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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, May 31, 2023, Vol. 24, No. 109

                           Headlines



F R A N C E

CASINO GUICHARD: CDS Panel Asked on Bankruptcy Credit Event


G E R M A N Y

ADLER PELZER: Moody's Affirms 'B3' CFR & Alters Outlook to Stable
BEFESA: S&P Affirms 'BB+' LT ICR & Alters Outlook to Negative
E-CARAT 10: S&P Affirms 'CCC+' Rating on Class G-Dfrd Notes
WEPA HYGIENEPRODUKTE: Moody's Alters Outlook on 'B1' CFR to Stable


I R E L A N D

ALBACORE EURO V: S&P Assigns B- Rating on Class F Notes
PALMER SQUARE 2023-1: S&P Assigns Prelim. B- Rating on F Notes


I T A L Y

ALITALIA: Terms of Third Call for Submission of Offers Amended
SESTANTE FINANCE 4: S&P Affirms 'D(sf)' Rating on Cl. B Notes


K A Z A K H S T A N

FREEDOM FINANCE: S&P Ups ICR to 'BB-' on Improving Capitalization


P O R T U G A L

EMPRESA DE ELECTRICIDADE: Moody's Ups CFR to Ba3, Outlook Positive


U N I T E D   K I N G D O M

304 CLOTHING: Bought Out of Administration by LID CLO
DAYLIGHT ENERGY: Insolvency Service May Launch Investigation
DE TRAFFORD NO1: Goes Into Administration
JAGUAR LAND: Moody's Affirms B1 CFR & Alters Outlook to Positive
NANOSYNTH GROUP: To Enter Into Creditors' Voluntary Liquidation


                           - - - - -


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F R A N C E
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CASINO GUICHARD: CDS Panel Asked on Bankruptcy Credit Event
-----------------------------------------------------------
Chiara Elisei at Reuters reports that an investor has raised a
question with a CDS panel on whether a bankruptcy credit event has
occurred in respect to Casino Guichard Perrachon, potentially
starting the process for a payout on the company's credit default
swaps.

The French retailer announced on May 26 it entered court-backed
talks with creditors, Reuters relates.

The derivatives committee has not yet consented to accept the
question, the statement added, which is a first step in the process
to determine whether the credit event had occurred, Reuters notes.




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

ADLER PELZER: Moody's Affirms 'B3' CFR & Alters Outlook to Stable
-----------------------------------------------------------------
Moody's Investors Service has affirmed the B3 long term corporate
family rating and B3-PD probability of default rating of German
auto parts supplier Adler Pelzer Holding GmbH. Moody's further
affirmed the B3 ratings on the group's EUR400 million backed senior
secured notes due April 2027 and withdrew the B3 instrument ratings
on the EUR350 million and EUR75 million senior secured notes due
2024 following their redemption. The outlook has been changed to
stable from negative.

On May 22, 2023, Adler Pelzer successfully completed the
refinancing of its aggregate EUR425 million 4.125% senior secured
notes due April 2024. The refinancing was funded with EUR370
million net proceeds from EUR400 million backed senior secured
notes due April 2027 and a EUR120 million equity injection in the
form of a subordinated shareholder loan (SHL). The cash sources
from the transaction will be further used to repay an existing
EUR40 million super senior term loan due June 2023, EUR11 million
of other short-term bank borrowings, transaction costs and for
general corporate purposes.

The transaction also comprised a EUR55 million super senior
revolving credit facility (SSRCF), maturing in October 2026.

RATINGS RATIONALE

The rating action follows Adler Pelzer's successful issue of 9.5%
EUR400 million backed senior secured notes due April 2027 on May
19, 2023. Net issue proceeds of EUR370 million, which were EUR20
million higher than Moody's had anticipated when affirming the B3
ratings on May 10, 2023, and a new EUR120 million SHL have been
used to repay the group's aggregate EUR425 million senior secured
notes due April 2024, an existing EUR40 million super senior
secured term loan (maturing in June 2023), EUR11 million of other
short-term borrowings, EUR8 million transaction costs and for EUR6
million general corporate purposes.

The stabilization of the previously negative outlook recognizes
Adler Pelzer successful refinancing in a challenging market
environment, which significantly improved its short-term liquidity
to an adequate level. The liquidity is further bolstered by the
group's new EUR55 million SSRCF and still-sizeable cash position of
over EUR230 million post the refinancing, pro forma as of December
31, 2022.

The rating affirmation reflect the group's modest leverage for the
B3 rating category, which the rating agency expects at just below
4.5x Moody's-adjusted debt/EBITDA at year-end 2023, based on a
treatment of the EUR120 million shareholder loan as 100% equity,
which is subordinated to all other debt of the group and matures 14
months after the maturity of the senior debt.

Moody's recognizes Adler Pelzer's solid financial performance in
2022, as shown by group revenue climbing to EUR2.1 billion (+18%
year-over-year at constant perimeter) and EUR166 million of
reported EBITDA (+15%). Based on preliminary financial results, the
group's revenue and EBITDA continued to increase by around 18.9%
and its EBITDA by approximately 75% yoy in the first two months of
2023. Moody's forecasts Adler Pelzer's topline and earnings to
further recover this year, reflecting its sizeable order backlog
that continues to provide good visibility, anticipated
mid-single-digit growth in global light vehicle sales and
additional compensation for input cost inflation via price
increases. Considering the 9.5% coupon of the backed senior secured
notes, compared with 4.125% of the refinanced senior secured notes,
however, the group's interest burden will increase, lowering its
interest cover to a weak level for the B3 rating category initially
(around 1.1x Moody's-adjusted EBITA/interest expense expected for
2023) and weighing on Moody's-adjusted free cash flow (FCF), which
the rating agency expects to be modestly negative in 2023 and
2024.

The affirmed B3 CFR continues to reflect as credit challenges the
group's exposure to volatile commodity prices, which increased and
could not entirely be passed on to customers in 2022; exposure to
the cyclicality of the automotive industry, which has faced
sluggish and volatile production on prolonged material shortages in
2022, as well as challenges from tightening emission regulations
and rising investments in new drivetrain technologies; Moody's
forecast of slowing economic growth, continued high inflation and
geopolitical risks, potentially weighing on consumer sentiment this
year; and limited FCF generation due to growth investments and the
higher interest burden after the refinancing.

The CFR positively incorporates Adler Pelzer's position as a
leading automotive supplier of products for noise, vibration and
harmonics (NVH) applications in light vehicles and trucks;
long-term and well-established relationships with a diverse mix of
automotive original equipment manufacturers (OEMs); history of
revenue growth in excess of global light vehicle production;
positive exposure to the trend towards electrified vehicles; a
sizeable EUR12.1  billion order book for the period 2023-2032 as of
December 31, 2022; and a general commitment of the main shareholder
to support the group, if needed.

LIQUIDITY

Adler Pelzer's liquidity significantly improved after the
refinancing to an adequate level. This assessment primarily
reflects the elimination of previously looming refinancing risk.
Besides the remaining substantial cash position of over EUR230
million at completion of the refinancing (pro forma as of December
31, 2022), Adler Pelzer's cash sources further comprise its EUR55
million SSRCF, maturing in October 2026. While Moody's projects
moderate negative Moody's-adjusted FCF for 2023, due to the
increasing interest costs, working capital needs and capital
spending of around 3.5% of sales (plus about EUR40 million of
annual lease payments), the group's FCF should turn positive again
from 2025.

As stipulated in the SSRCF agreement, Adler Pelzer needs to comply
with one financial covenant (net leverage), under which Moody's
expects the group to maintain adequate headroom.

STRUCTURAL CONSIDERATIONS

In Moody's loss-given-default (LGD) assessment, the backed senior
secured notes, which are guaranteed by material subsidiaries of the
group and benefit from an improved security package, will rank
junior to the new SSRCF as well as certain borrowings at the level
of non-guaranteeing subsidiaries. Borrowings of guaranteeing
subsidiaries and trade payables rank in line with the notes as the
most significant senior debt, followed by unsecured pensions and
short-term lease commitments. The subordinated shareholder loan is
excluded from the LGD assessment given Moody's treatment of the
instrument as equity.

Based on Moody's 50% standard recovery assumption for capital
structures consisting of bank and bond debt, the backed senior
secured notes are rated B3 in line with the CFR.

