. Ongoing debt relief and the
return of profits from Greek bonds held by the ECB and eurozone
national central banks under the Agreement on Net Financial
Assets/Securities Market Program (ANFA/SMP) are subject to ongoing
compliance with the program's objectives. These and the available
NGEU funds provide a major incentive for the government to continue
structural reforms, regardless of the decisions concerning the
electoral calendar.

Flexibility and performance profile: Budgetary performance will
improve in 2022, as COVID-19 fallout subsides

-- The budget deficit is forecast to decline to 4.2% of GDP in
2022 as additional pandemic-related measures are withdrawn.

-- As a result, S&P projects a decline in gross general government
debt to about 184% of GDP in 2022 from about 193% in 2021, while
the government preserves substantial fiscal buffers.
-- Given very large volumes of completed and ongoing NPE
disposals, S&P expects the systemwide ratio to drop to below 8% by
year-end 2022 from 12.8% in 2021.

S&P said, "The pandemic interrupted Greece's recent track record of
above-target budget surpluses. Budget deficits were large in 2020
and 2021 (10.2% and 7.4% of GDP, respectively), but we expect the
deficit will narrow to about 4.2% of GDP in 2022. Our upward
revision of the budget deficit forecast (from 3.1% of GDP
previously) incorporates our lower economic growth forecast as well
as the government's recent discretionary budgetary measures to
quell the inflationary pressures emanating from energy,
electricity, and food prices for households and companies.

"In 2022, we expect the withdrawal of most of the pandemic-related
discretionary budgetary measures will drive the reduction in the
budget deficit, while a windfall increase in government revenue
will likely provide some cushion against a larger budgetary
slippage compared with the government's budgetary target of 3.7% of
GDP. Given the extraordinary circumstances last year and the
temporary suspension of the EU Stability and Growth Pact fiscal
framework, the requirement for Greece to meet its 3.5% of GDP
primary balance in 2020-2022 was suspended and we now expect the
government will return to a primary surplus again in 2023."

Greece's 2022 budget includes measures aimed at:

-- Incentivizing employment--in particular among young people who
are also benefiting from housing and other benefits;

-- Reducing social security contributions for private sector
employees by two percentage points and cutting the corporate income
tax rate by two percentage points;

-- Boosting investment toward the green transition and
digitalization by introducing tax credits for small and midsize
enterprises; and

-- Increasing spending on the armed forces.

S&P said, "Considering the anticipated economic recovery and
narrowing budget deficit, we expect gross general government debt
will fall to about 184% of GDP in 2022, from about 193% in 2021,
before declining further over 2023-2025. Net of cash buffers, we
project a decrease in net general government debt to about 170% of
GDP in 2022--the highest among all sovereigns we rate--from about
176% of GDP in 2021."

Despite the significant worsening in the budget balance in 2020 and
2021 compared with the pre-pandemic period, Greece entered the
pandemic with substantial fiscal buffers. This is demonstrated by
its underlying pre-pandemic structural budget position (estimated
at a surplus of about 2% of GDP in 2019), as well as its access to
substantial liquidity reserves (estimated at about 17% of GDP at
year-end 2021; excluding the IMF allocation of special drawing
rights, estimated at EUR3 billion), which markedly reduce its
borrowing needs. The transfers of SMP/ANFA returns from the
Eurosystem will continue since Greece has been broadly complying
with the related review benchmarks. In addition, the ECB's recent
decision to continue purchasing Greek government bonds over and
above rollovers of redemptions if it observed a deterioration in
the monetary policy transmission in Greece is key for Greece's
access to funding at affordable rates, in our view.

S&P said, "We estimate Greece's debt-servicing costs averaged about
1.3% at year-end 2021. Despite the country's sizable debt, this is
significantly lower than the average refinancing costs for most
sovereigns we rate in the 'BB' category. The weighted-average
residual maturity of central government debt stood at about 20
years at the end of 2021. We expect this and future debt management
operations, including with respect to the bilateral loans (GLF),
will help alleviate the government's interest burden, even
considering the material increase in government debt due to the
economic and budgetary impact of the pandemic. Importantly, in
March 2022, Greece pre-paid the remaining amount of its IMF loan
(EUR1.86 billion), two years ahead of schedule. As Greece continues
to replace an increasing share of its government debt with
commercial bond issuance, its debt-servicing costs as a share of
government revenues could rise.

"We continue to view the Greek financial system as an outlier in
the eurozone. A high amount of NPEs despite recent significant
improvements, weak quality and level of capital, and limited
earnings prospects continue restraining Greek banks'
creditworthiness. The ongoing restructuring of Attica Bank--the
fifth largest bank in terms of assets--is a new case in point.
Belated emergence of its massive asset quality issues and resulting
large losses and insolvency in 2021 triggered the conversion of
deferred tax credits, making Hellenic Financial Stability Fund its
largest owner through a EUR245 million capital contribution. That
said, we view this recent incident as an isolated one and Attica
Bank is not systemically important."

In terms of NPEs, the four largest banks have been making
meaningful progress toward normalization since the implementation
of the Hercules Asset Protection Scheme in 2018 under which the
government extends first-loss guarantees on senior tranches of
notes backed by pools of NPEs that are securitized by Greek banks.
By leveraging Hercules, and the increased investment from
distressed asset purchasers in Greek bad debt, Greek banks have
reduced legacy assets by more than EUR30 billion in the past three
years. Given very large volumes of completed and ongoing NPE
disposals, we expect the systemwide NPE ratio to drop below 8% by
year-end 2022. Still, S&P expects Greek banks' asset quality
metrics will remain weaker than the EU average.

Therefore, profitability is returning, supported by lower loan loss
provisions and a focus on controlling expenses. Greek banks have
substantially reduced their operating expenditure through
downsizing branch networks and headcount, mostly in the form of
voluntary retirement schemes. Fees from business-lending activities
are likely to increase, fueled by greater loan disbursement and
increased assets under management. The National Bank of Greece
(NBG) and Eurobank will likely reinstate dividends from 2022
earnings, while Alpha Bank could follow a year later. Risks include
a more pronounced fall in net interest income due to greater loan
book contraction than expected, and profit margin pressure from
increased funding costs. The latter is due to the ECB's targeted
longer-term refinancing operations (TLTROs) coming to an end. S&P
said, "In our view, inflows of NPEs should be limited because the
Greek banking system has shown a good resilience to the pandemic.
Secondly, legislative reforms, including the new personal
bankruptcy framework, are improving the payment culture and
recovery rates. As such, Eurobank's and NBG's cost of risk has
normalized, and we expect the same for Alpha and Piraeus once they
finalize their remaining large NPE securitizations and absorb
additional one-off provisioning needs. In our view, the war in
Ukraine should have little direct effect on Greek banks, although
higher energy and food prices could indirectly hurt investor
confidence and tourism revenue. We also anticipate that improving
business sentiment and RRF funds will support the banking sector's
recovery."

The key challenge for Greek banks' creditworthiness is the high
amount of deferred tax credits in common equity tier 1 capital. At
the end of 2021, deferred tax credits made up 61%-91% of common
shareholder's equity at the four largest Greek banks.

S&P said, "We project Greece's current account deficit will narrow
moderately in 2022 to about 4.5% of GDP from 5.8% last year. This
will follow a further pickup in tourism and other export receipts,
as well as very benign trends on Greece's primary income balance,
reflecting EU funds and still very low global interest rates. For
2022-2024, a projected increase in imports, especially due to
higher oil and energy prices, will impede a faster improvement in
the current account balance. In our view, structural economic
changes in recent years have put Greece's export sector in a
position to benefit from its increased competitiveness, which is
displayed in the solid export performance of goods. Nevertheless,
at less than 20% of GDP, Greece's merchandise export sector is
considerably below the European average. More broadly, labor cost
competitiveness has improved to levels before 2000, and external
demand has risen. Consequently, the share of exported goods and
services (excluding shipping services) has more than doubled to 47%
of GDP in 2021 and is expected to increase further to above 50% of
GDP by 2025, compared with 19% of GDP in 2009. Moreover, following
a temporary dip in 2020, FDI inflows have been on a rising trend
since 2021. We believe that the large grants emanating from the
NGEU agreement will benefit balance-of-payments developments during
2021-2026. Indeed, they underpin our current forecast of a steady
decline in the current account deficit."

Greek inflation hit a 27-year high of 8.0% in March (according to
the Harmonized Index of Consumer Prices; 8.9% according to the
National Index), reflecting surging energy and food prices.
Volatile inflation outcomes are complicating investment and
spending decisions for Greece's private sector and represent a risk
to growth. However, so far, in contrast to trends in the U.S. and
U.K., there is little evidence that higher consumer and producer
price inflation is pushing up wages in the Greek economy. S&P
projects that 12-month inflation is very close to its peak,
although the headline figure is unlikely to fall back until
September when the most elevated monthly figures are set to fall
out of the 12-month index. More generally, the inflation outlook
depends largely on events outside the ECB's control, in particular
the duration of the war in Ukraine and, hence, the behavior of
global commodity prices, as well as the potential for some
appreciation of the euro versus the US dollar.

