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

                          E U R O P E

          Thursday, June 29, 2023, Vol. 24, No. 130

                           Headlines



A R M E N I A

ELECTRIC NETWORKS: Moody's Affirms 'Ba2' CFR, Outlook Negative
EXPORT INSURANCE: Moody's Affirms Ba3 Insurance Fin Strength Rating


F I N L A N D

AHLSTROM HOLDING 3: Moody's Alters Outlook on 'B2' CFR to Negative
SATO OYJ: Moody's Assigns Ba1 CFR & Alters Outlook to Stable


G E R M A N Y

ADLER GROUP: Police Raid More Than 20 Offices, Premises


I R E L A N D

ALKERMES PLC: S&P Affirms 'BB-' ICR & Alters Outlook to Positive
BLACK DIAMOND 2015-1: Moody's Ups EUR9.5MM F Notes Rating to Ba2


L U X E M B O U R G

ARTERRSA SERVICES: MetWest UB Marks $1.9M Loan at 15% Off


N E T H E R L A N D S

PETROBAS GLOBAL: Moody's Rates New Senior Unsecured Notes 'Ba1'
PETROBRAS GLOBAL: S&P Rates New Unsecured Notes Due 2023 'BB-'
PROMONTORIA HOLDING 264: S&P Withdraws 'BB' LT Issuer Credit Rating
SCHOELLER PACKAGING: Moody's Lowers CFR & Alters Outlook to Neg.


S P A I N

SANTANDER CONSUMO 5: Moody's Assigns (P)Ba1 Rating to Cl. D Notes


S W E D E N

TRANSCOM HOLDING: Moody's Alters Outlook on 'B3' CFR to Positive


S W I T Z E R L A N D

CERDIA INTERNATIONAL: S&P Affirms 'B-' ICR & Alters Outlook to Pos.
VIKING CRUISES: Moody's Ups CFR to 'B2', Outlook Stable


U N I T E D   K I N G D O M

AA BOND: S&P Assigns B+ Rating on Class B3-Dfrd Notes
CALIFORNIA HOLDING III: S&P Assigns 'B' ICR, Outlook Stable
DAWSONS MUSIC: Vista Musical Acquires Brands Following Collapse
FLAMINGO GROUP: Moody's Cuts CFR to Caa1 & Alters Outlook to Neg.
OPENMONEY: GMCC Takes in Firm Following CVA Deal

SCIL IV LLC: Moody's Affirms B1 CFR & Rates New EUR300MM Notes B1
SCIL IV LLC: S&P Affirms BB- ICR on Proposed Debt-Financed Dividend
STREET FOOTBALL CLUB : Tackles Administration Rumors at Meetings
THAMES WATER: Temporary Nationalization Among Options Amid Losses

                           - - - - -


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A R M E N I A
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ELECTRIC NETWORKS: Moody's Affirms 'Ba2' CFR, Outlook Negative
--------------------------------------------------------------
Moody's Investors Service has affirmed the Ba2 long-term Corporate
Family Rating and Ba2-PD probability of default rating of Electric
Networks of Armenia (ENA), the national electricity distribution
company in Armenia. The outlook remains negative.

The rating action on ENA follows the affirmation of the Ba3 rating
on the Government of Armenia and concurrent change in the outlook
to stable from negative on June 22, 2023.

RATINGS RATIONALE

The affirmation of ENA's Ba2 rating with negative outlook reflects
the ongoing challenges the company has been facing since the
beginning of 2022 to secure long-term international financing for
its extensive investment programme as well as risks related to its
concentrated ownership structure, both stemming from the ongoing
uncertainties over the evolving geopolitical tensions related to
the Russia-Ukraine military conflict.

Moody's will continue to monitor the developments around these
risks through 2023 and reassess any implications they may have on
ENA's credit quality, including (1) evolving liquidity pressure,
driven by the growing reliance on short-term local funding; (2) the
increasing exposure to the domestic banking system, which capacity
to meet the company's ongoing substantial financing requirements
also remains uncertain; and (3) the extent to which ENA's ownership
may support or constrain its credit profile.

While ENA historically relied on international financing to
implement its substantial capital spendings, in 2022, the company
was forced to significantly increase its exposure to loans from
local banks, mostly short-term, to secure access to funding amid
the heightened geopolitical risks in the region, which forced
international banks to place on hold any new transactions with the
company. This shift was, however, approved by ENA's core
international lenders including the International Finance
Corporation (Aaa stable), the Asian Development Bank (Aaa stable),
and the European Bank for Reconstruction & Development (Aaa stable)
as a temporary solution and the company plans to refinance all its
existing domestic loans with a new long-term international
financing. However, ENA's ability to restore its relationship with
the international financing organisations still remains uncertain.

In addition, ENA is owned by Tashir group, a large Russian
conglomerate, present in Russia and neighboring countries, and
ultimately controlled by Mr. Samvel Karapetyan. Although, as
Moody's understands, the shareholder and his business in Russia
have not been directly affected, the continuously evolving nature
of the Russia-Ukraine military conflict and the related vast
international sanctions on Russia continue to pose some potential
spillover risk for the company through its shareholder.

ENA's Ba2 CFR continues to reflect (1) the company's monopoly in
electricity distribution in Armenia, making it critically important
infrastructure for the country; (2) building track-record of the
transparent system of tariff regulation, and clear-cut long-term
arrangements for the recovery of costs and pre-agreed investments,
which also limits the company's exposure to domestic economy and
local-currency volatility, as well as the regulator's structural
independence from the government; (3) good visibility into
profitability and cash flow generation until 2027 because of the
signed 2016-27 agreement between the company and the regulator; and
(4) its sound financial profile as reflected in funds from
operations (FFO)/net debt of around 27% in 2022.

ENA's rating is, however, constrained by (1) ENA's modest scale of
operations, naturally constrained by the size of the Armenian
economy and population; (2) the foreign-exchange risk arising from
the mismatch between the revenue currency (Armenian dram) and the
currencies of most of ENA's loans (mainly in euros and US dollars),
which, however, is largely mitigated by the tariff structure; (3) a
significant investment programme that is to be completed by 2027;
and (4) a still relatively short track record of the company
operating under the new regulatory regime including no history of
the tariff agreement renewal with the regulator, which expires in
2027.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook on ENA reflects risks related to the company's
increased reliance on short-term local funding to finance its
long-term investment programme amid heightened geopolitical
tensions in the region and uncertainties over the company's ability
to move back to long-term international financing. It further
reflects the risk related to ENA's concentrated ownership structure
and availability of the shareholder support, if needed, in view of
the difficult geopolitical environment and shifting economic and
business conditions.

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

An upgrade of ENA's ratings is unlikely given the negative outlook.
Upward rating pressure would be conditional upon an upgrade of the
sovereign rating of Armenia and decreasing geopolitical risks,
coupled with a demonstrated strong financial and liquidity profile
in a supportive regulatory environment.

ENA's ratings could be downgraded if (1) Armenia's sovereign rating
is downgraded; (2) the company's financial metrics weaken, such
that its FFO/interest falls below 3.0x, and FFO/net debt to below
18% on a sustained basis; (3) it appears likely that ENA's
ownership structure would weigh on the company's credit quality;
(4) ENA's liquidity weakens significantly; or (5) there is a risk
of covenant breaches.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Regulated
Electric and Gas Utilities published in June 2017.

Electric Networks of Armenia owns and operates the country's
electricity distribution grid. The company's principal activity is
the purchase and distribution of electricity to residential and
non-residential customers in Armenia. ENA's tariffs for sold
electricity and purchased power are determined by the Public
Services Regulatory Commission. In 2022, the company generated
revenue of AMD243.5 billion (around USD562.7 million).


EXPORT INSURANCE: Moody's Affirms Ba3 Insurance Fin Strength Rating
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Moody's Investors Service affirmed the Ba3 insurance financial
strength rating (IFSR) and b1 Baseline Credit Assessment (BCA) of
Export Insurance Agency of Armenia ICJSC (EIAA). The outlook on
EIAA remains negative.

This rating action on EIAA follows the rating action on the
Government of Armenia (Ba3 stable) on June 22, where the ratings
were affirmed and the outlook changed to stable from negative.

RATINGS RATIONALE

The affirmation of EIAA's Ba3 IFSR and the negative outlook reflect
ongoing pressure on EIAA's business and financial profiles because
of substantial contraction of its business volumes, following the
loss of its 90% quota-share protection on its Russian exposure and
the significant reduction of its exposure to Russia.

EIAA's business franchise has materially weakened since the
beginning of 2023 and the negative outlook reflects Moody's
concerns about EIAA's ability to restore its business volumes and
its ability to maintain its financial performance. In addition, the
negative outlook reflects Moody's expectation that EIAA's risk
profile will deteriorate as the company plans to materially
increase its coverage of exports to Russia and is looking for
reinsurance options available on its local and regional markets to
cover this specific exposure. This would imply that the company
will use weaker reinsurance protection than it had before.

Nonetheless, the affirmation of EIAA's b1 BCA reflects the
insurer's continued strong capital adequacy relative to its net
total exposures, considering that all exposures outside of Russia
and Belarus remain reinsured by Swiss Reinsurance Company Ltd (Aa3
IFSR stable).

EIAA's shareholders' equity as a proportion of total assets
(equity-to-assets ratio) remains high at around 80% at the end of
Q1 2023, and the ratio of net exposure as a percentage of
shareholders' equity remains very strong. The affirmation also
reflects EIAA's low financial leverage and high exposure to
Armenian government bonds (Ba3) and deposits with Armenia-based
banks which accounted for around 100% of EIAA's shareholders equity
in Q1 2023.

The affirmation of the company's Ba3 IFSR also reflects the
affirmation of the Government of Armenia's Ba3 rating. EIAA's Ba3
IFSR incorporates support from the Government of Armenia, resulting
in a one-notch uplift from the b1 BCA. EIAA is currently the only
export insurance company in Armenia, established by the government
to promote Armenian export within the framework of the
export-oriented industrial policy of the republic of Armenia.
Moody's thus maintains a moderate probability of government support
which takes into account the current full ownership of EIAA by the
Armenian Government as well as the lack of any implicit or explicit
Government guarantees.

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

EIAA's IFSR is currently aligned with the rating on the Government
of Armenia, which limits upward potential in the absence of
improvement in the credit quality of the Government of Armenia. The
outlook on EIAA could be changed to stable from negative in the
next 12-18 months, if the company's business and financial profile
stabilize and its gross insurance exposures to Russia remain
limited.

Conversely, EIAA's IFSR could be downgraded in case of a weaker
stand-alone credit profile of the company, as measured by a lower
BCA. The BCA could be downgraded as a result of: (1) a loss making
performance and deterioration in capital, with net exposures as a
percentage of shareholders equity increasing towards 100%; and/or
(2) a material increase of gross insurance exposures to Russia, or
net exposures covered by weak reinsurance protection and/or (3) a
material deterioration of EIAA's business franchise.

PRINCIPAL METHODOLOGIES

The methodologies used in these ratings were Trade Credit Insurers
Methodology published in January 2023.




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AHLSTROM HOLDING 3: Moody's Alters Outlook on 'B2' CFR to Negative
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Moody's Investors Service has affirmed the B2 long term corporate
family rating of Ahlstrom Holding 3 Oy, the company's probability
of default rating at B2-PD as well as the B2 instrument ratings on
the company's guaranteed senior secured bank credit facilities and
on its guaranteed senior secured global notes. The outlook has been
changed to negative from stable.

RATINGS RATIONALE

Ahlstrom is weakly positioned in the B2 rating category, reflecting
an aggressive financial policy with high gross debt leading to high
leverage and weakening financial performance during the 12 months
that ended March 2023. Its Moody's-adjusted Debt/EBITDA increased
to 7.1x during the 12 months that ended March 2023 (7.4x pro forma
for the EUR100 million tap issuance announced on 26 June 2023) from
an already high level of 6.8x in 2022 and 6.7x in 2021,
predominantly driven by weaker operating performance in the first
three months of 2023. Despite solid underlying operating
performance in 2021 and 2022, Ahlstrom's results have been
negatively affected by high transformation and restructuring costs
amounting to EUR124 million in 2022 from EUR56 million in 2021.
Moody's expects leverage to improve to below 7.0x by year-end 2023,
although there is execution risk on this path to stronger metrics
due to ongoing destocking effects in the market that may last
longer than expected and pressure profitability hence the negative
outlook on the ratings.

In the first three months of 2023, revenue increased by 2.6% year
over year, predominantly driven by higher selling prices, which
more than offset the impact of lower delivery volumes of around
10%. Volumes decreased as a result of the ongoing destocking effect
in the paper value chains, partly related to weaker end-markets. As
a result of input cost inflation and lower volumes partly offset by
lower transformation costs and the benefit from cost-efficiency
measures as well as higher selling prices, Ahlstrom's
Moody's-adjusted EBITDA margin decreased to 10.6% during the 12
months that ended March 2023 from 11.2% in 2022. The rating agency
expects EBITDA margin to recover to around 11.5% in 2023 and then
further improve to around 13% in 2024, supported by the impact of
the identified cost saving initiatives, and significantly lower
transformation and restructuring costs of around EUR50 million in
2023. In terms of cash flow generation, Ahlstrom's Moody's-adjusted
retained cash flow/debt decreased to 3.5% for the 12 months that
ended March 2023 from 4.1% in 2022, driven by a moderate
deterioration in operating performance. Moody's also notes a
recurring cash distribution of EUR8 million in Q1 2023 in the
context of a total return on equity, which the agency considers as
dividend and expects to amount to EUR35 million in 2023. The cash
return on equity illustrates an aggressive financial policy that
favours shareholders over creditors.

The B2 CFR is supported by Ahlstrom's leading market positions in
niche markets for high-performance fibre-based materials; its broad
geographical diversification in terms of manufacturing footprint
and end-market exposure; its good fundamental growth prospects
because of its increasing environmental, social and governance
(ESG) awareness, and growing demand for sustainable/recyclable
products; and its resilient and cash-generative business,
illustrated by its robust operating performance.

However, the rating is constrained by the company's relatively high
Moody's-adjusted gross debt/EBITDA of 7.1x for the 12 months that
ended March 2023 (7.4x pro forma for the EUR100 million tap
issuance in June 2023); its exposure to volatile pulp prices, which
is mitigated by its backward integration into pulp production of
around 50%; the execution risks related to planned cost reductions
and efficiency gains, resulting in restructuring and transformation
costs; and the event risk associated with potential larger bolt-on
acquisitions, although this is mitigated by eventual asset
disposals, including the divestment of the majority of its Decor
business in 2022.

OUTLOOK

Ahlstrom's rating is currently weakly positioned, predominantly
because of its high leverage and an aggressive financial policy.
The negative rating outlook reflects Moody's expectation that
leverage will remain above 6.5x in 2023 and the company will
gradually reduce its leverage, to a level commensurate with the B2
rating in 2024, supported by active profitability-enhancing
initiatives combined with significantly lower transformation and
restructuring costs. However, the combination of persistent
inflationary pressure, tightening monetary policy and geopolitical
risks could have a considerable macroeconomic effect, leading to a
protracted deterioration in global economic activity in 2023, which
would inadvertently affect Ahlstrom's operating performance.

