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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

          Wednesday, June 8, 2022, Vol. 23, No. 108

                           Headlines



A R M E N I A

AMERIABANK CJSC: S&P Affirms 'B+/B' ICRs on Stronger Capital


B E L G I U M

IDEAL STANDARD: Moody's Cuts CFR to Caa1 & Alters Outlook to Stable


C R O A T I A

VIS: To Increase Share Capital by HRK15.5 Million


G E O R G I A

GEORGIA CAPITAL: S&P Alters Outlook on 'B+' ICR to Negative


G R E E C E

DANAOS CORP: S&P Upgrades ICR to 'BB', Outlook Positive


I T A L Y

F-BRASILE SPA: S&P Lowers ICR to 'CCC+' on High Leverage


K A Z A K H S T A N

NOMAD INSURANCE: S&P Alters Outlook to Negative & Affirms 'BB' ICR
SINOASIA B&R: S&P Alters Outlook to Negative & Affirms 'BB' ICR


N E T H E R L A N D S

ELM BV: S&P Puts BB+ Rating on 273 Repack Notes on Watch Pos.


R U S S I A

UZBEKISTAN: S&P Affirms 'BB-/B' Sovereign Credit Ratings
UZBEKISTANI FERGANA: S&P Assigns 'B+' LT ICRs, Outlook Stable


U N I T E D   K I N G D O M

ADIENT GLOBAL: Moody's Affirms B2 CFR & Alters Outlook to Stable
CABLE & WIRELESS: Moody's Alters Outlook on 'Ba3' CFR to Stable
E-CARAT 11: S&P Affirms 'CCC+ ' Rating on Class G Notes
GALLITO GROUP: Enters Administration, 16 Jobs Affected
INTERSERVE: Shareholders Back Deal to Separate Tilbury Douglas

KIER GROUP: Regulator Imposes Fine Over Audit Failures
MISSGUIDED: Former Employees Mull Lawsuit Over Redundancy Process
SUNGARD AVAILABILITY: Redcentric Buys Remaining Assets, Contracts

                           - - - - -


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A R M E N I A
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AMERIABANK CJSC: S&P Affirms 'B+/B' ICRs on Stronger Capital
------------------------------------------------------------
S&P Global Ratings affirmed its 'B+/B' long- and short-term issuer
credit ratings on Ameriabank CJSC. The outlook is stable.

Ameriabank's capitalization strengthened in 2021 due to
deleveraging, recovering operational performance after the
pandemic, and low dividend payouts.

S&P said, "We believe Ameriabank is well positioned to withstand a
potential rise in economic risk in the Armenian banking system. We
anticipate weakening economic prospects for Russia, Armenia's most
important trading partner, as a result of the Russia-Ukraine
conflict. Armenia has very strong economic ties with Russia, which
accounted for about 40% of its foreign direct investment, about 28%
of its exports, about 37% of imports, and about 41% of its
remittances in 2021. A sharp recession in Russia in 2022 will have
a negative impact on Armenia, reducing its real GDP growth to 1.3%
this year versus our previous expectation of 4.7%. We forecast that
GDP growth in Armenia will rebound and average 4.3% in 2023-2025,
supported by robust domestic demand and ongoing growth of the
services sector, including tourism and information technology. In
addition, Russia serves as Armenia's security guarantor in
Nagorno-Karabakh, a disputed territory within Azerbaijan.
Unresolved tensions between Armenia and Azerbaijan are also a risk,
since they could lead to political instability and social unrest."

Ameriabank's improved capitalization and conservative and
well-developed risk-management practices should act as a good
buffer for rising credit risks. The bank's risk-adjusted capital
(RAC) ratio improved to an adequate level of 7.6% at year-end 2021
from a moderate 6.6% at year-end 2020, supported by strong
profitability, full earnings retention, and loan deleveraging. S&
said, "We expect the bank will maintain its RAC ratio in the range
of 7.2%-7.8%, based on our expectation that budgeted annual loan
growth rate of 10%-15% will be supported by return on equity above
15% and a very small dividend payout. We think the bank's Stage 3
loans could moderately increase to about 4.5% of total loans in
2022-2023, from 3.5% reported as of March 31, 2022, while cost of
risk could increase to about 1.5% in 2022 from 0.9% in 2021. At the
same time, we expect Ameriabank will continue to demonstrate
stronger asset-quality metrics than the domestic system average."

S&P said, "We believe Ameriabank will retain its leading market
positions in Armenia. Our view is supported by the bank's strong
domestic brand, professional management team, advanced
digitalization strategy, wealthy and supportive shareholder, and
adequate corporate governance instilled by minority shareholders,
the European Bank for Reconstruction and Development and Asia
Development Bank."

The rating on Ameriabank is constrained by the long-term foreign
currency rating on (B+/Stable/B).

This is why the 'B+' long-term rating on Ameriabank is one notch
lower than its 'bb-' stand-alone credit profile (SACP). S&P does
not rate Armenian banks above the sovereign because the banks'
exposures are predominantly in Armenia, with strong links to the
domestic economy from a business, funding, and lending point of
view.

Outlook

The stable outlook reflects S&P's expectation that Ameriabank's
improved capitalization, sufficient liquidity, prudent risk
management, and strong local brand will support its
creditworthiness in the low growth environment in Armenia over the
next 12 months.

Upside scenario

A positive rating action on Ameriabank over the next 12 months
could follow a positive rating action on Armenia, provided that
economic growth recovers faster than expected in 2022 and
accelerates over the medium term, or Armenia's external debt
reduces faster than S&P's expectations. This should translate into
better growth and profitability prospects in the Armenian banking
sector, supporting further sustainable growth of Ameriabank's
business.

Downside scenario

Conversely, a negative rating action on Ameriabank over the next 12
months could follow a negative rating action on Armenia if economic
growth in Armenia weakens even more, with the country potentially
falling into recession, requiring larger fiscal support than S&P
currently anticipates, or if the external deleveraging trend
reverses, thus potentially increasing the risks for the banking
system in Armenia. A downgrade based on weakening of Ameriabank's
SACP is remote, in its view, because it would hinge on a material
deterioration of both its risk profile and capitalization.




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B E L G I U M
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IDEAL STANDARD: Moody's Cuts CFR to Caa1 & Alters Outlook to Stable
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Moody's Investors Service has downgraded Ideal Standard
International S.A.'s corporate family rating to Caa1 from B3 and
the probability of default rating to Caa1-PD from B3-PD.
Concurrently, Moody's has downgraded the instrument rating of the
EUR325 million guaranteed senior secured notes due in 2026 to Caa1
from B3. The outlook on the ratings changed to stable from
negative.

RATINGS RATIONALE

The downgrade of the CFR to Caa1 is driven by Moody's assumption of
a higher than initially expected cash burn in 2022 on the back of
cost inflation and continued restructuring charges.  This will
result in a weaker liquidity profile and high Moody's adjusted
gross leverage above 7.0x over the next 12-18 months (around
 13.0x in the last twelve ending March 2022), which exceeds the
expectations for its previous B3 rating. At the same time, the
rating is supported by no sizable maturities before 2026 and
Moody's expectations that free cash flow will start improving from
2023, when the company will largely complete its restructuring
program.

Moody's expects that Ideal Standard will generate around negative
EUR30 million Moody's adjusted free cash flow in 2022 (EUR25
million in 2021), including lease payments, which will reduce the
company's liquidity headroom. This compares with the rating agency
previous expectations that Ideal Standard would have improved cash
flow generation in 2022. The still high cash burn in 2022 reflects
the sizable cash outflow related to the closure of the Trichiana
factory in Italy, as well as the further increase in raw material
prices from the already elevated levels in 2021. Moody's expects
the company will largely manage to offset higher costs through
selling price increases and cost saving initiatives, which will
support a slight increase EBITDA compared to 2021 levels. However,
if demand was to reduce because of a lengthy Russia-Ukraine
military conflict, Ideal Standard's ability to increase prices to
customers will be more challenging.

The Caa1 rating continued to be supported by Ideal Standard's
strong positions in the sanitaryware and fittings market in Europe
and the Middle East and North Africa (MENA); long-term
relationships with its largest customers; and the company's
significant cost saving initiatives achieved over the last few
years, including the transfer of its manufacturing facilities to
lower-cost locations. At the same time, the rating is constrained
by the limited track record of achieving sustained earning growth
and a history of negative free cash flow (FCF) generation; and the
exposure to raw material price and foreign exchange rate
volatility, which poses risks to earnings stability.

LIQUIDITY

Ideal Standard's liquidity is weak but still adequate. The company
had around EUR35 million cash on balance sheet as of March 2022 and
a EUR15 million undrawn revolving credit facility (RCF). Ideal
Standard is exposed to working capital seasonality, with a peak
between January and June, and a recovery during the second half of
the year. Therefore, Moody's expects the company to generate
positive FCF in the second half of the year.

The RCF contains one springing senior secured net leverage covenant
set at 7.0x and tested only when the RCF is drawn by more than 40%.
The company benefits from several factoring lines, which are likely
to be renewed to support intra-year fluctuations. The company will
have no major debt maturing until 2026.

STRUCTURAL CONSIDERATIONS

The Caa1 rating on the guaranteed senior secured notes reflects the
fact that they represent most of the debt in the capital structure
because of the size of the super senior RCF, MENA and Bulgarian
facilities, which are not sufficiently large to allow any notching.
The MENA and Bulgarian facilities rank senior to the notes and
super senior RCF. Both the notes and the super senior RCF share the
same security and guarantees, but the notes rank junior to the RCF
upon enforcement under the provisions of the intercreditor
agreement. Security includes pledges over share pledges, bank
accounts, intercompany receivables and intellectual property.
Material subsidiaries, which guarantee the notes, represent at
least 80% of the group's consolidated EBITDA. The company's Caa1-PD
probability of default rating (PDR) is aligned with the CFR,
reflecting the use of a 50% family recovery rate, as is typical for
transactions that include both bonds and bank debt. Moody's also
note the presence of EUR1.76 billion of Preferred Equity
Certificates (PECs) and around EUR1.2 billion of Shareholder Loans
(SHLs) entering into the restricted group, which have been treated
as equity.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectation that debt/EBITDA
will decline towards 7.0x over the next 12-18 months supported by
continued cost savings under the company restructuring program,
which together with plan selling price increases will mitigate cost
inflation. The stable outlook also reflects Moody's expectations
that Ideal Standard's free cash flow, including leasing payment and
cash outflow related to the company's restructuring programs, will
improve at least to breakeven from 2023.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) CONSIDERATIONS

Moody's takes into account the impact of environmental, social and
governance (ESG) factors when assessing companies' credit quality.

Governance risks mainly relate to the company's private-equity
ownership, which tends to tolerate a higher level of leverage and
risks. Moody's considers Ideal Standard's financial policy very
aggressive because of the size of the debt-funded dividend done
last year after revenue and profitability decline driven by the
pandemic in 2020 and despite the  material investments over the
next 12 months needed to complete transformational initiatives.

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

The ratings could be upgraded with the expectations for
Moody's-adjusted gross debt/EBITDA below 6.5x, and for positive FCF
and maintenance of an adequate liquidity profile.

The ratings could be downgraded with the expectation that the
company's liquidity weakens, or that the capital structure is
becoming increasingly unsustainable.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Consumer
Durables published in September 2021.

