---

       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, June 28, 2023, Vol. 24, No. 129

                           Headlines



A R M E N I A

ARMENIA: Moody's Alters Outlook on 'Ba3' Issuer Ratings to Stable


A Z E R B A I J A N

MUGANBANK OJSC: S&P Affirms 'B-/B' ICRs on Capital Injection


D E N M A R K

SKILL BIDCO: S&P Assigns 'B' LongTerm ICR, Outlook Stable


F R A N C E

IDEMIA GROUP: Moody's Upgrades CFR to B2 & Alters Outlook to Stable


I R E L A N D

PALMER SQUARE 2023-1: Fitch Assigns Final 'B-sf' Rating on F Notes
SIGNAL HARMONIC I: Moody's Assigns B3 Rating to EUR4MM Cl. F Notes


N E T H E R L A N D S

JUBILEE PLACE 4: S&P Affirms 'CCC(sf)' Rating on Class F Notes


S P A I N

BANCO DE CREDITO SOCIAL: S&P Upgrades ICR to 'BB+', Outlook Stable
BBVA CONSUMO 10: S&P Affirms 'B(sf)' Rating on Class C Notes


S W E D E N

KLARNA HOLDING: S&P Rates New Tier 2 Subordinated Notes 'B+'


U N I T E D   K I N G D O M

ABC ENGINEERING: Ordered to Pay GBP12,000 in Unpaid Wages
ALICYDON LTD: Goes Into Provisional Liquidation
BRANTS BRIDGE 2023-1: S&P Assigns Prelim. BB(sf) Rating on E Notes
CINEWORLD: Screens to Remain Open Despite Administration Plans
GKN HOLDINGS: S&P Assigns 'BB+' ICR After Dowlais Demerger

MARA SEAWEED: Enters Administration Due to Cash Flow Problems
PEPCO GROUP: S&P Assigns Prelim. 'BB-' LT ICR, Outlook Stable
READING FC: At Risk of Going Into Administration Over New Charge
TOGETHER ASSET 2023-1ST1: S&P Assigns Prelim. B Rating on F Notes
TULLOW OIL: S&P Lowers ICR to 'CCC+' After Debt Repurchase

UROPA SECURITIES 2007-1B: S&P Affirms B- Rating on Class B2a Notes

                           - - - - -


=============
A R M E N I A
=============

ARMENIA: Moody's Alters Outlook on 'Ba3' Issuer Ratings to Stable
-----------------------------------------------------------------
Moody's Investors Service has affirmed the Government of Armenia's
Ba3 local and foreign currency long-term issuer ratings, as well as
the foreign currency senior unsecured ratings. Concurrently,
Moody's has changed the outlook to stable from negative.

The decision to change the outlook to stable reflects Moody's
assessment that risks to Armenia's credit profile are balanced,
compared to Moody's last review in March 2022 where risks were
assessed to be skewed to the downside. Armenia's economic and
fiscal metrics have improved markedly over the past year amid a
surge in income, capital and labour from Russia, part of which
Moody's expects to be sustained. Moody's expects Armenia's economic
growth to remain robust over the next few years, even as it
moderates towards trend. The rating agency also expects Armenia's
fiscal metrics to stabilise at around the current levels for the
next few years, with the debt burden at lower levels than
pre-pandemic, making for higher fiscal strength. However,
improvements to the country's economic and fiscal profile are
counterbalanced against higher geopolitical risks.

The affirmation of the Ba3 ratings balances Armenia's robust growth
potential and moderately high institutions and governance strength,
against its relatively small and middle-income economy, which
constrains its capacity to absorb shocks. Armenia also faces
elevated geopolitical risks, which weighs on the sovereign rating.

Armenia's local and foreign currency country ceilings remain
unchanged at Baa2 and Ba1, respectively. The four-notch gap between
the local currency ceiling and the sovereign rating balances the
government's small footprint in the economy and strong institutions
against elevated geopolitical tensions with neighboring countries
and its moderate current account deficits in most years that expose
the economy to external shocks. The two-notch gap between the
foreign currency ceiling and local currency ceiling incorporates
Moody's assessment of Armenia's moderate policy effectiveness and
an open capital account, indicating low transfer and convertibility
risks even in times of stress.

RATINGS RATIONALE

RATIONALE FOR THE CHANGE IN OUTLOOK TO STABLE FROM NEGATIVE

NEAR-TERM GROWTH WILL REMAIN ROBUST, ALTHOUGH LONG-TERM OUTLOOK
REMAINS UNCERTAIN

The Armenian economy expanded by 12.6% in 2022, well above its
trend growth of around 4-5%, amid a surge in income, capital and
labour from Russia, which in turn boosted domestic demand.

Foreign direct investment into Armenia increased by nearly three
times in 2022 to almost $1 billion (5% of GDP). Registered new
foreign-owned companies were estimated to have increased to around
2,500 in 2022 and new non-resident entrepreneurs increased to
5,300, mainly operating in the IT sector. The increase in business
activity contributed to higher gross fixed capital formation growth
of 9.5% year-on-year in 2022, well above the average of 4.6% over
2018-2019. Activity in the information and communication sector
also picked up, registering growth of 50.6% in 2022, compared to
9.1% in 2021.

Total money transfers also increased by about two and a half times
in 2022 compared to a year ago, with about two-thirds of total
inflows coming from Russia. The large increase in money transfers
is consistent with higher inward migration from Russia to Armenia.
Official data show that the net number of Russians that have
arrived in Armenia was about 65,000 in 2022 (equivalent to 2.2% of
total Armenian population in 2021), compared to about 16,000 one
year earlier. In tandem, household spending also increased,
expanding by 8.1% year-on-year in 2022, compared to 3.7% in 2021.

The economy maintained strong momentum in 2023. Moody's projects
real GDP growth to moderate to around 7% in 2023 and 5-6% in 2024,
on the expectation that financial and labour flows will ease from
the heady pace recorded in 2022. A slowdown in global growth and
tighter financial conditions will also moderate activity in
Armenia. Meanwhile, Moody's does not expect a sharp reversal of
financial and labour flows back to Russia over at least the next
two to three years. Instead, the inflow of people, income and
capital is likely to boost levels of economic activity in a
structural way.

In the near-term, there are risks that demand for goods and
services increases faster than supply, leading to a build-up of
inflationary pressures. While headline inflation has declined,
nominal wage growth remains at double-digits while services
inflation is elevated by historical standards, pointing to such
risks. Moody's assumes that Armenia's fiscal and monetary
authorities will contain inflationary pressures, should they build
up, through appropriate policies.

Over the longer-term, Armenia's growth outlook is highly uncertain.
Armenia's growth potential may weaken, if it was unable to reduce
its economic linkages with Russia over time. This is because
Moody's expects Russia's potential growth to be lower than before
the Russia-Ukraine war.  In addition, the labour and capital
inflows that Armenia received over the past year may eventually
reverse, which would weigh on the country's longer-term economic
strength.

DEBT BURDEN WILL REMAIN LOWER THAN PRE-PANDEMIC LEVELS

Armenia's government debt burden reduced significantly to 46.7% of
GDP in 2022, from 60.3% in 2021. The decline was driven by a
combination of high nominal GDP growth, a smaller-than-budgeted
fiscal deficit in 2022, and a significant appreciation of the
dram.

Armenia's fiscal deficit narrowed to 2.2% of GDP in 2022, compared
to a deficit of 4.5% in 2021. Government revenue increased by 22.3%
year-on-year (2021: 8.4%), buoyed by strong growth, high inflation
and commodity prices. Meanwhile, current expenditures increased at
a more modest pace of 12.6% year-on-year. As a share of GDP,
government revenue was about stable at 25.1%, while government
expenditure was about 2% points lower, compared to 2021.

Strong financial flows into Armenia drove an around 20%
appreciation of the dram against the USD in 2022, which in turn,
supported a decline in the debt burden as a large share (58.4% as
of December 2022) of the government's debt is denominated in
foreign currency.

Moody's expects the government debt burden to stabilise at around
45% of GDP over the next two to three years, lower than the average
of 51.7% recorded over 2017-2019. As mentioned above, Moody's
assumes that there will not be a sharp reversal of the financial
flows, leading to a large depreciation in the dram in the near
term. The rating agency also expects the fiscal deficit to remain
moderate at about 3% of GDP over the next two to three years.

GEOPOLITICAL RISKS HAVE INCREASED

Geopolitical risks have increased for Armenia over the past year,
as the Russia-Ukraine war has led to a structural reshaping of
Armenia's security architecture. A diminished Russian regional
presence over the past year have coincided with an increase in
frequency and intensity of military clashes between Armenia and
Azerbaijan over disputed regions. These skirmishes culminated to
deadly clashes between the two countries in the second half of
2022. The frequency and intensity of the military tensions remain
elevated.

Moody's views it unlikely that there will be a lasting resolution
to the conflict between Armenia and Azerbaijan in the foreseeable
future. Tensions between the two countries will remain high, but
unlikely to escalate to full-scale hostilities. Increasing presence
of the EU and the US in the region will likely contribute to
keeping a full-scale conflict at bay. While not Moody's baseline,
should geopolitical tensions develop to full-scale hostilities, it
may spillover to domestic politics, severely crippling
policymaking, weighing on Armenia's economic and fiscal prospects.

RATIONALE FOR THE AFFIRMATION OF THE Ba3 RATING

The affirmation of Armenia's Ba3 rating reflects Moody's assessment
of its credit strengths -  robust growth potential and moderately
high institution and governance strength - which support Armenia's
economic resilience. In addition, the government's debt structure,
which is anchored by its large stock of multilateral and bilateral
financing and borrowed on mostly concessional terms with long
tenors and low interest rates, supports debt affordability and
reduces government liquidity risk.

The rating also takes into account the constraints on Armenia's
credit profile. In particular, the country faces high geopolitical
risks, while the small size of its economy and middle-income levels
limit its capacity to absorb shocks. In addition, Armenia also
faces moderate external vulnerability risk. While it has broadly
adequate foreign exchange reserves, its current account records
deficits in most years. The current account deficit is mostly
financed by debt-generating inflows, rather than foreign direct
investment flows, which exposes the local currency and foreign
exchange reserve adequacy to any weakening in sentiment.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Armenia's ESG credit impact score is moderately negative (CIS-3),
driven primarily by moderately negative social and environmental
risks, which relatively robust governance help mitigate.

Armenia's exposure to environmental risks is moderately negative
(E-3), reflecting the country's moderate exposure to heat and water
stress, sizeable agricultural sector and its landlocked geography
and small land area. Exposure to pollution, water constraints, and
carbon transition risk is low, given the economy's limited
dependence on hydrocarbon revenue and exports.

Armenia's social risk exposure is moderately negative (S-3), driven
by demographic challenges including a small, ageing population and
high youth unemployment that may act as a drag on long-term
potential growth. Emigration by higher skilled Armenians supports
inbound remittances, a mitigating factor, but also exacerbates
demographic dynamics. Recent labour inflows into Armenia may
durably increase labour supply, contributing to potential growth,
if they stay in Armenia for the long term. The pivot to higher
productivity services sectors including information technology may
also help to mitigate these risks.

Armenia's governance risk exposure (G-2) is neutral-to-low,
reflecting relative strength versus peers in economic policymaking,
with a track record of fiscal and monetary prudence, and initial
progress toward institutional reforms. Ongoing challenges include
control of corruption and rule of law, although perceptions have
recently improved and institutional reforms to address these
issues, in large part with international technical assistance, are
among the government's top priorities. The banking system's large
size and still-high level of dollarization pose challenges to the
effectiveness of macroprudential and regulatory policies to
mitigate risks to financial stability.

GDP per capita (PPP basis, US$): 17,795 (2022) (also known as Per
Capita Income)

Real GDP growth (% change): 12.6% (2022) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 8.3% (2022)

Gen. Gov. Financial Balance/GDP: -2.2% (2022) (also known as Fiscal
Balance)

Current Account Balance/GDP: -0.9% (2022) (also known as External
Balance)

External debt/GDP: 78.2% (2022)

Economic resiliency: baa1

Default history: No default events (on bonds or loans) have been
recorded since 1983.

On June 19, 2023, a rating committee was called to discuss the
rating of the Armenia, Government of. The main points raised during
the discussion were: The issuer's economic fundamentals, including
its economic strength, have materially increased. The issuer's
fiscal or financial strength, including its debt profile, has
materially increased. The issuer has become increasingly
susceptible to event risks.

