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

                          E U R O P E

          Thursday, April 28, 2022, Vol. 23, No. 79

                           Headlines



B O S N I A   A N D   H E R Z E G O V I N A

NOVA TVORNICA: IRBRS to Sell Business; May 31 Bid Deadline Set


G E R M A N Y

DEUTSCHE TELEKOM: Egan-Jones Hikes Senior Unsecured Ratings to BB
KLEOPATRA HOLDINGS: S&P Alters Outlook to Neg., Affirms 'B' ICR


I T A L Y

COMDATA SPA: S&P Places 'CCC+' ICR on CreditWatch Positive


L U X E M B O U R G

CORESTATE CAPITAL: S&P Downgrades Long-Term ICR to 'CCC'


N E T H E R L A N D S

ALCOA NEDERLAND: Moody's Puts 'Ba1' CFR Under Review for Upgrade


S P A I N

AUTOPISTA DEL SOL: S&P Alters Outlook to Pos., Affirms 'BB+' Rating


U N I T E D   K I N G D O M

ATLANTICA SUSTAINABLE: Egan-Jones Keeps B- Sr. Unsecured Ratings
DRAX GROUP: S&P Affirms 'BB+' Long-Term ICR, Outlook Stable
HAMMERSON PLC: Egan-Jones Keeps BB Senior Unsecured Ratings
INTERNATIONAL GAME: Egan-Jones Cuts B- Senior Unsecured Ratings
JC ROOK: Former Staff Owed Some GBP201,600, Documents Show

LIBERTY STEEL: Serious Fraud Office Raids Offices
NEXT PLC: Egan-Jones Keeps BB+ Senior Unsecured Ratings
QUICKQUID: 78,500 Borrowers to Get Refunds of Interest, Fees
SPIRIT ISSUER: Moody's Ups GBP161.2MM Cl. A5 Bonds Rating from Ba1
WELCOME TO YORKSHIRE: Mulled Entering Administration Months Ago


                           - - - - -


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B O S N I A   A N D   H E R Z E G O V I N A
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NOVA TVORNICA: IRBRS to Sell Business; May 31 Bid Deadline Set
--------------------------------------------------------------
Dragana Petrushevska at SeeNews reports that the state-owned
Investment-Development Bank of Bosnia's Serb Republic, IRBRS, said
it is looking to sell oil and air filter producer Nova Tvornica
Precistaca.

IRBRS offers for sale 7,994,975 shares of Nova Tvornica,
representing 100% of the company's share capital, with a total
nominal value of BAM7.99 million (US$4.34 million/EUR4.09 million),
it said in a bourse filing on April 26, SeeNews relates.

Potential buyers can submit their bids by May 31, SeeNews
discloses.

According to its 2022 privatisation plan, the bank plans to sell
Nova Tvornica, Novi Mermer and car parts manufacturer Novi
Autodijelovi, which were established by the bank using assets
acquired in bankruptcy proceedings, SeeNews states.  The bank also
plans to sell stakes in six other local companies this year under
the plan, SeeNews notes.

Nova Tvornica Precistaca is located in Rogatica, in the Serb
Republic, which is one of two autonomous entities that form Bosnia
and Herzegovina. The other one is the Federation.




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G E R M A N Y
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DEUTSCHE TELEKOM: Egan-Jones Hikes Senior Unsecured Ratings to BB
-----------------------------------------------------------------
Egan-Jones Ratings Company on April 5, 2022, upgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by Deutsche Telekom AG to BB from BBB.

Headquartered in Bonn, Germany, Deutsche Telekom AG offers
telecommunications services.


KLEOPATRA HOLDINGS: S&P Alters Outlook to Neg., Affirms 'B' ICR
---------------------------------------------------------------
S&P Global Ratings revised its outlook on Kleopatra Holdings 2
S.C.A. (KH2) to negative from stable. At the same time, S&P
affirmed its 'B' long-term issuer credit ratings on the company.
S&P also affirmed its 'B' long-term issue rating on the company's
senior secured debt and the 'CCC+' rating on the senior unsecured
instruments.

The negative outlook on KH2 and its subsidiaries reflects the risk
that the company's profitability will not recover sufficiently over
the next 12 months, leading to continued elevated leverage.

The outlook revision to negative reflects heightened uncertainty
around the speed of deleveraging. Because of KH2's long-term
maturity structure, this includes mainly the risks associated with
future weakening of the company's profitability. Profitability
could suffer through limited pass-through of volatile raw materials
prices and other input costs, as well as further softening of
volumes in the food packaging division, as home demand declines
because pandemic-related restrictions are falling away.

KH2's profitability suffered in 2021 from the lag of rapidly
increasing raw material prices, suppressing margins. S&P Global
Ratings-adjusted EBITDA was only EUR210 million (EUR262 million in
2020), with the adjusted EBITDA margin falling to 11% from 15% in
2020.

S&P said, "We expect profitability will rebound.After the set-back
in 2021, our revised base case is that KH2 will generate S&P Global
Ratings-adjusted EBITDA of EUR250 million-EUR270 million in 2022,
and EUR280 million-EUR320 million in 2023. The company should
gradually restore its EBITDA margin above 13% since we expect raw
material prices will stabilize and the company will reap some of
the benefits of its ongoing restructuring (restructuring cost in
2022 of about EUR15 million) in addition to its normalized
cost/price spread established at the end of 2021." According to
management, the improved raw material price pass-through conditions
via amended contracts and negotiations with customers will shorten
lag times and therefore dampen the sensitivity to raw material
market volatility.

Sensitivity to raw materials prices will persist. With improved
lag-times still on average about 70 days of cost pass-through and
an indexed to un-indexed price-contracts split of about 30%/70%,
further volatility of raw material prices could have considerable
impacts on EBITDA margins and therefore could further postpone
S&P's forecast deleveraging path. Raw material costs made up about
56% of net sales in 2021. S&P's view of a one-in-three possibility
for another year with heightened credit metrics is reflected in our
revision of the outlook to negative.

