/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/220824.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 Wednesday, August 24, 2022, Vol. 23, No. 163 Headlines G R E E C E INTRALOT SA: Fitch Hikes LongTerm IDR to 'CCC+' I R E L A N D CLONMORE PARK: Fitch Assigns B-sf Rating to Class F Debt ENERGIA GROUP: Fitch Affirms BB- LongTerm IDR, Outlook Stable HARVEST CLO VII: S&P Affirms B- (Sf) Rating on Class F-R Notes TORO EUROPEAN 4: Fitch Affirms B+sf Rating on Class F-R Debt U N I T E D K I N G D O M CENTRAL CRAIGAVON: Rushmere Shopping Centre Put Up for Sale EMF UK 2008-1: Fitch Affirms CCC Rating on Class B2 Debt IWH UK FINCO: Fitch Withdraws 'B' LongTerm IDR MIDAS: Administrators Send Confidential Report to Regulator SINGLETON'S DAIRY: Goes Into Administration TREE OF LIFE: Failure to Secure Investment Prompts Administration VMED O2: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable WORCESTER WARRIORS: Set to Enter Administration Following Bailout - - - - - =========== G R E E C E =========== INTRALOT SA: Fitch Hikes LongTerm IDR to 'CCC+' ----------------------------------------------- Fitch Ratings has upgraded Intralot S.A.'s Long-Term Issuer Default Rating Rating (IDR) to 'CCC+' from 'CCC'. Fitch has also affirmed the senior unsecured rating on the 2024 notes issued by Intralot Capital Luxembourg S.A. at 'CCC' and revised the Recovery Rating to 'RR5' from 'RR4'. The upgrade of the IDR reflects Fitch's revised parent-subsidiary linkage (PSL) assessment, which considers the refinancing of Intralot's US operations' debt with new bank financing (maturing in 2025). The terms of this new debt improve Intralot's access to its subsidiary's cash flows and are favourable for the cost of debt at consolidated level. The revised PSL assessment also takes into account the increase in ownership of Intralot Inc. to 100%, fully equity-funded via placement of common shares. Retaining access to Intralot Inc.'s cash flows remains critical for Intralot to support adequate debt service ratios and its current rating. The 'CCC+' IDR reflects Fitch's view of high refinancing risks in relation to its 2024 notes, as Intralot will not generate sufficient free cash flow (FCF) to be able to fully repay them, thus relying on continuing access to the debt capital and bank markets for refinancing. At the same time, the limited scale of Intralot's ex-US operations compared with the amount of its debt could lead to refinancing difficulties or more onerous terms, putting further pressure on Intralot's cash flow generation. KEY RATING DRIVERS Parent Subsidiary Linkage Reassessed: New debt terms at the Intralot Inc. level increase Intralot's access to the cash flows of its US subsidiary due to the elimination of cash upstream restrictions. Therefore, we now assess Intralot's credit profile based on consolidated accounts, as opposed to our previous deconsolidation of Intralot Inc. for the calculation of leverage and coverage metrics. However, we acknowledge that US cash is not pooled at the Intralot S.A. level, which weakens its standalone liquidity profile. 2024 Notes Refinancing Risk: Fitch considers Intralot's 2024 notes to be structurally subordinated to Intralot Inc's debt. Refinancing this debt with no recourse to Intralot Inc. remains a challenge as Intralot S.A.'s (ex-US operations) standalone leverage is materially above consolidated levels, and we foresee very limited organic deleveraging at the ex-US business in 2022-2023. Prepayment of debt using cash upstream from Intralot Inc. or the partial monetisation of assets could help reduce the leverage of the ex-US business prior to refinancing. US Performance Critical for Rating: Fitch expects that Intralot Inc.'s business will continue to generate at least two-thirds of Intralot's consolidated EBITDA over 2022-2025, and Fitch assumes that its share of group's profits will be increasing over the medium term. Access to Intralot Inc.'s cash flows through dividends and management and service fees remains critical to Intralot's debt service as US debt remains currently ring-fenced. Limited Scale Outside US: After the Maltese contract was not renewed, we expect Intralot's non-US business to generate EBITDA in the range of EUR30-40 million, with negative growth in 2023-2025. This business scale, at current profitability levels, provides little cash flow generation to service Intralot's 2024 notes. The Fitch case points to a standalone (i.e. ex-US) funds from operations (FFO) fixed charge cover at around 1.1-1.3x in 2022-2024, with more than 50% of interest expenses in 2023 fully dependent on the cash upstream from Intralot Inc. Otherwise consolidated FFO fixed charge sits at a more comfortable level above 2.0x. Consolidated Leverage Considerably Lower: Intralot's consolidated leverage profile has improved since 2021 due to Intralot Inc.'s materially stronger standalone profile, which we previously deconsolidated for calculation of leverage and coverage metrics. We forecast that Intralot will be able to maintain adjusted gross debt/EBITDAR at around 6.0x-6.5x in 2022-2024. On a standalone basis, Intralot's leverage remains excessive, with FFO adjusted leverage forecast at 11.0x-12.0x in 2022-2024, compared with 7.0x-8.0x on a consolidated basis. Exposure to FX Volatility: Most of Intralot's revenues are not generated in its reporting currency, increasing its exposure to FX market volatility. In 2021, Turkey and Argentina accounted for around 20% of Intralot's revenues and Turkish lira and Argentine peso depreciation in 2022 will affect consolidated revenues and operating results. US dollar appreciation to the euro should partially offset this impact. Intralot does not employ financial derivatives to hedge its exposure to currency risk and future exposure to currency volatility, especially in emerging markets, could materially affect its performance. DERIVATION SUMMARY Intralot's current financial profile is not comparable with that of other more business-to-consumer gaming companies, such as Flutter Entertainment plc (BBB-/Negative), Entain (BB/Positive), Allwyn International a.s. (Sazka, BB-/Stable). Intralot has smaller size and lower through-the-cycle profitability than gaming operator Codere (WD). After the completion of its 2021 restructuring, Intralot has similar business profile characteristics to Inspired Entertainment, Inc. (B-/Positive) but it still exhibits significantly weaker leverage profile vs Inspired, which Fitch expects to demonstrate deleverage to levels more consistent with 'B' over the next two years, hence its Positive Outlook. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer: − FY22 revenues declining by 13.5% reflective primarily of the reduction in the contribution from Malta; a further decline (- 14.7%) in FY23 on the back of the complete removal of the Maltese revenue as well as FX volatility in Argentina (as assumed by Fitch) - Flat revenues in FY24 followed by a low single digit ( ============= I R E L A N D ============= CLONMORE PARK: Fitch Assigns B-sf Rating to Class F Debt -------------------------------------------------------- Fitch Ratings has assigned Clonmore Park CLO DAC final ratings. Clonmore Park CLO DAC A-Loan LT AAAsf New Rating A-Note XS2495510666 LT AAAsf New Rating B-1 XS2495510823 LT AAsf New Rating B-2 XS2495511128 LT AAsf New Rating C-1 XS2495511474 LT A+sf New Rating C-2 XS2507908643 LT Asf New Rating D-1 XS2495511631 LT BBBsf New Rating D-2 XS2507910037 LT BBB-sf New Rating E XS2495511805 LT BB-sf New Rating F XS2495512019 LT B-sf New Rating Subordinated Notes XS2495512282 LT NRsf New Rating TRANSACTION SUMMARY Clonmore Park CLO DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds were used to fund a portfolio with a target par of EUR350 million. The portfolio is actively managed by Blackstone Ireland Limited. The collateralised loan obligation (CLO) has a 4.5-year reinvestment period and an 8.5-year weighted average life test (WAL). KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at the 'B' category. The Fitch-calculated weighted average rating factor (WARF) of the identified portfolio is 24.39. High Recovery Expectations (Positive): At least 90% of the portfolio will comprise senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate (WARR) of the identified portfolio is 62.63%. Diversified Portfolio (Positive): The transaction has two matrices effective at closing corresponding to the 10-largest obligors at 25% of the portfolio balance and two fixed-rate assets limits at 5% and 12.5% of the portfolio. It also has two forward matrices corresponding to the same top-10 obligor and fixed-rate asset limits that will be effective one year post closing, provided that the aggregate collateral balance (defaults at Fitch-calculated collateral value) will at least be at the target par. The transaction also includes various other concentration limits, including the maximum exposure to the three-largest Fitch-defined industries in the portfolio at 40%. These covenants ensure that the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has a 4.5-year reinvestment period and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL used for the transaction's stressed-case portfolio and matrices analysis is 12 months less than the WAL covenant, to account for structural and reinvestment conditions post-reinvestment period, including the over-collateralisation (OC) and Fitch's 'CCC' limitation tests, among others. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during the stress period. Class E Rating Above Model-Implied: The rating of class E note is one notch above its model-implied rating (MIR). The shortfall at the selected covenant is small at -0.3% and the failure occurs in one out of 18 simulated scenarios. Further, the notes show a large downgrade cushion based on the identified portfolio at 'BB-sf'. Its high credit enhancement at 12.32% also supports the 'BB-sf' rating. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: A 25% increase of the mean default rate (RDR) across all ratings and a 25% decrease of the recovery rate (RRR) across all ratings would result in downgrades of up to four notches across the structure. Downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of default and portfolio deterioration. Factors that could, individually or collectively, lead to positive rating action/upgrade: A 25% reduction of the mean RDR across all ratings and a 25% increase in the RRR across all ratings would result in upgrades of no more than four notches across the structure, apart from the class A notes, which are already at the highest rating on Fitch's scale and cannot be upgraded. Upgrades, except for the class A notes, may occur on better-than-expected portfolio credit quality and deal performance, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. ENERGIA GROUP: Fitch Affirms BB- LongTerm IDR, Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed Energia Group Limited's Long-Term Issuer Default Rating (IDR) at 'BB-'. The Outlook is Stable. The rating affirmation reflects Energia Group's solid business mix with high levels of cash flow visibility driven by the combination of capacity auctions, renewables support schemes, power procurement at Ballylumford and its regulated supply business in Northern Ireland (NI). As an integrated generator and energy supply provider, Energia Group has seen its generation business offset negative earnings in the energy supply business due to the high energy price environment. The Stable Outlook reflects Fitch's expectations that Energia Group will maintain a capital structure with net debt up to 4.0x EBITDA at the restricted group level. Despite the anticipation of high levels of capex related to renewable generation and uncertainty on dividend levels, Fitch's rating case reflects a forecast average funds from operations (FFO) net leverage of 4.4x across the rating horizon, consistent with the 'BB-' rating. KEY RATING DRIVERS Increasing Capex Intensity: Higher-than-previously forecast capex and fairly weaker customer supply EBITDA increase leverage in the near term. Energia Group has developed 309MW of its own operational onshore windfarms in recent years and it is at various stages of development for a further 267MW of onshore wind projects, 313MW of solar and 50MW of battery storage by FY26 (year-end March). In addition, it is in the development stage for the construction of a data centre adjacent to its Huntstown campus. Energia Group has also received foreshore licences to investigate the feasibility of offshore wind sites in the north Celtic and south Irish seas, which is providing good growth prospects beyond the current forecast period to FY26. Financial Policy Allows for Growth: The restricted group's operations were highly free cash flow (FCF)-positive in FY22. However, Fitch continues to assume significant growth capex with negligible EBITDA contribution, which should lead to negative FCF to FY26. Fitch also assumes the company to maintains net debt at 4.0x EBITDA (restricted group) on average, which is in line with our negative sensitivity for the rating. The ratings could come under pressure if Energia Group is not able to fully hedge against adverse market conditions or if it adopts a more aggressive capex and dividend policy that would increase leverage above this level. Negative Supply Offsets Improved Generation: Renewables power purchase agreements (PPAs) in FY22 with raised EBITDA levels reflected high weighted market prices. This is forecast to increase in FY23 as the average price across the year rises further before normalising in FY24. The Huntstown flexible generation business also benefits from the higher market prices. Set against this, the customer solutions segment saw negative margins due to high power market prices leading to higher costs. Huntstown Benefits from Higher Utilisation: Flexible generation saw significantly improved EBITDA of EUR104 million for FY22 (EUR62 million in FY21), reflecting high energy prices and high usage. EBITDA margins are anticipated to fall in FY23 as the high gas price relative to coal reduces utilisation. In