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

Downward pressure could intensify if Ahlstrom is unable to reduce
Moody's adjusted gross leverage sustainably below 6.5x; Moody's
adjusted EBITDA margin were to deteriorate sustainably below 10%;
or the company's liquidity profile were to weaken as a result of
negative FCF, shareholder distributions or M&A. Failure of Ahlstrom
to improve its EBITDA/Interest expense ratio towards 2.5x at
year-end 2024 (2.0x as per LTM March 2023) could also exert
negative pressure on the current ratings.

The rating agency could consider upgrading the rating in case
Moody's adjusted gross leverage were to decline below 5.5x on a
sustained basis; Moody's adjusted EBITDA margin were to strengthen
towards mid-teens; or free cash flow generation were to turn to
sustainably positive.

STRUCTURAL CONSIDERATIONS

In its Loss Given Default (LGD) assessment, Moody's ranks pari
passu the seven-year guaranteed first-lien term loans maturing in
2028, the seven-year EUR650 million equivalent of guaranteed senior
secured notes and the 6.5-year EUR325 million senior secured
revolving credit facility (RCF), which share the same collateral
package and guarantees from all substantial subsidiaries of the
group representing at least 80% of consolidated EBITDA. The
instruments are thus rated in line with the B2 CFR. Moody's assumes
a standard recovery rate of 50% because the covenant-lite package
consists of bonds and loans.

LIQUIDITY

Ahlstrom has good liquidity, with around EUR135 million of cash and
cash equivalents, which are further complemented by a EUR325
million guaranteed revolving credit facility (RCF), with no cash
drawings as of March 2023. However, the company had used the RCF to
provide guarantees for ancillary facilities amounting to EUR87.6
million as of March 2023. The company's utilisation of factoring
facilities, which support its sales growth, also boosts liquidity.
The RCF contains a springing covenant set at 7.75x senior secured
net leverage, tested quarterly only when the facility is more than
40% drawn. These sources are sufficient to cover any cash flow
seasonality. There are no maturities until 2028 when term loans and
other secured debt mature.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Ahlstrom's ESG Credit Impact Score is Highly negative (CIS-4). Key
driver is governance risk given private-equity ownership and strong
appetite for leverage.

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Headquartered in Helsinki, Finland, Ahlstrom Holding 3 Oy,
operating under the trade name Ahlstrom, is a global leader in
combining fibers into sustainable specialty materials. Through its
38 plants spread across 13 countries in Europe, North and South
America, and Asia, the group services more than 5,000 customers
from various end markets in more than 100 countries. Ahlstrom
generated around EUR3.4 billion in revenue during the 12 months
that ended March 2023 and employed roughly 7,000 people worldwide.
The company was taken private in June 2021 by a consortium led by
Bain Capital Private Equity.


SATO OYJ: Moody's Assigns Ba1 CFR & Alters Outlook to Stable
------------------------------------------------------------
Moody's Investors Service has assigned a new long term corporate
family rating of Ba1 to SATO Oyj and downgraded its senior
unsecured bond rating to Ba1 from Baa3 and its senior unsecured MTN
rating to (P)Ba1 from (P)Baa3. The outlook on all ratings has been
changed to stable from ratings under review.

Moody's has withdrawn SATO's long term issuer rating of Baa3
following its assignment of the Ba1 CFR, as per the rating agency's
practice for corporates with non-investment-grade ratings.

This rating action concludes the review for downgrade initiated on
March 27, 2023.

RATINGS RATIONALE

The downgrade to Ba1 with a stable outlook reflects 1) an expected
deterioration of Sato's interest coverage ratio as a consequence of
an rapid increase of interest rates, 2) continued refinancing
challenges, where EUR460 million of debt matures already in 2024,
which Moody's believes will have to be met with a shift to secured
lending from capital markets debt, decreasing the company's
unencumbered assets ratio and 3) weakening position of SATO's
majority owner Fastighets AB Balder (Bader), reducing the
likelihood of financial support and with negative implications for
funding availability and funding costs. While property valuations
have been negatively impacted by rising interest costs, Moody's
still favorably takes into account the stability of Sato's rental
income from its residential property portfolio with a focus on
Finland.

The rapid increase in interest rates combined with challenging
capital markets such as widening credit spreads, continues to
significantly increase funding costs reflected in a weakening
interest coverage ratio. During the last months SATO refinanced its
2023 bond that was set to mature in the second quarter of 2023 with
bank financing, cash and divested Russian assets of EUR55 million.
This has resulted in a fixed charge cover ratio below the
requirement for the current rating category at around 3.2x as of
the twelve months that ended in March 2023. In Q2 2024, SATO has a
EUR350 million bond that matures and is expected to be refinanced
by debt. SATO has successfully divested some properties in both
2022 and 2023 and this may potentially be a part of the refinancing
package.  Given the difficult economic environment and rising
interest costs, future disposals property valuations are under
continued downwards risk as potential buyers are facing rising
financing costs as well.

As a result of the pandemic, rental growth has slowed down
significancy in the Helsinki metropolitan area in the past two
years because of the combination of new development and the
decrease in demand.  However, since the number of housing starts is
going down this will improve the rental market balance. In turn,
Moody's expect that the growth outlook for rents is gradually
improving in the next two years, and hence SATO's EBITDA will only
grow marginally as newly developed flats get delivered to the
market. The unregulated segment within the Finnish rental market,
which can lead to changes in operating conditions more swiftly than
in regulated markets, high tenant turnover with a weak growth
outlook for rents. Forecasted EBITDA growth is in Moody's view not
sufficient to fully balance pressure on values and interest costs
from rising interest rates. Moody's expect the effective leverage
will increase hover around 44-45% in the next 12-18 months from
current 45.2% due to expected divestments. Also, its interest cover
is expected to deteriorate further to 2.1-2.4x the next coming 18
months, as higher earnings are insufficient to fully offset higher
interest expense from the refinancing of maturing debt.
Consequently, the expected interest cover ratio is no longer in
line with requirements for the Baa3 rating category. Unencumbered
assets are expected to decrease towards 68% in 2024. Net
debt/EBITDA was 14.3x for Q1 LTM 2023. Going forward, and as a
result of limited rental increases in 2023 in a material part of
the portfolio and some negative impact on occupancy Moody's expect
net debt/EBITDA to hover between 13-14x.

Despite the economic uncertainty, there is demand for rental homes
and the urbanization trend continues. In addition, Moody's expect
that rising interest rates will make rental housing relatively more
active than owner-occupied housing, which should over time lead to
a better-balanced market. Moody's expect the stable rental cash
flow from its portfolio of 25,389 rental apartments as of Q1 2023
and a well-located residential property portfolio predominantly in
attractive locations in the Helsinki metropolitan area but also in
other growth cities in Finland.

LIQUIDITY

Liquidity is adequate for the next 18 months. SATO has addressed
the Q2 2023 EUR350 million upcoming bond. Moody's expect the
company to address early on the upcoming Q2 2024 EUR350 million
bond. SATO has debt maturities of EUR622 million corresponding to
30% of total debt during the next 18 months.  Estimations of Q2
2023 include access to around SEK900 million of liquidity,
including cash and undrawn committed facilities which to some
extent covers the liquidity outflows. Additionally, Moody's expect
the company to generate slightly negative free cash flow expected
given continued investment commitments. The liquidity profile
benefits from the anticipation of eliminated dividend payouts over
the next years.

RATING OUTLOOK

Moody's acknowledge that SATO has recently taken several credit
positive measures to manage its liquidity profile. The stable
outlook is based on the expectation that the company proactively
addresses the upcoming Q2 2024 EUR350 million bond. Moody's also
expect that the EBITDA interest coverage will be 2.0-2.4x and have
buffer towards bank covenants. The stable outlook incorporates
Moody's expectation that value and earnings-based leverage metrics
will hover around 45% and net debt to EBITDA about 13-14x. The
stable outlook also considers that occupier markets remain robust
through 2023 with no material pressure on like-for-like rents and
occupancy.

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

A rating upgrade is unlikely at this stage and requires a recovery
of credit metrics, driven by a deleveraging of Sato's capital
structure in light of rising interest costs, e.g. reflected in
fixed charge cover above 3.0x on a sustained basis and a track
record of strong operating performance including decreasing vacancy
and continued and significant like-for-like rental growth ahead of
inflation-linked adjustments and a good liquidity profile.

A rating downgrade may occur if

The company fails to proactively address upcoming debt maturities

A deterioration in operating performance or a sharp weakening in
property market fundamentals

Fixed charge coverage declines towards 2.0x

Debt/Assets developing above 50%

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

ESG considerations have a moderately negative impact on SATO's
rating (CIS-3), with a potentially larger impact in the future.
This mainly reflects moderate carbon transition risks and
concentration of assets in predominately one city, Helsinki as well
as potential exposure towards social risks arising from affordable
living requirements and competition from alternative lodging
options. Moody's also note risks from concentrated ownership with
Fastighets AB Balder (Ba1, stable) owning 56.4% of SATO.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was REITs and Other
Commercial Real Estate Firms published in September 2022.




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ADLER GROUP: Police Raid More Than 20 Offices, Premises
-------------------------------------------------------
Olaf Storbeck and Cynthia O'Murchu at The Financial Times report
that police raided more than 20 offices and premises on June 28
trust at controversial German property group Adler Real Estate.

According to the FT, simultaneous raids in Germany, Austria, the
Netherlands, Monaco, Portugal, Luxembourg and the UK involved 21
offices, one law firm and other properties including those of
Cevdet Caner, an Austrian property magnate who lives in Monaco.

In Germany alone, 175 prosecutors and officers of the country's
federal criminal police BKA took part, prosecutors said in a press
release, the FT relates.  Although the release did not name Adler
Real Estate or Caner, both confirmed the raids to the FT.

The drastic move by law enforcement authorities marks a major
escalation into an accounting scandal at the Berlin-based and
Frankfurt-listed real estate group, the FT notes.

Shares of Adler Group, the real estate company's Luxembourg-based
holding company, have nearly been wiped over the past two years,
trading at EUR0.43 on Wednesday, June 28, 2023, the FT discloses.
The holding company had lost EUR2.9 billion in market
capitalisation in that period, the FT states.

Adler Group has been unravelling since short selling group Viceroy
Research in 2021 accused the company of widespread fraud and
inappropriate transactions connected to Caner and Luxembourg-based
investment firm Aggregate, one of the company's investors, the FT
recounts.

German financial watchdog BaFin last year found that Adler Real
Estate, which owns more than 26,000 residential units in Germany,
inflated its balance sheet by EUR3.9 billion and its earnings by
EUR543 million in 2019 and filed a criminal complaint against the
company, the FT relates.

Earlier this year, the London High Court approved a contentious
restructuring plan for EUR3.2 billion in bonds that saved the Adler
Group from imminent insolvency, the FT discloses.

Frankfurt prosecutors are targeting several individuals aged
between 38 and 66 over suspected criminal acts between 2018 and
2020, they said in their press release, according to the FT.




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ALKERMES PLC: S&P Affirms 'BB-' ICR & Alters Outlook to Positive
----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' issuer credit rating on
Ireland-based biopharmaceutical company Alkermes PLC and 'BB'
issue-level rating on its term loan. S&P also revised the outlook
to positive from stable. The recovery rating on the term loan
remains '2', indicating its expectation for substantial (70%-90%;
rounded estimate: 85%) recovery in the event of a payment default.

The positive outlook indicates S&P's expectation that if the
company successfully spun off its oncology business, leverage would
remain well under 3x.

S&P said, "We expect adjusted debt to EBITDA to improve to about 2x
in 2023, primarily from the inclusion of royalty revenue. The final
award related to U.S licensing agreement for Invega will result in
between $265 million and $285 million in anticipated royalty
revenue in 2023 and the addition of $194 million in back royalties
related to Jassen's 2022 sales of the Invega product. We now expect
revenue to increase by about 45% in 2023 compared with our previous
expectation of 10% and our EBITDA margins to improve to between 13%
and 14% from our previous expectation of between 3% and 4% (we do
not include the one-time $194 million of back royalties in our
adjusted EBITDA). This improvement will result in adjusted leverage
improving to about 2x in 2023 compared with our previous
expectation of about 9x. In 2024, we expect the growth of Lybalvi
to mostly offset the portion of the Invega royalties that expire in
August 2024. Furthermore, we expect the absence of costs for the
oncology business to drive adjust leverage to the low-1x area.

"Increased royalty revenue from Invega products will result in
moderate reduction in revenue concentration. Initially, we forecast
that two products (Vivitrol, a treatment for alcohol and opioid
dependency, and Aristada, a long-acting injectable antipsychotic)
would account for about 58% of 2023 revenue. However, with
increased revenue from Invega royalties, we now expect the two
products (Vivitrol and Aristada) to account for 45% of 2023
revenue, which in our view is still concentrated. This risk is
somewhat offset by the company's relatively long patent life, aided
by continued strong growth in Lybalvi sales. We expect continued
sales growth from Lybalvi will improve concentration somewhat over
the coming years as about half of the Invega royalties expire in
August 2024 when the term for one-month U.S. Invega Sustenna ends
and another 25% of the royalties expire in 2026 when the term for
Xeplion ends. The remaining Invega royalties expire in 2030."

The spin of the Oncology business remains a risk to the business.
The oncology business currently incurs about $160 million in
ongoing costs and is pre-revenue. If the spin of the business is
delayed and the company incurs additional costs related to the
research and development costs of nemvaleukin or other cancer
therapies, S&P may revise the outlook to stable. S&P expects the
separation to be completed in the fourth quarter of 2023 and to be
subject to customary closing conditions and approvals.

The positive outlook indicates our expectation that if the company
successfully spun off its oncology business, leverage would remain
well under 3x.

S&P said, "We could raise the rating on the company if the oncology
business were successfully spun off and the company did not incur
additional costs related to the spin such that its adjusted debt to
EBITDA improved to and remained below 3x and it maintained a strong
cash balance.

"We could revise our outlook to stable over the next 12 months if
adjusted debt to EBITDA remained above 3x or if the cash balance
were significantly depleted." This could occur if:

-- The company were unable to spin off the oncology business; or

-- The company did not grow as expected, for example if Lybalvi
did not grow as quickly as S&P anticipates.

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

S&P said, "ESG factors have an overall neutral influence on our
credit rating analysis of Alkermes. The Inflation Reduction Act
will increase industry pricing pressure in the U.S., where the
company generates more than 80% of its revenue, but we currently do
not expect a material impact on Alkermes from this new law. In
addition, we believe these social risks are offset by our view that
Alkermes is an innovative pharmaceutical company with multiple
products under development across neuroscience and oncology. Its
top product, Vivitrol, is one of the leading approved therapies for
treating opioid and alcohol dependency."