KH2's debt is high for its current profitability, but strong cash
generation and liquidity buffer support the rating. S&P said, "With
adjusted debt reaching EUR2.3 billion, including lease liabilities
(EUR81 million) and sold receivables (EUR259 million), the company
reported debt to EBITDA of 11.0x at the end of 2021, which compares
with our leverage guidance for the rating of 7.5x. We believe that
absolute debt is high for current profitability but should be more
manageable as profitability rebounds and S&P Global
Ratings-adjusted EBITDA approaches our medium-term forecast of
about EUR300 million, somewhat supported by some normalization of
our factoring adjustment as raw material prices start to decline
over 2023. We expect the company will continue deleveraging and
report debt to EBITDA of slightly above 9.0x in 2022 and about 7.5x
by 2023. Further supportive elements for the rating include: our
expectations of S&P Global Ratings-adjusted EBITDA interest
coverage in excess of 2.0x over the forecast horizon, substantial
FOCF of about EUR40 million-EUR60 million in 2022 and in excess of
EUR90 million in 2023, and a healthy liquidity position."

The negative outlook reflects the potential for a downgrade since
KH2's already high debt leverage, with debt to EBITDA at 11.0x in
2021, could stay elevated for longer than we initially expected,
due to weaker-than-expected profitability over the next 12 months.

S&P said, "Under our new base case, we forecast about EUR250
million-EUR270 million of S&P Global Ratings-adjusted EBITDA in
2022, and EUR280 million-EUR320 million in 2023. This could lead to
a stabilization of the company's leverage around our communicated
rating trigger of 7.5x adjusted debt to EBITDA, while we forecast
S&P Global Ratings-adjusted EBITDA over cash interest will remain
above 2.0x and FOCF generation comfortably positive."

Downside scenario

S&P could take a negative rating action if:

-- KH2's adjusted debt to EBITDA did not improve toward 7.5x over
the next two years;

-- The company reported weak FOCF or FFO cash interest coverage
below 2.0x.

-- S&P's assessment of KH2's financial policy were to indicate an
elevated risk of leverage increasing beyond its base-case forecast,
for example due to large debt-funded acquisitions or shareholder
distributions.

Upside scenario

S&P could revise the outlook to stable if debt to EBITDA improved
toward 7.5x on a sustainable basis. This could be achieved if
adjusted EBITDA margins exceeded 12%, with strong FOCF generation.

Environmental, Social, And Governance

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

S&P said, "Environmental factors are a moderately negative
consideration in our credit rating analysis of KH2. Like plastic
packaging peers, its environmental risk is higher than companies
that use more sustainable materials. Risks include waste concerns,
changing consumer preferences, and tightening recyclability
regulations on plastic packaging. As a producer of single-use food
plastic packaging, KH2 is exposed to these risks. We note, however,
that it is developing more sustainable packaging and aims to make
all its products 100% recyclable by end-2025, while increasing
energy efficiency by 17% compared with 2019. Although we expect a
material reduction in plastic packaging usage, it will remain
indispensable for certain sectors such as health care (52% of KH2's
2021 revenue) given its unique properties.

"Governance factors are also a moderately negative consideration.
We view financial-sponsor-owned companies with highly leveraged
financial risk profiles, such as KH2, as demonstrating corporate
decision-making that prioritizes the interests of the controlling
owners, typically with finite holding periods and a focus on
maximizing shareholder returns."




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I T A L Y
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COMDATA SPA: S&P Places 'CCC+' ICR on CreditWatch Positive
----------------------------------------------------------
S&P Global Ratings placed its 'CCC+' issuer credit rating on
Italy-based customer management outsourcer Comdata SpA and its
'CCC+' issue-level rating on its senior secured debt on CreditWatch
with positive implications.

S&P said, "The CreditWatch placement reflects our expectations of a
stronger liquidity position and improved credit metrics for Comdata
as a result of this transaction. We expect to resolve the
CreditWatch placement once the merger is completed.

"We placed our ratings on Comdata on CreditWatch with positive
implications to reflect that we could raise our ratings following
the close of this transaction. Although the exact details of the
transaction are not yet disclosed, we expect that Comdata will
repay its outstanding debt through a combination of a new equity
contribution from Konecta's current owners ICG, equity rolled over
by management, and new debt facilities."

The new group will be the sixth-largest player in the customer
relationship management and business process outsourcing industry,
serving more than 500 large corporates across Europe and America
with the local expertise of over 130,000 employees.

The CreditWatch placement reflects S&P's expectations of a stronger
liquidity position and improved credit metrics for Comdata as a
result of this transaction. It expects to resolve the CreditWatch
placement once the merger is completed.




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L U X E M B O U R G
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CORESTATE CAPITAL: S&P Downgrades Long-Term ICR to 'CCC'
--------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Luxembourg-based real estate asset manager Corestate Capital
Holding S.A. and its issue rating on its senior debt to 'CCC' from
'B-', and removed the ratings from CreditWatch, where they were
placed with negative implications Nov. 15, 2021.

The negative outlook reflects the potential for a further downgrade
within the next 12 months depending on the company's progress in
generating cash and finding a refinancing solution.

The publication of the audited annual report alleviates some
near-term risks but points to further delays in cash accumulation.
As Corestate's management indicated about four weeks ago when it
delayed publication of the annual report, the report included a
material goodwill impairment due to lower earnings prospects for
subsidiary HFS. However, the risk provisions of EUR46 million for
bridge loans came as a further negative surprise. While some of
that might be recovered, it indicates lower and more uncertain cash
buildup by November 2022, by which Corestate needs to repay or
refinance its maturing bond.

The likelihood of debt restructuring is increasing, absent
unforeseen positive developments. This is in view of the company's
total financial liabilities of EUR622 million, including bond
maturities of EUR191 million in November 2022 and EUR298 million in
April 2023, and uncertain cash collections for the rest of 2022.
Considering the authorized capital of 30 million shares and recent
changes in the shareholder structure, S&P thinks a potential
capital injection could support the liquidity profile and a
refinancing later in the year, although this remains uncertain and
would be a positive development.