addition, after suffering a transformer outage at Huntstown 2 in January 2021, which continued into October 2021 Energia Group successfully claimed insurance proceeds in relation to the earnings impact of the outage, offsetting the loss incurred. These were included in Huntstown EBITDA for FY22. Solid Business Mix: Fitch estimates the share of regulated and quasi-regulated EBITDA of the restricted group to increase significantly early in the forecast period before normalising towards FY26 at around 60%. This is due to the continuing negative impact of higher energy prices on the customer solutions division. The restricted group had on average 58% of regulated and quasi-regulated EBITDA in FY20 and FY21, when including dividends from project subsidiaries. In FY24 the regulated PPB contract will end but this will be offset by forecast higher dividends from the renewables segment, which remain outside of the restricted group. Potential Windfall Tax Risk Limited: It is Fitch's view that the potential introduction of windfall taxes in NI and Republic of Ireland (RoI) could have a limited effect on Energia Group due to high energy prices having both a negative impact on the customer supply business while having a positive impact on generation. The integrated profile of Energia provides a natural hedge of earnings but also structurally offsets windfall profits for the restricted group. DERIVATION SUMMARY Energia Group has a structurally lower share of contracted earnings than Drax Group Holdings Limited (Drax, BB+/Stable), but it is more integrated and diversified. We allow Energia Group 4.5x FFO net leverage at the 'BB-' level compared with Drax's 2.8x at 'BB+', implying a broadly similar debt capacity for a given rating. ContourGlobal Plc (BB-/RWN) is a large generation holding company also rated on the basis of a restricted group business and financial profile, and has a slightly higher debt capacity than Energia Group with FFO gross leverage at 4.5x, due to its larger size and greater diversification, partially offset by limited vertical integration. ContourGlobal's RWN reflects uncertainty around their long-term capital structure and financial policy following the announced acquisition of the company by funds advised by global investment firm Kohlberg Kravis Roberts & Co. Inc. and its affiliates (KKR). This could lead ContourGlobal towards a more aggressive capital structure. Techem Verwaltungsgesellschaft 674 mbH (B/Stable) has an 8.0x FFO gross leverage sensitivity at its 'B' rating, indicating a higher debt capacity due to its high share of contracted revenue. KEY ASSUMPTIONS Fitch's Key Assumptions Within Our Rating Case for the Issuer - Energia Group's customer supply average EBITDA margins of around 0.1% to FY27, based on Fitch assumptions. This will be due to continued deeply negative margins in FY23 following on from FY22 due to high power prices. Supply EBITDA margins to return to around 3.9% as energy prices ease by FY27 - Power NI EBITDA margins of around 4% through to FY26 with unchanged regulation for residential supply in NI - Average load factor of 27% for owned wind farms leading to EBITDA margins of around 75% on average through FY22-FY27 with a similar EBITDA trend for the PPA portfolio - Huntstown EBITDA based on existing capacity agreements and management's guidance - Negative working capital as per management forecasts, primarily reflecting the reversal of working-capital timing benefits of FY22 including the payment on account of hedge debtors. Additional outflow during FY23 - FY27 on reversal of over- recovery in relation to the PPB contract in FY21-FY22 - Capex of restricted group on average at around EUR75 million per year to FY27, reflecting new growth projects with only limited earnings contribution from growth capex - Dividend pay-outs consistent with below 4.0x net debt / EBITDA target RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - A decrease in restricted group's FFO net leverage to below 3.7x on a sustained basis - A structural decrease in business risk due to higher average contribution from the regulated/contracted generation business Factors that could, individually or collectively, lead to negative rating action/downgrade: - Large debt-funded expansion or deterioration in operating performance, resulting in restricted group's FFO net leverage above 4.5x and FFO interest cover below 3x on a sustained basis - Reduced share of regulated and quasi-regulated earnings to below 50% leading to a reassessment of maximum debt capacity - A material increase in the super senior revolving credit facility (RCF) could be negative for the senior secured rating LIQUIDITY AND DEBT STRUCTURE Sound Liquidity: As at 31 March 2022 Energia Group had EUR369.3 million in available cash and cash equivalents (excluding around EUR53 million of restricted cash). It also has access to EUR109 million of undrawn liquidity on the cash portion of its RCF expiring in June 2024. Wind-capacity assets and debt financed through project-finance facilities are excluded from our debt calculation as the debt is held outside the restricted group on a non-recourse basis. The restricted group has no imminent short-term debt and its next maturing debt is its GBP225 million senior secured notes due in September 2024, followed by its EUR350 million senior secured notes in September 2025. ISSUER PROFILE Energia Group is an integrated electricity generation and supply company operating across NI and ROI. Its generation assets include 309MW of wind assets, 747MW of CCGTs while it further procures power under contract with 600MW in NI. SUMMARY OF FINANCIAL ADJUSTMENTS Fitch deconsolidates non-recourse project-finance subsidiaries that sit outside the ring-fenced perimeter. Rating Prior ------ ----- Energia Group ROI Holdings Designated Activity Company super senior LT BB+ Affirmed RR1 BB+ senior secured LT BB+ Affirmed RR2 BB+ Energia Group NI FinanceCo PLC senior secured LT BB+ Affirmed RR2 BB+ Energia Group NI Holdings Limited super senior LT BB+ Affirmed RR1 BB+ Energia Group Limited LT IDR BB- Affirmed BB- HARVEST CLO VII: S&P Affirms B- (Sf) Rating on Class F-R Notes -------------------------------------------------------------- S&P Global Ratings raised its credit ratings on Harvest CLO VII DAC's class B-R, C-R, and D-R notes. At the same time, we affirmed our ratings on the class A-R, E-R, and F-R notes. The rating actions follow the application of its global corporate CLO criteria and its credit and cash flow analysis of the transaction based on the June 2022 trustee report. S&P's ratings address timely payment of interest and ultimate payment of principal on the class A-R and B-R notes, and the ultimate payment of interest and principal on the class C-R, D-R, E-R, and F-R notes. Since the notes were refinanced in 2017: -- The weighted-average rating of the portfolio remains at 'B'. -- The portfolio has become less diversified, as the number of performing obligors has decreased to 93 from 108. -- The portfolio's weighted-average life has decreased to 3.11 