BLACK DIAMOND 2015-1: Moody's Ups EUR9.5MM F Notes Rating to Ba2
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the following
notes issued by Black Diamond CLO 2015-1 Designated Activity
Company:

EUR24,800,000 Refinancing Class D Senior Secured Deferrable
Floating Rate Notes due 2029, Upgraded to Aaa (sf); previously on
Jul 22, 2022 Upgraded to Aa2 (sf)

EUR23,600,000 Refinancing Class E Senior Secured Deferrable
Floating Rate Notes due 2029, Upgraded to A3 (sf); previously on
Jul 22, 2022 Upgraded to Baa3 (sf)

EUR9,500,000 Class F Senior Secured Deferrable Floating Rate Notes
due 2029, Upgraded to Ba2 (sf); previously on Jul 22, 2022 Upgraded
to Ba3 (sf)

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

EUR24,300,000 (Current outstanding amount EUR16,547,589)
Refinancing Class B-1 Senior Secured Floating Rate Notes due 2029,
Affirmed Aaa (sf); previously on Jul 22, 2022 Affirmed Aaa (sf)

EUR30,000,000 (Current outstanding amount EUR20,429,122)
Refinancing Class B-2 Senior Secured Fixed Rate Notes due 2029,
Affirmed Aaa (sf); previously on Jul 22, 2022 Affirmed Aaa (sf)

EUR22,900,000 Refinancing Class C Senior Secured Deferrable
Floating Rate Notes due 2029, Affirmed Aaa (sf); previously on Jul
22, 2022 Affirmed Aaa (sf)

Black Diamond CLO 2015-1 Designated Activity Company, issued in
September 2015 and refinanced in January 2018, is a multi-currency
collateralized loan obligation (CLO) backed by a portfolio of
mostly high-yield senior secured European and US loans. The
portfolio is managed by Black Diamond CLO 2015-1 Adviser, L.L.C.
(the "Manager"). The transaction's reinvestment period ended in
October 2019.

RATINGS RATIONALE

The rating upgrades on the Class D, E and F Notes are primarily a
result of the significant deleveraging of the senior notes
following amortisation of the underlying portfolio since the last
rating action in July 2022.

The Class A Notes have fully repaid and Class B Notes have paid
down by approximately EUR17.3 million (32% of Class B original
balance) since the last payment date in April 2023. As a result of
the deleveraging, over-collateralisation (OC) has increased across
the capital structure.

According to the trustee report dated 12 May 2023 [1] the Class
A/B, Class C, Class D, Class E and Class F OC ratios are reported
at 369.2%, 228.0%, 161.2%, 126.1% and 115.9% compared to the last
rating action in June 2022, the Class A/B, Class C, Class D, Class
E and Class F OC ratios reported as of June 6, 2022 [2] were
226.2%, 177.1%, 143.4%, 121.4% and 114.4% respectively.

Key model inputs:

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

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

Performing par and principal proceeds balance: EUR139.0m

Defaulted Securities: EUR3.9m

Diversity Score: 28

Weighted Average Rating Factor (WARF): 3207

Weighted Average Life (WAL): 2.9 years

Weighted Average Spread (WAS): 3.4%

Weighted Average Recovery Rate (WARR): 45.6%

Par haircut in OC tests and interest diversion test:  2.5%

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

Methodology Underlying the Rating Action:

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

Counterparty Exposure:

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

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

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

Additional uncertainty about performance is due to the following:

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

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

Foreign currency exposure: The deal has exposures to non-EUR
denominated assets. Volatility in foreign exchange rates will have
a direct impact on interest and principal proceeds available to the
transaction, which can affect the expected loss of rated tranches.

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




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

ARTERRSA SERVICES: MetWest UB Marks $1.9M Loan at 15% Off
---------------------------------------------------------
Metropolitan West Fund's Unconstrained Bond Fund has marked its
$1,965,000 loan extended to Arterrsa Services LLC to market at
$1,674,465 or 85% of the outstanding amount, as of March 31, 2023,
according to a disclosure contained in MetWest Fund's Form N-CSR
for the Fiscal year ended March 31, 2023, filed with the Securities
and Exchange Commission.

Unconstrained Bond Fund is a participant in a First Lien Term Loan
(LIBOR plus 3.50%) to Arterrsa Services LLC. The loan accrues
interest at a rate of 8.44% per annum. The loan matures on March 6,
2025.

The Metropolitan West Funds is an open-end management investment
company organized as a Delaware statutory trust on December 9, 1996
and registered under the Investment Company Act of 1940, as
amended. Metropolitan West Asset Management, LLC, a federally
registered investment adviser, provides the Funds with investment
management services. The Trust currently consists of 14 separate
portfolios.




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

PETROBAS GLOBAL: Moody's Rates New Senior Unsecured Notes 'Ba1'
---------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 rating to the proposed
senior unsecured notes due in up to 10 years to be issued by
Petrobras Global Finance B.V.'s and fully and unconditionally
guaranteed by Petroleo Brasileiro S.A. - PETROBRAS (Petrobras, Ba1
stable). Petrobras' existing ratings including its Ba1 corporate
family rating remain unchanged. The outlook is stable.

The proposed issuance is part of Petrobras's liability management
strategy and proceeds will be used for general corporate purposes
which may include the repayment of outstanding indebtedness, thus
not affecting the company's debt protection metrics.

The rating of the proposed notes assumes that the final transaction
documents will not be materially different from draft legal
documentation reviewed by Moody's to date and assume that these
agreements are legally valid, binding and enforceable.

Assignments:

Issuer: Petrobras Global Finance B.V.

Backed Senior Unsecured Regular Bond/Debenture, Assigned Ba1

RATINGS RATIONALE

Petrobras' Ba1 corporate family rating (CFR) and ba1 Baseline
Credit Assessment (BCA), a measure of a company's standalone credit
risk without government support, reflect the company's strong
credit metrics for its rating category, and its positive track
record of operational and financial improvement. In addition,
Moody's expects Petrobras' operating and financial discipline to
continue to support cash generation, which will help sustain its
current capital structure.

Petrobras' Ba1 ratings are one notch above the Government of Brazil
's Ba2 rating based on the company's considerably stronger
fundamental credit profile than that of the sovereign, and its
ability to withstand adverse economic and business conditions, as
observed during the coronavirus pandemic in 2020. In addition,
Petrobras' corporate governance somewhat protects it from
government interference. There is a low likelihood that the company
will default as a result of sovereign credit distress given
Petrobras' solid financial metrics and capital structure; its low
reliance on domestic funding sources; its limited exposure to
foreign-currency risk, given the relatively low share of the
refining business for consolidated results; and the fact that
around 30% of its sales are related to exports.

Petrobras has been reducing leverage over the past few years, with
a gross debt target (including leases but not pension liabilities)
of $67 billion for 2021 and the company managed to reduce it to $54
billion as of year-end 2022, and plans to maintain it close to $60
billion beyond 2022. Petrobras reached its target ahead of its
deadline by increasing operational efficiencies through
cost-reduction initiatives, and by lowering and postponing capital
investment plans during the pandemic in 2020, and was aided by
higher crude oil prices in 2021 and asset sales. Petrobras'
Moody's-adjusted gross leverage was 1x in the first quarter of this
year, flat versus Q1 2022 and down from 1.4x year-end 2021 and 4x
in 2017. Moody's expects leverage to remain relatively stable in
2023, assuming an average Brent price of $70 per barrel (bbl) for
2023 and $65/bbl for 2024.

In May 2023, Petrobras announced a change to its diesel and
gasoline pricing policy that will use market reference for prices,
including customers' cost for suppliers other than Petrobras, and
Petrobras' opportunity cost to produce, import and export products
used in the refining process. The new policy is credit negative for
Petrobras because it adds uncertainty to the continuity of import
parity practices, which could lead to losses if Petrobras does not
pass through international oil price volatility to domestic fuel
prices. Still, Moody's does not expect the new pricing policy to
create a material deviation in gasoline and diesel prices from
import parity in the short term because it would create asymmetries
in the domestic market. However, if macroeconomic variables such as
the exchange rate or oil prices are stressed, Moody's believes that
Petrobras could halt price increases, incurring losses.

LIQUIDITY

Petrobras' liquidity is good. At the end of March 2023, Petrobras
had $13.2 billion in cash and short-term investments and $9 billion
of committed revolving credit facilities, fully available and
maturing in 2025-26. Moody's expects the company's cash generation
of around $40 billion in 2023 to be more than enough to cover its
annual debt maturities of around $3.6 billion plus annual capital
spending of about $16 billion through the period, allowing it to
maintain reported debt below $55 billion.

The proposed transaction is part of Petrobras' liability management
strategy and proceeds will be used for general corporate purposes
which may include the repayment of outstanding indebtedness, thus
improving liquidity while lengthening the company's debt
amortization schedule further.

RATING OUTLOOK

The stable outlook on Petrobras' ratings reflects Moody's view that
its credit profile will remain mostly unchanged over the next 12-18
months. The stable outlook also reflects the stable outlook on
Brazil's sovereign rating.

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

An upgrade of Petrobras' Ba1 rating is unlikely over the next 12-18
months because Moody's expects the company's credit metrics to
remain relatively stable and it is unlikely that the company would
be rated more than one notch above the sovereign. However, the
ratings could be upgraded if credit metrics are at least stable and
there is evidence of significant lower exposure to adverse
government influence; or if Brazil's sovereign rating is upgraded.

Petrobras' ratings could be downgraded if its operating performance
deteriorates or there are external factors that increase liquidity
risk or debt leverage from the current levels on a sustained basis;
if the quality of the company's corporate governance declines,
increasing its vulnerability to adverse government interference; or
if Brazil's sovereign rating is downgraded.

Petrobras is an integrated energy company, with total assets of
$193 billion and annual revenue of $124 billion as of March 2023.
Petrobras dominates Brazil's oil and natural gas production, and
refining and fuel marketing sectors. The company also holds a stake
in petrochemicals and power plant business segments. The Brazilian
government directly and indirectly owns about 36.6% of Petrobras'
outstanding capital stock and 50.3% of its voting shares.

The principal methodology used in this rating was Integrated Oil
and Gas published in September 2022.


PETROBRAS GLOBAL: S&P Rates New Unsecured Notes Due 2023 'BB-'
--------------------------------------------------------------
S&P Global Ratings assigned its 'BB-' issue-level rating on
Petrobras Global Finance B.V.'s (PGF's) proposed senior unsecured
notes due 2033. PGF is a wholly-owned finance subsidiary of
Brazilian oil and gas company, Petroleo Brasileiro S.A. - Petrobras
(Petrobras; BB-/Positive/--). Petrobras will unconditionally and
irrevocably guarantee the notes.

The proceeds of the new notes will be for general corporate
purposes, including potential prepayment of outstanding debt.  S&P
said, "We continue to forecast solid cash flow for Petrobras, at
least in the short term, considering our assumption of Brent prices
of $85 per barrel (bbl) for the remainder of 2023 and next year,
and if the company's fuel prices remain relatively in line with
international prices. In the short term, we expect limited risks to
the company's credit metrics that could pressure its stand-alone
credit profile (SACP), given an ample cushion in Petrobras'
leverage metric, which is currently about 1.0x."

S&P rates PGF's senior unsecured debt at the same level as its
issuer credit rating on Petrobras, based on the guarantee of this
debt and because the latter has limited secured debt collateralized
by real assets. Even if the senior unsecured debt ranked behind the
subsidiaries' debt in the capital structure, S&P believes the risk
of subordination is mitigated by a priority debt ratio that's far
less than 50% and the significant earnings generated at the parent
level.


PROMONTORIA HOLDING 264: S&P Withdraws 'BB' LT Issuer Credit Rating
-------------------------------------------------------------------
S&P Global Ratings withdrew its 'BB' long-term issuer credit rating
on Promontoria Holding 264 B.V., trading as Worldwide Flight
Services (WFS), at the company's request. At the time of the
withdrawal, the outlook on the long-term issuer credit rating was
stable. In addition, S&P withdrew its 'BB' issue rating on WFS'
senior secured notes as the notes have now been redeemed.

WFS is a wholly owned subsidiary of SATS, a Singapore-listed
aviation services provider that acquired WFS in April 2023 from
private equity company Cerberus Capital Management L.P.


SCHOELLER PACKAGING: Moody's Lowers CFR & Alters Outlook to Neg.
----------------------------------------------------------------
Moody's Investors Service has downgraded to Caa2 from Caa1 the
corporate family rating and to Caa2-PD from Caa1-PD the probability
of default rating of Dutch returnable transit plastic packaging
(RTP) manufacturer Schoeller Packaging B.V.

Concurrently, Moody's has downgraded to Caa2 from Caa1 the rating
on the EUR250 million backed senior secured notes due in November
2024 issued by Schoeller. The outlook has been changed to negative
from stable.

"The downgrade reflects the increased probability of a debt
restructuring given the company's unsustainable capital structure
in the context of approaching debt maturities in a higher interest
rate environment, coupled with its persistently negative free cash
flow generation," says Donatella Maso, a Moody's Vice President -
Senior Credit Officer and lead analyst for Schoeller.

The rating action reflects corporate governance considerations
associated with Schoeller's tolerance for high leverage at a time
when its FCF is strained and its liquidity is weak (Financial
Strategy and Risk Management) as well as the series of recent
management changes when the company is facing operating and
financial challenges (Management Credibility and Track Rrecord),
both captured under Moody's General Principles for Assessing
Environmental, Social and Governance Risks Methodology for
assessing ESG risks.


RATINGS RATIONALE

The downgrade to Caa2 from Caa1 reflects the increased probability
of a debt restructuring, which could be considered a distressed
exchange, a default as per Moody's definition, given Schoeller's
subdued operating performance and persistently negative free cash
flow (FCF) in the context of upcoming debt maturities in the
current high interest rate environment. Moody's understands that
the company is appointing advisors for the refinancing of its debt
maturities in 2024 and therefore it will reassess the rating once
there is more clarity on Schoeller's plans and its capital
structure.

The weak operating environment has impacted customer demand and
constrained Schoeller's EBITDA improvement in 2022 and Q1 2023. The
company's operations have continued to burn cash owing to depressed
EBITDA, inventory build-up and large capital spending plan to
support newly signed rental contracts, the latter being funded with
external liquidity as well as drawings under a new facility
provided by 70% owner Brookfield. As a result, Schoeller's gross
leverage, as adjusted by Moody's, increased to 7.5x as of March
2023 compared to 5.9x in 2021.  

Although Schoeller has recently completed the carve out its long
term rental business, which currently sits outside the restricted
group, this business remains fully consolidated within Schoeller's
perimeter. The long term rental business is small relatively to
Schoeller's manufacturing activities but requires significant
upfront investments, hampering the group's already weak free cash
flow (FCF) and requiring additional liquidity.

Furthermore, in January 2023 the company announced a major
transformation project which is expected to deliver EBITDA
improvement over the course of 2023 but it entails material
restructuring costs.

Moody's forecasts that Schoeller' EBITDA and margin will slightly
improve in 2023-2024 primarily driven by the ramp up of the higher
margin rental contracts and the implementation of cost saving
initiatives. However, the current macroeconomic conditions will
limit the recovery of Schoeller's EBITDA to the level required to
sustain its operations and service its debt. Its gross leverage
will likely continue to rise from the current level owing to
potential new debt raised to finance the rental activities. At the
same time, the rating agency expects Schoeller to continue to
report an EBIT/interest coverage ratio below 1.0x and to generate
negative FCF after interests owing to high capital expenditures and
the payment of lease liabilities as well as the cost associated
with the announced restructuring plan.

