/raid1/www/Hosts/bankrupt/TCREUR_Public/240318.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
Monday, March 18, 2024, Vol. 25, No. 56
Headlines
G E R M A N Y
DOUGLAS SERVICE: Moody's Puts 'B3' CFR on Review for Upgrade
I R E L A N D
BARINGS EURO 2014-2: Moody's Affirms Ba1 Rating on EUR38MM E Notes
CARLYLE EURO 2018-1: S&P Affirms 'B- (sf)' rating on Class E Notes
CVC CORDATUS V: S&P Affirms 'B- (sf)' Rating on Class F-R Notes
HARVEST CLO XVII: Moody's Affirms B3 Rating on EUR12.9MM F-R Notes
JUBILEE CLO 2022-XXVI: S&P Assigns B-(sf) Rating on Cl. F-R Notes
RRE 17: S&P Assigns BB- (sf) Rating to Class D Notes
SIGNA DEVELOPMENT: S&P Withdraws 'D' LT Issuer Credit Rating
TIKEHAU CLO X: S&P Assigns Prelim B- (sf) Rating to Class F Notes
L U X E M B O U R G
SK NEPTUNE: $610MM Bank Debt Trades at 69% Discount
N E T H E R L A N D S
BRIGHT BIDCO: $300MM Bank Debt Trades at 76% Discount
R O M A N I A
EUROINS: Sues EIG RE to Recover RON800 Million of Funds
R U S S I A
TEMIRYOL-SUGURTA JSC: S&P Affirms 'B+' ICR, Outlook Stable
S P A I N
BBVA CONSUMO 13: Moody's Assigns Ba2 Rating to EUR100MM B Notes
FLUIDRA SA: Moody's Affirms 'Ba2' CFR, Outlook Remains Stable
GESTAMP AUTOMOCION: Moody's Ups CFR & EUR400M Sr. Sec. Notes to Ba2
PAX MIDCO: Moody's Affirms 'B3' CFR, Outlook Remains Stable
TDA IBERCAJA 7: S&P Affirms 'D(sf)' Rating on Class C Notes
U N I T E D K I N G D O M
ENGENERA RENEWABLES: Enters Administration, Halts Operations
GOLDEN CASTLE: Bought Out of Administration
HANTONA LTD: Financial Difficulties Prompt Administration
JURASSIC ALIVE: Owes HMRC GBP400,000, Documents Show
MBH CORP: Administration to Have Limited Impact on White Arches
ORIFLAME INVESTMENT: S&P Lowers LT ICR to 'CCC', Outlook Negative
X X X X X X X X
[*] BOND PRICING: For the Week March 11 to March 15, 2024
[*] UK: England and Wales Company Insolvencies Up 17% in February
- - - - -
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G E R M A N Y
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DOUGLAS SERVICE: Moody's Puts 'B3' CFR on Review for Upgrade
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Moody's Ratings has placed all ratings of German beauty retailer
Douglas Service GmbH (Douglas or the company) on review for
upgrade, including the corporate family rating of B3 and the
probability of default rating B3-PD, as well as the B2 instrument
ratings on the backed senior secured bank credit facilities issued
by Douglas Service GmbH, Groupe Douglas France SAS, Kirk Beauty
Netherlands Holding B.V., Groupe Nocibe SAS, Parfumerie Douglas
International GmbH and the backed senior secured notes issued by
Douglas Service GmbH. Moody's also placed the Caa2 rating on the
backed senior secured PIK notes issued by Kirk Beauty SUN GmbH on
review for upgrade. Previously, the outlook on all entities was
stable.
The rating action follows the company's announcement on March 11,
2024 that it had filed with the German Federal Financial
Supervisory Authority (Bafin) the preliminary document for the
initial public offering (IPO) of Douglas AG on the Frankfurt Stock
Exchange. Moody's understand that concurrently the company is
looking to reduce and refinance its current financial debt.
"The rating action reflects the material improvements in Douglas'
credit metrics and liquidity profile that is likely to occur if the
company achieves a public listing as announced", says Guillaume
Leglise, a Moody's Vice President – Senior Analyst and lead
analyst for Douglas. "Should the IPO, along with the refinancing
plan, be completed as planned, Moody's expect Douglas'
Moody's-adjusted gross debt/EBITDA to reduce to around 3.3x from
5.0x as of in December 2023 because proceeds from the IPO will be
largely used to repay debt", adds Mr. Leglise.
RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR
DOWNGRADE OF THE RATINGS
The review for upgrade follows Douglas' IPO filing, which, if
executed, should boost the company's financial flexibility through
its access to public equity markets, improve its liquidity profile
and lead to a positive impact on adjusted leverage. The company
intends to raise approximately EUR850 million of primary proceeds
together with a EUR300 million equity contribution from existing
shareholders, CVC Capital Partners and the Kreke family. The
company plans to use the proceeds to largely reduce its gross
indebtedness. As a result, the rating agency expects Douglas'
Moody's-adjusted debt/EBITDA to reduce to around 3.3x from 5.0x in
December 2023.
In addition, Douglas is looking to refinance its outstanding senior
secured bank credit facilities, senior secured notes and PIK notes,
conditional upon the completion of the IPO. Douglas has announced
the signing of a EUR1.6 billion bank credit agreement, which
includes a new EUR300 million revolving credit facility (RCF,
compared to EUR170 million currently), expected to be undrawn at
closing of the transaction. The EUR1.15 billion equity proceeds
together with the new EUR1.3 billion bank debt package, combined
with around EUR267 million of cash on balance sheet, will be used
to repay all outstanding financial debt of the group and to pay
transaction fees and cost. This will be credit positive, because it
would result in a debt reduction of around EUR1.3 billion, would
address the refinancing risks of Douglas' debt (mostly due in 2026)
and would simplify the group's capital structure.
The debt reduction would also translate into lower financial
charges, supporting an improvement in the company's interest cover
(calculated as Moody's-adjusted [EBITDA - capex]/interest expense),
which is currently weak at 1.3x for the 12 months to December 2023.
Moody's expects this ratio to improve to at least 2.0x in 2024,
pro-forma the proposed IPO and refinancing. Moody's also
anticipates Douglas' free cash flows (FCF) to improve substantially
thanks to lower interest payments post-IPO. Moody's expects further
de-leveraging in the next 12-18 months as the company's retail
expansion strategy together with still supportive consumer spending
on beauty products, will continue to drive earnings growth.
Douglas posted a strong performance in the fiscal year that ended
September 30, 2023 (fiscal 2023) and during Christmas 2023, which
has led to a significant improvement in credit metrics. The company
posted double-digit growth in net sales and EBITDA (as adjusted by
the company) of +11.3% and +22.3%, respectively, in fiscal 2023,
above Moody's expectations and above other specialty retailers.
Higher store footfall, as well as growth in all channels,
geographies and product categories fueled sales growth. During the
first quarter of fiscal 2024, the strong positive momentum
continued, with net sales growth of 8% and EBITDA increasing by
12.6%. Despite weak consumer sentiment and low volumes for
discretionary products, the company benefits from positive volume
momentum in the overall beauty category, which has been one of
Europe's few nonfood retail segments to grow in 2023.
In addition, Douglas' improved profitability reflects the
completion of the company's restructuring plan initiated in 2021.
Moody's review will focus on (i) the deleveraging impact of the
IPO, (ii) Douglas' financial policy post IPO, including the
successful refinancing of its outstanding debt, (iii) the group's
new ownership structure and strategic objectives, and (iv) an
evaluation of the current and forecasted operating trends and FCF
generation capacity. With respect to financial policy, Moody's
review will focus on target leverage and shareholder returns among
other factors. Although CVC Capital Partners and the Kreke family
will retain an indirect majority stake after the IPO, Moody's
expects the company to adopt a more conservative and transparent
financial policy going forward, which is a governance consideration
under Moody's General Principles for Assessing Environmental,
Social and Governance Risks methodology.
Moody's expects the review to conclude shortly after closing of the
IPO in late March. Should the IPO and debt reduction conclude as
envisaged, Moody's expects the CFR could be upgraded by at least
one notch.
Before the ratings were placed on review, Moody's stated that:
Positive pressure on the ratings could materialise over time if (i)
there is a solid recovery in operating performance, with continued
revenue growth and profitability improvement, (ii) Douglas'
Moody's-adjusted debt/EBITDA declines below 5.5x on a sustained
basis, and (iii) the company generates solid FCF.
Negative pressure on the rating could materialise if (i) the
company's operating performance does not recover, (ii) its FCF
remains negative for an extended period, and (iii) its leverage
approaches 7.0x. Negative pressure would also build up in case of a
higher-than-expected cash burn, leading to liquidity
deterioration.
LIST OF AFFECTED RATINGS
Issuer: Kirk Beauty SUN GmbH
Outlook Actions:
Outlook, Changed To Rating Under Review From Stable
On Review for Possible Upgrade:
BACKED Senior Secured Regular Bond/Debenture (Local Currency),
Placed on Review for Possible Upgrade, currently Caa2
Issuer: Douglas Service GmbH
Outlook Actions:
Outlook, Changed To Rating Under Review From Stable
On Review for Possible Upgrade:
Probability of Default Rating, Placed on Review for Possible
Upgrade, currently B3-PD
LT Corporate Family Rating, Placed on Review for Possible Upgrade,
currently B3
BACKED Senior Secured Bank Credit Facility (Local Currency),
Placed on Review for Possible Upgrade, currently B2
BACKED Senior Secured Regular Bond/Debenture (Local Currency),
Placed on Review for Possible Upgrade, currently B2
Issuer: Groupe Douglas France SAS
Outlook Actions:
Outlook, Changed To Rating Under Review From Stable
On Review for Possible Upgrade:
BACKED Senior Secured Bank Credit Facility (Local Currency),
Placed on Review for Possible Upgrade, currently B2
Issuer: Groupe Nocibe SAS
Outlook Actions:
Outlook, Changed To Rating Under Review From Stable
On Review for Possible Upgrade:
BACKED Senior Secured Bank Credit Facility (Local Currency),
Placed on Review for Possible Upgrade, currently B2
Issuer: Kirk Beauty Netherlands Holding B.V.
Outlook Actions:
Outlook, Changed To Rating Under Review From Stable
On Review for Possible Upgrade:
BACKED Senior Secured Bank Credit Facility (Local Currency),
Placed on Review for Possible Upgrade, currently B2
Issuer: Parfumerie Douglas International GmbH
Outlook Actions:
Outlook, Changed To Rating Under Review From Stable
On Review for Possible Upgrade:
BACKED Senior Secured Bank Credit Facility (Local Currency),
Placed on Review for Possible Upgrade, currently B2
The principal methodology used in these ratings was Retail and
Apparel published in November 2023.
COMPANY PROFILE
Douglas Service GmbH, headquartered in Dusseldorf, Germany, is a
leading premium beauty platform in Europe, offering a large
assortment of beauty and lifestyle products through online, stores
and a beauty partner programme. It is present in 26 European
countries and had a network of 1,867 points of sale as of December
31, 2023, of which 131 were franchised stores. Online sales
represented 33% of the company's total sales in the 12 months that
ended December 31, 2023.
The group was acquired in August 2015 by funds advised by CVC
Capital Partners. The founders, the Kreke family, still retains a
nearly 16% stake in the company. The company generated EUR4.2
billion of revenue and EUR765 million of EBITDA (as adjusted by the
company, post IFRS 16) in the 12 months that ended December 31,
2023.
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I R E L A N D
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BARINGS EURO 2014-2: Moody's Affirms Ba1 Rating on EUR38MM E Notes
------------------------------------------------------------------
Moody's Ratings has upgraded the rating on the following notes
issued by Barings Euro CLO 2014-2 Designated Activity Company:
EUR28,500,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2029, Upgraded to Aa2 (sf); previously on Sep 12, 2023
Upgraded to A1 (sf)
Moody's has also affirmed the ratings on the following notes:
EUR297,400,000 (Current outstanding amount EUR18,877,988) Class
A-1 Senior Secured Floating Rate Notes due 2029, Affirmed Aaa (sf);
previously on Sep 12, 2023 Affirmed Aaa (sf)
EUR31,600,000 (Current outstanding amount EUR2,005,866) Class A-2
Senior Secured Fixed Rate Notes due 2029, Affirmed Aaa (sf);
previously on Sep 12, 2023 Affirmed Aaa (sf)
EUR37,900,000 Class B-1 Senior Secured Floating Rate Notes due
2029, Affirmed Aaa (sf); previously on Sep 12, 2023 Affirmed Aaa
(sf)
EUR21,100,000 Class B-2 Senior Secured Fixed Rate Notes due 2029,
Affirmed Aaa (sf); previously on Sep 12, 2023 Affirmed Aaa (sf)
EUR35,000,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2029, Affirmed Aaa (sf); previously on Sep 12, 2023
Upgraded to Aaa (sf)
EUR38,000,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2029, Affirmed Ba1 (sf); previously on Sep 12, 2023
Affirmed Ba1 (sf)
EUR16,500,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2029, Affirmed B1 (sf); previously on Sep 12, 2023
Affirmed B1 (sf)
Barings Euro CLO 2014-2 Designated Activity Company, issued in
November 2014 and refinanced in May 2017, is a collateralised loan
obligation (CLO) backed by a portfolio of mostly high-yield senior
secured European loans. The portfolio is managed by Barings (U.K.)
Limited. The transaction's reinvestment period ended in May 2021.
RATINGS RATIONALE
The rating upgrade on the Class D notes is primarily a result of
the deleveraging of the senior notes following amortisation of the
underlying portfolio since the last rating action in September
2023.
The affirmations on the ratings on the Class A-1, Class A-2, Class
B-1, Class B-2, Class C, Class E and Class F notes are primarily a
result of the expected losses on the notes remaining consistent
with their current rating levels, after taking into account the
CLO's latest portfolio, its relevant structural features and its
actual over-collateralisation ratios.
The Class A-1 and Class A-2 notes have paid down by approximately
EUR51.9 million (17.5%) and EUR5.5 million (17.5%) since the last
rating action in September 2023 and approximately EUR278.5 million
(93.7%) and EUR29.6 million (93.7%) since closing. As a result of
the deleveraging, over-collateralisation (OC) has increased across
the capital structure. According to the trustee report dated
February 2024 [1] the Class A/B, Class C, Class D and Class E OC
ratios are reported at 228.23%, 171.72%, 142.91% and 116.78%
compared to August 2023 [2] levels of 180.12%, 149.12%, 130.79% and
112.37%, respectively. Moody's notes that the February 2024 and
August 2023 principal payments 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 action in September 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: EUR212,774,890
Defaulted Securities: EUR13,888,170
Diversity Score: 31
Weighted Average Rating Factor (WARF): 3014
Weighted Average Life (WAL): 3.06 years
Weighted Average Spread (WAS) (before accounting for Euribor
floors): 3.62%
Weighted Average Coupon (WAC): 4.44%
Weighted Average Recovery Rate (WARR): 43.32%
Par haircut in OC tests and interest diversion test: none
The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on future
defaults is based primarily on the seniority of the assets in the
collateral pool. In each case, historical and market performance
and a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporates these default and recovery
characteristics of the collateral pool into its cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analysing.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
December 2021.
Counterparty Exposure:
The rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank, using the
methodology "Moody's Approach to Assessing Counterparty Risks in
Structured Finance methodology" published in October 2023. Moody's
concluded the ratings of the notes are not constrained by these
risks.
Factors that would lead to an upgrade or downgrade of the ratings:
The rated notes' performance is subject to uncertainty. The notes
performance is sensitive to the performance of the underlying
portfolio, which in turn depends on economic and credit conditions
that may change. The collateral manager's investment decisions and
management of the transaction will also affect the notes'
performance.
Additional uncertainty about performance is due to the following:
-- Portfolio amortisation: The main source of uncertainty in this
transaction is the pace of amortisation of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortisation could accelerate as a consequence of high loan
prepayment levels or collateral sales by the collateral manager or
be delayed by an increase in loan amend-and-extend restructurings.