Although the ECB ended net asset purchases under the PEPP in March,
it has committed to reinvest its holdings of Greek and other euro
area sovereign debt upon maturity at least until end-2024.
Moreover, the ECB has clarified that it retains the right to
recommence net purchases of Greek bonds under the PEPP in the event
of rate divergence between euro area government bonds unsupported
by underlying fundamentals. Greek government bonds are not yet
eligible for purchases under the ECB's other major asset purchase
program, the APP. However, on March 24, 2022, the ECB Governing
Council confirmed that national central banks within the Eurosystem
can continue to accept Greek government bonds as eligible
collateral for refinancing operations.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  Ratings List

  UPGRADED; RATINGS AFFIRMED  
                                 TO             FROM
  GREECE

  Sovereign Credit Rating    BB+/Stable/B    BB/Positive/B
  Senior Unsecured               BB+             BB

  RATINGS AFFIRMED  

  GREECE

  Transfer & Convertibility Assessment    AAA
  Commercial Paper                        B




=============
I R E L A N D
=============

ARMADA EURO II: Moody's Hikes Rating on EUR12MM Cl. F Notes to B1
-----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the following
notes issued by Armada Euro CLO II Designated Activity Company:

EUR28,000,000 Class B-1 Senior Secured Floating Rate Notes due
2031, Upgraded to Aa1 (sf); previously on Apr 27, 2018 Definitive
Rating Assigned Aa2 (sf)

EUR10,000,000 Class B-2 Senior Secured Floating Rate Notes due
2031, Upgraded to Aa1 (sf); previously on Apr 27, 2018 Definitive
Rating Assigned Aa2 (sf)

EUR20,000,000 Class C-1 Senior Secured Deferrable Floating Rate
Notes due 2031, Upgraded to A1 (sf); previously on Apr 27, 2018
Definitive Rating Assigned A2 (sf)

EUR8,500,000 Class C-2 Senior Secured Deferrable Floating Rate
Notes due 2031, Upgraded to A1 (sf); previously on Apr 27, 2018
Definitive Rating Assigned A2 (sf)

EUR22,500,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2031, Upgraded to Baa1 (sf); previously on Apr 27, 2018
Definitive Rating Assigned Baa2 (sf)

EUR12,000,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2031, Upgraded to B1 (sf); previously on Apr 27, 2018
Definitive Rating Assigned B2 (sf)

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

EUR193,000,000 Class A-1 Senior Secured Floating Rate Notes due
2031, Affirmed Aaa (sf); previously on Apr 27, 2018 Definitive
Rating Assigned Aaa (sf)

EUR25,000,000 Class A-2 Senior Secured Floating Rate Notes due
2031, Affirmed Aaa (sf); previously on Apr 27, 2018 Definitive
Rating Assigned Aaa (sf)

EUR30,000,000 Class A-3 Senior Secured Fixed Rate Notes due 2031,
Affirmed Aaa (sf); previously on Apr 27, 2018 Definitive Rating
Assigned Aaa (sf)

EUR23,000,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed Ba2 (sf); previously on Apr 27, 2018
Definitive Rating Assigned Ba2 (sf)

Armada Euro CLO II Designated Activity Company, issued in April
2018, is a collateralised loan obligation (CLO) backed by a
portfolio of mostly high-yield senior secured European loans. The
portfolio is managed by Brigade Capital Europe Management LLP. The
transaction's reinvestment period will end in May 2022.

RATINGS RATIONALE

The rating upgrades on the Class B-1, Class B-2, Class C-1, Class
C-2, Class D and Class F 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, Class A-2, Class
A-3 and Class E Notes are primarily a result of the expected losses
on the notes remaining consistent with their current ratings after
taking into account the CLO's latest portfolio, its relevant
structural features and its actual over-collateralization (OC)
levels.

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 April 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: EUR399.36 million

Diversity Score: 52

Weighted Average Rating Factor (WARF): 2718

Weighted Average Life (WAL): 4.86 years

Weighted Average Spread (WAS) (before accounting for Euribor
floors): 3.48%

Weighted Average Coupon (WAC): 4.44%

Weighted Average Recovery Rate (WARR): 45.67%

Par haircut in OC tests and interest diversion test: 0.0%

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:

Once reaching the end of the reinvestment period in May 2022, 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.

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.

HENLEY CLO VII: S&P Assigns B- (sf) Rating to Class F Notes
-----------------------------------------------------------
S&P Global Ratings assigned credit ratings to Henley CLO VII DAC's
class A to F European cash flow CLO notes. At closing, the issuer
has issued unrated subordinated notes.

Under the transaction documents, the rated notes will pay quarterly
interest unless a frequency switch event occurs. Following this,
the notes will permanently switch to semiannual payments.

The portfolio's reinvestment period will end approximately 3.0
years after closing, while the non-call period will end 1.0 years
after closing.

The ratings reflect S&P's assessment of:

-- The diversified collateral pool, which primarily comprises
broadly syndicated speculative-grade senior-secured term loans and
bonds that are governed by collateral quality tests.

-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.

-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.

-- The transaction's legal structure, is bankruptcy remote.

-- The transaction's counterparty risks, is in line with S&P's
counterparty rating framework.

  Portfolio Benchmarks
                                                   CURRENT
  S&P weighted-average rating factor              3,067.19
  Default rate dispersion                           462.73
  Weighted-average life (years)                       5.22
  Obligor diversity measure                         113.28
  Industry diversity measure                         18.34
  Regional diversity measure                          1.14

  Transaction Key Metrics
                                                   CURRENT
  Portfolio weighted-average rating
  derived from S&P's CDO evaluator                       B
  'CCC' category rated assets (%)                     2.61
  'AAA' weighted-average recovery (%)                34.73
  Floating-rate assets (%)                           86.24
  Weighted-average spread (net of floors; %)          4.15

The portfolio is well-diversified, primarily comprising broadly
syndicated speculative-grade senior-secured term loans and
senior-secured bonds. Therefore, S&P has conducted its credit and
cash flow analysis by applying our criteria for corporate cash flow
CDOs.

S&P said, "In our cash flow analysis, we used the EUR400 million
target par amount, the actual weighted-average spread (4.15%), and
the actual weighted-average coupon (5.08%) as indicated by the
collateral manager. We have assumed weighted-average recovery
rates, at all rating levels, in line with the recovery rates of the
actual portfolio presented to us. We applied various cash flow
stress scenarios, using four different default patterns, in
conjunction with different interest rate stress scenarios for each
liability rating category.

"Our credit and cash flow analysis show that the class B-1, B-2,
and C notes benefit from break-even default rate (BDR) and scenario
default rate cushions that we would typically consider to be in
line with higher ratings than those assigned. However, as the CLO
is still in its reinvestment phase, during which the transaction's
credit risk profile could deteriorate, we have capped our ratings
on the notes. The class A, D, and E notes can withstand stresses
commensurate with the assigned ratings.

"The class F notes' current BDR cushion is negative at the current
rating level. Nevertheless, based on the portfolio's actual
characteristics and additional overlaying factors, including our
long-term corporate default rates and recent economic outlook, we
believe this class is able to sustain a steady-state scenario, in
accordance with our criteria." S&P's analysis further reflects
several factors, including:

-- The class F notes' available credit enhancement, which is in
the same range as that of other CLOs it has rated and that has
recently been issued in Europe.

-- S&P's model-generated portfolio default risk, which is at the
'B-' rating level at 26.44% (for a portfolio with a
weighted-average life of 5.22 years) versus 16.17% if it was to
consider a long-term sustainable default rate of 3.1% for 5.22
years.

-- Whether the tranche is vulnerable to nonpayment in the near
future.

-- If there is a one-in-two chance for this note to default.

If S&P envisions this tranche to default in the next 12-18 months.
Following this analysis, S&P considers that the available credit
enhancement for the class F notes is commensurate with the assigned
'B- (sf)' rating.

Until the end of the reinvestment period on April 25, 2025, the
collateral manager may substitute assets in the portfolio for so
long as S&P's CDO Monitor test is maintained or improved in
relation to the initial ratings on the notes. This test looks at
the total amount of losses that the transaction can sustain as
established by the initial cash flows for each rating, and it
compares that with the current portfolio's default potential plus
par losses to date. As a result, until the end of the reinvestment
period, the collateral manager may through trading deteriorate the
transaction's current risk profile, as long as the initial ratings
are maintained.

S&P said, "Under our structured finance sovereign risk criteria, we
consider that the transaction's exposure to country risk is
sufficiently mitigated at the assigned ratings.

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

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

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe our ratings are
commensurate with the available credit enhancement for the class A
to F notes.

"In addition to our standard analysis, to provide an indication of
how rising pressures among speculative-grade corporates could
affect our ratings on European CLO transactions, we have also
included the sensitivity of the ratings on the class A to E notes
to five of the 10 hypothetical scenarios we looked at in our
publication, "How Credit Distress Due To COVID-19 Could Affect
European CLO Ratings," published on April 2, 2020.

"As our ratings analysis makes additional considerations before
assigning ratings in the 'CCC' category, and we would assign a 'B-'
rating if the criteria for assigning a 'CCC' category rating are
not met, we have not included the above scenario analysis results
for the class F notes.

  Ratings List

  CLASS    RATING     AMOUNT     INTEREST   CREDIT
                    (MIL. EUR)    RATE (%)     ENHANCEMENT (%)

  A        AAA (sf)   232.00     3mE + 1.05      42.00

  B-1      AA (sf)     33.90     3mE + 2.40      28.00

  B-2      AA (sf)     22.10           3.00      28.00

  C        A (sf)      24.00     3mE + 3.15      22.00

  D        BBB- (sf)   29.00     3mE + 4.25      14.75

  E        BB- (sf)    18.80     3mE + 7.14      10.05

  F        B- (sf)     12.20     3mE + 9.50       7.00

  Sub      NR          28.50            N/A        N/A

  NR--Not rated.
  N/A--Not applicable.
  3mE--Three-month Euro Interbank Offered Rate.


[*] IRELAND: Central Bank Expects Wave of "Covid Bankruptcies"
--------------------------------------------------------------
Jon Ihle at Independent.ie reports that unviable firms kept alive
by State pandemic support are facing failure as subsidies are
withdrawn and inflation increases input costs while depressing
consumer demand, the Central Bank has warned.

In a report published on April 21, Central Bank economists said the
tapering of Government Covid supports, which end this month, may
"lead to difficulties for a cohort of weaker firms" and that some
will "ultimately fail", Independent.ie relates.

According to Independent.ie, the note also identified inflation as
a key concern for small businesses trying to get back on their feet
after the pandemic, causing higher input costs as well as reducing
demand for products and services and potentially increasing the
cost of borrowing.

However, they also said credit demand was likely to rise in the
coming months as firms adjusted to the changing economic reality by
seeking to refinance debts, Independent.ie notes.

Demand for loans among Irish SMEs is far below the median for the
eurozone, Independent.ie discloses.  Businesses report the main
reason they do not apply for credit is that they have sufficient
internal funds, according to Independent.ie.

In fact, more businesses said they had enough of their own money
during the pandemic than before it, suggesting that Government
payments were a significant factor in supporting SME balance sheets
in the last two years, Independent.ie relays.

Many commentators have predicted a wave of post-pandemic
insolvencies and debt restructurings as small firms try to repair
damaged balance sheets following a challenging period,
Independent.ie states.