The company's high leverage, weak interest coverage and
structurally negative FCF make the capital structure unsustainable
in the current rising interest rate environment, absent shareholder
support. In this context, Moody's notes that the shareholders have
supported the business in the past with EUR57 million of liquidity,
although it is yet unclear whether shareholders will be able and
willing to provide further support in the current challenging
environment.

The Caa2 rating remains constrained by Schoeller's low EBITDA
margins and high capex requirements (including lease repayments),
which constrain its ability to generate positive FCF on a sustained
basis; its exposure to cyclicality, as the purchase of Schoeller's
products is typically seen as a capital investment, and therefore,
is subject to deferral during severe downturns; the highly
competitive industry in the context of the commoditized nature of
the company's products resulting in pricing pressure; its exposure
to raw material price inflation; and some concentration with its
largest client, IFCO, the contract with which expires in 2024.

Conversely, the Caa2 rating is positively supported by Schoeller's
leading market position in the niche RTP sector in Europe with an
estimated 20% share; its geographical and end-market
diversification; and its capacity to innovate, which enables the
company to benefit from the ongoing positive trends in the sector.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

The rating action reflects corporate governance considerations
associated with Schoeller's tolerance for high leverage at a time
when its FCF is strained and its liquidity is weak as well as the
series of recent management changes when the company is facing
operating and financial challenges. For these reasons, Moody's has
changed the Financial Strategy and Risk Management score to 5 from
4 and the Management Credibility and Track Record score to 4 from
3. As a result, the overall exposure to governance risks (Issuer
Profile Score or "IPS") has been changed to G-5 from G-4, while
Schoeller's Credit Impact Score (CIS) has been changed to CIS-5
from CIS-4.

LIQUIDITY

Schoeller's liquidity profile is weak for its near term needs given
Moody's expectation of highly negative free cash flow generation
both for the core manufacturing business and the rental business,
while the majority of its debt, including its EUR30 million super
senior revolving credit facility (RCF) and its EUR250 million
backed senior secured notes, is due in 2024. Schoeller's liquidity
relies on EUR10 million of cash at the end of March 2023; EUR24
million availability under its EUR30 million super senior RCF which
matures in May 2024; and EUR42 million availability under EUR100
million committed non-recourse factoring lines due July 2025.

The company benefits from a EUR65 million committed standby
facility in the form a subordinated shareholders' loan provided by
Brookfield Business Partners L.P., currently drawn for EUR23
million. However, any drawings under this facility require the
consent of shareholders.

STRUCTURAL CONSIDERATIONS

The company's Caa2-PD PDR is aligned with the Caa2 CFR, reflecting
the use of a 50% family recovery rate, as is typical for
transactions that include both bonds and bank debt.

The Caa2 rating on the notes reflects the fact that they represent
the majority of the debt in the capital structure and the size of
the RCF is not sufficiently large to allow any notching. Both the
notes and the super senior RCF share the same security and
guarantees but the notes rank junior to the RCF upon enforcement
under the provisions of the intercreditor agreement. The security
package includes pledges over shares, bank accounts, receivables,
and certain UK assets. Material subsidiaries which guarantee the
notes represent c.93% of the group's EBITDA or c.84% of total
assets.

The capital structure also includes a EUR65 million subordinated
shareholders' loan due 2029, and a EUR25 million subordinated
shareholders' loan due May 2025, provided by Brookfield. These
facilities have been treated as equity in accordance with Moody's
hybrid methodology. Brookfield made also available a EUR10 million
working capital line maturing December 2027 to the rental business,
which has been treated as debt.

RATIONALE FOR NEGATIVE OUTLOOK

The negative outlook reflects the increasing likelihood that
Schoeller will pursue a restructuring of its debt over the coming
months, which could lead to losses for its creditors.

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

Given the negative outlook, upward pressure on the rating is
unlikely. However, the rating could be upgraded if Schoeller
addresses the refinancing of its upcoming maturities with a
manageable cost of debt that makes its capital structure more
sustainable, and it generates consistently positive free cash flow
while maintaining an overall adequate liquidity.

Schoeller's rating could be lowered if the company fails to
refinance its 2024 debt maturities in the coming months, or if the
company pursues a debt restructuring resulting in higher losses for
creditors than those currently assumed in the current Caa2 rating.

LIST OF AFFECTED RATINGS

Downgrades:

Issuer: Schoeller Packaging B.V.

Probability of Default Rating, Downgraded to Caa2-PD from Caa1-PD

LT Corporate Family Rating, Downgraded to Caa2 from Caa1

BACKED Senior Secured Regular Bond/Debenture, Downgraded to Caa2
from Caa1

Outlook Action:

Issuer: Schoeller Packaging B.V.

Outlook, Changed To Negative From Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Packaging
Manufacturers: Metal, Glass and Plastic Containers published in
December 2021.

COMPANY PROFILE

Headquartered in the Netherlands, Schoeller is a returnable transit
plastic packaging manufacturer operating primarily in Europe and
the US, employing approximately 2,000 people. For the last twelve
months ending March 31, 2023, the company generated revenue of
EUR604 million and EBITDA of EUR53 million, as adjusted by
Moody's.

The company is the result of the  integration between the Schoeller
Arca Systems Group and the Linpac Allibert Group in 2013.  Since
May 2018, Schoeller is 70% owned by private equity Brookfield
Business Partners L.P. and 30% by Schoeller Industries B.V., a
family-owned business with a broad focus on packaging, transport
and logistics systems.




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

SANTANDER CONSUMO 5: Moody's Assigns (P)Ba1 Rating to Cl. D Notes
-----------------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to the Notes to be issued by SANTANDER CONSUMO 5, FONDO DE
TITULIZACION ("FT SANTANDER CONSUMO 5"):

EUR640M Class A Notes due 2036, Assigned (P)Aa1 (sf)

EUR43.2M Class B Notes due 2036, Assigned (P)A2 (sf)

EUR35.6M Class C Notes due 2036, Assigned (P)Baa3 (sf)

EUR30.8M Class D Notes due 2036, Assigned (P)Ba1 (sf)

Moody's has not assigned any rating to the EUR50.4M Class E Notes
due 2036. Moody's has not assigned any rating to the subordinated
EUR16M Class F Notes due 2036.

RATINGS RATIONALE

The Notes are backed by a five-month revolving pool of Spanish
unsecured consumer loans originated by Banco Santander S.A. (Spain)
("Santander"), (A2/P-1 Bank Deposits; A3(cr)/P-2(cr)). This
represents the 5th issuance out of the Santander Consumo programme.
Santander is acting as originator and servicer of the loans while
Santander de Titulizacion S.G.F.T., S.A. (NR) is the Management
Company ("Gestora").

The portfolio size is approximately EUR1,457 million as of April
19, 2023 pool cut-off date. 100% of the loans are paying fixed
rate. The weighted average seasoning of the portfolio is 1.16 years
and its weighted average remaining term is 5.2 years. Around 59.66%
of the outstanding portfolio are loans without specific loan
purpose and 22.74% are loans to finance small consumer
expenditures. Geographically, the pool is concentrated mostly in
Madrid (19.58%), Andalucía (17.32%) and Catalonia (10.92%). The
portfolio, as of its pool cut-off date, does not have any loan in
arrears. The final portfolio will be selected randomly from the
provisional portfolio to match the final Notes issuance amount
EUR800 million.

The ratings are primarily based on the credit quality of the
portfolio, the structural features of the transaction and its legal
integrity.

According to Moody's, the transaction benefits from various credit
strengths such as the granularity of the portfolio, securitisation
experience of Santander, a reserve fund sized at 2.0% of the total
rated Notes balance at closing and the credit enhancement provided
via subordination of the Notes (Class A Notes subordination backed
by the portfolio at closing is 20.0%).

However, Moody's notes that the transaction features a number of
credit weaknesses, such as a complex structure including interest
deferral triggers for junior Notes, pro-rata payments on Classes
A-E Notes from the first payment date, limited excess spread,
five-months revolving period which could increase performance
volatility of the underlying portfolio and the relatively high
linkage to Santander, which is acting as originator, servicer,
account bank, swap counterparty and paying agent. Various mitigants
have been put in place in the transaction structure, such as early
amortisation triggers and strict eligibility criteria on both
individual loan and portfolio level.  

Hedging: The interest rate mismatch between the fixed rate
portfolio and the floating rate Notes is hedged by an interest rate
swap. Banco Santander S.A. (Spain) (A2/P-1 Bank Deposits;
A3(cr)/P-2(cr)) is the swap counterparty and will pay the index on
the Notes (three-month EURIBOR) while the issuer will pay a fixed
swap rate of 3.24% based on a notional tracking the outstanding
balance of the non-defaulted loans in the portfolio.

Moody's determined the portfolio lifetime expected defaults of
4.25%, expected recoveries of 15% and portfolio credit enhancement
("PCE") of 17% related to borrower receivables. The expected
defaults and recoveries capture Moody's expectations of performance
considering the current economic outlook, while the PCE captures
the loss Moody's expect the portfolio to suffer in the event of a
severe recession scenario. Expected defaults and PCE are parameters
used by Moody's to calibrate its lognormal portfolio loss
distribution curve and to associate a probability with each
potential future loss scenario in the cash flow model to rate
Consumer ABS.

Portfolio expected defaults of 4.25% are in line with the Spanish
Consumer Loan ABS average and are based on Moody's assessment of
the lifetime expectation for the pool taking into account: (i)
historic performance of the loan book of the originator, (ii) the
positive selection of consumer loans in this portfolio excluding
the highest internal PDs, (iii) the pool composition in terms of
the exposure to certain products, i.e. pre-approved loans, where
the borrower was offered an unsecured consumer loan up to a maximum
amount without initiating an application process, (iv) benchmark
transactions, and (v) other qualitative considerations.

Portfolio expected recoveries of 15.00% are in line with the
Spanish Consumer Loan ABS average and are based on Moody's
assessment of the lifetime expectation for the pool taking into
account: (i) historic performance of the loan book of the
originator, (ii) benchmark transactions, and (iii) other
qualitative considerations.

PCE of 17.00% is in line with the Spanish Consumer Loan ABS average
and is based on Moody's assessment of the pool which is mainly
driven by: (i) evaluation of the underlying portfolio, complemented
by the historical performance information as provided by the
originator, and (ii) the relative ranking to originator peers in
the Spanish Consumer Loan ABS market. The PCE of 17.00% results in
an implied coefficient of variation ("CoV") of 52%.

The principal methodology used in these ratings was "Moody's
Approach to Rating Consumer Loan-Backed ABS" published in December
2022.

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

Factors that would lead to an upgrade of the ratings include: (i) a
significantly better than expected performance of the pool, (ii) an
increase in credit enhancement of the Notes, or (iii) an
improvement of Spain's local currency country ceiling (LCC).

Factors that would lead to a downgrade of the ratings include: (i)
a decline in the overall performance of the pool, (ii) the
deterioration of the credit quality of Santander, or (iii) a
deterioration of Spain's local currency country ceiling (LCC).




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S W E D E N
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TRANSCOM HOLDING: Moody's Alters Outlook on 'B3' CFR to Positive
----------------------------------------------------------------
Moody's Investors Service has changed to positive from stable the
outlook on Transcom Holding AB. Concurrently Moody's has affirmed
Transcom's B3 corporate family rating, B3-PD probability of default
rating, and the B3 instrument rating on the EUR315 million backed
senior secured notes due 2026.

RATINGS RATIONALE

The outlook change to positive reflects the company's strong
performance in 2022 with good organic growth complemented by a
modest increase in revenue from acquisitions, particularly in its
eCommerce and technology segment. The solid performance resulted in
faster deleveraging than expected, with Moody's adjusted
Debt/EBITDA reducing to 4.6x in 2022 from 5.8x in 2021. Moody's
expects leverage to further reduce to around 4.3x by the end of
2023.

The B3 CFR reflects the company's market-leading position in
customer relationship management (CRM) in EMEA and particularly in
the Nordic region; a relatively global footprint with both offshore
and nearshore activities, which allows the company to serve
international contracts; and the positive trends for the CRM
industry.

The company's rating is constrained by its smaller size than global
peers; its weak Moody's-adjusted free cash flow (FCF) generation
which is expected to be only marginally positive in the next 12
months; and the risk of future debt-funded acquisitions or
shareholder distributions.

Moody's expectation of further deleveraging is based on a
Moody's-adjusted EBITDA base case forecast of  around EUR93 million
in 2023, supported by modest revenue growth of 6% and EBITDA
margins of 12% as achieved in 2022 (10% in 2021). In Q1 2023 the
company already recorded strong revenue growth of 9.8% compared
with Q1 2022. Moody's expects the company will be able to further
improve margins in 2024 as a result of cost savings and increased
demand for near and offshore services, as well as an increase in
the more profitable digital solutions segment. Moody's FCF is
expected to strengthen from 2024 given the projected stronger
performance and improved working capital. While the macro
environment is expected to be challenging going forward, Moody's
believes the company's business model with its increasing
proportion of near and offshore locations - reaching 45% in LTM Q1
2023 – provides a good degree of mitigation against rising
inflation. The company is also protected from inflationary pressure
through its ability to pass through cost increases to customers.

STRUCTURAL CONSIDERATIONS

The B3 instrument rating on the EUR315 million senior secured notes
is in line with CFR as the company's capital structure comprises
only the senior secured notes and the EUR75 million super senior
revolving credit facility. The senior secured notes and RCF rank
pari passu and benefit from guarantees from operating subsidiaries
and security over the shares of Transcom. However, proceeds from
any recovery from enforcement of security interests will be applied
to satisfy obligations under the super senior revolving credit
facility before being applied to satisfy obligations under the
senior secured notes.

LIQUIDITY

Transcom's liquidity is adequate, supported by EUR35 million of
cash as of March 31, 2023, EUR47 million available of the EUR75
million super senior revolving credit facility maturing in 2026,
and estimated funds from operations of EUR51 million in 2023. This
is enough to comfortably cover working capital outflows of EUR5
million and capital spending of around EUR37 million (before IFRS
16) in 2023.

The super senior RCF documentation contains a springing financial
covenant based on super senior secured net leverage set at 2.5x and
tested when the RCF is drawn by more than 35%.

RATIONAL FOR POSITIVE OUTLOOK

The positive outlook on the ratings reflects Moody's expectation
that Transcom's operating performance will continue to strengthen
especially in the more profitable segments, allowing the group's
debt/EBITDA (as adjusted by Moody's) to remain below 5x over the
next 12-18 months. It also assumes that the company will not engage
in any material debt-financed acquisitions or shareholders
distributions.