Corestate surprised with repeat delays in reducing debt over 2021
and S&P considers cash generation over 2022 with some uncertainty.
This makes it unclear from our perspective if Corestate could
actually repay its November 2022 bond with cash.

Principal liquidity sources for the 12 months from Jan. 1, 2022,
include:

-- Unrestricted cash balance of EUR63 million as of Dec. 31,
2021.

-- Cash funds from operations of around EUR40 million.

-- EUR30 million-EUR40 million of net cash proceeds from the sale
of the Gießen shopping center.

-- EUR50 million from the reduction in bridge loans.

-- EUR20 million from the disposal of associates and joint
ventures.

-- EUR20 million from the closure of the Opportunity Fund and
maturing co-investments in other funds.

-- Proceeds from sale of discontinued operations (Capera and
CRM).

Principal liquidity uses for the same period include:

-- Full repayment of EUR191 million of debt maturing in November
2022.

-- Around EUR40 million of additional working capital requirements
that include outflows for warehousing activities.

-- Low capital expenditure of EUR1 million-EUR2 million.

-- S&P also notes the additional bond maturity in April 2023 of
EUR298 million.

S&P said, "The negative outlook reflects the possibility that we
could lower our rating within the next 12 months if liquidity
accumulation further underperforms our expectations or a distressed
debt restructuring became more likely. Notably, we expect the
coming six months to provide critical insight as to the company's
long-term viability.

"We could lower our rating if we observe further delays in cash
accumulation or developments that make a refinancing even less
likely. Also, any indications that investors might not receive debt
repayment on time and in full would lead to a lower rating.

"We could revise the outlook to stable if we observe material
progress in refinancing without bondholders bearing losses. This
could be supported by stronger-than-expected cash conversion of
assets and an equity injection."

Company Description

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




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ALCOA NEDERLAND: Moody's Puts 'Ba1' CFR Under Review for Upgrade
----------------------------------------------------------------
Moody's Investors Service placed Alcoa Nederland Holding B.V.'s
("ANHBV") Ba1 Corporate Family Rating, Ba1-PD Probability of
Default Rating and Ba1 rating of senior unsecured notes under
review for upgrade. The outlook has changed to rating under review
from stable.

On Review for Possible Upgrade:

Issuer: Alcoa Nederland Holding B.V.

Probability of Default Rating, Placed on Review for Possible
Upgrade, currently Ba1-PD

Corporate Family Rating, Placed on Review for Possible Upgrade,
currently Ba1

Senior Unsecured Regular Bond/Debenture (Foreign Currency), Placed
on Review for Possible Upgrade, currently Ba1 (LGD4)

Outlook Actions:

Issuer: Alcoa Nederland Holding B.V.

Outlook, Changed To Rating Under Review From Stable

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

The review action recognizes the improvement in ANHBV's ("Alcoa")
credit profile driven by 1) the successful implementation of its
strategic portfolio optimization program that enhanced the
competitiveness of its refining and smelting system and improved
the overall business resilience to cyclical downturns; 2) the
balance sheet/pension liability management actions in 2021 taken by
the company to reduce leverage, including the $1.5 billion
annuitization and $500 million prefunding of U.S. gross pension
liability and 3) material non-core asset sales. These actions along
with historically high aluminum prices have enabled Alcoa to
achieve investment grade credit metrics. Alcoa's debt/EBITDA was
0.8x as of December 31, 2021, down significantly from FYE 2020's
3.9x via a combination of increased EBITDA and about $1.9 million
reduction in Moody's-adjusted debt.

The ratings review will examine Alcoa's ability to contain the
significant aluminum industry cost inflation driven by rising
prices for energy and raw materials, and logistical challenges. The
review will focus on Alcoa's prospective ability to generate strong
earnings and positive free cash at various aluminum and alumina
prices, and its potential to sustain leverage and other debt
protection metrics at levels commensurate with the investment grade
credit profile in a less favorable aluminum price environment.
Moody's will also consider the company's long-term operating
strategy and financial policy.

Alcoa has a very good liquidity supported by cash position of $1.55
billion and $1.5 billion secured revolving credit facility (RCF -
unrated) at Alcoa Nederland, guaranteed by Alcoa (parent) and
maturing in November 2023. The revolver had about $1.5 billion
availability at March 31, 2021, net of letters of credit. There are
no material maturities until the revolver expires in November
2023.

Alcoa Nederland is a wholly owned subsidiary of Alcoa Corporation.
Headquartered in Pittsburgh, PA, Alcoa holds the bauxite, alumina,
aluminum, cast products and energy business. Alcoa's bauxite and
alumina business is conducted through its AWAC joint venture with
Alumina Ltd (60% Alcoa/40% Alumina Limited). Revenues for the
twelve months ended December 31, 2021 were about $12.2 billion.

The principal methodology used in these ratings was Mining
published in October 2021.



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S P A I N
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AUTOPISTA DEL SOL: S&P Alters Outlook to Pos., Affirms 'BB+' Rating
-------------------------------------------------------------------
S&P Global Ratings revised its outlook to positive from stable and
affirmed its 'BB+' long-term issue rating on Autopista del Sol
Concesionaria Espanola, S.A. (AUSOL or the project).

The positive outlook reflects that S&P expects AUSOL's credit
metrics to keep improving as the pace of traffic recovery remains
strong.

Autopista del Sol Concesionaria Espanola, S.A., a limited-purpose
entity, issued a EUR467 million fixed-rate senior secured bond and
EUR40 million in senior secured notes, both due Dec. 30, 2045.
AUSOL used the proceeds to refinance the debt incurred for the
construction, operation, and maintenance of a 96-kilometer (km)
section of tolled motorway in southern Spain between Málaga and
Guadiaro in the Andalucia region. Part of the toll road has been
operational since 1999 (the 75km section known as AUSOL I) and part
since 2002 (the 21km section known as AUSOL II). AUSOL services its
debt via the toll charged to its road users.