Fast amortisation would usually benefit the ratings of the notes
beginning with the notes having the highest prepayment priority.
-- Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's
over-collateralisation levels. Further, the timing of recoveries
and the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. 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.
-- Long-dated assets: The presence of assets that mature beyond
the CLO's legal maturity date exposes the deal to liquidation risk
on those assets. Moody's assumes that, at transaction maturity, the
liquidation value of such an asset will depend on the nature of the
asset as well as the extent to which the asset's maturity lags that
of the liabilities. Liquidation values 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.
CARLYLE EURO 2018-1: S&P Affirms 'B- (sf)' rating on Class E Notes
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S&P Global Ratings raised its credit ratings on Carlyle Euro CLO
2018-1 DAC's class A-2A and A-2B notes to 'AA+ (sf)' from 'AA
(sf)', class B notes to 'A+ (sf)' from 'A (sf)', and class C notes
to 'BBB+ (sf)' from 'BBB (sf)'. At the same time, S&P affirmed its
'AAA (sf)', 'BB (sf)', and 'B- (sf)' ratings on the class A-1, D,
and E notes, respectively.
Carlyle Euro CLO 2018-1 is a cash flow CLO transaction that
securitizes leverage loans and is managed by CELF Advisors LLP.
The rating actions follow the application of S&P's relevant
criteria and its credit and cash flow analysis of the transaction
based on the January 2024 trustee report (although S&P has also
considered more recent information received in the February 2024
report).
Since S&P assigned ratings to these notes in April 2018:
-- The pool's credit quality has improved in terms of both S&P's
default and recovery assumptions.
-- The portfolio's weighted-average life has decreased to 3.22
years from 6.28 years.
-- The percentage of 'CCC' rated assets has increased to 2.99%
from 5.71%.
Table 1
Transaction key metrics
AS OF MARCH 2024 (BASED ON JANUARY 2024 TRUSTEE REPORT)
SPWARF 2,773.85
Default rate dispersion 668.66
Weighted-average life (years) 3.22
Obligor diversity measure 94.86
Industry diversity measure 20.86
Regional diversity measure 1.32
Total collateral amount (mil. EUR)* 344.90
Defaulted assets (mil. EUR) 6.64
Number of performing obligors 120
Portfolio weighted-average rating B
'AAA' SDR (%) 55.37
'AAA' WARR (%) 36.56
*Performing assets plus cash and expected recoveries on defaulted
assets.
SPWARF--S&P Global Ratings' weighted-average rating factor.
SDR--scenario default rate.
WARR--Weighted-average recovery rate.
On the cash flow side:
-- The reinvestment period ended in October 2022. The class A-1
notes have deleveraged by more than EUR65 million since then,
although EUR45 million of this occurred on the most recent interest
payment date. There has been considerable ongoing reinvestment
since the reinvestment period ended.
-- No class of notes is deferring interest.
-- All coverage tests are passing as of the latest February 2024
trustee report, although the class E par value test was failing in
the January 2024 report.
Table 2
Credit analysis results
CREDIT ENHANCEMENT
AS OF MARCH 2024 (%)
CURRENT (BASED ON
AMOUNT JANUARY 2024 CREDIT ENHANCEMENT
CLASS (MIL. EUR) TRUSTEE REPORT) AT CLOSING (%)
A-1 175.871 49.01 43.31
A-2A 36.75 29.65 27.60
A-2B 30.00 29.65 27.60
B 28.50 21.39 20.89
C 22.50 14.87 15.60
D 22.10 8.46 10.40
E 12.75 4.76 7.40
Sub 45.80 N/A N/A
Credit enhancement = [Performing balance + cash balance + recovery
on defaulted obligations (if any) – tranche balance (including
tranche balance of all senior tranches)]/ [Performing balance +
cash balance + recovery on defaulted obligations (if any)].
N/A--Not applicable.
In S&P's view, the portfolio is diversified across obligors,
industries, and asset characteristics.
S&P said, "Considering the improved scenario default rates and
higher available credit enhancement, we raised our ratings on the
class A-2A, A-2B, and B notes as the available credit enhancement
is now commensurate with higher stress levels. Although the class C
notes' available credit enhancement has fallen since closing, our
improved credit assumptions mitigate this, and we therefore raised
our rating on the class C notes. At the same time, we affirmed our
ratings on the class A-1, D, and E notes.
"Our cash flow analysis indicated higher ratings than those
currently assigned for the class B to E notes. However, we
considered that the manager is still reinvesting unscheduled
redemption and sale proceeds from credit-impaired and
credit-improved assets (such reinvestments, rather than repayment
of the liabilities, may therefore prolong the note repayment
profile for the most senior class of notes). We also considered the
considerable portion of senior notes outstanding and current
macroeconomic conditions.
"In our view, the portfolio is granular, and well-diversified
across obligors, industries, and asset characteristics compared to
other CLO transactions we have recently rated. Hence, we have not
performed any additional scenario analysis.
"Counterparty, operational, and legal risks are adequately
mitigated in line with our criteria.
"Following the application of our structured finance sovereign risk
criteria, we consider the transaction's exposure to country risk to
be limited at the assigned ratings, as the exposure to individual
sovereigns does not exceed the diversification thresholds outlined
in our criteria."
CVC CORDATUS V: S&P Affirms 'B- (sf)' Rating on Class F-R Notes
---------------------------------------------------------------
S&P Global Ratings raised its credit ratings on CVC Cordatus Loan
Fund V DAC's class B-1-R and B-2-RR notes to 'AA+ (sf)' from 'AA
(sf)', C-R notes to 'A+ (sf)' from 'A (sf)', and D-R notes to 'BBB+
(sf)' from 'BBB (sf)'. At the same time, S&P affirmed its 'AAA
(sf)' rating on the class A-RR notes, 'BB (sf)' rating on the class
E-R notes, and 'B- (sf)' rating on the class F-R notes.
The rating actions follow the application of its global corporate
CLO criteria and its credit and cash flow analysis of the
transaction based on the January 2024 payment report.
Since the refinanced closing date in October 2019:
-- The weighted-average rating of the portfolio remains at 'B'.
-- The portfolio has become more diversified, as the number of
performing obligors has increased to 133 from 132.
-- The portfolio's weighted-average life has decreased to 3.41
years from 4.77 years.
-- The percentage of 'CCC' rated assets has decreased to 3.83%
from 4.54% of the performing balance.
-- Following the deleveraging of the senior notes, the class A-RR
to F-R notes benefit from higher levels of credit enhancement
compared with our previous review.
Credit enhancement
CURRENT AMOUNT AT REFINANCED
CLASS (MIL. EUR) CURRENT (%) CLOSING IN 2019 (%)
A-RR 230.26 44.39 41.39
B-1-R 32.00 29.42 27.57
B-2-RR 30.00 29.42 27.57
C-R 30.00 22.17 20.89
D-R 23.00 16.62 15.76
E-R 28.00 9.85 9.52
F-R 13.00 6.71 6.63
Sub Notes 47.80 N/A N/A
N/A--Not applicable.
The scenario default rates (SDRs) have decreased for all rating
scenarios following a reduction in the weighted-average life since
the refinanced closing date (3.41 years from 4.77 years).
Portfolio benchmarks
AT REFINANCED
CURRENT CLOSING IN 2019
SPWARF 2,706.63 2,763.13
Default rate dispersion 745.63 553.53
Weighted-average life (years) 3.41 4.77
Obligor diversity measure 94.30 98.09
Industry diversity measure 20.79 15.41
Regional diversity measure 1.16 1.29
SPWARF—S&P Global Ratings' weighted-average rating factor. All
figures presented in the table do not include defaulted assets.
On the cash flow side:
The reinvestment period for the transaction ended in July 2021.
The class A-RR notes have deleveraged by EUR32.7 million since
refinanced closing.
No class of notes is currently deferring interest.
All coverage tests are passing as of the January 2024 payment
report.
Transaction key metrics
AT REFINANCED
CURRENT CLOSING IN 2019
Total collateral amount (mil. EUR)* 414.06 448.73
Defaulted assets (mil. EUR) 3.00 4.30
Number of performing obligors 133 132
Portfolio weighted-average rating B B
'AAA' SDR (%) 55.68 62.82
'AAA' WARR (%) 36.37 37.41
*Performing assets plus cash and expected recoveries on defaulted
assets.
SDR--scenario default rate.
WARR--Weighted-average recovery rate.
Liquidity Facility
Citibank N.A. London Branch provided the transaction with a EUR2.0
million liquidity facility at closing, with a maximum commitment
period of four years and an option to extend for a further two
years. The liquidity facility has been extended for one additional
year in July 2021 (after rating agency confirmation received) and
has under a year remaining. The margin on the facility is
contingent on the rating of the class A-RR notes and may go up to
2.65% over three-month Euro Interbank Offered Rate (EURIBOR). The
liquidity facility is repaid using interest proceeds in a senior
position of the waterfall or repaid directly from the interest
account on any business day before the payment date. For S&P's cash
flow analysis, it assumed the liquidity facility to be fully drawn
with a notional amount of EUR1.92 million (as per the January 2024
report) and with a maximum spread of 2.65%.
S&P said, "In our view, the portfolio is diversified across
obligors, industries, and asset characteristics. Nevertheless, due
to the amortization phase, the portfolio will become more
concentrated. Hence, we have performed an additional scenario
analysis by applying a spread and recovery compression analysis.
"Based on the improved SDRs and higher credit enhancement available
to the notes, we have raised our ratings on the class B-1-R,
B-2-RR, C-R, and D-R notes. At the same time, we have affirmed our
rating on the class A-RR, E-R, and F-R notes.
"Our credit and cash flow analysis indicates that the available
credit enhancement for the class B-1-R, B-2-RR, C-R, D-R, and E-R
notes could withstand stresses commensurate with higher rating
levels than those assigned (without the above-mentioned additional
sensitivity analysis).
"The transaction has continued to amortize since the end of the
reinvestment period in July 2021. However, we have considered that
the manager may still reinvest unscheduled redemption proceeds and
sale proceeds from credit-impaired assets. Such reinvestments (as
opposed to repayment of the liabilities) may therefore prolong the
note repayment profile for the most senior class of notes.
"We also considered the level of cushion between our break-even
default rate (BDR) and SDR for these notes at their passing rating
levels, as well as the current macroeconomic conditions and these
classes of notes' relative seniority. Considering all of these
factors, we raised our ratings on the class B-1-R, B-2-RR, C-R, and
D-R notes by one notch.
"Following the application of our structured finance sovereign risk
criteria, we consider the transaction's exposure to country risk to
be limited at the assigned ratings, as the exposure to individual
sovereigns does not exceed the diversification thresholds outlined
in our criteria.
"Counterparty, operational, and legal risks are adequately
mitigated in line with our criteria."
HARVEST CLO XVII: Moody's Affirms B3 Rating on EUR12.9MM F-R Notes
------------------------------------------------------------------
Moody's Ratings has upgraded the ratings on the following notes
issued by Harvest CLO XVII Designated Activity Company:
EUR30,500,000 Class B-1-R Senior Secured Floating Rate Notes due
2032, Upgraded to Aa1 (sf); previously on Nov 12, 2019 Definitive
Rating Assigned Aa2 (sf)
EUR13,500,000 Class B-2-R Senior Secured Fixed Rate Notes due
2032, Upgraded to Aa1 (sf); previously on Nov 12, 2019 Definitive
Rating Assigned Aa2 (sf)
EUR26,500,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2032, Upgraded to A1 (sf); previously on Nov 12, 2019
Definitive Rating Assigned A2 (sf)
Moody's has also affirmed the ratings on the following notes:
EUR279,000,000 Class A-R Senior Secured Floating Rate Notes due
2032, Affirmed Aaa (sf); previously on Nov 12, 2019 Definitive
Rating Assigned Aaa (sf)
EUR32,000,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2032, Affirmed Baa3 (sf); previously on Nov 12, 2019
Definitive Rating Assigned Baa3 (sf)
EUR25,750,000 Class E-R Senior Secured Deferrable Floating Rate
Notes due 2032, Affirmed Ba3 (sf); previously on Nov 12, 2019
Definitive Rating Assigned Ba3 (sf)
EUR12,900,000 Class F-R Senior Secured Deferrable Floating Rate
Notes due 2032, Affirmed B3 (sf); previously on Nov 12, 2019
Definitive Rating Assigned B3 (sf)
Harvest CLO XVII Designated Activity Company, originally issued in
May 2017 and refinanced in November 2019, is a collateralised loan
obligation (CLO) backed by a portfolio of mostly high-yield senior
secured European loans. The portfolio is managed by Investcorp
Credit Management EU Limited. The transaction's reinvestment period
will end in May 2024.
RATINGS RATIONALE
The rating upgrades on the Class B-1-R, Class B-2-R and Class C-R
notes are primarily a result of the benefit of the shorter period
of time remaining before the end of the reinvestment period in May
2024 and a shorter weighted average life of the portfolio which
reduces the time the rated notes are exposed to the credit risk of
the underlying portfolio.
The affirmations on the ratings on the Class A-R, Class D-R, Class
E-R and Class F-R notes are primarily a result of the expected
losses on the notes remaining consistent with their current rating
levels, after taking into account the CLO's latest portfolio, its
relevant structural features and its actual over-collateralisation
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 and
higher spread levels than it had assumed at the refinancing rating
action in November 2019.
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: EUR443.46 m
Defaulted Securities: EUR8.88 m
Diversity Score: 59
Weighted Average Rating Factor (WARF): 2980
Weighted Average Life (WAL): 4.08 years
Weighted Average Spread (WAS) (before accounting for Euribor
floors): 4.1196%
Weighted Average Coupon (WAC): 4.6163%
Weighted Average Recovery Rate (WARR): 43.7579%
Par haircut in OC tests and interest diversion test: None
The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on future
defaults is based primarily on the seniority of the assets in the
collateral pool. In each case, historical and market performance
and a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporates these default and recovery
characteristics of the collateral pool into its cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analysing.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
December 2021.
Counterparty Exposure:
The rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank, using the
methodology "Moody's Approach to Assessing Counterparty Risks in
Structured Finance methodology" published in October 2023. 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: Once reaching the end of the
reinvestment period in May 2024, 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. The effect on the ratings of
extending the portfolio's weighted average life can be positive or
negative depending on the notes' seniority.
-- 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.
JUBILEE CLO 2022-XXVI: S&P Assigns B-(sf) Rating on Cl. F-R Notes
-----------------------------------------------------------------
S&P Global Ratings assigned credit ratings to Jubilee CLO 2022-XXVI
DAC's class A-R, B-1-R, B-2-R, C-R, D-R, E-R, and F-R notes. The
issuer also issued EUR37.40 million of subordinated notes on the
original issue date in September 2022.
This transaction is a reset of the already existing transaction.
The existing classes of notes were fully redeemed with the proceeds
from the issuance of the replacement notes on the reset date.
The ratings assigned to the reset notes reflect S&P's assessment
of:
-- The diversified collateral pool, which consists primarily of
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 are in line with
S&P's counterparty rating framework.
Portfolio Benchmarks
CURRENT
S&P Global Ratings' weighted-average rating factor 2,856.36
Default rate dispersion 549.94
Weighted-average life (years) 4.31
Weighted-average life extended to cover
the length of the reinvestment period (years) 4.49
Obligor diversity measure 123.13
Industry diversity measure 20.76
Regional diversity measure 1.24
Transaction Key Metrics
CURRENT
Portfolio weighted-average rating
derived from S&P's CDO evaluator B
'CCC' category rated assets (%) 1.21
Covenanted 'AAA' weighted-average recovery (%) 36.00
Covenanted weighted-average spread (%) 4.27
Covenanted weighted-average coupon (%) 4.77
Rating rationale
Under the transaction documents, the rated notes 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 four and half years
after closing.