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

Further upward rating pressure could emerge if Transcom continues
to demonstrate a track record of revenue growth while enhancing its
customer and sector diversification; the company maintains its
Moody's-adjusted EBITA margin in the high-single digits in
percentage terms; Moody's-adjusted leverage remains below 5.0x on a
sustained basis; FCF generation is increased sustainably towards
mid-single digits as a percentage of Moody's-adjusted debt; and
liquidity remains at least adequate.

Downward rating pressure could emerge if Transcom is unsuccessful
in renewing major contracts or its margins decline; the company's
Moody's-adjusted leverage rises to around 7.0x; its FCF is
negative; or its liquidity deteriorates and becomes weak.

LIST OF AFFECTED RATINGS

Affirmations:

Issuer: Transcom Holding AB

Probability of Default Rating, Affirmed B3-PD

LT Corporate Family Rating, Affirmed B3

BACKED Senior Secured Regular Bond/Debenture, Affirmed B3

Outlook Actions:

Issuer: Transcom Holding AB

Outlook, Changed To Positive From Stable

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Founded in 1995, Transcom ranks among the largest European
providers of outsourced CRM and is the leading provider in Sweden
and Norway. Headquartered in Sweden, the company operates more than
85 contact center locations in 27 countries, offering services in
33 languages to more than 200 international clients. The company
delivers a broad range of services, including QRC management
(request for information, subscriptions, complaints and technical
support), customer acquisition and onboarding (sales and marketing
operations), CRM and retention, back office, credit and
collections, and advisory and analytics.

In April 2017, Altor Fund IV (Altor), completed the take-private of
Transcom for a total consideration of SEK2.3 billion.




=====================
S W I T Z E R L A N D
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CERDIA INTERNATIONAL: S&P Affirms 'B-' ICR & Alters Outlook to Pos.
-------------------------------------------------------------------
S&P Global Ratings revised the outlook on Switzerland-based Cerdia
International GmbH's parent BCP VII Jade Topco (Cayman) Ltd. to
positive from stable. S&P affirmed its 'B-' long-term issuer credit
and issue ratings on Cerdia and revising upward its estimated
recovery prospects of the bond to 55% from 50%. The '3' recovering
rating is unchanged.

S&P said, "The positive outlook reflects that Cerdia has seen
improved earnings while reducing gross debt. We expect this to
result in debt to EBITDA reducing below 5.0x in 2023-2024 and free
operating cash flow generation (FOCF) close to $30 million this
year and potentially exceeding $40 million next."

Cerdia has completed a buyback of a portion of its outstanding
senior secured bonds with a nominal value of $40 million. This
follows the repayment of the drawn revolving credit facility (RCF)
of EUR65 million and completion of excess cash flow offer of $18.2
million in March 2023.

S&P has also revised its EBITDA forecasts to reflect improved
selling prices and end-market demand for some of the company's
products, and expect Cerdia to report S&P Global Ratings-adjusted
EBITDA of $150 million-$180 million in 2023 and $140 million-$170
million in 2024.

"Higher average selling prices and stronger demand for acetate
flakes will lead to higher-than-expected EBITDA in 2023-2024. We
anticipate that higher sales prices and acetate volumes will more
than offset the hit from high inflation and lost volumes from
Russia in 2023. Net sales in the three months ending March 2023
were 33.2% higher than net sales reported in the same period in the
previous year, driven by elevated sales prices and stronger acetate
flake volumes. Contract negotiations for 2023 were completed with
several multi-year agreements with key accounts, which in our view,
should give more visibility than in the past for volume
allocation.

"We anticipate limited restructuring costs and understand that
Cerdia will focus on projects to optimize its production output and
improve energy efficiency. Most of costs associated with Cerdia's
French site (Roussillon) closure were already covered between 2020
and 2022 and we anticipate the remainder to be spent between 2023
and 2026 to total $3 million. For 2023-2024, Cerdia will focus its
strategy on improving and investing in energy efficiency at its
plant in Germany due to its reliance on natural gas, and
debottleneck some capacities to partly offset the production
reduction in Russia.

"We now forecast healthy free operating cash flows in 2023-2024,
despite higher capital expenditure (capex) and working capital
outflows. We expect capex to increase to about $28 million-$30
million in 2023-2024 from about $17 million in 2022 and assume
modest working capital outflows following inflows of about $18
million in 2022. That said, the higher-than-anticipated sales and
margins in our revised base case should support healthy cash flow
generation."

Gross debt reduction should further support Cerdia's credit metrics
and cash flow generation. Following the repayment of the drawn RCF
of EUR65 million and completion of excess cash flow offer of $18.2
million in March 2023, Cerdia announced that is has completed a
buyback of a portion of its outstanding senior secured bonds with a
nominal value of $40 million. S&P said, "We view this transaction
as opportunistic given the company's comfortable maturities,
adequate liquidity, and our expectation of improving leverage and
cash flow generation. We understand that the purpose of this
transaction is to further deleverage the company and reduce cash
interest expenses in the coming quarters. We now anticipate cash
interests to decline to about $57 million next year from
approximately $62 million this year."

The positive outlook reflects that Cerdia has seen its earnings
improve while reducing total gross debt with the recently announced
$40 million bond repurchase, the contractual bond amortization, and
RCF repayment. S&P expects this to result in debt to EBITDA
reducing below 5.0x in 2023-2024 and FOCF generation close to $30
million this year and potentially exceeding $40 million next.

S&P could revise its outlook to stable over the next 12 months if:

-- The improvement of Cerdia's operating performance were to lose
momentum, leading to a deterioration of earnings and cash flows. In
this scenario, S&P would expect debt to EBITDA to increase above
6.5x and FOCF to be below $30 million.

-- If the company were to pursue sizable debt-funded
transactions.

Upside scenario

S&P could raise its ratings on Cerdia over the next 12 months if:

-- Underlying EBITDA growth was such that S&P Global
Ratings-adjusted debt to EBITDA fell sustainably well below 6.5x;

-- FOCF were expected to remain above $30 million; and

-- Cerdia and its owners committed to maintaining leverage metrics
at these levels.

ESG credit indicators: E3-S4-G3


VIKING CRUISES: Moody's Ups CFR to 'B2', Outlook Stable
-------------------------------------------------------
Moody's Investors Service upgraded the ratings of Viking Cruises
Ltd ("Viking", combined herein with Viking Ocean Cruises Ltd and
Viking Ocean Cruises Ship VII Ltd.) including its corporate family
rating to B2 from B3 and probability of default rating to B2-PD
from B3-PD. Moody's also upgraded Viking's senior secured rating to
Ba3 from B2 and senior unsecured rating to Caa1 from Caa2. At the
same time, Moody's assigned a Caa1 rating to Viking's planned
senior unsecured note issuance. The outlook is stable.

"The upgrade reflects Moody's forecast that Viking's operating
results will improve materially over the coming year driven by
strong cruise demand during the summer of 2023, higher prices than
2019 and increased capacity which will enable Viking to reduce
debt/EBITDA to around 5.5x at the end of 2023," stated Pete
Trombetta, Moody's VP-Senior Analyst. Viking has reported 2023
pricing for its ocean cruise segment that is about 8% higher than
2019 with the river cruise segment pricing slightly ahead of 2019.
With 2023 operating capacity almost 30% higher than that of 2019,
strong pricing and demand will drive 2023 EBITDA above 2019
levels.

The two notch upgrade to the senior secured rating to Ba3 reflects
the change in CFR and the removal of a one notch negative override
that was put in place during the pandemic. There is more clarity
around the value of the collateral – a first priority interest on
discrete assets, including specific ships – in the current
operating environment compared to during the pandemic. The Caa1
rating assigned to the company's senior unsecured debt, two notches
below the corporate family rating, reflects the significant amount
of secured debt ahead of it in the capital structure.

Proceeds from the planned $720 million 8-year senior unsecured
notes issuance will be used to refinance the company's 13% senior
secured notes due 2025 and pay fees and expenses.

Assignments:

Issuer: Viking Cruises Ltd

Senior Unsecured Global Notes, Assigned Caa1

Upgrades:

Issuer: Viking Cruises Ltd

Corporate Family Rating, Upgraded to B2 from B3

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

Backed Senior Secured Global Notes, Upgraded to Ba3 from B2

Senior Unsecured Global Notes, Upgraded to Caa1 from Caa2

Issuer: Viking Ocean Cruises Ltd.

Senior Secured Global Notes, Upgraded to Ba3 from B2

Issuer: Viking Ocean Cruises ship VII Ltd.

Backed Senior Secured Global Notes, Upgraded to Ba3 from B2

Outlook Actions:

Issuer: Viking Cruises Ltd

Outlook, Remains Stable

Issuer: Viking Ocean Cruises Ltd.

Outlook, Remains Stable

Issuer: Viking Ocean Cruises ship VII Ltd.

Outlook, Remains Stable

RATINGS RATIONALE

The B2 CFR reflects Viking's well-recognized brand name in both the
premium segment of the river and ocean cruising markets. It has an
approximate 50% share of passengers from North America that take
river cruises in Europe. Viking entered the ocean cruise segment in
2015 after focusing on the river cruise market for almost 20 years,
and the ocean cruise segment now accounts for approximately 50% of
net cruise revenue. Viking's ratings are constrained by its modest
free cash flow generation – driven primarily by new ship
deliveries and a higher interest expense burden – which will
hamper the company's ability to materially reduce debt over the
next two to three years.

The stable outlook reflects Moody's view that Viking will reduce
its debt/EBITDA to below 5.5x in 2024 and maintain adequate
liquidity.

Viking's liquidity includes cash of about $925 million at March 31,
2023 – typically its seasonal low point – which is sufficient
to cover the company's cash needs. Viking does not currently have a
revolving credit facility. However, the company has a history of
holding significantly more cash than is needed for operations.
Certain ship financings do require the company to maintain minimum
liquidity of $75 million. Moody's view alternate sources of
liquidity as being limited. Despite Moody's view that cruise ships
are valuable long-term assets, it will be challenging to quickly
sell ships to raise cash if needed.

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

Ratings could be upgraded if operating performance improves to
levels that would sustain debt/EBITDA below 5.0x while maintaining
adequate liquidity. Ratings could be downgraded if liquidity
deteriorated in any way, or if debt/EBITDA does not improve to
below 6.0x.

Incorporated in Bermuda, Viking operated a fleet of 80 river cruise
vessels and 10 ocean or expedition ships as of March 31, 2023. Its
river cruises operate in over 20 countries largely in Continental
Europe. In the first quarter of 2023, about 90% of its total river
and ocean customers are sourced from North America. TPG Capital and
Canada Pension Plan Investment Board own minority interests (about
40% in the aggregate) in Viking Holdings Ltd, parent company of
Viking Cruises. The remaining ownership is indirectly held under a
trust in which founder, Torstein Hagen has a life interest. Net
cruise revenues were about $2.1 billion for the last twelve months
ended March 31, 2023.

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




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

AA BOND: S&P Assigns B+ Rating on Class B3-Dfrd Notes
-----------------------------------------------------
S&P Global Ratings assigned its 'BBB- (sf)' credit rating to AA
Bond Co. Ltd.'s GBP135 million tap issuance on the class A10 notes.
Its rating on these senior notes addresses the timely payment of
interest and ultimate payment of principal on the legal final
maturity date. The class A10 tap notes' expected maturity date will
be in July 2029 and the notes rank pari passu with the senior term
facility (STF), working capital facility (WCF), and the other
outstanding class A notes, and senior to the existing class B
notes.

S&P said, "At the same time, we affirmed our 'BBB- (sf)' ratings on
the outstanding class A2, A7, A8, A9, A10, and A11 notes and our
'B+ (sf)' rating on the outstanding class B3-Dfrd notes."

"Since we assigned the preliminary rating, the borrower reduced the
class A10 tap notes' balance to GBP135 million. Since these notes
were issued at a discount, the net proceeds of GBP121.92 million
are insufficient to redeem the remaining class A7 notes. The
repayment of the class A7 notes has involved technical delays, due
to which these proceeds were deposited in the MPA with the existing
transaction bank account provider, until such time they are
utilized to fully repay the class A7 notes. These proceeds along
with the GBP0.7 million existing balance in the MPA and GBP6.63
million from the cash available within the WBS group will be used
to fully repay the entire GBP129.25 million outstanding balance on
the class A7 notes issued on July 17, 2018, ahead of their expected
maturity in July 2024. The class A7 notes will in any case be
repaid by the end of this month (June 30, 2023). Other than this,
the borrower has not made any notable changes," S&P said.

The GBP135 million class A10 tap issuance notes have been
consolidated with the existing GBP250 million class A10 notes
following which the notes' outstanding balance increased to GBP385
million.

Senior term facility (STF)

Overall, since S&P's previous review, the STF commitment increased
by GBP15 million. This additional amount was fully drawn to prepay
the class A7 notes in May 2023.

The only interest rate swaps the AA Bond Co. has in place are to
hedge the drawings on the STF. The additional GBP15 million drawn
on the STF is also hedged. On March 24, 2023, the issuer entered
into an interest rate swap agreement for this portion with J.P.
Morgan Securities PLC.

Liquidity facility

The liquidity facility commitment amount was raised by GBP15
million in February 2023 and by a further GBP25 million in June
2023 to a total of GBP200 million available now. While the
additional commitment provides higher available liquidity coverage,
it also raises costs in the structure, with an additional
commitment fee on the liquidity facility.

Executive summary

AA Bond Co.'s financing structure blends a corporate securitization
of the operating business of the Automobile Association (AA) group
in the U.K. with a subordinated high-yield issuance. Debt repayment
is supported by the operating cash flows generated by the borrowing
group's two main lines of business: roadside assistance, and
insurance brokering.

S&P believes the transaction would qualify for the appointment of
an administrative receiver under the U.K. insolvency regime.
Accordingly, an obligor default would allow the noteholders to gain
substantial control over the charged assets prior to an
administrator's appointment, without necessarily accelerating the
secured debt, both at the issuer and borrower levels.

AA Bond Co.'s primary sources of funds for principal and interest
payments on the class A notes are the loan interest and principal
payments from the borrower and amounts available from the liquidity
facility, which is shared with the borrower to service the senior
term loan (when the latter is drawn).

Principal and interest payments under the loan are supported by the
operating cash flows generated by the borrowing group's two main
lines of business: roadside assistance and insurance brokering.

S&P's ratings on the class A notes are based primarily on our
ongoing assessment of the borrowing group's underlying BRP, the
integrity of the transaction's legal and tax structure, and the
robustness of operating cash flows supported by structural
enhancements.

Business risk profile

S&P does not see material changes in business fundamentals for the
borrowing group Holdco, AA Intermediate Co., relative to its
existing BRP assessment, which remains unchanged at satisfactory.
S&P's BRP assessment is based on the factors outlined below.

Table 1

Key credit considerations

Leading market position

-- With about 40% and 60% market share in the business-to-consumer
(B2C) and business-to-business (B2B) roadside segments,
respectively, the AA is the market leader in the U.K.'s roadside
breakdown services industry.

Membership-based business model

-- The AA had about 3.2 million paid members in the B2C roadside
segment and about 10.6 million paid members in the B2B roadside
segment in FY2023. Retention rates in the B2C segment are
approximately 84% under the new reported measure, and it retained
or extended all its key contracts in the B2B segment in FY2023.
This membership-based business model provides good cash flow
visibility, despite some churn in membership base and potential
renewal risk for the longer-term B2B contracts.

