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

                          E U R O P E

          Wednesday, July 3, 2024, Vol. 25, No. 133

                           Headlines



A R M E N I A

ID BANK CJSC: Moody's Upgrades LongTerm Deposit Ratings to Ba3


E S T O N I A

SAAREMAA LAEVAKOMPANII: Cassation Appeal v. Tallina Sadam Tossed


F R A N C E

ATOS SE: Creditors Set to Take Control Following Debt Deal
EN6 SAS: S&P Affirms 'B' Issuer Credit Rating, Outlook Negative
STAN HOLDING: S&P Affirms 'B-' LongTerm ICR, Outlook Negative


G E R M A N Y

FLINT GROUP: KKR Income Marks EUR546,000 Loan at 83% Off
HSE FINANCE: S&P Lowers ICR to 'CCC+', Outlook Stable
NIDDA HEALTHCARE: S&P Assigns 'B' Rating on New Term Loan


I R E L A N D

ELIZABETH FINANCE 2018: S&P Lowers Cl. E Notes Rating to 'CC(sf)'


I T A L Y

PRO.GEST SPA: S&P Lowers ICR to 'SD' on Missed Payment


K A Z A K H S T A N

OIL INSURANCE: S&P Affirms 'B+' LT ICR & Alters Outlook to Positive


L I T H U A N I A

INTEGRE TRANS: Court Accepts Application for Restructuring


S P A I N

GRIFOLS SA: Moody's Lowers CFR to B3, Outlook Stable


S W E D E N

INTRUM AB: Moody's Cuts CFR to Caa1 & Unsecured Debt Rating to Caa2
SAS AB: European Commission Approves Restructuring Plan


U N I T E D   K I N G D O M

AMBER HOLDCO: S&P Assigns Preliminary 'BB-' LT ICR, Outlook Stable
CINEWORLD GROUP: Mulls Company Voluntary Arrangement
GERONIMO WEB: Falls Into Administration
HOTEL VAN DYK: Goes Into Administration
HPS LOAN 2024-20: S&P Assigns BB-(sf) Rating on Class E Notes

LEVERTECH ENGINEERING: Collapses Into Administration
PROJECT GRAND: Moody's Assigns First Time 'B2' Corp. Family Rating
PROJECT GRAND: S&P Assigns Preliminary 'B' LT ICR, Outlook Stable
TECALEMIT GARAGE: Goes Into Administration

                           - - - - -


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A R M E N I A
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ID BANK CJSC: Moody's Upgrades LongTerm Deposit Ratings to Ba3
--------------------------------------------------------------
Moody's Ratings has upgraded ID Bank CJSC's (IDBank) long-term
local and foreign currency bank deposit ratings to Ba3 from B1 and
maintained the stable outlook. Concurrently, Moody's upgraded the
bank's Baseline Credit Assessment (BCA) and Adjusted BCA to ba3
from b1, upgraded the bank's long-term local and foreign currency
Counterparty Risk Ratings (CRRs) to Ba2 from Ba3, and upgraded the
long-term Counterparty Risk Assessment (CR Assessment) to Ba2(cr)
from Ba3(cr). In addition, Moody's affirmed the Not Prime (NP)
short-term local and foreign currency bank deposit ratings, NP
short-term local and foreign currency CRRs and the NP(cr)
short-term CR Assessment.

RATINGS RATIONALE

The upgrade of IDBank's BCA and Adjusted BCA to ba3 from b1 is
driven by improvements  in loan book quality, corporate governance
and profitability over the last two years. The upgrade of the
bank's long-term local and foreign currency bank deposit ratings to
Ba3 from B1 follows the upgrade of the BCA.

Over the past two years IDBank has materially decreased the share
of its problem loans and improved provisioning coverage thanks to
partial repayments and write-offs of its legacy corporate
portfolio. As a result, the problem loan ratio declined to 3.0% as
of year-end 2023 from 9.5% at the end of 2021. In Moody's view the
current loan portfolio is lower risk than in the past and largely
focused on secured lending.

The bank's corporate governance has improved in recent years
following the write-off of its problem legacy loans originated in
2016-17 and a shift of its business model towards digital banking
and efficient retail lending business which are driving high
profitability of the bank. Based on these developments Moody's
removed the 1-notch negative qualitative adjustment to the bank's
BCA for the corporate governance.

In 2023, IDBank reported net income of AMD15.8 billion, which
translated into a  return on tangible assets of 4.3% broadly in
line with 4.4% posted in 2022 when the net financial result was
largely associated with a 44% increase in net interest income amid
rapid loan book expansion and widening of net interest margin (NIM)
to 5.9% in 2023 from 5.1% in 2022. In 2023 non-interest revenues
declined by 23% due to lower foreign-currency trading gains albeit
remained strong amid growing net fee and commission income stemming
from transaction business. Moody's expect normalisation of foreign
currency trading gains and modest provisioning charges given the
now healthy loan book following problem loan write-offs in previous
years. The bank's return on assets will however decline somewhat in
the next 12-18 months given the ongoing decline in interest rates
and expected adverse impact on NIM. The extent of this should not
however be such as to put pressure on the ratings.

Capital adequacy remains one of IDBank's key credit strengths,
providing a buffer against asset-quality weakness. As of year-end
2023 IDBank reported Tangible Common Equity (TCE)/Risk-Weighted
Assets (RWA) ratio at 21.4% down from 27.3% at the end of 2021 due
to rapid loan book growth and material dividend payments in 2023.
Moody's expect moderation of loan book and RWA growth in the next
12-18 months.

The bank has remained reliant on customer deposits, while the share
of market funding accounted for moderate 22% of tangible assets as
of year-end 2023. IDBank maintains a healthy liquidity cushion with
liquid assets at 34% of total assets as of year-end 2023.

IDBank's Ba3 long-term foreign- and local-currency deposit ratings
are based solely on the bank's ba3 BCA, and do not incorporate any
affiliate or government support being a privately owned bank with
an asset market share of about 4%.

The outlook on IDbank's long-term deposit ratings is stable,
reflecting Moody's view that the bank will maintain its sound
fundamentals over the next 12-18 months, and is in line with the
stable outlook on Armenia's long-term issuer ratings.

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

The long-term deposit ratings and BCA of IDBank are at the same
level as Armenia's Ba3 issuer rating. Therefore, a rating and BCA
upgrade would require both strengthening of the bank's standalone
fundamentals and improvement in the sovereign's creditworthiness.

A downgrade of Armenia's issuer rating could exert downward
pressure on the deposit ratings of IDBank. Its BCA and deposit
ratings could be downgraded or the outlook on the long-term deposit
ratings could be changed to negative if its solvency or liquidity
were to deteriorate materially or in case of remarkable
deterioration of operating environment.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks
Methodology published in March 2024.



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E S T O N I A
=============

SAAREMAA LAEVAKOMPANII: Cassation Appeal v. Tallina Sadam Tossed
----------------------------------------------------------------
The Civil Law Chamber of the Supreme Court of Estonia decided not
to proceed with the cassation appeal of the bankruptcy trustee of
AS Saaremaa Laevakompanii and Vainamere Liinid OU against the
subsidiaries of listed port company Tallinna Sadam.

Thus, the decision of the Harju County Court of March 31, 2023 to
dismiss the statement of claim submitted by Saaremaa Laevakompanii
and Vainamere Liinid on March 28, 2019 against TS Laevad OU and OU
TS Shipping, subsidiaries of Tallinna Sadam, took effect, Tallinna
Sadam told the stock exchange.

In the statement of claim, Saaremaa Laevakompanii and Vainamere
Liinid demanded a total of EUR23.8 million for damages caused by
the alleged use of business secrets while participating in the
public procurement of passenger transport services on Saaremaa and
Hiiumaa lines, including Saaremaa Laevakompanii in the amount of
EUR15.8 million and Vainamere Liinid in the amount of EUR8
million.

The management board of Tallinna Sadam, together with a legal
adviser, has assessed the dispute in this case as having no
perspective, and therefore the group has not formed a reserve to
cover a possible claim. Therefore, the rejection of the lawsuit and
the end of the case have no impact on the group's financial
results.




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F R A N C E
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ATOS SE: Creditors Set to Take Control Following Debt Deal
----------------------------------------------------------
Irene García Perez at Bloomberg News reports that Atos SE's
creditors reached an agreement with the company that will see them
take control of the embattled French IT services company instead of
an outside investor.

According to Bloomberg, bondholders and lenders have agreed to
convert EUR2.9 billion (US$3.1 billion) of loans and bonds into
equity, provide as much as EUR1.68 billion of new debt and to
inject EUR233 million in new equity, either themselves or alongside
a private industrial investor, according to a statement on June 30.


Atos asked creditors to leave the door open to an anchor investor
for the equity injection, according to people with knowledge of the
matter, who asked not to be identified because the talks are
private, Bloomberg notes.

By doing the deal on their own, the debt holders participating in
the new debt stand to benefit more from the economics of the deal,
Bloomberg states.  While existing shareholders' equity will be
worth close to zero as a result of the restructuring, it does
remove uncertainty over the company's fate after David Layani's
Onepoint, Atos's biggest investor, walked away from an agreement,
Bloomberg discloses.

Creditors signing the lock-up agreement by July 12 will receive a
50 basis-point fee, Bloomberg says.

"With this agreement, the Atos group should put an end to the
suspense, with the exception of the identity of a possible
reference investor," wrote Alexandre Plaud, an analyst at CIC
Market Solutions, in a note to investors after the news.  While the
dilution will be "massive," the company should be able to return to
a level of debt that will help it reach its target credit profile,
and "it will then be able to start rebuilding," he said.

Once one of France's premier tech companies, Atos had set its
sights on taking market share from Accenture Plc and Capgemini SE,
before accounting scandals and huge debts left it on the verge of
insolvency, Bloomberg relays.  Even though the firm has lost about
90% of its value in the last year, it remains a key IT services
provider in its home country, with strategic contracts linking it
to the defense and nuclear industry, as well as the UEFA Euro
tournament and the Olympic Games, Bloomberg notes.

When it has enough support from creditors, Atos will ask a
commercial court to open an accelerated safeguard to approve the
restructuring, Bloomberg discloses.  This court process allows the
company to overrule dissenting stakeholders as long as it meets
certain conditions, Bloomberg states.

The creditor group also said they would reexamine a deal to sell
part of the company's big data and security unit to the French
state, Bloomberg notes.  The process will determine whether "the
purchase price is reflecting a fair market value and is consistent
with the corporate interest of the company." If not, the company
will terminate the sale, it said.

The French government offered EUR700 million, including debt, for
the strategic parts of the unit, known as BDS, earlier in June in a
non-binding bid, Bloomberg recounts.  Those include Atos's
supercomputers, "mission-critical" systems and cybersecurity
activities.  In April, the government had said the assets could be
worth as much as EUR1 billion, Bloomberg notes.

Atos started negotiations with its creditors under the supervision
of a court-appointed mediator in early February to restructure its
EUR4.85 billion debt pile, Bloomberg relays. The company needed not
only to reduce its debt burden but also an equity injection, and
two bidders with different views on how to rescue Atos emerged
early on: Onepoint -- a smaller French IT firm that is the largest
shareholder of Atos -- and Daniel Kretinsky's EPEI, Bloomberg
discloses.

