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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

          Tuesday, August 1, 2023, Vol. 24, No. 153

                           Headlines



A R M E N I A

ARMENIA: Fitch Upgrades Long Term IDR to 'BB-'; Outlook Stable


B E L G I U M

IDEAL STANDARD: Fitch Lowers Long Term IDR & 2026 Notes to 'CCC-'


G E R M A N Y

EUROPEAN MEDCO 3: Moody's Affirms 'B2' CFR, Alters Outlook to Neg.
SC GERMANY 2020-1: Moody's Hikes Rating on EUR45MM F Notes from B2


I R E L A N D

ACCUNIA EUROPEAN I: Fitch Affirms 'B+sf' Rating on Class F Notes
BARRYROE OFFSHORE: Judge Approves Examinership Application
METRON STORE: Iceland Gorey Outlet Shut Down


I T A L Y

IFIS NPL 2021-1: Moody's Cuts Rating on EUR74.4MM B Notes to Caa2


L U X E M B O U R G

ADVANZIA BANK: Moody's Affirms 'Ba1' Deposit & Issuer Ratings


S P A I N

AERNNOVA AEROSPACE: Moody's Affirms 'B3' CFR, Outlook Now Stable


S W E D E N

SAMHALLSBYGGNADSBOLAGET: S&P Cuts LT ICR to 'CCC+/C', Outlook Neg.


U N I T E D   K I N G D O M

AZURE FINANCE NO. 2: S&P Affirms 'CCC+(sf)' Rating on F-Dfrd Notes
CLARKS: To Close Fareham Shopping Centre Store on Aug. 5
PETERBOROUGH UNITED: At Risk of Administration if Debt Not Repaid
WOODFORD EQUITY: Investors May Get Payments as Early as 2024

                           - - - - -


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A R M E N I A
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ARMENIA: Fitch Upgrades Long Term IDR to 'BB-'; Outlook Stable
--------------------------------------------------------------
Fitch Ratings has upgraded Armenia's Long-Term Foreign-Currency
Issuer Default Rating (IDR) to 'BB-' from 'B+'. The Outlook is
Stable.

KEY RATING DRIVERS

The upgrade of the IDR reflects the following key rating drivers
and their relative weights:

High

Solid Economic Growth: Armenia has had a strong rebound from
successive shocks in recent years since its downgrade in 2020, and
Fitch expects this dynamism to continue in light of an
extraordinary inflow of migrants. Since the start of the Ukraine
conflict in 2022, an estimated 50,000-65,000 immigrants (equivalent
to 2.2% of Armenia's pre-conflict population) from Russia, Ukraine
and Belarus have settled in the country. This supported strong
growth of 12.6% in 2022, and Fitch expects the economy to grow by
7.2% in 2023, 5.9% in 2024 and 4.5% in 2025.

Consumption will remain solid while the outlook for
goods-and-services exports is also positive despite a strong
appreciation of the Armenian dram, mainly due to a resurgence in
tourism and re-exports to Russia. If current economic trends
continue, Armenia's already favourable medium-term potential growth
(estimated at 4.5%) could receive a further boost from expansion of
the labour force and improvements in productivity. Fitch expects
income per capita (at market exchange rates) to nearly double from
2021 levels by 2025.

Debt Stabilising at Low Level: Government debt/GDP fell sharply to
46.7% in 2022 from 60.2% in 2021 due mainly to currency
appreciation, but also the strong nominal GDP rebound and fiscal
consolidation. Fitch expects stabilisation at around 44.6% in
2023-25, below its pre-pandemic 2019 level of 53.7% and the current
'BB' median of 54.1%. The share of FX-denominated debt of 60.5% as
of 1Q23 is above the 'BB' median of 55%, although this has declined
from 71.2% at end-2021 due to sharp dram appreciation as well a
shift to greater local borrowing.

Risks to debt dynamics are mitigated by the relatively large share
of concessional debt, and the high proportion of fixed rate debt
(84.1% as of May).

Medium

Stable Fiscal Performance: Fitch expects that robust nominal
economic growth and higher spending will result in a moderate
increase in the general government deficit (cash basis) to 2.5% of
GDP, from 2.2% in 2022. Fitch's forecast is more optimistic than
the government's expectation of a deficit of 2.9%, given the
agency's higher growth projection, and slightly more conservative
view of capex execution. Fitch expects the deficit to widen to an
average of 3% of GDP in 2024-25.

Improving External Balance Sheet: The current account posted a
surplus of 0.8% of GDP in 2022 (2021: deficit of 3.7%) as a result
of solid demand for services and goods exports and money transfers
(including remittances). Fitch expect the current account to fall
back into a deficit of 1.1% of GDP on average in 2023-2025 on
strong domestic demand, but remain below historical averages in
light of these positive factors. The stronger external position
reduced net external debt to 24.6% of GDP in 2022 from 44.5% in
2021, and Fitch expect a further decline to 16.1% of GDP by 2025,
in line with peer medians. The external liquidity ratio is expected
to peak at about 150% in 2024.

There are some inherent risks from high reliance on the Russian
market (49% of exports and 25% of imports in January-May 2023),
although in the short term, Armenia will benefit from the sharp
increase in re-exports to the country that is occurring as a result
of closure of other trade routes to Russia due to sanctions.

Armenia's 'BB-' IDRs also reflect the following key rating
drivers:

Rating Fundamentals: Armenia's 'BB-' ratings are supported by a
robust macroeconomic and fiscal policy framework, and credible
commitment to structural reforms, and favourable per capita GDP.
These factors are balanced against a high share of
foreign-currency-denominated public debt, and relatively high
(albeit reducing) financial dollarisation. Governance scores are
slightly below the 'BB' median, and capture heightened geopolitical
risks emanating from tensions with Azerbaijan.

Rising Geopolitical Risks: Fitch considers geopolitical risks from
Azerbaijan to have increased since the start of the year. As of
July, a seven-month long Azerbaijani blockade of the Lachin
Corridor in the disputed Nagorno-Karabakh region is ongoing, and
there have been multiple deadly military clashes on the border.
Peace talks between the two countries continue, but in Fitch view,
are unlikely to yield a lasting peace agreement in the absence of
territorial adjustments that may be politically difficult for
Armenia to accept.

Fitch believes that in the event of a military conflict with
Azerbaijan over Nagorno-Karabakh, fighting will largely be limited
to the disputed region, and broader macroeconomic implications for
Armenia will be limited.

Lower Inflation, Strong Currency: Sharp increases in money
transfers and movement of migrants from Russia have contributed to
a sustained strengthening of the dram since mid-2022. The strong
dram and the easing of global commodity prices caused inflation to
fall into negative territory in June (-0.5% yoy) from a peak of
8.1% in January-February. Core inflation is also declining, from an
average of 8% in 1Q23 to 1.5% yoy in June, notwithstanding strong
wage growth (18% yoy as of May 2023), reducing concerns over
economic overheating. Fitch expects the dram to moderately
depreciate in 2023-24, albeit still to levels stronger than before
the start of the Ukraine conflict.

Solid External Creditor Support: Armenia benefits from strong
support and technical assistance from a range of multilateral and
bilateral creditors. As of May 2023, an estimated 78% of external
public debt was owed to official lenders, offering favourable
financing conditions. Armenia is also the beneficiary of a 36-month
USD172 million stand-by arrangement with the IMF, although
authorities are currently treating this as precautionary.

Stable, Dollarised Banking Sector: The Armenian banking sector has
favourable profitability (return on equity of 18%), asset quality
(non-performing loan ratio of 2.6%) and capitalisation (Tier 1
capital ratio of 18.7% as of May). Deposit dollarisation levels
have been stable, at 52.3% as of May 2023, while loan dollarisation
declined slightly to 34.8% as of May.

There are signs of overheating in the property market, with
residential property prices rising by an average of 10% yoy in
1H23, owing mainly to the heightened demand from the population
surge. However, Fitch sees risks of a disorderly correction as
relatively low, and any spill over on the broader economy will
likely be limited, given strong household and corporate balance
sheets. Banks have adequate dram and US dollar liquidity, and a
destabilising outflow of deposits is not seen as likely.

ESG - Governance: Armenia has an ESG Relevance Score (RS) of '5' &
'5[+]' respectively for both Political Stability and Rights and for
the Rule of Law, Institutional and Regulatory Quality and Control
of Corruption. Theses scores reflect the high weight that the World
Bank Governance Indicators (WBGI) have in Fitch proprietary
Sovereign Rating Model. Armenia has a medium WBGI ranking at the
47th percentile, reflecting a moderate level of rights for
participation in the political process, moderate institutional
capacity and level of corruption, and established rule of law.
Armenia scores poorly on Political Stability and Absence of
Violence, reflecting high geopolitical risks arising from a
territorial dispute with Azerbaijan.

