/raid1/www/Hosts/bankrupt/TCREUR_Public/230919.mbx
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, September 19, 2023, Vol. 24, No. 188
Headlines
F R A N C E
CLAUDIUS FINANCE: S&P Cuts ICR to 'B+' on Dividend Recapitalization
G E R M A N Y
B-ON: Files for Insolvency in Aachen District Court
I R E L A N D
BAIN CAPITAL 2017-1: Moody's Affirms B2 Rating on Class F Notes
ENDO INTERNATIONAL: Annual Meeting in Dublin Adjourned
MALLINCKRODT: Set to Seek Bankruptcy Protection in Ireland Again
ROCKFORD TOWER 2023-1: S&P Assigns B-(sf) Rating on Cl. F Notes
TIKEHAU CLO XI: S&P Assigns Prelim. B-(sf) Rating on Class F Notes
L U X E M B O U R G
METALCORP GROUP: S&P Withdraws 'SD' LongTerm Issuer Credit Rating
M A C E D O N I A
SKOPJE: S&P Affirms BB- LongTerm ICR & Alters Outlook to Negative
S P A I N
HAYA HOLDCO 2: Moody's Lowers CFR to 'C', Outlook Remains Stable
SANTANDER CONSUMER 2023-1: Moody's Assigns (P)B1 Rating to E Notes
U N I T E D K I N G D O M
AZURE FINANCE 2: Moody's Affirms Caa1 Rating on GBP6.1MM F Notes
BUCKINGHAM GROUP: Subcontractors Fear Bad Debts May Top GBP100MM
COBHAM ULTRA: S&P Affirms 'B-' ICR & Alters Outlook to Negative
ENQUEST PLC: S&P Affirms 'B' LT ICR & Alters Outlook to Stable
FORMULA K: Goes Into Administration
POLARIS PLC 2023-2: Moody's Assigns (P)B3 Rating to 2 Tranches
WILKO LTD: Another 86 Stores Set to Close This Week
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F R A N C E
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CLAUDIUS FINANCE: S&P Cuts ICR to 'B+' on Dividend Recapitalization
-------------------------------------------------------------------
S&P Global Ratings lowered its rating on Claudius Finance Parent
S.a.r.l. (Cegid) to 'B+' from 'BB-', and on its EUR75 million
revolving credit facility (RCF) and existing EUR880 million
first-lien term loan to 'B+' from 'BB-' with a '3' recovery
rating.
S&P assigned its 'B+' issue and '3' recovery rating to the proposed
EUR700 million first-lien term loan and the proposed EUR50 million
additional RCF, indicating its expectation of average recovery
(rounded estimate 65%) in the event of a payment default.
The stable outlook reflects S&P's expectation that Cegid's leverage
will fall below 6.5x in 2024, supported by strong EBITDA growth and
a prudent financial policy.
S&P said, "The announced dividend recapitalization will lead to a
peak in leverage in 2023, but we expect the company to reduce debt
through EBITDA growth thereafter. We expect that following the
transaction our adjusted leverage for Cegid will increase to 7.5x
in 2023 (6.1x excluding the PIK facility) from about 4.4x in 2022
pro forma for the acquisitions. We forecast leverage to swiftly
decline to about 6.5x in 2024 (5.2x excluding the PIK facility) and
further decline below 6.0x (less than 5.0x excluding the PIK
facility) in 2025, thanks to continued strong demand for "software
as a service" (SaaS) solutions and solid profitability of 35%-38%,
supported by the scalability of the SaaS offering, operating
leverage, and efficient cost management and cost synergies. We
include the proposed PIK at the topco within our adjusted metrics,
but we recognize that it will not burden the company's cash flows.
We also understand there is no intention to make any cash interest
payments toward the PIK in the form of further dividends or to
replace it with cash-paying debt at the operating company."
Despite the negative impact of the dividend recapitalization, the
rating is supported by strong generation of free operating cash
flow (FOCF), historically moderate leverage, and the owners'
commitment to deleveraging. Cegid has a sound track record of
deleveraging under Silver Lake's ownership. The company has paid no
dividends since the leveraged buyout in 2016, and we do not
anticipate other distributions in the next two to four years (we
expect Silver Lake will hold its stake at least over this period).
The company is well positioned to cover bolt-on acquisitions with
the existing RCF and internal cash flows, while we understand
larger transformative acquisitions are to be cautiously reviewed
and partially funded by Silver Lake to avoid further increase in
leverage. That said, S&P views Cegid's financial policy as a key
constraint to the rating because we expect the owner will continue
to pursue debt-funded acquisitions to expand the business.
SaaS migration and new customers will drive organic growth. The
group's strong offering in SaaS products, accounting for about 70%
of revenue, provides strong scalability and growth potential. S&P
expects about 30% of the revenue growth will be driven by cross-
and up-selling initiatives, another 30% by pricing initiatives
linked to inflation and enhanced product features, and the
remaining growth will be attributable to new clients and
migration.
Recent acquisitions of Talentsoft and Grupo Primavera enhanced
Cegid's human capital management (HCM) solutions and expanded its
presence in other European markets outside of France. Cegid
maintains a leading position in French enterprise resource planning
(ERP) market for small and midsize enterprises (SMEs) and benefits
from more than 80% recurring revenue (predominantly SaaS). The
recent acquisitions enhance Cegid's scale and presence in new
European markets, where it also benefits from a dominant position
in finance ERP, though in much more fragmented markets.
S&P said, "The stable outlook reflects our expectation that Cegid's
S&P Global Ratings-adjusted leverage will fall below 6.5x in 2024,
supported by strong cash flow generation and a prudent financial
policy, after peaking at about 7.5x in 2023 after the transaction.
We also forecast FOCF to debt at close to 10%, which is in line
with the current rating level.
"We could lower the rating if Cegid's revenue and EBITDA growth are
materially below our base case, leading to adjusted debt to EBITDA
higher than 6.5x (more than 5.5x excluding the PIK facility) for a
sustained period, and FOCF to debt meaningfully below 10%, for
example, caused by large debt-funded acquisitions, or by a more
aggressive financial policy, or adverse market developments.
"We could consider an upgrade if adjusted leverage falls below 5x
sustainably, alongside the sponsor's strong commitment to
maintaining the ratio at this level; and FOCF to debt increases to
well above 10%."
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G E R M A N Y
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B-ON: Files for Insolvency in Aachen District Court
---------------------------------------------------
Chris Randall at electrive reports that the car manufacturer B-ON,
which had taken over Streetscooter, among others, is apparently
bankrupt.
The group has now filed for insolvency at the Aachen District Court
and put the production of the Streetscooter on hold, electrive
relates.
It is unclear how the imbalance came about, electrive states. The
company had orders, said Juergen Mueller, chairman of the works
council, to the Aachener Zeitung, electrive notes.
The business figures for the past year presented in April also
looked good at first, electrive states. At that time, the company
reported a turnover of US$125 million (about EUR114 million at the
time) as well as contracts and letters of intent for the sale of a
total of 11,000 vehicles in 2022, electrive discloses.
Negotiations for a further 30,000 vehicles in the current year were
also well advanced, it was said in the spring, electrive recounts.
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I R E L A N D
=============
BAIN CAPITAL 2017-1: Moody's Affirms B2 Rating on Class F Notes
---------------------------------------------------------------
Moody's Investors Service has upgraded the ratings on the following
notes issued by Bain Capital Euro CLO 2017-1 Designated Activity
Company:
EUR31,500,000 Class B-1 Senior Secured Floating Rate Notes due
2030, Upgraded to Aaa (sf); previously on Jan 26, 2022 Upgraded to
Aa1 (sf)
EUR15,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2030,
Upgraded to Aaa (sf); previously on Jan 26, 2022 Upgraded to Aa1
(sf)
EUR22,000,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2030, Upgraded to Aa3 (sf); previously on Jan 26, 2022
Upgraded to A1 (sf)
Moody's has also affirmed the ratings on the following notes:
EUR206,500,000 (Current outstanding amount EUR159,875,000) Class A
Senior Secured Floating Rate Notes due 2030, Affirmed Aaa (sf);
previously on Jan 26, 2022 Affirmed Aaa (sf)
EUR17,500,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2030, Affirmed Baa1 (sf); previously on Jan 26, 2022
Upgraded to Baa1 (sf)
EUR22,500,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2030, Affirmed Ba2 (sf); previously on Jan 26, 2022
Affirmed Ba2 (sf)
EUR10,500,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2030, Affirmed B2 (sf); previously on Jan 26, 2022
Affirmed B2 (sf)
Bain Capital Euro CLO 2017-1 Designated Activity Company issued in
October 2017, is a collateralised loan obligation (CLO) backed by a
portfolio of mostly high-yield senior secured European loans. The
portfolio is managed by Bain Capital Credit, Ltd. The transaction's
reinvestment period ended in October 2021.
RATINGS RATIONALE
The rating upgrades on the Class B-1, Class B-2 and Class C notes
are primarily a result of the deleveraging of the Class A notes
following the amortisation of the underlying portfolio since the
last rating review in May 2023.
