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

                          E U R O P E

          Tuesday, October 4, 2022, Vol. 23, No. 192

                           Headlines



F R A N C E

EDF: French President Proposes Luc Remont as Next CEO, Chairman


G E R M A N Y

E-MAC DE 2006-I: Fitch Affirms 'CCsf' Rating on Class E Notes
UNIPER: Unipro Has Book Value of Up to EUR2.2 Billion


I R E L A N D

BOSPHORUS VII: Fitch Assigns 'B-(EXP)sf' Rating on Class F Debt
CARLYLE GLOBAL 2014-1: Fitch Affirms 'B+' Rating on Cl. F-RR Notes
CARLYLE GLOBAL 2014-3: Fitch Affirms 'B+' Rating on Cl. E-R Notes
FIDELITY GRAND 2022-1: Fitch Affirms 'B-' Rating on Cl. F Debt
PENTA CLO 4: Fitch Affirms 'B+sf' Rating on Class F Notes



I T A L Y

MONTE DEI PASCHI: Cash Call Talks Ongoing, Faces Tight Schedule


N E T H E R L A N D S

CAIRN CLO VI: Fitch Affirms 'B+sf' Rating on Class F-R Notes


R U S S I A

UZBEKNEFTEGAZ JSC: Fitch Affirms BB- LongTerm IDR, Outlook Stable
[*] RUSSIA: Banks Lost Estimated RUR1.5-Tril. Due to Ukraine War


S W E D E N

HEIMSTADEN AB: Fitch Alters Outlook on 'BB+' LongTerm IDR to Neg.
HEIMSTADEN BOSTAD: Fitch Affirms 'BB+' Rating on Subordinated Debt


U N I T E D   K I N G D O M

GATWICK AIRPORT: Fitch Affirms 'BB-' Rating on Notes
LGC GROUP: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
NOMAD FOODS: Fitch Alters Outlook on 'BB' LongTerm IDR to Negative
REDWOOD MONTESSORI: Rising Costs Prompt Liquidation
TURPIN DISTRIBUTION: Goes Into Administration

WESTSIDE HEALTH: Gym Shut Down Pending Liquidation

                           - - - - -


===========
F R A N C E
===========

EDF: French President Proposes Luc Remont as Next CEO, Chairman
---------------------------------------------------------------
Tassilo Hummel and Elizabeth Pineau at Reuters report that French
President Emmanuel Macron has proposed Luc Remont as EDF's next
chief executive and chairman, said the Elysee presidential office,
as France works on a full nationalisation of the struggling energy
company.

According to Reuters, Mr. Remont, currently a top executive at
Schneider Electric, is set to steer the nuclear energy giant
through its full nationalisation as it faces headwinds linked to
outages at many of its reactors.

He will now be heard by lawmakers in France's lower and upper
chambers of parliament who still need to clear his nomination,
Reuters states.  Reports have said the French government was
divided on whether or not to split up the roles of chief executive
and chairman, Reuters notes.

A parliamentary source told Reuters the votes will likely come in
October.

"It is important that EDF be stabilised quickly to tackle the
autumn and winter ahead," Reuters quotes the source as saying.

Mr. Macron's government this summer announced it would fully
nationalise the debt-laden utility, which shoulders most of the
country's power needs and will be the centrepiece of an ambitious
reactor construction programme, Reuters discloses.

EDF is currently rushing to get its fleet of nuclear power stations
ready for the winter after it needed to shut down several reactors
due to corrosion issues and safety checks, Reuters states.

Earlier this month, EDF also issued a new profit warning, Reuters
recounts.

The pressures on EDF have added to Europe's energy crisis, caused
by Russia's invasion of Ukraine, Reuters relays.




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

E-MAC DE 2006-I: Fitch Affirms 'CCsf' Rating on Class E Notes
-------------------------------------------------------------
Fitch Ratings has upgraded E-MAC DE 2005-I B.V.'s and E-MAC DE
2006-II B.V.'s class C notes and affirmed the other classes. Fitch
has also affirmed E-MAC DE 2006-I B.V.

  Debt                     Rating          Prior
  ----                     ------          -----
E-MAC DE 2006-I B.V.
  
  Class B XS0257590876  LT AAAsf Affirmed  AAAsf
  Class C XS0257591338  LT CCCsf Affirmed  CCCsf
  Class D XS0257592062  LT CCsf  Affirmed  CCsf
  Class E XS0257592575  LT CCsf  Affirmed  CCsf

E-MAC DE 2005-I B.V.

  Class C XS0221902538  LT BBBsf Upgrade   BBsf
  Class D XS0221903429  LT CCCsf Affirmed  CCCsf
  Class E XS0221904237  LT CCsf  Affirmed  CCsf

E-MAC DE 2006-II B.V.

  Class B XS0276933859  LT AAAsf Affirmed  AAAsf
  Class C XS0276934667  LT Asf   Upgrade   BBBsf
  Class D XS0276935045  LT CCsf  Affirmed  CCsf
  Class E XS0276936019  LT CCsf  Affirmed  CCsf

TRANSACTION SUMMARY

The transactions are true-sale securitisations of German
residential mortgage loans originated by GMAC-RFC Bank GmbH. Adaxio
AMC GmbH is the transaction's current servicer and the successor to
GMAC-RFC Bank GmbH.

KEY RATING DRIVERS

Swaps Can Support Transactions: Loans are mainly fixed-rate with
some floating-rate loans in the pools. The fixed-rate portion of
the portfolio is swapped with a fixed swap rate to be paid by the
SPV in exchange for 3m Euribor. Payments on both legs are made on
the asset balance including delinquent loans. Loans are excluded
from the balance after property sale.

On the loan reset dates, the issuer will renew the swap agreement
in respect of all loans that are resetting on that date. The new
swap rate ensures on the relevant day a minimum excess margin of
20bp after fees and senior expenses and after interest from all
rated notes.

Fitch has reflected this feature in our analysis, allowing the swap
rate to adjust to provide coverage for senior payments and note
interest and 20bp excess spread. Fitch assumes the share of fixed-
and floating-rate loans to remain constant. Fitch deems this a
reasonable assumption due to economic considerations on the
borrower side, despite some minor fluctuation in 2005-I and 2006-I
over recent years.

Unsecured Recoveries Cover High Costs: The transactions feature
separate waterfalls with no principal borrowing to cover fees and
expenses or note interest. The available interest funds contain a
significant amount of unsecured recoveries. These recoveries help
cover the high fees and expenses in the interest waterfall. While
the swap will provide some support to cover rising (in relative
terms) transactions costs, Fitch is limiting this effect by
assuming a minimum swap rate of -1%. This means excess spread can
fall below its guaranteed level in its analysis. It also addresses
the risk of excessive dependence on the swap counterparties.

Fitch assumes fees of EUR300,000 plus 0.5% of the collateral
balance annually, above the typical fees in RMBS. These fees are
lower than the actual fees in more recent payment periods. In
return Fitch does not consider unsecured recoveries as available
interest funds in our modelling.

The development of senior fees and expenses relative to available
interest funds and most importantly unsecured recoveries is crucial
for interest payments on senior and mezzanine notes. There is no
principal borrowing mechanism available so the ample credit
enhancement for notes rated above 'CCCsf' does not help. At some
point, the transactions may need to rely on each of the liquidity
facilities to cover costs and interest. If these are depleted
before the notes are repaid, interest may remain unpaid at the
maturity date of the notes. Fitch has upgraded 2005-I's class C
notes given repayment of class B and sufficient coverage of the
liquidity facility for class C interest. Fitch also upgraded
2006-II's class C notes for the same reasons. Because of the high
sensitivity to increasing senior fees, Fitch has abstained from
upgrading further, despite observed improved liquidity coverage.

Junior Notes' Liquidity Drawings Negative for Senior Notes: Without
a principal borrowing mechanism in place, ultimate interest
payments on the notes are fully dependent on enough interest
available funds. Fitch notes that the availability for senior notes
also depends on the timing of liquidity drawings and repayments of
drawings made for junior notes' interest. These repayments could
further reduce available funds to make interest payments on more
senior notes.

Increased Credit Enhancement: The transactions are amortising
sequentially and Fitch does not expect a switch to pro-rata given
the severe trigger breaches with regard to the principal deficiency
ledger (PDL), arrears and reserve fund. The class A notes repaid in
full for 2006-I and 2006-II in August 2020. 2005-I's class A notes
repaid in full in 2018 while the class B notes repaid in full in
February 2022. Relative credit enhancement for mezzanine notes has
been increasing since its review in 2021. Principal losses for the
classes C (2005-I); B (2006-I); and B and C (2006-II) have become
increasingly unlikely. Instead ratings are dominated by risks to
the coverage of expenses and note interest.

Junior Notes Undercollateralised: As a result of large losses to
date, the class E notes of 2005-I; the class C, D, and E notes of
2006-I; and the class D and E notes of 2006-II are no longer fully
backed by performing assets. Fitch has affirmed the ratings at
'CCCsf' and below to reflect the high likelihood of principal
losses. Overcollateralisation improved for 2005-I's class D notes ,
but was not sufficient in Fitch's modelling to shield against
losses in higher rating scenarios than 'CCC'. These notes were
therefore not upgraded.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

Higher fees, expenses and swap costs or lower income from the asset
portfolio including unsecured recoveries could result in a
downgrade of the mezzanine notes.

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

Repayment of senior and mezzanine notes is highly sensitive to the
transaction's income versus costs. Lower-than-anticipated fees and
expenses, higher income from the asset portfolio or lower swap
costs could result in an upgrade of the notes. This affects
primarily the class C notes of 2005-I and 2006-II.

The ratings of junior notes rated 'CCCsf' and lower are sensitive
to higher property values realised from foreclosures or increasing
excess spread. This would limit further PDL entries and could
reduce the existing balances.

CRITERIA VARIATION

As a variation from the European RMBS Rating Criteria Fitch applies
haircuts of 50% for each property value. This variation aims at
aligning the assumed recovery rates with recoveries observed and
increases assumed losses.

The application of the variation resulted in model-implied ratings
being up to one notch lower for 2006-II than the model-implied
rating using a model without variation.

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

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. 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 transactions' initial
closing. The subsequent performance of the transactions 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.

ESG CONSIDERATIONS

E-MAC DE 2005-I B.V., E-MAC DE 2006-I B.V and E-MAC DE 2006-II B.V.
have ESG Relevance Scores of '4' for Transaction Parties &
Operational Risk due to weaker underwriting standards applied by
the originator that have manifested in weaker-than-market
performance of the asset portfolio and reflected in originator
adjustments to the foreclosure frequency, which has a negative
impact on the credit profile, and is relevant to the ratings in
conjunction with other factors.


UNIPER: Unipro Has Book Value of Up to EUR2.2 Billion
-----------------------------------------------------
Christoph Steitz at Reuters reports that Unipro, the Russian
utility that majority owner Uniper is seeking to sell, still has a
book value of between EUR1.7 billion to EUR2.2 billion
(US$1.7-US$2.2 billion), Uniper Chief Executive Klaus-Dieter
Maubach said.

This is much higher than Unipro's current market value, which is at
RUR82.91 billion (US$1.37 billion), Reuters discloses.

Uniper, which on Sept. 16 struck an amended nationalisation deal
with the German government, earlier this year took impairment
charges on Unipro, in which it owns a 83.7% stake, Reuters
relates.




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

BOSPHORUS VII: Fitch Assigns 'B-(EXP)sf' Rating on Class F Debt
---------------------------------------------------------------
Fitch Ratings has assigned Bosphorus CLO VII DAC expected ratings.

The assignment of final ratings is contingent on the receipt of
final documents conforming to information already reviewed.

  Debt           Rating             
  ----           ------             
Bosphorus CLO VII DAC

  A          LT  AAA(EXP)sf  Expected Rating
  B          LT  AA(EXP)sf   Expected Rating
  C          LT  A(EXP)sf    Expected Rating
  D          LT  BBB-(EXP)sf Expected Rating
  E          LT  BB-(EXP)sf  Expected Rating
  F          LT  B-(EXP)sf   Expected Rating
  Sub-Notes  LT  NR(EXP)sf   Expected Rating

TRANSACTION SUMMARY

Bosphorus CLO VII DAC is a securitisation of mainly senior secured
obligations (at least 92.5%) with a component of senior unsecured,
mezzanine, second-lien loans and high-yield bonds. Note proceeds
will be used to purchase a portfolio with a target par of EUR400
million. The portfolio is actively managed by Cross Ocean Adviser
LLP. The collateralised loan obligation (CLO) has a one-year
reinvestment period and a six-year weighted average life test
(WAL).

KEY RATING DRIVERS

Above Average Portfolio Credit Quality (Positive): Fitch places the
average credit quality of obligors in the 'B' category. The Fitch
weighted average rating factor (WARF) of the identified portfolio
is 24.2

High Recovery Expectations (Positive): At least 92.5% of the
portfolio comprises senior secured obligations. Fitch views the
recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets. The Fitch weighted
average recovery rate (WARR) of the identified portfolio is
65.35%.

Diversified Asset Portfolio (Positive): The transaction has a
concentration limit for the 10 largest obligors of 20%. The
transaction also includes various concentration limits, including
the maximum exposure to the three largest (Fitch-defined)
industries in the portfolio at 40%. These covenants ensure the
asset portfolio will not be exposed to excessive concentration.

