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

                          E U R O P E

          Wednesday, March 15, 2023, Vol. 24, No. 54

                           Headlines



B E L G I U M

VILLA DUTCH: S&P Assigns 'B' Long-Term ICR, Outlook Stable


F R A N C E

TAKECARE BIDCO: Moody's Ups CFR to B2 & Alters Outlook to Stable


G E R M A N Y

BK LC LUX 1: Moody's Affirms 'B2' CFR & Alters Outlook to Positive


I R E L A N D

CVC CORDATUS XI: Moody's Affirms B2 Rating on EUR14.625MM F Notes
HARVEST CLO XVI: Moody's Affirms B2 Rating on EUR12.5MM F-R Notes


I T A L Y

EVOCA SPA: Moody's Affirms 'B3' CFR, Outlook Remains Negative


P O L A N D

KRUK SA: Moody's Assigns First Time 'Ba1' Corporate Family Rating
KRUK SA: S&P Assigns 'BB-' Issuer Credit Rating, Outlook Stable


U N I T E D   K I N G D O M

AARTEE BRIGHT: High Court to Hear GFG Challenge Today
AIRTH CASTLE: Enters Administration, Hotel Won't Be Sold
BIGCHANGE GROUP: Goldman Sachs Marks GBP870,000 Loan at 46% Off
BLACKMORE BOND: FCA Warns Investors About Fraudsters
BRITISHVOLT: Owed Up to GBP160 Million at Time of Collapse

GALAXY FINCO: Moody's Affirms 'B2' CFR & Alters Outlook to Stable
INTERNATIONAL GAME: Moody's Ups CFR & Senior Secured Notes to Ba1
LONDON CAPITAL: Creditors Set to Receive Lower Dividends
MODE GLOBAL: To Enter Into Administration, April 5 CVA Meeting Set
ROLLS-ROYCE PLC: S&P Upgrades ICR to 'BB', Outlook Positive

SILICON PRACTICE: Bought Out of Administration

                           - - - - -


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B E L G I U M
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VILLA DUTCH: S&P Assigns 'B' Long-Term ICR, Outlook Stable
----------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issuer credit rating
to Villa Dutch Bidco B.V. and its 'B' issue rating, with a '3'
recovery rating, to the senior secured debt.

The stable outlook reflects S&P's view that House of HR will
continue generating solid revenue and integrate recent acquisitions
while maintaining steady profitability, with an S&P Global
Ratings-adjusted EBITDA margin above 11% and adjusted leverage
decreasing to 6.0x-6.5x by end-2023.

Bain Capital, through Villa Dutch Bidco, acquired a majority stake
of approximately 55% in House of HR group, for an enterprise value
of approximately EUR2.7 billion.Villa Dutch Bidco financed the
purchase with the proceeds from a EUR1,020 billion senior secured
term loan B, EUR125 million delayed draw term facility--of which
EUR114.1 million was drawn at closing, a EUR250 million senior
secured revolving credit facility (RCF), EUR415 million 9% senior
secured notes, and a EUR310 million second-lien facility. Former
majority shareholders of House of HR, Naxicap and Mrs. Conny
Vandendriessche (founder of the group), retained about 21.2% of the
share capital and management; other minority shareholders retained
23.8%. The transaction also included an equity contribution from
Bain Capital and an equity re-investment from existing
shareholders, largely in the form of preferred shares; we consider
these to be equity and exclude them from our leverage and coverage
calculation.

S&P siad, "We anticipate that Villa Dutch Bidco will deleverage
gradually in 2023-2024 from the post-transaction high of an
estimate S&P Global Ratings-adjusted 7.1x at end-2022.This compares
with 5.6x at end-2021. We expect adjusted leverage will decrease to
6.0x-6.5x by end-2023, driven by solid revenue and EBITDA growth.
Solid organic growth will be complemented by recent acquisitions,
including Dutch groups Agium in October 2022 and ABMI in December
2022, and Germany-based pluss, expected to close in April 2023.
Improved profitability, low capital expenditure (capex) intensity
(of about 1% of revenue), and moderate working capital requirements
will support the group's ability to post positive free operating
cash flow (FOCF) after lease payments of EUR20 million-EUR50
million in 2023 and 2024. We expect the group's interest costs will
be higher than in our review last September. This is due to a
higher spread on the TLB and higher coupon on the notes than our
initial assumptions and upward revisions of floating rates for 2023
and 2024. As a result, we expect funds from operations (FFO) cash
interest coverage will temporarily weaken to about 1.8x in 2023,
before increasing to approximately 2.0x in 2024. The company
entered into arrangements to hedge part of the interest risk
exposure under the senior secured facilities.

"House of HR's leading position as a provider of outsourced
staffing solutions in Europe supports our business risk assessment.
We believe the company benefits from a favorable positioning within
the wider staffing market. Its strategy focuses on outsourced
staffing markets that enjoy favorable trends such as low
unemployment, high temporary labor, a growing skill supply-demand
gap in technical engineering, and specialized blue-collar labor,
and an aging population resulting in a declining workforce. As a
result, the group has a track record of above-industry-average
organic growth rates and profitability, and has demonstrated
resilience across the cycle. This is also supported by the group's
fairly good diversification across end markets, with 40% of revenue
from industries that can be considered as defensive (such as public
sector, IT and telecoms, and health care). Additionally, House of
HR generates a large share of its revenue from small and midsize
enterprises; these tend to demonstrate greater stickiness and lower
price-sensitivity, and generally have lower inhouse human resources
and recruiting capabilities as compared with large corporates.
House of HR has no meaningful customer concentration.

"These strengths are mitigated by our view of the wider outsourced
staffing services as a very fragmented, competitive, and cyclical
industry. In our view, staffing markets are highly correlated with
economic conditions, in particular unemployment. Deteriorating
business confidence levels can lead to swift and significant
declines of revenue and operating profits, as House of HR has
experienced in economic downturns. In 2020, due to the pandemic,
the group's revenue dropped about 9% and S&P Global
Ratings-adjusted EBITDA 16%. However, the company's performance
during past crises illustrates its ability to rebound quickly. We
believe that barriers to entry and switching costs are generally
low in the outsourced staffing industry, and that House of HR lacks
the scale of global players such as Adecco and Manpower, which are
10x larger by revenue and have greater geographic diversification.
House of HR's revenue are concentrated in four countries--Belgium,
the Netherlands, Germany, and France--where economic conditions are
highly correlated. In our view, due to the group's decentralized
model, operating leverage is relatively high. This might prevent
the group from reducing costs in case of revenue loss.

"In its business model, House of HR bears the risk of the underuse
of staff in an economic downturn. In its engineering and consulting
segment (40% of the group's pro forma revenue as of June 2022), the
company places engineers, technicians, and other white-collar
consultants with clients on a medium-to-long-term basis. These job
candidates are on House of HR's payroll under indefinite employment
contracts, whether they are on assignment with a client or not.
Therefore, the group faces the risk of incurring costs without
generating revenue if candidates are underused. In our view, the
company's focus on scarcity-driven job positions and track record
in placing candidates, maintaining relatively stable bench costs,
mitigate this risk.

"We expect House of HR will continue to perform above
industry-average and mitigate cost inflation with price
increases.Despite muted GDP growth forecasts in Western Europe, we
believe that demand for the company's services will be supported by
low unemployment in its countries of operations and greater
resilience of its niche and specialized staffing market as compared
with general staffing industries. As a result, we forecast
significant revenue growth in 2023, additionally boosted by
acquisitions-related revenue. Strong business volumes should
support stable EBITDA margins of 11.0%-11.5%, although some risk
remains relating to inflation's effects on costs. In our view,
House of HR can generally pass through increased labor costs to
customers, with contractual pass-through mechanisms in its
specialized staffing business, and effective price negotiations in
its engineering and consulting segment.

"We factor into our financial risk assessment the company's
financial-sponsor ownership.We see a significant risk that House of
HR's capital structure will remain highly leveraged, because
private-equity owners typically have tolerance for high leverage
ratios. In our view, potential debt-funded acquisitions, consistent
with the group's strategy combining organic and inorganic growth,
could result in limited deleveraging and potential
shareholder-friendly actions.

"The stable outlook reflects our view that House of HR will
continue generating solid revenue growth and integrate recent
acquisitions while maintaining steady profitability, with S&P
Global Ratings-adjusted EBITDA margins above 11% and adjusted
leverage falling to 6.0x-6.5x by end-2023.

"We could lower the rating if the group materially underperformed
our forecast, due to deteriorating labor market conditions,
inflation, or exceptional costs, or if financial policy decisions
suggested that leverage would materially increase." Specifically,
S&P could lower the rating if:

-- A prolonged economic downturn caused FOCF to turn negative.

-- The group's financial policy decisions, combined with weak
operating performance, resulted in significant leverage
deterioration.

-- FFO cash interest coverage declined and remained materially
below 2.0x.

S&P could take a positive rating action if:

-- Revenue and EBITDA improved more than expected such that debt
to EBITDA fell and remained sustainably below 5.0x.

-- Villa Dutch's shareholders committed to maintaining leverage at
or below that level.

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

S&P said, "Governance factors are a moderately negative
consideration in our credit analysis of House of HR. Our assessment
of the company's financial risk profile as highly leveraged
reflects corporate decision-making that prioritizes the interests
of the controlling owners, in line with our view of the majority of
rated entities owned by private-equity sponsors. Our assessment
also reflects generally finite holding periods and a focus on
maximizing shareholder returns. We view social factors as neutral
to our analysis. House of HR's business faces social risks related
to human capital management, in part because of variations in
related regulations by country. Changes to temporary employment
regulations could impair the company's growth trend or
profitability, and insufficient compliance awareness could result
in substantial fines or penalties. However, we believe House of HR
has a long record of complying with regulations."




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F R A N C E
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TAKECARE BIDCO: Moody's Ups CFR to B2 & Alters Outlook to Stable
----------------------------------------------------------------
Moody's Investors Service has upgraded Takecare Bidco's (Sante Cie
or the company) corporate family rating to B2 from B3 and its
probability of default rating to B2-PD from B3-PD. Moody's has also
upgraded to B2 from B3 the ratings on the EUR530 million backed
senior secured term loan B (TLB) due June 2028 and on the EUR90
million backed senior secured revolving credit facility (RCF) due
December 2027, both borrowed by Takecare Bidco. The outlook on all
ratings has been changed to stable from positive.