According to the trustee report dated August 2023 [1], Class A
notes have paid down by approximately EUR28.5 million (13.8% of the
original balance) since the last rating review in May 2023 and
EUR46.6 million (22.6%) since it started paying down in April 2022.
In addition, Moody's notes that there are principal proceeds of
EUR16.4 million [1] which Moody's have assumed will be used to pay
down the Class A notes further.
As a result of the deleveraging, the over-collateralisation ratios
of the rated senior notes have improved. The Class A/B and Class C
OC ratios in August 2023 [1] are reported at 140.6% and 127.1%
compared to 138.0% and 126.2% in May 2023 [2]. Moody's notes that
the August 2023 [1] principal payments of EUR16.4 million are not
reflected in the reported OC ratios.
In light of reinvestment restrictions during the amortisation
period, and therefore the limited ability to effect significant
changes to the current collateral pool, Moody's analysed the deal
assuming a higher likelihood that the collateral pool
characteristics would maintain an adequate buffer relative to
certain covenant requirements. In particular, Moody's assumed that
the deal will benefit from a shorter amortisation profile than it
had assumed at the last rating review in May 2023.
Key model inputs:
The key model inputs Moody's uses in its analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on its published methodology and
could differ from the trustee's reported numbers.
In its base case, Moody's used the following assumptions:
Performing par and principal proceeds balance: EUR290.4m
Defaulted Securities: EUR7.9m
Diversity Score: 54
Weighted Average Rating Factor (WARF): 2952
Weighted Average Life (WAL): 3.5 years
Weighted Average Spread (WAS) (before accounting for Euribor
floors): 3.7%
Weighted Average Recovery Rate (WARR): 44.1%
Par haircut in OC tests and interest diversion test: 1.1%
The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on future
defaults is based primarily on the seniority of the assets in the
collateral pool. In each case, historical and market performance
and a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporates these default and recovery
characteristics of the collateral pool into its cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analysing.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
December 2021.
Counterparty Exposure:
The rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank, using the
methodology "Moody's Approach to Assessing Counterparty Risks in
Structured Finance" published in June 2022. Moody's concluded the
ratings of the notes are not constrained by these risks.
Factors that would lead to an upgrade or downgrade of the ratings:
The rated notes' performance is subject to uncertainty. The notes'
performance is sensitive to the performance of the underlying
portfolio, which in turn depends on economic and credit conditions
that may change. The collateral manager's investment decisions and
management of the transaction will also affect the notes'
performance.
Additional uncertainty about performance is due to the following:
-- Portfolio amortisation: The reinvestment period ended in
October 2021. The main source of uncertainty in this transaction is
the pace of amortisation of the underlying portfolio, which can
vary significantly depending on market conditions and have a
significant impact on the notes' ratings. Amortisation could
accelerate as a consequence of high loan prepayment levels or
collateral sales by the collateral manager or be delayed by an
increase in loan amend-and-extend restructurings. Fast amortisation
would usually benefit the ratings of the notes beginning with the
notes having the highest prepayment priority.
-- Weighted average life: The notes' ratings are sensitive to the
weighted average life assumption of the portfolio, which could
lengthen as a result of the manager's decision to reinvest in new
issue loans or other loans with longer maturities, or participate
in amend-to-extend offerings.
-- Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's
over-collateralisation levels. Further, the timing of recoveries
and the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's analysed
defaulted recoveries assuming the lower of the market price or the
recovery rate to account for potential volatility in market prices.
Recoveries higher than Moody's expectations would have a positive
impact on the notes' ratings.
In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
other Moody's analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.
ENDO INTERNATIONAL: Annual Meeting in Dublin Adjourned
------------------------------------------------------
Endo International plc held its 2023 Annual General Meeting of
Shareholders in Dublin, Ireland, on September 7, 2023.
During the Annual Meeting of Shareholders, none of the nominees to
the Board of Directors of the Company received a majority of votes
cast at the Annual Meeting in favor of their re-election. As no
shareholders had proposed alternative candidates for election to
the Board, with the consent of the Annual Meeting, the Annual
Meeting was adjourned to allow the Board to consider the voting
results and to take action(s) as the Board determined to be in the
best interests of the Company.
Given that Irish law requires the Company have at least two
directors and the potentially serious and damaging consequences to
the Company and its stakeholders if the Company did not have a
functioning Board, the Board resolved to re-appoint Jennifer M.
Chao and Blaise Coleman, being the two individuals who received the
greatest number of shareholder votes in favor of their re-election
at the Annual Meeting, as directors with effect from immediately
following the conclusion of the Annual Meeting to serve until the
next following annual general meeting of shareholders of the
Company or until their death, resignation, retirement,
disqualification or removal, if earlier.
Given that the Company's Memorandum and Articles of Association
require that the Company have at least five directors, following
the conclusion of the Annual Meeting, the Continuing Directors held
a meeting and resolved to appoint each of Shane M. Cooke, M.
Christine Smith, Ph.D. and Nancy J. Hutson, Ph.D., being the
individuals who after the Continuing Directors received the next
greatest number of votes in favor of their re-election at the
Annual Meeting to also serve as directors until the next following
annual general meeting of shareholders of the Company or until
their death, resignation, retirement, disqualification or removal,
if earlier.
The Initial Appointed Directors then held a subsequent meeting and
further resolved to appoint each of William P. Montague, Michael
Hyatt and Mark G. Barberio to serve as directors until the next
following annual general meeting of shareholders of the Company or
until their death, resignation, retirement, disqualification or
removal, if earlier. For each of the Appointed Directors, factors
were considered so that the composition of the Appointed Directors
appropriately reflects the right mix of perspectives, skills,
diversity and experience for the Company, including as it continues
through the Chapter 11 process. The Appointed Directors then
determined that each of Messrs. Barberio, Cook, Hyatt and Montague,
Ms. Chao and Drs. Hutson and Smith is an "independent director"
under Nasdaq Rule 5605(a)(2) and that each of Messrs. Barberio,
Cook and Montague and Ms. Chao is a "financially sophisticated
audit committee member" under Nasdaq Rule 5605(c)(2)(A) and an
"audit committee financial expert" under Item 407(d)(5)(ii) and
(iii) of Regulation S-K.
About Endo International
Endo International plc -- http://www.endo.com/-- is a generics and
branded pharmaceutical company. It develops, manufactures, and
sells branded and generic products to customers in a wide range of
medical fields, including endocrinology, orthopedics, urology,
oncology, neurology, and other specialty areas.
On Aug. 16, 2022, Endo International and certain of its
subsidiaries initiated voluntary prearranged Chapter 11 proceedings
(Bankr. S.D.N.Y. Lead Case No. 22-22549). The cases are pending
before Judge James L. Garrity, Jr.
The Debtors tapped Skadden, Arps, Slate, Meagher & Flom, LLP as
legal counsel; PJT Partners, LP as investment banker; and Alvarez &
Marsal North America, LLC as financial advisor. Kroll
Restructuring Administration, LLC is the claims agent and
administrative advisor. A Web site dedicated to the restructuring
is at http://www.endotomorrow.com/
Roger Frankel, the legal representative for future claimants in the
Chapter 11 cases, tapped Frankel Wyron LLP and Young Conaway
Stargatt & Taylor, LLP as legal counsels, and Ducera Partners, LLC
as investment banker.
The U.S. Trustee for Region 2 appointed an official committee of
unsecured creditors on Sept. 2, 2022. The committee tapped Kramer
Levin Naftalis & Frankel as legal counsel; Lazard Freres & Co. LLC
as investment banker; and Dundon Advisers, LLC and Berkeley
Research Group, LLC as financial advisors.
Meanwhile, the official committee representing the Debtors' opioid
claimants tapped Cooley, LLP as bankruptcy counsel; Akin Gump
Strauss Hauer & Feld, LLP as special counsel; Province, LLC as
financial advisor; and Jefferies, LLC, as investment banker.
David M. Klauder, Esq., the court-appointed fee examiner, is
represented by Bielli & Klauder, LLC.
MALLINCKRODT: Set to Seek Bankruptcy Protection in Ireland Again
----------------------------------------------------------------
Thomas Hubert at The Currency reports that less than two years
after its first examinership, Mallinckrodt is set to seek
bankruptcy protection in Ireland once again.
According to The Currency, the pharmaceutical group has entered
Chapter 11 bankruptcy proceedings in the US for the second time in
two years, with its Dublin HQ and IP centre due to follow suit in
Ireland this week.
About Mallinckrodt plc
Mallinckrodt plc is global business consisting of multiple wholly
owned subsidiaries that develop, manufacture, market and distribute
specialty pharmaceutical products and therapies. Areas of focus
include autoimmune and rare diseases in specialty areas like
neurology, rheumatology, nephrology, pulmonology and ophthalmology;
immunotherapy and neonatal respiratory critical care therapies;
analgesics and gastrointestinal products.
Mallinckrodt plc and certain of its affiliates sought Chapter 11
protection (Bankr. D. Del. Lead Case No. 23-11258) on August 28,
2023.
Mallinckrodt plc disclosed $5,106,900,000 in assets and
$3,512,000,000 in liabilities as of June 30, 2023. Bryan M.