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

FACTORS THAT COULD LEAD TO AN UPGRADE

Moody's would likely upgrade the rating should it become
increasingly likely that the inflows of capital and labour that
Armenia received over 2022 and 2023 are permanent, leading to
sustained increases in productivity growth, materially higher
potential growth and stronger improvements to fiscal strength.
There would also be upward pressures on the credit should there be
a durable easing of tensions with neighboring countries that leads
to a material reduction in geopolitical risks. This could come in
the form of a lasting peace agreement or an enduring ceasefire
between the two countries.

FACTORS THAT COULD LEAD TO A DOWNGRADE

Moody's would likely downgrade the rating if there were a material
reversal of financial or labour inflows that Armenia received over
2022 and 2023, leading to significant deterioration in its economic
and fiscal metrics. An increase in inflationary pressures, not
contained by policy, would also put downward pressure on the
rating. An escalation of tensions with Azerbaijan into full-scale
conflict to the extent that it cripples policymaking and weighs on
economic activity would also put downward pressure on the rating.

The principal methodology used in these ratings was Sovereigns
published in November 2022.




===================
A Z E R B A I J A N
===================

MUGANBANK OJSC: S&P Affirms 'B-/B' ICRs on Capital Injection
------------------------------------------------------------
S&P Global Ratings affirmed its 'B-/B' long- and short-term issuer
credit ratings on Azerbaijan-based Muganbank OJSC. The outlook is
stable.

Rationale

S&P said, "We expect that changes in ownership and a planned new
strategy will strengthen the bank's franchise. In June 2023,
Muganbank's long-standing controlling shareholder Elmir Mehdiyev
distributed his shares to family members, Munir Valiyev and Samir
Valiyev, who together now own 73% of the bank. The other minority
shareholders remain Mr. Mehdiyev's mother Farida Mehdiyeva and his
wife Vafa Valiyeva. As a result, Mr. Mehdiyev's stake has reduced
to less than 1%. We think the new shareholders could support the
bank in the future through their business connections and income
from their other businesses. Advisers to the new shareholders are
currently developing a strategic plan to attract midsize companies
for lending, cash management, and salary projects of their
employees; proactively recover legacy nonperforming loans (NPLs);
and attract low-cost deposits. This, in turn, should support the
bank's net interest margin and profitability.

"Meanwhile, we expect Muganbank's capitalization to decline in 2024
since the freshly injected capital will be used for growth.
Following the shareholders' AZN55 million capital injection in the
first half of 2023, we expect our risk-adjusted capital (RAC) ratio
to improve to about 5.4%-5.8% by year-end 2023 from 2.4% at
year-end 2022. That said, the new capital will be used for loan
portfolio growth in the coming two years. As a result, we expect
our RAC ratio will decline to less than 5% in 2024-2025."

The new shareholders plan to increase the bank's profitability.
Muganbank has not achieved meaningful structural improvements in
profitability in the past two years. It reported near break-even
results in 2020-2022 and a loss in the first four months of 2023.
The new shareholders aim to increase profitability through reducing
the cost of funding, increasing the amount of higher-margin loans,
and optimizing operating costs.

Muganbank's asset quality remains weaker than that of its domestic
peers, but we expect the positive trend in NPL reduction to resume.
Muganbank's Stage 3 loans increased to 17.8% of total loans at
year-end 2022 from 15.8% a year earlier, compared with the system
average that S&P estimates at 6%-8%. Stage 2 loans stood at 13.3%
at year-end 2022. Muganbank still has a high share of legacy
problem loans, especially to pensioners and entrepreneurs, which
peaked at 37% at year-end 2018. These NPLs have been unresolved
since the 2016 economic downturn, which followed a sharp decline in
oil prices and local currency devaluation. The new shareholders
plan to proactively recover and write off NPLs with the aim of
reducing Stage 3 loans below 10% in the next 24 months.

S&P said, "We envision a broadly stable funding profile and
adequate liquidity over the next 12 months. The bank plans to
reduce its cost of funding through replacing expensive retail term
deposits with lower-cost current accounts of corporates and
individuals. In 2021-2022, Muganbank was able to increase its
deposit portfolio by 79% through offering higher rates than the
market average, which pushed up its cost of funds. A deposit
outflow of about 20% of the portfolio in the first half 2023 was
caused by a reduction in corporate deposits, in line with
historical trends in the market in the first quarter, as well as an
intentional reduction of interest rates on retail deposits to
reduce the cost of funding. We assume the new shareholders would be
able to attract new depositors at lower cost, as well as new
funding from international development financial institutions. We
assume the bank's loan-to-deposit ratio is unlikely to deteriorate
materially. As of June 16, 2023, the bank's regulatory liquidity
ratio was 58.7%, well above the minimum of 30%."

Outlook

The stable outlook on Muganbank reflects S&P's expectation that the
bank will maintain a stable financial profile and adequate
liquidity while gradually expanding its business, reducing its
legacy problem loans and improving its profitability over the next
12 months.

Downside scenario

S&P said, "Although not in our base-case scenario, we would view
any sign of weakening liquidity over the next 12 months as a
trigger for a negative rating action. In addition, a weakening of
asset quality leading to material pressure on the bank's solvency
ratios could lead to a downgrade. This could happen for example if
above-average credit growth leads to a rapid buildup of credit
risk."

Upside scenario

A positive rating action could follow if the bank demonstrated a
track record of material and sustainable improvement of its asset
quality and profitability in line with the system average and
regional peers', while also maintaining a stable funding and
liquidity profile.

Environmental, Social, And Governance
ESG credit indicators: E-2, S-2, G-4

S&P said, "Governance factors are a negative consideration in our
credit rating analysis of Muganbank. This is because we consider
governance and transparency in Azerbaijan's banking system to be
weak. Many aspects of ownership, management, and governance remain
opaque and lead to high risks. We believe that significant
corporate governance deficiencies subsist in Azerbaijan. The
significant shadow economy in the country compounds the pervasive
level of corruption. We consider governance risks at Muganbank to
be in line with those in the banking sector."




=============
D E N M A R K
=============

SKILL BIDCO: S&P Assigns 'B' LongTerm ICR, Outlook Stable
---------------------------------------------------------
S&P Global Ratings related that CVC Capital Partners (CVC) is
acquiring a majority stake in Skill BidCo ApS, a new holding
company set up to own Danish freight forwarder and logistics
services group Scan Global Logistics (SGL).  The existing
shareholder AEA Investors (AEA) will retain a participation.  The
group plans to raise $765 million-equivalent dual currency senior
secured notes due 2028 and retain its existing $40 million and
Danish krone (DKK) 450 million super senior revolving credit
facilities.  The proceeds from the debt issuance, the $771 million
equity provided by CVC, and the $245 million equity rolled over
from AEA and management will fund CVC's leveraged buyout of SGL.
Leases will be rolled over, and the company will have a cash
balance of $120 million at closing.

Accordingly, S&P assigned its 'B' long-term issuer credit rating to
Skill BidCo ApS. S&P also assigned 'B' issue and '4' recovery
ratings to the EUR750 million senior secured notes due 2028,
indicating average recovery (about 40%) prospects at the time of
default. At the same time, S&P withdrew its ratings on SGLT Holding
I LP, the former parent holding company of the SGL group, and SGL
International A/S at the issuer's request.

The stable outlook on Skill BidCo reflects S&P's expectation that
the group's credit metrics will remain steady over the coming 12
months, with S&P Global Ratings-adjusted debt to EBITDA at below 6x
and funds from operations (FFO) cash interest cover at about 2x.

S&P said, "The group's highly leveraged capital structure, as
reflected in S&P adjusted debt to EBITDA peaking at about 5.5x in
2023 and its private equity ownership, constrain our view of the
group's creditworthiness. CVC completed the acquisition of a 73%
stake in SGL from AEA. The financing package included EUR750
million senior secured notes due in 2028 borrowed by Skill BidCo,
the acquisition vehicle for SGL and the consolidated group's
reporter going forward. SGL's 2024 and 2025 notes were redeemed and
partly rolled over into the new issue. Also, the group upsized its
existing USD and DKK super senior RCFs to $75 million and DKK750
million, respectively. Maturities were extended to 2027. Our
assessment of the group's financial risk profile as highly
leveraged considers the group's private-equity ownership and
potentially aggressive strategy to maximize shareholder returns
over the investment horizon.

"The ownership changes and debt issuance does not materially weaken
SGL's credit quality, in our view. We assume the ownership change
will not affect SGL's financial policy. Although CVC owns a 73%
stake of SGL, it will control the group jointly with AEA, which
rolled over a portion of its equity and retains about 20% in the
group with management owning the remainder. We believe that growth
through mergers and acquisitions (M&A) remains a key strategic
priority for SGL. By expanding through acquisitions, SGL aims to
enhance its entrenchment with existing, large, international
clients that value SGL's ability to deliver complex multi-staged
logistics solutions globally. In its external growth efforts, SGL
normally targets geographic diversification, market share, and
increasing its contracted revenue base and absolute scale. We
understand that its acquisition targets are typically relatively
small but well-established and profitable players, resulting in low
integration costs and quick onboarding. We expect the group will
fund sizable transformational M&A through a combination of internal
cash, equity, and debt, as was the case in the past. SGL has kept
annual M&A-related special items low ($10 million-$20 million) and
has been able to integrate the acquired companies quickly and
profitably.

"We expect that the group's leverage will depend largely on the
trajectory of SGL's EBITDA.Post-closing, SGL's adjusted debt will
increase by about 35% to $875 million, from our adjusted end-2022
figure. SGL's debt primarily consists of the new notes and leases,
and we calculate leverage of about 5.5x for 2023. In the near term,
because we think absolute debt levels will remain largely unchanged
and bolt-on acquisitions will be funded from available liquidity,
EBITDA developments will most likely dictate the evolution of the
group's leverage metrics. SGL generated a robust free operating
cash flow (FOCF) of about $260 million in 2022, boosted by a
material working capital release of about $130 million (after a
substantial outflow of $160 million in 2021 because receivables
from customers surged due to the record-high freight rates). That
said, such an FOCF level is unlikely to be sustainable. Our base
case indicates a normalization to about $50 million-$60 million in
2023, which we view still as adequate for the rating, due to a
combination of higher cash interest burden, our expectation of
normalized working capital trends, and typically low capital
expenditure (capex) requirements."

The rating on the group reflects SGL's position as a midsize,
asset-light freight forwarder and logistics services provider in
the highly fragmented and price-competitive logistics industry, and
its highly leveraged financial profile. The business risk profile
assessment reflects SGL's large geographic footprint in Europe,
North America, and Asia-Pacific. It enables the group to benefit
from broad reach, demand diversity, and value propositions,
resulting in new customers and cross-selling opportunities. The
logistics industry is price-competitive and fragmented, with the
top three players accounting for just about 12% of the total
market. SGL, with an adjusted EBITDA of about $200 million in 2022,
remains a small player, compared to, for example, DSV A/S or XPO
Inc. which S&P rates in the same peer group with a respective 2022
EBITDA of about $4.2 billion and $1 billion. However, acquisitions
have helped SGL increase its global footprint, win market shares,
and expand its absolute EBITDA base, improving its pricing power
somewhat. Furthermore, it has a solid track record of customer
retention because of its expertise in niche markets and provision
of tailor-made multi-modal logistic solutions. As of end-December
2022, SGL was present in 45 countries, including the Americas,
EMEA, Southeast Asia, and Asia-Pacific. It has a network of 140
offices and has grown its global presence since end-December 2022.
The group has also been able to reap benefits from its
collaboration with the UN and UNICEF, with large orders received
for help in regions like Kabul and Haiti. Accounting for 10%-15% of
SGL's revenue, these operations are not the largest contributors,
but they are recurring, and S&P understands that they generate
above-average returns.

SGL's operating performance may experience softening demand amid
macroeconomic headwinds in major global economies. Like peers in
the wider logistics industry, SGL has demonstrated resilient
operating performance in 2021-2022, supported by all-time-high air
and shipping freight rates, leading to 2022 revenue almost tripling
from 2020. Robust trade volumes and a diverse customer base, with
limited correlation between individual customers and end
industries, along with new contracts in aid and humanitarian
logistics projects, and government and defense, were the main
drivers behind the strong financial results. Factoring in
contributions from the acquired companies, SGL's EBITDA (after
special items) outstripped a $200 million mark in 2022, from $116
million in 2021. Nevertheless, many major economies and
contributors to trade volumes are facing inflationary pressures and
rising interest rates in 2023. Also, in line with our expectation,
real consumer spending moderated in 2023, and retail restocking is
muted given the still-high inventory levels and less uncertainty
over the supply chains and delivery times. S&P sid, "We therefore
anticipate growth in freight volumes to slow (our base case is that
cargo volumes will track global GDP growth, which will slow to
under 3.0% in 2023, from 3.6% in 2022 and 5.8% in 2021).
Conversely, spot rates for air and ocean as well as road
transportation started to see significant declines in late 2022,
from the previous all-time highs, and we have included these much
lower freight rates in our 2023 base case. Since SGL, like other
freight forwarders, reports transportation costs as revenue, which
it then bills to its customers, we therefore forecast a decline in
organic revenue in 2023 (from record highs in 2022) and in EBITDA
to potentially $160 million-$170 million. This reflects our
conservative view of the overarching industry trends at this
time."

