/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/220714.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, July 14, 2022, Vol. 23, No. 134 Headlines F R A N C E EDF: France to Pay More Than EUR8 Billion to Nationalize Firm G R E E C E NAVIOS MARITIME: Egan-Jones Retains CCC Senior Unsecured Ratings I T A L Y LEONARDO SPA: Moody's Affirms Ba1 CFR & Alters Outlook to Positive L U X E M B O U R G LSF9 BALTA: S&P Affirms 'B-' ICR & Alters Outlook to Stable S P A I N IM BCC CAPITAL 1: DBRS Confirms BB(low) Rating on Class C Notes S W E D E N SAS AB: Resumes Talks with Pilot Unions Over New CBA U N I T E D K I N G D O M BOILER PLAN: New Boiler Shortage Prompts Administration EAGLEMOSS LTD: Files Notice of Intention to Appoint Administrator ELECTROFLIGHT: Calls in Administrators at Milstead Langdon GLOBAL SHIP: Moody's Affirms 'B1' CFR & Alters Outlook to Positive JUBILEE PLACE 4: DBRS Gives Prov. B Rating on Class E Notes LOVE LANE: Owed More Than GBP1.5 Million at Time of Collapse MCCOLL'S: Antitrust Watchdog Probes Morrisons Acquisition NEWDAY PARTNERSHIP 2017-1: DBRS Confirms B Rating on Class F Notes TOWER BRIDGE 4: Moody's Ups Rating on GBP7MM Class F Notes to Ba2 - - - - - =========== F R A N C E =========== EDF: France to Pay More Than EUR8 Billion to Nationalize Firm ------------------------------------------------------------- Mathieu Rosemain, Pamela Barbaglia, Leigh Thomas and Michel Rose at Reuters report that the French government is poised to pay more than EUR8 billion (US$8.05 billion) to bring power giant EDF back under full state control, two sources with knowledge of the matter said, adding the aim is to complete the deal in the fourth quarter. According to Reuters, one of the sources said the cost of buying the 16% stake the state does not already own could be as high as almost EUR10 billion, when accounting for outstanding convertible bonds and a premium to current market prices. The French government, which already has 84% of EDF, announced last week it would nationalise the company, which would give it more control over a revamp of the debt-laden group while contending with a European energy crisis, Reuters relates. The sources, as cited by Reuters, said the state would likely launch a public offer on the market at a premium to the stock price because the other option -- a nationalisation law to be pushed through parliament -- would take too long. When Prime Minister Elisabeth Borne announced the nationalisation plan on July 6, the stake held by minority shareholders was worth around EUR5 billion, Reuters notes. The sources said in addition, the French government would also have to buy EUR2.4 billion of convertible bonds and offer a premium to current stock market prices to entice minority shareholders, with the cost of the transaction going well beyond EUR8 billion, Reuters relays. They did not give details of the size of the premium, with one of them saying no final decision had been taken, according to Reuters. France wants the buyout to take place in October or November, and for that to happen it would have to move quickly, the sources said, asking not to be named because the matter is confidential, Reuters notes. The sources said the next step will be for the government to announce the offer price and make an official filing, Reuters discloses. Then EDF will need to give its opinion while an independent expert will be drafted in to review the offer price, Reuters states. According to Reuters, one of the sources said France may have to announce the terms of the offer over the coming weeks, before the holiday period in August, to ensure it can have a deal in the fourth quarter. The government last week increased the amount of money available for financial operations related to its state shareholding portfolio by EUR12.7 billion in the second half of the year, with officials saying this would cover the EDF deal and other, unspecified transactions, Reuters discloses. =========== G R E E C E =========== NAVIOS MARITIME: Egan-Jones Retains CCC Senior Unsecured Ratings ---------------------------------------------------------------- Egan-Jones Ratings Company, on July 8, 2022, retained its 'CCC' foreign currency and local currency senior unsecured ratings on debt issued by Navios Maritime Holdings, Inc. EJR also retained its 'C' rating on commercial paper issued by the Company. Headquartered in Pireas, Greece, Navios Maritime Holdings, Inc. offers maritime freight transportation services. ========= I T A L Y ========= LEONARDO SPA: Moody's Affirms Ba1 CFR & Alters Outlook to Positive ------------------------------------------------------------------ Moody's Investors Service has affirmed Leonardo S.p.A.'s (Leonardo or the company) Probability of Default rating and Corporate Family rating at Ba1-PD and Ba1 respectively. Concurrently the agency has affirmed Leonardo S.p.A.'s Senior Unsecured rating at Ba1 and Leonardo US Holding Inc.'s backed Senior Unsecured rating at Ba1. Leonardo's BCA is affirmed at ba1. The outlook on all ratings has been changed to positive from stable. RATINGS RATIONALE The rating affirmation of Leonardo's Corporate Family rating at Ba1 and the change in outlook to positive reflects (i) the company's strong execution through the pandemic, (ii) favorable industry dynamics and a good revenue and earnings visibility over the next 12 to 18 months, (iii) an improvement in credit metrics since the worst of the pandemic and a positive metrics trajectory expected over the next 12 to 18 months, and (iv) a strong commitment to returning to an investment grade rating with a financial policy rightly calibrated to achieve this objective. Key challenges pertain to the group's ability to handle rising input costs while continuing to secure attractive orders. Moody's also expect the group's commercial aircraft exposure to continue lagging strong performance of its other segments as it is largely geared to wide-body aircrafts that will take longer to recover. Leonardo's track record through the pandemic has been solid. Supported by a swift adaptation of the company's cost base to prevailing market conditions at the beginning of the pandemic, Leonardo has been able to significantly improve its operating performance since the worst of the pandemic. Leonardo exceeded its pre-pandemic level at the revenue and order intake level including its Aerostructures business (+2.5% and +1.5% above 2019 level in 2021) as well as at the EBITA level (+5% vs. 2019), excluding its Aerostructures business that is exposed to civil aviation markets (less than 5% of group revenue in 2021). Free cash flow generation was also fairly solid with only EUR133 million negative Moody's FCF in 2020 and EUR265 million Moody's FCF generated in 2021. Leonardo has also guided the market to a significant increase in cash flow generation over 2021-2025 with EUR3 billion of cumulative FOCF (pre dividend payment as per Leonardo's definition), a significant step up compared to the last five years. Leonardo, like other European Aerospace & Defence companies, should benefit from a trend towards higher defense spending across both European and non-European NATO countries while the benefit will most likely be felt medium term. Leonardo's sizeable order backlog (2.5x 2021 revenue), good commercial dynamic (4% growth in order intake in 2021 and book to bill above 1.0x) and the guidance that its book to bill ratio will remain above 1.0x in 2022 further reinforces the good revenue and earnings visibility of Leonardo over the next 2-3 years. This good commercial dynamic should support a