/raid1/www/Hosts/bankrupt/TCREUR_Public/250220.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Thursday, February 20, 2025, Vol. 26, No. 37
Headlines
F R A N C E
AFFLELOU SAS: Moody's Withdraws 'B2' Corporate Family Rating
I R E L A N D
CVC CORDATUS V: Moody's Ups Rating on EUR13MM Cl. F-R Notes to B1
EURO-GALAXY CLO VI: Moody's Ups Rating on EUR12MM Cl. F Notes to B1
JUBILEE CLO 2017-XIX: S&P Affirms 'BB(sf)' rating on Class E Notes
N E T H E R L A N D S
SPRINT BIDCO: Fitch Raises LongTerm IDR to 'CCC'
SPRINT BIDCO: Moody's Ups CFR to 'Caa3', Outlook Stable
VTR FINANCE: Moody's Raises CFR to B3 & Alters Outlook to Positive
U N I T E D K I N G D O M
COOL & HEAT: Xeinadin Corporate Named as Administrators
EUROSAIL-UK 2007-6NC: Moody's Affirms Ca Rating on GBP13M D1a Notes
PRESTEK LTD: SFP Restructuring Named as Administrators
PS2 REALISATIONS: Leonard Curtis Named as Administrators
SHAWBROOK MORTGAGE 2022-1: S&P Affirms 'B-(sf)' Rating on F Notes
TAILORMADE LOGISTICS: BDO LLP Named as Administrators
X X X X X X X X
[] Kroll Comments on January 2025 Company Insolvency Figures
- - - - -
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F R A N C E
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AFFLELOU SAS: Moody's Withdraws 'B2' Corporate Family Rating
------------------------------------------------------------
Moody's Ratings has withdrawn AFFLELOU S.A.S.' ratings, including
its B2 corporate family rating, its B2-PD probability of default
rating and the B2 rating on the EUR560 million backed senior
secured notes due in 2029. Prior to the withdrawal, the outlook was
stable.
RATINGS RATIONALE
Moody's have decided to withdraw the rating(s) following a review
of the issuer's request to withdraw its rating(s).
COMPANY PROFILE
Afflelou is an optical retailer, mostly operating in France. For
the last 12 months that ended October 2024, the company reported
revenue of EUR438 million and company-adjusted EBITDA of EUR122
million.
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I R E L A N D
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CVC CORDATUS V: Moody's Ups Rating on EUR13MM Cl. F-R Notes to B1
-----------------------------------------------------------------
Moody's Ratings has upgraded the ratings on the following notes
issued by CVC Cordatus Loan Fund V Designated Activity Company:
EUR30,000,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2030, Upgraded to Aa1 (sf); previously on Oct 8, 2024
Upgraded to Aa3 (sf)
EUR23,000,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2030, Upgraded to A2 (sf); previously on Oct 8, 2024
Affirmed Baa1 (sf)
EUR28,000,000 Class E-R Senior Secured Deferrable Floating Rate
Notes due 2030, Upgraded to Ba1 (sf); previously on Oct 8, 2024
Affirmed Ba2 (sf)
EUR13,000,000 Class F-R Senior Secured Deferrable Floating Rate
Notes due 2030, Upgraded to B1 (sf); previously on Oct 8, 2024
Affirmed B3 (sf)
Moody's have also affirmed the ratings on the following notes:
EUR263,000,000 (Current outstanding amount EUR141,533,520) Class A
Senior Secured Floating Rate Notes due 2030, Affirmed Aaa (sf);
previously on Oct 8, 2024 Affirmed Aaa (sf)
EUR32,000,000 Class B-1-R Senior Secured Floating Rate Notes due
2030, Affirmed Aaa (sf); previously on Oct 8, 2024 Affirmed Aaa
(sf)
EUR30,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2030,
Affirmed Aaa (sf); previously on Oct 8, 2024 Affirmed Aaa (sf)
CVC Cordatus Loan Fund V Designated Activity Company, originally
issued in May 2015 and later refinanced in July 2017 and in October
2019, is a collateralised loan obligation (CLO) backed by a
portfolio of mostly high-yield senior secured European loans. The
portfolio is managed by CVC Credit Partners Group Limited. The
transaction's reinvestment period ended in July 2021.
RATINGS RATIONALE
The rating upgrades on the Class C-R, D-R, E-R and F-R notes are
primarily a result of the deleveraging of the Class A notes
following amortisation of the underlying portfolio since the last
rating action in October 2024.
The affirmations on the ratings on the Class A, B-1-R, and B-2
notes are primarily a result of the expected losses on the notes
remaining consistent with their current rating levels, after taking
into account the CLO's latest portfolio, its relevant structural
features and its actual over-collateralisation ratios.
