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

                          E U R O P E

          Wednesday, July 12, 2023, Vol. 24, No. 139

                           Headlines



F R A N C E

NORIA 2023: Moody's Assigns (P)B3 Rating to Class F Notes


G E R M A N Y

DEMIRE DEUTSCHE: Moody's Cuts CFR to Caa1 to Caa2, Outlook Negative
SPRINGER NATURE: Moody's Hikes CFR to Ba3, Outlook Remains Stable
TELE COLUMBUS: Moody's Lowers CFR & Senior Secured Debt to Caa1


I R E L A N D

CARLYLE GLOBAL 2016-1: Moody's Affirms Ba2 Rating on Cl. D-R Notes
CLONTARF PARK: Moody's Affirms Ba2 Rating on EUR25MM D Notes
INVESCO EURO X: Fitch Gives B-sf Rating on Class F Debt
MADISON PARK XXIX: Fitch Assigns B-sf Rating to Class F Debt


L U X E M B O U R G

GARFUNKELUX HOLDCO 2: Fitch Alters Outlook o 'B+' IDR to Stable


S P A I N

LUNA III SARL: Moody's Affirms B1 CFR & Alters Outlook to Positive
MBS BANCAJA 4: Moody's Ups Rating on EUR18.5MM Class D Notes to B2


S W E D E N

INTRUM AB: Fitch Affirms 'BB' LongTerm IDR, Outlook Negative


S W I T Z E R L A N D

SUNSHINE LUXEMBOURG: Moody's Ups CFR to B2, Outlook Remains Stable


U N I T E D   K I N G D O M

GARNERS FOOD: Insolvency Proceedings Being Following Liquidation
HENRY CONSTRUCTION: Collapse Affects Contractors' Bond Capacity
J TOMLINSON: Sub-contractors Express Frustration After Collapse
MEATLESS FARM: Owes More Than GBP2MM to Creditors, Report Shows
PEPCO GROUP: Fitch Assigns BB+ Rating on EUR375MM Notes Due 2028

QA WELD: Express Engineering Buys Assets Out of Administration
[*] UK: "Zombie" Companies Wiped Out by Inflation Crisis

                           - - - - -


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F R A N C E
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NORIA 2023: Moody's Assigns (P)B3 Rating to Class F Notes
---------------------------------------------------------
Moody's Investors Service has assigned the following provisional
ratings to Notes to be issued by Noria 2023 (the "Issuer"):

EUR[ ]M Class A Asset Backed Floating Rate Notes due October 2040,
Assigned (P)Aaa (sf)

EUR[ ]M Class B Asset Backed Floating Rate Notes due October 2040,
Assigned (P)Aa2 (sf)

EUR[ ]M Class C Asset Backed Floating Rate Notes due October 2040,
Assigned (P)A3 (sf)

EUR[ ]M Class D Asset Backed Floating Rate Notes due October 2040,
Assigned (P)Baa2 (sf)

EUR[ ]M Class E Asset Backed Floating Rate Notes due October 2040,
Assigned (P)Ba2 (sf)

EUR[ ]M Class F Asset Backed Floating Rate Notes due October 2040,
Assigned (P)B3 (sf)

Moody's has not assigned a rating to the Class G Asset Backed
Floating Rate Notes due October 2040 amounting to EUR[ ]M.

RATINGS RATIONALE

The transaction is a 14-month revolving cash securitisation of
consumer loan receivables extended by BNP Paribas Personal Finance
("BNPP PF")(Aa3/P-1/Aa3(cr)) to obligors located in France. The
borrowers use the loans for several purposes, such as property
improvement, equipment sales and other undefined or general
purposes. Some of the loans are granted as part of a debt
consolidation offer. The servicer is also BNP Paribas Personal
Finance ("BNPP PF").

The initial portfolio consists of personal loans, equipment sale
loans and debt consolidation loans originated by BNPP PF through
its branches and direct market activities as well as through point
of sales of third-party business with whom BNPP PF has commercial
arrangements to provide financing for equipment sale loans
(together the consumer loans). The balance of the portfolio (as of
July 5, 2023) corresponds to approximately EUR500 million, for a
total number of 67,390 loans. The tenor of the loans varies (from
less than 1 year up to 17 years) depending on the purposes of the
loan. The weighted-average seasoning is 18.7 months. The initial
share of debt consolidation loans is 19.12% of the outstanding loan
balance. All loans are standard French amortising loans.

According to Moody's the transaction benefits from credit strengths
such as the granularity of the portfolio, the financial strength of
the originator and the liquidity support available to the
structure. At closing, an amortising liquidity reserve amounting to
1.25% of the aggregate amount outstanding of the Classes A to F
Notes will be funded. The liquidity reserve will amortise to a
floor of 0.5% of the initial balance of Classes A to F Notes. In
addition to the amortising liquidity reserve, there will also be a
non-amortising Fund Reserve Account equal to 2.6% of the aggregate
amount outstanding Class A to G Notes at closing, which will be
part of the available revenue proceeds. However, Moody's notes that
the transaction features some credit weaknesses such as the limited
available excess spread to clear the principal deficiencies and the
high concentration to BNP Paribas Group given the number of roles
performed by those entities of that group such as seller, servicer,
issuer account bank, swap counterparty, cash manager and
custodian.

Moody's analysis focused, amongst other factors, on (i) an
evaluation of the underlying portfolio of loans; (ii) historical
performance information of the total book and past ABS
transactions; (iii) the credit enhancement provided by
subordination; (iv) the liquidity support available in the
transaction by way of the reserve fund as well as the principal to
pay interest mechanism, and the (v) overall legal and structural
integrity of the transaction.

MAIN MODEL ASSUMPTIONS

Moody's determined the portfolio lifetime expected defaults of
4.50%, expected recoveries of 30.00% and Aaa portfolio credit
enhancement ("PCE") of 14.50%. 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
Moody's ABSCORE cash flow model to rate Auto and Consumer ABS.

Portfolio expected defaults of 4.5% are in line with the French
Consumer ABS average and are based on Moody's assessment of the
lifetime expectation for the pool taking into account: (i) the
historical performance of the book of the originator, (ii)
macroeconomic trends, (iii) other similar transactions used as a
benchmark, and (iv) other qualitative considerations.

Portfolio expected recoveries of 30.00% are in line with the French
Consumer ABS average and are based on Moody's assessment of the
lifetime expectation for the pool taking into account: (i)
historical performance of the book of the originator, (ii)
benchmark transactions, and (iii) other qualitative
considerations.

PCE of 14.50% is lower than the French Consumer ABS average and is
based on Moody's assessment of the pool taking into account: (i)
historical data variability, (ii) the unsecured nature of the
loans, (iii) the relative ranking to the originators peers in the
French and EMEA consumer ABS market, and (iv) macroeconomic
expectations. The PCE level of 14.50% results in an implied
coefficient of variation ("CoV") of approximately 41.9%.

METHODOLOGY

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 may cause an upgrade of the ratings include a
performance of the pool which is significantly better than
expected.

Factors that may cause a downgrade of the ratings include a
significant decline in the overall performance of the pool and a
significant deterioration of the credit profile of the originator.




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

DEMIRE DEUTSCHE: Moody's Cuts CFR to Caa1 to Caa2, Outlook Negative
-------------------------------------------------------------------
Moody's Investors Service has downgraded DEMIRE Deutsche
Mittelstand Real Estate AG's long term corporate family rating to
Caa1 from B3. At the same time the senior unsecured rating of its
EUR600 million note issuance maturing in October 2024 was
downgraded to Caa2 from Caa1. The outlook remains negative.

RATINGS RATIONALE

The downgrade to Caa1 reflects increased refinancing risk following
the withdrawal of the buyer of DEMIRE's LogPark logistics property
from the purchase agreement. The disposal of LogPark is a key
component of DEMIRE's effort to increase liquidity sufficiently to
address the roughly EUR500 million remaining senior unsecured bond
maturity in October 2024 and around EUR150 million secured debt
maturing during 2024. The downgrade also reflects a continued weak
business environment for real estate landlords in Germany that
makes disposals more difficult and getting new secured debt more
costly and difficult, combined with less time available to generate
sufficient liquidity to facilitate a bond repayment.

Moody's expected the disposal of LogPark to generate around EUR80
million of net liquidity next to addressing the refinancing of more
than EUR35 million of secured debt attached to the asset that
matures in Q3 2024. Moody's still expects LogPark to be a key and
marketable asset for disposal to meet refinancing requirements,
even if uncertainty of timing and proceeds has increased. Hence the
cancelled disposal adds to the execution risk for asset disposals
and asset encumbrance sufficient to address the 2024 senior
unsecured bond and loan maturities.

One of the complexities in refinancing the bond maturity are the
limitations in crystallising the asset values at Fair Value REIT AG
that has a lower LTV than DEMIRE on a standalone basis. Hence
reported consolidated financial metrics do not fully reflect the
financial position of DEMIRE on a standalone basis that is subject
to refinancing. As of March 2023, Moody's adjusted gross debt/total
assets was 56.2% on a consolidated basis, while separating DEMIRE
(excluding Fair Value REIT AG's asset and liabilities) would
increase this ratio to around 65% before giving equity value for
the stake in Fair Value REIT AG.

Moody's credit metrics expectations have weakened moderately given
slightly higher uncertainties about disposal proceeds and property
values and tightening availability of financing rising prices of
debt. Moody's estimates Moody's-adjusted consolidated debt/total
assets to be around 50-55% in 2024 on a consolidated basis. This
includes an assumption of up to 15% further fall in property
values.

The interest cover post repayment/refinancing of the bond is not
very predictable at this point. Moody's forward view looks at 2024
more than 2023, as fixed charge coverage pre refinancing of the
bond maturity is sufficient to cover interest expense. Both EBITDA
as well as interest rates payable depend strongly on disposal
success, as much as on interest rates on new debt that is required
for refinancing. Moody's expects interest cover to drop to 1.1-1.5x
from 2.5x as of March 2023 because lower debt amounts will cost
significantly more than the current 1.7% reported interest cost.

The notching of the senior unsecured notes below the CFR reflects
the anticipated change of the capital structure towards a largely
secured one. Recoveries on the secured debt that currently have
very moderate LTVs will be substantially higher than for the
unsecured debt that faces the risk of restructuring or a distressed
exchange.

RATIONALE FOR THE OUTLOOK

The negative outlook reflects increasing uncertainty around
property lending and less time remaining to refinance the bond.
Moody's expect further disposal activity as well as proceeds from
secured financing in the next six months to be key for DEMIRE's
refinancing efforts. The inability of a timely refinancing and a
potential debt restructuring or distressed exchange could result in
further negative rating pressure over the next months.

LIQUIDITY

Liquidity remains the key credit drivers for DEMIRE. The company
faces a significant debt maturity wall, as EUR668 million out of
EUR781 million outstanding debt is due in 2024. The company had
EUR73 million of cash available as of Q1 2023 (including cash at
Fair Value REIT AG level which Moody's considers not to be
available for bond refinancing). DEMIRE has since concluded the
disposal of the Ulm asset for an undisclosed amount, closed a
second discounted bond buy-back that reduced the maturity wall in
2024 by around EUR51 million, and continues to actively pursue
additional secured debt refinancing. The unexpected withdrawal of
the purchase agreement for the LogPark logistics property exerts a
critical liquidity pressure on the timely execution and refinancing
risk the company is facing to honor its debt maturities by October
2024. With no public announcement of key shareholders has been
made, no shareholder support is visible at this point.

Moody's perceives the refinancing risk of the secured debt
maturities on existing encumbered assets to be lower, even if some
assets may require asset management activities to facilitate a
refinancing or re-leveraging.