COMPANY PROFILE

Headquartered in Belgium, Ideal Standard is a manufacturer of
sanitaryware and fittings products in Europe and MENA. The company
operates under branded names including Ideal Standard, Jado,
Porcher, Armitage Shanks, Ceramica Dolomite and Vidima. The company
has 9 manufacturing plants in Europe and Egypt. It provides its
products to both the residential and commercial markets. In 2021
Ideal Standard generated EUR715 million revenues. Since 2018 the
company is majority owned by Anchorage Capital Group with 80% of
shares and CVC Partners with the remaining 20%.




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C R O A T I A
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VIS: To Increase Share Capital by HRK15.5 Million
-------------------------------------------------
Annie Tsoneva at SeeNews reports that Croatian hotel owner Vis said
its majority sharеholder, pension fund management company PBZ/CO,
will boost Vis' share capital by 34% to HRK60.6 million (US$8.6
million/EUR8.0 million).

Vis said in a filing to the Zagreb Stock Exchange on June 6 PBZ/CO
will increase the share capital of Vis by HRK15.5 million from
HRK45.1 million by issuing 1.55 million new shares of HRK10 in par
value each, SeeNews relates.

The new shares will be listed on the Zagreb bourse within a year
after they are issued, SeeNews discloses.

According to SeeNews, on July 14, Vis shareholders will vote on the
proposed capital increase, as well as on a proposal to cover the
company's loss of HRK3.08 million for 2021 with future profit.

Vis, which owns two hotels on the Adriatic island of Vis, went
bankrupt in 2015, SeeNews recounts.

PBZ/CO became majority owner of Vis with some 73% interest in 2019
following a capital increase of HRK33 million, SeeNews notes.

Currently, PBZ/CO owns more than 81% interest in the company,
SeeNews states.




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G E O R G I A
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GEORGIA CAPITAL: S&P Alters Outlook on 'B+' ICR to Negative
-----------------------------------------------------------
S&P Global Ratings revised its outlook on Georgia-based investment
holding company Georgia Capital JSC (GC) to negative from stable
and affirmed its 'B+' long-term issuer credit and issue ratings on
the company.

The negative outlook reflects the possibility of a downgrade over
the next six-to-nine months if economic and financing conditions
for the Georgian economy continue to deteriorate, which could
result in worsening leverage and liquidity, and heightening the
refinancing risk on its 2024 notes Credit conditions have become
less supportive and GC could face mounting refinancing risks for
its $365 million bond due March 2024.

S&P said, "We see increasing risk that a progressive slowdown of
the global and the Georgian economy could further challenge the
company's asset valuations, with negative effects both on its
leverage and the group's access to international capital markets to
refinance the bond due in March 2024. Earlier this year, S&P Global
Ratings lowered its real GDP growth forecast for Georgia
(BB/Stable/B) for 2022 to 2.5% from 5.5%. As of March 31, 2022, GC
reported NAV per share decreased to GEL52.62 per share against
GEL63.03 per share at Dec. 31, 2021, a deterioration of 16.5%. At
the same time, in May 2022, GC's NAV per share recovered by about
5% against the March-end figure. We anticipate somewhat volatile
market conditions, and note that GC's share price discount
exceeding 50%. Finally, the company's bond, which until just before
the beginning of the Russia-Ukraine conflict traded above par, is
now trading below par at about 96.

"GC retains a comfortable liquidity buffer, but it has to
contribute to Georgia Global Utilities JSC's (GGU; B/Stable/--)
$250 million early redemption of the bonds. We do not anticipate
imminent liquidity risks, but over the next 24 months from the time
we write, GC's sources of cash will likely not cover cash outlays
absent a proactive refinancing of GC's $365 million bond. The
company has recently received $180 million for the disposal of 80%
of GGU. This leads to reported cash and cash equivalents of about
GEL719 million ($232 million) as of end-March 2022, which covers
about 70% of the bond. At the same time, the first stage of the
transaction triggered a change-of-control event under GGU's $250
million bond, and bondholders will have the right to ask for a
buyback at 101% of the principal amount plus accrued coupon. We
understand that the GGU bond is trading at par, and anticipate that
after the noncallable period expires in July 2022, bonds will be
fully redeemed. In line with the transaction structure, GC and FCC
Aqualia have committed to support the expected redemption of the
$250 million bond, which will likely be split between the renewable
energy business ($90 million-$95 million) and the water business
($155 million). Under our base-case scenario, we have factored in
$90 million-$95 million cash out from GC to support the transaction
under the form of a shareholder loan, while the renewable energy
business will try to seek permanent financing. In the transaction's
second stage, expected in third-quarter 2022 and only when GGU's
bond is fully redeemed, GGU will spin off its renewable assets. GC
will retain 100% of these assets and 20% of the water utility
business. The transaction is expected to include call-put options
with FCC Aqualia that are exercisable in 2025-2026 for the
remaining 20% minority stake.

"GC has moderate LTV and retains the quasi-totality of its cash in
hard currency. We calculate that the company's pro forma LTV ratio
as of end-March 2022 is still moderate albeit increasing from
leverage as of end-2021. Our pro forma adjusted LTV as of March 31,
2022, reached about 26% (when excluding the loans to investee
assets from the portfolio value), up from about 20% at Dec. 31,
2021 (both ratios are assuming that GC will offer the $90
million-$95 million shareholder loan to the renewable utility
business). We understand that GC retains the quasi-totality of its
cash in hard currency, which somewhat limits the risks of exchange
rate fluctuations between the GEL and the U.S. dollar. In addition,
the GEL has not appreciated materially, trading at about 0.35 per
dollar. Conversely, all its dividend income is GEL-denominated, if
we exclude the renewable energy business that has cash flow in
dollars and consequently pays divided in hard currency."

About 80% of GC's portfolio is invested in unlisted Georgian
assets, with relatively weaker creditworthiness and somewhat
limited potential dividend payments, compared to more diversified
assets. This leads S&P to expect a cash adequacy ratio of 0.8x-1.2x
in 2022, which could moderate in 2023 to 0.7x-1.1x. GC's key
investee companies enjoy good competitive positions in their
respective narrow markets. At the same time, they are domestic
Georgian companies with no or very limited international revenue,
limiting therefore the portfolio creditworthiness of GC's investee
companies to the low single 'B' range. The Bank of Georgia is the
largest provider of banking services in the country and has a
market share of about 40%. Georgia Healthcare Group (GHG) is the
largest pharmaceutical distributor and private owner of hospitals
in Georgia, with market shares of 35% and 20% in the respective
segments. In 2021, Bank of Georgia, GHG, the insurance companies,
and renewable business were the main dividend contributors. Based
on that, S&P expects dividends will surge to GEL90 million-GEL100
million in 2022, in line with the company's expectation. Early
signs of direct impacts from the Russia-Ukraine conflict are
emerging from noncore smaller assets, while as of the end of
first-quarter 2022, core assets were not affected by the ongoing
conflict. For example, GC's loans to investee assets will be
reclassified as equity or quasi-equity instruments totaling
GEL142.7 million ($49.4 million).

The negative outlook reflects the possibility of a downgrade over
the next six-to-nine months.

S&P could downgrade the ratings one notch if the Georgian economy
deteriorates. Under this scenario, it could see:

-- GC's LTV increasing to about 30% or above; and

-- Its cash adequacy ratio weakening to below 1.0x for 2023.

S&P could downgrade GC by more than one notch if the company fails
to enact a credible plan to refinance its 2024 bond maturity or
capital market conditions materially worsen. Under this scenario,
it might see:

-- The ratio of sources of liquidity over expected uses to
deteriorate well below 1.2x; or

-- A material deterioration of access to international capital
markets.

Although not expected, S&P would consider as tantamount to default
a debt restructuring that could be viewed as distressed, or should
the group make material repurchases of its March 2024 notes below
par.

S&P could consider an outlook revision to stable if:

-- GC enacts a credible and committed plan to refinance its
maturities, ensuring ample liquidity buffers;

-- The LTV remains defensive and materially below 30%; and

-- The company's cash adequacy ratios remains healthy at above
1.0x.

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

S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis of Georgia Capital
because all its investments are concentrated on a single emerging
market, namely Georgia, which we view as having high country risk.
GC's governance benefits from a diversified institutional ownership
with no single controlling shareholder, a very high share of
independent directors (five out of the six members), and
transparency requirements through its public listing on the London
Stock Exchange. Environmental and social factors are overall
neutral considerations in our credit rating analysis of GC and its
investee companies. GC's major sector exposure is represented by a
retail pharmacy (22% of the adjusted portfolio value) and hospitals
(18%), which we assess as having low environmental and social
risks."




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G R E E C E
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DANAOS CORP: S&P Upgrades ICR to 'BB', Outlook Positive
-------------------------------------------------------
S&P Global Ratings upgraded Marshall Islands-registered
containership owner and charter Danaos Corp. to 'BB' from 'BB-'.
S&P also raised its issue rating on its senior unsecured debt to
'BB' from 'B+' and revised its recovery rating on it to '3' from
'5' and the rounded recovery estimate to 65% from 25%.

S&P said, "The positive outlook reflects that we could raise the
rating if we believed that Danaos were likely to sustain its
adjusted FFO-to-debt ratio above 50%, our threshold for a 'BB+'
rating, in particular when charter rates start normalizing from the
present all-time highs, which would largely depend on its ability
and willingness to keep adjusted debt around the lower level we
forecast at 2022-end.

"Charter rates are edging up across various containership classes,
with no signs of sustained moderation, contrary to our previous
expectations. Significant and widespread congestion in major
maritime ports and disruption of logistical supply chains are tying
up containership capacity and boosting shipping rates. Since
September 2021, an average of 37% of global containership fleet
capacity was in ports (significantly more than the 2019 average of
31%), according to the Containership Port Congestion Index
published by Clarkson Research, with China and the U.S. west and
east coasts remaining congestion hotspots. We note that widespread
lockdowns in China as well as the Russia-Ukraine conflict's
knock-on effects on global supply chains have aggravated the
already strained situation. This has stimulated a surge in
containership ordering (lifting the containership order book to 25%
of the global fleet as of May 2022, from an all-time low of 8% in
October 2020, according to Clarkson Research) and will likely
trigger a flood of ship deliveries in 2023 and 2024. That said,
containership supply growth is unlikely to surpass demand growth in
the coming months, supporting charter rates. We now forecast that
charter rates could start moderating from late 2022 at the
earliest. Thereafter, as overall industry capacity increases and
vessels on order are delivered from 2023, rates might face a
further correction and ultimately stabilize at profitable levels
that are likely above the 2020 base, according to our base-case
scenario."

Such industry conditions have supported Danaos' recent rechartering
efforts as container liners are locking in shipping capacity in the
market for longer periods. Danaos re-employed 10 vessels in August
2021 and a further 11 vessels in January 2022, with global leading
liner companies at stronger rates and longer durations than in the
previous contracts, increasing its average remaining charter
duration to 3.7 years (from 3.3 years in S&P's August 2021 review)
and its contracted revenue backlog to $2.7 billion through to 2028
(from $2.0 billion). This resulted in contracted vessel operating
days coverage of 99% for 2022, 78% for 2023, and 57% for 2024, thus
partly insulating the company from the industry's above-average
underlying volatility and providing some earnings visibility,
assuming charters deliver on their commitments.