The stable outlook reflects S&P's expectation that the group's
credit metrics will remain broadly unchanged over the coming 12
months, with adjusted debt to EBITDA at below 6x and adjusted FFO
cash interest cover at about 2x.

S&P would take a negative rating action if SGL's:

-- EBITDA generation (pro forma acquisitions) significantly
underperforms S&P's base case, leading to adjusted debt to EBITDA
rising above 6x without prospects for a quick reduction;

-- FOCF (after lease payments) turns sustainably negative; or

-- FFO cash interest cover falls significantly below 2x on a
sustained basis.

These developments could stem from unforeseen operational setbacks,
such as the loss of a few key customers and reduced demand from
existing clients. Aggressive external growth initiatives involving
large new debt not compensated for by corresponding growth in
earnings or unexpected material shareholder remuneration could also
lead to a negative rating action.

S&P could also downgrade SGL if the group's liquidity position
deteriorates unexpectedly.

S&P views an upgrade over the next 12 months as unlikely because
SGL's financial sponsor ownership and acquisitive track record
preclude sustained financial leverage reduction. However, it could
consider raising the rating in the medium term if the group
demonstrates a prudent financial policy and sustainably reduces
financial leverage. In such a scenario, ratings upside would hinge
on adjusted debt to EBITDA falling and remaining well below 5x,
while also supported by the owners' commitment to maintain a
financial policy that would sustain such an improved ratio long
term.

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

S&P said, "Governance factors are a moderately negative
consideration in our credit analysis of SGL. Our assessment of the
group's financial risk as highly leveraged reflects corporate
decision-making that prioritizes the interests of the controlling
owners, in line with our view of the majority of entities owned by
private equity sponsors. Our assessment also reflects generally
finite holding periods and a focus on maximizing shareholder
returns."

As an asset-light freight forwarder and logistics services
provider, the group is only indirectly exposed to environmental
risks relevant to the transportation sector.




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

IDEMIA GROUP: Moody's Upgrades CFR to B2 & Alters Outlook to Stable
-------------------------------------------------------------------
Moody's Investors Service has upgraded IDEMIA Group's long term
corporate family rating to B2 from B3 and the probability of
default rating to B2-PD from B3-PD. Concurrently, Moody's has
upgraded to B2 from B3 the ratings of the EUR300 million backed
senior secured revolving credit facility (RCF) and EUR2 billion
equivalent backed senior secured term loan B (TLB). The outlook has
been changed to stable from positive.

RATINGS RATIONALE

The upgrade reflects the continued strong performance of the
company during 2023 after a record 2022 and the proposed maturity
extension of its debt instruments.

In the first quarter of 2023 (1Q23) revenue grew by 18.6% comparing
with the same period a year earlier. Enterprise division's growth
of 27.3% was the main driver for revenue growth but the government
division also showcased robust growth of 6.8%. The company's EBITDA
margin continues to exhibit recent trends at 21.5% during 1Q23,
above the 21% of full year 2022. In the last twelve months (LTM)
ended in March 2023, the company adjusted EBITDA was already
slightly above the 2023 budget at EUR602 million.

This level of profitability is particularly important because it
was attained during a period in which the chip shortage has started
to ease, hence giving a positive indication that recent
profitability level of the enterprise division is somewhat
sustainable. Although there are still uncertainties as to how
medium-to-long term margins will evolve, Moody's believe that
IDEMIA's competitive position, scale, and in-house chip design
capabilities will likely continue to be supportive of the company's
operations compared to smaller competitors. Additional positive mix
effects and cost saving initiatives should also support margins.
Nonetheless, Moody's believe the evolution of the enterprise
segment profitability margins will remain central to the rating and
hence be closely monitored.

Conversations with management regarding 2Q23 trading and the
visibility over the second half of 2023 also inform Moody's revised
estimate that IDEMIA will generate company-adjusted EBITDA above
EUR600 million during 2023. Consequently, Moody's forecast that
credit metrics will remain commensurate with the B2 rating level
during 2023 and 2024; e.g. Moody's-adjusted free cash flow
(FCF)/debt around 6-7% and Moody's-adjusted EBITA/interest expenses
between 3.1x in 2023 (including the benefit of interest rate
hedges) and 2.6x in 2024 (no hedging in place).

Additionally, the proposed amend and extend (A&E) transaction is
positive in that it addresses refinancing needs until September
2028. Considering market conditions and as highlighted before,
Moody's expect that the repricing of the capital structure implicit
in the A&E transaction is manageable from a FCF generation and
interest coverage perspective.

The B2 CFR benefits from high barriers to entry in IDEMIA's various
business lines; the company's strong market share in its key
segments; its good geographical and customer diversification; and
its adequate liquidity. These factors are partly constrained by the
company's relatively limited recurring revenue and a lack of
visibility in certain business lines, given the unevenness of new
contracts and renewal cycles, as well as technological risks
inherent in its business model.

RATING OUTLOOK

IDEMIA's stable rating outlook reflects Moody's expectation that
the company's credit metrics will remain within the B2 ratings
triggers over the next 12 to 18 months. The outlook incorporates
Moody's assumption that there will be no significant increase in
leverage from any future debt-funded acquisitions or shareholder
distributions, and that the company will maintain adequate
liquidity.

LIQUIDITY

IDEMIA has good liquidity, supported by EUR362 million of cash on
balance as of March 2023 and a fully undrawn EUR300 million backed
senior secured RCF. Additionally, Moody's forecast that the
company's Moody's-adjusted FCF will be in excess of EUR100 million
over 2023 and 2024. The backed senior secured RCF has a springing
leverage covenant that is only tested once 35% of the RCF is drawn.
If tested, the maximum net leverage is set at 7.8x. Moody's do not
currently expect a breach under the backed senior secured RCF
covenant.

STRUCTURAL CONSIDERATIONS

IDEMIA's backed senior secured TLB and backed senior secured RCF
rank pari passu and are both rated B2, in line with the CFR,
reflecting the absence of any significant liabilities ranking ahead
or behind. The probability of default rating (PDR) of B2-PD is
aligned with the CFR, reflecting Moody's assumption of a 50% family
recovery rate, in line with Moody's practice for covenant-lite
all-first-lien loan capital structures.

The backed senior secured bank credit facilities benefit from
guarantees equivalent to a minimum of 80% of the company's EBITDA
and gross assets. The security package includes share pledges,
along with pledges over bank accounts and intercompany receivables,
which Moody's consider weak.

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

Positive rating pressure could develop if the company establishes a
track record of maintaining profitability around or above 2022
levels, such that Moody's-adjusted leverage remains below 4.5x;
Moody's-adjusted EBITA/interest expenses improves towards 3.0x; or
Moody's-adjusted FCF/debt improves above 10%, all on a sustained
basis. Any positive rating action would also require the company to
maintain adequate liquidity. Clarity regarding financial policy,
that could accommodate a higher rating, is also an important
consideration.

Negative rating pressure could develop if IDEMIA's revenue and
EBITDA development is weak, bringing into question the
sustainability of the 2022 performance. Additionally, negative
rating pressure could arise if Moody's-adjusted leverage is above
5.5x; Moody's-adjusted FCF/debt is below 5%; or Moody's-adjusted
EBITA / interest expenses is below 2.0x, all on a sustained basis;
or if liquidity deteriorates.

LIST OF AFFECTED RATINGS

Upgrades:

Issuer: IDEMIA Group

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

Assignments:

Issuer: IDEMIA Group

BACKED Senior Secured Bank Credit Facility, Assigned B2

Outlook Actions:

Issuer: IDEMIA Group

Outlook, Changed To Stable From Positive

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Headquartered in Courbevoie, France, IDEMIA is an international
company that develops, manufactures and markets specialized
security technology products and services mainly in identity &
public security, payments and telecommunications markets.

IDEMIA generated revenue of EUR2.65 billion and company-adjusted
EBITDA of EUR555 million in 2022. The company is organized along
two divisions: Secured Enterprise Transactions (key products
include payment cards, SIM cards, solutions for digital payment and
digital connectivity) and Government Solutions (products include
secured physical or digital identification solutions, biometric
systems for public security verticals such as border control, law
enforcement, access control).




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

PALMER SQUARE 2023-1: Fitch Assigns Final 'B-sf' Rating on F Notes
------------------------------------------------------------------
Fitch Ratings has assigned Palmer Square European CLO 2023-1 DAC
final ratings.

   Entity/Debt            Rating                   Prior
   -----------            ------                   -----

Palmer Square European
CLO 2023-1 DAC

   A Loan                     LT  AAAsf   New Rating    AAA(EXP)sf

   A Note XS2618888155        LT  AAAsf   New Rating    AAA(EXP)sf

   B-1 XS2618888072           LT  AAsf    New Rating    AA(EXP)sf
   B-2 XS2618888585           LT  AAsf    New Rating    AA(EXP)sf
   C XS2618888825             LT  Asf     New Rating    A(EXP)sf  
   D XS2618888668             LT  BBB-sf  New Rating    BBB-(EXP)sf

   E XS2618890219             LT  BB-sf   New Rating    BB-(EXP)sf

   F XS2618889476             LT  B-sf    New Rating    B-(EXP)sf
   Subordinated XS2618889633  LT  NRsf    New Rating    NR(EXP)sf

TRANSACTION SUMMARY

Palmer Square European CLO 2023-1 DAC is a securitisation of mainly
senior secured obligations (at least 90%) with a component of
senior unsecured, mezzanine, second-lien loans and high-yield
bonds. Note proceeds were used to purchase a portfolio with a
target par of EUR400 million. The portfolio is actively managed by
Palmer Square Europe Capital Management LLC. The collateralised
loan obligation (CLO) has an approximately 4.5-year reinvestment
period and an 8.5-year weighted average life (WAL) test.

KEY RATING DRIVERS

Average Portfolio Credit Quality (Neutral): Fitch places the
average credit quality of obligors at 'B+'/'B'. The Fitch weighted
average rating factor (WARF) of the identified portfolio is 23.1.

High Recovery Expectations (Positive): At least 90% of the
portfolio comprises senior secured obligations. Fitch views the
recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets. The Fitch weighted
average recovery rate (WARR) of the identified portfolio is 65.2%.

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

Portfolio Management (Neutral): The transaction includes two Fitch
matrices, both effective at closing, corresponding to a top-10
obligor concentration limit at 25%, fixed-rate asset limits of 7.5%
and 12.5% and a maximum 8.5-year WAL test. The transaction also has
two matrices effective one-year post closing if the collateral
principal amount (defaults at Fitch-calculated collateral value) is
at least at the target par and corresponds to a maximum 7.5-year
WAL test.

The transaction has an approximately 4.5-year reinvestment period
and includes reinvestment criteria similar to those of other
European transactions. Fitch's analysis is based on a stressed-case
portfolio with the aim of testing the robustness of the transaction
structure against its covenants and portfolio guidelines.

Cash Flow Modelling (Positive): The WAL used for the transaction's
stressed portfolio analysis is 12 months less than the WAL test to
account for the strict reinvestment conditions envisaged after the
reinvestment period. These include passing both the coverage tests
and the Fitch 'CCC' bucket limitation, together with a
progressively decreasing WAL covenant. In Fitch's opinion these
conditions reduce the effective risk horizon of the portfolio
during stress periods.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade

A 25% increase of the mean default rate (RDR) across all ratings
and a 25% decrease of the recovery rate (RRR) across all ratings
would result in a downgrade of the class F notes.

Downgrades, which are based on the identified portfolio, may occur
if the loss expectation is larger than initially assumed, due to
unexpectedly high levels of defaults and portfolio deterioration.
Due to the better metrics of the identified portfolio than the
Fitch-stressed portfolio the rated notes display a rating cushion
to a downgrade of up to four notches for the class F notes, three
notches for the class D and E notes, two notches for the class B
notes and one notch for the class C notes. For 'AAAsf' rated notes
they are already at the highest rating on Fitch's scale and cannot
have a rating cushion.