Road traffic is recovering and should receive a boost in summer,
with severe mobility restrictions being phased out. Restrictions to
mobility in Spain eased over the first quarter of 2022, spurring
strong recovery in travel. This adds to good prospects for AUSOL's
peak summer season, which should help strengthen its expected
credit metrics from 2022. S&P expects traffic to increase within
the corridor that comprises AUSOL's toll road and the free
alternative. This will increase the saturation of the free
alternative, which in turn will make AUSOL more competitive,
increasing its capture rate over the corridor.

The return of British tourists to the Costa del Sol underpins the
prospects of strong summer performance.

A significant increase in Spanish people traveling to the Costa del
Sol in 2021 compared with 2020 was fundamental to the traffic
rebound on the AP7. S&P said, "This summer, we expect the return of
international visitors--notably British tourists, who have
historically represented a significant proportion of total
visitors--to further boost AUSOL's performance. The COVID-19
pandemic, and Spain's 'amber' status, resulted in close to 80%
fewer U.K. tourists flying to the Costa del Sol in 2020 and 2021,
compared with 2019 (according to Spanish airport manager AENA).
Now, despite the detrimental effect low confidence and high
inflation might have on consumer spending behavior, British
tourists are returning. In the first three months of 2022, the
number of passengers flying from the U.K. to Spain increased by
more than 4,500% compared with the same quarter last year.
Nevertheless, the pace of this rebound for U.K. or international
visitors is uncertain. As such, we continue to assume that total
traffic on the motorway in 2023 will represent 90% of the volume in
2019."

A smoothed tariff indexation facilitates the pass-thought of
inflation into the toll tariffs, reducing the impact to the user.
According to AUSOL's concession agreement, inflation is fully
transferred to the tariffs. For example, the 2022 index considers
the annual variation of the last 12 months measured in October 2021
(5.4%) with respect to the previous 12 months in October 2020
(-0.8%). This flattens the tariff increase with respect to the
official inflation for Spain in 2021 (6.5%), which should be
beneficial to the traffic recovery amid the higher cost of living.
A strong recovery could lessen the pressure on the project's
operating margins from the direct impact of high inflation to the
project's overhead and direct costs in the short term. S&P notes
that electricity represents close to 7.5% of AUSOL's total
operating expenses and the project's energy supply was contracted
at a fixed price in December for one year, which allows the project
to absorb part of the price fluctuations.

AUSOL's tax consolidation is neutral, given the current perimeter
of the tax group. AUSOL's tax is consolidated with its holding
companies Infratoll and Meridiam Investments 5 SAS. Therefore, as
per Spanish law, AUSOL could be deemed jointly and severally liable
for any unpaid tax liabilities owed by these companies. Considering
the current ownership and capital structure, as well as the
activities of the entities, the group's consolidated tax expenses
are neutral to AUSOL for the purpose of our analysis. As such,
under S&P's base case, it continues to calculate taxes on a
stand-alone basis. If any of these circumstances were to change, we
would need to reassess the project's exposure to these tax
liabilities--and the impact on its creditworthiness--accordingly.

S&P said, "The positive outlook reflects that we could upgrade
AUSOL over the next 12 months if it continues to strengthen
performance, resulting in a clear path to sustain its debt service
coverage ratio (DSCR) above 1.30x.

"We could raise the rating if AUSOL maintains traffic growth and
DSCR improvement, demonstrating that it can recover to 2019 levels
by 2023. Under this scenario, we would expect the minimum DSCR
ratio to stay markedly above 1.30x.

"We could revise the outlook to stable if the positive performance
trend abated and the forecast DSCR increase did not materialize. If
this occurred, we would expect DSCR to remain below 1.30x. This
could happen if traffic recovery were stunted by a depressed
consumer spending as a result of the effects of geopolitical events
or if new COVID-19 variants arose.

"Finally, we could downgrade AUSOL by multiple notches if its tax
group is expanded, exposing the project to unpaid tax liabilities
by third parties with weaker creditworthiness."

Environmental, Social, and Governance

S&P said, "We view social risks as a relevant credit consideration
to AUSOL. Social-distancing measures depressed passenger volumes
such that they were still around 20% lower last year than before
the pandemic. Moreover, the AP7 is a vital road network for the
region, particularly when the alternative route experiences high
levels of congestion. In the past, this led to complaints to
release the AP7 from tolls."



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ATLANTICA SUSTAINABLE: Egan-Jones Keeps B- Sr. Unsecured Ratings
----------------------------------------------------------------
Egan-Jones Ratings Company on April 8, 2022, maintained its 'B-'
foreign currency and local currency senior unsecured ratings on
debt issued by Atlantica Sustainable Infrastructure PLC. EJR also
maintained its 'B' rating on commercial paper issued by the
Company.

Headquartered in the United Kingdom, Atlantica Sustainable
Infrastructure PLC provides renewable energy solutions.


DRAX GROUP: S&P Affirms 'BB+' Long-Term ICR, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings affirmed all ratings including its 'BB+'
long-term issuer credit rating on U.K Power And Biomass Pellet
Producer Drax Group Holdings Ltd.

The stable outlook reflects S&P's expectation that Drax's
weighted-average funds from operations (FFO)-to-debt will remain
well above 30% for the next 24 months, signaling its expectation
that cash conversion will remain solid over this period.

The high power price environment gives the group strong momentum to
accelerate its deleveraging and improve operating margins. There
has been a notable increase in power prices since the second half
of 2021, with U.K. baseload power prices for 2022 significantly
above GBP200 per megawatt-hour (/MWh) for the last four months.
This has provided the group with strong momentum given that its
current generation mix is largely dominated by biomass generation,
for which the costs have been contracted in, which accounted for
91% of total output in 2021 (16.3 terawatt-hours [TWh]). Drax's
generation fleet has no material direct exposure to the substantial
increase in global gas and coal prices, and will therefore benefit
from the effect on wholesale power prices. S&P said, "Combined with
the gradual reduction in its pellet production unit costs,
following the integration of Canadian pellet producer Pinnacle
Renewable Energy Inc. in April 2021, we believe that this will
translate into higher operating margins for its biomass and hydro
assets. That said, with a significant proportion of generation
hedged approximately two years out, as part of the group's hedging
strategy, current hedges still partly reflect 2020-2021's lower
prices and are below current spot prices. While in the short-term
this offers cash flow visibility, it limits near-term earnings
growth. That said, this creates strong momentum as hedges gradually
unwind, and will benefit the group over 2023-2024. This has notably
translated into a higher average contracted price for Drax's power
sales, which jumped from GBP48/MWh for 2021-2022 as of February
2021 to GBP70/MWh for 2022-2023 as of February 2022. We therefore
expect improving trading conditions over the next 24 months will
accelerate the group's deleveraging trajectory."