ESG CONSIDERATIONS

Moody's governance assessment for Adler Pelzer incorporates its
leveraged capital structure, high risk tolerance, as illustrated by
relatively late refinancing (less than one year before maturity)
that previously constrained its liquidity, and concentrated
ownership and board structure. The rating action positively factors
in Adler Pelzer's improved liquidity and modest leverage for the B3
rating category after the refinancing. Moody's also acknowledges
the strong support through sizeable equity contributions by Adler
Pelzer's shareholders as part of the transaction.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook balances Adler Pelzer's improved liquidity after
the May 2023 refinancing with Moody's expectation of an initially
weak interest coverage and negative FCF generation in 2023 and
2024.

That said, Moody's acknowledges the group's reduced leverage after
the refinancing and currently recovering operating performance,
which might result in further positive rating pressure building
over the next few quarters.

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

For positive rating pressure to build, Adler Pelzer would need to
demonstrate its ability to pass on likely further rising input
costs to its customers, supporting its profitability to gradually
strengthen over the next few quarters. Moreover, Moody's would
consider an upgrade, if Adler Pelzer's (1) Moody's-adjusted EBITA
margin returned to at least 4%, (2) leverage reduced to sustainably
below 4.5x Moody's-adjusted debt/EBITDA, (3) interest coverage
increased towards 2.0x (4) Moody's-adjusted FCF turned positive,
supporting consistent adequate liquidity.

Moody's could downgrade Adler Pelzer's ratings, if its (1)
Moody's-adjusted EBITA margin decreased to below 3%, (2) leverage
exceeded 5.5x Moody's-adjusted debt/EBITDA, (3) Moody's-adjusted
interest coverage remained constantly below 1.25x EBITA/interest
expense, (4) Moody's-adjusted FCF turned sustainably negative.

LIST OF AFFECTED RATINGS

Issuer: Adler Pelzer Holding GmbH

Affirmations:

LT Corporate Family Rating, Affirmed B3

Probability of Default Rating, Affirmed B3-PD

BACKED Senior Secured Regular Bond/Debenture, Affirmed B3

Withdrawals:

Senior Secured Regular Bond/Debenture, previously rated B3

Outlook Actions:

Outlook, Changed To Stable From Negative

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Automotive
Suppliers published in May 2021.

COMPANY PROFILE

Adler Pelzer is a global automotive supplier, headquartered in
Hagen, Germany. The group is a global leader in the design,
engineering and manufacturing of acoustic and thermal components
and systems for light passenger vehicles and trucks.

Its largest product portfolio is for passenger compartments, and
includes floor trim, door shields, seals, and felt and foam
insulation parts. Adler Pelzer also produces panels and trims for
the engine compartment and the trunk. In 2022, the group generated
revenue of EUR2.1 billion and EBITDA of EUR166 million. Adler
Pelzer is a wholly owned subsidiary of Adler Group S.p.A., owned by
Adler Plastic S.p.A. (71.93% share) and Japanese Hayashi Telempu
Corporation (28.07%). Adler Plastic S.p.A. is owned by members of
the Scudieri family (a 35% direct stake), and the joint-venture
Global Automotive Interior Alliance (GAIA) with a 65% stake, of
which the family owns a 61.58% share and Hayashi Telempu
Corporation the remaining 38.42%.


BEFESA: S&P Affirms 'BB+' LT ICR & Alters Outlook to Negative
-------------------------------------------------------------
S&P Global Ratings revised its outlook on European steel dust
recycler Befesa to negative from stable. At the same time, S&P
affirmed its 'BB+' long-term issuer credit rating on Befesa as well
as its 'BB+' issue ratings on the secured debt.

The negative outlook reflects the possibility of a downgrade in the
next 12 months if EBITDA falls below EUR200 million in 2023 without
an obvious recovery in 2024.

S&P said, "We expect cost pressures will persist for Befesa in
2023. The company reported weaker than expected S&P Global
Ratings-adjusted EBITDA of about EUR179 million in 2022, compared
with our expectations of EUR230 million-EUR250 million (EUR180
million in 2021). Subdued profitability levels continued into the
first quarter of 2023, with S&P Global Ratings-adjusted EBITDA of
just EUR49 million. The 2022 results were driven by some business
outages, inflation on raw material costs, and exceptional costs
related to the acquisition of U.S. zinc refinery assets. This
translated into adjusted leverage of about 3.5x for 2022, compared
with a level of 2x-3x that we view as commensurate with the current
rating.

"Under our revised base case, we expect the company will report S&P
Global Ratings-adjusted EBITDA of EUR190 million-EUR210 million in
2023. This will translate into discretionary cash flow of negative
EUR35 million-EUR45 million, and our adjusted debt to EBITDA of
slightly above 3.0x in 2023. Our base case is mainly driven by
higher costs, i.e., persistent coke prices and unfavorable
treatment charges, which soften the company's profitability. We
estimate the overall drag on EBITDA associated with these two
factors to be about EUR20 million in 2023. At the same time, the
recent drop in energy prices and potential drop in the demand for
coking coal in China may ease price pressure and could provide an
uplift to our base case. We note that prices of other raw
materials, such as zinc, are hedged and pose no material downside.

"We project that higher free cash flow generation in 2024 will put
Befesa back on its deleveraging path. In our view, the
stabilization of energy prices starting 2024 and the uplift of
EBITDA contributions from the ramp-up of new assets in China and
the turnaround of the newly acquired zinc refinery will result in
normalized S&P Global Ratings-adjusted EBITDA of at least EUR240
million, leading S&P Global Ratings-adjusted debt to EBITDA to fall
below 3.0x.

"We view positively Befesa executing its growth strategy and we
think its financial policy will accommodate adverse economic
scenarios. Despite the weaker results, Befesa is very much
committed to its growth plan, namely establishing, and growing its
activities in the U.S. and China. We continue to view the company's
growth strategy as a positive.

"Our previous view of the company's supportive financial policy
(net debt leverage at 2.5x together with a dividend policy of
distributing 40%-50% of net profit per year) was slightly impaired
by Befesa's decision to distribute about EUR50 million of dividends
in 2023, even as profitability reduced. For the current rating, we
expect management to more frequently use its financial levers to
meet its financial targets.

"The negative outlook reflects the possibility of a downgrade in
early 2024 if our adjusted EBITDA falls below EUR200 million in
2023, without an obvious recovery in 2024.

"Under our base case, we expect Befesa to report an S&P Global
Ratings-adjusted EBITDA of EUR190 million-EUR210 million in 2023
and positive free cash flow, translating into our adjusted debt to
EBITDA somewhat above 3.0x with rapid deleveraging going into
2024."

S&P consider S&P Global Ratings-adjusted debt to EBITDA in the
range of 2x-3x as commensurate with the 'BB+' rating.

S&P could take a negative rating action in the coming 12 months,
if:

-- S&P expects its adjusted debt to EBITDA to stay above 3x in
2024, combined with weaker than expected negative discretionary
cash flow generation.

-- S&P reassesses the company's liquidity profile to be less than
strong.

Although less likely, Befesa deviates from its current financial
policy. For example, by significantly increasing its capital
expenditure (capex) budget without reducing dividends, or entering
into a debt-funded acquisition with low profit contribution.

S&P could revise the outlook to stable in the coming six months or
so if it believes the company's EBITDA in the first quarter of 2023
is the bottom of the cycle, and a gradual S&P Global
Ratings-adjusted EBITDA recovery to above EUR200 million in 2023
becomes more likely. Such a decision would be supported by lower
coke prices, Befesa's successful ramp-up of operations in China,
and a slightly improved macroeconomic environment in Europe.

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

S&P said, "ESG factors are an overall neutral consideration in our
credit rating analysis of Befesa. The company's core business is
the collection, management, and recycling of hazardous waste from
the steel and aluminum industry. Regulations in key markets require
or incentivize customers to recycle waste, and we expect
regulations globally will become more stringent, supporting
Befesa's long-term growth prospects. We also note that Befesa has
been making progress in recent years in reducing the energy
consumption and hazardous waste disposal in its plants, which
extract metals out of collected waste."


E-CARAT 10: S&P Affirms 'CCC+' Rating on Class G-Dfrd Notes
-----------------------------------------------------------
S&P Global Ratings raised its credit ratings on E-CARAT 10 FCT's
class D-Dfrd notes to 'BBB+ (sf)' from 'BBB (sf)', class E-Dfrd
notes to 'BB+ (sf)' from 'BB (sf)', and class F-Dfrd notes to 'BB
(sf)' from 'B- (sf)'. At the same time, S&P affirmed its 'AAA
(sf)', 'AA (sf)', 'A (sf)', and 'CCC+ (sf)' ratings on the class A,
B-Dfrd, C-Dfrd, and G-Dfrd notes, respectively.

S&P analyzed the transaction's credit risk under various stress
scenarios by applying our criteria for rating global auto ABS
transactions.