S&P said, "Danaos will achieve record-high EBITDA in 2022 before it
starts moderating in 2023. Underpinned by the current charter
agreements and strong rate momentum, we forecast that Danaos' 2022
EBITDA of close to $750 million will exceed the 2020 level by more
than 2x and our August 2021 base case of up to $650 million. This
will also be much higher than $500 million achieved in 2021, thanks
to the full-year contribution of the vessels acquired during 2021
and as some contracts with higher charter rates kick in. In 2023,
we expect EBITDA of up to $650 million based on Danaos' contracted
revenue backlog and our base-case assumption that charter rates
will start normalizing from late 2022. We assume that some of the
20 ships that are due for re-employment in 2023 will be locked in
at lower rates than in the existing contracts and two recently sold
containerships will leave the fleet, while six new ships on order
will be delivered in 2024 only."

Danaos' credit metrics have improved and will remain at levels
commensurate with a higher rating, despite a moderation of EBITDA
from 2023. EBITDA-to-operating cash flow (OCF) conversion will
remain high, given the relatively low working capital needs of
Danaos' business model, providing the company with persistent
excess cash flow to service annual mandatory debt amortization (of
$70 million-$80 million per year in 2022-2023) and financial
flexibility for growth investments and fleet rejuvenation (in line
with its sustainability goals) as well as against unexpected
operational adversities. S&P said, "We view positively Danaos'
recent early debt-repayment measures that would in aggregate result
in a 30% debt reduction in 2022. We forecast adjusted debt of $930
million as of Dec. 31, 2022, down from $1.3 billion as of Dec. 31,
2021. This will boost credit metrics further in 2022, with our
adjusted FFO to debt likely rising above 70% in 2022 (from 32% in
2021) and debt to EBITDA falling to below 1.5x (from 2.7x in 2021
and 4.7x-7.5x in 2015-2020)."

Danaos' financial flexibility against unexpected operational
adversities is further supported by its marketable securities. S&P
said, "We believe that Danaos' remaining stake in ZIM (about 7.2
million shares valued at about $523 million as of March 31, 2022)
should provide ample financial flexibility, considering the robust
share performance since ZIM's IPO in early 2021 and the underlying
positive industry momentum. However, because it is difficult to
precisely estimate the proceeds until the securities are sold, we
do not quantitatively include these in our base case until
monetized. Danaos may use any proceeds from the sale of these
securities to (partly) finance new ship acquisitions as it did in
2021. We note that since March 2022 the company has monetized about
1.5 million of ZIM shares for a total consideration of $85 million.
Danaos' liquidity will also benefit from $130 million of sales
proceeds from two vessels announced earlier this year to be
received by year-end 2022 and $110 million in dividends from ZIM."

S&P said, "New ship additions and recent rechartering transactions
helped Danaos increase its scale, expand its customers base, and
lengthened its charter profile. Furthermore, we believe Danaos'
current medium-term time charter (T/C) profile, underpinned by
attractive rates, partly shields the company from the industry's
cyclical swings. We understand that the charter profile consists of
fully noncancellable and fixed-rate contracts. Furthermore, Danaos
benefits from good operating efficiency, and predictable operating
costs, with no exposure to volatile bunker fuel prices and other
voyage expenses, which typically under T/C agreements are borne by
counterparties. Although scale provides some competitive advantage,
Danaos remains exposed to volatile container shipping charter
rates, in particular in the event of the counterparty's
nonperformance on charter agreements or default. Furthermore,
Danaos has a narrower business scope than its peer group including
large global transport services providers, with a business model
built around containerships only and large exposure to a few
container liners. Consequently, Danaos' cash flow generation
prospects are susceptible to counterparties'/container liners'
financial capacity and willingness to deliver on their commitments.
That said, Danaos' customers, among others container operators we
rate--CMA CGM S.A., Hapag-Lloyd AG, and A.P. Moller - Maersk
A/S--have improved their free operating cash flow and liquidity,
and reduced debt, resulting in stronger credit metrics in
2020-2021. This robust industry momentum should persist in 2022,
allowing container liners to further expand their financial
flexibility. We realize, however, that the container shipping
industry will remain tied to cyclical supply-and-demand conditions
and vulnerable to low-probability, high-impact events, which
typically depress utilization and charter rates. Industry downturns
in recent years have prompted high-profile financial restructurings
and defaults of the liner companies that charter Danaos' vessels,
such as ZIM and HMM.

"The positive outlook reflects that we could raise the rating in
the next 12 months if we believe that Danaos is able and willing to
maintain adjusted FFO to debt of more than 50%, which is our
threshold for a 'BB+' rating."

Upside scenario

S&P said, "We could raise the rating if we believed that Danaos
were likely to sustain its adjusted FFO-to-debt ratio above 50%,
our threshold for a 'BB+' rating, in particular when charter rates
start normalizing from the present all-time highs. This would
largely depend on its adherence to prudent financial policy and its
ability to keep adjusted debt around the lower level we forecast at
end-2022."

Downside scenario

S&P said, "We could revise the outlook to stable if Danaos'
earnings unexpectedly weakened due to significant deterioration in
charter rate conditions, resulting in adjusted FFO to debt being
unlikely to stay above 50%. Rating pressure would also arise if
container liners' credit quality appeared to weaken unexpectedly,
increasing the risk of amendments to existing contracts, delayed
payments, or nonpayment under the charter agreements.

"A negative rating action could also follow any unexpected
deviations in terms of financial policy, for example, if we believe
that the company is pursuing significant and largely debt-funded
investments in additional tonnage or aggressive shareholder
distributions, which would depress credit metrics."

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

S&P siad, "Environmental factors are a moderately negative
consideration in our credit rating analysis of Danaos, as the
global shipping industry faces a large regulatory workload. This is
reflected in increasingly stringent shipping emission targets,
fluctuating and demanding capital investments, for example in new
vessels powered by alternative fuels and the use of more expensive
emissions-complaint bunkers. That said, the company typically
transfers the risk of fuel price inflation to counterparties via
time charter contracts, which stipulate that the charterer pays for
a ship's running costs. Danaos' management aims over time to
replace aging containerships with new ones equipped with more
fuel-efficient engines. It is also enhancing its energy efficiency
and cut emissions including via bulbous bow optimization, propeller
retrofits, and low friction paints. The company has also installed
exhaust cleaning systems (scrubbers) on 11 of its vessels without
significantly weakening its financial flexibility over 2019-2020."




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

F-BRASILE SPA: S&P Lowers ICR to 'CCC+' on High Leverage
--------------------------------------------------------
S&P Global Ratings lowered its issuer and issue ratings on
aeroengine part maker F-Brasile SpA to 'CCC+' from 'B-'.

The stable outlook indicates that S&P expects F-Brasile's
management to carefully manage liquidity over the next 12 months,
and that its revenue and EBITDA will bottom out in 2022, improving
thereafter.

S&P said, "F-Brasile's credit metrics will further deteriorate in
2022 and we now consider F-Brasile's leverage to be excessively
high. Substantial cost inflation and company's relatively limited
ability to fully pass on the energy cost inflation to its aerospace
clients will lead to lower absolute adjusted EBITDA in 2022,
compared with 2021. We estimate that our adjusted EBITDA for
F-Brasile will fall to EUR38 million-EUR40 million in 2022, from
EUR44 million in 2021. As a result, the adjusted EBITDA margin will
weaken by about 350 basis points, before moderately improving in
2023 to about 15%-16%. In addition, the company's efforts to
gradually reduce its dependence on wide-bodied aircraft, which
represented 41% of group sales in 2021, will further weigh on FOCF
because it will need additional capex to reshape its business. We
anticipate FOCF in 2022 will be negative by about EUR30
million–EUR35 million, strengthening to neutral or moderately
negative in 2023. As a result, leverage is likely to be high and
debt to EBITDA to exceed 10x for 2022-2023, after which credit
metrics may start to moderately improve.

"Substantially higher energy costs will dent F-Brasile's financial
performance and operating profits in 2022 as the company will find
it difficult to pass on the cost inflation to its clients. Given
the material increase in electricity and gas prices, exacerbated by
the ongoing Russia-Ukraine conflict, we now forecast that energy
costs will represent about 9.5% of F-Brasile's sales in 2022.
F-Brasile's cost base typically demonstrates a moderate level of
energy intensiveness, with energy costs historically representing
about 4.0%-4.5% of sales. Although F-Brasile's Industrial division
has short cycles, and therefore energy cost inflation can be
efficiently translated into prices, the group's Aerospace division
will take a hit from higher costs. Furthermore, we assume one-off
costs in 2022 will be roughly on par with the EUR5.4 million
incurred in 2021. As a result, we forecast that F-Brasile's EBITDA
margin will shrink to about 12.5% in 2022, from 16.0% in 2021.

"After two consecutive years of decline, we expect moderate revenue
growth in 2022, reaching EUR300 million-EUR320 million, or
13%-15%.This supports our rating on F-Brasile but it will take time
for new business to generate revenue. We still forecast a gradual
improvement in airline traffic, with revenue passenger kilometers
(RPK) in Europe recovering to 80%-95% of 2019 levels by 2024. This
supports engine sales growth for platforms key to F-Brasile, such
as the Trent XWB 84. Furthermore, the group has managed to win new
business contracts during 2020 and 2021. In addition to supporting
future revenue prospects, this will also allow the group to
gradually diversify away from the wide-body commercial aerospace
segment. Although these factors may support recovery in the
company's financial performance over the medium term, F-Brasile
will need to invest heavily in 2022-2023. As a result, we now
assume its capex to be about EUR30 million in 2022 and EUR25
million in 2023, compared with EUR19.9 million in 2021. F-Brasile's
FOCF will take a hit, but could turn neutral to moderately positive
from 2024. We anticipate that at the end of 2022, cash will
decrease to about EUR35 million from EUR65 million at the end of
2021."

F-Brasile's liquidity position remains adequate, supported by its
cash balance, RCF availability, and absence of material short-term
debt maturities. For the 12 months from April 1, 2022, F-Brasile's
liquidity sources cover its liquidity uses by more than 2.1x. The
company's liquidity position is supported by a cash balance of
about EUR48 million and availability of EUR60 million under the
EUR80 million RCF at the end of March 2022. S&P said, "We do not
anticipate further drawings under the RCF and thus do expect the
springing covenant to be tested under our base case. During the
first quarter of 2022, the company absorbed cash, in line with its
expected seasonal pattern which is affected by the timing of
interest payments. We consider that its cash balance and RCF
availability give F-Brasile the flexibility to manage a difficult
environment in 2022 and 2023."

The stable outlook indicates that F-Brasile's management is likely
to carefully manage liquidity over the next 12 months. In addition,
S&P expects revenue and EBITDA to bottom out in 2022 and improve
thereafter.

S&P said, "We could lower the rating on F-Brasile if cost inflation
were to further escalate, causing cash absorption for the group to
be materially above our current forecast. Under this scenario, the
company's liquidity position could deteriorate such that its
sources over uses fall to below 1.2x.

"Although not planned at this stage, we would consider a downgrade
if the company were to launch a debt restructuring that could be
viewed as distressed or were to make material repurchases of its
2026 notes below par.

"We could raise our rating on F-Brasile if the company were to
improve its profitability, either through higher top-line growth or
by limiting the impact of cost inflation on profit margins,
allowing an improvement in its credit metrics." Such a scenario
could materialize if:

-- FFO cash interest coverage were to improve to sustainably above
1.5x;

-- FOCF is consistently positive; and

-- Debt to EBITDA remains below 8x.

ESG credit indicators: E-2, S-4, G-3

S&P said, "Social factors are a negative consideration in our
credit rating analysis on F-Brasile. A significant portion of
F-Brasile's revenue is derived from wide-body engine platforms
serving the commercial aerospace market, which has been severely
affected by the fallout of the pandemic. We assume air travel and
commercial passenger aircraft production rates will not return to
pre-pandemic levels until 2024 at least, indicating that
F-Brasile's credit profile may remain weakened for an extended
period. At the same time, F-Brasile has taken measures to curb
costs and to secure additional contracts from 2022 onward.