Portfolio Management (Neutral): The transaction has a one-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
stress portfolio analysis was reduced by six months to 5.5 years.
This reduction to the risk horizon accounts for the strict
reinvestment conditions envisaged after the reinvestment period.

These conditions include passing the coverage tests, the Fitch
'CCC' maximum limit after reinvestment and a WAL covenant that
progressively steps down over time, both before and after the end
of the reinvestment period. In Fitch's opinion, these conditions
reduce the effective risk horizon of the portfolio during the
stress period.

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 of
the identified portfolio would have no impact on the class A notes
and would lead to a downgrade of one to three notches for the other
notes.

Based on the identified portfolio, downgrades may occur if the loss
expectation is larger than initially assumed, due to unexpectedly
high levels of default and portfolio deterioration. Due to the
better metrics and shorter life of the identified portfolio, the
class F notes display a rating cushion of four notches and the
class D and E notes two notches. There is a one-notch rating
cushion for the class B and C notes and no rating cushion for the
class A notes. Should the cushion between the identified portfolio
and the stress portfolio be eroded due to manager trading or
negative portfolio credit migration, a 25% increase of the mean RDR
across all ratings and a 25% decrease of the RRR across all ratings
of the stressed portfolio would lead to downgrades of up to four
notches for the rated notes.

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 of the Fitch's stress
portfolio would lead to upgrades of up to five notches for the
notes, except for the 'AAAsf' rated notes, which are at the highest
level on Fitch's scale and cannot be upgraded.

During the reinvestment period, based on Fitch's stress portfolio
upgrades may occur on better-than-expected portfolio credit quality
and a shorter remaining WAL test, meaning the notes are able to
withstand larger than expected losses for the transaction's
remaining life. After the end of the reinvestment period, upgrades
may occur in case of stable portfolio credit quality and
deleveraging, leading to higher credit enhancement and excess
spread available to cover losses on the remaining portfolio.

CRITERIA VARIATION

The stress portfolio was modelled with a 5.5 year WAL, which is six
months below the 6.0 year WAL floor envisaged in the CLOs and
Corporate CDOs criteria to account for strict structural and
reinvestment conditions post reinvestment period. The variation is
motivated by the further step down of the WAL test by nine months
to 4.25 years from five years on the reinvestment period end date,
in addition to the strict reinvestment criteria post reinvestment
period.

The WAL of the identified portfolio is 5.1 years and Fitch views
the construction of a portfolio that maxes out the six-year WAL
covenant at closing as unlikely, given the low supply of primary
issuance in the current leveraged loan and high yield market
conditions and sourcing from the secondary market tends to have a
shorter remaining tenor. The impact of the criteria variation is
one notch higher for the class B and E notes, with no rating impact
on the other tranches.

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

Bosphorus CLO VII DAC

The majority of the underlying assets or risk presenting entities
have ratings or credit opinions from Fitch and/or other Nationally
Recognized Statistical Rating Organizations and/or European
Securities and Markets Authority registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk presenting entities.

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action


CARLYLE GLOBAL 2014-1: Fitch Affirms 'B+' Rating on Cl. F-RR Notes
------------------------------------------------------------------
Fitch Ratings has revised Carlyle Global Market Strategies Euro CLO
2014-1 DAC's Outlook to Stable from Positive, while affirming its
notes.

  Debt                     Rating             Prior
  ----                     ------             -----
Carlyle Global Market
Strategies Euro CLO
2014-1 DAC

  A-RR XS1839726426    LT  AAAsf  Affirmed    AAAsf
  B-1-RR XS1839725964  LT  AA+sf  Affirmed    AA+sf
  B-2-RR XS1839726004  LT  AA+sf  Affirmed    AA+sf
  B-3-RR XS1847616296  LT  AA+sf  Affirmed    AA+sf
  C-1-RR XS1839726186  LT  A+sf   Affirmed    A+sf
  C-2-RR XS1847611495  LT  A+sf   Affirmed    A+sf
  D-RR XS1839726269    LT  BBB+sf Affirmed    BBB+sf
  E-RR XS1839726343    LT  BB+sf  Affirmed    BB+sf
  F-RR XS1839725295    LT  B+sf   Affirmed    B+sf

TRANSACTION SUMMARY

Carlyle Global Market Strategies Euro CLO 2014-1 DAC is a cash flow
CLO comprising mostly senior secured obligations. The transaction
is actively managed by CELF Advisors LLP and will exit its
reinvestment period in October 2022.

KEY RATING DRIVERS

Reinvesting Transaction: Although the transaction will exit its
reinvestment period in October 2022 the manager can reinvest
unscheduled principal proceeds and sale proceeds from credit-risk
obligations also after the reinvestment period, subject to
compliance with the reinvestment criteria. Given the manager's
ability to reinvest, its analysis is based on a stressed portfolio
testing Fitch-calculated weighted average life (WAL),
Fitch-calculated weighted average rating factor (WARF),
Fitch-calculated weighted average recovery rate (WARR), weighted
average spread (WAS), weighted average coupon (WAC) and fixed-rate
asset share to their covenanted limits.

Stable Outlook: The Outlook revision to Stable reflects Fitch
expectations of weaker asset performance in light of the current
difficult macroeconomic conditions.

Stable Asset Performance: The transaction's metrics indicate stable
asset performance. The transaction is passing all coverage,
collateral-quality and portfolio-profile tests that have a bearing
on Fitch's rating analysis. Exposure to assets with a Fitch-derived
rating (FDR) of 'CCC+' and below is 4.22%, excluding non-rated
assets, as calculated by Fitch.

'B'/'B-' Portfolio: Fitch assesses the average credit quality of
the obligors at 'B'/'B-'. The reported WARF of the current
portfolio was 35.09 as of 10 August 2022, against a covenanted
maximum of 37.

High Recovery Expectations: Senior secured obligations comprise
99.5% of the portfolio as calculated by the trustee. Fitch views
the recovery prospects for these assets as more favorable than for
second-lien, unsecured and mezzanine assets. The Fitch WARR
reported by the trustee for the current portfolio was at 65.8% as
of 5 July 2022, which compares favourably with the covenanted
minimum of 63.1%.

Diversified Portfolio: The portfolio is well-diversified across
obligors, countries and industries. The top-10 obligor
concentration is 11.96%, as calculated by Fitch, and no single
obligor represents more than 1.3% of the portfolio balance, as
reported by the trustee.

Cash Flow Analysis: Fitch used a customised proprietary cash flow
model to replicate the principal and interest waterfalls and the
various structural features of the transaction, and to assess their
effectiveness, including the structural protection provided by
excess spread diverted through the par-value and interest-coverage
tests.

Deviation From Model-implied Rating: The class B-RR notes' 'AA+sf'
rating and the class D-RR notes' 'BBB+sf' rating are each one notch
below their model-implied ratings (MIRs), reflecting the limited
cushion on these of notes under the Fitch-stressed portfolio.

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 no more than one notch for the class
C notes, two notches for the class E notes and to 'CCCsf' or below
for the class F notes. Downgrades may occur if the loss expectation
of the current portfolio is larger 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 25% reduction of the mean RDR and a 25% increase in the RRR
across all ratings of the stressed portfolio would result in
upgrades of no more than four notches across the structure, apart
from the 'AAAsf' class A notes. 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.

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

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
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.

The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other nationally
recognised statistical rating organisations and/or European
securities and markets authority registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk-presenting entities.


CARLYLE GLOBAL 2014-3: Fitch Affirms 'B+' Rating on Cl. E-R Notes
-----------------------------------------------------------------
Fitch Ratings has revised Carlyle Global Market Strategies Euro CLO
2014-3 DAC class A-2A-R through E-R notes to Stable Outlook from
Positive Outlook, while affirming its notes.

  Debt                      Rating             Prior
  ----                      ------             -----
Carlyle Global Market
Strategies Euro CLO
2014-3 DAC
  
  A-1A-R XS1751482305   LT  AAAsf Affirmed     AAAsf
  A-1B-R XS1751482644   LT  AAAsf Affirmed     AAAsf
  A-2A-R XS1751483022   LT  AA+sf Affirmed     AA+sf
  A-2B-R XS1751483451   LT  AA+sf Affirmed     AA+sf
  B-R XS1751483709      LT  A+sf  Affirmed     A+sf
  C-R XS1751484004      LT  A-sf  Affirmed     A-sf
  D-R XS1751484699      LT  BB+sf Affirmed     BB+sf
  E-R XS1751484343      LT  B+sf  Affirmed     B+sf

TRANSACTION SUMMARY

Carlyle Global Market Strategies Euro CLO 2014-3 DAC is a cash flow
collateralised loan obligation (CLO) backed by portfolios of mainly
European leveraged loans and bonds. The transactions are actively
managed by CELF Advisors LLP and exited its reinvestment period on
25 July 2022.

KEY RATING DRIVERS

Transactions Outside Reinvestment Period: Despite the transaction's
exit from its reinvestment period the manager can still reinvest
unscheduled principal proceeds and sale proceeds from
credit-improved and credit-risk obligations as long as the
reinvestment criteria are satisfied. The transaction was
reinvesting as of their last monthly report in August 2022.

Given the manager can still reinvest, Fitch has assessed the
transaction by stressing the portfolio to their covenanted limits
on Fitch weighted average rating factor (WARF), Fitch weighted
average recovery rate (WARR), weighted average spread and the share
of fixed assets. For the transaction, Fitch has applied a 1.5%
haircut to the stressed WARR covenant to reflect the old recovery
rate definition in the transaction documents, which can result in
on average a 1.5% inflation of the WARR relative to Fitch's latest
CLO Criteria.

Stable Outlook: The Stable Outlooks on all notes reflect the
uncertain macroeconomic environment, and its expectation that
deleveraging will be limited since the transaction can still
reinvest. Scheduled repayment of assets is limited in the next
12-18 months.

Stable Asset Performance: The transaction's metrics indicate stable
asset performance. The transaction is passing all the tests
(collateral quality, coverage and portfolio profile tests).
Exposure to assets with Fitch-derived ratings (FDRs) of 'CCC+' and
below is 4.9%, as calculated by the trustee.

'B'/'B-' Portfolio: Fitch assesses the average credit quality of
the obligors for the transactions at 'B'/'B-'. The Fitch WARF of
the current portfolio as reported by the trustee was 35.18. The
Fitch-calculated WARF of the current portfolio using the latest
criteria definition was 26.42.

High Recovery Expectations: Senior secured obligations comprise
99.2% of the portfolio. Fitch views the recovery prospects for
these assets as more favourable than for second-lien, unsecured and
mezzanine assets. The Fitch WARR of the current portfolio as
reported by the trustee was 65.7%. The Fitch-calculated Fitch WARR
for the portfolio using the latest criteria WARR definition is
63.45%.

Diversified Portfolio: The portfolio is well-diversified across
obligors, countries and industries. The top 10 obligor
concentration is 13.1% and no obligor represents more than 1.4% of
the portfolio balance.

Cashflow Modelling: Fitch used a customised proprietary cash-flow
model to replicate the principal and interest waterfalls and the
various structural features of the transaction, and to assess their
effectiveness, including the structural protection provided by
excess spread diverted through the par- value and interest-coverage
tests.

Deviation from Model-implied Rating: Carlyle Global Market
Strategies Euro CLO 2014-3's class A-2A-R, A-2B-R, C-R and E-R
notes' ratings deviate from their model-implied ratings (MIR) by up
to two notches. The deviation reflects the limited cushion relative
to the ratings on the stressed portfolio at the MIRs, the limited
credit enhancement build-up since the end of the reinvestment
period, and the uncertain macro-economic backdrop.

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 of
the current portfolio would have no impact on the class A-1A-R,
A-1B-R, A-2A-R, A-2B-R, and B notes and would lead to a downgrade
of up to two notches for the class C, D and E notes.

Based on the current portfolio, downgrades may occur if the loss
expectation is larger than initially assumed, due to unexpectedly
high levels of defaults and portfolio deterioration. Due to the
better metrics and shorter life of the current portfolio, the class
A-2A-R, A-2B-R, and D-R notes display a rating cushion of one notch
while the class C-R and E-R notes display a two- and three-notch
rating cushion, respectively.

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 of Fitch-stressed portfolio
would lead to upgrades of up to three notches for the rated notes,
except for the 'AAAsf' rated notes. Upgrades, except for the
'AAAsf' notes, may also occur if the portfolios' quality remains
stable and the notes start to amortise, leading to higher credit
enhancement across the structure.

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

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
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.

The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other nationally
recognised statistical rating organisations and/or European
securities and markets authority-registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk-presenting entities.


FIDELITY GRAND 2022-1: Fitch Affirms 'B-' Rating on Cl. F Debt
--------------------------------------------------------------
Fitch Ratings has assigned Fidelity Grand Harbour CLO 2022-1 DAC
final ratings.