RATING SENSITIVITIES

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

-- Structural/Macro: Materialisation of geopolitical risks that
could undermine growth and financial stability.

-- External Finances: External shocks that result in a sizeable
decline in international reserves or increase in current account
deficits.

-- Public Finances: A substantial increase of general government
debt/GDP, particularly due to a slowdown in growth or sharp fiscal
loosening.

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

-- Macro: Increased confidence in durability of high growth rates
relative to rating peers that results in a sustained increase in
GDP per capita.

-- Public Finances: Fiscal consolidation that supports a decline
in general government debt/GDP, and deepening of local-currency
funding sources that reduces the FX proportion of government debt.

-- Structural: A marked and durable reduction in geopolitical
risks.

SOVEREIGN RATING MODEL (SRM) AND QUALITATIVE OVERLAY (QO)

Fitch's proprietary SRM assigns Armenia a score equivalent to a
rating of 'BB' on the Long-Term Foreign-Currency (LT FC) IDR
scale.

Fitch's sovereign rating committee adjusted the output from the SRM
to arrive at the final LT FC IDR by applying its QO, relative to
SRM data and output, as follows:

-- Macro: -1 notch to offset the large improvement in several SRM
variables resulting from the appreciation of the dram in 2022-2023,
which renders them sensitive to a potential reversal of this trend,
as well as lingering uncertainties about the longer-term
macroeconomic benefits emanating from capital and migration flows
into Armenia.

Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centred
averages, including one year of forecasts, to produce a score
equivalent to a LT FC IDR. Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within Fitch
criteria that are not fully quantifiable and/or not fully reflected
in the SRM.

Country Ceiling

The Country Ceiling for Armenia is 'BB-', 1 notch above the LT FC
IDR. This reflects moderate constraints and incentives, relative to
the IDR, against capital or exchange controls being imposed that
would prevent or significantly impede the private sector from
converting local currency into foreign currency and transferring
the proceeds to non-resident creditors to service debt payments.

Fitch's Country Ceiling Model produced a starting point uplift of
+1 notch above the IDR. Fitch's rating committee did not apply a
qualitative adjustment to the model result.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Sovereigns, Public Finance
and Infrastructure 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 three 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.

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

Armenia has an ESG Relevance Score of '5' for Political Stability
and Rights as World Bank Governance Indicators have the highest
weight in Fitch's SRM and are therefore highly relevant to the
rating and a key rating driver with a high weight. As Armenia has a
percentile rank below 50 for the respective Governance Indicators,
this has a negative impact on the credit profile.

Armenia has an ESG Relevance Score of '5[+]' for Rule of Law,
Institutional & Regulatory Quality and Control of Corruption as
World Bank Governance Indicators have the highest weight in Fitch's
SRM and are therefore highly relevant to the rating and a key
rating driver with a high weight. As Armenia has a percentile rank
below 50 for the respective Governance Indicators, this has a
negative impact on the credit profile.

Armenia has an ESG Relevance Score of '4' for Human Rights and
Political Freedoms as the Voice and Accountability pillar of the
World Bank Governance Indicators is relevant to the rating and a
rating driver. As Armenia has a percentile rank below 50 for the
respective Governance Indicator, this has a negative impact on the
credit profile.

Armenia has an ESG Relevance Score of '4[+]' for Creditor Rights as
willingness to service and repay debt is relevant to the rating and
is a rating driver for Armenia, as for all sovereigns. As Armenia
has a track record of 20+ years without a restructuring of public
debt and captured in Fitch SRM variable, this has a positive impact
on the credit profile.

Except for the matters discussed above, the highest level of ESG
credit relevance, if present, 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 to the way in which they
are being managed by the entity.



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B E L G I U M
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IDEAL STANDARD: Fitch Lowers Long Term IDR & 2026 Notes to 'CCC-'
-----------------------------------------------------------------
Fitch Ratings has downgraded Ideal Standard International SA's (IS)
Long-Term Issuer Default Rating (IDR) to 'CCC-' from 'CCC+'
following a proposed exchange of its EUR325 million senior secured
bonds due 2026 for new notes. The 2026 notes have been downgraded
to 'CCC-' from 'CCC+ ' and their Recovery Rating remains at 'RR4'.

The downgrade reflects Fitch's view that the proposed tender offer
would be a distressed debt exchange (DDE), as existing bondholders
face a substantial reduction in the terms of the bonds whether or
not they consent to their exchange. The RWN reflects material
uncertainty over completion of the DDE in case the minimum
acceptance level is not met.

Fitch would downgrade the IDR and 2026 notes to 'C' to reflect the
distressed debt exchange once notified of majority consent for the
exchange.

KEY RATING DRIVERS

Tender Offer Step Towards DDE: Fitch views the proposed exchange as
a DDE as bondholders must choose between a material reduction in
terms, or accept a less-than-par redemption in the event of a
change of control under the new notes. Bondholders that do not
accept the exchange may lose their seniority in the capital
structure and their covenant protections stripped. Fitch believes
that the somewhat coercive nature of this exchange highlights the
limited financial flexibility profile of the company to refinance
its 2026 maturities without a default.

Fitch believes that the instrument rating of existing notes may be
notched down further after it has assessed the seniority of new
notes based on the final capital structure post DDE.

Material Reduction in Terms: Bondholders not consenting to
participate in the tender risk a dilution in their existing
collateral and certain covenants. Following the tender, should a
majority of bondholders consent to the transaction, any bonds not
tendered would be stripped of its restrictive covenants, ranked
junior to the new notes and de-listed from their existing
exchanges.

Default Very Likely If Sold: Fitch believes that if IS is sold, the
activation of the change of control redemption clause would almost
certainly result in a default under the existing notes, based on
Fitch's going-concern valuation. Further, the new notes would only
offer substantially lower than par redemption value, which would be
an automatic default under Fitch's criteria.

Financial Flexibility Diminished: Restructurings and recent
inflationary pressure have dented IS's liquidity and financial
flexibility. Free cash flow (FCF) in 2022 was a negative EUR97
million, slightly worse than Fitch's expectations of EUR82 million
outflow. Fitch forecasts negative FCF of EUR70 million in 2023-2024
as higher interest costs erode EBITDA. This apart, its working
capital was still negative in 1Q23 as some rebates led to an
increase in its working-capital borrowings, including a revolving
credit facility (RCF), factoring and other facilities. IS has
raised new funding from banks, primarily in Bulgaria, and sales
lease-back agreement to cover imminent cash needs.

Eroded Margins: Fitch expects IS's EBITDA margins to deteriorate to
6.7% in 2023, from 8.4% in 2022, due to lower volumes and higher
raw materials and energy prices. In 1Q23, IS's EBITDA margins were
5.2%, the lowest for any quarter in the past three years as it
hedged raw materials and energy prices at higher levels. While IS's
price increases in 4Q22 did not sufficiently support 1Q23 margins
they should provide support in the remaining quarters of 2023.
Fitch forecast a gradual increase in margins in 2024 and 2025, due
to expectations of muted additional inflation over the rating
horizon.

Volumes Slowing: Fitch expect volume declines as new construction
activity, in particular residential projects, slows. IS will see
lower volumes but its large share of non-residential projects, for
example, schools, hotels and hospitals, will provide some support.
Fitch forecast a low, single-digit rise in revenues due to higher
prices but declining volumes.

DERIVATION SUMMARY

IS's ratings reflect its proposed exchange offer for the senior
secured notes due on June 2026, which would result in a substantial
reduction in terms for the existing bondholders.

KEY ASSUMPTIONS

-- Revenue in 2023 to remain in line with 2022 on lower volumes,
before growing at low single digits to 2026

-- EBITDA margin of 6.5%-7% for 2023, increasing gradually to 8.5%
by 2026

-- Capex at 3.6% of sales in 2023 and then remaining at 3%-3.5% in
2024-2026

-- Negative FCF margin for 2024-2026

-- No dividends or M&As to 2026

Key Recovery Assumptions:

-- The recovery analysis assumes that IS would be reorganised as a
going concern in bankruptcy, rather than liquidated

-- A 10% administrative claim

-- Fitch estimate a going-concern EBITDA of EUR55 million,
reflecting Fitch's view of a sustainable and post-reorganisation
EBITDA level, and which compares well with EBITDA reported in 2018
when the company declared an event of default under its 2014 senior
secured notes. The going-concern enterprise value is sufficient to
cover interest expenses, taxes, pension liabilities and mandatory
capex.