According to Bloomberg, Mr. Layani's "One Atos" proposal was
pitched as a way to help the company avoid a breakup and remain
under French ownership, and it also promised a smaller haircut for
debtholders.  Mr. Kretinsky's bid, on the other hand, had targeted
a more radical debt reduction and suggested selling off the
company's digital business, Bloomberg notes.

While Mr. Layani's proposal beat out Mr. Kretinsky's bid, the
French entrepreneur backed away last week following further due
diligence. That left creditors having to decide whether to reopen
talks with Mr. Kretinsky -- who had offered to step in again -- or
do a deal on their own.

Atos SE is a global leader in digital transformation with 95,000
employees and annual revenue of c. EUR11 billion.  European number
one in cybersecurity, cloud and high-performance computing, the
Group provides tailored end-to-end solutions for all industries in
69 countries.  A pioneer in decarbonization services and products,
Atos is committed to a secure and decarbonized digital for its
clients Atos is a SE (Societas Europaea), listed on Euronext
Paris.


EN6 SAS: S&P Affirms 'B' Issuer Credit Rating, Outlook Negative
---------------------------------------------------------------
S&P Global Ratings affirmed its 'B' issuer credit rating on EN6 SAS
(Armor-IIMAK) and maintained the negative outlook. S&P also
affirmed its 'B' issue rating on the company's EUR450
million-equivalent senior secured term loan.

The negative outlook reflects S&P's expectation that FOCF will
recover in 2024 and 2025, but that it might still remain below
levels commensurate with the rating. S&P expects positive FOCF of
EUR5 million-EUR10 million in 2024 and 2025.

S&P said, "We forecast that Armor-IIMAK's EBITDA will improve in
2024 and 2025.In 2023, Armor-IIMAK's adjusted EBITDA declined by
almost 7% and remained below our expectations as demand plummeted
due to customers destocking. Price increases and cost-saving
initiatives partly compensated for this. Our base case assumes that
the destocking ended in 2023 and that demand will gradually recover
in 2024. We therefore forecast that EBITDA will grow by roughly 15%
in 2024, supported by improving fixed-cost absorption on the back
of higher volumes. We also expect that Armor-IIMAK will reap the
benefits of the cost-saving programs that it implemented throughout
2023, such as site combinations and product relocations, as well as
synergies from the integration of IIMAK. In 2025, we assume a
further EBITDA recovery as volumes continue to grow.

"We expect Armor-IIMAK's FOCF generation to turn positive in 2024,
but remain low compared to its debt level.We forecast FOCF of EUR8
million in 2024, in line with our previous forecast, up from
negative EUR10 million in 2023. This is thanks to EBITDA growth and
lower capex of about EUR23 million (EUR27 million in 2023). We also
expect FOCF to benefit from a EUR6 million reduction in cash taxes
in 2024. In 2025, we estimate that FOCF will remain positive, but
will drop toward EUR5 million due to higher working capital needs.
We assume a EUR2 million working capital outflow in 2025 compared
to a EUR5 million working capital inflow in 2024. We view this
level of FOCF as limited compared to adjusted debt of EUR547
million and our current 'B' rating, and reflect this in our
negative outlook."

EBITDA interest coverage will improve to 1.8x in 2024 from 1.6x in
2023, but remain below 2.0x. Almost all of Armor-IIMAK's debt has
variable interest rates, but the company has hedged about
two-thirds of its interest rate exposure for 2024. That said,
Armor-IIMAK's interest burden remains substantial compared to its
adjusted EBITDA generation. S&P estimates cash interest (including
lease interest) of about EUR45 million in 2024 (EUR40 million in
2023) and believe that this could undermine Armor-IIMAK's FOCF
generation.

S&P said, "We now forecast slower deleveraging than we
anticipated.We only anticipate a gradual recovery in the markets in
2024. Hence, we now expect Armor-IIMAK's adjusted debt to EBITDA to
decline to 6.5x-7.0x by year-end 2024 from 7.9x in 2023 and toward
6.4x in 2025. We previously expected 6.5x in 2024 and approximately
6.0x in 2025.

"The negative outlook reflects our expectation that FOCF will
recover in 2024 and 2025, but might remain below levels
commensurate with the rating. We expect positive FOCF of EUR5
million-EUR10 million in 2024 and 2025."

S&P could lower the rating if:

-- FOCF remained minimal;

-- EBITDA interest coverage did not improve toward 2x on a
sustained basis;

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

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

S&P could revise the outlook to stable if:

-- Armor-IIMAK generated material FOCF on a sustained basis; and

-- EBITDA interest coverage improved toward 2x on a sustainable
basis.

S&P said, "Governance factors are a moderately negative
consideration in our credit rating analysis of Armor-IIMAK. Our
assessment of the company's financial risk profile as highly
leveraged reflects corporate decision-making that prioritizes the
interests of the controlling owners, in line with our view of the
majority of rated entities owned by private-equity sponsors. Our
assessment also reflects the sponsors' generally finite holding
periods and focus on maximizing shareholder returns."


STAN HOLDING: S&P Affirms 'B-' LongTerm ICR, Outlook Negative
-------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' long-term issuer credit rating
on Stan Holding SAS (Voodoo).

The negative outlook reflects that S&P could lower its ratings if
Voodoo is unable to refinance its term loan before it becomes
current, leading to liquidity deterioration.

The negative outlook indicates the refinancing risk that Voodoo is
facing with its term loan due in 2025. The company's EUR220 million
term loan will mature in November 2025. S&P said, "In our base case
we assume that Voodoo will address this over the coming months and
will conclude the refinancing process in a timely fashion, before
the term loan becomes current. We expect Voodoo will continue to
perform well in 2024, after strong operating performance and
deleveraging in 2023. The company also currently has adequate
liquidity with a cash position of EUR90 million (after the
acquisition of social network app BeReal). If the company doesn't
conclude the refinancing by the end of 2024, the term loan will
become current, exposing the company to increasing refinancing
risks, and its liquidity position could rapidly deteriorate, which
could lead us to lower the rating."

S&P said, "We expect Voodoo's operating performance will remain
sound and credit metrics will improve in 2024-2025. We anticipate
that the company will grow its revenues by 6%-8% in 2024-2025,
driven by good performance of its existing hybrid-casual and casual
mobile games portfolio and new game launches, and further scale-up
of the company's social apps portfolio. This growth will be partly
offset by declining revenue from hyper-casual games, as Voodoo will
continue focusing on monetization of mobile games with longer and
more recurring earnings profile and apps. Voodoo has successfully
reduced its dependence on more volatile and short-lived
hyper-casual mobile games and hence the share of advertising
revenue streams in 2023 to 50%, from above 70% in 2022. In
addition, it has materially grown its hybrid-casual, casual mobile
games, and apps portfolio in 2023, and therefore has increased to
almost 50% the share of in-app-purchases (IAP) revenue that we view
as less volatile and more predictable, from less than 30% in 2022.
This in our view has improved the company's quality of earnings and
resulted in higher EBITDA margin of almost 12% in 2023, from 3% in
2022. We expect the company's EBITDA in 2024 will remain flat
compared with 2023, due to higher restructuring and acquisition
related costs, but above historical levels, and will increase in
2025. We also expect that the company's EBITDA margins will improve
to 10.5%-13.0% in 2024-2025. As a result, we forecast that S&P
Global Ratings-adjusted gross leverage will remain broadly
unchanged at around 5.0x in 2024, in line with in 2023, and below
historical levels, thanks to anticipated strong performance and
incorporating the recently concluded acquisition of the social
network app BeReal (paid by a combination of cash on balance and
Vodooo's shares, with a majority of the acquisition price to be
paid through an earn-out mechanism)."

The acquisition of social network app BeReal could contribute to
earnings growth in the longer term but it comes with execution
risks. Voodoo announced the acquisition of BeReal on June 11, 2024.
BeReal is a photo sharing app that focuses on a Gen Z user base,
amounting to about 40 million globally. S&P said, "We understand
Voodoo plans to monetize the app through in-app advertising,
supported by the large user base and solid user retention
statistics. However, in our view there are execution risks around
this strategy given that the app does not generate revenues and the
ramp-up of its monetization could take some time and face setbacks
if the user base declines. Furthermore, in the longer run BeReal's
growing revenue contribution could increase Voodoo's exposure to
advertising revenue streams that we view as more volatile and less
predictable compared with more stable IAP revenue streams."

Voodoo's cash flow generation will be breakeven in 2024 and be
restored in 2025. S&P said, "We expect that Voodoo's FOCF in 2024
will be broadly neutral because its generated cash flows will be
absorbed by higher tax payments and working capital investments,
driven by an increase in deferred payments related to past
acquisitions and due to business expansion. However, from 2025 we
forecast positive FOCF of EUR30 million thanks to an improved
profitability margin and somewhat lower annual working capital
changes. This will translate into FOCF to debt improving toward 11%
in 2025, from 0.4% expected in 2024, and versus 8% in 2023. Our
updated FOCF forecast is above our March 2023 base case."

S&P said, "The negative outlook reflects that we could lower our
ratings on Voodoo if it is unable to address the maturity of its
term loan in a timely manner, and the company faces increasing
refinancing risks. Still, we expect Voodoo to grow its revenues by
6%-8%, generate neutral FOCF in 2024, and up to EUR30 million in
2025, with S&P Global Ratings-adjusted leverage at about 5.0x or
below.

"We could lower our rating on Voodoo if the company does not
conclude a refinancing by the end of 2024. This could lead the
company's liquidity position to rapidly deteriorate, making its
capital structure unsustainable and increasing likelihood of a
default.

"We could revise the outlook to stable if the company refinances
its capital structure by the end of the year and continues to
perform in line with our expectations, maintaining adequate
liquidity."




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G E R M A N Y
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FLINT GROUP: KKR Income Marks EUR546,000 Loan at 83% Off
--------------------------------------------------------
KKR Income Opportunities Fund has marked its EUR546,000 loan
extended to Flint Group GmbH to market at EUR92,000 or 17% of the
outstanding amount, according to a disclosure contained in KKR
Income's Amended Form N-CSR for the six-month period ended April
30, 2024, filed with the Securities and Exchange Commission.

KKR Income is a participant in a First Lien Term Loan B September
2023 Payment In Kind (HoldCo) (6.90% Payment in Kind, EURIBOR +
10%) to Flint Group GmbH. The loan matures on December 30, 2027.

KKR Income was organized on March 17, 2011 as a statutory trust
under the laws of the State of Delaware. The Fund is a closed-end
registered management investment company, which commenced
operations on July 25, 2013. The Fund seeks to generate a high
level of current income, with a secondary objective of capital
appreciation. The Fund is diversified for purposes of the
Investment Company Act of 1940, as amended. KKR Credit Advisors
(US) LLC serves as the Fund’s investment adviser.

The fiscal year ends October 31.

KKR Income is led by Rudy Pimentel, President; and Thomas Murphy,
Treasurer, Chief Accounting Officer & Chief Financial Officer. The
Fund can be reach through:

     Rudy Pimentel
     KKR Income Opportunities Fund
     555 California Street, 50th Floor
     San Francisco, CA 94104
     Tel. No.: (415) 315-3620

     Lori Hoffman
     KKR Credit Advisors (US) LLC
     555 California Street, 50th Floor
     San Francisco, CA 94104
     Tel. No.: (415) 315-3620

Flint Group GmbH manufactures products for printing and packaging.
The Company offers flexography, washout solvents, commercial
coatings, heatset inks, offset blankets, pigments, letterpress, and
digital printing products. The Company's country of domicile is
Germany.