The Class A notes have paid down by approximately EUR63.7 million
(24.2% of original balance) since the last rating action in October
2024 and EUR121.5 million (46.2%) since closing. As a result of the
deleveraging, over-collateralisation (OC) has increased across the
capital structure. According to the trustee report dated January
2025 [1] the Class A/B, Class C, Class D, Class E and Class F OC
ratios are reported at 155.2%, 136.4%, 124.8%, 113.1% and 108.4%
compared to September 2024 [2] levels of 144.4%, 129.8%, 120.5%,
110.8% and 106.8%, respectively. Moody's note that the January 2025
principal payments are not reflected in the reported OC ratios.
The deleveraging and OC improvements primarily resulted from high
prepayment rates of leveraged loans in the underlying portfolio.
Most of the prepaid proceeds have been applied to amortise the
liabilities. All else held equal, such deleveraging is generally a
positive credit driver for the CLO's rated liabilities.
The key model inputs Moody's use in Moody's analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on Moody's published methodology
and could differ from the trustee's reported numbers.
In Moody's base case, Moody's used the following assumptions:
Performing par and principal proceeds balance: EUR326.3m
Defaulted Securities: EUR2.1m
Diversity Score: 42
Weighted Average Rating Factor (WARF): 3052
Weighted Average Life (WAL): 3.06 years
Weighted Average Spread (WAS): 3.78%
Weighted Average Coupon (WAC): 3.92%
Weighted Average Recovery Rate (WARR): 43.12%
The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on future
defaults is based primarily on the seniority of the assets in the
collateral pool. In each case, historical and market performance
and a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporate these default and recovery
characteristics of the collateral pool into Moody's cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analysing.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
May 2024.
Counterparty Exposure:
The rating action took into consideration the notes' exposure to
relevant counterparties, using the methodology "Moody's Approach to
Assessing Counterparty Risks in Structured Finance" published in
October 2024. Moody's concluded the ratings of the notes are not
constrained by these risks.
Factors that would lead to an upgrade or downgrade of the ratings:
The rated notes' performance is subject to uncertainty. The notes'
performance is sensitive to the performance of the underlying
portfolio, which in turn depends on economic and credit conditions
that may change. The collateral manager's investment decisions and
management of the transaction will also affect the notes'
performance.
Additional uncertainty about performance is due to the following:
-- Portfolio amortisation: The main source of uncertainty in this
transaction is the pace of amortisation of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortisation could accelerate as a consequence of high loan
prepayment levels or collateral sales by the collateral manager or
be delayed by an increase in loan amend-and-extend restructurings.
Fast amortisation would usually benefit the ratings of the notes
beginning with the notes having the highest prepayment priority.
-- Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assume have
defaulted can result in volatility in the deal's
over-collateralisation levels. Further, the timing of recoveries
and the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's analysed
defaulted recoveries assuming the lower of the market price or the
recovery rate to account for potential volatility in market prices.
Recoveries higher than Moody's expectations would have a positive
impact on the notes' ratings.
In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
Moody's other analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.
EURO-GALAXY CLO VI: Moody's Ups Rating on EUR12MM Cl. F Notes to B1
-------------------------------------------------------------------
Moody's Ratings has upgraded the ratings on the following notes
issued by Euro-Galaxy VI CLO Designated Activity Company:
EUR22,000,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2031, Upgraded to Aaa (sf); previously on Sep 9, 2024
Upgraded to Aa1 (sf)
EUR22,500,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2031, Upgraded to Aa3 (sf); previously on Sep 9, 2024
Upgraded to A2 (sf)
EUR27,500,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2031, Upgraded to Ba1 (sf); previously on Sep 9, 2024
Affirmed Ba2 (sf)
EUR12,000,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2031, Upgraded to B1 (sf); previously on Sep 9, 2024
Affirmed B2 (sf)
Moody's have also affirmed the ratings on the following notes:
EUR245,500,000 (Current outstanding amount EUR76,021,230) Class A
Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf);
previously on Sep 9, 2024 Affirmed Aaa (sf)
EUR30,500,000 Class B-1 Senior Secured Floating Rate Notes due
2031, Affirmed Aaa (sf); previously on Sep 9, 2024 Affirmed Aaa
(sf)
EUR12,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2031,
Affirmed Aaa (sf); previously on Sep 9, 2024 Affirmed Aaa (sf)
Euro-Galaxy VI CLO Designated Activity Company, issued in March
2018, is a collateralised loan obligation (CLO) backed by a
portfolio of mostly high-yield senior secured European loans. The
portfolio is managed by PineBridge Investments Europe Limited. The
transaction's reinvestment period ended in October 2022.