Higher power prices will translate into significant headroom at the
current rating level, with strong 2021 results providing a solid
base. S&P said, "Although Drax's credit metrics were below our
rating threshold in 2020 and 2021, we consider these as transition
years, given the significant asset rotation that the group
implemented by removing the divested gas assets' contribution to
its EBITDA and the acquisition of Pinnacle in April 2021 for an
enterprise value of approximately GBP460 million. We assume that
free cash flow generation, particularly in light of current trading
conditions, will continue to accelerate deleveraging, with our
FFO-to-debt metrics projected to hover at about 40% for 2022 and
2023. Our base case also assumes a higher than usual capital
intensity over the next three years with capital expenditure
(capex) of about GBP300 million, which includes the exercising of
its development option of its Open Cycle Gas Turbine (OCGT)
projects in England and Wales, with an average of about GBP80
million annually on top of the roll-out of Drax's biomass strategy.
Our base-case scenario does not consider any additional large
external growth opportunities from the company. Although, we do
recognize that the group has made a number of significant
acquisitions in the past five years with Opus Energy in 2017,
Scottish Power's 2.6GW combined cycle gas turbine (CCGT) and hydro
portfolio in 2019, and the Pinnacle transaction closing in 2021."

S&P said, "We consider Drax's 2021's results as robust in the
backdrop of those transformational events, with reported EBITDA
increasing to about GBP452 million, from GBP334 million in 2020.
This was notably thanks to biomass generation, which increased by
5% despite a circa three-month major planned outage for Drax's
contract for difference (CfD) unit, while the group's pellet
production output more than doubled at 3.1 metric tons (Mt), with
unit cost lowered by 7% largely due to the integration of Pinnacle.
The year was also marked by the return to profitability for its
business-to-business energy supply activities that were
particularly affected by the COVID-19 pandemic.

"Greater integration along the biomass value chain bolsters Drax's
biomass strategy, gradually narrowing the gap for its economic
sustainability. We expect that pellet production will play an
increasing role in the group's business mix as it intends to
continue to expand and optimize its pellet supply chain and fuel
its growth in third party contracts and own use. EBITDA from pellet
production notably increased by 65% in 2021 to GBP86 million, from
GBP52 million in 2020. The group aims to become a global leader in
pellet production targeting 8 Mt of pellet production capacity by
2030. Pinnacle's integration over 2021 illustrates the group's
greater presence in the biomass value chain and contributes to a
significant reduction in future procurement risks with a notable
boost to the group's nameplate capacity, with 17 operational and
development sites in Southeast U.S. and Canada, and total nameplate
production capacity of around 5 Mt per year once commissioned. The
integration also further accelerates the reduction in Drax's pellet
production costs, which remains critical to ensuring the economic
sustainability of its biomass generation assets beyond 2027, when
subsidies for all of its biomass generation fleet mature. While we
note that cost reductions have been significant to date with pellet
unit costs decreasing by 14% between 2018 and 2021 to US$143 per
ton (/t), assuming an exchange rate of US$1 to CA$1.30, a
significant cost reduction of 30% is required to reach the group's
target of US$100/t by 2027.

"Drax is well-positioned to take advantage of the opportunities
offered by the energy transition in the U.K, but potential large
investments to implement its carbon negative strategy limit the
visibility on future leverage and capital structure. Drax currently
benefits from its flexible generation fleet and ability to provide
both dispatchable and renewable power. This serves the group well
in the context of the growing electrification of the U.K. economy,
in light of its decarbonization objectives, along with the ability
to capture value from the rapidly growing needs for system support
services due to the growing penetration of intermittent renewables.
We see further net zero opportunities for the group in the U.K. and
globally, notably with the deployment of bioenergy carbon capture
and storage (BECCS) technology, to articulate the group's carbon
negative strategy by 2030 and help the U.K. to meet its
decarbonization objectives. At this stage however, visibility is
limited."

Drax plans to build two BECCS units in the U.K. by 2030, targeting
8 Mt per year of negative emissions by 2030, as part of the
government's ambitions to reach net zero by 2050. The government's
GBP12 billion Ten Point Plan, published in November 2020, intends
to establish carbon capture, usage, and storage in two industrial
clusters by the mid-2020s, subject to relevant value for money and
affordability considerations, aiming for four of these sites by
2030. In this context, a retrofit of BECCS at Drax's power station
could play a key role in the U.K.'s net zero strategy, by becoming
the world's first carbon negative plant at scale. The group,
together with other companies, has already received part of a
GBP171 million grant package to fund research and development in
this field. That said, these projects remain contingent on further
announcements (and indication of support) from the government
regarding their monetization and we expect more information to be
included in the government's 2022 biomass strategy.

S&P said, "While BECCS would further expand the group's integration
across the biomass value chain, we currently have limited
visibility on the remuneration framework and profitability level
for this technology along with investment requirements, with a
final investment decision on the U.K.'s BECCS not expected until
2024. We therefore do not factor any of these investments in our
base case at this stage, since Drax's degree of involvement will
depend, among others, on market outlook, and the remuneration
framework for the U.K.'s BECCS. We also acknowledge that those
projects would bear both construction and operational risks, that
could delay the profitability stage on top of a very significant
hike in capex in the second half of the decade.