  Debt                       Rating              Prior
  ----                       ------              -----
Fidelity Grand Harbour
CLO 2022-1 DAC
  
  A XS2511428588         LT  AAAsf  New Rating   AAA(EXP)sf
  A-Loan                 LT  AAAsf  New Rating   AAA(EXP)sf
  B-1 XS2511428745       LT  AAsf   New Rating   AA(EXP)sf
  B-2 XS2511429123       LT  AAsf   New Rating   AA(EXP)sf
  C XS2511429396         LT  Asf    New Rating   A(EXP)sf
  D XS2511429479         LT  BBB-sf New Rating   BBB-(EXP)sf
  E XS2511429800         LT  BB-sf  New Rating   BB-(EXP)sf
  F XS2511429982         LT  B-sf   New Rating   B-(EXP)sf
  Sub Notes XS2511430055 LT  NRsf   New Rating   NR(EXP)sf

TRANSACTION SUMMARY

Fidelity Grand Harbour CLO 2022-1 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 have been used to purchase a portfolio with a
target par of EUR340 million. The portfolio is actively managed by
FIL Investments International. The collateralised loan obligation
(CLO) has a 4.5-year reinvestment period and an 8.5-year weighted
average life (WAL).

KEY RATING DRIVERS

Above Average Portfolio Credit Quality (Positive): Fitch places the
average credit quality of obligors in the 'B' category. The Fitch
weighted average rating factor (WARF) of the identified portfolio
is 24.3.

High Recovery Expectations (Positive): At least 90% of the
portfolio comprises senior secured obligations. Fitch views the
recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets. The Fitch weighted
average recovery rate (WARR) of the identified portfolio is 62.4%.

Diversified Asset Portfolio (Positive): The transaction has a
concentration limit for the 10 largest obligors of 23%. The
transaction also includes various concentration limits, including
the maximum exposure to the three largest (Fitch-defined)
industries in the portfolio at 40%. These covenants ensure 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.

The transaction includes two Fitch matrices, one effective at
closing and the other one year after closing. The second can be
selected by the manager at any time from one year after closing as
long as the portfolio balance (including defaulted obligations at
their Fitch collateral value) is above target par.

Cash Flow Modelling (Positive): The WAL used for the transaction's
stress portfolio analysis was reduced by 12 months to account for
the strict reinvestment conditions envisaged after the reinvestment
period.

These conditions include passing the coverage tests, the Fitch
'CCC' maximum limit, Fitch WARF test after reinvestment and a WAL
covenant that progressively steps down over time, both before and
after the end of the reinvestment period. In Fitch's view, these
conditions would reduce the effective risk horizon of the portfolio
during the stress period.

Class F Delayed Issuance (Neutral): At closing, the class F notes
were issued with a pool factor (outstanding principal out of the
original balance) of zero and subscribed by the issuer for a zero
net cash price. The tranche can be sold at the option of the
subordinated noteholders at any time during the reinvestment
period. Once sold, the tranche will be deemed to have a 100% pool
factor. In Fitch's view, the sale of the tranche would reduce
available excess spread to cure the reinvestment
over-collateralisation test by the class F interest amount.
Consequently, Fitch has modelled the deal assuming the tranche is
issued on the issue date to reflect the maximum stress the
transaction could withstand if that occurred.

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 of
the identified portfolio would have no impact on the class A notes
and A loan and would lead to a downgrade of one to two notches for
the other notes.

Based on the identified portfolio, downgrades may occur if the loss
expectation is larger than initially assumed, due to unexpectedly
high levels of default and portfolio deterioration. Due to the
better metrics and shorter life of the identified portfolio, the
class E notes display a rating cushion of three notches and the
class D and F notes two notches. The class B and C notes display
one notch and there is no rating cushion for the class A notes and
loan. Should the cushion between the identified portfolio and the
stress portfolio be eroded due to manager trading or negative
portfolio credit migration, a 25% increase of the mean RDR across
all ratings and a 25% decrease of the RRR across all ratings of the
stressed portfolio would lead to downgrades of up to four notches.

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 of the Fitch's stress
portfolio would lead to upgrades of up to four notches, except for
the 'AAAsf' rated notes, which are at the highest level on Fitch's
scale and cannot be upgraded.

During the reinvestment period, based on Fitch's stress portfolio,
upgrades may occur on better-than-expected portfolio credit quality
and a shorter remaining WAL test, meaning the notes are able to
withstand larger than expected losses for the transaction's
remaining life. After the end of the reinvestment period, upgrades
may occur in case of stable portfolio credit quality and
deleveraging, leading to higher credit enhancement and excess
spread available to cover losses on the remaining portfolio.

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

Fidelity Grand Harbour CLO 2022-1 DAC

The majority of the underlying assets or risk presenting entities
have ratings or credit opinions from Fitch and/or other Nationally
Recognized Statistical Rating Organizations and/or European
Securities and Markets Authority registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk presenting entities.

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action


PENTA CLO 4: Fitch Affirms 'B+sf' Rating on Class F Notes
---------------------------------------------------------
Fitch Ratings has affirmed Penta CLO 4 DAC and revised the Outlooks
on the class B through F notes to Stable from Positive.

  Debt                    Rating             Prior
  ----                    ------             -----
Penta CLO 4 DAC
  
  A XS1814398829      LT  AAAsf  Affirmed    AAAsf
  B-1 XS1814399637    LT  AA+sf  Affirmed    AA+sf
  B-2 XS1814400237    LT  AA+sf  Affirmed    AA+sf
  C XS1814400823      LT  A+sf   Affirmed    A+sf
  D XS1814401631      LT  BBB+sf Affirmed    BBB+sf
  E XS1814402100      LT  BB+sf  Affirmed    BB+sf
  F XS1814402365      LT  B+sf   Affirmed    B+sf

TRANSACTION SUMMARY

Penta CLO 4 DAC is a cash flow collateralised loan obligation (CLO)
backed by portfolios of mainly European leveraged loans and bonds.
The transaction is actively managed by Partners Group (UK)
Management Ltd and exited its reinvestment period on 17 June 2022.

KEY RATING DRIVERS

Transactions Outside Reinvestment Period: The transaction has
exited its reinvestment period. The manager can still reinvest
unscheduled principal proceeds and sale proceeds from credit
improved and credit risk obligations as long as the reinvestment
criteria are satisfied. The transaction was reinvesting as of its
last monthly report in July 2022.

As the manager can still reinvest, Fitch has assessed the
transaction based on a stressed portfolio analysis running the
following collateral quality tests at their covenanted limits:
Fitch weighted average rating factor (WARF), Fitch weighted average
recovery rate (WARR), weighted average spread and fixed asset
limit. For the transaction, the stressed WARR covenant is haircut
by 1.5%, to reflect the old recovery rate definition in the
transaction documents, which can result in on average a 1.5%
inflation of the WARR relative to Fitch's latest CLO Criteria.

Stable Outlook: The Stable Outlooks on all notes reflect the
uncertain macroeconomic environment, and its expectation that
deleveraging will be limited since the transactions can still
reinvest. Scheduled repayment of assets is limited in the next
12-18 months.

Stable Asset Performance: The transaction's metrics indicate stable
asset performance. All the tests (collateral quality, coverage and
portfolio profile tests) are passing. Exposure to assets with
Fitch-derived ratings of 'CCC+' and below is 3.16%, as calculated
by the trustee.

'B'/'B-' Portfolio: Fitch assesses the average credit quality of
the obligors for the transaction at 'B'/'B-'. The Fitch WARF of the
current portfolio as reported by the trustee was 33.97. The
Fitch-calculated WARF of the current portfolio using the latest
criteria definitions was 26.21.

High Recovery Expectations: Senior secured obligations comprise
99.5% of the portfolio. Fitch views the recovery prospects for
these assets as more favourable than for second-lien, unsecured and
mezzanine assets. The Fitch WARR of the current portfolio as
reported by the trustee was 65.4%. The Fitch-calculated Fitch WARR
for the portfolio using the latest criteria WARR definitions is
62.97%.

Diversified Portfolio: The portfolio is well-diversified across
obligors, countries and industries. The top 10 obligor
concentration is 11.78% and no obligor represents more than 1.30%
of the portfolio balance.

Cashflow Modelling: Fitch used a customised proprietary cash-flow
model to replicate the principal and interest waterfalls and the
various structural features of the transaction, and to assess their
effectiveness, including the structural protection provided by
excess spread diverted through the par- value and interest-coverage
tests.

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 of
the current portfolio would have no impact on the class A notes and
lead to downgrades of one to four notches for the class B to F
notes.

Based on the current portfolio, downgrades may occur if the loss
expectation is larger than initially assumed, due to unexpectedly
high levels of default and portfolio deterioration. Due to the
better metrics and shorter life of the identified portfolio, the
class B and E notes display a rating cushion of one notch while the
class D and F notes display two- and three-notch rating cushions,
respectively. While not Fitch's base case, 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 of Fitch's stress portfolio
would lead to an upgrade of up to three notches for the rated
notes, except for the 'AAAsf' rated notes, which are at the highest
level on Fitch's scale and cannot be upgraded. Upgrades may also
occur if the portfolios' quality remains stable and the notes start
to amortise, leading to higher credit enhancement across the
structures.

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

Penta CLO 4 DAC

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
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.

The majority of the underlying assets or risk presenting entities
have ratings or credit opinions from Fitch and/or other Nationally
Recognized Statistical Rating Organizations and/or European
Securities and Markets Authority registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk presenting entities.

Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action




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

MONTE DEI PASCHI: Cash Call Talks Ongoing, Faces Tight Schedule
---------------------------------------------------------------
Valentina Za and Giuseppe Fonte at Reuters report that Monte dei
Paschi di Siena faces a tight schedule to secure cornerstone
shareholders for a share sale of up to EUR2.5 billion (US$2.4
billion) after an election pause during which investors were
non-committal ended on Sept. 26.

After leading the conservative alliance to victory in Sunday's
vote, Giorgia Meloni looks set to become Italy's first woman prime
minister at the head of its most right-wing government since World
War Two, Reuters relates.

Maurizio Leo, a senior economic adviser to the Brothers of Italy
leader Meloni, said MPS was in good hands, Reuters notes.

"We trust Chief Executive Luigi Lovaglio can see through the
transaction," he told Reuters, adding: "He's got the experience and
he can deliver."

MPS faces the challenge of raising more than eight times its
current market value of EUR300 million, five years after a bailout
that provided EUR8.2 billion in capital, Reuters discloses.

This means it is not able to offer a significant discount on new
shares and will be more highly valued than competitors, Reuters
notes.

State-owned MPS aims to launch the new share issue on Oct. 10, so
as to raise the funds it needs in time to lay off some 3,500 staff
using early retirement rules that end after November, Reuters
states.

Mr. Lovaglio had held off involving insurer Axa and asset manager
Anima Holding, despite the willingness of MPS' main commercial
partners to play a role in its recapitalisation, sources have said,
Reuters notes.

According to Reuters, two people close to the matter said with
Anima ready to provide up to EUR200 million in cash as part of a
strengthened commercial partnership with MPS, the Tuscan bank would
likely need France's Axa to contribute as much for the deal to go
ahead.

The state will cover 64% of MPS' capital raising, but the rest must
come from private hands under European Union rules limiting state
aid to lenders, Reuters says.

But no financial details have yet been firmed up with either party,
meaning time is tight especially when it comes to revising Anima's
contracts with MPS, one of the people said, Reuters notes.

The people, as cited by Reuters, said unlike Anima, Axa won't alter
its "bancassurance" joint-venture with MPS, but simply buy
portfolios of insurance contracts, allowing MPS to anticipate
future revenues.

The cash call is likely to be completed before a new government is
formed at the end of October or early November, with the offer is
expected to run for three weeks from Oct. 10, Reuters discloses.

            About Banca Monte dei Paschi di Siena

Banca Monte dei Paschi di Siena SpA -- http://www.mps.it/-- is an
Italy-based company engaged in the banking sector.  It provides
traditional banking services, asset management and private banking,
including life insurance, pension funds and investment trusts.  In
addition, it offers investment banking, including project finance,
merchant banking and financial advisory services.  The Company
comprises more than 3,000 branches, and a structure of channels of
distribution.  Banca Monte dei Paschi di Siena Group has
subsidiaries located throughout Italy, Europe, America, Asia and
North Africa.  It has numerous subsidiaries, including Mps Sim SpA,
MPS Capital Services Banca per le Imprese SpA, MPS Banca Personale
SpA, Banca Toscana SpA, Monte Paschi Ireland Ltd. and Banca MP
Belgio SpA.

In February 2017, Italy's lower house of parliament approved a
government bid to increase public debt by up to EUR20 billion
(about US$21.3 billion) to fund a rescue package for Monte dei
Paschi di Siena (MPS) and other ailing banks.  The move comes after
the European Union approved in December 2016 the Italian
government's move to rescue MPS, the country's third-largest lender
and the world's oldest bank.




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

CAIRN CLO VI: Fitch Affirms 'B+sf' Rating on Class F-R Notes
------------------------------------------------------------
Fitch Ratings has upgraded Cairn CLO VI B.V.'s class D-R notes and
revised the Outlooks on the class C-R, E-R and F-R notes to Stable
from Positive.

  Debt                         Rating           Prior
  ----                         ------           -----
Cairn CLO VI B.V.