S&P said, "While our rating on the class A notes addresses the
timely payment of interest and the ultimate payment of principal,
our ratings on the class B-Dfrd to G-Dfrd notes address the
ultimate payment of principal and the ultimate payment of
interest.

"The rating actions follow our review of the transaction's
performance and the application of our current criteria, and
reflect our assessment of the payment structure according to the
transaction documents.

"The transaction closed in September 2019 and revolved for one year
until September 2020. Since the end of the revolving period the
notes amortize on a pro rata basis.

"Given that cumulative defaults are building up slower than we
anticipated at closing, we resized our weighted-average gross loss
base-case to 0.85% from 2.00% from our previous full review,
expressed as a percentage of the initial closing balance.
Considering the portion of defaults we have already observed and
the amortization of the collateral balance, the equivalent gross
loss base case expressed as a percentage of the current performing
balance is about 4.25%. At the same time, we kept our recovery
assumptions, balloon risk losses and multiples unchanged. In our
view, the credit assumptions we considered in our analysis account
for the current economic outlook."

  Table 2

  Credit Assumptions

  PARAMETER                       PREVIOUS      CURRENT
                                  FULL REVIEW

  Gross loss base case (%)        4.0.0          4.25

  Recovery base case (%)          60.00         60.00


  GROSS LOSS MULTIPLES (X)  

  AAA                              4.00          4.00

  AA                               3.25          3.25

  A                                2.75          2.75

  BBB                              2.00          2.00

  BB                               1.25          1.25

  B                                1.10          1.10


  HAIRCUTS ABOVE THE BASE CASE (%)  

  AAA                                25            25

  AA                                 20            20

  A                                  15            15

  BBB                                10            10

  BB                                  5             5

  B                                   1             1


  STRESSED RECOVERY RATES (%)  

  AAA                              45.0          45.0

  AA                               48.0          48.0

  A                                51.0          51.0

  BBB                              54.0          54.0

  BB                               57.0          57.0

  B                                59.4          59.4


  BALLOON LOSS (%)  

  AAA                               9.0           9.0

  AA                                7.6           7.6

  A                                 4.7           4.7

  BBB                               2.8           2.8

  'BB' and below                    N/A           N/A

  N/A--Not applicable.


S&P said, "Our operational and legal analysis is unchanged since
closing. We consider that the transaction documents adequately
mitigate the transaction's exposure to counterparty risk through
the transaction bank account provider (BNP Paribas), and swap
counterparty (BNP Paribas) up to a 'AAA' rating.

"We performed our cash flow analysis without incorporating a
potential early redemption of the notes upon the exercise of the
clean-up option.

"Our cash flow analysis indicates that the available credit
enhancement -- which is unchanged since closing for the class A,
B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, and F-Dfrd notes -- is sufficient
to withstand the credit and cash flow stresses that we apply at the
'AAA', 'AA', 'A', 'BBB+','BB+', and 'BB' rating levels,
respectively. Our analysis incorporates a sensitivity with
back-loaded default curve, in which defaults are applied on month
one and increase over the recession period to test the pro rata
amortization feature.

"We have therefore raised our ratings on the class D-Dfrd notes to
'BBB+ (sf)' from 'BBB (sf)', class E-Dfrd notes to 'BB+ (sf)' from
'BB (sf)', and class F-Dfrd notes to 'BB (sf)' from 'B- (sf)'. We
have also affirmed our 'AAA (sf)', 'AA (sf)', and 'A (sf)'ratings
on the class A, B-Dfrd, and C-Dfrd notes, respectively.

"The class G-Dfrd notes do not pass our stresses at the 'B' rating
level. We believe the repayment of this class is dependent on
favourable economic conditions because even when we reduce our
stresses, in line with a steady state scenario, the issuer would
not be able to meet its obligations under this class. We have
therefore affirmed our 'CCC+ (sf)' rating on this class of notes in
line with our criteria."


WEPA HYGIENEPRODUKTE: Moody's Alters Outlook on 'B1' CFR to Stable
------------------------------------------------------------------
Moody's Investors Service has affirmed the B1 long term corporate
family rating and the B1-PD probability of default rating of the
German tissue producer WEPA Hygieneprodukte GmbH. Concurrently,
Moody's has affirmed the B2 instrument rating on the guaranteed
senior secured bonds maturing in 2026 and 2027. The outlook has
been changed to stable from negative.

RATINGS RATIONALE

The rating action reflects a significant recovery in WEPA's
profitability in late 2022 as its sales price increases kicked in,
supported by decreasing input costs. Furthermore the risk of energy
supply disruptions hasn't materialized and consumer demand
continued to be robust despite elevated pricing levels. Moody's
adjusted EBITDA margin in Q4 2022 at 18.1% was well above the
average level over the last decade – 12.3% in 2013-22. This level
stands in stark contrast to merely 2% in the first quarter of 2022.
Considering the inflated top line, the absolute level of EBITDA in
2022 was record high and allowed for quick deleveraging. While
starting with 10.6x (Moody's adjusted gross debt/ EBITDA) in Q1
2022, the company ended the year with 5.3x and with that within the
requirements for the B1 rating category.

Moody's think the company will maintain a relatively strong level
of profitability in the first half of 2023, which is already
evident by its just reported performance in Q1 2023 where EBITDA
margin remained at around 16%. However, Moody's believe selling
prices will have to be adjusted downwards and this process might
happen quicker than in previous cycles as contracts' durations have
been shortened to 3-4 months during 2022 from typically annual in
the past. This will likely reduce the margin, though certainly not
to the same extend as early 2022 and higher in absolute terms
because of the inflated revenue base. It remains uncertain for how
long WEPA will be able to retain the above-average profitability
level. The evidence of lower credit metrics' volatility as a result
of less marked swings in profitability or those swings being
compensated with offsetting changes in debt would contribute to a
positive rating pressure.

During the last decade, WEPA had a negative free cash flow (Moody's
defined, adjusted for ABS financing) in eight out of ten years,
which is a constraint for the rating. In recent years it mostly
reflected a high level of capex investments (2020/21) and a large
increase in working capital (2022) in a highly inflationary
environment. At the same time, WEPA guides for a lower capital
intensity and a partial release of working capital as cost
inflation fades away, allowing it to generate a solid amount of
positive free cash flow. Applying this cash flow for debt
reduction, for example in form of lower ABS usage, allowing credit
metrics to remain strong even in times of below-average
profitability levels will pave the way for a higher rating.

The rating is mainly supported by (1) the group's leading market
position in the production of private-label consumer tissue
products, which benefit from fairly stable demand; (2) long
relationships and strong ties with customers, including joint
product development; (3) strategically located good-quality assets,
which are close to customers and limit transportation costs; (4)
focus on continuous efficiency improvements, including risk
management for raw material fluctuations; and (5) financial policy
that targets reported net debt/EBITDA of 2.5x – 3.5x (3.9x in
2022).

The rating is primarily constrained by (1) WEPA's susceptibility to
volatile input costs, which has resulted in a high level of
volatility in its credit metrics in the past; (2) limited
geographical diversification, with operations mainly in mature
Western European markets, and a relatively narrow product portfolio
compared with larger peers, such as Essity Aktiebolag (Essity, Baa1
stable); (3) risks of profitability erosion due to downwards
pricing pressure or sudden increase in energy or other input costs;
(4) relatively weak track record of positive free cash flow (FCF)
generation over the past decade; and (5) some customer
concentration, with a few large customers having significant
pricing power.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectation that WEPA's
profitability will remain at a decent level in the next 12-18
months, which along with positive free cash flow will allow
maintaining Moody's adjusted gross leverage within the required
range for the current rating category.

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

Positive rating pressure could arise if:

Moody's-adjusted gross debt/ EBITDA, including securitisation,
below 4.5x on a sustained basis;

Moody's-adjusted EBITDA margin above 10% on a sustained basis;

Positive free cash flow generation, though expansion capex may
over time lead to limited periods of negative free cash flow.

Conversely, negative rating pressure could arise if:

Moody's-adjusted gross debt/ EBITDA, including securitisation,
above 5.5x on a sustained basis;

Moody's-adjusted EBITDA margin below 7% on a sustained basis

Negative free cash flow leading to a deterioration in liquidity
profile.