"The stable outlook reflects our expectation that Drax's
weighted-average FFO-to-debt will remain above 30% for the next 24
months, signaling our expectations that cash conversion will remain
solid over this period, and that credit metrics will recover after
additional leverage from the Pinnacle acquisition is fully
absorbed. Our current base case does not factor in any other large
credit-dilutive acquisitions or a significant acceleration in the
group's capex program because we expect Drax to adhere to its
current financial policy.

"We could lower the rating if we were to consider Drax's credit
metrics unlikely to recover to a level that we see as commensurate
with the current ratings. That is, FFO-to-debt of about 30% over
the next 24 months. This could come, for instance, from a
significant underperformance of Drax's generation assets, notably
with substantial unplanned outages, or in the case of markedly
lower power and Renewable Obligation Certificate (ROC) prices than
we anticipated, which we consider as unlikely in the current
context. We could also lower the rating if the group's future
strategy were to involve large debt-funded acquisitions or a
significantly higher than anticipated capex program. Although
remote at this stage, a retroactive change in biomass subsidies for
Drax's biomass CfD and ROC units could also prompt us to lower the
rating.

"We could raise the rating once we have greater clarity on the
group's future strategy, operating performance, and the additional
investments necessary for Drax to implement its carbon negative
strategy. Furthermore, an upgrade would require the group to
maintain its FFO-to-debt metrics significantly above 40% for a
prolonged period and commit to its current financial policy."

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

S&P said, "Environmental factors are a moderately negative
consideration in our credit rating analysis of Drax. As the U.K.'s
fourth-largest power generator, Drax is the first energy group
globally to announce its aim to become carbon negative (that is
remove more CO2 from the atmosphere than its produces), which it
targets by 2030. It successfully reduced its carbon footprint over
the past decade by transitioning away from coal-dominated power
generation to biomass and hydro. Coal and gas generation dropped to
6% of its total output in 2021 from about 23% in 2020 and 95% in
2012, resulting in a significant reduction in scope 1 and 2
carbon-equivalent emissions over the same period to 1,255 thousand
metric tons of carbon equivalent from 3,080 in 2020. Drax is
nonetheless exposed to a potential change in perception of biomass
as a renewable energy source; political risk to the extent that the
U.K. government takes a different view on its policies on biomass
power generation and which technologies qualify for subsidies;
along with risk of a deterioration in the public opinion on biomass
generation in the U.K."


HAMMERSON PLC: Egan-Jones Keeps BB Senior Unsecured Ratings
-----------------------------------------------------------
Egan-Jones Ratings Company on April 7, 2022, maintained its 'BB'
foreign currency and local currency senior unsecured ratings on
debt issued by Hammerson plc.

Headquartered in London, United Kingdom, Hammerson plc invests in
and develops property.


INTERNATIONAL GAME: Egan-Jones Cuts B- Senior Unsecured Ratings
---------------------------------------------------------------
Egan-Jones Ratings Company on April 7, 2022, downgraded the foreign
currency and local currency senior unsecured ratings on debt issued
by International Game Technology PLC to B- from CCC+. EJR also
maintained its 'B' rating on commercial paper issued by the
Company.

Headquartered in London, United Kingdom, International Game
Technology PLC designs, develops, manufactures, and distributes
computerized gaming equipment, software, and network systems.


JC ROOK: Former Staff Owed Some GBP201,600, Documents Show
----------------------------------------------------------
Kathy Bailes at The Isle of Thanet News reports that staff made
redundant after food business JC Rook & Sons went into
administration last month were owed some GBP201,600 in wages,
pensions and accrued holiday pay.

JC Rooks closed its 11 shops and factory sites, including in
Ramsgate and Broadstairs, last month leaving 135 people without
jobs, The Isle of Thanet News recounts.  A further two employees
stayed on to help administrators but have also since been made
redundant, The Isle of Thanet News notes.  Staff were only told of
the shock business closure the night before, The Isle of Thanet
News states.

The firm went into administration owing more than GBP2 million, The
Isle of Thanet News discloses.

Documents published by joint administrators Neil David Gostelow and
William James Wright of Interpath reveal that there are also more
than 150 traders who are still owed money, including Thanet firms,
The Isle of Thanet News relates.

The total, owed to around 150 businesses with almost half of those
based in Kent is GBP1.07 million, The Isle of Thanet News states.

On top of this there was GBP166,000 owed to Lloyds which has been
recouped and GBP559,000 owed to the Financial Services Compensation
Scheme and HMRC in relation to VAT, PAYE, employees' National
Insurance contributions ("NIC") and Construction Industry Scheme
("CIS") deductions, according to The Isle of Thanet News.

This brings the total debt to GBP2,001,237, The Isle of Thanet News
states.

Employees will be paid first but how much they get will be
dependent on asset realisations, say the administrators.  However,
it is understood staff have been, or will be if still on notice
period, paid out of government funds, The Isle of Thanet News
says.

Administrators say all others owed money are "highly unlikely" to
be paid, The Isle of Thanet News notes.

The administrators' report says from May 2021 to January 2022 JC
Rooks (and associated company Henry & Joseph) had revenue of GBP8.3
million but an operating loss of GBP0.3 million, The Isle of Thanet
News discloses.  The company also had an unsecured Coronavirus
Business Interruption Loan Scheme with Funding Circle of
GBP200,000, The Isle of Thanet News states.

According to The Isle of Thanet News, the report says: "The
company's trading difficulties in the retail business began with
the onset of the Covid-19 pandemic in 2020.  With strict government
measures in place, the company was unable to operate at pre-Covid
levels.  This was due to lower footfall on high streets and
restricted numbers within stores to comply with social distancing.

"The directors made the decision to grow the food service side of
the business from the Ramsgate site in summer 2020 and further
expanded this through operations in the Shoreham site in May 2021.
The company invested in both the sites to allow these operations to
commence but were running with a very high cost base.  The food
service business was also impacted by Covid-19 as a result of
customers (both wholesale and retail) having reduced supply as they
were either closed or operating on a restricted basis.

"As a result, the company did seek government backed emergency
funding in late 2020 and took out a Coronavirus Business
Interruption Loan Scheme for a total of GBP200,000 to help the
company with its cash pressures.