gradual improvement in operating profitability and credit metrics. Leonardo's credit metrics have improved since the depth of the pandemic and are currently at the lower end of Moody's expectation of an investment grade rating. Moody's adjusted Debt/EBITDA has reduced to 4.0x as per LTM March 2022 from 5.1x as per LTM December 2020. This compares to an upgrade trigger of sustainably below 4.0x for an investment grade rating. Moody's expect further gradual improvement in credit metrics over the next 12 to 18 months that will further cement Leonardo's path to an investment grade rating. Achieving an investment grade rating is a clear strategic priority of Leonardo and this objective has been reiterated several times by the company over the last few quarters. In the recent past the group's financial policy has been firmly aligned with this objective as envisaged by the skipping of dividend payment in 2021 and the partial funding of the acquisition of a 25% stake in Hensoldt from disposal proceeds. RATIONALE FOR THE POSITIVE OUTLOOK The positive outlook on the ratings reflects Moody's expectation that Leonardo's credit metrics will further improve over the next 12 to 18 months supported by favorable industry dynamics cementing a path back to an investment grade rating. The positive outlook also encompasses the expectation that Leonardo will continue pursuing conservative financial policies in line with its commitment to returning to an investment grade rating. LIQUIDITY Leonardo's liquidity position is strong. The company had approximately EUR2.5 billion of cash on balance sheet at December 31, 2021 and full availability under a EUR2.4 billion revolving credit facility. In addition, Leonardo has access to EUR1 billion of undrawn uncommitted credit facilities. These liquidity sources are more than sufficient to cover significant intra-year working capital swings of up to EUR1 billion. Leonardo has a well spread maturity profile and ample headroom under financial covenants. Lastly, Leonardo is expected to generate consistent positive Moody's adjusted Free cash flow over the next 12 to 18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade Leonardo if its gross leverage excluding cash dividends is expected to be less than 4.0x on a sustainable basis and if gross leverage including cash dividends is below 3.5x on a sustainable basis. Moody's would also expect operating profit margins to improve to a level that is in the high-single-digit percent range, for FCF to be positive post dividend payments and for the company to maintain a strong liquidity profile. Moody's would consider a negative rating action if Leonardo pursues financial policies that do not prioritize debt reduction when leverage is above 4.5x; the company's operating margins trend back towards the mid-single-digit percent range; there is a sustained decline in orders and ensuing pressure on the company's revenue profile and liquidity provisions weaken. LIST OF AFFECTED RATINGS Issuer: Leonardo S.p.A. Affirmations: LT Corporate Family Rating, Affirmed Ba1 Probability of Default Rating, Affirmed Ba1-PD Senior Unsecured Medium-Term Note Program, Affirmed (P)Ba1 Senior Unsecured Regular Bond/Debenture, Affirmed Ba1 Baseline Credit Assessment, Affirmed ba1 Outlook Actions: Outlook, Changed To Positive From Stable Issuer: Leonardo US Holding Inc. Affirmations: BACKED Senior Unsecured Regular Bond/Debenture, Affirmed Ba1 Outlook Actions: Outlook, Changed To Positive From Stable PRINCIPAL METHODOLOGY The methodologies used in these ratings were Aerospace and Defense published in October 2021. CORPORATE PROFILE Headquartered in Rome, Italy, Leonardo S.p.A. (Leonardo) is one of Italy's largest industrial groups with principal operations in aerospace, defence and security, and receives about half of the country's annual defence procurement and R&D outlays. Leonardo is organised into three main businesses: Helicopters (28% of 2021 revenue); Electronics, Defence and Security Systems (47%); Aeronautics (25%) and other activities. The company generated revenue of EUR14.1 billion in the 12 months that ended December 2021 and Moody's-adjusted EBITDA of EUR1.3 billion (excluding joint venture [JV] income), translating into an 9.4% margin. =================== L U X E M B O U R G =================== LSF9 BALTA: S&P Affirms 'B-' ICR & Alters Outlook to Stable ----------------------------------------------------------- S&P Global Ratings revised its outlook on LSF9 Balta Issuer S.a r.l. (Balta Group) to stable from positive and affirmed the 'B-' long-term issuer credit ratings on the company, the 'B-' issue rating on its senior secured notes, and the 'B+' issue rating on the EUR45 million super senior revolving credit facility (RCF). The stable outlook reflects S&P's view that Balta Group can remain self-funding and gradually restore its profitability as price increases get up to speed over the next 12 months. High inflationary pressures should continue to weigh on Balta Group's profitability and FOCF during 2022.The company reported weaker-than-expected results in first-quarter 2022, notably in the residential division, mainly stemming from soaring input costs but also supply chain issues. This prompted us to revise our forecast for 2022 and 2023. S&P said, "We now expect stronger revenue growth of about 15% in 2022, notably spurred by price increases to offset inflation and, to a lesser degree, volume growth in the commercial business, which retains untapped potential following the COVID-19 impact. Despite intense pricing activity, we forecast a roughly 300-basis-point (bps) contraction in adjusted EBITDA margin for 2022 as the time lag to pass on input cost inflation to customers creates a short-term squeeze. The group is highly exposed to raw material price swings, especially polymers, latex, and yarn, which have been spiking for the past 12 months. Supply chain disruptions are also forcing it to switch raw material suppliers, resulting in additional costs. This should translate into roughly neutral FOCF for 2022 after absorbing working capital outflows, supporting topline growth. We also expect higher inventories, reflecting inflation effects and the build-up of critical raw materials to avoid shortfalls. In 2023, we expect the group's profitability to rebound 150 bps as raw material inflation eases and price increases materialize following the intense activity expected for 2022. This should support positive FOCF in excess of EUR10 million for 2023." The sale to Victoria reduces the group´s scale and diversification and diminishes its ability to withstand high impact credit events. Balta Group's revenue and EBITDA base roughly halved following the sale of its rugs, residential polyamide, and nonwoven divisions. S&P said, "In our view, the smaller scale entails cost dis-synergies related to the procurement of raw materials, since the group will now have less bargaining power. The continuing business is also more concentrated in terms of operations, with the commercial division now representing about 70% of sales and the manufacturing footprint narrowing to three sites from nine. Moreover, the transaction has undermined Balta Group's geographical diversification, because it is now more heavily exposed to the U.S. (50% of sales) and continental Europe (40%). We see the carve-out as a transformative event that adds uncertainty regarding the reorganization of central functions and rebranding after the sale of the Balta brand, which could result in unexpected additional costs." S&P said, "We see the continuing business as potentially