The closing portfolio is well-diversified, primarily comprising
broadly syndicated speculative-grade senior secured term loans and
senior secured bonds. Therefore, S&P has conducted its 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 EUR400 million
target par amount, the actual weighted-average spread (4.27%), the
actual weighted-average coupon (4.77%), and the actual
weighted-average recovery rates calculated in line with our CLO
criteria for all classes of notes. 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 Sept. 8, 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 the ratings are
commensurate with the available credit enhancement for the class
A-R to F-R notes. Our credit and cash flow analysis indicates that
the available credit enhancement for the class B-1-R, B-2-R, C-R,
D-R, E-R, and F-R notes could withstand stresses commensurate with
higher rating levels 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-R to E-R
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-R notes."
S&P Global Ratings' document review score
To help assess the relative strength of documentation across
European CLO transactions, the S&P Global Ratings' document review
score focuses on 15 CLO document parameters that, in S&P's view,
may affect CLO performance.
Each component score provides an assessment of how conservative the
parameter is using predefined terms. The scores range from 1 (more
conservative) to 3 (less conservative).
Environmental, social, and governance
S&P regards the exposure to environmental, social, and governance
(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 (and or for some of these
activities there are revenue limits or can't be the primary
business activity) assets from being related to certain activities,
including, but not limited to, the following: coal, speculative
extraction of oil and gas, private prisons, controversial weapons,
non-sustainable palm oil production, speculative transactions in
soft commodities, tobacco, hazardous chemicals and pesticides,
trade in endangered wildlife, pornography, adult entertainment or
prostitution, civilian weapons or firearms, payday lending,
activities that adversely affect animal welfare. Accordingly, since
the exclusion of assets from these industries does not result in
material differences between the transaction and S&P's ESG
benchmark for the sector, no specific adjustments have been made in
its rating analysis to account for any ESG-related risks or
opportunities.
The transaction securitizes a portfolio of primarily senior-secured
leveraged loans and bonds, and it is managed by Alcentra Ltd.
Ratings list
AMOUNT CREDIT
CLASS RATING* (MIL. EUR) INTEREST RATE (%)§ ENHANCEMENT
(%)
A-R AAA (sf) 248.00 3mE + 1.48 38.00
B-1-R AA (sf) 36.00 3mE + 2.10 27.00
B-2-R AA (sf) 8.00 5.40 27.00
C-R A (sf) 26.00 3mE + 2.55 20.50
D-R BBB- (sf) 25.00 3mE + 4.00 14.25
E-R BB- (sf) 17.00 3mE + 6.94 10.00
F-R B- (sf) 13.00 3mE + 8.53 6.75
Sub NR 37.40 N/A N/A
*The ratings assigned to the class A-R, B-1-R, and B-2-R notes
address timely interest and ultimate principal payments. The
ratings assigned to the class C-R, D-R, E-R, and F-R 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.
NR--Not rated.
N/A--Not applicable.
3mE--Three-month Euro Interbank Offered Rate.
RRE 17: S&P Assigns BB- (sf) Rating to Class D Notes
----------------------------------------------------
S&P Global Ratings assigned its credit ratings to RRE 17 Loan
Management DAC's class A-1 notes to D notes. At closing, the issuer
also issued unrated subordinate, performance, and preferred return
notes.
This is a European cash flow CLO transaction, securitizing a
portfolio of primarily senior secured leveraged loans and bonds.
The transaction is managed by Redding Ridge Asset Management (UK)
LLP.
The ratings assigned to the debt 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 debt through collateral selection, ongoing
portfolio management, and trading.
-- The transaction's legal structure, which is bankruptcy remote.
-- The transaction's counterparty risks, which is in line with
S&P's counterparty rating framework.
Under the transaction documents, the rated debt will pay quarterly
interest unless there is a frequency switch event. Following this,
the debt will permanently switch to semiannual payment.
The portfolio's reinvestment period will end approximately 4.60
years after closing, and the portfolio's maximum average maturity
date is approximately nine years after closing.
Portfolio benchmarks
CURRENT
S&P Global Ratings weighted-average rating factor 2,854.37
Default rate dispersion 390.95
Weighted-average life (years) 4.51
WAL including reinvestment (years) 4.58
Obligor diversity measure 87.04
Industry diversity measure 22.22
Regional diversity measure 1.26
Transaction key metrics
CURRENT
Total par amount (mil. EUR) 400
Defaulted assets (mil. EUR) 0.00
Number of performing obligors 113
Portfolio weighted-average rating
derived from S&P's CDO evaluator B
'CCC' category rated assets (%) 0.00
'AAA' covenanted weighted-average recovery (%) 36.52
Portfolio weighted-average spread (%) 4.03
S&P said, "The portfolio is 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. As such, we have not applied any additional scenario and
sensitivity analysis when assigning ratings to any classes of debt
in this transaction.
"In our cash flow analysis, we used the EUR400 million target par
amount, the portfolio weighted-average spread (4.03%), and the
weighted-average coupon (4.16%). We assumed weighted-average
recovery rates in line with those of the identified portfolio
presented to us. 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.
"Our credit and cash flow analysis indicates that the available
credit enhancement for the class A-2A, A-2B, B, C-1, C-2, and D
notes could withstand stresses commensurate with higher ratings
than those 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
the ratings.
"The transaction's documented counterparty replacement and remedy
mechanisms adequately mitigate its exposure to counterparty risk
under our current counterparty criteria.
"Following the application of our structured finance sovereign risk
criteria, we consider the transaction's exposure to country risk to
be limited at the assigned ratings, as the exposure to individual
sovereigns does not exceed the diversification thresholds outlined
in our criteria.
"The transaction's issuer is bankruptcy remote, in line with our
legal criteria.
"Following our analysis of the credit, cash flow, counterparty,
operational, and legal risks, we believe that our assigned ratings
are commensurate with the available credit enhancement for the
class A-1 notes, A-1 loan, and class A-2A, A-2B, B, C-1, C-2, and D
notes.
"In addition to our standard analysis, we have also included the
sensitivity of the ratings to four hypothetical scenarios."
S&P Global Ratings' document review score
To help assess the relative strength of documentation across
European CLO transactions, the S&P Global Ratings' document review
score focuses on 15 CLO document parameters that, in our view, may
affect CLO performance.
Each component score provides an assessment of how conservative the
parameter is using predefined terms. The scores range from 1 (more
conservative) to 3 (less conservative).
Environmental, social, and governance
S&P said, "We regard the exposure to environmental, social, and
governance (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 industries, including, but not limited:
thermal-coal-based power generation, mining or extraction; Arctic
oil or gas production, and unconventional oil or gas production
from shale, tight reservoirs, or oil sands; production of civilian
weapons; development of nuclear weapon programs and production of
controversial weapons; management of private for-profit prisons;
tobacco or tobacco products; opioids; adult entertainment;
speculative transactions of soft commodities; predatory lending
practices; non-sustainable palm oil productions; animal testing for
non-pharmaceutical products; endangered species; and banned
pesticides or chemicals.
"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 Assigned
AMOUNT
CLASS RATING* (MIL. EUR) SUB (%) INTEREST RATE§
A-1 notes AAA (sf) 223.00 38.00 Three/six-month EURIBOR
plus 1.48%
A-1 loan AAA (sf) 25.00 38.00 Three/six-month EURIBOR
plus 1.48%
A-2A notes AA (sf) 31.00 29.00 Three/six-month EURIBOR
plus 2.15%
A-2B notes AA (sf) 5.00 29.00 5.50%
B notes A (sf) 34.00 20.50 Three/six-month EURIBOR
plus 2.50%
C-1 notes BBB (sf) 20.50 15.38 Three/six-month EURIBOR
plus 3.50%
C-2 notes BBB- (sf) 6.00 13.88 Three/six-month EURIBOR
plus 5.25%
D notes BB- (sf) 14.50 10.25 Three/six-month EURIBOR
plus 6.28%
Performance notes NR 1.00 N/A N/A
Preferred
return notes NR 0.25 N/A N/A
Sub notes NR 42.15 N/A N/A
*The ratings assigned to the class, A-1 notes, A-1 loan, and A-2
notes address timely interest and ultimate principal payments. The
ratings assigned to the class B-1, B-2, C-1, C-2, and D 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.
NR--Not rated.
N/A--Not applicable.
EURIBOR--Euro Interbank Offered Rate.
SIGNA DEVELOPMENT: S&P Withdraws 'D' LT Issuer Credit Rating
------------------------------------------------------------
S&P Global Ratings has withdrawn its 'D' (default) long-term issuer
credit ratings on Signa Development Selection AG (SDS) and its 'D'
(default) issue ratings on the 2026 senior unsecured bond. This
withdrawal follows the lowering of its ratings on the company to
'D' from 'CC' in December 2023 when SDS filed for insolvency. S&P
has received limited information from SDS since then, which has
constrained its ability to continue to surveil the ratings.
Separately, S&P understands its rating engagement with SDS has
terminated.
TIKEHAU CLO X: S&P Assigns Prelim B- (sf) Rating to Class F Notes
-----------------------------------------------------------------
S&P Global Ratings assigned preliminary credit ratings to Tikehau
CLO X DAC's class A to F European cash flow CLO notes. At closing,
the issuer will 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 five
years after closing, while the non-call period will end two 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 its counterparty rating framework.
Portfolio benchmarks
CURRENT
S&P weighted-average rating factor 2,752.18
Default rate dispersion 486.68
Weighted-average life (years) 4.74
Weighted-average life (years) extended
to cover the length of the reinvestment period 5.03
Obligor diversity measure 137.40
Industry diversity measure 19.65
Regional diversity measure 1.30
Transaction key metrics
CURRENT
Portfolio weighted-average rating
derived from S&P's CDO evaluator B
'CCC' category rated assets (%) 0.00
'AAA' weighted-average recovery (%) 36.85
Floating-rate assets (%) 87.50
Weighted-average spread (net of floors; %) 4.25
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."
Asset priming obligations and uptier priming debt
Under the transaction documents, the issuer can purchase asset
priming (drop down) obligations and/or uptier priming debt to
address the risk of a distressed obligor either moving collateral
outside the existing creditors' covenant group or incurring new
money debt senior to the existing creditors.
S&P said, "In our cash flow analysis, we used the EUR425 million
target par amount, the actual weighted-average spread (4.25%), the
actual weighted-average coupon (4.69%), and the actual portfolio
weighted-average recovery rates for all rated notes. 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.
"Our credit and cash flow analysis show that the class B-1, B-2, C,
D, E, and F notes benefit from break-even default rate and scenario
default rate cushions that we would 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. The class A notes can withstand
stresses commensurate with the assigned preliminary ratings.
"Until the end of the reinvestment period on April 20, 2029, 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.
"Under our structured finance sovereign risk criteria, we expect
the transaction's exposure to country risk to be 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. The issuer is expected to be a special-purpose
entity that meets our criteria for bankruptcy remoteness.
"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 to 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 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."
Environmental, social, and governance
S&P said, "We regard the exposure to environmental, social, and
governance (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."
Ratings
PRELIM. PRELIM. AMOUNT
CLASS RATING* (MIL. EUR) SUB (%) INTEREST RATE§
A AAA (sf) 263.50 38.00 Three/six-month EURIBOR
plus 1.50%
B-1 AA (sf) 36.10 27.51 Three/six-month EURIBOR
plus 2.30%
B-2 AA (sf) 8.50 27.51 5.75%
C A (sf) 25.90 21.41 Three/six-month EURIBOR
plus 2.75%
D BBB- (sf) 30.40 14.26 Three/six-month EURIBOR
plus 4.00%
E BB- (sf) 18.10 10.00 Three/six-month EURIBOR
plus 6.95%
F B- (sf) 14.80 6.52 Three/six-month EURIBOR
plus 8.34%
Sub. Notes NR 32.60 N/A /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.
EURIBOR--Euro Interbank Offered Rate.
NR--Not rated.
N/A--Not applicable.
===================
L U X E M B O U R G
===================
SK NEPTUNE: $610MM Bank Debt Trades at 69% Discount
---------------------------------------------------
Participations in a syndicated loan under which SK Neptune Husky
Group Sarl is a borrower were trading in the secondary market
around 30.7 cents-on-the-dollar during the week ended Friday, March
15, 2024, according to Bloomberg's Evaluated Pricing service data.
The $610 million facility is a Term loan that is scheduled to
mature on January 3, 2029. The amount is fully drawn and
outstanding.
SK Neptune Husky Intermediate IV S.a.r.l. is the parent of
Luxembourg-based pigments manufacturer Heubach.
=====================
N E T H E R L A N D S
=====================
BRIGHT BIDCO: $300MM Bank Debt Trades at 76% Discount
-----------------------------------------------------
Participations in a syndicated loan under which Bright Bidco BV is
a borrower were trading in the secondary market around 24.1
cents-on-the-dollar during the week ended Friday, March 15, 2024,
according to Bloomberg's Evaluated Pricing service data.
The $300 million facility is a Payment in kind Term loan that is
scheduled to mature on October 31, 2027. The amount is fully drawn
and outstanding.
Amsterdam, The Netherlands-based Bright Bidco B.V. designs and
manufactures discrete semiconductor devices and circuits for light
emitting diodes (LEDs).
=============
R O M A N I A
=============
EUROINS: Sues EIG RE to Recover RON800 Million of Funds
-------------------------------------------------------
Romania Insider reports that insolvent Romanian insurer Euroins,
under the external management of CITR insolvency experts, has sued
the Bulgarian reinsurance company EIG Re in order to recover some
RON800 million (EUR160 million) transferred by the Romanian
subsidiary a couple of weeks before losing its operating license.
CITR sued EIG Re, a reinsurance firm in the Eurohold group, both in
Romania and Bulgaria, Romania Insider relays, citing Economica.net.
The money was transferred to EIG Re under a contract with unusual
clauses that block Euroins' access to the funds in case it loses
the operating license, Romania Insider discloses. Furthermore,
under the clauses of the reinsurance contract, EIG Re is no longer
bound to meet its obligations if Euroins loses its license, Romania
Insider states.
Insurance company Euroins, part of the Bulgarian group Eurohold,
had a 27% market share in the segment of the third-party liability
market segment (RCA) before the Financial Supervisory Authority
(ASF) withdrew its operating authorization in March last year,
Romania Insider notes.
ASF found that the company had a solvency capital deficit of over
EUR400 million, that is, it could not guarantee the payment of
obligations, Romania Insider relates. Shortly before, allegedly
anticipating the decision of the ASF, Euroins transferred almost
all the reserves to EIG Re, a reinsurer from the group with almost
negligible activity compared to Euroins Romania, Romania Insider
recounts.
===========
R U S S I A
===========
TEMIRYOL-SUGURTA JSC: S&P Affirms 'B+' ICR, Outlook Stable
----------------------------------------------------------
S&P Global Ratings affirmed its 'B+' long-term issuer credit and
financial strength ratings on Uzbekistan-based Temiryol-Sugurta JSC
(TYS). The outlook remains stable.
S&P said, "The implementation of our revised criteria for analysing
insurers' risk-based capital does not lead to any change in our
ratings on TYS. This is because the company's capital and earnings
assessment remains satisfactory due to its small absolute capital
size of below $25 million. In our view, the latter makes TYS more
susceptible to single-event losses and somewhat offsets the
positive effects the implementation of the revised criteria has on
the company's capital adequacy, including risk diversification
benefits, which are now captured more explicitly in our analysis.
"The stable outlook reflects our expectation that, over the next 12
months, TYS will continue to grow profitably while the company
maintains sound capital adequacy. We expect the management team and
the investment portfolio to remain unchanged."
S&P could lower the ratings in the next 12 months if:
-- S&P sees a significant and sustained deterioration in the
capital base caused by more aggressive growth, unexpected losses,
or higher dividends than it expects, with capital adequacy under
our capital model deteriorating to levels that are sustainably
below the 99.50% confidence level.
-- S&P sees that TYS is significantly underperforming its base
case, or it sees risks to its competitive position, for example,
due to a spike in competition or a weakened niche position in
relation to Uzbek Railways.
-- S&P could also downgrade TYS if it sees changes in the
shareholder structure or management team that it views as
detrimental for the company's credit profile.