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

Factors that could lead to an upgrade:

A rating upgrade is less likely to occur given the negative
outlook, but it can occur if

-- DEMIRE succeeds in disposing material asset volumes with
moderate discounts and thereby secures repayment of the majority of
the 2024 senior unsecured bond maturity

-- The company succeeds in raising sufficient alternative debt
financing to enable a bond refinancing at a sustainable interest
cover

Factors that could lead to a downgrade:

-- Failure to raise material further proceeds to address the
refinancing of the upcoming debt maturity through disposal
proceeds, as well as through encumbering existing assets

-- A deterioration in the lending appetite for secondary German
real estate assets making both disposals and refinancing from
secured banks less likely

-- Weaker operational performance of the asset portfolio

-- Expected recovery rates in case of a default or distressed
exchange to be lower than anticipated

LIST OF AFFECTED RATINGS

Downgrades:

Issuer: DEMIRE Deutsche Mittelstand Real Estate AG

LT Corporate Family Rating, Downgraded to Caa1 from B3

Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2 from
Caa1

Outlook Action:

Issuer: DEMIRE Deutsche Mittelstand Real Estate AG

Outlook, Remains Negative

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

DEMIRE Deutsche Mittelstand Real Estate AG (DEMIRE) is a publicly
listed commercial real estate company with a focus on offices in
secondary locations across Germany. The company's portfolio has an
aggregate portfolio value of around EUR1.3 billion with an
annualised contracted rent of EUR84.1 million as of March 31,
2023.


SPRINGER NATURE: Moody's Hikes CFR to Ba3, Outlook Remains Stable
-----------------------------------------------------------------
Moody's Investors Service has upgraded to Ba3 from B1 the long-term
corporate family rating and to Ba3-PD from B1-PD the probability of
default rating of Springer Nature One GmbH ("Springer Nature" or
"the company"), a leading global research and educational
publisher. Concurrently, Moody's has upgraded to Ba3 from B1 the
ratings of the outstanding EUR1,542 million senior secured term
loan due August 2026, the outstanding $795 million secured term
loan due August 2026, the EUR233.5 million senior secured
multi-currency revolving credit facility (RCF) due February 2026
and the EUR16.5 million senior secured multi-currency RCF due
February 2024 of Springer Nature Deutschland GmbH. The outlook on
both entities remains stable.

"The rating upgrade reflects the strengthening of the company's key
credit metrics underpinned by a good and resilient operating and
financial performance, strong free cash flow generation, the
company's demonstrated capacity and willingness to reduce debt and
the smooth, successful and profitable transition towards Open
Access (OA)," says Víctor Garcia Capdevila, a Moody's Vice
President – Senior Analyst and lead analyst for Springer Nature.

"The company's Moody's-adjusted gross leverage decreased to 3.7x in
2022 from 4.5x in 2021. Moody's expects leverage to continue to
reduce over the next 12-18 months towards 3.0x driven by a
combination of debt repayments, moderate organic growth and small
bolt-on acquisitions", adds Mr. Garcia Capdevila.

RATINGS RATIONALE

In 2022, group-wide revenue grew by 7.1% to EUR1,822 million (2021:
EUR1,699 million) while company reported EBITDA increased by 5.2%
to EUR676 million (EUR642 million). The company benefited from
positive FX tailwinds in 2022 because of the appreciation of the
USD and the GBP against the EUR. At constant FX rates, revenue and
EBITDA would have increased by 4.5% to EUR1,775 million and -1.9%
to EUR630 million, respectively.

Springer Nature's continues to demonstrate its ability to manage
the transition successfully and profitably towards OA. Moody's
estimates that more than 40% of all articles published by Springer
Nature are now under OA, including both full OA and hybrid OA, the
highest share amongst the largest mixed-model publishers. EBITDA
margins have increased steadily in the research division to 44.2%
in 2022 from 41.2% in 2019.

In 2022, Springer Nature continued to demonstrate its capacity and
willingness to reduce debt. The company repaid an additional EUR300
million of its outstanding term loans in 2022 through internally
generated cash flow, bringing the total amount of debt repayments
over the last five years to around EUR700 million.

As a result, the company's Moody's-adjusted gross leverage reduced
to 3.7x in 2022 from 4.5x in 2021. While interest coverage,
measured as (EBITDA – CAPEX) / Interest Expense, increased to
2.5x from 2.0x.

In April 2022, Springer Nature sold the Dutch specialist content
for SME'S publishing business and, in June 2023, carved out the
education and training solutions for the mobility sector, both part
of the professional business segment. Moody's estimates these two
businesses combined, on a pro forma basis, contributed revenue and
EBITDA of around EUR100 million and EUR25 million, respectively, in
2022. The proceeds from the disposals of these businesses are
earmarked to reduce debt.

The rating agency's base case scenario assumes a further
strengthening of the company's key metrics over the next 12-18
months with Moody's-adjusted gross leverage reducing towards 3.0x
and interest cover increasing to 3.4x by 2025. Moody's assumes that
this improvement will be largely driven by debt repayments of
around EUR300 million in 2023, EUR200 million in 2024 million and
EUR200 million in 2025 rather than EBITDA growth. The rating agency
forecasts Moody's-adjusted EBITDA, at constant FX rates, excluding
the latest disposals in the professional business segment and
before M&A, to be around EUR645 million in 2023, EUR652 million in
2024 and EUR658 million in 2025.

Springer Nature Ba3 ratings reflect the company's track record of
solid operating and financial performance; good deleveraging
prospects; firm and defensible market positions in the publication
of research and educational content; leadership position in Open
Access (OA); and high revenue and earnings visibility, underpinned
by the must-have nature of its product offerings and supported by a
predictable subscription-based business model and high renewal
rates.

Springer Nature's credit quality also reflects the relatively high
Moody's-adjusted gross leverage of 3.7x in 2022; the risks
associated with the transition from the traditional subscription
based business model towards Open Access (OA), regulatory risks
that could accelerate the enforcement of OA publications without
the necessary levels of funding, high operating leverage, exposure
to emerging markets, which are more prone to volatility in academic
spending; foreign exchange and interest rate risks and smaller
scale than other global publishing peers.

Governance considerations are material to the rating action because
Springer Nature's financial policy is more conservative than in the
past. The company continues to demonstrate is strong willingness to
reduce debt levels with internally generated cash flow. Over the
last 5 years, the company repaid around EUR700 million of
outstanding debt. Furthermore, the company continues to demonstrate
a strong and resilient operational track record and continues to
manage successfully the transition towards OA. This has resulted in
a change in the company's Financial Strategy and Risk Management
score to 3 from 4, the Management Credibility and Track Record
score to 2 from 3, the governance issuer profile score (IPS) to G-3
from G-4 and the Credit Impact Score to CIS-3 from CIS-4.

LIQUIDITY

Springer Nature's liquidity is good. The company had EUR303 million
of cash on balance sheet as of the end of May 2023 and full access
to the EUR250 million committed RCFs. Furthermore, Moody's
estimates that the company will generate positive Free Cash Flow
(FCF) of around EUR190 million in 2023 and EUR210 million in 2024.
RCF utilisation is subject to a springing net debt/EBITDA covenant
tested when RCF drawings exceed 30% of total commitments.

The debt maturity profile is comfortable, with no large debt
maturities before August 2026 when the term loans mature.

STRUCTURAL CONSIDERATIONS

The Ba3 rating of the senior secured term loans and the senior
secured revolving credit facilities is in line with Springer
Nature's long-term corporate family rating (CFR), reflecting the
fact that there is a single first-lien class of debt in the
structure. The 50% family recovery rate is Moody's standard
assumption for capital structures with only bank debt and
covenant-lite packages. The Ba3-PD probability of default rating is
in line with the CFR.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectation that Springer
Nature will continue to grow organically while maintaining stable
profitability margins. The outlook also assumes that the company
will maintain Moody's-adjusted gross leverage within the boundaries
set for the Ba3 rating category of between 3.0x and 4.0x. It does
not factor in any large debt funded acquisitions and assumes an
adequate liquidity profile at all times.

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

Upward pressure on the ratings could develop over time if
Moody's-adjusted gross leverage declines sustainably below 3.0x and
the transition towards OA access continues to be managed
successfully and in a profitable manner and with no impact on the
company's operating and financial performance.

Downward pressure on the ratings could arise if earnings
deteriorate or incremental debt lead to a Moody's-adjusted gross
leverage sustainably above 4.0x or if FCF generation decreases
leading to a weakening of the company's liquidity profile.

Aggressive debt-funded inorganic growth and large shareholder
distributions could also put negative pressure on the ratings.

LIST OF AFFECTED RATINGS

Issuer: Springer Nature One GmbH

Upgrades:

LT Corporate Family Rating, Upgraded to Ba3 from B1

Probability of Default Rating, Upgraded to Ba3-PD from B1-PD

Outlook Actions:

Outlook, Remains Stable

Issuer: Springer Nature Deutschland GmbH

Upgrades:

Senior Secured Bank Credit Facility, Upgraded to Ba3 from B1

Outlook Actions:

Outlook, Remains Stable

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

Springer Nature is a leading global research and educational
publisher. It was formed in May 2015 as a result of the merger of
Springer Science+Business Media (owned by funds advised by BC
Partners) and the Macmillan Science and Education (MSE) business
held by Holtzbrinck Publishing Group (Holtzbrinck). The company is
53% owned by Holtzbrinck, a leading, well-established global media
business, and the remaining 47% is owned by funds advised by BC
Partners. In 2022, the company reported revenue and adjusted EBITDA
of EUR1.8 billion and EUR676 million, respectively.


TELE COLUMBUS: Moody's Lowers CFR & Senior Secured Debt to Caa1
---------------------------------------------------------------
Moody's Investors Service has downgraded to Caa1 from B3 the
long-term corporate family rating of Tele Columbus AG, as well as
its probability of default rating to Caa1-PD from B3-PD.
Concurrently, Moody's has downgraded to Caa1 from B3 the company's
senior secured debt instrument ratings. The outlook remains
negative.

"The downgrade reflects the increased refinancing risks as the
company approaches debt maturities and its very weak liquidity with
additional funding needed before year end 2023" says Agustin
Alberti, a Moody's Vice President–Senior Analyst and lead analyst
for Tele Columbus.

"The current capital structure looks increasingly unsustainable and
a significant equity contribution from the shareholder will be
needed to complete the refinancing plan successfully" adds Mr.
Alberti.

RATINGS RATIONALE

The downgrade of Tele Columbus' CFR to Caa1 from B3 reflects
heightened refinancing risks in view of the upcoming maturities on
the outstanding EUR462 million senior secured Term Loan A ("TLA")
due in October 2024 and its EUR650 million guaranteed senior
secured bond maturing in May 2025.

While Moody's understands that the company is working on a
refinancing plan with the aim to complete it in the coming months,
the current volatile capital market conditions and high interest
rates environment could make the refinancing more challenging. In
addition, the rating agency views current capital structure as
increasingly unsustainable and considers that a sizeable equity
contribution would be needed to reduce the current high debt levels
and facilitate the refinancing. In 2022, the company's
Moody's-adjusted gross debt/EBITDA increased to 7.5x compared to
6.0x in 2021, mainly because of the EBITDA decline related to
increased costs to improve IT, marketing, and central services
functions.

The downgrade also reflects the very weak liquidity profile, as the
company will need to get extra funding before year end 2023, due to
a combination of high interest expenses and high capex needs. The
rating agency forecasts a negative Moody's-adjusted free cash flow
(FCF) of around EUR180 million in 2023 and EUR220 million in 2024
(-EUR103 million in 2022). This is largely due to Moody's
assumption of a significant increase in interest expense and
capital spending of around EUR240 million and EUR310 million
(including lease repayments), respectively.

On the other hand, the company is upgrading its network, which
should drive higher market shares in broadband and B2B. As a
result, Moody's forecasts broadly stable revenues in 2023 and
modest growth in 2024, as the company would benefit from increased
broadband customers and associated revenues. In addition, the cost
base will improve in 2023, as some one-off costs incurred in 2022
will phase out, and therefore Moody's projects gross leverage to
improve, but to remain high at around 7.0x over the next 12-18
months.