Reasons, authorized signatory, signed the petition.
Judge John T. Dorsey oversees the cases.
The Debtors tapped Latham & Watkins, LLP and Richards, Layton &
Finger, P.A. as their bankruptcy counsel; Arthur Cox and Wachtell,
Lipton, Rosen & Katz as corporate and finance counsel; Guggenheim
Securities, LLC as investment banker; and AlixPartners, LLP, as
restructuring advisor.
ROCKFORD TOWER 2023-1: S&P Assigns B-(sf) Rating on Cl. F Notes
---------------------------------------------------------------
S&P Global Ratings assigned its credit ratings to Rockford Tower
Europe CLO 2023-1 DAC's class A, B-1, B-2, C, D, E, and F notes. At
closing, the issuer also issued subordinated notes.
The ratings reflect S&P's assessment of:
-- The diversified collateral pool, which primarily comprises
broadly syndicated speculative-grade senior-secured term loans and
bonds that are governed by collateral quality tests.
-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.
-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.
-- The transaction's legal structure, which is bankruptcy remote.
-- The transaction's counterparty risks, which S&P is in line with
S&P's counterparty rating framework.
Portfolio benchmarks
CURRENT
S&P weighted-average rating factor 2,828.66
Default rate dispersion 617.26
Weighted-average life (years) 4.74
Obligor diversity measure 118.41
Industry diversity measure 21.43
Regional diversity measure 1.35
Transaction key metrics
CURRENT
Portfolio weighted-average rating
derived from S&P's CDO evaluator B
'CCC' category rated assets (%) 3.36
Covenanted 'AAA' weighted-average recovery (%) 37.52
Covenanted weighted-average spread (%) 4.20
Covenanted weighted-average coupon (%) 4.50
Asset priming obligations and uptier priming debt
Under the transaction documents, the issuer can purchase asset
priming obligations and/or uptier priming debt to address the risk,
where a distressed obligor could either move collateral outside the
existing creditors' covenant group or incur new money debt senior
to the existing creditors.
Rating rationale
Under the transaction documents, the rated notes will pay quarterly
interest unless a frequency switch event occurs. Following this,
the notes will switch to semiannual payments. The portfolio's
reinvestment period will end approximately 4.59 years after
closing.
The portfolio is well-diversified, primarily comprising broadly
syndicated speculative-grade senior-secured term loans and
senior-secured bonds. Therefore, S&P has conducted our credit and
cash flow analysis by applying its criteria for corporate cash flow
CDOs.
S&P said, "In our cash flow analysis, we used the EUR375 million
target par amount, and the portfolio's covenanted weighted-average
spread (4.20%), covenanted weighted-average coupon (4.50%), and
covenanted weighted-average recovery rates at each rating level. We
applied various cash flow stress scenarios, using four different
default patterns, in conjunction with different interest rate
stress scenarios for each liability rating category.
"Under our structured finance sovereign risk criteria, we consider
that the transaction's exposure to country risk is sufficiently
mitigated at the assigned ratings.
"Until the end of the reinvestment period on April 15, 2028, the
collateral manager may substitute assets in the portfolio for so
long as our CDO Monitor test is maintained or improved in relation
to the initial ratings on the notes. This test looks at the total
amount of losses that the transaction can sustain as established by
the initial cash flows for each rating, and it compares that with
the current portfolio's default potential plus par losses to date.
As a result, until the end of the reinvestment period, the
collateral manager may through trading deteriorate the
transaction's current risk profile, as long as the initial ratings
are maintained.
"The transaction's documented counterparty replacement and remedy
mechanisms adequately mitigate its exposure to counterparty risk
under our current counterparty criteria.
"The transaction's legal structure and framework is bankruptcy
remote, in line with our legal criteria.
"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe our rating is commensurate
with the available credit enhancement for the class A notes. Our
credit and cash flow analysis indicates that the available credit
enhancement for the class B-1, B-2, C, D, E, and F notes could
withstand stresses commensurate with higher ratings than those we
have assigned. However, as the CLO will be in its reinvestment
phase starting from closing, during which the transaction's credit
risk profile could deteriorate, we have capped our ratings assigned
to the notes.
"Taking the above factors into account and following our analysis
of the credit, cash flow, counterparty, operational, and legal
risks, we believe that our ratings are commensurate with the
available credit enhancement for all the rated classes of notes.
"In addition to our standard analysis, to provide an indication of
how rising pressures among speculative-grade corporates could
affect our ratings on European CLO transactions, we have also
included the sensitivity of the ratings on the class A to E notes
based on four hypothetical scenarios.
"As our ratings analysis makes additional considerations before
assigning ratings in the 'CCC' category, and we would assign a 'B-'
rating if the criteria for assigning a 'CCC' category rating are
not met, we have not included the above scenario analysis results
for the class F notes."
The transaction securitizes a portfolio of primarily senior-secured
leveraged loans and bonds, and is managed by Rockford Tower Capital
Management LLC.
Environmental, social, and governance (ESG) factors
S&P regards the exposure to ESG credit factors in the transaction
as being broadly in line with our benchmark for the sector.
Primarily due to the diversity of the assets within CLOs, the
exposure to environmental credit factors is viewed as below
average, social credit factors are below average, and governance
credit factors are average. For this transaction, the documents
prohibit assets from being related to certain activities,
including, but not limited to the following:
Any obligor whose primary business activity is:
-- Generation of electricity using coal;
-- Trade in ozone depleting substances; or endangered or protected
wildlife;
-- Production of or trade in tobacco; or
-- Provision of services relating to payday lending; or
Any obligor that generates more than 25% of its revenue from:
-- Production of or trade in pornography or prostitution;
-- Ownership or operation of private prisons;
-- Speculative extraction of oil and gas (including tar sands and
arctic drilling); or
-- The mining or processing of coal; or
Any obligor that generates any revenue from:
-- Manufacture of cigarettes and other tobacco products; or
-- Production of or trade in controversial weapons, or the
manufacture, distribution or sale of controversial weapons.
Accordingly, since the exclusion of assets from these industries
does not result in material differences between the transaction and
our ESG benchmark for the sector, S&P has not made any specific
adjustments in its rating analysis to account for any ESG-related
risks or opportunities.
Ratings list
CLASS RATING* AMOUNT INTEREST RATE§ CREDIT
(MIL. EUR) ENHANCEMENT (%)
A AAA (sf) 232.40 3mE + 1.75% 38.03
B-1 AA (sf) 23.80 3mE + 2.50% 29.01
B-2 AA (sf) 10.00 6.50% 29.01
C A (sf) 24.40 3mE + 3.35% 22.51
D BBB- (sf) 26.20 3mE + 5.20% 15.52
E BB- (sf) 16.00 3mE + 7.15% 11.25
F B- (sf) 10.40 3mE + 9.55% 8.48
Sub notes NR 32.50 N/A N/A
*The ratings assigned to the class A, B-1, and B-2 notes address
timely interest and ultimate principal payments. The ratings
assigned to the class C, D, E, and F notes address ultimate
interest and principal payments.
§The payment frequency switches to semiannual and the index
switches to 6mE when a frequency switch event occurs.
NR--Not rated.
N/A--Not applicable.
3mE--Three-month Euro Interbank Offered Rate.
6mE--Six-month Euro Interbank Offered Rate.
TIKEHAU CLO XI: S&P Assigns Prelim. B-(sf) Rating on Class F Notes
------------------------------------------------------------------
S&P Global Ratings assigned preliminary credit ratings to Tikehau
CLO XI DAC's class A to F European cash flow CLO notes. At closing,
the issuer will also issue unrated subordinated notes.
Under the transaction documents, the rated notes will pay quarterly
interest unless a frequency switch event occurs. Following this,
the notes will permanently switch to semiannual payments.
The portfolio's reinvestment period will end approximately four and
a half years after closing.
The preliminary ratings reflect S&P's assessment of:
-- The diversified collateral pool, which primarily comprises
broadly syndicated speculative-grade senior-secured term loans and
bonds that are governed by collateral quality tests.
-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.
-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.
-- The transaction's legal structure, which S&P expects to be
bankruptcy remote.
-- The transaction's counterparty risks, which S&P expects to be
in line with our counterparty rating framework.
Portfolio benchmarks
CURRENT
S&P weighted-average rating factor 2,842.21
Default rate dispersion 403.02
Weighted-average life (years) 4.58
Obligor diversity measure 119.64
Industry diversity measure 23.06
Regional diversity measure 1.28
Transaction key metrics
CURRENT
Portfolio weighted-average rating
derived from S&P's CDO evaluator B
'CCC' category rated assets (%) 1.14
'AAA' weighted-average recovery (%) 35.69
Floating-rate assets (%) 91.71
Weighted-average spread (net of floors; %) 4.20
Weighted-average covenant coupon (%) 5.00
S&P said, "Our preliminary ratings reflect our assessment of the
preliminary collateral portfolio's credit quality, which has a
weighted-average rating of 'B'. We understand that at closing, the
portfolio will be well-diversified, primarily comprising broadly
syndicated speculative-grade senior-secured term loans and
senior-secured bonds. Therefore, we have conducted our credit and
cash flow analysis by applying our criteria for corporate cash flow
CDOs.
