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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, December 13, 2022, Vol. 23, No. 242

                           Headlines



A L B A N I A

ALBANIA: S&P Affirms B+/B Sovereign Credit Ratings, Outlook Stable


B E L A R U S

DEVELOPMENT BANK: S&P Cuts Foreign Currency ICRs to 'SD/SD'


F R A N C E

CHROME HOLDCO: S&P Affirms 'B' ICR, Outlook Stable
FINANCIERE LABEYRIE: EUR455M Bank Debt Trades at 39% Discount
FINANCIERE LABEYRIE: S&P Lowers LT ICR to 'CCC+', Outlook Stable


G E R M A N Y

COLOUROZ INVESTMENT: EUR609M Bank Debt Trades at 29% Discount
UNIPER: EU Commission Has Until Dec. 16 to Decide on Bailout


L U X E M B O U R G

COVIS FINCO: EUR310M Bank Debt Trades at 49% Discount
MALLINCKRODT INTERNATIONAL: $1.4B Debt Trades at 23% Discount


N E T H E R L A N D S

[*] NETHERLANDS: Bankruptcies Still Below Pre-Covid Levels


S E R B I A

SERBIA: S&P Affirms BB+/B Sovereign Credit Ratings, Outlook Stable


S P A I N

PAX MIDCO: S&P Upgrades ICR to 'B-' on Operations Recovery


S W E D E N

INTRUM AB: Fitch Assigns 'BB(EXP)' Rating to Senior Unsecured Bonds


U K R A I N E

UKRAINIAN RAILWAYS: S&P Downgrades ICR to 'CC', Outlook Negative


U N I T E D   K I N G D O M

FOLGATE INSURANCE: A.M. Best Affirms B(Fair) Fin'l. Strength Rating
LB RE FINANCING: December 24 Claims Filing Deadline Set
M&CO: Five Kent Stores Face Closure Following Administration
MONSOON: Returns to Profitability Following Pre-pack Deal
NEWDAY FUNDING VFN-F1 V2: Fitch Hikes Rating on Cl. F Notes to B+sf

TULLOW OIL: S&P Affirms 'B-' LT ICR Following Downgrade of Ghana
VUE INTERNATIONAL: EUR634M Bank Debt Trades at 43% Discount

                           - - - - -


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A L B A N I A
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ALBANIA: S&P Affirms B+/B Sovereign Credit Ratings, Outlook Stable
------------------------------------------------------------------
On Dec. 9, 2022, S&P Global Ratings affirmed its 'B+/B' long- and
short-term foreign and local currency sovereign credit ratings on
Albania. The outlook is stable.

Outlook

The stable outlook reflects S&P's view that Albania can continue to
manage risks from the Russia-Ukraine conflict thanks to its strong
external buffers, despite the economic slowdown in
Europe--Albania's largest trading partner. Additionally, the
country's modest growth prospects and the government's fiscal
consolidation efforts should facilitate a reduction in debt over
our 2022-2025 forecast horizon.

Downside scenario

S&P could lower the ratings over the next year if the public debt
stock increases significantly beyond its expectations due to high
fiscal deficits or the materialization of contingent liabilities
from public-private partnerships (PPPs).

Upside scenario

S&P could consider raising the ratings over the next year if
external funding risks decrease materially or if a pronounced
reduction in fiscal deficits yields a fall in public debts levels.
S&P could also raise the ratings if the institutional framework is
strengthened, possibly through structural reforms implemented as a
part of the country's EU accession objective.

Rationale

S&P's ratings on Albania are limited by a moderately weak
institutional framework that, in its opinion, hampers long-term
policymaking. The ratings are also limited by high public debt and
large external financing needs. Over 50% of government debt is
denominated in foreign currency or has a short but lengthening
duration that requires continuous refinancing. Furthermore, the
economy's extensive euroization, high informality, and shallow
capital markets impair the Bank of Albania's (BoA's) monetary
policy transmission channel.

The ratings are supported by Albania's moderate growth prospects
and monetary flexibility through its free-floating currency and
relatively high reserves. These, in particular, continue to serve
as important buffers against potential external shocks.
Furthermore, S&P believes authorities will revert to a fiscally
conservative position, thereby lowering public debt over 2022-2025,
despite the external shocks Albania has faces in recent years.

Institutional and economic profile: Albania's robust GDP growth
will slow in 2023 before picking up again in 2024

-- Lower external demand from Europe and tightening monetary
policy will likely slow Albania's economic growth to about 2.2% in
2023 from an estimated 3.3% in 2022.

-- Albania has negligible direct trade with and financial links to
Russia and Ukraine.

-- EU accession talks are underway, but Albania's path to full
membership will be protracted.

Albania's real GDP growth has proven resilient in the first half of
2022. During that time, the economy expanded by 4.1% compared to
the same period last year, notably thanks to strong activity in the
services (mainly tourism related) and real estate sectors. S&P
expects real GDP growth to stand at 3.3% at end-2022. The pace will
slow in 2023 to roughly 2.2% due to tightening monetary policy; a
slowdown in the euro area, Albania's largest trading partner; and a
reduction in fiscal stimulus. Thereafter, economic growth should
bounce back to an average of 3.4% in 2024-2025.

Albania's negligible direct trade links with Russia and Ukraine
have limited the economic fallout of the conflict. Before the start
of the war, Albania imported approximately 4% of its refined fuel
from Russia. What's more, Albania sources almost all domestic
electricity production from hydropower. That said, in recent years,
costly drought-triggered electricity imports from international
spot markets have prompted Albanian authorities to diversify away
from hydropower.

Structural issues continue to burden Albania's economy. Pain points
include infrastructure gaps, a weak legal environment, corruption,
and labor market shortages. Nevertheless, Albania's EU membership
bid has anchored efforts to address some of these issues. For
example, the Trans-Adriatic Pipeline will gradually reduce
Albania's reliance on hydropower, and judiciary vetting, with
assistance from the EU, will improve the legal framework. In S&P's
view, successful reforms will improve the business environment,
help stem emigration, and attract new foreign investment inflows to
Albania, potentially allowing the country's economy to catch up
more quickly with that of stronger peers.

The Socialist Party of Albania (SPA) has continued to govern since
winning the general election in April 2021, when it secured a
majority in parliament. Policymaking decisions have remained stable
since then, with a focus on fostering economic development
considering the aim to join the EU. Earlier in the year, citizens
across Albania protested against the rapid increases in energy and
food prices due to the Russia-Ukraine conflict. The government
responded with two separate packages of social security measures
and price freezes to ease the cost of living. S&P sees this as
positive for political stability. Local elections are due to be
held in May 2023.

EU accession has remained a key policy priority for successive
government administrations since Albania became a candidate in June
2014. The EU had previously grouped Albania's accession bid with
neighboring North Macedonia. However, bilateral disputes between
North Macedonia and Bulgaria froze negotiations for numerous years
until a recent breakthrough resulted in the EU and Albania holding
their first inter-governmental conference in July 2022. Albania's
screening process is now underway. However, given the experience of
regional peers in the EU, S&P believes Albania's EU accession will
be protracted.

Flexibility and performance profile: External pressure will likely
remain elevated this year but start declining thereafter

-- S&P projects Albania's fiscal deficit will narrow to 3.7% of
GDP at end-2022, then improve further to 2.9% by end-2025.

-- However, the current account deficit will widen to 8.3% of GDP
in 2022, from 7.6% in 2021, before easing over 2023-2025, financed
by net foreign direct investments (FDI).

-- High euroization and the possibility of a sharp reversal in
real estate prices are potential risks to the banking sector.

S&P said, "Contrary to our previous estimates, we now expect the
fiscal deficit will narrow to 3.7% of GDP in 2022. Inflation has
boosted tax receipts, leading to strong revenue year on year, while
expenditures have remained flat. The windfall in revenue has
enabled the government to offset additional spending to help
certain parts of the population deal with the economic fallout of
the Russia-Ukraine conflict. For instance, two social resilience
packages included public wage increases and the indexation of
social assistance and pension payments, among other fiscal
measures.

"Our estimate budget deficit is higher than the Albanian
parliament's target. In the recently passed 2023 budget,
authorities signaled a budget deficit target of 2.6% of GDP, while
we estimate 3.2% due to our lower growth assumptions and higher
energy import bill (household electricity prices are subsidized by
the government). The government has indicated that the budget
deficit will be financed by a mixture of domestic and external
borrowing. Multilateral support will be forthcoming; the World
Bank, French Development Agency, and European Commission plan to
provide a total of EUR320 million of budget support. Moreover, if
market conditions are ideal, the Albanian government intends to
issue EUR500 million of Eurobonds and designate EUR250 million of
the funds raised to buy back a part of the Eurobonds due in 2025.

"Because of the multitude of external shocks Albania has faced in
recent years, we expect fiscal consolidation will be slightly
protracted, converging toward a deficit of roughly 3% of GDP by
2025. Importantly, this means that the authorities will comply with
their own fiscal rules as stipulated by the Organic Budget Law
(OBL) and its debt brake rule. These require the government to
achieve a primary balance from 2024 and a continuously declining
debt-to-GDP ratio if it is above 45%. Notably, the authorities
target a positive primary balance in 2023, one year ahead of
schedule. Nevertheless, we believe fiscal consolidation will hinge
on sustained robust economic growth and additional reforms to
public finances. The government expects to implement a medium-term
strategy to boost revenue collection. At about 27%, Albania's
fiscal revenue-to-GDP ratio is the lowest in the Western Balkans.
We attribute this to Albania's large informal economy as well as
tax loopholes and exemptions."