LIQUIDITY

WEPA's liquidity has improved and is adequate. Cash sources consist
of EUR49 million of cash on balance sheet as of March 31, 2023,
further supported by the fully available EUR150 million revolving
credit facility (RCF) maturing in 2026. The company's ABS facility
is an additional source of funds, although Moody's consider it less
reliable than cash or the RCF. The facility has been refinanced in
2022 and its maximum financing volume has been increased to EUR220
million. At the end of Q1 2023 WEPA has used EUR190 million under
the ABS facility. In 2023, Moody's expect WEPA to generate positive
FCF in a range of EUR50-80 million and reduce its ABS utilization
while building up cash balance at the same time. Creating a large
liquidity buffer over time will also contribute to a positive
rating pressure.

STRUCTURAL CONSIDERATION

The B2 rating on the EUR600 million guaranteed senior secured notes
is one notch below the group's CFR. The rating on this instrument
reflects its junior ranking behind the EUR150 million super senior
RCF and Moody's assumption of preferred treatment for trade
payables in a going-concern scenario.

The RCF and the guaranteed senior secured notes share the same
collateral package, consisting of materially all of the group's
assets, as well as upstream guarantees from most of the group's
operating subsidiaries, representing a substantial share of assets
and EBITDA. However, RCF lenders benefit from priority treatment in
a default scenario because their claims have a priority right of
payment before any remaining proceeds are distributed to the
holders of the guaranteed senior secured notes.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Paper and
Forest Products published in December 2021.

COMPANY PROFILE

Headquartered in Arnsberg, Germany, WEPA Hygieneprodukte GmbH
(WEPA) is among the leading producers and suppliers of tissue paper
products in Europe. The company focuses on private-label consumer
tissue products, which generate around 85% of its group sales, with
the remainder generated primarily from tissue solutions for
away-from-home applications. The company operates 22 paper machines
and over 90 converting lines in 13 production sites across Europe
and has around 4,000 employees. WEPA generated around EUR1.6
billion revenue in 2022. The company operates in Europe, with an
established footprint in DACH, Italy, Benelux, France, Poland and
the UK.




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

ALBACORE EURO V: S&P Assigns B- Rating on Class F Notes
-------------------------------------------------------
S&P Global Ratings assigned its credit ratings to Albacore Euro CLO
V DAC's class A loan and class A, B-1, B-2, C, D, E, and F notes.
At closing, the issuer issued EUR32.60 million of unrated
subordinated notes.

Under the transaction documents, the rated loans and notes pay
quarterly interest unless there is a frequency switch event.
Following this, the loans and notes will switch to semiannual
payment.

The portfolio's reinvestment period will end approximately
four-and-a-half years after closing.

The ratings reflect S&P's assessment of:

-- The diversified collateral pool, which primarily comprises
broadly syndicated speculative-grade senior secured term loans and
bonds that are governed by collateral quality tests.

-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.

-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.

-- The transaction's legal structure, which is bankruptcy remote.

-- The transaction's counterparty risks, which are in line with
S&P's counterparty rating framework.

  Portfolio benchmarks
                                                        CURRENT

  S&P Global Ratings weighted-average rating factor    2,752.66

  Default rate dispersion                                554.06

  Weighted-average life (years)                            4.66

  Obligor diversity measure                              105.33

  Industry diversity measure                              19.12

  Regional diversity measure                               1.23



  Transaction key metrics

                                                        CURRENT

  Portfolio weighted-average rating
  derived from S&P's CDO evaluator                            B

  'CCC' category rated assets (%)                          0.00

  Covenanted 'AAA' weighted-average recovery (%)          36.84

  Covenanted weighted-average spread (%)                   3.90

  Covenanted weighted-average coupon (%)                   4.00

S&P said, "Our ratings reflect our assessment of the collateral
portfolio's credit quality, which has a weighted-average rating of
'B'. We consider that the portfolio will be well-diversified on the
effective date, primarily comprising broadly syndicated
speculative-grade senior secured term loans and senior secured
bonds. Therefore, we conducted our credit and cash flow analysis by
applying our criteria for corporate cash flow CDOs.

"In our cash flow analysis, we used the EUR350 million target par
amount, the covenanted weighted-average spread of 3.90%, the
covenanted weighted-average coupon of 4.00%, and the covenanted
weighted-average recovery rates for all rated notes. We applied
various cash flow stress scenarios, using four different default
patterns, in conjunction with different interest rate stress
scenarios for each liability rating category.

"The transaction's documented counterparty replacement and remedy
mechanisms adequately mitigate its exposure to counterparty risk
under our current counterparty criteria.

"Following the application of our structured finance sovereign risk
criteria, we consider the transaction's exposure to country risk to
be limited at the assigned ratings, as the exposure to individual
sovereigns does not exceed the diversification thresholds outlined
in our criteria.

"The transaction's legal structure and framework is bankruptcy
remote, in line with our legal criteria.

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe our ratings are
commensurate with the available credit enhancement for the class A
loan and class A, B-1, B-2, C, D, E, and F notes. Our credit and
cash flow analysis indicates that the available credit enhancement
for the class B-1, B-2, C, D, E, and F notes could withstand
stresses commensurate with higher ratings than those we have
assigned. However, as the CLO will be in its reinvestment phase
starting from closing, during which the transaction's credit risk
profile could deteriorate, we have capped our ratings assigned to
the notes.

"In addition to our standard analysis, to provide an indication of
how rising pressures among speculative-grade corporates could
affect our ratings on European CLO transactions, we have also
included the sensitivity of the ratings on the class A loan and
class A to E notes based on four hypothetical scenarios. The
results are shown in the chart below.

"As our ratings analysis makes additional considerations before
assigning ratings in the 'CCC' category, and we would assign a 'B-'
rating if the criteria for assigning a 'CCC' category rating are
not met, we have not included the above scenario analysis results
for the class F notes."

Environmental, social, and governance (ESG) factors

S&P said, "We regard the exposure to ESG credit factors in the
transaction as being broadly in line with our benchmark for the
sector. Primarily due to the diversity of the assets within CLOs,
the exposure to environmental credit factors is viewed as below
average, social credit factors are below average, and governance
credit factors are average." For this transaction, the documents
prohibit assets from being related to certain activities,
including, but not limited to, the following:

-- The development, production, maintenance, trade in, or
stock-piling of weapons of mass destruction.

-- The production or trade of illegal drugs or narcotics.

-- Activities in violation of the Ten Principals of the UN Global
Compact or the "OECD Guidelines for Multinational Enterprises".

-- Any revenue from manufacture or trade in pornography, payday
lending.

-- The manufacture, sale, distribution or trade in hazardous
chemicals, pesticides and wastes, ozone depleting substances
endangered or protected wildlife or wildlife products, of which
production or trade is banned by applicable global conventions and
agreements.

-- Gambling, subprime lending, or payday lending activities,
weapons or firearms.

-- More than 1% of revenues from sale or extraction of thermal
coal, oil sands, fossil fuel.

-- An electrical utility where carbon intensity is greater than
100gCO2/kWh.

-- Tobacco production.

-- More than 50% of revenues from trade in, production or
marketing of opioids.

-- More than 5% of revenues from the sale or manufacture of
tobacco or tobacco products, including e-cigarettes.

-- More than 10% of revenues from sale or production of civilian
firearms.

Accordingly, since the exclusion of assets from these industries
does not result in material differences between the transaction and
our ESG benchmark for the sector, no specific adjustments have been
made in our rating analysis to account for any ESG-related risks or
opportunities.

ESG corporate credit indicators

S&P said, "The influence of ESG factors in our credit rating
analysis of European CLOs primarily depends on the influence of ESG
factors in our analysis of the underlying corporate obligors. To
provide additional disclosure and transparency of the influence of
ESG factors for the CLO asset portfolio in aggregate, we've
calculated the weighted-average and distributions of our ESG credit
indicators for the underlying obligors. We regard this
transaction's exposure as being broadly in line with our benchmark
for the sector, with the environmental and social credit indicators
concentrated primarily in category 2 (neutral) and the governance
credit indicators concentrated in category 3 (moderately
negative)".


  Corporate ESG credit indicators
                                 ENVIRONMENTAL  SOCIAL  GOVERNANCE


  Weighted-average credit indicator*     2.08    2.08    2.80

  E-1/S-1/G-1 distribution (%)           0.00    0.86    0.00

  E-2/S-2/G-2 distribution (%)          75.14   75.16   19.57

  E-3/S-3/G-3 distribution (%)           5.70    3.39   58.79

  E-4/S-4/G-4 distribution (%)           0.29    1.14    1.90

  E-5/S-5/G-5 distribution (%)           0.00    0.57    0.86

  Unmatched obligor (%)                 15.34   15.34   15.34

  Unidentified asset (%)                 3.54    3.54    3.54

*Only includes matched obligor.