-- S&P could upgrade TYS in the next 12 months, if the company
builds significant capital in absolute and relative terms, or
improves its competitive standing and business diversification to a
level more comparable with higher-rated peers.
S&P said, "Following the implementation of our new criteria, TYS'
capital adequacy strengthened within the 99.95% level. TYS' capital
adequacy exceeded the 99.99% confidence level in 2022, according to
our revised capital model. We forecast it can somewhat decline on
the back of business expansion and dividend pay outs, but will
likely remain above the 99.95% level over the next two years. This
reflects our expectation of 10%-20% premium growth over 2024-2025,
sound profitability with return on equity of 15%-20%, and retention
of net profit of 50%."
TYS' capital and earnings assessment remains satisfactory due to
the relatively small absolute capital size of below $10 million at
year-end 2023. S&P expects the company's total adjusted capital
will not exceed $25 million over 2024-2025. This makes TYS'
capitalization more susceptible to single-event losses and might
cause a higher volatility of operating performance, and also
influences its choice of the lower anchor of 'b+'. TYS also faces
potential risk from exposure to speculative-grade assets, such as
deposits in Uzbekistani banks with average credit quality in the
'BB' category.
TYS will likely continue diversifying its business mix for
international business, as well as other local market P/C segments
on the back of the quickly developing P/C insurance in Uzbekistan
and maintain its competitive position. S&P said, "We expect TYS
will continue diversifying its portfolio internationally in
aviation and property insurance. In addition, the company will
likely expand its local products to motor hull insurance and
selective financial risks. We also expect TYS will continue its
cooperation with Uzbek Railways for existing projects, although
competition in the niche railway insurance segment will likely
intensify in the medium term. With about Uzbekistan sum 250 billion
(about $20 million) in gross premium written in 2023, TYS is ranked
No.8 of 31 insurance companies operating on the Uzbek P/C insurance
market (or No.11 in terms of net premium written). We anticipate
that TYS will be able to maintain its market share at 2.0%-3.0% in
2024-2025."
=========
S P A I N
=========
BBVA CONSUMO 13: Moody's Assigns Ba2 Rating to EUR100MM B Notes
---------------------------------------------------------------
Moody's Ratings has assigned the following definitive ratings to
Notes issued by BBVA Consumo 13, FT:
EUR1900M Series A Fixed Rate Asset Backed Notes due May 2037,
Definitive Rating Assigned Aa3 (sf)
EUR100M Series B Fixed Rate Asset Backed Notes due May 2037,
Definitive Rating Assigned Ba2 (sf)
Maximum achievable rating is Aa1 (sf) for structured finance
transactions in Spain, driven by the corresponding local currency
country ceiling of the country.
RATINGS RATIONALE
The transaction is a static cash securitisation of Spanish
unsecured consumer loans originated by Banco Bilbao Vizcaya
Argentaria, S.A. (BBVA) (A3 Senior Unsecured/A3(cr), A2 LT Bank
Deposits). The portfolio consists of consumer loans used for
several purposes, such car acquisition, property improvement and
other undefined or general purposes. BBVA also acts as servicer,
collection account bank and issuer account bank provider of the
transaction.
The underlying assets consist of consumer loans with fixed rates
(98.7% of the pool) and floating rate loans (1.3% of the pool), and
a total outstanding balance of approximately EUR2,144 million. As
of January 9, 2024, the provisional portfolio has 239,848 loans
with a weighted average interest of 7.12%. The portfolio is highly
granular with the largest and 20 largest borrowers representing
0.01% and 0.11% of the pool, respectively. The portfolio also
benefits from a good geographic diversification and good weighted
average seasoning of 17.1 months. The final portfolio will be
selected at random from the provisional portfolio to match the
final Notes issuance amount.
The transaction benefits from credit strengths such as a strong
artificial write-off, which traps the available excess spread to
cover any losses when the loan has been six months in arrears.
Interest and principal on Class B Notes are fully subordinated to
Class A Notes and the amortization of the Notes is fully
sequential. An amortizing reserve, funded to 5.0% of the original
outstanding balance of the Notes, provides liquidity for the Class
A Notes. Class B Notes will benefit from the amounts outstanding in
the reserve fund once Class A Notes has fully amortised.
No interest rate risk as both interests on 98.7% of the asset and
100% of the Notes are fixed. However, Moody's notes that there is a
risk of yield compression as 97.9% of the loans in the pool has the
option of an automatic discount on the loan interest rate as a
result of the future cross selling of other products.
Various mitigants have been put in place in the transaction
structure, such as performance-related triggers to stop the
amortisation of the reserve fund. Commingling risk is mitigated by
the transfer of collections to the issuer account bank within two
days and the high rating of BBVA (A3 Senior Unsecured/A3(cr), A2 LT
Bank Deposits). If BBVA's long term deposit rating is downgraded
below Baa2, it will either transfer the issuer account to an
eligible entity or guarantee the obligations of BBVA.
Moody's analysis focused, amongst other factors, on (i) an
evaluation of the underlying portfolio of consumer loans and the
eligibility criteria; (ii) historical performance provided on
BBVA's total book and past consumer loan ABS transactions and
performance of previous BBVA Consumo deals; (iii) the credit
enhancement provided by subordination, excess spread and the
reserve fund; (iv) the liquidity support available in the
transaction by way of principal to pay interest; and (v) the
overall legal and structural integrity of the transaction.
MAIN MODEL ASSUMPTIONS
Moody's determined a portfolio lifetime expected mean default rate
of 5.5%, expected recoveries of 15.0% and a portfolio credit
enhancement ("PCE") of 19.0%. 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
its ABSROM cash flow model to rate consumer ABS transactions.
The portfolio expected mean default rate of 5.5% is above recent
Spanish consumer loan transaction average and is 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) performance track record on most recent BBVA
Consumo deals, (iii) benchmark transactions, and (iv) other
qualitative considerations like the percentage of self-employed in
this portfolio.
Portfolio expected recoveries of 15% are in line with recent
Spanish consumer loan 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
such as quality of data provided.
The PCE of 19.0% is above other Spanish consumer loan peers and is
based on Moody's assessment of the pool taking into account the
relative ranking to originator peers in Spanish consumer loan
market. The PCE of 19.0% results in an implied coefficient of
variation ("CoV") of 47.2%.
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 of the Notes would be: (1) better than expected performance
of the underlying collateral; or (2) a lowering of Spain's
sovereign risk leading to the removal of the local currency ceiling
cap.
Factors or circumstances that could lead to a downgrade of the
ratings of the Notes would be: (1) worse than expected performance
of the underlying collateral; (2) deterioration in the credit
quality of BBVA; or (3) an increase in Spain's sovereign risk.
FLUIDRA SA: Moody's Affirms 'Ba2' CFR, Outlook Remains Stable
-------------------------------------------------------------
Moody's Ratings has affirmed Fluidra S.A.'s (Fluidra or the
company) Ba2 long-term corporate family rating and its Ba2-PD
probability of default rating. Concurrently Moody's has affirmed
the Ba2 ratings on the company's EUR450 million guaranteed senior
secured revolving credit facility (RCF) due January 2027, as well
as the Ba2 ratings on the $750 million backed senior secured term
loan (TL) and the EUR450 million backed senior secured TL, both due
January 2029 and issued, respectively, by Zodiac Pool Solutions LLC
and Fluidra Finco, S.L.U, which are wholly owned subsidiaries of
Fluidra. The outlook on all ratings remains stable.
"While 2023 was a difficult year in the residential pool equipment
market with significant low volumes due to channel inventory
de-stocking amid weakening consumer demand, Fluidra demonstrated
relatively resilient aftermarket sales consolidating its market
leadership position", said Giuliana Cirrincione, Moody's lead
analyst for Fluidra. "The company was also able to preserve its
robust profitability and restore free cash flow generation, which
allowed it to reduce debt and mitigate the impact of declining
EBITDA on financial leverage", added Mrs. Cirrincione.
RATINGS RATIONALE
The ratings affirmation reflects Fluidra's leading market position
in the global pool equipment industry, which underpins its strong
profit margins and consistent pricing power despite the soft
trading conditions within the sector. While exposed to
discretionary consumer spending with a predominant concentration on
the cyclical residential segment, Fluidra's credit profile is
supported by a large portion (70%) of aftermarket sales, mainly
represented by maintenance and repairments which are more recurring
in nature. Aftermarket sales provide a degree of stability in the
company's topline and partly mitigates the risk of large earnings
fluctuations during economic downturns, because maintenance and
equipment replacements are required to maintain pool usability and
represent a relatively modest expense from consumers' perspective,
as opposed to new pool construction.
The pool industry is facing ongoing demand uncertainty driven by
lower new build activities and consumers being choosy with
discretionary spending amid still-elevated inflation. In addition,
the demand for pools and related equipment was abnormally high
during the coronavirus pandemic and is now deflating, although the
higher installed base provides ongoing support to aftermarket
sales. According to the company, inventory correction mostly
completed in 2023 and will become a tailwind in 2024 but at the
same time volume growth will only regain momentum from 2025 as
demand may remain weak and new build volumes will continue to
decline by around 10%-15% over the next 12 months. As a result,
Moody's forecast Fluidra's sales growth will remain muted in 2024
and will only increase by mid-single-digit percentage rates in
2025, supported by a stronger recovery in the aftermarket,
including remodeling, and some moderate growth also in the
commercial segment, currently representing a small 10% of the
company's total sales.
Although volumes and company-reported EBITDA both dropped by around
16% year-on-year in 2023, Fluidra managed to moderately improve its
profit margins thanks to better product mix, price increases to
offset inflation and ongoing savings. Importantly, excess inventory
in the market declined significantly during 2023 allowing the
company to restore its traditionally good free cash flow
generation, which peaked to a high EUR190 million in 2023 after the
EUR154 million deficit reported a year earlier. The strong cash
generation also resulted in some debt reduction, and the rating
agency estimates the Moody's-adjusted debt/EBITDA in 2023 to have
remained roughly stable compared to 2022, at around 3.6x, despite
the lower EBITDA. According to Moody's forecasts, adjusted leverage
will remain elevated in 2024 with only modest improvement and will
get back to below 3.0x in 2025, leaving the company weakly
positioned in the Ba2 rating category in the meantime.
This reflects the expectation of a modest EBITDA growth in 2024 on
the back of still-high inflation, especially in wages, and the
implementation costs of the savings plan whose benefits will become
more visible from 2025. Positively, Moody's sees limited execution
risk in the optimization plan, given Fluidra's positive track
record in achieving planned efficiency gains with a sustainable
impact on profitability. Also positively, FCF will remain positive,
despite some increase in capital spending and continued dividend
payments.
Another key credit consideration supporting the rating is Fluidra's
balanced financial policy, with commitment to a net leverage target
(on a company-reported basis) of 2.0x which Moody's expects to be
prioritized over dividends, share buybacks and acquisition.
RATING OUTLOOK
The stable outlook reflects Moody's expectation that Fluidra will
be able to navigate the still challenging consumer spending
environment and successfully implement its cost optimization plan,
with Moody's-adjusted leverage trending back towards 3.0x over the
next 12-18 months. The stable outlook also assumes that Fluidra
will maintain good free cash flow generation and a balanced
financial policy which prioritises the net leverage target of 2.0x
over dividends, share buybacks and acquisition spending.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade Fluidra's ratings if higher than currently
expected earnings growth, combined with increased scale and
business diversification, result in a Moody's-adjusted gross
debt/EBITDA below 2.0x on a sustained basis. A rating upgrade would
also require the company to maintain good liquidity.
Moody's could downgrade Fluidra's ratings if operating performance
weakens as a result of a prolonged deterioration in demand or in
the company's market positions, such that its Moody's-adjusted
gross debt/EBITDA remains well above 3x on a sustained basis.
Negative pressure could also develop if the company fails to
maintain good liquidity, or pursues an aggressive M&A strategy or
significantly higher-than-expected shareholder distributions.
LIQUIDITY
Fluidra's liquidity is good, supported by a cash balance of around
EUR110 million at the end of December 2023 and access to a fully
available EUR450 million RCF. Moody's expects these sources of
liquidity, together with internal cash generation, to comfortably
cover all the company's annual cash needs.
Business seasonality creates significant intra-year working capital
volatility, with swings of up to 10% of sales. Following the
unwinding of exceptionally high inventory levels during 2023, the
rating agency expects normalised working capital requirements going
forward, with modest cash absorption in 2024, albeit with large
swings among quarters. Additional annual cash needs include capital
spending of around EUR100 million (including operating lease
adjustment); assumed acquisition spending of up to EUR35 million;
and estimated dividend payments averaging about EUR100 million-
EUR130 million per year. Fluidra does not have any significant debt
maturities until 2029, when its term loans become due.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Consumer
Durables published in September 2021.
COMPANY PROFILE
Domiciled in Spain, Fluidra S.A. is a global leading producer of
pool equipment and wellness solutions, with an estimated 20% share
of the global pool equipment market. In 2023, Fluidra reported
sales of EUR2 billion and company-adjusted EBITDA of EUR445 million
(2022: EUR2.4 billion and EUR512 million, respectively). The
company's largest shareholders are Fluidra's founding families
(28.3%) and Rhône Capital (11.7% stake), with the remaining shares
in free float.
GESTAMP AUTOMOCION: Moody's Ups CFR & EUR400M Sr. Sec. Notes to Ba2
-------------------------------------------------------------------
Moody's Ratings has upgraded to Ba2 from Ba3 the long-term
corporate family rating and to Ba2-PD from Ba3-PD the probability
of default rating of Spanish auto parts supplier Gestamp
Automocion, S.A. Concurrently, Moody's upgraded to Ba2 from Ba3 the
instrument rating on the group's EUR400 million backed senior
secured notes due 2026. The outlook changed to stable from
positive.
"The upgrade of Gestamp's CFR to Ba2 reflects the group's continued
strong organic topline growth, stable profitability in a
challenging market environment over the last two years and
de-leveraging to an appropriate level for the Ba2 rating category
in 2023", says Goetz Grossmann, a Moody's Vice President – Senior
Analyst and lead analyst for Gestamp. "The Ba2 CFR is also
supported by Gestamp's solid liquidity and modest exposure to risks
along the automotive industry's transition to electric vehicles",
continues Grossmann.
RATINGS RATIONALE
The upgrade follows Gestamp's solid results for the fiscal year
2023, when its group sales reached EUR12.3 billion (+14.4%
year-over-year (yoy)) and reported EBITDA increased to EUR1.4
billion (+13.4%), yielding a stable 11.2% margin versus 11.3% in
2022. Thanks to the group's positive exposure to its geographic and
product differentiation and diversification, industry trends in
terms of lightweight and rising safety standards, as well as
inflation, its automotive revenues increased by 16.6% yoy,
representing a 6.4% outperformance of light vehicle production in
Gestamp's relevant regions (at constant currencies and excluding
the impact of raw material prices). While adverse foreign currency
effects weighed on Gestamp's 5.5% Moody's adjusted EBITA margin in
2023, the rating agency recognizes the group's very stable
profitability since the temporary drop in the pandemic-hit year
2020. Despite unstable car production due to supply shortages,
rising input cost inflation and fluctuating currency effects,
Gestamp could maintain its Moody's adjusted EBITA margin in a very
narrow range of 5.4%-5.5% over 2021-2023.
Although Gestamp's funds from operations slightly reduced owing to
higher interest costs on its floating rate debt and given increased
capital spending and dividend payments, a significant release in
previously built up working capital supported its Moody's adjusted
free cash flow (FCF) turning just positive in 2023.
The upgrade was further prompted by Gestamp's track record of
reducing its reported leverage to 1.5x net debt/EBITDA in 2023 from
2.3x in 2021, thereby reaching its target range of 1.0x-1.5x.
Likewise, the group's Moody's adjusted leverage of 3.4x gross
debt/EBTDA in 2023, which constantly decreased from 5.0x during the
last two years, is now in line with Moody's 3.0-3.5x guidance for a
Ba2 rating. Besides the EBITDA growth, the de-leveraging in 2023
was aided by EUR0.5 billion debt repayments with available cash,
which also positively reflects on Gestamp's financial policy that
has visibly prioritized de-leveraging during the last few years.