HSE FINANCE: S&P Lowers ICR to 'CCC+', Outlook Stable
-----------------------------------------------------
S&P Global Ratings lowered to 'CCC+' from 'B-' its ratings on
German TV home shopping broadcaster HSE Finance and its senior
secured notes. At the same time, S&P lowered the recovery rating on
the senior secured notes to '4' from '3'.

The stable outlook is underpinned by HSE's available liquidity and
the absence of near-term debt maturities, enabling the company to
accommodate an expected gradual recovery of demand despite current
uncertainty in the trading environment.

S&P said, "The downgrade primarily reflects our expectation of
higher-than-anticipated S&P Global Ratings-adjusted leverage and
minimal free operating cash flow (FOCF). HSE's EBITDA growth is
constrained by weak consumer sentiment in Germany. Also, following
the anticipated exit from Russia, which accounted for 10%-15% of
company-adjusted EBITDA prior to the Russia-Ukraine war, the
company has a structurally lower EBITDA-base. Ultimately, this
translates into a higher S&P Global Ratings-adjusted leverage of
about 9.5x in 2024 and 9.0x in 2025 in our forecast. Furthermore,
the company faces structural challenges as newer generations switch
from TV to smartphones, giving way to a 9% decline of active
customers since 2019. Nevertheless, viewership has been stable
according to HSE. Overall, we view the decline in active customers
as an indication for a secular decline of the classic
teleshopping.

"We think persistent weak earnings growth prospects and high
interest rates will make it increasingly difficult to generate
positive FOCF after leases.As a result, we view the capital
structure as unsustainable over the long term. Our view is that the
company's volumes and profitability will only gradually recover
from 2025 onwards, when we expect private consumption to rebound at
1.4% (versus our estimate of 0.7% in 2024)--slower than we had
previously assumed. During first-quarter 2024, although HSE
reported a 4.7% revenue decline, company-adjusted EBITDA remained
in line with the level for the same period a year prior. We also
think the company will somewhat strengthen profitability by
adjusting the product mix toward margin-enhancing categories.
Nevertheless, potential for further price increases is constrained
by overall inflation normalization, which limits topline growth.

"Despite these challenges, HSE's available liquidity and the
absence of near-term debt maturities should provide sufficient
cushion. The weak growth prospects constrain leverage reduction to
a more sustainable level, thereby hindering HSE's ability to
refinance. We expect liquidity sources will comfortably exceed
liquidity uses by about 1.9x, with EUR55 million of cash on balance
sheet at the end of first-quarter 2024 and approximately EUR14
million available under the fully undrawn EUR35 million revolving
credit facility (RCF). We assume that only 40% will be available
under the RCF as the springing covenant of 6.15x is currently not
met, with company reported net leverage of 6.2x end of
first-quarter 2024. Another mitigating factor is the absence of
near-term debt maturities, with the RCF coming due in May 2026 and
the senior unsecured notes in October 2026.

"For 2023, our debt adjustments to company-reported financial debt
(EUR675.4 million), were lease liabilities (EUR48.1 million) and
receivables sold (EUR16 million).

"The stable outlook is underpinned by the company's available
liquidity and the absence of near-term debt maturities. In our view
HSE's leverage will remain high at about 9.5x in 2024 and 9.0x in
2025, supported by a modest recovery in EBITDA margin to 11.6% in
2024 and 11.9% in 2025. At the same time, FOCF after leases, even
after deconsolidating Russia, will stay slightly positive over
2024-2026.

"We could lower the rating if we saw an increased risk of a default
over the next 12 months. This could happen if HSE underperformed
our base case, such that FOCF after leases turned negative and its
credit metrics weakened further, or the company announced an
intention to restructure its capital structure.

"We would likely view any exchange offer or debt buyback by the
company or its owners as a distressed exchange if executed well
below the nominal value of the notes, given the elevated
leverage."

S&P could take a positive rating action if HSE's operating
performance improved substantially and sustainably, including:

-- Materially growing Revenues, EBITDA, and EBITDA margins leading
to a markedly lower S&P Global Ratings-adjusted leverage over the
coming year;

-- Sustained positive FOCF supporting the entire current capital
structure; and

-- Adequate liquidity, including sufficient headroom under the
RCF's springing covenant.

Ratings upside would likely hinge on an uptick in active customers
growth and supportive spending patterns across channels, alongside
positive trend in full price sales.


NIDDA HEALTHCARE: S&P Assigns 'B' Rating on New Term Loan
---------------------------------------------------------
S&P Global Ratings assigned its 'B' long-term issue rating to
German pharmaceutical company Nidda Healthcare Holding GmbH's
proposed term loan.

The term loan will be issued by Nidda Healthcare Holding GmbH, the
main operating entity of Germany-based Stada group (holding
company: Nidda Bondco, rated B/Stable/--). The loan will likely
amount to at least EUR350 million maturing in February 2030 and
rank pari passu with, and benefit from, the same security package
as the existing outstanding senior secured debt. The group is
seeking to address upcoming maturities including part of the
outstanding senior notes due in 2025 for about EUR250 million and a
revolving credit facility drawing of EUR120 million, as well as
covering related transaction fees. Additionally, the company aims
to amend and extend its existing euro-denominated term loan F for
close to EUR700 million. With the latter, the company anticipates
refinancing, amending, and extending more than EUR1 billion of debt
maturing in the next two years.

S&P said, "The proposed term loan transaction is leverage neutral
and will further improve the group's debt maturity profile. We view
Stada's liquidity as adequate for the next 12 months. We think the
group can handle its working capital requirements, capital
expenditure, and interest payments over the next year. We
anticipate it will maintain sufficient room to meet its covenant
test requirements.

"Our 2024 base case for Stada includes expected sales of EUR4
billion and S&P Global Ratings-adjusted EBITDA of about EUR900
million with EBITDA interest coverage of 2.0x. We believe the
company's performance will remain resilient, with adjusted (gross)
debt to EBITDA of about 6.6x."




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

ELIZABETH FINANCE 2018: S&P Lowers Cl. E Notes Rating to 'CC(sf)'
-----------------------------------------------------------------
S&P Global Ratings lowered its credit ratings on Elizabeth Finance
2018 DAC's class A notes to 'CC (sf)' from 'BBB- (sf)', class B
notes to 'CC (sf)' from 'B- (sf)', class C notes to 'CC (sf)' from
'CCC+ (sf)', class D notes to 'CC (sf)' from 'CCC (sf)', and class
from 'CCC- (sf)'.

The downgrades follow the publication of the special notice,
confirming that the amount of principal proceeds to be received
from the expected sale of the property portfolio will be
insufficient to pay the principal outstanding on all classes of
notes.

Transaction overview

Elizabeth Finance is a true sale securitization of two loans that
closed in August 2018. In October 2020, the smaller MCR loan, with
a balance of GBP20.5 million, prepaid. The remaining loan, the
Maroon loan, has a current balance of GBP63.05 million as at the
April 2024 interest payment date (IPD). The Maroon loan is secured
by three regional town shopping centers in the U.K. Two of the
properties are in England (The Rushes shopping center in
Loughborough, and the Vancouver shopping center in Kings Lynn), and
one is in Scotland (Kingsgate, Dunfermline).

The special servicer accelerated the Maroon loan in October 2020,
and receivers and administrators were appointed. A cash trap event
is continuing, as the loan-to-value (LTV) ratio and debt service
coverage ratio (DSCR) covenant thresholds are breached. While the
borrower, which is sponsored by Oaktree Capital Management, has
continued to pay interest, it has not paid the default interest
that is still accruing. The loan is currently unhedged.

The three properties securing the loan were marketed and the
special servicer has confirmed that bids were received for the
whole portfolio and for the properties individually. The special
servicer has accepted a bid of GBP35 million for the whole
portfolio, which was the highest of the whole portfolio bids
received. The accepted price is almost 50% lower than the latest
(2020) valuation and more than 65% lower than the original (2018)
valuation.

The portfolio is being purchased with cash by a bidder who will
remain anonymous until the exchange of contracts. The special
servicer has confirmed that the exchange is expected on the July
15, 2024, IPD when 10% of the purchase price will be paid.

The completion of the sale of the properties is expected within one
month of exchange. The net sale proceeds will be distributed
sequentially with only the class A notes receiving a partial
repayment of the outstanding notes. The other classes of notes are
not expected to be repaid at the October 2024 IPD.

The net sale proceeds after the repayment of fees will be about
GBP31.5 million. Fees include the contractual sale fees, special
servicing fees, servicing fees, and administration fees, but also
an outstanding VAT bill that was not previously reported. The net
sale proceeds will be insufficient to fully repay the class A notes
and we anticipate that there will be a principal loss on this class
of notes of approximately GBP2 million.

Rating actions

S&P's ratings in this transaction address the timely payment of
interest, payable quarterly, and the payment of principal no later
than the legal final maturity date in July 2028.

The notes are expected to suffer a principal loss at the October
2024 IPD, when the net sale proceeds are due to be applied to the
outstanding notes.

S&P said, "As a bid has been accepted by the special servicer for
an amount that will not repay the outstanding notes (once fees have
been repaid), we believe the likelihood of default to be virtually
certain. We have therefore lowered to 'CC (sf)' our ratings on all
classes of notes in this transaction, in line with our criteria for
assigning 'CCC' category ratings."




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

PRO.GEST SPA: S&P Lowers ICR to 'SD' on Missed Payment
------------------------------------------------------
S&P Global Ratings lowered its long-term issuer credit rating on
Pro.Gest SpA to 'SD' (selective default) from 'CCC' and its issue
rating on the EUR250 million senior unsecured notes to 'D' from
'CCC-'.

The downgrade to 'SD' follows Pro.Gest's announced decision to not
pay the accrued interest due on June 15, 2024, under its EUR250
million senior unsecured notes due December 2024. S&P does not
expect the company to make this payment by the end of the 30-day
grace period on July 15, 2024.

S&P said, "Based on our criteria, payments under debt obligations
must be made before, or within, the stated grace period, or 30
calendar days from the last payment date. We view the missed
interest payment as a default, since creditors will not receive the
value they were initially promised."




===================
K A Z A K H S T A N
===================

OIL INSURANCE: S&P Affirms 'B+' LT ICR & Alters Outlook to Positive
-------------------------------------------------------------------
S&P Global Ratings revised to positive from stable its outlook on
Kazakhstan-based insurer Oil Insurance Co. JSC (NSK). S&P affirmed
its 'B+' long-term issuer credit and insurer financial strength
ratings. At the same time, S&P upgraded its Kazakhstan national
scale rating on NSK to 'kzBBB+' from 'kzBBB'.

S&P said, "The implementation of our revised criteria for analyzing
insurers' risk-based capital has had no material effect on our view
of NSK's capital and earnings assessment; we give full credit for
the contractual service margin (CSM) and risk adjustment (RA),
which we consider to be equity-like reserves that mostly offset the
depletion of equity following implementation of International
Financial Reporting Standards (IFRS) 17.

"We also capture the benefits of risk diversification more
explicitly in our analysis, which supports capital adequacy.
Recalibrating our capital charges to higher confidence levels,
especially our interest rate risk charges and catastrophe risk
charges, somewhat offset the above improvements.