The upgrade of the ratings to B2 reflects the company's sustained
improvement in earnings with high organic revenue growth of 8% to
10% driven by market share gains, resilient and relatively higher
margins compared to rated peers, which led to a marked reduction in
financial leverage in 2022 to 6.2x from 7.1x in 2020 despite the
current high cost inflation environment.

RATINGS RATIONALE

Sante Cie's B2 CFR is supported by (1) the company's good market
positions in the fragmented French homecare services market; (2)
its track record of solid organic growth driven, among others, by
partnerships with other healthcare providers; (3) the growth
potential of the French homecare services market, backed by
favorable demographics and the shift to homecare; (4) Sante Cie's
overall high degree of revenue visibility, supported by social
security reimbursements and the stability of the patient portfolio;
and (5) resilient margins, supported by the ability to generate
economies of scale and limit the impact of tariff cuts.

Conversely, the B2 rating is constrained by the company's (1) still
small size with revenue amounting to EUR390 million as of LTM
December 2022; (2) high exposure to ongoing tariff cuts in the
French and German homecare services markets; (3) currently high
leverage, which stands at 6.2x as of end December 2022 and expected
to reduce towards 5.5x in the next 12 to 18 months; (4) active M&A
strategy, which might delay any deleveraging going forward; and (4)
high capital spending requirements, which constrain free cash flow
generation.

Sante Cie's revenue continued to grow in 2022 (+10.5% on organic
basis compared to the same period last year) driven by all the
company's segments including respiratory (39.6% of 2022 revenue),
infusion (21.5%), insulin (19.8%), nutrition (5%) as well as the
recently added segments UrgenceMed and Dialysis (1%). The German
subsidiary Aposan, which was acquired in 2020, grew revenue by 13%
in 2022. Leverage, as measured by Moody's-adjusted debt to EBITDA,
continued to improve and decreased from 6.9x in 2021 to 6.2x in
2022. Also, Sante Cie's free cash flow to debt increased to 4.5% in
2022 from 0.7% in 2021 driven by profitability improvements and
positive development of working capital over the period. Interest
coverage metrics, measured as Moody's-adjusted EBITA to interest
expense, improved to 2.7x as of end 2022, from 2.4x in 2021.

In the next 12 to 18 months, Moody's expects Sante Cie to further
grow organically by increasing its market share and to continue to
maintain good margins, despite pricing pressure which characterizes
the sector. Moody's expects the company will reduce further its
financial leverage towards 5.5x by 2024 driven by a mix of volume
growth and continuously improving operating efficiency. As Sante
Cie plans to continue to expand its home care service offering and
its geographical footprint in France and Germany, Moody's expects
the company to continue to grow through mainly bolt-on acquisitions
as done over 2021 and 2022. Moody's understands that in case of
larger acquisitions, such as Aposan in 2020, the sponsor would
support the transaction through an equity injection.

LIQUIDITY

The liquidity is adequate and supported by (1) around EUR54 million
of cash on balance at end of December 2022 (14% of revenue), (2)
EUR50 million availability under the EUR90 million backed senior
secured revolving credit facility, (3) expected positive FCF for
the next 12-18 months and (4) long dated debt maturities since the
backed senior secured revolving credit facility matures in December
2027 and the backed senior secured term loan B matures in June
2028.

Sante Cie's FCF generation is constrained by large capital
expenditure. These investments mostly include capex to finance the
purchase and renewal of medical devices that the company installs
for its patients. For the next 12 to 18 months, Moody's expects the
company to generate EUR10 to EUR15 million Moody's-adjusted FCF.

The debt documentation includes a covenant (Senior Secured Net
Leverage Ratio < 9x), for the benefit of the lenders to the
backed senior secured revolving credit facility, tested when the
revolving credit facility is drawn by more than 40%.

STRUCTURAL CONSIDERATIONS

The backed senior secured term loan B and the backed senior secured
revolving credit facility are ranking pari passu and are rated B2
in line with the CFR in the absence of any significant liabilities
ranking ahead or behind. Moody's treats the convertible bonds
issued by Takecare Bidco as equity for the purpose of Moody's
credit metrics calculation.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectations that Sante Cie
will be able to maintain credit metrics commensurate with the B2
rating over the next 18 months on the back of at least stable
earnings in 2023 and continued but slower EBITDA growth thereafter,
leading to a Moody's adjusted leverage decreasing towards 5.5x by
2024. The stable outlook also assumes positive free cash flow
generation capacity at all times and at least an adequate liquidity
profile with comfortable headroom under its financial covenant.

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

Moody's could upgrade the rating if Sante Cie's Moodys-adjusted
debt/EBITDA remains below 5.0x while the company grows its earnings
further and successfully executes its business strategy, including
the smooth integration of bolt-on acquisitions; its Moodys-adjusted
FCF/debt remains above 5%; and there are no adverse changes in the
company's strategy or financial policy.

Moody's could downgrade the rating if Sante Cie's Moodys-adjusted
(gross) debt/EBITDA remains above 6.0x; profitability deteriorates
because of competitive, regulatory or pricing pressure;
Moodys-adjusted FCF remains negative for a prolonged period; or
financial policy becomes more aggressive with regard to
debt-financed acquisitions.

LIST OF AFFECTED RATINGS

Upgrades:

Issuer: Takecare Bidco

Probability of Default Rating, Upgraded to B2-PD from B3-PD

LT Corporate Family Rating, Upgraded to B2 from B3

BACKED Senior Secured Bank Credit Facility, Upgraded to B2 from
B3

Outlook Action:

Issuer: Takecare Bidco

Outlook, Changed To Stable From Positive

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.



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G E R M A N Y
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BK LC LUX 1: Moody's Affirms 'B2' CFR & Alters Outlook to Positive
------------------------------------------------------------------
Moody's Investors Service has changed the outlook to positive from
stable on the ratings of BK LC Lux Finco 1 S.a.r.l. (Birkenstock or
the company), a holding company of German footwear brand
Birkenstock. Concurrently, Moody's has affirmed the company's B2
corporate family rating, the B2-PD probability of default rating,
the Caa1 rating of the EUR430 million backed senior unsecured
notes, and the B1 instrument ratings on the EUR375 million senior
secured term loan B (TLB) issued by Birkenstock Group B.V. & Co. KG
and $850 million senior secured TLB issued by Birkenstock US BidCo,
Inc. The outlook on all entities has changed to positive from
stable.

"Moody's decision to change Birkenstock's outlook to positive
reflects the company's strong positioning in the rating category
and its exceptional operating performance in the last two years,
well above initial expectations, and despite high inflation and a
weaker macroeconomic backdrop" says Guillaume Leglise, a Moody's
Vice President-Senior Analyst and lead analyst for Birkenstock.
"The positive outlook assumes that the company will continue to
focus on business growth, invest to expand production capacities,
maintain good liquidity and a balanced financial policy in the next
18 months" adds Mr Leglise.

RATINGS RATIONALE

The rating action is driven by Birkenstock's exceptionally strong
performance in 2022 and its solid credit metrics for the rating
category. At end-December 2022, Moody's estimates the company's
leverage (Moody's-adjusted gross debt/EBITDA) reduced to around
4.3x, compared to 8.2x at the time of the 2021 rating inception.

This fast deleveraging reflects the company's strong operating
performance, with sales and EBITDA growing by double-digit figures,
by +28% and +31% respectively during fiscal 2022 (year ended
September 30, 2022). Moody's expects that Birkenstock's key credit
metrics will continue to strengthen over the next 18 months, driven
by (i) solid customer demand for the company's footwear products
across all geographies and channels on the back of the
casualisation tailwinds, (ii) continued strength in wholesale
demand, (iii) the expansion into adjacent segments such as closed
toe shoes, and (iv) the company's new production facilities
expected to be delivered in late 2023, which will enable
significant volume growth, especially in underpenetrated countries.
Moody's expects the company's leverage to approach 4.0x in the next
12 months, which would support an upgrade to B1.

The B2 CFR reflects Birkenstock's (i) strong brand positioning,
with limited fashion risk as evidenced by the longevity of the
product success and high customer loyalty thanks to the unique
value proposition of its core product focused on high quality and
orthopedic benefits; (ii) its selective distribution strategy and
growing direct-to-consumer (DTC) operations, notably online
presence, which enable better control of brand image and optimize
product allocation; (iii) its full in-house manufacturing, which
mitigates supply chain issues and significantly reduces the
reputational risks stemming from potential deviations in standards
and practices of external producers; and (iv) its good free cash
flow (FCF) generation and strong liquidity despite large capital
spending to support business expansion and increasing cost of
financial debt.

In contrast, the CFR is constrained by (i) the company's exposure
to high inflation and weak macroeconomic prospects, which can
constrain sales and earnings growth in the next 12 to 18 months;
(ii) its narrow brand focus and concentrated product line, albeit
offered in a large range of styles; (iii) its exposure to intense
competition in the casual footwear retail sector, which may be
subject to changing customer preferences; and (iv) the limited
financial disclosure in the company's audited accounts, which has
improved in fiscal 2022, but remains well below that for peers.

Moody's believes that there is still a degree of uncertainty
regarding the financial policy of the company's sponsor-owner, L.
Catterton. Moody's acknowledges that L. Catterton has not extracted
any cash from the company since the 2021 leveraged buyout and
despite Birkenstock's strong financial performance to date.
Instead, the sponsor-owner has supported the company's business
growth with large capital spendings (nearly EUR100 million invested
in 2022/23) for expanding production facilities. The positive
outlook assumes that the company will continue to invest in the
development of production capacities and DTC operations, while
maintaining good liquidity and a balanced financial policy.