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

ASSICURAZIONI GENERALI: Egan-Jones Keeps BB Sr. Unsecured Ratings
-----------------------------------------------------------------
Egan-Jones Ratings Company, on March 22, 2022, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Assicurazioni Generali S.p.A.

Headquartered in Trieste, Italy, Assicurazioni Generali S.p.A.
offers life and non-life insurance and reinsurance throughout the
world.


CAPRI: Panorama Hotel Complex Auction Scheduled for May 24
----------------------------------------------------------
A panorama hotel complex, consisting of six pavillions plus dining
room, bar, kitchen and offices, for a total of about 900 sqm
covered area, 2,000 sqm park with gradens and avenues, 1,200 sqm of
terraces and arcades, swimming pool and solarium of about 55 sqm,
is being put up for sale.

The basic price of the auction is set at EUR4,800,000.

The auction is scheduled for May 24, 2022.

For information and sales methods visit the website
www.venditepubblichenotarili.notariato.it;
Mobile (+39) 3287167100; alberghilapergolaevillapina@gmail.com


ENEL SPA: Egan-Jones Keeps BB Senior Unsecured Ratings
------------------------------------------------------
Egan-Jones Ratings Company, on March 28, 2022, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Enel SpA.

Headquartered in Rome, Italy, Enel SpA operates as a multinational
power company and an integrated player in the global power, gas,
and renewables markets.


TELECOM ITALIA: Egan-Jones Keeps B+ Senior Unsecured Ratings
------------------------------------------------------------
Egan-Jones Ratings Company, on March 22, 2022, maintained its 'B+'
foreign currency and local currency senior unsecured ratings on
debt issued by Telecom Italia S.p.A.

Headquartered in Milan, Italy, Telecom Italia S.p.A., through
subsidiaries, offers fixed line and mobile telephone and data
transmission services in Italy and abroad.




===================
K A Z A K H S T A N
===================

FIRST HEARTLAND: Moody's Withdraws 'B2' Long Term Issuer Rating
---------------------------------------------------------------
Moody's Investors Service has withdrawn the following ratings of
First Heartland Securities, JSC (FHS):

Long-Term Issuer Rating (Foreign) of B2

Long-Term Issuer Rating (Domestic) of B2

NSR Long-Term Issuer Rating (Domestic) of Ba3.kz

Short-Term Issuer Rating (Foreign) of NP

Short-Term Issuer Rating (Domestic) of NP

At the time of the withdrawal, the company's long-term issuer
ratings carried a stable outlook and the company's issuer outlook
was also stable.

RATINGS RATIONALE

Moody's has decided to withdraw the ratings for its own business
reasons.

First Heartland Securities, JSC (FHS) is a Kazakhstan-based
brokerage company and holding company.



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

REFRESCO: Moody's Assigns 'B2' CFR, Outlook Positive
----------------------------------------------------
Moody's Investors Service has assigned a B2 corporate family rating
and a B2-PD probability of default rating to Pegasus Midco B.V., a
new entity created for the acquisition of Refresco Holding B.V.
("Refresco" or "the company"), and top entity of the new restricted
group to which the rating is assigned. Concurrently, Moody's has
assigned a B2 rating to the proposed EUR3.4 billion euro equivalent
guaranteed senior secured 1st lien term loan B (split in 3 three
tranches) and to the EUR500 million guaranteed senior secured 1st
lien revolving credit facility ("RCF"), both issued at the fully
owned subsidiary Pegasus BidCo B.V.. Moody's has withdrawn the B2
CFR assigned at Sunshine Mid B.V., the top entity of the existing
restricted group. The outlook on the ratings for Pegasus Midco B.V.
and the debt issued by Pegasus BidCo B.V. is positive.

On February 22, 2022, Kohlberg Kravis Roberts & Co. L.P. ("KKR")
announced an agreement to acquire a majority stake in Refresco. The
existing investors, PAI Partners ("PAI"), British Columbia
Investment Management Corporation ("BCI"), and management will
retain a meaningful stake.

The transaction is expected to be completed in the third quarter
2022, and will be funded through a combination of EUR3.5 billion of
shareholder funding (including rolled equity from the existing
shareholders), and EUR3.4 billion guaranteed senior secured 1st
lien term loan B maturing in 7 years. The capital structure will
also include a EUR500 million guaranteed senior secured 1st lien
revolving credit facility maturing in 6.5 years, which is expected
to remain undrawn at closing.

Following the acquisition, Moody's adjusted gross debt will
increase towards EUR4 billion at December 2022, from EUR3.3 billion
at December 2021, implying an increase in Moody's adjusted leverage
to 6.4x in 2022 from 5.8x in 2021.

"Refresco's B2 rating reflects the company scale as the leading
independent beverage solutions provider company and the wide
product offering" says Ernesto Bisagno, a Moody's Vice President --
Senior Credit Officer and lead analyst for Refresco.

"However, the rating also factors in Refresco's highly leveraged
capital structure and the exposure to the current commodity price
volatility," adds Mr. Bisagno

RATINGS RATIONALE

Refresco is strongly positioned in the rating category. The B2
rating reflects (1) its significant scale and relevance as the
largest independent beverage solutions provider in Europe and North
America; (2) the wide product offering in terms of drinks and types
of packaging; (3) the steady profits growth and modest positive
free cash flow (FCF); and (4) good track record of integrating
acquired assets. The company's rating is constrained by (1) its
highly leveraged capital structure, with expected Moody's adjusted
gross debt/EBITDA of 6.4x as of December 2022; (2) exposure to
price competition and fluctuation in raw material prices; (3)
operations in mature markets, with modest potential for volume
growth; (4) modest geographical diversification and degree of
customer concentration; and (5) the potential for debt-financed M&A
activity.

Moody's has factored into its decision to assign a B2 rating to
Refresco the governance considerations associated with the
company's financial strategy and risk management, as well as its
concentrated ownership. While the proposed capital structure
includes a material equity component, the company will be
controlled by KKR, which, as is often the case in highly levered,
private-equity-sponsored deals, could have a high tolerance for
leverage. This is mitigated by the good revenue visibility,
management's strong track record in generating steady earnings
growth, and the fact that the company will generate positive FCF.

In 2021, the company's Moody's adjusted EBITDA increased by 11% to
EUR565 million, driven by positive organic growth, additional
synergies and additional cost efficiencies. Despite stronger
EBITDA, Moody's-adjusted FCF was broadly neutral, due to a
combination of higher working capital needs and increased capital
expenditure.

Moody's expects additional EBITDA growth over the next 12-18
months, driven by the contribution from acquired assets, and
positive organic revenue and improving trends in contract
manufacturing. While the unprecedented volatility in raw material
costs could create some margin volatility in 2022, the rating
agency expects the company to be able to pass on to its customers
most of the commodity price increases over the next 12 months.

Moody's adjusted FCF in 2022 will remain broadly neutral or be
marginally negative due to higher capex and increased working
capital requirement owing a normalization of inventory to pre-covid
levels; and will improve towards EUR100 million in 2023.

Because of the increased debt, Moody's adjusted gross debt to
EBITDA will increase to 6.4x in 2022 from 5.8x in 2021, and return
towards 6.0x in 2023, driven by stronger earnings.

LIQUIDITY

Pro-forma for the transaction Refresco's liquidity is satisfactory
reflecting a combination of initial cash of EUR100 million, Moody's
expectations of modest positive FCF from 2023, and access to a
EUR500 million guaranteed senior secured RCF.

The guaranteed senior secured RCF has a springing financial
covenant with a net secured leverage test below 9.6x for drawings
of more than 40%.

The company's sales and EBITDA are generally higher in the warmer
months of April through September and lower during the colder
months of October through March. Its working capital typically
increases during the first half of the year because of the
inventory build-up ahead of the peak season but winds down during
the third quarter of the year. Capital spending tends to be higher
in the first and last quarters because new lines or upgrades are
done outside the peak season.

STRUCTURAL CONSIDERATIONS

The guaranteed senior secured bank credit facilities are rated B2,
in line with the CFR, because all the debt in the capital structure
is pari passu. The senior secured bank credit facilities are
guaranteed by material subsidiaries currently representing 75% of
total EBITDA and secured by shares, certain assets of guarantors
located in US, UK, Canada and the Netherlands, including account
receivables, inventory, equipment, investment property, and real
property.

RATIONALE FOR POSITIVE OUTLOOK

The positive outlook reflects Moody's expectations that the company
will continue to generate steady earnings growth which, in absence
of material debt funded M&A activity, will drive deleveraging.
Success in weathering the current commodity price volatility,
demonstrated by the ability to maintain its profitability while
reducing its financial leverage, could lead to a rating upgrade.

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

The rating could be upgraded if Refresco maintains Moody's-adjusted
EBITA margin in the mid- to high single digits in percentage terms;
reduces its Moody's-adjusted debt/EBITDA below 6.0x; and retains
solid liquidity, including positive FCF.

The rating could be downgraded if the company's operating
performance deteriorates. Quantitatively, downward pressure would
arise if the company's Moody's-adjusted debt/EBITDA increases above
7.0x, or FCF deteriorates or liquidity weakens

LIST OF AFFECTED RATINGS

Assignments:

Issuer: Pegasus Midco B.V.

Probability of Default Rating, Assigned B2-PD

LT Corporate Family Rating, Assigned B2

Issuer: Pegasus BidCo B.V.

BACKED Senior Secured Bank Credit Facility, Assigned B2

Outlook Actions:

Issuer: Pegasus BidCo B.V.

Outlook, Assigned Positive

Issuer: Pegasus Midco B.V.

Outlook, Assigned Positive

Withdrawals:

Issuer: Sunshine Mid B.V.

Probability of Default Rating, Withdrawn , previously rated B2-PD

LT Corporate Family Rating, Withdrawn , previously rated B2

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Global Soft
Beverage Industry published in January 2017.

COMPANY PROFILE

Pegasus Midco B.V. was formed for the acquisition of Refresco, and
is controlled by funds managed and advised by KKR. Pegasus Midco
B.V. is the top company of the restricted group to which the
corporate family rating is assigned. Pegasus BidCo B.V. is the
borrower and will be the reporting entity with no material
differences with Pegasus Midco B.V. from an accounting
perspective.