"The positive outlook indicates that we could raise the ratings
over the next 12 months if NSK maintains its positive operating
performance and asset quality. An upgrade would also depend on the
company maintaining its level of capital adequacy, with sufficient
buffers above the 99.5% level."

S&P could lower the ratings over the next 12 months if NSK's:

-- Competitive position weakened, for example, if its operating
performance deteriorates significantly, or if premium volumes
materially declined, signifying loss of market share; or

-- Capital deteriorated for a prolonged period below what we view
as a satisfactory level, due to weaker-than-expected operating
performance, investment losses, or higher-than-expected dividend
payouts.

S&P could raise the ratings in the next 12 months if NSK maintains
profitable underwriting results, asset quality within the 'BBB'
range, and capital adequacy based on its capital model sustainably
above satisfactory levels, which could make the company more
comparable with higher-rated peers.

S&P said, "NSK is expected to maintain its capital adequacy at the
current level but we assess capital and earnings as satisfactory
because in absolute terms the size of its capital is relatively
small, at below $25 million. NSK's capital adequacy exceeded the
99.8% confidence level in 2023, according to our capital model, and
we forecast that it will remain at this level over the next three
years. This reflects our expectation that insurance revenue will
grow by 10% over 2024-2026, as new products are implemented,
supported by profitable operating performance and retention of up
to 50%-70% of net profit. Implementing the IFRS 17 accounting
standard in 2023 caused a decline in NSK's total reported equity.
We understand that NSK used a relatively conservative approach and
applied the general measurement model (GMM) to perform the initial
estimate and recognize most of its insurance contract liabilities
under IFRS 17, even for contracts that last just over a year or
less. As a result, its retained earnings were partly depleted by
the CSM, which effectively represents future profits. NSK disclosed
a CSM of Kazakhstani tenge (KZT) 2.8 billion at the end of 2023 (or
about KZT1.9 billion, net of the CSM on reinsurance contract
assets). This represented about 50% of total reported equity. We
consider the CSM and RA to be equity-like reserves and add them
back to the company's total adjusted capital (TAC). As a result,
implementing IFRS 17 did not materially deplete the company's TAC
in our capital model. That said, in absolute terms NSK's TAC is
still modest at below $25 million, and this makes its
capitalization more susceptible to single-event losses, in our
view. In addition, the insurer has a limited record of capital
planning and CSM treatment under IFRS 17. As a result, we cap our
view of NSK's overall capital and earnings at satisfactory.

"We view as positive that the company's solvency margin has become
less volatile and its investment policy has remained prudent. We
expect this to continue. Since NSK completed its solvency margin
recovery plan in October 2023, its solvency has remained at or
above 1.5x, which is sufficiently above the minimum regulatory
requirement of 1.0x. We expect the company to sustain its
regulatory solvency margin at or above the 1.54x seen on June 1,
2024, going forward, suggesting that regulatory risks have
diminished. About 70% of NSK's invested assets as of May 1, 2024,
were bonds, cash, and deposits related to domestic and
international entities that have an average credit quality of
'BBB-' and above. Both factors make NSK more comparable with
higher-rated local and international peers, in our view.

"NSK's business risk profile still reflects its relatively small
size, historically volatile operating performance, and the
challenging operating environment in the property/casualty
insurance segment in Kazakhstan. We expect NSK to maintain its
market share at about 3% in 2024-2025 (3% as of April 1, 2024). The
company is still focused on the motor segment, which accounted for
55% of its gross premium written in the first four months of 2024.
Motor cover was almost equally split between motor hull insurance
and compulsory motor third-party liability insurance."




=================
L I T H U A N I A
=================

INTEGRE TRANS: Court Accepts Application for Restructuring
----------------------------------------------------------
An application for the opening of restructuring proceedings against
Integre Trans UAB, legal entity code 301888546 (the  Company) was
filed with the court on June 13, 2024 (the Application). On June
19, 2024, the court accepted the Application by a non-appealable
ruling (the Ruling).

By its Ruling, the court decided that the Application contained all
the necessary information regarding the Company's compliance with
the conditions for opening a restructuring case listed in the Law
on Insolvency of Legal Persons of the Republic of Lithuania (the
Law on Insolvency): 1) the legal entity is in financial
difficulties; 2) the legal entity is viable; 3) the legal entity is
not in the process of being dissolved due to bankruptcy.

From the date of the Ruling, all recoveries from the Company's
assets pursuant to writs of execution or orders for seizure,
withdrawal of funds or suspension of payments from the Company's
account shall be suspended.

The Application will be examined by the court in accordance with
the provisions of the Law on Insolvency and the Civil Procedure
Code of the Republic of Lithuania. The Company will continue to
keep the public informed of key developments in the Company's
restructuring process.




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

GRIFOLS SA: Moody's Lowers CFR to B3, Outlook Stable
----------------------------------------------------
Moody's Ratings has downgraded the corporate family rating of
Grifols S.A. (Grifols or the company) to B3 from B2 and its
probability of default rating to B3-PD from B2-PD. At the same
time, Moody's have downgraded the backed senior unsecured ratings
of Grifols Escrow Issuer, S.A.U. to Caa2 from Caa1 and the backed
senior secured ratings of Grifols, Grifols World Wide Operations
Ltd. and Grifols World Wide Operations USA, Inc. to B2 from Ba3.
The outlook on all entities is stable. This concludes the review
for downgrade initiated on March 5, 2024.

RATINGS RATIONALE

The downgrade to B3 reflects Grifols' still-elevated leverage, even
considering expected debt reduction from its recent asset sale, and
a slower than expected free cash flow (FCF) recovery, resulting in
credit metrics that will be more in line with a B3 rating in the
next 12-18 months. Governance considerations were also a key driver
of action, notably the limited predictability of the company's
financial performance and risk management, with a track record of
underperformance, its complex and opaque organizational structure
and related-party transactions, as well as management turnover.

Grifols has recently taken actions to address its bond maturities
due in the first half of 2025 and enhance its liquidity position.
It raised EUR1.3 billion of senior secured private placement notes
and used the proceeds to repay its EUR1.0 billion senior unsecured
notes due May 2025 and reduce its revolving credit facility (RCF)
drawings. Grifols also closed the sale of a 20% stake in Shanghai
RAAS (SRAAS) and w Moody's e expect it will use related proceeds to
reduce its existing senior secured debt on a pro rata basis,
including repaying about EUR520 million out of its outstanding
EUR838 million senior secured notes due February 2025.  However,
Moody's still view liquidity as being fragile: while it is adequate
for the next 12 months, beyond that the maintenance of an adequate
liquidity will be premised on Grifols' return to positive FCF
generation, which has not yet materialized. The company will also
need to timely address the maturity of its $1.0 billion RCF which
expires in November 2025.

Grifols' Moody's-adjusted debt/EBITDA (leverage) amounted to 10x in
2023. With the repayment of debt from the SRAAS proceeds and a
further recovery in EBITDA, mainly supported by revenue growth
around the mid-single digits in percentage terms and cost
efficiencies, Moody's expect Grifols' leverage to decline to around
7x in 2024 and to around 6.5x in 2025. Moody's expect FCF to remain
negative in 2024, still affected by large interest costs, a working
capital outflow and EUR370 million of extraordinary capital
spending, mainly relating to commitments to purchase collection
centres built under the collaboration agreement with ImmunoTek GH,
LLC. Moody's project that FCF will turn positive in 2025.

Grifols' B3 CFR also takes into consideration the company's good
market position and vertical integration in human blood
plasma-derived products; the favourable fundamental demand drivers
of the sector; the barriers to entry in the industry because of
regulation, customer loyalty and capital intensity; and its good
product safety track record.

LIQUIDITY

Moody's expect Grifols' liquidity to be adequate in the next 12
months, but beyond that the maintenance of an adequate liquidity
will be premised on Grifols' return to positive FCF generation,
which has not yet materialized. The company will also need to
timely address the maturity of its $1.0 billion RCF which expires
in November 2025. As of March 31, 2024, Grifols' liquidity sources
comprised a cash balance of EUR449 million and Moody's estimate it
also had about EUR250 million still available under its $1.0
billion RCF. After the recent issuance of private notes and EUR300
million reduction in RCF drawings, availability under the RCF has
increased correspondingly. Moody's project FCF to remain negative
in 2024 and turn positive in 2025.

As of March 31, 2024, Grifols faced EUR1.745 billion of current
financial liabilities, which include the EUR838 million senior
secured bond due February 2025, of which Moody's expect about
EUR0.5 billion to be repaid with the SRAAS proceeds, leaving about
EUR0.3 billion outstanding. Moody's estimate that current financial
liabilities also included about EUR0.6 billion of current loans.

The RCF is subject to a springing leverage covenant (net
debt/EBITDA at a maximum of 7x) that is activated if drawings
exceed 40%. Grifols' leverage covenant was 6.8x as of March 31,
2024.

RATIONALE FOR THE OUTLOOK

The stable outlook reflects Moody's expectations that Grifols'
earnings and cash flow will continue to gradually recover over the
next 12-18 months, reducing its leverage to levels that will
position it comfortably at B3 and turning FCF positive.

STRUCTURAL CONSIDERATIONS

Grifols' capital structure comprises a mix of senior secured debt
instruments (term loans, RCF and notes) rated B2, one notch above
the CFR, and senior unsecured notes that are ranked behind the
senior secured debt in the waterfall and are rated Caa2, two
notches below the CFR. All these instruments benefit from
guarantees of subsidiaries representing at least 60% of Grifols'
EBITDA. The senior secured debt instruments benefit from
collateral, which includes among others certain tangible and
intangible assets and plasma inventories.

The B3-PD probability of default rating (PDR) is in line with the
B3 CFR, assuming a 50% corporate family recovery rate appropriate
for debt structures comprising bank and bond debt.

ESG CONSIDERATIONS

Most relevant ESG considerations for Grifols are related to
governance where Moody's consider the company's exposure to
governance risks as high. The G-4 issuer profile score reflects a
track record of high leverage tolerance, limited predictability of
the company's financial performance and risk management, with a
track record of underperformance, as well as its complex and opaque
organizational structure and related-party transactions. Grifols
has also undergone high executive turnover in the past couple of
years. Moody's recognise Grifols has made some positive changes to
its governance, including the recent separation of management from
shareholders and the appointment of a new CEO, however there is at
this point a limited track record of the company operating after
these changes.

Grifols is also exposed to high industry-wide social risks which is
reflected in its S-4 issuer profile score and include product
safety risk, litigation exposure, high manufacturing compliance,
and exposure to regulatory changes which can affect product
prices.

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

Moody's could upgrade Grifols' rating if there is evidence of
sustainable operating recovery, its leverage (Moody's-adjusted
debt/EBITDA) ratio improves below 6.5x and it achieves a
Moody's-adjusted EBITA/interest ratio above 2.0x and positive free
cash flow, on a sustained basis. Positive rating action would also
require that Grifols maintains at least an adequate liquidity and
reduces governance risks. This would include operating with a more
conservative financial policy and prudent management of debt
maturities, greater predictability of its financial performance,
more stability at the executive level and building a track record
of enhanced transparency on its financial disclosures.