"Governance factors are a moderately negative consideration, as is
the case for most rated entities owned by private-equity sponsors.
We consider that the company's highly leveraged financial risk
profile points to corporate decision-making that prioritizes the
interests of the controlling owners. This also reflects the
generally finite holding periods and a focus on maximizing
shareholder returns."




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

NOMAD INSURANCE: S&P Alters Outlook to Negative & Affirms 'BB' ICR
------------------------------------------------------------------
S&P Global Ratings revised its outlook on Kazakhstan-based insurer
Nomad Insurance Co. to negative from stable. At the same time, S&P
affirmed its 'BB' long-term issuer credit and financial strength
ratings on the insurer. S&P also lowered its Kazakhstan national
scale rating to Nomad to 'kzA+' from 'kzAA-'.

On May 1, 2022, Nomad Insurance declared a solvency deficit,
according to the solvency calculations of The Agency of the
Republic of Kazakhstan for Regulation and Development of the
Financial Market. The outlook revision to negative reflects our
view that the insurer's financial performance could fall short of
the financial projections in the recovery plan it submitted to the
regulator. S&P also lowered the national scale ratings to 'kzA+'
from 'kzAA-'to reflect the above-mentioned risks.

As per the regulations, Nomad Insurance has to submit to the
regulator a recovery plan to bring its solvency in line with
regulation over the next six months. S&P said, "We expect that the
company will have restored it to at least 1x by Aug. 1, 2022. The
reason for the solvency deficit is the insurer's exposure to
distressed assets in Kazakhstani subsidiaries of Russian
banks--represented by deposits and bonds--which accounted for
around 30% of the company's total investment portfolio as of May 1,
2022. We believe these assets are facing spiralling credit risk,
which could lead to additional capital adequacy volatility for
Nomad Insurance."

S&P said, "In our base-case scenario, we assume the company will
comply with the regulatory requirement because it will be able to
reshuffle the investment portfolio and reduce the negative
implications of asset valuation and credit risk exposures to
Russia-related assets over the next six months. We also anticipate
that the company will not pay dividends until the regulatory
solvency margin returns above 1.5x. Therefore, we expect our
capital adequacy to sustain at least at a satisfactory level of
capital over the next 12 months.

"Nomad Insurance remains a profitable insurer, with an 80% net
combined ratio and a return on equity of about 49% as of May 1,
2022. We believe the company's premiums will increase by about 15%
over 2022-2023. We expect Nomad's net combined ratio will be below
85% in 2022, with return on equity of 36%-38%, and net income of
about Kazakhstani tenge (KZT) 6.2 billion-KZT7.0 billion in 2022.
We also expect the company's capital adequacy will improve further
in 2023. We anticipate the insurer will start paying dividends
again in 2023 of 65% of net profits, if solvency improves above
1.5x.

"We will closely monitor how the regulatory solvency margin
improves, as well as Nomad Insurance's investment mix and how its
capital and earnings evolve in the next 12 months.

"The negative outlook reflects ongoing risk that Nomad Insurance's
expected solvency buildup and our capital adequacy assessment might
fall short of projections the insurer has submitted in its recovery
plan, given the uncertain operating and investment environment the
industry faces.

"We could lower the ratings in the next 12 months if the company's
regulatory solvency ratio does not improve to consistently above
the required minimum, or our capital adequacy deteriorated below
'BBB'. This could occur alongside further deterioration in the
average credit quality of invested assets and would increase the
risk of regulatory intervention. We could also downgrade Nomad
Insurance if its capital position weakens due to materially
worse-than-expected operating performance or investment losses, or
considerably higher dividend payouts than we anticipate. Failure to
meet the regulatory minimum expectation at the end of the
regulatorily defined waiver period, which is not our base-case
assumption, could lead to a multinotch downgrade.

"We could revise the outlook to stable over the next 12 months if
Nomad Insurance restores its regulatory solvency ratio in line with
regulatory requirements, and sustainably strengthens its capital
adequacy by transferring its deposits and investments into assets
exposed to lower credit risk while preserving solid competitive
standing and profitability."

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


SINOASIA B&R: S&P Alters Outlook to Negative & Affirms 'BB' ICR
---------------------------------------------------------------
S&P Global Ratings revised the outlook on its global scale ratings
for Kazakhstan-based insurer Sinoasia B&R Insurance (Sinoasia) to
negative from stable. S&P also affirmed its 'BB' global scale
long-term issuer credit and financial strength ratings and its
'kzA+' Kazakhstan national scale rating on Sinoasia.

On May 1, 2022, Sinoasia declared a solvency margin decline to
levels just above minimum regulatory requirements, according to the
solvency calculations of the Agency of the Republic of Kazakhstan
for Regulation and Development of the Financial Market. The
negative outlook reflects S&P's view that Sinoasia's capital
buffers might be under pressure and performance may fall short of
the recovery plan it submitted to the regulator.

S&P said, "We understand that Sinoasia is taking steps to comply
with the solvency margin requirement. The primary reason for the
solvency decline is a negative revaluation of its investment
portfolio on the back of volatility in financial markets and the
tenge exchange rate. However, we note that Sinoasia's average asset
quality remained 'BBB' at May 1, 2022, while its exposure to
distressed assets in Russia--represented by government debt and
corporate bonds--was limited and accounted for less than 1% of the
total investment portfolio at the same date (less than 3% at Feb.
1, 2022).

"Over the first four months of 2022, Sinoasia's net premium written
increased 98%, well above our net premium growth expectation of
25%. The increase was spurred by big contracts in health insurance,
new products developed in cooperation with Bank CenterCredit, and
gradual geograpical expansion. Considering more big contracts are
under discussion, we anticipate that premium growth may reach or
even exceed 100% in 2022. This rapid growth, combined with the
revaluation of investments, will strain capital adequacy, according
to our capital model, which we expect will decline to the 'BBB'
level in 2022-2024 from above our 'AAA' benchmark at Dec. 31, 2021.
Although a 'BBB' level of capital remains satisfactory and
sufficient to support our current ratings on Sinoasia, we expect
that general macroeconomic challenges and high growth might
pressure our financial risk profile assessment.

"We note that Sinoasia has submitted a recovery plan to the
regulator, under which it plans to recapitalize by issuing KZT1
billion of preferred shares (about 30% of current total capital).
In our base-case scenario, we assume that the company will comply
with regulatory requirements so that the instrument can be included
in the regulatory capital calculation. We will also assess the
instrument under our methodology for possible inclusion in our
capital adequacy analysis.

"In our view, the company's capital and earnings may be volatile in
the next 12 months. We forecast Sinoasia will achieve moderate
profitability in 2022 with a return on equity of about 9%-11% on
average, albeit with the potential for volatility. We base this on
our assumption of a combined (loss and expense) ratio of about 100%
and investment yields of about 6.0%-6.5% in the same period. In our
base case, we assume that the company will maintain its capital at
least at satisfactory levels in 2023 as management actions are
implemented and underwriting results remain sustainable.

"We therefore affirmed our global scale ratings and will closely
monitor how the regulatory solvency margin improves, as well as
Sinoasia's asset exposure and how its capital and earnings evolve
in the next 12 months.

"The negative outlook reflects that Sinoasia's expected recovery in
solvency and our capital adequacy assessment may fall short of
targets, given the uncertain operating and investment environment
the industry faces.

"We could lower the ratings in the next 12 months if the company's
regulatory solvency ratio does not improve to consistently above
the required minimum, or we see a significant and sustained
deterioration in the capital base caused by more aggressive growth,
unexpected losses not compensated by capital injections, or higher
dividends than we expect, with capital adequacy under our capital
model deteriorating to levels sustainably below the 'BBB'
benchmark."

This may occur alongside deterioration in the company's risk
profile, both in terms of product and investment risks, and would
increase the chance of regulatory intervention. Failure to meet the
regulatory minimum at the end of the defined waiver period, which
is not our base-case assumption, could lead to a multi-notch
downgrade.

S&P said, "We could also lower the ratings if Sinoasia's
competitive position is undermined, for example, by increased
competition in its niche, or unexpected underwriting losses and
earnings volatility in new business lines. Furthermore, changes in
management that we consider detrimental for the company's credit
profile could affect the ratings.

"We may revise the outlook to stable over the next 12 months if
Sinoasia restores its regulatory solvency ratio, while maintaining
our capital adequacy assessment at least at satisfactory levels,
preserving its market position and asset quality."




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

ELM BV: S&P Puts BB+ Rating on 273 Repack Notes on Watch Pos.
-------------------------------------------------------------
S&P Global Ratings placed on CreditWatch positive its 'BB+' credit
ratings on ELM B.V.'s series 273 repack notes.

The rating action follows its May 31, 2022, rating action on
Firmenich International S.A.

Under S&P's "Global Methodology For Rating Repackaged Securities"
criteria, it weak-links its rating on ELM's series 273 repack notes
to the lowest of:

-- S&P's issue rating on the junior subordinated €750 million
notes issued by Firmenich International;

-- S&P's issuer credit rating (ICR) on The Bank of New York Mellon
(London Branch) as the bank account and custodian, which it derived
from its ICR on The Bank of New York Mellon as branch parent; and

-- S&P's ICR on UBS AG (London Branch) as fee payer.




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

UZBEKISTAN: S&P Affirms 'BB-/B' Sovereign Credit Ratings
--------------------------------------------------------
S&P Global Ratings, on June 3, 2022, affirmed its 'BB-/B' long- and
short-term foreign and local currency sovereign credit ratings on
Uzbekistan. The outlook is stable.

The transfer and convertibility assessment (T&C) is 'BB-'.

Outlook

S&P said, "The stable outlook reflects our expectation that
Uzbekistan's comparatively strong fiscal and external stock
positions should help its economy withstand negative macroeconomic
spillover effects from the Russia-Ukraine conflict over the next 12
months. We expect real GDP growth to average about 5% annually from
2023."

Downside scenario

S&P could lower the ratings if Uzbekistan's fiscal and external
positions weaken more than it currently expects. This could, for
instance, result from more significant fallout from the
Russia-Ukraine conflict for Uzbekistan via the trade and
remittances channel. Beyond the conflict, it could also be the case
if public and financial sector external debt continues to rise at a
fast pace, in contrast to our current expectation of the increase
moderating.

In addition, the ratings could come under pressure if dollarization
levels in the economy increase significantly, or the financial
performance of key state-owned enterprises (SOEs) weakens, leading
to the transfer of contingent liabilities to the government's
balance sheet.

Upside scenario

Although unlikely in the next year, S&P could raise the ratings if
Uzbekistan's economic reforms and increased integration with the
global economy result in stronger economic growth potential and
improving fiscal and external metrics.

Rationale

S&P expects that the recession in Russia, as well as sanctions
introduced on multiple Russian entities and economic sectors, will
weigh on activity in Uzbekistan given the close links between the
two countries. Russia is Uzbekistan's largest trading partner,
accounting for 12% of exports and 23% of imports. In addition,
Uzbekistan is heavily reliant on remittances from Russia. In 2021,
Uzbekistan received $8.1 billion (12% of GDP) in remittances, 70%
of which came from Russia. S&P said, "Russian entities now under
sanctions had pledged financing for multiple projects in
Uzbekistan, especially in the mining and energy sectors. Trade
disruptions, a decline in remittances and narrowing of financing
sources will, in our view, drag on economic growth and slow the
government's fiscal consolidation plans this year. We have
therefore lowered our real GDP growth forecast to 3.5% from 5.5%
for 2022."