RATINGS RATIONALE
The rating upgrades on the Class C, D, E and F notes are primarily
a result of the significant deleveraging of the senior notes
following amortisation of the underlying portfolio since the last
rating action in September 2024.
The affirmations on the ratings on the Class A, B-1 and B-2 notes
are primarily a result of the expected losses on the notes
remaining consistent with their current rating levels, after taking
into account the CLO's latest portfolio, its relevant structural
features and its actual over-collateralisation ratios.
The Class A notes have paid down by approximately EUR57.5 million
(23.4%) since the last rating action in September 2024 and EUR169.5
million (69%) since closing. As a result of the deleveraging,
over-collateralisation (OC) has increased. According to the trustee
report dated January 2025 [1] the Class A/B, Class C, Class D,
Class E and Class F OC ratios are reported at 169.69%, 148.09%,
131.04%, 114.87% and 109.00% compared to August 2024 [2] levels of
162.67%, 144.60%, 129.85%, 115.46% and 110.13% respectively.
Moody's note that the January 2025 principal payments are not
reflected in the reported OC ratios.
The deleveraging and OC improvements primarily resulted from high
prepayment rates of leveraged loans in the underlying portfolio.
Most of the prepaid proceeds have been applied to amortise the
liabilities. All else held equal, such deleveraging is generally a
positive credit driver for the CLO's rated liabilities.
The key model inputs Moody's use in Moody's analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on Moody's published methodology
and could differ from the trustee's reported numbers.
In Moody's base case, Moody's used the following assumptions:
Performing par and principal proceeds balance: EUR215.5m
Defaulted Securities: EUR3.55m
Diversity Score: 41
Weighted Average Rating Factor (WARF): 3238
Weighted Average Life (WAL): 3.32 years
Weighted Average Spread (WAS) (before accounting for Euribor
floors): 3.74%
Weighted Average Coupon (WAC): 5.22%
Weighted Average Recovery Rate (WARR): 44.45%
Par haircut in OC tests and interest diversion test: 0.08%
The default probability derives from the credit quality of the
collateral pool and Moody's expectation of the remaining life of
the collateral pool. The estimated average recovery rate on future
defaults is based primarily on the seniority of the assets in the
collateral pool. In each case, historical and market performance
and a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporate these default and recovery
characteristics of the collateral pool into Moody's cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analysing.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was "Moody's Global
Approach to Rating Collateralized Loan Obligations" published in
May 2024.
Counterparty Exposure:
The rating action took into consideration the notes' exposure to
relevant counterparties, using the methodology "Moody's Approach to
Assessing Counterparty Risks in Structured Finance" published in
October 2024. Moody's concluded the ratings of the notes are not
constrained by these risks.
Factors that would lead to an upgrade or downgrade of the ratings:
The rated notes' performance is subject to uncertainty. The notes'
performance is sensitive to the performance of the underlying
portfolio, which in turn depends on economic and credit conditions
that may change.
Additional uncertainty about performance is due to the following:
-- Portfolio amortisation: The main source of uncertainty in this
transaction is the pace of amortisation of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortisation could accelerate as a consequence of high loan
prepayment levels or collateral sales by the collateral manager or
be delayed by an increase in loan amend-and-extend restructurings.
Fast amortisation would usually benefit the ratings of the notes
beginning with the notes having the highest prepayment priority.
-- Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assume have
defaulted can result in volatility in the deal's
over-collateralisation levels. Further, the timing of recoveries
and the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's analysed
defaulted recoveries assuming the lower of the market price or the
recovery rate to account for potential volatility in market prices.
Recoveries higher than Moody's expectations would have a positive
impact on the notes' ratings.
In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
Moody's other analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.
JUBILEE CLO 2017-XIX: S&P Affirms 'BB(sf)' rating on Class E Notes
------------------------------------------------------------------
S&P Global Ratings raised its credit ratings on Jubilee CLO
2017-XIX DAC's class B notes to 'AAA (sf)' from 'AA (sf)', class C
notes to 'AA (sf)' from 'A (sf)', and class D notes to 'A (sf)'
from 'BBB (sf)'. At the same time, S&P affirmed its 'AAA (sf)'
ratings on the class A-1 and A-2 notes, its 'BB (sf)' rating on the
class E notes, and its 'B- (sf)' rating on the class F notes.
The rating actions follow the application of S&P's global corporate
CLO criteria and S&P's credit and cash flow analysis of the
transaction based on the December 2024 monthly report and the
January 2025 trustee payment report.
Since the transaction closed in December 2017:
-- The pool factor has decreased to 82% from 100%.
-- The portfolio's weighted-average rating remains at 'B'.
-- The portfolio remains as diversified as it was at closing, with
the number of performing obligors increasing to 101 from 100.
-- The portfolio's weighted-average life has decreased to 3.20
years from 6.19 years.