That said, Moody's expects the group's investments in growth
projects, as well as additional cash needs associated with its
newly launched strategic project "Phoenix" to weigh on projected
slightly negative Moody's adjusted FCF over the next two years. The
program, which is specifically focused on growth, footprint
consolidation and efficiency measures in the NAFTA region (mainly
USA and Mexico), will require EUR60 million extra costs and EUR39
million additional capital spending over 2024-2026, according to
management. Eventually, the measures should enable to the group to
durably improve its profitability in the NAFTA region to an EBITDA
margin of over 10% by 2026, from 6.7% in 2023. Considering the
one-off implementation costs, which will be mostly incurred in
2024, Moody's expects Gestamp's Moody's adjusted EBITA margin to
reach at least 6% by 2025 only, after around 5.6% this year.
The group's planned measures related to the "Phoenix" project,
including the relocation of one production facility from USA to
Mexico, still need to be implemented in a timely and cost effective
manner. While management evaluates execution risks as limited,
Moody's considers the project as an initial credit challenge for
Gestamp, which, however, should yield benefits in terms of
manufacturing efficiency and cost competitiveness in the NAFTA
region and gradually improve its financial profile from 2025
onwards.
LIQUIDITY
Moody's considers Gestamp's liquidity as strong. Although the
group's cash position reduced to EUR1.2 billion at the end of 2023
from EUR1.7 billion in the prior year, mainly due to debt
repayments, its internal cash sources continue to significantly
exceed its basic near term cash needs. Besides cash on the balance
sheet, Gestamp had access to its committed and fully undrawn EUR500
million revolving credit facility (maturing in May 2028). These
cash sources, together with projected annual funds from operations
(adjusted for capitalized development costs) of up to EUR1.0
billion, comfortably cover the group's cash uses over the next 12
months, comprising (1) around EUR1.0 billion capital spending
(excluding capitalized development costs and including lease
liability payments), (2) dividends of around EUR0.1 billion, (3) up
to EUR50 million payments for acquisitions, (4) EUR0.8 billion
short term debt maturities as of December 31, 2023, as well as
Moody's standard working cash assumption of 3% of group turnover.
Gestamp's senior secured bank credit agreements contain two
financial covenants (interest cover and adjusted leverage), under
which Moody's expects the group to maintain ample capacity at all
times.
RATIONALE FOR THE STABLE OUTLOOK
The stable outlook indicates Gestamp's solid positioning in the Ba2
rating category, reflecting its improved credit metrics in 2023,
which Moody's expects to be sustained within the specified ranges
for a Ba2 rating in 2024. Considering expected extra costs
associated with the "Phoenix" strategic program, however, Gestamp's
Moody's adjusted EBITA margin (including these costs) will be
constrained, but should gradually recover to at least 6% by 2025,
which could lead to positive pressure on the outlook building over
the next few quarters. The stable outlook also rests on the
assumption that Gestamp will maintain strong liquidity and continue
to adhere to its reported leverage target of 1.0-1.5x net
debt/EBITDA.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade Gestamp's rating, if its (1) Moody's adjusted
EBITA margin strengthened to over 6%, (2) Moody's adjusted gross
debt/EBITDA reduced to close to 3.0x on a sustainable basis, (3)
Moody's-adjusted retained cash flow/net debt continued to exceed
25%, and (4) Moody's-adjusted FCF remained positive.
Moody's could downgrade Gestamp's rating, if its (1) Moody's
adjusted EBITA margin fell below 5.0%, (2) Moody's adjusted gross
debt/EBITDA exceeded 3.5x, (3) Moody's-adjusted retained cash
flow/net debt decreased to below 20%, (4) Moody's adjusted FCF
turned constantly and materially negative, or (5) liquidity started
to weaken.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Automotive
Suppliers published in May 2021.
COMPANY PROFILE
Gestamp Automocion, S.A. (Gestamp), headquartered in Madrid, Spain,
designs, develops and manufactures metal components for the
automotive industry. The company generated EUR12.3 billion of
revenue in 2023, has around 45,000 employees and operates 110
plants and 13 R&D centers in 24 countries. Its products are divided
into the following segments: BIW (including hoods, roofs, doors,
pillars, floors, crash boxes and battery boxes for electric
vehicles) and Chassis products (front and rear sub-frames, front
and rear links) — together accounting for around 82% of revenue
in 2023; Mechanisms (hinge systems and other powered door
opening/closing-related products, 10%); tooling and other products
(3%); and metal recycling (5%). Gestamp is listed on the Madrid
stock exchange and had a free float of 26.24% as of December 31,
2023. Of the share capital, 74.17% was controlled directly and
indirectly by Acek Desarrollo Y Gestion Industrial S.L. (the
Riberas family industrial holding).
PAX MIDCO: Moody's Affirms 'B3' CFR, Outlook Remains Stable
-----------------------------------------------------------
Moody's Ratings has affirmed Pax Midco Spain (Areas or the
company)'s B3 corporate family rating, B3-PD probability of default
rating and the B3 ratings on the senior secured bank credit
facilities issued by Financiere Pax S.A.S. Concurrently, Moody's
has assigned a B3 rating to the new expected EUR1.1 billion senior
secured loan B2 maturing in December 2029 and to the new expected
EUR175 million senior secured revolving credit facility (RCF)
maturing in June 2029, both to be issued by Financiere Pax S.A.S.
The outlook remains stable for both entities.
The company intends to use the proceeds of the new expected EUR1.1
billion senior secured loan to repay part of the existing EUR150
million senior secured acquisition facility maturing in June 2026,
part of the existing EUR1.05 billion senior secured term loan
maturing in June 2026 and the existing EUR108 million French
state-guaranteed loan maturing in October 2026.
"The ratings actions reflect Moody's expectation that Areas will
continue to improve its profitability, supported by higher traffic
across segments and by continued costs control" says Sarah
Nicolini, a Moody's Vice President – Senior Analyst and lead
analyst for Areas.
"However the ratings also consider that, despite the expected
profitability improvement and the strong business momentum, the
company's free cash flow generation will remain negative in the
next 12-18 months, owing to higher capital expenditure, and the
interest coverage will remain weak", adds Ms Nicolini.
RATINGS RATIONALE
Moody's expects that the company's reported EBITDA margin (pre
IFRS16) will progressively trend towards 10%, thus reaching
pre-pandemic levels, in the next 12-18 months, compared to 8.8%
reported in fiscal 2023 (ending September 2023). Such improvements
will be driven by (i) full traffic recovery in the airport segment,
compared to pre-pandemic, (ii) sustained traffic increases in all
the other segments, (iii) continued cost control, including also
rents. This will translate into a Moody's-adjusted EBITDA margin
trending towards 22.5% in the next 12-18 months.
As a consequence, Moody's-adjusted debt/EBITDA will continue to
decrease towards 4.5x over the same period, compared to 6.1x in
fiscal 2023.
Notwithstanding the sustained business environment, Moody's expects
that free cash flow generation will remain negative in the next
12-18 months, as a consequence of increased defensive capital
expenditure to secure concessions coming to expiry. The company has
a strong track record of winning renewing concessions, with a 97%
retention rate as of December 2023. Moody's forecasts that total
capital expenditure (including also offensive bids) will average
4.7% of revenues in the next 12-18 months: despite the increase,
this ratio will remain well below pre-COVID levels (around 7% spent
in fiscal 2019).
At the same time, the rating agency expects Moody's-adjusted
EBITA/interest to trend around 1x also after the expected
refinancing. Such ratio, coupled with the negative free cash flow,
weakly position the company in its B3 CFR rating. Moody's forecasts
EBITA / interest to exceed 1x and for FCF to approach breakeven in
2025 which would be more commensurate with the B3 rating level.
The B3 CFR continues to be supported by Areas' leading market
positioning in key countries, the high barriers to entry, its
diversification across segments and the supportive consumer
spending.
The expected debt refinancing well ahead of maturity supports the
B3 ratings and is a key rating driver. As a consequence of it,
financial strategy and risk management is a governance
consideration under Moody's General Principles for Assessing
Environmental, Social and Governance Risks methodology for
assessing ESG risks. Areas's overall exposure to governance risk
(Issuer Profile Score or "IPS") is unchanged at G-4, reflecting its
tolerance for high leverage.
LIQUIDITY
Areas' liquidity is adequate. The company had EUR240 million of
cash and cash equivalents on the balance sheet as at September
2023. Moody's expects the new EUR175 million RCF to remain
available in the next quarters, although some drawings might be
possible on a temporary basis, as a consequence of the seasonality
of the business. Moody's expects the company to comply with the
springing net leverage covenant attached to the RCF, which is set
at 10.7x and will only be tested if the RCF is at least 40% used.
Major cash outflows relate to capital expenditure, averaging 4.7%
of revenues in the next 12-18 months, and negative free cash flow
generation of around EUR80 million in fiscal 2024 and around EUR14
million in fiscal 2025. After the completion of the expected
refinancing, the company will need to repay EUR18 million of debt
per year in fiscal 2024 and fiscal 2025, mostly related to the
amortisation of the remaining state-guaranteed loans.
STRUCTURAL CONSIDERATIONS
The senior secured credit facilities, including the new proposed
issuance, are rated B3, at the same level as the CFR, reflecting
their pari passu ranking with the state-guaranteed loans under
Moody's Loss Given Default model. This is because the structural
subordination of the senior secured credit facilities to the
state-guaranteed loans is offset by the upstream guarantees from
operating companies.
The senior secured credit facilities benefit from first-ranking
transaction security over shares, bank accounts and intragroup
receivables of significant subsidiaries. Moody's typically view
debt with this type of security package as akin to unsecured debt.
However, the credit facilities will benefit from upstream
guarantees from operating companies, accounting for at least 80% of
consolidated EBITDA.
The French state-guaranteed loan was issued by Holding De
Restauration Concedee S.A.S., a France-based operating company. It
is unsecured and is not guaranteed by other operating companies.
The Spanish state-guaranteed CESCE and ICO loans were issued by
Areas SAU, a Spain-based operating company. The ICO loans are
unsecured and are not guaranteed by other operating companies, but
the CESCE loans share a similar security and guarantor package as
the senior secured credit facilities.
The Italian state-guaranteed loan was issued by Areas Italia S.r.L.
It is unsecured and is not guaranteed by other operating
companies.
RATIONALE FOR THE STABLE OUTLOOK
The stable outlook reflects Moody's expectations that credit
metrics will continue to sequentially improve in the next 12-18
months, leading to Moody's-adjusted debt/EBITDA progressively
decreasing towards 4.5x over the same period. Although free cash
flow will worsen in fiscal 2024, as a consequence of the higher
capital expenditure, Moody's expects it to revert to around
break-even in fiscal 2025 and to subsequently improve.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
A rating upgrade is unlikely at present, given the expected
negative free cash flow and the weak interest coverage in the next
12-18 months. Over time, upward rating pressure could develop if
the company continues to grow its profitability and demonstrates a
track record of sustainably positive free cash flow generation,
with Moody's-adjusted free cash flow/debt trending around low-mid
single digit percentages. At the same time, positive pressure would
also require Moody's-adjusted EBITA/interest to increase above
1.5x, liquidity to be solid and Moody's-adjusted debt/EBITDA to
trend well below 4.5x on a sustainable basis.
Downward rating pressure could arise if liquidity weakens, if the
capital structure is unsustainable or if debt maturities are not
refinanced in a timely manner. Quantitatively, rating pressure
could be manifested by persistently negative free cash flow
generation, Moody's-adjusted EBITA/ interest remaining below 1x
beyond 2025 or Moody's-adjusted debt/EBITDA remaining above 5.5x on
a sustained basis.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Restaurants
published in August 2021.
COMPANY PROFILE
Areas, headquartered in Spain, is a leading operator of food and
beverage concessions in travel hubs such as airports, train
stations and motorway service areas. The company had EUR2,095
million revenue in fiscal 2023.
TDA IBERCAJA 7: S&P Affirms 'D(sf)' Rating on Class C Notes
-----------------------------------------------------------
S&P Global Ratings raised to 'AA (sf)' from 'A+ (sf)' its credit
rating on TDA Ibercaja 7, Fondo de Titulizacion de Activos's class
B notes. At the same time, S&P affirmed its 'AAA (sf)' and 'D (sf)'
ratings on the class A and C notes, respectively.
The rating actions follow its full analysis of the most recent
information that we have received and the transaction's current
structural features.
S&P said, "Under our global RMBS criteria, our weighted-average
foreclosure frequency assumptions decreased because of the
transaction's reduction in arrears. In addition, our
weighted-average loss severity assumptions have also declined due
to a combination of an increase in house prices and amortization of
loans, leading to a lower weighted-average current loan-to-value
ratio in the pool."
Credit analysis results
RATING WAFF (%) WALS (%) CREDIT COVERAGE (%)
AAA 10.47 14.14 1.48
AA 7.22 10.44 0.75
A 5.59 5.44 0.30
BBB 4.29 3.47 0.15
BB 2.92 2.40 0.07
B 1.96 2.00 0.04
WAFF--Weighted-average foreclosure frequency.
WALS--Weighted-average loss severity.
Loan-level arrears stand at 0.87%. Overall delinquencies remain
well below our Spanish RMBS index.
Cumulative defaults, defined as loans in arrears for a period equal
to or greater than 18 months, represent 1.89% of the closing pool
balance. The interest deferral trigger for the class B notes is not
at risk of being breached because it is defined at 10%, and S&P
does not expect that this level will be reached in the near term.
The available credit enhancement for all classes of notes has
remain unchanged since our previous review. This is because the
notes are amortizing on a pro rata basis, and the reserve fund is
also amortizing in line with the notes and is at its target
amount.
S&P's operational, rating above the sovereign, and legal risk
analyses remain unchanged since its previous review. Therefore, the
ratings assigned are not capped by any of these criteria.
The servicer, Ibercaja Banco S.A., has a standardized, integrated,
and centralized servicing platform. It is a servicer for many
Spanish RMBS transactions, and its transactions' historical
performance has outperformed our Spanish RMBS index.
S&P said, "In our view, the ability of the borrowers to repay their
mortgage loans will be highly correlated to macroeconomic
conditions, particularly the unemployment rate, consumer price
inflation, and interest rates. Our current forecast on policy
interest rates for Spain is 3.75% and our forecasts for
unemployment for 2024 and 2025 are 12.1% and 12.0%, respectively.
"Furthermore, a decline in house prices typically affects the level
of realized recoveries. For Spain, in 2024 and in 2025, we expect
them to decrease by 0.3% in 2024 and increase by 1.5% in 2025.
"We therefore ran two additional scenarios with increased defaults
of 1.1x and 1.3x. The results of the above sensitivity analysis
indicate a deterioration of up to two notches on the class B notes,
which is in line with the credit stability considerations in our
ratings definitions. A general downturn of the housing market may
delay recoveries.
"We have also run extended recovery timings and lower recovery
rates to understand the transaction's sensitivity to liquidity
risk. The results of these scenarios indicate a deterioration of
one notch on the class B notes.
"Our credit and cash flow results indicate that the credit
enhancement available for the class A notes is still commensurate
with our 'AAA (sf)' rating. We therefore affirmed our 'AAA (sf)'
rating on the class A notes.
"Considering the results of our credit and cash flow analysis, the
available credit enhancement, and the stable and good asset
performance, we raised to 'AA (sf)' from 'A+ (sf)'our rating on the
class B notes."
The class C notes paid all unpaid interest due on the November 2019
interest payment date. Since then, interest on this tranche has
been paid timely, and it has started amortizing. However, this
tranche is not collateralized, and it is paid after amortization of
the reserve fund. It missed a significant amount of interest
payments in the past, and it is still not certain that future
interest payments will not be missed. Given its credit enhancement
and position in the waterfall, S&P affirmed its 'D (sf)' rating on
this class of notes.