-- Fitch applies a distressed EBITDA multiple of 4.5x to calculate
a going-concern enterprise value. The multiple compares well with
other Fitch-rated building products companies with EBITDA multiples
in the 4.5x-5.5x range

-- Fitch assume its EUR15 million RCF to be fully drawn on
default. The local credit facilities at non-guarantor level
(facilities in MENA and Bulgaria) are structurally senior to its
super senior RCF, factoring facilities as well as to the EUR325
million senior secured notes in the waterfall.

-- These assumptions result in a recovery rate for the senior
secured instrument rating within the 'RR4' range, resulting in the
debt rating being in line with the IDR. The principal interest
waterfall analysis output percentage on metrics and assumptions is
37%

RATING SENSITIVITIES

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

-- Fitch would downgrade IS's IDR to 'C' once it receives
confirmation that the consent solicitation has resulted in a
majority vote for the bond exchange and the exchange is launched.
Fitch would further downgrade to 'RD' once the exchange is
completed

-- The ratings on any remaining existing notes may be notched down
further

Factors That Could, Individually or Collectively, Lead to Positive
Rating Action:

-- Fitch would remove the RWN in the event that the exchange does
not go ahead and will reassess IS's capital structure and cash
flow

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

Limited Liquidity: IS had Fitch-adjusted cash (adjusted by 2% of
revenue for working-capital swings) of EUR20 million at
end-December 2022 with a fully utilised EUR15 million RCF and EUR25
million Bulgarian credit facilities. It has half-year coupon
payments for the senior secured bonds amounting to around EUR10
million-EUR11 million at end-July 2023 and January 2024, which it
can service using its existing cash balances.

Highly-Leveraged Debt Structure: IS's long-term debt consists of
EUR325 million of senior secured notes that mature in 2026. The
company uses factoring and non-recourse factoring lines along with
lease-back arrangements, which can be rolled over in line with
their due dates.

Temporary Reprieve from Shareholder Loan: Most recently in January
2023, IS raised a new EUR25 million shareholder loan that requires
no interest payments in 2023 and matures in December 2024 to manage
its operations. Given the short-term nature, Fitch view this as
debt that will be refinanced when it becomes due. Consequently,
liquidity and financial flexibility is strained and Fitch believes
that adverse changes to its ability to roll over its
working-capital bank borrowings may lead to further liquidity
stress and, subsequently, a default.

ISSUER PROFILE

IS is a leading manufacturer of sanitaryware in Europe and MENA.
Product offering includes ceramic, fittings, bathing & wellness as
well as bathroom furniture and accessories for residential and
non-residential end-markets.

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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EUROPEAN MEDCO 3: Moody's Affirms 'B2' CFR, Alters Outlook to Neg.
------------------------------------------------------------------
Moody's Investors Service changed the outlook on European Medco
Development 3 S.a.r.l. ('Axplora' fka 'PharmaZell' or the company)
to negative from stable. Concurrently, Moody's affirmed Axplora's
B2 long term corporate family rating and B2-PD probability of
default rating. Moody's also affirmed European Medco Development 4
S.a.r.l. B2 rating for its senior secured bank credit facilities.

RATINGS RATIONALE

The negative outlook reflects expectations for a prolonged recovery
following Axplora's earnings miss for its financial year ending
March 2023. Furthermore, higher costs such as labour, R&D and SG&A,
together with continued depressed levels of CDMO sales and
recurring EBITDA, will in Moody's view lead to weak credit metrics
for the year ending March 2024 as well. Nevertheless, Moody's sees
a potential recovery for the year ending March 2025, supported by
the sales of new molecules, resurrecting sales from currently
overstocked customers and benefits from cost savings initiatives,
which could result in Moody's-adjusted metrics returning to levels
commensurate with the B2 CFR. Furthermore, with adequate liquidity
and the absence of any meaningful maturity prior to November 2026,
Axplora has time to show improvement prior to approaching the debt
markets.

Lower CDMO sales due to an overstocked customer and a lower
contribution margin both contributed to the EBITDA shortfall.
Axplora recorded EUR114.2 million recurring EBITDA (against
EUR135.2 million budgeted) for the year ended March 2023, and
management expects a further drop to EUR92.0 million of recurring
EBITDA for the year ending March 2024. The rating agency does not
adjust for exceptional items (largely incurred for the integration
of Novasep, which it acquired in April 2022), resulting in
Moody's-adjusted debt/EBITDA of 7.4x for the twelve months ending
March 2023.

Axplora's B2 CFR benefits from its diverse exposure to ten
different therapeutic areas; long term customer relationships with
high barriers to entry due to regulatory specifications; strong
pipeline of molecules to sustain future growth; and ability to
largely pass on higher input costs, albeit with a time lag.

However, Axplora's moderate size with around EUR545 million
revenues in FY22/23 where revenue losses – as recent and forecast
results show – can have a material negative impact on
profitability and cash flows, constrains the B2 CFR. Its ratings
also reflect the high Moody's-adjusted leverage of around 7.8x as
of March 2023 end and the expectation of only moderate free cash
flow generation.

LIQUIDITY

Axplora's liquidity is adequate. As of 31 March 2023, the company
had access to EUR48.1 million of unrestricted cash on the balance
sheet and access to its EUR92.5 million senior secured revolving
credit facility (RCF), of which EUR20 million were drawn. Moody's
forecasts positive FCF of around EUR14 million in FY23/24. The
company benefits from its long-dated maturity profile with its RCF
due in November 2026 and its senior secured term loan B maturing in
May 2027.

OUTLOOK

The negative outlook on Axplora's ratings reflects the weak metrics
relative to expectations for its B2 rating category and the
uncertain timing when currently overstocked customers will resume
their purchases, which will results in continued weak metrics
unless offset by faster growth in other activities.

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

Moody's could upgrade ratings if Axplora (1) maintains an
attractive product pipeline; (2) reduces Moody's-adjusted gross
leverage to well below 5.0x on a sustained basis; (3) maintains its
sound quality track record and remains in compliance with
regulatory requirements; and (4) displays an adequate liquidity
profile as evidenced by substantial free cash flow generation.

The ratings could be downgraded if: (1) Axplora experiences any
material quality issues or non-compliance with regulatory
standards; (2) leverage remains above 6.0x debt / EBITDA (Moody's
adjusted) beyond early calendar-year 2025; (3) sustained EBITDA to
interest of below 2.0x; or (4) weakening liquidity including
material negative free cash flows.

LIST OF AFFECTED RATINGS

Issuer: European Medco Development 3 S.a.r.l.

Affirmations:

LT Corporate Family Rating, Affirmed B2

Probability of Default Rating, Affirmed B2-PD

Outlook Actions:

Outlook, Changed To Negative From Stable

Issuer: European Medco Development 4 S.a.r.l.

Affirmations:

Senior Secured Bank Credit Facility, Affirmed B2

Outlook Actions:

Outlook, Changed To Negative From Stable

PRINCIPAL METHODOLOGY

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

COMPANY PROFILE

European Medco Development 3 S.a.r.l. (Axplora), based in Raubling,
Germany, is a Contract Development and Manufacturing Organization
(CDMO) and active pharmaceutical ingredients (API) producer for
complex small molecules and antibody-drug conjugates (ADCs).
Following the merger of PharmaZell and Novasep in 2022, the
combined company, rebranded as Axplora, owns a diversified API
portfolio in ten therapeutic areas such as dermatology, oncology,
respiratory, pulmonary and inflammatory diseases. Axplora reported
preliminary sales of about EUR545 million and company-defined
recurring EBITDA of about EUR114 million for fiscal 2022/23. Funds
of private equity firm Bridgepoint acquired the company in February
2020 for an undisclosed consideration.

SC GERMANY 2020-1: Moody's Hikes Rating on EUR45MM F Notes from B2
------------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of five Notes in
SC Germany S.A., Compartment Consumer 2020-1. The rating action
reflects 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.

EUR1377M Class A Notes, Affirmed Aaa (sf); previously on Nov 19,
2020 Definitive Rating Assigned Aaa (sf)

EUR94.5M Class B Notes, Upgraded to Aaa (sf); previously on Nov
19, 2020 Definitive Rating Assigned Aa1 (sf)

EUR108M Class C Notes, Upgraded to Aa2 (sf); previously on Nov 19,
2020 Definitive Rating Assigned Aa3 (sf)

EUR81M Class D Notes, Upgraded to A2 (sf); previously on Nov 19,
2020 Definitive Rating Assigned Baa2 (sf)

EUR54M Class E Notes, Upgraded to Baa1 (sf); previously on Nov 19,
2020 Definitive Rating Assigned Ba2 (sf)

EUR45M Class F Notes, Upgraded to Baa3 (sf); previously on Nov 19,
2020 Definitive Rating Assigned B2 (sf)

RATINGS RATIONALE

The rating action is prompted by an increase in credit enhancement
for the affected tranches.