AlbaCore EURO CLO V DAC is a European cash flow CLO securitization
of a revolving pool, comprising euro-denominated senior secured
loans and bonds issued mainly by speculative-grade borrowers.
AlbaCore Capital LLP will manage the transaction.


  Ratings list

  CLASS    RATING     AMOUNT     CREDIT            INTEREST RATE*
                    (MIL. EUR)   ENHANCEMENT (%)

  A        AAA (sf)   180.00     40.00    Three/six-month EURIBOR
                                          plus 1.90%

  A Loan   AAA (sf)    30.00     40.00    Three/six-month EURIBOR
                                          plus 1.90%

  B-1      AA (sf)     27.60     29.26    Three/six-month EURIBOR
                                          plus 3.50%

  B-2      AA (sf)     10.00     29.26    7.00%

  C        A (sf)      18.40     24.00    Three/six-month EURIBOR
                                          plus 4.50%

  D        BBB (sf)    21.90     17.74    Three/six-month EURIBOR
                                          plus 6.56%

  E        BB- (sf)    14.70     13.54    Three/six-month EURIBOR
                                          plus 8.56%

  F        B- (sf)     12.40     10.00    Three/six-month EURIBOR
                                          plus 10.10%

  Sub      NR          32.60       N/A    N/A

*The payment frequency switches to semiannual and the index
switches to six-month EURIBOR when a frequency switch event occurs.

EURIBOR--Euro Interbank Offered Rate.
NR--Not rated.
N/A--Not applicable.


PALMER SQUARE 2023-1: S&P Assigns Prelim. B- Rating on F Notes
--------------------------------------------------------------
S&P Global Ratings assigned its preliminary credit ratings to
Palmer Square European CLO 2023-1 DAC's class A loan and class A,
B-1, B-2, C, D, E, and F notes. At closing, the issuer will also
issue unrated subordinated notes

Under the transaction documents, the rated notes will pay quarterly
interest unless there is a frequency switch event. Following this,
the notes will switch to semiannual payment.

The transaction has a 1.5 year non call period and the portfolio's
reinvestment period will end approximately 4.57 years after
closing.

The preliminary ratings assigned to the notes reflect S&P's
assessment of:

-- The diversified collateral pool, which primarily comprises
broadly syndicated speculative-grade senior secured term loans and
bonds that are governed by collateral quality tests.

-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.

-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.

  Portfolio Benchmarks

                                                         CURRENT

  S&P Global Ratings weighted-average rating factor     2,606.86

  Default rate dispersion                                 610.90

  Weighted-average life (years)                             4.57

  Obligor diversity measure                               154.59

  Industry diversity measure                               22.03

  Regional diversity measure                                1.41


  Transaction Key Metrics

                                                         CURRENT

  Total par amount (mil. EUR)                             400.00

  Defaulted assets (mil. EUR)                                  0

  Number of performing obligors                              183

  Portfolio weighted-average rating
  derived from S&P's CDO evaluator                           'B'

  'CCC' category rated assets (%)                           0.79

  'AAA' weighted-average recovery (%)                      38.26

  Actual weighted-average spread (%)                        4.03

  Reference weighted-average coupon (%)                     4.00

Rating rationale

S&P said, "Our preliminary ratings reflect our assessment of the
preliminary collateral portfolio's credit quality, which has a
weighted-average rating of 'B'. We consider that the portfolio will
primarily comprise broadly syndicated speculative-grade senior
secured term loans and senior secured bonds. Therefore, we
conducted our credit and cash flow analysis by applying our
criteria for corporate cash flow CDOs.

"In our cash flow analysis, we used the EUR400 million par amount,
the actual weighted-average spread of 4.03%, and the actual
weighted-average recovery rates for all rated notes. We applied
various cash flow stress scenarios, using four different default
patterns, in conjunction with different interest rate stress
scenarios for each liability rating category.

"We expect that the transaction's documented counterparty
replacement and remedy mechanisms will adequately mitigate its
exposure to counterparty risk under our current counterparty
criteria.

"Following the application of our structured finance sovereign risk
criteria, we consider the transaction's exposure to country risk to
be limited at the assigned preliminary ratings, as the exposure to
individual sovereigns does not exceed the diversification
thresholds outlined in our criteria.

"At closing, we consider that the transaction's legal structure
will be bankruptcy remote, in line with our legal criteria.

"Our credit and cash flow analysis indicate that the available
credit enhancement for the class B-1 to F notes could withstand
stresses commensurate with higher rating levels than those we have
assigned. However, as the CLO is still in its reinvestment phase,
during which the transaction's credit risk profile could
deteriorate, we have capped our assigned preliminary ratings on the
notes. The class A loan and class A notes can withstand stresses
commensurate with the assigned preliminary ratings. Our ratings on
the class A loan and class A, B-1, and B-2 notes address timely
payment of interest and principal, while our ratings on the class
C, D, E, and F notes (once drawn upon) address the payment of
ultimate interest and principal.

"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe that our preliminary
ratings are commensurate with the available credit enhancement for
the class A loan and class A, B-1, B-2, C, D, E, and F notes.

"In addition to our standard analysis, to indicate how rising
pressures among speculative-grade corporates could affect our
ratings on European CLO transactions, we have also included the
sensitivity of the ratings on the class A loan and class A to E
notes based on four hypothetical scenarios."

Environmental, social, and governance (ESG) credit factors

S&P said, "We regard the exposure to ESG credit factors in the
transaction as broadly in line with our benchmark for the sector.
Primarily due to the diversity of the assets within CLOs, the
exposure to environmental credit factors is viewed as below
average, social credit factors are below average, and governance
credit factors are average. For this transaction, the documents
prohibit assets from being related to the following industries:
production or marketing of controversial weapons, tobacco or
tobacco-related products, nuclear weapons, thermal coal production,
speculative extraction of oil sands and fossil fuels, pornography
or prostitution, illegal drugs, sale or production of civilian
firearms, opioid manufacturing and distribution, coal, and payday
lending. Accordingly, since the exclusion of assets from these
industries does not result in material differences between the
transaction and our ESG benchmark for the sector, no specific
adjustments have been made in our rating analysis to account for
any ESG-related risks or opportunities."

Environmental, social, and governance (ESG) corporate credit
indicators

S&P said, "The influence of ESG factors in our credit rating
analysis of European CLOs primarily depends on the influence of ESG
factors in our analysis of the underlying corporate obligors. To
provide additional disclosure and transparency of the influence of
ESG factors for the CLO asset portfolio in aggregate, we've
calculated the weighted-average and distributions of our ESG credit
indicators for the underlying obligors. We regard this
transaction's exposure as broadly in line with our benchmark for
the sector, with the environmental and social credit indicators
concentrated primarily in category 2 (neutral) and the governance
credit indicators concentrated in category 3 (moderately
negative).

  Corporate ESG Credit Indicators
                                 ENVIRONMENTAL  SOCIAL  GOVERNANCE

  Weighted-average credit indicator*     2.12    2.16    2.84

  E-1/S-1/G-1 distribution (%)           0.00    1.13    0.00

  E-2/S-2/G-2 distribution (%)          73.56   73.44   17.88

  E-3/S-3/G-3 distribution (%)          12.37    8.24   65.92

  E-4/S-4/G-4 distribution (%)           0.00    2.37    0.50

  E-5/S-5/G-5 distribution (%)           0.00    0.75    1.62

  Unmatched obligor (%)                  9.50    9.50    9.50

  Unidentified asset (%)                 4.57    4.57    4.57

*Only includes matched obligors.


  Ratings

  CLASS    PRELIMINARY    AMOUNT     SUB (%)     INTEREST RATE*
           RATING       (MIL. EUR)

  A        AAA (sf)       165.03     38.50   Three-month EURIBOR
                                             plus 1.90%

  A loan   AAA (sf)        80.97     38.50   Three-month EURIBOR
                                             plus 1.90%

  B-1      AA (sf)         30.75     28.56   Three-month EURIBOR
                                             plus 3.25%

  B-2      AA (sf)          9.00     28.56   7.00%

  C        A (sf)          24.00     22.56   Three-month EURIBOR
                                             plus 3.65%

  D        BBB- (sf)       25.50     16.19   Three-month EURIBOR
                                             plus 6.20%

  E        BB- (sf)        17.25     11.88   Three-month EURIBOR
                                             plus 7.59%

  F§       B- (sf)         11.50      9.00   Three-month EURIBOR
                                             plus 10.00%

  Subordinated notes  NR   45.75       N/A   N/A

*The payment frequency switches to semiannual and the index
switches to six-month EURIBOR when a frequency switch event occurs.