Conversely, Moody's could downgrade Grifols' rating if its
liquidity weakens, which could notably happen if its FCF remains
negative or it does not refinance its future material debt
maturities in a timely manner. If Grifols' leverage does not
improve well below 7.5x or its Moody's-adjusted EBITA/interest
ratio declines below 1.5x, this could also lead to a negative
rating pressure.

LIST OF AFFECTED RATINGS

Issuer: Grifols S.A.

Downgrades, previously the ratings were placed on review for
downgrade:

Probability of Default, Downgraded to B3-PD from B2-PD

LT Corporate Family Ratings (Foreign Currency), Downgraded to B3
from B2

Senior Secured Bank Credit Facility (Local Currency), Downgraded to
B2 from Ba3

Backed Senior Secured (Local Currency), Downgraded to B2 from Ba3

Outlook action:

Outlook, Changed To Stable From Rating Under Review

Issuer: Grifols Escrow Issuer, S.A.U.

Downgrades, previously the ratings were placed on review for
downgrade:

  Backed Senior Unsecured (Foreign Currency), Downgraded to Caa2
from Caa1

  Backed Senior Unsecured (Local Currency), Downgraded to Caa2 from
Caa1

Outlook action:

Outlook, Changed To Stable From Rating Under Review

Issuer: Grifols World Wide Operations Ltd.

Downgrades, previously the ratings were placed on review for
downgrade:

  Backed Senior Secured Bank Credit Facility (Foreign Currency),
Downgraded to B2 from Ba3

Outlook action:

Outlook, Changed To Stable From Rating Under Review

Issuer: Grifols World Wide Operations USA, Inc.

Downgrades, previously the ratings were placed on review for
downgrade:

  Backed Senior Secured Bank Credit Facility (Local Currency),
Downgraded to B2 from Ba3

Outlook action:

Outlook, Changed To Stable From Rating Under Review

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Medical
Products and Devices published in October 2023.

COMPANY PROFILE

Grifols, headquartered in Barcelona, Spain, is a global healthcare
company that is primarily focused on human blood plasma-derived
products and transfusion medicine. Grifols also supplies devices,
instruments and assays for clinical diagnostic laboratories. It
generated EUR6.6 billion in revenue in 2023.




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

INTRUM AB: Moody's Cuts CFR to Caa1 & Unsecured Debt Rating to Caa2
-------------------------------------------------------------------
Moody's Ratings has downgraded Intrum AB (publ)'s (Intrum)
Corporate Family Rating to Caa1 from B3 and its senior unsecured
debt rating to Caa2 from Caa1. The issuer outlook is negative.
Previously, the ratings were on review for downgrade.

The rating action was triggered by the firm's announcement on June
20, 2024[1] to have reached an in principle agreement with its key
noteholders in relation to debt restructuring.

This rating action closes the review for downgrade opened on
Intrum's ratings on March 20, 2024.

RATINGS RATIONALE

The downgrade of Intrum's ratings with a negative outlook
attributes a high likelihood to obtaining the necessary consent
from its creditors to the contemplated debt restructuring and
reflects Moody's view that despite some reduction in nominal debt,
Intrum's capital structure will remain untenable. Moody's estimate
that the debt/EBITDA ratio will remain around 5x following the
partial portfolio sale to Cerberus earlier this year and a
consequent reduction in EBITDA of around 20%. The downgrade also
reflects continued challenges for Intrum's debt servicing capacity
in light of a subdued cash flow generation outlook following the
recent portfolio sale and ongoing strategic repositioning as a
capital-light, but lower margin debt servicing company.

The proposed debt restructuring includes a repayment of the
upcoming 2024 maturities from available liquidity, as well as a
debt/equity swap, thereby extending the maturities of the bonds
maturing between 2025 and 2028 bonds at 90% of notional to 2027 and
2030 and in exchange for 10% of the company's equity and a higher
coupon. Further, a new EUR400 million backstop facility will be
used to repurchase the bonds at a discount. The backstop facility
will rank above the senior unsecured bonds and thus will create
further subordination for senior unsecured bondholders, which will
be partly mitigated by the reduction of the revolving credit
facility (RCF) to EUR1.1 billion from EUR1.8 billion.

If the proposed restructuring  will be accepted by all relevant
stakeholders in its current form, Moody's will likely classify the
offer as a distressed exchange. Moody's consider a distressed
exchange as a form of default. A distressed exchange is defined as
an offer by an issuer to creditors of a new or restructured debt,
or a new package of securities, cash or assets, that amount to a
diminished financial obligation relative to the original obligation
with the effect of the transaction being the avoidance of an
eventual payment default on the debt.

The negative outlook reflects the uncertainties regarding the
timing and the likelihood of the announced capital restructuring,
given that Intrum has not yet reached an agreement with all
noteholders and is still considering alternative options which
might result in even higher potential losses for the debtholders.

During Moody's 12 to 18 months outlook period, Moody's will also
monitor the viability of Intrum's modified business model, given
its shift towards a capital-light, lower-margin, servicing focused
debt collection company with lower EBITDA, but also lower capital
needs, and its ability to service its debt in the future.

Intrum's senior unsecured debt positioning of Caa2 reflects the
Caa1 positioning of the CFR and the priorities of claims and asset
coverage in the company's liability structure.

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

Upward rating pressure is currently unlikely given the negative
outlook. Intrum's ratings could be upgraded if Intrum will be in
the position to avoid losses to its debtholders and would
demonstrate a level of financial performance commensurate with a B3
rating level.

Intrum's ratings could be further downgraded if Moody's conclude
that the firm's bondholders  will incur losses above the levels
indicated by the current debt restructuring proposal. Intrum's CFR
could also be downgraded if Moody's come to the conclusion that its
business proposition lacks a clear path to sustainable financial
performance or faces further liquidity and funding risks given its
high nominal debt level.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Finance
Companies Methodology published in November 2019.


SAS AB: European Commission Approves Restructuring Plan
-------------------------------------------------------
The European Commission has declared the Kingdom of Denmark's and
the Kingdom of Sweden's participation in SAS' restructuring process
compatible with applicable EU State aid rules. The approval marks
another important step forward for SAS in its transformation plan
and in the on-going restructuring proceedings.

The effectiveness of SAS' chapter 11 plan of reorganization remains
subject to various conditions precedent, including approvals from
various regulatory authorities and a successful completion of SAS
AB's company reorganization proceeding in Sweden.

Information regarding SAS' U.S. chapter 11 cases and SAS AB's
company reorganization in Sweden

Additional information regarding SAS' voluntary chapter 11 cases in
the U.S. and SAS AB's company reorganization in Sweden is available
on SAS' dedicated restructuring website,
https://sasgroup.net/transformation. U.S. court filings and other
documents related to the chapter 11 cases in the U.S. are available
on a separate website administered by SAS' claims agent, Kroll
Restructuring Administration LLC, at
https://cases.ra.kroll.com/SAS. Information is also available by
calling (844) 242-7491 (U.S./Canada) or +1 (347) 338-6450
(International), as well as by email at SASInfo@ra.kroll.com.
Swedish court filings related to SAS AB's company reorganization in
Sweden can be requested from the Stockholm District Court, and
certain documentation is also provided by the administrator on a
separate website administered by Ackordscentralen (AC-Gruppen AB),
https://ackordscentralen.se/en/reorganisations/sas-ab/.

Advisors

Weil, Gotshal & Manges LLP is serving as global legal counsel and
Mannheimer Swartling Advokatbyrå AB is serving as Swedish legal
counsel to SAS. Seabury Securities LLC and Skandinaviska Enskilda
Banken AB are serving as investment bankers, and Seabury Securities
LLC is also serving as restructuring advisor to SAS.

                  About Scandinavian Airlines

SAS SAB -- https://www.sasgroup.net/ -- Scandinavia's leading
airline, with main hubs in Copenhagen, Oslo and Stockholm, is
flying to destinations in Europe, USA and Asia.  In addition to
flight operations, SAS offers ground handling services, technical
maintenance, and air cargo services.  SAS is a founder member of
the Star Alliance, and together with its partner airlines offers a
wide network worlxdwide.

SAS AB and its subsidiaries, including Scandinavian Airlines
Systems Denmark-Norway-Sweden and Scandinavian Airlines of North
America Inc., sought protection under Chapter 11 of the U.S.
Bankruptcy Code (Bankr. S.D.N.Y. Lead Case No. 22-10925) on July 5,
2022.  In the petition filed by Erno Hilden, authorized
representative, SAS AB estimated assets between $10 billion and $50
billion and liabilities between $1 billion and $10 billion.

Judge Michael E. Wiles oversees the cases.

The Debtors tapped Weil, Gotshal & Manges, LLP as global legal
counsel; Mannheimer Swartling Advokatbyra AB as special counsel;
FTI Consulting, Inc., as financial advisor; Ernst & Young AB as tax
advisor; and Seabury Securities, LLC, and Skandinaviska Enskilda
Banken AB as investment bankers.  Seabury is also serving as
restructuring advisor.  Kroll Restructuring Administration, LLC is
the claims agent and administrative advisor.

The U.S. Trustee for Region 2 appointed an official committee to
represent unsecured creditors in the Debtors' Chapter 11 cases. The
committee is represented by Willkie Farr & Gallagher, LLP.




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

AMBER HOLDCO: S&P Assigns Preliminary 'BB-' LT ICR, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'BB-' long-term issuer
credit rating to global TIC services provider Amber Holdco Plc
(Applus) and its preliminary 'BB-' issue rating, with a '3'
recovery rating, to the group's proposed EUR900 million term loan
B.

S&P said, "The stable outlook reflects our view that, amid solid
underlying market conditions, Applus will see organic revenue
growth of 5%-6% over the next 12-18 months, coupled with marginal
EBITDA margin expansion toward 16.5% that supports FOCF of at least
EUR120 million per year and adjusted debt to EBITDA of about 5.0x.

"Our preliminary 'BB-' captures the proposed issuances to finance
the take-private transaction of Applus by Amber Holdco, a joint
consortium of TDR and I Squared. Through its financing subsidiary
Amber Finco plc, Amber Holdco intends to issue a EUR900 million
term loan B and EUR795 million of other senior secured debt. The
proceeds of these issuances, alongside EUR1.24 billion of new
equity, will fund the acquisition of Applus' listed shares for a
total consideration of about EUR1.65 billion, repay existing debt
of, and cover fees and other expenses of EUR126 million. The
proposed term loan includes EUR375 million incremental borrowing to
fund the IDIADA concession if the company is successful in the
bidding process, the outcome of which is expected in early
September 2024. If unsuccessful, then the incremental borrowings
will be cancelled. Given the high margin of the IDIADA concession,
we would we view a successful bid outcome as credit positive,
however, our base case excludes IDIADA for now.