S&P said, "Nevertheless, we expect Uzbekistan's economy to weather
the economic shock and uncertainty over the duration of the
Russia-Ukraine conflict, with growth rebounding in 2023. After
rising in recent years, net general government debt also remained
contained at 13% of GDP in 2021, providing policy space to support
the economy. In addition, ongoing economic reforms should keep
growth prospects strong in the medium term.

"Our ratings on Uzbekistan are supported by the economy's net
external creditor position and the government's moderate net debt
burden, although these strengths have moderated over the past five
years." Uzbekistan's fiscal and external stock positions have
historically benefitted from the policy of transferring some
revenue from commodity sales to the Uzbekistan Fund for
Reconstruction and Development (UFRD). In addition, external
borrowing was very limited for many years under the previous regime
of Islam Karimov.

S&P said, "Our ratings are constrained by Uzbekistan's low economic
wealth, measured by GDP per capita, and low, albeit improving,
monetary policy flexibility. In our view, policy responses are also
difficult to predict, given the highly centralized decision-making
process and less developed accountability and checks and balances
between institutions."

Institutional and economic profile: The Russia-Ukraine conflict has
temporarily muted Uzbekistan's growth prospects

-- Uzbekistan's GDP growth is set to decelerate to 3.5% in 2022
from 7.4% last year because of fallout from the recession in
Russia.

-- Economic reforms will continue but likely slow as they become
more difficult, for instance, plans to partially privatize several
SOEs.

-- Although S&P expects continuing institutional reforms, it
believes decision-making will remain centralized and the perception
of corruption high.

In 2021, Uzbekistan's economy rebounded strongly, expanding 7.4%.
This recovery was investment-led and broad-based across sectors,
following the lower 1.9% growth in 2020 due to the COVID-19
pandemic. S&P said, "However, we expect expansion will slow to 3.5%
this year as Uzbekistan's largest trading partner, Russia, enters a
deep recession. In our view, re-orienting trade and supply chains
will take time, reduced remittances from Russia will negatively
affect consumption, and planned funding from Russian entities now
under international sanctions will need to be replaced." These
factors could be partially mitigated by possible re-direction of
some trade involving Russia through Uzbekistan as direct trade
flows between Russia and other partners becomes more difficult.

S&P said, "We expect Uzbekistan to maintain a neutral position on
the Russia-Ukraine conflict, balancing its close relationship with
Russia without risking secondary sanctions. As economic activity
lost from the Russia-Ukraine conflict gradually recovers, we
anticipate GDP growth will return to 5.0% in 2023, before averaging
5.5% in the outer years of our forecast period, although we
acknowledge uncertainty as the duration of the conflict and
sanctions on Russia are unknown."

In addition, ongoing investment programs and SOE sector
reforms--including the modernization of operations to support cost
recovery, development of the nascent private sector, and
improvements to the business environment--will help support growth.
S&P notes that Uzbekistan's growth in the past five years was
heavily investment-led, with the investment to GDP ratio one of the
highest globally at 40% at year-end 2021. The government previously
borrowed externally to support projects in the electricity, oil and
gas, transportation, and agricultural sectors. Globally, the
country is one of the top 20 producers of natural gas, gold,
copper, and uranium.

One focus of the government's economic reform agenda is improving
the operations of SOEs and state-owned banks, with the aim to fully
or partially privatize many of them by year-end 2023. The
government has an ambitious privatization schedule for 2022 and
2023 with seven government-related entities (GREs) a year planned
for initial or secondary public offerings, selling up to 25%
stakes. Major SOEs are implementing measures to improve corporate
governance and increase transparency, including via audited
financial statements and splitting off noncore assets. Recently,
the state sold its shares in Coca-Cola Bottlers Uzbekistan Ltd. to
investors from Turkey and international investors bought into
Ucell, the largest telecommunications company in Uzbekistan. In
S&P's view, increased uncertainty over the business climate in the
Commonwealth of Independent States region resulting from the
Russia-Ukraine conflict could delay privatizations. For instance, a
memorandum of understanding was signed for the partial sale of
Ipoteka Bank (the fifth largest in the country) to a Hungarian bank
at year-end 2021 but the sale has been delayed because of the
conflict.

S&P considers that decreasing the state's involvement in the
economy could improve productivity, attract foreign direct
investment (FDI), and reduce budget outflows. The IMF estimates
that half of Uzbekistan's recorded economic output comes from SOEs.
The government is working to improve the business environment in
the economy and expand the private sector, for instance, by easing
restrictions on land ownership for the agricultural sector.
Attracting FDI is a key priority for the government. However, FDI
inflows remain low and concentrated in the extractive industries,
particularly natural gas. Net FDI increased to $2.0 billion in 2021
from $1.7 billion in 2020, still down from $2.3 billion in 2019.

Uzbekistan's population is young. Almost 90% are at or below
working age, which presents an opportunity for labor supply led
growth. However, it will remain challenging for job growth to match
demand, in S&P's view. Weakness in the Russian economy, where most
of Uzbekistan's permanent and seasonal expatriates are employed,
could further exacerbate this issue. Despite improvements in recent
years, GDP per capita remains low, forecast at $2,000 by year-end
2022.

S&P said, "In our view, Uzbekistan has made strong progress on its
reform and economic modernization agenda since 2017, improving the
economy's productive capacity and institutions. Reforms have
included measures to increase the judiciary's independence, ease
restrictions on free expression, and increase the government's
accountability. The implementation of an anti-corruption law, an
increase in transparency regarding economic data, the
liberalization of trade and foreign exchange regimes, and planned
privatizations of SOEs are among the other changes. The government
has also passed laws to privatize agricultural and nonagricultural
land and undertaken reforms to the agricultural sector, including
the abolition of state orders for cotton and the recent
liberalization of wheat prices. We expect further energy tariff
increases this year, demonstrating reform commitment despite the
difficult environment amid the Russia-Ukraine conflict. Fiscal
transparency has increased with the government bringing
extrabudgetary spending, such as that channeled from the UFRD, onto
the budget."

However, Uzbekistan's reform momentum is starting from a low base.
S&P also considers that previous reform efforts have already been
slowed by the COVID-19 pandemic and now the Russia-Ukraine conflict
could be another drag on momentum.

S&P said, "Overall, we still view Uzbekistan's checks and balances
between institutions as weak while decision-making is highly
centralized under the president's office, making policy responses
difficult to predict. Following decades of highly centralized rule
by former president Islam Karimov, there was a smooth transfer of
power to President Shavkat Mirziyoyev in 2016, and he won a second
term in the October 2021 election. International observers noted
the lack of competition in the election. In our view, significant
uncertainty over future succession remains."

Flexibility and performance profile: A pronounced rise in fiscal
and external debt in recent years but we expect the pace of growth
to moderate

-- S&P forecasts Uzbekistan's current account deficits will
persist, averaging 6% of GDP through 2025. These will be funded
through a combination of net FDI and debt.

-- S&P expects net general government debt to average close to 20%
of GDP over the next four years, which it still views as contained
in a global comparison.

-- Despite improvements in monetary policy in recent years, S&P
still views the central bank's operational independence as
constrained, while loan dollarization remains elevated at close to
50%.

The general government deficit was 5.3% of GDP in 2021, up from
4.3% in 2020, because of pent-up capital expenditure (capex) from
2020. S&P said, "We expect a deficit of 5.0% of GDP in 2022 as the
government supports the economy against the fallout from the
Russia-Ukraine conflict. Measures include additional social
spending for those with reduced remittance income, support to ease
the effects of higher food prices, financial resources for
exporters, and increased pension allowances. Thereafter, we expect
gradual fiscal consolidation, as capex moderates over the forecast
period, easing growth in total expenditure while revenue generation
and tax collection increase.” The government implemented tax
reforms in 2019 that simplified the code and lowered some rates,
helping expand the tax base and increase collections. As the
government works to reduce the grey economy and operations at SOEs
improve, tax revenue should also increase.

At the same time, risks to S&P's fiscal projections remain,
including from government revenue reliance on the sale of
commodities, such as gold, the prices of which can be volatile.
Social spending also makes up about 50% of government expenditure
and can be difficult to adjust for political reasons.

Uzbekistan's gross general government debt stood at 35% of GDP at
year-end 2021, having consistently increased from under 10% of GDP
at year-end 2016. S&P said, "In our estimate of general government
debt, we include external debt of SOEs guaranteed by the
government, due to the ongoing support the government provides to
them. We expect a further rise in gross government debt to about
40% of GDP by 2023 before stabilizing at about that level over the
medium term." The government recently began setting yearly limits
on external loan signings. Loan agreements fell to $5 billion in
2021 from almost $9 billion in 2019. The limit for 2022 is $4.5
billion.

The government's debt is almost all external and denominated in
foreign currency, making it susceptible to exchange rate movements.
Besides the outstanding Eurobonds ($2.6 billion) and local currency
debt ($437 million), the remaining portion is to official
creditors, split about equally between bilateral and multilateral
lenders. Because of the high proportion of official lenders, the
interest burden remains low. S&P forecasts government interest
payments at just 2% of revenue on average through 2025.

On a net basis, Uzbekistan crossed into a fiscal debt position in
2019, although at a level that remains contained relative to that
of peers. S&P said, "We expect net general government debt will
increase to 23% of GDP by 2025. The government's assets, at just
under 25% of GDP, are mostly kept at the UFRD. Founded in 2006, and
initially funded with capital injections from the government, the
UFRD receives revenue from gold, copper, and gas sales above
certain cutoff prices. We include only the external portion of UFRD
assets in our estimate of the government's net asset position
because we view the domestic portion, which consists of loans to
SOEs and capital injections to banks, as largely illiquid and
unlikely to be available for debt-servicing if needed."

Uzbekistan's exports are still heavily reliant on commodities and
gold is the main export good. S&P expects gold prices to decline
over its forecast period to $1,800 per ounce (/oz) in 2022,
$1,600/oz in 2023, and $1,400/oz in 2024 and thereafter. Increased
copper prices should support exports over the forecast period.
Meanwhile, natural gas exports will likely decline further as the
expanding economy's domestic needs for gas and electricity
increase.

Remittances are also an important component of Uzbekistan's current
account, given the large number of citizens working abroad,
particularly in Russia. S&P said, "We expect a drop in remittances
of about 30% while the need to re-route trade will slow export
growth, increasing the current account deficit to 8% of GDP in
2022, up from 7% in 2021. We forecast current account deficits of
6% of GDP on average over the next four years, partly fueled by
imports of capital and high technology goods. The deficits will be
funded through a combination of net FDI and debt flows."

Although Uzbekistan remains in a net external creditor position
vis-a-vis the rest of the world of 26% of GDP, the country's gross
external debt has been rising at a fast pace in recent years,
particularly within the public and financial sectors. S&P said, "In
our view, this increase primarily reflects the opening of the
economy and its significant investment and development needs. We
note that a large proportion of the rise is attributed to official
rather than commercial creditors--both for the public as well as
banking sectors. Nevertheless, we consider that, if this continues,
sustained growth in external leverage could present risks,
particularly if some of the related debt-funded projects fare worse
than expected. Our current external forecasts are based on the
expectation of a pronounced moderation in the pace of foreign debt
accumulation over the forecast horizon."

