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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 26, 2023, Vol. 24, No. 149

                           Headlines



F R A N C E

EN6 SAS: S&P Downgrades Long-Term ICR to 'B', Outlook Negative
SOLOCAL GROUP: Fitch Ups LT IDR to 'CC' on Interest Deferral Deal


G E R M A N Y

RAIN CARBON: Moody's Rates EUR390MM First Lien Term Loan 'Ba3'


I T A L Y

POP NPLS 2018: Moody's Cuts Rating on EUR426MM Cl. A Notes to Ba2


L U X E M B O U R G

CURIUM BIDCO: Fitch Rates EUR1.3BB Senior Secured Loan 'B+(EXP)'


S W I T Z E R L A N D

CREDIT SUISSE: UBS Agrees to Pay US$268.5MM Fines Over Archegos
UPC HOLDING: Fitch Affirms 'BB-' IDR & Alters Outlook to Negative


U K R A I N E

DTEK RENEWABLES: S&P Cuts ICR to 'SD' on Distressed Debt Exchange


U N I T E D   K I N G D O M

CITY AM: On Verge of Administration After Sale Efforts Fail
CONSTELLATION AUTOMOTIVE: abrdn Fund Marks GBP2M Loan at 33% Off
DOUGH & CO: Enters Liquidation Due to High Energy Bills
EGERTON LODGE: Enters Administration, Property Up for Sale
ICELAND BONDCO: Fitch Rates New GBP475M Sr. Secured Notes 'B+(EXP)'

ICELAND GROUP: S&P Alters Outlook to Stable, Affirms 'B' ICR
ICELAND VLNCO: Moody's Affirms B3 CFR & Alters Outlook to Positive
OVO GROUP: Shareholders Increase Stake After Challenging Year
R&W CIVIL: Bought Out of Administration by Octavius

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F R A N C E
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EN6 SAS: S&P Downgrades Long-Term ICR to 'B', Outlook Negative
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S&P Global Ratings lowered its long-term issuer credit rating on
EN6 SAS (Armor-IIMAK) and its issue rating on the company's EUR450
million senior secured term loan B to 'B' from 'B+'.

The negative outlook reflects the possibility of a downgrade in the
next 12 months if Armor-IIMAK's FFO cash interest coverage remains
substantially below 2.0x in 2024.

The downgrade reflects weaker-than expected sales and EBITDA in
2022 and bleak recovery prospects in 2023. Low demand for labels
(about 70% of Armor-IIMAK's sales) resulted in weaker-than-expected
S&P Global Ratings-adjusted EBITDA in 2022. S&P said, "We forecast
revenue and EBITDA will remain at similar levels in 2023 and expect
demand to recover only in the second half of the year or 2024. We
anticipate debt to EBITDA at 7.0x-7.5x at year-end 2023 (compared
with 7.2x in 2022)--well above our downgrade trigger (6.0x). We
assume that leverage will fall toward 6.5x by year-end 2024, driven
by a gradual recovery in demand for labelling applications."

S&P said, "We expect uncertainty in demand and high interest
expense will undermine FFO in 2023. Almost all of Armor-IIMAK's
debt has variable interest rates, but the company hedged almost 60%
of its interest rate exposure for 2023. We estimate cash interest
expense at EUR40 million-EUR45 million for the year. This is a
material increase from the EUR19 million in 2022, as the interest
payments on the EUR450 million term loan B will have a full-year
impact in 2023. Our forecast FFO to debt metrics (about 4% in 2023
and 7% in 2024) are well below our 10% downgrade trigger. Unless we
see a material recovery in demand (resulting in revenue and EBITDA
growth), we think the group's interest costs will remain a
significant burden to its cash generation.

"We forecast further negative S&P Global Ratings-adjusted free
operating cash flow (FOCF) for 2023. In 2022, S&P Global
Ratings-adjusted FOCF was negative EUR53 million, undermined by a
working capital outflow of EUR29 million and high expansionary
capital expenditure (capex; about EUR28 million). The working
capital outflow primarily related to an increase in inventory,
which reflected exceptional growth in stocks and higher input
costs. We forecast S&P Global Ratings-adjusted FOCF to remain
negative in 2023 (at about negative EUR15 million). The improvement
reflects lower working capital needs (EUR5 million outflow expected
for 2023, compared with a EUR29 million outflow in 2022), and lower
expansionary capex (by EUR9 million). A doubling in cash interest
expense will partially offset this. We expect S&P Global
Ratings-adjusted FOCF to turn positive (to EUR10 million) in 2024
as EBITDA improves and expansionary capex decreases.

Liquidity remains adequate. S&P believes that Armor-IIMAK's
liquidity remains supported by its cash balance, with EUR56.8
million available under its EUR85 million revolving credit facility
(RCF) and lack of material debt repayments until 2028 when the RCF
matures.

The negative outlook reflects the possibility of a downgrade in the
next 12 months if Armor-IIMAK's FFO cash interest coverage remains
substantially below 2.0x. This could be caused by a slower recovery
in demand or further interest expense increases.

S&P could lower the rating on the company if:

-- S&P's view on Armor-IIMAK's business risk profile deteriorated
because of, for instance, lower profitability or FOCF, resulting
from weak market conditions or high exceptional costs;

-- FFO cash interest coverage did not improve toward 2.0x by
2024;

-- Sustained FOCF was negative with limited prospects of a
positive turn;

-- Armor-IIMAK faced liquidity risks; or

-- S&P's assessment of the company's financial policy indicated an
elevated risk of increased leverage because of aggressive
shareholder actions, such as large debt-funded acquisitions or
dividend payments.

S&P could revise the outlook to stable if Armor-IIMAK's:

-- FFO cash interest coverage improved to above 2.0x sustainably;
and

-- FOCF improved materially and turned positive sustainably.

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

S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis of Armor-IIMAK. In our
view, financial-sponsor-owned companies that have highly leveraged
financial risk profiles tend to demonstrate corporate
decision-making that prioritizes the interests of the financial
sponsors. Typically, they have finite holding periods and focus on
maximizing shareholder returns.

"Environmental factors have an overall neutral influence on our
credit rating analysis. We consider that the low substitution risk
in Armor-IIMAK's substrates is positive. Still, we believe that the
exposure to plastic resins could lead to environmental and
regulatory risks."


SOLOCAL GROUP: Fitch Ups LT IDR to 'CC' on Interest Deferral Deal
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Fitch Ratings has upgraded SOLOCAL Group's Long-Term Issuer Default
Rating (IDR) to 'CC' on coupon deferral agreement, after having
downgraded it to 'RD' (Restricted Default) from 'C' on a failure to
cure its missed interest payment. In addition, Fitch has also
downgraded Solocal's senior secured debt to 'C' from 'CC' before
upgrading it to 'CCC-' with a Recovery Rating of 'RR3'.

The company has obtained the required majority bondholder consent
to defer its June 15 and September 15 coupons on its EUR176.7
million and EUR18.7 million floating-rate notes, which mature in
2025. Fitch views the uncured expiry of the original 30-day grace
period following the missed interest payment as a 'RD' and the
agreed payments deferral as a distressed debt exchange (DDE) as it
is a worsening of terms for noteholders.

The IDR of 'CC' reflects ongoing discussions with creditors about
Solocal's capital structure that are likely to result in a
restructuring or in further concessions that would be a worsening
of terms for noteholders and thus likely to be recognised as a
DDE.

KEY RATING DRIVERS

High Likelihood of Restructuring: Solocal has invited bondholders
to negotiations on its capital structure under the mandat ad-hoc
procedure. Discussions are likely to take place in September with
the company's new strategic plan at hand. Its interest payments are
deferred to September 30, before which Fitch expect an outcome to
be announced on its envisioned new capital structure or on any new
deferral agreements made with creditors. In the meantime,
management remains in place and operations are continuing.

Refinancing Risk Central: Refinancing risk on their revolving
credit facility (RCF) and bonds due in 2025 remains the main driver
of a potential restructuring. Solocal's access to capital markets
is likely disrupted given its failure to stabilise its business
profile and to consistently generate free cash flow (FCF) following
its 2020 restructuring. If refinancing is an option, creditors are
likely to require excessive interest rates to compensate the
company's high-risk profile, which would only further disrupt the
company's financial and operational profiles.

FCF Key to Growth: Under Fitch forecasts for Solocal in its current
capital structure, the company could continue to generate neutral
to negative FCF in the short term and have a minimum liquidity
buffer before debt repayment. However, to achieve a sustainable
market share position, scale and a stable financial profile,
Solocal would benefit from more financial flexibility through
higher FCF. This could allow the company to invest strategically
for growth and to be competitive in a highly dynamic market.

Debt Repayments Pressure Liquidity: Fitch estimates minimum cash
for running Solocal's operations at around EUR25 million. Debt
repayments of EUR4 million and EUR38 million in 2023 and 2024,
respectively, of its RCF and the BPI France loan would result in
insufficient liquidity headroom for 2024. Fitch therefore see high
execution risks over the next 12 months, which confirms the
likelihood of a debt restructuring.

RCF Maturity: Solocal's RCF, which expires in September 2023, is
fully drawn for EUR34 million and it has the option to make a full
cash reimbursement of the RCF. However, due to poorer trading and
following recent coupon payment deferral, Fitch believe it is
likely that Solocal will request lenders to accept a share-based
payment.

However, creditors are likely to reject this request and opt for an
extension of the maturity into 2024, as allowed by the financial
documentation. The payment of the RCF and its terms are likely to
be negotiated as part of the mandat ad hoc.