LIQUIDITY PROFILE

Birkenstock's liquidity is strong, supported by EUR165 million of
cash on balance sheet and full availability under the EUR200
million Asset Backed Lending (ABL) facility as at end-December
2022. The ABL facility can be used to cover seasonal variations in
working capital, but this facility has never been used since
inception, owing to the company's good FCF generation. Moody's
expects the company's FCF to range between EUR70 million and EUR100
million in fiscal 2023, despite working capital outflows to support
growth-driven inventory build-up, substantial capex investments of
around EUR120 million and higher financial charges on the company's
floating rates senior secured TLBs issued by Birkenstock Group B.V.
& Co. KG and Birkenstock US BidCo, Inc. Moody's expects the
company's FCF to trend towards EUR200 million from 2024, supported
by earnings growth and lower capex investments.

The company faced large working capital outflows in 2022 and in
recent quarters, owing to a substantial increase in inventories.
While the company typically build up inventories in October to
March ahead of the peak summer season, Birkenstock also strives to
voluntarily increase inventories currently to mitigate
transportation issues and support growth in the DTC channel, on the
back of strong customer demand.

The company doesn't have any short-term maturities with the first
large amount of debt not due before 2028, when the senior secured
TLBs will mature. The ABL facility is due in April 2026, but has
never been used to date. Moody's expects this ABL facility to
remain largely undrawn thanks to the company's good FCF
generation.

RATIONALE FOR POSITIVE OUTLOOK

The positive outlook reflects Moody's expectations that Birkenstock
will continue to record sales and earnings growth in the next 12-18
months. Quantitatively, Moody's outlook assumes at least mid-single
digit sales growth, broadly stable EBITDA margins despite
inflationary pressure, which will support further deleveraging
towards 4.0x in the next 12-18 months. The positive outlook also
incorporates Moody's assumption that the company will continue to
invest in the expansion of its production facilities, successfully
executes and completes this project by end 2023 as planned, while
maintaining good FCF and a balanced financial policy.

STRUCTURAL CONSIDERATIONS

The CFR is assigned at the level of BK LC Lux Finco 1 S.a.r.l., the
top entity of the senior unsecured notes restricted group.
Birkenstock Group B.V. & Co. KG is the reporting entity of the
group and borrower of the EUR375 million senior secured TLB.

Birkenstock's debt capital structure comprises a EUR200 million ABL
facility, a EUR375 million senior secured TLB issued by Birkenstock
Group B.V. & Co. KG and a $850 million senior secured TLB issued by
Birkenstock US BidCo, Inc., ranking ahead of the company's EUR430
million backed senior unsecured notes (EUR429 million outstanding
as of December 31, 2022). The senior secured TLBs and the ABL
facility benefit from the same maintenance guarantor package,
including upstream guarantees from guarantor subsidiaries,
representing around 90% of the company's consolidated EBITDA. Both
instruments benefit from security assignments over intercompany
receivables, material bank accounts, inventories, raw materials,
insurance claims and trade receivables. The B1 ratings of the
senior secured TLBs reflect their senior security package, ranking
behind the ABL facility, which benefits from priority in case of
collateral enforcement.

The Caa1 rating of the backed senior unsecured notes due 2029 is
two notches below the CFR, reflecting their subordination in the
debt structure.

Birkenstock's B2-PD probability of default rating is in line with
the CFR and reflects the use of a 50% family recovery rate,
consistent with a capital structure that includes bonds and bank
debt.

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

A further positive pressure on the rating could build up if the
company executes well on its growth strategy while maintaining a
high EBITDA margin and lower leveraged profile on a sustainable
basis. Quantitatively, upward pressure could materialise if the
company's Moody's adjusted gross debt/EBITDA ratio stays below 4.5x
on a sustainable basis, and EBITA/interest expense ratio remains
sustainably above 2.5x and Moody's-adjusted FCF/gross debt remains
above 10%. An upgrade would also require Birkenstock to maintain
good liquidity and demonstrate a balanced and predictable financial
policy.

Conversely, negative pressure on the rating could materialize if
the company's sales growth and margins come under pressure
indicating that its core product is losing its appeal.
Quantitatively, downward pressure could occur if the company's
Moody's adjusted gross debt/EBITDA ratio rises above 5.5x and
EBITA/interest expense ratio fall sustainably below 1.5x. Although
unlikely based on the historic cash generative nature of the
business, negative pressure could also arise from the significant
deterioration in FCF or adequate liquidity is not maintained at all
times.

LIST OF AFFECTED RATINGS

Affirmations:

Issuer: BK LC Lux Finco 1 S.a.r.l.

Probability of Default Rating, Affirmed B2-PD

LT Corporate Family Rating, Affirmed B2

BACKED Senior Unsecured Regular Bond/Debenture, Affirmed Caa1

Issuer: Birkenstock Group B.V. & Co. KG

Senior Secured Bank Credit Facility, Affirmed B1

Issuer: Birkenstock US BidCo, Inc.

Senior Secured Bank Credit Facility, Affirmed B1

Outlook Actions:

Issuer: BK LC Lux Finco 1 S.a.r.l.

Outlook, Changed To Positive From Stable

Issuer: Birkenstock Group B.V. & Co. KG

Outlook, Changed To Positive From Stable

Issuer: Birkenstock US BidCo, Inc.

Outlook, Changed To Positive From Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Apparel
published in June 2021.

COMPANY PROFILE

Headquartered in Linz am Rhein, Birkenstock is a German brand that
primarily designs, manufactures and sells casual footwear. The
company's product portfolio includes sandals, closed-toe shoes and
other accessories. Dating back to 1774, the company mainly
distributes its products through the wholesale channel and to a
lesser extent via direct retail stores. Since 2016, the company has
rapidly developed its online division and is now digitally present
in 33 countries. Birkenstock operates a retail network of around 50
stores. In the 12 months to December 31, 2022, the company reported
EUR1.3 billion in sales and EUR400 million in EBITDA (as adjusted
by the company).



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CVC CORDATUS XI: Moody's Affirms B2 Rating on EUR14.625MM F Notes
-----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the following
notes issued by CVC Cordatus Loan Fund XI Designated Activity
Company:

EUR22,500,000 Class B-1-R Senior Secured Floating Rate Notes due
2031, Upgraded to Aaa (sf); previously on Mar 17, 2021 Assigned Aa2
(sf)

EUR24,750,000 Class B-2-R Senior Secured Fixed Rate Notes due
2031, Upgraded to Aaa (sf); previously on Mar 17, 2021 Assigned Aa2
(sf)

EUR31,500,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2031, Upgraded to A1 (sf); previously on Mar 17, 2021
Assigned A2 (sf)

Moody's has also affirmed the ratings on the following notes:

EUR271,125,000 Class A-R Senior Secured Floating Rate Notes due
2031, Affirmed Aaa (sf); previously on Mar 17, 2021 Assigned Aaa
(sf)

EUR22,500,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed Baa2 (sf); previously on Mar 17, 2021
Assigned Baa2 (sf)

EUR30,375,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed Ba2 (sf); previously on Mar 17, 2021
Affirmed Ba2 (sf)

EUR14,625,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed B2 (sf); previously on Mar 17, 2021
Affirmed B2 (sf)

CVC Cordatus Loan Fund XI Designated Activity Company, originally
issued in September 2018 and refinanced in March 2021, is a
collateralised loan obligation (CLO) backed by a portfolio of
mostly high-yield senior secured European loans. The portfolio is
managed by CVC Credit Partners European CLO Mmgt LLP. The
transaction's reinvestment period will end in April 2023.

RATINGS RATIONALE

The rating upgrades on the Class B-1-R, B-2-R and C-R notes are
primarily a result of the benefit of the shorter period of time
remaining before the end of the reinvestment period in April 2023.

The affirmations on the ratings on the Class A-R, D-R, E and F
notes are primarily a result of the expected losses on the notes
remaining consistent with their current rating levels, after taking
into account the CLO's latest portfolio, its relevant structural
features and its actual over-collateralisation ratios.

In light of reinvestment restrictions during the amortisation
period, and therefore the limited ability to effect significant
changes to the current collateral pool, Moody's analysed the deal
assuming a higher likelihood that the collateral pool
characteristics would maintain an adequate buffer relative to
certain covenant requirements. In particular, Moody's assumed that
the deal will benefit from a lower WARF and a shorter WAL than it
had assumed at the last rating action in March 2021.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.

In its base case, Moody's used the following assumptions:

Performing par and principal proceeds balance: EUR442.9m

Defaulted Securities: EUR6.5m

Diversity Score: 55

Weighted Average Rating Factor (WARF): 2921

Weighted Average Life (WAL): 4.1 years

Weighted Average Spread (WAS) (before accounting for Euribor
floors): 3.7%

Weighted Average Recovery Rate (WARR): 44.0%

Par haircut in OC tests and interest diversion test: 0%

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on future
defaults is based primarily on the seniority of the assets in the
collateral pool. In each case, historical and market performance
and a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporates these default and recovery
characteristics of the collateral pool into its cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analysing.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
December 2021.

Counterparty Exposure:

The rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank and swap providers,
using the methodology "Moody's Approach to Assessing Counterparty
Risks in Structured Finance" published in June 2022. Moody's
concluded the ratings of the notes are not constrained by these
risks.

Factors that would lead to an upgrade or downgrade of the ratings:

The rated notes' performance is subject to uncertainty. The notes'
performance is sensitive to the performance of the underlying
portfolio, which in turn depends on economic and credit conditions
that may change. The collateral manager's investment decisions and
management of the transaction will also affect the notes'
performance.

Additional uncertainty about performance is due to the following:

Portfolio amortisation: Once reaching the end of the reinvestment
period in April 2023, the main source of uncertainty in this
transaction is the pace of amortisation of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortisation could accelerate as a consequence of high loan
prepayment levels or collateral sales by the liquidation agent/the
collateral manager or be delayed by an increase in loan
amend-and-extend restructurings. Fast amortisation would usually
benefit the ratings of the notes beginning with the notes having
the highest prepayment priority.

Weighted average life: The notes' ratings are sensitive to the
weighted average life assumption of the portfolio, which could
lengthen as a result of the manager's decision to reinvest in new
issue loans or other loans with longer maturities, or participate
in amend-to-extend offerings.

Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's
over-collateralisation levels. Further, the timing of recoveries
and the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's analysed
defaulted recoveries assuming the lower of the market price or the
recovery rate to account for potential volatility in market prices.
Recoveries higher than Moody's expectations would have a positive
impact on the notes' ratings.

In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.