years from 5.81 years. -- The percentage of 'CCC' rated assets has increased to 5.53% from 3.17%. Despite a more concentrated portfolio and a deterioration in credit quality, the scenario default rates have decreased for all rating scenarios due to the reduction in the weighted-average life of the portfolio to 3.14 years from 5.81 years. Portfolio Benchmarks CURRENT AT RESET SPWARF 2,972.40 2,600.17* Default rate dispersion (%) 641.04 795.10 Weighted-average life (years) 3.14 5.81 Obligor diversity measure 70.45 86.11 Industry diversity measure 17.80 17.51 Regional diversity measure 1.38 1.65 *Calculated using the portfolio at reset and applying current CLO criteria to derive an SPWARF for the comparison of portfolio credit quality. SPWARF—S&P Global Ratings weighted-average rating factor. On the cash flow side: -- The reinvestment period for the transaction ended in April 2021. -- The class A-R notes have deleveraged by EUR80.28 million -- No class of notes is currently deferring interest. -- All coverage tests are passing as of the June 2022 trustee report. Transaction Key Metrics CURRENT AT RESET Total collateral amount (mil. EUR)* 210.33 300.00 Defaulted assets (mil. EUR) 2.02 0 Number of performing obligors 93 108 Portfolio weighted-average rating B B 'CCC' assets (%) 5.53 3.17 'AAA' SDR (%) 60.13 66.78 'AAA' WARR (%) 37.32 36.37 *Performing assets plus cash and expected recoveries on defaulted assets. SDR--scenario default rate. WARR--Weighted-average recovery rate. Following the deleveraging of the senior notes the class A-R to E-R notes benefit from higher levels of credit enhancement compared with at the refinancing in 2017: Credit Enhancement CURRENT (%) AT RESET (%) Class A-R 55.01 41.70 Class B-R 36.38 28.63 Class C-R 26.39 21.63 Class D-R 19.45 16.77 Class E-R 10.61 10.57 Class F-R 6.14 7.43 S&P said, "Based on the improved scenario default rates, higher portfolio weighted-average recovery, and higher credit enhancement afforded to the notes we have raised our ratings on the class B-R, C-R, and D-R notes. At the same time, we have affirmed our ratings on the class A-R, E-R, and F-R notes. "On a standalone basis, the results of the cash flow analysis indicated higher ratings than those currently assigned for the class C-R, D-R, and E-R notes. The transaction has continued to amortize since the end of the reinvestment period in April 2021. However, we have considered the limited break-even default ratio cushion at higher ratings, while noting that the manager may still reinvest unscheduled redemption proceeds and sale proceeds from credit-impaired and credit-improved assets. Such reinvestments (as opposed to repayment of the liabilities) may therefore prolong the note repayment profile for the most senior class of notes." Ratings List CLASS RATING TO RATING FROM RATINGS RAISED B-R AAA (sf) AA (sf) C-R AA (sf) A (sf) D-R A (sf) BBB (sf) RATINGS AFFIRMED A-R AAA (sf) E-R BB (sf) F-R B- (Sf) TORO EUROPEAN 4: Fitch Affirms B+sf Rating on Class F-R Debt ------------------------------------------------------------ Fitch Ratings has upgraded Toro European CLO 4 DAC's class B-1-R, B-2-R and B-3-R notes and affirmed the others, as detailed below. Toro European CLO 4 DAC A-R XS1639912762 LT AAAsf Affirmed AAAsf B-1-R 89109MAH7 LT AAAsf Upgrade AA+sf B-2-R 89109MAM6 LT AAAsf Upgrade AA+sf B-3-R 89109MAP9 LT AAAsf Upgrade AA+sf C-R 89109MAS3 LT A+sf Affirmed A+sf D-R 89109MAV6 LT BBB+sf Affirmed BBB+sf E-R XS1639910808 LT BB+sf Affirmed BB+sf F-R 89109MAZ LT B+sf Affirmed B+sf TRANSACTION SUMMARY Toro European CLO 4 DAC is a cash-flow collateralized loan obligation (CLO) backed by a portfolio of mainly European leveraged loans and bonds. The portfolio is managed by Chenavari Credit Partners LLP and the transaction exited its reinvestment period in July 2021. While the manager can technically reinvest subject to the reinvestment criteria, it has not done so since November 2021. KEY RATING DRIVERS Transaction Deleveraging: The upgrade of the class B-1-R, B-2-R and B-3-R notes reflects the deleveraging of the transaction since the last review in October 2021. The class A-1 notes have paid down by EUR46.1 million during the review period. Credit enhancement (CE) has improved across all rated notes. The transaction exited its reinvestment period in July 2021 and the manager is unlikely to reinvest unscheduled principal proceeds and sale proceeds from credit-risk and credit-improved obligations due to the breach of several tests that need to be maintained or improved. The transaction's weighted average life (WAL) test needs to be satisfied and its decreasing WAL covenant makes it less likely this will be achieved. Since the manager is unlikely to reinvest, Fitch has assessed the transaction based on the current portfolio, and has the Fitch-derived ratings (FDR) of all assets in the current portfolio with Negative Outlook by one notch . The Stable Outlooks on all notes reflect Fitch's expectation that deleveraging of the notes will be limited in the next 12-18 months, given the small portion of assets maturing by 2023 and limited prepayment expectation in the current uncertain macroeconomic environment. Stable Asset Performance: The transaction's metrics indicate stable asset performance. The transaction is currently 1.71% below par and is passing all coverage tests. Similar to the last review, it has continued to fail the WAL test (3.19 versus 3.03), the weighted average spread test (3.65% versus 3.80%) and the weighted average rating factor (WARF) test (34.22 versus 34.00). Exposure to assets with a Fitch-derived rating of 'CCC+' and below is 5.81%, better than 7.26% at the last review, as calculated by the trustee. These are no defaulted assets in the portfolio. 'B'/'B-' Portfolio: Fitch assesses the average credit quality of the obligors at 'B'/'B-'. The Fitch-calculated WARF of the current portfolio was 25.37. High Recovery Expectations: Senior secured obligations comprise 97.89% of the portfolio as calculated by the trustee. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate of the current portfolio is 62.27%. Diversified Portfolio: The portfolio has amortised and is becoming more concentrated but it is still sufficiently diversified across obligors, countries and industries. No obligor represents more than 2.37% of the portfolio balance. Cash-flow Modelling: The transaction was run using the current portfolio with assets on Negative Outlook notched down by one notch from the FDR. Deviation from Model-implied Rating: Fitch deviated from the model-implied ratings (MIR) by one to two notches for the class D-R, and F-R notes, due to the fact that these notes only had modest default rate cushions at their MIRs. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: An increase of the default rate (RDR) at all rating levels by 25% of the mean RDR and a decrease of the recovery rate (RRR) by 25% at all rating levels would result in downgrades of no more than three notches depending on the notes. While not Fitch's base case, downgrades may occur if build-up of the notes' CE following amortisation does not compensate for a larger loss expectation than initially assumed due to unexpectedly high levels of defaults and portfolio deterioration. Factors that could, individually or collectively, lead to positive rating action/upgrade: A reduction of the RDR at all rating levels by 25% of the mean RDR and an increase in the RRR by 25% at all rating levels would result in upgrades of up to three notches depending on the notes, except for the class A and B notes, which are already at the highest rating on Fitch's scale and cannot be upgraded. Upgrades may also occur if the portfolio's quality remains stable and the notes continue to amortise, leading to higher CE across the structure. =========================== U N I T E D K I N G D O M =========================== CENTRAL CRAIGAVON: Rushmere Shopping Centre Put Up for Sale ----------------------------------------------------------- Margaret Canning at Belfast Telegraph reports that Rushmere Shopping Centre and Retail Park in Craigavon has gone on the market for GBP57 million after the company behind it was put into administration by Bank of Ireland. According to Belfast Telegraph, it's being sold by commercial property agents Savills and CBRE NI in what they anticipate will be the biggest investment deal of 2022. The site is the main retail attraction in the area and comprises 30 acres, featuring 50 units and key tenants including Boots, Home Bargains, Superdrug and Dunnes Stores. Primark is also due to open up at Rushmere after taking 50% of the former Debenhams department store on the site. Sainsbury's also had an outlet at Rushmere until February last year, while Homebase, Matalan, Next and Currys/PC World operate in the retail park. Trading has continued at the shopping centre and retail park throughout administration, Belfast Telegraph notes. Central Craigavon, the company behind Rushmere Shopping Centre in Craigavon, went into administration in April following a GBP32.6 million loss in 2019. Bank of Ireland was the main lender to the business, Belfast Telegraph recounts. Moyallen Properties, which owns Magowan West Shopping Centre in Portadown, along with related companies Moyallen Woking and Peacocks Centre, also went into administration on the same date, Belfast Telegraph relays. According to an administrators' update for Central Craigavon filed at the end of May by administrators Grant Thornton, "over the last number of years the centre [had] been impacted by the loss of some key retailers, including Debenhams and Topshop/Arcadia, who both entered into administration", Belfast Telegraph discloses. As well as leading to a major reduction in retail income, the departures had also left big, vacant units and costs such as rates, service charge and insurance, the report said, Belfast Telegraph notes. "The Covid-19 pandemic has also had a significant impact on the financial performance and asset value, putting pressure on the company with the reduction of footfall levels and tenants paying reduced rents in the periods of closure," Belfast Telegraph quotes the report as saying. It explained that the company had been liaising with Bank of Ireland on a strategy, given the decline in performance and asset value. The report added: "Following a further review of all assets and considering the position, Bank of Ireland took the decision in early April 2022 to take the necessary steps to have the company and the related companies placed into administration as a qualifying floating charge holder appointment . . . "It is likely that the asset will be brought to market for sale in the coming months and we are currently finalising our strategy, approach and timelines in this regard." EMF UK 2008-1: Fitch Affirms CCC Rating on Class B2 Debt -------------------------------------------------------- Fitch Ratings has affirmed EMF-UK 2008-1 Plc's notes and removed the class A3a, B1 and B2 notes from Under Criteria Observation (UCO). Rating Prior ------ ----- EMF-UK 2008-1 Plc Class A1a XS0352932643 LT AAAsf Affirmed AAAsf Class A2a XS1099724525 LT AAAsf Affirmed AAAsf Class A3a XS1099725415 LT A+sf Affirmed A+sf Class B1 XS0352308075 LT BBsf Affirmed BBsf Class B2 XS1099725928 LT CCCsf Affirmed CCCsf TRANSACTION SUMMARY The transaction comprises non-conforming UK mortgage loans originated by Southern Pacific Mortgage Limited, Preferred Mortgages Limited (formerly wholly-owned subsidiaries of Lehman Brothers), London Mortgage Company and Alliance & Leicester Plc. KEY RATING DRIVERS Off UCO: In the update of its UK RMBS Rating Criteria on May 23, 2022, Fitch revised its sustainable house price for each of the 12 UK regions, leading to increased regional multiples for all regions other than North East and Northern Ireland. The criteria also includes updated house price indexation and gross disposable household income. As a result, sustainable house prices are now higher in all regions except Northern Ireland, leading to higher recovery rates and consequently lower expected losses for UK RMBS transactions. Fitch also reduced its foreclosure frequency assumptions for loans in arrears based on a review of historical data from its UK RMBS rated portfolio. The changes better align the assumptions with expected case observed performance and incorporate a margin of safety at the 'Bsf' level. Change in Arrears Reporting Methodology: In 1Q22, the servicer updated its arrears calculation methodology. Rather than determining the number of months in arrears by dividing a borrower's arrears balance by the payment due, the servicer now refers to the number of full monthly payments missed, resulting in a reduction of the reported number of months in arrears for some borrowers. As at June 2022, total arrears stood at 11.8%, which is a decline of 3.5pp from June 2021 reported levels. Fitch has incorporated the updated methodology into its analysis of the ratings. Elevated Senior Fees, Declining Excess Spread: Excess spread declined at the most recent payment dates due to the combined effect of higher interest payments on the outstanding notes and increased third-party fees paid by the transaction, which rank senior in the waterfall. Additionally, interest rate rises have been slower to feed through to the borrowers in the pool, further impacting excess spread. As a result, interest due on the class B2 notes was deferred at the June 2022 payment date and a small draw on the reserve fund was also reported. The reduction in excess spread indicates some deterioration in the transaction's performance and led to the affirmation of the notes. The Negative Outlook on the class B1 notes reflects Fitch's expectations of further strains on excess spread and draws on the reserve fund. Payment Interruption Risk: The transaction has a dedicated liquidity reserve available to cover payment interruption risk for the senior notes in the event of a servicer disruption. However, the liquidity reserve only covers interest shortfalls for the class A1a and A2a notes. The absence of a dedicated liquidity for the class A3 