Increase in Available Credit Enhancement

The turbo amortization of Class G Notes in SC Germany S.A.,
Compartment Consumer 2020-1 led to the increase in
overcollateralization and combined with the outstanding Class G
Notes to an increase in credit enhancement available in the
transaction.

For instance, the credit enhancement for the most senior tranche
affected by the upgrade action, the Class B Notes, increased to
20.7% from 18.25% since closing.

Revision of Key Collateral Assumptions

As part of the rating action, Moody's reassessed its default
probability and recovery rate assumptions for the portfolio
reflecting the collateral performance to date.

The performance of the transaction has continued to be stable since
closing. Cumulative defaults have increased in the past year,
standing at 3.10% of the original pool balance. Total delinquencies
currently stand at 2.02% of current pool balance.

For SC Germany S.A., Compartment Consumer 2020-1, the current
default probability assumption was increased to 5.65% of the
current portfolio balance, this translates into a decrease of the
default probability assumption based on original portfolio balance
to 4.70% from 5.00% at closing. The assumption for the fixed
recovery rate was increased to 15.00% from 10.00% and the portfolio
credit enhancement (PCE) assumption was maintained at 17.00%.

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 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, and (3) improvements in the credit quality of
the transaction counterparties.

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.



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

ACCUNIA EUROPEAN I: Fitch Affirms 'B+sf' Rating on Class F Notes
----------------------------------------------------------------
Fitch Ratings has revised Accunia European CLO I DAC class B-1 and
B-2 notes' Outlook to Positive from Stable.

ENTITY/DEBT     RATING   PRIOR  
-----------                     ------          -----
Accunia European CLO I
DAC

A XS1966591452  LT   AAAsf    Affirmed AAAsf
B-1 XS1966593151 LT   AA+sf    Affirmed AA+sf
B-2 XS1966595016 LT   AA+sf    Affirmed AA+sf
C XS1966596683  LT   A+sf     Affirmed A+sf
D XS1966598382  LT   BBB+sf   Affirmed BBB+sf
E XS1966599430  LT   BB+sf    Affirmed BB+sf
F XS1966599869  LT   B+sf     Affirmed B+sf

TRANSACTION SUMMARY

The transaction is a cash-flow collateralised loan obligation (CLO)
backed by a portfolio of mainly European leveraged loans and bonds.
The portfolio is managed by Accunia Fondsmaeglerselskab A/S and the
transaction exited its reinvestment period in May 2021.

KEY RATING DRIVERS

Mixed Credit Enhancement Prospects: The Positive Outlook revision
on the class B-1 and B-2 notes reflects improved prospects for
credit enhancement given the shortening weighted average life (WAL)
and gradual deleveraging of the portfolio. The deleveraging
benefits the class A and B notes the most due to their senior
ranking. The Stable Outlooks on all other notes reflect sufficient
break-even default rate cushion based on the current portfolio at
their ratings.

Transaction Outside Reinvestment Period: Although the transaction
exited its reinvestment period in May 2021 the manager can reinvest
unscheduled principal proceeds and sale proceeds from credit-risk
and credit improved obligations after the reinvestment period,
subject to compliance with the reinvestment criteria.

Given the manager's ability to reinvest, Fitch's analysis is based
on a stressed portfolio, using the agency's collateral quality
matrix specified in the transaction documentation. Fitch opted for
the higher of two top 10 obligor concentration limits of 17% and
26.5% for its collateral quality matrix. This is because the agency
views this as most relevant, based on current and historical
portfolios for this CLO. Fitch also applied a 1.5% haircut to the
weighted average recovery rate (WARR) of the matrix to account for
the recovery definition in the documents based on an outdated
criteria.

Asset Performance Within Expectations: The transaction has
performed in line with Fitch's expectation. The transaction is
currently 2.91% below par and is passing all coverage tests. It is
failing the WAL test (2.9 versus 2.37) as reported by the trustee.
The last trustee report shows only one defaulted name, which is
0.99% of the reinvestment target par balance.

'B'/'B-' Portfolio: Fitch assesses the average credit quality of
the transaction's underlying obligors at 'B'/'B-'. The weighted
average rating factor (WARF) as calculated by the trustee was
33.78, which is below the maximum covenant of 34. Fitch calculated
the WARF at 26.69 under its updated criteria.

High Recovery Expectations: Senior secured obligations comprise
92.4% of the portfolio as calculated by the trustee. Fitch views
the recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets. The Fitch-calculated
WARR of the current portfolio is 61.9%.

Diversified Portfolio: The portfolio is well-diversified across
obligors, countries and industries. The top 10 obligor
concentration is 22.7%, and no obligor represents more than 3.5%%
of the portfolio balance, as reported by the trustee.

Cashflow Modelling: Fitch used a customised proprietary cash-flow
model to replicate the principal and interest waterfalls and the
various structural features of the transaction, and to assess their
effectiveness, including the structural protection provided by
excess spread diverted through the par- value and interest-coverage
tests.

Deviation from Model-Implied Ratings: The ratings on class B-1 and
B-2 are one notch below their model-implied ratings. The deviation
reflects the moderate default rate cushion at the MIRs and
macroeconomic risk. The ratings on all other notes are at their
MIRs.

RATING SENSITIVITIES

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

An increase of the default rate (RDR) at all rating levels by 25%
of the mean RDR and a decrease of the recovery rate (RRR) by 25% at
all rating levels will result in downgrades of no more than one
notch for the class B notes, two notches for the class C notes,
three notches for the class D and F notes, five notches for the
class E notes and will have no impact on the class A notes.
Downgrades may occur if build-up of the notes' credit enhancement
following amortisation does not compensate for a larger loss
expectation than initially assumed due to unexpectedly high levels
of defaults and portfolio deterioration.

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

A reduction of the RDR at all rating levels by 25% of the mean RDR
and an increase in the RRR by 25% at all rating levels would result
in upgrades of up to three notches for the class D to F notes, and
no more than one notch for the class B and C notes. Further
upgrades except for the 'AAAsf' notes may occur if the portfolio's
quality remains stable and the notes start to amortise, leading to
higher credit enhancement across the structure.

BEST/WORST CASE RATING SCENARIO

International scale credit ratings of Structured Finance
transactions have a best-case rating upgrade scenario (defined as
the 99th percentile of rating transitions, measured in a positive
direction) of seven 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 seven notches over three years. The complete span of best- and
worst-case scenario credit ratings for all rating categories ranges
from 'AAAsf' to 'Dsf'. Best- and worst-case scenario credit ratings
are based on historical performance.

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

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

DATA ADEQUACY

Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.

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, 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.

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.

BARRYROE OFFSHORE: Judge Approves Examinership Application
----------------------------------------------------------
Ellie Donnelly at Business Post reports that a judge has made the
order to appoint an examiner to Barryroe Offshore Energy, the Larry
Goodman-backed oil exploration firm.

The examinership application was first proposed on July 21 by Vevan
Unlimited, a vehicle controlled by beef baron Goodman, in a bid to
shield Barryroe from its creditors and give it time to seek new
investment, Business Post relates.

Goodman holds a 20% stake in Barryroe, formerly known as Providence
Resources, Business Post discloses.




METRON STORE: Iceland Gorey Outlet Shut Down
--------------------------------------------
Eoin Kelleher at Independent.ie reports that concerns are growing
for the staff of the Iceland stores in Gorey and Wexford town, as
the Gorey outlet was forced to close on Saturday, July 22.

Staff in the Gorey store were told to close the shop on Saturday,
July 22, after a Zoom call with management at 11:30 a.m.,
Independent.ie, relays, citing the Gorey Guardian.

According to Independent.ie, Tomas Sheehan, spokesperson for the
Independent Workers Union (IWU), said each outlet typically employs
10 to 15 people.  The IWU represents many Iceland workers
nationwide, but not in Gorey, Independent.ie notes.

Iceland's parent company, Metron Store Ltd, has been placed into
examinership, casting doubt on whether staff will be paid, or
receive redundancy packages, Independent.ie discloses.

Mr. Sheehan, as cited by Independent.ie, said the Gorey store
closed as part of the examinership process.  The examiner
recommended that some of the 27 Iceland stores nationwide be closed
if they are deemed unprofitable, Independent.ie states.

"He recommended that it be brought down to about 10 possible
stores," Independent.ie quotes Mr. Sheehan as saying.  "They are
not keeping the workers in the loop.  We've seen it in Cork and
Dublin, that workers report for work. They show up and learn that
they've lost their jobs.  They are put on temporary layoffs."