  Class A-R XS1850309466   LT  AAAsf Affirmed   AAAsf
  Class B-R XS1850309896   LT  AAAsf Affirmed   AAAsf
  Class C-R XS1850310126   LT  A+sf  Affirmed   A+sf
  Class D-R XS1850310555   LT  Asf   Upgrade    BBB+sf
  Class E-R XS1850310803   LT  BB+sf Affirmed   BB+sf
  Class F-R XS1850310985   LT  B+sf  Affirmed   B+sf

TRANSACTION SUMMARY

The transaction is a cash-flow collateralised loan obligation
backed by a portfolio of mainly European leveraged loans and bonds
and is managed by Cairn Loan Investments LLP. The deal exited its
reinvestment period in July 2020.

KEY RATING DRIVERS

Increased Credit Enhancement: The senior class A-R notes have
repaid by EUR50.5 million since the last review in November 2021.
As a result, credit enhancement has increased across the
structure.

Resilient Asset Performance: The transaction's metrics indicate
resilient asset performance, which together with increased credit
enhancement, led to today's upgrade and affirmations. This is
despite the transaction currently being 0.3% below par and failing
Fitch's 'CCC' limit, weighted average life, weighted average
spread, Fitch and Moody's weighted average rating factor (WARF)
tests as of 13 July 2022. The transaction was reportedly passing
its coverage tests.

Exposure to assets with FDRs of 'CCC+' and below is 10% as
calculated by the trustee. The portfolio had an exposure to
defaulted assets of EUR1.3 million as of 13 July and
Fitch-calculated exposure to 'CC' and below rated obligors of
EUR4.6 million as of 10 September 2022.

Reinvestment Unlikely: Following the exit of its reinvestment
period, Fitch does not expect any reinvestment of unscheduled
principal proceeds and sale proceeds from credit-impaired and
credit-improved obligations as the transaction as of 13 July 2022
was failing Moody's WARF and Fitch's 'CCC' test. Given the manager
is unlikely to reinvest, Fitch has assessed the transaction by
notching down one level all assets in the current portfolio with
Fitch-derived ratings (FDR) on Negative Outlook.

Limited Deleveraging Prospect: The Outlook revision to Stable from
Positive reflects Fitch's expectations of weaker asset performance
in light of the current macroeconomic challenges.

'B'/'B-' Portfolio: Fitch assesses the average credit quality of
the obligors at 'B'/'B-'. Fitch calculated a WARF of 27.4 for the
current portfolio and 29.3 for the stressed portfolio of obligors
on Negative Outlook.

High Recovery Expectations: Senior secured obligations comprise
100% of the portfolio. Fitch views the recovery prospects for these
assets as more favourable than for second-lien, unsecured and
mezzanine assets. Fitch calculated a weighted average recovery
rating (WARR) of 62% for the current portfolio.

Portfolio Concentration: The portfolio has become more concentrated
with amortisation of EUR48.3 million since its last review in
November 2021. The top-10 obligor concentration is at 27% while the
largest issuer represents 4% of the portfolio. The largest
Fitch-defined industry as calculated by the agency represents 17.2%
and the three-largest Fitch-defined industries at 38.5%, both
within their respective limits of 17.5% and 40%.

Deviation from Model-implied Rating: The class C-R notes' 'A+sf'
rating and the class D-R notes' 'Asf' rating are each one notch
below their model-implied ratings (MIRs), reflecting the limited
cushion on these classes of notes for the Fitch-stressed portfolio
of obligors on Negative Outlook.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

A 25% increase of the mean default rate (RDR) and a 25% decrease of
the recovery rate (RRR) across all ratings of the current portfolio
would have no impact on class A-R, B-R and C-R notes and would lead
to downgrades of no more than four notches for the class D-R, E-R
and F-R notes.

Downgrades, which are based on the current portfolio, may occur if
the loss expectation is larger 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 25% reduction of the mean RDR and a 25% increase in the RRR
across all ratings of the Fitch-stressed portfolio of obligors on
Negative Outlook would lead to upgrades of up to four notches for
the rated notes, except for the 'AAAsf' notes.

Upgrades, except for the 'AAAsf' notes, may occur on stable
portfolio credit quality and deleveraging, leading to higher credit
enhancement and excess spread available to cover losses in the
remaining portfolio.

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

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
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.

The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other nationally
recognised statistical rating organisations and/or European
securities and markets authority-registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk-presenting entities.




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

UZBEKNEFTEGAZ JSC: Fitch Affirms BB- LongTerm IDR, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed JSC Uzbekneftegaz's (UNG) Long-Term
Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook.

UNG's rating is equalised with that of its parent Uzbekistan
(BB-/Stable). UNG is a fully state-owned integrated natural gas and
liquid hydrocarbons producer with strong links with the
government.

UNG's 'b+' Standalone Credit Profile (SCP) is under pressure from
higher-than-previously-expected leverage and tight standalone
liquidity. However, Fitch expects its leverage to improve as its
gas-to-liquids (GTL) plant ramps up and the company to be able to
manage its refinancing in 2023 and beyond. The 'b+' SCP also
reflects UNG's medium-scale production, integration into downstream
activities, a low-cost position and limitations of the general
operating environment in Uzbekistan.

UNG's USD700 million senior unsecured notes (BB-/RR4) are rated in
line with the IDR and using a generic approach for 'BB' category
issuers, which reflects the instrument ranking in the capital
structure, in accordance with our Corporates Recovery Ratings and
Instrument Ratings Criteria.

KEY RATING DRIVERS

'Very Strong' Support: UNG's rating is equalised with Uzbekistan's
due to strong ties under our Government-Related Entities (GRE)
Rating Criteria. Fitch views the status, ownership and control
factor as 'Strong' as the state is UNG's sole ordinary shareholder
though it may sell around a quarter of the company.

Fitch views the support record as 'Very Strong' because around 70%
of its consolidated debt was guaranteed by the state at end-2021.
Other forms of support are the conversion into equity of UNG's
USD1.7 billion debt to the sovereign wealth fund of Uzbekistan and
dividends payable in 2020, lowered taxes, and liberalised oil
product prices charged by UNG.

'Very Strong' Socio-Political Impact: Fitch said, "We view the
socio-political impact of UNG's default as 'Very Strong' because
the company is focused on providing gas and liquid hydrocarbons to
domestic utilities, industry and the private sector, and does not
export gas. Uzbekistan is reliant on gas for power generation,
heating and as automobile fuel. UNG is one of the largest companies
and employers in the country. We assess financial implications of
its default as 'Strong' as UNG is a large borrower, hence deemed a
proxy issuer for the government, but UNG's debt is substantially
smaller than that of the government."

SCP Under Pressure: UNG's 'b+' SCP reflects the company's medium
scale, regulated gas prices, very low upstream costs and
integration into chemicals and refining, which are offset by high
leverage, tight liquidity and a weak domestic operating
environment. SCP is also under pressure, primarily from
higher-than-previously expected leverage, mostly in view of the
company's delayed start-up of its GTL plant. The first line of the
plant, which should significantly boost UNG's earnings, has now
ramped up and will start to materially contribute to UNG's earnings
from 2H22.

Gradually Falling Leverage: Fitch said, "We expect UNG's funds from
operations (FFO) net leverage to remain above our 4.5x negative
sensitivity for the SCP in 2022 after peaking at 5.4x in 2021.
However, it should decline to 4.5x by 2023, and remain below that
level in 2024-2026. Deleveraging will be driven by completing the
ramp-up in production of its GTL project in 2022-2023 and by
commissioning the Shurtan gas chemical complex soon. We expect that
the two projects will increase UNG's EBITDA by around 50%. Further
delays of the downstream projects and inability to reduce net
leverage to 4.5x or below could be negative for the company's
SCP."

Legacy Guarantees: UNG had UZS13 trillion of guarantees at
end-2021, mainly issued to its former subsidiary JSC Uztransgaz for
its gas purchases. Fitch’s view these liabilities as part of the
legacy from the previous group's structure. UNG transferred its
stake in Uztransgaz to the state in 2019. According to the company,
any upcoming liabilities from Uztransgaz will be covered with state
support without recourse to UNG. Fitch does not add these
guaranteed debt to UNG's total debt, but if the guarantees were
included, they would lift FFO net leverage by around 1.3x in 2022.

Liberalisation Supports Revenue: UNG has benefited from the 2020
abolition of regulated prices for condensate, oil and oil products
through higher revenue. The Uzbek government plans to liberalise
prices for natural gas, UNG's main product, and liquefied petroleum
gas (LPG) in 2023-2024, which may boost UNG's profitability if the
collectability of receivables does not deteriorate. Fitch does not
incorporate higher gas and LPG prices into our rating case due to
uncertain reform timing.

Medium Scale: UNG's consolidated hydrocarbon output was 569
thousand barrels of oil equivalent per day (kboe/d) in 2021,
comparable with that of Wintershall Dea AG (BBB/Stable). However,
its per-barrel profitability is weak in view of regulated domestic
gas prices. Raw natural gas accounted for 99% of UNG's production,
of which around 30kboe/d of condensate and LPG was extracted. Its
PRMS 1P reserve life was 12 years at end-2020, which Fitch’s view
as more than adequate. UNG's low regulated realised natural gas
prices were counterbalanced by its downstream integration and low
upstream costs, resulting in 2021 FFO of USD620 million.

DERIVATION SUMMARY

The strength of UNG's ties with the government under Fitch's GRE
Rating Criteria is comparable with QatarEnergy's (AA-/Stable), and
is slightly greater than OQ S.A.O.C.'s (OQ; BB/Stable) and JSC
National Company KazMunayGas's (KMG; BBB-/Stable). UNG's 'b+' SCP
is on a par with State Oil Company of the Azerbaijan Republic's
(SOCAR; BB+/Stable).

Fitch assesses all five companies under its GRE Rating Criteria.
UNG's, OQ's and SOCAR's ratings are equalised with their respective
sovereigns, while NC KMG is one notch down from the sovereign's
rating. The rating of QatarEnergy is constrained by its respective
sovereign.

KEY ASSUMPTIONS

  - Upstream volumes stable in 2022-2026
  - Domestic natural gas prices to remain regulated to 2026
  - Brent oil price of USD100/bbl in 2022, USD85/bbl in 2023,     
    USD65/bbl in 2024 and USD53/bbl in 2025-2026
  - GTL plant ramping up; Shurtan GCC coming online soon
  - Annual capex averaging UZS7 trillion in 2022-2026
  - Annual dividend averaging UZS840 billion in 2022-2026

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

- A sovereign upgrade

- FFO net leverage sustained below 3.5x and/or net debt/EBITDA
   sustained below 3.3x, if accompanied by improved liquidity,
   could be positive for the SCP but not necessarily the IDR

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

- A sovereign downgrade

- FFO net leverage sustained above 4.5x and/or net debt/EBITDA
sustained above 4.3x (eg. as a result of further delays to UNG's
downstream projects) or deteriorating liquidity could be negative
for the SCP but not necessarily the IDR

- Material unremedied deterioration in liquidity could lead to
re-assessment of the strength of sovereign linkage

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

- External Finances: Weakening of external finances, for example
   through a sustained widening of the current account deficit
   derived from a permanent decline in remittances or increase in
   trade deficit, resulting in a significant decline in FX
   reserves or rapid increase in external liabilities.

- Public Finances: A marked rise in the government debt-to-GDP
   ratio or the erosion of the sovereign fiscal buffers, for
   example due to an extended period of low growth or
   crystallisation of contingent liabilities, that could result in

   the removal of the +1 notch for this factor.

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

- Macro: Significant narrowing of Uzbekistan's GDP per capita gap

   vs. peers, for example underpinned by the implementation of
   structural reforms, while improving macroeconomic stability.

- Structural: Significant improvement of governance standards
   including rule of law, voice and accountability, regulatory
   quality and control of corruption.

- External and Public Finances: Significant strengthening of the
   sovereign's fiscal and external balance sheets, for example,
   through sustained high commodity export revenues.

LIQUIDITY AND DEBT STRUCTURE

Weak Standalone Liquidity: UNG's projected liquidity is tight with
forecast liquidity scores of 1.1x in 2022 and below 1x in 2023.
UNG's headroom under its bond and loan covenants is low. In 2022,
UNG has reduced its capex programme to preserve liquidity.

The company's tight liquidity is counterbalanced by UNG's strong
relationships with local and Chinese banks, as well as potential
state support. The share of Russian banks in UNG's loan portfolio
is around 6%; Fitch understands from management that the company
plans to repay (and not extend) those loans as they fall due.

SUMMARY OF FINANCIAL ADJUSTMENTS

Fitch added UZS1.85 trillion of financial guarantees to UNG's
end-2021 debt.

PUBLIC RATINGS WITH CREDIT LINKAGE TO OTHER RATINGS

UNG's IDR is aligned with the rating of Uzbekistan.

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.


[*] RUSSIA: Banks Lost Estimated RUR1.5-Tril. Due to Ukraine War
----------------------------------------------------------------
Reuters reports that Russia's banks have lost an estimated RUR1.5
trillion (US$25.5 billion) as a result of the fallout from the
conflict in Ukraine, a central bank official said on Sept. 23.

According to Reuters, Maxim Lyubomudrov, who heads the regulator's
department that supervises the country's largest banks, said this
was an "acceptable" level of losses and that the government had
plans in place to support Russia's lenders through the crisis.




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

HEIMSTADEN AB: Fitch Alters Outlook on 'BB+' LongTerm IDR to Neg.
-----------------------------------------------------------------
Fitch Ratings has revised Heimstaden AB's (Heimstaden AB) Outlook
to Negative from Stable, while affirming the holding company's
Long-Term Issuer Default Rating (IDR) at 'BB+'.