DERIVATION SUMMARY

Solocal's rating reflects a transitioning business model, in
particular in its shift to a subscription-based digital platform
from directories. Competition in digital advertising is fierce.
Changes to management and leading shareholders, and high salesforce
turnover add to execution risk.

Leverage is lower than other 'CCC' to 'C' category peers' since
Solocal's recent restructuring of its financial liabilities in
2020. However, it is at the maximum sustainable level given its
record of debt-to-equity conversions. Solocal's debt-to-equity
swaps also keep financial risk high, particularly in light of
limited refinancing alternatives.

Solocal's most direct comparable peer is Yell, part of the Hibu
group, which has a similar market position in the UK and is facing
similar operational and financial challenges. Comparisons can be
made between Solocal and specialised directories businesses such as
Speedster Bidco GMBH (Autoscout24, B/Stable) or online classifieds
media groups such as Adevinta ASA (BB+/Stable) and Traviata B.V.
(B/Stable).

Autoscout24 is more geographically diversified, and is better
positioned in its business niche, while Adevinta has materially
larger scale, with stronger profitability and cash generation,
underpinned by its greater diversification and strong eBay
classifieds brand.

Traviata, the owner of a minority stake in Axel Springer SE, also
has a stronger business model than Solocal, due to its larger
scale, greater diversification and stronger brands. These peers
have higher leverage metrics, but they are protected by stronger
barriers to entry and by a higher product criticality for its
customers, resulting in a higher debt capacity and lower
refinancing risk.

Fitch see similar reduction in leverage and comparable declines in
revenue and profitability to other post-DDE ratings in European
leveraged credits such as Subcalidora 1 S.a.r.l. (Imagina,
B/Stable). However, Imagina's competitive position is stronger in
its covered regions, with higher barriers to entry, although its
customer diversification remains weak.

KEY ASSUMPTIONS

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

-- Revenues to decrease 7% in 2023 and 4.8% in 2024 before
stabilising in 2025

-- EBITDA decreasing to below EUR75 million in 2023 and 2024
before slightly recovering in 2025

-- Average capex at around EUR30 million annually for 2023-2026

-- Average annual working-capital outflows of EUR20 million-EUR25
million for 2023-2026

-- Repayment of EUR4 million BPI loan due in 2023

-- Super senior facility prepayment of EUR34 million and EUR4
million of BPI loan repayment due in 2024

Key Recovery Assumptions

Fitch adopts a going-concern (GC) approach to assessing recoveries
for Solocal. This reflects the higher probability of a surviving
cash-generative business with GC enterprise value as the basis for
financial stakeholder recovery than liquidation in a default. Fitch
have assumed a 10% administrative claim.

Fitch expect Solocal to be potentially attractive to trade buyers,
particularly after the completion of its redundancy plan. Fitch
estimate a Fitch-defined GC EBITDA of EUR90 million, factoring in
the current capital structure, potential slow growth in the number
of clients, and a lower interest burden.

Fitch enterprise value/EBITDA is constant at 2.0x, considering
business-model pressures and below 50% recoveries for senior
secured loans after its restructuring in 2020.

Fitch factor in the outstanding super senior facility that ranks
ahead of the bonds and view the BPI France state-guaranteed loan as
unsecured.

Based on current metrics and assumptions, the waterfall analysis
generates a ranked recovery at 66%, representing ultimate recovery
prospects in the 'RR3' band for existing senior secured debt. This
indicates a 'CCC-' senior secured debt rating.

RATING SENSITIVITIES

Factors That Could, Individually or Collectively, Lead to an
Upgrade:

-- Fitch does not envisage to-date an upgrade before an overhaul
of the capital structure

Factors That Could, Individually or Collectively, Lead to a
Downgrade:

-- Failure to pay interest on the bonds due 30 September 2023

-- Entering into a formal bankruptcy procedure

-- Evidence of further worsening terms for noteholders resulting
in a DDE

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Minimal Liquidity: Fitch forecast Solocal's liquidity to be under
pressure in 2024 given an estimated EUR25 million cash buffer
following the repayment of its EUR34 million RCF due in September
2023, which Fitch expect to be extended to 2024. Liquidity may come
under additional pressure from deteriorating business conditions or
restructuring payments.

ISSUER PROFILE

Solocal (formerly PagesJaunes, rebranded in 2013) is a French
advertising company that provides digital content, websites and
media campaign services to customers and businesses on a local
basis.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

ESG CONSIDERATIONS

The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.



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G E R M A N Y
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RAIN CARBON: Moody's Rates EUR390MM First Lien Term Loan 'Ba3'
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Moody's Investors Service assigned a Ba3 rating to the amended &
extended October 2028 EUR390 million first-lien senior secured Euro
term loan facility of Rain Carbon GmbH, a wholly-owned subsidiary
of Rain Carbon Inc.'s ("RCI"). At the same time, Moody's affirmed
RCI's B2 corporate family rating, the Probability of Default Rating
of B2-PD, the Ba3 rating of its $260 million senior secured
revolving credit facility due 2027 and the B3 rating of its
existing second-lien senior secured notes due 2025. The ratings
outlook remains stable. Proceeds from the proposed Euro term loan
facility will be used to refinance the existing senior secured Euro
term facility of Rain Carbon GmbH and to pay for related
transaction fees and expenses. Ratings are subject to the review of
the final documentation and any future changes to the capital
structure with respect to the 1st lien and 2nd lien debt could have
an impact on the ratings of the debt instruments.

Affirmations:

Issuer: Rain Carbon Inc.

Corporate Family Rating, Affirmed B2

Probability of Default Rating, Affirmed B2-PD

Senior Secured Bank Credit Facility, Affirmed Ba3

Backed Senior Secured Second Lien Regular Bond/Debenture, Affirmed
B3

Assignments:

Issuer: Rain Carbon GmbH

Senior Secured First Lien Term Loan B, Assigned Ba3

Outlook Actions:

Issuer: Rain Carbon Inc.

Outlook, Remains Stable

Issuer: Rain Carbon GmbH

Outlook, Remains Stable

RATINGS RATIONALE

RCI's B2 CFR reflects its position as one of the leading global
producers of carbon-based and advanced materials products, which
form key raw materials for a broad range of industries. The rating
is constrained by its relatively low revenue base and significant
dependency on the cyclical and volatile aluminum industry with CPC
and CTP, which are critical ingredients in the aluminum smelting
process, accounting for 40-45% of the company's revenues. The
company also has a meaningful exposure to chemical and automotive
end-markets, mainly in Europe, through its Advanced Materials
segment. The rating also considers the impact of the restrictions
placed by the Indian government on the imports of petroleum coke
since 2018, which limit RCI's ability to ramp up its new
calcination plant to full capacity. The rating is supported by the
company's good liquidity position, diverse business profile that
allows it to service various end markets and geographic regions and
its strong relationships with key raw material suppliers and
customers.

As a result of materially higher prices for carbon and certain
advanced materials products, RCI generated very high EBITDA in 2022
and in the LTM ended March 31, 2023. Consequently, leverage
improved from 4.5x in 2021 to 2.8x in 2022 and 3x in the LTM. These
benefits, however, were substantially offset by higher inventory
costs driving working capital build-up in 2022, and the still
relatively low availability of anode quality low-sulphur GPC and
CTP, with the latter being a key feedstock in the production of
derivative coal tar distillation products. RCI's operating margins
typically expand during the periods of rising prices and the
related time lag between prices and input costs, which the company
refers to as "opportunity margin". Operating margins and EBITDA
typically decline during the periods of falling prices and the
reset of raw material costs to higher levels. Beneficially,
however, this margin contraction, is typically accompanied by a
material release in working capital and positive free cash flow
generation, which was evident Q1 2023 with RCI adding about $80
million to its cash balance by the end of the quarter.

As many other companies operating in the currently challenging
economic environment, RCI faces a number of operating and financial
risks. The company's has operations in Europe, which have been
negatively impacted by high energy prices, raw material costs and
lower volumes. In addition, the resets in realized prices and raw
materials costs, aluminum capacity curtailments in Europe and the
US and greater availability of CPC exported from China could lead
to lower volumes, realized prices and reduced profitability of both
segments. That said, the company's operations, particularly those
located in Europe, are expected to benefit from lower energy prices
as compared to 2022. Barring a material decline in demand from key
end markets or additional energy related facility closures or
capacity curtailments and adjusting for the divestment of RCI's
stake in Russian JV, Moody's expect the company to generate lower
EBITDA in 2023 and in 2024, as compared to 2022, and for leverage
to increase to 4-4.5x. Moody's also estimate that higher operating
cash flow will result in $100-150 million in positive FCF in the
next 12-18 months, which could be used for debt repayment.

The stable outlook reflects Moody's view that despite the
deteriorating macro environment, Rain Carbon will continue to
generate solid earnings and positive free cash flow, and will
maintain credit metrics and leverage profile commensurate with a B2
rating in mid-cycle and adverse commodity price scenarios. The
outlooks also presumes the company's will maintain its good
liquidity position.

RCI faces a number of ESG risks as a producer of carbon-based
products and a supplier of key input ingredients for the primary
aluminum industry. India's petcoke import restrictions were driven
by environmental concerns, specifically greenhouse gas emissions
associated with the use of petcoke as fuel. These restrictions have
materially impacted the company's operating and financial
performance despite the fact that the company's calciners in India
have scrubbing systems that remove at least 98% of the SO2
emissions. Furthermore, RCI's business model that is premised on
converting by-products from oil, petrochemical and steel industries
into raw materials for other industries that would otherwise be
disposed as waste or used as a highly carbon emissive fuel, is a
positive ESG consideration.