-- The percentage of 'CCC' rated assets has increased to 8.29%
from zero at closing.
Following the deleveraging of the senior notes, all classes of
notes benefit from higher levels of credit enhancement compared
with S&P's closing analysis.
Credit enhancement
Current amount
Class (mil. EUR) Current (%) Closing (%)
A-1 166.58 49.09 42.00
A-2 21.63 49.09 42.00
B 66.38 31.13 27.75
C 28.13 23.52 21.00
D 21.38 17.74 16.25
E 28.13 10.13 10.00
F 13.50 6.48 7.00
Sub Notes 42.80 N/A N/A
N/A--Not applicable.
The scenario default rates (SDRs) have decreased for all rating
scenarios primarily due to a reduction in the portfolio's
weighted-average life.
Portfolio benchmarks
Current Closing
SPWARF 3,002.34 N/A
Default rate dispersion 758.54 N/A
Weighted-average life (years) 3.20 6.19
Obligor diversity measure 77.47 80.14
Industry diversity measure 18.75 26.11
Regional diversity measure 1.19 1.30
Defaulted assets (mil. EUR) 0.00 0.00
'AAA' SDR (%) 60.39 69.69
'AAA' WARR (%) 36.04 34.62
All figures presented in the table do not include defaulted assets.
SPWARF--S&P Global Ratings' weighted-average rating factor.
SDR--Scenario default rate.
WARR--Weighted-average recovery rate.
N/A--Not applicable.
On the cash flow side:
-- The reinvestment period for the transaction ended in January
2022.
-- The class A-1 and A-2 notes have deleveraged by almost EUR65
million and EUR8 million respectively since then.
-- No class of notes is currently deferring interest.
-- All coverage tests are passing as of the December 2024 monthly
report.
-- In S&P's view, the portfolio is diversified across obligors,
industries, and asset characteristics.
S&P said, "Considering the improved SDRs and higher available
credit enhancement, we raised our ratings on the class B to D notes
as the available credit enhancement is now commensurate with higher
stress levels. At the same time, we affirmed our ratings on the
class A-1, A-2, E, and F notes.
"For the class F notes, our credit and cash flow analysis indicate
that the available credit enhancement could withstand stresses
commensurate with a lower rating. However, we have applied our
'CCC' rating criteria, resulting in a 'B- (sf)' rating on this
class of notes."
The ratings uplift for the class F notes reflects several key
factors, including:
-- The class F notes' available credit enhancement, which is in
the same range as that of other CLOs S&P has rated and that has
recently been issued in Europe.
-- The portfolio's average credit quality, which is similar to
other recent CLOs.
-- S&P's model generated break-even default rate at the 'B-'
rating level of 19.92% (for a portfolio with a weighted-average
life of 3.20 years), versus if it was to consider a long-term
sustainable default rate of 3.1% for 3.20 years, which would result
in a target default rate of 9.64%.
-- S&P does not believe that there is a one-in-two chance of this
tranche defaulting.
-- S&P does not envision this tranche defaulting in the next 12-18
months.
-- Following this analysis, S&P considers that the available
credit enhancement for the class F notes remains commensurate with
the assigned 'B- (sf)' rating.
S&P said, "In our view, the portfolio is granular, and
well-diversified across obligors, industries, and asset
characteristics compared to other CLO transactions we have recently
rated. Hence, we have not performed any additional scenario
analysis.
"We consider the transaction's exposure to country risk to be
limited at the assigned ratings, as the exposure to individual
sovereigns does not exceed the diversification thresholds outlined
in our structured finance sovereign risk criteria."
Counterparty, operational, and legal risks are adequately mitigated
in line with S&P's criteria.
Jubilee CLO 2017-XIX is a European cash flow CLO transaction that
securitizes loans granted to primarily speculative-grade corporate
firms. The transaction is managed by Alcentra Ltd.
=====================
N E T H E R L A N D S
=====================
SPRINT BIDCO: Fitch Raises LongTerm IDR to 'CCC'
------------------------------------------------
Fitch Ratings has downgraded Sprint Bidco B.V.'s (Accell) Long-Term
Issuer Default Rating (IDR) to 'RD' (Restricted Default) from 'C'
on the completion of its exchange offer. Fitch has subsequently
upgraded the IDR to 'CCC'.
Fitch has also assigned senior secured debt ratings to its new
EUR167 million super senior facility at 'B' with a Recovery Rating
of 'RR1', its new EUR376 million 1.5 lien facility at 'B-' with
'RR2', and its EUR80.2 million second-lien term loan at 'CC' with
'RR6'. The new debt constitutes Accell's capital structure post its
distressed debt exchange (DDE).