S&P projects Albania's net general government debt will narrow to
approximately 65% of GDP by end-2025, alongside a decrease in
general government debt to roughly 69% of GDP. Albania's debt stock
is somewhat higher than regional peers' and subject to refinancing
and foreign currency risks. Average debt maturity has increased but
remains relatively short. Moreover, about 53% of central government
debt is denominated in foreign currency and unhedged, exposing it
to exchange-rate volatility. The domestically issued debt is short
term, with maturity dates approximately over two years from
issuance. Additionally, and despite a pick-up in bank lending to
the private sector in recent years, Albania's banking sector still
holds the largest share of domestic government debt, which
constitutes about 26.2% of the sector's total assets.

Although the authorities continue to reduce contingent fiscal
risks, off-balance-sheet PPPs are still a vulnerability. Currently,
Albania has over 200 PPPs covering road infrastructure, power
generation, and health care. Furthermore, under the OBL, payouts to
PPPs are limited to 5% of tax revenue in the previous year. Despite
efforts to address Albania's infrastructure gap, the risk framework
governing these projects has yet to sufficiently develop,
particularly with cost transparency. Consequently, potential fiscal
risks from PPPs remain hard to predict and quantify.

Inflation in Albania is at its highest level since 1999, reaching
8.3% in October 2022 from 3.7% in December 2021. This remains lower
than for regional peers, however, due to the subsidization of
electricity prices in Albania. The acceleration in inflation is
mainly attributable to an increase in food and energy prices. The
BoA has responded by raising the policy rate by a cumulative 225
basis points this year. S&P expects inflation will remain elevated,
averaging 6.4% in 2022, before falling gradually toward the BOA's
target of 3% by 2024, on the back of monetary policy tightening and
weaker external prices pressures.

The BOA's monetary policy transmission mechanism remains impaired
by shallow capital markets and extensive euroization in the economy
(similar to regional peers). Roughly 57% of deposits are
denominated in foreign currencies; euros continued to be widely
accepted in transactions, even in the formal economy including the
real estate sector. Nevertheless, the BoA has enacted measures to
de-euroize the economy.

Despite tightening global financial conditions, the Russia-Ukraine
conflict, and a slowdown in global economic activity, the Albanian
lek (a free-floating currency) has appreciated against the euro.
The lek's stability has lessened pressure on public finances and
the domestic banking system.

Strong financial account inflows and the absence of foreign
exchange interventions have strengthened the foreign currency
reserves. S&P said, "We also note positively the BoA's efforts to
accumulate reserves. We expect usable reserves (that is, gross
reserves net of required reserves on commercial banks' foreign
currency liabilities) will cover roughly six months of current
account payments over the next few years."

S&P expects the current account deficit to widen to 8.3% of GDP in
2022, from 7.6% in 2021 primarily due to higher energy and raw
material imports. Still, these imports will be somewhat offset by a
pickup in remittances and services exports, in particular tourism
receipts. Twelve-month rolling foreign tourist arrivals reached a
record high of 7.2 million in September, surpassing the 6.4 million
peak registered in 2019. Over the next few years, the current
account deficit will continue to narrow as commodity prices
decrease, tourism revenues recover, and post-earthquake
reconstruction activities wind down. Net FDI inflows and external
borrowing will likely continue to finance the external deficit
until 2025.

Albania's banking sector is liquid, well-capitalized, and
profitable. The regulatory tier 1 capital as a percentage of
risk-weighted assets reached 18.0% in September, up from 16.9% in
December 2021. Nonperforming loans reached 5.1% of gross loans in
September, compared with a peak of almost 25.0% in 2014.
Nonetheless, house prices increased by 39.2% over the 12 months
ended in September 2022, suggesting that a sharp reversal in house
prices could jeopardize financial stability. In addition, the
banking sector remains highly euroized. That said, S&P continues to
see the overall risk of contingent liabilities as moderately low.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  Ratings List

  RATINGS AFFIRMED

  ALBANIA

   Sovereign Credit Rating            B+/Stable/B

   Transfer & Convertibility Assessment        BB

   Senior Unsecured                            B+




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B E L A R U S
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DEVELOPMENT BANK: S&P Cuts Foreign Currency ICRs to 'SD/SD'
-----------------------------------------------------------
S&P Global Ratings lowered its foreign currency long- and
short-term issuer credit ratings on the Development Bank of the
Republic of Belarus JSC (DBRB) to 'SD/SD' from 'CC/C'.

S&P said, "At the same time, we affirmed our 'CCC/C' local currency
long- and short-term issuer credit ratings on DBRB. The outlook on
local currency ratings remains negative.

"Our long-term foreign currency rating on DBRB is 'SD' (selective
default). We do not assign outlooks to 'SD' ratings.

"The negative outlook on the local currency ratings reflects the
possibility that we could view a default on DBRB's local currency
debt as a virtual certainty if financial or economic stress on the
bank further increases.

"We could lower the local currency ratings if the bank's default or
distressed exchange on local currency debt obligations appears
inevitable or following a similar action on the sovereign.

"We could raise our foreign currency ratings on DBRB if the
institution cures the nonpayment on the 2024 Eurobond and we do not
believe further nonpayments are virtually certain.

"Upside pressure on the local currency rating could arise if the
fallout from the geopolitical situation proves weaker than we
anticipate.

"We lowered the foreign currency ratings since DBRB was unable to
facilitate the $16.9 million coupon payment on its
U.S.-dollar-denominated 2024 Eurobond within the contractual grace
period of 14 business days. We understand that nonpayment has been
caused by the effective loss of DBRB's access to the U.K. financial
system, through which the payment had to be processed according to
the bond's terms, resulting from international sanctions on
Belarus' government and government-related entities." DBRB is
currently under several EU, U.S., and U.K. sanctions, some of which
limit the institution's access to the financial markets and
infrastructure in corresponding jurisdictions.

On the payment due date, Nov. 2, 2022, DBRB transferred the funds
to the designated paying agent. Since then, the latter has been
seeking approval from the U.K. regulator to process the payment.
S&P understands that regulatory checks are ongoing but note that
payment has not been concluded within the bond's grace period.

S&P said, "The local currency rating is unaffected by the default
on the foreign currency bond. This is because, in our view, DBRB
currently has the financial capacity and willingness to meet its
local and foreign currency obligations, and the nonpayment of the
foreign currency bond is solely due to the effects of the U.K.
sanction environment. We also understand from DBRB that the
institution has no local currency financial obligations with U.K.
counterparties or U.K. paying agents, and that there are no
cross-default or acceleration clauses between its foreign and local
currency financial obligations.

"Our ratings focus on an issuer's ability and willingness to meet
its financial debt obligations in full and on time, in accordance
with the terms of its obligations. If an issuer cannot make a
payment in accordance with the terms and on time because it is
subject to sanctions, we deem the nonpayment to be a default,
unless we think it will make the payment within our timeliness
standards. This applies when the issuer transfers funds to a paying
agent on time, but a government sanction or judicial order against
the issuer interferes, preventing the payment from being made to
the investor.

DBRB is one of the most important state-owned financial
institutions in Belarus, implementing a range of public policies
and projects on behalf of the government. S&P considers that the
institution has a critical role for and an integral link with the
government of Belarus.




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F R A N C E
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CHROME HOLDCO: S&P Affirms 'B' ICR, Outlook Stable
--------------------------------------------------
S&P Global Ratings affirmed its 'B' rating on Chrome Holdco,
France-based biological diagnostics operator Cerba Healthcare's
parent, and assigned a 'B' rating to the proposed new loan.

The stable outlook reflects S&P's view that Cerba's operating
performance will remain sound despite a challenging operating
environment and that the company will reduce its S&P Global
Ratings-adjusted debt to EBITDA toward 7x in 2024.

S&P said, "The affirmation reflects our assumption of seamless
integration of the recent acquisitions and focus on delivering
synergies. Since Cerba closed sizable acquisitions in 2021--notably
Lifebrain and Labexa--it has continued its external growth
strategy. It spent more than EUR1.1 billion in 2022 on Viroclinics,
Yourlab, and other bolt-on acquisitions. We forecast its S&P Global
Ratings-adjusted debt to EBITDA will peak at 7.8x in 2023 and will
progress toward 7x in 2024.

"The deleveraging is conditional on a substantial reduction in the
pace and size of acquisitions and on the delivery of significant
synergies, which we understand will be management's focus over the
next 18 months. Cerba has identified EUR95 million of synergies to
be achieved over 2023 and 2024. This should be generated through
procurement, central overheads, productivity gains, and cross-sales
initiatives in the research business unit following the acquisition
of Viroclinics. Despite the increased debt over the past 12 months,
we estimate that by year-end 2022, Cerba's S&P Global
Ratings-adjusted debt to EBITDA will be about 5.6x, supported by
another year of COVID-19 windfall revenues."

The laboratory industry in France is facing a challenging
environment. Pricing cuts will reduce organic growth prospects for
the industry, though the magnitude of the decline remains unknown
because negotiations are still ongoing. The government had
initially announced its intention to cut the reimbursement envelope
on core testing (excluding COVID-19) by EUR250 million per year
over four years. Industry players are urging a smaller cut to the
core envelope, instead they are suggesting they pay an
extraordinary amount on the COVID-19 revenue. The length of the cut
is also being negotiated. If the envelope is permanently cut by
EUR250 million, but is then stable, there will be organic growth,
driven by volumes, of around 2.0%-2.5% in France and stable
pricing.

France's statutory health system (SHI) has spent over EUR7 billion
on COVID-19 testing since the pandemic outbreak. The details of any
potential split between COVID-19 and non-COVID-19 remain unclear at
this stage.