Uzbekistan's usable reserves increased sharply to $24.5 billion in
2020 from $18.3 billion in 2019 because of rising international
gold prices. They increased further to $26.8 billion at year-end
2021, attributable to a higher volume of gold held by the Central
Bank of Uzbekistan (CBU). S&P said, "We include in our estimate of
usable reserves the central bank's significant monetary gold
holdings. The CBU is the sole purchaser of gold mined in
Uzbekistan. It purchases the gold with local currency, then sells
dollars in the local market to offset the effect of its
intervention on the Uzbekistani sum. We do not include UFRD assets
in the central bank's reserve assets but consider them separately
as fiscal reserves. Our view is supported by the budgetary use of
external UFRD assets in the domestic economy over the past four
years, with this portion declining to an estimated $8.6 billion at
year-end 2021 from about $12.3 billion in 2017."

Uzbekistan's monetary policy effectiveness has been on an improving
trend in recent years. One of the most significant reforms in that
regard was the liberalization of the exchange rate regime in
September 2017 to a managed float from a crawling peg, which was
heavily overvalued compared to the parallel-market rate. The
central bank intervenes in the foreign exchange market
intermittently to smooth volatility and mitigate the increase in
local currency from its large gold purchases.

The CBU is also moving toward inflation targeting, with an official
aim to reach 5% inflation by 2023, although S&P currently does not
view this as achievable, particularly amid global price pressures.
Although inflation has been on a declining trend, higher imported
inflation this year will likely increase the average annual rate to
almost 13% from 11% in 2021. Growth in public sector wages and the
liberalization of regulated prices should also add to inflationary
pressure over the forecast period. In March the CBU raised its
policy rate to 17% from 14%, which should help fight inflationary
pressures.

S&P said, "We consider that Uzbekistan's monetary policy
flexibility remains constrained by the lack of perceived
operational independence at the CBU. Domestic dollarization also
remains high at close to 50% of resident loans and 40% of deposits,
even though it has declined from more elevated levels. The large
drop in dollarization at year-end 2019 was due to the transfer of
$4 billion in U.S.-dollar-denominated loans to the UFRD's balance
sheet from banks. The UFRD-funded loans had been lent via banks to
SOEs. In addition, to improve capitalization in the system, the
UFRD granted about $1.5 billion in loans to banks to convert into
local currency and retain as equity. Deposit dollarization was 39%
in April 2022 and we expect local currency deposit growth will
outpace that in foreign currency because of interest rate variances
and differences in the reserve requirement for banks. In our view,
declining dollarization should help ultimately improve the
effectiveness of monetary policy transmission mechanisms, although
the process will likely be only gradual.

"We expect that Uzbekistan's banking sector will continue to show
resilience over the next two years despite our view that worse than
previously assumed macroeconomic conditions, combined with
heightened geopolitical uncertainty, will to some extent impede
post-pandemic recovery. We anticipate that credit growth will
moderate to 15%-20% in 2022-2023 from about 30% in 2020 due to more
stringent regulatory requirements and increased uncertainty. We
consider that economic recovery and low penetration of retail
lending in Uzbekistan (with household debt to GDP at below 10% in
2021, among the lowest in the peer group) will remain among the key
factors contributing to lending demand growth in the next few
years. We believe that credit costs will remain elevated, at about
2% in 2022 from 2.1% in 2021. We also expect that nonperforming
loans (NPLs) under International Financial Reporting Standards will
remain high at 4%-6% in 2022-2023. The funding profiles of
Uzbekistani banks are largely stable, supported by funding from the
state, growth in corporate and retail deposits, and a notable
increase in external funding over the past few years. However, this
is expected to slow in 2022."

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

  RATINGS AFFIRMED

  UZBEKISTAN

  Sovereign Credit Rating                 BB-/Stable/B

  Transfer & Convertibility Assessment    BB-

  Senior Unsecured                        BB-


UZBEKISTANI FERGANA: S&P Assigns 'B+' LT ICRs, Outlook Stable
-------------------------------------------------------------
S&P Global Ratings, on June 3, 2022, assigned its 'B+' local and
foreign currency long-term issuer credit ratings to the Uzbekistani
Fergana Region. The outlook is stable.

Outlook

S&P said, "The stable outlook reflects our assumption that in the
next 12 months Fergana will maintain a strong budgetary performance
on the back of the transfers from the central government. In
addition, we assume that the region will have zero debt in the
medium term, absent changes in the national regulation that
currently prohibits local and regional governments (LRGs) from
commercial borrowing."

Downside scenario

S&P might lower the ratings if it observed a weakening of financial
indicators, leading to a pronounced deficit after capital accounts
and rapid debt accumulation.

Upside scenario

S&P might consider an upgrade if it observed an improvement in the
institutional framework under which Fergana operates or if the
region's wealth level increased.

Rationale

The ratings on Fergana are supported by our assumption that the
region will continue reporting a surplus after capital accounts to
comply with national regulation. S&P also factor in that the region
probably won't resort to commercial borrowing over the coming
several years. The ratings are constrained by the very volatile and
centralized Uzbekistani institutional framework for LRGs, the
region's low wealth--with local GDP per capita at about $1,100--and
management's limited flexibility.

A volatile framework in Uzbekistan and low wealth levels are the
main rating constraints

Fergana operates under a volatile institutional setting. In S&P's
view its budgetary flexibility is affected by the highly
centralized decision-making process. The central government's
stance on key taxes, transfers, and expenditure responsibilities
changes frequently. The political practices, procedures, and
regulatory environment are in nascent stages. The framework
undergoes regular modifications, upsetting the stability of both
the region's revenue sources and its spending mandates. The central
government oversees LRGs' activities, requiring the regions to
maintain a balanced budget and limiting their commercial borrowing.
The visibility on systemic changes remains low, consequently
undermining reliable medium-term planning at the local level.
Furthermore, the substantial investment requirements and a high
share of social expenditure continue to restrict spending
flexibility of Uzbekistani LRGs, including Fergana Region.

S&P said, "We believe that the decision-making ability of Fergana's
financial management team is markedly limited by the centralized
institutional settings in Uzbekistan. We note that the region's
management started medium-term planning in 2018, and there are some
discrepancies between forecast and actual financial indicators. In
our view, debt and liquidity management practices are in nascent
stages, and their effectiveness has yet to be tested. These factors
constrain the region's creditworthiness.

"We view Fergana's economy as very weak in a national and
international context, mostly due to low GDP per capita. Moreover,
we believe the economy is relatively concentrated on agriculture.
The region accounts for 11% of the country's population but
contributes only 6% of GDP. Nevertheless, we expect the region's
economy to expand parallel to that of Uzbekistan, at 7% real GDP
growth on average per year until 2024, propelled by developments in
the industrial and service sectors."

The budgetary performance should remain strong, and the debt burden
will stay very low

S&P said, "We expect Fergana to continue posting a budget surplus
over the next three years, in line with the national legislation.
We anticipate that revenue sources will be volatile, given the
central government's track record of revising tax shares. We also
project a slight increase in capital expenditure over the next few
years, following the region's objective to invest more in
infrastructure development predominately using central budget
sources of financing.

"We believe that substantial infrastructure development needs will
curb economic development and budget flexibility. However, the
funding backlog is unlikely to lead to material debt accumulation
since the national legislation currently prohibits LRG commercial
borrowings. At this time, the region's commercial debt is zero.

"We understand Fergana oversees some state-owned enterprises
located in the region. It has no stakes in regional enterprises,
with no track record of the regional government providing
subsidies, capital injections, or extraordinary support to the
relevant companies. The districts and municipalities are
financially healthy thanks to central government support.

"We assume that Fergana's liquidity position will remain solid,
particularly considering the almost zero debt. However, we believe
that the coverage ratio might fall sharply if the region attracts
debt over the longer term. That said, this is not our base case.
Fergana is eligible to receive short-term interest-free budget
loans to cover liquidity shortages. At the same time, we believe
that the access to external funding is limited, due to the
weaknesses of the capital market and banking sector in Uzbekistan.

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

  NEW RATING

  FERGANA REGION

   Issuer Credit Rating        B+/Stable/--




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

ADIENT GLOBAL: Moody's Affirms B2 CFR & Alters Outlook to Stable
----------------------------------------------------------------
Moody's Investors Service affirmed the ratings of Adient Global
Holdings Ltd, including the corporate family rating at B2, the
Probability of Default Rating at B2-PD and the rating on the
company's senior unsecured debt at B3. Concurrently, Moody's
affirmed the senior secured rating at Adient US LLC at Ba3. The
outlooks were changed to stable from positive. The Speculative
Grade Liquidity Rating of SGL-2 is unchanged.

The rating affirmations and change in outlooks to stable reflect
Moody's expectation that global light vehicle production will
remain uneven through 2022. This is due to lingering supply chain
challenges (semiconductor and parts shortages) which have been
exacerbated by Covid lockdowns in China and the Russian-Ukraine
conflict. The action also anticipates continued margin pressure
from higher labor, energy and freight expenses. Favorably, Adient
has demonstrated progress in recovering some costs through ongoing
negotiations with customers and has repaid $1.4 billion of debt
since September 2020 using proceeds from the sale of the Yanfeng
Adient Seating Co., Ltd. (YFAS) joint venture and cash on the
balance sheet.

Governance considerations were a factor in this rating action as
debt-to-EBITDA remains high despite the sizable reduction in debt.
 As a result, Moody's changed Adient's Governance Issuer Profile
Score (IPS) to G-4 from G-3.  Moody's added that financial
leverage is especially elevated when considering the inherent
cyclicality in the automotive industry, as shown by the lower, and
more volatile, vehicle production volumes since 2020.

Affirmations:

Issuer: Adient Global Holdings Ltd

Corporate Family Rating, Affirmed B2

Probability of Default Rating, Affirmed B2-PD

Senior Unsecured Regular Bond/Debenture, Affirmed B3 (LGD5)

Issuer: Adient US LLC

Senior Secured Bank Credit Facility, Affirmed Ba3 (LGD2)

Senior Secured Regular Bond/Debenture, Affirmed Ba3 (LGD2)

Outlook Actions:

Issuer: Adient Global Holdings Ltd

Outlook, Changed To Stable From Positive

Issuer: Adient US LLC

Outlook, Changed To Stable From Positive

RATINGS RATIONALE

Adient's ratings reflect its position as the leading global
supplier of automotive seating and related components, strong
regional and customer diversification and long-standing
relationships with all major automotive original equipment
manufacturers (OEM). These positives are balanced with high
financial leverage, modest margins and negative free cash flow
exacerbated by restructuring outlays, a working capital buildup and
dividends paid to non-controlling interests.

Previous expectations that global light vehicle production would
recover during Adient's 2022 fiscal year ending September 30, 2022
have not materialized as a shortage of semiconductors has lingered
due to shocks to the automotive supply chain arising from the
Ukraine conflict and the lockdowns in China. These disruptions have
contributed to elevated freight, energy and labor costs, which are
expected to impact Adient's fiscal year 2022 earnings by about $125
million, in addition to the approximately $475 million impact from
lost volume and temporary operating inefficiencies driven by
unstable production runs at Adient's customers.  