The rating action mirrors that of subsidiary Heimstaden Bostad AB
(see "Fitch Revises Heimstaden Bostad AB's Outlook to Negative;
Affirms IDR at BBB") partly due to its increased leverage and its
linkage. Fitch expects incremental leverage at Heimstaden AB (above
Heimstaden Bostad's gross debt/EBITDA) to narrow towards 3x in 2023
(around 27.9x and 24.4x respectively, after reversing the hybrid
benefit to Heimstaden Bostad's ratio which does not apply to
Heimstaden AB's creditors) and less than 3x in 2024. This is driven
by the disposal of the country management organisation to, and its
various cash flows from, Heimstaden Bostad including its ordinary
dividends.

The large Heimstaden Bostad SEK336 billion property portfolio
provides a growing source of management fees to Heimstaden AB based
on assets under management, together with rental income from its
own Icelandic portfolio. Heimstaden AB's standalone dividend cover
of its interest expense, not including ordinary dividends received
from Heimstaden Bostad, is expected to remain around 0.8x.

KEY RATING DRIVERS

Country Management Organisation Sale: The July 2022 disposal of
Heimstaden AB's country management organisation to Heimstaden
Bostad for SEK3 billion in cash will help Heimstaden AB deleverage.
The sale also removes one of the company's unsubordinated income
streams, which is a credit negative for the parent company's future
profit mix.

Holding Company Function: At end-July 2022, Heimstaden AB owned 45%
of the shareholder capital in Heimstaden Bostad, a large
residential-for-rent property company, as well as 50.1% of the
voting rights. The other shareholders are long-term Nordic
institutional investors owning various percentages of stapled
preference shares and equity, and all bound by a shareholder
agreement defining operational, governance, financial and strategic
parameters. Heimstaden AB itself is 70%-owned (96% of votes) by
Fredensborg AS, which is almost exclusively owned by Ivar
Tollefsen.

Asset Manager Function: Heimstaden AB also has a management
agreement with Heimstaden Bostad, remunerating its costs for
managing the SEK336 billion residential-for-rent portfolio
alongside its own small SEK6 billion real estate portfolio located
primarily in Iceland. In July 2022, the management agreement was
extended to 2047.

Main Income Streams: Most of the income streams of Heimstaden AB
are directly from Heimstaden Bostad and include (i) rental income
from its own small real estate portfolio; (ii) an asset management
fee of 0.2% of Heimstaden Bostad's gross asset value (GAV); and
(iii) dividends from class A preferred shares in Heimstaden Bostad.
The class A shares are at the top of the equity capital
remuneration waterfall.

The total of these three forms of income, net of Heimstaden AB's
operational costs, is lower than the interest expense of its debt,
hybrids and preferred shares. This translates into around 0.8x of
interest expense during 2022-2025. Fitch includes 100% of hybrid
bond coupons in this ratio.

Plus Heimstaden Bostad Ordinary Dividends: Heimstaden AB also
receives its share of preferred B share dividends and ordinary
equity dividends from Heimstaden Bostad. Upon receiving the cash
dividend, Heimstaden AB management will first retain enough
liquidity to comfortably cover its interest expense and mandatory
debt repayments before discretionally agreeing to reinvest in
Heimstaden Bostad equity. To date, consistent with the action of
other shareholders, dividends have been largely re-invested in
Heimstaden Bostad's equity capital to maintain Heimstaden AB's
equity stake in the subsidiary and to enable the subsidiary to grow
and to meet its financial policy metrics.

Incremental Leverage: Gross leverage on a proportionally
consolidated basis is forecast to improve to less than 3x higher
than Heimstaden Bostad's proportionally consolidated gross
leverage. Fitch includes the subsidiary's hybrid bonds, which lose
their equity credit as they rank ahead of Heimstaden AB's own bank
and bond debt, and hybrids. This incremental leverage at end-2021
totalled SEK23 billion gross debt relative to Heimstaden Bostad's
equity-credit-adjusted gross debt of SEK193 billion at end-2021.
Fitch has applied 50% equity credit to Heimstaden AB's own hybrid
bonds and preferred shares.

Rating Positioning: Heimstaden AB's 'BB+' IDR reflects various
factors. Firstly, Heimstaden AB is a holding company reliant on
recurring, largely unsubordinated, income streams. Secondly, the
subordinated dividends from Heimstaden Bostad, retained after
discretionary re-investment, are paid after Heimstaden Bostad's
subordinated debt (hybrids). Thirdly, the incremental debt's effect
on Heimstaden AB's proportionally consolidated gross debt/EBITDA is
expected to decrease to below 3x. Fourthly, the
residential-for-rent asset class generates stable income streams,
particularly given high geographic diversification.

Income Stream Quality Determines Rating: Reliance on income streams
(i) to (iii), which do not cover Heimstaden AB's core interest
expense, drives the non-investment grade rating. While the
additional subordinated dividend income can help cover debt
service, this larger amount of cashflow than other income streams
is paid after servicing junior subordinated debt at Heimstaden
Bostad, which is rated 'BB+'. At the same time incremental leverage
at Heimstaden AB is not high enough to warrant further IDR notching
from the subsidiary's.

DERIVATION SUMMARY

There are no relevant publicly rated real estate holding company
peers to compare Heimstaden AB with.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer

- Core asset management fees (a percentage of Heimstaden Bostad's

   GAV) and preference A dividends, paid by Heimstaden Bostad,
   covering Heimstaden AB's administration expenses

- Growing rental income from its Icelandic residential portfolio

- Heimstaden AB's board has the flexibility to use its share of
   Heimstaden Bostad's gross dividend received to deleverage
   Heimstaden AB

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

- Upgrade of Heimstaden Bostad's IDR

- Heimstaden AB's standalone EBITDA/interest expense coverage
   above 1.5x

- Liquidity score above 1.0x

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

- Downgrade of Heimstaden Bostad's IDR

- Heimstaden AB's standalone EBITDA/interest expense coverage
   below 1.0x

- Heimstaden AB's proportionally consolidated gross debt/EBITDA
   more than 3x higher than Heimstaden Bostad's proportionally
   consolidated gross debt/EBITDA

- Liquidity score below 1.0x

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: At end-2Q22, Heimstaden AB had SEK3.4 billion
of available liquidity, comprising SEK2.4 billion of readily
available cash in addition to SEK1 billion undrawn credit
facilities. Dividends to be paid during 1H23 are expected to be
used to manage debt maturities. In addition, SEK2.6 billion net
disposal proceeds from the sale of the country management
organisation received in July 2022, together with available
liquidity, cover its SEK5.5 billion maturities until end-2023.

Heimstaden AB's debt structure at 2Q22 comprised SEK2 billion
secured debt, SEK13.7 billion of unsecured bonds, SEK7.4 billion of
hybrids bonds, and SEK3.5 billion remaining outstanding under its
bridge facility, and preference shares. The hybrids bonds issued by
Heimstaden AB are deeply subordinated and have received 50% equity
credit.

ESG CONSIDERATIONS

Heimstaden AB has an ESG Relevance Score of '4' for Governance
Structure due to its 70.8% ownership (96% of votes) by Fredensborg
SA, itself owned by family interests, 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.

  Debt                     Rating        Recovery  Prior
  ----                     ------        --------  -----
Heimstaden AB       LT IDR  BB+  Affirmed          BB+

  senior unsecured  LT      BB+  Affirmed   RR4    BB+

  subordinated      LT      BB-  Affirmed   RR6    BB-


HEIMSTADEN BOSTAD: Fitch Affirms 'BB+' Rating on Subordinated Debt
------------------------------------------------------------------
Fitch Ratings has revised Heimstaden Bostad AB's Outlook to
Negative from Stable, while affirming its Long-Term Issuer Default
Rating (IDR) at 'BBB'.

The Negative Outlook reflects slower-than-expected deleveraging,
driven by the recent high pace of investments, which has reduced
the ability to deleverage using operational cash flow at a time of
rising interest rates. In 2022, management have actively reduced
leverage by raising new equity both in the parent company and
through its JV with Allianz. Nevertheless, Fitch forecasts net
debt/EBITDA to be above 25x at end-2022 (2024: 23x). Furthermore,
Fitch forecasts that rising interest rates will gradually reduce
interest cover (Fitch includes 100% of hybrid interest) towards
1.5x in 2024 from an estimated 2x in 2022.

The affirmation reflects Heimstaden Bostad's position as one of the
largest residential landlords in Europe, benefitting from wide
diversification across several countries in northern and central
Europe. The local property markets exhibit positive demographic
trends and disposable income growth, low vacancy rates, and a mix
of market and regulated (below market) rents. These positive traits
provide a stable rental income profile.

KEY RATING DRIVERS

Higher-than-Expected Leverage: Fitch forecasts deleveraging to
below 22x net debt/EBITDA to take longer than initially expected,
driven by continued investments in Heimstaden Bostad's property
portfolio via acquisitions and developments, the acquisition of
Heimstaden AB's country management activities and financial
investments (Kojamo Oyj). This, combined with rising interest
costs, has decreased the ability to deleverage through operational
cash flows. Heimstaden Bostad has various mechanisms to strengthen
its balance sheet, as it has proven in the past, but this has not
been included in our rating case.

Inflation Testing Operational Model: The current inflationary
environment will put pressure on residential regulatory regimes and
its often indexed-linked rental growth, and on tenants'
affordability of market rents. Overall, Fitch expects inflation to
increase Heimstaden Bostad's rental growth, but see profit margin
pressures in some countries in the short term, as rental growth
indexation may be smoothed over more than one year, while cost
increases (especially energy-related) are front-loaded. For
market-rent markets, the strength of tenants' disposable income
will determine how large rental increases tenants can absorb. Fitch
expects Heimstaden Bostad to benefit from its diversification
across countries and regulatory regimes.

Acquired Country Management Organisation: During 3Q22, Heimstaden
Bostad acquired the country management organisation with 2,000
employees for SEK3 billion from its parent company Heimstaden AB in
an arms' length transaction, thereby simplifying its organisational
structure and improving its operating margin. Management estimates
SEK130 million in annual operational cost savings. Practically,
property management operations continue as before. The portfolio
management agreement with Heimstaden AB was also extended to 2047.

Equity-funded Hybrid Buyback: Heimstaden Bostad repurchased during
3Q22 part of its hybrid bonds with a nominal value of EUR868
million with EUR649 million (SEK6,885 million) equity funding from
existing institutional investors. The bonds were acquired at a
discount to their nominal value based on current market pricing.
The repurchase has strengthened Heimstaden Bostad's balance sheet
as the hybrid bonds (Fitch applied 50% equity credit) were replaced
by equity.

Sizeable Residential Portfolio: Heimstaden Bostad has expanded its
large property portfolio further to SEK336 billion at end-2Q22
(approx. EUR32 billion). The residential-for-rent portfolio is
Nordic-focussed, with additional diversification from properties in
Netherlands, Germany, UK and CEE countries. This provides wide
diversification across countries and cities, and reduces exposure
to individual regulatory regimes, economic, and demographic
trends.

Regulated and Market Rents: Demand for Heimstaden Bostad's
residential units are supported by necessity-based demand,
structural undersupply, and resultant low vacancy. The stability of
its rental income is further supported by the group's mix of
regulated (60% of rental income) and market rents (40%).
Historically, Heimstaden Bostad has achieved like-for-like rental
growth and vacancy below 5%. Management has targeted markets where
home ownership is already established, and therefore government
measures to preserve households' wealth creation are in line with
conducive conditions for the rented residential portfolio.

Unique Governance Framework: Fitch rates Heimstaden Bostad on a
standalone basis based on its unique governance framework.
Heimstaden Bostad has grown its portfolio by attracting capital
from large Nordic institutional investors and by dividend
reinvestment. The relationship between the owners is governed by a
shareholder agreement, which gives the institutional owners control
over key strategic matters (defined as reserved matters) while
day-to-day operations are handled by the majority owner Heimstaden
AB, which also has the majority of shareholders' votes.

Reserved Matters: The shareholder agreement ensures the
concentrated ownership does not adversely affect governance and
makes Heimstaden Bostad more akin to a public company. Board and
owner decisions on reserved matters require varying institutional
shareholder majority thresholds of institutional votes, depending
on the strategic importance, or board approval with maximum one
vote against for certain issues. Reserved matters include, but are
not restricted to, changes to financial policy, business plan,
dividend policy and making larger divestments.

Profit Reinvestment: Profits are divided among the owners through
different proportions of stapled ordinary and preference shares.
This ensures majority voting for Heimstaden AB while institutions
receive some preference in profit distribution.

Good performance is rewarded via Heimstaden AB's higher proportion
of ordinary shares, which are remunerated from profits after the
preferred shares have been paid. The owners in Heimstaden Bostad
are obliged, in certain instances, to reinvest all or part of their
preference distribution through a (ordinary and preference)
share-rebalancing mechanism. Historically, the owners have
reinvested a large part of their share distribution.