"In our cash flow analysis, we used the EUR350 million target par
amount, the covenanted weighted-average spread (4.20%), the
covenanted weighted-average coupon (5.00%), and the covenanted
weighted-average recovery rate at the 'AAA' level. We applied
various cash flow stress scenarios, using four different default
patterns, in conjunction with different interest rate stress
scenarios for each liability rating category.
"Under our structured finance sovereign risk criteria, we consider
that the transaction's exposure to country risk is sufficiently
mitigated at the assigned preliminary ratings.
"At closing, we expect that the transaction's documented
counterparty replacement and remedy mechanisms will adequately
mitigate its exposure to counterparty risk under our current
counterparty criteria.
"We expect the transaction's legal structure and framework to be
bankruptcy remote, in line with our legal criteria."
Until the end of the reinvestment period on April 15, 2028, the
collateral manager may substitute assets in the portfolio for so
long as our CDO Monitor test is maintained or improved in relation
to the initial ratings on the notes. This test looks at the total
amount of losses that the transaction can sustain as established by
the initial cash flows for each rating and compares that with the
current portfolio's default potential plus par losses to date. As a
result, until the end of the reinvestment period, the collateral
manager may through trading deteriorate the transaction's current
risk profile, if the initial ratings are maintained.
S&P said, "Our credit and cash flow analysis show that the class
B-1 to E notes benefit from break-even default rate (BDR) and
scenario default rate cushions that we typically consider to be in
line with higher ratings than those assigned. However, as the CLO
is still in its reinvestment phase, during which the transaction's
credit risk profile could deteriorate, we have capped our
preliminary ratings on the notes.
"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe our preliminary ratings
are commensurate with the available credit enhancement for the
class A, B-1, B-2, C, D, E, and F notes.
"In addition to our standard analysis, to indicate how rising
pressures among speculative-grade corporates could affect our
ratings on European CLO transactions, we have also included the
sensitivity of the ratings on the class A to E debt based on four
hypothetical scenarios. The results are shown in the chart below.
"As our ratings analysis makes additional considerations before
assigning ratings in the 'CCC' category, and we would assign a 'B-'
rating if the criteria for assigning a 'CCC' category rating are
not met, we have not included the above scenario analysis results
for the class F notes."
Environmental, social, and governance (ESG) credit factors
We regard the exposure to ESG credit factors in the transaction as
being broadly in line with our benchmark for the sector. Primarily
due to the diversity of the assets within CLOs, the exposure to
environmental credit factors is viewed as below average, social
credit factors are below average, and governance credit factors are
average. For this transaction, the documents prohibit assets from
being related to the following industries: the production or trade
of illegal drugs or narcotics; payday lending; manufacture or trade
in pornographic materials; and tobacco production. Accordingly,
since the exclusion of assets from these industries does not result
in material differences between the transaction and our ESG
benchmark for the sector, no specific adjustments have been made in
our rating analysis to account for any ESG-related risks or
opportunities.
Ratings list
CLASS PRELIM. PRELIM. SUB (%) INTEREST RATE§
RATING* AMOUNT
(MIL. EUR)
A AAA (sf) 206.50 41.00 Three/six-month EURIBOR
plus 1.75%
B-1 AA (sf) 33.80 28.49 Three/six-month EURIBOR
plus 2.50%
B-2 AA (sf) 10.00 28.49 6.50%
C A (sf) 21.80 22.26 Three/six-month EURIBOR
plus 3.25%
D BBB- (sf) 23.70 15.49 Three/six-month EURIBOR
plus 5.00%
E BB- (sf) 16.60 10.74 Three/six-month EURIBOR
plus 7.47%
F B- (sf) 11.40 7.49 Three/six-month EURIBOR
plus 9.66%
Sub. Notes NR 31.30 N/A N/A
*The preliminary ratings assigned to the class A, B-1, and B-2
notes address timely interest and ultimate principal payments. The
preliminary ratings assigned to the class C, D, E, and F notes
address ultimate interest and principal payments.
§The payment frequency switches to semiannual and the index
switches to six-month
EURIBOR when a frequency switch event occurs.
===================
L U X E M B O U R G
===================
METALCORP GROUP: S&P Withdraws 'SD' LongTerm Issuer Credit Rating
-----------------------------------------------------------------
S&P Global Ratings withdrew its ratings on Metalcorp Group S.A.
because of insufficient information to maintain them. The long-term
issuer credit rating was 'SD' (selective default) at the time of
the withdrawal. The issue rating on the senior secured debt was
'C'.
=================
M A C E D O N I A
=================
SKOPJE: S&P Affirms BB- LongTerm ICR & Alters Outlook to Negative
-----------------------------------------------------------------
S&P Global Ratings, on Sept. 15, 2023, revised to negative from
stable its outlook on the long-term ratings on the Municipality of
Skopje, the capital of North Macedonia and affirmed its 'BB-'
long-term issuer credit rating on the municipality.
Outlook
The negative outlook reflects the risks that still low tax revenue,
coupled with high spending on public services and municipal
companies, could lead to further depletion of cash and continued
accumulation of overdue payables.
Downside scenario
S&P could lower its rating in the next 12 months if Skopje posted
weaker-than-anticipated budgetary results, leading to increased
volumes of overdue payables and structural deterioration of its
cash position. A downgrade of North Macedonia (BB-/Stable/B) would
also lead to a downgrade of the municipality.
Upside scenario
S&P could revise its outlook back to stable if Skopje improved its
cash levels, for example through higher tax revenue or more
efficient cost saving measures. Such a scenario would also require
that the city start reducing its accumulated overdue payables.
Rationale
S&P revised the outlook to negative because it sees risks that
Skopje's currently low cash levels will not recover without the
municipality continuing to accumulate overdue payables.
S&P said, "The ratings reflect our expectation that revenue growth
will improve, thanks to anticipated economic growth that will
support a recovery in real estate activity. However, high subsidies
to municipal companies and inflation will continue to pressure
expenditure. Although we expect Skopje will cut capital
expenditure, this might not be sufficient for the city to avoid
increasing its unpaid obligations. These combined conditions will
also prevent fast accumulation of cash to cover expenditure and to
comfortably service debt." The ratings are constrained by Skopje's
low wealth levels in an international comparison, lack of firm
financial policies, and challenging political environment. At the
same time, the city's debt burden remains low in an international
perspective, which supports the rating.
Evolving institutional framework, political volatility, and limited
adherence to financial policies, as well as weak oversight of
municipal companies
S&P said, "We expect weak real GDP growth to continue limiting
Skopje's economy. The local economy is characterized by low average
income and wealth compared with that of other European cities. We
forecast national GDP per capita will reach about $8,300 in 2023,
with still-low, although increasing, real GDP growth of 2.7% on
average over 2023-2025. We expect growth in the capital city to be
in line with the national growth trend. Skopje is the country's
financial and administrative center, contributing to more than 40%
of North Macedonia's total GDP. It also hosts well-diversified
production facilities and the national headquarters of foreign
companies. The demand for real estate activities has somewhat
declined over the past year due to high interest rates, limited
construction capacity, and political volatility that increases
uncertainties regarding future property tax policy. We nonetheless
expect a gradual recovery in this sector supported by stronger
economic growth, also supporting an increase in tax revenue."
S&P's rating on Skopje is constrained by the evolving institutional
framework under which the municipality operates. Discussions for
further decentralization continue, with the focus on broadening
local and regional governments' responsibilities and increasing
their fiscal autonomy, but with no clear progress. Effective
implementation of changes to the municipal system remains limited
due to political volatility at the central level and a low level of
cooperation and willingness to support the sector, in particular
since most of the elected mayors in North Macedonia belong to the
central level opposition party. Municipalities are not allowed to
set the main tax rates (such as property taxes) but can choose the
rate from a given range, which allows them to increase their
revenue. Other communal fees can be set individually. That said,
fees and tax rates are typically set at the lower end of the range
due to political considerations.
S&P said, "Skopje lacks reliable long-term financial planning and
effective liquidity and debt policies, which we consider a rating
weakness. While budget approval is relatively smooth, annual budget
outcomes, especially on the capital side, often differ markedly
from plans. The municipality's efforts to expand its property tax
base and to better control operating expenses have gained only mild
success so far, partly because of political disagreements. The
mayor faces obstacles in approving policy decisions within the city
council, including debt intake, due to the lack of a stable
coalition. This further reduces the predictability of the city's
budgetary trajectory, in our view. We believe that the absence of
formal debt and liquidity policies has contributed to the city's
increasing amount of payables and reduced cash levels. While the
municipality's accounts are audited by a government body that
reports to parliament, we consider the budget's transparency
relatively weak, and the oversight and management of the municipal
companies sector as loose."