Should the cushion between the identified portfolio and the
Fitch-stressed portfolio erode due to manager trading or negative
portfolio credit migration, a 25% increase of the mean RDR across
all ratings and a 25% decrease of the RRR all ratings of the
stressed portfolio would lead to downgrades of up to four notches
for the rated notes.

Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade

A 25% reduction of the mean RDR across all ratings and a 25%
increase in RRR across all ratings would result in upgrades of two
notches upgrade for the class B and D notes, three notches for the
class E notes, four notches for the class F notes and no more than
one notch for the class C notes. The 'AAAsf' rated notes cannot be
upgraded.

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

USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10

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

DATA ADEQUACY

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

Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.


SIGNAL HARMONIC I: Moody's Assigns B3 Rating to EUR4MM Cl. F Notes
------------------------------------------------------------------
Moody's Investors Service announced that it has assigned the
following definitive ratings to notes issued by Signal Harmonic CLO
I DAC (the "Issuer"):

EUR195,000,000 Class A Senior Secured Floating Rate Notes due
2036, Definitive Rating Assigned Aaa (sf)

EUR35,750,000 Class B Senior Secured Floating Rate Notes due 2036,
Definitive Rating Assigned Aa2 (sf)

EUR15,900,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2036, Definitive Rating Assigned A2 (sf)

EUR19,500,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2036, Definitive Rating Assigned Baa3 (sf)

EUR19,850,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2036, Definitive Rating Assigned Ba3 (sf)

EUR4,000,000 Class F Senior Secured Deferrable Floating Rate Notes
due 2036, Definitive Rating Assigned B3 (sf)

RATINGS RATIONALE

The rationale for the ratings is based on a consideration of the
risks associated with the CLO's portfolio and structure as
described in Moody's methodology.

The Issuer is a managed cash flow CLO. At least 90% of the
portfolio must consist of senior secured obligations and up to 10%
of the portfolio may consist of senior unsecured obligations,
unsecured senior obligations, second-lien loans, first lien last
out loans and high yield bonds. The portfolio is expected to be 90%
ramped as of the closing date and to comprise of predominantly
corporate loans to obligors domiciled in Western Europe.

Signal Harmonic Limited ("Signal Harmonic") and Signal Capital
Partners Limited ("Signal Partner") will manage the CLO.  Signal
Harmonic will direct the selection, acquisition and disposition of
collateral which are not bonds on behalf of the Issuer while Signal
Partner will perform such functions for the collateral which are
bonds. They may engage in trading activity, including discretionary
trading, during the transaction's four-year reinvestment period.
Thereafter, subject to certain restrictions, purchases are
permitted using principal proceeds from unscheduled principal
payments and proceeds from sales of credit risk obligations.

The Class F Notes are delayed draw tranche. On the closing date,
the Issuer will subscribe to Class F Notes with a notional of
EUR4,000,000 for a zero net cash flow. During the reinvestment
period only, subordinated noteholders may direct the Issuer to sell
the Class F Notes. Any sale proceeds shall be deposited in either,
or in any combination of (i) the principal account (a) in mandatory
redemption in part of the Subordinated Notes or (b) to acquire
assets and/or (ii) the interest account.

In addition to the six classes of notes rated by Moody's, the
Issuer has issued EUR36,430,000 of Subordinated Notes which are not
rated.

The transaction incorporates interest and par coverage tests which,
if triggered, divert interest and principal proceeds to pay down
the notes in order of seniority.

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.

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.

Moody's modeled the transaction using a cash flow model based on
the Binomial Expansion Technique, as described in Section 2.3 of
the "Moody's Global Approach to Rating Collateralized Loan
Obligations" rating methodology published in December 2021.

Moody's used the following base-case modeling assumptions:

Par Amount: EUR325,000,000

Diversity Score: 46

Weighted Average Rating Factor (WARF): 2888

Weighted Average Spread (WAS): 4.30%

Weighted Average Coupon (WAC): 5.00%

Weighted Average Recovery Rate (WARR): 43.25%

Weighted Average Life (WAL)*: 7.00 years

*The covenanted base case weighted average life is 8 years. Moody's
modelled 7 years WAL according to Moody's methodology.

Moody's has addressed the potential exposure to obligors domiciled
in countries with local currency ceiling (LCC) of A1 or below. As
per the portfolio constraints, exposures to countries with LCC
between A1 to A3 cannot exceed 10 and exposures of LCC below A3 is
not greater than 0%.




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

JUBILEE PLACE 4: S&P Affirms 'CCC(sf)' Rating on Class F Notes
--------------------------------------------------------------
S&P Global Ratings raised to 'AA (sf)' from 'AA- (sf)', 'A+ (sf)'
from 'A (sf)', and 'BBB (sf)' from 'BBB- (sf)' its credit ratings
on Jubilee Place 4 B.V.'s class B-Dfrd, C-Dfrd, and D-Dfrd notes,
respectively. At the same time, S&P affirmed its 'AAA (sf)', 'B-
(sf)', and 'CCC (sf)' ratings on the class A loan and class E-Dfrd
and F-Dfrd notes, respectively.

S&P Said, "Our ratings address timely receipt of interest and
ultimate repayment of principal for the class A loan, and ultimate
receipt of interest and repayment of principal for the class B-Dfrd
to F-Dfrd notes. Interest on each class except the class A loan is
deferrable until they become the most senior outstanding.
Previously deferred interest is due only at maturity.

"The rating actions follow our full analysis of the most recent
information received and reflect the transaction's current
structural features. Our review reflects the application of our
relevant criteria."

The performance of the loans in the collateral pool since closing
has been stable. As of the March 2023 investor report, arrears
account for only 0.30% of the outstanding pool balance and no
losses have been recorded since closing.

The loans' amortization decreased the weighted-average current
loan-to-value ratio, leading to slightly decreased weighted-average
foreclosure frequency (WAFF) and weighted-average loss severity
(WALS) levels for all ratings.

  WAFF and WALS levels

  RATING LEVEL     WAFF (%)     WALS (%)

  AAA              22.85        49.19

  AA               15.45        43.15

  A                11.53        32.63

  BBB               8.05        26.17

  BB                4.13        21.37

  B                 3.26        16.87

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

S&P's operational, legal, and counterparty risk analysis for the
transaction remains unchanged since closing.

The notes' sequential amortization has slightly increased available
credit enhancement for the class A loan and class B-Dfrd, C-Dfrd,
D-Dfrd, and E-Dfrd notes.

  Credit enhancement levels

  CLASS     CREDIT ENHANCEMENT (%)*     CREDIT ENHANCEMENT
                                         AT CLOSING (%)*

   A             15.10                    14.93

   B-Dfrd         9.02                     8.93

   C-Dfrd         6.24                     6.18

   D-Dfrd         4.22                     4.18

   E-Dfrd         1.69                     1.68

   F-Dfrd         0.43                     0.43

   X-Dfrd         N/A                       N/A

  *Including the liquidity reserve.
  N/A--Not applicable.

The transaction has a liquidity reserve fund covering shortfalls in
senior fees, class S1 and S2 payments, senior swap payments, and
interest on the class A notes. Any excess over the required amount
will be released to the principal priority of payments and generate
credit enhancement for the rated notes.

S&P said, "Our model cash flow results have improved because of the
lesser swap outflow since closing due to the lower notional in swap
schedule, which helps to cure interest shortfalls, and the higher
amount collected from the swap counterparty as a result of the
rising interest rate environment--with three-month Euro Interbank
Offered Rate (EURIBOR) currently at 3.5% versus 0.0% at closing.

"During our review we also considered the stable assets performance
and the slowdown in prepayments in similar Dutch buy-to-let (BTL)
transactions because of the rising rates environment.

"In addition to our standard cash flow analysis, we also considered
sensitivity to reductions in excess spread caused by prepayments,
potential increased exposure to tail-end risk, potential further
rises in three-month EURIBOR, and the relative positions of
tranches in the fully sequential capital structures to determine
the ratings on the class A loan and class B-Dfrd to F-Dfrd notes.

"We therefore raised our ratings on the class B-Dfrd, C-Dfrd, and
D-Dfrd, and affirmed our ratings on the class A loan and class
E-Dfrd and F-Dfrd notes. The available credit enhancement for the
class A loan and class B-Dfrd to F-Dfrd notes is commensurate with
the assigned ratings.

"The class E-Dfrd notes do not pass at the 'B' rating level in our
run with a higher three-month EURIBOR. However, they pass in our
steady state run where we consider actual servicing fees, the
expected level of prepayment, and do not apply the commingling
stress. In our view, the repayment of the class E-Dfrd notes is not
dependent upon favorable economic, financial, and business
conditions, and therefore, based on our methodology for assigning
'B-' and 'CCC' ratings, we have affirmed our 'B- (sf)' rating on
the class E-Dfrd notes.

"The class F-Dfrd notes do not pass at the 'B' rating level in any
run, even in the steady state run. In the steady state run, they
miss only one scenario out of the eight we run. We believe that the
repayment of the class F-Dfrd notes is dependent upon favorable
economic, financial, and business conditions, and therefore, based
on our methodology for assigning 'B-' and 'CCC' ratings, we have
affirmed our 'CCC (sf)' rating on the class F-Dfrd notes.

"We expect Dutch inflation to remain high in 2023, at 4.8%.
Although high inflation is overall credit negative for all
borrowers, inevitably some borrowers will be more negatively
affected than others. To the extent inflationary pressures
materialize more quickly or more severely than currently expected,
risks may emerge. This is a BTL transaction and although underlying
tenants may be affected by inflationary pressures, borrowers in the
pool are generally considered to be professional landlords that
benefit from diversification of properties and rental streams.
Borrowers in this transaction mostly pay a fixed rate of interest
with an average switch to floating rate in 2027. As a result, in
the short to medium term, they are protected from rate rises. Our
credit and cash flow analysis and related assumptions consider the
transaction's ability to withstand the potential repercussions of
the current economic environment, including higher inflation, and
higher defaults."

Jubilee Place 4 is a Dutch RMBS transaction that closed in June
2022 and securitizes a pool of BTL loans secured on first-ranking
mortgages in the Netherlands.




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

BANCO DE CREDITO SOCIAL: S&P Upgrades ICR to 'BB+', Outlook Stable
------------------------------------------------------------------
S&P Global Ratings raised its long-term issuer credit ratings on
Banco de Credito Social Cooperativo S.A. (BCC) and Cajamar Caja
Rural S.C.C. (Cajamar), core subsidiaries of GCC, to 'BB+' from
'BB'. At the same time, S&P affirmed the short-term ratings on the
subsidiaries at 'B'. The outlook is stable.

S&P also raised the resolution counterparty ratings on both
companies to 'BBB/A-2' from 'BBB-/A-3' and raised the ratings on
the senior unsecured debt to 'BB+' from 'BB' and ratings on the
subordinated debt to 'B+' from 'B'.

S&P said, "The upgrade reflects our view that GCC's earnings
capacity will improve significantly over this year and next,
reducing the gap with that of higher-rated peers. Higher interest
rates will represent a meaningful push to earnings, which--coupled
with cost savings from previous restructuring--will make GCC's
operating income before provisions almost double in 2023 when
compared with 2022. Some of these earnings will be used in 2023 to
complete the provisioning of legacy assets and to finance early
retirements, thus they will not be fully visible in the group's
bottom line. But, in 2024, we expect return on equity to climb to
about 8.3%-8.8%. Equally, the bank's actions to reduce its employee
network during 2023 will subsequently bring additional efficiency
gains. Therefore, we believe the group should close the gap with
peers, with its cost-to-income ratio reducing to 53% in 2024,
compared with 67% at end-2022. We therefore removed our negative
comparable rating analysis adjustment, and improved the group
credit profile (GCP) to 'bb+' from 'bb'.

"We expect GCC's capital to remain sound, with our risk-adjusted
capital (RAC) ratio sustainably above 9% through 2024.GCC's capital
has strengthened over the past years, thanks to retained profits,
regular contributions from its cooperative partners, and
significant deleveraging. We expect the group to maintain a RAC
ratio of 9.3%-9.8% over the next 12-18 months despite continued
growth, compared with 9.6% at end-2022.