The downgrade reflects Fitch's view that Accell has conducted a
DDE. The subsequent upgrade reflects its expectations of excessive
leverage in the next three years, considering the subdued
conditions in the bicycle market and prospects for limited EBITDA
recovery by 2026.
The 'C'/'RR6' ratings on Accell's EUR705 million term loan due 2029
have been withdrawn following their exchange into the new senior
secured debt.
Key Rating Drivers
Exchange Offer Completed: Fitch views Accell's completed debt
exchange as a DDE, as the amendments to its debt terms constituted
a material reduction in the original terms, including a reduction
in principal amounts and a lowering of lien priority. In January
2025 Accell received the court approval for a debt restructuring
through the UK Scheme of Arrangement, as the scheme was sanctioned
as it had sufficient senior secured lender support. The debt
exchange materially improves the group's debt maturity profile by
extending its maturities to 2030.
Poor Liquidity: Fitch expects Accell's liquidity to remain poor in
2025-2026, given projected continuing operational weakness and
negative free cash flow (FCF). This is despite enhanced financial
flexibility after the recapitalisation, including allowed
capitalisation of EUR30 million of cash interest in 2025 and EUR52
million in 2026. Its liquidity position is further supported by
access to a committed securitisation facility of around EUR50
million to fund working capital needs during the EBITDA recovery
period.
Weaker-than-expected operational performance will pressure
liquidity and heighten the risk of Accell breaching its liquidity
covenant of a minimum EUR15 million under the new credit
facilities.
2025 Losses; 2026 Break-even: Fitch expects Accell's EBITDA to
remain negative in 2025, before reaching break-even in 2026. This
will be achieved through high single-digit revenue growth and
operating margins recovery on revised pricing, cost-reduction
measures including reducing its manufacturing capacity, and
streamlining the organisation structure. Further reduction in
inventory levels in 2025 will be critical to normalising trade
working-capital (WC) requirements, which should constrain FCF
outflows, until EBITDA margin is restored to a sustainable 7% by
2028.
Excessive Leverage: Despite a material reduction of debt within the
Accell restricted group through the DDE, Fitch expects its leverage
to remain above 10x in 2025-2027. Fitch projects EBITDA to recover
to above EUR90 million from 2028, which should lead to positive FCF
and deleveraging to more sustainable levels. Fitch treats EUR365
million debt issued at the new holding company, outside of the
Accell restricted group, as equity, due to its deep structural
subordination, deferred payment in borrowing fees, and a lack of
security.
Management Strategy, Uncertain Turnaround Prospects: Fitch sees
high execution risks in Accell's turnaround plan. The strategic
initiatives and restructuring efforts include operational
restructuring to drive efficiencies, a pricing strategy revision,
marketing strategy adjustments, and product innovation initiatives.
Accell faced substantial operational challenges following the weak
implementation of its previous initiatives since 2022, amid
frequent senior management changes, which were exacerbated by a
weakening market environment and costs related to the Babboe
bicycles recall.
Financial Transparency and Disclosure: The rating is negatively
affected by its assessment of the weakening quality and poor timing
of Accell's financial disclosure, following a delay to the
publication of its audited 2023 annual accounts to December 2024.
Transparent and timely disclosure of Accell's current economic and
financial position is instrumental to its ability to assess its
credit quality.
Derivation Summary
Accell's ratings are one notch higher than that of Oriflame
Investment Holding Plc (CCC-/RWN), which faces operational
difficulties and a high likelihood of a near-term downgrade after
the recent initiation of discussions with lenders aimed at
evaluating potential recapitalisation options. Oriflame is burdened
by high debt service against collapsed profitability, whereas
Accell's recent completion of DDE provides extra financial
flexibility, justifying the one-notch rating difference.
Key Assumptions
Fitch's Key Assumptions Within the Rating Case for the Issuer
- Revenue to grow by high single digits a year in 2026-2028, after
contracting 22% in 2024, on sales volumes recovery and positive
price-mix effects
- EBITDA at -EUR100 million in 2025, before recovering toward EUR10
million in 2026 and gradually toward EUR90 million by 2028, from an
estimated negative EUR146 million in 2024
- Net WC inflows of ER18 million in 2025, mainly driven by
inventory reduction, versus EUR190 million inflows in 2024
- Annual capex at 1% of revenue in 2024-2028
Recovery Analysis
Its recovery analysis assumes Accell would be reorganised as a
going concern (GC) in bankruptcy rather than liquidated. Fitch
assumes a 10% administrative claim. Fitch estimates GC EBITDA at
EUR100 million, which reflects its view of Accell's underlying
earning capacity, supported by its attractive product offering, and
brand value.