TDA Ibercaja 7 is a Spanish RMBS transaction that securitizes a
pool of prime residential mortgage loans. It closed in December
2009.
===========================
U N I T E D K I N G D O M
===========================
ENGENERA RENEWABLES: Enters Administration, Halts Operations
------------------------------------------------------------
Tom Keighley at BusinessLive reports that administrators have been
called in to a renewable energy firm that used local authority
pension fund investors to fund its installations via a GBP100
million "green bond" scheme.
According to BusinessLive, Newcastle-based Engenera Renewables has
now ceased trading after insolvency experts at Leonard Curtis were
recently called in to the collapsed firm. It offered businesses
and homeowner clients the opportunity to have renewable
technologies such as solar, battery storage and air and ground
source heat pumps, and in recent years helped Nissan to deliver a
huge 40,000 panel extension to its Sunderland solar farm as part of
efforts to power production of electric vehicles.
Filings at Companies House indicate the firm underwent a
restructuring around June last year, BusinessLive notes.
As of the end of September 202 the firm said it had received more
than GBP7 million investment into the scheme, arranged by Boston
hedge fund Convexity Capital, which was being used to install new
solar panels for clients, BusinessLive relates. At that point 32
projects had been fully installed at a total project build cost of
GBP1.48 million, BusinessLive states.
Documents about the green bond scheme show that noteholders and
other issuer secured creditors rank first priority over unsecured
creditors in the event of an insolvency, BusinessLive relays. Most
recent accounts for Engenera Renewables show it employed 19 people
in 2022.
GOLDEN CASTLE: Bought Out of Administration
-------------------------------------------
Business Sale reports that two companies that are part of a group
of caravan and motorhome retailers have been sold out of
administration.
Golden Castle Caravans Ltd and Robinsons Caravans Ltd are part of
the wider Robinsons Caravans group, which operates dealerships
across the Midlands and South West.
Ryan Grant and Chris Pole from Interpath Advisory were appointed as
joint administrators to Golden Castle Caravans and Robinsons
Caravans on March 11 and March 14, respectively, Business Sale
relates.
Golden Castle Caravans, based in Twigworth, Gloucester, and
Robinsons Caravans, which operates from sites in Derbyshire and
Nottinghamshire, both sell new and used caravans and motorhomes.
According to administrators, certain companies within the Robinsons
Caravans group have historically traded profitably, but others have
seen lower than expected sales volumes as a result of the
cost-of-living crisis and the impact it has had on disposable
incomes, Business Sale notes.
This put significant financial pressure on the wider group, which
administrators said had recently become "increasingly
unsustainable", Business Sale states. The directors sought to
undertake a review of the group's investment, refinance and sale
options, ultimately moving to appoint administrators when a solvent
solution could not be found, Business Sale recounts.
Immediately following their appointment at Golden Castle Caravans
Ltd, the joint administrators secured a sale to Gloucestershire
Leisure Ltd, a connected party by virtue of one of the directors,
in a deal that saw 17 members of staff transfer to the buyer,
Business Sale discloses.
Separately, following their appointment at Robinsons Caravans Ltd,
the joint administrators secured the sale of certain of its
business and assets to Storebon Holdings Ltd, part of the Couplands
Caravans group, according to Business Sale. This deal saw nine
staff members from the Worksop site transfer to the buyer, but the
company's Chesterfield site was not included and will close with
immediate effect, leading to 16 redundancies, Business Sale
relays.
HANTONA LTD: Financial Difficulties Prompt Administration
---------------------------------------------------------
Alfie Lumb at Bournemouth Echo reports that a Dorset company which
operates two care homes has been placed into administration.
Tom Grummitt and Andrew Smith of insolvency firm Bridgewood have
been appointed as Administrators of Hantona Ltd, which operates the
Old Rectory in Swanage and Delph House in Poole, Bournemouth Echo
relates.
Hantona announced in December that it was to cease trading due to
financial difficulties. Since then it has been working with Dorset
Council and BCP Council to support residents and their families and
help them move to alternative accommodation, Bournemouth Echo
recounts.
According to Bournemouth Echo, Mr. Grummitt said that seven
residents currently remained at the Old Rectory and 11 at Delph
House, however the homes would remain open until all residents had
been safely relocated.
He said: "We are also gathering information to ascertain the
financial position of the business and, while Hantona had announced
its plans to cease trading a number of weeks prior to our
appointment, we will continue to explore all possible options."
JURASSIC ALIVE: Owes HMRC GBP400,000, Documents Show
----------------------------------------------------
Sam Wildman at Northamptonshire Telegraph reports that a bust
dinosaur-themed restaurant firm which began in Kettering owed more
than GBP400,000 to the taxman, documents have revealed.
Jurassic Alive Ltd, which operated the Jurassic Grill chain, began
winding-up proceedings after staff at three of their restaurants
were suddenly told they were closing on New Year's Day in a
message, Northamptonshire Telegraph relates.
But documents published on Companies House as part of their
liquidation process show they have dozens of creditors who are owed
an estimated total of just under GBP1.28 million, Northamptonshire
Telegraph notes. The largest of these is HM Revenue & Customs
(HMRC), which is a second preferential creditor for GBP433,522,
Northamptonshire Telegraph states.
Documents revealed they had estimated total assets of just
GBP25,200 available for preferential creditors, which will be used
to partly cover 56 claims for employee arrears or holiday pay for a
total of GBP42,283.66, Northamptonshire Telegraph discloses.
A fourth Jurassic Grill restaurant, at Loch Lomond in Scotland,
remains open and is understood to be separately owned to the
English restaurants, according to Northamptonshire Telegraph.
A media release issued when Jurassic Alive Ltd went on the market
said they employed 67 staff plus a further nine managers. It also
said that, in its most recent financial year, "Jurassic Alive Ltd
achieved a gross profit of GBP1.05 million".
But documents published on Companies House show how much money they
owed to dozens of creditors, Northamptonshire Telegraph relays.
Included in a list of non-preferential creditors were 58 claims
from trade and expense creditors for a total of GBP466,902.60 and
more employee claims, Northamptonshire Telegraph states.
MBH CORP: Administration to Have Limited Impact on White Arches
---------------------------------------------------------------
Stephanie Weaver at Northamptonshire Telegraph reports that Caravan
and motorhome dealer White Arches which has sites in Wellingborough
and Rushden has issued a statement on its future.
It comes after administrators were appointed for MBH Corporation,
the company which bought White Arches Caravans and White Arches
Motorhomes in a multi-million-pound deal last year,
Northamptonshire Telegraph notes.
According to Northamptonshire Telegraph, a statement issued by
White Arches on March 14 said: "MBH Corporation plc recently took
steps to place MBH Corporation into administration.
"MBH is a shareholder of White Arches.
"While this news is disappointing, we expect this will have limited
impact on White Arches, as MBH is a shareholder only -- White
Arches was not relying on funding from them.
"Separately, we have recently been working closely with our
stakeholders and our advisors to explore options that would enable
us to bring additional investment into the business which would put
in place the financial platform we need to be able to take our
growth plans forward.
"This includes exploring a potential sale of the business to a new
investor.
"We cannot comment further while discussions remain ongoing."
White Arches, which has more than 46 years' experience in the
industry, operates two businesses -- White Arches Caravans based in
Rushden and White Arches Motorhomes in Wellingborough.
White Arches Caravans specialise in new and used caravans,
including Swift caravans, Bailey caravans, Coachman caravans,
Sprite caravans and the Swift Archway range of caravans.
The offering at White Arches Motorhomes includes Adria motorhomes,
Bailey motorhomes, Auto-Trail motorhomes as well as VW Campers.
ORIFLAME INVESTMENT: S&P Lowers LT ICR to 'CCC', Outlook Negative
-----------------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
U.K.-based direct selling cosmetics and wellness manufacturer
Oriflame Investment Holding PLC to 'CCC' from 'CCC+'. S&P also
lowered its issue rating on its senior secured notes maturing in
2026 to 'CCC' from 'CCC+'. The recovery rating on the notes remains
at '3', indicating rounded recovery prospects of about 50%.
S&P said, "The negative outlook reflects our expectation of ongoing
weak operating performance with slower-than-anticipated recovery
prospects, unsustainable capital structure, and negative cash flow
generation. Considering the recent appointment of debt advisors and
the fact that the company's debt is trading at deeply distressed
levels, we believe there is an increased likelihood of the company
considering a distressed exchange offer in the short term.
"The 'CCC' rating reflects our view of an increased likelihood of
the company considering a distressed exchange offer in the short
term. The company announced the appointment of Rothschild & Co. to
advise on potential refinancing options of its upcoming debt
maturities. Oriflame's $550 million and EUR250 million senior
secured notes are currently trading at distressed levels. In our
view, the significant discount associated with the par value of the
notes increases the probability of the company negotiating some
form of subpar debt exchange. In line with our criteria, we would
view any type of exchange offer whereby the lenders receive less
than the original promise as a default."
Oriflame posted a worse-than-anticipated 2023 operating
performance, resulting in further credit metric deterioration. S&P
said, "Fiscal 2023 results presented a significant negative
deviation from our previous base-case expectations, with a reported
sales decline of 18.8% to EUR750.9 million (12% decline in local
currency) along with a 63.4% decline in the company's adjusted
EBITDA (according to company calculations) to EUR39 million with a
reported margin of close to 5%. We estimate S&P Global
Ratings-adjusted EBITDA at about EUR6 million for 2023, including
EUR34 million of restructuring costs. Significant negative volume
declines (a 27% decline year on year) notably impaired
profitability, driven by the ongoing member contraction, inflation
on product costs, negative exchange rate effects from emerging
market currencies, and inventory write-offs. Price/mix initiatives
were only partially able to offset this, increasing by 15%. The
contraction in S&P Global Ratings-adjusted EBITDA caused adjusted
debt to EBITDA to spike materially. In addition, we expect it will
result in negative free operating cash flow of about EUR40 million
for 2023." The company's cash position benefited from net proceeds
of EUR25.4 million from the sale of Cetes Cosmetics Russia during
the second quarter of 2023, although offset by shareholder
distribution of EUR35.1 million.
As of Dec. 31, 2023, Oriflame has an undrawn amount of about EUR96
million under the EUR100 million revolving credit facility due in
October 2025, coupled with about EUR80 million of cash and cash
equivalents. In our view, this liquidity headroom provides a
sufficient cash cushion for the implementation of its turnaround
initiatives and standard business operations. At the same time, S&P
views the liquidity profile of the company as less than adequate
based on the likelihood of the company not being able to absorb
high-impact, low-probability cash events due to limited access to
additional funding as part of ordinary business activities.
S&P said, "We expect Oriflame's operating performance will remain
weak in 2024 as the company implements its turnaround
initiatives.Under our revised base case we estimate slightly
negative revenue growth in 2024 as Oriflame focuses on progressing
its turnaround strategy, which aims to gradually rebuild its
membership base. Key transformation initiatives include the Beauty
Community Model (BCM), a new digitally enabled compensation model
for brand partners and members to improve recruitment rates, along
with the simplification and segmentation of the product portfolio
to adjust to regional market needs. The company launched a new
marketing campaign in January 2024. We expect higher costs
associated with the new marketing campaigns and the rollout of BCM
into new markets which, along with the continued high inflationary
environment, will constrain margin improvement. We view the saving
initiatives the company is putting in place as positive with most
of the savings (with expected cumulative savings close to EUR45
million by year-end 2024) focused on administrative expenses. At
the same time, the transformative initiatives Oriflame is putting
in place should translate to EUR25 million-EUR30 million of
additional restructuring costs, the majority of which will be
cash."
Management has also decided to sell two investment properties, for
a total cash consideration close to EUR8.6 million, expected to be
received before end 2024. However, S&P continues to expect annual
negative cash flow generation in 2024, partially supported by the
improvement in working capital, and absent further shareholder
distributions.
S&P said, "The negative outlook reflects our expectation of ongoing
weak operating performance with slower-than-anticipated recovery
prospects, unsustainable capital structure, and negative cash flow
generation. Considering the recent appointment of debt advisors and
the fact that the company's debt is trading at deeply distressed
levels, we believe there is an increased likelihood of the company
considering a distressed exchange offer in the short term.
"We could lower the rating if the company pursues a distressed debt
transaction that we deem tantamount to a default or is in payment
default on one of its debt obligations.
"We could take a positive rating action if the company shows
sustainable improvements in its operating performance, including a
recovery in the topline and cash flow conversion, and we consider
the risk of a distressed debt transaction as significantly reduced
or deferred."