notes prevents any upgrade above the 'Asf' rating category. Floored Performance Adjustment Factor: Fitch calculated a performance adjustment factor (PAF) of 60% for the owner-occupied (OO) sub-pool, based on its approach set out in the UK RMBS criteria and the transaction's historical performance. The OO sub pool features a significant proportion of interest-only loans at 73%, which Fitch views as having elevated default risk at maturity when the full principal balance of the loans will become due. To account for the back-loaded risk profile of the OO sub-pool, Fitch has floored the PAF at 100% in its asset modelling. RATING SENSITIVITIES Factors that could, individually or collectively, lead to negative rating action/downgrade: The transaction's performance may be affected by changes in market conditions and the economic environment. Weakening asset performance is strongly correlated to increasing levels of delinquencies and defaults that could reduce credit enhancement (CE) available to the notes. Additionally, unanticipated declines in recoveries from the sale of underlying properties may make certain note ratings susceptible to potential negative rating actions depending on the extent of the decline. Fitch tested a 15% increase in the weighted average foreclosure frequency (WAFF) and a 15% decrease in the weighted average recovery rate (WARR). The results indicate a downgrade of up to five notches for the class B1 notes. Factors that could, individually or collectively, lead to positive rating action/upgrade: Stable to improved asset performance driven by lower delinquencies and defaults would lead to increasing CE levels and potential upgrades. Fitch tested an additional rating sensitivity scenario by applying a 15% decrease in the WAFF and a 15% increase in the WARR. The rating of the class B1 notes could be upgraded by up to four notches and the class A3a notes would remain capped at 'A+sf' for payment interruption. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY EMF-UK 2008-1 Plc Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pools and the transaction. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Fitch did not undertake a review of the information provided about the underlying asset pools ahead of the transaction's initial closing. The subsequent performance of the transaction over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG CONSIDERATIONS EMF-UK 2008-1 Plc has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security due to the pool exhibiting an interest-only maturity concentration of legacy non-conforming owner-occupied loans of greater than 20%, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. EMF-UK 2008-1 Plc has an ESG Relevance Score of '4' for Human Rights, Community Relations, Access & Affordability due to a significant proportion of the pool containing owner-occupied loans advanced with limited affordability checks, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. IWH UK FINCO: Fitch Withdraws 'B' LongTerm IDR ---------------------------------------------- Fitch Ratings has withdrawn IWH UK Finco Limited's (Theramex) Long-Term Issuer Default Rating (IDR) of 'B' with Stable Outlook. The group repaid its EUR470 million term loan B on August 8, 2022, the rating for which has also been withdrawn. The rating withdrawal follows the closing of Theramex's acquisition by Carlyle and PAI. The ratings are being withdrawn due to lack of sufficient information to rate Theramex under its new ownership and debt structure. Accordingly, Fitch will no longer provide ratings or analytical coverage of Theramex. KEY RATING DRIVERS Not applicable as the ratings have been withdrawn. KEY ASSUMPTIONS Not applicable RATING SENSITIVITIES Not applicable as the ratings have been withdrawn. ISSUER PROFILE Theramex markets a portfolio of branded women's health medications. ESG CONSIDERATIONS Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Rating Prior ------ ----- IWH UK Finco Limited LT IDR WD Withdrawn B IWH UK Midco Limited senior secured LT WD Withdrawn B+ MIDAS: Administrators Send Confidential Report to Regulator ----------------------------------------------------------- William Telford at CornwallLive reports that administrators dealing with the fall of South West construction leviathan Midas have sent a report to the Government which could lead to its directors being disqualified. Global business consultancy Teneo Financial Advisory Ltd is also encouraging people owed money to report any concerns they have about events leading to Exeter-headquartered Midas going bust, CornwallLive states. London-based Teneo has confirmed it has sent a confidential report to the Insolvency Service which will look at whether action should be taken against Midas board members, CornwallLive relates. Midas Group Ltd and its subsidiaries collapsed into administration in February 2022 with estimated debts of at least GBP70 million, CornwallLive recounts. Midas was involved in huge construction projects across the South West and companies owed cash include several in Plymouth. According to CornwallLive, Teneo has said it has prepared a confidential report on the conduct of Midas directors in the three years leading up to its appointment as administrators. At the time of entering administration, Midas directors included Stephen Hindley, Alan Hope and Peter Skoulding, CornwallLive discloses. But Teneo said that in addition, it is also required to consider whether there is any action that could be taken against directors and other organisations, including auditors, that would result in recoveries of cash for the administration estate, CornwallLive notes. The spokesperson, as cited by CornwallLive, said: "This assessment is ongoing and the administrators will report in their progress reports if any actions are commenced/proposed." According to CornwallLive, Teneo also said it is also encouraging any of Midas's creditors to contact the administrators should they have "any concerns regarding the conduct of the company in the period prior to the administrators' appointment." It is also working to recover cash owed to Midas before it went under, including for work in progress, CornwallLive states. Teneo is already dealing with claims from nearly 2,000 creditors, including dozens in Plymouth, CornwallLive states. Midas Group Ltd and its subsidiaries Midas Construction Ltd, Midas Retail Ltd, Mi-Space (UK) Ltd, Mi-Space Property Services Ltd, Midas Commercial Developments Ltd and Falmouth Developments Ltd all fell into administration in early 2022 blaming a toxic cocktail of Covid, inflation, money owed to them but not paid, and cash flow problems for causing a financial doomsday, CornwallLive discloses. Among many Plymouth firms listed as creditors are Collaton Safety Management, D&L McBride Building Consultancy, EDF Energy, LTC Powered Access, Plymouth Removers, DCA Public Relations, Western Power Distribution, ADS Window Films, All Seasons Group Services, B&C Carpentry, and BPUK Environment, according to CornwallLive. The two main companies in the