HARVEST CLO XVI: Moody's Affirms B2 Rating on EUR12.5MM F-R Notes
-----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the following
notes issued by Harvest CLO XVI DAC:

EUR22,000,000 Class B-1-R Senior Secured Floating Rate Notes due
2031, Upgraded to Aa1 (sf); previously on Mar 5, 2021 Definitive
Rating Assigned Aa2 (sf)

EUR20,000,000 Class B-2-R Senior Secured Fixed Rate Notes due
2031, Upgraded to Aa1 (sf); previously on Mar 5, 2021 Definitive
Rating Assigned Aa2 (sf)

EUR31,000,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2031, Upgraded to A1 (sf); previously on Mar 5, 2021
Definitive Rating Assigned A2 (sf)

EUR27,000,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2031, Upgraded to Baa2 (sf); previously on Mar 5, 2021
Definitive Rating Assigned Baa3 (sf)

Moody's has also affirmed the ratings on the following notes:

EUR273,000,000 Class A-R Senior Secured Floating Rate Notes due
2031, Affirmed Aaa (sf); previously on Mar 5, 2021 Definitive
Rating Assigned Aaa (sf)

EUR24,000,000 Class E-R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed Ba2 (sf); previously on Mar 5, 2021
Affirmed Ba2 (sf)

EUR12,500,000 Class F-R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed B2 (sf); previously on Mar 5, 2021
Affirmed B2 (sf)

Harvest CLO XVI DAC, issued in September 2016, is a collateralised
loan obligation (CLO) backed by a portfolio of mostly high-yield
senior secured European loans. The portfolio is managed by
Investcorp Credit Management EU Limited. The transaction's
reinvestment period will end in April 2023.

RATINGS RATIONALE

The rating upgrades on Class B-1-R, Class B-2-R, Class C-R and
Class D-R notes are primarily a result of the benefit of the
shorter period of time remaining before the end of the reinvestment
period in April 2023.

In light of reinvestment restrictions during the amortisation
period, and therefore the limited ability to effect significant
changes to the current collateral pool, Moody's analysed the deal
assuming a higher likelihood that the collateral pool
characteristics would maintain an adequate buffer relative to
certain covenant requirements. In particular, Moody's assumed that
the deal will benefit from a shorter amortisation profile, higher
weighted average recovery rate and higher diversity score than it
had assumed in the last rating action.

The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.

In its base case, Moody's used the following assumptions:

Performing par and principal proceeds balance: EUR436.67 million

Defaulted Securities: EUR0

Diversity Score: 61

Weighted Average Rating Factor (WARF): 2991

Weighted Average Life (WAL): 4.19 years

Weighted Average Spread (WAS) (before accounting for Euribor
floors): 3.79%

Weighted Average Coupon (WAC): 4.34%

Weighted Average Recovery Rate (WARR): 44.63%

Par haircut in OC tests and interest diversion test: 0%

The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on future
defaults is based primarily on the seniority of the assets in the
collateral pool. In each case, historical and market performance
and a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporates these default and recovery
characteristics of the collateral pool into its cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analysing.

Methodology Underlying the Rating Action:

The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
December 2021.

Counterparty Exposure:

The rating action took into consideration the notes' exposure to
relevant counterparties, such as the account bank and swap
provider, using the methodology "Moody's Approach to Assessing
Counterparty Risks in Structured Finance" published in June 2022.
Moody's concluded the ratings of the notes are not constrained by
these risks.

Factors that would lead to an upgrade or downgrade of the ratings:

The rated notes' performance is subject to uncertainty. The notes'
performance is sensitive to the performance of the underlying
portfolio, which in turn depends on economic and credit conditions
that may change. The collateral manager's investment decisions and
management of the transaction will also affect the notes'
performance.

Additional uncertainty about performance is due to the following:

Portfolio amortisation: Once reaching the end of the reinvestment
period in April 2023, the main source of uncertainty in this
transaction is the pace of amortisation of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortisation could accelerate as a consequence of high loan
prepayment levels or collateral sales by the collateral manager or
be delayed by an increase in loan amend-and-extend restructurings.
Fast amortisation would usually benefit the ratings of the notes
beginning with the notes having the highest prepayment priority.

Weighted average life: The notes' ratings are sensitive to the
weighted average life assumption of the portfolio, which could
lengthen as a result of the manager's decision to reinvest in new
issue loans or other loans with longer maturities, or participate
in amend-to-extend offerings.  The effect on the ratings of
extending the portfolio's weighted average life can be positive or
negative depending on the notes' seniority.

In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.



=========
I T A L Y
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EVOCA SPA: Moody's Affirms 'B3' CFR, Outlook Remains Negative
-------------------------------------------------------------
Moody's Investors Service affirmed the B3 long term corporate
family rating and B3-PD probability of default rating of EVOCA
S.p.A. Concurrently, Moody's affirmed the B3 instrument ratings of
the EUR550 million guaranteed senior secured notes maturing in
November 2026. The outlook remains negative.

RATINGS RATIONALE

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects weak metrics for EVOCA's B3 rating,
given its leverage around 9.5x Moody's-adjusted debt/EBITDA and
negative free cash flow (FCF) estimated for 2022, compounded by
uncertainty about the speed of EVOCA's operating and financial
performance recovery, to date considerably slower than the agency
previously expected. The global economic slowdown and weak consumer
sentiment may delay the improvement further at the time when EVOCA
needs to improve its capital structure and build a liquidity buffer
before refinancing its 2026 maturities amid higher interest rates.
Presence of EUR210 million payment-in-kind (PIK) notes outside of
the restricted group increases EVOCA's refinancing risks as they
mature only six months after the company's notes. Refinancing the
entire capital structure would require significant expansion in the
company's earnings and FCF to enable a sustainable capital
structure including debt service with a higher debt load at higher
interest rates.

RATIONALE FOR THE RATINGS AFFIRMATION

The affirmation of EVOCA's ratings primarily reflects the company's
still adequate liquidity position, including no meaningful debt
maturities prior to 2026, which gives the company time for a
potential recovery in earnings and FCF, and to improve its capital
structure and build a buffer liquidity before refinancing amid
rising interest rates. Moody's expects EVOCA's FCF to turn slightly
positive in 2023 from negative in 2022 on the back of recovering
earnings and significantly lower working capital consumption as
supply chain difficulties ease. The company has an asset light
business model, which translates into relatively modest capital
spending requirements, and has hedged its exposure to floating
interest rate until November 2024. These considerations, combined
with profitability recovery, will support FCF generation and
interest coverage at around 1.8x in the next 12-18 months.

EVOCA demonstrated some progress on recovery with improved
profitability despite high inflation in 2022 and expects further
improvement in 2023 as a result of sales price increases
implemented from November 2022. The closure of its Gaggio Montano
plant in Italy in 2022 lowers the cost base, and with the
completion of production footprint rationalisation, EVOCA's
profitability will likely improve towards pre-pandemic levels in
2024.

Further earnings growth will depend primarily on the company's
ability to expand its operations in the emerging markets and
successfully launch new products, which would enable it to grow
faster than the average market rates.

LIQUIDITY

EVOCA has adequate liquidity. Moody's estimates that as of December
31, 2022, the company's liquidity comprised over EUR60 million in
cash supported by fully available EUR80 million long-term committed
revolving credit facility (RCF, due April 2026) and funds from
operations of around EUR50 million that Moody's expects the company
to generate in 2023. These liquidity sources will accommodate the
company's cash needs over the same period. Estimated cash
requirements include working cash, which is typically 3% of annual
sales, seasonal working capital swings, capital spending of around
EUR30 million (including R&D and lease principal payments). No
significant debt repayments are due until November 2026 when the
company's guaranteed senior secured notes mature.

The RCF has a springing net leverage covenant, which only will be
tested if the RCF drawn loans less cash and cash equivalents exceed
40% of revolving facility commitments. A breach would only result
in a drawstop of the facility. Moody's does not expect EVOCA to
face issues with covenant compliance through 2023.

STRUCTURAL CONSIDERATIONS

The EUR550 million guaranteed senior secured notes are rated B3, in
line with EVOCA's CFR. In a default scenario, the super senior
revolving credit facility ranks at the top of Moody's Loss Given
Default (LGD) waterfall, followed by the EUR550 million guaranteed
senior secured notes and trade payables at the second position. At
the time of issuance, the guarantors represented more than 70% of
the group's EBITDA. Moody's did not notch the notes below the
group's CFR based on the agency's view that the amount of the
revolving credit facility is not significant enough to warrant a
notching.

The EUR210 million PIK notes outside of the restricted group mature
six months after the guaranteed senior secured notes, are not
guaranteed by, do not cross-default with and do not have any
creditor claim on the guaranteed senior secured notes of the
restricted group and, therefore, are not included in Moody's
leverage calculation or the LGD waterfall.

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

Lack of evidence of earnings recovery back to pre-pandemic levels
and the expansion essential to support a sustainable capital
structure amid higher interest rates at refinancing would likely
result in a downgrade. Quantitatively, the ratings could be
downgraded if EVOCA's leverage remains above 6.5x Moody's-adjusted
debt/EBITDA, interest coverage declines to substantially below 1.5x
Moody's-adjusted EBITA/interest expense, or FCF remains
persistently negative, or if liquidity deteriorates.

An upgrade, which is currently unlikely, would require EVOCA to be
able to sustain its strong profitability, with its Moody's-adjusted
EBITA margin in high-teens and a healthy FCF generation, while
improving its Moody's-adjusted gross debt/EBITDA sustainably below
5.5x and interest cover above 2.0x Moody's-adjusted EBITA/interest
expense.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Headquartered in Bergamo, Italy, EVOCA S.p.A. is a global leader in
the production of professional coffee machines, and other hot and
cold beverage and food vending machines, with a particular focus on
espresso coffee, and a fast-developing presence in coffee machines
for the offices and food service agreements. The company is active
globally, and in the twelve months that ended September 30, 2022,
it generated around EUR400 million in revenue (20% company-adjusted
EBITDA margin), operating eight manufacturing sites. The company
has been owned by the private equity firm Lone Star since March
2016.