"Furthermore, we expect the clean-up of legacy assets to continue
and modest problem loans to emerge from new loan production. GCC's
underwriting standards have improved and the quality of new loan
production is better than that of the legacy portfolio. The loan
book is largely concentrated in Cajamar's traditional business
sectors, such as agribusiness, small and midsize enterprises, and
professionals (which represented 47% of the loan book as of
end-March 2023). The reported nonperforming loan ratio of new
production stands at about 1.6% for new loans granted since 2018.
We expect nonperforming assets to stand below 5% of gross loans by
2024, only slightly below the levels reported at end-2022 (5.3%).
The cleanup of the legacy portfolio will continue, and the
additional provisions to be recognized in 2023 (which will keep
cost of risk elevated (at around 115 basis points as per our
estimate) will help that process. But, we also expect some new
problem loans to emerge, even if manageable.

"In addition to the above, the ratings reflect GCC's resilient
cooperative franchise in its core regions. The group's strong ties
with the local communities in which it operates provides a funding
advantage. Its funding profile is primarily retail-oriented, with
customer deposits accounting for 75% of its funding base at
end-March 2023. We consider these deposits sticky, granular, and
cheap, 71% of which are covered by the deposit guarantee fund.

"The ratings on BCC and Cajamar reflect the franchise and
creditworthiness of GCC. We analyze the cooperative banking group
by using GCC's consolidated financial information. We consider both
BCC and Cajamar as core subsidiaries, and rate them at the same
level as the GCP.

"The stable outlook indicates that we expect GCC will continue
improving its operating profitability and efficiency over the next
12-18 months, on the back of higher interest rates and lower credit
provisions. It also indicates that we expect the group will
preserve its improved asset quality and capitalization with a RAC
ratio of 9.3%-9.8% by end-2024.

"We could lower the ratings on the core subsidiaries if GCC's
earnings capacity and operating efficiency deviated from our
base-case expectations, increasing the gap with peers again, or if
its asset quality unexpectedly weakens.

"We could raise the ratings if GCC's capital strengthened further,
with our RAC ratio sustainably exceeding 10%, while improving asset
quality and continuously enhancing its underlying profitability and
efficiency closer to those of higher-rated peers."

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


BBVA CONSUMO 10: S&P Affirms 'B(sf)' Rating on Class C Notes
------------------------------------------------------------
S&P Global Ratings affirmed its 'AA (sf)', 'A- (sf)', and 'B (sf)'
credit ratings on BBVA Consumo 10 Fondo De Titulizacion's class A,
B, and C notes, respectively.

S&P's ratings address timely payment of interest and principal for
all notes.

The affirmations follow its review of the transaction's performance
and the application of our current criteria. They also reflect its
assessment of the payment structure according to the transaction
documents.

S&P said, "We analyzed the transaction's credit risk under our
updated global consumer ABS criteria. In our view, BBVA Consumo
10's cumulative gross losses have been higher than our assumptions
at our previous review. As a result, we increased our base-case
gross loss assumption to 4.95% from 4.00% in our previous review.
We have applied multiples of 5x at the 'AAA' rating level, similar
to in our previous review."

The transaction is amortizing sequentially since March 2021. Credit
enhancement is provided through subordination, excess spread, and
cash reserve. The reserve fund is amortizing and is at its required
level of EUR3.73 million, as of the investor report in March 2023.
The cash reserve is part of the available cash and is used to cover
any shortfalls in the senior fees. It flows down the combined
waterfall once the class A, B, and C notes are fully paid down. As
of the March 2023 servicer report, the pool factor is currently at
42.54%, and the available credit enhancement for the class A, B, C,
D notes has increased to 24.35%, 17.06%, 6.75%, and 2.98%,
respectively. S&P only rates the class A to C notes in this
transaction.

S&P said, "We have applied a recovery rate of 15% with a 45%
haircut at the 'AAA' rating level in our cash flow analysis, in
line with our previous review. This equates to a 8.25% stressed
recovery rate. We have maintained the recovery lag of 12 months,
which is unchanged since closing."

  Table 1

  Credit Assumption Summary ('AAA')

                                       CURRENT REVIEW  2022 REVIEW

  Base-case cumulative rate assumption (%)     4.95      4.00

  Remaining losses applied in our analysis (%) 7.74%     4.74

  Stress multiple (x)                             5         5

  Stressed cumulative recovery (%)*            8.25      8.25

  Stressed net loss (%)                        35.5      21.7

  *100% of recoveries are realized 12 months after default.


S&P said, "Our cash flow analysis indicates that the available
credit enhancement for the class A, B, and C notes in this
transaction is sufficient to withstand the credit and cash flow
stresses that we apply at the 'AA', 'A-', and 'B' rating levels,
respectively. We therefore affirmed our 'AA (sf)', 'A- (sf)', and
'B (sf)' credit ratings on the class A, B, and C notes,
respectively.

"As part of our analysis we also conducted additional sensitivity
analysis to assess the effect of, all else being equal, an
increased gross default base case and a haircut to the recovery
rate base case. For this purpose, we ran eight sensitivity runs by
either increasing stressed defaults and/or reducing expected
recoveries as below.

  Table 2

  Sensitivity analysis assumptions
  
                                      RECOVERY RATE BASE CASE (%)

  Gross default rate base case(%)   0        (10)        (30)

  0                            Base case   Scenario 3   Scenario 4

  10                           Scenario 1  Scenario 5   Scenario 7

  30                           Scenario 2  Scenario 6   Scenario 8

  Table 3

  Sensitivity analysis

          BASE RUN   1     2    3    4     5     6     7     8

  Gross
  Loss base
  case (%)    4.95  5.45  6.44  4.95  4.95  5.45  6.44  5.45  6.44

  Recovery
  rate (%)   15.00 15.00 15.00 13.50 10.50 13.50 13.50 10.50 10.50

  Remaining
  losses (%)  7.74  9.54 13.12  7.74  7.74  9.54 13.12  9.54 13.12



  Class A     AA    A     BBB    AA   AA    A     BBB   A     BBB

  Class B     A-    BBB   B+     A-   A-    BBB   B+    BBB   B+

  Class C     B     NR    NR     B    B     NR    NR    NR    NR

  NR--Not rated.

Operational, counterparty, and legal risks continue to be
adequately mitigated, in S&P's view, and does not constrain its
ratings on the notes.




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

KLARNA HOLDING: S&P Rates New Tier 2 Subordinated Notes 'B+'
------------------------------------------------------------
S&P Global Ratings assigned its 'B+' issue-level rating to the
proposed EUR100 million-EUR150 million Tier 2 non-deferrable,
subordinated notes of Klarna Holding AB (BB+/Stable/B), the
non-operating holding company(NOHC) of Klarna group. The proposed
notes will be drawn from the dual EUR3 billion medium-term note
program of Klarna Holding and Klarna Bank AB. The rating is subject
to S&P's review of the final issuance documentation.

S&P understands that the instrument will be Tier 2 regulatory
capital for Klarna Holding group.

In accordance with S&P's criteria for hybrid capital instruments,
the starting point for the rating on the subordinated capital
instrument issued by an NOHC is the lower of the group stand-alone
credit profile and long-term issuer credit rating (ICR).

S&P said, "The 'B+' issue rating reflects our analysis of the
proposed instrument and the deduction of three notches from our ICR
on Klarna Holding. As per the terms and conditions, we consider the
instruments to be contractually subordinated to senior creditors'
claims and deduct two notches due to the non-investment-grade
starting point." In addition, the notes are available to absorb
losses at the point of the company's nonviability via statutory
loss absorption, leading to a further notch deducted.

The Bank Recovery and Resolution Directive has been implemented
into Swedish law, making clear that these instruments would be
written down or converted at the point of nonviability.

Given the notes' lack of going-concern loss absorption, S&P does
not include them in our calculation of the Klarna Holding group's
total adjusted capital.




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

ABC ENGINEERING: Ordered to Pay GBP12,000 in Unpaid Wages
---------------------------------------------------------
Jonathan Knott at Construction News reports that a collapsed
construction firm has been ordered to pay more than GBP12,000 in
unpaid wages to former employees -- though it is unclear whether
the company has enough funds to do this.

North West England-based ABC Engineering entered voluntary
liquidation in September 2022 with almost GBP300,000 of debt, most
of which will be unrecoverable, Construction News recounts,
Construction News recounts.

The liquidator's statement of affairs lists debts including
GBP42,000 owed to Barclays Bank and GBP96,000 to HMRC, Construction
News discloses.  Among the company's suppliers, Aalco Metals is
owed GBP17,000 and Barrett Steel GBP21,000, Construction News
notes.

A single holiday pay claim of GBP833 is listed among the
preferential creditors, and a pay arrears claim of GBP1,020 among
non-preferential creditors, Construction News states.

In October 2022, however, eight people made claims against the
company to an employment tribunal for unpaid wages, overtime and
holiday entitlement, Construction News relays.

According to Construction News, in a decision published this month,
a judge ordered ABC Engineering to pay a total of GBP12,800 for
these claims after the firm "failed to present a valid response on
time".

If not paid within two weeks, the claims due will accrue interest
at 8 per cent a year from
June 7, the day after the decision was sent to the people involved,
Construction News states.

Construction News has contacted the company's liquidators to
clarify how this debt will be treated within the liquidation
process.

According to the liquidator's statement from September, the firm
has GBP4,800 available to repay creditors, as well as an
"uncertain" proportion of GBP26,000, which is the book value of its
other assets.

Prior to its collapse, the company provided property maintenance,
construction and civil engineering services, according to its
website.


ALICYDON LTD: Goes Into Provisional Liquidation
-----------------------------------------------
Scottish Construction Now reports that the developers of a
prominent Dundee waterfront building have fallen into provisional
liquidation.

Ken Pattullo and Kenny Craig of Begbies Traynor took the helm as
joint provisional liquidators of Dundee-based property development
firm Alicydon Limited on June 20, 2023, Scottish Construction Now
relates.

The company, which specialised in property redevelopment, had
successfully secured planning permission to renovate the Custom
House, a prominent early Victorian Grade A listed structure on
Dundee's waterfront.

However, after securing planning permission and commencing the
initial stages of the development, cost overruns meant that the
company had no option but to cease trading and appoint provisional
liquidators, Scottish Construction Now discloses.

Alicydon did not directly employ any staff, instead choosing to
subcontract all of its work, Scottish Construction Now notes.

According to Scottish Construction Now, provisional liquidator Mr.
Pattullo said: "With its central location next to City Quay and
close to V&A Dundee and HMS Unicorn, the restoration of Custom
House is at the heart of the city's regeneration plan.

"We are currently in the process of assessing the site before
marketing the development and are confident that a new owner will
quickly be found for one of Dundee's most iconic landmark
buildings."


BRANTS BRIDGE 2023-1: S&P Assigns Prelim. BB(sf) Rating on E Notes
------------------------------------------------------------------
S&P Global Ratings assigned preliminary credit ratings to Brants
Bridge 2023-1 PLC's class A to E-Dfrd notes.  At closing, Brants
Bridge 2023-1 will also issue unrated class Z1 and Z2 notes.
Brants Bridge 2023-1 is a static RMBS transaction securitizing a
portfolio of owner-occupied mortgage loans secured on properties in
the U.K.

The loans in the pool were originated between 2020 and 2023 --
mostly in 2022 -- by Paratus AMC Ltd., a non-bank specialist
lender, under the brand of Foundation Home Loans.

The collateral comprises complex income borrowers and borrowers
with relatively minor credit impairments, resulting in high
exposure to self-employed borrowers and first-time buyers.

The transaction benefits from liquidity support provided by a
nonamortizing reserve fund (broken down into a liquidity reserve
fund and a credit reserve), and principal can also be used to pay
senior fees and interest on some classes of notes, subject to
certain conditions.

Credit enhancement for the rated notes will consist of
subordination and the credit reserve from the closing date, and
overcollateralization following the step-up date. The
overcollateralization will result from releasing the excess amount
from the revenue priority of payments to the principal priority of
payments, after any subordinated swap payment amounts due (if any)
are paid.

The transaction incorporates swaps to hedge the mismatch between
the notes, which pay a coupon based on the compounded daily
Sterling Overnight Index Average (SONIA), and the loans, which
primarily pay a fixed-rate interest before reversion.

At closing the issuer will use the issuance proceeds to purchase
the full beneficial interest in the mortgage loans from the seller
(Paratus AMC Ltd.). The issuer will grant security over all its
assets in favor of the security trustee.

Counterparty, operational, or sovereign risks do not constrain our
ratings under our applicable criteria. S&P considers the issuer to
be bankruptcy remote under our legal criteria. S&P expects to
assign ratings at closing subject to an ongoing satisfactory review
of the transaction documents and legal opinions.