However, Moody's acknowledges that these forecasts are subject to a
degree of uncertainty given that in recent years the growth of
Internet&Telephony revenues has not been able to compensate the
decline in TV revenues. The decline might accelerate in the coming
quarters because of the transition from bulk to individual
contracts by July 2024, owing to a telecoms law approved in May
2021 by the German government.

The Caa1 CFR reflects the company's solid market position,
especially in its core eastern German regions; its long-standing
customer relationships with housing associations; the improvement
of the business profile coming from its ambitious capex plan to
upgrade its broadband network; and the support of its shareholder,
Kublai GmbH (Kublai), in executing the strategy, reflected in the
sizeable capital increase in 2021 and further committed equity
injection.

The rating also reflects its relatively small scale; persistent
competition from other telecom and cable operators, especially for
housing association contracts; a declining legacy cable TV
business, exacerbated by recent regulatory changes and increasing
customer viewership of streaming TV platforms; its high
Moody's-adjusted gross leverage of around 7.0x over the next 12-18
months; and its high capital spending requirements, which will lead
to negative free cash flow (FCF) and constrain leverage reduction.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Governance risk considerations are material to the rating action
owing to Tele Columbus' weak liquidity profile, the need to secure
additional funds before year end 2023, and the tolerance for high
leverage which make the company's capital structure unsustainable
in the current interest rate environment and in the absence of a
material equity injection. These factors have resulted in the
company's Financial Strategy and Risk Management score moving to 5
from 4, the governance issuer profile score (IPS) to G-5 from G-4
and the Credit Impact Score moving to CIS-5 from CIS-4.

LIQUIDITY

Moody's considers that Tele Columbus has a very weak liquidity
position owing a combination of (1) negative Moody's-adjusted FCF
of around EUR200 million each year over 2023-24; (2) significant
refinancing needs with outstanding EUR462 million TLA due in
October 2024 and its EUR650 million guaranteed senior secured bond
maturing in May 2025; and (3) a small cash balance of EUR52 million
as of March 2023.

Given funding needs under the current investment plan, the rating
agency considers that a significant equity contribution will be
required to ensure the sustainability of the current capital
structure.

STRUCTURAL CONSIDERATIONS

Tele Columbus' probability of default rating is Caa1-PD, in line
with the CFR. The company's capital structure comprises an
outstanding EUR462 million TLA, and a EUR650 million guaranteed
senior secured bond, both rated Caa1.

The bond benefits from the same security and guarantee structure as
the term loan, and both instruments are secured against share
pledges of key operating subsidiaries and benefits from guarantees
from operating entities accounting for 80% of group EBITDA/90% of
group assets.

RATIONALE FOR NEGATIVE OUTLOOK

The negative outlook reflects Moody's view that volatility in
financial markets will make the company's ability to refinance its
debt maturities more challenging over the coming months,
particularly given its high leverage in a high interest rate
environment.

The negative outlook also reflects the company's weak liquidity
profile and the uncertainty around the company's ability to restore
earnings growth over 2023-24.

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

Given the negative outlook, there is limited upward pressure on the
rating. However, upward pressure could develop if the company's
addresses successfully the refinancing of its upcoming maturities
resulting in a more sustainable capital structure; improves its
liquidity profile; and delivers a solid operating performance with
sustainable revenue and EBITDA growth.

Tele Columbus' rating could be lowered if the company fails to
refinance its 2024 and 2025 debt maturities in the coming months;
if the liquidity profile does not improve; or if the company
pursues a debt restructuring resulting in higher losses for
creditors than those currently assumed in the current Caa1 rating.

LIST OF AFFECTED RATINGS

Issuer: Tele Columbus AG

Downgrades:

LT Corporate Family Rating, Downgraded to Caa1 from B3

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

Senior Secured Bank Credit Facility, Downgraded to Caa1 from B3

Senior Secured Regular Bond/Debenture, Downgraded to Caa1 from B3

Outlook Actions:

Outlook, Remains Negative

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Pay TV
published in October 2021.

COMPANY PROFILE

Tele Columbus AG (Tele Columbus), based in Berlin, is the
second-largest German cable operator (by the number of homes
connected), with strong regional positions in eastern Germany and
active operations nationwide. In 2022, Tele Columbus reported
EUR447 million in revenue and EUR182 million in normalised EBITDA.




=============
I R E L A N D
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CARLYLE GLOBAL 2016-1: Moody's Affirms Ba2 Rating on Cl. D-R Notes
------------------------------------------------------------------
Moody's Investors Service has downgraded the rating on the
following notes issued by Carlyle Global Market Strategies Euro CLO
2016-1 Designated Activity Company:

EUR13,000,000 Class E-R Senior Secured Deferrable Floating Rate
Notes due 2031, Downgraded to B3 (sf); previously on Sep 23, 2022
Affirmed B2 (sf)

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

EUR269,700,000 (Current outstanding amount EUR260,620,920) Class
A-1-R Senior Secured Floating Rate Notes due 2031, Affirmed Aaa
(sf); previously on Sep 23, 2022 Affirmed Aaa (sf)

EUR11,200,000 Class A-2-A-R Senior Secured Floating Rate Notes due
2031, Affirmed Aa1 (sf); previously on Sep 23, 2022 Upgraded to Aa1
(sf)

EUR20,000,000 Class A-2-B-R Senior Secured Fixed Rate Notes due
2031, Affirmed Aa1 (sf); previously on Sep 23, 2022 Upgraded to Aa1
(sf)

EUR9,300,000 Class A-2-C-R Senior Secured Floating Rate Notes due
2031, Affirmed Aa1 (sf); previously on Sep 23, 2022 Upgraded to Aa1
(sf)

EUR12,500,000 Class B-1-R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed A1 (sf); previously on Sep 23, 2022
Upgraded to A1 (sf)

EUR17,000,000 Class B-2-R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed A1 (sf); previously on Sep 23, 2022
Upgraded to A1 (sf)

EUR21,900,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed Baa1 (sf); previously on Sep 23, 2022
Upgraded to Baa1 (sf)

EUR30,000,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2031, Affirmed Ba2 (sf); previously on Sep 23, 2022
Affirmed Ba2 (sf)

Carlyle Global Market Strategies Euro CLO 2016-1 Designated
Activity Company, issued in May 2016 and refinanced in May 2018, is
a collateralised loan obligation (CLO) backed by a portfolio of
mostly high-yield senior secured European loans. The portfolio is
managed by CELF Advisors LLP. The transaction's reinvestment period
ended in November 2022.

RATINGS RATIONALE

The rating downgrade on the Class E-R Notes is primarily a result
of the deterioration in over-collateralisation ratios since the
last rating action in September 2022, mainly as a consequence of an
increase in defaults and subsequent reduction of portfolio par.
According to the trustee report dated June 2023 [1] the Class A,
Class B, Class C, Class D and Class E OC ratios are reported at
136.66%, 124.47%, 116.73%, 107.58% and 104.04% compared to August
2022 [2] levels of 138.00%, 126.01%, 118.38%, 109.31% and 105.80%,
respectively.

In light of reinvestment restrictions during the amortisation
period, and therefore the limited ability to effect significant
changes to the current collateral pool, Moody's analysed the deal
assuming a higher likelihood that the collateral pool
characteristics would maintain an adequate buffer relative to
certain covenant requirements.

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: EUR407.12m

Defaulted Securities: EUR12.56m

Diversity Score: 52

Weighted Average Rating Factor (WARF): 3028

Weighted Average Life (WAL): 3.55 years

Weighted Average Spread (WAS) (before accounting for Euribor
floors): 3.74%

Weighted Average Coupon (WAC): 4.53%

Weighted Average Recovery Rate (WARR): 44.65%

Par haircut in OC tests and interest diversion test: none

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 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.

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.


CLONTARF PARK: Moody's Affirms Ba2 Rating on EUR25MM D Notes
------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the following
notes issued by Clontarf Park CLO Designated Activity Company:

EUR21,000,000 Class B Senior Secured Deferrable Floating Rate
Notes due 2030, Upgraded to Aa1 (sf); previously on Dec 7, 2022
Upgraded to Aa2 (sf)

EUR20,500,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2030, Upgraded to A2 (sf); previously on Dec 7, 2022
Affirmed A3 (sf)

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

EUR240,000,000 (Current outstanding amount EUR99,839,185) Class
A-1 Senior Secured Floating Rate Notes due 2030, Affirmed Aaa (sf);
previously on Dec 7, 2022 Affirmed Aaa (sf)

EUR20,000,000 Class A-2A1 Senior Secured Floating Rate Notes due
2030, Affirmed Aaa (sf); previously on Dec 7, 2022 Affirmed Aaa
(sf)

EUR23,000,000 Class A-2A2 Senior Secured Floating Rate Notes due
2030, Affirmed Aaa (sf); previously on Dec 7, 2022 Affirmed Aaa
(sf)

EUR10,000,000 Class A-2B Senior Secured Fixed Rate Notes due 2030,
Affirmed Aaa (sf); previously on Dec 7, 2022 Affirmed Aaa (sf)

EUR25,000,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2030, Affirmed Ba2 (sf); previously on Dec 7, 2022
Affirmed Ba2 (sf)

EUR10,750,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2030, Affirmed B1 (sf); previously on Dec 7, 2022
Affirmed B1 (sf)

Clontarf Park CLO Designated Activity Company, issued in July 2017,
is a collateralised loan obligation (CLO) backed by a portfolio of
mostly high-yield senior secured European loans. The portfolio is
managed by Blackstone Ireland Limited. The transaction's
reinvestment period ended in August 2021.

RATINGS RATIONALE

The rating on the Classes B and C are primarily a result of the
deleveraging of the senior notes following amortisation of the
underlying portfolio since last rating action in December 2022.

The Class A-1 notes have paid down by approximately EUR43.7 million
since the last rating action in December 2022 (18.2% of the initial
balance) and EUR140.2 million (58.4% of the initial balance) since
closing. As a result of the deleveraging, over-collateralisation
(OC) has increased across the capital structure. According to the
trustee report dated June 2023 [1] the Class A, Class B, Class C
and Class D OC ratios are reported at 165.5%, 145.5%, 130.2% and
115.3% compared to October 2022 [2] levels of 151.4%, 137.1%,
125.6% and 113.9%, respectively.

In light of reinvestment restrictions during the amortisation
period, and therefore the limited ability to effect significant
changes to the current collateral pool, Moody's analysed the deal
assuming a higher likelihood that the collateral pool
characteristics would maintain an adequate buffer relative to
certain covenant requirements.

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: EUR252.9m

Defaulted Securities: EUR4.3m

Diversity Score: 43

Weighted Average Rating Factor (WARF): 3037

Weighted Average Life (WAL): 3.0 years

Weighted Average Spread (WAS) (before accounting for Euribor
floors): 3.48%

Weighted Average Coupon (WAC): 3.04%

Weighted Average Recovery Rate (WARR): 45.34%

Par haircut in OC tests and interest diversion test:  0.7%

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

Methodology Underlying the Rating Action:

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

Counterparty Exposure:

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

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

The rated notes' performance is subject to uncertainty. The notes'
performance is sensitive to the performance of the underlying
portfolio, which in turn depends on economic and credit conditions
that may change.

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 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.

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.


INVESCO EURO X: Fitch Gives B-sf Rating on Class F Debt
-------------------------------------------------------
Fitch Ratings has assigned Invesco Euro CLO Issuer X DAC final
ratings.

Invesco Euro CLO Issuer X DAC

A XS2631221863     LT  AAAsf  New Rating
B-1 XS2631222085   LT  AAsf   New Rating
B-2 XS2631222242   LT  AAsf   New Rating
C XS2631222598     LT  Asf    New Rating
D XS2631222754     LT  BBB-sf New Rating
E XS2631222911     LT  BB-sf  New Rating
F XS2631223133     LT  B-sf   New Rating
Subordinated Notes
XS2631223307       LT  NRsf   New Rating

TRANSACTION SUMMARY

Invesco Euro CLO Issuer X DAC is a securitisation of mainly senior
secured obligations (at least 90%) with a component of senior
unsecured, mezzanine, second-lien loans and high-yield bonds. Note
proceeds are being used to fund a portfolio with a target par of
EUR400 million that is actively managed by Invesco CLO Equity Fund
IV LP. The collateralised loan obligation (CLO) has a 4.6-year
reinvestment period and a seven-year weighted average life (WAL).