DERIVATION SUMMARY

With its enlarged portfolio of EUR32 billion, Heimstaden Bostad is
the second-largest European residential landlord, with around
153,000 units in the Nordics, central Europe, UK and CEE (Czech and
Poland) providing wide diversification. Its combined portfolio
value is larger than Fitch-rated Annington Limited's (BBB/Stable;
EUR9.8 billion) Ministry of Defence housing portfolio, and
materially larger than Grainger plc's (BBB-/Stable; EUR3.4 billion)
residential-for-rent portfolio. Both Annington and Grainger are
located across the UK. It is also larger than Peach Property Group
AG's (BB/Stable; EUR2.6 billion as at December 2021), located
mainly in the North Rhine-Westphalia region of Germany.

In all cases, Fitch acknowledges the necessity-based purpose of and
demand for this asset class, the stability of rental income in many
markets (particularly the regulated-rent markets), the fundamentals
of inherent demand as household numbers increase and the lack of
supply in many markets.

Longevity of tenant stay is conducive to stable income, as seen in
many entities' occupancy rates and rent collection even during the
pandemic, and rental uplift is planned for post-refurbishment
units. Different companies have different policies of concentrating
on city centres or more urban locations. Various forms of
tenant-protective rental regulation, constraining rental growth,
are in place per country.

Compared with commercial real estate, the net initial yields (NIYs)
on residential-for-rent have been lower, reflecting the above
underlying qualities and the different interest-rate regimes of
countries. Fitch acknowledges the higher debt capacity of
residential-for-rent assets compared with more volatile commercial
real estate (office, retail, industrial) and adjusts all rated
companies' net debt/recurring rental-derived EBITDA thresholds for
their NIYs and the quality of each entity's portfolio.

Heimstaden Bostad's debt capacity, as measured by net debt/EBITDA
(as seen in the upgrade and downgrade rating sensitivities), is
similar to Akelius's (before its disposal took place). However,
Akelius had similar yields but a wider geographic diversification
as it benefits from a US and Canada portfolio. Compared with EMEA
peers, Heimstaden Bostad's and Akelius's properties have lower
average income yields of around 2.5%, reflecting their higher share
of regulated rents than Grainger's UK portfolio and their locations
in more attractive prime cities in comparison to Peach's secondary
cities in Germany. The NIY on Grainger's regulated (and inherently
shrinking) and growing market-rent portfolio is 2% and 4%,
respectively, which corresponds to a blended 3% yield. Peach's
average NIY is around 3.5%.

The geographical diversification of Heimstaden Bostad 's portfolio,
which balances out city-specific developments such as Berlin rent
regulation, stands out as a material benefit to their ratings
compared with peers'.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer:

- For net debt/EBITDA calculation purposes in forecast years,
   Fitch has annualised rents of signed and planned acquisitions,
   disposals and developments rather than include part-year
   contributions, which can affect this ratio

- Moderate 3%-4.5% like-for-like rental growth driven by annual
   regular uplifts, indexation and re-letting upon tenants
   vacating apartments

- On average SEK7.4 billion of capex per year, comprising
   developments and apartment upgrades. Fitch assumes an average
   7.5% rental yield (increased rent) on this capex

- Continued portfolio growth through acquisitions, with around
   SEK12 billion of properties assumed to be acquired during 2022-
   2025

- Rising interest costs as debt mature and is refinanced and as
   derivatives expire

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

- Net debt/EBITDA below 19x

- EBITDA net interest cover above 2.5x

- Unencumbered investment property assets/unsecured debt above
   2.0x

- For Fitch's EMEA REITs' senior unsecured debt uplift: a lower
   share of secured debt with maintained share of assets in liquid

   markets

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

- Net debt/EBITDA above 22x

- EBITDA net interest cover below 1.75x

- Unencumbered investment property assets/unsecured debt below
   2.0x

- Changes to the governance structure that loosen the ring-
   fencing around Heimstaden Bostad

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: As at end-2Q22, Heimstaden Bostad had SEK6.7
billion in readily available cash in addition to SEK24.7 billion in
undrawn revolving credit facilities, which comfortably covered
SEK3.8 billion short-term debt maturities in 2022 and SEK10 billion
other debt maturities in 2023. During 3Q22, Heimstaden Bostad
repurchased hybrid bonds with a nominal value of EUR868 million at
a discount, funded by newly issued equity. The group's average debt
maturity was a long 9.1 years while its average interest rate was
1.1%, excluding the hybrid bonds.

Secured and Unsecured Debt Mix: Heimstaden Bostad is funded by a
mix of unsecured (bonds and commercial paper), secured (traditional
bank and Danish realkredit mortgages) and subordinated hybrid debt.
At end-2Q22, 37% of debt was secured, 46% unsecured and the
remaining 17% hybrid bonds. Its secured debt is primarily related
to assets in Denmark, Netherlands, Germany and Sweden.

Hybrids Notched off IDR: Heimstaden Bostad's hybrid bonds are rated
two notches below its IDR. The ratings reflect the hybrids' deeply
subordinated status to senior creditors, with coupon payments
deferable at the discretion of the issuer and long maturity dates.
The notching of the hybrids reflects their greater loss severity
than senior obligations'. The securities qualify for 50% equity
credit in accordance with Fitch's hybrid criteria.

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.

  Debt                        Rating           Prior
  ----                        ------           -----
Heimstaden Bostad AB   LT IDR  BBB  Affirmed     BBB

  senior unsecured     LT      BBB  Affirmed     BBB

  subordinated         LT      BB+  Affirmed     BB+

Heimstaden Bostad
Treasury B.V.
  
  senior unsecured     LT      BBB  Affirmed     BBB




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

GATWICK AIRPORT: Fitch Affirms 'BB-' Rating on Notes
----------------------------------------------------
Fitch Ratings has affirmed Gatwick Funding Limited's (GF) notes at
'BBB+' and Gatwick Airport Finance plc's (GAF) notes at 'BB-'. The
Outlooks are Negative.

RATING RATIONALE

The affirmation reflects GF's financial flexibility, solid
liquidity position and expected deleveraging below its 'BBB+'
rating sensitivity of 6.5x by 2024, due to gradual traffic recovery
as well as deferrable capex and shareholder distributions. In
Fitch's view, the airport's strong catchment area and modern
facilities continue to make the airport attractive to airlines and
should support the recovery. Fitch currently expects traffic to
recover to 2019 levels by 2025.

Additionally, GAF's affirmation at 'BB-' reflects unchanged
structural subordination of GAF's debt to the GF ring-fenced group
(the group), and the current lock-up at the group level preventing
dividend distributions until 2024 under all Fitch's cases. Fitch
notches GAF's debt rating down from the consolidated profile, which
includes GF and GAF. GAF's full ownership of and dependency on the
group, underlined by the one-way cross-default provision with the
group as well as GAF's covenants tested at the consolidated level,
drive the consolidated approach.

The Negative Outlooks reflect the ongoing uncertainty relating to
post-pandemic traffic recovery, increasing macroeconomic pressure
on demand and changes in customer behaviour patterns.

KEY RATING DRIVERS

Second Largest Airport in Strong Catchment Area: Volume Risk - High
Midrange

Fitch has revised its assessment of revenue risk (volume) to 'High
Midrange' from 'Midrange' following the publication of its new
Transportation Infrastructure Rating Criteria, which assesses
volume risk on a five-point scale.

Gatwick is the second-largest airport in the UK serving as an
origin-and-destination, leisure-oriented airport within a strong
and wealthy catchment area (London and South East UK) of around 15
million people. It competes with Heathrow, the region's primary hub
and long-haul full-service airport, as well as Stansted Airport,
which focuses on low-cost airlines.

Gatwick's traffic demonstrated weaker resilience (compared with
EMEA peers, including Heathrow and Aeroports de Paris) to economic
downturns in the past with a maximum peak-trough fall in traffic of
11.6% through the 2008 economic crisis. The airport has high
exposure to leisure-related traffic and some airline concentration
risk, with EasyJet representing about 50% of traffic in 2022 (up
from 40% in 2019). During the pandemic, Gatwick's traffic
performance lagged other UK airports, mostly driven by the state
policy on travel restrictions and British Airways consolidation at
Heathrow, but traffic recovery has now caught up with the rest of
the market. Fitch expects short-haul and leisure traffic to recover
faster than long haul and business destination traffic.

Commitments Monitored by Regulator: Price Risk - Midrange

The airport has operated under revised "light handed" economic
regulation since April 2014. The contracts and commitments
framework established legally binding commitments between the
airport and its airlines, creating a default airport tariff
covering price and service levels available to all airlines. In
2021 the regulator, Civil Aviation Authority (CAA), adopted a
simplified price commitment for Gatwick, which limits the maximum
annual rate of increase in its gross yield to RPI+0%, referencing
the gross yield of GBP10.29 for the year ending March 2019. The new
commitments are in place until March 2025.

The framework enables bespoke bilateral contracts with airlines
providing the airport with more pricing flexibility. The contracts
incentivise traffic and protect revenue against moderate downside.

Flexible Capex, Largely Deferred - Infrastructure Development and
Renewal - Stronger:

Gatwick has considerable experience of managing its own asset base
and has performed significant works over recent years in
maintaining and improving its infrastructure. The airport has a
relatively complex operational footprint with a fully owned single
main runway, standby runway and two terminals. In the medium term,
there are no capacity constraints with regards to the runway, while
the terminals' capacity can be increased by modular capex projects.
Short- and medium-term maintenance needs are well-defined. The
investment programme is significant but modular.

The regulatory framework allows for flexibility in investments
compared with price cap regulation and Fitch expects Gatwick to
spend significantly more than committed under the current
framework. Investments are funded by internal cash flows and
committed facilities.

Bullet Debt with Creditor Protective Features - Debt Structure at
GF - Midrange:

GF's debt programme benefits from a strong security and covenant
package. All debt is senior ranking with no material exposure to
interest rate risk. The reliance on bullet debt creates refinance
risk, although near-term refinancing needs are low, maturities are
fairly evenly spread and Gatwick has a record of access to capital
markets. GF's debt assessment benefits from a strong liquidity
position with GBP471 million cash as of August 2022 and a dedicated
GBP150 million undrawn liquidity facility. There are no outstanding
maturities until 2024.

Reliance on Dividends Upstream - Debt Structure at GAF - Midrange:

Debt service is reliant on dividends being upstreamed from the
ring-fenced group. The group is currently in lock-up and is not
expected to make distributions to GAF until 2024 in all Fitch's
cases. A debt service reserve account supports interest payments
during the lock-up period. However, the depressed macroeconomic
outlook for 2023 exposes GAF's debt to potential shortfalls should
the dividend lock-up extend beyond 2024.

GAF's debt has no material exposure to interest-rate risk, but the
reliance on bullet debt creates refinance risk, although near-term
refinancing needs are low. The ring-fenced group has a strong
liquidity buffer, fairly evenly spread maturities and a record of
capital-market access.

Distributions from the group are GAF's sole source of earnings and
cash flow to support its debt interest costs. Fitch views GAF's
cash flow as having minimal or no diversity and its obligations as
structurally subordinated to the group's operating needs. Fitch
notes that distributions could be volatile and pressure debt
service at GAF if the group's cash flow is impaired.

Financial Profile

Under the Fitch base case (FBC) and Fitch rating case (FRC), the
projected net debt to EBITDA at GF falls in 2023 to 6.1x and 7.5x,
respectively. From 2024 and in the long term, leverage remains at
6.5x in both cases due to shareholder distributions.

The consolidated net debt to EBITDA including the GAF debt exceeds
the leverage of the ring-fenced group by approximately one turn,
with leverage falling to 7.0x and 8.5x in FBC and FRC,
respectively. From 2024 and in the long term, leverage remains
around 7.2x-7.3x for both cases.

Finance and operating leases are captured as an operating expense,
reducing EBITDA.

PEER GROUP

Heathrow Funding Limited (class A notes rated A-/ Negative) is a
larger company in terms of traffic and has a stronger operational
profile as its traffic is more resilient. Therefore, Heathrow can
tolerate higher levels of leverage with debt structure broadly
aligned with GF's notes. Heathrow's class B (rated BBB/Negative) is
a notch below GF's notes as Heathrow's stronger operations are
offset by higher leverage.

Manchester Airport Group Funding PLC (MAG; BBB/Negative) is a
larger company in terms of traffic and has higher geographical
diversification with three airports (Manchester Airport, Stanstead
Airport in London and East Midlands Airport). However, MAG
experienced a larger decline in traffic during the financial crisis
than Gatwick. This is due to Gatwick's more competitive position in
the strong London market. The rating difference is driven by
Gatwick's stronger business profile and more protective debt
features, specifically dedicated reserves and liquidity facilities
for debt service.

Compared with Brussels Airport Company S.A./N.V. (BBB+/Negative),
GF's higher projected leverage broadly offsets a stronger catchment
area.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

GF: projected Fitch net debt/EBITDA sustainably above 6.5x under
the rating case or failure to prefund its bullet debt 12 months in
advance of legal maturities.

GAF: weaker-than-expected financial performance, which would
threaten an extension of the dividend lock-up beyond 2024 and
hasten the depletion of liquidity.

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

GF: an upgrade is currently unlikely given the fragile status of
the airport sector. Revenue recovery combined with deleveraging
ahead of Fitch's current expectations could lead to a revision of
the Outlook to Stable.

GAF: increased visibility of the evolution of the operating
environment and medium-term traffic path, resulting in the removal
of the lock-up at the group prior to 2024 could lead to a revision
of the Outlook to Stable.