more profitable and cash generative over the long term, which should start materializing in profitability and FOCF.Balta Group's long-term strategy is to expand its margin-accretive and cash-generative commercial division under its premium brands Bentley, Modulyss, and Arc Edition. We expect the commercial business to continue benefiting from higher profitability, supported by the premium positioning and brand awareness of its product portfolio. The commercial division also benefits from its business-to-business focus, with no fixed-term contracts, and the overall smaller scale of its customer base, which should mean improved negotiating power for price increases. In addition, we think the remaining business' cash conversion will improve, reflecting its project-based nature with lower seasonality and less inventory requirements, translating into lower working capital needs. "The sale to Victoria reduced gross debt and refinancing risk, although we forecast adjusted leverage will remain above 6x in 2022. The company used the proceeds to repay EUR105 million of its senior secured notes and fully repay its RCFs, which were outstanding by EUR53 million at year-end 2021. Therefore, Balta Group is now operating with a substantially lower quantum of senior debt, which alleviates our concerns on refinancing risk with the senior secured notes maturing in December 2024. That said, adjusted leverage was unchanged given the EBITDA base roughly halved following the carve out. After revising down our forecast, we now expect adjusted leverage of above 6x at year-end 2022, versus 5.0x-5.5x in our previous base case. This should decrease toward 5.5x in 2023 as inflationary pressures ease, enabling the company to expand its EBITDA base. "The stable outlook reflects our view that Balta Group's operating performance should gradually improve over the next 12 months, leading its credit metrics to strengthen. Under our base case, we see the group gradually restoring its profitability as price increases get up to speed, translating into positive FOCF and deleveraging to about 5.5x by year-end 2023. Despite high pressure from raw materials inflation, we believe that Balta Group is well positioned to gradually recover its margins, with continued pricing activity supported by its brand equity and the project-based nature of the continuing business. "We could lower the ratings in the next 12 months if Balta´s EBITDA significantly deteriorates such that its adjusted debt leverage increase to 8x or above on a sustained basis. This would translate into an unsustainable capital structure with limited capital market access. We could also consider a downgrade if the group fails to address the approaching refinancing in a timely manner or incurs large negative FOCF in the next 12 months, threatening its ability to fund its day-to-day operations. This could arise from persistent high raw materials inflation, combined with an inability to increase prices, operational disruptions in processing plants, or higher-than-expected exceptional costs. "We could raise the rating if adjusted leverage reduces toward 5x on a continuing basis with a maintained FOCF cushion. This could happen if Balta Group exceeds our expectations in terms of profitability by swiftly offsetting raw materials inflation with price increases, combined with a seamless separation from its carved-out business. We would also need to see evidence of a refinancing plan with a high probability of success for its senior secured notes maturing in 2024 as Balta Group progresses on its deleveraging path." Balta Group is a Belgium-based manufacturer of soft flooring including broadloom (wall-to-wall carpets) and carpet tiles. The group leads the commercial premium market in the U.S. and residential market in continental Europe. After the sale of its rugs, nonwoven, and residential polypropylene businesses, the group now operates two divisions: -- Commercial: Representing about 70% of sales and catering to offices, public projects, and the hospitality sector through the Bentley, Modulyss, and Arc Edition brands. -- Residential polyamide: Representing 30% of sales and focused on supplying major retailers and wholesalers under the ITC brand. ESG credit indicators: E-2, S-2, G-2 ESG factors have an overall neutral influence on S&P's credit rating analysis of Balta Group. The group is majority owned by private-equity group Lone Star Funds with 35% of its shares free float following a partial IPO in 2017. In addition, three of the nine members on its board of directors are independent. ========= S P A I N ========= IM BCC CAPITAL 1: DBRS Confirms BB(low) Rating on Class C Notes --------------------------------------------------------------- DBRS Ratings GmbH took the following rating actions on the notes issued by IM BCC Capital 1, FT: -- Class A Notes upgraded to AA (high) (sf) from AA (sf) -- Class B Notes confirmed at BBB (low) (sf) -- Class C Notes confirmed at BB (low) (sf) The rating of the Class A Notes addresses the timely payment of interest and the ultimate payment of principal on or before the legal maturity date in April 2037. The ratings of the Class B Notes and Class C Notes address the ultimate payment of interest and principal on or before the legal maturity date. The rating actions follow an annual review of the transaction and are based on the following analytical considerations: -- The portfolio performance, in terms of level of delinquencies and defaults, as of the April 2022 payment date; -- The one-year base case probability of default (PD) and default and recovery rates on the outstanding receivables; -- The current available credit enhancement to the notes to cover the expected losses at their respective rating levels; and -- The current economic environment and an assessment of sustainable performance, as a result of the Coronavirus Disease (COVID-19) pandemic. The transaction is a static cash flow securitization collateralized by a portfolio of term loans originated and serviced by Cajamar Caja Rural, S.C.C. (Cajamar), granted to SMEs and self-employed individuals based in Spain. It closed in December 2018. PORTFOLIO PERFORMANCE The transaction's performance has been stable since closing. As of 31 March 2022, the overall portfolio consisted of an aggregate principal balance of EUR 311.7 million. The current cumulative default ratio was at 0.64%, up from 0.50% at the time of the last annual review. The 30-60 day and 60-90 day delinquency ratios stood at 0.13% and 0.09%, respectively, stable from 0.15% and 0.14% last year, respectively. PORTFOLIO ASSUMPTIONS AND KEY DRIVERS DBRS Morningstar maintained the one-year base case PD at 2.3% (including coronavirus-related adjustments) and updated its lifetime default and recovery assumptions on the outstanding portfolio to 39.8% and 38.5%, respectively, at the AA (high) (sf) rating level, to 21.0% and 45.6%, respectively, at the BBB (low) (sf) rating level, and to 14.0% and 50.3%, respectively, at the BB (low) (sf) rating level. CREDIT ENHANCEMENT The Class A to Class E Notes amortize pro rata, unless certain sequential amortization events have occurred to date. As a result of the pro rata amortization, credit enhancement remains stable at 39.8%, 16.1%, and 9.3% for the Class A, Class B, and Class C Notes, respectively. The credit enhancement for the rated notes is provided by the subordination of the junior notes and a reserve fund. The reserve fund is currently funded at EUR 9.5 million, after reaching its floor on the April 2021 payment date, and it is available to cover shortfalls