"Although the company saw improved trading in late 2021, the
emergence of the Omicron variant of the Covid-19 virus impacted
what is usually a peak trading period for both businesses over
Christmas.  The company usually builds up cash reserves over this
period to allow them to continue trading through the quieter months
between January and March.  As a result, although the directors
implemented a cost saving plan in early 2022 to reduce the impact
of the poor trading over Christmas, they made the decision to seek
legal and professional advice in March 2022.

"Following this, the Directors took the decision to close the
company's eleven retail stores and cease operating at the two foods
sites."

The company held five bank accounts with NatWest and GBP98,409 was
transferred to the Joint Administrators' bank account following
appointment, The Isle of Thanet News discloses.  Some GBP69,800 was
raised from plant and machinery and just GBP12,250 from stock due
to its "perishable nature."


LIBERTY STEEL: Serious Fraud Office Raids Offices
-------------------------------------------------
BBC News reports that The offices of Sanjeev Gupta's Liberty Steel
have been raided by the Serious Fraud Office (SFO).

The SFO launched an investigation into suspected fraud and money
laundering by parent firm GFG Alliance (GFG) last May, BBC
recounts. GFG owns a collection of businesses in energy, steel and
trading, employing about 35,000 people.

Mr. Gupta, its executive chairman, came under scrutiny after GFG's
main lender Greensill Capital collapsed, BBC notes. The finance
company went under after its insurer refused to renew cover for the
loans it was making, BBC relates.  It was the main lender to GFG's
Liberty Steel, which employs 3,000 people in England, Scotland and
Wales.

Once described as the "saviour of steel", SFO officers visited
addresses linked with Mr. Gupta's operations on April 27 and
requested documents including company balance sheets and annual
reports, BBC discloses.

The SFO could not provide further comment on the investigation as
it is still ongoing, BBC states. But it did confirm that its teams
spoke with executives at offices across Britain, who co-operated
with the operation, according to BBC.

The SFO opened its investigation into GFG last May over suspected
fraudulent trading and money laundering, including its financing
arrangements with Lex Greensill's company, BBC relays.

According to the Financial Times, French prosecutors also visited
GFG's Paris office and an aluminium smelter in Dunkirk earlier this
week, where they questioned executives, BBC notes.

British MPs have previously raised a series of concerns over
Sanjeev Gupta's leadership of GFG Alliance, including the unusual
funding and company structures, as well as a series of accounting
"red flags", BBC states.

Politicians also recommended that the Insolvency Service should
consider whether Mr. Gupta has breached his fiduciary duties as a
company director, BBC notes.


NEXT PLC: Egan-Jones Keeps BB+ Senior Unsecured Ratings
-------------------------------------------------------
Egan-Jones Ratings Company on April 4, 2022, maintained its 'BB+'
foreign currency and local currency senior unsecured ratings on
debt issued by Next Plc.

Headquartered in Leicester, United Kingdom, Next Plc conducts
retailing, home shopping, and customer services management
operations.


QUICKQUID: 78,500 Borrowers to Get Refunds of Interest, Fees
------------------------------------------------------------
Emily White at MoneySavingExpert reports that around 78,500
QuickQuid and Pounds to Pocket borrowers, who were mis-sold loans
they couldn't afford, will receive refunds of some of the interest
and fees they were charged at a rate of 53.5p to every pound owed,
it's been confirmed.

According to MSE News, pay outs are expected to be sent within the
next two weeks.

Joint administrators at Grant Thornton had initially said affected
borrowers were likely to receive a pay out of between 30p and 50p
per GBP1 of interest, fees and charges paid on their mis-sold loans
(plus 8% interest on top), MSE News relates.  But they've this week
confirmed -- and have contacted customers by email -- to say that
they will actually receive 53.5p per GBP1 owed, plus interest, MSE
News discloses.

The update comes after CashEuroNet, which payday lenders QuickQuid
and Onstride.co.uk (formerly known as Pounds to Pocket) were part
of, went into administration in 2019 and stopped lending, MSE News
notes.


SPIRIT ISSUER: Moody's Ups GBP161.2MM Cl. A5 Bonds Rating from Ba1
------------------------------------------------------------------
Moody's Investors Service has upgraded the rating of one class of
Bond issued by Spirit Issuer plc ("Spirit", the Issuer).

GBP161.2M (current outstanding balance GBP96.7M) Fixed/Floating
Rate Class A5 Secured Debenture Bonds due 2034, Upgraded to Baa3
(sf); previously on May 26, 2017 Affirmed Ba1 (sf)

Moody's has also affirmed the counterparty instrument rating on the
transaction's Liquidity Facility Agreement:

GBP194M (current outstanding balance GBP15M) Liquidity Facility
Agreement Notes, Affirmed Aa3 (sf); previously on May 26, 2017
Affirmed Aa3 (sf)

RATINGS RATIONALE

The upgrade rating action reflects the combination of the
deleveraging of the Spirit transaction through repayment of the A2
Bonds in March 2020 and the more recent February 2022 removal in
the UK of all remaining emergency Covid laws and positive trends in
pub trading performance. The easing of Covid restrictions through
the course of 2021/22 has allowed a gradual recovery in a number of
key credit drivers for the deal, such as Free Cash Flow (FCF) and
Earnings Before Interest, Tax, Depreciation and Amortisation
(EBITDA). Moody's expectation is for a continuing improvement in
these metrics over the first half of 2022 and for the transaction
to return to full compliance with its covenants by the end of this
period.

Subsequent to the March 2020 deleveraging, the Class A5 Bond is the
only outstanding bond of the Issuer. The GBP96.7M outstanding
amount is supported by cashflows arising on a current estate of 300
managed and 217 leased pubs which in the 13 weeks ending January 2,
2022 [1] generated a total turnover of GBP79.6M for a periodic
EBITDA of GBP11.9M. The A5 Bonds have no scheduled amortization due
until 2029 and periodic debt service is approximately GBP1.3M per
quarter. Reported pub values [1], which provide an ultimate
backstop to the issued bonds, have remained resilient despite Covid
and Moody's Note-to-Value (NTV) ratios are robust when compared to
the quantum of outstanding debt.