===========
P O L A N D
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KRUK SA: Moody's Assigns First Time 'Ba1' Corporate Family Rating
-----------------------------------------------------------------
Moody's Investors Service assigned a first-time Ba1 corporate
family rating to Kruk SA (KRUK), a publicly-listed debt purchasing
company with operations in Poland, Romania, Italy, Spain, Czech
Republic, Slovakia and Germany. The rating agency also assigned a
Ba2 long-term issuer rating to KRUK. The issuer outlook is stable.


RATINGS RATIONALE

The Ba1 CFR assigned to KRUK reflects the company's established
track record, with 25 years of operating performance in the debt
collection and debt purchasing sector, primarily focusing on Poland
and Romania, and increasingly expanding into Italy and Spain.
KRUK's main business focus is purchasing non-performing loans
(NPL), accounting for 90% of revenue, while debt collection
services to financial institutions and other clients' accounts for
3%. Consumer lending contributes 6% to the revenue. With an
estimated remaining amount of collections (ERC) of PLN12.1 billion
(approx. EUR2.5 billion) as of September 2022, KRUK is currently
positioned as the fifth-largest Moody's rated debt purchasing
company in Europe by ERC volume. The company's solid historic
profitability has been based largely on organic growth. KRUK's low
leverage, sizeable equity cushion and solid interest coverage are
additional credit strengths. The CFR incorporates the agency's
expectation that KRUK will continue to prudently execute its growth
strategy when expanding outside of its core markets.        

At the same time, the CFR positioning reflects KRUK's evolving
liquidity and funding profile, with significant reliance on secured
credit facilities and a focused, largely national investor base, as
well as earnings volatility inherent in the debt purchasing sector.
Further, the CFR also factors in Moody's view of the operating
environment for debt purchasing companies which offer a niche
product with relatively low risk of obsolescence. However, the
agency's assessment further considers legal and regulatory risks
inherent to the debt collection and debt purchasing sector to be
higher in some less mature NPL markets, particularly in Eastern-
and Southern-European countries.

The Ba2 issuer rating that Moody's assigned to KRUK reflects the
priorities of claims and asset coverage in the company's current
liability structure. In particular, the high proportion of KRUK's
secured bilateral and syndicated revolving credit facilities (RCF)
indicates higher loss-given default for senior unsecured instrument
classes, resulting in a positioning of the issuer rating one notch
below the company's Ba1 CFR.      

The assigned ratings also incorporate KRUK's environmental, social
and governance (ESG) considerations, as per Moody's General
Principles for Assessing Environmental, Social and Governance Risks
Methodology. Moody's assessment of KRUK's exposure to governance
risks is neutral-to-low and is reflected in a Governance Issuer
Profile Score (IPS) of G-2. This assessment is supported by KRUK's
public ownership structure, substantial track record of strong
financial performance, conservative financial policy and
disciplined growth approach. In line with Moody's general view for
the debt purchasing sector, KRUK has a highly negative exposure to
social risks as reflected in a Social IPS of S-4. Similar to other
debt purchasers, customer relations represent important social
considerations, given that institutions that sell both performing
and non-performing debt can be highly regulated (e.g. banks) and
rely on the companies' handling of customer data and privacy as
well as adherence to local regulatory expectations in terms of
"treating customers fairly". Adverse changes to regulatory rules
and legal practices within a market could also affect the recovery
processes and collection curves. KRUK's ESG Credit Impact Score of
CIS-3 indicates a moderately negative impact of ESG factors on the
assigned ratings, indicating that well-established governance
practices and track record help to mitigate but not to eliminate
social risks.

OUTLOOK

The outlook on KRUK is stable, reflecting the expectation that KRUK
will maintain its strong financial performance, particularly that
the company's profitability and leverage metrics will remain sound
and that there will be no near-term adverse changes related to debt
collection legislation in its core markets Poland or Romania.

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

KRUK's CFR could be upgraded if the company continues to maintain
its strong profitability without a substantial increase in
leverage, improves and diversifies its funding profile, and further
diversifies its geographic footprint, which would reduce the
company's exposure to regulatory risk in a given market.

An upgrade of KRUK's CFR would likely result in an upgrade of the
Ba2 issuer rating.

KRUK's CFR could be downgraded if the company's profitability and
leverage metrics will significantly deteriorate or in case of
implementation of adverse regulatory developments that would
significantly hurt the company's franchise in a given market.    

A downgrade of KRUK's CFR would likely result in a downgrade of the
Ba2 issuer rating.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Finance
Companies Methodology published in November 2019.

KRUK SA: S&P Assigns 'BB-' Issuer Credit Rating, Outlook Stable
---------------------------------------------------------------
S&P Global Rating assigned its 'BB-' long-term issuer credit rating
to Kruk S.A., a listed Poland-based distressed debt purchaser.

The stable outlook reflects S&P's expectation that Kruk will pursue
growth through continuous acquisitions of debt portfolios financed
by collection generated cash and additional debt, with its
financial profile remaining under control including cash-adjusted
leverage below 3.0x and coverage of interest by cash EBITDA above
4.0x.

Kruk has a Polish zloty (PLN) 12.1 billion (EUR2.5 billion) of
estimated remaining collections (ERCs) at Sept. 30, 2022, and is
mostly (90%) active in Eastern and Southern Europe (Poland,
Romania, Italy, and Spain).

Rating Action Rationale

S&P said, "Our rating reflects Kruk's expanding franchise and
consequent increasing financial leverage. We view Kruk as an
average scale European DDP, albeit steadily expanding since its
inception in 1998, with still lower business and geographical
diversification versus larger peers. Although leverage has been a
positive differentiator so far, we understand the company's growth
targets imply its financial risk will increase in the coming 24
months and already take this into account. Kruk had about PLN12.1
billion (EUR2.5 billion) in ERCs at Sept. 30, 2022 (12% compound
annual growth rate since 2017), which makes it a midsize player in
the industry, with close peers such as B2Holding, Arrow Global, and
Axactor (ERCs of EUR1.8 billion-EUR2.3 billion). Kruk has expanded
organically in its key markets over the past 25 years, building a
robust reputation and brand name. We consider positively its focus
on a few core markets, which has led to leading positions in these
geographies, although we acknowledge the lack of diversification
could damage business prospects in case of localized harsh
downturns. We expect growth to accelerate through an ambitious debt
portfolio investment strategy, without material changes in the
business mix or the geographical footprint, leading to
cash-adjusted debt to EBITDA of close to 3.0x by year-end 2024.

"The company's strategic focus on unsecured debt collections in key
countries leads to narrower business diversification than peers.
Kruk concentrates primarily on unsecured consumer finance debt
collection from its own investments (90% of revenue), supplemented
by consumer loans (6%) and debt servicing (3%). We understand there
is limited servicing potential in Poland and Romania, and that this
limited third-party servicing complements collection activity to
acquire loan data and build relationships with debt sellers when
available. Therefore, Kruk is an outlier compared with some peers
that are increasing their scale in capital-light servicing revenue
to limit their financial leverage. We believe business
diversification is important over the longer term, particularly by
business line, because it adds an element of stability if the
pricing of portfolios becomes uneconomical or the supply of debt
sold restricted. To diversify within unsecured lending, Kruk
acquired a digital company in 2019, Wonga, which offers consumer
short- and medium-term consumer loans in Poland. We understand
additional legal constraints in Poland will require a revamp of the
lending product offering to pursue future business. From a
geographical standpoint, Kruk operates in seven countries with four
main markets. Although volatile because it depends on investment
opportunities, the main share of revenue stems from the group's
home market, Poland (43%), then Italy (23%), Romania (19%), and
Spain (12%). Kruk is more diversified than other peers such as
iQera, which genrates 85% of its revenue from France, but much less
so than pan-European players such as Intrum and Lowell that operate
in over 20 locations. We don't expect Kruk to materially change its
footprint but assume it will consolidate its presence in non-Polish
markets.

"Kruk's demonstration of a long operating track record with sound
investment discipline, improving operating efficiency year-on-year,
and stable management, are supportive of our rating. Similar to
other DDPs, Kruk's reported EBITDA margin is estimated at about 63%
at year-end 2022, which is comparable with B2 Holding but above
Intrum and Lowell. The focus on a large volume of small unsecured
retail claims (below roughly PLN10,000 or EUR2,000) has the
advantage of increasing predictability of collection and decreasing
the risk of long legal procedures compared with larger secured
claims. Therefore, collection is usually less costly and quicker,
and these are simpler claims that can be automated. During the
first nine months of 2022, the share of online payments as a
percentage of total amicable collections was 60% in Spain, 41% in
Poland, 42% in Italy, and 29% in Romania, which supports
operational effectiveness. On the contrary, Kruk has a strategy of
amicable collection with in-person visits, which is costly from a
full-time-equivalent worker perspective, although it is probably
more efficient than the traditionally impersonal collecting method
of letters and calls. This allows for better recovery before moving
on to more costly legal proceedings. Continuous improvements in the
recovery process in recent years entail upside in collection
revenue for the years to come as the company recognizes it in
revaluations over time. Moreover, Kruk has a long track record of
resilient collection performance and sound back-book growth as a
result of gradual organic expansion into Spain and Italy. We view
positively this growth approach to achieve efficient operations and
scale before looking at new geographies. Furthermore, we believe
the company's current market positions in core geographies are key
to gaining continued access to large distressed debt portfolios,
allowing Kruk to continue deploying capital above its replacement
rate and underpinning future growth.

"We expect Kruk's financial profile to weaken over the next two
years on the back of an ambitious investment strategy, but still
compare well with its more leveraged peers.The company's plans to
continue deploying capital to strengthen its competitive position
in core markets will only be possible by attracting new debt on its
balance sheet. 2022 will be a record year for investments in the
debt portfolio, estimated at PLN2.4 billion (EUR510 million), which
would support growth in collection revenue of 5%-10% per year. We
estimate debt will increase on the back of further yearly
investments of about PLN1.8 billion in the next two years,
deteriorating financial leverage toward 2.6x gross debt to
cash-adjusted EBITDA by year-end 2024, and 4.6x on a
reported-EBITDA basis at the same date. This compares with 2.3x and
3.9x respectively at year-end 2022. Although we see leverage
increasing toward aggressive standards, it remains at the lower end
of the DDP peer spectrum, which is usually highly leveraged. It is
at a comparable level versus B2 Holding and Anacap, but lower than
Intrum, Lowell, or Axactor. Cash-adjusted EBITDA interest coverage
is expected to decrease to about 5x over the next two years. In
addition, debt to average tangible equity (ATE) is positive and we
expect it at about 1.3x over the next two years. This is a
differentiator compared to DDP peers that have negative debt-to-ATE
metrics due to a very high level of goodwill following years of
add-ons or transformative acquisitions.