§The class F notes is a delayed drawdown tranche, which is not
issued at closing.
EURIBOR--Euro Interbank Offered Rate.
NR--Not rated.
N/A—-Not applicable.




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

ALITALIA: Terms of Third Call for Submission of Offers Amended
--------------------------------------------------------------
Avv. Gabriele Fava, Avv. Giuseppe Leogrande and Prof. Avv. Daniele
Umberto Santosuosso, the Extraordinary Commissioners for Alitalia -
Societa Aerea Italiana S.p.A. (Under Extraordinary Administration),
disclosed that in the context of the procedure for the transfer the
100% of the shares of Italia Loyalty S.p.A. (formerly known as
"Alitalia Loyalty S.p.A.") launched by the extraordinary
administration procedure applying to Alitalia - Societa Aerea
Italiana S.p.A., the Extraordinary Commissioners give the following
notice of amendment of the terms of the third call for submission
of offers for the acquisition of Italia Loyalty S.p.A. (hereinafter
the "Call") published on April 12, 2023.

Expressly referring to paragraph of the Call for submission of
offers, pursuant to which the Extraordinary Commissioners have the
right to modify the terms and conditions of the Call, at any time
and without cause or reason, public notice is given hereby that the
term for the submission of admission request to the data room and
for the submission of binding offers are amended in compliance with
the updated version of the Call published on the internet website
of the extraordinary administration procedure of Alitalia - SAI
S.p.A. (https://www.amministrazionestraordinariaalitaliasai.com)
concurrently with this notice which shall fully replace the version
published on April 12, 2023.


SESTANTE FINANCE 4: S&P Affirms 'D(sf)' Rating on Cl. B Notes
-------------------------------------------------------------
S&P Global Ratings raised to 'A+ (sf)' from 'A- (sf)' its credit
rating on Sestante Finance S.r.l.series 4's class A2 notes. At the
same time, S&P affirmed its 'D (sf)' ratings on the class B, C1,
and C2 notes.

The rating actions follow its credit and cash flow analysis of the
most recent transaction information that it has received, as of the
April 2023 payment date.

Severe delinquencies of more than 90 days were at 2.16%, up from
1.47% at S&P's previous review. Total more than 30 days arrears
have increased to 4.2.% from 2.39% over the same period. This
transaction defines defaults as mortgage loans in arrears for more
than 12 months. Cumulative defaults are 21.2%, compared with 20.8%
as of our previous review.

S&P said, "After applying our global RMBS criteria, our credit
analysis results show a small decrease in the weighted-average
foreclosure frequency (WAFF) compared with our previous review,
mainly driven by a lower weighted-average effective loan-to-value
ratio and increased seasoning. Our analysis also shows a decrease
in the weighted-average loss severity (WALS) at all ratings, driven
by a decrease in the weighted-average current loan-to-value ratio.
The overall effect is a decrease in the required credit coverage
for all ratings."

  Credit analysis results

                         JANUARY 2023          APRIL 2022
  RATING LEVEL     WAFF (%)  WALS (%)    WAFF (%)  WALS (%)

  AAA                 22.29     17.87       22.58     19.04

  AA                  17.59     14.87       17.84     15.99

  A                   15.18      8.85       15.45     10.02

  BBB                 12.74      5.71       13.05      6.90

  BB                  10.25      3.63       10.63      4.76

  B                    9.63      2.00       10.02      2.91

  WAFF--Weighted-average foreclosure frequency.
  WALS--Weighted-average loss severity.


Available credit enhancement for the class A2 notes has improved by
222 basis points since S&P's previous review in part thanks to the
slight decrease of the unpaid principal deficiency ledger.

The reserve fund has not been replenished since its depletion in
August 2009.

S&P said, "Our ratings on Sestante Finance's series 4 notes would
be capped at the resolution counterparty rating (RCR) on the swap
counterparty (Commerzbank AG), which is 'A (sf)', because the swap
documents do not contain downgrade provisions in line with our
counterparty criteria. However, we have performed our cash flow
analysis without giving benefit to the swap and our ratings are no
longer linked to those on the swap counterparty.

"Considering the results of our updated credit and cash flow
analysis, the available credit enhancement for the class A2 notes
of 10.3% can support a higher rating than that currently assigned.
Additionally, this class of notes can achieve a higher rating than
'A+', even when we assume higher stresses to account for a
potential deterioration of the performance due to the rising
interest rates and lower recoveries. However, our sovereign risk
criteria cap at 'A+ (sf)' our ratings on the notes in this
transaction. We therefore raised to 'A+ (sf)' from 'A- (sf)' our
rating on the class A2 notes.

"The class C1 and C2 notes breached the interest deferral trigger
in October 2013, and the class B notes breached it in October 2016.
These classes have not received any interest payments since. As
interest on the class B, C1, and C2 notes remains unpaid, we
affirmed our 'D (sf)' ratings on these classes of notes."

Sestante Finance's series 4 is an Italian RMBS transaction, which
closed in December 2006. It is backed by a pool of residential
mortgage loans originated by Meliorbanca SpA, which merged with
BPER Banca SpA in 2012.




===================
K A Z A K H S T A N
===================

FREEDOM FINANCE: S&P Ups ICR to 'BB-' on Improving Capitalization
-----------------------------------------------------------------
S&P Global Ratings raised its long-term issuer credit and financial
strength ratings on Freedom Finance Life JSC (FFL) to 'BB-' from
'B+'. The outlook is stable. S&P also raised the Kazakhstan
national scale rating to 'kzA-' from 'kzBBB'.

The upgrade reflects FFL's improved capital adequacy stemming from
robust operating performance over 2022. The company reported net
income of Kazakhstani tenge (KZT) 10.0 billion in 2022, up from
KZT5.3 billion in 2021. S&P said, "We expect FFL to maintain
capital at least at our 'A' benchmark. The company has reduced risk
in its investment portfolio over the past three years and we expect
it to sustainably manage its invested assets, with an average
rating of 'BBB-' or above. We also recognize its successful
business expansion in the Kazakhstan life insurance sector and
solid operating performance after strong growth in the past three
years."

FFL's absolute capital increased 68% to $45 million in 2022. S&P
forecasts that capital will stabilize at about $60 million-$70
million in 2023-2024 due to retained earnings and a zero-dividend
policy in the next two years. FFL also expanded its business 69%
year on year in the first three months of 2023. Therefore, strong
earnings are important to ensure capital generation at least in
line with additional risk taken through business expansion over
2023-2024.

S&P said, "We view positively that the company is focused on a
prudent policy with the aim to invest in investment-grade assets.
At April 1, 2023, investment-grade instruments (rated 'BBB-' and
above) comprised 75% of invested assets, compared with about 60% at
year-end 2022.

"In our view, FFL remains a midsize player in a developing market
with 16% market share by gross premiums written (GPW) in the first
three months of 2023. This compares with Kazakhstani market leaders
Halyk Life and Nomad Life with 32% and 24% by GPWs, respectively.
In our base-case scenario, we expect FFL will report an average
annual net profit of about KZT10 billion-KZT11 billion, return on
equity of 30%-32%, and return on assets of about 10%-11%, although
the risk remains that excessively rapid growth could reduce profit
margins and strain capital. We expect FFL's investment yield will
be 10%, meeting the company's obligations under insurance policies
with investment guarantees.

"We assume the regulatory framework will continue to prevent an
outflow of funds from FFL to support its parent Freedom Group, for
example, through dividend payments or material investments.
Therefore, we still consider FFL to be an insulated subsidiary of
Freedom Group, enabling us to rate FFL up to two notches above its
parent.

"Furthermore, we view FFL as a moderately strategic subsidiary of
Freedom Group. We believe that FFL is important to the group's
long-term strategy, which envisages diversification of businesses
within the group. That said, we observe that the effectiveness of
the integration and business cooperation between the two entities
is yet to be tested.

"The stable outlook reflects our expectation that, over the coming
12 months, FFL will maintain its capital adequacy at least at the
'A' level in S&P Global Ratings' model on the back of robust
profitability. We also anticipate that the company will sustain its
competitive standing, with sufficient asset quality."

S&P could take a negative rating action on FFL over the next 12
months if:

-- Its capital position weakens, due to weaker-than-expected
operating performance, investment losses, excessive growth, or
considerable dividends.

-- Its asset-quality deteriorates significantly and sustainably.

Any deterioration in S&P's view of Freedom Group's creditworthiness
would also lead us to take a negative rating action on FFL.

S&P could consider another positive rating action over the next
12-24 months if it sees material and sustainable improvements in
FFL's capital adequacy on the back of profitable growth, or a
materially stronger competitive standing versus peers through
stronger growth, business diversification, or more resilient
operating performance.