The trend across the other stores is that most workers are being
put on temporary lay offs for four weeks or so, and if the shop
doesn't re-open, the workers are made redundant, according to
Independent.ie.




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

IFIS NPL 2021-1: Moody's Cuts Rating on EUR74.4MM B Notes to Caa2
-----------------------------------------------------------------
Moody's Investors Service has downgraded the rating of the Class B
Notes in IFIS NPL 2021-1 SPV S.R.L. The rating action reflects the
losses realized on the Class B Notes as part of the restructuring
of the transaction.

EUR74.4M Class B Notes, Downgraded to Caa2 (sf); previously on Mar
19, 2021 Assigned B2 (sf)

RATINGS RATIONALE

The rating action is prompted by the accrued and unpaid interest
payments on the Class B Notes which materialized as losses
following the restructuring of the transaction.

The transaction initially closed in March 2021. This was the first
Italian NPL transaction backed by a portfolio including a large
portion of loans paid directly from the salary or pension of the
defaulted borrower (Judicial order of assignment, "ODA").

As part of the restructuring of the transaction, the secured
portfolio has been repurchased by the seller and the Original
Senior and Mezzanine Notes principal will be repaid with the
issuance of new Notes. However interests accrued and unpaid on the
Original Mezzanine Notes (Class B Notes) have been waived by the
Class B noteholders and cancelled. Total Class B interests accrued
and unpaid represent EUR9,02 mln. The Caa2 (sf) rating reflects a
loss in excess of 10% of the Class B Notes original balance.  

Subsequent to the downgrade, Moody's will withdraw its rating for
the Class B Notes as new Notes will be issued.

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

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

Not applicable as subsequent to the downgrade, Moody's will
withdraw its rating for the Class B Notes as new Notes will be
issued.



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

ADVANZIA BANK: Moody's Affirms 'Ba1' Deposit & Issuer Ratings
-------------------------------------------------------------
Moody's Investors Service affirmed Advanzia Bank S.A.'s long-term
and short-term deposit and issuer ratings of Ba1/Not-Prime and
changed the outlook on the long-term deposit and issuer ratings to
stable from positive.

Concurrently, Moody's affirmed Advanzia's Baseline Credit
Assessment (BCA) of ba2, its Adjusted BCA of ba2, as well as its
long-term and short-term Counterparty Risk (CR) Assessments of
Baa2(cr)/Prime-2(cr) and Counterparty Risk Ratings of
Baa2/Prime-2.

RATINGS RATIONALE

Moody's affirmation of Advanzia's BCA of ba2 reflects Moody's view
that whilst the bank is facing a more challenging operating
environment for consumer lenders because of the combined impact of
high inflation, rising interest rates and an economic slowdown in
Europe, it should be able to maintain its current credit profile in
the next 12-18 months.

Moody's considers that unsecured revolving loans to retail
individuals are a high-risk asset class, which is likely to incur
increased credit losses in an inflationary environment. Advanzia
reported that its annualized cost of risk was 5.4% of outstanding
credit card lending in the first quarter of 2023, an increase from
5.1% in Q4 2022 and 4.3% in Q1 2022. This increase was partly
linked to the development of lending activities in new markets
(Spain and Italy). Moody's expects that the current economic
context will have negative implications on the terms and conditions
of the disposals of non-performing loans, which the bank undertakes
on an ongoing basis.

In addition, Advanzia's profitability could suffer from higher
interest rates because it can prove difficult to increase interest
rates charged to credit card customers - already very high - while
increased deposit rates inflate funding costs.

Lastly, Moody's notes that Advanzia decided to postpone the
issuance of senior unsecured debt given current market conditions.
Furthermore, the departure during the first quarter of 2023 of the
Chief Executive Officer (CEO), who has not yet been replaced, also
creates uncertainty at the bank.

Despite these negative developments, the very high margins reported
by Advanzia enable it to continue accruing material amounts of
capital. Although the current capitalisation offers only modest
buffers above regulatory minima – the common equity tier 1 (CET1)
capital ratio was 12.9%, excluding interim profits, at end-March
2023 versus the EU's Supervisory Review and Evaluation Process
(SREP) CET1 minimum of 9.8% –, Moody's believes that the bank has
the ability to swiftly adjust its capital management in case of
need, for example by a more conservative dividend policy and slower
loan origination.  

The ratings also incorporate Advanzia's environmental, social and
governance (ESG) considerations, as per Moody's Investors Service's
General Principles for Assessing Environmental, Social and
Governance Risks Methodology. Advanzia's exposure to governance
risks is moderate, which is reflected in a Governance Issuer
Profile Score (IPS) of G-3. Although Advanzia's governance was not
a key driver for the rating action, Moody's decided to lower the
bank's Management Credibility and Track Record sub-score of the
governance section to 3 from 2 in order to reflect its current lack
of access to the unsecured funding markets and the current
management uncertainty.

CHANGE OF OUTLOOK TO STABLE FROM POSITIVE

Prior to the change, the positive outlook on Advanzia's long-term
deposit and issuer ratings reflected Moody's expectation that
depositors and senior creditors would benefit from higher volume
and subordination of loss-absorbing instruments in the short term
since the bank planned to issue senior unsecured debt. However, the
bank postponed its issuance. Moody's now believes that the issuance
of loss-absorbing instruments will take longer than initially
expected. As a result, the rating agency changed the outlook on
Advanzia's long-term deposit and issuer ratings to stable from
positive.

In addition, the stable outlook on Advanzia's long-term deposit and
issuer ratings reflects Moody's view that the bank will be able to
maintain an adequate credit profile over the outlook horizon thanks
to the very high profitability of its lending activities, despite a
high likelihood of negative developments on net interest margins
and loan-loss charges.

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

Advanzia's deposit and issuer ratings would be upgraded as a result
of a decrease in loss given failure, should depositors and senior
creditors benefit from higher subordination and instrument volume
than is currently the case. Moody's expects upward rating pressure
to materialise if the bank issues an amount approximately EUR120
million of senior unsecured debt or approximately EUR50 milllion of
subordinated instruments, considering current balance-sheet size.

Although unlikely at present, given the unfavourable economic
environment, Moody's could also upgrade the BCA if Advanzia decided
to substantially increase its capitalisation buffers, while
preserving its profitability and risk profile.

Moody's could downgrade the BCA and ratings as a result of a
significant deterioration in asset quality impacting profitability
and capitalisation. In addition, a downgrade could also occur if
net interest margins and profitability were to substantially
dwindle. Finally, further challenges to implement the bank's
strategy or a prolonged absence of CEO could weigh negatively on
the bank's BCA. Although unlikely at present, Advanzia's long-term
deposit and issuer ratings could also be downgraded as a result of
an increase in loss given failure, should these instruments benefit
from lower subordination and instrument volume than is currently
the case.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
Methodology published in July 2021.



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

AERNNOVA AEROSPACE: Moody's Affirms 'B3' CFR, Outlook Now Stable
----------------------------------------------------------------
Moody's Investors Service has affirmed the B3 long term corporate
family rating and the B3-PD probability of default rating of the
Spanish manufacturer of aerostructures, components and engineering
solutions Aernnova Aerospace Corporation S.A. (Aernnova).
Concurrently, Moody's has affirmed the B3 instrument rating on the
backed senior secured bank credit facilities raised by Aernnova
Aerospace, S.A.U. The rating outlook for both entities has been
changed to stable from negative.

RATINGS RATIONALE

The rating action reflects a good progress in recovering Aernnova's
topline that in the last 12 months ended March 2023 (EUR806
million) already exceeded pre-pandemic levels. However, the rating
remains constrained by a slower recovery in earnings, which remain
roughly 60% lower compared to 2019 when Moody's adjusted EBITDA was
EUR112 million. Due to subdued earnings, Moody's adjusted gross
leverage, which exceeded 14x in Q1 2023, remains notably high for
the rating category. It is imperative to lower it below 7x to
achieve a more favorable rating position.

Aernnova's successful involvement in the industry-wide production
increase, coupled with cautious management of cost inflation, could
exert upward pressure on its rating over the next 12-18 months.
Moody's expect the company revenue to grow by 12-14% in 2023
followed by another 8-10% increase in 2024 as Aernnova process and
delivers on its order backlog, which corresponds to roughly 4x
expected sales in 2023. While Moody's expect the profitability
(Moody's adjusted EBITDA margin) to remain well below pre-pandemic
level through 2024 as a result of still low A350 production rates
versus pre-pandemic, the absolute level of EBITDA will improve
considerably and will more than double in 2024 compared to 2022
level. Moody's believe this will lead to a swift deleveraging
towards 6-7x by the end of 2024.