===============
X X X X X X X X
===============
[*] BOND PRICING: For the Week March 11 to March 15, 2024
---------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
Codere Finance 2 Lu 11.000 9/30/2026 EUR 23.000
Kvalitena AB publ 10.067 4/2/2024 SEK 33.666
Codere Finance 2 Lu 12.750 11/30/2027 EUR 2.035
R-Logitech Finance 10.250 9/26/2027 EUR 16.891
Solocal Group 10.925 3/15/2025 EUR 18.923
Caybon Holding AB 10.566 3/3/2025 SEK 46.333
Codere Finance 2 Lu 13.625 11/30/2027 USD 2.000
YA Holding AB 12.789 12/17/2024 SEK 15.000
Ilija Batljan Inves 10.797 SEK 3.854
IOG Plc 13.438 9/20/2024 EUR 10.000
Tinkoff Bank JSC Vi 11.002 USD 37.000
Oscar Properties Ho 11.317 7/5/2024 SEK 3.321
Bilt Paper BV 10.360 USD 1.415
UkrLandFarming PLC 10.875 3/26/2018 USD 4.085
Bakkegruppen AS 11.700 2/3/2025 NOK 46.337
Codere Finance 2 Lu 13.625 11/30/2027 USD 2.000
Privatbank CJSC Via 10.250 1/23/2018 USD 0.852
Plusplus Capital Fi 11.000 7/29/2026 EUR 10.541
Avangardco Investme 10.000 10/29/2018 USD 0.108
Bourbon Corp SA 11.652 EUR 1.375
Offentliga Hus I No 10.924 SEK 44.000
Immigon Portfolioab 10.258 EUR 9.751
Virgolino de Olivei 10.500 1/28/2018 USD 0.010
Saderea DAC 12.500 11/30/2026 USD 43.625
Solocal Group 10.925 3/15/2025 EUR 9.091
Virgolino de Olivei 11.750 2/9/2022 USD 0.715
Codere Finance 2 Lu 11.000 9/30/2026 EUR 23.000
Sidetur Finance BV 10.000 4/20/2016 USD 0.205
Marginalen Bank Ban 13.068 SEK 45.000
Goldman Sachs Inter 16.288 3/17/2027 USD 25.610
Virgolino de Olivei 10.500 1/28/2018 USD 0.010
Transcapitalbank JS 10.000 USD 1.342
Privatbank CJSC Via 10.875 2/28/2018 USD 8.637
Santander Consumer 10.757 EUR 92.858
Privatbank CJSC Via 11.000 2/9/2021 USD 1.000
Virgolino de Olivei 10.875 1/13/2020 USD 36.000
Tonon Luxembourg SA 12.500 5/14/2024 USD 0.010
Leonteq Securities 12.490 7/10/2024 USD 35.340
KPNQwest NV 10.000 3/15/2012 EUR 0.911
Citigroup Global Ma 25.530 2/18/2025 EUR 3.130
Phosphorus Holdco P 10.000 4/1/2019 GBP 0.373
NTRP Via Interpipe 10.250 8/2/2017 USD 0.818
Societe Generale SA 23.510 6/23/2026 USD 7.600
Bulgaria Steel Fina 12.000 5/4/2013 EUR 0.216
Bilt Paper BV 10.360 USD 1.415
Ukraine Government 11.000 3/24/2037 UAH 25.019
Codere Finance 2 Lu 12.750 11/30/2027 EUR 2.035
Societe Generale SA 15.840 8/30/2024 USD 14.300
Russian Railways JS 12.940 2/28/2040 RUB 50.000
UBS AG/London 13.750 7/1/2024 CHF 37.400
Virgolino de Olivei 10.875 1/13/2020 USD 36.000
Banco Espirito Sant 10.000 12/6/2021 EUR 0.063
Credit Suisse AG/Lo 20.000 11/29/2024 USD 16.050
Societe Generale SA 16.000 7/3/2024 USD 28.500
Ukraine Government 11.000 2/16/2037 UAH 25.187
Russian Railways JS 12.940 2/28/2040 RUB 50.100
Societe Generale SA 18.000 5/31/2024 USD 21.000
Tailwind Energy Chi 12.500 9/27/2019 USD 1.500
Evocabank CJSC 11.000 9/28/2024 AMD 0.000
Societe Generale SA 16.000 7/3/2024 USD 20.800
Lehman Brothers Tre 10.000 6/11/2038 JPY 0.100
Ukraine Government 10.570 5/10/2027 UAH 42.749
Credit Suisse AG/Lo 29.000 3/28/2024 USD 17.898
Leonteq Securities 12.000 4/23/2024 CHF 48.740
Leonteq Securities 25.000 5/2/2024 CHF 24.800
Privatbank CJSC Via 10.875 2/28/2018 USD 8.637
UBS AG/London 16.500 7/22/2024 CHF 23.220
Erste Group Bank AG 14.500 8/2/2024 EUR 48.400
Corner Banca SA 22.000 3/20/2024 CHF 20.520
ACBA Bank OJSC 11.500 3/1/2026 AMD 0.000
Basler Kantonalbank 26.000 5/8/2024 CHF 27.530
Swissquote Bank SA 25.390 5/30/2024 CHF 39.020
Bank Vontobel AG 18.000 6/28/2024 CHF 40.000
Petromena ASA 10.850 11/19/2018 USD 0.622
Societe Generale SA 15.000 9/29/2025 USD 11.300
Leonteq Securities 14.000 4/30/2024 CHF 13.170
Societe Generale SA 21.000 12/26/2025 USD 27.300
Societe Generale SA 15.110 10/31/2024 USD 28.000
Societe Generale SA 11.000 7/14/2026 USD 13.120
Raiffeisen Schweiz 20.000 7/24/2024 CHF 43.270
Ukraine Government 11.000 4/1/2037 UAH 24.978
Phosphorus Holdco P 10.000 4/1/2019 GBP 0.373
Turkiye Ihracat Kre 12.540 9/14/2028 TRY 40.841
Ukraine Government 12.500 4/27/2029 UAH 37.822
Deutsche Bank AG/Lo 12.780 3/16/2028 TRY 40.100
UkrLandFarming PLC 10.875 3/26/2018 USD 4.085
Virgolino de Olivei 11.750 2/9/2022 USD 0.715
Lehman Brothers Tre 11.750 3/1/2010 EUR 0.100
Bulgaria Steel Fina 12.000 5/4/2013 EUR 0.216
Inecobank CJSC 10.000 4/28/2025 AMD 10.200
Leonteq Securities 30.000 3/13/2024 CHF 20.990
Raiffeisen Schweiz 15.500 4/11/2024 CHF 34.290
Leonteq Securities 26.000 7/31/2024 CHF 36.590
Ukraine Government 11.000 4/24/2037 UAH 27.535
Credit Agricole Cor 10.500 2/16/2027 TRY 42.664
PA Resources AB 13.500 3/3/2016 SEK 0.124
Credit Agricole Cor 11.640 3/24/2027 TRY 44.000
Credit Agricole Cor 10.200 8/6/2026 TRY 45.713
Ukraine Government 10.360 11/10/2027 UAH 39.295
Credit Agricole Cor 10.320 7/22/2026 TRY 46.149
Leonteq Securities 24.000 8/14/2024 CHF 46.650
UBS AG/London 19.000 7/12/2024 CHF 37.150
Converse Bank 10.500 5/22/2024 AMD 10.464
Leonteq Securities 23.000 3/13/2024 USD 33.700
UBS AG/London 10.000 3/23/2026 USD 24.200
Sintekom TH OOO 13.000 1/23/2025 RUB 19.450
UniCredit Bank GmbH 10.700 2/3/2025 EUR 24.290
UniCredit Bank GmbH 10.700 2/17/2025 EUR 24.570
UBS AG/London 21.600 8/2/2027 SEK 46.950
UniCredit Bank GmbH 10.500 9/23/2024 EUR 31.490
Finca Uco Cjsc 12.500 6/21/2024 AMD 0.000
Corner Banca SA 13.000 4/3/2024 CHF 34.450
Landesbank Baden-Wu 12.500 3/22/2024 EUR 28.340
UBS AG/London 13.000 9/30/2024 CHF 18.740
Landesbank Baden-Wu 11.000 3/22/2024 EUR 31.110
EFG International F 10.300 8/23/2024 USD 37.460
Armenian Economy De 10.500 5/4/2025 AMD 0.000
Bank Vontobel AG 19.000 4/9/2024 CHF 14.800
Societe Generale SA 13.010 11/14/2024 USD 27.000
UBS AG/London 16.000 3/11/2024 CHF 9.030
UBS AG/London 12.250 3/11/2024 CHF 9.000
UBS AG/London 12.250 3/11/2024 EUR 36.150
UniCredit Bank GmbH 16.550 8/18/2025 USD 35.030
UBS AG/London 16.000 4/19/2024 CHF 31.150
UBS AG/London 17.400 4/14/2027 SEK 48.820
UBS AG/London 14.250 4/8/2024 USD 49.700
UBS AG/London 18.000 4/8/2024 CHF 41.650
BNP Paribas Issuanc 20.000 9/18/2026 EUR 33.810
BNP Paribas Issuanc 19.000 9/18/2026 EUR 0.820
Societe Generale SA 16.000 7/3/2024 USD 24.400
Raiffeisen Switzerl 15.000 3/20/2024 CHF 28.380
Raiffeisen Switzerl 20.000 3/20/2024 CHF 20.110
Raiffeisen Switzerl 19.200 3/20/2024 CHF 35.140
Vontobel Financial 17.000 3/22/2024 EUR 43.990
Vontobel Financial 13.000 3/22/2024 EUR 48.870
Vontobel Financial 14.000 3/22/2024 EUR 47.000
Vontobel Financial 20.500 3/22/2024 EUR 41.350
Vontobel Financial 15.500 3/22/2024 EUR 45.590
Vontobel Financial 22.000 3/22/2024 EUR 40.150
Vontobel Financial 18.500 3/22/2024 EUR 42.750
Zurcher Kantonalban 17.400 4/19/2024 USD 42.740
Zurcher Kantonalban 16.700 4/19/2024 CHF 46.610
Raiffeisen Switzerl 19.000 3/27/2024 CHF 35.520
UBS AG/London 22.000 3/15/2024 CHF 29.020
UBS AG/London 17.500 3/15/2024 CHF 44.650
UBS AG/London 21.250 4/2/2024 CHF 18.460
DZ Bank AG Deutsche 20.200 3/22/2024 EUR 38.780
DZ Bank AG Deutsche 23.600 3/22/2024 EUR 34.960
Leonteq Securities 15.000 4/3/2024 CHF 13.660
DZ Bank AG Deutsche 10.300 4/26/2024 EUR 44.460
UBS AG/London 18.750 4/15/2024 CHF 23.960
Zurcher Kantonalban 17.300 4/19/2024 USD 46.910
DZ Bank AG Deutsche 21.700 3/22/2024 EUR 45.710
DZ Bank AG Deutsche 23.200 6/28/2024 EUR 46.630
Leonteq Securities 15.000 4/30/2024 CHF 42.820
Zurcher Kantonalban 12.000 4/26/2024 EUR 48.380
UBS AG/London 18.750 4/26/2024 CHF 22.320
DZ Bank AG Deutsche 12.500 3/22/2024 EUR 43.520
Vontobel Financial 12.500 3/22/2024 EUR 37.200
Bank Vontobel AG 20.000 4/15/2024 CHF 30.700
Leonteq Securities 27.000 5/30/2024 CHF 16.690
Leonteq Securities 24.000 4/11/2024 CHF 32.480
DZ Bank AG Deutsche 11.000 3/20/2024 EUR 44.690
Zurcher Kantonalban 21.000 5/17/2024 CHF 41.970
Vontobel Financial 20.000 3/22/2024 EUR 44.050
Vontobel Financial 24.500 3/22/2024 EUR 41.590
Vontobel Financial 16.000 3/22/2024 EUR 47.220
Vontobel Financial 21.000 6/28/2024 EUR 46.800
Vontobel Financial 18.000 6/28/2024 EUR 48.690
BNP Paribas Emissio 15.000 3/21/2024 EUR 49.990
Leonteq Securities 28.000 4/11/2024 CHF 20.090
DZ Bank AG Deutsche 13.500 6/28/2024 EUR 52.980
UBS AG/London 26.000 3/22/2024 CHF 17.880
Ameriabank CJSC 10.000 2/20/2025 AMD 0.000
DZ Bank AG Deutsche 16.900 6/28/2024 EUR 48.300
Leonteq Securities 28.000 5/30/2024 CHF 41.190
Bank Vontobel AG 24.000 3/25/2024 CHF 20.900
Bank Vontobel AG 20.750 6/24/2024 CHF 23.600
Basler Kantonalbank 18.000 6/17/2024 CHF 38.230
Vontobel Financial 11.500 3/22/2024 EUR 46.600
Bank Vontobel AG 21.000 3/11/2024 CHF 37.600
UBS AG/London 18.750 5/31/2024 CHF 28.360
Societe Generale SA 27.300 10/20/2025 USD #N/A N/A
Raiffeisen Switzerl 20.000 3/13/2024 CHF 18.070
DZ Bank AG Deutsche 22.700 3/22/2024 EUR 44.980
UniCredit Bank GmbH 10.300 9/27/2024 EUR 31.630
UBS AG/London 14.250 8/19/2024 CHF 31.500
Societe Generale SA 18.000 8/1/2024 USD #N/A N/A
Bank Julius Baer & 18.400 3/20/2024 CHF 50.250
Fast Credit Capital 11.500 7/13/2024 AMD 0.000
Bank Vontobel AG 13.000 3/18/2024 CHF 27.000
Raiffeisen Switzerl 10.500 7/11/2024 USD 23.570
UBS AG/London 17.040 5/26/2027 SEK 50.070
UBS AG/London 10.000 5/14/2024 USD 9.975
Finca Uco Cjsc 12.000 2/10/2025 AMD 0.000
Vontobel Financial 11.000 3/22/2024 EUR 36.170
UniCredit Bank GmbH 15.900 3/22/2024 EUR 47.650
UniCredit Bank GmbH 13.800 3/22/2024 EUR 46.130
EFG International F 11.120 12/27/2024 EUR 35.970
Finca Uco Cjsc 13.000 11/16/2024 AMD 0.000
Leonteq Securities 21.000 8/14/2024 CHF 41.200
Leonteq Securities 22.000 8/7/2024 CHF 44.500
Bank Vontobel AG 20.500 11/4/2024 CHF 41.100
Leonteq Securities 22.000 8/14/2024 CHF 49.970
Bank Julius Baer & 12.720 2/17/2025 CHF 42.400
DZ Bank AG Deutsche 11.200 6/28/2024 EUR 42.950
UBS AG/London 13.500 8/15/2024 CHF 46.850
Vontobel Financial 12.500 3/22/2024 EUR 43.850
Vontobel Financial 24.000 3/22/2024 EUR 48.490
Vontobel Financial 23.000 3/22/2024 EUR 42.890
Vontobel Financial 21.500 3/22/2024 EUR 44.820
Vontobel Financial 17.500 3/22/2024 EUR 38.980
Vontobel Financial 14.500 3/22/2024 EUR 41.170
Vontobel Financial 25.000 3/22/2024 EUR 40.300
Leonteq Securities 19.000 6/3/2024 CHF 49.050
DZ Bank AG Deutsche 14.700 3/22/2024 EUR 43.740
Bank Vontobel AG 17.250 3/22/2024 CHF 31.000
UniCredit Bank GmbH 13.500 6/28/2024 EUR 48.070
Ist Saiberian Petro 14.000 12/28/2024 RUB 10.780
Leonteq Securities 28.000 6/5/2024 CHF 29.220
Leonteq Securities 24.000 6/5/2024 CHF 38.880
Raiffeisen Schweiz 19.500 6/6/2024 CHF 40.250
Bank Vontobel AG 12.000 6/10/2024 CHF 42.700
Vontobel Financial 11.000 6/28/2024 EUR 45.670
Vontobel Financial 14.000 6/28/2024 EUR 46.340
Leonteq Securities 30.000 5/8/2024 CHF 26.380
Leonteq Securities 23.000 6/26/2024 CHF 40.850
Raiffeisen Switzerl 20.000 6/26/2024 CHF 34.900
DZ Bank AG Deutsche 10.600 3/22/2024 EUR 48.540
Vontobel Financial 21.000 3/22/2024 EUR 49.030
Vontobel Financial 21.750 3/22/2024 EUR 23.070
UniCredit Bank GmbH 12.600 6/28/2024 EUR 49.500
Leonteq Securities 19.000 5/24/2024 CHF 13.120
Lehman Brothers Tre 16.000 10/28/2008 USD 0.100
Lehman Brothers Tre 13.000 12/14/2012 USD 0.100
Lehman Brothers Tre 11.250 12/31/2008 USD 0.100
Lehman Brothers Tre 11.000 7/4/2011 CHF 0.100
Lehman Brothers Tre 14.100 11/12/2008 USD 0.100
Lehman Brothers Tre 13.150 10/30/2008 USD 0.100
Lehman Brothers Tre 16.800 8/21/2009 USD 0.100
Lehman Brothers Tre 16.000 12/26/2008 USD 0.100
Lehman Brothers Tre 13.432 1/8/2009 ILS 0.100
Lehman Brothers Tre 11.000 2/16/2009 CHF 0.100
Lehman Brothers Tre 12.400 6/12/2009 USD 0.100
Lehman Brothers Tre 10.000 6/17/2009 USD 0.100
Lehman Brothers Tre 10.000 10/23/2008 USD 0.100
Lehman Brothers Tre 10.000 10/22/2008 USD 0.100
Lehman Brothers Tre 16.200 5/14/2009 USD 0.100
Lehman Brothers Tre 10.600 4/22/2014 MXN 0.100
Lehman Brothers Tre 17.000 6/2/2009 USD 0.100
Lehman Brothers Tre 10.442 11/22/2008 CHF 0.100
Lehman Brothers Tre 11.000 7/4/2011 USD 0.100
Lehman Brothers Tre 16.000 11/9/2008 USD 0.100
Lehman Brothers Tre 15.000 6/4/2009 CHF 0.100
Lehman Brothers Tre 13.500 6/2/2009 USD 0.100
Lehman Brothers Tre 10.000 5/22/2009 USD 0.100