RCI had good liquidity as of March 31, 2023 supported by cash on
hand of $249 million and combined $186 million of availability
under the secured revolver maturing in 2027 and credit facilities
available to fund working capital needs at the company's Indian
operations. The company has recently upsized the RCF commitments by
$60 million to $260 million. Proforma the transaction and
considering the loss of cash held by the divested Russian JV,
Moody's estimates that RCI will have about $300 million in total
liquidity.

The Ba3 rating on the senior secured revolving credit facility and
the term loan reflects their priority with respect to claim on
collateral, ahead of the existing second lien notes, which are
rated B3 due to the preponderance of the first-lien debt in the new
capital structure. The RCF and the term loan are secured by
substantially all of the assets of the Company and its subsidiaries
on a joint and several basis except for subsidiaries incorporated
in India and Russia. The 2025 2nd lien notes are secured by
substantially all of the assets of the Company and are guaranteed
by the Company's subsidiaries incorporated in United States on a
joint and several basis.

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

An upgrade of RCI's ratings could be considered if Debt/EBITDA, as
adjusted, were expected to be sustained below 4.5x with
consistently positive free cash flows and good liquidity, and if
the recently completed growth projects operate as planned. A
downgrade would be considered if Debt/EBITDA, as adjusted by
Moody's, were expected to sustain above 5.5x, (CFO -- Dividends)/
Debt below 10% or if liquidity deteriorated.

Rain Carbon Inc. is an indirect wholly owned subsidiary of Rain
Industries Limited, a company incorporated in India. The company is
engaged in the business of manufacturing and sales of carbon
products and advanced materials, including calcined petroleum coke
(CPC), coal tar pitch (CTP), cogenerated energy, and other
derivatives and downstream products of the coal tar distillation
process. The company generated $2.5 billion in revenues during the
LTM ended March 31, 2023.

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



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POP NPLS 2018: Moody's Cuts Rating on EUR426MM Cl. A Notes to Ba2
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Moody's Investors Service has downgraded the ratings of two notes
in Pop NPLs 2018 S.r.l. ("Pop 2018"). This downgrade reflects lower
than anticipated cash-flows generated from the recovery process on
the non-performing loans (NPLs) and underhedging.

EUR426M Class A Notes, Downgraded to Ba2 (sf); previously on Jul
2, 2020 Confirmed at Baa3 (sf)

EUR50M Class B Notes, Downgraded to Caa3 (sf); previously on Nov
16, 2018 Assigned Caa2 (sf)

RATINGS RATIONALE

The rating action is prompted by lower than anticipated cash-flows
generated from the recovery process on the NPLs and underhedging.

Lower than anticipated cash-flows generated from the recovery
process on the NPLs:

As of March 2023 the Cumulative Collection Ratio based on
collections net of legal and procedural costs, was at 77.63%
meaning that collections are coming in at significantly lower
amounts than anticipated in the original Business Plan projection.
Indeed, through the March 31, 2023 collection period, nine
collection periods since closing, aggregate collections net of
legal and procedural costs and servicing fees were EUR209.94
million versus original business plan expectations of EUR270.43
million. Cumulative gross collections as per 2023 updated business
plan are 24.43% down from original business plan expectations. The
2023 updated business plan expects a total amount of future
collections lower than the outstanding amount of the Class A
Notes.

PV Cumulative Profitability Ratio, for which Moody's observe a
declining trend, stood at 106.90% as of March 2023, however it only
refers to closed positions while the time to process open positions
and the future collections on those remain to be seen.

In terms of the underlying portfolio, the reported GBV stood at
EUR1.21 billion as of March 2023 down from EUR1.58 billion at
closing. Borrowers are mainly corporates (around 71.40%) and the
underlying properties for secured positions, under Moody's
classification, are mostly concentrated in Lazio and Puglia (about
46%).

Moody's notes that the advance rate, the ratio between the size of
the most senior tranche in the transaction and its GBV, stood at
21.30% as of April 2023.

NPL transactions' cash flows depend on the timing and amount of
collections. Due to the current economic environment, Moody's has
considered additional stresses in its analysis, including a 6 to
12-months delay in the recovery timing.

Underhedging:

The transaction benefits from two interest rate caps with J.P.
Morgan SE (Aa1(cr), P-1 (cr)) acting as cap counterparty. On the
first cap the Issuer receives the difference, if positive, between
6-months EURIBOR and 0.10%. On the second cap the Issuer pays the
difference, if positive, between 6-months EURIBOR and strikes which
go from 0.50% up to 2.5% in 2029. The Class A notes' 6-months
EURIBOR is contractually capped to the same strikes level of the
second instrument.

The notional of the interest rate cap was determined at closing, it
was initially equal to the outstanding balance of the Class A notes
and reduced in consideration of the anticipation of notes'
amortization based on a pre-defined schedule. Given the Class A
notes have so far amortised at a slower pace than the scheduled
notional amount set out in the cap agreement, a portion of the
outstanding notes is unhedged. Scheduled notional for the next
period is EUR216.70 million while Class A notes outstanding balance
stands at EUR258.09 million. The deal was structured so that Class
B notes are unhedged. 6-months EURIBOR for last payment date was
2.12% as it was fixed 6 months before. But the rate for next
periods will be higher.

Moody's has taken into account the potential cost of the GACS
Guarantee within its cash flow modelling, while any potential
benefit from the guarantee for the senior Noteholders has not been
considered in its analysis.

The principal methodology used in these ratings was "Non-Performing
and Re-Performing Loan Securitizations Methodology" published in
July 2022.

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) the recovery process of the non-performing
loans producing significantly higher cash-flows in a shorter time
frame than expected; (2) improvements in the credit quality of the
transaction counterparties; and (3) a decrease in sovereign risk.

Factors or circumstances that could lead to a downgrade of the
ratings include: (1) significantly lower or slower cash-flows
generated from the recovery process on the non-performing loans due
to either a longer time for the courts to process the foreclosures
and bankruptcies, a change in economic conditions from Moody's
central scenario forecast or idiosyncratic performance factors. For
instance, should economic conditions be worse than forecasted and
the sale of the properties generate less cash-flows for the issuer
or take a longer time to sell the properties, all these factors
could result in a downgrade of the ratings; (2) deterioration in
the credit quality of the transaction counterparties; and (3)
increase in sovereign risk.



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L U X E M B O U R G
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CURIUM BIDCO: Fitch Rates EUR1.3BB Senior Secured Loan 'B+(EXP)'
----------------------------------------------------------------
Fitch Ratings has assigned Curium BidCo S.a.r.l.'s planned issuance
of around EUR1.3 billion of senior secured TLBs an expected rating
of 'B+(EXP)' with a Recovery Rating 'RR3'/56% following the
announcement of its upcoming leverage-neutral refinancing of the
capital structure. Upon completion of the transaction, Fitch
expects to withdraw the rating on the existing senior secured loans
and assign final ratings on the new TLB tranches.

Curium's 'B' Issuer Default Rating (IDR) is underpinned by its
solid positioning in the protected niche market for nuclear
medicine, which offers organic growth opportunities and
demonstrates high revenue defensibility and profitability. Rating
constraints are significant financial leverage, albeit gradually
declining, and the still-small size of the business compared to
wider healthcare peers.

The Stable Outlook on the IDR reflects steady profitable growth in
Fitch rating case to which Fitch attach moderate execution risks as
Curium prioritises in-house product development in the near term
over inorganic growth.

KEY RATING DRIVERS

Planned Refinancing Leverage Neutral: The planned refinancing,
which comprises euro and US dollar TLBs totalling around EUR1.3
billion, aims to push back debt maturities by about three years, to
July 2029. Fitch expect the margin on the TLBs to rise slightly,
raising estimated interest expense to EUR105 million over
2023-2026, from EUR95 million pre-transaction. Leverage metrics
remain unchanged and Fitch see the transaction as overall credit
neutral, with slightly higher interest expense and lower free cash
flow offset by the benefit of longer-dated debt maturities.

Protected Niche Market Positions: The ratings reflect Curium's
strong market position in the nuclear medicine market, where it has
an industry-leading geographical footprint and product range. Its
vertical integration allows it to have control from the sourcing of
radioactive substances to the distribution of products to end
users, underpinning a robust business model. However, the ratings
are affected by low product diversification and scale relative to
broader healthcare peers.

Defensive Organic Growth: Fitch rating case assumes revenue growth
of between 5% and 8% to 2025, driven by stable growth in Curium's
underlying portfolio alongside a contribution from in-house product
launches. Curium's top line has rebounded strongly from
COVID-disrupted 2020, with sales in 2021 and 2022 up by 15%-16%
each year, with radiotherapy in oncology treatments particularly
strong and a modest but growing contribution from product
development.

Sales growth in 2022 was also helped by currency movements (as the
US dollar strengthened against the euro as Curium's reporting
currency). Fitch view EBITDA margins of above 27% as strong for the
rating and reflecting the specialist and protected business model.

Deleveraging Capacity: Fitch rating case assumes gradually
improving headroom under the rating with total debt/EBITDA trending
towards 4.5x by 2026 from around 5.7x assumed for 2022. This is
driven by Fitch assumption of continued profitable organic growth,
supported by strong fundamentals, such as an ageing population and
increasing access to specialist care. Debt coverage is also aligned
with the rating with EBITDA/net interest at 2.5-3.0x in Fitch
rating case, reflecting the benefit of the group's interest rate
hedges.