Relatively high barriers to entry

-- The AA's longstanding brand name, strong customer loyalty, and
retention rates, as well as its national roadside assistance fleet,
create relatively high barriers to entry.

Strong profitability

-- The BRP is underpinned by above average S&P adjusted EBITDA
margins, which historically have been in the 30%-35% range. S&P
said, "That said, we continue to expect margins to slightly weaken
toward the lower end of the range in FY2023, because of the higher
exceptional costs related to strategic projects and development of
connected car capability. Therefore, we expect S&P adjusted margins
of about 31.0% in FY2023 compared to 32.5% in FY2022, before
recovering to about 33.0% in FY2024. However, absent major
operational issues related to the program's implementation and
ability to largely pass on cost increases to its customers
(especially in roadside segment), these should still comfortably
exceed the 25% margin threshold we would expect from the group,
supporting the group's satisfactory BRP."

Limited scale

-- Despite the significant advantage in terms of size relative to
its direct competitors, S&P views this base as relatively small
compared with peers from across other business services sectors.

Limited service diversification and weak geographic
diversification

-- The AA's roadside segment accounted for about 84% of the
group's revenue base and about 86% of company reported EBITDA in
FY2023. The AA derives its revenues solely in the U.K.

Moderate customer concentration

-- Top 10 B2B clients account for about 15% of the group's revenue
in that segment.

Debt service coverage ratio analysis

S&P said, "Our cash flow analysis serves to both assess whether
cash flows will be sufficient to service debt through the
transaction's life and to project minimum DSCRs in base-case and
downside scenarios. In our analysis, we have excluded any projected
cash flows from the underwriting part of the AA's insurance
business, which is not part of the restricted borrowing group (only
the insurance brokerage part is).

"In this transaction, although the borrower and the issuer share
the liquidity facility, the borrower's ability to draw is limited
to liquidity shortfalls related to the STF and does not cover the
issuer/borrower loans. Therefore, we do not give credit to the
liquidity facility in our base-case DSCR analysis.

"Currently there is about GBP80.5 million of cash trapped in the
WBS structure, given the breach of the restricted payment condition
(RPC), which is expected to reduce to GBP70.6 million post
redemption of the class A7 notes. The RPC permits upstreaming
unrestricted surplus cash once the class A net debt-to-EBITDA ratio
is less than or equal to 5.5x. Since the unrestricted cash is not
dedicated for debt service and may be potentially upstreamed at any
point the RPC is satisfied, we do not account for it in our DSCR
analysis."

Base-case scenario

S&P said, "Our base-case EBITDA and operating cash flow projections
in the short term and the company's satisfactory BRP rely on our
corporate methodology. We discussed and received confirmation on
the company's performance as well as expectations from its
management. We have not yet received the audited financials for
FY2023 for the AA Intermediate Co. Considering the updates
provided, we have revised our forecasts downwards primarily due to
higher capex assumptions attributed to continued investments in the
new business, digital capabilities, and data infrastructure. We
gave credit to growth through the end of FY2025. Beyond FY2025, our
base-case projections are based on our methodology and assumptions
for corporate securitizations, from which we then apply assumptions
for capex, finance leases, pension liabilities, and taxes to arrive
at our projections for the cash flow available for debt service."
For AA Intermediate Co., S&P's assumptions were:

-- Maintenance capex (including net finance leases): GBP65 million
for FY2023 and about GBP63 million for each FY2024 and FY2025.
Thereafter, S&P assumes GBP44 million, in line with the transaction
documents' minimum requirements. The AA recently completed the
five-year review on minimum capex required under the WBS
documentation and agreed an increase to GBP44 million from GBP35
million. S&P has therefore adjusted its long-term maintenance capex
to GBP44 million from GBP35 million since our previous review.

-- Development capex: GBP44 million for FY2023, GBP45 million for
FY2024, and GBP40 million for FY2025. The development capex
assumption increased by GBP5 million, GBP15 million, and GBP10
million in FY2023, FY2024, and FY2025, respectively. Thereafter,
because S&P assumes no growth, it considered no investment capex,
in line with its corporate securitization criteria.

-- Working capital: A net outflow of GBP14 million for FY2023
followed by net inflows of GBP5 million in FY2025, and nil in
FY2024, compared with S&P's previous expectations of GBP5 million
in FY2024 and nil in FY2025. Thereafter, S&P assumes that the
change in working capital is nil.

-- Pension liabilities: S&P considered the plan agreed by the
company with the trustee in February 2020. The company also agreed
in 2023 that the contributions will remain unchanged. Therefore,
its pension liabilities assumption remains unchanged.

-- Tax: S&P said, "Our assumption for FY2024 and FY2025 was
updated to account for higher than previously anticipated
development capex. Our updated tax assumptions are GBP11 million
for FY2023, GBP19 million for FY2024, and GBP21 million for FY2025,
compared with our previous tax assumption of GBP11 million, GBP29
million, and GBP31 million for FY2023, FY2024, and FY2025
respectively. Thereafter, we considered GBP31 million tax
exposure."

The transaction structure includes a cash sweep mechanism for the
repayment of principal following an expected maturity date (EMD) on
each class A notes including the tap issuance on the class A10
notes. Therefore, in line with S&P's corporate securitization
criteria, it assumed a benchmark principal amortization profile
where the class A10 notes are repaid over 15 years following the
EMD based on an annuity payment that S&P includes in its calculated
DSCRs.

S&P said, "Based on our assessment of AA Intermediate Co.'s
satisfactory BRP, which we associate with a business volatility
score of 3, and the minimum DSCR achieved in our base-case
analysis, we established a 'bb+' anchor for the class A notes.

"Given our revised base-case forecast and increased debt service,
the minimum DSCR achieved in our analysis is in the upper end of
the 1.10x-1.40x range, which implies a 'bb+' base-case anchor. This
is down from our base-case anchor of 'bbb-' in our previous review,
when the minimum DSCR achieved was at the lower end of the
1.40x-3.25x range."

Downside DSCR analysis

S&P said, "Our downside DSCR analysis tests whether the
issuer-level structural enhancements improve the transaction's
resilience under a stress scenario. AA Intermediate Co. falls
within the business and consumer services industry, for which we
apply a 30% decline in EBITDA relative to the base-case at the
point where we believe the stress on debt service would be
greatest.

"Our downside DSCR analysis resulted in a strong resilience score
for the class A notes. The combination of a strong resilience score
and the 'bb+' anchor derived in the base-case results in a
resilience-adjusted anchor of 'bbb'.

"The GBP200 million liquidity facility balance represents about
9.78% of liquidity support, measured as a percentage of the current
outstanding senior debt, which is marginally below the 10% level we
typically consider for significant liquidity support. Therefore, we
have not considered any further uplift adjustment to the
resilience-adjusted anchor for liquidity."

Modifiers analysis

S&P has not applied any adjustments under its modifier analysis.

Comparable rating analysis

Due to its cash sweep amortization mechanism, the transaction
relies significantly on future excess cash. In S&P's view, the
uncertainty related to this feature is increased by the execution
risks related to the company's investment plan and the returns it
will effectively generate. The company may need to invest
periodically to maintain its cash flow generation potential over
the long term, which could erode future excess cash. To account for
this combination of factors, S&P applied a one-notch decrease to
the senior class A notes' resilience-adjusted anchor.

Counterparty risk

S&P's 'BBB- (sf)' rating on the class A notes is not constrained by
the ratings on any of the counterparties, including the liquidity
facility, derivative, and bank account providers.

Eligible investments

Under the transaction documents, the counterparties can invest cash
in short-term investments with a minimum required rating of 'BBB-'.
Given the substantial reliance on excess cash flow as part of S&P's
analysis and the possibility that this could be invested in
short-term investments, full reliance can be placed on excess cash
flows only in rating scenarios up to 'BBB-'.

  Table 2

  Credit rating steps for class A notes

  Business risk profile                   Satisfactory

  Business volatility score               3

  Base case minimum DSCR range            Upper end of 1.10x-1.40x

  Anchor                                  bb+

  Downside case EBITDA decline            30%

  Downside minimum DSCR range             1.8x-4.0x

  Resilience score                        Strong

  Resilience adjusted-anchor              bbb

  Liquidity adjustment                    None

  Modifier analysis adjustment            None

  Comparable rating analysis adjustment   -1 notch

  Maximum potential rating                BBB-

  Eligible investment cap                 BBB-

  Preliminary rating                      BBB- (sf)

  DSCR--Debt service coverage ratio.


Rationale for the class B3-Dfrd notes

S&P said, "Our rating on the class B3-Dfrd notes addresses the
ultimate payment of interest and ultimate payment of principal on
or before its legal final maturity date in July 2050. The class
B3-Dfrd notes are structured as soft-bullet notes due in July 2050,
but with interest and principal due and payable to the extent
received under the B3 loan. Under the terms and conditions of the
class B3 loan, if the loan is not repaid on its expected maturity
date (January 2026), interest and principal will no longer be due
and will be deferred. The deferred interest, and the interest
accrued thereafter, becomes due and payable on the final maturity
date of the class B3-Dfrd notes in 2050. Our analysis focuses on
the scenarios in which the underlying loan is not repaid on the EMD
and the corresponding notes are not redeemed. We understand that
the obligors will not be permitted to make interest and principal
payments under the class B3 issuer/borrower facility agreement.
Therefore, in our cash flow analysis, we assume that the class B3
notes do not receive interest following the class A2 EMD, receiving
no further payments until the class A notes are fully repaid."

Moreover, under the terms of the class B issuer/borrower loan
agreement, further issuances of class A notes, for the purpose of
refinancing, are permitted without consideration given to any
potential effect on the then current ratings on the outstanding
class B notes. Both the extension risk, which we view as highly
sensitive to the future performance of the borrowing group given
its deferability, and the ability to issue more senior debt without
consideration given to the class B3-Dfrd notes, may adversely
affect the issuer's ability to repay the class B3-Dfrd notes. As a
result, the uplift above the borrowing group's creditworthiness
reflected in our rating on the class B3-Dfrd notes is limited.

S&P said, "Our view of the borrowing group's standalone
creditworthiness has not changed. Therefore, we affirmed our 'B+
(sf)' rating on the class B3-Dfrd notes.

"We believe the transaction will qualify for the appointment of an
administrative receiver under the U.K. insolvency regime. When the
events of default allow security to be enforced before the
company's insolvency, an obligor event of default would allow the
then senior-most noteholders to gain substantial control over the
charged assets before an administrator's appointment, without
necessarily accelerating the secured debt. However, under certain
circumstances, particularly when the class A notes have been
repaid, removal of the class B FCF DSCR financial covenant would,
in our opinion, prevent the borrower security trustee, on the class
B3-Dfrd noteholders' behalf, from gaining control over the
borrowers' assets as their operating performance deteriorates and
would no longer trigger a borrower event of default under the class
B3 loan, before the operating company's insolvency or
restructuring. This may lead us to conclude that we are unable to
rate through an insolvency of the obligors, which is an eligibility
condition under our corporate securitizations criteria. Our
criteria state noteholders should be able to enforce their interest
on the assets of the business before the insolvency and/or
restructuring of the operating company. If the class B3-Dfrd
noteholders lose their ability to enforce by proxy the security
package we may revise our analysis, including considering that the
class B3-Dfrd notes' security package resembles covenant-light
corporate debt rather than secured structured debt."

Outlook

A change in S&P's assessment of the company's BRP would likely lead
to rating actions on the notes. It would require higher/lower DSCRs
for a weaker/stronger BRP to achieve the same anchors.

Upside scenario

S&P said, "We do not see any upside scenario at this stage in
relation to our assessment of the borrowing group's BRP, which is
constrained by the group's weak geographic and service
diversification, and its exposure to the insurance broker business.
Furthermore, our rating on the class A notes is capped at 'BBB-
(sf)' under our eligible investments criteria."

Downside scenario

S&P said, "We could lower our anchor or the resilience-adjusted
anchor for the class A notes if we were to revise the borrowing
group's BRP to fair from satisfactory. This could occur if the
group faced significant operational difficulties in its investment
plan or if trading conditions in its core roadside service market
were to deteriorate with significant customer losses and/or lower
revenue per customer. Under these scenarios, we would likely
observe margins falling below 25% with little prospect for rapid
improvement, or an increase of the group's profitability
volatility.

"We may also consider lowering our rating on the class A notes if
our minimum projected DSCR falls below 1.3:1 in our base-case and
in our downside scenarios. This could happen if the cash flow
available for debt service declines beyond our expected base-case
level.

"We could also lower the rating on the class B3-Dfrd notes if there
our assessment of the borrower's overall creditworthiness
deteriorates, which reflects its financial and operational strength
over the short to medium term. This could occur, for example, if
profitability materially declines or if the group loses significant
market share to its competitors, resulting in weaker free operating
cash flow and higher leverage; or if the group pursued aggressive
financial policy."


  Ratings list

  CLASS     RATING*     AMOUNT (MIL. GBP)

  RATING ASSIGNED  

  A10       BBB- (sf)     135.0
  (tap issuance)


  RATINGS AFFIRMED  

  A2        BBB- (sf)     500.0     

  A7§       BBB- (sf)     129.25

  A8        BBB- (sf)     325.0

  A9        BBB- (sf)     270.0

  A10       BBB- (sf)     250.0
  
  A11       BBB- (sf)     400.0

  B3-Dfrd   B+ (sf)       280.0

*S&P's ratings on the class A notes address the timely payment of
interest and the ultimate payment of principal on the legal final
maturity date. Our rating on the class B3-Dfrd notes addresses
ultimate payment of interest and ultimate payment of principal by
the legal final maturity date.

§The proceeds from the issuance of the class A10 tap notes along
with the existing balance on the mandatory prepayment account and
cash within the WBS group will be used to fully repay the
outstanding class A7 notes by June 30, 2023.


CALIFORNIA HOLDING III: S&P Assigns 'B' ICR, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term ratings to Calderys'
intermediate parent company, California Holding III Ltd., and to
the $550 million senior secured notes. The notes have a recovery
rating of '3'.

The stable outlook indicates that S&P expects Calderys to display
fairly resilient operating performance through 2023 and 2024 and to
maintain broadly stable volumes while increasing revenue slightly.
It is also expected to make progress on realizing synergies from
the merger and to sustain S&P Global Ratings-adjusted debt to
EBITDA of 4.5x-4.0x and positive free operating cash flow (FOCF).

Investment firm Platinum Equity created Calderys, a global
refractories solution provider, by merging two recent acquisitions.
The combined group has refinanced its capital structure to repay
its existing debt and reduce its shareholder funding. Platinum
contributed about EUR660 million of equity, pro forma the
transaction. The new debt structure consists of:

-- $550 million senior secured notes; and

-- A $200 million ABL facility.