TRANSACTION SUMMARY

Gatwick is one of five airports servicing London and South East
England. It is London's, and the UK's, second-largest airport. It
primarily acts as an origin-and-destination airport and is
generally focused on leisure services.

Debt issued at GF is senior secured and ring-fenced long-term
financing of Gatwick. Debt at GAF was issued in 2021 to improve
Gatwick's liquidity during the pandemic and deleverage the
ring-fenced group. GAF's debt is structurally subordinated to GF's
debt.

CREDIT UPDATE

Operational Performance

Gatwick's traffic profile considerably improved in 2022 from 27% of
the 2019 level in January to 81% in July (broadly aligned with the
83% on average in July for European peers). This was supported by
the relaxation of international travelling rules since January
2022, including the removal of all UK travel restrictions in March,
release of pent-up demand and removal of waiver on the use-it
or-lose it slot allocation rule. Traffic recovery was driven by
European traffic and other international traffic, while domestic
was slightly lagging.

Liquidity

Gatwick has maintained strong liquidity throughout the pandemic. It
has also retained strong market access, which Fitch expects to
support continued strong liquidity.

As of August 2022, available cash at GF was GBP0.5 billion, which
adds to the undrawn liquidity facility of GBP150 million. There are
no outstanding maturities until 2024.

GAF's available cash is minimal, but creditors benefit from a
dedicated debt service reserve account of GBP50 million covering
interest payment until 2024 under the FRC.

FINANCIAL ANALYSIS

Under the FRC, Fitch assumes traffic to recover to 70% of 2019
level in 2022 and gradually recover to 100% by 2025. In addition,
Fitch assumes structural reduction in aero-yield in 2022 compared
with 2021 due to higher passenger base and airline mix. In
2023-2026 Fitch assumes zero aero-yield growth in real terms.
Commercial yield is assumed to fall in 2022 and then grow at flat
rate in real-terms afterwards as a result of uncertainty in respect
to consumer behaviour and pressure on discretionary spending amid
period of high inflation. Fitc expects moderate increases in opex
from a much-reduced levels in 2020-2021 in line with traffic
recovery and inflation. Fitch assumes reduced investments of around
GBP70 million in 2022 before capex ramps up to accommodate projects
that were postponed during pandemic. Fitch expects constant
releveraging to 6.5x at the GF level due to shareholder
distributions.

Summary of Financial Adjustments

Finance and operating leases are removed from financial
liabilities. Lease expenses are captured as an operating expense,
reducing EBITDA.

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.

  Debt                            Rating           Prior
  ----                            ------           -----
Gatwick Funding Limited
  
Gatwick Funding Limited/  
Debt/1 LT                      LT  BBB+  Affirmed  BBB+

Gatwick Airport Finance plc

Gatwick Airport Finance plc/
Debt/1 LT                      LT  BB-   Affirmed  BB-


LGC GROUP: Fitch Affirms 'B+' LongTerm IDR, Outlook Stable
----------------------------------------------------------
Fitch Ratings has affirmed UK-based global life science tools and
services provider LGC Science Group Holdings Limited's (LGC Group;
formerly 'Loire UK Midco 3 Limited') Long-Term Issuer Default
Rating (IDR) at 'B+ with a Stable Outlook.

The 'B+' IDR balances modest scale and moderate leverage with
satisfactory growth over the last 12 months despite receding
pandemic-related testing activity, continued innovation
capabilities and scientific barriers to entry.

The Stable Outlook reflects structural organic growth prospects for
the life-science and healthcare testing industries, as well as
strong profitability and free cash flow (FCF) generation.

Fitch expects LGC Group to maintain discipline in its acquisitive
strategy of strengthening its portfolio and research capabilities,
and to focus on cash preservation for deleveraging, ahead of
refinancing needs from 2026.

KEY RATING DRIVERS

Defensive Underlying Business Risks: Its rating recognises LGC
Group's strong position in the structurally growing routine and
specialist life-science and healthcare-testing markets, which are
characterised by longstanding customer relationships. Fitch views
these strong and diverse customer relationships, the critical
contribution of LGC Group products to its client workflow, and the
group's focus on and reputation for quality as significant barriers
to entry that underpin its robust business model.

Declining Covid-19 Testing: LGC Group is firmly positioned in its
main markets in Europe and the U.S., generating over 25% of
additional revenue from life science measurement & reference tools
and testing projects required to support public health policies on
coronavirus diagnosis. Its results for financial year to March 2022
showed resilience despite Covid-19-related revenue retreating
significantly, but which still accounted for more than 15% of
revenue.

Resilient Underlying Business: Strong growth in the quality
assurance and genomics segments, by 5% and 3% above Fitch
expectations respectively, offset the decline in Covid-19-related
testing. Strong annual revenue growth in FY22 of 13.4% was mostly
derived from organic growth, while inorganic contribution was
negligible. However, overall revenue growth was still 9% below our
previous forecast under which we had expected higher inorganic
growth and more Covid-19 testing.

High Recurring Revenue Streams: LGC Group has exhibited a long-term
sticky customer base, as reflected in around 95% of its revenue
being recurring and is supported by its reputation for premium
quality and strong scientific credentials. High barriers to entry
in core niche markets, due to regulatory approvals and the critical
non-discretionary nature of its products contribute to visibility
over customer retention and revenue.

Profitability Remains Strong: The strong traits of LGC Group's
business profile have translated into sector-leading organic
revenue growth of close to 10%, driven by both positive volume and
price effects. Its rating case forecasts underlying organic growth
to be in line with historical levels and market growth. However,
Fitch-defined EBITDA margin is expected to decline to 34% by FY23,
from 35.5% in FY21 at the peak of the pandemic, albeit still
150bp-200bp above historical levels. The expected decline is due to
an adverse product mix from fading higher-margin Covid-19 testing
activity not fully mitigated by higher demand in other
end-markets.

Healthy FCF: Superior profitability will translate into FCF margins
of 8% to 11% over the next three years. This is despite our
assumptions of higher interest costs and large capex at around
6.5%-7% of sales for further innovations and to increase production
capacity to support future growth.

Leverage and Size a Constraint: Despite its growth LGC Group
remains small, particularly relative to Fitch-rated sector peers.
Its dividend recapitalisation in March 2021 led to re-leveraging,
after having deleveraged by around 2.0x on EBITDA growth, towards
the low end of the 'B' rating category. Gross debt/EBITDA of 6.0x
at FYE22 was high but mitigated by its defensive business profile
and satisfactory FCF generation in its rating case. The latter
supports a deleveraging path towards 4.5x by FY25, below our
negative rating sensitivity of 5.5x, which anchors our Stable
Outlook.

Moderate Execution Risks: Fitch believes that LGC Group will
continue its acquisitive strategy as this is central to value
creation, particularly from its sponsors' perspective. In this
respect, its rating case assumes cash-funded acquisitions of around
GBP300 million over the next three years, slightly below its
previous forecasts, without jeopardising an acceptable liquidity
headroom. Fitch views of moderate execution risks reflects the
broad scope of potential acquisitions, and subsequent integration,
but also LGC Group's positive record as a consolidator in the
fragmented industry.

Positive Sector Fundamentals: LGC Group is firmly positioned to
capture favourable growth in life sciences, healthcare, and
measurement sciences, driven by rising volumes and innovation, and
supported by stricter regulatory requirements on testing in a
growing number of applications. In the short term, additional
revenue is expected to move away from supporting government and
industry projects on global coronavirus testing and diagnosis.

DERIVATION SUMMARY

Fitch rates LGC Group using its Medical Devices Navigator
Framework. Its rating is constrained by the group's modest size and
significant financial leverage, particularly relative to that of
larger US peers in the life science and diagnostics sectors. Close
peers are generally rated within the 'BBB' rating category,
including Bio-Rad Laboratories Inc. (BBB/Stable), Thermo Fisher
Scientific Inc. (BBB+/ Stable), PerkinElmer Inc. (BBB/Stable),
Eurofins Scientific S.E (BBB-/Stable) and Agilent Technologies Inc.
(BBB+/Stable).

In Fitch peer analysis, LGC Group demonstrates a similar EBITDAR
margin in the high 30% range to some of the larger peers with
similar FCF generation, reflecting its strong business model rooted
in niche positions that are underpinned by scientific excellence.
In addition, LGC Group demonstrates good organic growth,
supplemented by consolidation opportunities in the fragmented
global life-science tools market.

LGC Group's defensive business risk attributes are offset by
smaller scale and higher leverage versus the abovementioned peers',
which places the group's rating in the highly speculative 'B'
category. Its financial risk profile is more comparable with that
of European healthcare leveraged finance issuers such as Curium
Bidco S.a.r.l (B/Stable) and Inovie Group (B/Stable). All three
issuers share a defensive business risk profile and deploy
financial leverage to accelerate growth in a consolidating European
market. A materially larger size and more conservative financial
profile post-IPO merit a higher rating for European peer Synlab AG
(BB/ Stable), which has shown significant deleveraging and
broadened its access to capital markets.

KEY ASSUMPTIONS

- Revenue CAGR of 11.1% over FY22-FY25, driven by organic growth
   that is in line with historical trends and by moderate
   inorganic growth. Covid-19-related business to diminish in FY23

- Gross margin at 66% at FYE22, gradually declining to historical

   levels of 62% by FY24 due to adverse product mix following
   slower Covid-19 testing and inflationary pressure

- Fitch-defined EBITDA margin at around 35% in FY22 and 34% by
   FY23, although above pre-pandemic levels

- Working capital to remain stable at 2% of sales p.a. to FY25

- Capex on average at 7% of sales p.a., including stable
   maintenance capex 1%-2% of sales, in line with historical
   trend. Growth capex to increase innovation capability and other

   strategic projects to support future growth

- Acquisitive capex over the next three years to finance bolt-ons

   for a total aggregated value of GBP300 million

Fitch's Key Recovery Assumptions:

- The recovery analysis assumes that LGC Group would remain a
   going concern (GC) in the event of restructuring and that it
   would be reorganised rather than liquidated. Fitch has assumed
   a 10% administrative claim in the recovery analysis.

- Fitch assumes a post-restructuring GC EBITDA of GBP126 million
   on which it base the enterprise value (EV).

- Fitch assumes a distressed multiple of 6.5x, reflecting the
   group's premium market positions, geographical diversification
   and sound reputation.

- Fitch's waterfall analysis generates a ranked recovery for
   senior creditors in the 'RR4' band, indicating a 'B+'
   instrument rating for the group's senior secured facilities, in

   line with the IDR. The waterfall analysis output percentage on
   current metrics and assumptions is 40% for the senior secured
   loans.

- Fitch assumes LGC Group's multi-currency revolving credit
   facility (RCF) would be fully drawn in a restructuring, ranking

   pari passu with the rest of the senior secured debt. Fitch also

   views the US dollar-denominated payment in kind (PIK) as an
   equity instrument, sitting outside the restricted group,
   despite the proposed cash interest payments allowed under the
   'PIK-if-You-Want' structure. However, should cash continue to
   leave the restricted group for PIK interest payments, Fitch may

   reconsider the equity treatment of this debt and also adjust
   leverage and debt service coverage ratios accordingly. For the
   avoidance of doubt, Fitch's view the PIK cash interest
   treatment as part of the last dividend recap as a one-off
   event.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

- Upside is limited unless the group increases its global scale
   and sees higher diversification without adversely affecting
   brand reputation, in combination with

- Funds from operations (FFO) gross adjusted leverage below 5x,
   or gross debt/EBITDA below 4.0x on sustained basis

- Operating EBITDA/interest paid above 3.5x on sustained basis

- Superior profitability with EBITDA margin remaining above 35%
   and successful integration of accretive M&A

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

- FFO gross leverage above 6.5x, or gross debt/EBITDA above 5.5x
   on sustained basis

- Operating EBITDA/interest paid sustainably below 2.5x

- Lower organic growth due to market deterioration or
   reputational issues resulting in market share loss or EBITDA
   margins below 30%

- FCF margins sustainably below mid-single digits or aggressive
   M&A activity hampering profitability and deleveraging prospects
   
LIQUIDITY AND DEBT STRUCTURE

Strong Liquidity: LGC Group has adequate liquidity under Fitch's
rating case based on modest cash-on-balance sheet of EUR35
million-EUR70 million, after cash-funded acquisitions of EUR100
million p.a. assumed by Fitch over the next three years. It has a
fully available revolving credit facility of GBP265 million for
general corporate purposes, which Fitch assumes would remain mostly
undrawn under its rating case.

Its liquidity buffer remains healthy for business operations,
including intra-year working-capital swings of around GBP20
million. The group does not face any meaningful debt repayment
needs before FY26-FY27.

ISSUER PROFILE

LGC is a leading global life science tools company, providing
mission-critical components and solutions in high-growth
application areas across the human healthcare and applied market
segments.

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.

  Debt                       Rating       Recovery  Prior
  ----                       ------       --------  -----
Loire US Holdco 1, Inc.

  senior secured        LT      B+  Affirmed  RR4    B+

LGC Science Group
Holdings Limited        LT IDR  B+  Affirmed         B+

  senior secured        LT      B+  Affirmed  RR4    B+

Loire Finco
Luxembourg S.a r.l.
  
  senior secured        LT      B+  Affirmed  RR4    B+

Loire US Holdco 2, Inc.

  senior secured        LT      B+  Affirmed  RR4    B+


NOMAD FOODS: Fitch Alters Outlook on 'BB' LongTerm IDR to Negative
------------------------------------------------------------------
Fitch Ratings has revised Nomad Foods Limited's Outlook to Negative
from Stable. Fitch has also affirmed its Long-Term Issuer Default
Rating (IDR) at 'BB' and senior secured rating at 'BB+' with a
Recovery Rating of 'RR2'.