Temporarily Depressed Cash Flows: Fitch rating case considers
Curium's decision to prioritise in-house product development over
inorganic growth in the near term, with a focus on four diagnostic
and therapeutic drugs. This will lead to increased capex of 9%-10%
of sales over the rating horizon including drug development costs,
depressing Fitch-calculated free cash flow (FCF) to low single
digits.

In-house Product Development Prioritised: Curium's pivot towards
in-house development, with greater uncertainty around timing and
success of product launches, increases its business risk profile
but also reduces financial risks associated with M&A. Overall,
Fitch see moderate execution risks as the company strategically
evolves and its in-house development centres on product development
and approvals, not research into new science.

High Barriers to Entry: The nuclear medicine industry exhibits very
high barriers to entry as strict regulatory approvals are required
from nuclear and medical agencies, as well as clearance at various
customs for transportation. Barriers of entry are also reinforced
by Curium's vertical integration.

Hazardous Materials Management Risks: Curium is exposed to the
production and transportation of radioactive materials, which are
central to its operations, and has led Fitch to assign an ESG
Relevance Score of '4'. Production of radioactive material leads to
contamination of the production sites, so Curium is obliged to
fully decommission and decontaminate sites when they are no longer
in use.

For more information on Curium's liquidity and debt structure and
Fitch rating derivation summary, please see 'Fitch Affirms Curium
BidCo at 'B'; Outlook Stable' published on April 26, 2023.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

-- Maintenance of a financial policy driving total debt/EBITDA
below 5.5x on a sustained basis

-- Better product and geographical diversification indicative of
successful operational integration and execution of acquisitions

-- Enhanced profitability evident in improved scale and pricing
power reflected in the FCF margin staying well above 5%Factors that
could, individually or collectively, lead to negative rating
action/downgrade:

-- Operational challenges or loss of contracts that would lead to
a stable decline in revenues eroding the EBITDA margin towards
25%;

-- Total debt/EBITDA sustained above 7.5x

-- Neutral to mildly positive FCF margin reflecting limited
organic deleveraging capabilities

-- Loss of regulatory approval relating to the handling/processing
of nuclear substances and/or key products in core markets (the US
and the EU)

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

DATE OF RELEVANT COMMITTEE

April 25, 2023

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.



=====================
S W I T Z E R L A N D
=====================

CREDIT SUISSE: UBS Agrees to Pay US$268.5MM Fines Over Archegos
---------------------------------------------------------------
Katanga Johnson and Myriam Balezou at Bloomberg News report that
UBS Group AG will pay a total of about US$387 million in fines
related to misconduct by Credit Suisse Group AG in its dealings
with Archegos Capital Management as the new owner of the collapsed
Swiss rival starts picking up its legal tab.

According to Bloomberg, in a consent order with the Federal
Reserve, UBS agreed to pay US$268.5 million for "unsafe and unsound
counterparty credit-risk management practices" at Credit Suisse,
which UBS acquired in June.  The Bank of England's Prudential
Regulation Authority fined the bank GBP87 million (US$112 million),
which it said was its largest penalty to date, Bloomberg relates.

Credit Suisse "failed to learn from past similar experiences and
had insufficiently addressed concerns previously raised by the
PRA," Bloomberg quotes the UK regulator as saying in a statement on
July 24.

UBS's acquisition of its stricken rival closed last month, handing
Chief Executive Officer Sergio Ermotti a potential windfall gain in
the tens of billions of dollars after the government-brokered
rescue, Bloomberg discloses.  At the same time, UBS has previously
guided that legal liabilities related to Credit Suisse could run to
as much as US$4 billion over 12 months, and asset mark-downs could
come in at some US$13 billion, Bloomberg states.

The Fed said Credit Suisse "lacked adequate governance, experienced
staff with sufficient stature, and sufficient data quality and
model-risk management to ensure that activities conducted with
counterparties were properly risk managed."

In addition to paying the fine, the bank must submit to regulators
a plan for sustainable governance and a risk-management framework,
among other things, Bloomberg notes.

Unlike other banks working with the family office that managed Bill
Hwang's fortune, Credit Suisse was slow to unwind its positions and
ended up with US$5.5 billion in losses related to that business in
2021.  UBS suffered a much smaller loss.

The fines wrap up one of many legal and regulatory issues that UBS
will aim to resolve after completing the purchase, Bloomberg
states.  The firm also faces a potential civil trial over a scandal
in Mozambique and scrutiny into dealings with Russian oligarchs,
Bloomberg relays.  US lawmakers last week also pushed Credit Suisse
to cooperate with a probe into allegations the bank concealed
information about accounts held by Nazis in the decades after World
War II, Bloomberg recounts.

UBS, as cited by Bloomberg, said that Credit Suisse would record a
provision tied to the matter in its second-quarter results, which
UBS would reflect in its purchase accounting for the deal.  


UPC HOLDING: Fitch Affirms 'BB-' IDR & Alters Outlook to Negative
-----------------------------------------------------------------
Fitch Ratings has revised UPC Holding BV's (UPC) Outlook to
Negative from Stable, while affirming its Long-Term Issuer Default
Rating (IDR) at 'BB-'.

The revision of the Outlook reflects Fitch expectation that UPC's
EBITDA net leverage will remain above Fitch downgrade threshold
till at least 2025. Leverage has been high following the
acquisition of Sunrise by UPC in 2020. EBITDA in 2023 will be lower
than Fitch previously expected, reflecting both the impact of high
inflation on the cost base and price discounts offered to legacy
UPC customers following its rebranding to Sunrise in 2022.

Slower-than-expected deleveraging or weaker-than-expected free cash
flow (FCF) generation may lead to a downgrade in the ratings.

KEY RATING DRIVERS

Leverage Higher for Longer: Fitch now believe EBITDA net leverage
will increase to 5.8x in 2023, instead of falling to 5.1x as
previously expected, before it deleverages from 2024. Leverage may
now remain above Fitch 5.0x EBITDA net leverage downgrade threshold
till at least 2025, two years longer than previously expected. The
Negative Outlook reflects that the pace of deleveraging following
the Sunrise acquisition will be slower than expected and that any
developments leading to deleveraging of less than 0.3x per year in
2024 and 2025 could result in a rating downgrade.

EBITDA Decline for 2023: In its 2023 market guidance, parent
company Liberty Global (LG) guided to a mid-to-single digit EBITDA
decline for UPC. This reflects the impact of high inflation, higher
marketing expenses and the 'right-pricing' of legacy UPC customers.
A portion of the legacy UPC customer base who were paying higher
prices were brought more in line with the price point for the
comparable package under the Sunrise brand.

Average revenue per user (ARPU) fell 5.4% year-on-year (yoy) at
1Q23 while fixed-line subscriber numbers were up 0.7% over the same
period. If UPC can maintain customer churn at low levels after its
UPC legacy discounting, its announced 4% price increase in 2H23
should support EBITDA growth in 2024.

Stable Swiss Market: Consumers in Switzerland are typically less
sensitive to price than other European markets. This makes network
quality an important factor in maintaining market share and reduces
the likelihood of aggressive pricing strategies seen recently in
markets like Spain and Italy. UPC is the second largest converged
fixed mobile operator by market share behind incumbent Swisscom and
ahead of challenger Salt. A well-converged customer base and
high-quality national network provide UPC some protection against
customer churn to Salt, but competition will likely limit ARPU
growth.

Cash-Generative Business Model: While Fitch expect 2023 EBITDA
margin pressures to lift EBITDA net leverage, FCF margins should be
in the high single digits before returning to low double digits by
2025. Fitch expect capex (excluding costs to capture synergies) to
be lower than peers' at around 16% of revenue between 2023 and
2026. This is because UPC already has a national gigabit-capable
fixed-line network through its own coaxial cable network covering
3.3 million homes and fiber optic wholesale agreements covering the
rest of Switzerland. High EBITDA margins and low capex provide the
company with strong liquidity and financial flexibility.

Debt Paydown Unlikely: UPC has fixed their interest rates using a
mixture of fixed-rate debt and interest-rate swaps. Debt is
long-dated and average fixed rates at 1Q23 were 2.99%, which is low
compared with current benchmark rates. Reported net leverage was
5.2x at 1Q23, which is just outside of LG's target range of 4x-5x
net debt/EBITDA. Strong FCF margins provide the company with the
flexibility to pay down debt ahead of 2025 though Fitch believe
this is unlikely. Synergies are expected to lower leverage and debt
is fixed at low rates making debt paydowns a potentially less
attractive use of cash for LG than other investing or financing
options.

Synergies to Drive Deleveraging: Fitch expect Fitch-defined EBITDA
margin to increase to 37.5% in 2024 from 36.6% in 2022 as
underlying margins stabilise and the remaining deal-related cost
savings are implemented. UPC is targeting total annualised synergy
savings of CHF325 million per year by 2025, of which two thirds
will feed into EBITDA. In 2023, savings are expected to come from
the implementation of digital subscriber line migration and
headcount reductions. Fitch expects a slower ramp-up in synergies
than management forecast but that they should still drive EBITDA
net leverage lower by at least 0.5x in total between 2023 and
2025.

DERIVATION SUMMARY

UPC's rating is positioned solidly within the leveraged telecom
peer group. Its most immediate peers are domestic competitor
Matterhorn Telecom Holding S.A. (BB-/Stable) and other LG cable
operations - VMED O2 UK Limited (BB-/Stable), Telenet Group Holding
N.V (BB-/Stable) and Virgin Media Ireland Limited (B+/Stable).
VodafoneZiggo Group B.V (B+/Stable) of the Netherlands, a joint
venture between LG and Vodafone Group plc (BBB/Positive), is
another benchmark.