Calderys is a leading global provider of consumable thermal
protection products (known as refractories), with sales of about
EUR1.6 billion a year. It is the third-largest refractories
manufacturer globally, behind RHI Magnesita and Vesuvius (both
unrated). The group's other competitors include regional
manufacturers and more-diversified groups that have refractories
activities. Calderys covers the key end-markets, such as iron and
steel, thermal, and foundry. It also offers additives and related
services that are complementary to refractories, such as design and
engineering, installation, and maintenance and repair. This adds
vertical integration to Calderys' operations and supports strong
customer retention.

S&P said, "We consider the combined group to have good business
complementarity and geographical diversification. HWI was focused
on the U.S. market and Imerys' high-temperature solutions business
mainly operated in Europe and Asia-Pacific. Calderys has over 50
manufacturing facilities, which allows the company to be close to
its customers. Given the complex formulation requirements and
difficulty of transporting products, especially monolithics, we
view Calderys' good geographical footprint and ability to focus on
local markets as positive.

"Calderys' operating margins are below those of its peers. Its S&P
Global Ratings-adjusted EBITDA margin of below 12% constrains our
view of its business risk profile. We understand that cost
structures were suboptimal under the previous ownership and include
the costs of implementing synergies and operational improvements in
our EBITDA calculations. The company has a plan to use synergies to
improve its revenue and profitability. This includes improving its
pricing strategy, reducing fixed costs, exploiting cross-selling
opportunities, improving sourcing, and capital expenditure (capex)
initiatives. We understand that there is limited overlap between
the two entities that merged to form Calderys. Nevertheless, we
acknowledge some execution risk related to the integration.
Calderys has a limited track record of operating as a stand-alone
entity.

"Most of Calderys' end-markets are cyclical. Refractories are
consumable products that have a short useful life, generally less
than a year. To some extent, this ensures that they provide a
recurring revenue base. However, Calderys mainly serves the iron
and steel, thermal, and foundry industries--its products are mainly
used in construction, automotive, and industrial end-markets, which
are all cyclical. As we saw in 2019 and 2020, Calderys' sales are
likely to fall in a downturn because they are linked to volumes in
the iron and steel, thermal, and foundry industries.

"We forecast that FOCF will exceed EUR40 million a year in
2023-2024. Our view is supported by the group's limited capex
needs, which are less than 3%, even including the cost of the
synergy plan. Calderys' business plan includes some growth and
synergy capex to support a minor expansion in capacity, mainly in
Europe and India. We do not anticipate that it will see material
working capital movements and we understand that the business
formerly owned by Imerys has leeway to optimize its working capital
position. Compared with our preliminary rating analysis, our
revised forecast FOCF has slightly reduced due to the
higher-than-expected interest rates on the senior secured notes.

"Adjusted leverage is expected to gradually reduce from the
4.0x-4.5x forecast in 2023-2024 as EBITDA improves and synergies
are realized. We expect modest growth in revenue, mainly supported
by pricing initiatives and some improvement in volumes. In 2022,
the company completed a new facility in Alabama for its steel
customers, which should boost revenue going forward. We also
forecast that EBITDA will cover interest by more than 3.0x."

Future rating upside would depend on the financial sponsor
committing to maintaining leverage below 5.0x, and Calderys
developing a record of resilient operating performance as a
stand-alone entity. S&P does not deduct cash from debt when
calculating our adjusted leverage because of Calderys'
private-equity ownership, which suggests that cash could be used,
in part, to fund bolt-on mergers and acquisitions (M&A) or
shareholder remuneration.

The ratings are in line with the preliminary ratings S&P assigned
on May 5, 2023.

The stable outlook indicates that S&P expects Calderys to display
fairly resilient operating performance into 2023-2024, with broadly
stable volumes and revenue, while making progress on its synergy
plan and maintaining debt to EBITDA at about 4.5x-4.0x and positive
FOCF.

S&P could lower the ratings if:

-- The group experienced severe margin pressure or operational
issues while combining the two businesses, leading to negative
FOCF;

-- Adjusted debt to EBITDA remained above 6.0x over a prolonged
period;

-- Liquidity came under pressure; or

-- Calderys and its sponsor chose to follow a more-aggressive
financial strategy, accepting higher leverage, pursuing debt-funded
M&A, or increasing shareholder returns.

S&P could raise the ratings if the group develops a track record of
resilient operating performance and EBITDA growth as a stand-alone
entity. In addition, rating upside would depend on Calderys'
management and financial sponsor demonstrating their commitment to
maintaining stronger leverage metrics. Under this scenario, S&P
would expect Calderys to consistently maintain:

-- Adjusted debt to EBITDA below 5x;

-- Funds from operations (FFO) to debt above 12%; and

-- Positive FOCF.

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

S&P said, "Governance, in particular governance structure, is a
moderately negative consideration in our credit rating analysis of
Calderys, as for most rated entities owned by private-equity
sponsors. We consider the company's highly leveraged financial risk
profile points to corporate decision-making that prioritizes the
interests of the controlling owners. This also reflects generally
finite holding periods and a focus on maximizing shareholder
returns.

"Environmental and social factors have an overall neutral influence
on our credit rating analysis. Although the group provides products
and solutions for the iron and steel industry, it does not have the
same energy needs as iron and steel manufacturers. Energy needs are
about 3% of sales. In fact, Calderys' products aim to improve the
performance and efficiency of furnaces and high temperature
processes."


DAWSONS MUSIC: Vista Musical Acquires Brands Following Collapse
---------------------------------------------------------------
Conal Cunningham at St Helens Star reports that an iconic music
business will be relaunched following its collapse under
administration.

Formed in Warrington in 1898, Dawsons Music became one of the most
well-known brands within the music industry, selling a wide variety
of instruments, audio equipment, and accessories.

Due to challenging high street trends and online competition,
Dawsons entered into administration in 2020 and moved into a new
head office in Haydock after a new buyer was found, with the
company rebranding as Dawson Music & Sound Ltd., St Helens Star
recounts.

However, with further challenges facing the business during the
pandemic, Dawsons again entered into administration a year later,
St Helens Star discloses.  This led to the closure of all of its UK
stores and the company officially ceased trading in December 2022,
St Helens Star notes.

It has now been announced that the global Vista Musical Instruments
company has acquired the Dawsons brand to move it forward into a
new era, St Helens Star relates.

Vista Musical Instruments -- which is owned by parent company
Caldecott Music Group which oversees the operation of the NME --
aims to inject new life and innovation into the Dawsons brand,
while preserving the legacy and heritage that enabled it to stand
for more than a century, St Helens Star states.

With a new website soon relaunching, it is hoped that the
acquisition will see the revival of physical Dawons stores back on
the high street, complete with a range of musical instruments and
equipment for the next generation of musicians and music fans,
according to St Helens Star.


FLAMINGO GROUP: Moody's Cuts CFR to Caa1 & Alters Outlook to Neg.
-----------------------------------------------------------------
Moody's Investors Service has downgraded the ratings of Flamingo
Group International Limited, including its corporate family rating
to Caa1 from B3; its probability of default rating to Caa1-PD from
B3-PD, and its backed senior secured bank credit facility rating to
Caa1 from B3. Concurrently, Moody's has also changed the company's
outlook to negative from ratings under review.

The following factors drove these rating actions, which conclude
the review initiated on February 21, 2023:

-- Weak liquidity, with its revolving credit facility (RCF)
currently drawn by EUR18 million maturing in February 2024 and
Moody's expectations of negative free cash flow (FCF) generation
over the next 18 months

-- Soft operating performance over the last 12 months to March
2023, driven by a challenging trading environment including
unfavourable sales mix changes, loss of significant contracts with
retailers and weather-related reductions in production output

-- Increasing refinancing risk on the current capital structure,
which comprises the RCF (maturing in February 2024) and the term
loan B maturing in February 2025

RATINGS RATIONALE

The downgrade of Flamingo's CFR to Caa1 from B3 reflects the
company's approaching debt maturities, deteriorating operating
performance and weak liquidity. Moody's views the GBP24 million of
cash at the end of March 2023 (proforma for a EUR12 million
repayment on the RCF) which comprise the company's total sources of
liquidity as insufficient to meet the company's liquidity needs
after Q1 2024, when the RCF matures and the semi-annual interest
payment takes place. The rating agency also expects that free cash
flow (FCF) will be materially negative in 2023 driven by lower
EBITDA levels and higher interest costs in 2023 due to the increase
in reference rates, putting further pressure on the company's
already weak liquidity.

Governance considerations were an important driver of the rating
actions, as the relatively late timing in addressing liquidity and
maturity risk has weakened the credit quality of Flamingo.

Flamingo's revenue and EBITDA generation have also continued to
deteriorate during the first three months of 2023 following an
already challenging financial year 2022. Revenue and
Company-reported EBITDA have respectively decreased by 12% and 31%
in Q1 2023 relative to the same period in the previous year, driven
by the loss of significant contracts in the UK and Continental
Europe, decreased demand in the more profitable Home Delivery
channel and weather-related events which resulted in reduced
production output. Although there were positive developments in the
month of March within the Produce and UK Flowers segments, Moody's
considers that there are significant risks to Flamingo's operating
performance given the discretionary nature of most of its products
and the current pressures on disposable income in its largest
markets. As a result, Flamingo's liquidity profile could weaken
further and its Moody's-adjusted Debt/EBITDA at year-end 2023 could
increase materially beyond the current level of 6.3x as of the LTM
period ending in March 2023.

Moody's considers that the combination of weak ongoing operating
performance and cash flow generation with approaching material debt
maturities in 2024 and 2025 have resulted in increasing material
levels of refinancing risk.

Flamingo's product concentration (flowers generate over 65% of
revenue), its vulnerability to weather and crop disease risk, and
concentrated third-party supplier base and customer base remain key
constraints on its credit quality. The fact that a significant
portion of the company's production facilities are located in
Ethiopia (Government of Ethiopia, Caa2 negative) also exposes the
company to a risk of supply chain disruption, although this is
mitigated by the location of Flamingo farms within Ethiopia and the
signing of the Tigray truce agreement in November 2022.

Flamingo's Caa1 CFR also benefits from the company's strong market
position within certain segments of the business, albeit in narrow
product categories, supported by the company's cost advantage in
sweetheart roses production, and a degree of vertical integration
that combines Flamingo's own production with third-party sourcing
enabling it to meet fluctuations in demand.

ESG CONSIDERATIONS

Additional governance factors that Moody's considers in Flamingo's
credit profile are the quality of the financial information
provided to lenders, its concentrated ownership and its board
structure. Weak internal controls are also an important governance
consideration, although these have been strengthened following an
accounting misstatements incident earlier this year.

Key environmental risks for Flamingo include its exposure to
physical climate risk due to its concentration of sourcing from the
Government of Kenya (Kenya, B3 ratings under review) and Ethiopia
and risks related to water management, waste and pollution. The
company also relies on natural capital in relation to key
production inputs. At the same time, we also note that sustainable
production is high on the company's agenda as illustrated by
Flamingo's usage of biological pest control and water efficiency
initiatives in Kenya.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects Flamingo's approaching debt
maturities, weakened liquidity profile, as well as the challenging
operating environment which could have an impact on the company's
ability to refinance its RCF (February 2024) and EUR280 million
backed senior secured term loan B (February 2025) maturities.

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

Given the negative outlook an upgrade is unlikely at this point.
Moody's could upgrade the ratings if the company (i) successfully
refinances its upcoming maturities; and (ii) maintains an adequate
liquidity profile; and (iii) operating performance improves such
that EBITDA generation approaches 2022 levels with sustainably
improved profitability; and (iv) achieves positive free cash flow
generation; and (v) EBITA/Interest coverage is sustainably above
1.0x.

Conversely, the ratings could be downgraded if (i) revenue or
profits continue to decline; or (ii) free cash flow remains
materially negative; or (iii) the company is not likely to be able
to refinance its term loan and revolver facilities, increasing the
likelihood of debt restructuring or default.

LIST OF AFFECTED RATINGS

Downgrades, previously Placed on Review for Downgrade:

Issuer: Flamingo Group International Limited

Probability of Default Rating, Downgraded to Caa1-PD from B3-PD

LT Corporate Family Rating, Downgraded to Caa1 from B3

BACKED Senior Secured Bank Credit Facility, Downgraded to Caa1
from B3

Outlook Action:

Issuer: Flamingo Group International Limited

Outlook, Changed To Negative From Ratings Under Review

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Consumer
Packaged Goods published in June 2022.

COMPANY PROFILE

Flamingo Group International Limited is a business combination
created in February 2018 between Flamingo Horticulture Ltd
(Flamingo UK), a leading supplier of cut flowers and premium
vegetables to the UK premium and value retailers, and Afriflora,
the world leader in sweetheart roses (according to third-party due
diligence) supplying to major European retailers such as Lidl, Aldi
and Edeka. The company runs farming operations primarily in Kenya
and Ethiopia. In 2021 the combined entity generated revenues of
GBP699 million and reported EBITDA of GBP72 million. Flamingo is
owned by private equity funds managed and advised by Sun Capital
Partners, Inc. and its affiliates.


OPENMONEY: GMCC Takes in Firm Following CVA Deal
------------------------------------------------
BusinessCloud reports that OpenMoney has found a new home in the
Greater Manchester Chamber of Commerce following its rescue deal.

The stricken FinTech was taken over by turnaround specialists Will
Mallard and Patrick Leahy for a nominal sum then put into Company
Voluntary Arrangement, making a reported 50 staff redundant earlier
this month, BusinessCloud relates.

OpenMoney ran into financial difficulties after co-founder and lead
investor, Duncan Cameron, decided to stop putting any more money
into the loss-making business at the end of March, BusinessCloud
recounts.

According to BusinessCloud, accounts filed at Companies House show
the FinTech lost GBP9.3 million before taxation in 2021 against
revenues of GBP593,000, compared to GBP7.6 million and GBP582,000
respectively in 2020.

The new owners have decided to focus their attention on the two
subsidiary businesses -- OpenMoney Adviser Services, which offers
digital financial advice, and WorkLife by OpenMoney, an employee
benefits platform. Both will relocate from the ABC Building in Quay
Street to Elliot House on Deansgate in the centre of Manchester,
BusinessCloud discloses.

GMCC says the partnership will help them further support and
collaborate with local businesses and the Greater Manchester
community, BusinessCloud notes.

With over 4,200 members, GMCC provides businesses in the Greater
Manchester area with a platform to connect with other businesses,
communicate their message and create opportunities for a skilled
workforce.


SCIL IV LLC: Moody's Affirms B1 CFR & Rates New EUR300MM Notes B1
-----------------------------------------------------------------
Moody's Investors Service affirmed the B1 long term corporate
family rating and B1-PD probability of default rating of SCIL IV
LLC and assigned a B1 to SCIL's proposed EUR300 million backed
senior secured notes. The outlook for SCIL remains stable.

SCIL will use proceeds from the new borrowings along with EUR184
million of cash on hand to fund a EUR474 million dividend to
shareholders and pay related fees and expenses.