"Kruk's absence of significant maturities until 2027 supports our
liquidity assessment. The company's largest debt maturity is in
2027, and we don't anticipate any issues given the long time ahead
to refinance if needed at that time, its strong name recognition in
Poland's debt market, and its sound relationships with local
banks.

"The stable outlook reflects our expectation that Kruk will display
resilient earnings and cash flows over the near term despite a more
challenging macroeconomic environment. We anticipate financial
leverage will gradually increase but remain contained for this
rating level, as the company focuses on an ambitious growth
strategy.

"We could lower the rating over the next 12 months if we see
significant delays in collections or material impairments leading
profitability and liquidity to deteriorate. This would translate in
the coverage of interest by EBITDA weakening below 4.0x and
adjusted leverage increasing above 3.5x--both metrics on a cash
basis.

"We could see rating upside in the medium term if the group
materially scales up its operation, with strong penetration in new
geographies and a wider diversification of business lines in
servicing, for instance, along with a conservative financial
leverage policy."

Company Description

Kruk S.A. is a DDP founded in 1998 and based in Poland. It has
mainly expanded through organic growth and now operates in Poland,
Romania, the Czech Republic, Slovakia, Germany, Italy, and Spain.
The group is listed on the Warsaw Stock Exchange and its founder
and CEO, Piotr Krupa, still holds a 9.5% stake.

Kruk derives 90% of its revenue from debt purchasing and
collection, 6% from consumer lending, and the rest from credit
management services and credit reference. The group's ERCs stood at
PLN12.1 billion at Sept. 30, 2022.

S&P's Base-Case Scenario

Assumptions

-- Portfolio acquisitions of PLN2.4 billion in 2022 and PLN1.8
billion yearly in 2023 and 2024, financed with available cash and
additional debt.

-- ERCs expand 28% in 2022 and 3%-8% a year in 2023-2024.

-- Solid collection rates in 2022-2023, in line with previous
years.

-- S&P factors in a portfolio revaluation of PLN378 million in
2022 and about the same amount in 2023 and 2024.

-- Total cash revenue increases about 21% in 2022 and 6%-8% in
2023-2024.

-- Total operational costs increase about 5%-7% per year.

-- S&P Global Ratings-adjusted cash EBITDA reaches about PLN2
billion by 2024.

-- Gross debt increases to about PLN5.3 billion in 2024, in line
with portfolio purchases.

Key metrics

For year-end 2024:

-- Gross debt to adjusted cash EBITDA of about 2.6x (approximately
4.6x when EBITDA is not adjusted for the add-back related to
portfolio amortization).

-- Funds from operations (FFO) to debt of about 30%.

-- Adjusted EBITDA interest coverage of 5.2x (about 2.9x when
EBITDA is not adjusted for the add-back from portfolio
collections).

-- Debt to tangible equity of about 1.3x.

Liquidity

S&P Said, "We view the key liquidity use to be portfolio purchases
and expect PLN1.8 billion of these over the next 12 months and
PLN1.8 billion for the year starting Jan. 1, 2024. We expect Kruk
to raise its net debt over the next 12 months to finance portfolio
purchases and further strengthen liquidity. We take the full amount
of planned deployments, not only the replacement rate, although
portfolio purchases can be scaled down as needed. In our view,
replacement capital expenditure (capex) is core to the business,
but there is flexibility to reduce growth capex."

Principal liquidity sources include:

-- Cash on the balance sheet of PLN200 million.

-- Headroom under the senior revolving credit facility (RCF) and
the lines of credit of approximately PLN967 million.

-- Cash generation net of cash interest and taxation of about
PLN1.55 billion.

-- Proceeds from the new bank loans amounting to PLN0.1 million.

Principal liquidity uses include:

-- Repayment of debt maturities of about PLN0.2 billion.

-- Portfolio purchases and operating capex of PLN1.7 billion.

-- Dividends of PLN210 million.

Covenants

Kruk is subject to maintenance covenants under its bond
documentation. S&P expects it will remain compliant with all
covenants under its base case.




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

AARTEE BRIGHT: High Court to Hear GFG Challenge Today
-----------------------------------------------------
Matthew Panter at Express & Star reports that the destiny of steel
supplier Aartee Bright Bar and the fight to save 250 jobs is
expected to become clearer today, March 15.

According to Express & Star, the High Court in Manchester will hear
a challenge by GFG Alliance against ABB's entry into
administration.

It has applied to overturn the administration process of Aartee
Bright Bar, which has its headquarters in Planetary Road,
Willenhall and a site in Dudley, Express & Star discloses.

ABB was bought by GFG on Feb. 23 after it went into administration
following a creditor dispute, Express & Star recounts.

It has since provided funding to cover wages to prevent a reduction
in jobs expected under the administration, Express & Star notes.

GFG, the parent company of Liberty Steel, says its rescue plan
would save 250 steel jobs at Planetary Road, the hot rolled bars
division at Peartree Lane, Dudley, and the distribution arm,
according to Express & Star.

It has applied to overturn the administration process and Jeffrey
Kabel, chief transformation officer of Linerty Steel, as cited by
Express & Star, said: "The administration has put 250 viable
skilled steel jobs across the UK in grave danger at a time when the
UK steel sector and its supply to strategic industries such as
defence and aerospace is already under severe strain.

"ABB has a route to survival.  It is a major customer of Liberty
Steel which itself has had to restructure its business to tackle
the challenge of high UK energy prices and volatile steel markets.
Supplying ABB is a significant part of our recovery programme.

"Since GFG Alliance acquired ABB's parent last month, we've
proposed a clear business plan to immediately end the
administration.

"Our plan will integrate ABB and Liberty Steel's Engineering Bar
divisions to ensure all its operations continue as a solvent going
concern.

"We guarantee that if the court supports GFG's application to
overturn the administration of ABB we will protect each and
everyone of ABB's 250 viable jobs.

"It would immediately be a superior outcome for creditors and
employees as opposed to a damaging insolvency process which risks a
fire sale of ABB's plant, equipment and landholdings, leading to
closure and redundancies."


AIRTH CASTLE: Enters Administration, Hotel Won't Be Sold
--------------------------------------------------------
Paul Smith at The Scottish Sun reports that jobs are at risk as a
luxury Scots hotel plunges into administration.

The owners of Airth Castle Hotel in Falkirk voluntary ceased
trading at 12:00 p.m. on Tuesday, March 14, with staff told they
face being made redundant, The Scottish Sun relates.

The owners of the hotel property, Airth Castle Limited, say that
the hotel will not be sold as a result of the operating company's
insolvency, The Scottish Sun discloses.

It's understood those with weddings booked at the venue have been
offered a refund or the option to choose from another venue owned
by the company, The Scottish Sun notes.

According to The Scottish Sun, a spokesperson for Airth Castle
Hotel Limited, said: "The Coronavirus pandemic had a major
financial impact on the operating company, as the hotel was forced
to close for an extended period.

"Then, as the energy crisis unfolded and supplier costs increased,
the company's level of debt reached unmanageable levels and we have
taken the reluctant decision to place the company into voluntary
liquidation.

"Regretfully, around 26 full-time staff, together with a number of
part-time staff, will be made redundant."


BIGCHANGE GROUP: Goldman Sachs Marks GBP870,000 Loan at 46% Off
---------------------------------------------------------------
Goldman Sachs BDC, Inc has marked its GBP870,000 loan extended to
Bigchange Group Limited to market at GBP470,000 or 54% of the
outstanding amount, as of December 31, 2022, according to a
disclosure contained in Goldman Sachs's Form 10-K for the fiscal
year ended December 31, 2022, filed with the Securities and
Exchange Commission on February 23, 2023.

Goldman Sachs BDC, Inc. is a participant in a First Lien Senior
Secured Debt Loan to Bigchange Group Limited. The loan accrues
interest at a rate of 9.43% (SN+6.00%) per annum. The loan matures
on December 23, 2026.

Goldman Sachs BDC, Inc. was initially established as Goldman Sachs
Liberty Harbor Capital, LLC, a single member Delaware limited
liability company, on September 26, 2012 and commenced operations
on November 15, 2012 with The Goldman Sachs Group, Inc. as its sole
member. On March 29, 2013, the Company elected to be regulated as a
business development company under the Investment Company Act of
1940, as amended. Effective April 1, 2013, the Company converted
from a SMLLC to a Delaware corporation.

In addition, the Company has elected to be treated as a regulated
investment company under Subchapter M of the Internal Revenue Code
of 1986, as amended, commencing with its taxable year ended
December 31, 2013. Goldman Sachs Asset Management, L.P., a Delaware
limited partnership and an affiliate of Goldman Sachs & Co. LLC, is
the investment adviser of the Company.

U.K.-based Bigchange Group Limited runs a job management platform.

BLACKMORE BOND: FCA Warns Investors About Fraudsters
----------------------------------------------------
Sally Hickey at FTAdviser reports that the Financial Conduct
Authority has warned Blackmore Bond investors about fraudsters
falsely claiming to be from a fund administration company and
promising to return their money.

In a statement on March 10, the FCA said it was aware of at least
one investor in Blackmore having received a letter falsely claiming
to be from Oak Fund Services, FTAdviser relates.

According to FTAdviser, the letter states that the company has been
successful in generating CGS Claims funding, and asking consumers
to contact them urgently.

The FCA said: "Oak have confirmed that they did not write this
letter and the contents are false and misleading.

"We are concerned that the letter is a scam."

The regulator urged consumers who received the letter not to call
the telephone number or email address given and instead contact Oak
directly, FTAdviser notes.

Blackmore Bond was set up in 2016, and until 2018 ran an investment
scheme where potential clients were offered mini-bonds with an
attractive level of interest, FTAdviser recounts.

These products, as well as Blackmore itself, were unregulated and
neither had to adhere to the FCA's rules and regulations, FTAdviser
states.