Midas family -- Midas Group Ltd and Midas Construction Ltd -- have realisable assets of just GBP8,354,644. But when preferential and secured creditors are paid it means there will be a predicted shortfall of GBP60,290,904 for the hundreds of small firms and individuals in the supply chain, CornwallLive states. In addition, Midas' housing arm Mi-Space (UK) Ltd owes more than GBP12 million with more than GBP10 million of claims unlikely to be paid. This means the overall Midas deficit is now north of GBP70 million, CornwallLive notes. SINGLETON'S DAIRY: Goes Into Administration ------------------------------------------- Matt Davies at Blog Preston reports that a Longridge cheese firm that struggled with the Covid-19 pandemic and rising milk costs has fallen into administration. Kroll has appointed Andrew Knowles and Steven Muncaster administrators of Longridge cheesemaker and cheesemonger Singleton's Dairy Limited, Blog Preston relates. Trading as Singletons and Co, the family-run business has handcrafted award-winning cheeses in the UK for over 80 years. It supplies products to retail and wholesale and exports to over 30 countries worldwide. According to Blog Preston, Andrew Knowles, the senior director of Kroll, said: "Singletons has a long-established track record for its products. "However, like many companies in this sector, it has had to manage the effects of Covid-19, the rising milk costs and other additional overheads. "The company attempted to sell the business as a going concern prior to the appointment, but this was unsuccessful." TREE OF LIFE: Failure to Secure Investment Prompts Administration ----------------------------------------------------------------- Alec Mattinson and Edward Devlin at The Grocer report that health food wholesaler Tree of Life has fallen into administration following a failed attempt to secure third party investment earlier this year. According to The Grocer, a statement on the Tree of Life website confirmed it had appointed Chris Pole and Ryan Grant of Interpath Advisory as joint administrators on Aug. 22 for Tree of Life UK. The Grocer reported in July that Tree of Life owner Health Made Easy was locked in talks with lenders to agree new facilities and secure its future. Chairman Michael Cole told The Grocer at the time that Health Made Easy was looking to realign its banking facilities to "fit and support its revised strategy". "The group is facing up to the challenging circumstances of inflation impact and supply issues, as are many businesses at this time," The Grocer quotes Mr. Cole as saying. "We are working collaboratively alongside our long-standing suppliers and customers." Health Made Easy previously hired mid-market M&A advisor FinnCap Cavendish in 2020 to explore the potential sale of the company and capitalise on strong 2020/21 growth, but the process ended without success, The Grocer notes. VMED O2: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable --------------------------------------------------------- Fitch Ratings has affirmed VMED O2 UK Limited's (VMO2) Long-Term Issuer Default Rating (IDR) at 'BB-' with Stable Outlook. In addition, Fitch has assigned VMO2's GBP1.5 billion senior secured additional bank facility an expected rating of 'BB+(EXP)/RR2'. VMO2's rating considers the company's well-established market position and strong operating profile in the UK telecoms market, including its leading position in UK mobile and Fitch-estimated in-franchise leadership in fixed broadband. Its somewhat muted revenue performance in 1H22 against the backdrop of mid-to-high single-digit inflation-linked price rises confirms that the UK market remains competitive. The relative nascence of tariff increases (in 1Q22) and that the majority of service providers are adopting a similar pricing position provide some revenue visibility. Solid operating cash flow is offset by heightened investment needs as VMO2 upgrades its cable network to fibre to the home (FTTH). Fitch views its GBP1.6 billion dividend recapitalisation will help fund its parent companies' commitments to their recently announced UK fibre JV. We expect financial leverage to be managed around a company-defined net debt/EBITDA of 5.0x, in line with the rating but providing little or no headroom. The assignment of the final rating to the additional bank facility is contingent on the final documents conforming to information already reviewed. KEY RATING DRIVERS Strong Business Profile, Solid Financials: Fitch views the formation of a full network-based fixed-mobile convergent (FMC) operator in VMO2 with a fully developed mobile network and cable network covering roughly 54% of the UK as a strong competitor to market incumbent BT Group Plc (BBB/Stable) and the wider market. VMO2 is the clear mobile leader (37% subscriber share at 4Q21) and market number 3 in fixed broadband (21% access share). Fitch estimates its network footprint also gives VMO2 in-franchise broadband leadership. Fitch views its revenue profile as stable, which should benefit from inflation- adjusted pricing while synergies are driving solid margin expansion. Integration on Track: Synergies from the merger on June 1, 2021 of Virgin Media and O2 UK to form VMO2 are estimated by the company at GBP540 million annually. Cost and capex synergies include savings from Virgin's MVNO transition to the O2 mobile network, SG&A and network and IT efficiencies, including from the move to a single core network. While Fitch expects the majority of savings to accrue after 2023, progress appears to be so far on track. Margin expansion (on a pro-forma adjusted basis) in 2021 was 110bp, which widened to 120bp in 1H22. Fibre JV, Strategic Risk Sharing: In July 2022 VMO2's parent companies announced a fibre JV with a GBP4.5 billion plan to build out between 5 million and 7 million fibre homes by 2026. The JV includes an equity contribution of up to GBP700 million from VMO2's parents. With VMO2 as anchor tenant the build will expand its overall network coverage to around 80% of the country, with the potential to offer fibre-based wholesale access to compete with BT's Openreach. In Fitch's view execution risk exists. However, risk sharing with an infrastructure partner, funding commitments at the parent level, and the chance to materially expand the fibre footprint, make sound strategic logic. High Leverage, Transparent Financial Policy: Management's financial policy is to manage net debt/ EBITDA towards the higher end of a 4.0x-5.0x range, with dividend recaps expected to be used to sustain this target. A GBP1.5 billion bank facility will also be used to contribute funds to the GBP1.6 billion dividend in 2022. We believe the dividend will be used by the parents to fund the UK fibre JV, which in Fitch's view is an effective use of VMO2's cash flow. We estimate Fitch-defined net debt/EBITDA at 5.1x in 2022 before reducing gradually. Although breaching VMO2's rating threshold, Fitch views its financial policy as transparent and expects management to be disciplined in managing the metric at around 