With its strong fixed mobile convergence position post-Sunrise,
Fitch views UPC's profile as closely aligned with that of VMED O2
and Telenet in competitive positioning on convergence offering and
in larger scale. Compared with Matterhorn Telecom, UPC has higher
leverage capacity at the same rating given its stronger market
share across fixed and mobile, better service diversification with
less dependency on mobile and higher FCF.

KEY ASSUMPTIONS

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

-- Revenue to fall 3.1% y-o-y in 2023, before stabilising at
around 0.5%-1% growth to 2026

-- EBITDA margin excluding costs to capture synergies to fall to
35.4% in 2023 before gradually increasing to 38.8% by 2026, driven
by the impact of deal-related synergies

-- Capex excluding integration and synergy costs at 15%-17% of
revenue for 2023-2026

-- Working-capital cash outflows of around EUR30 million per year
for 2023-2026

-- Excess cash flows to be extracted to the parent company via
intercompany loan payments such that year-end cash is around EUR20
million-EUR30 million per year for 2023-2026

RATING SENSITIVITIES

Factors That Could, Individually or Collectively, Lead to an
Upgrade:

-- A firm commitment by UPC to a more conservative financial
policy for example, Fitch-defined net debt/EBITDA of 4.3x

-- Material improvement in operational performance as evident in
key performance indicatortrends, in particular reported net
customer additions/losses and broadband customer metrics

-- Cash flow from operations (CFO) less capex/gross debt to remain
consistently above 7.5%

Factors That Could, Individually or Collectively, Lead to a
Revision of the Outlook to Stable:

-- Fitch-defined net debt/EBITDA consistently below 5.0x

-- CFO less capex / gross debt consistently at or above 3%

Factors That Could, Individually or Collectively, Lead to a
Downgrade:

-- Fitch-defined net debt/EBITDA consistently above 5.0x, with an
expectation that deleveraging in 2024 and 2025 will be less than
0.3x per year

-- CFO less capex / gross debt consistently at or below 3%

-- Deterioration in performance of the Swiss cable operations, in
particular sustained loss of broadband customers

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Ample Liquidity: At end-1Q23, UPC had an unrestricted cash balance
of EUR5.3 million. The company reported a healthy FCF margin
(before shareholder distributions) at around 13% in 2022. Fitch
expect FCF margins (before shareholder distributions) of around
7%-11% during 2023 to 2026.

Its liquidity is further supported by long-dated maturities and an
outstanding revolving credit facility of EUR736.4 million, which
was undrawn at 1Q23. UPC has EUR243.7 million of vendor financing
debt falling due in 2023. Otherwise, it has no debt maturities
until 2028.The company has also hedged its floating-rate debt
facilities with derivative instruments.

ISSUER PROFILE

UPC is an LG-owned converged cable and mobile operator in
Switzerland and Slovakia.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

ESG CONSIDERATIONS

The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' 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. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.



=============
U K R A I N E
=============

DTEK RENEWABLES: S&P Cuts ICR to 'SD' on Distressed Debt Exchange
-----------------------------------------------------------------
S&P Global Ratings lowered its long-term foreign currency issuer
credit rating on DTEK Renewables to 'SD' (selective default) from
'CCC-'. S&P also lowered its issue rating on the senior unsecured
notes to 'D' (default) from 'CCC-'.

S&P said, "Our 'CCC-' long-term local currency issuer credit rating
on DTEK Renewables is unchanged and remains on CreditWatch with
negative implications, where we placed it on March 7, 2022.

We will evaluate the company's profile within the next two days.

"We lowered our foreign currency rating on DTEK Renewables
following its distressed debt exchange. In January 2023, Ornex
Ltd.--the Cyprus-registered subsidiary of DTEK
Renewables--announced a tender offer to buy up to EUR20 million of
its EUR325 million senior unsecured green bonds maturing in
November 2024. The transaction resulted in DTEK Renewables buying
EUR35.79 million of the green bonds for EUR14.98 million. The
buyback price was materially below par, at no more than 41% of the
bonds' face value and representing about 11% of the total bonds. As
a result, we view the exchange as distressed according to our
ratings definitions. We view this transaction as distressed rather
than opportunistic since, absent this exchange, there was a
realistic possibility of a conventional default on the 2024 notes
or other project-finance debt. This comes on the back of the
company's shrinking liquidity amid harsh operating conditions
stemming from the Russia-Ukraine conflict. DTEK Renewables does not
have any Ukrainian-hryvnia-denominated debt, hence the long-term
local currency rating is unchanged at 'CCC-', and remains on
CreditWatch negative.

"This is the second tender offer so far. DTEK Renewables executed
another offer in November 2022 when it bought back bonds with a
total face value of EUR8.6 million for EUR2.583 million. We did not
see this transaction as a distressed debt exchange, because we
considered the amount exchanged as minimal (that is, only 2.5% of
the total outstanding bond).

"We intend to review our issuer credit and issue ratings on DTEK
Renewables within the next two days. We understand that this
transaction optimizes the group's capital structure by reducing its
outstanding debt, thereby reducing leverage and avoiding a future
potential default."

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




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

CITY AM: On Verge of Administration After Sale Efforts Fail
-----------------------------------------------------------
James Warrington at The Telegraph reports that City AM is on the
brink of administration after its efforts to find a buyer in the
wake of the pandemic failed to bear fruit.

According to The Telegraph, the London freesheet, which has been
left reeling by repeated lockdowns and the legacy of home working,
is poised to call in administrators at BDO to begin an insolvency
process.

Bosses are now hoping to secure a pre-pack agreement, which would
see an immediate sale of all or parts of the company after it goes
into administration, The Telegraph discloses.

In an email to staff, seen by the Telegraph, editor Andy Silvester
said administration had always been a possibility, adding that the
paper was still in "advanced negotiations" with one potential
buyer.

He wrote: "I recognise this is unsettling news but I want you to
know that it is 'business as usual' for us and we are working night
and day to secure a future for City AM."

Earlier this month, the company said it had appointed FRP Advisory
to explore a sale after failing to attract new investment, The
Telegraph recounts.

City AM was a major victim of the pandemic as financial
professionals stopped commuting into the Square Mile, The Telegraph
states.  It moved to an online-only model in March 2020 and
remained out of print for 18 months, The Telegraph relays.

The business-focused paper has since struggled to regain its
previous audiences amid a shift to home working, The Telegraph
relates.  It currently reaches around 68,000 readers per day, down
by more than 10,000 from pre-pandemic numbers.

The title ceased printing on Fridays in January as it adapted to
new ways of working, The Telegraph recounts.  In October 2021, the
paper itself coined the acronym "TWATs" to describe employees who
only go into the office on Tuesdays, Wednesdays and Thursdays.

City AM has shifted its focus to digital output, with its website
attracting between 1.8 million and 2 million unique visitors per
month.

However, it has been left struggling with debts of GBP1.6 million
in 2021 and lacks the funds to invest, according to The Telegraph.

In a further blow, City AM has also been hit by a recent wave of
Tube and train strikes, as well as soaring newsprint and
distribution costs.

City AM is 50 percent owned by a consortium of Dutch investors,
while managing director Lawson Muncaster and chief executive Jens
Thorpe each hold 25%.


CONSTELLATION AUTOMOTIVE: abrdn Fund Marks GBP2M Loan at 33% Off
----------------------------------------------------------------
abrdn Income Credit Strategies Fund has marked its GBP2,000,000
loan extended to Constellation Automotive Ltd to market at
GBP1,335,297 or 67% of the outstanding amount, as of May 31, 2023,
according to a disclosure contained in abrdn Fund's Form N-CSR
report for the semi-annual period ended April 30, 2023, filed with
the Securities and Exchange Commission.

abrdn Fund is a participant in a Second Lien Term Loan B to
Constellation Automotive Ltd. The loan accrues interest at 11.43%
per annum. The loan matures on July 27, 2029.

abrdn Income Credit Strategies Fund is a Delaware statutory trust
registered under the Investment Company Act of 1940, as amended, as
a closed-end management investment company. The Fund commenced
operations on January 27, 2011.

Constellation Automotive Group Limited offers digital used car
marketplace. The Company offers used passenger cars, utility
vehicles, and trucks, as well as provide parts and accessories,
repairs and maintenance, finance, and insurance services. The
Company’s country of domicile is the United Kingdom. 


DOUGH & CO: Enters Liquidation Due to High Energy Bills
-------------------------------------------------------
Ben Robinson at East Anglian Daily Times reports that a pizza
restaurant has gone into liquidation but has vowed to keep its
branches in Suffolk open.

Documents on Companies House show Dough & Co restaurants in Sudbury
and Bury St Edmunds have been put into liquidation, East Anglian
Daily Times relates.

It comes as part of a company restructure due to high energy bills,
East Anglian Daily Time notes.

According to East Anglian Daily Times, a spokesman for the chain
said: "We have restructured our business due to high energy price
contracts and the restaurants will remain open with no changes."

Dough & Co has restaurants across Suffolk, including at Cardinal
Park in Ipswich.


EGERTON LODGE: Enters Administration, Property Up for Sale
----------------------------------------------------------
Nick Rennie at Melton Times reports that a prominent Melton nursing
home has gone into administration due to rising costs and a drop in
the number of residents following the Covid pandemic.