KEY RATING DRIVERS

Average Portfolio Credit Quality (Neutral): Fitch assesses the
average credit quality of obligors at 'B'/'B-'. The
Fitch-calculated weighted average rating factor (WARF) of the
identified portfolio is 25.28.

High Recovery Expectations (Positive): At least 90% of the
portfolio will comprise senior secured obligations. Fitch views the
recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets. The Fitch-calculated
weighted average recovery rate (WARR) of the identified portfolio
is 61.91%.

Diversified Portfolio (Positive): The transaction has two matrices
effective at closing corresponding to the 10-largest obligors at
25% of the portfolio balance and two fixed-rate asset limits at 5%
and 13.75% of the portfolio. The transaction also includes various
concentration limits, including an exposure to the three-largest
Fitch-defined industries in the portfolio at 42.5%. These covenants
ensure that the asset portfolio will not be exposed to excessive
concentration.

Portfolio Management (Neutral): The transaction has a 4.6-year
reinvestment period and includes reinvestment criteria similar to
those of other European transactions. Fitch's analysis is based on
a stressed-case portfolio with the aim of testing the robustness of
the transaction structure against its covenants and portfolio
guidelines.

Cash-flow Modelling (Positive): The WAL used for the transaction's
stressed-case portfolio analysis is 12 months shorter than the WAL
covenant. This reflects the strict reinvestment criteria post
reinvestment period, which includes satisfaction of the Fitch 'CCC'
limitation and the coverage tests, as well as a WAL covenant that
consistently steps down over time. In Fitch's opinion, these
conditions reduce the effective risk horizon of the portfolio
during stress periods.

Model-Implied Rating Deviation (Neutral): The class B-1 and B-2
rated 'AAsf' and E notes at 'BB-sf' are above their model-implied
ratings of 'AA-sf' and 'B+sf', respectively, due to an immaterial
shortfall of 10bp versus the break-even WARRs for only isolated
points in the matrices. The transaction has ample cushion on the
identified portfolio.

RATING SENSITIVITIES

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

A 25% increase of the mean default rate (RDR) across all ratings
and a 25% decrease of the recovery rate (RRR) across all ratings of
the identified portfolio would have no impact on the class A notes,
and would lead to downgrades of one notch each for the class B, C,
D, E and F notes.

Downgrades based on the identified portfolio may occur if the loss
expectation is larger than initially assumed, due to unexpectedly
high levels of defaults and portfolio deterioration. Due to the
better metrics and shorter life of the identified portfolio than
the Fitch-stressed portfolio, the class B, D, E and F notes have a
cushion of two notches, and the class C notes one notch.

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

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

A 25% reduction of the mean RDR across all ratings and a 25%
increase in the RRR across all ratings of the Fitch-stressed
portfolio would lead to upgrades of up to three notches for the
rated notes, except for the 'AAAsf' rated notes.

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


MADISON PARK XXIX: Fitch Assigns B-sf Rating to Class F Debt
------------------------------------------------------------
Fitch Ratings has assigned Madison Park Euro Funding XIX DAC final
ratings.

Madison Park Euro Funding XIX DAC

A-1 XS2600711811     LT  AAAsf  New Rating
A-2 XS2624570441     LT  AAAsf  New Rating
B-1 XS2600712033     LT  AAsf   New Rating
B-2 XS2600712207     LT  AAsf   New Rating
C XS2600712462       LT  Asf    New Rating
D XS2600712892       LT  BBB-sf New Rating
E XS2600712975       LT  BB-sf  New Rating
F XS2600713197       LT  B-sf   New Rating
M Subordinated Notes
XS2600713510        LT  NRsf   New Rating

TRANSACTION SUMMARY

Madison Park Euro Funding XIX DAC is a securitisation of mainly
senior secured loans and secured senior bonds with a component of
senior unsecured, mezzanine, and second-lien loans. Note proceeds
were used to fund a portfolio with a target par of EUR400 million.
The portfolio is actively managed by Credit Suisse Asset Management
Limited. The collateralised loan obligation (CLO) has an
approximately 4.5-year reinvestment period and an approximately
8.5-year weighted average life (WAL) test.

KEY RATING DRIVERS

Average Portfolio Credit Quality (Neutral): Fitch assesses the
average credit quality of obligors in the 'B' category. The Fitch
weighted average rating factor (WARF) of the identified portfolio
is 24.29.

High Recovery Expectations (Positive): At least 90% of the
portfolio will comprise senior secured obligations. Fitch views the
recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets. The Fitch weighted
average recovery rate (WARR) of the identified portfolio is
60.14%.

Diversified Portfolio (Positive): The transaction includes four
Fitch matrices, two of which are effective at closing. These
correspond to a top 10 obligor concentration limit at 20%, two
fixed-rate asset limits of 5% and 15%, respectively, and a 8.5-year
WAL test. The other two can be selected by the manager at any time
starting from one year after closing as long as the aggregate
collateral balance (including defaulted obligations at their Fitch
collateral value) is equal to target par and correspond to a top 10
obligor concentration limit at 20%, two fixed-rate asset limits of
5% and 15%, and a 7.5-year WAL.

The transaction also includes various concentration limits,
including the maximum exposure to the three largest Fitch-defined
industries in the portfolio at 42.5%. These covenants ensure that
the asset portfolio will not be exposed to excessive
concentration.

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

Cash Flow Modelling (Positive): The WAL used for the Fitch-stressed
portfolio analysis is 12 months less than the WAL covenant. This is
to account for the strict reinvestment conditions envisaged by the
transaction after its reinvestment period. These include, among
others, passing both the coverage tests and the Fitch 'CCC' bucket
limitation test as well as a WAL covenant that progressively steps
down over time, both before and after the end of the reinvestment
period. Fitch believes these conditions would reduce the effective
risk horizon of the portfolio during the stress period.

RATING SENSITIVITIES

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

A 25% increase of the mean default rate (RDR) across all ratings
and a 25% decrease of the recovery rate (RRR) across all ratings of
the identified portfolio would have no impact on the class A to D
notes but would lead to downgrades of no more than one notch for
the class E notes and to below 'B-sf' for the class F notes.

Downgrades, which are based on the identified portfolio, may occur
if the loss expectation is larger than initially assumed, due to
unexpectedly high levels of defaults and portfolio deterioration.
Due to the better metrics and shorter life of the identified
portfolio than the stressed-case portfolio, the class B, D and E
notes display a rating cushion of two notches each, and the class C
and F notes of one notch each.

Should the cushion between the identified portfolio and the
stressed-case portfolio be eroded either due to manager trading or
negative portfolio credit migration, a 25% increase of the mean RDR
across all ratings and a 25% decrease of the RRR across all ratings
of the stressed-case portfolio would lead to downgrades of three
notches for the class A and D notes, four notches for the class B
and C notes and below 'B-sf' for the class E and F notes.

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

A 25% reduction of the RDR across all ratings and a 25% increase in
the RRR across all ratings of the stressed-case portfolio would
lead to upgrades of up to three notches for the rated notes, except
for the 'AAAsf' rated notes.

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

DATA ADEQUACY

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

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




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

GARFUNKELUX HOLDCO 2: Fitch Alters Outlook o 'B+' IDR to Stable
---------------------------------------------------------------
Fitch Ratings has revised Garfunkelux Holdco 2 S.A.'s (Lowell)
Outlook to Stable from Positive, while affirming its Long-Term
Issuer Default Rating (IDR) at 'B+'. Fitch has also affirmed
Garfunkelux Holdco 3 S.A.'s (GH3) senior secured debt rating at
'B+' with a Recovery Rating of 'RR4'.

KEY RATING DRIVERS

The rating action reflects increased pressures on Lowell's funding
and profitability profile from potentially higher funding costs in
light of sizeable refinancing needs in late 2025. Lowell's updated
leverage target (net debt/EBITDA ratio below 3.0x by end-1H24) and
cost-cutting initiatives support the rating at its current level.

The IDR also factors in Lowell's well-established franchise in
Europe's largest debt-purchasing markets, strong data analytics and
resilient collection performance, but also negative pre-tax
profitability.

Strong Franchise: Lowell is a leading European debt purchaser
focused on unsecured consumer portfolios. The acquisition of the UK
business of Hoist AB and recent securitisations and portfolio sales
in the Nordics have increased Lowell's focus on the UK market,
which accounted for 65% of estimated remaining collections (ERC) at
end-1Q23. Lowell mainly focuses on debt purchasing (above 80% of
cash income). A cyber-attack negatively affected servicing revenue
in 1Q22, which has however fully recovered by end-2022.

Recovered Collections: In 2022, collection performance was 93% of
Lowell's projection, due to operational disruption from the
cyber-attack. Following an ERC re-forecasting exercise in 3Q22,
Lowell achieved 100% of projected collections in 4Q22 and 1Q23.

Deployment to Moderate: Portfolio purchases were a high GPB485
million in 2022 (about GPB200 million in excess the ERC replacement
rate). In addition, the Hoist UK acquisition added around GPB500
million to Lowell's ERC. We expect capital deployment to moderate
and be more in line with the ERC replacement rate (estimated at
about GPB300 million for 2023). Lowell's 120-month ERC was GPB4.2
billion at end-1Q23, slightly down from end-2022 due to portfolio
sales. We expect ERC to remain broadly flat in the medium term.

Increased Funding Cost, Concentrated Maturities: Fitch's assessment
of Lowell's funding and liquidity profile considers its reliance on
wholesale funding, which despite being diversified by source, has
maturities concentrated in late 2025. In the current high
interest-rate environment, this will likely increase funding costs
and put pressure on profitability when secured notes are due for
refinancing. Its EBITDA coverage ratio was to 3.6x at end-1Q23,
benefiting from accelerated collections from portfolio sales and
securitisations (2.6x if those are excluded).

Adequate Liquidity: At end-1Q23, Lowell's liquidity buffer was an
adequate GBP231 million, comprising GBP69 million in unrestricted
cash, GBP49 million securitisation availability and GPB113 million
in revolving credit facility (RCF) draw-down capacity. Its
liquidity position increased by GPB55 million in May 2023, largely
due to a securitisation transaction.

Portfolio Sales Support Deleveraging: Lowell's updated net
debt/EBITDA target of below 3.0x by end-1H24 is positive for the
ratings. Leverage improved to below 3.5x at end-May 2023 from 4.1x
at end-2022, mainly driven by recent portfolio sales and
securitisations. Lowell's ability to continue generating recurring
EBITDA is key to deleveraging given its bullet funding profile. Its
tangible equity is negative due to sizeable acquisitions and
pre-tax losses, even when shareholder loans (treated as equity by
Fitch) are included.

Weak Profitability: Lowell's profitability remains weak with a 2%
and 4% negative return on average assets in 1Q23 and 2022,
respectively. In 2022, Lowell recognised a GPB100 million goodwill
impairment from the cyber-attack, partly offset by a GPB73 million
positive change in expected recoveries. Its EBITDA margin was
strong at 61% in 12 months to end-1Q23 (57% in 2022), helped by
lower operating costs and acceleration of cash collections from
securitisations and portfolio sales.

RATING SENSITIVITIES

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

- Inability to proactively address upcoming debt maturities amid
  sustained high funding costs

- Fitch-calculated gross debt/EBITDA exceeding 5.0x on a sustained

  basis and a material weakening in EBITDA/interest expense,
  particularly without prospects of a short-term recovery

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

- Moderation of funding costs and more certainty with regard to
  refinancing of upcoming debt maturities in 2025

- A strengthening of EBITDA margin and net profit, while
  maintaining leverage in line with stated objectives

DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS

The 'B+'/'RR4' ratings of GH3's senior secured debt, junior to
Lowell's sizeable RCF, reflects Fitch's view of average recoveries
of this debt class.

DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES

The secured notes' rating is sensitive to changes in Lowell's
Long-Term IDR. Improved recovery expectations, for instance, as a
result of a thinner layer of debt senior to the notes could be
positive for the notes' rating.

ADJUSTMENTS

The 'b+' Standalone Credit Profile (SCP) of Lowell is below its
'bb-' implied SCP due to the following adjustment reason: earnings
and profitability (negative).

The business profile score of 'bb' is below the 'bbb' category
implied score due to the following adjustment reason: business
model (negative).

The earnings and profitability score of 'b' is below the 'bb'
category implied score due to the following adjustment reason:
earnings stability (negative).

ESG CONSIDERATIONS

Lowell has an ESG Relevance Score of '4' for customer welfare -
fair messaging, privacy & data security due to the cyber-attack,
which has a negative impact on the credit profile, and is relevant
to the ratings in conjunction with other factors.

Lowell has an ESG Relevance Score of '4' for financial transparency
due to the significance of internal modelling to portfolio
valuations and to associated metrics such as ERC. This also has a
moderately negative impact on the rating, and is a feature of the
debt purchasing sector as a whole, and not specific to Lowell.

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.




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S P A I N
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LUNA III SARL: Moody's Affirms B1 CFR & Alters Outlook to Positive
------------------------------------------------------------------
Moody's Investors Service has changed the outlook on Luna III
S.a.r.l., the holding company of Urbaser S.A.U., a Spanish company
operating in the waste management business, to positive from
stable. Concurrently, Moody's has affirmed Luna III's B1 Corporate
Family Rating and B1-PD Probability of Default Rating, as well as
the B1 ratings on its senior secured term loan due 2028 and senior
secured revolving credit facility due 2027.

RATINGS RATIONALE

RATIONALE FOR THE POSITIVE OUTLOOK

The positive outlook reflects Urbaser's solid operating performance
during 2022 and Moody's expectation of ongoing strong performance
this year. During 2022, Urbaser grew its revenues to above EUR3
billion, an increase of around 19% compared to 2021, which was also
above Moody's initial expectations. Benefiting from a degree of
operating leverage, the strong top-line growth allowed Urbaser to
further improve its profitability with an EBITDA margin now
reaching the high teens in percentage terms. Moody's views the
quality of additional earnings to be overall sustainable, with only
a modest portion of those emanating from waste to energy
facilities, which benefited from particularly high levels of
electricity prices in the first half of 2022. In addition, its high
share of index-linked contracts has allowed the company to largely
pass on the cost inflation seen throughout 2022.

For the first quarter of 2023, Urbaser reported an overall flat
EBITDA compared to the same quarter last year. Whilst the company
will face some headwinds following the loss of an important
contract in Madrid, Moody's expects Urbaser to display an EBITDA
above EUR550 million for 2023. Whilst the rating agency expects
free cash flows to be negative this year on the back of
particularly high capital expenditures – substantially above the
EUR321 million recorded in 2022 – Moody's would not expect Luna
III to draw significantly on its revolving credit facilities. As a
consequence, Luna III's leverage – measured as Moody's adjusted
gross debt/EBITDA – should remain below Moody's ratio guidance
for a rating upgrade in 2023.

RATIONALE FOR THE RATINGS AFFIRMATION

The ratings affirmation nonetheless reflects the limited visibility
over the group's future financial policy. Luna III has
significantly deleveraged following the takeover of Urbaser by
Platinum Equity in 2021. Its net first lien leverage – as
reported by the company at the end of this first quarter this year
– was 2.20x. There is however uncertainty around how the group's
current financial flexibility will be used going forward.

The affirmation of the B1 CFR further continues to reflect (1)
Urbaser's solid track record and expertise in waste management,
notably in its core market of Spain (Baa1 stable), combined with a
meaningful level of diversification across waste management
activities; (2) some geographic diversification; (3) a good degree
of visibility over cash flow generation supported by a significant
number of concessions under management; (4) the supportive
regulatory and industry trends in the countries where it operates;
and (5) a track record of steady operating margins.

At the same time, the B1 CFR remains constrained by (1) Urbaser's
exposure to contract renewal risk, particularly in the waste
collection business; (2) the company's exposure to cyclical waste
volumes and changing macroeconomic conditions in the waste
treatment business; and (3) the country risk and foreign exchange
rate exposure associated with its operations in Argentina (Ca,
stable), although a positive track record of timely payments and
revenue indexation mechanisms mitigate this risk.

STRUCTURAL CONSIDERATIONS

The senior secured facilities – including the EUR1.25 billion
term loan – are rated B1, in line with Luna III's B1 CFR. This
reflects the upstream guarantees and share pledges from material
subsidiaries of the group. In particular, the facilities are
guaranteed by subsidiaries representing at least 80% of the group's
consolidated EBITDA.

LIQUIDITY

Moody's expects Luna III's liquidity profile to remain good over
the next 12-18 months. At the end of March 2023, the company had
EUR238 million of cash. Further liquidity cushion is provided by
access to a EUR400 million revolving credit facility with financial
covenants, against which the company has nonetheless substantial
headroom.

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

Moody's could upgrade the ratings if Luna III were to maintain its
ratio of gross debt to EBITDA below 4.5x on a sustained basis. A
potential upgrade of the ratings would also require a track record
of consistent financial policy commensurate with a higher rating
level.

The ratings could be downgraded if gross debt to EBITDA were to
rise above 5.5x. A material deterioration of Luna III´s liquidity
profile could also exert negative pressure on the ratings.

The principal methodology used in these ratings was Environmental
Services and Waste Management published in May 2023.

COMPANY PROFILE

Luna III is the holding company of Urbaser, one of the largest
waste management companies in Spain. Urbaser is active in the
collection, treatment and recycling of solid urban waste. The group
is also responsible for the provision of industrial treatment and
other ancillary services. Besides its major stronghold in Spain,
the company operates in more than 20 countries, including France,
the Nordics, Chile and Argentina. In 2022, Urbaser reported
revenues of more than EUR3 billion.


MBS BANCAJA 4: Moody's Ups Rating on EUR18.5MM Class D Notes to B2
------------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of six Notes in
MBS BANCAJA 3, FTA and MBS BANCAJA 4, FTA. The rating action
reflects better than expected collateral performance and the
increased levels of credit enhancement for the affected Notes.

Moody's affirmed the ratings of the Notes that had sufficient
credit enhancement to maintain their current ratings.

Issuer: MBS BANCAJA 3, FTA

EUR668 million  Class A2 Notes, Affirmed Aa1 (sf); previously on
Jul 16, 2018 Affirmed Aa1 (sf)

EUR13.2 million Class B Notes, Upgraded to Aa1 (sf); previously on
Jul 16, 2018 Confirmed at A2 (sf)

EUR11.6 million Class C Notes, Upgraded to A1 (sf); previously on
Jul 16, 2018 Confirmed at Baa3 (sf)

EUR7.2 million Class D Notes, Upgraded to Baa3 (sf); previously on
Jul 16, 2018 Confirmed at B2 (sf)

Issuer: MBS BANCAJA 4, FTA

EUR1182.1 million Class A2 Notes, Affirmed Aa1 (sf); previously on
Nov 13, 2020 Upgraded to Aa1 (sf)

EUR30.5 million Class B Notes, Upgraded to A3 (sf); previously on
Nov 13, 2020 Upgraded to Baa3 (sf)

EUR18.9 million Class C Notes, Upgraded to B1 (sf); previously on
Nov 13, 2020 Affirmed B2 (sf)

EUR18.5 million Class D Notes, Upgraded to B2 (sf); previously on
Sep 5, 2014 Affirmed Ca (sf)

The maximum achievable rating is Aa1 (sf) for structured finance
transactions in Spain, driven by the corresponding local currency
country ceiling of the country.

RATINGS RATIONALE

The rating action is prompted by decreased key collateral
assumptions, namely the portfolio Expected Loss (EL) assumptions,
for both transactions and the MILAN CE assumption for MBS BANCAJA
3, FTA due to better than expected collateral performance. The
rating action is also prompted by an increase in credit enhancement
for the affected tranches.

Revision of Key Collateral Assumptions

As part of the rating action, Moody's reassessed its lifetime loss
expectation for the portfolio reflecting the collateral performance
to date.

The performance of the transactions has continued to improve since
the last rating action.

For MBS BANCAJA 3, FTA, total delinquencies have decreased in the
past year, with 90 days plus arrears currently standing at 1.46% of
current pool balance. Cumulative defaults currently stand at 4.37%
of original pool balance up from 4.35% a year earlier.

For MBS BANCAJA 3, FTA, the expected loss assumption is 3.33% as a
percentage of current pool balance, which corresponds to a decrease
of the expected loss assumption as a percentage of original pool
balance to 2.21% from 2.32% due to the improving performance.

For MBS BANCAJA 4, FTA, total delinquencies have increased in the
past year, with 90 days plus arrears currently standing at 1.32% of
current pool balance. Cumulative defaults currently stand at 6.91%
of original pool balance up from 6.86% a year earlier.

For MBS BANCAJA 4, FTA, the expected loss assumption is 3.88% as a
percentage of current pool balance, which corresponds to a decrease
of the expected loss assumption as a percentage of original pool
balance to 3.76% from 3.86% due to the improving performance

Moody's has also assessed loan-by-loan information as part of its
detailed transaction review to determine the credit support
consistent with target rating levels and the volatility of future
losses. As a result, Moody's has reduced the MILAN CE assumption to
12.00% from 12.80% for MBS BANCAJA 3, FTA. For MBS BANCAJA 4, FTA,
Moody's has maintained the current MILAN CE of 13.00%.

Increase in Available Credit Enhancement

Sequential amortization and a non-amortizing reserve fund led to
the increase in the credit enhancement available in both
transactions. For MBS BANCAJA 3, FTA, sequential amortization will
continue due to the balance of non-doubtful loans being below 10%
of the outstanding loan balance at the closing date of the
transaction. For MBS BANCAJA 4, FTA, the sequential amortization is
sustained by delinquency triggers of the junior Notes. If
delinquencies were to decrease below the trigger levels for these
Notes, these could amortize pro-rata with Class A Notes to their
target capital structure. Similar to MBS BANCAJA 3, FTA, once the
current outstanding pool balance decreased to below 10% of the
outstanding pool balance at the closing date, sequential
amortization will continue.

While the reserve funds in both transactions are currently at their
respective targets, there is a reserve fund amortization trigger in
place, which could lead to an amortization of the reserve funds to
their respective floors.

As at the last reporting date, for MBS BANCAJA 3, FTA, for
instance, the credit enhancement for the most senior tranche
affected by the rating action increased to 29.84% from 17.56% since
the last rating action.

For MBS BANCAJA 4, FTA, for instance, the credit enhancement for
the most senior tranche affected by the rating action increased to
33.06% from 22.01% since the last rating action.

The principal methodology used in these ratings was "Moody's
Approach to Rating RMBS Using the MILAN Framework" published in
July 2022.

The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage.

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

Factors or circumstances that could lead to an upgrade of the
ratings include: (1) performance of the underlying collateral that
is better than Moody's expected, (2) an increase in available
credit enhancement, (3) improvements in the credit quality of the
transaction counterparties, and (4) a decrease in sovereign risk.

Factors or circumstances that could lead to a downgrade of the
ratings include: (1) an increase in sovereign risk, (2) performance
of the underlying collateral that is worse than Moody's expected,
(3) deterioration in the Notes' available credit enhancement, and
(4) deterioration in the credit quality of the transaction
counterparties.




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S W E D E N
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INTRUM AB: Fitch Affirms 'BB' LongTerm IDR, Outlook Negative
------------------------------------------------------------
Fitch Ratings has affirmed Intrum AB (publ)'s Long-Term Issuer
Default Rating (IDR) at 'BB' with Negative Outlook. Fitch has also
affirmed Intrum's senior unsecured debt rating at 'BB'.