Refresco, headquartered in Rotterdam, is the world's leading
independent beverage solutions provider, serving branded operators
(global, national and emerging brands), and private-label products
to retailers.

Refresco's private-label product portfolio includes fruit juices,
carbonated soft drinks (CSD), noncarbonated soft drinks (still
drinks), energy drinks, ready-to-drink teas and bottled water. The
company also manufactures widely recognised European and
international brands, or A brands, of beverages on contract (also
known as co-packing or contract manufacturing). It reported revenue
and Adj. EBITDA of EUR4.2 billion and EUR564 million, respectively,
in 2021.

REFRESCO: S&P Assigns 'B+' LT ICR on Major Stake Acquisition by KKR
-------------------------------------------------------------------
S&P Global Ratings assigned its 'B+' long-term issuer credit rating
to Pegasus Bidco B.V. (parent company of Refresco) and its 'B+'
issue and '3' recovery ratings to its proposed EUR3.4 billion
EUR-equivalent first-lien term loan.

The stable outlook reflects S&P's view that Refresco should be able
to smoothly integrate recent acquisitions and continue to offset
high operating cost pressures. S&P anticipates it will maintain
adjusted debt to EBITDA of between 6x-7x and improve free operating
cash flow (FOCF after leases) to around EUR50 million in the next
12-18 months, following a period of high capital expenditure
(capex) in 2022.

On Feb. 22, 2022, private equity firm KKR announced an agreement to
acquire a majority stake in the soft drinks bottling solutions
provider Refresco from PAI Partners (PAI) and British Columbia
Investment Management Corp. (BCI), who retain a significant
minority stake.

The rating reflects Refresco's sizeable scale, flexible
manufacturing base, category diversity within the global soft
drinks industry, and management continuity. S&P said, "These
factors place the company at the stronger end of our existing
business risk assessment, and support the 'B+' rating level. We
project overall revenue growth of about 15%-17% (to around EUR4.9
billion) and S&P Global Ratings-adjusted EBITDA of close to EUR600
million (EUR536 million in 2021) in 2022. This is supported by
enhanced size from recent acquisitions of German mineral water and
carbonated soft drinks (CSD) bottler, Hansa-Heemann, and three
Coca-Cola plants in the U.S. Refresco benefits from diversity on a
category level within the soft drinks industry with CSD accounting
for about 28% of total volumes in 2021, followed by waters (about
21%), juices (17%), sports and energy drinks (15%), and others.
This helps unlock organic growth opportunities in mature low-growth
markets. There is also good diversity across the customer base with
the largest customer, U.S.-based retailer Walmart, accounting for
about 11% of total revenues in 2021 and the top 10 customers for
50% of total revenues. The company boasts a strong local,
efficient, and well-invested manufacturing base with slightly over
70 manufacturing plants across North America and Europe, with no
particular plant dependence for technology. This makes Refresco
very flexible to cater to its customer needs, which are in turn
influenced by rapidly changing consumer choices. This is especially
important in the context of the general lack of own brands, as the
company does not want to compete with its customers, which limits
its pricing power, in our view. Operating efficiency is therefore a
critical factor for maintaining profitability and cash flow
generation. We consider management continuity as important because
we have observed a strong track record in the past under different
ownership structures for successful operational and financial
indicators, and consistency in communicated strategy, in line with
sector trends."

S&P said, "We anticipate constrained FOCF generation after leases
for 2022, improving from 2023 onwards, and adjusted debt leverage
to remain below 7x over the next 12-18 months. We project adjusted
debt to EBITDA of around 6.5x-6.8x in 2022, and 6.4x-6.5x in 2023.
Our projections for potentially negative FOCF after leases
incorporate a significant increase in capex to around EUR320
million in 2022 (EUR252 million) as well as working capital
investments, reflecting increased scale from recent acquisitions
and upfront investment for contracted extra volumes from existing
customers, notably on the contract manufacturing side for branded
players such as Coca-Cola and PepsiCo. We anticipate FOCF after
leases to turn positive in 2023 to around EUR50 million. In our
adjusted debt calculation, we incorporate EUR3.4 billion proceeds
from the term loan B, EUR420 million in operating leases, about
EUR15 million in local bank lines that we anticipate will remain in
the capital structure, EUR112 million of factored trade receivables
and EUR47 million of net pension liabilities. We do not net cash
against debt as we assume that management and the owners will
reinvest cash to grow the business.

"Contractual pass-through cost mechanisms as well as scale and
production efficiencies should help mitigate very high inflationary
pressures and support debt reduction over the next 12-18 months. We
forecast weakening in our adjusted EBITDA margins to around 12% in
2022 (12.6% in 2021) and 2023, reflecting in part the dilutive
impact from the recent acquisitions, notably the lower margin water
bottling business of Hansa-Heemann. We also anticipate some
volatility in margins from high operating costs (raw materials,
energy, and labor), and time lag before price and product mix
adjustments take effect. The company pushed through price increases
across end markets in the fourth quarter (Q4) 2021, and, in line
with industry practice, it anticipates more rounds of price
increases in 2022, even in Europe where contracts tend to be more
rigid and longer term. The bulk of Refresco's business, notably the
retailer side (about 63% of total volumes in 2021), incorporates
procurement of raw materials on behalf of its customers, performing
the manufacturing and distribution activities. Even though this
exposes the company to raw material price fluctuations, we think
that the company's scale and efficient manufacturing processes, as
well as its role across the value chain for customers, provides
some natural hedge for high production costs. Moreover, we
understand that the company has good raw material coverage for
2022, and generally aims to hedge 80%-100% of purchases of aluminum
(a key production component) every year.

"The exposure to the low-growth mature markets of North America and
Western Europe constrains our assessment of the business, but there
are pockets of growth opportunities. According to Euromonitor
International, the soft drinks industry in North America and
Western Europe is expected to grow by 1%-2% in volumes from
2022-2026, driven primarily by more negative demographic trends.
Refresco's geographical focus reflects the deeper private-label
penetration in its end markets as well as lower currency and
institutional framework volatility. There are pockets of growth
within the broader sector, however, with energy and sports drinks
exhibiting the best volume growth prospects, particularly in
Western Europe (4%-5% projected volume growth per annum over
2022-2026 according to Euromonitor) and to a lesser extent,
ready-to-drink tea (9% of total volumes for Refresco in 2021) and
bottled water. We see scope for Refresco to slightly outperform the
market because of continued outsourcing trends, notably on global
and emerging brands (GNEs) such as Coca-Cola that normally employ
an asset-light business model. The contracts with GNEs (about 37%
of Refresco volumes in 2021) are long-term volume-based, which
ensure good visibility for the business. The company could also
further increase its exposure to the higher-margin and growing
alcoholic beverages sector as large branded soft drinks players
also try to gain foothold in the market (such as hard seltzers).

"We anticipate a continuation of the company's existing
buy-and-build strategy under the new majority ownership with strong
focus on environment, social, and governance (ESG) initiatives. In
our forecasts for 2022, we incorporate about EUR300 million of
acquisitions, linked to the closing of Hansa-Heeman (early
February) and upcoming closing of the third Coca-Cola plant in the
U.S. At this stage, we do not anticipate further acquisitions for
2022 and factor in about EUR100 million in 2023. We have factored
in only bolt-on acquisitions in 2023 given uncertainty with regards
to size and timing of larger deals. That said, we think that larger
deals are possible, particularly in North America where Refresco
sees more dynamic opportunities. We think that the buy-and-build
growth strategy the company employed under the previous majority
ownership by PAI and BCI will continue. We also see some potential
scope for value-accretive business opportunities for Refresco
arising from cross-ownership of assets in the soft drinks industry
in the broader private equity consortium's portfolio. We understand
that the new majority owners will place strong emphasis on ESG
considerations, which we see as very important for the soft drinks
sector, reportedly the largest user of single-use plastics
globally. For example, reportedly already in 2021 Refresco's
operations in Benelux, Germany, and France are capable of producing
bottles with tethered caps, three years ahead of the new
bottle-design requirements to be introduced in the EU as part of
the Single-Use Plastics Directive. We anticipate the company to
continue to proactively invest in its manufacturing capabilities
that should position it well to cope with the increasingly
demanding operating environment of the global soft drinks
industry.

"The stable outlook indicates our view that Refresco should be able
to smoothly integrate recent acquisitions and benefit from
increased volumes business from existing customers. We also
anticipate the company to utilize its scale and efficient
production processes to offset high operating cost pressures and
potentially volatile demand. We anticipate the company to maintain
adjusted EBITDA margins close to 12% and adjusted debt to EBITDA
between 6x-7x, while benefiting from improving FOCF (after leases)
generation towards EUR50 million in the next 12-18 months.

"We could lower the ratings on Refresco if we see signs that the
company is not able to offset high operating cost pressures, or if
it engages in further acquisitions, so soon after closing
Hansa-Heemann and last Coke plant in North America. Under such
scenarios, we would see our adjusted debt to EBITDA increasing to
above 7.0x, with no prospect for a rapid improvement.

"We could also raise the ratings on Refresco if the company
outperformed our forecasts with adjusted debt leverage falling
sustainably below 5.0x and funds from operations (FFO) to debt
improved to above 12%, with a firm commitment from management and
sponsors to maintain metrics at these levels on an ongoing basis.
This could occur if the company achieved faster-than-expected cost
synergies from acquisitions, fully offsets operating cost pressures
and benefit from ongoing market growth in higher-margin beverage
categories, notably alcohol and sports and energy drinks."

Environmental, Social, And Governance

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

S&P said, "ESG factors are an overall neutral consideration in our
credit rating analysis of Refresco. Our social risk assessment for
Refresco takes into account the company's vertical integration,
which reduces its dependence on specific brands of soft drinks.
Refresco has versatile manufacturing capabilities, which allow it
to adjust to changing consumer preferences and health guidance.
While we typically view financial sponsor-ownership as negative
from a governance perspective due to the finite holding period on
investments, we do not see this as the case with Refresco, based on
our understanding of the diverse group of shareholders and the
institutional governance structure. Our more positive assessment of
Refresco's governance structure also reflects the longevity of key
senior management positions and their experience in the sector."