Fitch uses an enterprise value (EV)/EBITDA multiple of 5.5x to
calculate a post-reorganisation valuation, which takes into account
Accell's position as an industry leader, with attractive long-term
demand fundamentals. This should allow it to benefit from positive
market trends once current operational and market challenges are
resolved.
Fitch views Accell's EUR167 million super senior secured facility
as ranking senior to its EUR376 million 1.5 lien facility, both due
in May 2030, and senior to its EUR80 million second lien facility,
due in June 2031. Fitch views Accell's EUR100 million
securitisation facility and EUR110 million asset-based loan (ABL)
as being available during and post-distress, based on the record of
Accell's continuing access to these asset-backed facilities during
2023 and 2024.
The waterfall analysis generated a ranked recovery for the EUR167
million facility in the 'RR1' band, indicating a 'B' rating and a
recovery computation output percentage at 100%; for the EUR376
million 1.5 lien facility in the 'RR2' band, indicating a 'B-'
rating and a recovery percentage at 87%; for the EUR80.2 million
second lien facility in the 'RR6' band, indicating a 'CC' rating
and a recovery percentage of 0%.
RATING SENSITIVITIES
Factors That Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- Material liquidity deterioration, due to persistently negative
operating profit or a lack of recovery in FCF generation
- Indication of further debt restructuring that Fitch would
classify as a DDE
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Improving operating performance with EBITDA margins above 6%
- Neutral FCF margins supporting greater liquidity headroom
- EBITDA leverage below 10x and EBITDA interest coverage above 1.5x
on a sustained basis
Liquidity and Debt Structure
Following the DDE, Fitch estimates Accell will have a freely
available cash balance at end-2025 of EUR39 million, after
restricting EUR15 million for daily operational purposes. This
liquidity will be supported by access to EUR47 million undrawn
securitisation and EUR110 million ABL facilities.
Issuer Profile
Sprint Bidco B.V. is a special purpose vehicle that owns the
Dutch-based bicycle company Accell.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Macro and Sector
Forecasts data file which aggregates key data points used in its
credit analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
ESG Considerations
Sprint BidCo B.V. has an ESG Relevance Score of '5' for Management
Strategy, due to ineffective strategy implementation, which has a
negative impact on the credit profile, and is highly relevant to
the rating.
Sprint BidCo B.V. has an ESG Relevance Score of '5' for Financial
Transparency, due to failure to disclose audited financial accounts
on a timely basis, which has a negative impact on the credit
profile, and is highly relevant to the rating.
Sprint BidCo B.V. has an ESG Relevance Score of '4' [+] for GHG
Emissions & Air Quality, due to its offering of
environment-friendly products, which has a positive impact on the
credit profile, and is relevant to the rating in conjunction with
other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Sprint BidCo B.V. LT IDR RD Downgrade C
LT IDR CCC Upgrade
senior secured LT WD Withdrawn C
Senior Secured
2nd Lien LT B- New Rating RR2
super senior LT B New Rating RR1
Senior Secured
3rd Lien LT CC New Rating RR6
SPRINT BIDCO: Moody's Ups CFR to 'Caa3', Outlook Stable
-------------------------------------------------------
Moody's Ratings has upgraded e-bike manufacturer Sprint Bidco
B.V.'s (Accell or the company) long-term corporate family rating to
Caa3 from Ca and its probability of default rating to Caa3-PD/LD
from C-PD. Concurrently, Moody's assigned a Caa1 rating to Accell's
new EUR167 million backed super senior secured term loan due May
2030, and a Ca rating to its new EUR376 million backed 1.5 lien
senior secured term loan due May 2030 and to the EUR80 million
backed second lien senior secured term loan due June 2031. All
three facilities (OpCo facilities) are borrowed by Sprint BidCo BV.
The outlook remains stable.
Following this rating action, Moody's will withdraw the Ca ratings
on Sprint BidCo's original EUR705 million backed senior secured
term loan B (TLB) due June 2029 and the EUR180 million backed
senior secured multi-currency revolving credit facility (RCF) due
December 2028. These two facilities are no longer outstanding.
The rating action follows Accell's announcement on February 12,
2025 that it has completed a debt restructuring which included,
among other things, the write down of around 40% of the original
EUR705 million TLB, EUR180 million RCF and EUR298 million
shareholder loans, as well as the reinstatement of around 20% of
these facilities as subordinated debt at the level of a new holding
company outside of Accell's restricted group with interest to be
paid largely in kind (PIK).