The company raised millions of pounds from investors to fund
property developments, but fell into administration in April 2020
after several months of rocky waters in which it failed to pay
interest due to bondholders, FTAdviser recounts.

Some 2,000 investors were deprived of GBP46 million, much of which
was never recovered, FTAdviser discloses.


BRITISHVOLT: Owed Up to GBP160 Million at Time of Collapse
----------------------------------------------------------
Peter Campbell, Harry Dempsey and Michael O'Dwyer at The Financial
Times report that Britishvolt began planning for a possible
insolvency as early as last summer, according to newly released
documents that show the battery start-up owed up to GBP160 million
to unsecured creditors when it collapsed in January.

EY -- which advised the battery group on its business strategy --
said it expected to rack up GBP3.5 million in fees running the
administration process, a sum likely to draw further scrutiny over
the Big Four firm's dual involvement, the FT relates.

Britishvolt collapsed in January after months limping between
lifeline financing rounds, and has since been sold to Australia's
Recharge Industries for just GBP8.6 million, the FT recounts.

The documents released by EY on March 14 reveal the huge debts
incurred by the UK's hope for a national battery champion as its
plans to raise GBP800 million fell flat last year, the FT
discloses.

Britishvolt called in a team from EY in August to do "liquidity
analysis and high-level contingency planning work to understand its
potential restructuring and insolvency options as a fallback plan",
the documents show, the FT notes.

It launched an official hunt for a rescue buyer a month later,
becoming mired in a constant search for short-term funds before
finally bowing to financial pressure in January, the FT relates.

It collapsed owing between GBP130 million and GBP160 million, a sum
close to the GBP167.5 million in funds it had raised in equity --
and spent -- since it was founded in 2019, according to the FT.
The company had just GBP1.8 million on the day it folded, the FT
states.

Among unsecured creditors, who the administrators expect to receive
a payout of less than 1p in the pound, Britishvolt owed more than
GBP10 million to a plethora of consultants and advisers including
GBP2.9 million to McKinsey and GBP1.4 million to AlixPartners, the
FT discloses.  Before taking on its role as administrator, EY was
already owed GBP4 million as an unsecured creditor for its work
advising the company, according to the FT.

The filings also lay out the scale of the challenge facing new
owner Recharge Industries if it is to develop a battery gigafactory
at the failed company's Northumberland site, the FT notes.

Among Britishvolt's largest creditors was London-listed commodities
trader Glencore, which was owed GBP26 million in loans and
convertible notes, the FT states.

Recharge Industries was given an extension until the end of this
month to pay GBP9.7 million to secure the land in north-east
England, the FT recounts.

EY, as cited by the FT, said that given its own status as an
unsecured creditor, it planned to hire another firm to run the
liquidation of the company in future in the event there was enough
cash to make any payment to unsecured creditors.


GALAXY FINCO: Moody's Affirms 'B2' CFR & Alters Outlook to Stable
-----------------------------------------------------------------
Moody's Investors Service has affirmed the B2 corporate family
rating and B2-PD probability of default rating on Galaxy Finco
Limited, which is an intermediate holding company of Domestic &
General Group Holdings Limited (D&G or the group), as well as the
Caa1 rating of its backed senior unsecured notes. D&G is a
Jersey-domiciled provider of subscription-based appliance care for
the home. Concurrently, Moody's has affirmed the B2 rating of the
backed senior secured notes issued by Galaxy Bidco Limited, the
immediate subsidiary of Galaxy Finco Limited. The outlook for both
issuers has been changed to stable from negative.

RATINGS RATIONALE

The change in outlook to stable reflects improving leverage as
D&G's profitability and cashflow benefits from business growth and
operating efficiencies arising from its digital transformation
initiatives and growing subscription revenues.

Furthermore, the group has made progress on its expansion into the
US market and the risk of significant cost overruns related to this
has decreased. D&G has reported strong revenue growth supported by
its significant base of subscription revenue that has been
resilient through the recent challenging operating environment.
While the group's profitability remains challenged by its cost
profile, its steady growth in revenue will increasingly enable it
to improve profitability relative to its fixed costs and enable it
to further reduce leverage and strengthen its financial profile.

D&G's debt-to-EBITDA leverage (Moody's calculation) decreased to
7.2x on a gross basis at March 31, 2022, from 7.5x for the prior
year-end as rising EBITDA caused leverage to fall. Leverage
improved further in 2023 with D&G's adjusted net debt-to-EBITDA
leverage declining to 5.7x at December 31, 2022, down from 6.1x on
the same basis at March 31, 2022, as its digital transformation
efforts translate into increased EBITDA and its nascent US business
moves closer to break-even profitability.

D&G maintains good liquidity, including unrestricted cash of
GBP68.8 million at December 31, 2022 and a GBP100 million undrawn
bank facility in place until 2026. In addition, D&G's next debt
maturity date is only in 2026, allowing it sufficient time to
implement its plans ahead of a possible debt refinancing.

The affirmation of the B2 CFR reflects the group's strong market
position in the UK, and growing franchise in Europe, strong revenue
visibility driven by good retention rates and new business growth
and a solid track record of stable EBITDA growth through the
economic cycle. D&G was not significantly impacted by the economic
effects of coronavirus or current economic weakness in the UK, with
new business and renewal retention levels remaining strong,
demonstrating the strength of its franchise and stable revenue
base.

DEBT RATINGS

The B2 instrument ratings on the backed senior secured notes are in
line with the CFR, which reflects their ranking ahead of the backed
senior unsecured notes, but behind the super senior RCF. The backed
senior unsecured notes, issued by Galaxy Finco Limited, are rated
Caa1, which reflects their junior ranking within the capital
structure.

The B2-PD probability of default rating is in line with the B2 CFR
reflecting Moody's assumption of a 50% recovery rate typical for
transactions including a mix of bank debt and bonds.

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

Moody's stated that the following factors could lead to an upgrade
of the ratings (i) gross debt-to-EBITDA leverage (Moody's
calculation) remaining below 6x on a sustainable basis and (ii)
demonstrated ability to sustain positive free cashflow generation.

Conversely, the ratings could be downgraded in the event of D&G not
being able to realize expected growth and profitability targets and
leverage remaining above 7x for a prolonged period. Furthermore,
meaningful deterioration in D&G's free cash flows and liquidity,
beyond its current business plan expectations could place negative
pressure on the ratings.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Insurance
Brokers and Service Companies published in June 2018.

INTERNATIONAL GAME: Moody's Ups CFR & Senior Secured Notes to Ba1
-----------------------------------------------------------------
Moody's Investors Service upgraded International Game Technology
PLC's ("IGT") Corporate Family Rating to Ba1 from Ba2, Probability
of Default Rating to Ba1-PD from Ba2-PD, and existing rated senior
secured notes to Ba1 from Ba2. The company's Speculative Grade
Liquidity rating was upgraded to SGL-1 from SGL-2 and the outlook
is stable.

The Ba1 CFR reflects the continued strong performance of the
company's operations, including a resilient lottery segment, with
continued recovery and growth in the company's gaming operations
and the company's digital and sports betting business. The
operating performance, coupled with debt reduction largely
facilitated by the 2021 sale of the company's business to consumer
Italian gaming business and 2022 sale of the Italian commercial
services business and prudent expense management have resulted in a
reduction in debt-to-EBITDA leverage, which Moody's expects to be
near 3.5x, supportive of the Ba1 rating. The upgrade of the
speculative grade liquidity rating to SGL-1 reflects the company's
very good liquidity, with positive free cash flow, sizable
revolving credit facility availability, and good covenant
compliance cushion.

Upgrades:

Issuer: International Game Technology PLC

Corporate Family Rating, Upgraded to Ba1 from Ba2

Probability of Default Rating, Upgraded to Ba1-PD from Ba2-PD

Speculative Grade Liquidity Rating, Upgraded to SGL-1 from SGL-2

Senior Secured Regular Bond/Debenture, Upgraded to Ba1 (LGD3) from
Ba2 (LGD3)

Outlook Actions:

Issuer: International Game Technology PLC

Outlook, Remains Stable

RATINGS RATIONALE

International Game Technology PLC's Ba1 CFR reflects the
improvement of the company's operations and debt reduction, which
have resulted in debt-to-EBITDA leverage expected to be maintained
at or below the 3.5x range. IGT's credit profile benefits from a
large and relatively stable revenue base, with more than 80%
achieved on a recurring basis, and high barriers to entry. Further
support is provided by the company's vast gaming-related software
library and multiple delivery platforms, as well as potential
growth opportunities in IGT's lottery, land-based gaming, digital
gaming, sports betting, and iLottery products. IGT, through its
joint venture with minority partners, is concessionaire of the
world's largest instant ticket lottery (Italy) and Italy's draw
based lottery and holds facility management contracts with some of
the largest lotteries in the US. The lottery contracts provide a
stable and recurring source of free cash flow with strong
resilience demonstrated during the pandemic. Revenues are largely
tied to the volume of gaming machine play and lotteries. Gaming is
cyclical and dependent on discretionary consumer spending. The
company can reduce spending on game development and capital
expenditures when revenue weakens, but the need to retain a skilled
workforce to maintain competitive technology contributes to high
operating leverage on the gaming operations business.

IGT is focused on accelerating growth by investing in various
lottery contract extensions and in digital and betting. Lottery
renewals require capital and some significant upfront cash payments
(Italian contracts). These factors along with the company's
shareholder dividend and minority interest dividends will create
considerable uses of cash in the future.

The company's speculative-grade liquidity rating is SGL-1. IGT's
very good liquidity reflects unrestricted cash of approximately
$590 million as of December 31, 2022, with a largely undrawn
revolver with over $1.8 billion of availability that expires in
2027. As of the quarter ended December 2022, the company is subject
to a 5.25x net leverage covenant (with step-downs) and an EBITDA to
total net interest costs ratio of 3.0x. Moody's projects the
company will have good cushion within the covenants.

The stable outlook considers Moody's expectation that the sustained
performance the business exhibited in 2022 will continue over the
next few years. The stable outlook also incorporates the company's
good liquidity and Moody's expectation for debt-to-EBITDA leverage
to be maintained at or below the 3.5x level.