===============
P O R T U G A L
===============

TRANSPORTES AEREOS: Moody's Ups CFR & Sr. Unsec. Notes Rating to B3
-------------------------------------------------------------------
Moody's Investors Service has upgraded TRANSPORTES AEREOS
PORTUGUESES, S.A. (TAP SA or the company) corporate family rating
to B3 from Caa2 and probability of default rating to B3-PD from
Caa2-PD. The rating on TAP SA's EUR375 million senior unsecured
notes due 2024 has been upgraded to B3 from Caa2. Concurrently the
Baseline Credit Assessment has been upgraded to caa1 from caa3. All
ratings previously were placed on review for upgrade. This rating
action concludes the review for upgrade initiated on January 24,
2022. The outlook on all ratings has been changed to stable from
ratings under review.

RATINGS RATIONALE

The upgrade of TAP SA's CFR to B3 from Caa2 balances (i) the
materiality of the State aid provided by the Portuguese government
to TAP SA under the European Commission's Rescue & Restructuring
state aid framework and the resulting significant improvement in
TAP SA's liquidity profile, (ii) the simplification of TAP SA's
corporate structure following the capital increase of December
2021, whereby TAP S.G.P.S. has ceased to be the parent company of
TAP SA, (iii) the credible restructuring plan presented to the
European Commission for approval of the State aid and the cost
improvement measures already implemented so far, (iv) a history of
weak profitability before the pandemic and the execution risk of
the restructuring plan in a market environment that remains
volatile.

The Portuguese government will have injected EUR3.2 billion of
common equity into TAP SA since the beginning of the pandemic. This
compares to a total balance sheet volume of EUR5.2 billion and a
Moody's adjusted gross debt of EUR3.7 billion as per December 31,
2019. The equity injection also more than compensates for the
cumulative negative Moody's adjusted FCF of around EUR1.4 billion
that TAP SA has incurred since the beginning of the pandemic.
Arguably TAP SA's balance sheet was very weak pre-pandemic with a
Moody's adjusted gross leverage of around 7.0x and a debt / book
capitalization of 95%.

TAP SA's liquidity has significantly improved as a result of the
Portuguese State aid. Its cash on balance sheet will have increased
from EUR397.6 million of cash on balance sheet as per September 30,
2021 to EUR1.8 billion million as per December 2021 pro forma of
the reception of all the new money from the support package (EUR990
million capital increase remains outstanding and should be enacted
by the Portuguese parliament between June 2022 and December 2022).
This compares to a 2020 negative FCF of EUR-829 million and a 2021
negative FCF of EUR-607 million. The liquidity injection should be
sufficient to fund further modest negative free cash flows and
upcoming debt maturities over the short- to medium term, provided a
successful execution of the restructuring plan.

With the implementation of the capital increase of December 2021
the Portuguese government has become the sole and direct
shareholder of TAP SA. TAP S.G.P.S., the former parent company of
TAP SA has ceased to own a stake in TAP SA. As a result of these
changes TAP SA will be solely focused on operating its airline
activities under the TAP SA brand and under Portugalia. The drag on
earnings and cash flows from the Brazilian MRO operations will
cease. The Brazilian MRO operations have been a significant drag on
TAP SA's cash flow before the pandemic with a receivable of close
to EUR1 billion in the form of an intercompany loan building
between TAP SA and TAP S.G.P.S. While there was a receivable
impairment and a provision at the end of 2021 there will be no more
drag on TAP SA's cash flows going forward.

The restructuring plan that underpinned the State aid request and
the approval from the European Commission is credible and is a
continuation of what TAP SA has started to do following its partial
privatisation pre-pandemic. The restructuring plan is centered on
refocusing TAP SA's operations on its airline activities, reducing
its capacity albeit with an aircraft fleet strategy centered on the
rejuvenation of the fleet, reducing costs with significant
reductions achieved to date already and revenue enhancing
strategies. The key challenge for TAP SA will be to improve its
profitability either through a higher RASK or through a further
lowering of its cost base.

Despite being an unionized airline TAP SA has been able to reduce
fixed operating costs since the beginning of the pandemic. Employee
costs reduced by 11% in 2021 with the average staff reducing by 18%
y-o-y. Other cost items excluding fuel did increase less than
revenue in 2021. However European airlines are currently facing
significant cost inflation stemming from increasing labor,
maintenance and airport charges. Higher fuel prices will also
significantly dent profitability in 2022 at least. TAP SA has
already faced a 31% increase in fuel costs (higher increase than
revenue) and 6% increase in traffic operating costs in 2021.

The current rating remains constrained by a history of weak
profitability before the pandemic and the execution risk of the
restructuring plan in a market environment that remains volatile.
TAP SA had weak profitability metrics before the pandemic as
illustrated by a Moody's adjusted EBIT margins of 2% to 2.5% in
2018 and 2019. The weak profitability of TAP SA was largely linked
to a weak pricing power as its CASK was competitive against other
European network carriers. TAP SA's restructuring plan includes
measures to enhance revenue including a new ancillary revenue and a
stronger digitalisation strategy. TAP SA has also discontinued
certain unprofitable routes and launched new routes.

While the restructuring plan presented by TAP SA is credible, there
is execution risk notably on the cost side against a backdrop of an
inflationary macroeconomic environment. Moody's recognize the
progress made to date especially on the employee cost side but TAP
SA will need to sustain these savings to prove the long term
sustainability of its operations. Moody's also expect the operating
environment to remain volatile both on the demand and cost side,
which will challenge the return to profitability of TAP SA.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook assigned to the rating is underpinned by Moody's
expectation that TAP SA will continue to successfully implement its
restructuring plan to gradually reduce its cash burn and restore
its credit metrics with gross Debt/EBITDA to revert back to below
7x by 2023.

LIQUIDITY

TAP SA's liquidity pro forma of the full reception of the
Portuguese State aid will be adequate. The company is expected to
have EUR1.8 billion of cash on balance sheet at December 31, 2021
pro forma of the reception of an additional EUR990 million in State
aid through a capital increase that will be enacted by the
Portuguese government in H2 2022. This liquidity buffer should be
sufficient to cover modest operating cash burn over the next 12 to
18 months as well as capex and upcoming debt maturities of close to
EUR400 million in 2022 and 2023.

STRUCTURAL CONSIDERATIONS

Most of TAP SA's capital structure is unsecured and ranks pari
passu with the EUR375 million senior unsecured notes. There is
approximately EUR137 million of debt that is secured by certain
contractual rights.

Moody's treats trade payables as unsecured claims in line with the
EUR375 million senior unsecured notes due to the absence of an all
asset pledge security package for the secured debt instruments. In
light of the relatively low percentage of secured debt in the
capital structure, the rating of the senior unsecured notes are in
line with the CFR at B3. The recovery of the corporate family is
assumed to be 50%.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

TAP SA faces high environmental risk due to carbon transition. This
will depend on evolving decarbonization policies around the globe
and regulations which may increase operating costs for airlines.
However TAP SA has a younger and more fuel efficient fleet than
most of its European network peers.

Moody's consider social risk across the industry and for TAP SA to
be high. This reflects Moody's view of a linkage between carbon
transition and demographic and societal policies. The high score
indicates the potential for policies and/or trends that lead to
lower travel volumes or higher costs, or both. TAP SA, and some of
its European network carrier peers, also have high human capital
risk because of a history of labor disruption due to strikes of a
unionised workforce and the potential shortfall in skilled labor
(pilots and mechanics), which would negatively affect operations
and or increase costs.

The government of Portugal has taken full control of TAP SA during
the pandemic. Whilst the government of Portugal has granted TAP SA
material support during the pandemic (EUR3.2 billion State aid and
damage compensation), the ownership and governance strategy of the
government of Portugal has not been consistent over time with
strategies of privatisation followed by reinvestment as during the
pandemic.

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

Positive pressure would build on TAP SA's rating if gross
debt/EBITDA of TAP SA would move sustainably below 6.0x, EBIT
margin would trend towards 5% on a sustainable basis and TAP SA
would generate consistent positive free cash flow.

On the contrary gross debt/EBITDA of TAP SA remaining sustainably
above 7.0x beyond 2023 and persistent negative free cash flow
generation leading to a deterioration in the group's liquidity
profile would put negative pressure on the ratings. In addition
(FFO + Interest Expense) / Interest Expense remaining below 2.0x
and the failure of TAP SA to improve its EBIT margin above 2% could
also lead to negative pressure on the ratings.

The methodologies used in these ratings were Passenger Airlines
published in August 2021.



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

[*] RUSSIA: Foreign Creditors Have Few Options to Recover Money
---------------------------------------------------------------
Rodrigo Campos and Karin Strohecker at Reuters report that as
Russia teeters on the brink of a historic default, foreign
investors in the country's debt have few palatable options to
recover their money: bet on costly legal action, trust bilateral
agreements will stand, or sit on their hands.

According to Reuters, lawerys said foreign creditors would
typically try to band together to negotiate, go to court or in some
cases seek arbitration in cases of default, but Western sanctions
in the wake of Moscow's invasion of Ukraine and the peculiarities
of Russian sovereign bonds make those options hard at the moment.

Some US$40 billion of Russian sovereign debt issued in dollars and
euros is outstanding, with about half of that held by foreigners,
Reuters discloses.  Under terms of most of that debt, Moscow must
pay investors in the currency in which the bonds are denominated,
Reuters states.

Western sanctions cut off Moscow's access to some US$300 billion in
gold and foreign currency reserves it held in banks abroad, Reuters
notes.  That means Moscow must either use whatever hard currency it
has at home to pay investors, or default on its obligations,
according to Reuters.

Russia says it has the money and is willing to pay but cannot do so
because of the sanctions imposed in response to what it calls a
"special military operation" in Ukraine, Reuters discloses.  It
said it would use its own currency if it cannot pay in foreign
currency until its reserves are unfrozen, Reuters notes.

It has made a US$649 million payment that was due on April 4 on two
of its bonds in roubles rather than the dollars it was mandated to
pay under the terms of the debt, a move a derivatives watchdog
ruled a "potential failure to pay", Reuters recounts.