In addition to pricing cuts, which will weigh on earnings,
COVID-19-related revenues--a substantial contributor to EBITDA in
the past three years--are dissipating. The substantial reduction
will be driven by both lower volumes and pricing. The last price
cut was implemented on June 23, 2023, to EUR37 (including the
sampling fee). Before that, it had been EUR45, including a EUR5
bonus for delivering the result within 24 hours. This compares with
EUR75 per PCR test at the beginning of the pandemic. Furthermore,
inflation will add some pressure, particularly on staff expenses,
while energy costs constitute a low portion of the operating
expenses.

S&P said, "We believe Cerba benefits from better organic growth
prospects than its peers, which are more focused on routine. French
social health care insurance remains Cerba's largest payor, with
about 60% of the revenue generated in France. Nevertheless, Cerba
has a recognized expertise in specialty testing, which has better
organic growth prospects. It is unclear whether these tests will
remain shielded from the price cuts. Nevertheless, we believe
demand for these tests should grow at a higher pace." Furthermore,
Cerba has diversified its earnings with its latest acquisitions.

Yourlab has reinforced its presence in clinical pathology, and
Cerba's research division has been recently reinforced by the
acquisition of Viroclinics, a virology and immunology research
contract organization (CRO). The latter benefits from double-digit
percent growth prospects. In 2022 through Sept. 30, Cerba's core
activities (excluding those related to COVID-19) grew by 2.5%, and
they increased by 5.3% in the third quarter.

S&P said, "The stable outlook reflects our expectation that Cerba
will maintain sound operating performance despite a challenging
environment. We forecast S&P Global Ratings-adjusted EBITDA of
least EUR600 million in 2023 and above this level in 2024, such
that financial leverage peaks at 7.8x in 2023 before declining
toward 7x by year-end 2024. Our base case reflects the assumption
that Cerba's management will focus on integrating past acquisitions
and delivering synergies while substantially reducing the pace and
size of new M&A."

S&P could take a negative rating action if:

-- Cerba failed to reduce its financial leverage in line with our
base case;

-- FOCF deteriorated materially; or

-- FFO cash interest coverage decreased to below 2x.

S&P could take a positive rating action if the group successfully
achieves synergies from the acquisitions that closed over the past
24 months and demonstrates willingness and capacity to reduce
leverage toward 5x on a sustainable basis.

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


FINANCIERE LABEYRIE: EUR455M Bank Debt Trades at 39% Discount
-------------------------------------------------------------
Participations in a syndicated loan under which Financiere Labeyrie
Fine Foods SASU is a borrower were trading in the secondary market
around 61.1 cents-on-the-dollar during the week ended Friday,
December 9, 2022, according to Bloomberg's Evaluated Pricing
service data.

The EUR455 million facility is a Term loan.  The loan is scheduled
to mature on July 30, 2026.  The amount is fully drawn and
outstanding.

Labeyrie Fine Foods provides seafood products. The Company prepares
shrimp, duck items, salmon, sushi, trout, and foie gras. Labeyrie
Fine Foods serves customers worldwide. The Company's country of
domicile is France.

FINANCIERE LABEYRIE: S&P Lowers LT ICR to 'CCC+', Outlook Stable
----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
French food producer Financiere Labeyrie Fine Foods (Labeyrie) to
'CCC+' from 'B-'. S&P also lowered its issue rating on the EUR455
million term loan B (TLB) to 'CCC+' from 'B-', with the '3'
recovery rating unchanged.

The stable outlook reflects S&P's view that the company will
stabilize its financial position, and even slightly deleverage over
the next 12 months and be able to self-fund its day-to-day
operations.

S&P said, "We forecast Labeyrie's credit metrics to remain very
weak in 2023 due mostly to challenging market conditions impacting
its operating performance. Under our new base-case projections for
fiscal 2023, the company's S&P Global Ratings-adjusted debt to
EBITDA will likely stay very elevated at 11.5x-12.0x (including the
payment-in-kind [PIK] loan that we treat as debt under our
criteria) versus 12.2x in 2022. Funds from operations (FFO) cash
interest will also likely remain weak at around 1.8x-2.0x (2.2x
last year) because of higher interest costs on the TLB, which is
not fully hedged.

"Our base case for fiscal 2023 assumes S&P Global Ratings-adjusted
EBITDA will slightly improve to EUR60 million-EUR65 million
compared to about EUR57 million last year, and be 30% down from its
profitability level of two years ago of about EUR90 million. This
is also well below our previous assumption of EUR80 million for
2023. We anticipate revenue growth of about 10%-11% in 2023, mostly
stemming from price increases. We assume a slight rebound in
volumes, compared to last year which were hit by strikes and labor
shortages. We factor in some resilience in volumes given Labeyrie's
wide range of private label products and the low unit prices of
some of its products (appetizers for example). That said, we
believe that many of its offering are somewhat discretionary with
some having a higher unit price (salmon or foie gras for example)
that exposes them to the risk of downtrading and so being
substituted by cheaper alternatives by consumers.

"Profitability headwinds will likely persist, caused by more
expensive raw materials as well as packaging, labor, distribution,
and energy costs. We believe Labeyrie's well-known brands and
leadership in many of its product segments, should enable the
company to keep passing on price increases, although we expect to
still see some time lags, especially in France (where the company
generates 60% of its sales), which will continue to weigh
negatively on profitability. We also believe that companies like
Labeyrie face a balancing act in 2023--between making adequate
further price increases and protecting volumes as consumers'
disposable incomes decrease. That said, we also account for the
company's good control of fixed costs to partially offset gross
margin pressure.

"FOCF generation will likely be negative in 2023 driven by low
EBITDA, higher interest costs, and working capital outflows. We now
forecast negative FOCF generation of EUR35 million-EUR45 million
for fiscal 2023 versus our previous expectation of neutral to
slightly positive FOCF. This is driven by the assumption of higher
working capital outflows of about EUR40 million-EUR45 million as
stocks of duck-based products are replenished following severe
avian flu outbreaks, and also reflecting inflationary effects on
inventory. Working capital movements should stabilize in 2024
supporting a return to neutral FOCF in that year. We believe
Labeyrie will maintain control of its working capital inflation by
using its sizable factoring program, and will limit discretionary
capital expenditure (capex) by delaying non-essential projects
until 2024. We therefore see total capex in 2023 as broadly in line
with 2022 at around EUR25 million-EUR30 million. Further impacting
cash flows are higher interest costs as only 50% of the TLB and
none of the revolving credit facility (RCF) are hedged against
rising interest-rate risk.

"Nevertheless, Labeyrie should be able fund its day-to-day
operations with no near-term refinancing risks. We think the
liquidity position has weakened somewhat mostly due to the negative
FOCF and lower EBITDA expected for fiscal 2023. We believe this
reduces the group's financial flexibility as it will not be able to
fully use its RCF for its working capital needs if it risks a
financial covenant breach. We do not expect the RCF covenant to be
tested as the group usually uses factoring lines for its large
working capital needs rather than RCF drawings. That said, we think
the currently constrained volume growth prospects should limit
potential further increases in working capital needs. Labeyrie's
very high debt leverage also limits its access to debt capital
markets, but we note that it does not face any near-term
refinancing risks as the senior debt instruments (the RCF and TLB)
mature in 2026.

"The stable outlook reflects our view that Labeyrie will stabilize
its financial position and its credit metrics should very slightly
improve over the next 12 months from their fiscal 2022 lows. We
also assume the group will be able to adequately fund its
day-to-day operations. Under our base case, we project S&P Global
Ratings-adjusted debt leverage will slightly decrease from 12.2x in
fiscal 2022 to 11.5x-12.0x in fiscal 2023 but with negative FOCF
generation to about minus EUR35 million-EUR45 million.

"We could lower the ratings over the next 12 months if Labeyrie's
credit metrics continue to weaken versus 2022 and therefore deviate
from our current base case. This could happen if its liquidity
position is undermined by a financial covenant breach, for example
because of higher-than-anticipated working capital outflows that
would significantly increase its RCF drawings.

"We would likely view any debt buyback or exchange offer as a
distressed transaction if executed well below the nominal value of
the loans, given the elevated leverage and negative FOCF.

"We could raise the ratings if we see a strong and sustained
rebound in cash flow generation over the next 12 months such that
S&P Global Ratings-adjusted debt leverage decreases toward 8.0x and
FFO cash interest is above 2.0x. This would also help strengthen
its liquidity position and increase its financial covenant
headroom, enhancing its financial flexibility."

This could happen if we see Labeyrie benefiting from stronger
consumption trends in France and the U.K. related to festive
products and other growing categories (appetizers for example), and
if the company is able to fully offset cost inflation by adequately
increasing prices and improving its operating efficiency across its
production footprint.

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

ESG credit factors are an overall neutral consideration in S&P's
credit rating analysis of Labeyrie. The group is exposed to
volatile agriculture commodity prices but has a track record in
managing environmental risks like avian flu. The company is owned
equally by PAI Partners and agriculture cooperative Lur Berri
(owned by local French farmers and a key supplier) and we consider
it to have a balanced board composition.




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

COLOUROZ INVESTMENT: EUR609M Bank Debt Trades at 29% Discount
-------------------------------------------------------------
Participations in a syndicated loan under which ColourOZ Investment
1 GmbH is a borrower were trading in the secondary market around
71.0 cents-on-the-dollar during the week ended Friday, December 9,
2022, according to Bloomberg's Evaluated Pricing service data.

The EUR609 million facility is a Term loan.  The loan is scheduled
to mature on September 7, 2023.  The amount is fully drawn and
outstanding.

ColourOz Investment 1 GmbH manufactures paint products.  The
Company's country of domicile is Germany.