The performance of the transaction over the last 24 months has been
severely impacted by Covid and in fact the transaction remains in a
state of technical default due to unremedied breaches of financial
covenants. A bondholder waiver of the various Events of Default was
sought but not obtained. The bonds have not been accelerated and
the performance of the transaction in recent months has improved as
Covid-restrictions have been removed.

As part of its analysis, Moody's reviewed the quarterly Financial
Reports [2] for Spirit Issuer and the Annual Report and Financial
Statements for Spirit Issuer plc [3] and Greene King Limited [4].
Moody's notes that Greene King's liquidity position has been
reinforced by the provision to Greene King of a GBP1.5bn revolving
loan facility by an indirect intermediate parent company (CKA
Holdings UK Limited); and Spirit Issuer plc has benefited from a
subordinated loan for an amount of up to GBP100M issued by Spirit
Managed Funding Limited to fund working capital requirements as a
result of the COVID-19 pandemic. Moody's understands that both
facilities have not been fully drawn and with respect to the GBP
100M subordinated loan, only GBP3M has been drawn down on this loan
since inception.

Moody's also took comfort from statements made in the Annual Report
and Financial Statements by the directors of Greene King Limited
[4] regarding the "highly improbable" likelihood of enforcement
actions on the Spirit debenture following the state of technical
default of the Spirit debenture; and statements from the directors
of Greene King Limited [4] and Spirit [3] regarding the "going
concern" nature of the companies, on which the auditors agree.

The affirmation rating action on the Liquidity Facility Agreement
reflects the quality of the pub collateral underlying the
transaction and the transaction's structure, including the senior
position of the liquidity facility in the Issuer's payment
waterfall.

Moody's notes that Spirit did not make any draws on the Liquidity
Facility Agreement since Covid-related restrictions were introduced
in the UK in March 2020. Cashflow support to the Issuer has come
from Greene King, who in turn have been supported by their ultimate
owner CK Asset Holdings Limited (A2, stable).

The key parameters in Moody's analysis are: (i) the intrinsic
credit strength of the borrower and the Sponsor group; (ii) the
sustainable FCF debt multiples generated by the underlying property
portfolio and operations over the medium to long term horizon of
the transaction; and (iii) the structural protections available to
the noteholders aimed at limiting the sensitivity of the credit
quality of the notes from the underlying credit quality of the
borrower and its operations.

For the Counterparty Instrument Rating ("CIR"), Moody's also took
into account factors detailed in "Structured Finance Counterparty
Instrument Ratings Methodology" published in March 2022.

The rating of the Liquidity Facility Agreement is constrained as in
Moody's view there remains a dependency on the performance of the
sponsor.

Methodologies Underlying the Rating Actions:

The principal methodology used in rating the Class A5 Bond was
"Operating Company Securitizations Methodology" published in April
2020.

Factors that would lead to an upgrade or downgrade of the ratings:

Factors that may cause an upgrade of the ratings include a
significant improvement of the credit quality of the parent company
of the borrower and positive performance of the underlying
operations of the pubs.

Factors that may cause a downgrade of the ratings include a
significant deterioration of the credit quality of the parent
company of the borrowers and negative performance of the underlying
operations of the pubs. Increases in inflation and energy costs or
costs of living pressures on consumer spending could potentially be
a cause for negative performance.

An upgrade of the CIR is unlikely given the heavily operative,
whole business-type operations of the borrowers. An increase of the
probability of liquidity draws and/or a decrease in the underlying
collateral value in the transaction may lead to a downgrade of the
CIR.

WELCOME TO YORKSHIRE: Mulled Entering Administration Months Ago
---------------------------------------------------------------
Chris Burn at The Yorkshire Post reports that tourism agency
Welcome to Yorkshire began considering the prospect of entering
administration more than six months ago, it has been revealed.

According to The Yorkshire Post, a report by administrators
Armstrong Watson reveals the company was initially engaged by
Welcome to Yorkshire to provide ongoing assistance in September
2021 after the future of the tourism agency "became uncertain" and
advice was provided on "potential exit strategies".

It was announced that month that chief executive James Mason would
be leaving the business and he departed in October, The Yorkshire
Post notes.

Chairman Peter Box had been due to stand down at an AGM in November
but in October he cancelled the AGM and announced he would stay
while a consultation on WtY's future was conducted with local
tourism firms, The Yorkshire Post states.

In January, Armstrong Watson provided additional advice to WtY
which included a suggestion of going into administration -- a
course of action that was subsequently taken at the start of March
after council leaders confirmed they would no longer be provided
public funding, The Yorkshire Post recounts.

The report, as cited by The Yorkshire Post, said: "Advice was
provided to the board around potential exit strategies and a
further report was produced by AW to the company in January 2022
after the board had determined three potential outcomes on which AW
were able to provide advice.

"The options were absorption by the local authorities, cessation of
trade or a ‘pre-pack' of the business via administration.
Continued trading was only viable if the local authorities agreed,
through the Yorkshire Leaders' Forum, to continue to support the
company financially."

Local council leaders commissioned a report into the future of
Welcome to Yorkshire conducted by Merran McRae, a former chief
executive of Wakefield and Calderdale councils, The Yorkshire Post
relays.

In February, that concluded there was "no long-term future" for
WtY, with council leaders deciding to end public funding of the
tourism agency and it was placed into administration at the start
of March, The Yorkshire Post relates.  The report also reveals that
Armstrong Watson was engaged by Welcome to Yorkshire in summer 2020
as the agency sought a GBP1.4 million bailout from local councils
to keep it afloat, The Yorkshire Post discloses.

According to The Yorkshire Post, the report states: "AW were
engaged by the company in July 2020 initially to review the
company's proposed business plan to support the funding request, as
well as a review of the options for the company, including both
formal and informal options."



                           *********


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.

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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,
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