Still-weak budgetary results and limited debt issuance strain the
liquidity position
S&P said, "Over the forecast horizon through 2025, we expect the
operating surplus to slightly improve, but remain below
pre-pandemic levels. We believe that stronger economic growth in
2024 and 2025, and possibly lower interest rates, will support
recovery in revenue related to the real estate market, including
construction fees and property tax receipts. Although we do not
expect management to increase tax rates or communal fees, it may
improve tax collection through a more complete taxpayer database
and increased tax inspection activities. Adding to this is our
expectation for a continuing increase in central government
transfers, driven by the law amendment to distribute more personal
income tax and value-added tax revenue to municipalities, and
compensation for wage and cost increases for decentralized
functions that are fully funded by the central government. Also, we
believe expenditure will increase at a slower pace thanks to
cost-saving measures and lower energy-related costs. Inflation,
though currently lower than the previous year, will continue
putting pressure on expenditure through contracted services and
salaries, which are linked to minimum wages. Substantial pressure
stems from subsidies granted to the municipal companies,
particularly for public transportation. Subsidies to households to
mitigate inflation effects will also continue. At the same time, we
believe there is a risk that the city will continue to defer some
of its due obligations to keep expenditure lower. This would
indicate that actual expenditure is higher than the accounts show.
"In our base-case scenario, we expect only a mild deficit after
capital accounts on average over 2024-2025, due to cuts in capital
spending. In our view, the municipality has the flexibility to
postpone some projects if funding is not secured or if there are
capacity delays. We note, however, that this comes at the expense
of the city's economic development, especially given that it
suffers from large infrastructure gaps. Skopje is focusing on
projects associated with the green transition that would lower
pollution, such as building wastewater facilities and other
recycling plants. Other projects are aimed at improving mobility,
including road repairs and the construction of roads, sidewalks,
bicycle paths, and bridges. Although capital expenditure is
relatively flexible, capital revenue is more rigid in nature as it
consists largely of central government transfers and asset sales
that are not fully controlled by the city. We think the
municipality's asset disposals are likely to remain volatile and
lower than budgeted. However, we expect central government and
EU-related funds to support the municipality and contain borrowing
needs.
"Despite low cash reserves, we don't expect the municipality to
borrow in 2023, which will make coverage of expenses and debt
service more difficult. This is because new borrowings are subject
to lengthy approval processes and we understand that no issuance
has been approved so far in the year. We expect further debt
intakes from 2024 to finance capital projects and restore cash,
which may improve the municipality's liquidity position. We
forecast Skopje's tax-supported debt will reach 27% of consolidated
operating revenue by 2025, which is low in an international
comparison, thanks to revenue increases and low debt issuance. The
city has started repaying its largest commercial loan of about
Macedonian denar (MKD) 700 million (about EUR11 million). In
addition to this loan, the municipality holds another two active
loans from the World Bank. In April, the city paid the final
installment related to the loan from the European Bank for
Reconstruction and Development. The city's debt is long term and
amortizing, in local currency, and carries a floating interest
rate. We expect an increase in interest payments, reflecting higher
interest payments from the existing and the future loans. We also
factor in the city's exposure to contingent liabilities, mainly
stemming from its municipal companies' payables and lawsuits
against the city which could materialize at some point, as in 2023
when the city had to pay MKD100 million related to a 10-year-old
overdue obligation.
"We view Skopje's liquidity position as weak. Given reduced cash
holdings, the municipality's available cash covers less than 100%
of the cost of debt servicing for the next 12 months, after
accounting for the forecast budgetary results. For the remainder of
2023, the city has only one principal payment left, which we
believe it will cover from its existing cash. Going forward, we
expect Skopje will accumulate some cash, both through better
budgetary performance and debt intake. However, we believe this
ratio will remain weak over the next two years and only gradually
improve thereafter. We consider the municipality's access to
external liquidity limited by the relatively immature local banking
system and capital markets for municipal debt."
In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the methodology
applicable. At the onset of the committee, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.
The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.
The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision. The
views and the decision of the rating committee are summarized in
the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.
Ratings List
RATINGS AFFIRMED; OUTLOOK ACTION
TO FROM
SKOPJE (MUNICIPALITY OF)
Issuer Credit Rating BB-/Negative/-- BB-/Stable/--
=========
S P A I N
=========
HAYA HOLDCO 2: Moody's Lowers CFR to 'C', Outlook Remains Stable
----------------------------------------------------------------
Moody's Investors Service has downgraded Haya Holdco 2 plc ("Haya
Holdco" or "the company") corporate family rating and the company's
backed senior secured floating rate notes due November 2025 to C
from Ca. The outlook remains stable. Concurrently, Moody's
downgraded the probability of default rating to D-PD from Ca-PD to
reflect Moody's view that the completion of its debt restructuring
on September 5, 2023, as part of an English scheme of arrangement
procedure, is considered a distressed exchange ("DE"), which is a
default under Moody's Rating Symbols and Definitions published in
May 2023.
RATINGS RATIONALE
The downgrade reflects a lower initial recovery rate following the
completion of the sale of 100% of the share capital of Haya Real
Estate, S.A.U. to Intrum Holding Spain, S.A.U. ("Intrum Spain") and
Haya Holdco's debt restructuring that resulted in a partial
redemption totalling EUR83,679,440.10 or 24% of the amount
outstanding under the backed senior secured notes issued by the
company.
Subsequent to the actions, Moody's will withdraw the ratings
following the backed senior secured notes' cancellation notice
dated September 5, 2023.
RATIONALE FOR THE STABLE OUTLOOK
The stable outlook reflects the initial recovery rate for the
noteholders. Moody's understand that as part of the restructuring,
there are certain contingent rights and potential future assets of
Haya Holdco for the ultimate benefit of the noteholders. Those
potential recoveries from such earn-outs are uncertain and
difficult to quantify for Moody's but could increase the initial
amount of recovery.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Business and
Consumer Services published in November 2021.
COMPANY PROFILE
Headquartered in Madrid, Spain, Haya Real Estate, S.A.U. is an
independent servicer of nonperforming real-estate developer (RED)
loans and real estate owned (REO) assets on behalf of financial
institutions in Spain. The company reported assets under management
amounting to EUR11.57 billion as of December 31, 2022. In the 12
months ended December 31, 2022, Haya Real Estate, S.A.U. generated
revenue of EUR173.7 million and a company-adjusted EBITDA of
EUR51.2 million.
SANTANDER CONSUMER 2023-1: Moody's Assigns (P)B1 Rating to E Notes
------------------------------------------------------------------
Moody's Investors Service has assigned provisional credit ratings
to the following Classes of Notes to be issued by SANTANDER
CONSUMER SPAIN AUTO 2023-1, FONDO DE TITULIZACION ("SANTANDER
CONSUMER SPAIN AUTO 2023-1, FT"):
EUR[ ]M Class A Notes due September 2039, Assigned (P)Aa1 (sf)
EUR[ ]M Class B Notes due September 2039, Assigned (P)Aa3 (sf)
EUR[ ]M Class C Notes due September 2039, Assigned (P)Baa1 (sf)
EUR[ ]M Class D Notes due September 2039, Assigned (P)Ba1 (sf)
EUR[ ]M Class E Notes due September 2029, Assigned (P)B1 (sf)
Moody's has not assigned any rating to the EUR[ ]M Class F Notes
due September 2039.
RATINGS RATIONALE
SANTANDER CONSUMER SPAIN AUTO 2023-1, FT is a 14 months revolving
securitisation of auto loans granted by Santander Consumer Finance
S.A. (A2/P-1 Bank Deposits; A3(cr)/P-2(cr)) ("Santander Consumer")
to mostly private obligors in Spain. Santander Consumer is acting
as originator and servicer of the loans while Santander de
Titulizacion, S.G.F.T., S.A. (NR) is the Management Company
("Gestora").
As of August 17, 2023, the provisional portfolio comprised 48,568
auto loans granted to obligors located in Spain, 97.63% of whom are
private individuals. The weighted average seasoning of the
portfolio is 11 months and its weighted average remaining term is
80 months. Around 27.65% of the loans were originated to purchase
new vehicles, while the remaining 72.35% were made to purchase used
vehicles. Geographically, the pool is concentrated mostly in
Andalucia (20.44%), Catalonia (13.59%) and Canarias (11.26%). The
portfolio, as of its cut-off date, did not include any loans in
arrears.
Moody's analysis focused, amongst other factors, on (i) an
evaluation of the underlying portfolio of loans, (ii) the
historical performance information of the total book and past ABS
transactions, (iii) the credit enhancement provided by the
subordination, the excess spread and the cash reserve, (iv) the
liquidity support available in the transaction by way of principal
to pay interest and the cash reserve; and (v) the overall legal and
structural integrity of the transaction.
According to Moody's, the transaction benefits from several credit
strengths such as the granularity of the portfolio, securitisation
experience of Santander Consumer and the significant excess spread.
However, Moody's notes that the transaction features a number of
credit weaknesses, such as a complex structure including pro-rata
payments on Class A to E Notes after the end of the revolving
period. These characteristics, amongst others, were considered in
Moody's analysis and ratings.