According to the Melton Times, the elderly people who lived at
Egerton Lodge, on Wilton Road, have been transferred to alternative
care homes and all staff have been made redundant.

The historic building, which was constructed in 1829 as a hunting
lodge for Thomas Egerton, the second Earl of Wilton, is now up for
sale, Melton Times discloses.

The administrators, Leonard Curtis, told the Melton Times in a
statement: "The company had been experiencing cashflow pressures
and was loss-making due to reduced occupancy rates following the
COVID-19 pandemic and increased inflationary costs.

"As a result of these difficulties, the directors took steps to
wind down the services at the home and consult with its employees.

"The company ceased to trade on July 3, 2023, following the
appointment of Hilary Pascoe and Andy John as Joint
Administrators.

"The company's workforce was immediately made redundant.

"All residents had been transferred to alternative service
providers prior to the appointment of the Joint Administrators.

"Christie & Co has been instructed to market the property for
sale."


ICELAND BONDCO: Fitch Rates New GBP475M Sr. Secured Notes 'B+(EXP)'
-------------------------------------------------------------------
Fitch Ratings has assigned Iceland Bondco PLC's launched GBP475
million equivalent issuance an expected senior secured rating of
'B+(EXP)' with a Recovery Rating of 'RR3'. The rating is aligned
with its existing senior secured instrument ratings.

Fitch revised the Outlook on WD FF Limited's (Iceland) 'B'
Long-Term Issuer Default Rating (IDR) to Stable from Negative on
July 20, 2023. This reflected an uplift in expected earnings from
savings and more clarity on energy costs leading to forecast around
6.5x EBITDAR gross leverage in the financial year ending March 2024
(FY24), meeting the rating sensitivity for a Stable Outlook.

Refinancing the debt at GBP75 million less is credit positive and
will reduce EBITDAR leverage to below 6.0x over the rating horizon,
which will be more aligned with the 'B' rating category. This will
lead to slightly better EBITDAR coverage ratio than if it was fully
refinanced.

The proceeds from the new senior secured notes will be fully
applied to part repayment of notes maturing in 2025. The new notes
will rank pari passu with existing senior secured notes, but behind
revolving credit facility. Assignment of a final rating is
contingent on completing the transaction in line with terms already
presented.

KEY RATING DRIVERS

Improved Leverage Headroom: Fitch estimate improved leverage
headroom under the 'B'/Stable IDR with EBITDAR gross leverage
projected to gradually reduce to around 6.0x in FY25 due to the
GBP75 million lower refinancing, and below 6.0x subsequently. This
leverage profile is more aligned with the 'B' rating category. The
rating case captures refinancing at GBP475 million, with GBP25
million repaid upon refinancing and GBP50 million in FY25 from
Iceland's comfortable cash position ahead of the maturity in March
2025.

Fitch expect average EBITDAR coverage at around 1.6x, which is
adequate for the rating, aided by lower debt. Fitch understand the
company plans to hedge the interest rate and currency exposure on
the floating euro-denominated portion of the new notes.

Expected EBITDA Recovery: Fitch forecast FY24 EBITDA at around
GBP150 million (after Fitch's GBP15 million deduction for leases)
up from GBP113 million in FY23. The uplift is due to continued
sales growth, benefiting from Iceland's value positioning,
reduction in energy cost, and savings that help offset cost
inflation. Fitch forecast of around GBP40 million EBITDA uplift on
FY23 prudently builds in some pressure on margin versus the guided
GBP50 million reduction from locked in energy cost in FY24.

Profit Pressures Managed: Fitch expect Iceland to continue to
benefit from various cost-saving measures to help offset cost
inflation. Iceland outperformed Fitch rating case in FY23 due to
cost savings and disposal of loss-making business in Ireland
(treated as discontinued). Generally, cost inflation is harder to
absorb for smaller-scale grocers such as Iceland that operate with
thinner EBITDA margins (2.9% in FY23) than large and more
diversified mainstream grocers (around 5%-6%). Energy costs are
over 95% locked in for FY24, and Fitch build in a further GBP15
million reduction in costs on the back of current market prices,
but this is yet to be locked in.

Cash-generative Business: Similar to other food retailers, Iceland
is a cash-generative business. Fitch expect neutral to positive
free cash flow (FCF) margin, nearing 1% in FY26, which is broadly
aligned with peers, and is reflected in the Stable Outlook. This is
after GBP40-55 million capex, of which only GBP15 million is
maintenance, and higher interest cost.

Limited Outflows From Restricted Group: Fitch rating case does not
capture any further material outflows to support, or any dividends
from its restaurant business as its trading recovers. The company
has guided about its intentions to reduce its GBP800 million debt
instead. Iceland has invested nearly GBP50 million in its non-core
restaurant business, which remains outside the restricted group.
Iceland initially up-streamed GBP31 million (3Q21), subsequently
funded its trading losses and now has repaid its GBP15 million bank
loan during FY23-24.

Value Positioning Benefits: Consumer focus on value amid living
cost pressures puts Iceland in a good position to gain market share
or at least hold on to it. Iceland is UK's second-largest frozen
food retailer after Tesco.

Iceland grew its sales during the global financial crisis and
slightly increased its share in the UK grocery market between 2008
and 2023, despite competitive pressures and the rapid growth of
discount stores. This was achieved by greater differentiation in
its product offering, improved pricing, investment in its stores
and formats, and improved brand positioning with regard to the
environment and sustainability. Fitch expect the UK food industry
to continue to have stiff competition

DERIVATION SUMMARY

Iceland's business risk profile, as a mostly UK-based specialist
food retailer, is constrained by the company's modest size and
lower diversification compared to that of other Fitch-rated
European food retailers, such as Tesco Plc (BBB-/Stable) and Bellis
Finco Plc (ASDA; B+/Stable) and Market Holdco 3 Ltd (Morrisons;
B+/Stable). All three peers have higher market share, larger scale,
and greater diversification than Iceland.

Fitch expect Iceland's EBITDAR leverage to reduce to around 6.5x in
FY24 from 7.6x in FY23 which is higher than other Fitch-rated UK
peers (Morrisons: from around 7.0x in FYE23 (year-end October) to
6.3x by FYE24; ASDA: from around 6.0x for 2023 to 5.0x by end-2024,
Tesco around 3.5x), which also benefit from stronger coverage
ratios.

Iceland is larger than Picard Bondco S.A. (B/Negative), a French
specialist food retailer also active in frozen foods, but its
profitability is materially weaker (EBITDAR margin of 6% versus
Picard's 17%). Picard operates mostly in the higher-margin premium
segment and benefits from strong brand awareness. Picard's
financial leverage is currently similar to Iceland's on EBITDAR
gross leverage basis. Fitch expect it to remain above 7.0x in
FY23-FY25, but it has better deleveraging capability and a stronger
business profile.

KEY ASSUMPTIONS

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

Retail revenue (excluding restaurants) growth of 4.0% in FY24
driven by consumer focus on value, Food Warehouse store openings
offset by core Iceland store closures. Growth of about 1.0%-1.6%
thereafter.

Four Food Warehouse openings in FY24, increasing to 20-25 stores
per year in the following years, partly offset by core Iceland
store closures of 10-20 per year

EBITDA margin to recover to 3.7% in FY24 and 4% thereafter, driven
by cost savings initiatives helping more than offset wage inflation
and some normalisation in energy cost.

Working capital outflow of GBP16 million in FY24 and neutral
thereafter.

Capex of GBP40 million in FY24 in line with management guidance,
increasing to GBP55 million to fund Warrington depot in FY25 and
then reverting to GBP40-50 million thereafter.

Refinancing of GBP550 million senior secured notes (SSN) in FY24
with GBP475 million equivalent SSN.

No dividends or other distributions over the rating horizon; FY24
includes the repayment of bank loan (GBP12.5 million) borrowed by
restaurant business

Fitch's Key Recovery Rating Assumptions:

Fitch's recovery analysis assumes that Iceland would be reorganised
as a going-concern in bankruptcy scenario rather than liquidated.

Fitch have assumed a 10% administrative claim.

Iceland's going-concern EBITDA assumption reflects the scale of the
company's business with new stores openings each year, improved
cost base with visibility on energy cost and disposed loss making
business in Ireland. Fitch have excluded the restaurant business
from Fitch going-concern EBITDA calculation as the lenders under
the rated debt instruments have no recourse to these cash flows.

The going-concern EBITDA estimate of GBP120 million reflects Fitch
view of a sustainable, post-reorganisation EBITDA upon which Fitch
base the enterprise valuation (EV), and excluding the loss-making
Irish operations following their disposal. The assumption also
reflects corrective measures taken in the reorganisation to offset
the adverse conditions that trigger its default, such as
cost-cutting efforts or a material business repositioning.

Fitch apply an EV multiple of 4.5x to the going-concern EBITDA to
calculate a post-reorganisation EV.

Iceland's RCF at GBP50 million is assumed to be fully drawn upon
default. The RCF is super-senior to the company's senior notes in
the debt waterfall.

On completion of the refinancing in line with the expected terms,
Fitch estimate the recovery of the planned GBP475 million senior
secured debt to remain in the 'RR3' Recovery Rating for the, with a
recovery percentage of 56%.

Until the refinancing completion, the recovery expectations for the
existing rated notes totaling GBP800 million remain unchanged,
'RR3' with a recovery percentage of 55%. Once the refinancing
completes and GBP25 million debt has been repaid, then recovery
percentage on existing notes will align with the new notes. Fitch
expect further improvement in recovery percentage, within 'RR3'
rating, once remaining GBP50 million outstanding amount of GBP550
million notes is repaid before its maturity in March 2025.