"In our view, Applus' geographical diversification and scale make
it a world-leading testing, inspection, and certification (TIC)
provider in an industry that exhibits high barriers to entry.
Applus generated revenue of nearly EUR2.1 billion via its
operations across Europe (53% of 2023 revenue), Asia Pacific (13%),
Middle East and Africa (12%), Latin America (12%), and North
America (10%). The company currently has four main pillars: energy
and industry testing (34% of company reported underlying operating
profit in 2023); automotive (32%), which mainly includes statutory
vehicle inspection; IDIADA (19%), a concession located in
Catalonia, Spain for the product development of cars providing
design, engineering, and testing services; and laboratory (15%),
overseeing mechanical and electrical testing for the automotive and
aerospace and defense industry. We compare Applus with rated TIC
peers Soco1 (about EUR1.2 billion revenue in 2022), EM Midco 2
($1.2 billion), LGC Science Group Holdings Ltd. (approximately
GBP750 million), and Normec 1 B.V. (EUR400 million). In a peer
comparison, Applus stands out with better geographical
diversification and larger scale. This means Applus is exposed to
less risk than those peers operating within a single region or
regulatory framework. Also, Applus benefits from best practices and
expertise from a larger global platform that enables cross-selling
opportunities by providing services to its largely blue chip client
base across geographies and segments. This leads us to view Applus
as well positioned to manage the sector's increasing complexities,
mainly related to technological developments, that potentially
prevent smaller players from winning new business. The resulting
barriers to entry, which we consider as high, are reinforced by the
accreditations and authorizations needed to carry out certain
testing and inspection work, since without acquiring an
already-accredited business, obtaining required accreditations for
a job can take multiple years. In addition, Applus' automotive
segment, which delivers statutory vehicle inspection services,
generated about 71% of its operating profits from regulated
businesses. Those regulated activities are structured through
multi-year concession contracts with defined duration and prices.
Applus' existing concessions have enabled the company to become the
market leader in Spain (19% market share) and in the Nordics (28%),
while it has 100% of the Irish market, where it is the exclusive
TIC provider. These factors support Applus' competitive advantage.

"The nature of Applus' services lead to good revenue visibility,
recurring revenue streams, and predictable cash flows. The company
has already secured about 85% of its 2024 revenue thanks to a
EUR1.8 billion backlog providing the business with good revenue
visibility. Positive for revenue visibility, in our view, the
services Applus provides are largely non-discretionary and driven
by regulatory requirements, such as fire and safety testing or
regular vehicle inspections that are compulsory in Applus' regions
of operations. In addition, we consider Applus' client base as
sticky given the services provided are largely mission-critical and
relatively low cost. As a result, clients are less likely to switch
providers or defer inspections and testing in order to avoid any
reputational risks or security risks arising from less frequent
testing or less reputable market participants. Furthermore, Applus
enjoys limited customer churn and long-lasting customer
relationships; 78% of total revenue come from customers with more
than 10 years of relationships.

"The sticky customer base and the critical nature of Applus'
services support our view of the resilience of the TIC industry.
This is reflected in Applus' solid historical performance with
organic growth of at least 5% since 2019, except for 2020 due to
pandemic fallout. pointing out to relatively non-cyclical
end-markets apart from the oil and gas (O&G) exposure that
contributed about 24% to 2023 revenue. However, this is mitigated
by the fact that circa 80% of the O&G segment is exposed to
operating expenditure investments by its clients, thus adding more
stability in comparison to capex investments along the value chain
which are more discretionary in nature.

"Applus' solid contract renewals of automotive inspection
concessions mitigate the risk from the potential loss of the IDIADA
concession. Applus has run the IDIADA concession in Catalonia since
1999 and the concession was extended by five years to 2024 from
2019 in 2016. Under the IDIADA concession, Applus provides various
parts of the product development of automotives to global OEMs,
including engineering services linked to the safety, electronics or
vibration or the worldwide homologation of different types of
vehicles and components. IDIADA contributed 16% to the company's
2023 revenue and is more margin accretive than the rest of the
business. The potential loss of the IDIADA concession prompted us
to expect an 8% year-on-year contraction in revenue, while organic
growth excluding the impact of IDIDA would be 5%. In general, any
operational underperformance that could warrant a termination of a
concession as well as non-renewal at maturity are considered a risk
to the stability of Applus' revenue. However, we regard the IDIADA
situation as a one-off compared with the remaining concessions run
by Applus, which are much smaller in size. What's more, Applus has
a solid track record of concession renewals, having retained 91% of
its contracts over the past 15 years. Additionally, the average
weighted life remaining is seven years of its regulated contracts
within the auto segment, with no major maturity until 2027 when the
Galician exclusivity contract, which contributes less than 3% to
total revenue, comes up for renewal. Furthermore, Applus' recent
concession wins from Saudia Arabia, China, and India will
positively contribute to revenue and EBITDA growth (about EUR45
million of annualized revenue from 2025). Lastly, we believe that a
shift from regulated to liberalized markets will have a limited
impact for Applus, because the company has the technical
requirements, expertise, and reputation to win business in an open
market. In such a scenario, we would expect that the lower volumes
of yearly inspections would be offset by higher average prices,
which tend to be higher in liberalized markets than regulated ones.
Nonetheless, at this time, we do not expect any significant shift
towards a liberalized model across the various jurisdictions over
the coming years.

"We expect continuous industry tailwinds to support revenue growth
and EBITDA expansion. We forecast organic revenue growth of 2.3% in
2024, constrained by the non-renewal of the IDIADA concession.
Excluding the negative impact from the IDIADA concession, we
anticipate organic revenue growth of close to 7% supported by
strong growth within the laboratory segment and growth within
renewables, power, and infrastructure segment. The growth in labs
is driven by its exposure to mechanical testing of aerospace
clients that have experienced full order books such as Airbus
during a post-pandemic rebound, as well as electrical and
cybersecurity testing of automotives amid the shift to
electrification and increased technological complexity coming
alongside developments towards autonomous driving. Regarding the
renewables sector, growth is likely to come from the underlying
market tailwinds linked to the energy transition and
electrification. We expect that power connectivity will become more
complex over time and will require investments into its reliability
and testing as a result of the growing heterogeneity of energy
sources coming from different sources of renewable energy. While
about 55% of Applus' revenue are linked to sustainability services,
with the majority coming from vehicle safety inspections, we expect
that the share will increase over time thanks to its exposure to
end-markets that are largely affected by energy transition,
connectivity, and electrification. For 2025, we forecast negative
revenue growth of about 8% year on year due to the loss of IDIADA.
Excluding the IDIADA lost, we forecast steady organic revenue
growth of 5%-6% per year. S&P Global Ratings-adjusted EBITDA margin
will likely remain broadly flat at 16.2% in 2024 before gradually
expanding to 17.0% by 2026. In 2024-2025, any margin expansion from
a positive mix effect from stronger growth in higher margin
segments such as laboratory testing as well as realized synergies
of EUR25 million, which are mostly linked to improved efficiencies
on personnel and procurement savings from contract renegotiations,
are largely offset by the assumed loss of the higher margin IDIADA
business and EUR13 million-EUR15 million of exceptional costs per
year. As a result, we forecast leverage of 4.6x at end-2024 before
the ratio increases towards 5.0x in 2025, while funds from
operations (FFO) to debt stays near 12% at end-2025. Thereafter, we
expect leverage to fall below 4.5x thanks to the steady organic
revenue growth of close to 6% and margin expansion towards 17%.

"Good FOCF yields ample liquidity. Thanks to Applus' asset-light
business model, FOCF should remain solid at about EUR105 million in
2024 and EUR135 million in 2025. We forecast that, over the next
two years, working capital outflows will be moderate, at EUR15
million-EUR20 million, to support the growth of the business,
alongside capital expenditure (capex) of close to 4% of revenue;
two-thirds of this spending are considered maintenance capex, with
growth capex mostly linked to contract renewals and required
investments in the automotive segment. Over the same period, FFO
interest coverage is expected to remain comfortably around 3.0x. We
think that the company may use its operating cash flows to pursue
additional bolt-on acquisitions as M&A remains a significant
component of growth in the fragmented TIC sector. As such, we would
expect Applus to concentrate on strengthening its existing
footprint with a focus on its higher-margin segments and adding new
capabilities that are complementary to its existing customer base
and services.

"The final ratings will depend on our receipt and satisfactory
review of all final transaction documentation. Accordingly, the
preliminary ratings should not be construed as evidence of final
ratings. If S&P Global Ratings does not receive final documentation
within a reasonable timeframe, or if final documentation departs
from materials reviewed, we reserve the right to withdraw or revise
our ratings. Potential changes include, but are not limited to, use
of loan proceeds, maturity, size and conditions of the loans,
financial and other covenants, security, and ranking.

"The stable outlook reflects our view that, amid solid underlying
market conditions, Applus will see organic revenue growth of 5%-6%
(excluding the impact of the IDIADA concession) over the next 12-18
months. We also factor into the outlook a modest expansion of the
EBITDA margin towards 16.5% that supports sound FOCF of at least
EUR120 million per year and adjusted debt to EBITDA of about
5.0x."

S&P may lower its rating on Applus over the next 12 months if:

-- Adjusted debt to EBITDA materially surpasses 5x on a sustained
basis with no clear prospects for improvement;

-- The company pursues an aggressive financial policy, resulting,
for example, in debt-funded acquisitions or shareholder
distributions that increase adjusted debt to EBITDA above 5.0x;

-- Adjusted FFO to debt declines to below 10% on an ongoing basis;
or

-- FOCF turns negative.

Although unlikely, S&P may raise its rating on Applus over the next
12 months if:

-- Adjusted debt to EBITDA reduces to below 4x on a sustained
basis;

-- The sponsor commits to maintaining leverage below the
aforementioned level, inclusive of any shareholder rewards or
debt-funded acquisitions;

-- FFO to debt improves to above 20% on an ongoing basis; and

-- FOCF to debt improves to above 10% on an ongoing basis.

S&P said, "Governance factors are a moderately negative
consideration in our credit analysis of Applus. Our assessment of
the company's financial risk profile as highly leveraged reflects
corporate decision-making that prioritizes the interests of the
controlling owners, in line with our view of most rated entities
owned by private-equity sponsors. Our assessment also reflects
generally finite holding periods and a focus on maximizing
shareholder returns."


CINEWORLD GROUP: Mulls Company Voluntary Arrangement
----------------------------------------------------
Mark Kleinman at Sky News reports that the owners of Cineworld are
leaning towards putting its British operations through a formal
restructuring process after holding initial talks about a sale with
prospective buyers.

Sky News has learnt that the cinema chain and its advisers at
AlixPartners have begun formally exploring a company voluntary
arrangement (CVA) -- a mechanism widely used by retailers and
restaurant chains during the COVID pandemic to close stores and
slash rents.

The details of a potential Cineworld CVA are still to be
determined, with no visibility yet about any site closures or rent
negotiations with landlords, Sky News states.

However, one insider said that an insolvency mechanism such as a
CVA was now far more likely than an outright sale of the business,
Sky News notes.

Sky News revealed earlier this month that Cineworld had drafted in
AlixPartners to consider a sale.

The company trades from more than 100 sites in Britain, including
at the Picturehouse chain, and employs thousands of people,
although its public relations adviser refused to confirm either
figure.

In a statement issued to Sky News earlier in the month, it said:
"Like many businesses, we are continually reviewing our UK
operations."

Cineworld grew under the leadership of the Greidinger family into a
global giant of the industry, acquiring chains including Regal in
the US in 2018 and the British company of the same name four years
earlier.

Its multibillion-dollar debt mountain led it into crisis, though,
and forced the company into Chapter 11 bankruptcy protection in
2022, Sky News relays.

It delisted from the London Stock Exchange last August, having seen
its share price collapse amid fears for its survival, Sky News
recounts.