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

The ratings could be upgraded if operations continue to improve
such that debt-to-EBITDA leverage is sustained below 3.0x.
Consistent and meaningfully positive free cash flow while and a
commitment to maintaining low leverage levels would also be
required for an upgrade.

Ratings could be downgraded if liquidity deteriorates, if Moody's
anticipates IGT's earnings to decline or there are reductions in
discretionary consumer spending. Debt-to-EBITDA leverage sustained
over 3.75x could result in a downgrade.

The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.

International Game Technology PLC is a global leader in gaming,
from Lotteries and Gaming Machines to Sports Betting and Digital.
The publicly traded company operates under three business segments:
Global Lottery, Global Gaming, and PlayDigital. The company is
publicly traded and consolidated revenue for the last twelve-month
period ended December 31, 2022 was approximately $4.2 billion.
International Game Technology has corporate headquarters in London,
and operating headquarters in Rome, Italy; Providence, Rhode
Island; and Las Vegas, Nevada.

LONDON CAPITAL: Creditors Set to Receive Lower Dividends
--------------------------------------------------------
Adam Riches at Peer2Peer Finance News reports that London Capital &
Finance (LCF) creditors are set to receive lower dividends due to
the declining value of a holding in a North Sea gas company, while
administration fees head towards GBP8 million.

The latest update from the administrator Evelyn Partners noted a
recent 88% drop in the share price of Aim-listed Independent Oil
and Gas, which it said is one of the collapsed mini-bond holder's
"main indirect assets", Peer2Peer Finance News relates.

As a result, it has revised down its dividend estimates, Peer2Peer
Finance News notes.

"At the outset of the administration, it was estimated that secured
creditors would eventually receive at least 25% of the funds owed
to them," the report, as cited by Peer2Peer Finance News, said,
which was filed with Companies House.

"However, this estimate needs to be adjusted downwards due to the
circa 88% reduction in the IOG share price in recent times . . . it
is appropriate for the LCF joint administrators to adjust downwards
the estimated total LCF dividend rate to 20%."

Administrator fees have risen to GBP7,921,721, according to the
report, which covered the period of July 30, 2022, to January 29,
2023, Peer2Peer Finance News discloses.

Evelyn Partners reiterated its estimate that fees would hit
GBP9,090,855 by the end of the fifth year of the administration, on
January 29, 2024, Peer2Peer Finance News relays.

LCF issued mini-bonds to retail investors, saying the money was to
be invested in a large range of small and medium-size companies,
Peer2Peer Finance News discloses.  It later emerged that it
invested in just a handful of firms, some of which were linked to
associates of LCF, Peer2Peer Finance News notes.

The firm went into administration in January 2019 owing GBP230
million-plus to more than 11,500 bondholders, Peer2Peer Finance
News recounts.


MODE GLOBAL: To Enter Into Administration, April 5 CVA Meeting Set
------------------------------------------------------------------
Anthony O. Goriainoff at Dow Jones Newswires reports that Mode
Global Holdings PLC said its subsidiary Mode Global Ltd., or MGL,
won't be able to pay its liabilities as they fall due and that it
will enter into administration.

According to Dow Jones, the London-listed fintech company said MGL
won't be able to recover amounts due from the group's subsidiaries
Fibermode Ltd., Greyfoxx Ltd., and JGOO Ltd.

The company said MGL employed all staff and contracted for all
operational costs on behalf of the trading companies, Dow Jones
relates.

Mode Global also said that it has requested that Antony Batty, of
Antony Batty & Company LLP, act as a nominee of Company Voluntary
Arrangement proposals and file them in court, Dow Jones notes.

It added that its directors will continue looking to extract value
and seek out options for the group's future, and that meetings of
creditors to consider the CVA proposals will be held on April 5,
Dow Jones discloses.

"The board of MGL will continue to engage with its creditors to
ensure the process is as smooth as possible," Dow Jones quotes the
company as saying.



ROLLS-ROYCE PLC: S&P Upgrades ICR to 'BB', Outlook Positive
-----------------------------------------------------------
S&P Global Ratings raised its long-term issuer credit rating on
Rolls-Royce PLC to 'BB' from 'BB-' and affirmed the 'B' short-term
rating. Additionally, S&P raised the issue rating on Rolls-Royce's
senior unsecured debt to 'BB' from 'BB-'. The recovery rating
remains '3' (rounded estimate: 65%).

S&P said, "The positive outlook reflects that we could raise the
ratings in the next 12-18 months if we see a positive track record
of strong and sustainable FOCF generation comfortably in excess of
GBP600 million, with FFO to debt sustainably above 45%.

"Rolls-Royce posted a strong operating performance in 2022, and we
anticipate this positive momentum will continue into 2023. The
group's 2022 operating performance and cash flow generation were
ahead of our previous expectations. Revenues grew by 20.5% to about
GBP13.5 billion and adjusted EBITDA margins improved by about 50
basis points to roughly 12.8%." Improved profitability was
supported by higher spare engine profits, a higher level of
contract catch-ups, and onerous provision releases, offset by the
absence of a GBP140 million foreign exchange revaluation tailwind.
Rolls-Royce also applied proceeds from disposals, including ITP
Aero, to repay its GBP2 billion UKEF-backed facility, resulting in
lower gross debt. Adjusted debt to EBITDA improved to 2.2x (from
4.1x in 2021) and FFO rose to about 33% (from 15.2% the prior
year). The increase in wide-body engine flying hours--as demand for
international travel recovered towards pre-pandemic levels--and
increased aftermarket activity bolstered the group's cash flows,
with FOCF exceeding GBP600 million for the year. Business aviation
activity remains above 2019 levels.

The continued recovery in wide body flying hours, coupled with the
long-term service agreements (LTSAs) in place, should support FOCF
generation comfortably in excess of GBP600 million in 2023. More
than 90% of the group's Trent engines (all types) are on LTSAs. Its
fleet of large, new generation engines has an average age of about
four years and most of its Trent 700 engine fleet, installed on
A330 aircraft, are between five and 15 years old. This bodes well
for the group, given how focused airlines are on efficiency. In
2023, the group's cash flows should be boosted by cash receipts
from the continued recovery of wide-body engine flying hours, but
weighed on by cash costs related to the Trent 1000 engine
remediation (about GBP100 million per year in 2023 and 2024),
foreign exchange hedge close out cash costs of GBP389 million in
2023, about GBP100 million relating to disruption from supplier
fires, and a similar amount for provisions for onerous contracts.
S&P expects the group's capital expenditure (capex) for 2023 will
be similar to that in 2022, roughly GBP600 million (including
capitalized research and development costs).

The defense business should continue to exhibit some revenue growth
and a gradual improvement in operating profit margins. Rolls-Royce
has strong revenue visibility in its defense business, given the
long-term contracts in place. S&P said, "We expect the group will
benefit from new contract wins as a result of increased defense
spending from governments, particularly in Europe since the start
of the Russia-Ukraine conflict, and because leading NATO members
continue to urge their counterparts to increase defense spend
toward 2% of national GDP. However, we expect new contract wins
will only bear fruit in the longer term. In 2023, we expect the
group's defense revenues to rise by up to 5%, above GBP3.7 billion,
with operating margins remaining close to 12%, similar to last
year."

S&P said, "The power systems business benefitted from a record
order intake in 2022, and despite some exposure to potential
disruption from gas supply constraints, we expect continued growth
in this division. Order intake grew 29% in 2022, with a strong
demand in power generation, including mission critical backup
power. We expect revenues from this business will rise in 2023,
although at a slower rate, toward GBP3.5 billion from GBP3.3
billion in 2022, with 76% of 2023 revenue already covered by
orders." Operating profit margins should remain at least 8%-9%
(with management guiding to some potential margin upside). The
large operational footprint in Germany exposes the power systems
business to possible gas supply restrictions from Russia and, while
there is risk in terms of wider political and macroeconomic
factors, management has researched how much it can reduce gas
consumption without affecting production and acted on this.
Overall, Rolls-Royce has already reduced its power systems
segment's gas consumption by about 25% since the start of the
Russia-Ukraine conflict.

S&P said, "The positive outlook reflects that we could raise the
ratings in the next 12-18 months if we see a positive track record
of strong and sustainable FOCF generation in excess of GBP600
million, with FFO to debt sustainably above 45%.

"We could revise the outlook to stable or lower the ratings if
revenues and EBITDA generation were significantly affected by
potential reductions in engine flying hours, potential supply chain
bottlenecks, or cost inflation, leading to a reduction in adjusted
margins below 12% or much lower than anticipated free operating
cash flow in 2023. We could also consider a negative rating action
if leverage increased above 4x or FFO to debt approached 30%.

"We could raise the ratings if we see evidence of continued robust
positive FOCF generation in excess of GBP600 million per year,
supported by a further improving operational performance, leading
to increasing profitability and EBITDA margins sustainably above
12%. We would also expect leverage to remain below 2x and FFO to
debt to remain sustainably above 45%, given the inherent volatility
of the business during the pandemic, and a supportive financial
policy demonstrating further deleveraging including gross debt
reduction."

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


SILICON PRACTICE: Bought Out of Administration
----------------------------------------------
James Cook at Business Leader reports that Silicon Practice
Limited, the internet marketing service based in Swindon, has been
acquired after falling into administration.

Rob Coad and Sam Talby, insolvency practitioners at undebt.co.uk,
were appointed joint administrators of the firm and helped to
oversee the acquisition, Business Leader relates.

According to Business Leader, with the collaboration of key
stakeholders, the two administrators were able to preserve the
business and essential digital health services of the company and
preserve all 24 jobs through the sale of the business and assets
via a "pre pack".

It is also estimated that the preferential claims of HMRC will be
paid in full and dividends to ordinary creditors will be made in
due course, Business Leader states.

Shakespeare Martineau acted as legal adviser to Rob Coad and Sam
Talby and PDS Valuers assisted in the marketing and sale of the
business and assets, Business Leader discloses.

If they had not been able to sell via this methodology, insolvent
liquidation would have been the only alternative with zero return
to creditors, redundancies, and disruption to digital services,
Business Leader notes.



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

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

Copyright 2023.  All rights reserved.  ISSN 1529-2754.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Europe subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 215-945-7000.


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