A positive rating action would also hinge on an improvement in the
overall financial strength of the wider group.




===============
P O R T U G A L
===============

EMPRESA DE ELECTRICIDADE: Moody's Ups CFR to Ba3, Outlook Positive
------------------------------------------------------------------
Moody's Investors Service has upgraded the long-term corporate
family rating of Empresa de Electricidade da Madeira, S.A. (EEM) to
Ba3 from B1. Moody's has also upgraded EEM's Baseline Credit
Assessment (BCA) to ba3 from b1. The outlook remains positive.

The rating upgrade is mainly driven by the improvement in EEM's
credit metrics over 2019-21, and Moody's view that this trend will
be sustained in 2022-23. The positive outlook reflects that (1)
EEM's credit metrics could strengthen further, above levels
consistent with the Ba3 rating, and (2) the potential for ratings
uplift given EEM's ownership by the Autonomous Region of Madeira
(Regiao Autonoma da Madeira or RAM) and Moody's recent decision to
change the region's outlook to positive while upgrading RAM's
rating to Ba2 from Ba3.

RATINGS RATIONALE

RATIONALE FOR RATING UPGRADE

The ratings upgrade reflects the strengthening of EEM's financial
profile over 2019-21 with credit metrics consistent with guidance
for the Ba3 rating level of Funds from Operations (FFO)/debt
sustainably in the low double digit in percentage terms. The rating
agency's expects that metrics will remain at levels consistent with
its guidance over 2022-23, in spite of likely further substantial
working capital increase in 2022 (following a EUR20 million
increase in 2021) related to delayed cash inflows from tariff
compensation mechanisms attributed to significantly higher fuel oil
and natural gas prices than embedded into allowed revenues.

EEM's rating continues to reflect as positives: (1) the company's
position as the dominant vertically integrated utility in the RAM;
(2) the fully regulated nature of the company's activities in the
context of a relatively well-established and transparent regulatory
framework; and (3) Moody's expectation that EEM's cash flows and EU
grants during the current regulatory period should accommodate its
capital investment plan and dividend payments.

However, EEM's rating is constrained by: (1) the small size of the
company and its relatively sizeable investment plan to increase the
share of power output from renewable sources; (2) the costs and
challenges associated with operating in a small, relatively remote,
archipelago; (3) ongoing efficiency challenges included in the
regulatory settlement for the 2022-25 period; and (4) the company's
high leverage and reliance on short-term credit facilities.

Given its ownership, Moody's considers EEM a government-related
issuer and rates the company under its Government-Related Issuers
Methodology, published in February 2020. Under this methodology and
under Moody's High default dependence and Low support assumptions,
the RAM's Ba2 rating does not provide any rating uplift and EEM's
rating is in line with its standalone credit quality or BCA of
ba3.

RATIONALE FOR POSITIVE OUTLOOK

The positive outlook reflects the potential for EEM's FFO/debt to
increase further to levels sustainably in the low teens beyond
2023, assuming that the company is able to maintain operating
performance and recover its costs. In particular, it takes into
account the likely decline in EEM's debt related to cash inflows
reflecting the two year lag of the recovery of the difference
between allowed and actual revenues, as foreseen under EEM's
regulatory framework for tariff compensation, starting in 2023, and
then mostly in 2024.

The positive outlook on EEM also reflects that of the RAM, its 100%
shareholder. EEM's rating does not currently benefit from any
uplift from its standalone credit quality as a result of its
government shareholding and the potential for support in case of
need. Further improvement in RAM's credit quality could, however,
result in a rating uplift.

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

EEM's rating could be upgraded if the company's progress on the
delivery of its strategy were to result in a continued
strengthening of its financial profile, with FFO/debt likely to
remain sustainably in the low teens in percentage terms or if the
rating of the RAM was upgraded resulting in a notch of uplift from
the BCA under Moody's GRI methodology.

Given the positive outlook, a downgrade is not currently
anticipated however there could be downward pressure if: (1) EEM's
credit profile weakened such that FFO/ debt deteriorated below 10%;
(2) there were a deterioration in the company's liquidity
position.

EEM is the dominant vertically integrated utility in Madeira, 100%
owned by the Autonomous Region of Madeira. In the year to December
2021, the company's consolidated revenues and EBITDA amounted to
EUR201 million and EUR59.6 million respectively.

The methodologies used in these ratings were Regulated Electric and
Gas Utilities published in June 2017.




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

304 CLOTHING: Bought Out of Administration by LID CLO
-----------------------------------------------------
Business Sale reports that 304 Clothing Limited, a Birmingham-based
fashion designer and retailer, has been acquired out of
administration after succumbing to the post-COVID challenges facing
the industry.

Last year, the company received GBP250,000 in funding from MEIF
Maven Debt Finance, part of the Midlands Engine Investment Fund
(MEIF), which was managed by Maven Capital Partners, with backing
from the Recovery Loan Scheme, Business Sale recounts.

According to Business Sale, 304 Clothing said at the time that it
would use this funding to support its ongoing expansion plans.
However, the company continued to be impacted by the range of
challenges facing both the fashion and retail sectors in the wake
of COVID-19, with lockdowns and social distancing rules seeing
spending on fashionwear fall significantly, Business Sale notes.

As a result of its problems, the company appointed Julie Humphrey
and Glyn Mummery of FRP Advisory as joint administrators on May 11,
Business Sale states.  The joint administrators subsequently
secured a sale of the business and its assets to LID CLO, Business
Sale discloses.

304 Clothing Limited, which is based at the Kings Norton Business
Centre, has been acquired by LID CLO.

The company was founded in 2012 and designed and sold a wide range
of streetwear-based clothing for men, women and children.  The
brand's clothing was sold via third-party retailers, including Asda
and Asos, as well as through its own website.


DAYLIGHT ENERGY: Insolvency Service May Launch Investigation
------------------------------------------------------------
Andrew Goldman at Daily Echo reports that an investigation could be
launched into an energy company which went bust owing more than
GBP1 million to livid customers.

Poole-based Daylight Energy was officially put into liquidation in
early May after racking up extensive debts, leaving hundreds of
customers out of pocket, the Echo relates.

According to the report, compiled by insolvency practitioners
Verulam Advisory, there are 397 customers who paid deposits
totalling GBP1,014,427 -- all of which is unsecured, the Echo
notes.

A director's loan worth GBP70,000 was listed as an unsecured claim,
as was a NatWest Bounce Back Loan worth just under GBP33,000, the
Echo states.  There are 14 employees, meanwhile, with claims for
notice and redundancy pay totalling GBP14,707, the Echo discloses.

Some customers have reportedly been able to recoup all or some of
their deposits, while others have not, the Echo says.

The Insolvency Service told the Echo that the practitioner handling
the liquidation of Daylight Energy has a duty to a file a report
"setting out any concerns they identified regarding the directors'
misconduct in the period leading up to the insolvency."

Depending on what the practitioner identifies, the Insolvency
Service said it may then begin an investigation, the Echo notes.

The practitioner has three months to submit its findings, according
to the Echo.


DE TRAFFORD NO1: Goes Into Administration
-----------------------------------------
Jon Robinson at BusinessLive reports that the company behind a
luxury apartment development in Manchester has entered
administration.

Rick Harrison and Howard Smith from Interpath Advisory have been
appointed joint administrators to De Trafford No1 Castlefield
Limited, BusinessLive relates.

The company is a special purpose vehicle (SPV) within the
DeTrafford group which had been formed to construct the No1
Castlefield development, a 420-unit luxury residential development
located on Ellesmere Street, Castlefield on land that it owns.

However, work on the scheme never started "despite significant
levels of interest in the development", Interpath Advisory said,
BusinessLive notes.  There has also been a winding up petition
filed, BusinessLive states.  Plans for the development were first
outlined in 2016.

According to BusinessLive, Rick Harrison, managing director at
Interpath Advisory and joint administrator, said: "Our immediate
focus will be to assess the options available for the site
alongside our agents, bringing it to market in due course.
Interested parties are advised to contact us at the earliest
opportunity."

The firm is the latest DeTrafford company to enter administration
after those behind Gallery Gardens, St George's Gardens, City
Gardens, Wavelength and Sky Gardens.


JAGUAR LAND: Moody's Affirms B1 CFR & Alters Outlook to Positive
----------------------------------------------------------------
Moody's Investors Service has changed Jaguar Land Rover Automotive
Plc's (JLR) outlook to positive from stable. Concurrently, Moody's
has affirmed the B1 corporate family rating, the B1-PD probability
of default rating and B1 senior unsecured instruments ratings of
JLR.