According to Sky News, under the deal struck last year, several
billions dollars of debt were exchanged for shares, with a
significant sum of new money injected into the company by a group
of hedge funds and other investors.

Cineworld also operates in central and Eastern Europe, Israel and
the US.

One property industry source previously told Sky News that an
attempt by Cineworld to pursue a CVA or other restructuring which
compromised landlords was likely to be met with fierce resistance.

                       About Cineworld Group

London-based Cineworld Group PLC was founded in 1995 and is the
world's second-largest cinema chain. Cineworld operates 751 sites
with 9,000 screens in 10 countries, including the Cineworld and
Picturehouse screens in the UK and Ireland, Yes Planet in Israel,
and Regal Cinemas in the United States.

According to The Guardian, the Griedinger family, including Mooky's
brother and deputy chief executive, Israel, have struggled to
maintain control of the ailing business but have been forced to
reduce their stake from 28% in recent years. Cineworld's top five
investors include the Chinese Jangho Group at 13.8%, Polaris
Capital Management (7.82%), Aberdeen Standard Investments (4.98%)
and Aviva Investors (4.88%).

The London-listed Cineworld, which has run up debt of more than
$4.8 billion after losses soared during the pandemic, is pinning
its hopes on a meatier slate of movies in 2022 to bounce back from
a two-year lull.

Cineworld Group plc and 104 affiliates sought Chapter 11 protection
(Bankr. S.D. Texas Lead Case No. 22-90168) on Sept. 7, 2022,
estimating more than $1 billion in assets and debt. Judge Marvin
Isgur oversees the cases.

The Debtors tapped Kirkland & Ellis, LLP and Jackson Walker, LLP as
bankruptcy counsels; PJT Partners, LP as investment banker;
AlixPartners, LLP as restructuring advisor; and Ernst & Young, LLP
as tax services provider. Kroll Restructuring Administration, LLC
is the claims agent.

The U.S. Trustee for Region 7 appointed an official committee of
unsecured creditors in the Debtors' Chapter 11 cases on Sept. 23,
2022. The committee tapped Weil, Gotshal & Manges, LLP and
Pachulski Stang Ziehl & Jones, LLP as legal counsels; FTI
Consulting, Inc., as financial advisor; and Perella Weinberg
Partners, LP, as investment banker.


GERONIMO WEB: Falls Into Administration
---------------------------------------
Business Sale reports that Geronimo Web Limited, a website and
digital marketing provider for dealerships and OEMs, fell into
administration last month, with Alexander Kinninmonth and
James Prior of FRP appointed as joint administrators.

In the company's accounts for the year to July 31, 2023, its fixed
assets were valued at slightly over GBP1 million and current assets
at GBP536,754, Business Sale discloses.  However, its net
liabilities at the time totalled GBP1.8 million, Business Sale
notes.


HOTEL VAN DYK: Goes Into Administration
---------------------------------------
Business Sale reports that Hotel Van Dyk Limited, a hotel in
Rotherham, fell into administration last week, with Charles
Ranby-Gorwood of CRG Insolvency & Financial Recovery and Edward
Wetton of Gibson Booth Business Solutions and Insolvency appointed
as joint administrators.

The administration follows two winding-up petitions issued earlier
this year, Business Sale notes.

According to Business Sale, in the company's accounts for the year
to March 31, 2023, its fixed assets were valued at slightly over
GBP3 million and current assets at around the same value.  At the
time, its net assets totalled close to GBP2.7 million, Business
Sale discloses.


HPS LOAN 2024-20: S&P Assigns BB-(sf) Rating on Class E Notes
-------------------------------------------------------------
S&P Global Ratings assigned its ratings to HPS Loan Management
2024-20 Ltd./HPS Loan Management 2024-20 LLC's floating- and
fixed-rate debt.

The debt issuance is a CLO securitization governed by investment
criteria and backed primarily by broadly syndicated
speculative-grade (rated 'BB+' or lower) senior secured term loans.
The transaction is managed by HPS Investment Partners CLO (UK)
LLP.

The ratings reflect S&P's view of:

-- The diversification of the collateral pool;

-- The credit enhancement provided through subordination, excess
spread, and overcollateralization;

-- The experience of the collateral manager's team, which can
affect the performance of the rated debt through portfolio
identification and ongoing management; and

-- The transaction's legal structure, which is expected to be
bankruptcy remote.

  Ratings Assigned

  HPS Loan Management 2024-20 Ltd./HPS Loan Management 2024-20 LLC

  Class A-1, $252.00 million: AAA (sf)
  Class A-2, $4.00 million: AAA (sf)
  Class B-1, $41.00 million: AA (sf)
  Class B-2, $7.00 million: AA (sf)
  Class C (deferrable), $24.00 million: A (sf)
  Class D-1 (deferrable), $21.00 million: BBB (sf)
  Class D-2 (deferrable), $5.00 million: BBB- (sf)
  Class E (deferrable), $13.20 million: BB- (sf)
  Subordinated notes, $40.76 million: Not rated


LEVERTECH ENGINEERING: Collapses Into Administration
----------------------------------------------------
Business Sale reports that Levertech Engineering Services Limited,
a provider of mechanical and electrical services to the commercial,
industrial, HV and airport sectors, fell into administration in
late June, with Andrew Poxon and Hilary Pascoe of Leonard Curtis
appointed as joint administrators.

In the company's accounts for the year to March 31 2023, its fixed
assets were valued at GBP484,518, with current assets standing at
GBP5.7 million, Business Sale states.  At the time, its net assets
totalled approximately GBP1.8 million,
Business Sale notes.


PROJECT GRAND: Moody's Assigns First Time 'B2' Corp. Family Rating
------------------------------------------------------------------
Moody's Ratings assigned a B2 long-term corporate family rating and
B2-PD probability of default rating to Project Grand Bidco (UK)
Limited(the company), formed by the consortium to complete the
acquisition of the Finland-based provider of radiators, radiant
heating and cooling products and integrated solutions Purmo Group
Oyj (Purmo). Moody's Ratings also assigned a B3 rating to the
proposed EUR380 million senior secured notes due 2029, to be raised
by Project Grand (UK) Plc. The outlook on both entities is stable.

Proceeds from the proposed EUR380 million senior secured notes
together with EUR425 million of equity will be used by the company
to finance the public-to-private buyout of Purmo by Apollo Global
Management (Apollo) and Finnish family-owned investment company
Rettig Ltd (Rettig), the current majority shareholder of Purmo.
Assuming successful completion of the transaction, the company will
be owned 80% by Apollo and 20% by Rettig.

RATINGS RATIONALE

The company's (1) high pro forma starting leverage of 5.6x Moody's
adjusted Debt / EBITDA as of last twelve months ended March 2024;
(2) exposure to cyclical residential construction market (around
40% of revenue in new build), with demand likely to remain subdued
in 2024 and with gradual recovery expected in 2025, (3) weak
historical reported margins relative to rated peers, with
profitability (Moody's adjusted EBITA) of around 7% average over
2021-2023 period, reflective of the competitive market environment;
(4) lack of track record of positive FCF, expectation that high
restructuring items will dampen FCF in 2024; and (5) event risk of
debt funded acquisitions and shareholder distribution, all
constrain the B2 CFR. Furthermore, the company faces execution risk
related to the profitability improvement plan as well as
uncertainty around the recovery of demand, and the small scale and
low margins relative to rated peers provides limited operational
flexibility to manage these challenges.

The company's (1) leading market position in radiators market in
Europe with long-standing customer relationships, with expansion
strategy into the heating solutions business; (2) positive
underlying fundamentals in the intermediate term, supported by
regulation that encourages boiler-to-heat pump upgrades; (3) 60%
revenue exposure to more stable renovation and diversified
geographic exposure in Europe; (4) potential for increase in
profitability fueled by strategic initiatives – Accelerate PG
(APG) program, and (5) good liquidity together with Moody's
expectation that the company will start generating positive Free
Cash Flow (FCF, Moodys adjusted) in the proposed capital structure;
all support B2 CFR. Recent regulatory changes in key end markets
highlight both the opportunities and risks the company faces for
future growth.

ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS

Governance considerations are relevant to Project Grand Bidco (UK)
Limited. Following the transaction, the company will be
majority-owned by private equity firm Apollo (80% ownership stake),
with the remaining 20% owned by Rettig, a Finnish family-owned
investment company. Moody's adjusted leverage of 5.6x as of last
twelve months ended March 2024 of the company indicates an
aggressive financial policy. Furthermore, potential debt-funded
growth to enhance the portfolio, as well as debt-funded shareholder
distributions, could weaken credit metrics, or prevent the company
from its forecast improvement in metrics.

LIQUIDITY

Moody's expect the company to maintain good liquidity pro forma for
the transaction. The liquidity sources include the assumed starting
cash balance of around  EUR50 million, fully available EUR100
million RCF due 2028, and Moody's expectation of Moody's adjusted
Funds from Operations (FFO) of around EUR40 million in 2024,
dampened by restructuring-related cash outflows, and EUR70 million
in 2025 assuming profitability improvements.

Moody's expect these sources of liquidity to provide headroom to
cover intra-year working capital swings, and annual capital
spending needs of around EUR20-25 million and annual lease payment
of EUR10-12 million over the next 12-18 months.

The RCF has one springing maintenance covenant set to be tested
only if 40% of more of the RCF facility is drawn. Moody's expect
the company will maintain ample headroom under this covenant over
the next 12-18 months.

STRUCTURAL CONSIDERATIONS

The senior secured notes are rated B3, one notch below the CFR,
which reflects a structural subordination of the bonds relative to
the super senior RCF. The proposed capital structure consists of a
EUR100 million super senior RCF, EUR380 million senior secured
notes, and other operating liabilities including EUR87 million
trade payables (as of March 2024). In Moody's LGD waterfall model,
Moody's rank the super senior RCF at the highest level. The trade
payables are ranked pari passu with the RCF, in line with the
material most senior piece of debt in capital structure, as per
Moody's standard approach. The senior secured notes are ranked
behind the RCF and in line with the EUR12 million lease rejection
claim and EUR16 million pensions.

RATIONALE FOR STABLE OUTLOOK

The B2 rating is weakly positioned at the outset. The stable
outlook reflects Moody's expectation that debt/EBITDA will
gradually reduce over the next 12-18 months and incorporates the
expectation for gradual market recovery and improvement of margin
from the APG program and reduction of extraordinary items. The
rating also factors in Moody's expectation of positive FCF
generation in the next 12-18 months. The outlook doesn't reflect
any sizable debt funded shareholder distribution or acquisitions,
that would lead to significant metric deviation.

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

Upward pressure on the rating could develop if Moody's adjusted
EBITA margins increase above 12% on a sustained basis, and
debt/EBITDA reduces below 4.5x on a sustained basis, and FCF/debt
moves to the high-single digits in percentage terms, while
liquidity remains good. In addition, Financial policy, including
the sponsor commitment to maintaining lower leverage, is also an
important consideration for a higher rating.

Downward pressure on the rating could develop if Moody's adjusted
debt/EBITDA remains above 5.5x, or if Moody's adjusted
EBITA/Interest expense declines below 1.7x, or Moody's adjusted FCF
turns negative, leading to a deterioration in the company's
liquidity. The rating would also come under pressure if the company
exhibits a more aggressive financial policy such as embarking in
large debt-funded acquisitions or shareholder distributions.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Manufacturing
published in September 2021.