RATINGS RATIONALE
The upgrade of Accell's CFR and PDR mainly reflects the extension
of its debt maturities to May 2030 and June 2031, as well as the
substantial reduction in the reported debt within the company's
restricted group to around EUR815 million from approximately EUR1.6
billion before the transaction. The upgrade also reflects some
additional flexibility in the company's liquidity position due to
the fact that Accell will have the option to use the PIK toggle on
the 1.5 lien and 2 lien OpCo (and also on the super senior facility
in the first year after the closing) facilities under which the
interest expenses can be capitalised rather than paid in cash. In
addition, the new debt documentation does not include any financial
covenants except for the requirement of a minimum cash on balance
sheet of EUR15 million tested monthly until late 2025 and quarterly
thereafter.
The Caa3 CFR factors in the company's still very weak credit
metrics and Moody's view that the pace of recovery of Accell's
earnings and cash flow generation over the next two years is
uncertain. With still challenging macroeconomic and trading
conditions in core markets such as Germany, Moody's base case
forecast is that Accell's Moody's-adjusted EBITDA will only turn
moderately positive in 2026. Moody's believe the likelihood of
deleveraging to below 10x Moody's-adjusted debt to EBITDA is low
until at least 2028. Recovery in cash generation will be slow as
well, as Moody's expect that the Moody's adjusted free cash flow
(FCF) will not turn positive before 2027 even with the benefit of
the PIK toggle optionality.
More positively, although Moody's consider the company's liquidity
is weak, the absence of material debt maturities in the next five
years means that the company has time to grow into its capital
structure, such that it becomes sustainable. Nevertheless, although
not Moody's base case expectation, Moody's cannot rule out the
possibility of a liquidity squeeze or a further debt restructuring
in due course if for example working capital does not develop as
favourably as the company plans.
The debt haircut represents a governance consideration which was
key to this rating action. In addition, while not pertinent to the
current rating action the presence of sizeable PIK debt outside of
the restricted group may in due course become a constraint on
Accell's rating. While the PIK debt is not included in the Moody's
adjusted metrics, it represents an overhang risk because its value
increases over time due to accruing interest and it may be
refinanced within the restricted group if performance improves
materially in due course.
The completed debt restructuring constitutes a distressed debt
exchange, i.e. an event of default under Moody's definition, as
reflected by the LD (limited default) indicator appended to the
probability of default rating. The /LD designation will be removed
within three business days.
LIQUIDITY
Following the transaction, Accell's liquidity has improved but it
remains weak. Pro forma for the debt restructuring, the company's
cash balance was EUR45 million at closing. This includes the
repayment of the original principal amount of the interim financing
loans facilities as well as the cash inflow of a total EUR235
million new money (i.e. including the new super senior facility
sitting outside of the restricted group).
The company does not have any revolving credit facility in place at
present, while its outstanding ABL line – upsized to EUR110
million from EUR75 million following the transaction – is fully
drawn and will expire in November 2029. Accell also relies on a
securitisation facility, under which EUR45 million out of total
committed EUR100 million are available and mature in August 2028.
All rated instruments are fully drawn and include a EUR15 million
minimum liquidity covenant, tested monthly until late 2025 and
quarterly thereafter. Positively, the company has capacity to
increase by EUR100 million its super senior facility and may choose
to exercise any time the PIK toggle option on its 1.5 and second
lien senior secured term loans, capitalising the related interest
due semiannually.
STRUCTURAL CONSIDERATIONS
The new EUR376 million 1.5 lien and EUR80 million second lien
senior secured term loans are rated Ca, one notch below Accell's
Caa3 CFR, reflecting the priority ranking of other instruments in
the capital structure, such as the EUR167 million super senior
secured term loan, rated instead Caa1. The super senior facility
benefits from the same security and guarantees as the 1.5 and
second lien facilities, and these are secured mainly with share
pledges, intragroup receivables and bank accounts. Guarantor
subsidiaries account for at least 90% of the group's consolidated
revenue and gross assets.
In Moody's LGD waterfall, these three rated instruments rank behind
the ABL revolving line. This facility, which has been upsized by
EUR35 million to EUR110 million and whose maturity has been
extended to November 2029, has a first-priority pledge against
eligible receivables and inventory in the Netherlands and Germany
and real estate assets in Hungary.
The HoldCo facilities sitting outside of the restricted group are
not included in Moody's debt and leverage calculations or Loss
Given Default considerations.
RATING OUTLOOK
The stable outlook reflects Moody's expectation that Accell's
operating performance and cash flow generation will progressively,
but slowly, improve over the next 12-18 months as a result of a
continued stabilisation in the operating conditions across the bike
industry in Europe, as well as the implementation of the company's
restructuring measures.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade Accell's ratings if operating performance
recovers such that its capital structure becomes more sustainable.
Quantitatively, an upgrade would likely require that the company's
Moody's adjusted debt/EBITDA leverage decreases below 10x and that
its liquidity profile is at least adequate.
Conversely, Moody's could downgrade the ratings if operating
performance fails to improve, leading to an increased risk of
default, with potential recoveries being lower than those typical
for a Caa3 CFR.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Consumer
Durables published in September 2021.