RATINGS RATIONALE

The debt funded shareholder dividend is credit negative, but credit
metrics pro forma for the transaction remain within Moody's
expectations for SCIL's B1 rating, and the dividend is in line with
Moody's expectations for its financial policy. SCIL has
demonstrated its ability to expand its GVA/ton (gross value add,
akin to gross margin) during the inflationary environment of 2021
and 2022 and generate positive free cash flow. Pro forma for the
dividend, Moody's estimates SCIL's debt-to-EBITDA to be around
2.75x, with EBITDA/interest coverage around 5x. These metrics
incorporate Moody's standard adjustments. The rating agency expects
SCIL's leverage could increase during the second half of 2023 as
Moody's expect end market demand to remain muted and for further
expansion of the company's GVA/ton to be difficult.

SCIL IV LLC 's (SCIL) leading position in unsaturated polyester
resins (UPRs) in North America and Western Europe and Moody's
expectations for good pricing power to continue following a period
of consolidation and capacity rationalization contribute to an
EBITDA margin in the high-teens to low-twenties in percentage
terms, which supports the B1 long term corporate family rating.
SCIL's credit quality also benefits from its limited investment
needs, resulting in capital spending/sales typically around 2%-3%
and modest Moody's-adjusted gross leverage. However, the high
cyclicality of the main end-user markets, namely
infrastructure/construction and transportation/automotive, and its
exposure to volatile raw material prices derived from oil and other
petroleum feedstock, constrain the rating. Furthermore, SCIL's
private equity ownership structure which allows Black Diamond
Capital Management to drive decision making, which creates the
potential for event risk and decisions that favor shareholders over
creditors such as the proposed dividend and historical dividend
payments.

LIQUIDITY PROFILE

SCIL's liquidity is good. Pro forma for the dividend, Moody's
expects the company to have over EUR120 million of cash on hand and
access to an undrawn EUR105 million revolving credit facility
(upsized to EUR105 million from EUR85 million as part of the
proposed transaction) and $100 million asset based lending
facility. In combination with forecast funds from operations, these
sources are expected to be sufficient to cover capital spending,
working capital movements and general cash needs.

STRUCTURAL CONSIDERATIONS

Moody's aligned the B1 instrument ratings of the newly issued
backed senior secured notes and legacy guaranteed senior secured
notes with the B1 CFR. All of the notes rank pari passu with all
present and future senior secured debt except for the $100 million
asset-based lending facility with inventories and receivables as
asset pledges and an EUR105 million super senior revolving credit
facility (SSRCF). The SSRCF is secured by first-ranking security
granted on an equal and ratable first-priority basis over the
collateral. In the event of an enforcement of the collateral, the
holders of the notes will receive proceeds from the collateral only
after the lenders under the SSRCF have been repaid in full pursuant
to the Intercreditor Agreement, but the size of the SSRCF is not
sufficient to warrant downward notching of the notes. The proposed
senior secured notes will be guaranteed by entities representing
roughly 84% of adjusted EBITDA for the last 12 months ended March
2023.

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

Factors that could lead to an upgrade of SCIL's ratings include:
(i) a track record of more conservative financial policies,
including a public commitment to achieve and maintain a specific
and lower target leverage, (ii) increased product and end-market
diversification which leads to improved revenue and EBITDA
visibility and stability, (iii) Moody's-adjusted debt/EBITDA below
3x on a sustained basis; (iv) FCF/Debt consistently in the low
double digits in percentage terms.

Factors that could lead to a downgrade of SCIL's ratings include:
(i) deterioration in end markets or a substantial decline in
GVA/ton, translating into significant operational and financial
underperformance; (ii) adjusted gross debt/EBITDA exceeding 4.5x on
a sustained basis; (iii) FCF/debt in the mid-single digits in
percentage terms (iv) the enactment of more aggressive financial
policies which would favor shareholder returns over creditors.

LIST OF AFFECTED RATINGS

Issuer: SCIL IV LLC

Assignments:

BACKED Senior Secured Regular Bond/Debenture, Assigned B1

Affirmations:

LT Corporate Family Rating, Affirmed B1

Probability of Default Rating, Affirmed B1-PD

Senior Secured Regular Bond/Debenture, Affirmed B1

Outlook Actions:

Outlook, Remains Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Chemicals
published in June 2022.

COMPANY PROFILE

SCIL IV LLC is a large global supplier of composite resins, with
competitive market shares in UPRs in both the US and Europe. UPRs
are a chemical intermediate used as a finishing protective covering
and coating in the building and construction, transportation,
marine and automotive industries. The company generated revenue
around EUR3 billion in 2022. SCIL is 100% controlled by funds owned
by private equity firm Black Diamond Capital Management.


SCIL IV LLC: S&P Affirms BB- ICR on Proposed Debt-Financed Dividend
-------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' ratings on coatings
technology producer Polynt Group's parent SCIL IV LLC and its
outstanding EUR1.3 billion-equivalent senior secured notes, while
assigning a 'BB-' rating to the proposed EUR300 million senior
secured notes. The recovery rating remains at '3', reflecting its
expectation of about 50% recovery of the debt in the event of a
default.

The stable outlook reflects S&P's view that Polynt will keep
profitability at current top-cycle levels, thus keeping adjusted
debt to EBITDA below 4.5x, and continued positive free operating
cash flow (FOCF) over 2023-2024.

S&P said, "We view the dividend distribution as aggressive from a
financial policy standpoint, since the company would use a large
part of the rating headroom built over 2021-2022.Polynt is planning
to issue EUR300 million of senior secured notes to fund a dividend
distribution to its shareholders of about EUR474 million, with the
balance funded through cash on balance sheet. As a result of the
transaction, our adjusted debt-to-EBITDA metric would worsen to
2.8x-3.0x in 2023-2024 from 2.3x in 2022. Although adjusted
post-transaction leverage would remain well below our downside
trigger of 4.5x, credit metrics could quickly deteriorate if Polynt
is unable to preserve current profitability, given that it is
operating at top-of-the-cycle market conditions. In 2022, Polynt
paid a dividend of about EUR270.8 million funded with internally
generated cash. As such, we believe headroom for further
shareholder remuneration has been exhausted."

Despite high profitability, a turn in the cycle could weaken credit
metrics. Polynt's profitability reached a record high in 2022, with
S&P Global Ratings-adjusted EBITDA at about EUR618 million, largely
reflecting the company's good ability to pass raw material cost
inflation and resilient demand. This compares with adjusted EBITDA
of EUR420 million in 2021, and EUR232 million in 2020. In the first
three months of 2023, Polynt's profitability metrics remained very
solid and in line with that in 2022, notwithstanding lower volumes.
S&P notes that Polynt does not have a track record of keeping such
high profitability under less favorable market conditions, and
lower profitability would translate into much weaker credit
metrics, given the much higher amount of debt under new capital
structure. For example, if EBITDA were to drop to the 2021 level,
all things being equal, adjusted debt to EBITDA would weaken to
4.1x, not far from the downside trigger of 4.5x.

S&P said, "We project that Polynt will maintain an adequate
liquidity buffer following the transaction. As part of the
transaction, Polynt is planning to upsize its super senior RCF from
EUR85 million to EUR105 million, which will provide a further
buffer to finance bolt-on acquisitions or seasonal working capital
needs. This, combined with EUR125 million of cash on the balance
sheet at transaction closing, provides the company with good
operating liquidity, which will help it navigate potential
challenges in 2023. We believe Polynt could face a recessionary and
inflationary scenario, which we expect will affect demand,
especially during the first half of 2023, only recovering from the
second half of the year."

Market conditions should continue to support operating performance
over 2023 and 2024, with resilient profitability and solid cash
flow generation. S&P said, "We project that lower selling prices,
combined with volumes recovering from the second part of the year,
will result in rather stable sales for 2023 before moderately
declining in 2024 due to further price normalization. This would
likely lead to revenue of about EUR2.9 billion-EUR2.8 billion in
2023 and 2024. At the same time, we expect Polynt will continue to
focus on margin expansion through economies of scale and supportive
demand in Europe in 2024, leading to S&P Global Ratings-adjusted
EBITDA remaining at 20%-21% over the next 12-24 months. In our
view, the much higher profitability margin in 2022-2023, compared
with 13% in 2019-2020, largely reflects resilient demand in a
market that is highly concentrated. Still, we do not have a track
record of the company being able to preserve such high
profitability if market conditions were to significantly
deteriorate. Because profitability remains resilient, we also
expect FOCF to stay comfortably above EUR300 million annually in
2023-2024, also supported by low capital expenditure (capex)
requirements of less than 2.5% of sales and limited working capital
cash absorption."

S&P said, "We continue to factor Polynt's solid market position and
good vertical integration as positive considerations into our
business risk analysis. The group holds No. 1 or No. 2 market
position across its portfolio and regions, being the largest player
in the relatively niche composites and coating resins market, with
a share of about 35%. The company generates most of its sales in
developed countries, with about 42% of revenue from Europe, 53%
from North America, and about 5% in Asia. This geographic exposure
helps mitigate volatility of operating results during difficult
economic times, as demonstrated by the company's resilient
performance in 2022. Moreover, the company has a very flexible cost
base, with about 70% of total costs related to raw materials,
styrene and glycols accounting for the majority. We note that
Polynt has shown increasing unit margins in recent years and the
trend has continued in 2022, mostly due to its ability to pass on
raw material costs. Moreover, we note that earnings volatility has
reduced, thanks to the company's vertically integrated business
model and efficient passthrough of raw material costs. We believe
Polynt is one of the most integrated players in its market niche.
Still, we do not have a track record of the company being able to
preserve such high profitability in less favorable market
conditions."

Limited product offering and exposure to some cyclical end markets
continue to constrain the rating. The company generates 90%-95% of
sales from specialty chemical products, with many customized
formulations for composite resins and specialties. S&P said,
"However, we believe the degree of product and services
differentiation remains relatively low, due to the core technology
being available to other players in the market. Partly
counterbalancing this assessment, we believe that, compared with
its direct composites competitors, Polynt has wider product
differentiation. Moreover, most of the company's products are used
in the construction and transportation industry, which we view as
cyclical markets mostly linked to GDP growth, accounting for about
40% and 12% of revenue, respectively. The remaining exposure is to
housing appliances (10%), electricity (8%), marine and wind energy
(11%), and food and beverage, food packaging, aircraft interior
materials, and storage tanks (19%). Although we believe this
end-market diversification is somewhat better than that of other
players, we note that Polynt's sales remain mostly concentrated in
highly cyclical sectors."

S&P said, "The stable outlook reflects our view that, while
Polynt's top line will decrease somewhat in 2023-2024, reflecting
reduced volume and prices ahead of softening operating conditions,
the company should continue posting solid profitability metrics
given its strong market position. We expect adjusted debt to EBITDA
will remain comfortably below 4.5x over the coming two years and
positive FOCF will continue."

S&P could lower the rating if:

-- Material deterioration of market conditions translate into
materially weaker profitability, resulting in S&P Global
Ratings-adjusted debt to EBITDA above 4.5x or FOCF to debt
declining below 5% on a prolonged basis, with limited possibility
of a swift recovery.

-- The company pursues further dividend distributions or a large
debt-funded acquisitions, leading to a significant deterioration of
credit metrics and highlighting a more aggressive financial
policy.

S&P considers an upgrade unlikely in the next two years given the
aggressive stance on dividend distributions. However, it could take
a positive rating action if:

-- S&P Global Ratings-adjusted debt to EBITDA drops below 3.5x on
a sustainable basis, while FOCF remains solid; and

-- The holding company SCIL IV shows a track record and strong
commitment to maintaining such low leverage.

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


STREET FOOTBALL CLUB : Tackles Administration Rumors at Meetings
----------------------------------------------------------------
Lewis Wiseman at Somerset County Gazette reports that have been
circulating recently about the demise of Street Football Club
writes Merv Colenutt, but following a meeting at the club on June
27, Jo Stimpson laid down the facts in a long statement of where
the club stands at present and also what the future holds, the main
points that were taken from the meeting were as follows.

According to Somerset County Gazette, Street FC are certainly
having to face up to many difficult decisions in the season ahead
and around 80 members and supporters were in attendance as the club
faces up to the difficult current financial climate.

Street Football Club, like so many others are having to deal with
more negatives than positives, but the club obviously felt it
important to squash those rumours that the club was going into
administration, Somerset County Gazette notes.

Increased energy prices, the cost of living and only 7 home
fixtures between January and April, curtailed any revenue that was
being brought into the club and that only compounded the financial
problems that the club were facing up to now, Somerset County
Gazette discloses.

Increase in travel, plumbing problems that saw events cancelled and
an increase in staff wages and less in the way of volunteering,
also added extra revenue to the accounts, according to Somerset
County Gazette.

At present, the outgoings are outweighing the income by a wide
margin and the majority of the previous committee have now left
their posts, Somerset County Gazette states.

The big decision and crisis point came during May and June as
meetings were laid out to discuss the future of the club where
three options were discussed in depth, Somerset County Gazette
recounts.

The goal now is for Street Football Club and Bar 1880 to be
individually and financially sustainable, providing playing
opportunities within the men's semi-professional game, community
and youth level, while creating a community hub for social and
recreational activity, according to Somerset County Gazette.


THAMES WATER: Temporary Nationalization Among Options Amid Losses
-----------------------------------------------------------------
Gill Plimmer, Jim Pickard and Michael O'Dwyer at The Financial
Times report that ministers have discussed a temporary
nationalisation of Thames Water as investors and the government
braced for the potential collapse of the debt-laden utility.

According to the FT, the contingency planning came a day after the
abrupt exit of Thames Water chief executive Sarah Bentley, who was
battling to turn round a company with a legacy of under-investment
and GBP14 billion of debt just as UK interest rates hit their
highest level since 2008.

Shareholders 12 months ago promised to invest GBP500 million in the
company -- the first equity injection since privatisation -- and
pledged a further GBP1 billion subject to conditions, the FT
relates.  But the GBP500 million was only paid this March and the
additional GBP1 billion has never been paid, the FT notes.

Cathryn Ross, co-interim chief executive, said earlier this month
that the company had made a "very large loss and that is not ideal
in terms of raising capital", the FT recounts.

"We may need to go back to them [our shareholders] for more
equity," said Ms. Ross, a former chief executive at regulator
Ofwat, in previously unreported comments.

Amid pessimism about the group's prospects, the price of a 2026
bond sold by Thames Water's parent company, Kemble Water Holdings,
plunged by as much as 35 pence to 50p, into distressed territory,
the FT discloses.

Thames Water, as cited by the FT, said on June 28 that it was
working "constructively" with its shareholders on injecting more
equity into the company to support its "turnaround and investment
plans".

Two people close to the situation said the company was unlikely to
fall into insolvency immediately, the FT notes.

More than half the group's debt is linked to inflation, which the
company has justified by noting that customer bills are also linked
to it, the FT states.  However, the debt is linked to the RPI
measure, which is at a historically wide premium to CPI inflation,
which is used in pricing bills, the FT notes.

Officials said one option is placing Thames Water into a special
administration regime, the FT relates.  The SAR process, which was
introduced in 2011 and would in effect mean public ownership, was
first used in 2021 for the rescue of energy supplier Bulb, the FT
recounts.



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

Troubled Company Reporter-Europe is a daily newsletter co-
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Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.

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

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