COMPANY PROFILE

Purmo Group Oyj is a of Finland based indoor climate comfort
solution manufacturer. The group mainly manufactures radiator and
radiant heating and cooling products, water distributions systems,
and system components and controls under its Climate Products and
Systems division. Additionally, the group offers integrated
solutions as part of its Climate Solutions division.

Purmo Group reported a revenue of EUR743 million and company
adjusted EBITDA of EUR92 million in fiscal year ended 2023.

Assuming successful completion of the transaction, the company will
be owned by 80% Apollo, 20% Rettig Group.


PROJECT GRAND: S&P Assigns Preliminary 'B' LT ICR, Outlook Stable
-----------------------------------------------------------------
S&P Global Ratings assigned its preliminary 'B' long-term issuer
credit to Project Grand Bidco (UK) Ltd. (Climate Solutions Provider
Purmo) and its preliminary 'B' issue rating to the EUR380 million
sustainability-linked senior secured fixed-rate notes issued by
Project Grand (UK) PLC, with a '4' recovery rating, indicating
average recovery (about 45% recovery prospects).

The stable outlook reflects S&P's expectation that Purmo's S&P
Global Ratings-adjusted debt to EBITDA will remain below 5.5x, that
the group will generate positive free operating cash flow (FOCF)
from 2025, and that margins will remain above 10%.

S&P said, "The preliminary 'B' rating reflects our expectation of
Purmo's improving operating performance for 2024-2025, resulting in
our S&P Global Ratings-adjusted debt to EBITDA remaining below 5.5x
and our expectation that the company will generate positive FOCF
from 2025. In late April 2024, financial sponsor Apollo and the
Finland-based Rettig Group formed a consortium for the purposes of
the voluntary public cash tender offer to acquire Purmo. The
transaction will be funded by EUR425 million equity, where no
quasi-equity or shareholder loans will be present in the
shareholding structure above Project Grand Bidco (UK) Ltd., through
Apollo's funds, as well as EUR380 million senior secured debt
proposed. Pro forma the proposed transaction and assuming that the
take-private deal is successful, Project Grand Bidco's unique
liability will be the EUR380 million notes. In addition, the
company has access to a EUR100 million super senior revolving
credit facility (RCF) which we do not anticipate it will be drawn
at closing. Despite a relatively low level of opening leverage, we
believe Purmo's high concentration on the residential market (about
80% of the group's sales in 2023) which is still suffering from
high interest rates and inflation, and lack of track record in
reaching and keeping its margins well above historical levels are
key risks for Purmo. In addition, the financial sponsor ownership
means we cannot rule out that incremental debt could be added for
both acquisitions or shareholder remuneration, which could impair
the company's deleveraging prospects.

"Despite prolonged tough underlying market conditions in
residential construction, we expect the group's EBITDA margins to
recover in 2024-2025, thanks to the benefits from the recently
launched restructuring program. We expect residential construction
spending in Europe to remain subdued in 2024 owing to the high
interest rates and persistent inflation, which undermine consumer
confidence, and financial conditions that we expect ultimately to
challenge the demand for new builds in the residential segment. As
a result, we expect that the demand for Purmo's products will be
weak in 2024 and start recovering in 2025. We anticipate that
Purmo's organic growth will be moderately negative in 2024, and its
top line will be supported by inorganic growth. That said, despite
the challenging underlying markets, we expect Purmo's EBITDA margin
to increase to about 11% in 2024 pro forma the transaction, fueled
by the realization of the operating synergies resulting from the
cost-saving initiatives (about 14% when excluding about EUR30
million of fees from the transaction). This compares with 6.1% in
2023 and 8.9% in 2022. We expect the Accelerate Purmo Group program
should generate cost savings of about EUR30 million in 2024 as
reorganizational action plans bring operating efficiencies to the
group's production footprint, sourcing costs, and total overhead
expenses. In 2025 we expect growth in volumes to further bolster
EBITDA expansion as the construction market starts recovering.

"Purmo has a track record of positive FOCF, although we expect it
to turn negative in 2024 reflecting several one-off items. Although
the company experienced some turbulence during the COVID pandemic
outbreak and the inflationary spikes in 2022, it has a track record
of positive FOCF. The group benefits from about 60% of revenue
generated from replacement, which provides some cushion when demand
for new builds is weak and helps generate stable and predictable
cash flows. In addition, Purmo's cost structure is flexible, since
about 30% of total costs in 2023 were related to raw materials, in
particular steel (35% of total procurement spend in 2023) and
plastics, and about 50% of total costs were linked to labor,
consumables, and other variable costs. We understand the company
does not use any financial derivatives to hedge its exposure to raw
materials. FOCF was positive both in 2022 and 2023, despite steel
reaching a record high level, as the management was able to pass
through increased costs with an aggressive pricing policy. Finally,
Purmo's capital spending (capex) intensity is relatively low, with
about 2.7% of sales invested each year. Nevertheless, we expect
FOCF to turn negative in 2024, at about negative EUR35 million,
mostly owing to several one-off cash items linked to the proposed
transaction, which we estimate at about EUR42 million. The
transaction related expenses will be fully funded by the proposed
transaction. We expect FOCF generation to be only temporarily
pressured and to recover to approximately EUR45 million in 2025,
because volume increases and margin expansion should improve the
group's cash flow generation, absent any additional restructuring
programs, which we do not anticipate under our base case.

"We believe Purmo's product offering hinges in mature markets,
while its climate solutions service offering could offer new
opportunities to grow.The production and sale of hydronic and
electric radiators account for about 55% of Purmo's revenue and we
consider them as Purmo's core products. We believe basic radiators
are relatively standardized in terms of design, materials, and
functionality, and that buyers can usually choose among various
brands based on price and availability, without significant
differences in technological capabilities. At the same time, the
group has longstanding relationships with its clients. This is also
underlined by Purmo's low research and development expenditure on
sales (historically below 1%) and lack of any material proprietary
technology. Our competitive position assessment is constrained by
the relatively commoditized nature of Purmo's core product. We
understand Purmo has recently diversified away from radiators and
other related components through external growth; thereby adding to
the offering of its Climate Solutions division (about 20% of 2023
sales) where the group offers the design of integrated climate
solutions to maximize energy efficiency for buildings' heating and
cooling systems. We view this division as more value added, since
it includes technological specification, logistics, and training
for installers.

"Purmo's products and services benefit from current sustainability
megatrends, including supportive EU regulations. We expect demand
for Purmo's energy-efficient products and services to be robust
after the recovery of the construction market, fueled by the
general public shift toward sustainable practices, as well as
support from EU regulations. Purmo has leading market shares in the
European radiator market in Austria, Germany, Poland, Romania,
Sweden, and Finland, and the company estimates its total market
share at 15%-20%, resulting from customers proximity, longstanding
customers relationships, and greater production capabilities versus
local smaller competitors. Purmo's radiators are able to be
equipped both with modern and more efficient heating systems such
as heat pumps and traditional boilers. European institutions have
recently launched a set of initiatives under the EU Green Deal 2030
which targets an 18% reduction in energy consumption from housing
and a 60% reduction in buildings' greenhouse gas emissions. To
achieve these objectives, we expect a gradual shift toward more
energy-efficient heating systems, which should sustain the demand
for the replacement of radiators. In addition, we expect local
government incentive schemes for households to renovate heating and
cooling systems, which should benefit Purmo's climate solutions
services.

"Purmo's small size of operations, limited scale, and high customer
concentration constrain our business risk assessment. The group has
a limited scale, compared with peers we rate higher than Purmo. In
addition, the markets where Purmo competes are relatively narrow
and will limit the scale of the business over the next few years.
Our business risk assessment is also constrained by the high
geographic and consumer concentration risk. The group operates
entirely in Europe, which accounts for 97% of the group's revenues,
21% of which are generated in Germany. This exposes business
performance to macroeconomic developments in Europe and Germany.
Moreover, the three top customers accounted for about 30% of
Purmo's revenue in 2023 as the group generates the majority of its
sales by selling its products to large distributors (about 80%),
while the remaining 20% is generated by selling directly to
installers. The high dependency on a few large customers brings
volatility in the group's top line and earnings, as
difficult-to-predict destocking dynamics could severely impact the
group's operating performance, as occurred in 2023, when revenue
was down by 17.8%.

"Our preliminary rating on Purmo is constrained by the group's
private equity ownership. Although we forecast that adjusted
leverage will be comfortably below 5.5x from 2025, we also factor
in our assessment that the group is owned by a financial sponsor.
Even though Purmo is less leveraged than other private equity
buyout deals, we cannot rule out potential incremental debt because
the debt documentation is relatively loose and also because the
fragmented market could offer new mergers or acquisitions (M&A).

"The final rating will depend on our receipt and satisfactory
review of all final transaction documentation. Accordingly, the
preliminary rating should not be construed as evidence of a final
rating. If we do not receive the final documentation within a
reasonable time or if the final documentation departs from the
materials reviewed, we reserve the right to withdraw or revise our
preliminary rating. Potential changes include but are not limited
to the key terms of the tender offer including its price, the size
of the bond and the utilization of its proceeds, maturity, size and
conditions of the bond and the RCF, financial and other covenants,
security, and ranking.

"Our stable outlook reflects our expectations that Purmo's debt to
EBITDA will remain well below 5.5x, that the group will generate
positive FOCF, and that margins will remain above 10%."

S&P could lower the rating if:

-- Purmo's revenue fell short of our expectations and margins
declined well below 10% with no prospects for a swift recovery amid
unfavorable market conditions;

-- Abrupt destocking of large customer distributors and
lower-than-expected benefits from the restructuring program that
materially deviate from S&P's base case;

-- Debt to EBITDA above 5.5x over a prolonged period significant
additional M&A, weaker underlying end markets, or dividend
distributions;

-- FOCF generation turned negative; or

-- Funds from operations (FFO) cash interest coverage fell below
2x.

S&P said, "We could raise the rating if the group managed to
increase its scale and footprint significantly, thanks to further
gains in market shares, while maintaining EBITDA margins above 10%.
At the same time, we would expect Purmo to build a track record of
maintaining adjusted debt to EBITDA sustainably below 5.0x,
supported by a committed financial policy to deliver constantly
positive FOCF, translating into FOCF to debt sustainably between 5%
and 10% and an interest coverage ratio well above 3x."


TECALEMIT GARAGE: Goes Into Administration
------------------------------------------
Business Sale reports that Tecalemit Garage Equipment Company
Limited, an Exeter-based manufacturer and supplier of garage
equipment, fell into administration in June, with Stephen Hobson
and Lucinda Coleman of Francis Clark LLP appointed as joint
administrators.

In its most recent accounts, for the year to December 31, 2022, it
reported turnover of GBP10.4 million, roughly level with GBP10.8
million a year earlier, while cutting its post-tax losses from
GBP1.8 million to GBP292,640, Business Sale discloses.

According to Business Sale, the company's directors stated in the
report that the current economic environment was "challenging" for
the firm, but added it was "well-placed to develop sales".
However, they added that the firm's parent company "may be
potentially sold to an undisclosed third party" and said that they
were "not aware of the plans or future intentions in relation to
the future operations of the company."

At the time, its fixed assets were valued at GBP287,723 and current
assets at GBP3.38 million, with net assets amounting to GBP518.352,
Business Sale 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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