The Negative Outlook reflects risks to Nomad Foods' EBITDA margin
recovery, which if materialised, may lead to leverage permanently
remaining above our negative rating sensitivity over 2022-2025. Its
EBITDA margin is currently under pressure from strong cost
inflation, which the company, in Fitch’s view, may not be able to
fully pass on to consumers given stiff competition from cheaper
private labels in the frozen food category.

The 'BB' rating remains supported by the company's position as the
largest frozen food producer in western European, its strong free
cash flow (FCF) generation, and adequate interest cover metrics
translating into solid financial flexibility for the rating.

KEY RATING DRIVERS

Cost Inflation Erodes Profitability: Nomad Foods, like the broader
food and beverages sector, is being challenged by increased raw
material and packaging costs. Its Fitch-adjusted EBITDA margin fell
in 2021 and 1H22 as price increases lagged cost inflation. In 1H22,
Nomad Foods' prices increased organically only 2%, well below the
high single-digit increases reported by its fast-moving consumer
goods peers, due to late pricing actions as it adhered to the usual
negotiation cycle with retailers in 1Q22. Fitch expects price
increases to become more visible in 2H22 revenue, helping to partly
offset cost inflation.

Risks to Margin Recovery: Nomad Foods intends to fully recover its
margin in 2023 with another wave of price increases planned for
4Q22. However, Fitch is cautious that it could take longer due to a
volatile commodity price environment and potential disruptions to
fish supplies from Russia. Fitch also sees execution risks related
to further price increases as competition from private labels is
strong. This is reflected in the Negative Outlook on the rating.

Sales Volumes Decline: Nomad Foods' organic sales volumes fell 1.6%
in 2021 and 5.9% in 1H22 as demand for frozen food normalised after
having been boosted by the pandemic. Fitch expects the impact of
normalising demand on the company's sales to diminish from 2H22 but
volumes will remain under pressure, due to demand elasticity to
price increases introduced in 2022. The frozen food category has a
strong presence of private label, to which consumers may shift from
branded products when the price differential increases.

Slow Deleveraging: Funds from operations (FFO) gross leverage
jumped to 6.6x in 2021 (2020: 5.0x) as a result of the acquisition
of an ice cream and frozen food business in Balkans, which was
partly funded with debt. Fitch projects that leverage may remain
high and above its negative rating sensitivity of 5.5x over
2022-2024, much longer than in its previous rating case, due to
significant cost pressures.

Public Leverage Target: Nomad Foods' net debt/EBITDA target of
2.5x-3.5x is not fully commensurate with its 'BB' rating. However,
Fitch does not expect leverage to exceed its negative sensitivity
if it is managed towards the lower end of the range, which would be
more aligned with historical levels. Nomad Foods expects its
leverage to fall by end-2022 from 4x at end-1H22, following its
decision to temporarily suspend share buyback in 2022. This gives
us some confidence that the company intends to bring leverage
within its target range. Partial repayment of its maturing term
loan with cash could further support the assigned 'BB' rating.

Strong FCF to Resume: Nomad Foods' FCF will reduce in 2022 mostly
due to working-capital outflows resulting from inventory build-up
and implementation of the EU unfair trading practice directive.
Nevertheless, Fitch projects strong FCF generation will be restored
in 2023, despite its EBITDA margin remaining below the 2021 level.
Projected FCF margin of above 7% is a credit strength and
favourably differentiates Nomad Foods from sector peers. Healthy
FCF generation reduces the company's need for external funding for
its growth strategy and lowers refinancing risks.

No M&A in Short Term: Inorganic growth remains an important element
of its strategy but Fitch expects Nomad Foods to focus on the core
business and on extracting synergies from its acquired ice cream
and frozen food assets. Once the operating environment normalises,
Fitch assumes that Nomad Foods will use its accumulated cash to
acquire new assets or return cash to shareholders through its
USD500 million share buyback programme. Fitch therefore uses gross
instead of net leverage for rating sensitivities.

Leading European Frozen Food Producer: The ratings reflect Nomad
Foods' business profile as the largest branded frozen food producer
in western Europe, with leading positions across markets and
categories. Its market share of 18% is more than two times its next
competitor's. Nomad Foods also ranks third in branded frozen food
globally, after Nestle SA (A+/Stable) and Conagra Brands, Inc.
(BBB-/Stable). Nomad Foods' market position and annual EBITDA of
above EUR400 million put it firmly in the 'BB' rating category.

Moderate Diversification: Nomad Foods' geographic diversification
across Europe and frozen food products favourably differentiates it
from 'B' category peers. The acquisition of Fortenova's frozen food
business in 2021 expanded geographical diversification to Balkans
and added ice cream to Nomad Foods' portfolio. However, the focus
on one packaged food category (frozen food) and mostly mature
markets in one geographic region means business diversification is
weaker than investment-grade packaged food producers'.

DERIVATION SUMMARY

Nomad Foods compares well with Conagra, which is the second-largest
branded frozen food producer globally with operations mostly in the
US. Similar to Nomad Foods, Conagra's growth strategy is based on
bolt-on M&A. The two-notch rating differential stems from Conagra's
larger scale and product diversification as it also sells snacks,
which account for around 20% of revenue. Conagra's organic growth
profile is stronger than Nomad Foods' and we expect it to better
cope with cost inflation. This explains the difference in rating
Outlooks.

Despite its more limited geographical diversification and smaller
business scale, Nomad Foods is rated higher than the world's
largest margarine producer, Sigma Holdco BV (B/Negative). The
rating differential is explained by Nomad Foods' lower leverage,
proven ability to generate positive FCF, and less challenging
demand fundamentals for frozen food than for spreads. Both ratings
are on Negative Outlook, reflecting the risk that deleveraging may
be delayed by cost inflation.

Nomad Foods is rated below global packaged food and consumer goods
companies, such as Nestle, Unilever PLC (A/Stable) and The Kraft
Heinz Company (BBB-/Stable), due to its limited diversification,
smaller business scale and weaker financial profile.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer

- Organic revenue growth below 1% in 2022, followed by around 2%-
   3% in 2023-2025, with price increases partly offset by volumes
   declines due to demand elasticity

- EBITDA margin to decline in 2022 before gradually recovering to

   2020 level by 2025

- High interest rates persisting over 2022-2024, with maturing US

   dollar term loan refinanced at higher rates

- Capex at around 3% of revenue in 2022-2023, before gradually
   declining to 2.5% over 2024-2025

- No dividends

- Share buybacks temporarily suspended in 2022 and then to be
   completed over 2023-2024

- Accumulated cash to be used for bolt-on M&As

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to upgrade:

- Strengthened business profile via increased business scale or
   greater geographical and product diversification

- Continuation of organic growth in sales and EBITDA

- FFO gross leverage below 4.5x or total debt/EBITDA below 3.5x
   on a sustained basis, supported by a consistent financial
   policy

- Maintenance of strong FCF margins

Factors that could, individually or collectively, lead to the
revision of the Outlook to Stable:

- Visibility of EBITDA growth due to successful price increases

- FFO gross leverage below 5.5x or total debt/EBITDA below 4.5x
   on a sustained basis, supported by a commitment to manage
   leverage towards the lower end of the target range

Factors that could, individually or collectively, lead to
downgrade:

- Weakening organic sales growth, resulting in market-share
   erosion across key markets

- FFO gross leverage above 5.5x or total debt/EBITDA above 4.5x
   on a sustained basis as a result of operating underperformance
   or large-scale M&A

- A reduction in the EBITDA margin or higher-than-expected
   exceptional charges leading to an FCF margin below 2% on a
   sustained basis

LIQUIDITY AND DEBT STRUCTURE

Adequate Near-Term Liquidity: At end-June 2022, Nomad Foods had
sufficient liquidity due to cash of EUR221 million and EUR165
million available under revolving credit facility of EUR175 million
(out of which EUR10 million is carved out as a guarantee facility).
Its only short-term debt maturity was related to a small
amortisation payment on its US dollar term loan.

Manageable Refinancing Risks: Unlike its euro term loan, Nomad
Foods' USD906.8 million term loan, maturing in April 2024, was not
refinanced in 2021 and now represents the only significant maturity
over the rating horizon. Fitch assesses refinancing risks as
manageable as the company still has time to explore its options and
its FCF remains positive, providing flexibility to refinance in a
lower amount. Nevertheless, if no significant progress is made over
the next six to 12 months, or leverage stays high due to weak
underlying trading, refinancing risk will start to negatively
affect the rating.

Uplift to Senior Secured Rating: The one-notch uplift to the rating
of the secured loans and notes to 'BB+' reflects Fitch’s view of
superior recovery prospects. These are supported by moderate
leverage that is partly offset by the lack of material
subordinated, or first-loss, debt tranche in the capital structure.
The senior credit facilities and notes share the same collateral
and therefore rank pari passu between themselves.

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.

  Debt                        Rating        Recovery    Prior
  ----                        ------        --------    -----
Nomad Foods Lux S.a.r.l.

  senior secured         LT     BB+   Affirmed  RR2       BB+

Nomad Foods Limited      LT IDR BB    Affirmed            BB

Nomad Foods Europe
Midco Limited
  
  senior secured         LT     BB+   Affirmed  RR2       BB+

Nomad Foods US LLC

  senior secured         LT     BB+   Affirmed  RR2       BB+

Nomad Foods BondCo Plc
  
  senior secured         LT     BB+   Affirmed  RR2       BB+


REDWOOD MONTESSORI: Rising Costs Prompt Liquidation
---------------------------------------------------
Kirsty Hamilton at Workshop Guardian reports that Redwood
Montessori Nursery, on Newcastle Avenue, announced on Sept. 30 it
would close permanently that evening -- leaving parents only the
weekend to find a new childcare provider.

The nursery, formerly known as Alphabet House, sent out an email to
parents citing rising costs as its reason for closure, Workshop
Guardian relates.

Owners Megda and Howard Kelham confirmed the company is going into
liquidation and said they had to make a "quick decision" to close,
without giving notice to parents or staff, Workshop Guardian
notes.

According to Workshop Guardianm in a joint statement, they said:
"September has been a very stressful time for us.  We had to
evaluate if the funding received will allow us to function, as
majority of children attending the nursery rely solely on the
‘free’ childcare grant and do not purchase any additional
hours.

"Unfortunately, the combination of inadequate funding, lower number
of children in September and steeply growing costs has made it
impossible for us to continue."


TURPIN DISTRIBUTION: Goes Into Administration
---------------------------------------------
Ruth Comerford at The Bookseller reports that Turpin Distribution
has been placed into administration as part of a "major
reorganisation" of United Independent Distributors (UID) which
includes Marston, Eurospan and disruption-hit firm Orca.

The changes, which will result in an unconfirmed number of job
losses, come a year after US-based Independent Publishers Group
acquired the UK's UID group of companies, The Bookseller notes.

It will see UID companies Marston, Eurospan and Orca -- a
distributor beset by problems for nearly a year after a warehouse
move from Dorset to Biggleswade in Bedfordshire -- exist as
separate entities but managed by the same executive team, The
Bookseller states.  UID said this aimed to "integrate and
stabilise" the companies.

It will also see Turpin, whose clients include Emerald and
Liverpool University Press, enter administration, The Bookseller
discloses.  The company has existed for more than 40 years and, The
Bookseller relays, citing its website, employs 100 members of
staff.

According to Bookseller, in a statement, the owners partly blamed
scholarly publishing's move towards Open Access, a decline in
journal subscriptions, and a move toward lower-priced digital
journals for the decision.

"The Turpin board has worked hard with its professional advisors to
find a solvent solution to preserve the company or a going concern
sale of the company's business, but regrettably this has proven
impossible, and we have therefore resolved that the only option now
available for Turpin is to place it into administration,"
Bookseller quotes UID as saying.

The Eurospan distribution unit will now be operated through Marston
Book Services' systems in UID's Biggleswade distribution centre,
discloses.


WESTSIDE HEALTH: Gym Shut Down Pending Liquidation
--------------------------------------------------
Suzanne Moon at Rutland & Stamford Mercury reports that Westside
Health Club, a family-run gym that has been in business for 26
years, is closed pending liquidation.

Westside Health Club in West Street, Stamford, has a notice to
customers on its door explaining that the owners have taken the
"painful decision" to close.

According to Rutland & Stamford Mercury, company director Simon
Dale said in the message: "This is deeply upsetting for us as a
family.

"We haven't arrived here easily -- we've given our all and tried to
explore every other avenue to avoid this, but in the current
economic climate with unprecedented increases in fuel, energy and
many other costs, meant as things stand it is no longer viable to
continue."

Creditors to Westside Health Club are being contacted by insolvency
specialists McTear, Williams and Wood by post on Oct. 3, with the
liquidation of Westside as a company due to happen on Oct. 10,
Rutland & Stamford Mercury discloses.



                           *********


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
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