The Negative Outlook reflects Fitch's view of medium-term
structural pressures on Intrum's business model due to increased
funding and collection costs and its leverage ratio (defined as
gross debt/adjusted EBITDA) remaining above the management's stated
medium-term target range of 2.5x to 3.5x for longer than previously
anticipated. In our view, reducing the net leverage ratio to below
3.5x in the short term will be challenging, given current pressures
on collection rates in most markets and Intrum's high dividend
payout ratio.

KEY RATING DRIVERS

High Leverage; Sound Franchise: Intrum's IDRs reflect its high
leverage, dependence of its business model on regular portfolio
acquisitions with increasingly costly funding and rising collection
costs. It also reflects Intrum's market-leading franchise in the
European debt-purchasing and credit-management sector, where the
group benefits from diversification across 25 countries and its
high proportion of fee-based servicing revenue, which complements
its more balance sheet-intensive investment activities.

Sound Collection; Fast Growth: Intrum has a history of successful
integration of acquired businesses and a long record of delivering
on cash collection forecasts. It also has a high appetite for
debt-financed fast growth and operations in an inherently risky
segment of impaired assets.

Fitch's assessment of Intrum's asset quality and performance
reflects a significant share of intangible assets on its balance
sheet (44% of total assets at end-1Q23), well-diversified portfolio
by client and geography and a high degree of management judgement
in portfolio valuations.

Higher Collection Costs Pressure Profitability: Intrum has a
history of sound collections and high EBITDA margin. Intrum's
business model is both capital- and labour-intensive. A sharp rise
in the marginal cost of funding since late 2022 and rising
collection costs due to debtors having lower disposable incomes
have resulted in medium-term pressures on Intrum's profitability.
Intrum's operating expenses/revenues ratio was about 80% in 1Q23
(2021: 65%), while its finance costs/revenues ratio reached 18% in
1Q23 (2021: 12%)

Leverage Outside Guidance Range: Leverage is a constraint for
Intrum's credit profile, with Fitch's gross leverage ratio (gross
debt-to-adjusted EBITDA) consistently above 4x in recent periods,
outside Fitch's leverage benchmark of 2.5x to 3.5x for the 'bb'
rating category.

Intrum's management monitors leverage via a net debt-to-cash EBITDA
ratio as adjusted for non-recurring items on a rolling 12-month
basis, which at end-1Q23 was 4.2x (end-1Q22: 3.8x). Since 2017 it
has maintained a medium-term target of 2.5x-3.5x, the achievement
of which is more reliant on growth in cash EBITDA than on debt
reduction.

Acceptable Funding and Liquidity: Intrum's funding is wholesale but
largely unsecured (85% at end-3Q22) and reasonably diversified with
a weighted average debt maturity of around three years. Immediate
liquidity is sound, with adequate cash reserves equivalent to
EUR330 million and a sizeable revolving credit facility equivalent
to EUR1.8 billion at end-3Q22, which remains about 50% undrawn.

However, almost 30% of debt is at floating rates, exposing Intrum
to further interest rate increases. Fitch considers Intrum's
elevated leverage and high dividend payout ratio as additional
pressures to its funding profile in the medium term.


Debt Rating Equalised: Intrum's senior unsecured debt rating is
equalised with the Long-Term IDR, reflecting Fitch's expectation of
average recovery prospects given the group's largely unsecured
funding profile.

Intrum has an ESG Relevance Score of '4' for financial
transparency, in view of the significance of internal modelling to
portfolio valuations and associated metrics such as estimated
remaining collections, but being a feature of the debt purchasing
sector as a whole, this has a moderately negative influence on
Intrum's rating.

RATING SENSITIVITIES

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

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

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

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

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

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

DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS

The rating of Intrum's senior unsecured debt is equalised with the
Long-Term IDR, reflecting Fitch's expectation for average recovery
prospects given that Intrum's funding is mostly unsecured.

The company has a revolving credit facility (RCF) of EUR1.8 billion
that is senior to the unsecured bonds. The utilised amount has
increased significantly over the past year to EUR 0.8 billion at
end-1Q23. Close to full utilisation of the super-senior RCF could
trigger a downgrade of the bonds' rating by one notch.

DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES

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

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

ADJUSTMENTS

The business profile score of 'bb+' has been assigned below the
'bbb' category implied score due to the following adjustment
reasons: business model.

ESG CONSIDERATIONS

Intrum has an ESG Relevance Score of '4' for financial
transparency, in view of the significance of internal modelling to
portfolio valuations and associated metrics such as estimated
remaining collections. This has a moderately negative influence on
the rating, but is a feature of the debt purchasing sector as a
whole, and not specific to Intrum.

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.




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S W I T Z E R L A N D
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SUNSHINE LUXEMBOURG: Moody's Ups CFR to B2, Outlook Remains Stable
------------------------------------------------------------------
Moody's Investors Service has upgraded the corporate family rating
of Sunshine Luxembourg VII SARL (Galderma or the company) to B2
from B3. Concurrently, Moody's has upgraded the company's
probability of default rating to B2-PD from B3-PD, and upgraded the
ratings on the company's senior secured bank credit facilities to
B1 from B2. The outlook on all the ratings remains stable.

The rating action reflects:

-- The company's strong trading since inception in 2019 and
prospects for solid growth supported by positive market dynamics,
the company's strong market positions and its late-stage pipeline
of new products

-- The private placement of around $1 billion of new equity which
Moody's expects will be fully applied to prepay debt, alongside the
company's plans to carry out an IPO

-- Expectations that the company's leverage will reduce to below
6.5x on a Moody's-adjusted basis by December 2023 and to well below
6x over the next 12-18 months

RATINGS RATIONALE

The B2 CFR reflects the company's (1) diversified presence in
injectable aesthetics, therapeutic dermatology and dermatological
skincare markets; (2) solid market positions and growth prospects
in injectable aesthetics and dermatological skincare; (3) pipeline
assets with potentially sizeable opportunities; (4) history of
strong operating performance and good resilience during the
pandemic and over the economic cycle; and (5) financial policy
focused on deleveraging.

The ratings also reflect the company's (1) high Moody's-adjusted
leverage of 7.9x at March 2023, although expected to reduce to well
below 6x following the equity issuance and from continued organic
growth; (2) EBITDA concentration in injectable aesthetics; (3) high
reliance on a few brands; (4) risks of reduced demand or pricing
power in the event of a weaker economic backdrop; and (5) weak cash
generation driven by supply chain constraints and high investments
in business transformation and pipeline products, although cash
flows are expected to improve.

Galderma's credit profile has strengthened since the LBO, as it has
delivered its carve out and largely completed its transformation
programme, achieved strong organic growth, navigated a period of
loss of exclusivity for major therapeutic drugs, and progressed its
major pipeline opportunities.  It is well placed for further growth
in sales, margin expansion and improving cash flows. The company is
expected to reduce its Moody's-adjusted leverage to well below 6x
over the next 12-18 months, with all of the proceeds from its
recent equity issuance expected to be applied to reduce leverage as
well as to invest in continued organic growth.

The company's pipeline provides potential for sizeable incremental
revenues opportunities. Nemolizumab, a treatment for atopic
dermatitis and prurigo nodularis, is entering regulatory submission
phase, is expected to launch in the second half of 2024 and has
blockbuster potential. Its neuromodulator asset, QM-1114 has
completed phase 3 trials, demonstrated good efficacy, and is well
placed to help Galderma sustain its market position in injectable
aesthetics. Sales of two of the company's leading brands for acne
and rosacea treatments have been affected by loss of exclusivity in
the US from 2021, and although sales declined in 2022, there are
early indications that performance has stabilised, with the effect
less severe than expected driven by effective commercial actions.

Galderma's net cash generation remains weak, however, and although
a substantial proportion of cash is being invested for growth via
nemolizumab, working capital and exceptional costs have remained a
drag on cash flows. In the first quarter of 2023 the company
experienced a working capital outflow of $237 million which was
affected by a temporary increase in inventories in response to
neuromodulator supply chain constraints. Moody's expects the
company to generate negative free cash flow in 2023 before
returning to low positive cash generation in 2024.

LIQUIDITY

Galderma's liquidity profile is adequate. As of March 31, 2023,
Galderma had a cash balance of $164 million and an undrawn
revolving credit facility (RCF) of $157 million (out of $500
million), prior to the equity issuance which is expected to provide
at least $250 million of additional liquidity. The RCF is subject
to a springing covenant test of 8.75x consolidated secured net
leverage tested when it is drawn by 40% or more, and covenant
headroom is expected to be substantial. The company has no major
debt maturities until 2026 but its USD-denominated first-lien term
loan amortises by 1% per annum ($32 million).

STRUCTURAL CONSIDERATIONS

The first lien term loans and pari passu ranking RCF are rated B1,
one notch above the CFR, reflecting their ranking ahead of the
second lien facility. The security package is limited to pledges on
shares, bank accounts and trade receivables in most jurisdictions
where the company's assets are located.

ESG CONSIDERATIONS

Galderma's has limited exposure to environmental risks. It faces
social risks in connection with product safety and litigation,
regulatory pricing pressure and supply chain disruption. Its
governance risks are driven by its relatively aggressive financial
policy tolerating high leverage since the LBO in 2019, however this
is now moderating through organic growth, new equity issuance, and
as the company prepares for an IPO. Galderma's management has a
strong track record of delivery and executing on its transformation
plan since the LBO and there is a robust advisory board structure
with deep industry expertise.

OUTLOOK

The stable outlook reflects expectations that the company will
continue to grow revenues organically with stable to improving
profit margins, leading to leverage reducing to well below 6x over
the next 12-18 months. This is partially offset by the company's
cash generation which will remain limited driven by investment in
new products and working capital to support growth, with free cash
flows returning to positive levels from 2024. The outlook also
assumes that the company will maintain at least adequate liquidity
and will not undertake material debt-funded acquisitions and
dividend payments or other forms of shareholder returns.

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

The ratings could be upgraded if (1) the company continues to
maintain organic revenue and EBITDA growth at least in the
mid-single digit percentages; and (2) the company's
Moody's-adjusted leverage reduces towards 5x on a sustainable
basis; and (3) its Moody's-adjusted cash flow from operations to
debt sustainably increases above 10%; and (4) the company maintains
a financial policy targeted at deleveraging, with no material
debt-funded acquisitions or shareholder distributions.

The ratings could be downgraded if (1) the company's revenues or
EBITDA fail to grow on an organic basis; or (2) its
Moody's-adjusted gross debt/EBITDA increases towards 6.5x on a
sustained basis; or (3) the company does not increase its
Moody's-adjusted cash flow from operations to debt sustainably
above 5%; or (4) the company undertakes material debt-funded
acquisitions or shareholder distributions; or (5) liquidity
deteriorates.

LIST OF AFFECTED RATINGS

Upgrades:

Issuer: Sunshine Luxembourg VII SARL

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

LT Corporate Family Rating, Upgraded to B2 from B3

Senior Secured Bank Credit Facility, Upgraded to B1 from B2

Outlook Action:

Issuer: Sunshine Luxembourg VII SARL

Outlook, Remains Stable

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Pharmaceuticals
published in November 2021.

CORPORATE PROFILE

Headquartered in Zug, Switzerland, Galderma is a leading skincare
company offering injectable aesthetics, therapeutic dermatology and
dermatological skincare products. Established in 1981, it has
around 6,400 employees and was a wholly-owned subsidiary of Nestle
S.A. (Aa3 stable) until a consortium of financial sponsors led by
EQT and ADIA carved it out in mid-2019. In the last twelve months
ended March 2023, the company reported revenue of $3.8 billion and
EBITDA of $590 million.




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U N I T E D   K I N G D O M
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GARNERS FOOD: Insolvency Proceedings Being Following Liquidation
----------------------------------------------------------------
Andrew Seymour at Catering Insight reports that insolvency
proceedings have begun at Garners Food Service Equipment following
the appointment of liquidators earlier this month.