According to Reuters, rating agencies have said Russia may be in
default because the payment must be made in dollars or due to a
perceived lack of willingness to repay, with S&P lowering its
foreign currency ratings to "selective default".

Once a 30-day grace period to the April 4 bond payments passes in
early May, investors would have three options, said Dennis
Hranitzky, head of sovereign litigation at law firm Quinn Emanuel,
Reuters relays.

He said they could wait and see what happens, take legal action
against Russia in court, or seek arbitration under bilateral
treaties that Russia has with dozens of countries, Reuters notes.

With the situation around sanctions changing as the war rages on,
the first option is the most likely one, said Mr. Hranitzky and
other lawyers who are in touch with bondholders, according to
Reuters.




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

GIRALDA HOLDING: S&P Places 'B+' Ratings on CreditWatch Developing
------------------------------------------------------------------
S&P Global Ratings placed its 'B+' ratings on Giralda Holding
Conexion, S.L.U. (Konecta) and its senior secured EUR420 million
Term Loan B on CreditWatch with developing implications.

S&P expects to resolve the CreditWatch placement when it has
sufficient additional information on the company's operations and
capital structure post-transaction.

Konecta has announced an agreement to acquire Comdata S.p.A., an
Italy-based customer relationship management (CRM) and business
process outsourcing (BPO) player.

S&P said, "We placed our ratings on Giralda on CreditWatch with
developing implications to reflect that we could affirm, lower,
raise, or discontinue our ratings following the close of the
acquisition transaction.

"Although the exact details of the transaction are not yet
disclosed, we expect that Giralda's outstanding debt will be repaid
through new equity contributions from Konecta's current owners,
Intermediate Capital Group PLC (ICG), the founder and chairman of
Konecta (Jose María Pacheco), and Konecta and Comdata's
management, as well as new debt facilities.

"The new group will be the sixth largest player in the CRM and BPO
industry, serving more than 500 large corporates across Europe and
the U.S. with the local expertise of over 130,000 employees. We
expect the transaction to close in third-quarter 2022, subject to
customary closing conditions, including regulatory approval. The
CreditWatch placement indicates that we could affirm, lower, raise,
or discontinue our ratings on Giralda, depending on our assessment
of the effect the transaction could have on the company's financial
and business risk profiles. Key focus areas would include the pro
forma operating strategy, capital structure, and financial policy.

"We expect to resolve our CreditWatch placement when we have
sufficient additional information on the company's post-transaction
operations, capital structure, and financial policy. We could also
potentially discontinue our issuer credit rating on Giralda if all
rated debt is repaid or redeemed and Giralda no longer requires a
credit rating. We anticipate resolving the CreditWatch by
transaction close, which is expected in the third quarter of
2022."




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

ARISE AB: Egan-Jones Cuts Senior Unsecured Ratings to BB-
---------------------------------------------------------
Egan-Jones Ratings Company, on March 22, 2022, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Arise AB to BB- from B+.  

Headquartered in Sweden, Arise AB is a Sweden-based company engaged
in the renewable energy industry.




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

TRANSOCEAN LIMITED: Egan-Jones Keeps CCC- Senior Unsecured Ratings
------------------------------------------------------------------
Egan-Jones Ratings Company, on March 28, 2022, maintained its
'CCC-' foreign currency and local currency senior unsecured ratings
on debt issued by Transocean Ltd. EJR also maintained its 'C'
rating on commercial paper issued by the Company.

Headquartered in Vernier, Switzerland, Transocean Ltd. is an
American company.




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

PETKIM PETROKIMYA: S&P Assigns Prelim 'B+' ICR, Outlook Stable
--------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B+' long-term foreign
and local currency issuer credit ratings to Turkey-based
petrochemical producer Petkim Petrokimya Holding AS.

The stable outlook reflects S&P's current base-case assumption that
Petkim will generate positive FOCF by 2023, which should enable it
to gradually reduce leverage.

S&P said, "Our assessment of Petkim's weak business risk reflects
the company's strong market position in Turkey and vertical
integration into feedstock, which is partly offset by limited
geographic diversity, small operations, and high country risk.

"In our view, Petkim's business risk profile is supported by its
15% share of the Turkish market, based on production capacity,
which affords it a leading position in an attractive and expanding
petrochemicals market that is heavily dependent on imports. We
believe Petkim's strong market position, the strategic location of
its integrated assets, and its brand equity afford it a competitive
advantage in dealing proactively with threats from imports." The
company's 57-year history in Turkey is unrivaled, as is its
domestic, annual average gross production capacity of 3.6 million
metric tons, while it also benefits from long-standing
relationships with and proximity to its clients. Partly offsetting
these strengths are the limited scope and diversity of Petkim's
operations and its exposure to high country risk, resulting from
its focus on Turkey. Petkim's normalized EBITDA base of $300
million-$350 million is small compared with larger international
peers', which also benefit from diverse revenue streams and
earnings generated in multiple jurisdictions.

Petkim's strengths include a secure supply of quality naphtha
feedstock, a naphtha logistic cost advantage of approximately $24
per ton, high capacity-utilization rates at its ethylene facility,
and an ability to replace some of its heavy-naphtha feedstock with
reformate and some portion of light naphtha with liquefied
petroleum gas from the STAR refinery. Those advantages are partly
offset by Petkim's unfavorable position on the global cost curve,
which, we believe, results in the company generating average EBITDA
margins that can fluctuate. This was witnessed in 2021, when low
crude oil prices led to a narrowing of the competitive gap to
gas-based producers.

Petkim is exposed to high country risk because all of its
earnings-generating assets are in Turkey, and at a single
petrochemical complex. Although Petkim generates about 59% of its
revenue in Turkey, it has a natural foreign currency hedge due to a
favorable mix of foreign exchange in both its revenue and cost
streams. About 89% of Petkim's total production costs are
denominated in U.S. dollars (largely as a result of naphtha
feedstock), while 60% of its revenue is denominated in U.S. dollars
or euros and the remainder indexed to the U.S. dollar. This
supports profitability and Petkim's foreign-currency-denominated
capital structure, despite Turkey's high inflation rate and Turkish
lira (TRY) devaluation.

S&P said, "We view the company's diversification into ancillary
infrastructure as positive.Petkim owns a 70% stake in Petlim, the
largest container seaport in Western Turkey, which has the capacity
to handle 1.5 million 20-foot equivalent unit containers. It is
also invested in energy infrastructure via a wind farm on the
Aliaga Peninsula, which has a capacity of 51 megawatts (MW) and is
currently licensed to generate 38 MW. Petkim plans to sell
electricity to Turkey's national grid, at a guaranteed tariff.
Petlim and the wind farm contributed about $33.5 million in EBITDA
to Petkim over 2021. We believe the infrastructure and energy
investments will enhance Petkim's cash generation by providing a
stable stream of income that is uncorrelated to Petkim's core
business.

"We assess Petkim's financial risk profile as significant and
expect its credit metrics will gradually improve through 2024. Our
assessment of Petkim's financial risk profile incorporates our
estimate of an S&P Global Ratings-adjusted debt-to-EBITDA ratio
higher than 3.6x in 2022. That is based on our forecast of TRY3.8
billion-TRY4.0 billion of EBITDA over 2022. That figure is almost
half Petkim's EBITDA for 2021, reflecting our expectation of an
improving supply and demand balance, increasing feedstock costs,
and pressure on co-product prices. Our forecast for Petkim's S&P
Global Ratings-adjusted debt for the year ending Dec. 31, 2022,
includes a residual payment of $240 million to 51% shareholder
SOCAR Turkey Enerji (STEAS), relating to Petkim's acquisition of an
18% share of the STAR refinery, and $259 million drawn from $1.6
billion of uncommitted facilities available to Petkim as of Jan. 1,
2022. We expect Petkim's EBITDA will increase gradually over 2023
and 2024 toward TRY4.1 billion ($256 million)-TRY6.7 billion per
year, which should enable the company to reduce adjusted debt to
EBITDA to about 1.6x by 2024. We forecast elevated capital
expenditure (capex) of about TRY3.2 billion in 2022, up from TRY1.1
billion in 2021. This reflects an increase in the cost of scheduled
maintenance in 2022 (Petkim's turnaround takes place once in every
four years), which should fall to an average of TRY1.6
billion–TRY1.8 billion annually over 2023-2024.

"Under our base-case scenario, Petkim will generate annual FOCF of
about TRY2.5 billion in 2022 and 2023, improving to about TRY5
billion in 2024. We therefore expect negative FOCF of TRY700
million in 2022, improving to about TRY3.2 billion by 2024. That
FOCF should comfortably cover shareholder payments in 2023 and
2024, although Petkim will likely generate negative discretionary
cash flow of TRY1.4 billion over 2022.

"Our financial risk profile assessment reflects the likely
volatility in Petkim's cash flow and earnings. The petrochemical
industry's inherent margin volatility can lead to large swings in
profitability, cash flow generation, and credit metrics. As a
commodity chemicals company, we view Petkim as prone to cyclicality
fueled by changes in market supply and demand that influence the
spreads between naphtha, Petkim's major feedstock, and the price of
its products. This is common across the petrochemicals sector,
where output is typically characterized by periods of strong
expansion followed by little or no increase, since it takes time
for companies to build new plants to respond to stronger demand.
Petkim's reported EBITDA margin peaked at about 22% in 2021,
compared with 15%-16% during middle-of-cycle market conditions. We
expect Petkim's performance to normalize during 2022-2024 amid the
conflicting influences of a general improvement in supply dynamics,
improved reliability of plants, increased input costs, and greater
pressure on co-product prices.

"We believe Petkim's financial policy will remain conservative and
support its credit metrics.We expect management will maintain its
focus on derisking the balance sheet and expect the dividend payout
ratio to be significantly below the company's maximum target of 50%
of the previous year's distributable income. The company reduced
debt by $460 million in 2021 and has a track record of conservative
shareholder distributions. Also, we understand that mergers and
acquisitions are not part of Petkim's strategy. As such, we see
minimal risk of the financial policy leading to increased leverage
beyond our base case. This view is further supported by
management's leverage ratio target of 1.5x-2.0x. We note that
Petkim suspended dividends in 2019 and 2020 to preserve liquidity
and curtail excessive growth in leverage.