in senior expenses and interest and principal of the Class A to Class D Notes. The structure also benefits from a commingling reserve account funded at closing to mitigate any potential disruptions of the payment of senior expenses and interest on the Class A Notes. This is currently funded at EUR 0.45 million. Banco Santander SA (Santander) acts as the account bank for the transaction. Based on the DBRS Morningstar reference rating of Santander at A (high), one notch below its DBRS Morningstar Long Term Critical Obligations Rating of AA (low), the downgrade provisions outlined in the transaction documents, and other mitigating factors inherent in the transaction structure, DBRS Morningstar considers the risk arising from the exposure to the account bank to be consistent with the ratings assigned to the Notes, as described in DBRS Morningstar's "Legal Criteria for European Structured Finance Transactions" methodology. The Coronavirus Disease (COVID-19) and the resulting isolation measures have caused an immediate economic contraction, leading in some cases to increases in unemployment rates and income reductions for many borrowers. DBRS Morningstar anticipates that delinquencies may continue to increase in the coming months for many SME transactions. The ratings are based on additional analysis to expected performance as a result of the global efforts to contain the spread of the coronavirus. For this transaction, DBRS Morningstar increased the expected default rate on receivables granted to obligors operating in certain industries based on their perceived exposure to the adverse disruptions of the coronavirus. As per DBRS Morningstar's assessment, 13.0% of the outstanding portfolio balance, represented industries classified in the high-risk economic sectors. This led the underlying one-year PDs to be multiplied by 1.5 times. DBRS Morningstar also conducted an additional sensitivity analysis to determine that the transactions benefit from sufficient liquidity support to withstand high levels of payment holidays in the portfolio. As of April 30, 2022, the Issuer reported EUR 31,003.8 of loans benefiting from coronavirus-related moratoriums. Notes: All figures are in euros unless otherwise noted. =========== S W E D E N =========== SAS AB: Resumes Talks with Pilot Unions Over New CBA ---------------------------------------------------- Helena Soderpalm at Reuters reports that Scandinavian airline SAS and unions representing striking pilots resumed talks over a new collective bargaining agreement on Wednesday, July 13, as the walkout entered its 10th day. The 75-year old airline was struggling even before the pandemic hit in 2020 due to high costs and growing competition from low-cost carriers, Reuters discloses. The pilots strike, which started in July 4, is now costing it US$10 million to US$13 million a day and has forced it to cancel more 1,200 flights at the peak of the summer travel season, Reuters states. The carrier, whose main owners are the governments of Sweden and Denmark with stakes of 22% each, on July 13 cancelled 242 flights, or 75% of those scheduled, Reuters relays, citing FlightAware. "We hope that we can solve this and that we can end this strike. That is why we are here," Roger Klokset, from the union representing SAS' Norwegian pilots, told reporters as he arrived for the mediator-led negotiations in Stockholm. The Swedish pilot union said last week their latest bid included pilots taking a 5% pay cut, working more hours per week, working part-time in winter with a reduced salary and foregoing summer vacation, Reuters recounts. Unions are also demanding that pilots dismissed during the pandemic are rehired at SAS Scandinavia, rather than having to compete with external applicants for jobs at newly started SAS Link and Ireland-based SAS Connect, Reuters states. In addition to affecting hundreds of thousands of travellers, the strike is also putting stress on Northern Norway's health system as staff have not been able to fly in on time for some surgeries, Reuters says. About Scandinavian Airlines SAS AB is Scandinavia's leading airline. It has main hubs in Copenhagen, Oslo and Stockholm, and flies to destinations in Europe, USA and Asia. In addition to flight operations, SAS offers ground handling services, technical maintenance and air cargo services. SAS is a founder member of the Star Alliance, and together with its partner airlines offers a wide network worldwide. On the Web: https://www.sasgroup.net SAS AB and its affiliates, including Scandinavian Airlines Systems Denmark-Norway-Sweden and Scandinavian Airlines of North America Inc., sought protection under Chapter 11 of the U.S. Bankruptcy Code (Bankr. S.D.N.Y. Case No. 22-10925) on July 5, 2022. In the petition filed by Erno Hilden, as authorized representative, the Debtor SAS AB estimated assets between $10 billion and $50 billion and liabilities between $1 billion and $10 billion. Weil, Gotshal & Manges LLP is serving as global legal counsel and Mannheimer Swartling Advokatbyra AB is serving as Swedish legal counsel to SAS. Seabury Securities LLC and Skandinaviska Enskilda Banken AB are serving as investment bankers, Seabury is also serving as restructuring advisor. FTI Consulting is serving as financial advisor. Kroll Restructuring Advisors is the claims agent. =========================== U N I T E D K I N G D O M =========================== BOILER PLAN: New Boiler Shortage Prompts Administration ------------------------------------------------------- Tom Keighley at BusinessLive reports that a new boiler shortage has caused the collapse of Boiler Plan UK Ltd., a Cramlington-based installation and repair business, that employed 62 people and had attracted GBP4.65 million investment in recent years. Ian Henderson, director of Boiler Plan UK Ltd, said his business had been growing well before Covid interrupted the firm's house calls and exacerbated materials shortages that have seriously impacted the number of new boilers available to fulfil orders, BusinessLive relates. Speaking exclusively to Business Live, Mr. Hendson said: "The business was absolutely flying before Covid -- we were hitting all of our numbers, we were growing rapidly, hiring new staff and we'd moved into new premises. It was all going really well. Covid hit us hard because we relied on going across the customers' threshold and we had all the challenges business faced during Covid on top of that. But we were well capitalised and we made it through. "We won new contracts last year, business-to-business contracts that were really strong, with the likes of E.ON and Domestic and General and we had orders in quarter one for 600-700 boilers per month, which was worth about GBP1 million revenue per month. And then the boiler supply crisis hit us." Mr. Henderson explained that owing to materials shortages -- including widespread semiconductor shortages -- boiler manufacturers are only producing about 20% of previous years' output, BusinessLive notes. It had a damaging impact on Boiler Plan, which required a minimum of 300 boilers each month in order to break even, BusinessLive discloses. The firm, which was spun out of long established family firm R F Henderson Ltd in 2014, was forced to return customer deposits as it could not fulfil orders, BusinessLive relays. Despite seeking guarantees from manufacturers, Boiler Plan was told there would be no certainty in supply until mid next 2023 and funders Maven Capital Partners declined to fund the business further, according to BusinessLive. Mr. Henderson, as cited by BusinessLive, said