Business advisory firm Opus Restructuring confirmed that Louise
Williams and Paul Mallatratt had been appointed as joint
liquidators after the Nottingham-based catering equipment
distributor went into liquidation on July 6, Catering Insight
relates.

The appointment was made following a meeting of creditors that took
place the same day, Catering Insight notes.

according to Catering Insight, the company's statement of affairs
-- which details its assets and liabilities -- has been submitted
to Companies House and is expected to be made available publicly
this week.

In the absence of a trade or private buyer for the business,
liquidators will attempt to realise any remaining assets, Catering
Insight states.

The cost of the liquidator's fees will need to be paid first, with
any secured creditors next in line, Catering Insight discloses.

It is understood that Garners had to call in insolvency
practitioners after continuing to incur liabilities following a
challenging financial period, according to Catering Insight.

Having seen one of its largest customers, Carillion, collapse in
2018, the distributor was then impacted by the Covid pandemic,
while government support offered to the industry during that time
has since ceased, Catering Insight relays.

Accounts to September 30, 2022, are currently showing as overdue on
Companies House, Catering Insight notes.


HENRY CONSTRUCTION: Collapse Affects Contractors' Bond Capacity
---------------------------------------------------------------
Aaron Morby at Construction Enquirer reports that the collapse of
Henry Construction has triggered a serious bonding crunch for
contractors.

According to Construction Enquirer, some bond providers are warning
firms will now find it much more difficult and costly to raise
bonds as a result of the fallout.

Surety capacity is being constrained as providers seek to manage
risk, and brokers now warn that contractors with tight headroom on
balance sheets could even be refused bonding, Construction Enquirer
states.

Henry Construction is believed to have had over GBP150 million of
bonds "live" at the time of entering administration, spread among
13 surety providers, Construction Enquirer discloses.

The hit taken from the GBP400 million revenue contractor's collapse
is broadly equivalent to one year's premium throughput in the
non-bank surety market, Construction Enquirer notes.

"The demise of Henry has bombed the market for probably a year to
18 months," Construction Enquirer quotes Chris Davies, managing
director of broker DRS Bond Management, as saying.

"It was a once in 10-year event for a company of this size, but
comes off the back of already high levels of corporate insolvency
over the last 18 months.

"The surety market has taken a big hit and now we are seeing bond
capacity tightening appreciably.  The next year or so is going to
be difficult to say the least"

"Everything will be scrutinised much more closely, particularly for
bonds over GBP1 million or where expiry is beyond practical
completion," he added.

Mr. Davies, as cited by Construction Enquirer, said that bonding
over GBP1 million was now being spread across two or even three
providers making it harder for contractors to secure.


J TOMLINSON: Sub-contractors Express Frustration After Collapse
---------------------------------------------------------------
Sam Metcalf at TheBusinessDesk.com reports that sub-contractors of
collapsed construction and facilities management firm J Tomlinson
have reacted with anger following the appointment of administrators
at the Beeston firm.

TheBusinessDesk.com exclusively broke the news on July 10 that J
Tomlinson was set to collapse into administration, with CEO Mark
Davis calling the move "tragic".

Later on July 10, Raj Mittal and Nathan Jones of FRP Advisory were
confirmed as joint administrators, TheBusinessDesk.com relates.

Some 400 jobs have been lost after J Tomlinson immediately ceased
trading, TheBusinessDesk.com discloses.

Now, disgruntled sub-contractors of J Tomlinson have taken to
social media to express their frustration at not being told about
the situation, TheBusinessDesk.com relays.

According to TheBusinessDesk.com, one said: "But you still placed
orders with finishing trades with no intention to pay them.  Mark
Davis and team will be okay leaving the subbies to pick up the
shit."

In a statement on July 10, Mr. Davis, as cited by
TheBusinessDesk.com, said: "We have done our upmost to communicate
timely and provide the support to our teams which is very difficult
when decisions of this magnitude are taken and implemented in the
tightest of timelines.

"We will do our utmost to provide support and guidance throughout
the forthcoming difficult period."


MEATLESS FARM: Owes More Than GBP2MM to Creditors, Report Shows
---------------------------------------------------------------
William Dodds at Food Manufacture reports that plant-based
manufacturer Meatless Farm owes more than GBP2 million to a mixture
of creditors, employees and HSBC bank, according to a new report
compiled by administrators.

The firm appointed Geoff Bouchier and Benjamin Wiles of global risk
and financial services provider Kroll as administrators on June 13
and was subsequently bought a week later by vegan manufacturer VFC
Foods.

Kroll's report revealed that Meatless Farm owes GBP1.87 million to
more than 150 unsecured creditors, while HSBC is due GBP230,000.

Meanwhile, the plant-based manufacturer owes more than GBP100,000
to the 50 members of the staff that were made redundant in June,
prior to the business going into administration.


PEPCO GROUP: Fitch Assigns BB+ Rating on EUR375MM Notes Due 2028
----------------------------------------------------------------
Fitch Ratings has assigned Pepco Group N.V's (BB/Stable) subsidiary
PEU (Fin) PLC's recent EUR375 million 7.25% notes due 2028 a final
senior secured rating of 'BB+' with a Recovery Rating of 'RR2'.

The new notes rank pari passu with its existing senior secured debt
and proceeds will be used to repay the outstanding EUR300 million
term loan A and for general corporate purposes.

Pepco's 'BB' IDR reflects its scale, leading market positions in
central and Eastern Europe (CEE), value positioning, improving
diversification and record of revenue and profit growth along with
adequate leverage for the rating. This is balanced by execution
risk from accelerated expansion in Western Europe leading to
negative free cash flow (FCF) over the next two years and neutral
thereafter, some near-term margin pressure and weak coverage
metrics.

The Stable Outlook is driven by an adequate liquidity position to
support accelerated capex plans over the next two years, a sizeable
part of which is discretionary, combined with EBITDAR leverage
stabilising at around 4.0x.

KEY RATING DRIVERS

New Notes are Leverage Neutral: The new notes add EUR75 million
incremental term debt. This is neutral from a gross and net debt
perspective due to the now lower expected utilisation of Pepco's
revolving credit facility (RCF).

Strong Growth for Discounter: Fitch forecasts incorporates
continued double-digit revenue growth over FY23-FY26 (financial
year ending September) due to Pepco's value appeal to consumers and
accelerated new store openings. Fitch assumes more normalised
like-for-like (LFL) sales growth as the increased cost of living
affects discretionary demand in 2H23.

This follows 11% LFL sales growth in 1H23, and the company's
guidance about weaker consumer sentiment around discretionary spend
in response to high inflation in April and May, leading to mixed
performance in clothing and general merchandise categories. Fitch
expects LFL sales growth to align with historical performance from
FY24, at around 5%-6% for the Pepco segment.

Execution Risk from Expansion: Fitch sees execution risk from
Pepco's ambitious plans to add around 550 stores per year over the
next four years, with the majority in Western Europe. In Fitch's
view, there is a risk of over-expansion, intensifying competitive
pressures in some markets, as well as potential for less stickiness
to the discounter model upon economic recovery in Western markets,
where the share of discretionary disposable income is above that of
CEE.

However, Fitch regards Pepco's approach to entering new Western
markets, such as Germany, as prudent, and considers that the
current cost of living pressures continue to provide discounters
with the opportunity to gain market share.

Profit Growth: Fitch expects EBITDAR to trend to EUR1 billion by
FY25 from around EUR700 million forecast in FY23. However, Fitch
projects the EBITDAR margin will remain below pre-pandemic levels
at 15% vs 18% in FY19 due to accelerated expansion into Western
markets with a higher cost base and the need to build brand and
scale, unlike CEE countries, where Pepco has an established market
position and scale. Furthermore, its strategy to increase the
fast-moving consumer goods (FMCG) share in Pepco stores will weigh
on the margin.

Near-term Margin Pressure: Fitch's forecast incorporates continued
margin pressure and projects an EBITDAR profitability decline in
FY23 to 13% from around 15% in FY22. This will mainly be due to a
lower gross profit margin under Pepco brand (around 70% of FY22
reported underlying EBITDA), and operating cost inflation. From
FY24, we estimate a gradual recovery in profit margins as
cost-inflationary pressures ease, some with a lag due to the long
buying cycle, and as efficiency programmes show results, leading to
EBITDAR margins expanding towards 15%.

Weak Coverage Metrics: Fitch projects weak coverage metrics for the
rating, with EBITDAR fixed charge coverage of around 2.0x, mapping
to the 'b' mid-point. This is mostly due to the high share of
leases and a fast-growing store network, affected by new stores
ramp up. A tightening coverage ratio would signal declining capital
returns due to weak execution of the business strategy, and could
put the ratings under pressure.

Cash-generative Operations, Capex-driven FCF: Pepco generates
adequate operating cash flow with the funds from operations (FFO)
margin projected to trend to 7% by FY26. However, due to higher
discretionary capex on expansion and store refurbishments, we
anticipate negative FCF over the next two years, before it turns
mildly positive (above 1%).

Based on its assessment of the sector and Pepco's corporate
strategy, Fitch believes all operating cash will likely be
reinvested into new stores, resulting in a mostly negative FCF
profile, albeit also bringing additional earnings. Accumulated cash
could be used for shareholder distributions if approved by the
board, and subject to financing documentation restrictions.

Adequate Leverage: Fitch views Pepco's leverage metrics as
adequate, with EBITDAR gross leverage estimated at around 4.5x over
the next two years, potentially improving towards 4.0x from FY25
due to mild profitability expansion. Fitch forecasts an additional
EUR1.6 billion lease debt by FY26, as we capitalise lease expenses,
in line with our methodology, using a weighted average 7.6x
multiple based on the country mix of Pepco's operations. We
estimate Pepco's guided net debt/EBITDA (pre-IFRS16) of 1.5x to be
comfortably achieved, although this does not provide material
protection as an increase in lease debt is not captured within this
guidance.

Resilient Business Profile: In Fitch's view, Pepco has a resilient
business profile benefiting from scale, leading market positions in
its core CEE markets with well-known brands, and a value offering
that should help protect LFL growth, even if some product
categories are affected by the decline in discretionary demand, and
limited fashion risk within adult-wear (around 15% of sales). It
has reasonably good and improving geographic diversification across
20 markets. The UK and Poland remain key markets (60% of FY22
sales).

Fitch believes Pepco balances the more discretionary but higher
gross margin and value offering within clothing & home under Pepco
brand with the less discretionary and lower margin FMCG offering
under the Poundland and Dealz brands. The lack of an online sales
channel may lead to the loss of some consumers that value
convenience above value, although this approach is not dissimilar
to other discounters.

DERIVATION SUMMARY

Fitch rates Pepco using its Non-Food Retail Navigator. Pepco's
business is broadly comparable with that of other Fitch-rated peers
in the food and non-food retail sectors.

Pepco has meaningful size but it is smaller (by revenue) than our
non-food retail rated peers, including Ceconomy AG (BB/Stable), the
largest electronics retailer in Europe, Marks and Spencer Group plc
(M&S, WD, BB+/Stable until November 2022) and Kingfisher plc
(BBB/Stable), the largest DIY group in the UK and Poland. Pepco
demonstrates stronger growth and higher profit margins, in
particular against Ceconomy, which benefits from being market
leader with a large share of revenues online, but suffers from low
margin amid price transparency in a broadly flat market.

Pepco has a smaller scale than European discounter Action
(unrated), similar to B&M European Value Retail S.A. (B&M, unrated)
and larger than Dutch Hema (unrated). Discounters are growing
strongly and demonstrate good profit margins.

Pepco has higher EBITDAR leverage (around 4.5x) than Kingfisher plc
(around 2x) and M&S (around 3x). Leverage is expected to be similar
to Ceconomy over the rating horizon.