"We view Petkim as a strategically important subsidiary of the
State Oil Company of Azerbaijan Republic (SOCAR; BB-/Stable/--).
SOCAR is Petkim's ultimate parent and owns a 51% indirect
shareholding through STEAS. SOCAR is a 100% government-controlled,
vertically integrated oil company based in Azerbaijan. Under our
criteria for government-related entities, we rate SOCAR 'BB-',
three notches above our assessment of the company's stand-alone
credit profile (SACP) due to the likelihood of it receiving support
from the Azerbaijan government. We view our rating on SOCAR
(including the uplift for government support) as the appropriate
level for the group credit profile (GCP). We consider Petkim
strategically important to SOCAR because we view Petkim as forming
the core of the refinery and petrochemicals segment of SOCAR's
value chain, which integrates exploration and production, pipelines
and exports, logistics and trading, and oil product marketing. We
also note that SOCAR has demonstrated its commitment to Petkim
through a cross-default provision in its outstanding bonds and that
Petkim benefits from the long-term commitment of senior SOCAR
management in the development and implementation of Petkim's
strategy and financial policies. Based on our view that Petkim has
strategic importance for SOCAR but will not benefit from direct or
indirect government support, we cap the rating on Petkim at the
level of its SACP, as per our group rating methodology.

"The final ratings depend on the successful refinancing of the
outstanding $500 million 5.875% notes due 2023 by tender offer and
our receipt and satisfactory review of all final transaction
documentation. Accordingly, the preliminary rating should not be
construed as evidence of a final rating. 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. Changes of notable
importance could include, but would not be limited to, the use of
note proceeds, maturity, size, and conditions of the notes,
financial and other covenants, security, and ranking.

"The stable outlook reflects our current base-case assumption that
Petkim will generate positive FOCF by 2023, which should enable it
to gradually reduce leverage. This is because, although Petkim
operates in an environment characterized by high cost-inflation and
foreign-exchange volatility, its 100% hard currency revenue should
support EBITDA and naturally hedge its hard-currency debt. We see a
ratio of weighted S&P Global Ratings-adjusted debt to EBITDA below
3.0x as commensurate with the preliminary rating.

"We could downgrade Petkim if its weighted S&P Global
Ratings-adjusted debt to EBITDA increases beyond 3.0x without the
prospect of a swift recovery. This could result from a major
contraction in petrochemicals margins, higher capex and dividend
payments than we anticipate, or a large debt-financed project.

"We could also lower our rating on Petkim if we downgraded Turkey,
and the company failed to pass our quantitative and qualitative
sovereign stress tests.

"We do not expect to raise the rating in the next 12 months because
of our 'B+' transfer and convertibility assessment (T&C) on Turkey,
where the company has all of its earnings-generating assets. These
factors constrain any increase in our rating above the T&C
assessment. However, we could raise our rating if Petkim achieves
supportive credit metrics, such as weighted S&P Global
Ratings-adjusted debt to EBITDA sustainably below 2.0x, and passes
our sovereign stress tests, with our T&C Assessment being at least
'BB-'."

Environmental, Social, And Governance

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

S&P said, "Environmental factors are a moderately negative
consideration, given that the energy transition and
pollution--plastic pollution and carbon-dioxide (CO2)
emissions--are key risks for petrochemicals producers, and we
consider Petkim's exposure to be in line with that of the industry.
However, we note that Petkim is taking steps to reduce its
environmental footprint. The company has implemented energy
efficiency and electrification initiatives to decrease CO2 emission
by 1% per annum and carbon intensity by 1% in 2021-2025, and
achieve net-zero emissions by 2050. In 2021, energy efficiency and
electrification initiatives resulted in a 4.7% reduction of carbon
intensity. Governance factors are also a moderately negative
consideration, in view of elevated country-related governance risks
in Turkey, where Petkim's assets are located."




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

BULB ENERGY: Multiple Energy Firms Express Interest in Customers
----------------------------------------------------------------
Nicholas Earl at City A.M. reports that more than two energy firms
remain interested in Bulb Energy (Bulb), but they are not prepared
to commit to a full takeover bid.

According to City A.M., sources have told the newspaper they would
consider taking on some of Bulb's 1.7 million customers if they are
eventually offloaded in segments, rather than altogether in one
transaction.

British Gas owner Centrica and UAE-based energy firm Masdar were
the only two suppliers to have put forward non-binding bids when
the first round of the process closed earlier this month, as
reported first in The Sunday Times, City A.M.  notes.

However, it remains unclear if either bid will be accepted, with a
decision not expected until June, City A.M. states.

While Masdar is set to make a full offer for Bulb, Centrica only
wants Bulb's customers and has asked for taxpayer support to buy
the power required to heat customer homes, City A.M. discloses.

EDF Energy has consistently been linked with Bulb since it fell
into special administration last November and Greg Jackson, chief
executive of Octopus Energy Group (Octopus), did not rule out
making a play for its customers when interviewed by the newspaper
last month, City A.M. recounts.

He told City A.M. that it was critically important any deal got the
best value for taxpayers, and that Bulb's customers were well
looked after.

Centrica declined to comment on the reports linking the firm to
Bulb -- but has scooped up nearly three-quarters of a million
domestic consumers through the supplier of last resort process,
making it one of most active firms during the crisis, City A.M.
relays.

Masdar, City A.M. says, also refused to confirm its was interested
in buying Bulb -- which it described as "market speculation" -- but
it did reveal the company was interested in boosting its investment
footprint in the UK.

Details of the size of either bid remain elusive, although both
firms expressed interest in Bulb prior to its collapse in November,
when US investment bank Lazard scrambled to secure buyers in a last
ditch bid over the autumn, City A.M. notes.

Bulb is the UK's seventh biggest energy supplier, and became the
first firm to drop into de-facto nationalisation during the
escalating energy crisis, City A.M. recounts.

The supplier was placed on life support over the winter, propped up
through regular transfusions of public money -- which Sky News has
estimated could reach GBP3 billion, the biggest state bailout since
RBS, City A.M. discloses.


LIBERTY GLOBAL: Egan-Jones Cuts Senior Unsecured Ratings to BB
--------------------------------------------------------------
Egan-Jones Ratings Company, on March 23, 2022, downgraded the
foreign currency and local currency senior unsecured ratings on
debt issued by Liberty Global plc to BB from B+.  

Headquartered in London, United Kingdom, Liberty Global plc owns
interests in broadband, distribution, and content companies
operating outside the continental United States, principally in
Europe.


SECOND HOME: Silva Seeks Millions of Pounds to Avert Collapse
-------------------------------------------------------------
Mark Kleinman at Sky News reports that a former aide to David
Cameron is racing to raise millions of pounds to avert the collapse
of Second Home, his shared-office provider.

Sky News has learnt that Rohan Silva, who launched the business in
2014 and has raised funds from a string of well-known business
figures, has notified investors that it needs GBP6 million of new
funding in the coming days to remain solvent.

Second Home is one of a multitude of ventures which have hoped to
take advantage of post-pandemic shifts in labour markets, with a
greater focus for many major employers on hybrid working patterns.

The company, which operates four sites in London and one each in
Lisbon and Hollywood, has hired FRP Advisory, the restructuring and
insolvency firm, to advise it on talks about its future, Sky News
relates.

If it collapsed into administration, millions of pounds of
taxpayers' money would be put at risk following the receipt of
funding from the Future Fund vehicle established by Rishi Sunak,
the chancellor, during the early phase of the COVID-19 crisis.

Mr. Silva is understood to have outlined a number of potential
options to Second Home shareholders in recent days, including an
outright sale to the family office of Riaz Valani, a Silicon Valley
billionaire who was an early investor in Juul, the
e-cigarette manufacturer, Sky News notes.

According to Sky News, under plans said to have been proposed by
Mr. Valani's vehicle, Global Asset Capital, he would provide tens
of millions of dollars for Second Home to acquire future sites.

Another option would involve Lord O'Neill, the former Goldman Sachs
economist and ex-Treasury minister, providing one-third of a GBP6
million bridge funding round that valued Second Home at about GBP20
million, Sky News states.

Mr. Silva is understood to have told the company's investors that
falling into administration would be the worst outcome for them,
insisting that its performance during the last 12 months had
underlined its post-pandemic prospects, Sky News states.

The business is loss-making, but some of its sites are profitable
on a standalone basis, he is understood to have said, Sky News
notes.

According to Sky News, one insider said that Second Home was
expected to decide on which -- if either -- of the funding
proposals to accept by the end of this week.


VECTOR WEALTH: Enters Administration, Faces FSCS Probe
------------------------------------------------------
Sonia Rach at FT Adviser reports that investment firm Vector Wealth
has entered into administration and is currently being investigated
by the Financial Services Compensation Scheme on the investment
services it provided.

Vector Wealth Ltd is a firm authorised by the Financial Conduct
Authority that issued a mini-bond to investors called the "absolute
return forex bond".

According to an update by the FCA, the marketing material for this
mini-bond stated that the proceeds of the mini-bond would be used
to generate returns for investors through trading foreign exchange,
FT Adviser notes.

Vector Wealth told the FCA that all purchasers of the mini-bond
were either high net worth or self-certified sophisticated
investors, FT Adviser discloses.

The FCA believes that there are approximately 40 customers who have
invested in Vector Wealth bonds, totalling approximately GBP4
million, according to FT Adviser.

The director of Vector Wealth made an application to the High Court
of Justice on April 11 to seek an order that the company be placed
into administration, FT Adviser relates.

On April 22, James Alexander Snowdon and Michael Colin John
Sanders, both of MHA MacIntyre Hudson, were appointed as joint
administrators of Vector Wealth, FT Adviser states.

This came after the FCA imposed a number of requirements against
Vector Wealth in February which included asset restriction and the
ceasing of all regulated activity, FT Adviser recounts.

However although Vector Wealth was regulated, the FCA said it was
only authorised to conduct some investment related activity,
according to FT Adviser.

"The issuing of Vector Wealth's mini-bond was not a regulated
activity," it said.  "This means that FSCS protection may not
apply."

The FSCS said it is unlikely to be able to pay compensation based
purely on Vector Wealth's failure to repay the bonds, as issuing
bonds is not normally a regulated activity, FT Adviser relates.  