The acquisition of Evora in 2022 has broadened Aernnova's customer
base due to a long-term supply agreement with Embraer, thus
reducing its reliance on the wide-body Airbus program A350 (which
accounts for approximately 33% of the order backlog by program).
The production rate increase for this program is expected to be
more gradual compared to narrow-body programs. The two state of the
art production facilities acquired in Portugal, currently operating
with excess capacity, provide a competitive cost advantage due to
lower labor costs. These facilities also allow for a significant
increase in production as demand for narrow-body and regional jets
rebounds.

Although Moody's anticipate a favorable growth outlook for the
global aerospace and defense industry, with commercial aircraft
production expected to rise through 2024 and beyond, Aernnova must
maintain an adequate liquidity profile for a higher rating. Due to
the amortization of its institutional debt, Aernnova will face
approximately EUR40 million in debt repayments in both 2023 and
2024. Moody's expect this to surpass its free cash flow (FCF)
generation as the company also needs to invest in production
ramp-up. A significant deterioration in Aernnova's liquidity
profile, which Moody's currently consider sufficient, could
counterbalance any future earnings or credit metrics improvements
if the company opts for a more aggressive organic or inorganic
growth strategy. However, Moody's positively note Aernnova's
ability to generate positive FCF despite highly depressed earnings
in the challenging years of 2021 and 2022.

The rating is mainly supported by (1) the fundamentally positive
outlook for the global aerospace and defense sector with increasing
aircraft production and higher defense budgets globally; (2)
Aernnova's  well-established and long-term cooperation with
aerospace original equipment manufacturers (OEMs), especially with
its main customer Airbus SE (A2 stable) that is responsible for c.
2/3 of its backlog; (3) its solid competitive position, underpinned
by Aernnova's in-house composite capabilities and its role as a
sole source supplier for almost all of its contracts; and (4) its
ability to generate sustainably positive free cash flow evidenced
in 2021/22 when earnings were highly depressed.

The rating is primarily constrained by (1) still very weak credit
metrics currently with Moody's adjusted gross leverage exceeding
14x in Q1 2023; (2) uncertainty in terms of production ramp-up in
commercial aerospace post pandemic due to multiple challenges
throughout the value chain; (3) the cyclical nature of the
commercial aerospace industry and Aernnova's modest scale; and (4)
high customer concentration with a large exposure to wide-body
programs where post-pandemic recovery is slower.

RATIONALE FOR STABLE OUTLOOK

The stable outlook reflects Moody's expectation that Aernnova will
continue to restore its credit metrics owning to a positive
earnings trajectory. There is a strong probability that this will
result in a reduction of Moody's adjusted gross leverage to a range
of 6x - 7x over the next 12-18 months.

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

Positive rating pressure could arise if:

-- Further stabilisation of operating environment with increasing
aerospace production rates;

-- Moody's-adjusted gross debt/ EBITDA below 6x on a sustained
basis;

-- Consistently positive free cash flow generation;

-- Absence of major execution challenges in key platforms.

Conversely, negative rating pressure could arise if:

-- Inability to reduce Moody's-adjusted gross debt/ EBITDA below
7x;

-- Moody's-adjusted EBIT/ Interest remaining below 1x;

-- Deterioration in liquidity profile as a result of negative free
cash flow, acquisition or shareholder remuneration;

-- Execution challenges which could materially distort earnings
and cash generation.

LIQUIDITY

Aernnova's liquidity profile is adequate. The company had EUR32
million of cash on balance sheet as of March 31, 2023 as well as
fully available EUR100 million backed senior secured revolving
credit facility (RCF) maturing in 2026. Furthermore, the company
had access to EUR47 million bilateral credit lines that Moody's
however consider as less reliable than cash or the RCF as they are
typically renegotiated on an annual basis. Over the next 12-18
months Moody's expects Aernnova to continue generating positive FCF
in the range of EUR10-30 million p.a. On the other side, the
company faces EUR41 and EUR40 million debt repayment in 2023 and
2024, respectively, that will likely require an increased
utilisation of bilateral credit lines.

STRUCTURAL CONSIDERATION

In the loss-given-default (LGD) assessment for Aernnova, Moody's
ranks pari passu the EUR390 million backed senior secured term loan
B1 and the EUR100 million backed senior secured term loan B2, both
maturing in 2027, as well as the EUR100 million backed senior
secured RCF maturing in 2026. The senior secured bank credit
facilities are issued by Aernnova Aerospace, S.A.U. and guaranteed
by Aernnova, and its material subsidiaries, representing at least
80% of consolidated EBITDA. The security package includes pledges
over shares, bank accounts and intragroup receivables. These
instruments are rated B3 in line with the corporate family rating.
Moody's assume a standard family recovery rate of 50%, which
reflects the covenant-lite nature of the loan documentation, and
this results in a B3-PD probability of default rating.

The capital structure also includes approximately EUR83 million of
unsecured institutional debt as of March 31, 2023, mostly
non-interest-bearing and amortising, as well as EUR29 million bank
loans and EUR21 million bilateral credit facilities that Moody's
ranks junior to senior secured instruments. However, the existence
of unsecured instruments does not lead to an uplift for senior
secured instrument given their relatively small share in the
capital structure. Moreover, their amortisation over time reduces
the extent of loss absorption in case of financial difficulties.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Aerospace and
Defense published October 2021.

COMPANY PROFILE

Headquartered in Alava, Spain, Aernnova Aerospace Corporation S.A.
(Aernnova) is a leading Tier 1/ Tier 2 supplier of metallic and
composite aerostructures and components such as wings, empennages
and fuselage sections for original equipment manufacturers (OEMs)
in the aeronautical sector (e.g. Airbus SE (A2 stable), Embraer SA
(Ba2 stable) etc.). In addition, the company provides engineering
services to the main aircraft manufacturers and other Tier 1
suppliers. Aernnova is also involved in the manufacturing of
welding products for the automotive sector and general industrial
use. The group owns production facilities in Spain, the UK,
Portugal, Mexico, Brazil and the US, which along with the
commercial office in China support its global activities across 30
aerospace platforms. In 2022, Aernnova generated EUR741 million of
revenue.  



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

SAMHALLSBYGGNADSBOLAGET: S&P Cuts LT ICR to 'CCC+/C', Outlook Neg.
------------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit ratings on
Swedish real estate landlord Samhallsbyggnadsbolaget i Norden AB
(SBB) to 'CCC+/C' from 'BB-/B', its issue ratings on its senior
unsecured debt to 'CCC+' from 'BB-', and its issue ratings on the
subordinated hybrid bonds to 'CC' from 'B-'. The recovery rating of
'3' on the senior unsecured debt remains unchanged.

The negative outlook reflects high uncertainty regarding SBB's
ability to successfully secure sufficient funding to cover its
short-term debt maturities within the next few months.

The downgrade reflects the short time before significant upcoming
maturities are due, currently insufficient liquidity sources, and
increased dependency on favorable economic circumstance such as
generating sufficient asset disposals. On July 14, 2023, SBB
reported its second-quarter results, with a drop in available cash
on balance sheet to SEK1.7 billion (versus SEK5.3 billion in
first-quarter 2023) and a slight increase in short-term debt
maturities for the next 12 months to SEK14.6 billion (versus
SEK14.2 billion in first-quarter 2023). In addition, on June 21,
2023, SBB's board of directors resolved that the dividend for all
share classes of about SEK2 billion, approved by the 2023 annual
general meeting in April 2023, shall be distributed at the latest
on June 28, 2024.

SBB has made some small disposal transactions over the past couple
of weeks, including the sale of most of its stake in Heba
Fastighets AB for about SEK491 million. It has created a
residential subsidiary, SBB Residential Property AB, with a
property value of SEK6.2 billion, which will issue a SEK2.36
billion of preference shares to Morgan Stanley Real Estate
Investing. Despite these transactions, the liquidity deficit has
further intensified and become increasingly unsustainable.

Of the SEK14.6 billion short-term debt maturities, approximately
SEK8.5 billion are related to bonds due within the next seven
months, including a nominal EUR700 million senior unsecured bond
with outstanding EUR559 million (about SEK6.5 billion), due Feb. 8,
2023. S&P said, "In our view, the financial pressure on SBB has
increased over the past few weeks. The company's spreads of its
traded bonds remain beyond the sector average. We think SBB's
ability to access funding sources is deteriorating, and we
understand that the company has entered discussions with
bondholders on potential secured financing and accuracy of reset
covenant test, though at very early stages. We therefore revised
our liquidity assessment to weak from less than adequate."