  Ratings list

  CLASS        PRELIM. RATING     CLASS SIZE (%)

  A              AAA (sf)           86.80

  B              AA (sf)             4.85

  C-Dfrd         A (sf)              3.50

  D-Dfrd         BBB (sf)            3.25

  E-Dfrd         BB (sf)             1.50

  Z1             NR                  0.10

  Z2             NR                  1.40

  RC1 Residual
  certificates   NR                  N/A

  RC2 Residual
  certificates   NR                  N/A

  NR--Not rated.
  N/A--Not applicable.


CINEWORLD: Screens to Remain Open Despite Administration Plans
--------------------------------------------------------------
BBC News reports that struggling cinema chain Cineworld has said
its screens will remain open despite its plans to file for
administration to cut its huge debts.

Cineworld, which is the world's second-largest cinema chain, was
hit hard by the Covid pandemic when many of its theatres were
forced to close, BBC relates.

But it has now announced plans to slash its US$5 billion (GBP3.9
billion) debt pile, BBC discloses.

According to BBC, the firm, which owns the Picturehouse chain in
the UK, said it was still business as usual for its cinemas.

"Cineworld continues to operate its global business and cinemas as
usual without interruption and this will not be affected by the
entry of Cineworld Group plc into administration," BBC quotes the
company as saying.

"The group and its brands around the world - including Regal,
Cinema City, Picturehouse and Planet -- are continuing to welcome
customers to cinemas as usual."

Cineworld has more than 28,000 staff across 751 sites globally,
with 128 locations in the UK and Ireland.

Last year, it filed for bankruptcy protection in the US but it
hopes to emerge from this next month following the restructuring of
its finances, BBC recounts.

Cineworld will apply for administration in July, which will see
shares in the firm suspended and existing shareholders wiped out,
BBC states.

The restructuring of the company's finances will see its debts cut
by about US$4.5 billion, according to BBC.  A sale of rights in the
business has raised US$800 million and it will also have access to
a further US$1.46 billion in funds if required, BBC notes.

As well as the hit to trading during the pandemic, cinemas are also
facing tough competition from streaming services, BBC discloses.

Earlier this year, Cineworld had to drop its plans to sell its
businesses in the US, UK and Ireland after it failed to find a
buyer, BBC relays.


GKN HOLDINGS: S&P Assigns 'BB+' ICR After Dowlais Demerger
----------------------------------------------------------
S&P Global Ratings affirmed its long-term issuer credit rating on
GKN Holdings Ltd. (GKN Aerospace) at 'BB+'. S&P also affirmed the
issue rating on GKN Holdings Ltd.'s senior unsecured notes at
'BB+'.

The stable outlook reflects S&P's view that GKN Aerospace's
revenues and absolute EBITDA generation should grow steadily in
2023 and 2024, with adjusted margins also rising. GKN Aerospace's
key credit metrics should also steadily improve, despite potential
M&A and shareholder returns.

S&P said, "Post demerger, GKN Aerospace has a smaller operating
perimeter but also materially lower debt, hence we affirmed the
ratings at 'BB+'. As anticipated in our previous publication the
demerger from Dowlais resulted in GKN Holdings' remaining aerospace
business exhibiting a more concentrated product and service
offering, a smaller operating perimeter, and a reduced revenue and
EBITDA base. Going forward, we assess GKN Holdings' business risk
profile to be toward the high end of the fair category (from the
lower end of the satisfactory category). The new capital structure
has been defined and overall debt is materially lower. To reflect
this, we reassessed GKN Holdings' financial risk profile as
intermediate (previously significant). The resulting combination of
a fair business risk profile and intermediate financial risk
profile map to 'BB+' ratings, meaning the existing ratings on GKN
Holdings and its debt are unchanged. We consider GKN Aerospace's
operating and financial targets to be ambitious but achievable,
given management's strong track record and that GKN Aerospace is
well positioned to benefit from the ongoing recovery in the wider
industry. Management has guided investors that it could comfortably
tolerate reported net debt leverage of up to 2.5x to accommodate
M&A and/or shareholder returns. We view the civil aerospace supply
chain as ripe for potential consolidation and believe GKN Aerospace
could indeed pursue opportunistic bolt-on M&A. We also note
management's guidance, that it plans to pay a progressive dividend,
and also that the group is well placed to buy back 5% to 10% of its
market capitalization each year from 2024.

"GKN Aerospace's two divisions, engines and structures, both lead
in the civil aerospace supply chain, and we expect that the
industry will continue to recover through 2023 and 2024. We
forecast GKN Aerospace's engines division, with 74% of 2022
revenues from the civil sector and the remainder from the defense
sector, to generate about GBP1.3 billion of revenue in 2023. With a
strong aftermarket presence representing about one-half of sales,
this division benefits from good revenue visibility. GKN Aerospace
has long-term contracts in place with all key engine original
equipment manufacturers (OEMs), including Pratt & Whitney, GE,
Safran and Rolls-Royce, and government contracts in the defense
sector. The mission-critical nature of GKN Aerospace's product
offering, its long research and development (R&D) cycle, and
established presence in existing platforms result in high barriers
to entry, and the group has developed a long-standing track record
of quality execution with its customers. It also has a diversified
exposure across the faster recovering narrowbody platforms
post-pandemic, with a large presence in CFM56 platforms and
slower-to-recover widebody platforms. We anticipate the structures
division, with about two-thirds of 2022 topline generated from
civil aerospace and the remainder from defense, to generate about
GBP2.1 billion of sales in 2023. More than 70% of revenues are from
sole source positions. This division generates about one-half of
its revenue from narrowbody and business jet platforms, with Airbus
a key customer. The division also has good exposure to the defense
industry through customer relationships with large primes including
Lockheed Martin and Honeywell. Like the engines division,
structures benefits from long-standing relationships and embedded
positions across the supply chain, from design to build. On the
other hand, GKN Aerospace's business risk profile also reflects the
smaller size and scope of its remaining core businesses (post
demerger), its position in the aerospace and defense supply chain,
some customer and platform concentration, and low, but improving,
overall profitability versus rated peers. GKN Aerospace was and
still is highly sensitive to OEM production rates and aftermarket
demand. In 2020, at the peak of the pandemic, GKN Aerospace's
revenues contracted by about 27% and it exhibited negative EBITDA,
typical for the rated peer group.

"We forecast revenue and profitability should grow in 2023 and
2024, and adjusted margins will steadily increase.The demand for
new aircraft and ambitious ramping up of build rates by OEMs will
benefit key suppliers such as GKN Aerospace. Market growth in the
civil aerospace sector will primarily be driven by rising
narrowbody production, specifically the Airbus' A320 family and
Boeing's 737 MAX. The defense industry's fundamentals remain
robust, with many governments raising budgets. Since the start of
the Russia-Ukraine conflict, leading NATO members have continued to
urge their counterparts to increase defense spend toward 2% of
national GDP. The U.S. defense budget is also rising as, alongside
allies, it is pivoting its attention toward Asia-Pacific. All of
these factors should support growth in GKN Aerospace's overall
group revenues, which we forecast to rise by around 10% to more
than GBP3.2 billion in 2023. In 2024 we again expect potential
growth to more than GBP3.6 billion. With the engines division
heading into its most profitable phase, benefitting from GKN
Aerospace's risk and revenue sharing partnerships, we expect rising
profitability from 2023 into next year. GKN Aerospace should start
to benefit from its aftermarket exposure on key active platforms in
its engines division, as that market continues to heat up after the
pandemic. GKN Aerospace expects its operating profit to rise to
about GBP350 million in 2023, with operating margins of 22% in
engines and 3% in structures. We forecast S&P Global
Ratings-adjusted EBITDA margins of roughly 10% in 2023, rising
toward 14% in 2024. We expect about GBP130 million of restructuring
and one-off costs in 2023 and about GBP100 million in 2024, as per
the group's capital markets day presentation, which weigh on our
adjusted margin growth this year.

"We expect GKN Aerospace to operate a relatively conservative
financial policy, keeping reported net leverage below 2.5x despite
expected shareholder returns. Following the demerger, GKN Holdings'
principal issuances include its $300 million and EUR100 million
three-year term loans, a GBP130 million bond due in 2032, its $250
million three-year revolving credit facility (RCF), and a number of
three-year extendable undrawn RCFs. Our adjusted debt includes
about GBP200 million of operating leases, GBP160 million related to
factoring lines, GBP27 million for pensions, and we net off almost
all accessible cash. We assume GKN Aerospace's adjusted debt will
total just short of GBP1 billion in 2023. We forecast debt to
EBITDA to be about 2.8x in 2023. This is before the full-year
reflection of the remaining aerospace business, which could mean a
reduction to around 2x or lower in 2024, depending on management's
financial policy and decisions on M&A and shareholder returns. We
expect the group's funds from operations (FFO) to debt to
strengthen from about 25% in 2023 to more than 40% in 2024, again
dependent on management's actions. We also forecast significantly
lower cash interest costs, due to lower levels of debt. We expect
GKN Aerospace to distribute a progressive annual dividend beginning
2023, post demerger, of about GBP20 million and rising to around
GBP50 million in 2024. Management guides that the group will buy
back 5%-10% of its market capitalization each year from 2024. As
the shareholder distributions step up, we still anticipate GKN
Aerospace will maintain its leverage below 2.5x, commensurate with
our revised assessment of the company's financial risk profile to
intermediate.

"Free operating cash flow generation should materially improve in
2024.Despite expectations of rising capital expenditure (capex)
over the next couple of years and working capital outflows of up to
GBP50 million, GKN Aerospace's free operating cash flow (FOCF)
generation will improve in 2023 and 2024. We expect capex to be
4.5%-6% of sales in 2023-2025, gradually stepping up as the group
invests in new technology and as current assets in the cycle near
the end of their useful economic life. In 2024, we expect operating
margins to rise and support operating cash flow generation. FOCF
should be close to GBP180 million in 2024, and increase further in
2025. Any excess FOCF is likely to be utilized for dividends and
share buybacks.

"The stable outlook reflects the view that GKN Aerospace's revenues
and absolute EBITDA generation should grow steadily in 2023 and
2024, with adjusted margins also rising. GKN Aerospace's key credit
metrics should also steadily improve, despite potential M&A and
shareholder returns.

"We could lower our long-term issuer credit rating on GKN Holdings
if improvements in profitability faltered, its EBITDA margin did
not trend to more than 10%, and its FFO to debt did not improve to
more than 30% at the same time, with adjusted debt to EBITDA
remaining above 3x. We could also consider a downgrade if FOCF was
not as strongly positive as we expect in our base case.

"We could raise the ratings if the group's adjusted margins
increased to sustainably more than 18%, adjusted debt to EBITDA
decreased and remained below 2x, and FFO to debt improved to more
than 45% on a sustainable basis. In addition to reducing leverage,
GKN Aerospace would also need to maintain strongly positive FOCF."

ESG credit indicators: To E-2, S-3, G-2; From E-3, S-3, G-2

S&P said, "Social factors are a moderately negative consideration
in our credit rating analysis of GKN Aerospace. The COVID-19
pandemic resulted in a significant decline in air travel and demand
for new commercial passenger aircraft by airlines. In response,
Airbus and Boeing lowered production rates, which had a material
knock-on effect on GKN Aerospace's earnings and cash flow, given it
is a manufacturer of aircraft components and structures and a key
supplier. GKN Aerospace's revenue contracted by 27% in 2020, and
its EBITDA was negative; therefore, the group reduced production.
Since then, production rates have stabilized, and air travel is
starting to recover, but we do not expect the wider industry to
recover to pre-pandemic levels until at least 2024. As the industry
recovers, GKN Aerospace's product portfolio is well positioned to
keep pace with aerospace and OEMs' increasing manufacturing, as
well as the drive toward greater efficiency and more complex
technologies. However, we expect GKN Aerospace will need to
carefully balance necessary investments to enhance and broaden its
product offering for future civil aviation technologies. We revised
the environmental factor score to 'E-2' from 'E-3', given that the
automotive division no longer sits within the rated entity
following demerger from Dowlais."


MARA SEAWEED: Enters Administration Due to Cash Flow Problems
-------------------------------------------------------------
Allan Crow at Fife Today reports that award-winning
Glenrothes-based Mara Seaweed ran into what "severe working capital
issues" following the withdrawal of funding for a committed
expansion programme.  That, in turn, led to unsustainable cash flow
problems with administration being its only option, Fife Today
discloses.

Administrators Callum Carmichael and Chad Griffin, partners with
FRP Advisory, have now been called in, and the business is up for
sale.  Five staff have been retained to help with the sale of
stock, Fife Today relates.