5.0x. Competitive, Rational Market: Fixed broadband pricing in the UK is underpinned by an industry consensus that network investment requires rational pricing. Fibre investment is taking place across the incumbent and alternative networks (altnets) with Openreach targeting 25 million FTTH coverage by 2026 and VMO2 up to 21 million homes by 2026-2028 (including its fibre JV). "Inflation plus" price increases have been implemented by principal operators, which Fitch expects to support stable-to rising revenue for the market. However, VMO2's year-on-year pro-forma fixed revenue fell 3% in 2Q22 on a 2.1% decline in fixed average revenue per user (ARPU), albeit reportedly due to base effects of high wholesale revenue a year ago. Leverage Thresholds Revised: Fitch's corporate finance group is transitioning to an EBITDA formulation for its core leverage thresholds from those based on funds from operations (FFO). In the case of VMO2 we have tightened its thresholds by 0.2x each to 5.0x and 4.3x, broadly reflecting the average gap between these metrics across the EMEA sub-investment grade telecoms portfolio. DERIVATION SUMMARY VMO2 has larger absolute scale than cable operators with strong mobile franchises such as VodafoneZiggo in the Netherlands or Telenet Group Holding N.V (both BB-/Stable) in Belgium. It has a stronger share of the UK mobile market than UPC Holding BV (BB-/Stable) has of the Swiss mobile market. The UK mobile market is more structurally challenging than some European markets, with four facilities-based mobile operators, a number of strong broadband operators offering convergent offers, and content with sports, in particular, as a strong driver of consumer preferences. The merger with O2 UK makes VMED a stronger competitor to incumbent BT. However, the latter benefits from wider broadband coverage, a stronger B2B presence and significant wholesale operations, which would allow BT more leverage capacity at any given rating level. VMO2's leverage thresholds are the same as for Telenet and UPC, reflecting good cash flow visibility and deleveraging capacity within management control. KEY ASSUMPTIONS - Revenue CAGR 1.1% by 2025, supported by revenue synergies from cross-selling opportunities, contractually agreed price rises, but offset by promotional ARPU pressure and continued challenges within B2B - EBITDA margins at 34.7%-37.1% in 2022-2025, driven by gradually increasing impact of synergies - Capex of GBP2.1 billion (around 20% of revenues) in 2022, followed by 17% through to 2025 including synergies and the benefit of lower capex from the migration of Project Lightening new build to the new greenfield fibre JV - Fitch splits costs-to-capture (CtC) between operating expenses and capex and treat all CtC as non-recurring below FFO. Fitch expects CtC totalling GBP700 million with a peak of over GBP300 million in 2022 - Dividend payment of GBP1.6 billion in 2022, with excess cash flows distributed via dividends such that the closing cash balance is around GBP60 million per year in 2023-2025 - Fitch adjusts gross debt by GBP530 million to reflect off balance-sheet factoring facilities RATING SENSITIVITIES Factors that could, individually or collectively, lead to positive rating action/upgrade: - Fitch-defined net debt/EBITDA below 4.3x on a sustained basis (equivalent to FFO net leverage below 4.5x) - A more conservative financial policy with strong and stable free cash flow (FCF) generation, reflecting a stable competitive and regulatory environment Factors that could, individually or collectively, lead to negative rating action/downgrade: - Fitch-defined net debt/EBITDA consistently above 5.0x (equivalent to FFO net leverage consistently above 5.2x) - FFO interest cover expected to remain below 3.0x on a sustained basis - A material decline in key operating and financial metrics, reflecting intensified competitive pressures LIQUIDITY AND DEBT STRUCTURE Satisfactory Liquidity: VMO2's cash balance was GBP48 million at end-2021 but liquidity is supported by expected positive pre-dividend FCF and an undrawn revolving credit facility of GBP1.4 billion. This will provide VMO2 with sufficient cover for any short-term liabilities due up to 2023. Refinancing pressure is low as the majority of the company's debt is long-dated with maturities from 2026. ISSUER PROFILE VMO2 is the second-largest convergent telecoms operator in the UK providing services across mobile, broadband internet, fixed line telephony and broadcasting services to consumers and enterprises. At end-2021, VMO2 generated GBP10.4 billion of pro-forma adjusted revenue and GBP3.7 billion of pro-forma adjusted EBITDA. Rating Prior ------ ----- Virgin Media SFA Finance Limited - senior secured LT BB+ Affirmed RR2 BB+ Virgin Media Bristol LLC - senior secured LT BB+ Affirmed RR2 BB+ Virgin Media Secured Finance Plc - senior secured LT BB+ Affirmed RR2 BB+ Virgin Media Vendor Financing Notes IV Designated Activity Company - Structured LT B+ Affirmed RR5 B+ VMED O2 UK Limited LT IDR BB- Affirmed BB- VMED O2 UK Holdco 4 Limited - senior secured LT BB+(EXP) Expected Rating RR2 - senior secured LT BB+ Affirmed RR2 BB+ Virgin Media Vendor Financing Notes III Designated Activity Company - Structured LT B+ Affirmed RR5 B+ VMED O2 UK Financing I plc - senior secured LT BB+ Affirmed RR2 BB+ Virgin Media Finance PLC - senior unsecured LT B Affirmed RR6 B WORCESTER WARRIORS: Set to Enter Administration Following Bailout ----------------------------------------------------------------- Joshua Lees at Mirror reports that Worcester Warriors are set to enter administration after receiving GBP14 million of taxpayers money during the COVID-19 pandemic to remain afloat. The Warriors received the bumper payment after struggling to cope when playing behind closed doors in across 2020 and 2021, Mirror relates. The Premiership club were issued with a winding up petition last week, after owing more than GBP6 million to HMRC. Following the news last week, Worcester revealed in a statement that they were looking for speedy "and satisfactory resolution", Mirror discloses. According to Mirror, the statement said: "From the outset, we have worked closely and openly with HMRC on a plan to clear these liabilities and a Time to Pay (TTP) arrangement has been in place. "Having kept HMRC fully apprised of the situation we are disappointed that they have taken the decision to issue a winding-up petition. The club's directors are in continuing dialogue with HMRC in an attempt to find a speedy and satisfactory resolution." However it seems this resolution is yet to have been found, with the club reportedly asking the Department for Digital, Culture, Media & Sport for permission to go into administration, Mirror states. Despite their struggling position Worcester are said to be considering administrative options that could allow them to continue to operate, Mirror notes. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2022. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or 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 * * *