MAIN MODEL ASSUMPTIONS
Moody's determined the portfolio lifetime expected defaults of
4.60%, expected recoveries of 40.00% and Aa1 portfolio credit
enhancement ("PCE") of 13.00% related to borrower receivables. The
expected defaults and recoveries capture Moody's expectations of
performance considering the current economic outlook, while the PCE
captures the loss Moody's expect the portfolio to suffer in the
event of a severe recession scenario. Expected defaults and PCE are
parameters used by Moody's to calibrate its lognormal portfolio
loss distribution curve and to associate a probability with each
potential future loss scenario in the ABSROM cash flow model to
rate Consumer ABS.
Portfolio expected defaults of 4.60% are in line with the Spanish
Auto Loan ABS average and are based on Moody's assessment of the
lifetime expectation for the pool taking into account: (i)
historical performance of the loan book of the originator and in
particular of the sub-book filtered by the eligibility criteria of
the transaction, (ii) performance of the existing Auto deals
previously originated by Santander Consumer, (iii) benchmark
transactions, and (iv) other qualitative considerations.
Portfolio expected recoveries of 40.00% are in line with the
Spanish Auto Loan ABS average and are based on Moody's assessment
of the lifetime expectation for the pool taking into account: (i)
historical performance of the loan book of the originator, (ii)
benchmark transactions, and (iii) other qualitative
considerations.
PCE of 13.00% is in line with the Spanish Auto Loan ABS average and
is based on Moody's assessment of the pool taking into account the
relative ranking to originator peers in the Spanish Auto loan
market and the fact that the transaction is revolving for 14
months. The PCE of 13.00% results in an implied coefficient of
variation ("CoV") of 61.1%.
Principal Methodology
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
November 2022.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that may cause an upgrade of the ratings include: (i) a
significantly better than expected performance of the pool, (ii) an
increase in credit enhancement of the Notes, or (iii) an upgrade of
Spain's local country currency (LCC) rating.
Factors that may cause a downgrade of the ratings include: (i) a
decline in the overall performance of the pool, (ii) the
deterioration of the credit quality of Santander Consumer, or (iii)
a downgrade of Spain's local country currency (LCC) rating.
===========================
U N I T E D K I N G D O M
===========================
AZURE FINANCE 2: Moody's Affirms Caa1 Rating on GBP6.1MM F Notes
----------------------------------------------------------------
Moody's Investors Service has upgraded the ratings of two Notes in
Azure Finance No. 2 plc. The rating action reflects the increased
levels of credit enhancement for the affected Notes.
Moody's affirmed the ratings of the Notes that had sufficient
credit enhancement to maintain their current ratings.
GBP17M Class C Notes, Affirmed Aa1 (sf); previously on Feb 22,
2022 Upgraded to Aa1 (sf)
GBP5.7M Class D Notes, Upgraded to Aa2 (sf); previously on Feb 22,
2022 Upgraded to A2 (sf)
GBP7.1M Class E Notes, Upgraded to A2 (sf); previously on Feb 22,
2022 Upgraded to Baa3 (sf)
GBP6.1M Class F Notes, Affirmed Caa1 (sf); previously on Feb 22,
2022 Affirmed Caa1 (sf)
Azure Finance No.2 plc is a static cash securitisation of auto
receivables extended by Blue Motor Finance Limited (NR) to obligors
located in the United Kingdom. The portfolio consists of hire
purchase agreements extended to private obligors.
RATINGS RATIONALE
The rating action is prompted by an increase in credit enhancement
for the affected tranches.
The performance of the transaction has continued to be stable since
last year. Total delinquencies have slightly increased in the past
year, with 60 days plus arrears currently standing at 0.89% of
current pool balance up from 0.53% last year. Cumulative defaults
currently stand at 4.46% of original pool balance up from 3.58% a
year earlier.
The current default probability has been maintained at 9.50% of the
current portfolio balance and the assumption for the fixed recovery
rate is also maintained at 40%. Moody's has also maintained the
portfolio credit enhancement at 30%.
Increase in Available Credit Enhancement
Sequential amortization led to the increase in the credit
enhancement available in this transaction.
For instance, the credit enhancement for the upgraded Class D and E
Notes increased to 50.41% and 23.57% from 14.71% and 6.88%,
respectively, since the last rating action in February 2022.
Moody's considered how the liquidity available in the transaction
and other mitigants support continuity of Note payments in case of
servicer default. Each Class of Notes benefits from its own
dedicated liquidity reserve. The ratings of the Class C and D Notes
are constrained by operational risk due to lack of liquidity
coverage.
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Auto Loan- and Lease-Backed ABS" published in
November 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.
BUCKINGHAM GROUP: Subcontractors Fear Bad Debts May Top GBP100MM
----------------------------------------------------------------
Grant Prior at Construction Enquirer reports that subcontractors
fear bad debts owed to the supply chain following the collapse of
Buckingham group could top GBP100 million.
Buckingham formally entered administration with only the rail
division saved so far following a sale to Kier, Construction
Enquirer relates.
According to Construction Enquirer, sources close to Buckingham's
highest profile contract -- Liverpool's new GBP60 million Anfield
Road Stand -- said debts owed on that job alone to suppliers were
around GBP20 million.
Latest accounts filed for Buckingham Group Contracting show that on
December 31, 2021, the company owed GBP99.1 million to trade
creditors, Construction Enquirer discloses.
COBHAM ULTRA: S&P Affirms 'B-' ICR & Alters Outlook to Negative
---------------------------------------------------------------
S&P Global Ratings revised its outlook on the long-term issuer
credit rating from stable to negative on Cobham Ultra SunCo
S.a.r.l. (Ultra). S&P also affirmed its 'B-' long-term issuer
credit rating on Ultra and affirmed its issue rating of 'B-' on the
senior secured term loan B. The recovery rating is unchanged at '3'
(rounded estimate: 65%).
The negative outlook indicates that S&P anticipates credit metrics
to be worse than previously expected through 2023 and into 2024
because of the lowered adjusted profitability, and expect the high
level of cash one-offs to continue weighing on free operating cash
flow (FOCF).
S&P said, "Ultra's operating performance remains robust, although
we think that significant one-off and restructuring costs through
2023 will lead to lower-than-expected S&P Global Ratings-adjusted
profitability. In our view, Ultra's revenue in 2023 will grow by
about 10% to above $1.2 billion.
"The group's largest division, Maritime, propels absolute revenue,
and we expect this division to increase by about 10% in 2023,
stemming from strong demand. The precision control systems segment
is expected to grow at a similar rate through continued demand on
key platforms such as the B787 and F-35.
"The improvements across the business are slightly offset by slower
growth in 2023 for the intelligence and communications segment,
which experienced a strong 2022 following new contract wins. In
2024, we expect revenue to increase again, albeit at a slightly
slower rate of about 8%-10%. Ultra's reported EBITDA has also grown
in the first half of 2023 relative to 2022, and we expect margins
to rise to about 22% across the year, versus 20% in 2022. However,
as in 2022, the group is posting restructuring and one-off cash
costs through 2023 that are significantly higher than it had
anticipated, and we think these costs will reduce adjusted EBITDA
margins to below 12% for 2023.
"The total costs are forecast at about $120 million-$130 million in
2023, after a spend of $83 million in the first half, and are part
of the group's multi-year transformation agenda. Therefore, while
we expect they will fall in 2024, we do not think they will reduce
materially.
"The costs stem predominantly from restructuring and changing
management teams following the takeover by Advent International in
2022, as well as supply chain challenges, losses on
foreign-exchange hedges, legacy loss-making contracts, and other
smaller factors. In 2024, we expect margins to bounce back but
remain below 18%.
"Lower profitability will lead to significantly higher leverage and
weakened credit metrics. We expect adjusted EBITDA to be about $140
million-$150 million in 2023, significantly lower than previous
expectation of above $220 million. We forecast Ultra's gross debt
at about $4.1 billion in 2023, but stripping out the
payment-in-kind (PIK) notes, the equity-preferred certificates
(EPCs), and the interest-free preferred equity certificates
(IFPECs), which we treat as debt-like, gross debt will be about $2
billion. Even without the shareholder loans, we expect adjusted
leverage to rise to about 13.6x in 2023 and remain close to
8.5x-9.0x in 2024, making it one of the more highly leveraged
issuers across rated peers.
"We anticipate that Ultra's funds from operations (FFO) cash
interest cover will dip below 1x in 2023, because of the effect on
profitability as well as the rising interest costs through its
floating-rate debt. Ultra has begun to hedge some of this exposure,
which should mean cash interest costs in 2024 will not be much
higher than the 2023 figure of about $158 million. This should
support an improvement in FFO cash interest cover in 2024, because
we expect EBITDA to improve but remain below 1.5x.
"FOCF will likely remain negative for 2023 and 2024. We forecast
Ultra's FOCF to be negative, close to $70 million, because of the
high one-off and restructuring costs, as well as high cash interest
costs through exposure to floating rates and the elevated levels of
capital expenditure (capex) expected in 2023, of about $50 million.
The higher capex level--compared with normal levels over the past
few years of $25 million-$35 million--stems from the expansion of
Ultra's manufacturing facility in Canada and the construction of a
new site in Maidenhead, U.K., which should support the company's
growth plans.