Compared with its Fitch-rated food retail peers, including Bellis
Finco plc (ASDA, B+/Stable), WD FF Limited (Iceland, B/Negative)
and Market Holdco 3 Limited (Morrisons, B+/Stable), Pepco is
materially smaller in terms of scale (except Iceland), better
geographically diversified, with higher exposure to discretionary
spending than grocers. Pepco's profitability is higher than that of
food grocers who operate on thinner margins. Pepco is less levered
than these grocers, but has weaker coverage metrics than ASDA and
Morrisons due to a large part of their stores being freeholds.

Generic Approach to Instrument Ratings: Fitch has applied a generic
approach to senior secured debt instrument ratings and this results
in a one-notch uplift from IDR at 'BB+'/RR2, in line with Fitch's
Corporates Recovery Ratings and Instrument Ratings Criteria.

Ring-fencing from Steinhoff: Fitch rates Pepco on a standalone
basis amid insulated legal ring-fencing and porous to insulated
access and control, in line with Fitch's criteria. The Pepco group
does not guarantee or provide security to creditors lending above
Pepco and there is no cross default between the groups. There is an
established governance framework to regulate the relationship
between Pepco and the entities above, and to keep transactions in
the best interests of Pepco group and at arm's length. Dividend
distributions are not explicitly forbidden according to
documentation, but would require board approval and be limited
under debt covenants.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer:

- 500 new store openings per year for Pepco and 50 for
  Poundland/Dealz, in line with management's business plan, which
  will drive solid top line growth of 14% in FY23, followed by
  around 10-13% over the rating horizon

- EBITDAR margin to decline to around 13% in FY23, then recover to

  around 15% by FY26

- EBITDA margin around 7% in FY23-24, recovering towards 8.6% by
  FY26

- Small working capital outflows over the rating horizon from some

  planned improvements in working capital management. Increased  
  use of supply chain finance facility with half of it treated as
  debt (which is increasing from EUR100 million in FY22 to around
  EUR210 million in FY26), assuming that this is used to extend
  payables days

- Average annual capex of around at EUR370 million per year
  between FY23 and FY26, with material portion of it discretionary

  and relating to new store expansion and store refits

- No M&A and no dividends in the next four years

RATING SENSITIVITIES

Factors That Could, Individually Or Collectively, Lead To Positive
Rating Action/Upgrade

- Continued LFL sales growth along with successful expansion and
  ability to manage cost inflation while protecting profitability,

  leading to growth in EBITDAR towards EUR 1.25 billion

- FFO margin trending towards 10% and positive FCF post growth
  capex and dividends (if re-instated)

- EBITDAR gross leverage below 3.8x on a sustained basis combined
  with a maintained prudent financial policy

- EBITDAR fixed charge cover trending towards 2.5x on a sustained
  basis

Factors That Could, Individually Or Collectively, Lead To Negative
Rating Action/Downgrade

- LFL sales decline, loss of market share, unsuccessful expansion
  or inability to manage cost inflation leading to weaker
  profitability, and reduced deleveraging capacity with:

- EBITDAR gross leverage above 4.5x on a sustained basis

- EBITDAR fixed charge cover below 2.0x on a sustained basis

- Persistently negative or low visibility of FCF due to
  underperformance, continued accelerated expansion not yielding
  returns, or large shareholder distributions leading to weakened
  liquidity headroom.

LIQUIDITY AND DEBT STRUCTURE

Adequate Liquidity: As of 30 March 2023, Pepco had adequate
available liquidity, comprising reported cash of EUR260 million,
with a EUR102 million undrawn RCF of a total committed EUR190
million. Of the reported cash, Fitch restricts EUR125 million as
cash required for operations in its calculations. As part of the
refinancing transaction, Pepco has upsized its RCF to EUR390
million and reduced drawings under the RCF from the incremental
EUR75 million raised under the new notes, which further supports
liquidity.

Following the completion of the refinancing, Pepco benefits from
improved debt maturities with a EUR250 million term loan due in
2026 and the new EUR375 million senior secured notes, which
refinanced the existing EUR300 million term loan A, due in 2028.

ISSUER PROFILE

Pepco Group is a large-scale variety discounter operating across
Europe from around 4,000 stores in 20 countries in Europe, with its
two largest markets the UK and Poland.

ESG CONSIDERATIONS

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit-neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.


SHERWOOD PARENTCO: Fitch Affirms BB- LongTerm IDR, Outlook Stable
---------------------------------------------------------
UK
Fitch Affirms Sherwood Parentco Limited at 'BB-'; Outlook Stable
Thu 29 Jun, 2023 - 08:14 ET
Fitch Ratings - London - 29 Jun 2023:

Fitch Ratings has affirmed Sherwood Parentco Limited's (Arrow)
Long-Term Issuer Default Rating (IDR) at 'BB-' with Stable Outlook.
Sherwood Financing Plc's senior secured debt, guaranteed by Arrow
(among other Sherwood entities), has also been affirmed at 'BB-'.

Arrow is the parent company of Sherwood Acquisitions Limited, a
UK-based entity set up by TDR Capital LLC (and owned by investment
funds managed by TDR Capital LLC) to acquire Arrow Global Group, a
UK-based debt purchaser and investor in non-performing loans (NPLs)
and other non-core assets.

KEY RATING DRIVERS

The affirmation reflects Arrow's significant albeit improving
leverage, as well as its credible market positions in five markets
(UK, Portugal, Netherlands, Italy and Ireland). It also reflects
Arrow's 'integrated fund manager' business focusing on an
asset-light strategy through the development of a fund and
investment management business, which differentiates it from other
debt purchasers.

Leverage Constrains Rating: Arrow's Long-Term IDR is constrained by
high cash flow leverage, with a gross debt/adjusted EBITDA ratio as
calculated by Fitch of 4.7x at end-2022, improved from a high 5.6x
at end-2021.

Fitch expects leverage to further benefit from growing revenue in
the integrated fund management segment. Management targets net
leverage at 3.0x-3.5x in the medium term (4.4x at end-1Q23).
Similar to many European peers, Arrow's tangible equity is negative
following material inorganic growth. This is reflected in Fitch's
capitalisation and leverage assessment.

Shift to Low Balance-Sheet Usage: Arrow is transitioning from being
a conventional debt purchaser towards being primarily a manager of
funds investing in NPL portfolios and other distressed assets, as
well as the servicer of these assets. Under the revised business
model, own balance sheet usage becomes largely limited to
co-investments in funds and decreased to around 10% in the new
funds (ACO 2, AREO) from 25% of total fund size in the first fund
(ACO1). As a result, management expects annual purchases for
Arrow's own balance sheet to reduce to around GBP100million,
materially lower than 2022 (GBP181 million).

By end-1Q23 Arrow's total funds under management (FuM) had grown to
EUR7.9 billion. In Fitch's view, management's target of reaching
more than EUR10 billion of FuM by end-2025 remains sensitive to any
meaningful collection underperformance in existing funds, which are
still at an early stage of their lives.

Diversification of Income: Arrow's franchise (measured by both
estimated remaining collections and adjusted EBITDA) is narrower
than those of higher-rated peers and concentrated on a fairly small
number of markets. However, the company's integrated fund
management business, a capital-light business launched in 2019, has
shown continued fund-raising growth. Arrow largely targets smaller
and often off-market local transactions, which are less price
sensitive than more standard auction-led transactions

Long-dated Funding Profile: Arrow benefits from a fairly long-dated
funding profile (no bond maturities until 2026) and sound
contingent liquidity through a revolving credit facility of GBP285
million. EBITDA coverage ratio is adequate for the rating.

RATING SENSITIVITIES

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

- Inability to meet its medium-term target of net leverage (net
  debt/adjusted EBITDA) of 3.0x-3.5x, would put pressure on
  Arrow's ratings

- Material collection underperformance, in particular if leading
  to meaningful portfolio impairments, would be rating-negative. A

  material increase in Arrow's risk appetite or weakening of its
  risk or corporate governance would also put pressure on Arrow's
  ratings.

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

- Sustained improvement in Arrow's gross leverage ratio below 3.5x

  in conjunction with sound fund performance that facilitates
  ongoing investor support for fund investment.

DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS
SENIOR SECURED DEBT

As Arrow's senior secured notes are the company's main outstanding
debt class, Fitch has equalised the notes' ratings with the
Long-Term IDR, indicating average recoveries for the notes.

DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES

- A downgrade of the Long-Term IDR would likely be mirrored in a
  downgrade of the notes. In addition, worsening recovery
  expectations, for instance, through a larger layer of
  structurally senior debt, could lead Fitch to notch down the
  notes' rating from the Long-Term IDR

- An upgrade of the Long-Term IDR would likely be mirrored in an
  upgrade of the notes. In addition, improved recovery
  expectations, for instance, through a larger layer of junior
  debt, could lead Fitch to notch up the notes' rating from
  Arrow's Long-Term IDR

ESG CONSIDERATIONS

Arrow has an ESG Relevance Score of '4' for 'Financial
Transparency' due to the significance of internal modelling to
portfolio valuations and associated metrics such as estimated
remaining collections. However, this is a feature of the
debt-purchasing sector as a whole, and not specific to Arrow. This
has a moderately negative impact on the credit profile, and is
relevant to the rating in conjunction with other factors.

Unless otherwise disclosed in this section, the highest level of
ESG credit relevance is a score of '3'. This means ESG issues are
credit neutral or have only a minimal credit impact on the entity,
either due to their nature or the way in which they are being
managed by the entity.

QA WELD: Express Engineering Buys Assets Out of Administration
--------------------------------------------------------------
Business Sale reports that Gateshead engineering group Express
Engineering has expanded its offering in the sub-sea engineering
space after acquiring the assets of QA Weld Tech Limited out of
administration.

QA Weld Tech, which is based in Teesside, specialises in welding
and fabricating complex pipework for the offshore, nuclear, power
generation and petro-chemical markets.

According to Business Sale, Following a sustained period of
loss-making, the company appointed FRP Advisory's Steve Ross and
Allan Kelly as joint administrators.  Express Engineering
subsequently acquired the company's assets, including its base on
Middlesbrough's Riverside Industrial Park, plant and equipment, for
an undisclosed fee from the joint administrators, Business Sale
relates.

Express Engineering is based in the Team Valley and manufactures
and supplies subsea assemblies, subsea production systems and
connection systems for customers around the world.  The business,
which is backed by private equity firm LDC, says it will maintain
the Middlesbrough base and continue offering its services under QA
Weld Tech's existing brand.

Express added that the deal would expand its technical capabilities
and add further products to its specialist range, as well as
providing it with access to new markets and customers, Business
Sale states.  The buyer said that the acquisition would see 39 QA
Weld Tech staff transfer to the new entity within the group,
Business Sale notes.


[*] UK: "Zombie" Companies Wiped Out by Inflation Crisis
--------------------------------------------------------
Irina Anghel at Bloomberg News reports that Britain's so-called
"zombie" companies are being wiped out by the inflation crisis and
rising interest rates, according to the head of bankruptcy
specialist Begbies Traynor Group Plc.

"Over the next 18 months, we'll see virtually all of them finally
come to an end," Bloomberg quotes Ric Traynor, its executive
chairman, as saying in an interview.  Economists define zombies as
companies barely able to service their debts, but which have been
kept afloat by years of cheap borrowing costs.

Insolvencies across England and Wales have risen toward levels last
seen in 2009, Bloomberg discloses. According to Bloomberg, Mr.
Traynor said companies in construction, retail and hospitality were
particularly vulnerable in the months to come.

"We've seen an increase in activity for smaller companies over the
last year because they tend to be the first ones that are hit when
there's a problem," Bloomberg quotes Mr. Traynor as saying.  "We're
now moving into mid-market companies."

Firms are suffering on multiple fronts, as higher borrowing costs
and sticky inflation compound with weak demand from areas
vulnerable to discretionary spending, Bloomberg states.

Mr. Traynor said the UK is set for a "drawn-out" period of
corporate distress over the next two years, Bloomberg notes.



                           *********


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

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

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

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