RATING SENSITIVITIES

Factors that could, individually or collectively, lead to positive
rating action/upgrade:

-- Fitch view an upgrade of the IDR as unlikely over the next two
years, unless Iceland adopts and follows a more conservative
financial policy.

-- Evidence of positive and profitable like-for-like sales growth
and the maintenance of stable market shares, leading to resilient
profitability with EBITDA margins increasing towards 5%, could lead
to positive rating action.

-- Total EBITDAR leverage below 5.5x on a sustained basis.

-- EBITDAR fixed-charge coverage above 2.0x on a sustained basis.

Factors that could, individually or collectively, lead to negative
rating action/downgrade:

-- Absence of advanced refinancing in the 12-15 months before the
major contractual maturity (March 2025)

-- Evidence of negative like-for-like sales growth, with loss of
market shares due to a competitive environment or to permanently
lower capex, or inability to pass on or to mitigate cost inflation,
leading to a prolonged and accelerating EBITDA margin erosion or
neutral FCF.

-- Tightening of liquidity amid unexpected cash outflows

-- EBITDAR leverage above 6.5x on a sustained basis.

-- EBITDAR fixed-charge coverage below 1.5x on a sustained basis.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Non-Financial Corporate
issuers have a best-case rating upgrade scenario (defined as the
99th percentile of rating transitions, measured in a positive
direction) of three notches over a three-year rating horizon; and a
worst-case rating downgrade scenario (defined as the 99th
percentile of rating transitions, measured in a negative direction)
of four notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are
based on historical performance.

LIQUIDITY AND DEBT STRUCTURE

Comfortable Liquidity: Fitch views Iceland's current liquidity as
comfortable, comprising around GBP139 million at end-FY23, which
excludes restricted GBP20 million for working-capital purposes
(Fitch's adjustment) along with an around GBP46 million undrawn
RCF. Iceland has used GBP12.5 million to repay debt borrowed by the
restaurant business after end-FY23.

The liquidity position will tighten as Iceland has chosen to
refinance GBP75 million less debt by raising GBP475 million senior
secured notes to part re-finance GBP550 million notes (maturing in
2025). Iceland plans to repay GBP25 million upon refinancing and
GBP50 million post completion of the refinancing from cash. Fitch
expect available liquidity to remain satisfactory at around GBP125
million at end-FY25 (after the restriction for working capital),
which includes a GBP50 million RCF that will be extended to 2027 as
part of the refinancing. After the refinancing, financial debt
maturities will be in 2027 and 2028.

ISSUER PROFILE

Iceland is a British food retailer specialising in frozen and
chilled food products at a low price point. It operates around
1,000 stores in the UK.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF
RATING

The principal sources of information used in the analysis are
described in the Applicable Criteria.

ICELAND GROUP: S&P Alters Outlook to Stable, Affirms 'B' ICR
------------------------------------------------------------
S&P Global Ratings revised the outlook to stable from negative and
affirmed its 'B' long-term issuer credit rating on WD FF Ltd.
(operating as Iceland Group), its 'BB' issue ratings on the amended
and extended super senior revolving credit facility (RCF), and 'B'
issue rating on the senior secured notes. S&P also assigned a 'B'
issue rating to the proposed GBP475 million-equivalent senior
secured notes.

The stable outlook reflects S&P's view that the group will continue
to deliver earnings growth amid resilient demand, with EBITDA
margins above 7% resulting in adjusted debt to EBITDA significantly
falling toward 4.5x-5.0x in 2024 from 5.7x in 2023, although
increasing cash interest expenses post refinancing will leave
EBITDAR coverage at about 1.5x-1.6x. The stable outlook also
reflects its expectation that the group will maintain adequate
liquidity.

Iceland Group has delivered earnings growth and EBITDA margins
above our expectations in 2023. S&P said, "The group reported
revenue of almost GBP4 billion, versus our initially forecast
GBP3.8 billion, and S&P Global Ratings-adjusted EBITDA margins of
6.4% versus our forecast of 5.3%-5.8%. This was thanks to strong
cost-saving initiatives and the ability to pass on price increases
to customers while navigating strong inflationary pressures and
higher energy bills. We expect the momentum to continue into 2024
thanks to strong demand for value and frozen food from customers.
In turn, we anticipate revenue will increase 5% and margins will
rise about 100 basis points (bps) following measures to lock in
energy prices for 2024 and benefits from cost-saving measures."

The proposed transaction will address the 2025 maturities, reducing
the refinancing risk. The group plans to partially refinance its
GBP550 million-equivalent senior secured notes and GBP50 million
super senior RCF, both due in 2025, extending the maturities to
2027. This includes repaying GBP25 million of senior secured debt
on day one and leaving GBP50 million at the original maturity of
March 2025--meaning it will refinance only GBP475
million-equivalent of senior secured notes. On completion, the
capital structure will comprise:

-- A GBP50 million super senior RCF due November 2027, which is
expected to be undrawn at transaction close;

-- The GBP50 million senior secured notes remaining at the
original maturity of March 2025;

-- The GBP475 million senior secured notes due December 2027; and

-- The proposed GBP250 million senior secured notes due May 2028.

The proposed transaction will address refinancing risk and enhance
liquidity. S&P's consider it leverage neutral to the group's
existing financial risk profile.

S&P said, "Following the refinancing, we expect higher interest
expense, lowering EBITDAR coverage toward 1.5x-1.6x We expect the
interest rate on the proposed notes to be significantly higher than
that on the existing 2025 senior secured notes. This would lead to
cash interest expenses (including lease interest expenses)
increasing about GBP10 million-GBP15 million in 2024 and GBP25
million-GBP30 million by 2025 versus 2023. Despite the increase in
EBITDA, EBITDAR coverage will remain subdued at about 1.5x-1.6x for
the forecast period. Higher cash interest expense will also affect
free operating cash flow (FOCF), with FOCF after leases remaining
at GBP0-GBP30 million over the next two fiscal years despite lower
capital expenditure (capex).

"The stable outlook reflects our view that the group will continue
to deliver earnings growth on the back of resilient demand for
value and frozen products, with a recovery in EBITDA margins of
above 7% in 2024 following measures to lock in energy costs and
other cost-savings initiatives. Under our base case, we anticipate
adjusted debt to EBITDA will significantly fall toward 4.5x-5.0x
from 5.7x in 2023. However, we expect increasing cash interest
expenses following the partial refinancing of the GBP550
million-equivalent notes, which will keep EBITDAR coverage at
1.5x-1.6x despite the increase in EBITDA. The stable outlook also
reflects our expectation that the group will maintain adequate
liquidity thanks to cash reserves and the fully available RCF."

S&P could take a negative rating action if Iceland Group's
operating performance weakens beyond its base case. In particular,
it could lower the ratings if:

-- Reported EBITDAR to cash interest plus rent coverage remains at
about 1.2x for a prolonged period;

-- FOCF after leases remains persistently negative; or

-- Liquidity weakens.

Although not S&P's expectation at this point, it could downgrade
the group if it makes changes to its capital structure that it
consider a shift in financial policy or deem akin to a distressed
debt exchange offer under its methodology.

Although unlikely in the next 12 months, S&P could raise the
ratings if Iceland Group outperforms its base case, posting strong
like-for-like sales and earnings growth, resulting in:

-- Strong positive FOCF after leases;

-- EBITDAR cash interest coverage of close to 2x; and

-- Adjusted debt to EBITDA comfortably remaining below 5.0x;

-- A positive rating action would also hinge on Iceland Group's
financial policy being consistent and supportive of such metrics in
the medium term.

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

S&P said, "Governance factors are now a moderately negative
consideration in our credit rating analysis of WD FF Ltd. from
negative previously. Management, headed by founder Sir Malcolm
Walker and Tarsem Dhaliwal, has full ownership of the company and
control over the board of directors. This, alongside a highly
leveraged capital structure, reflects corporate decision-making
that could result in the prioritization of the interests of the
controlling owners versus financial lenders, in our opinion.
However, we note the increasing level of transparency (for example,
the intention to move toward International Financial Reporting
Standards accounting by September 2023) and prioritization of the
group's strategic goals in the retail business."



ICELAND VLNCO: Moody's Affirms B3 CFR & Alters Outlook to Positive
------------------------------------------------------------------
Moody's Investors Service affirmed Iceland VLNCo Limited's (Iceland
or the company) ratings, including the B3 corporate family rating,
B3-PD probability of default rating and affirmed Iceland Bondco
plc's existing B3 backed senior secured ratings. Concurrently,
Moody's assigned a B3 rating to the proposed GBP475 million
(equivalent) backed senior secured notes issued by Iceland Bondco
plc. The outlook was changed to positive from negative.

The rating action reflects:

-- The expected improvement in Iceland's liquidity upon completion
of the extension of its debt maturities through the envisaged
issuance of GBP475 million equivalent new notes;

-- Improving prospects for the company operating performance,
driven by a broadly stable market share and ongoing cost reduction
initiatives;

-- Expectations that the company will reduce Moody's-adjusted debt
/ EBITDA towards 4.5x in the next 12-18 months, from 6.2x at March
2023;

The rating outlook could be changed back to negative if the
envisaged notes issuance is not successfully completed as
expected.