UNIPER: EU Commission Has Until Dec. 16 to Decide on Bailout
------------------------------------------------------------
Maria Sheahan, Christoph Steitz and Foo Yun Chee at Reuters report
that the European Commission has demanded that German gas importer
Uniper divest its Dutch business to obtain regulatory approval for
a rescue deal, German daily Handelsblatt reported, citing several
people familiar with the matter.

According to Reuters, the European Commission has set itself a Dec.
16 deadline to decide on whether to approve Germany's bailout of
Uniper, the country's biggest gas trader which nearly collapsed
after Russia stopped the supply of the fuel, under merger control
rules.

Uniper's activities in the Netherlands mainly consist of its
Maasvlakte MPP 3 hard coal-fired power plant with a capacity of
1.07 gigawatt (GW).  It also has several smaller gas-fired plants
there with a combined capacity of 534 megawatts (MW).

Uniper's shareholders are scheduled to vote on the bailout,
Germany's biggest ever, at an extraordinary shareholder meeting on
Dec. 19, Reuters discloses.

The European Commission declined to comment the ongoing review of
the Uniper bailout under merger control rules, Reuters notes.  The
Commission also needs to approve the deal under state aid
regulations, Reuters states.




===================
L U X E M B O U R G
===================

COVIS FINCO: EUR310M Bank Debt Trades at 49% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Covis Finco Sarl is
a borrower were trading in the secondary market around 50.6
cents-on-the-dollar during the week ended Friday, December 9, 2022,
according to Bloomberg's Evaluated Pricing service data.

The EUR310 million facility is a Term loan.  The loan is scheduled
to mature on February 14, 2027.  The amount is fully drawn and
outstanding.

Covis Finco SARL is an entity affiliated with Covis Pharma, which
is backed by Apollo Global Management.  Covis Pharma distributes
pharmaceutical products for patients with life-threatening
conditions and chronic illnesses.  Finco is the borrower under a
term loan facility used to refinance existing debt and refinance
the debt incurred to finance products acquired from AstraZeneca.
Finco has its registered office in Luxembourg.


MALLINCKRODT INTERNATIONAL: $1.4B Debt Trades at 23% Discount
-------------------------------------------------------------
Participations in a syndicated loan under which Mallinckrodt
International Finance SA is a borrower were trading in the
secondary market around 76.8 cents-on-the-dollar during the week
ended Friday, December 9, 2022, according to Bloomberg's Evaluated
Pricing service data.

The US$1.39 billion facility is a Term loan.  The loan is scheduled
to mature on September 30, 2027.  About US$1.38 billion of the loan
is withdrawn and outstanding.

Mallinckrodt International Finance SA manufactures and distributes
pharmaceutical products.
The Company's country of domicile is Luxembourg.




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

[*] NETHERLANDS: Bankruptcies Still Below Pre-Covid Levels
----------------------------------------------------------
NL Times reports that the number of bankruptcies has risen for the
third month in a row.

According to Statistics Netherlands (CBS), 224 companies and
institutions, including one-person businesses, went bankrupt in
November, NL Times discloses.  That is seven more than in October,
NL Times states.

According to CBS, this was the highest number of bankruptcies in
over two years, though it is still lower than before the
coronavirus pandemic, NL Times relates.  The number of bankruptcies
is so low partly due to the Cabinet's coronavirus support, which
kept even fundamentally unhealthy companies afloat, NL Times says.
The generic support ended in the course of 2021, NL Times notes.

Retail trade was again the sector with the most bankruptcies, with
57 in November, according to NL Times.  That is not surprising
because trade is one of the largest industries in the Netherlands.
The industry was the sector with the highest percentage of
bankruptcies, NL Times discloses.




===========
S E R B I A
===========

SERBIA: S&P Affirms BB+/B Sovereign Credit Ratings, Outlook Stable
------------------------------------------------------------------
On Dec. 9, 2022, S&P Global Ratings affirmed its 'BB+/B' long- and
short-term sovereign credit ratings on Serbia. The outlook is
stable.

Outlook

The stable outlook balances the rising macroeconomic risks from the
Russia-Ukraine conflict and economic slowdown for the country's key
trading partners, against Serbia's sound medium-term growth
prospects and broadly conservative fiscal management, which is
supported by its credible policy framework.

Downside scenario

S&P could consider lowering its ratings if the Russia-Ukraine
conflict and extended economic slowdown for key trading partners
had a significant and more protracted effect on Serbia than S&P
currently expects, resulting in pronounced repercussions for the
medium-term growth outlook. This scenario would also disrupt the
government's medium-term fiscal consolidation plans and result in
higher public debt. Other downside triggers include a marked
deterioration Serbia's foreign exchange (FX) reserve position,
potentially from protracted balance-of-payments weakness.

Upside scenario

S&P could raise its ratings on Serbia if it determines that the
macroeconomic effects from the war in Ukraine and economic slowdown
for Serbia's key trading partners are contained. Likely signals
include an improvement in Serbia's growth prospects, external
balances, and public finances. An upgrade would also depend on
subsiding geopolitical uncertainty.

Rationale

S&P said, "Earlier in the year, we revised our outlook on Serbia to
stable from positive, due to the adverse spillovers and uncertainty
brought about by the Russia-Ukraine conflict, including wider
macroeconomic repercussions for the eurozone, Serbia's key trading
partner. As a result, we lowered our growth forecasts for the
country and widened both the fiscal and external deficits in 2022.
Given the protracted nature of the war, we have now also revised
down our growth projections for 2023, with real GDP expected to
expand by just 2.1%, compared to 2.5% in 2022 and an average of
about 3.5% in 2017-2021. In light of persistent increases in global
energy and food prices, we have also revised our estimate of
inflation up to 12% in 2022 and 11% in 2023.

"Nevertheless, the conflict's effect on the Serbian economy and
associated economic slowdown in Europe appears to be contained for
now. Serbia's medium-term growth prospects remain resilient,
supported by its growth model that is driven by exports and foreign
direct investment (FDI). Additionally, the authorities have taken
proactive policy measures this year to contain external and budget
financing risks emanating from elevated energy prices, by reaching
a two-year EUR2.4 billion ($2.39 billion) Stand-By Arrangement
(SBA) with the IMF and securing concessional bilateral funding. The
IMF program will also help contain fiscal slippages and provide
extra buffers if needed.

"Our ratings also factor in Serbia's moderate public debt levels
and a credible monetary policy framework. Nonetheless, they are
constrained by the country's relatively weak institutional
framework, comparatively low economic wealth levels per capita, a
sizable net external liability position, and high euroization in
the economy."

Institutional and economic profile: GDP growth is set to decelerate
further in 2023, given the conflict in Ukraine and lower external
demand

-- Real GDP growth in the first half of 2022 was strong, but
economic activity has slowed in the third quarter; S&P estimates
full-year growth will drop to 2.5% from 7.4% in 2021.

-- Growth will further decelerate to 2.1% in 2023, due to lower
external demand, lower consumption, and tighter monetary
conditions, but recover to average slightly above 3.0% in
2024-2025.

-- The EUR2.4 billion IMF SBA program will help address fiscal and
external financing needs while providing an anchor for policy
prudence and reforms.

In the first two quarters of 2022, real GDP growth was robust,
increasing roughly 4% year on year. Since then, weaker investment
growth and a reduction in disposable income due to high inflation
has slowed growth to 1.1% in the third quarter of this year,
compared with the same period last year. S&P expects economic
activity will remain weak for the remainder of the year, as a
result, it estimates full-year real GDP growth of 2.5% in 2022.

In 2023, growth will soften to approximately 2.1%, due to a broad
range of factors including lower external demand from Serbia's key
trading partners, reduced consumption, and tighter monetary
conditions. Roughly 64% of Serbia's exports went to the EU in 2021.
And given S&P's expectations of zero annual growth in the eurozone
for 2023, lower exports to the region will be a drag on growth for
Serbia. Nevertheless, we maintain our growth forecast of about 3%
over 2024-2025. Notably, gross fixed capital formation reached
22.5% of GDP in 2021, with the bulk of capital entering the
tradable sectors, including manufacturing and parts of the services
sector.

Before the conflict in Eastern Europe, Serbia's trade exposure to
Russia and Ukraine was limited largely to the energy sector, and
this has helped mitigate direct negative spillovers. Although about
one-third of Serbia's energy imports and about 90% of gross natural
gas imports originate from Russia, the risk of flow disruptions is
remote, in our view. This is because, despite high gas dependence,
Serbia agreed to a new three-year contract with Russia's Gazprom in
May 2022, which includes a gas price considerably below recent spot
prices. Serbia imports gas via the Balkan Stream pipeline that
passes through Bulgaria and continues to deliver to Serbia, despite
Russia's decision earlier in the year to suspend gas deliveries to
Bulgaria. In addition, Serbian gas storage levels are full for the
winter. Serbia's oil related imports are also relatively
diversified. Before the conflict started, 70%-80% of the country's
oil import needs were covered by countries other than Russia
(namely Iraq and Kazakhstan) via the JANAF pipeline (Serbia's only
crude oil pipeline) from Croatia. Given the EU's ban on Russian oil
shipments from Dec. 5, 2022, Serbian authorities will be sourcing
oil from other destinations, including the Middle East.

Parliamentary elections were last held in April 2022, with the
Serbian Progressive Party (SNS) led by Mr. Aleksandar Vucic being
reelected. However, the SNS secured 120 seats, falling short of the
126 seats needed for a majority. As a result, the SNS entered into
a coalition with the Socialist Party to form a majority in
government and a new cabinet was formed in October 2022.

S&P expects a high degree of policy continuity, with the new
government likely to advance reforms anchored by the SBA program
agreed with the IMF this year. The new EUR2.4 billion SBA program
replaces the country's existing non-financing policy coordination
instrument with the IMF. The SBA program aims to help Serbia
address forthcoming external and fiscal financing needs in light of
challenging global economic conditions. Furthermore, as a part of
the SBA, structural reforms will have to be implemented,
particularly in the energy sector where large state-owned
enterprises (SOEs) operate.