According to Fife Today, the joint administrators will now market
the brand and assets of the business for sale and are urging
interested parties to make contact as soon as possible.  Support
will also be given to staff, including assistance with claims to
the Redundancy Payments Office for any wages due, Fife Today
states.

Founded in 2011 as Celtic Sea Spice Company, the business was
rebranded as Mara Seaweed in 2013 and pioneered the harvesting,
processing and manufacture of a wide range of seaweed-based
seasonings.


PEPCO GROUP: S&P Assigns Prelim. 'BB-' LT ICR, Outlook Stable
-------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'BB-' long-term issuer
credit rating to European retail discounter Pepco Group N.V. and
its preliminary 'BB-' issue rating to PEU (Fin) PLC's proposed
senior secured notes. The recovery rating is '3', indicating its
expectation of meaningful recovery prospects (50%-70%; rounded
estimate 65%) in its hypothetical default scenario.

The stable outlook reflects S&P's view that the group will continue
to execute its strategy of improving scale while investing in lower
prices to pursue organic revenue growth an EBITDAR coverage ratio
of about 2.2x and adjusted debt to EBITDA below 3.0x.

S&P said, "Our ratings on Pepco reflect its position in the U.K.
and across a cohort of eastern European countries and moderate debt
to EBITDA of below 3.0x, but tempered by an aggressive expansion
strategy and the overhang of the legacy debt located outside its
restricted group.With over 4,100 retail stores spread across 19
countries in Europe, Pepco operates in the apparel and general
merchandising (GM) categories through its Pepco brand (constituting
approximately 60% of total revenue for the six months ended March
31, 2023) and in the fast-moving consumer goods (FMCG) sector
through its Poundland and Dealz brands (accounting for the
remaining 40%). Pepco's merchandising strategy is centered around
achieving price leadership across key categories, aiming to provide
its value seeking customers with products at low prices. To
maintain competitive pricing, Pepco relies on its in-house sourcing
business, PGS, which connects with 375 suppliers and 750 factories
primarily located in China, India, and Bangladesh. Over the years,
Pepco has established a solid brand name and has consistently
experienced organic revenue growth. Its revenue has more than
doubled in the past seven years, increasing from EUR2.2 billion in
fiscal 2016 (year ending Sept. 30) to EUR4.8 billion in fiscal
2022. Given Pepco's scale, geographic presence, and profitability
(S&P Global Ratings-adjusted EBITDA of EUR682 million with margins
above 14%), it is positioned comfortably within the fair business
risk profile category, albeit slightly weaker than peers such as
Action (with an EBITDA of EUR1.4 billion) and B&M European Value
Retail S.A. (with an EBITDA of EUR900 million) who share a similar
business risk profile.

"We expect Pepco's robust operating momentum will continue in
2023-2024, underpinned by the strong store development program,
which contributed to historically healthy revenue growth. Pepco has
expanded its store footprint over the past 10 years to nearly 4,127
in 2023 to date. Its expansion strategy focuses on developing in
the domestic market and expanding in other European regions in a
bid to expand its overall addressable market. The company is making
considerable strides toward achieving its targeted 20,000 stores in
Europe, opening 516 net new stores in 2022 (483 in 2021) with a
primary focus for new store opening in its core market of Central
and Eastern Europe but also expanding in Western Europe.
Additionally, the company's strategy includes store rebranding and
an increase in selling space over its existing 2,000 stores in
Central European markets over the next 2.5 years. We anticipate
these measures will boost its organic growth rate by expanding the
retail floor space and improving efficiency by reducing the number
of full-time staff operating a store.

"Strong in-house capabilities support historically stable
profitability, but we expect this to be weakened by inflationary
pressure in 2023. The consumer retail sector remains an extremely
competitive space including national retail chains, convenience
stores, and pure online players. While the value retail segment
tends to be relatively resilient during difficult economic
environments, it isn't immune from the risk of changing consumer
preferences and inflationary cost pressures. In its most recent
trading update, the group has flagged that macroeconomic headwinds
are resulting in fewer customer visits and lower average basket
size. Despite the gross margin pressures, Pepco's S&P Global
Ratings-adjusted EBITDA margins have stood within 14%-16% over the
past five years, with a marginal dip to around 12% in 2020 during
the pandemic, recovering to 14% in 2022. We expect economic
conditions to remain difficult in 2023 and that weak consumer
confidence and purchasing power will limit the group's ability to
fully pass on cost increases without hampering volumes. Staff cost
inflation and relatively lower margins from the new Western
European stores will be a drag on the group's operating margins and
accordingly, we forecast the S&P Global Ratings-adjusted EBITDA
margins to contract by around 100 basis points to 13% in 2023 and a
gradual recovery thereafter."

PGS provides cost and operational advantages but exposes the group
to supply chain disruption and foreign exchange risks. Pepco
sources its products mainly from China, India, and Bangladesh, with
about 84% of the apparel and GM in Pepco stores imported from these
countries. While the far-shoring helps to keep the costs low, the
company faces the risk of cross-border geo-political risks and
supply chain disruptions. Pepco pays most of its overseas suppliers
in U.S. dollars and Chinese yuan, whereas its revenues are in
Polish zloty (about 24% of 2022 revenues) and British pounds
sterling (about 34%). Pepco hedges the exchange risks arising by
entering into forward purchase agreements, but if the zloty or
sterling depreciates against the euro then this would erode the
group's profitability.

S&P said, "In the coming 12-18 months, we anticipate the group's
aggressive store expansion strategy will keep pressuring free
operating cash flow and the EBITDAR coverage ratio.We estimate that
Pepco's capital expenditure (capex) will be around EUR400 million
(roughly 6%-7% of its revenue) in both 2023 and 2024, given the
company's aggressive new store opening and refit program. This
figure represents a considerable increase compared with historical
levels, which have typically hovered around 4% of revenue.
Nevertheless, Pepco possesses a degree of financial flexibility,
benefiting from a low amount of financial debt on its balance sheet
and no dividend payments, over the next two years. Since lease
liabilities represent about 70% of our adjusted debt calculation,
we place a greater emphasis on S&P Global Ratings-adjusted EBITDAR
coverage (the ratio of EBITDA before rents to cash interest plus
rents), which focuses on Pepco's ability to service its interest
and lease burden. We estimate the cash outflow for leases to be
about EUR330 million in 2023 compared with EUR291 million in 2022
and will continue to increase by EUR30 million-EUR40 million per
year if the group achieves its targeted 550 new store openings each
year. We forecast Pepco's EBITDAR coverage of about 2.0x-2.2x over
fiscal 2023.

"We delink Pepco from the broader SIHNV group while incorporating a
negative modifier to the rating due to a weak principal
shareholder. Since Pepco listed 27% of its equity on the Warsaw
Stock Exchange in 2021, it has operated independently in terms of
operations and finances from its ultimate shareholder. To safeguard
the rights of minority shareholders, a relationship agreement was
established between SIHNV, intermediate holding company Steenbok
Newco 3 Limited (Newco 3), and Pepco. According to this agreement,
the principal shareholder, who currently holds 72.28% of the
shares, can only nominate three out of the total 10 board members,
and therefore does not control Pepco. Since its public listing,
Pepco's board has demonstrated a track record of prioritizing
long-term growth by focusing heavily on expanding through new
stores. There have been no dividends or other distributions to
shareholders. The existing senior facilities agreement includes a
maintenance leverage covenant (pre-IFRS 16) of 2.8x (current
covenant leverage is 0.9x). The proposed bond documentation does
not include financial covenants but includes an incurrence covenant
test of senior secured leverage below 2.0x. We note that Pepco does
not provide any guarantees or security for the indebtedness
incurred by the ultimate shareholder or any of its intermediary
holding companies, and that it was able to independently run its
operations and raise financing in the capital markets
notwithstanding the financial distress of its parent. As a result
of all of these factors, in our ratio analysis, we acknowledge a
certain delinkage from the entities above Pepco Group N.V., and
exclude the estimated circa EUR10 billion payment-in-kind (PIK)
debt located at Newco3 and SIHNV from Pepco's credit metrics
calculation. Notwithstanding, our final rating encompasses a one
notch negative modifier to reflect any event risk that this may
cause. In the past, part of the debt at the entities above Pepco
was repaid through the sale of their holdings of Pepco equity.

"The final rating will depend on the completion of SIHNV's current
debt restructuring plan and Pepco's own refinancing. Our ratings
are preliminary. Our assessment assumes and is conditional upon the
debt above Pepco Group being extended during 2023 via a
restructuring plan implemented by SIHNV and its stakeholders
pursuant to a Court Confirmation of Extrajudicial Restructuring
Plan (Wet Homologatie Onderhands Akkoord, or WHOA) in the
Netherlands in accordance with Section 370(1) of the Dutch
Bankruptcy Act. This plan was approved by the Dutch court on June
21, 2023. We expect Pepco to issue EUR300 million of long-term
senior secured financing within the next 90 days to repay its
existing term loan A and to upsize its existing revolving credit
facility (RCF) to EUR390 million compared with EUR190 million
currently. The final rating will depend on our receipt and
satisfactory review of all final transaction documentation. If S&P
Global Ratings does not receive final documentation within a
reasonable time frame, or if final documentation departs from
materials reviewed, we reserve the right to withdraw or revise our
ratings. Potential changes include use of new debt proceeds,
maturity, size and conditions of the notes and loans, financial and
other covenants, security, and ranking.

"The stable outlook reflects our view that the group will continue
to execute its strategy of improving scale while investing in lower
prices to maintain annual like for-like group sales growth of
4%-6%. It also incorporates our view that the group will maintain
its adjusted EBITDA margins above 12% and EBITDAR coverage ratio
about 2.2x and will not pursue debt-funded shareholder returns."

A downgrade could arise from a more aggressive financial policy
than S&P anticipates, eroding the group's cash cushion and credit
metrics. It could lower the rating on Pepco if the group's
operating performance and earnings weaken, translating into any of
the following metrics:

-- An EBITDAR coverage ratio dropping below 2.0x for sustained
    period;

-- A change in the group's financial policy resulting in adjusted
    debt to EBITDA above 3.0x; or

-- FOCF after leases (after adjusting for new stores capex)
    falling below EUR100 million.

This could stem from higher-than-expected margin erosion amid
fierce price competition in its end markets, an inability to
stabilize working capital, or consumer spending dropping such that
its target customers reduce spending for an extended period.

S&P could also lower the ratings if it observes that for any
reason, the creditworthiness of SIHNV group entities and their high
debt located outside the restricted group in any way jeopardized
Pepco's credit quality.

S&P is unlikely to take a positive rating action until the material
debt located at the group's principal direct and indirect
shareholders, NewCo 3, NewCo 1, and SIHNV, is dealt with.

In addition, S&P could raise the rating on Pepco if the group's
operating performance and cash generation were materially above its
base case, and translated into sustainable:

-- EBITDAR coverage ratio above 3.0x; and

-- Improved scale, with S&P Global Ratings-adjusted EBITDA of
about EUR1 billion, while maintaining adjusted EBITDA margins
closer to 14%-15%.

Environmental, Social, And Governance

E-2, S-2, and G-3

S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis of Pepco Group N.V. As
of the date of this rating, SIHNV indirectly owns 72.28% of the
group. While there are sufficient measures to protect the interest
of the minority shareholders, the presence of a financial
distressed parent as a principal shareholder could expose the
entity to potential event risks. Moreover, we note that auditors
issued a qualified opinion on Pepco's 2022 annual report to flag
the difference between the group's physical inventory and its
accounting record. However, we note the difference amounted to EUR7
million, which is slightly less than the value of stock it sells in
a day."


READING FC: At Risk of Going Into Administration Over New Charge
----------------------------------------------------------------
FAN Banter reports that a finance expert claims Reading Football
Club's new charge could see them "risk" going into administration
as problems worsen at the club.

On June 23, the EFL added non-payment of tax to HM Revenue &
Customs as a reason why the Royals were placed under a transfer
embargo, FAN Banter relates.

They were charged with failing to pay their players' wages on time
on three occasions during the 2022/23 season with Owner Dai Yongge
also recieving a charge, causing the club to be in breach of EFL
regulations, FAN Banter discloses.

According to FAN Banter, Reading and Mr. Yongge have until 4:00
p.m. BST on Thursday, June 29, to respond to those charges, while
the Royals were initially placed under a transfer embargo for
breaching profit and sustainability rules.

"If a club fails to pay PAYE it's a red flag," football finance
expert Kieran Maguire said to BBC South Today this week.