the debt structure of the company and the impacting boiler supply crisis meant Boiler Plan could not be sold, and administrators at Interpath Advisory were called in. He added: "It wasn't through bad strategy, bad planning or bad people -- it was market forces that drove it down. I worked so hard on the business for seven years. I built it from me and a laptop up to doing GBP8 million revenue and employing nearly 100 staff at one time. It was a good business that was a victim of a materials supply crisis." Staff at the firm have been directed to the Government's Redundancy Payments Office and customers have been advised to cancel their direct debit payments to the firm, BusinessLive states. Boiler Plan provided boiler installation and repair, and also offered annual boiler services, cover plans and one-off repairs. The company was FCA-registered in relation to brokering finance agreements to its customers to cover installation costs. EAGLEMOSS LTD: Files Notice of Intention to Appoint Administrator ----------------------------------------------------------------- Bleeding Cool reports that Eaglemoss Limited filed a Notice of Intention to appoint an administrator on July 12. According to Bleeding Cool, Greg Connell, Managing Director of InfolinkGazette posted the news, commenting, "Eaglemoss is one of the world's biggest names in licensed collectable, marketing and distributing more than 150 collections in more than 30 markets." Mr. Connell added: "revenue peaked at GBP68 million but had fallen to GBP31.6 million in the last filed accounts." "Calling in the administrators" is a phrase used to bring someone in when a British company in undergoing bankruptcy under the Insolvency Act, with the aim of rescuing the company as a going concern, unless selling to a creditor, or going through bankruptcy is a better solution for the company's investors. Bleeding Cool has confirmed the news through its own sources. ELECTROFLIGHT: Calls in Administrators at Milstead Langdon ---------------------------------------------------------- David Wood at Punchline reports that Electroflight, a pioneering Gloucestershire aerospace firm, which helped build the world's fastest electric plane, has gone into administration. Last year, Punchline reported how Staverton-based Electroflight was aiming to take air flight to the next level with its electric aircraft, setting its sights on a new air speed record. But this week, the company appointed Simon Ashley Rowe and Rachel Hotham of Bristol-based accountancy firm Milstead Langdon as joint administrators, Punchline relates. The administration was announced on public record site The Gazette. Last July, Stjohn Youngman, managing director of Electroflight, told Punchline: "Gloucestershire and the South West as a region has a rich aviation engineering heritage with many companies having helped pioneer the First and Second aerospace propulsion ages -- that's Piston/Propeller and the Jet Age. Now Electroflight is proud to be contributing to pioneering the Third propulsion revolution here at Staverton." The company had about 30 staff onsite at the hangars and industrial units at the former Staverton airfield, Punchline discloses. GLOBAL SHIP: Moody's Affirms 'B1' CFR & Alters Outlook to Positive ------------------------------------------------------------------ Moody's Investors Service has changed the outlook of Global Ship Lease, Inc. (GSL, the company) to positive from stable. Concurrently, Moody's affirmed the B1 corporate family rating and B1-PD probability of default rating. RATINGS RATIONALE The rating action reflects Moody's expectations of continued strong metrics, including Moody's-adjusted Debt/EBITDA below 3.0x over 2022 and 2023 on the back of a charter backlog at high charter rates. The company also has improved its interest cost through refinancing, for example the $350 million issuance of notes in June 2022. Moody's also continues to view favorably the high revenue visibility given its long-term charters as well as the increased diversification of its customer and shareholder base. Since significant vessel acquisition activity in the first half of 2021, GSL has retained its fleet steady at 65 vessels over the last 12 months to June 2022. In the meantime, the company has continued to recharter vessels at higher market rates securing further profit growth for 2022 and likely 2023. As a result, Moody's metrics are likely to improve further towards strong levels for the current rating, including leverage below 3.0x and FFO + interest expense/interest expense above 5.0x. Gross debt has risen in 2021 as a result of the partially debt funded vessel acquisitions, but could reduce due to high ongoing debt amortisation requirements going forward. However, any gross debt reduction may also be affected by the company's refinancing activity as well as any future use of debt to partially fund vessel acquisition although the company has not done so in the last 12 months to June 2022. The company currently has five unencumbered vessels, which provides additional funding potential and differs from its fully encumbered asset base historically. While the container market also remains strong with record high charter rates that minimize any rechartering risk at this stage, the market environment becomes less clear into 2023 and 2024. If charter rates drop significantly below the company's existing charters, rechartering risk could rise. GSL continues to have a degree of customer concentration with CMA CGM S.A. (Ba2 positive) and A.P. Moller-Maersk A/S (Baa2 stable) accounting for 56% of 2021 revenue, but this concentration has reduced over recent years while the credit quality of key customer CMA CGM S.A. has also improved in recent quarters. Following some divestments of past private equity shareholders, GSL has now also a broad shareholder base. Moody's additionally notes that the company has commenced paying a dividend and initiated share buybacks. Moody's expects the company to cover these outflows from its ongoing cash flows and balance shareholder remuneration in way that Moody's credit metrics are not adversely affected. This is also supported by the current debt amortisation profile. LIQUIDITY PROFILE Moody's views the liquidity profile as adequate. The company had $96 million of unrestricted cash on balance sheet (including time deposits) as of March 2022. GSL has been and is expected to continue to remain free cash flow generative after interest but before vessel acquisitions and divestments. Moody's also expects the company to maintain meaningful restricted and unrestricted cash positions also given some minimum liquidity requirements under its debt facilities and for collateral or reserve purposes ($126 million of additional cash used for collateral or required reserve purposes as of March 2022). GSL has no material balloon maturities until 2024, but has mandatory debt amortization currently peaking at $190 million in 2023, before it reduces. RATING OUTLOOK The positive outlook reflects Moody's expectation that metrics are likely to be strong for the rating in 2022 and 2023, based on current charter levels and helped by ongoing debt amortization. Further deleveraging will however also depend on refinancing activity and some potential for partially debt-funded vessel acquisitions. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Positive pressure could arise if the business continues to grow and diversify with debt/EBITDA sustainably below 3x and (funds from operations + interest)/interest sustainably above 5.0x, free cash flow remains visibly positive, rechartering risks remains limited through longer-dated charters and the maturity profile and fleet well managed. In this context, Moody's also considers the evolution of gross debt and the company's stated financial policy. Conversely, negative pressure could develop if the company's (funds from operations + interest)/interest falls to 3x, debt/EBITDA reaches 4.5x or free cash flow weakens. Downward pressure on the ratings could also result if GSL experiences strained liquidity and difficulties in terms of the rechartering of vessels at adequate rates when contracts expire. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Shipping published in June 2021. COMPANY PROFILE Global Ship Lease, Inc. is a Republic of the Marshall Islands corporation, with administrative offices in London. GSL owns a fleet of 65 mostly small to medium-sized container vessels. GSL has been publicly traded on the New York Stock Exchange since 2008. Its largest shareholder is CMA CGM S.A., a large global container shipping company. GSL generated revenue of $448 million and company-adjusted EBITDA of $252 million for the year 2021. JUBILEE PLACE 4: DBRS Gives Prov. B Rating on Class E Notes ----------------------------------------------------------- DBRS Ratings GmbH assigned provisional ratings to the following classes of loan and notes to be issued by Jubilee Place 4 B.V. (the Issuer): -- Class A Loan at AAA (sf) -- Class B notes at AA (low) (sf) -- Class C notes at A (low) (sf) -- Class D notes at BBB (sf) -- Class E notes at B (sf) DBRS Morningstar does not rate the Class F, Class X, or Class R notes also expected to be issued in this transaction. The provisional rating of the Class A Loan addresses the timely payment of interest and the ultimate payment of principal by the legal final maturity date in July 2059. The provisional rating of the Class B notes addresses the timely payment of interest when most senior and the ultimate payment of principal by the legal final maturity date in July 2059. The provisional ratings of the Class C to Class E notes address the ultimate payment of interest and principal by the legal final maturity date in July 2059. The provisional ratings are based on information provided to DBRS Morningstar by the Issuer and its agents as of the date of this press release. These ratings will be finalized upon a review of the final version of the transaction documents and of the relevant opinions. If the information therein were substantially different, DBRS Morningstar may assign different final ratings to the loan and notes. Jubilee Place 4 B.V. will be a bankruptcy-remote special-purpose vehicle incorporated in the Netherlands. The Issuer will use the proceeds from the class A loan and issued notes to fund the purchase of Dutch mortgage receivables originated by Dutch Mortgage Services B.V., DNL 1 B.V., and Community Hypotheken B.V (the Originators), which will be acquired from Citibank, N.A., London Branch (the Seller). The Originators are specialized residential buy-to-let (BTL) real estate lenders operating in the Netherlands and started their lending businesses in 2019. They operate under the mandate of Citibank, which defines most of the underwriting criteria and policies. RATING RATIONALE As of 30 April 2022, the provisional portfolio consisted of 1,112 loans with a total portfolio balance of approximately EUR 372.2 million. The weighted-average (WA) seasoning of the portfolio is 0.2 years with a WA remaining term of 34.2 years. The WA current loan-to-value ratio, at 74.4%, is slightly above that of other Dutch BTL RMBS transactions. The loan parts in the portfolio are either interest-only loans (75.3%) or annuity mortgage loans (24.7%). A significant portion of the loans were granted for the purpose of equity release (47.7%). All of the loans in the portfolio are fixed with a compulsory future switch to floating. The loan and notes pay a floating rate. To address this interest rate mismatch, the transaction is structured with a fixed-to-floating interest rate swap where the Issuer pays a fixed rate and receives three-month Euribor over a notional, which is a defined amortization schedule. There are no loans in arrears in the portfolio. DBRS Morningstar calculated the credit enhancement for the Class A Loan at 14.5%, which is provided by the subordination of the Class B to Class F notes. Credit enhancement for the Class B notes will be 8.5% and will be provided by the subordination of the Class C to Class F notes. Credit enhancement for the Class C notes will be 5.75% and will be provided by the subordination of the Class D to Class F notes. Credit enhancement for the Class D notes will be 3.75% and will be provided by the subordination of the Class E to Class F notes. Credit enhancement for the Class E notes will be 1.25% and will be provided by the subordination of the Class F notes. The transaction benefits from an amortizing liquidity reserve fund that can be used to cover shortfalls on senior expenses and interest payments on the Class A Loan. The LRF will be partially funded at closing at 0.5% of the initial balance of the Class A Loan and will build up until it reaches its target of 1% of the outstanding balance of the Class A Loan. The LRF is floored at 0.5% of the initial balance of the Class A Loan. The LRF indirectly provides credit enhancement for the class A loan and all classes of notes, as released amounts will be part of the principal available funds. Additionally, the loan and notes will be provided with liquidity support from principal receipts, which can be used to cover senior expenses and interest shortfalls on the class A loan or the most-senior class of notes once the class A loan has been fully repaid. The Issuer will enter into a fixed-to-floating swap with BNP Paribas (rated AA (high) with a Stable trend by DBRS Morningstar) to mitigate the fixed interest rate risk from the mortgage loans and the three-month Euribor payable on the notes. The notional of the swap is a pre-defined amortization schedule of the assets. The Issuer will pay a fixed swap rate and receives three-month Euribor in return. The swap documents are in line with DBRS Morningstar's "Derivative Criteria for European Structured Finance Transactions" methodology. The Issuer Account Bank is Citibank Europe plc, Netherlands Branch. Based on DBRS Morningstar's private rating on the account bank, the downgrade provisions outlined in the transaction documents, and structural mitigants, DBRS Morningstar considers the risk arising from the exposure to the account bank to be consistent with the ratings assigned to the loan and notes, as described in DBRS Morningstar's "Legal Criteria for European Structured Finance Transactions" methodology. DBRS Morningstar based its ratings primarily on the following considerations: -- The transaction capital structure, form, and sufficiency of available credit enhancement and liquidity provisions. -- The credit quality of the mortgage loan portfolio and the ability of the servicer to perform collection activities. DBRS Morningstar calculated portfolio default rates (PDs), loss given default (LGD), and expected loss (EL) outputs on the mortgage loan portfolio. -- The ability of the transaction to withstand stressed cash flow assumptions and repay the loan and notes according to the terms of the transaction documents. DBRS Morningstar analyzed the transaction cash flows using PDs and LGD outputs provided by DBRS Morningstar's European RMBS Insight Model. DBRS Morningstar analyzed transaction cash flows using Intex DealMaker. -- The