"While we expect Ultra's FOCF to improve in 2024, it will likely
remain negative or near neutral, because the high interest burden
remains and one-off costs are unlikely to tail off entirely. This
FOCF performance reduces Ultra's ability to deleverage
organically."
Ultra has divested its forensic technology business. The forensics
division focuses on bullet identification and matching solutions
for law enforcement, and Ultra has divested the business, which was
acquired by LeadsOnline LLC. Ultra viewed the division's operations
as outside of the group's core aerospace and defense focus, hence
the sale. At this stage, S& does not have confirmation on the use
of the sale proceeds.
The negative outlook indicates that S&P anticipates credit metrics
will remain below previous expectations through 2023 and into 2024
because of lower adjusted profitability, and that the high level of
cash one-offs will continue to weigh on FOCF.
S&P said, "We could lower the rating if adjusted profitability did
not recover as expected or if there were higher-than-anticipated
one-off costs, resulting in debt to EBITDA (excluding shareholder
loans) remaining elevated above 9x in 2024, or if FFO cash interest
cover did not trend sustainably toward 1.5x. We could also lower
the rating if we expected Ultra to generate continued negative
FOCF. Furthermore, if liquidity weakened or we saw instances of
worsening credit metrics through shareholder distributions, we
could lower the rating.
"We could revise the outlook to stable if adjusted profitability
started to improve through lower one-off cash costs leading to an
improvement in credit metrics, including adjusted EBITDA margins
improving sustainably toward 18%, FFO cash interest cover improving
toward 1.5x, and FOCF trending toward neutral or becoming
positive."
ENQUEST PLC: S&P Affirms 'B' LT ICR & Alters Outlook to Stable
--------------------------------------------------------------
S&P Global Ratings revised its outlook on U.K.-headquartered oil
producer EnQuest PLC to stable from negative and affirmed its 'B'
long-term issuer credit rating. At the same time, S&P affirmed its
'B+' issue rating on EnQuest's unsecured notes due 2027.
The stable outlook reflects that S&P expects that still-high oil
prices will enable the company to continue to generate positive
free cash flow, while finding ways to sustain or expand
production.
EnQuest's new $150 million facility due in July 2027 strengthens
its liquidity position. The recently arranged facility has
diminished the company's liquidity pressure for the next 12 months,
especially given the $140 million as British pound
sterling-denominated retail bonds maturing in October 2023. The
move follows EnQuest's repayment of $153 million of debt in the
first half of 2023 and characterizes its focus on reducing leverage
in recent quarters. Nevertheless, S&P notes the company's liquidity
position is highly sensitive to oil price volatility. While EnQuest
is exposed to the volatility of cash flows, which are affected by
market conditions, the amount available for the company under the
Reserve Based Lending (RBL) facility also depends on a
redetermination every six months which factors in, among other
things, EnQuest's reserves and market oil prices. That said, the
company currently has drawn down only $240 million of the RBL (out
of $309 million available for drawdown, which is lower than the
total commitment of $500 million).
S&P said, "We expect EnQuest to generate results that are adequate
for the rating in 2023, despite somewhat lower oil prices than we
anticipated, and the 22-day shutdown of the Kraken field. We think
EnQuest will generate funds from operations to debt of about 25%
and S&P Global Ratings-adjusted debt to EBITDA of about 2.9x. In
the first six months of 2023, the company posted S&P Global
Ratings-adjusted EBITDA of $374 million and free operating cash
flow of $242 million. The average Brent oil price in the first half
of the year was about $80 per barrel (/bbl), which is below our
assumption of $85/bbl. That said, the company reduced its operating
costs (to $19.7/bbl in first-half 2023 compared with $22.7/bbl in
2022); it also relatively rapidly reinstated production in Kraken
after the May 2023 shutdown. The field was back in operation by
mid-June, and we understand that it had reached 80%-90% of
production capacity a month later.
"As liquidity pressure has eased, we expect EnQuest to focus on
strategies that result in profitable growth. The company's small
scale, limited production growth opportunities, and potential cost
increases could pressure the rating over the next several years. As
EnQuest has managed to reduce leverage (to S&P Global
Ratings-adjusted debt to EBITDA of about 3.0x from 6.3x in 2020)
and improve liquidity, we expect it to address mounting business
pressures. The company expects to produce 42-46 thousand barrels of
oil equivalent per day (kboepd) this year which is a decline from
68.6 kboepd in 2019. On the existing asset base--with assumed
capital expenditure (capex) of $160 million per year--EnQuest is
unlikely to achieve any meaningful organic production growth, in
our view. Moreover, the likely increase in operational costs could
render the cash flow generation even more sensitive to oil price
volatility. We therefore believe that EnQuest could pursue
inorganic growth opportunities to expand production, taking
advantage of accumulated tax losses in the U.K. The company has a
history of expanding through acquisitions and we expect they will
remain a key driver for the business in the coming years.
Currently, we do not assume any transactions in our base case due
to inherent uncertainty. If the company cannot maintain production
above 40 thousand barrels of oil equivalent per day (boepd) either
organically or through acquisitions, our 'B' rating may face
pressure. The company's financial discipline could come to the
fore, as we expect EnQuest to prioritize profitable growth over
shareholder remuneration.
"The stable outlook reflects EnQuest's improved liquidity position
following the recent finalization of a new $150 million term loan
and the company's expected adequate performance in 2023-2024 in the
current oil pricing environment.
"Under our Brent oil price assumption of $85/bbl for the rest of
2023 and $85/bbl in 2024, we expect EnQuest's S&P Global
Ratings-adjusted EBITDA to be about $750 million in 2023 and about
$800 million in 2024, translating into FFO to debt of 25%-30% and
adjusted debt to EBITDA of 2.5x-3.0x in these years."
Downside scenario
S&P could downgrade EnQuest if one or more of the following
occurs:
-- Liquidity weakens due to a decline in oil prices,
redetermination of the RBL, or excessive reliance on short-term
funding, with no supportive actions by management.
-- Leverage increases, with FFO to debt below 20% and debt to
EBITDA above 3.5x and no clear prospects of near-term recovery;
and
-- Production falls to 40,000 boepd or below, translating into
higher operating costs per barrel.
Upside scenario
S&P sees an upgrade as unlikely in the next 12-18 months.
S&P said, "We could raise our ratings on EnQuest if it sustainably
improves its business, showing capacity to achieve tangible and
stable production growth. In this scenario, even leverage slightly
better than we assume in our base case (FFO to debt at or above
30%) might be commensurate with a higher rating.
"Absent such growth, we view an upgrade as unlikely, as higher
rated peers are normally almost twice the size and more
diversified. However, we could consider a positive rating action
with the current asset base if EnQuest were to meaningfully reduce
leverage and run a very conservative capital structure, with FFO to
debt of above 45% through the cycle."
FORMULA K: Goes Into Administration
-----------------------------------
Business Sale reports that Formula K International Limited, a
supplier of go-karts and leisure vehicles to the international
amusement industry, has fallen into administration.
The company, which is based in Rhyl, was founded in 1997 and
supplies to more than 50 countries worldwide.
According to Business Sale, despite the company's longstanding
operations and global customer base, it was heavily impacted by
COVID-19, which has had ongoing adverse effects for the leisure
industry. It has also more recently been hit by global supply
chain disruption.
Paul Stanley and Jason Greenhalgh of Begbies Traynor were appointed
as joint administrators to the company on September 7, 2023,
Business Sale relates.
The company had turnover of GBP537,000, according to its most
recent accounts, Business Sale notes. As of January 31 2022, its
fixed assets were valued at GBP15,400 and current assets at
GBP232,073, while net assets amounted to GBP134,828, Business Sale
discloses.
"Covid forced the global leisure industry into lengthy lockdowns
and the knock-on effect continues. Two core markets for this
business in theme parks and indoor play areas faced the harshest
lockdowns of all sectors which had a major impact on cashflow,"
Business Sale quotes Begbies Traynor Regional Managing Partner and
joint administrator Paul Stanley as saying.
"More recently, global supply chain issues caused by inflation and
delays to shipments of materials into the UK left the company
unable to fulfil orders for the first time in its history, despite
demand. This has been a well-run and respected business for
decades but it has been hit hard by external factors outside of its
control."
Graham Liddle, Formula K International founder and Managing
Director, said that he had "explored every single avenue to rescue
the business" and save jobs but that administration was the only
realistic option open to the company, according to Business Sale.
POLARIS PLC 2023-2: Moody's Assigns (P)B3 Rating to 2 Tranches
--------------------------------------------------------------
Moody's Investors Service has assigned provisional long-term credit
ratings to Notes to be issued by Polaris 2023-2 plc:
GBP [ ] Class A Mortgage Backed Floating Rate Notes due September
2059, Assigned (P)Aaa (sf)
GBP [ ] Class B Mortgage Backed Floating Rate Notes due September
2059, Assigned (P)Aa2 (sf)
GBP [ ] Class C Mortgage Backed Floating Rate Notes due September
2059, Assigned (P)A2 (sf)
GBP [ ] Class D Mortgage Backed Floating Rate Notes due September
2059, Assigned (P)Baa3 (sf)
GBP [ ] Class E Mortgage Backed Floating Rate Notes due September
2059, Assigned (P)Ba3 (sf)
GBP [ ] Class F Mortgage Backed Floating Rate Notes due September
2059, Assigned (P)B3 (sf)
GBP [ ] Class X Floating Rate Notes due September 2059, Assigned
(P)B3 (sf)
Moody's has not assigned Ratings to GBP [] Class Z Notes due
September 2059.