"The club has effectively kept the money back for itself,
presumably to pay some other debts, and not pay the tax
authorities."

Reading, who are still managerless, with pre-season starting in a
few weeks, were relegated to the third tier last season for the
first time in 21 years, FAN Banter recounts.

Now a number of supporter groups, who have come together with the
name ‘Sell Before We Dai', urge for owner Dai, who bought Reading
in 2017, to sell as soon as possible, FAN Banter notes.

According to FAN Banter, Mr. Maguire went on to explain just how
serious this matter is, saying: "It's a pretty grim charge sheet
and it is indictive of financial stress at the club.

"When Reading are trying to recruit players over the summer those
players will ask themselves ‘do I want to go somewhere which has
been late paying its employees?'.

"If an organisation is late paying taxes and carries on then HMRC
has a legal obligation to take things further and we could
potentially see a winding-up petition and things get messy.

"If there is no change of ownership then administration has to be
seen as a risk."

Just hours before Reading were charged by the EFL, Royals chief
executive Dayong Pang issued a letter to the fabase where he said
he was "confident" the club would "fully correct the mistakes that
were made many years ago".

                  About Reading FC

The Reading Football Club is a professional football club based in
Reading, Berkshire, England, that will compete in the EFL League
One in the 2023–24 season, following relegation from the
2022–23 EFL Championship.  Reading are nicknamed The Royals, due
to Reading's location in the Royal County of Berkshire, though they
were previously known as The Biscuitmen, due to the town's
association with Huntley and Palmers.  The club was established in
1871 but only joined The Football League in 1920.


TOGETHER ASSET 2023-1ST1: S&P Assigns Prelim. B Rating on F Notes
-----------------------------------------------------------------
S&P Global Ratings assigned preliminary credit ratings to Together
Asset Backed Securitisation 2023-1ST1 PLC's class A and B notes and
to the interest deferrable class C-Dfrd to X-Dfrd notes. At closing
the issuer will issue unrated class Z notes and residual
certificates.

The transaction is a static RMBS transaction, which securitizes a
provisional portfolio of up to £435.5 million first-lien mortgage
loans, both owner-occupied and buy-to-let (BTL), secured on
properties in the U.K. originated by Together Personal Finance Ltd.
and Together Commercial Finance Ltd.

Together Personal Finance Ltd. and Together Commercial Finance Ltd.
are wholly owned subsidiaries of Together Financial Services Ltd.

Product switches and loan substitution are permitted under the
transaction documents.

Together Personal Finance Ltd. and Together Commercial Finance Ltd.
originated the loans in the pool between 2017 and 2023.

S&P considers the collateral to be nonconforming based on the
prevalence of loans to borrowers with adverse credit history, such
as prior county court judgments (CCJs), bankruptcy, and mortgage
arrears.

Credit enhancement for the rated notes consists of subordination,
excess spread, and overcollateralization following the step-up
date, which will result from the release of the excess spread
amounts from the revenue priority of payments to the principal
priority of payments.

Liquidity support for the class A and B notes is in the form of an
amortizing liquidity reserve fund. Principal can also be used to
pay interest on the most-senior class outstanding (for the class A
to F-Dfrd notes only).

There are no rating constraints in the transaction under S&P's
counterparty, operational risk, or structured finance sovereign
risk criteria. It considers the issuer to be bankruptcy remote.

  Preliminary ratings

  CLASS        PRELIM. RATING*     CLASS SIZE (%)

  A             AAA (sf)             86.00

  B             AA (sf)               5.00

  C-Dfrd        A (sf)                3.00

  D-Dfrd        BBB (sf)              3.00

  E-Dfrd        BB+ (sf)              0.75

  F-Dfrd        B (sf)                1.00

  X-Dfrd        BB (sf)               1.32

  Z             NR                    1.25

  Residual certs   NR                  N/A

*S&P's ratings address timely receipt of interest and ultimate
repayment of principal on the class A and B notes, and the ultimate
payment of interest and principal on the other rated notes.
NR--Not rated.
N/A--Not applicable.


TULLOW OIL: S&P Lowers ICR to 'CCC+' After Debt Repurchase
----------------------------------------------------------
S&P Global Ratings downgraded oil exploration and production
company Tullow Oil PLC to 'CCC+' from 'B-'. S&P also downgraded its
senior secured notes, due in 2026, to 'CCC+' from 'B-' and its
senior unsecured notes due in 2025 to 'CCC' from 'CCC+'.

The stable outlook reflects S&P's view that Tullow depends on
favorable financial conditions to address its 2025 and 2026 debt
maturities.

S&P said, "We see the completed debt repurchase as opportunistic.
Tullow repurchased $166.5 million of its $800 million senior
unsecured notes, due in 2025, below par, utilizing about $100
million of cash on the balance sheet. We view the buyback as
opportunistic, mostly because the company would not necessarily
default in absence of the transaction. The company has comfortable
liquidity in the coming 12 months in our view, with material cash
on the balance sheet, access to a revolving credit facility (RCF),
and only limited debt amortization. In addition, the amount Tullow
bought back was not material, compared with the financial debt of
the company. Lastly, the buyback was executed in the form of an
unmodified Dutch auction, meaning investors could choose the price
they believed was fair or decline the offer.

"The downgrade reflects the risk of further bond buybacks below
par, which we may see as distressed, and Tullow's dependence on
favorable financial markets. Tullow continues to weigh different
options to address the maturities of its senior unsecured notes,
due in March 2025, and its senior secured notes, due in May 2026.
As the maturities approach, the refinancing risk and the company's
reliance on favorable financial market conditions will increase. So
far, it has not announced a plan to make more bond purchases below
par. However, we cannot rule this out, especially if notes continue
to trade at a significant discount to par. This may incentivize the
company to launch additional buybacks at prices significantly below
par, instead of refinancing or reimbursing them. We may consider
any such buyback as a distressed debt exchange and tantamount to a
default. In such a hypothetical scenario, we would likely downgrade
the notes to 'D' (default) and lower the issuer credit rating to
'SD' (selective default).

"To date, Ghana's debt restructuring has not had a meaningful
impact on Tullow. The company continues to receive U.S.
dollar-denominated oil revenue in offshore bank accounts. We
anticipate that Tullow will continue to honor its obligations in
full and on time, despite the ongoing default of the sovereign.
That said, we expect uncertainties will remain until Ghana
completes the restructuring. For example, Tullow received a number
of tax payment demands from Ghana that the company believes breach
its petroleum agreement with the country. Tullow is now contesting
the approximately $700 million of combined tax claims from Ghana
through international arbitration.

"The stable outlook reflects our view that Tullow's liquidity
remains adequate, supported by substantial cash on the balance
sheet and our projection of positive free operating cash flow in
2023-2024. We also recognize that the company depends on favorable
financial conditions to address its future bond maturities."

S&P may downgrade Tullow in the following cases:

-- If Tullow's liquidity weakened, which could happen if it did
not refinance its March 2025 and May 2026 bond maturities well in
advance.

-- If the company continued to buy back debt below par. S&P would
likely see such a transaction as distressed and lower its rating on
Tullow to 'SD'.

-- If S&P lowered its transfer and convertibility (T&C) assessment
on Ghana to 'CCC-', which, among others, depends on the likelihood
of Ghana implementing capital or foreign exchange controls, for
example requirements to repatriate cash or use onshore bank
accounts. This would impede the company's capacity to repay its
debts on time and in full.

S&P could upgrade Tullow if refinancing risks reduced. This could
happen if we saw evidence that the financial markets and players
are able and willing to lend to issuers such as Tullow, and if the
company presented a clear plan to address its upcoming maturities.

ESG Credit Indicators: E-4, S-2, G-3


UROPA SECURITIES 2007-1B: S&P Affirms B- Rating on Class B2a Notes
------------------------------------------------------------------
S&P Global Ratings raised its credit ratings on six classes of
notes issued by Uropa Securities PLC series 2007-1B. At the same
time, we affirmed our ratings on four classes of notes.
Specifically, S&P:

-- Raised to 'A+ (sf)' from 'A (sf)' its ratings on the class A3a,
A3b, A4a, A4b, M1a, and M1b notes;

-- Affirmed its 'A- (sf)' rating on the class M2a notes;

-- Affirmed its 'BB- (sf)' ratings on the class B1a and B1b notes;
and

-- Affirmed its 'B- (sf)' rating on the B2a notes.

Uropa Securities 2007-1B is a static RMBS transaction that
securitizes a portfolio of first-lien U.K. nonconforming
residential mortgage loans assets originated by GMAC RFC,
Kensington Mortgage Co., and Money Partners.

The rating actions reflect the transaction's recent performance as
well as the credit enhancement levels across the capital
structure.

The available credit enhancement for the notes has increased
partially because of previous periods of sequential amortization,
although the notes are currently paying pro rata. The nonamortizing
reserve fund is also at its required amount.

Overall, the weighted-average foreclosure frequency (WAFF) has
increased since our 2022 review, mainly due to increased 90+ days
arrears (by 3.77% since our 2022 review). At the same time, the
weighted-average loss severity (WALS) at all rating categories has
marginally increased.

Considering the historical loss severity levels registered in
comparable U.K. nonconforming pools, the data suggest that the
portfolio's underlying properties may have only partially benefited
from the rising house prices. S&P therefore applied a valuation
haircut on the current valuations to reflect this.

Additionally, credit performance of nonconforming transactions in
general has deteriorated since our previous review, which S&P
reflected in its analysis.

Total arrears (19.37%) have increased since S&P's previous review
(14.5%) and exceed S&P's U.K. nonconforming index for pre-2014
originations.

The overall effect from S&P's credit analysis results is a general
increase in the required credit coverage at all rating levels.

  Table 1

  Portfolio WAFF and WALS

                                                BASE
                                                FORECLOSURE
                                                FREQUENCY
                                                COMPONENT FOR
                                                AN ARCHETYPAL
                                     CREDIT     U.K. MORTGAGE
  RATING LEVEL   WAFF(%)  WALS(%)  COVERAGE(%)  LOAN POOL (%)

     AAA          43.42    36.72     15.94       12.00

     AA           39.42    29.65     11.69        8.10

     A            37.15    18.93      7.03        6.10

     BBB          34.68    12.88      4.47        4.20

     BB           31.63     8.98      2.84        2.20

     B            30.93     6.06      1.88        1.75

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

NatWest Markets PLC provides the currency swap and basis risk swap
contracts, which were not in line with our previous counterparty
criteria. Under our criteria, our collateral assessment is weak,
following the recent upgrade of NatWest Markets and considering the
current resolution counterparty rating (RCR) on NatWest Markets
('A+'), the maximum supported rating on the notes is 'A+ (sf)'.

S&P said, "Following the application of our criteria, we have
determined that our assigned ratings on this transaction's classes
of notes should be the lower of (i) the rating as capped by our
counterparty criteria, or (ii) the rating that the class of notes
can attain under our global RMBS criteria.

"Our credit and cash flow results indicate that the available
credit enhancement for the class A3a, A3b, A4a, A4b, M1a, and M1b
notes could withstand our stresses at higher ratings than those
assigned. However, our ratings on all these classes of notes are
capped at the 'A+' RCR on NatWest Markets. We therefore raised to
'A+ (sf)' from 'A (sf)' our ratings on these classes of notes.

"The class M2a, B1a, and B1b notes could withstand our stresses at
higher ratings than those assigned. However, the ratings are
constrained by additional factors. First, we considered these
classes' relative position in the capital structure and their lower
credit enhancement compared with the senior notes. In addition, we
factored the sensitivity of these class of notes to deteriorating
credit conditions considering the most recent cost of living
crisis, especially given the nonconforming characteristics of the
borrowers in the portfolio. Additionally, we considered the
transaction's tail-end risk, given that the pool factor is below
24%. We therefore affirmed our 'A- (sf)' rating on the class M2a
notes, and our 'BB- (sf)' ratings on the class B1a and B1b notes.

"In our view, the class B2a notes have sufficient credit
enhancement to pay timely interest and principal by maturity in a
steady-state scenario, in which the current level of arrears and
defaults shows little to no increase, and collateral performance
remains steady. We do not expect this class of notes to fail to pay
interest in the short term. This class of notes benefits from a
GBP4.25 million nonamortizing reserve fund plus available excess
spread. Taking into account the results of our credit and cash flow
analysis and the application of our criteria for assigning 'CCC'
ratings, we affirmed our 'B- (sf)' rating on the class B2a notes."



                           *********


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

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

Copyright 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.


                * * * End of Transmission * * *