The FCA set out the steps Vector Wealth customers can take and
advice on how to protect against scams by fraudsters claiming to
act on behalf of the administrators, according to FT Adviser.

The FCA said the administrators will be writing to customers of
Vector Wealth on what this means and the action they should take,
FT Adviser notes.


VENATOR MATERIALS: Moody's Affirms 'B2' CFR, Outlook Now Stable
---------------------------------------------------------------
Moody's Investors Service affirmed the Corporate Family Rating of
Venator Materials plc at B2. Other ratings affirmed include the
B2-PD and senior secured TLB at B1; the senior secured notes at B1,
and the ratings on the senior unsecured notes at Caa1. The
affirmations reflect the expectations that higher TiO2 prices and
sustained demand will begin to offset margin pressure from higher
raw material, energy and shipping costs and support higher earnings
and cash flow going forward. Free cash flow is expected to improve
but is likely to remain modestly negative this year. Beyond 2022,
the expected tapering of cash usage for restructuring, Pori work,
pensions and other cash costs, against the backdrop of higher
expected EBITDA should support the generation of positive free cash
flow. The rating outlook was changed to stable from negative.

"Venator needs to reduce debt before the next industry downturn.
Fortunately, continued firm demand against the backdrop of limited
new global supply additions in TiO2 support a multi-year favorable
cyclical outlook at this time, assuming the avoidance of a serious
global recession" according to Joseph Princiotta, Moody's SVP and
lead analyst for Venator. "Moreover, cash usage for restructuring
activities, pension payments, and Pori site work are expected to
decline next year, supporting cash flow generation, which, together
with a recent trial outcome and the possibility for asset sales
offer opportunities to reduce debt and bolster the balance sheet
ahead of the next trough." Princiotta added.

Affirmations:

Issuer: Venator Materials plc

Corporate Family Rating, Affirmed B2

Probability of Default Rating, Affirmed B2-PD

Issuer: Venator Materials LLC

Gtd Senior Secured Term Loan B, Affirmed B1 (LGD3)

Gtd.Senior Secured Global Notes, Affirmed B1 (LGD3)

Gtd Senior Unsecured Notes, Affirmed Caa1 (LGD5)

Outlook Actions:

Issuer: Venator Materials LLC

Outlook, Changed To Stable From Negative

Issuer: Venator Materials plc

Outlook, Changed To Stable From Negative

RATINGS RATIONALE

Venator's credit profile benefits from its market position among
the world's leading titanium dioxide producers, strong presence in
specialty products, and modest earnings diversity from the
Performance Additives segment. Prospective benefits from a business
improvement program and adequate liquidity also support its current
credit position.

As evidenced over the last few years, the rating incorporates
expectations for significant fluctuations in market conditions and
key credit metrics in this cyclical industry. Moody's has a
favorable outlook for TiO2 markets over the next two years and
expects strong or sustained demand against the backdrop of modest
global supply additions to underpin favorable fundamentals allowing
price support or increases through the year and in all major
regions.

Leverage has been stressed for the rating, with adjusted gross
debt/EBITDA peaking at roughly 9x in 2020 when covid weighed on
markets and the issuance of $225 million in notes increased
leverage, but also provided additional liquidity. Net leverage was
roughly a turn and a half lower at 7.6x. Gross and net debt to
EBITDA improved to 6.9 and 6.0x, respectively, at December 31, 2021
and are expected to improve further in 2022 to 5.0x and 4.5x as
higher average yoy TiO2 prices are expected to offset raw material,
energy and shipping cost inflation. Moody's expects higher TiO2
prices and EBITDA this year will reduce negative free cash flow,
which is likely to turn positive next year as certain cash usage,
wind down.

ESG Considerations

The action is not directly driven by ESG factors. Waste and
pollution risks are considered very high for commodity chemical
companies, and that includes TiO2 producers, as environmental
exposure and costs can be meaningful and can have economic and
credit and implications. Roughly two-thirds of Venator's TiO2
production use the sulfate process; one-third uses the chloride
route. The chloride process is continuous, has lower energy
requirements, produces less waste and is less environmentally
harmful than the sulfate-based production process, although both
have significant water usage, environmental exposure and GHG
emissions.

Venator expects to incur additional environmental costs through
2024 related to the remediation and closure of the Pori facility.
The company has environmental reserves of $10 million and $8
million as of December 31, 2021 and YE 2020, respectively, relating
to pending environmental cleanup, site reclamation, closure costs,
and known penalties. In addition, the company has capital
expenditures for Environmental, Health and Safety (EHS) matters of
$20 million and $13 million, respectively.

Social risks for Health & Safety are considered high for
commodities in general and TiO2 specifically. Responsible
Production risks are also high, reflecting in part the EU
commission's act to change the classification of TiO2 to a Category
2 Carcinogen, which became effective in October 2021. Tightening
regulations over chemical products, and increased public awareness
can increase the industry's operating costs. Governance issues and
risks are considered high due to balance sheet leverage, while
other G-risks are moderate, despite 39% ownership by SK Capital, as
Venator adheres to public company financial reporting and supported
by good communication and financial policies in-line with the
ratings category.

Liquidity

The SGL-2 Speculative Grade Liquidity Rating ("SGL") indicates good
current liquidity to support operations in the near-term with $156
million in cash and about $201 million in revolver availability as
of December 31, 2021. Moody's estimates that free cash flow will be
negative again this year, albeit modestly, but is likely to switch
to positive next year on rising TiO2 prices and declining cash
usage in the targeted 'buckets' identified above. Venator has
access to an $330 million asset-based revolving credit facility,
which matures in October 2026. The borrowing base was reported to
be approximately $278 million as of December 31, 2021, less $32
million letters of credit issued and outstanding, as well as a
portion of the borrowing base reserved for $45 million of letters
of credit available to be issued by one of the lenders; resulting
in revolver availability of $201 million.

The credit agreement contains a springing fixed charge coverage
ratio test that does not become effective unless excess
availability falls below 10% of the facility. Moody's does not
expect the covenants will be tested in the near-term and believe
that the covenant lite structure is well-aligned with the
cyclicality of the company's business over a longer horizon. An
asset sale, as discussed above, would help improve liquidity.

Rating outlook

The stable outlook incorporates expectations for extended favorable
conditions in TiO2 markets as well as declining cash usage for
restructuring, pensions and Pori remediation and closure, allowing
for return to positive free cash flow and debt reduction ahead of
the next industry downcycle. Failure to restore positive free cash
flow during these favorable market conditions and begin to reduce
debt will pressure the rating and could result in a downgrade.

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

Moody's is unlikely to consider an upgrade until balance sheet debt
is reduced and positive free cash flow is comfortably restored and
robust enough to allow further debt reduction. If debt were to be
meaningfully reduced below $600 million ahead of the next down
cycle, Moody's would consider an upgrade.

Evidence of the cycle weakening in TiO2 before the company
meaningfully reduces debt would likely trigger consideration for a
ratings downgrade. Also, failure to maintain gross adjusted
leverage below 5.5x, or liquidity falling below $200 million before
positive free cash flow is restored could also have negative rating
implications.

Headquartered in the United Kingdom, Venator Materials plc is the
world's fourth-largest producer of titanium dioxide pigments used
in paint, paper, and plastics, and a producer of performance
additives for a variety of end markets. Venator was created through
an IPO transaction from Huntsman Corporation in 2017. Venator
generated approximately $2.2 billion in revenues for the twelve
months ended December 31, 2021.

The principal methodology used in these ratings was Chemical
Industry published in March 2019.

WATT BROTHERS: Easdale Bros Unveil Dev't. Plans for Glasgow Store
-----------------------------------------------------------------
Jody Harrison at The Herald reports that millionaire brothers Sandy
and James Easdale have unveiled plans for a GBP20 million
development of an old Glasgow department store, which they hope to
turn into a boutique hotel.

According to The Herald, the brothers, the owners of McGills Buses,
have submitted plans to Glasgow City Council for the redevelopment
of the Watt Brothers store, which they said could be a "stepping
stone" towards restoring Glasgow as a "great shopping and leisure
centre".

The former shop, on the corner of Bath Street and Sauchiehall
Street, has been empty since Watt Brothers went into administration
in 2019, The Herald discloses.

Now, after reaching a deal with administrators at KPMG, the two
brothers hope to turn the art-deco style building into a boutique
hotel, complete with luxury residences and a shopping complex, The
Herald relates.



WELLESLEY: Satisfies all CVA Payments in Full to Investors
----------------------------------------------------------
Michael Lloyd at Peer2Peer Finance News reports that Wellesley has
now satisfied all of its company voluntary arrangement (CVA)
payments to investors and has made the vast majority of payments
from its loanbook sale.

The alternative property lender announced in September 2020 that it
was restructuring the company, blaming liquidity issues amid the
Covid crisis and a challenging regulatory environment, Peer2Peer
Finance News relates.  Its creditors backed its proposal to enter
into a CVA, Peer2Peer Finance News notes.

Andrew Turnbull, director and co-founder of Wellesley, told
Peer2Peer Finance News that the platform has now satisfied its CVA
payments in full, repaid 90.2% of the total payments from its
loanbook sale and together has paid 92.6% of payments from its
loanbook sale and CVA payments in total.

He also revealed that Wellesley is working towards the repayment of
two smaller loans which will meet the final repayment and the
company will distribute proceeds as soon as it can.

According to Peer2Peer Finance News, in an email to lenders,
Wellesley said that the remaining loanbook payment is from delayed
loans from Cloverleaf 376 that are separate to the CVA payments.

This is the final 20% of investors' December 2021 payment from
Cloverleaf, following the payments of 25% and 55% in December last
year and March 2022, respectively, Peer2Peer Finance News
discloses.

The platform said the Cloverleaf payment should be paid over the
coming weeks, as loans are repaid to the firm, Peer2Peer Finance
News notes.

Wellesley launched as a peer-to-peer lending platform in 2013 and
later moved into mini-bonds before shifting to ISA-eligible listed
bonds, Peer2Peer Finance News recounts.

Following the CVA, Wellesley plans to conduct unregulated
syndicated property lending with institutional funding, Peer2Peer
Finance News states.



                           *********


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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000.


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