Lehman Brothers Tre 23.300 9/16/2008 USD 0.100
Lehman Brothers Tre 12.000 7/4/2011 EUR 0.100
Credit Agricole Cor 10.200 12/13/2027 TRY 38.802
Sidetur Finance BV 10.000 4/20/2016 USD 0.205
Lehman Brothers Tre 11.000 12/20/2017 AUD 0.100
Lehman Brothers Tre 13.000 7/25/2012 EUR 0.100
Lehman Brothers Tre 18.250 10/2/2008 USD 0.100
Lehman Brothers Tre 11.000 12/20/2017 AUD 0.100
Lehman Brothers Tre 13.000 2/16/2009 CHF 0.100
Lehman Brothers Tre 14.900 9/15/2008 EUR 0.100
Lehman Brothers Tre 10.000 2/16/2009 CHF 0.100
Bank Vontobel AG 12.000 9/30/2024 EUR 22.100
BNP Paribas Emissio 22.000 3/21/2024 EUR 48.130
JP Morgan Structure 15.500 11/4/2024 USD 30.480
Corner Banca SA 23.000 8/21/2024 CHF 40.210
Raiffeisen Switzerl 12.300 8/21/2024 CHF 17.890
Bank Vontobel AG 10.000 8/19/2024 CHF 14.200
ObedinenieAgroElita 13.750 5/22/2024 RUB 21.310
Leonteq Securities 24.000 1/13/2025 CHF 39.570
Bank Vontobel AG 13.500 1/8/2025 CHF 27.500
BNP Paribas SA 10.000 7/26/2027 USD 10.350
UniCredit Bank GmbH 17.900 3/22/2024 EUR 24.530
UniCredit Bank GmbH 17.000 6/28/2024 EUR 28.860
HSBC Trinkaus & Bur 20.750 3/22/2024 EUR 27.360
Leonteq Securities 20.000 8/7/2024 CHF 20.200
Leonteq Securities 30.000 8/7/2024 CHF 34.840
Raiffeisen Schweiz 20.000 8/7/2024 CHF 37.060
DZ Bank AG Deutsche 26.000 3/22/2024 EUR 26.840
HSBC Trinkaus & Bur 23.250 3/22/2024 EUR 22.960
Citigroup Global Ma 14.650 7/22/2024 HKD 36.610
Raiffeisen Switzerl 20.000 7/10/2024 CHF 43.360
Swissquote Bank SA 26.040 7/17/2024 CHF 41.130
Finca Uco Cjsc 13.000 5/30/2025 AMD 0.000
UBS AG/London 14.250 7/12/2024 EUR 19.640
Swissquote Bank SA 26.120 7/10/2024 CHF 39.950
Swissquote Bank SA 27.700 9/4/2024 CHF 46.280
Leonteq Securities 24.000 7/10/2024 CHF 41.080
Leonteq Securities 26.000 7/10/2024 CHF 35.410
Leonteq Securities 24.000 7/10/2024 CHF 39.320
UniCredit Bank GmbH 14.300 6/28/2024 EUR 46.720
Bank Vontobel AG 10.000 9/2/2024 EUR 48.300
Bank Vontobel AG 22.000 5/31/2024 CHF 19.600
UBS AG/London 18.500 6/14/2024 CHF 31.000
Vontobel Financial 10.000 3/22/2024 EUR 37.130
UniCredit Bank GmbH 11.900 6/28/2024 EUR 49.100
Bank Vontobel AG 25.000 7/22/2024 USD 39.100
Bank Vontobel AG 12.250 6/17/2024 CHF 50.400
Bank Vontobel AG 21.750 3/18/2024 CHF 14.900
Swissquote Bank SA 16.380 7/31/2024 CHF 16.830
UniCredit Bank GmbH 13.500 3/22/2024 EUR 46.250
Swissquote Bank SA 22.120 4/11/2024 CHF 35.900
Swissquote Bank SA 21.060 4/11/2024 CHF 14.170
Leonteq Securities 23.400 6/19/2024 CHF 38.170
Bank Vontobel AG 25.500 4/3/2024 CHF 23.100
Leonteq Securities 15.000 9/12/2024 USD 24.960
Leonteq Securities 27.600 6/26/2024 CHF 30.790
Vontobel Financial 12.500 6/28/2024 EUR 45.920
Leonteq Securities 20.000 9/26/2024 USD 41.590
Corner Banca SA 18.500 9/23/2024 CHF 23.660
Raiffeisen Schweiz 20.000 4/3/2024 CHF 22.350
Bank Vontobel AG 21.000 6/10/2024 CHF 35.200
Basler Kantonalbank 16.000 6/14/2024 CHF 33.450
Leonteq Securities 20.000 6/19/2024 CHF 39.860
Bank Vontobel AG 19.000 4/3/2024 CHF 37.400
Bank Vontobel AG 22.000 7/1/2024 CHF 43.200
Bank Vontobel AG 20.000 6/26/2024 CHF 35.000
Bank Vontobel AG 13.000 6/26/2024 CHF 13.100
Bank Vontobel AG 18.500 12/16/2024 CHF 25.900
EFG International F 15.000 7/12/2024 CHF 48.020
Leonteq Securities 24.000 7/17/2024 CHF 40.450
Basler Kantonalbank 24.000 7/5/2024 CHF 38.000
Leonteq Securities 15.000 7/24/2024 CHF 16.820
Leonteq Securities 23.000 7/24/2024 CHF 38.270
Vontobel Financial 19.500 6/28/2024 EUR 43.830
HSBC Trinkaus & Bur 22.750 3/22/2024 EUR 24.540
Bank Vontobel AG 23.000 6/4/2024 CHF 37.400
UniCredit Bank GmbH 13.200 6/28/2024 EUR 47.580
Swissquote Bank SA 25.080 6/12/2024 CHF 37.290
Zurcher Kantonalban 16.500 3/27/2024 CHF 43.930
Vontobel Financial 21.500 3/22/2024 EUR 44.090
BNP Paribas Emissio 16.000 3/21/2024 EUR 44.030
Vontobel Financial 12.000 3/22/2024 EUR 44.090
National Mortgage C 12.000 3/30/2026 AMD 0.000
Leonteq Securities 21.000 5/22/2024 USD 29.860
Raiffeisen Switzerl 16.000 6/12/2024 CHF 30.130
Raiffeisen Schweiz 20.000 6/12/2024 CHF 30.450
Raiffeisen Schweiz 18.000 4/3/2024 CHF 37.850
EFG International F 24.000 6/14/2024 CHF 32.690
Vontobel Financial 14.500 6/28/2024 EUR 47.540
Vontobel Financial 11.000 6/28/2024 EUR 39.270
Basler Kantonalbank 17.000 7/19/2024 CHF 43.310
Leonteq Securities 30.000 4/24/2024 CHF 22.850
Evocabank CJSC 11.000 9/27/2025 AMD 0.000
Raiffeisen Switzerl 16.000 5/22/2024 CHF 29.110
Raiffeisen Switzerl 20.000 5/22/2024 CHF 30.820
DZ Bank AG Deutsche 22.900 3/22/2024 EUR 48.090
Vontobel Financial 16.500 6/28/2024 EUR 45.520
Leonteq Securities 22.000 4/3/2024 CHF 31.880
Corner Banca SA 24.000 4/3/2024 CHF 23.210
Vontobel Financial 17.000 3/22/2024 EUR 47.250
Zurcher Kantonalban 24.250 3/28/2024 USD 41.280
HSBC Trinkaus & Bur 20.250 6/28/2024 EUR 29.720
Leonteq Securities 20.000 4/24/2024 CHF 40.180
Leonteq Securities 20.000 8/28/2024 CHF 23.150
Leonteq Securities 21.000 6/5/2024 CHF 37.920
Swissquote Bank SA 26.980 6/5/2024 CHF 29.490
Vontobel Financial 23.500 3/22/2024 EUR 33.240
HSBC Trinkaus & Bur 10.100 3/22/2024 EUR 47.260
Vontobel Financial 12.000 3/22/2024 EUR 46.620
Vontobel Financial 21.000 3/22/2024 EUR 37.120
Vontobel Financial 22.000 3/22/2024 EUR 35.670
Vontobel Financial 25.000 3/22/2024 EUR 33.470
UniCredit Bank GmbH 16.800 3/22/2024 EUR 45.180
Vontobel Financial 10.000 3/22/2024 EUR 37.240
Vontobel Financial 18.500 3/22/2024 EUR 48.940
Vontobel Financial 13.500 3/22/2024 EUR 43.340
Vontobel Financial 23.500 3/22/2024 EUR 34.510
Vontobel Financial 18.500 3/22/2024 EUR 39.950
UniCredit Bank GmbH 15.200 3/22/2024 EUR 46.840
DZ Bank AG Deutsche 12.800 3/22/2024 EUR 40.160
DZ Bank AG Deutsche 21.100 6/28/2024 EUR 48.840
Vontobel Financial 10.500 3/22/2024 EUR 46.930
Vontobel Financial 25.000 3/22/2024 EUR 46.670
Vontobel Financial 20.000 3/22/2024 EUR 46.950
Vontobel Financial 20.000 3/22/2024 EUR 36.900
Vontobel Financial 24.500 3/22/2024 EUR 41.130
Bank Vontobel AG 10.500 7/29/2024 EUR 47.400
Leonteq Securities 21.600 6/26/2024 CHF 18.890
Raiffeisen Switzerl 20.000 5/8/2024 EUR 45.960
Raiffeisen Schweiz 18.400 5/2/2024 CHF 23.680
Bank Vontobel AG 23.500 4/29/2024 CHF 23.800
Vontobel Financial 11.500 3/22/2024 EUR 48.690
Vontobel Financial 13.500 6/28/2024 EUR 48.790
Vontobel Financial 16.000 3/22/2024 EUR 44.070
Leonteq Securities 20.000 5/2/2024 CHF 28.840
Vontobel Financial 14.000 3/22/2024 EUR 45.550
Vontobel Financial 16.250 3/22/2024 EUR 26.290
Leonteq Securities 23.000 3/27/2024 CHF 21.050
Leonteq Securities 18.000 3/27/2024 CHF 32.940
Bank Vontobel AG 18.000 7/19/2024 CHF 41.100
Raiffeisen Schweiz 16.000 4/18/2024 CHF 38.440
Vontobel Financial 24.750 6/28/2024 EUR 34.170
DZ Bank AG Deutsche 19.900 3/22/2024 EUR 46.240
Societe Generale Ef 13.750 3/22/2024 EUR 46.680
Leonteq Securities 24.000 4/3/2024 CHF 18.970
Societe Generale Ef 13.250 4/26/2024 EUR 44.880
Leonteq Securities 24.000 5/17/2024 CHF 48.150
Bank Vontobel AG 10.000 5/28/2024 CHF 11.500
Leonteq Securities 27.000 7/24/2024 CHF 20.410
Leonteq Securities 22.000 4/17/2024 CHF 32.460
Leonteq Securities 26.000 4/17/2024 CHF 23.980
Swissquote Bank SA 21.550 4/17/2024 CHF 39.430
Leonteq Securities 30.000 3/20/2024 CHF 17.370
Zurcher Kantonalban 17.000 3/13/2024 CHF 44.200
UniCredit Bank GmbH 16.400 3/22/2024 EUR 25.360
UniCredit Bank GmbH 19.600 3/22/2024 EUR 23.770
UniCredit Bank GmbH 15.800 6/28/2024 EUR 29.390
UniCredit Bank GmbH 18.200 6/28/2024 EUR 28.390
UniCredit Bank GmbH 14.900 3/22/2024 EUR 26.250
UniCredit Bank GmbH 19.500 6/28/2024 EUR 28.010
Leonteq Securities 18.000 9/11/2024 CHF 23.230
ACBA Bank OJSC 11.000 12/1/2025 AMD 9.700
Leonteq Securities 25.000 3/27/2024 CHF 21.540
Leonteq Securities 16.000 3/20/2024 CHF 34.360
Leonteq Securities 14.000 7/3/2024 CHF 16.570
Swissquote Bank SA 20.120 6/20/2024 CHF 18.710
Leonteq Securities 16.000 6/20/2024 CHF 34.910
Raiffeisen Switzerl 20.000 5/10/2024 CHF 40.100
Leonteq Securities 26.000 7/3/2024 CHF 37.400
Leonteq Securities 24.000 7/3/2024 CHF 41.010
Leonteq Securities 20.000 7/3/2024 CHF 18.690
Leonteq Securities 24.000 3/27/2024 CHF 28.610
Leonteq Securities 26.000 5/22/2024 CHF 28.270
Leonteq Securities 24.000 5/22/2024 CHF 41.740
Zurcher Kantonalban 18.000 4/17/2024 CHF 22.250
DZ Bank AG Deutsche 10.250 3/20/2024 EUR 44.630
UniCredit Bank GmbH 19.100 3/22/2024 EUR 27.400
Raiffeisen Switzerl 20.000 6/19/2024 CHF 40.720
Vontobel Financial 18.000 9/27/2024 EUR 30.870
Vontobel Financial 17.500 3/22/2024 EUR 42.720
Vontobel Financial 16.000 6/28/2024 EUR 46.710
Vontobel Financial 19.000 6/28/2024 EUR 44.990
Vontobel Financial 10.750 6/28/2024 EUR 47.340
DZ Bank AG Deutsche 11.800 9/27/2024 EUR 49.810
Leonteq Securities 27.500 5/2/2024 CHF 25.260
Vontobel Financial 21.000 3/22/2024 EUR 40.250
BNP Paribas Emissio 13.000 6/27/2024 EUR 48.730
BNP Paribas Emissio 16.000 6/27/2024 EUR 48.050
Leonteq Securities 11.000 5/13/2024 CHF 38.720
Leonteq Securities 19.000 6/10/2024 CHF 33.410
Swissquote Bank SA 14.560 3/13/2024 CHF 44.110
Bank Vontobel AG 15.000 3/11/2024 CHF 43.500
Leonteq Securities 26.000 3/13/2024 CHF 15.930
Raiffeisen Switzerl 19.000 3/13/2024 CHF 39.260
Armenian Economy De 11.000 10/3/2025 AMD 0.000
Leonteq Securities 22.000 8/28/2024 CHF 41.460
Raiffeisen Schweiz 20.000 8/28/2024 CHF 23.710
Teksid Aluminum Lux 12.375 7/15/2011 EUR 0.619
Ukraine Government 11.000 4/8/2037 UAH 24.943
Ukraine Government 11.000 4/20/2037 UAH 24.684
Ukraine Government 11.000 4/23/2037 UAH 24.876
Tonon Luxembourg SA 12.500 5/14/2024 USD 0.010
Credit Agricole Cor 11.190 3/12/2027 TRY 43.429
Deutsche Bank AG/Lo 14.900 5/30/2028 TRY 42.742
Lehman Brothers Tre 10.000 3/27/2009 USD 0.100
Lehman Brothers Tre 11.000 6/29/2009 EUR 0.100
Lehman Brothers Tre 10.500 8/9/2010 EUR 0.100
Lehman Brothers Tre 11.000 12/19/2011 USD 0.100
Lehman Brothers Tre 12.000 7/13/2037 JPY 0.100
BLT Finance BV 12.000 2/10/2015 USD 10.500
Ukraine Government 12.500 10/12/2029 UAH 36.764
Ukraine Government 11.570 3/1/2028 UAH 40.032
Ukraine Government 11.580 2/2/2028 UAH 40.315
Ukraine Government 11.110 3/29/2028 UAH 38.808
Ukraine Government 10.710 4/26/2028 UAH 37.706
Lehman Brothers Tre 15.000 3/30/2011 EUR 0.100
Lehman Brothers Tre 16.000 10/8/2008 CHF 0.100
Lehman Brothers Tre 13.500 11/28/2008 USD 0.100
Lehman Brothers Tre 14.900 11/16/2010 EUR 0.100
Lehman Brothers Tre 11.000 12/20/2017 AUD 0.100
[*] UK: England and Wales Company Insolvencies Up 17% in February
-----------------------------------------------------------------
David Milliken at Reuters reports that the number of companies
declared insolvent in England and Wales last month was 17% higher
than a year earlier, as many businesses continued to struggle
following a surge in costs last year and ongoing high interest
rates.
The Insolvency Service, a government agency, said 2,102 companies
were declared insolvent, up from 1,801 in February 2023 and more
than 50% higher than in February 2020, when the COVID-19 pandemic
began to hit Britain, Reuters relates.
Insolvencies fell during the pandemic itself, due to emergency
government loan support and restrictions on court action against
struggling companies, Reuters discloses.
"There has been something of a 'death by a thousand cuts' for many
businesses," Reuters quotes Jeremy Whiteson, a restructuring and
insolvency partner at law firm Fladgate, as saying.
Britain's economy entered a shallow recession in the second half of
2023 -- although recent data suggests it may be returning to modest
growth -- and businesses have been under pressure from rising
wages, a surge in energy costs and a 16-year high in Bank of
England rates, Reuters recounts.
Scotland and Northern Ireland -- which have different insolvency
laws to England and Wales -- also showed an upward trend in
businesses in trouble, Reuters notes.
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S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Europe is a daily newsletter co-
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