Nevertheless, the ongoing centralization of the institutional
framework could undermine long-term policymaking predictability.
This may lead to weakening investor confidence. S&P also believes
subsequent administrations will remain focused on creating adequate
jobs across skill levels to halt the high levels of emigration of
Serbia's most educated people.

Serbia's EU aspirations could slow ongoing centralization of
institutions, but the accession process will likely be lengthy and
complex. Serbia was granted EU candidate status in 2012, and since
has opened 22 out of 35 chapters of the Acquis Communautaire
(accumulated legislation, legal acts, and court decisions, which
constitute the body of EU law), with two already provisionally
closed. Meeting the conditions of some chapters will require
difficult political decisions. On top of the typical areas of
concern for EU candidates--such as weaknesses with respect to the
rule of law--Serbia will face unique issues regarding its relations
with Kosovo and foreign policy decisions and trade agreements with
non-EU members, including with Russia, which could trigger a public
referendum and increased political volatility.

Flexibility and performance profile: Fiscal and external pressures
will persist through to 2023

-- The fiscal deficit will remain elevated at 3%-4% of GDP in 2022
and 2023, primarily due to transfers to SOEs, but public finances
will generally remain on a path of fiscal consolidation.

-- Due to elevated commodity prices, Serbia will register its
largest current account deficits since 2013, but most of these
deficits will be financed by net FDI inflows.

-- FX reserves have reached historical highs, with the National
Bank of Serbia (NBS) acting as a net purchaser of FX so far this
year.

Despite a windfall in tax revenue driven by higher inflation,
costly transfers to SOEs operating in the energy sector (about 2%
of GDP), one-off social transfers, the indexation of pensions, and
higher capital expenditure costs are set to keep Serbia's fiscal
deficit elevated at 3.9% of GDP in 2022, as per S&P's estimate. The
authorities recently revised up their 2022 budget deficit target to
3.8% of GDP from 3.0% earlier in the year.

Parliament recently passed the budget for 2023 and targets a fiscal
deficit of 3.3% of GDP (in line with S&P's estimates). On the
expenditure side, notable expenditures include transfers to SOEs
operating in energy worth about 1.2% of GDP, a hike in public
sector wages, and an extension on the reduction of excise taxes on
petroleum products. On the revenue side, S&P estimates roughly 0.3%
of GDP (EUR160 million) worth of energy-related budget support in
the form of a grant will be forthcoming from the EU. In addition,
the authorities have increased the threshold for non-taxable income
from Serbian dinar (RSD)19,300 (EUR165) to RSD21,712 (EUR185),
which will reduce tax revenue.

The new budget has been designed to ensure to compliance with the
IMF's SBA program requirements and will be financed via a mixture
of domestic and foreign borrowing. Given rising interest rates
globally, Serbia's 2023 gross financing requirements for the budget
deficit will be met via primarily concessional borrowings, but will
also come from market issuance, and include:

-- A $1.0 billion bilateral loan from the United Arab Emirates;

-- The EUR2.4 billion SBA program agreed with the IMF, however the
authorities plan to use half of the available funds (EUR1.2
billion) and treat the remainder as precautionary;

-- International financial institution (IFI) loans worth a total
of GBP860 million, including loans from the World Bank, KfW, and
French Development agency;

-- Private placements or Eurobond issuance; and

-- Domestic bond issuance.

Despite higher borrowing requirements, government funding risks
appear to be contained, thanks to proactive efforts from the
authorities, strong cash buffers (about 4% of GDP), and Serbia's
strong relationships with IFIs. In addition, if needed, the
authorities possess flexibility around capital expenditure to help
contain costs. Beyond 2023, the government will likely continue a
path of fiscal consolidation to ensure compliance with the new
legally binding fiscal rule from 2025 and target a budget deficit
of roughly 1%–2% of GDP.

Considering the projected fiscal outlook, public debt net of liquid
government assets will remain stable over the next years, at
46%-47% of GDP. Gross debt will decrease to roughly 51% of GDP by
2025 from about 52.8% of GDP in 2022. Compared with that of
regional peers, Serbia's debt levels are moderate, but over 70% of
government debt is FX-denominated, making it vulnerable to exchange
rate volatility.

As a consequence of adverse terms of trade and weaker demand for
Serbia's exports (primarily from the EU), S&P estimates the current
account deficit will expand to about 8%-9% of GDP in 2022 and 2023,
the highest external deficit since 2012. In line with historical
trends, the deficits will continue to be largely financed by net
FDI inflows. Over the past years, net FDI inflows have strengthened
and diversified Serbia's export base, while also helping to foster
external deleveraging and build up the NBS' FX reserve position.

Headline inflation has been accelerating in Serbia, reaching 15% in
October, from 8% in January 2022. The acceleration in inflation is
chiefly owed to higher food and energy prices. And to help contain
second-round effects, the NBS has raised the policy rate by a
cumulative 350 basis points so far in 2022. Simultaneously, the
government has kept some price caps on selected basic foods and
fuel to contain price growth. Price pressures will remain elevated
in the near term, and S&P expects inflation to average 11.9% in
2022. Nevertheless, anchored medium-term inflation expectations
thanks to the NBS' improved credibility, as well as subsiding
global food and energy price pressures, will help headline and core
inflation converge back to the NBS' target tolerance band of 3.0%
plus or minus 1.5% in 2024.

In line with its mandate to maintain price and financial stability,
the NBS has continued to intervene in the FX market to maintain
relative stability of the exchange rate. Depreciation pressure
emerged earlier in the year due to FX demand from energy importers
and households amid geopolitical uncertainty. But strong net FDI
inflows and residents' conversion back to the dinar among other
capital inflows enabled the NBS to become a net purchaser of FX so
far this year. FX reserves increased to EUR16.9 billion in October,
up from EUR16.1 billion in January. S&P projects Serbia's FX
reserves will remain adequate at roughly four months of current
account payments in the medium term, as market volatility subsides
and global commodity prices normalize.

Earlier this year, the NBS swiftly resolved issues around the local
subsidiary of Russia's SberBank, which fell under international
sanctions, and helped to preserve financial stability. In general,
Serbia's banking sector is well-capitalized, profitable, and
liquid. The system's reported capital adequacy ratio stood at a
solid 19.5% in September 2022, whereas nonperforming loans hit a
historical low of 3.2% of gross loans compared with a peak of 22%
in 2015. However, the sector remains highly euroized, with
euro-denominated deposits and loans accounting for slightly over
60% of total stocks.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

  Ratings List

  RATINGS AFFIRMED

  SERBIA

   Sovereign Credit Rating           BB+/Stable/B

   Transfer & Convertibility Assessment      BBB-

   Senior Unsecured                           BB+




=========
S P A I N
=========

PAX MIDCO: S&P Upgrades ICR to 'B-' on Operations Recovery
----------------------------------------------------------
S&P Global Ratings raised to 'B-' from 'CCC+' its issuer credit
rating on Spanish travel retailer PAX Midco Spain (Areas) and its
issue rating on its first-lien debt.

The stable outlook reflects S&P's expectation that positive
prospects in terms of traffic recovery coupled with continued tight
cost management will enable the company to tackle inflationary
pressures, leading to comfortable operating performance and a
reduction in S&P Global Ratings' adjusted debt to EBITDA (leverage)
sustainably below 6.0x in the next 24 months.

Areas' strong operating performance in fiscal 2022, on the back of
quicker-than-expected recovery in air traffic and tight cost
management, points to improving credit quality and underpins the
upgrade. Areas posted EUR1.7 billion of sales for fiscal 2022,
representing about 90% of pre-pandemic sales generation of EUR1.9
billion. This quicker-than-expected recovery was led by an almost
full recovery of the group's motorways and railways segments (more
than 95% of fiscal 2019 sales) and a faster-than-expected recovery
of air traffic, with the airport segment reaching about 80% of
pre-pandemic sales performance. The main reason for this
performance was a strong summer season (July, August, and
September), above fiscal 2019 by 1%. Additionally, the group's
leisure segment generated EUR133 million of sales, outperforming
the pre-pandemic level of EUR111 million. On the back of increased
volumes and recurring cost savings initiated during the
pandemic--notably from the rationalization of staff and some
variabilization of minimum annual guarantees (MAG) on
concessions--the group managed to significantly improve
profitability. Company reported EUR475 million of
post-International Financial Reporting Standard (IFRS) 16 EBITDA,
artificially inflated by the EUR133 million of AENA MAG relief
concerning fiscals 2020 and 2021. Adjusting for these non-recurring
items, S&P Global Ratings' adjusted EBITDA reached about EUR331
million, leading to a 19.5% margin, which is still below
pre-pandemic levels of 22%-23%. Thanks to this improved operating
performance, coupled with tight capital expenditure (capex)
management and positive working capital inflow due to business
expansion, for the first time since before the pandemic the group
exhibited positive FOCF after leases of between EUR25 million-EUR30
million for the full year; this is much sooner than what S&P
initially expected.