At the same time, the company has demonstrated an ability to
improve recovery of elevated steel and foam chemical costs and to
shorten the time lag for reimbursement to less than two quarters.
These actions have enabled Adient to reduce its projected earnings
impact from higher commodity costs to less than $15 million for
fiscal year 2022 versus a previous estimate of $95 million.
 Accordingly, Moody's expects debt-to-EBITDA (inclusive of Moody's
adjustments, and excluding equity income) to fall just below 6x and
the EBITA margin to remain quite modest at under 1.5% for the
fiscal year ending September 30, 2022.  A material improvement in
these metrics is contingent upon a more meaningful recovery in
production volumes, the timing of which is highly uncertain at this
point.

The stable outlook considers the company's reduced leverage from
recent debt redemptions, solid liquidity profile, its ongoing
progress in obtaining cost recoveries from customers and Moody's
expectation for results to improve considerably as OEM production
rates normalize.

The SGL-2 Speculative Grade Liquidity Rating reflects Moody's
expectation for Adient to maintain good liquidity into 2023
supported by a robust cash balance of $1.1 billion and $816 million
in availability under Adient US LLC's unrated $1.25 billion
asset-based lending facility (ABL) expiring in May 2024. Cash is
expected to drop modestly, given thin operating margins and working
capital outflows which will lead to negative free cash flow in the
current fiscal year.

Adient enters into supply chain financing programs to sell accounts
receivable without recourse to third-party financial institutions.
Amounts under these programs are estimated at about $150 million at
March 31, 2022. While not expected, if the company is unable to
maintain and extend these receivable programs, additional
borrowings under the revolving credit facility would be required to
meet liquidity needs.

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

The ratings could be upgraded with a sustained recovery in
automotive vehicle production levels, leading to meaningful
progress towards improved earnings and breakeven/positive free cash
flow. Debt-to-EBITDA below 5x (excluding equity income from joint
ventures) would also be a key consideration for positive rating
action. The ability to manage rising raw material inputs and other
costs and good execution of continued restructuring actions, which
should ultimately translate into margin expansion, will also be
viewed favorably.

The ratings could be downgraded due to the inability to improve
margins, the loss of or meaningful decline in volume from a major
customer or indications that the company will be unable to generate
positive free cash flow over the next 12-18 months. Weaker
liquidity, including increased reliance on the ABL to go along with
a meaningfully lower cash balance, could also result in a negative
rating action.

Adient plc, the parent company of Adient Global Holdings Ltd, is
one of the world's largest automotive seating manufacturers with
longstanding relationships with the largest global OEMs in the
automotive space. Automotive seating solutions include complete
seating systems, frames, mechanisms, foam, head restraints,
armrests, trim covers and fabrics. Adient operates in the Chinese
automotive seating market through several joint ventures. Revenue
for the latest twelve months ended March 31, 2022 was approximately
$13 billion.

The principal methodology used in these ratings was Automotive
Suppliers published in May 2021.


CABLE & WIRELESS: Moody's Alters Outlook on 'Ba3' CFR to Stable
---------------------------------------------------------------
Moody's Investors Service has affirmed the corporate family rating
of Cable & Wireless Communications Limited (CWC) at Ba3. At the
same time, Moody's affirmed the Ba3 ratings on CORAL-US CO-BORROWER
LLC (Coral-US) and Sable International Finance Limited (SIFL), and
the B2 senior unsecured ratings of C&W Senior Finance Limited. All
outlooks were changed to stable from negative.

The change of CWC's outlook to stable from negative reflects
Moody's expectation that CWC credit metrics will gradually recover
as the company continue with its focus on cost controls, integrates
the acquisition of Claro Panama, benefits from the increase in
tourism activity and relaxation of confinement rules in Panama and
the Caribbean.

While inflationary pressures, political instability and FX
volatility continue to be risks, CWC's ratings affirmation
considers its strong liquidity and the company's sound business
model with leading market positions in the countries in which it
operates, supportive of strong profitability. The Ba3 CFR takes
into consideration the company's large exposure to emerging
economies and increased competitive pressures in some of its
largest markets.

Affirmations:

Issuer: C&W Senior Finance Limited

GTD Senior Unsecured Regular Bond/Debenture, Affirmed B2

Issuer: Cable & Wireless Communications Limited

Corporate Family Rating, Affirmed Ba3

Issuer: CORAL-US CO-BORROWER LLC

GTD Senior Secured Bank Credit Facility, Affirmed Ba3

Issuer: Sable International Finance Limited

GTD Senior Secured Bank Credit Facility, Affirmed Ba3

GTD Senior Secured Regular Bond/Debenture, Affirmed Ba3

Outlook Actions:

Issuer: C&W Senior Finance Limited

Outlook, Changed To Stable From Negative

Issuer: Cable & Wireless Communications Limited

Outlook, Changed To Stable From Negative

Issuer: CORAL-US CO-BORROWER LLC

Outlook, Changed To Stable From Negative

Issuer: Sable International Finance Limited

Outlook, Changed To Stable From Negative

RATINGS RATIONALE

The affirmation of CWC's Ba3 CFR is also supported by its solid
liquidity and Moody's expectation that, the company will continue
generating positive free cash flow. Liquidity is further supported
by a large cash balance of $541 million as of March 2022 and its
fully available $630 million committed revolving credit facilities
($580 million due in January 2027, and $50 million due June 2023).
CWC does not face any large debt maturity before 2027.

The effects of the pandemic hit CWC due to its large portion of
revenues coming from the B2B (36%, with about two thirds coming
from governments and enterprises and one third SME's, including
hospitality) and mobile (21% of total) amid marked GDP contractions
(-7% to -18%) in 2020 in the countries in which CWC operates.

This led CWC's Moody's adjusted leverage to persistently hover at
5.5 times during 2021. As of March 2022, CWC's debt/EBITDA ratio of
5.2x, is still high for the Ba3 rating category. Nonetheless,
Moody's expects that CWC continues its path towards lower leverage,
at 4.7x by 2023. Despite increased competition, CWC maintained a
solid Moody's adjusted EBITDA margin of close of 38.1% for the last
twelve months ended March 2022, following 37.7% in 2021 and 38.7%
in 2020. Moody's expect CWC's EBITDA margin to continue improving
towards 40%, driven by the company's cost-cutting initiatives,
efficiencies gained and the consolidation of Claro Panama's
operation. Given the long-term amortizing nature of the company's
debt, any leverage reduction will be driven by EBITDA
improvements.

CWC operates in Panama and the Caribbean and most of its markets
have large exposures to travel and tourism. Arrivals to Jamaica,
CWC's second largest market, in 2021 averaged 55% of 2019 levels,
with monthly data approaching 80% of 2019 levels by the end of the
year. In addition, Moody's currently projects positive 2022 GDP
growth between 3% and 7% in Panama, Jamaica, The Bahamas, Trinidad
and Tobago and Barbados, jurisdictions that together account for
65% of CWC's revenues.

In September 2021, CWC announced plans to acquire Claro Panama
S.A., a subsidiary of America Movil, S.A.B. de C.V. (A3 negative)
for $200 million. The transaction will consolidate CWC competitive
position in Panama, its main market. Upon the consolidation,
expected during the second half of 2022, CWC will generate 27% of
its revenue in Panama, up from 22% today. Proforma for this
acquisition, CWC' revenues will increase 34% in the mobile segment
and 8% on a consolidated basis.

The B2 rating on senior unsecured notes continue to reflect their
positioning in the waterfall behind the $2.6 billion in secured
debt, including Coral-US's term loans B-5, also rated Ba3, the new
term loan B-6 and the senior secured notes at SIFL, all of them
rated Ba3. Upon the refinancing executed in September 2021, the
proportion of senior secured debt increased to 68% from 55%,
including the RCF. The senior secured debt benefits from the
guarantees of SIFL, C&W Senior Secured Parent Limited, Sable
Holding Limited, CWIGroup Limited, Cable and Wireless (West Indies)
Limited, and Columbus International Inc and share pledges of all
the guarantors and issuer as collateral, while the unsecured debt
benefits from a collateral that comprises the capital stock of the
notes' issuer.

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

A rating upgrade could be considered if more conservative financial
policies help reduce leverage (Moody's-adjusted debt/EBITDA) to
less than 3.0x on a consolidated basis while the company maintains
its adjusted EBITDA margin at least around 40% and generates strong
positive free cash flow (FCF), all on a sustained basis.

CWC's ratings could be downgraded if there is a material weakening
of its liquidity position. Quantitatively, a downgrade could take
place if (1) the company's leverage does not recover towards 4.0x
(on a consolidated basis); (2) its adjusted EBITDA margin declines
toward 35% on a sustained basis; (3) it makes a large cash
distribution to its parent company.

The principal methodology used in these ratings was
Telecommunications Service Providers published in January 2017.

CWC is an integrated telecommunications provider offering mobile,
broadband, video, fixed line, business, IT and wholesale services
in Panama, Jamaica, The Bahamas, Trinidad and Tobago, Barbados and
other markets in the Caribbean. For the 12 months ended March 31,
2022, the company generated revenue of $2.3 billion. As of the same
date, CWC served 2.2 RGUs through its fixed network that passes 2.4
million homes. Buying Claro Panama effectively gives CWC around
760,000 more mobile subscribers in Panama, on top of its roughly
1.6 million only in Panama, and 3.5 million subscribers, on a
consolidated basis, as of March 2022.


E-CARAT 11: S&P Affirms 'CCC+ ' Rating on Class G Notes
-------------------------------------------------------
S&P Global Ratings affirmed its 'AAA (sf)', 'AA+ (sf)', 'A+ (sf)',
'BBB+ (sf)', 'BB+ (sf)', 'BB- (sf)', and 'CCC+ (sf)' credit ratings
on E-Carat 11 PLC's class A, B, C, D, E-Dfrd, F-Dfrd, and G-Dfrd
notes.

At the same time, S&P removed the under criteria observation (UCO)
identifier from the ratings on the class E-Dfrd, F-Dfrd, and G-Dfrd
notes where it placed them on May 21, 2022, following its update on
the credit and cash flow assumptions that it applies in its global
auto and ABS analysis.

The affirmations follow S&P's review of the transaction's
performance and the application of its relevant criteria, and
considers the transaction's current structural features.

S&P said, "In our analysis, we have decreased our base-case hostile
termination (HT) rate assumptions to 1.85% compared with 2.09% at
closing due to better performance than our initial expectations. We
have maintained our voluntary termination (VT) base-case
assumptions of 2.96%. We have also reduced the corresponding
multiple to both HT and VT losses as we believe the transaction has
performed better than our expectations at closing."

Under S&P's criteria, it applied the following credit assumptions
in its analysis:

  Table 1

  Credit Assumptions
  
  PARAMETER                      CURRENT

  HT base case (%)                  1.85

  HT multiple ('AAA')                  4

  HT multiple ('AA+')               3.65

  HT multiple ('A+')                2.80

  HT multiple ('BBB+')              2.05

  HT multiple ('BB+)                 1.6

  HT multiple ('BB-)                1.33

  VT base case (%)                  2.96

  VT multiple ('AAA')                2.3

  VT multiple ('AA+')               2.15

  VT multiple ('A+')                1.88

  VT multiple ('BBB+')              1.63

  VT multiple ('BB+')               1.43

  VT multiple ('BB-')               1.32

  Recoveries base case (%)            60

  Recoveries haircut ('AAA') (%)   45.75
  
  Recoveries haircut ('AA+') (%)   40.38

  Recoveries haircut ('A+') (%)    32.50

  Recoveries haircut ('BBB+') (%)  26.50

  Recoveries haircut ('BB+') (%)   21.00

  Recoveries haircut ('BB-') (%)   17.67

  Stressed recovery rate ('AAA')   32.55

  Stressed recovery rate ('AA+')   35.78

  Stressed recovery rate ('A+')    40.50

  Stressed recovery rate ('BBB+')  44.10

  Stressed recovery rate ('BB+')   47.40

  Stressed recovery rate ('BB-')   49.40

  Residual value loss ('AAA') (%)   39.5

  Residual value loss ('AA+') (%)   33.9

  Residual value loss ('A'+) (%)    25.4

  Residual value loss ('BBB+') (%)  19.3

  Residual value loss ('BB+') (%)   14.8

  Residual value loss ('BB-') (%)   12.2

  N/A--Not available.