structural mitigants in place to avoid potential payment disruptions caused by operational risk, such as a downgrade and replacement language in the transaction documents. -- The transaction's ability to withstand stressed cash flow assumptions and repay investors in accordance with the terms and conditions of the loan and notes. -- The consistency of the transaction's legal structure with DBRS Morningstar's "Legal Criteria for European Structured Finance Transactions" methodology and the presence of legal opinions addressing the assignment of the assets to the Issuer. Notes: All figures are in Euro unless otherwise noted. LOVE LANE: Owed More Than GBP1.5 Million at Time of Collapse ------------------------------------------------------------ Jon Robinson at Liverpool Echo reports that more than GBP1.5 million was owed by a Liverpool venue as it collapsed into administration before being rescued, it has been revealed. Love Lane Brewery was recently saved after a former Iceland boss invested a further GBP300,000 in the company, the ECHO reported last month. Nick Canning had increased his stake in the business after a pre-pack administration deal, the ECHO discloses. Now, newly-filed documents with Companies House from administrator Kroll have revealed how much the business was sold for and how much it owed its creditors when it collapsed, the ECHO relates. Parent company LLB Realisations, which had previously gone under the name Higsons 1780, was sold to Love Lane Brewery Ltd for GBP235,000, according to the documents, the ECHO notes. They also show that HSBC was owed about GBP375,000 through two Coronavirus Business Interruption loans of GBP250,000 in December 2020 and GBP125,000 in April 2021 but will only recover GBP35,000, the ECHO relays. HMRC, the ECHO says, was owed in the region of GBP250,000 in relation to unpaid VAT, PAYE and NIC employee deductions. Kroll added that there is likely to be enough funds to reimburse HMRC but the exact amount is not yet known, according to the ECHO. Kroll also said that there will not be enough funds to repay the company's unsecured creditors who are owed a total of GBP950,000, the ECHO notes. Kroll added that by the start of January 2022 trading had improved but that the extent of the debts incurred to investors, HSBC and unpaid taxes was hindering the company's financial viability, the ECHO recounts. Based in Liverpool's Baltic Triangle, Love Lane Brewery is also a gin distillery, a bar and restaurant as well as an events space. MCCOLL'S: Antitrust Watchdog Probes Morrisons Acquisition --------------------------------------------------------- Muhammed Husain at Reuters reports that Britain's antitrust watchdog said on July 13, it has started investigating if supermarket group Morrisons' acquisition of certain assets of convenience store chain McColl's would lead to lesser competition. Morrisons in May bought 1,160 McColl's stores in a so-called pre-pack administration, Reuters recounts. The Competition and Markets Authority has set a deadline of Sept. 8 for its initial decision, Reuters discloses. Morrisons, which trails market leader Tesco, Sainsbury's and Asda, has a wholesale supply deal with McColl's. McColl's went into administration with debt of just under GBP170 million (US$201.98 million) and its stock was suspended from trading in May, Reuters relates. NEWDAY PARTNERSHIP 2017-1: DBRS Confirms B Rating on Class F Notes ------------------------------------------------------------------ DBRS Ratings Limited confirmed its ratings on NewDay Partnership Funding-related transactions as follows: NewDay Partnership Funding 2017-1 plc: -- Class A Notes at AAA (sf) -- Class B Notes at AA (sf) -- Class C Notes at A (sf) -- Class D Notes at BBB (high) (sf) -- Class E Notes at BB (sf) -- Class F Notes at B (sf) NewDay Partnership Funding 2020-1 plc: -- Class A3 Notes at AAA (sf) -- Class B Notes at AA (sf) -- Class C Notes at A (sf) -- Class D Notes at BBB (high) (sf) NewDay Partnership Funding Loan Note Issuer VFN-P1 VI (VFN-P1 V1): -- V1 Class A Loan Note at BBB (high) (sf) NewDay Partnership Loan Note Issuer VFN-P1 V2: -- V2 Class A Loan Note at AAA (sf) -- V2 Class B Loan Note at AA (sf) -- V2 Class C Loan Note at A (sf) -- V2 Class D Loan Note at A (low) (sf) -- V2 Class E Loan Note at BBB (high) (sf) NewDay Partnership Loan Note Issuer VFN-P1 V3: -- V3 Class A Loan Note at AAA (sf) -- V3 Class B Loan Note at AA (sf) -- V3 Class C Loan Note at A (sf) -- V3 Class D Loan Note at A (low) (sf) -- V3 Class E Loan Note at BBB (high) (sf) The ratings address the timely payment of scheduled interest and the ultimate payment of principal by the legal maturity date. These transactions are backed by a portfolio of cobranded credit card receivables (with limited legacy store cards and instalment credit) affiliated with high street and online retailers granted to individuals domiciled in the UK by NewDay Ltd. (NewDay or the originator) and serviced by NewDay Cards Ltd. (the servicer). The rating actions follow an annual review of these transactions and are based on the following analytical considerations: -- Portfolio asset performance of charge-off, monthly principal payment, and yield rates as of the April 2022 payment date. -- The current available credit enhancement to the rated notes to withstand various stress cashflow scenarios based on DBRS Morningstar's expectation of asset performance. -- The transaction parties' financial strength regarding their respective roles. -- DBRS Morningstar's sovereign rating of the United Kingdom of Great Britain and Northern Ireland at AA (high) with a Stable trend. -- The consistency of the transactions' legal structures with DBRS Morningstar's "Legal Criteria for European Structured Finance Transactions" methodology. TRANSACTION STRUCTURES The transactions are part of NewDay Partnership Funding's master issuance structure, where all series of notes and related issuers are supported by the same pool of receivables and generally issued under the same requirements regarding servicing, amortization events, priority of distributions, and eligible investments. The transactions include individually scheduled revolving periods. During the program-level revolving period, additional receivables may be purchased, provided that the eligibility criteria set out in the transaction documents are satisfied. The revolving period of each transaction or the entire program may end earlier than scheduled if certain events occur, such as the breach of performance triggers or servicer termination. The servicer may extend the scheduled revolving period of transactions by up to 12 months if permitted. If the notes in a transaction are not fully redeemed at the end of the related scheduled revolving period, the transaction enters into a rapid amortization. The transactions include series-specific liquidity reserves available to cover the shortfalls in senior expenses and interest on the Class A, Class B, Class C, and Class D Notes. The reserve of VFN-P1 V1 only covers the senior expenses and Class A Notes interest. PORTFOLIO PERFORMANCE, ASSUMPTIONS, AND KEY DRIVERS Starting in June 2021, certain receivables related to the Amazon Classic card have been included in the securitized pool, in addition to the existing retailers (Foundation) and Amazon Platinum accounts. As of 30 April 2022, Amazon Platinum and Amazon Classic comprised 23.3% and 4.2% of the securitized pool, respectively. As the performance of Foundation, Amazon Platinum, and Amazon Classic cards are substantially different, DBRS Morningstar considered the