RATINGS RATIONALE

The affirmation of JLR's ratings and the outlook change to positive
from stable reflects the company's significantly improved credit
metrics on the back of a good operating performance in the
financial year ended March 31, 2023. JLR achieved a substantial
increase in production and wholesale volumes in the second half of
the year, up to 174k vehicles from just 147k in the first half, and
despite persisting supply constraints. As a result JLR's leverage,
as measured by Moody's-adjusted Debt/EBITDA, declined to 3.8x at
financial year-end 2023, down from 5.3x in the previous year. This
improvement was driven by a 22% increase of Moody's-adjusted EBITDA
to GBP1.8 billion and a GBP0.8 billion debt reduction including the
repayment of two bonds in the fourth quarter ended March 2023.
Further, JLR achieved a substantially positive free cash flow
(Moody's-adjusted) of over GBP0.5 billion for the year, compared to
a GBP1.1 billion outflow in 2022.

JLR's very high order book of around 200k units at the end of March
2023, consisting of mostly the highly profitable Range Rover, Range
Rover Sport and Defender models (76% of orders), will support JLR's
wholesale volume growth ambitions in financial year 2024. The
recent refresh of the Range Rover Velar, the launch of the new
Range Rover Sport SV later this month and the upcoming refresh of
the Range Rover Evoque should be further growth drivers. Moody's
forecasts JLR to achieve more than 400k wholesale units in the
year, up by around 25% from 321k vehicles sold in financial year
2023.

Fuelled by a significant step-up in volumes and a continuously
strong model mix, Moody's forecasts JLR's revenue to reach nearly
GBP30 billion in financial year 2024 and profitability to improve
further, with the Moody's-adjusted EBITA margin increasing towards
5% over the next 12 months. Despite an anticipated increase in
capital spending by around GBP700 million, Moody's projects JLR's
free cash flow to remain substantially positive and reach more than
GBP1 billion in 2024. If JLR continues to deliver volume growth and
good free cash flows on a quarterly basis, making progress towards
Moody's financial year 2024 forecast, this would likely result in a
rating upgrade.

Over the longer term, particularly in the financial years 2025 and
2026, Moody's sees considerable challenges for JLR linked to its
electrification strategy and the full relaunch of the Jaguar brand.
By the end of the calendar year 2026, the company plans to have
launched six battery electric vehicle (BEV) models with Land Rover
and relaunched Jaguar as a purely electric luxury brand. Moody's
considers the launch of this large number of new models and
electric variants combined with the necessary investment in JLR's
production facilities within a relatively short period as a
meaningful challenge with potential for disruption to its
operations. Furthermore, there is uncertainty around the success of
the reinvented Jaguar brand, particularly with regards to consumers
acceptance of the completely new models at a significantly higher
price point.

The B1 CFR is further supported by JLR's (1) strong brands in the
premium car segment and record of successful model launches; (2)
good geographic diversification of sales across mature and emerging
markets, including its presence in China; and (3) conservative
financial policy supported by the shareholder which should drive
further improvement in credit metrics.

Conversely, the CFR is constrained by (1) the execution risks
related to JLR's strategy and transformation programmes; (2) the
anticipated shift in model mix which could have an adverse impact
on profitability and needs to be offset by further cost
efficiencies; and (3) the continuation of supply chain frictions
which will likely continue to constrain JLR's financial
performance.

ESG CONSIDERATIONS

JLR's ratings also reflect a number of environmental, social and
governance (ESG) considerations that are inherent to the automotive
industry. This includes higher environmental standards, stricter
emission regulations and electrification; autonomous driving and
connectivity; increasing vehicle safety regulations; and the entry
of new market participants. In line with the company's guidance to
invest more than GBP15 billion over five years, Moody's expects JLR
as well as its peers to continue to require sizeable investments to
cope with these challenges, which will constrain profitability and
free cash flows in the coming years.

RATING OUTLOOK

The positive outlook reflects Moody's expectation that JLR will
continue to ramp up its production and wholesale volumes over the
next quarters and successfully weather potential supply chain
disruptions. As such the outlook further assumes that JLR's credit
metrics will continue to improve and the company continues to
follow a conservative financial policy.

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

Upward pressure on the rating could occur if JLR successfully
executes its transformative "Reimagine" strategy. It would also
require the company to maintain a Moody's-adjusted Debt/EBITDA of
less than 5.0x on a sustained basis, maintain its Moody's-adjusted
EBITA margin above 2%, and achieve a sustainably positive free cash
flow generation.

The rating is currently strongly positioned, as expressed by the
positive outlook, as a result of which limited negative rating
pressure is expected. However, downward pressure on the rating
could develop if JLR's profitability deteriorates and recent
improvements cannot be sustained, Moody's-adjusted Debt/EBITDA
consistently exceeds 6.0x, or there is a deterioration in JLR's
liquidity position as a result of continued negative free cash
flow.

LIQUIDITY PROFILE

Moody's considers JLR's liquidity to be good. As of March 2023, the
company had GBP3.8 billion of cash and short-term investments on
the balance sheet and access to the fully undrawn and committed
GBP1.5 billion revolving credit facility (RCF) maturing in 2026.
JLR's working capital improved significantly in the second half of
financial year 2023, almost fully offsetting the working capital
pressure which occurred during the first half. However, Moody's
notes that JLR has been subject to significant working capital
seasonality in past years, typically with a peak between the fourth
and first quarter of the financial year, because of higher seasonal
sales and manufacturing activity in the fourth quarter and payables
for the higher production primarily due in the following quarter.

The company's debt maturity profile is well balanced. The next
larger maturities are about GBP1 billion equivalent of bonds
maturing in January and November 2024. In addition, JLR has around
GBP1 billion of bank loans due in calendar years 2024 and 2025, not
including a c. GBP0.6 billion equivalent China Bank RCF subject to
annual review.

STRUCTURAL CONSIDERATIONS

The instrument ratings are aligned with the CFR given the
essentially all unsecured, guaranteed and pari passu capital
structure of the company. There is also an additional RCF arranged
with Chinese banks through Jaguar Land Rover (China) Investment
Co., Ltd., a wholly owned subsidiary of Jaguar Land Rover Holdings
Limited (a guarantor for the rated bonds). This facility is
unsecured and not guaranteed by Jaguar Land Rover Automotive Plc or
any of its subsidiaries. Jaguar Land Rover (China) Investment Co.,
Ltd. sells JLR vehicles imported into China and also owns 25% of
Chery Jaguar Land Rover, the JV with Chery Motors in China (with
one of the guarantors of the rated bonds, Jaguar Land Rover
Limited, owning the remaining 25% of this JV).

LIST OF AFFECTED RATINGS

Affirmations:

Issuer: Jaguar Land Rover Automotive Plc

Probability of Default Rating, Affirmed B1-PD

LT Corporate Family Rating, Affirmed B1

BACKED Senior Unsecured Regular Bond/Debenture, Affirmed B1

Senior Unsecured Regular Bond/Debenture, Affirmed B1

Outlook Actions:

Issuer: Jaguar Land Rover Automotive Plc

Outlook, Changed To Positive From Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Automobile
Manufacturers published in May 2021.

COMPANY PROFILE

JLR is a UK manufacturer of premium passenger cars under the Jaguar
and Land Rover brands and is the global leader of luxury SUVs
through its three families of Range Rover, Discovery and Defender.
JLR operates six sites in the UK, one in Slovakia and has a joint
venture in China. Of its 321k unit wholesales in financial year
2023, the company generated 42% in Europe (of which 19% were in the
UK), 25% in North America, 14% in China and 18% in other overseas
markets, resulting in total revenue of GBP22.8 billion. JLR is 100%
owned by Tata Motors Limited (TML), which is India's largest
automobile company. TML acquired JLR in 2008 from Ford Motor
Company.


NANOSYNTH GROUP: To Enter Into Creditors' Voluntary Liquidation
---------------------------------------------------------------
Eva Mathews at Reuters reports that Nanosynth Group said on May 16
it has proposed to enter into creditors' voluntary liquidation,
after an unsuccessful attempt to procure necessary funding.

According to Reuters, the company had flagged the lack of cash
resources last month, saying it was evaluating potential funding
options.

The AIM-listed firm, which specializes in the synthesis and
application of nanoparticles to create products, had a market
capitalization of GBP1.76 million (US$2.22 million), according to
Refinitiv data, Reuters notes.



                           *********


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

Troubled Company Reporter-Europe is a daily newsletter co-
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Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.

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

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