RATINGS RATIONALE
The Notes are backed by a static portfolio of UK non-conforming
first lien residential mortgage loans originated by UK Mortgage
Lending Ltd (not rated) and Pepper (UK) Limited (not rated), a
wholly owned subsidiaries of Pepper Money Limited. This is the
seventh securitization from Pepper Money Limited in the UK.
The portfolio of assets amount to approximately GBP460.1 million as
of July 31, 2023 pool cut-off date. It also includes around GBP188M
loans originated by Pepper (UK) Limited (not rated) which might be
bought out of the Polaris 2020-1 plc transaction between closing
and Final Additional Sale Date (October 25, 2023). The analysis is
based on the assumption that this repurchase will take place as
expected. At closing, the liquidity reserve fund will be equal to
1.1% of the Class A notes and total credit enhancement for the
Class A Notes will be 14.45%.
The ratings are primarily based on the credit quality of the
portfolio, the structural features of the transaction and its legal
integrity.
According to Moody's, the transaction benefits from various credit
strengths such as a granular portfolio and a liquidity reserve
fund. The liquidity reserve fund will be replenished after payment
of interest on class A notes and can be used to cover class A notes
interest and senior fees. Prior to the step-up date its target
amount will be equal to the higher of the 1.1% of the outstanding
principal amount of class A notes and 1.0% of the Class A notes
balance at closing, with excess amounts amortising down the revenue
waterfall. After the step-up date, the liquidity reserve fund will
be equal to 1.1% of the outstanding balance of the class A notes
and will amortise in line with these notes; the excess amount is
released through the principal waterfall, ultimately providing
credit enhancement to all rated notes.
However, Moody's notes that the transaction features some credit
weaknesses, such as servicing disruption risk given the
transaction's lack of back-up servicer. Various mitigants have been
included in the transaction to address this. While Pepper (UK)
Limited (NR) is the servicer in the transaction, to help ensure
continuity of payments in stressed situations, the deal structure
provides for: (1) a back-up servicer facilitator (CSC Capital
Markets UK Limited (NR)); (2) an independent cash manager (HSBC
Bank PLC (Aa3(cr),P-1(cr))); and (3) estimation language whereby
the cash flows will be estimated from the three most recent
servicer reports should the servicer report not be available. The
liquidity does not cover any class of notes except for the Class A
notes in the event of financial disruption of the servicer, capping
the achievable ratings of the Class B Notes.
The transaction is subject to negative excess spread under Moody's
stressed assumptions at closing, given the portfolio's yield
relative to its liabilities. However, portfolio yield increases as
the fixed rate loans eventually reset to higher margins. There is a
principal to pay interest mechanism as a source of liquidity and
principal can be used to pay interest on Class A without any
conditions. For classes B-F, it can be used provided that either it
is the most senior class outstanding or that PDL outstanding on
that class is less than 10%. Moody's expect that this mechanism
will be used in the first periods given the negative excess spread
on day 1 under Moody's stressed assumptions.
Additionally, there is an interest rate risk mismatch between the
92.8% of loans in the pool that are fixed rate and revert to the
Lender Managed Rate, and the Notes which are floating rate
securities with reference to compounded daily SONIA. To mitigate
this mismatch there will be a scheduled notional fixed-floating
interest rate swap provided by Credit Agricole Corporate and
Investment Bank (CACIB, Aa3/P-1; Aa2(cr)/P-1(cr)).
Moody's determined the portfolio lifetime expected loss of 2.5% and
MILAN credit enhancement ("MILAN CE") of 8.6% related to borrower
receivables. The expected loss captures Moody's expectations of
performance considering the current economic outlook, while the
MILAN CE captures the loss Moody's expect the portfolio to suffer
in the event of a severe recession scenario. Expected defaults and
MILAN CE are parameters used by Moody's to calibrate its lognormal
portfolio loss distribution curve and to associate a probability
with each potential future loss scenario in the ABSROM cash flow
model to rate RMBS.
Portfolio expected loss of 2.5%: This is in line with the UK
Non-conforming sector average and is based on Moody's assessment of
the lifetime loss expectation for the pool taking into account: (i)
the portfolio characteristics, including WA LTV of 67.3% and the
above average percentage of loans with an adverse credit history
(ii) the performance of outstanding Polaris transactions; (iii) the
current macroeconomic environment in the UK and the impact of
future interest rate rises on the performance of the mortgage
loans; and (iv) benchmarking with similar UK Non-conforming RMBS.
MILAN CE of 8.6%: This is in line with the UK Non-conforming sector
average and follows Moody's assessment of the loan-by-loan
information taking into account the following key drivers: (i) the
WA LTV of 67.3%; (ii) the originator and servicer assessment; (iii)
the limited historical performance data does not cover a full
economic cycle; and (iv) benchmarking with similar UK
Non-conforming RMBS.
The principal methodology used in these ratings was "Residential
Mortgage-Backed Securitizations methodology" published in July
2023.
The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that may cause an upgrade of the ratings of the notes
include significantly better than expected performance of the pool
together with an increase in credit enhancement of Notes.
Factors that would lead to a downgrade of the ratings include: (i)
an increase in the level of arrears resulting in a higher level of
losses than forecast; (ii) increased counterparty risk leading to
potential operational risk of servicing or cash management
interruptions; or (iii) economic conditions being worse than
forecast resulting in higher arrears and losses.
WILKO LTD: Another 86 Stores Set to Close This Week
---------------------------------------------------
Levi Winchester and Megan Banner at LeedsLive report that another
86 Wilko stores are set to close this week -- including five in
Yorkshire -- after the retailer collapsed into administration in
August.
Wilko collapsed into administration last month, forcing more than
400 shops to close and employed 12,500 workers to lose their jobs,
LeedsLive recounts.
According to LeedsLive, PricewaterhouseCoopers (PwC) had been
hoping to find a deal to save the high street retailer, however
Wilko started closing down some stores last week, with 90 branches
now permanently shut.
The first 24 shops confirmed for closure pulled down their shutters
on Sept. 12 with the second batch of 28 sites following Sept. 14,
LeedsLive discloses. A further 38 stores closed on Sept. 17 -- and
now another 38 will pull down the shutters on Sept. 19 and a
further 48 stores will go on Sept. 21, LeedsLive notes.
It is anticipated that all Wilko stores will be closed by early
October, resulting in more than 9,000 job losses, LeedsLive
states.
Further closures are expected to be announced soon, LeedsLive says.
It comes despite a new deal being struck by The Range to take on
the Wilko brand, website and intellectual property, LeedsLive
relays. It means The Range now has the option to sell Wilko
products within its own stores -- but the agreement did not include
physical sites, LeedsLive states.
According to LeedsLive, administrators at PwC said they expect
online operations to be running again at the beginning of October,
and as part of the deal, 36 employees from the Wilko digital team
have moved over to The Range.
Here is a list of all the stores closing this week with five in
Yorkshire which have been highlighted in the list below.
Wilko stores to close on September 19:
* Aberdare
* Alfreton
* Ashby
* Barnstaple
* Belper
* Beverley
* Blackheath
* Brigg
* Byker
* Chepstow
* Clifton Nottingham
* Colindale
* Devizes
* Didcot
* Earlestown
* East Ham
* Great Bridge
* Greenbridge
* Grimsby
* Hessle Road - Hull
* Jarrow
* Kimberley
* Leighton Buzzard
* Long Eaton
* Maesteg
* Matlock
* Middleton
* Newton Abbot
* Redcar
* Ripley
* Seaham
* Sherwood
* Stamford
* Stevenage
* Swanley
* Tamworth
* Wrexham
* Wythenshawe
Wilko stores to close on September 21:
* Allestree
* Andover
* Bedford
* Beeston
* Bicester
* Bloxwich
* Bolton
* Bordon
* Bransholme
* Bridgend
* Bury
* Carlton
* Clacton on Sea
* Cramlington
* Crewe
* Cwmbran
* Cyfarthfa
* Denton
* Driffield
* Droitwich
* Edmonton Green
* Farnborough
* Fort Kinnaird
* Fulham
* Gateshead
* Gorleston
* Grays
* Greenock
* Havant
* Hereford
* Hillsborough
* Holyhead
* Newton Aycliffe
* Northampton
* Orton
* Parc Trostre Llanelli
* Penge
* Peterlee
* Pwllheli
* Shrewsbury
* Slough
* Swindon
* Tamworth Retail Park
* Taunton
* Walton on Thames
* Wheatley Retail Park
* Wigan
* Wolverhampton
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.
Copyright 2023. All rights reserved. ISSN 1529-2754.
This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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