S&P said, "We understand that SBB has discontinued its discussions
with Brookfield on the sale of the remaining 51% stake in EduCo.,
dampening the likelihood of a prompt liquidity boost.On July 21,
2023, SBB announced that discussions have stopped with its existing
partner Brookfield regarding SBB's potential sale to Brookfield of
its 51% stake in EduCo (Brookfield already owns 49%). The
discussions had also involved the repayment of the SEK14.5 billion
intercompany loan, provided by SBB to EduCo. In our view, this
transaction could have provided a powerful boost to the SBB's
liquidity position in the short term. With this transaction now
unlikely over the next few months, SBB's refinancing pressure has
increased. While the liquidity risk is currently severe, we assume
in our base case that SBB will eventually raise funds through asset
sales or secured financings to meet short-term obligations.

"We revised our business risk profile to satisfactory from strong
following the company's delay in securing sufficient funding and
uncertainty around its strategic portfolio review, including the
ability to time and quantify its disposal plans, as well as its
increasingly complex portfolio structure. The revision reflects the
uncertainty of the company's execution and timing of its strategic
review, as well as the current difficulties in the transaction
market--with the size, price, and timing of a potential transaction
remaining unclear."

Including subsidiaries EduCo and SBB Residential Property AB,
approximately 35% of SBB's total property portfolio is now located
in subsidiaries with strong minority interests. S&PS aid, "Although
those transactions help the company receive cash to support
liquidity and deleveraging plans, we think they add complexity to
the corporate structure, because the company does not have full
access to those entities' cash flows while it fully consolidates
those subsidiaries. We recognize that SBB will no longer accrue the
full benefits of EduCo and SBB Residential Property AB's cash
flows, reducing its capacity to serve its financial commitments at
the holding level."

S&P said, "Our updated base case takes into account SBB's reported
translation and value losses during second-quarter 2023, as well as
higher funding costs, which led us to revise our financial risk
profile to aggressive. In second-quarter 2023, the company reported
approximately SEK4.1 billion of translation and value losses, the
latter related to its financial instruments. Together with a
negative revaluation on its property portfolio of about SEK8
billion, the S&P Global Ratings-adjusted debt-to-debt-plus-equity
ratio increased to 65.5% from 59% in first-quarter 2023. In
addition, we forecast very little dividend contribution from joint
ventures and associated companies that could support our EBITDA
calculation for future years (about SEK300 million received for
full-year 2022), following the sale of the majority of its stake in
JM AB.

"We view the recently issued preference shares of SEK2.36 billion
to Morgan Stanley Real Estate Investing as 100% debt under our
criteria and its coupon payments as interest costs, because we
understand the documentation includes early redemption provisions
for the holder and exit rights after five years that question the
instruments' permanency in the capital structure and could be
refinanced with ordinary debt, in our view. While we expect strong
positive like-for-like rental growth of about 8.0% over the next 12
months, as well as sustained high occupancy rates of 95% to 96%, we
do not expect this will fully mitigate the loss in received
dividends and higher funding costs. We therefore now expect the
company's EBITDA interest coverage at 1.7x to 1.8x in 2023 (versus
about 1.8x rolling 12 months as of June 30, 2023, and about 2x in
our previous forecast) and our debt-to-debt-plus-equity ratio to
remain close to 65% in 2023 (versus 60% in our previous base case).
We expect the ratio of debt to EBITDA to remain high at about 18x.

"We lowered to 'CCC+' our issue ratings on SBB's senior unsecured
debt and to 'CC' our issue ratings on SBB's subordinated debt. The
issue ratings on the senior unsecured debt remain in line with the
issuer credit rating. Our recovery analysis on SBB is unchanged at
'3', in line with our criteria. For its subordinated rated notes,
we continue applying three notches difference from the issuer
credit rating. We may review our approach for the hybrid bond
ratings if we believe the risk of coupon deferral increases beyond
our current assessment."

The negative outlook reflects high uncertainty regarding SBB's
ability to successfully secure sufficient funding to cover its
short-term debt maturities within the next few months.

Downside scenario

S&PS aid, "We could lower the ratings on SBB if the company fails
to execute sufficient asset disposals or otherwise secure
sufficient funding for its short-term liquidity needs. We could
also downgrade the company further if there were additional
unexpected events, materially constraining the credit profile or
liquidity of SBB or the possibility of a distressed exchange, as
defined by S&P Global Ratings, were to arise."

Upside scenario

S&P could affirm the ratings on SBB if the company managed to
proceed with sufficient disposals or raised additional capital and
restore its liquidity.

ESG credit indicators: E-2, S-2, G-5




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

AZURE FINANCE NO. 2: S&P Affirms 'CCC+(sf)' Rating on F-Dfrd Notes
------------------------------------------------------------------
S&P Global Ratings raised its credit ratings on Azure Finance No.2
PLC's class C notes to 'AAA (sf)' from 'A+ (sf)', class D-Dfrd
notes to 'AA+ (sf)' from 'A- (sf)', and class E-Dfrd notes to 'BBB
(sf)' from 'B+ (sf)'. At the same time, S&P affirmed its 'CCC+
(sf)' rating on the class F-Dfrd notes.

The rating actions follow its review of the transaction's
performance and the application of our relevant criteria, and
reflect the transaction's current structural features.

The transaction has amortized sequentially since closing in July
2020, resulting in increased credit enhancement for the notes
subject to the upgrades. As of the May 2023 servicer report, the
pool factor had declined to 18.6%, and the available credit
enhancement for the class C, D-Dfrd, and E-Dfrd notes had increased
to 62.7%, 44.2%, and 21.1%, respectively, compared with 27.6%,
19.7%, and 9.8% in our July 2022 review. Available credit
enhancement has not increased for the class F-Dfrd notes because
they are only backed by the reserve fund. The collateralized class
A and B notes and the uncollateralized class X1-Dfrd and X2 notes
have redeemed.

S&P said, "The level of losses recorded is lower than forecast, so
we have lowered our base-case hostile termination rate to 6.00%
from 7.75% and our base-case voluntary termination rate to 2.00%
from 3.75%. The loss multiples, which we lowered in our previous
review, remain unchanged.

"High used car prices in recent years have increased observed
recovery levels in the transaction. We revised our recovery rate
base-case assumption to 50% from 40%, and increased our recovery
haircuts to align them with similar transactions." The net effects
are an unchanged stressed recovery rate at the 'AAA' rating level,
with lower rating levels having increased stressed recovery rates.

Lastly, as the underlying collateral comprises U.K. fully
amortizing fixed-rate auto loan receivables arising under hire
purchase agreements originated by Blue Motors, the transaction is
not exposed to residual value risk.

  Table 1

  Credit assumptions

  PARAMETER                 JULY 2022 REVIEW      CURRENT

  HT base case (%)                     7.75          6.00

  HT multiple ('AAA')                  4.00          4.00

  HT multiple ('AA+')                  3.50          3.50

  HT multiple ('BBB')                  1.50          1.50

  HT multiple ('B')                    1.00          1.00

  VT base case (%)                     3.50          2.00

  VT multiple ('AAA')                  2.00          2.00

  VT multiple ('AA+')                  1.88          1.88

  VT multiple ('BBB')                  1.25          1.25

  VT multiple ('B')                    1.00          1.00
  
  Recoveries base case (%)            40.00         50.00

  Recoveries haircut ('AAA') (%)      25.00         40.00

  Recoveries haircut ('AA+') (%)      23.80         35.00

  Recoveries haircut ('BBB') (%)      15.00         17.50

  Recoveries haircut ('B') (%)         5.00          5.00

  Stressed recovery rate ('AAA') (%)  30.00         30.00

  Stressed recovery rate ('AA+') (%)  30.48         32.50

  Stressed recovery rate ('BBB') (%)  34.00         41.25

  Stressed recovery rate ('B') (%)    38.00         47.50


S&P said, "We performed our cash flow analysis to test the effect
of the amended credit assumptions and deleveraging on the
structure.

"Our cash flow analysis indicates that the available credit
enhancement for the class C and D-Dfrd notes is commensurate with
'AAA' credit and cash flow stresses. Therefore, we raised to 'AAA
(sf)' from 'A+ (sf)' our rating on the class C notes. However, due
to the structural subordination, ability to defer interest, and
amortizing nature of its respective cash reserve, we limited our
upgrade of the class D-Dfrd notes to 'AA+ (sf)' from 'A- (sf)'.

"The class E-Dfrd notes can withstand the credit and cash flow
stresses applied at the 'BBB' rating level. We therefore raised to
'BBB (sf)' from 'B+ (sf)' our rating on this class of notes.