S&P said, "While a less favorable economic context could weigh on
fiscal 2023 earnings, we see Areas as well positioned to manage
these pressures. The industry faces mounting macroeconomic
challenges in 2023: (i) geopolitical risks and security are high
and could escalate; (ii) potential new COVID-19 variants could
discourage travel, as is the case for China in the fourth quarter
of this calendar year 2022; and (iii) wage and jet fuel costs
inflation, representing the biggest share of airlines cost
structure, is high and could lead to additional ticket price
increases. We believe that European air traffic for 2022 will be
75%-80% of 2019 levels. We think traffic will remain around, or
only slightly above, this range in 2023 before returning closer to
pre-pandemic levels in 2024. That being said, Areas is well placed
to fend off these pressures: (i) it is well diversified and
generates slightly more than 45% of revenue from the railway and
motorway segments for which we expect a quicker recovery; (ii) it
is predominantly exposed to France, Italy, and Spain, which may
still see high touristic flows, in particular from America, as the
dollar is quite strong in contrast to the euro; and (iii) we
believe Areas has a high degree of inflation pass-through. As
airports audiences tend to have a higher purchasing power than the
rest of the population, we expect Areas will be able to pass on
most of the cost increase to customers, in particular as customers
in airports tend to be more captive and there are offered few
alternatives.

"The pandemic has demonstrated that Areas' business model has more
flexibility than we initially thought. While travel retail was
characterized by a relatively high fixed cost base with MAG
payments, COVID-19 has somewhat changed this industry feature. For
some airports in particular, earnings emanating from retailers are
substantial and thereby justify some degree of flexibility to
ensure a key revenue stream. For that reason, Areas has benefitted
from MAG relief on concession from landlords, notably with AENA
following the court ruling in Spain, variabilizing concession fees
as long as traffic is not back to the 2019 level.

"We see rising regulatory risk affecting the industry and a
structural drop in business travel, but don't consider this will
put Areas' capital structure at risk over our forecast horizon.As
the aviation industry is a material greenhouse gas (GHG) emitter,
it is increasingly subject to regulatory pressures. The Dutch
government, as part of its effort to curb its GHG emissions, has
curbed the amount of yearly flights allowed in Schiphol airport, an
Amsterdam-based airport and the third biggest in Europe; while the
French government has prohibited short-distance flights when there
is an existing alternative through rail that takes less than 2.5
hours. We see such risks, in particular in Europe, as likely to
intensify in the next few years. In our view, however, that is
likely to be compensated by rising demand for air transportation in
some emerging markets, but Areas' presence in these markets is more
limited. We equally see a lasting pressure on business travel and
don't expect it will sustainably recover to pre-pandemic levels.
While there has been a pick-up in 2021, we expect that the segment
will remain below pre-COVID levels, as efficient, more climate
friendly solutions have also gained momentum. In our view, the
business segment is overall profit accretive; therefore, our
expectations of lower revenue from that stream are likely to weigh
on margins over the longer term. However, neither of these risks,
in our view, are likely to materially weigh on Aeras' earnings in
the next five-to-six years. This is because the group is also
exposed to the rail and motorway segments, and it has demonstrated
some degree of flexibility in managing its cost base so as to
generate positive free cash flow generation much sooner than we
envisioned. In our view, this should facilitate the refinancing of
its material 2026 maturities."

Although Areas built up a significant liquidity cushion and is on a
deleveraging trend, its capital structure remains highly leveraged.
In summer 2022, Areas raised EUR51 million of additional
state-backed loans in France coupled with EUR20 million of equity
injection from its sponsor PAI. Coupled with the positive FOCF in
fiscal 2022 and an already sizeable cash position, the group
exhibited EUR323 million of cash on hands in addition to its EUR125
million fully undrawn RCF and EUR33 million of authorized bank
overdraft. The group does not have sizeable maturities coming in
the next 12 months. It has in total about EUR27 million of
state-backed loan amortization coming due in fiscal 2023 and about
EUR31 million in fiscal 2024. S&P said, "We assess liquidity as
comfortable and believe that a liquidity crunch is highly unlikely
over the next three years. Nevertheless, in light of the depressed
macroeconomic context and our revised assumptions for the sector
following the aftermath of the pandemic, we expect our S&P Global
Ratings' adjust debt to EBITDA will remain elevated for fiscal 2023
at 6.1x-6.5x, only leaning toward 5.2x-5.6x in fiscal 2024. The
group's unadjusted financial leverage, pre-IFRS 16 leverage,
remained equally extremely elevated above 10x in fiscal 2022. Our
free cash flow assumptions are equally structurally lower on the
back of increased capex due to postponements during the pandemic
continuing concession expansions and increased interest payment due
to the floating nature of its sizeable EUR1,050 million notes. We
expect FOCF after full concession payments to be marginally
negative in fiscal 2023 in the range of negative EUR30 million to
negative EUR20 million and slightly positive in fiscal 2024 at EUR5
million-EUR25 million. That said, we note that in case of
underperformance, the group has the ability to postpone about 30%
of its total capex for fiscal 2023 as it is still not committed
resulting in a potential EUR25 million-EUR28 million safety net."

The stable outlook reflects S&P's positive prospects in terms of
traffic recovery coupled with continued tight cost management,
enabling the company to tackle inflationary pressures, leading to
comfortable operating performance and allowing for a reduction in
S&P Global Ratings' adjusted leverage sustainably below 6.0x in the
next 24 months.

S&P could lower the rating over the next 12 months:

-- Debt to EBITDA were to rise above 7x;

-- FOCF after concession payments remained negative in 2024; or

-- Liquidity deteriorated significantly.

This scenario could occur if there was a sizable drop traffic due
to the challenging macroeconomic conditions limiting households'
ability to travel.

Although remote, S&P could raise the rating over the next 12 months
if:

-- FOCF after concession payments remain consistently and
materially positive in fiscals 2023 and 2024; and

-- Debt to EBITDA remains below 5.0x.

A positive rating action would also be contingent on a supportive
financial policy that upholds stronger credit metrics.

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

S&P said, "Social factors are a moderately negative consideration
in our credit rating analysis of Areas, reflecting the pandemic's
unprecedented effect on the company's operating performance in 2020
and 2021. Once restrictions and COVID-19-related safety concerns
lessened, air, rail and motorway traffic started to recover.
Considering the recovery of air, rail, and motorway traffics,
coupled with active yield management, we expect the group to return
to pre-pandemic topline level in fiscal 2024 and slightly delayed
by one year on the profitability front. The COVID-19 pandemic was
an extreme disruption, and although it is unlikely to recur at the
same magnitude, safety and health scares are an ongoing risk factor
in our analysis of Areas.

"Governance factors are a moderately negative consideration, as is
the case for most rated entities owned by private-equity sponsors.
We view financial sponsor-owned companies with aggressive or highly
leveraged financial risk profiles as demonstrating corporate
decision-making that prioritizes the interests of the controlling
owners, typically with finite holding periods and a focus on
maximizing shareholder returns."




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

INTRUM AB: Fitch Assigns 'BB(EXP)' Rating to Senior Unsecured Bonds
-------------------------------------------------------------------
Fitch Ratings has assigned Intrum AB (publ)'s planned senior
unsecured bonds an expected rating of 'BB(EXP)'. The assignment of
a final rating is contingent on the receipt of final documents
conforming to information already provided to Fitch.

Intrum intends to issue EUR400 million in senior unsecured bonds
due in 2028. Proceeds will primarily be used to refinance
outstanding senior unsecured bonds maturing in 2024.

As the proceeds of the planned issuance will principally be used to
refinance outstanding debt, Fitch expects the transaction to have a
broadly neutral impact on Intrum's leverage ratios while further
extending the average maturity of Intrum's outstanding debt.

KEY RATING DRIVERS

The rating of the expected senior unsecured bonds is equalised with
Intrum's 'BB' Long-Term Issuer Default Rating (IDR), as the bonds
will represent unconditional and unsecured obligations of the
issuer. It also reflects Fitch's expectation of average recovery
prospects, given that Intrum's funding is largely unsecured.

The key rating drivers for Intrum are those outlined in its Rating
Action Commentary published on 2 December 2022 (Fitch Revises
Intrum's Outlook to Negative; Affirms at 'BB').

The Negative Outlook principally reflects Fitch's view that
Intrum's leverage (defined by management as net debt/cash EBITDA)
will remain above the stated medium-term target range of 2.5x to
3.5x for longer than previously anticipated.

Intrum's Long-Term IDR reflects its high leverage, a characteristic
of the debt-purchasing sector and also a function of past
acquisition activity. It also reflects Intrum's market-leading
franchise in the European debt-purchasing and credit-management
sector, where the group benefits both from diversification across
25 countries and its high proportion of fee-based servicing
revenue, which complements its more balance sheet-intensive
investment activities.

Fitch assigns Intrum an ESG Relevance Score of '4' for Financial
Transparency, in view of the significance of internal modelling to
portfolio valuations and associated metrics such as estimated
remaining collections. However, this is a feature of the
debt-purchasing sector as a whole, and not specific to Intrum.

RATING SENSITIVITIES

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

Senior Unsecured Bonds:

Intrum's senior unsecured debt rating is primarily sensitive to
changes to the Long-Term IDR.

Changes to its assessment of recovery prospects for senior
unsecured debt in a default (e.g. a material increase in debt
ranking ahead of the senior unsecured debt) could result in the
senior unsecured debt rating being notched down from the Long-Term
IDR.

Long-Term IDR:

- Inability to make material progress towards management's stated
leverage target (net debt/cash EBITDA of 3.5x or below) in 1H23
making it unlikely that the target will be comfortably met in
2023.

- Material downward portfolio revaluations or significant
collection underperformance outside the main Italian JV, indicating
that underperformance does not remain limited to the Italian JV.

- A sustained reduction in profitability or material divergence
between earnings and cash generation, for example as a result of a
significant share of earnings being accrued within unconsolidated
affiliates and not available to service debt at parent level.

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

- Given the Negative Outlook, rating upside for the Long-Term IDR
is limited over the short term. Material improvements in Intrum's
net leverage ratio in 1H23 indicating that the stated management
target will be comfortably met in 2023 could lead to a revision of
the Outlook to Stable.