RATINGS RATIONALE

Iceland's B3 rating reflects i) the company's entrenched niche
position in the British grocery market, ii) its sizable and stable
share in frozen food products, iii) its ability to differentiate
from other discounters through product innovation and the provision
of home delivery and on-line services. The ratings also reflect the
company's i) high Moody's-adjusted leverage of 6.2x as of March
2023, although expected to reduce to well below 5x from continued
cost reduction measures and planned debt repayments; ii) a history
of declining operating margins; iii) a highly competitive British
grocery market iv) and risks of reduced demand or pricing power in
the event of a weaker economic backdrop.

On July 24, Iceland launched a new GBP475 million equivalent notes
issuance due in 2027 and a tender offer for GBP500 million of the
outstanding GBP550 million 4.625% secured notes due March 2025.
While GBP25 million of the existing notes will be repaid upon
completion of the planned transaction through available cash, a
GBP50 million stub will be redeemed at maturity. If executed, the
envisaged deal will significantly improve the company's liquidity
and remove any short-term refinancing risk. Moody's expects that
Iceland's key debt metrics will improve from currently weak levels
driven by ongoing cost reductions that are expected to more than
offset the higher interest expenses that will result from the
transaction.

Iceland's results for fiscal 2023 (ended March 24) were negatively
affected by higher energy and labour costs compared to the previous
fiscal year. The company generated Moody's adjusted EBITDA of
GBP258 million in fiscal 2023, resulting in leverage of 6.2x based
on Moody's adjusted gross debt of GBP1.6 billion at March 2023,
including an operating lease adjustment of GBP736 million. This
compares with 5.8x in fiscal 2022 and with 6.4x at the end of third
quarter of fiscal 2023. Moody's adjusted EBIT interest coverage of
0.9x was weak for the current rating at March 2023 but slightly
improved from 0.8x in the third quarter. Moody's interest expense
of GBP103 million in fiscal 2023 includes an adjustment to reflect
the interest component of the annual rent of GBP62 million.
Although still in positive territory, free cash flow was
negligible, leaving the company's cash balance broadly unchanged at
GBP161 million.

More positively, the prospects for Iceland's operating performance
are improving as the company has fully locked-in its energy costs
for fiscal 2024 and partly locked-in those for fiscal 2025 at more
favourable terms compared with fiscal 2023, with savings of around
GBP50 million in fiscal 2024 and GBP21 million in fiscal 2025. It
is also implementing additional measures to reduce store labour,
logistics, marketing and supply costs that are expected to result
in GBP33 million cost savings in fiscal 2024 and GBP50 million in
fiscal 2025. Moody's base case assumes 100% of the planned energy
cost savings in 2024 but only 75% of the remaining cost reduction
initiatives.

Moody's estimates leverage, as measured in terms of Moody's
adjusted gross debt to EBITDA, between 4.4x-4.5x, an EBIT to
(gross) interest cover ratio between 1.2x-1.4x, and free cash flows
in low-single digits in percentage of gross debt over the next
12-18 months.

As previously communicated, Iceland will change its reporting to
IFRS from FRS 102 for the statutory accounts for the year ending
March 2023. The full audited statutory accounts, under IFRS, will
be available in September 2023, including a bridge between both
accounting standards.

LIQUIDITY

If the planned transaction is executed based on the envisaged
terms, Iceland's next debt maturities will be the stub GBP50
million notes due March 2025, the GBP475 million new notes due
2027, as well as the GBP250 million 4.375% senior secured notes
outstanding, due in May 2028. Given that Moody's expect Iceland to
generate positive free cash flow over the next 12-18 months and a
GBP161 million cash balance at end March 2023, the company's
liquidity position will be considerably strengthened. As Iceland
intends to maintain a cash balance worth at least two years of
interest expenses, or around GBP120 million, Iceland will be in a
position to redeem the stub of the outstanding 4.625% notes in
March 2025 and pay down debt under the callable portion of the
envisaged new notes.

The company has also GBP50 million available under a revolving
credit facility maturing in February 2025, extendable to November
2027 as part of the transaction and currently undrawn.

STRUCTURAL CONSIDERATIONS

The B3 ratings on Iceland Bondco plc's backed senior secured
ratings, comprising the outstanding as well as the proposed notes
are in line with the CFR, reflecting the fact that they are
essentially the only financial instruments in the company's capital
structure and rank pari passu. The ranking is unaffected by the
presence of a super senior RCF because of its small size relative
to the total debt level.

The backed senior secured notes have a security package comprising
direct guarantees from material operating subsidiaries on a first
ranking basis, with security in the form of fixed and floating
charges over substantially all of the material property and assets,
including the share pledges, material bank accounts, receivables,
and fixed and current assets including material real estate
property.

ESG CONSIDERATIONS

Iceland is exposed to governance risks, including an aggressive
financial strategy reflected in a relatively high leverage and a
board of directors that is effectively controlled by the owning
family. As a specialty grocer, Iceland has moderate environmental
and social risk exposures mainly owing to carbon transition and
customer relations risks.

OUTLOOK

The positive outlook reflects the positive trajectory of the
company's key debt metrics over the next 12-18 months, with
leverage expected to reduce towards 4.5x and interest coverage
improving towards 1.5x. Also, the positive outlook reflects the
potential for higher-than-expected cost savings than currently
factored-in in Moody's base case and further potential debt
repayments under the callable portion of the envisaged notes
issue.

The envisaged refinancing is expected to remove any short-term
liquidity risk but failure to execute the transaction along the
envisaged terms could change the outlook back to negative. 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 i) the company continues to
maintain its share of the British grocery market with improving
operating margins; and ii) Moody's-adjusted leverage reduces
towards 4.5x on a sustainable basis; and iii) Moody's-adjusted EBIT
to interest cover ratio sustainably improves above 1.5x; and iv)
Moody's adjusted free cash flows to debt sustainably improves to
around 5% in percentage of Moody's adjusted gross debt; and v) the
company maintains a financial policy targeted at deleveraging, with
no material debt-funded acquisitions or shareholder distributions.

The ratings could be downgraded if i) revenues or EBITDA decline;
or ii) Moody's-adjusted gross debt/EBITDA fails to reduce below
5.5x; or iii) Moody's-adjusted EBIT cover of interest expenses
interest fails to improve at least above 1x; iv) or the company
generates negative free flows on a Moody's adjusted basis; or v) if
it undertakes material debt-funded acquisitions or shareholder
distributions.

LIST OF AFFECTED RATINGS

Affirmations:

Issuer: Iceland VLNCo Limited

Corporate Family Rating, Affirmed B3

Probability of Default Rating, Affirmed B3-PD

Issuer: Iceland Bondco plc

Backed Senior Secured Regular Bond/Debenture, Affirmed B3

Assignments:

Issuer: Iceland Bondco plc

Backed Senior Secured Regular Bond/Debenture, Assigned B3

Outlook Actions:

Issuer: Iceland Bondco plc

Outlook, Changed To Positive From Negative

Issuer: Iceland VLNCo Limited

Outlook, Changed To Positive From Negative

PRINCIPAL METHODOLOGY

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

PROFILE

Headquartered in Deeside, Flintshire, UK, Iceland VLNCo Limited is
the parent holding company of the Iceland Foods group. Iceland is a
UK retail grocer, which specialises in frozen and chilled foods,
alongside groceries. Since its creation in 1970, Iceland Foods has
expanded its reach in the UK to become a national operator with
total annual revenue of around GBP4.0 billion in fiscal 2023 (ended
March 24) and 818 core Iceland and 174 The Food Warehouse stores.

OVO GROUP: Shareholders Increase Stake After Challenging Year
-------------------------------------------------------------
Rachel Millard at The Financial Times reports that Ovo Group
shareholders have invested an extra GBP200 million into the owner
of Britain's third-largest energy supplier following a
"challenging" year for the sector in which the company's profits
shrank 90%.

The company said on July 21 that Mayfair Equity Partners and Morgan
Stanley Investment Management had increased their stake by an
undisclosed amount, the FT relates.

The company's unadjusted results showed a swing from a GBP335
million profit in 2021 to a GBP1.3 billion loss in 2022, the FT
discloses.

It put most of this down to a change in the value of energy it had
bought in advance to hedge its supply commitments, while saying
this had "no cash impact" and "will reverse in future periods when
customers use this energy", the FT states.

The figure highlights the huge volatility in commodity markets that
suppliers have grappled with since gas prices started surging in
summer 2021 as Russia started squeezing supplies to Europe in the
run-up to its invasion of Ukraine, the FT notes.

The FT reported in September that Ovo Group had feared breaching
its financial covenants in the months before the government stepped
in to support the sector, due to concerns about a rise in bad debts
if households could not afford to pay their bills.

According to the FT, in its financial report, Ovo Group said it
expected to "be compliant with financial covenants" even under a
further increase in bad debts.


R&W CIVIL: Bought Out of Administration by Octavius
---------------------------------------------------
Grant Prior at Construction Enquirer reports that Octavius
Infrastructure Ltd has bought the assets and most of the contracts
of R&W Civil Engineering.

The Enquirer revealed last week that R&W was in talks with a
potential buyer and had filed a notice of intention to appoint an
administrator.

Octavius has now finalised a deal for the firm after it went into
administration, The Enquirer discloses.

Private equity owned Octavius was formerly known as Osborne
Infrastructure.

According to The Enquirer, Octavius said the "acquisition aims to
ensure, wherever possible, continuity for R&W employees, customers,
and supply chain alike."

It added: "Octavius is committed to ensuring a smooth transition
for all, minimising disruption as far as is possible."

Latest accounts for R&W Civil Engineering for the year to March 31,
2022, show a turnover of GBP31.8 million generating a pre-tax
profit of GBP876,000, The Enquirer states.



                           *********


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

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

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

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