"The class F-Dfrd notes fail a 'B' level of credit and cash flow
stress. We believe this class of notes is vulnerable to nonpayment,
and depends on favorable business, financial, or economic
conditions to be repaid, according to our criteria for assigning
'CCC+', CCC, 'CCC-', and 'CC' ratings. We therefore affirmed our
'CCC+ (sf)' rating on this class of notes.

"The application of our operational risk, sovereign risk, and
counterparty criteria does not constrain the ratings. Legal risks
continue to be adequately mitigated, in our view."

Azure Finance No. 2 is an asset-backed securitization backed by a
portfolio of U.K. auto loan receivables originated by Blue Motor
Finance.


CLARKS: To Close Fareham Shopping Centre Store on Aug. 5
--------------------------------------------------------
James Flanders at The Sun reports that Clarks is closing its doors
to customers in Fareham Shopping Centre this week.

The store will permanently close on Saturday, Aug. 5, The Sun
discloses.

According to The Sun, a spokesperson for the shopping centre said:
"We were disappointed to learn of Clarks forthcoming closure which
we believe to be Aug. 5.

"We have endeavoured to retain them, but we understand that
nationally they are looking to reduce the number of stores they
operate from following the company voluntary arrangement (CVA).

"This was a corporate decision which is particularly disappointing
as we understand the store was highly profitable.

"We shall be working hard to find a replacement and have a number
of interesting leads that we are pursuing."

The shoe shop last closed a store in Dundee on July 25, The Sun
notes.

Clarks was founded in 1825 by Cyrus Clark in Street, Somerset and
at its peak operated across over 1,400 stores and franchises
internationally.

But as of July 2023, the brand operated just 320 stores after
battling to keep a presence on the high street.

Clarks brought in McKinsey & Co to help with restructuring plans
after posting a GBP82.9 million post-tax loss back in 2019, The Sun
recounts.

But Clarks was rescued from the brink with a GBP100 million
investment deal by private equity firm LionRock Capital, The Sun
states.

A CVA was agreed which saw the Clarks family lose overall control
of the company and over 50 stores were set to close following this
announcement back in November 2020, The Sun relates.

The shoe shop has dripped close dozens more stores since this date,
according to The Sun.


PETERBOROUGH UNITED: At Risk of Administration if Debt Not Repaid
-----------------------------------------------------------------
Matt Slater at The Athletic reports that a Canadian investment fund
that claims it is owed GBP14.6 million by a company that owns half
of Peterborough United has mentioned the possibility of putting the
League One club into administration.

Set up in Calgary in 2016, OKR Financial's main business is lending
money to technology start-ups.  In 2018 its co-founders, Dr Jason
Neale and Randy Thompson, bought a 50% stake in the English club
via a different Canadian firm, Kelgary Sports and Entertainment.

Messrs. Neale and Thompson paid Peterborough chairman Darragh
MacAnthony GBP2.5 million for the shares and loaned the club
another GBP3 million, but their business relationship ended last
year when OKR's investors accused Mr. Neale of making unauthorised
loans from OKR to Kelgary and other businesses, The Athletic
recounts.

Mr. Neale denies any wrongdoing but he was forced out of OKR and
recovery agents were brought in to chase those loans, The Athletic
relays.  In November, OKR sent a demand to the club for repayment
of its loan, which has been accruing compound interest at an annual
rate of 18%, The Athletic states.

According to the club's most recent set of accounts, which were
filed at Companies House last month, OKR's demand was for GBP7.16
million, The Athletic discloses.  The club disputes this amount and
the accounts reveal that the club has made a payment of GBP1.1
million since last summer, The Athletic relates.

But the accounts also note that OKR's loan is secured by a charge
"on the company's assets and the right to appoint an administrator
in the event of a default", according to The Athletic.

Earlier this year, OKR put the subsidiary that owns Peterborough
United's London Road stadium into receivership, and the club's rent
for playing at the venue now goes to the fund and local council,
the latter as part of a repayment plan for historic rent arrears,
The Athletic relates.

MacAnthony, who bought the club in 2006 at the age of 30 and still
owns half of the shares, Messrs. Neale and Thompson have said their
dispute will not negatively impact the club and they are working on
an amicable settlement, The Athletic notes.

But that is not happening quickly enough for OKR's investors, some
of whom have started their own legal action against the fund's
former management, The Athletic states.

Last month, OKR seized Kelgary's shares in Peterborough United when
a Canadian court ruled that Kelgary owed the fund CAD$24.7 million
(GBP14.6 million), The Athletic recounts.  OKR is pursuing steps to
have that ruling validated by a British court, The Athletic
discloses.

And now, in a quarterly report to OKR's investors, Mr. Thompson has
admitted the fund does not have enough cash to pay them a
distribution for the fourth quarter in a row, The Athletic
discloses.

In regards to the litigation it has pursued to ensure "loans
created by former management were repaid", Mr. Thompson explained
that progress has been made in some areas but not all, The Athletic
relates.

"The football club and its related entities continue to work with
our recovery team to structure a repayment plan," he wrote.

"While this negotiation was expected to close in June with a first
significant payment in July, final agreements are still being
drafted at time of writing.

"The fund has put the stadium under a receivership order and we
still have the ability to do the same with the club, if we should
choose to take this route."

MacAnthony is understood to be confident that a deal can be done
that will see him regain full control of the club and stadium
company, The Athletic notes.

This does, however, raise the possibility that Peterborough will be
expected to repay some of its other borrowings, as
change-of-control covenants are typically attached to loans, The
Athletic states.

According to The Athletic, a Peterborough statement in response to
The Athletic said: "The club strongly disputes the OKR debt
position and after receiving legal advice and conducting further
investigation takes the position that the debt reported in the
financial statements is materially lower.  We anticipate our next
set of financial statements will demonstrate this.  There is no
danger of the club falling into administration.

"Whilst the club is in a position to repay any secured debt it is
actively working with OKR to settle all issues which would include
PUFC debt and secured debt with London Road Peterborough Properties
Ltd, which would lead to the stadium company coming out of
receivership. We are aware of a dispute between the owners of
Kelgary Sports and Entertainment and OKR.

"To date, this has had no impact on the ownership of the club.
Notwithstanding, the club is negotiating with all parties to
resolve all matters as part of a global settlement agreement.
Further, it should be noted that under the shareholders' agreement,
no share transfer can occur without existing shareholders being
given the option to purchase.

"As with many clubs, the COVID-19 pandemic forced us to take
expensive debt, and whilst it's been a challenging time, we are
confident that cooler heads will prevail, current very advanced
negotiations will lead to a settlement in the coming weeks, and the
club will emerge stronger and have a very successful 2023-2024
season."


WOODFORD EQUITY: Investors May Get Payments as Early as 2024
------------------------------------------------------------
James Baxter-Derrington at Investment Week reports that the
Financial Conduct Authority has said investors in the former
Woodford Equity Income fund could begin to see compensation as
early as 2024, subject to the approval of the scheme and completion
of the sale of Link Fund Solutions.

Writing in response to an investor letter issued by LFS on
July 28, the regulator welcomed the update, which offered a
potential timeline for next steps and revealed the introduction of
an investor committee, Investment Week relates.

While the FCA and Link Fund Solutions both issued statements in
April that teased further information was due to be released to
investors in July, Link's actual update was scant on detail,
Investment Week states.

Its statement on July 28 reiterated that the scheme was conditional
on the sale of LFS to Waystone Group, and the sanctioning of the
scheme by the High court, Investment Week notes.

In return for the up to GBP235 million compensation scheme, LFS,
Link Group and their respective affiliates and officers "will be
released from all liability relating to LFSL's role as ACD of the
WEIF", Investment Week discloses.

Since the April statements, PricewaterhouseCoopers has been
appointed to advise on the proposed scheme and act as prospective
supervisors, and LFS has "entered into ongoing discussions with
relevant stakeholders to further develop the detailed terms of the
scheme" and "significant progress" has been made in developing the
structure of the scheme, Investment Week relates.

According to Investment Week, a spokesperson for LFS said: "The
development of the settlement scheme for LF Woodford Equity Income
fund investors agreed with the FCA, as outlined on April 20, is
progressing to plan and we expect to announce further details of
the scheme, in the form of the practice statement letter, in
September."

Subject to discussions between Link Group and the regulator, and
the availability of the court, LFS expected to publish a practice
statement letter in September, which will notify investors of the
scheme launch and add further details about the key terms of the
scheme, Investment Week relays.

The letter will also offer details of the first court hearing in
relation to the scheme, Investment Week says.  During this hearing,
the court will consider "certain preliminary issues" and be asked
for permission to hold meetings of investors to vote on the scheme,
according to Investment Week.



                           *********


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

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