ESG CONSIDERATIONS

Intrum AB has an ESG Relevance Score of '4' for Financial
Transparency due to the significance of internal modelling to
portfolio valuations and associated metrics such as estimated
remaining collections, which has a negative impact on the credit
profile, and is relevant to the rating[s] 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.

   Entity/Debt           Rating        
   -----------           ------        
Intrum AB (publ)

   senior unsecured   LT BB(EXP)  Expected Rating



=============
U K R A I N E
=============

UKRAINIAN RAILWAYS: S&P Downgrades ICR to 'CC', Outlook Negative
----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Ukrainian Railways JSC (UR to 'CC' from 'CCC-'. The negative
outlook reflects S&P's view that UR is likely to implement its debt
restructuring plans in the next few weeks, which we consider
tantamount to a default.

S&P said, "We view the announced debt restructuring proposal as
distressed and tantamount to default. Our assessment of UR's weak
liquidity and the continued challenging operating environment
suggests a realistic possibility of a conventional default absent
the proposed debt restructuring."

On Dec. 5, 2022, UR announced the consent solicitation offer to its
2024 and 2026 eurobond noteholders (not rated by S&P Global
Ratings) to defer payments on all external debt obligations by 24
months. S&P understands that the 2026 noteholders have been asked
to vote on the deferral by Dec. 16, 2022, and the 2024 noteholders
by Dec. 20, 2022. In its view, it is now almost certain that UR
will stop payments on its debt obligations as per the proposal.

S&P said, "S&P Global Ratings will lower the ratings to 'SD'
(selective default) once the debt restructuring is implemented.
According to our ratings definitions, under the proposed terms, we
would likely consider this debt restructuring as distressed and
thus lower our rating on UR to 'SD' should it be implemented. Upon
the debt restructuring taking effect, we would subsequently reflect
the new terms and conditions of the debt in the rating."

S&P understands that the proposal to defer debt service does not
include any debt haircuts and offers some additional compensation
and covenant concessions to eurobond noteholders in the form of a
consent fee. The two eurobond issues currently come due in July
2024 ($594.9 million) and July 2026 ($300.0 million) and constitute
almost 80% of all UR's debt.

Deterioration in Ukraine's capacity to provide further financial
support weakens UR's liquidity position. The proposal comes amid
significant liquidity pressures on UR emanating from the war
between Russia and Ukraine. There is a high risk that UR will not
perform payments in accordance with its maturity schedule due to
the adverse operating environment and high uncertainties regarding
the Ukrainian government's financial capacity to provide further
support to UR. The deferral of the debt service payments will allow
UR to use liquidity to cover ongoing operating and capital
expenditure.

S&P Global Ratings acknowledges a high degree of uncertainty about
the extent, outcome, and consequences of the war between Russia and
Ukraine. Irrespective of the duration of military hostilities,
related risks are likely to remain in place for some time. As the
situation evolves, S&P will update its assumptions and estimates
accordingly.

The negative outlook reflects high risks to UR's debt service
payments, given the UR's debt restructuring plans, which stems from
its weak liquidity position and high uncertainty regarding the
Ukrainian government's financial capacity to provide support to
UR.

S&P could lower the rating to 'SD' if UR implements the proposed
restructuring on its debt, which would in its view constitute a
distressed debt restructuring, or if UR fails to make payments on
its debt obligations in accordance with the original terms and S&P
does not expect such a payment to be made within the applicable
grace period.

Upward pressure on the ratings is highly unlikely at this stage.

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




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

FOLGATE INSURANCE: A.M. Best Affirms B(Fair) Fin'l. Strength Rating
-------------------------------------------------------------------
AM Best has revised the outlook to stable from negative for the
Long-Term Issuer Credit Rating (Long-Term ICR) and affirmed
Financial Strength Rating (FSR) of B (Fair) and the Long-Term ICR
of "bb+" (Fair) of Folgate Insurance Company Limited (Folgate)
(United Kingdom). The outlook of the FSR is stable.

These Credit Ratings (ratings) reflect Folgate's balance sheet
strength, which AM Best assesses as adequate, as well as its
adequate operating performance, very limited business profile and
appropriate enterprise risk management (ERM).

The revision of the Long-Term ICR outlook to stable from negative
reflects the recovery of Folgate's risk-adjusted capitalization, as
measured by Best's Capital Adequacy Ratio (BCAR), to the very
strong level at year-end 2021, as a result of improved operating
performance, from the strong level at year-end 2020. Going forward,
actions taken by the company to reduce capital requirements are
expected to support at least very strong level of risk-adjusted
capitalization.

The balance sheet strength assessment considers Folgate's small
capital base, which enhances the sensitivity of its risk-adjusted
capitalization to any shocks, and the company's material dependence
on reinsurance. The impact of the company's ultimate parent, Anglo
London Limited (ALL), on Folgate's balance sheet strength
assessment is neutral. ALL's consolidated risk-adjusted
capitalization, as measured by BCAR, improved to the very strong
level in 2021. Concurrently, ALL's consolidated financial leverage
decreased significantly in 2021.

Folgate reported a modest operating profit in 2021, equivalent to a
return-on-equity ratio (ROE) of approximately 5% (2020: -14.3%).
The improvement in 2021 was driven by technical profitability, with
a combined ratio of 91.6% in 2021, following underwriting losses in
2019 and 2020. Folgate reported further underwriting profits in the
first nine months of 2022, and AM Best expects adequate technical
profits over the cycle based on the track record of business
sourced via an affiliated managing general agent, Anglo Pacific
Consultants (London) Limited (APC).

Folgate's underwriting book of business is highly concentrated by
product and geography. In addition, AM Best views Folgate's
position in the competitive U.K. market as vulnerable and highly
dependent on third parties. This is partly mitigated by APC's
underwriting expertise and existing broker relationships.

Folgate's risk management framework is largely based on regulatory
requirements in the United Kingdom. Whilst the company's risk
management capabilities are considered broadly commensurate to its
risk profile, AM Best will continue to monitor whether underwriting
losses in recent years are evidence of potential weaknesses in
ERM.


LB RE FINANCING: December 24 Claims Filing Deadline Set
-------------------------------------------------------
Pursuant to Rule 14.29 of the Insolvency (England and Wales) Rules
1986, Gillian Eleanor Bruce and Edward John Macnamara, the Joint
Liquidators of LB Re Financing No. 3 Limited, in Liquidation,
intend to declare a fifth and final dividend to the unsecured non
preferential creditors within a period of two months from the last
date for proving, being December 24, 2022.

Such creditors are required on or before that date to submit their
proofs of debt to the Joint Liquidators, PricewaterhouseCoopers
LLP, 7 More London Riverside, London SE1 2RT, United Kingdom,
marked for the attention of Diane Adebowale or by email to
lehman.affiliates@uk.pwc.com

Persons so proving are required, if so requested, to provide such
further details or produce such documents or other evidence as may
appear to the Joint Liquidators to be necessary.

The Joint Liquidators will not be obliged to deal with proofs
lodged after the last date for proving but they may do so if they
think fit.

Creditors who wish to have dividend payments made to another person
or who have assigned their entitlement to someone else are asked to
provide formal notice to the Joint Liquidators.

For further information, contact details, and proof of debt forms,
one may call Diane Adebowale on +44(0)20-7583-5000.

The Joint Liquidators were appointed on July 23, 2012.


M&CO: Five Kent Stores Face Closure Following Administration
------------------------------------------------------------
Chantal Weller at KentOnline reports that five Kent clothing stores
face closure as a fashion retailer has fallen into administration
for the second time in two years.

M&Co, which has shops in Tenterden, Faversham, Sittingbourne,
Whitstable and Deal, has struggled in the face of trading
challenges and rising costs, KentOnline discloses.

"Store closing" signs have appeared in the windows of its Tenterden
and Faversham branches -- two of 170 across the country -- but the
fate of the remaining three in Kent is not yet known, KentOnline
relates.

According to KentOnline, joint administrator Gavin Park said: "Like
many retailers, the company has experienced a sharp rise in its
input costs, which has coincided with a decline in consumer
confidence leading to trading challenges.

"Despite a very loyal customer base, particularly in local markets,
and a well-recognised brand, the current economic outlook has
placed increasing pressure on the company’s cash position."

It is understood the decision to place M&Co into administration
will put thousands of jobs at risk, KentOnline notes.

No immediate redundancies have been made and the joint
administrators are now looking to sell the business, KentOnline
states.  The company will continue to trade from its stores and
website in the meantime, KentOnline relays.


MONSOON: Returns to Profitability Following Pre-pack Deal
---------------------------------------------------------
Georgia Wright at Retail Gazette reports that Monsoon is set to
open more stores next year after a recovery in profitability as
shoppers return to the high street.

The womens fashion retailer, which was bought out of administration
in June 2020 by founder Peter Simon in a pre-pack deal, currently
has 154 UK stores split between Monsoon and sister brand
Accessorize, down from 230 at the time it went into administration,
Retail Gazette recounts.

It has opened 19 stores over the past year and now plans to open an
additional 22 in its current financial year, Retail Gazette
discloses.

Monsoon chief executive Nick Stowe, who is keen on locations in
well-heeled regional towns and cities told the FT, "we could
probably get up to 200 stores in the UK if we wanted to", Retail
Gazette notes.

He added that the changes to business rates next year could make
opening stores "more attractive".

Monsoon's turnaround is focused on product and brand renewal,
digital transformation, retail portfolio renewal, international
expansion and cost control, Retail Gazette states.

This helped group sales jumped 43% to GBP258 million in the year to
Aug. 31 with retail like-for-likes rocketing 105% with Accessorize
and its travel business star performers, Retail Gazette relays.