As of the March 2022 investor report, the level of 90+ day arrears
has decreased to 0.13% from 0.15% in February 2022. Early
delinquencies totaled 0.21% and 0.10% for the 30-60 and 60-90 day
arrears buckets, respectively, which compares with 0.22% and 0.12%,
respectively, in February 2022. Overall, delinquencies have
remained stable, and S&P did not observe a material worsening of
portfolio performance.

S&P has performed its cash flow analysis to test the effect of the
amended credit assumptions. It has tested both a pro rata and
sequential priority of payments.

E-Carat 11 is still in its pro rata phase, and consequently none of
the rated notes benefit from an increase in credit enhancement
since closing. However, at the time of this review, no outstanding
amount on the principal deficiency ledger is recorded and no pro
rata triggers were breached. S&P also considered the current
portfolio mix rather than the worst-case mix at closing.

S&P said, "Our cash flow analysis indicates that the available
credit enhancement for the class A, B, C, D, E-Dfrd, and F-Dfrd
notes is sufficient to withstand the credit and cash flow stresses
that we apply at the currently assigned ratings. Therefore, we
affirmed our 'AAA (sf)', 'AA+ (sf)', 'A+ (sf)', 'BBB+ (sf)', 'BB+
(sf)', and 'BB- (sf)' ratings on the class A, B, C, D, E-Dfrd, and
F-Dfrd notes, respectively.

"The class G-Dfrd notes do not pass our stresses at the 'B' rating
level for full repayment of principal by maturity. Therefore, we
used our 'CCC' ratings criteria to assess if either a rating of 'B-
(sf)' or in the 'CCC' category would be appropriate. These criteria
specify the need to assess whether there is reliance on favorable
conditions to continue in an unstressed scenario.

"The class G-Dfrd notes have 5% credit enhancement and are rated
based on ultimate payment of both interest and principal. Failures
at the 'B' rating level cash flow stresses happen in certain cash
flow scenarios. We therefore affirmed our 'CCC+ (sf)' rating on the
class G-Dfrd notes because it is, in our view, more vulnerable and
junior in the capital structure. We believe it is dependent upon
favorable business, financial, or economic conditions to be repaid,
according to our criteria for assigning 'CCC+', 'CCC', 'CCC-', and
'CC' ratings. We also believe that a 'CCC' or 'CCC-' rating is not
appropriate for this class because it can rely on 5% hard credit
enhancement.

"Our ratings in this transaction are not constrained by the
application of our sovereign risk criteria for structured finance
transactions or our counterparty risk criteria. Furthermore, our
operational risk criteria do not cap the ratings in this
transaction."

E-Carat 11 is a U.K. ABS transaction that securitizes a portfolio
of auto loan receivables to private and commercial borrowers in U.K
originated by Vauxhall Finance PLC.


GALLITO GROUP: Enters Administration, 16 Jobs Affected
------------------------------------------------------
Miran Rahman at TheBusinessDesk.com reports that a West
Yorkshire-based manufacturing group -- Gallito Group Limited -- has
ceased trading, with all 16 members of staff losing their jobs.

Efforts had been made to try and sell the Wetherby company as a
going concern, TheBusinessDesk.com notes.

A spokesman for Grant Thornton UK said Richard Oddy and Chris Petts
were appointed joint administrators to Gallito Group Ltd and
Gallito Ltd on May 23, TheBusinessDesk.com relates.

According to TheBusinessDesk.com, the spokesman said, "The group, a
specialist manufacturer of spray booth and surface preparation
equipment, had suffered losses for a significant period of time as
a result of a number of factors including several onerous contracts
and rising costs.

"At the same time its sales pipeline also suffered a downturn.

"Despite attempts pre-administration and after to sell the company
as a going concern, the administrators have reluctantly concluded
there is no prospect of this outcome being achieved and the
business has now ceased to trade."


INTERSERVE: Shareholders Back Deal to Separate Tilbury Douglas
--------------------------------------------------------------
Mark Kleinman at Sky News reports that the break-up of what was
once one of Britain's biggest outsourcing conglomerates is nearing
completion after Tilbury Douglas, the construction company, was
carved out of Interserve Group.

Sky News understands that Interserve's shareholders have agreed a
deal to separate Tilbury Douglas, one of the industry's oldest
names, to become a standalone business.

It will continue to be owned by Interserve investors including
Davidson Kempner Capital Management, while the outsourcer's pension
trustees will also hold an equity stake, according to people close
to the deal, Sky News discloses.

The separation agreement, which is expected to be announced this
week, comes months after Kier Group, the London-listed construction
company, ended talks about a takeover of Tilbury Douglas, Sky News
notes.

More than GBP80 million is understood have been injected into
Interserve's pension scheme since the parent company went into
administration just over three years ago, Sky Newsstates.

Following the separation from Interserve, Nick Pollard will remain
as chair of Tilbury Douglas and Paul Gandy will continue as its
chief executive, Sky News states.

A number of smaller asset sales out of Interserve Group will
proceed, with the winding-up of the company expected to take place
in 2024, Sky News discloses.

Interserve has already sold the remainder of its operations,
including its support services arm to Mitie, the rival outsourcing
group, according to Sky News.

Last year the jewel in its crown, equipment services arm RMD
Kwikform, was sold to France's Altrad Group, Sky News recounts.

At its largest, Interserve employed more than 45,000 people in the
UK.


KIER GROUP: Regulator Imposes Fine Over Audit Failures
------------------------------------------------------
Michael O'Dwyer at The Financial Times reports that PwC has been
fined twice in one day by the UK accounting regulator over audit
failures at London-listed construction groups Kier and Galliford
Try.

The Big Four accounting firm was ordered to pay GBP5 million after
the Financial Reporting Council found problems in its audits of the
companies, both of which have been hit by accounting errors in
recent years, the FT relates.

According to the FT, the FRC found problems with PwC's auditing of
long-term contracts at the two companies, including the recognition
of revenue and costs on large contracts at
Galliford Try.

PwC was ordered to pay GBP3 million for failing to meet the
regulatory requirements in its audit of housebuilder Galliford
Try's accounts for its 2018 and 2019 financial years, the FT
discloses.  The FRC said the penalty was reduced from GBP5.5
million in recognition of the Big Four auditor's co-operation, the
FT notes.

The watchdog, as cited by the FT, said PwC had not done enough to
challenge assertions made by the management of Galliford Try, which
was found in 2020 to have overstated its assets by GBP94.3
million.

It was handed a further penalty of almost GBP2 million, reduced
from GBP3.35 million, for its audit of Kier's accounts for the year
ended June 2017, during which it failed to spot errors in the
company's income and cash flow statements, the FT relays.

The regulator found that at both Galliford Try and Kier, PwC had
not shown appropriate professional skepticism and had failed to
gather sufficient evidence in its audits, the FT states.

                             Debt

As reported by the Troubled Company Reporter-Europe in November
2019, the FT said that at the end of 2018, shareholders had refused
to buy into an emergency cash call that aimed to reduce Kier's
GBP624 million debt, leaving the banks and brokers that had
underwritten the deal nursing almost GBP7 million in losses.  In
March 2019, it revised debt up by GBP50 million after an accounting
error, alarming investors and raising further concerns over the
financial health of the company, the FT disclosed.

As of November 2019, it has debt of GBP167 million, and has
outlined plans for GBP55 million annual cost savings, including
disposals, the FT noted.  It was ousted from the government's
prompt payment code for failing to honor a commitment to pay 95% of
all supplier invoices within 60 days, according to the FT.

Kier ran into trouble after ramping up debt through acquisitions,
the FT related.


MISSGUIDED: Former Employees Mull Lawsuit Over Redundancy Process
-----------------------------------------------------------------
Sophie Halle-Richards at Manchester Evening News reports that
former Missguided employees claim they found out they were being
made redundant via an 'emotionless' automated voice message amid
reports they are taking legal action against the company.

According to Manchester Evening News, some 330 jobs were put at
risk after the Greater Manchester-based fast fashion retailer went
into administration last month, following claims the firm owed
millions of pounds to suppliers.

Staff have now claimed they were given less than half an hour's
notice to join a conference call about their fate, with colleagues
who were on holiday reportedly finding out via social media,
Manchester Evening News discloses.

The retailer, whose headquarters is based in Trafford Park,
appointed Teneo Financial Advisory to sell its business and assets
after supply chain costs, rising inflation and "softening" consumer
confidence were said to be the leading causes behind the company's
collapse, Manchester Evening News recounts.

The online retailer has since been bought out of administration by
Mike Ashley's Frasers Group, which confirmed it had purchased the
intellectual property of Missguided, Manchester Evening News.
According to Manchester-based solicitors Aticus Law some employees
are now set to launch legal action over claims they were not
properly consulted over the redundancy process, Manchester Evening
News notes.

Aticus Law say they are now looking into these claims, with a view
to pursuing legal action over how the redundancy process was
managed, Manchester Evening News discloses.  It comes after
Missguided was issued a winding-up petition last month by suppliers
who are claimed to be owed millions, Manchester Evening News
relays.  Police were previously called to the retailer's
headquarters after suppliers turned up demanding overdue payments
be made, Manchester Evening News recounts.

The company was founded in 2009 by Nitin Passi and grew rapidly
amid rising demand for online fashion.  But Missguided was hit hard
by surging supply costs, wider inflationary pressures and waning
consumer confidence in the increasingly competitive market,
Manchester Evening News states.


SUNGARD AVAILABILITY: Redcentric Buys Remaining Assets, Contracts
-----------------------------------------------------------------
Simon Quicke at Microscope reports that Redcentric Solutions has
picked up the remaining assets and contracts from Sungard
Availability Services, bringing an end to a saga that started back
in April, when the firm went into administration.

Since Benjamin Dymant and Ian Wormleighton from Teneo were
appointed as joint administrators for the business continuity
provider at the start of April, there have been efforts to secure a
future for as much of the business as possible, Microscope
relates.

Last month, it was revealed that Teneo had entered into an
exclusivity agreement with Daisy Corporation to transfer across
customers from 14 Sungard Workplace facilities, Microscope
recounts.

That has been followed up with the latest move to exchange
conditional contracts with Redcentric Solutions, a subsidiary of
Redcentric, for the acquisition of the business and assets from the
three remaining datacentre facilities, Microscope notes.

The expectation is that the deal will complete by the end of this
month, in the next 23 days, with contracts conditional on certain
revenue thresholds being hit and on the customers in those
datacentres agreeing to move over to Redcentric ownership,
Microscope states.

The cost of the datacentres depends on annualised recurring revenue
rates and could set Redcentric back between a minimum of GBP11
million up to a possible maximum of GBP22 million, Microscope
discloses.  More cash might be involved if certain targets are hit
in the next 12 months, according to Microscope.

In a separate move, the joint administrators have completed the
sale of the AWS and Consulting Divisions of Sungard to Redcentric
for GBP4.2 million, paid in cash, Microscope relays.



                           *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.

Copyright 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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