performance and projected share of respective receivable type in the expected asset assumptions below. The DBRS Morningstar-estimated monthly principal payment rates (MPPRs) were largely stable at higher than 20% over the reported period until March 2020. After the total payment rate reached a record low of 16.5% in July 2020, it recovered to 20.1% by the end of April 2022. DBRS Morningstar notes that the historical payment rates for Amazon Platinum have been significantly higher than Foundation or Amazon Classic, which have the lowest payment rates among three receivable types. Based on its analysis of historical data and the forecast shares of each receivable type, DBRS Morningstar elected to maintain the expected MPPR at 19.7%. On the other hand, the portfolio yield has been largely stable at around 20%, with the most recent level at 20.68% as of April 2022. The Amazon Platinum product yield is significantly lower than other receivable types, reflecting the different risk profiles and pricing strategy. In comparison, Amazon Classic shows a yield slightly higher than the Foundation receivables. Based on the stable trend, DBRS Morningstar maintained its expected yield at 17.2% after excluding spend-related finance yield. The reported historical charge-off rates were less than 5% between 2015 and March 2020 when initial Coronavirus Disease (COVID-19) pandemic occurred. The most recent performance in April 2022 shows an annualized charge-off rate of 5.06%, similar to the historical levels before March 2020. Historically Amazon Platinum and Foundation receivables have similar charge-off levels due to the prime credit profile while Amazon Classic has significantly higher levels. Based on its analysis of historical data and the forecast shares of each receivable type, DBRS Morningstar maintained the expected charge-off rate at 7.6%. DBRS Morningstar continued to stress the asset performance deterioration over a longer period for the notes rated below investment grade in accordance with its "Rating European Consumer and Commercial Asset-Backed Securitizations" methodology. COUNTERPARTIES Citibank, N.A. (Citi) is the account bank for all the transactions. Based on DBRS Morningstar's Long-term Issuer Rating of AA (low) on Citi and the downgrade provisions outlined in the transaction documents, DBRS Morningstar considers the risk arising from the exposure to the account bank to be commensurate with the ratings assigned. Notes: All figures are in British pounds sterling unless otherwise noted. TOWER BRIDGE 4: Moody's Ups Rating on GBP7MM Class F Notes to Ba2 ----------------------------------------------------------------- Moody's Investors Service has upgraded the ratings of 8 notes in Tower Bridge Funding No.4 plc and Tower Bridge Funding 2020-1 plc. The rating action reflects better than expected collateral performance and the increased levels of credit enhancement for the affected notes. Moody's affirmed the ratings of the notes that had sufficient credit enhancement to maintain their current ratings. Issuer: Tower Bridge Funding 2020-1 plc GBP283.072M Class A Notes, Affirmed Aaa (sf); previously on Jul 20, 2020 Definitive Rating Assigned Aaa (sf) GBP18.871M Class B Notes, Upgraded to Aaa (sf); previously on Jul 20, 2020 Definitive Rating Assigned Aa1 (sf) GBP14.41M Class C Notes, Upgraded to Aa2 (sf); previously on Jul 20, 2020 Definitive Rating Assigned A1 (sf) GBP9.264M Class D Notes, Upgraded to A2 (sf); previously on Jul 20, 2020 Definitive Rating Assigned Baa1 (sf) GBP8.921M Class E Notes, Affirmed Ba1 (sf); previously on Jul 20, 2020 Definitive Rating Assigned Ba1 (sf) Issuer: Tower Bridge Funding No.4 plc GBP412.5M Class A Notes, Affirmed Aaa (sf); previously on Sep 7, 2021 Affirmed Aaa (sf) GBP27.25M Class B Notes, Upgraded to Aaa (sf); previously on Sep 7, 2021 Upgraded to Aa1 (sf) GBP21.5M Class C Notes, Upgraded to Aa1 (sf); previously on Sep 7, 2021 Upgraded to Aa3 (sf) GBP13.25M Class D Notes, Upgraded to Aa3 (sf); previously on Sep 7, 2021 Upgraded to A3 (sf) GBP8M Class E Notes, Upgraded to A3 (sf); previously on Sep 7, 2021 Upgraded to Baa3 (sf) GBP7M Class F Notes, Upgraded to Ba2 (sf); previously on Sep 7, 2021 Upgraded to B1 (sf) RATINGS RATIONALE The rating action is prompted by decreased key collateral assumptions, namely the portfolio Expected Loss (EL) assumptions due to better than expected collateral performance and an increase in credit enhancement for the affected tranches. Revision of Key Collateral Assumptions: As part of the rating action, Moody's reassessed its lifetime loss expectation for the portfolio reflecting the collateral performance to date. The performance of both transactions has been better than previously expected. 90 days plus arrears as a percentage of current balance in Tower Bridge Funding No.4 plc and Tower Bridge Funding 2020-1 plc are currently standing at 1.59% and 0.78% respectively, up from 1.16% and 0.53% last year, with pool factor at 64% and 72% respectively. Cumulative losses in Tower Bridge Funding No.4 plc are still minimal at 0.03%, while Tower Bridge Funding 2020-1 plc has no losses since closing. Moody's decreased the expected loss assumption as a percentage of original pool balance to 2.25% for Tower Bridge Funding No.4 plc and to 3.5% for Tower Bridge Funding 2020-1 plc, from 3.74% and 4.35% respectively. This corresponds to an expected loss as a percentage of current pool balance of 3.47% for Tower Bridge Funding No.4 plc and of 4.88% for Tower Bridge Funding 2020-1 plc. Moody's has also assessed loan-by-loan information as a part of its detailed transaction review to determine the credit support consistent with target rating levels and the volatility of future losses. As a result, Moody's has maintained the MILAN CE assumption at 20% for both deals. Increase in Available Credit Enhancement Sequential amortization and non-amortizing reserve funds led to the increase in the credit enhancement available in this transaction. The credit enhancement for the tranche B, C and D of Tower Bridge Funding No.4 plc affected by today's rating action increased to 22.63%, 15.94% and 11.82% from 17.08%, 12.03% and 8.92%, respectively, since last rating action. The credit enhancement for the tranche B, C, D and E of Tower Bridge Funding 2020-1 plc affected by today's rating action increased to 19.94%, 14.17%, 10.45% and 6.88% from 14.5%, 10.30%, 7.6% and 5.00%, respectively, since closing. The principal methodology used in these ratings was "Moody's Approach to Rating RMBS Using the MILAN Framework" published in July 2022. The analysis undertaken by Moody's at the initial assignment of ratings for RMBS securities may focus on aspects that become less relevant or typically remain unchanged during the surveillance stage. Factors that would lead to an upgrade or downgrade of the ratings: Factors or circumstances that could lead to an upgrade of the ratings include (1) performance of the underlying collateral that is better than Moody's expected, (2) an increase in available credit enhancement and (3) improvements in the credit quality of the transaction counterparties and (4) a decrease in sovereign risk. Factors or circumstances that could lead to a downgrade of the ratings include (1) an increase in sovereign risk, (2) performance of the underlying collateral that is worse than Moody's expected, (3) deterioration in the notes' available credit enhancement and (4) deterioration in the credit quality of the transaction counterparties. ********* 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. * * * End of Transmission * * *