EBITDA more than doubled for the year to GBP24.4 million as the
business' "lower and more flexible cost base" helped margin jump by
5.3% points, according to Retail Gazette.

The group, including its Middle-East venture, ended the fiscal year
with no debt and GBP22 million of cash, Retail Gazette notes.

Online sales continued their strong growth, led by the 22% jump at
Monsoon, with ecommerce now accounting for 45% of UK group sales,
Retail Gazette states.


NEWDAY FUNDING VFN-F1 V2: Fitch Hikes Rating on Cl. F Notes to B+sf
-------------------------------------------------------------------
Fitch Ratings has upgraded NewDay Funding's Series VFN-F1 V2's
class A and F notes, following a revised modelling of advance rates
of the classes of notes of that series. No other ratings of the
existing series issued from the trust are affected by this
revision.

   Entity/Debt        Rating            Prior
   -----------        ------            -----
NewDay Funding
Master Issuer Plc

   VFN-F1 V2
   Class A         LT A+sf  Upgrade     BBBsf

   VFN-F1 V2
   Class E         LT BBsf  Affirmed     BBsf

   VFN-F1 V2
   Class F         LT B+sf  Upgrade       Bsf

TRANSACTION SUMMARY

The Series VFN-F1 V2 notes are collateralised by a pool of
non-prime UK credit card receivables, providing funding flexibility
to the master trust structure.

The transaction documents allow for the note commitment amounts,
advance rates and margins to vary according to a specified
schedule. In December 2021, the variations to the capital structure
included reductions to the class A and F advance rates.
Subsequently, the level of credit enhancement (CE) available to the
class A and F notes has increased by 14.3% and 2.7%, respectively,
while Fitch had affirmed their ratings on 15 November 2022
incorrectly based on their prior CE levels.

From March 2022, the advance rates on the classes of notes will
remain constant. Note that the margins were modelled using the
maximum documented levels, including any step-up margins on the
coupons.

KEY RATING DRIVERS

Reduced Advance Rates: The upgrades are driven by a reduction in
the advance rates and a corresponding increase in the CE for the
class A and F notes. CE for the class A notes has increased to
30.6% from 16.3% and the class F notes to 5% from 2.3%.

Asset Assumptions Unchanged: These rating actions only address the
impact of the variations to the structure, meaning that asset
assumptions are unchanged. Fitch maintains a steady-state
charge-off rate of 18%, a steady-state monthly payment rate of 10%
and a steady-state yield of 30% for the trust.

RATING SENSITIVITIES

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

Long-term asset performance deterioration, such as increased
charge-offs, reduced monthly payment rate (MPR) or reduced
portfolio yield, which could be driven by changes in portfolio
characteristics, macroeconomic conditions, business practices,
credit policy or legislative landscape, would contribute to
negative revisions of Fitch's asset assumptions that could
negatively affect the notes' ratings.

This section provides insight into the model-implied sensitivities
the transaction faces when one assumption is modified, while
holding others equal. The modelling process uses the modification
of these variables to reflect asset performance in upside and
downside environments. The results below should only be considered
as one potential outcome, as the transaction is exposed to multiple
dynamic risk factors. It should not be used as an indicator of
possible future performance.

Rating sensitivity to increased charge-off rate:

Increase steady state by 25% / 50% / 75%

Series VFN-F1 V2 A: 'A-sf' / 'BBB+sf' / 'BBBsf'

Series VFN-F1 V2 E: 'B+sf' / 'Bsf' / N.A.

Series VFN-F1 V2 F: N.A. / N.A. / N.A.

Rating sensitivity to reduced MPR:

Reduce steady state by 15% / 25% / 35%

Series VFN-F1 V2 A: 'Asf' / 'A-sf' / 'BBB+sf'

Series VFN-F1 V2 E: 'BB-sf' / 'B+sf' / 'B+sf'

Series VFN-F1 V2 F: 'Bsf' / 'Bsf' / 'Bsf'

Rating sensitivity to reduced purchase rate:

Reduce steady state by 50% / 75% / 100%

Series VFN-F1 V2 A: 'A+sf' / 'A+sf' / 'A+sf'

Series VFN-F1 V2 E: 'BB-sf' / 'BB-sf' / 'B+sf'

Series VFN-F1 V2 F: 'B+sf' / 'Bsf' / 'Bsf'

Rating sensitivity to increased charge-off rate and reduced MPR:

Increase steady-state charge-offs by 25% / 50% / 75% and reduce
steady-state MPR by 15% / 25% / 35%

Series VFN-F1 V2 A: 'BBB+sf' / 'BBB-sf' / 'BB-sf'

Series VFN-F1 V2 E: 'Bsf' / N.A. / N.A.

Series VFN-F1 V2 F: 'N.A. / N.A. / N.A.

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

Long-term asset performance improvement, such as decreased
charge-offs, increased MPR or increased portfolio yield driven by a
sustainable positive change of the underlying asset quality would
contribute to positive revisions of Fitch's asset assumptions,
which could positively affect the notes' ratings.

Rating sensitivity to reduced charge-off rate:

Reduce steady state by 25%

Series VFN-F1 V2 A: 'AAsf'

Series VFN-F1 V2 E: 'BBB-sf'

Series VFN-F1 V2 F: 'BBsf'

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.

Prior to the transaction closing, Fitch reviewed the results of a
third-party assessment conducted on the asset portfolio information
and concluded that there were no findings that affected the rating
analysis.

Overall, Fitch's assessment of the information relied upon for the
agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.

ESG CONSIDERATIONS

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.


TULLOW OIL: S&P Affirms 'B-' LT ICR Following Downgrade of Ghana
----------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' long-term issuer credit rating
on U.K.-based oil producer Tullow Oil PLC, which mainly produces
oil in Ghana. S&P also affirmed its 'B-' issue rating on Tullow's
senior secured notes and 'CCC+' issue rating on its unsecured
notes.

S&P said, "The negative outlook reflects that we could lower our
rating on Tullow if we lower our T&C assessment on Ghana. A lower
T&C assessment could indicate a higher risk of imposition of
foreign exchange or capital controls by the sovereign, potentially
impeding Tullow's capacity to timely service its debt.

"The 'B-' rating affirmation on Tullow follows Ghana's T&C
assessment being maintained at 'CCC+'. We expect that Tullow will
continue to honor its obligations in full and in time, despite a
likely sovereign default on foreign obligations, supported by the
USD-denominated oil revenue that Tullow receives in its offshore
accounts. Considering Tullow's significant presence in Ghana, where
it generates more than 70% of its S&P Global Ratings-adjusted
EBITDA, we cap the rating to one notch above the T&C assessment. We
understand the deteriorating macroeconomic and fiscal conditions in
Ghana have had only a limited effect on Tullow in 2022 so
far--Tullow has been looking for ways to proactively help the
Government of Ghana optimize its cash position, including
potentially advancing tax payments before they are contractually
due. Tullow is currently not obliged to keep cash in the local
currency.

"Tullow continues to benefit from the strong oil price environment,
which should help it reduce leverage. Based on our Brent oil price
assumption of $100 per barrel (/bbl) in 2022 and $90/bbl in 2023,
we expect Tullow should generate adjusted EBITDA of $1.4
billion-$1.6 billion in 2022 and $1.5 billion-$1.7 billion in 2023.
This should, in turn, translate into funds from operations to debt
of 20%-25% in 2022 and 2023, compared with 10% in 2021.

"The negative outlook reflects that we would likely lower our
rating on Tullow if we revise downward our T&C assessment on Ghana,
given Tullow derives a significant portion of its production and
revenues from its assets in the country and the potential that
Ghana could implement capital or foreign-exchange controls. Any
potential negative rating action on Tullow would depend on the
nature of the specific default scenario we contemplate in Ghana and
the implications for its oil and gas exporters. If a potential
default proved to be short-term and technical in nature, we could
base our issuer credit rating on Tullow on our expected
post-default sovereign rating and T&C assessment on Ghana.

"We could lower our rating on Tullow if we lowered our T&C
assessment on Ghana. This might be due to our views on the
likelihood that the country might implement capital or foreign
exchange controls, for example requirements to repatriate cash or
use onshore bank accounts. This would be detrimental to the
company's capacity to repay its debts on time and in full. We could
also lower the rating on Tullow if it no longer passed our rating
above the sovereign and T&C stress-tests. In this scenario, we
could equalize the rating on Tullow with Ghana's T&C assessment.
Alternatively, we could also downgrade Tullow if we believe its
capital structure is no longer sustainable, a risk that could
increase throughout 2023 if debt capital markets remain difficult
to access, or at a prohibitive cost, for speculative-grade issuers
like Tullow.

"We could revise our outlook on Tullow to stable if we revise our
outlook on Ghana to stable or if the company reduces its exposure
to Ghana below 70% and we expect it would sustain its exposure at
this level. We see the latter as unlikely at this stage, as our
central scenario assumes no acquisitions outside of Ghana. Lastly,
clarity on the refinancing plan for the $800 million notes due
March 2025 would also be an important consideration for any
positive action."


VUE INTERNATIONAL: EUR634M Bank Debt Trades at 43% Discount
-----------------------------------------------------------
Participations in a syndicated loan under which Vue International
Bidco PLC is a borrower were trading in the secondary market around
56.7 cents-on-the-dollar during the week ended Friday, December 9,
2022, according to Bloomberg's Evaluated Pricing service data.

The EUR634 million facility is a Term loan.  The loan is scheduled
to mature on June 21, 2026.  The amount is fully drawn and
outstanding.

Vue International Bidco PLC operates movie theaters worldwide.  The
Company's country of domicile is the United Kingdom.


                           *********


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-
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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.

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