COMPANY PROFILE
Headquartered in Heerenveen, The Netherlands, Accell is a leading
European bicycle manufacturer with a strong focus on e-bikes which
represented more than half of total sales in 2024. The company also
sells bike parts and accessories, traditional bikes and cargo
bikes, and it generates approximately 70% of its revenues in
Central Europe and Benelux. The company owns 12 national and
international brands including Haibike, Batavus and Lapierre.
Following the restructuring transaction completed in February 2025,
the company is owned by a consortium which includes private equity
firm Kohlberg Kravis Roberts & Co. LP (KKR), Teslin Alpine
Acquisition B.V. and certain lenders which participated in the debt
restructuring.
VTR FINANCE: Moody's Raises CFR to B3 & Alters Outlook to Positive
------------------------------------------------------------------
Moody's Ratings has upgraded VTR Finance N.V. ("VTR") corporate
family rating, VTR Comunicaciones SpA's 4.375% backed senior
secured notes and 5.125% backed senior secured notes to B3 from
Caa1. Moody's have also upgraded the rating of VTR's 6.375% senior
unsecured notes to Caa1 from Caa3. The outlook has changed to
positive. This rating action concludes the review for upgrade
initiated on July 08, 2024.
While VTR's credit metrics and cash flow generation remain weak,
the rating action incorporates support from America Movil, S.A.B.
de C.V. (America Movil, Baa1 stable), which has injected around $1
billion in the Chilean operations and provides liquidity support to
VTR in the form of intercompany loans through Claro Chile SpA,
which amounted CLP 196.3 billion as of September 2024.
The Chilean operations are not material in size for America Movil;
however, Moody's support assumption is backed by the efforts that
America Movil made in recent years to maintain and turnaround the
operations in Chile; including the equity injection of close to $1
billion, intercompany loans and senior management involvement in
the operations and participation on the board of VTR. The Chilean
operations will benefit, as any other of its subsidiaries, from
administrative, operational and financial support from its parent
company; therefore, Moody's expect an increased operational
integration. Moody's also assume that the decision making process
for the JV will be smoother, which is particularly advantageous
given Chile's challenging competitive environment.
The positive outlook reflects Moody's view that VTR will slowly
improve its operating and credit metrics, although credit metrics
and liquidity will remain weak. The positive outlook also assumes
that VTR will continue to be dependent on external funding and
continuous support from America Movil, its parent company.
RATINGS RATIONALE
The rating considers VTR's weak cash generation and credit metrics,
with Moody's adjusted leverage above 8x in the next twelve to
eighteen months from 27.6x and EBITDA margin of 11.8% for the last
twelve months ended September 2024. Since March 2024, the company
has been able to increase revenues for the first time since 2020.
During the 3Q 2024 the company's top line grew 3.3% on a year over
year basis and 2.6% quarter over quarter, mainly driven by
increased ARPU (average revenue per user).
The company's ability to increase ARPU is positive and is due to
the company's efforts to improve its business model during 2024,
allowing it to catch up with other operator's spectrum holdings and
commercial offerings. VTR's current ability to offer fiber optic
access and 5G mobile services should help it to improve operating
metrics, namely manage churn and subscriber losses. In March 2024,
Claro Chile S.A. reached an agreement with neutral infrastructure
provider ON*NETFIBRA that allows it to offer and sell services over
optic fiber. Also, in June of that year, Claro Chile gained five 10
MHz blocks in the 3.5 MHz band of a 5G spectrum auction for around
$90 million.
VTR's internal liquidity remains weak as the company will continue
posting weak margins and negative free cash flow driven by Moody's
expectation of capex at around 30% in 2024 and moderating towards
22% thereafter. Nonetheless, VTR has access to America Movil's
support to execute the company's strategy and budget in Chile.
The upgrade of two notches of VTR's senior unsecured ratings,
reflects a material reduction in the risk of restructuring for
these instruments. The senior unsecured notes are rated one notch
below the CFR reflecting its position in the waterfall and capital
structure. The senior secured notes at VTR Comunicaciones SpA rank
pari passu benefit from pledges over the shares of VTR
Comunicaciones SpA and VTR.com SpA. The senior secured notes
represent the largest portion of VTR's debt, and the notes' rating
is aligned with that of the CFR at B3. In turn, the senior
unsecured notes at VTR do not benefit from any guarantee from
operating subsidiaries and are structurally subordinated to the
senior secured notes at VTR Comunicaciones SpA.
The rating action also reflects governance considerations as key
drivers of the rating action including liquidity support and
improved operating profile. These are reflected now in the
company's "Financial Strategy and Risk Management" and "Management
Credibility and Track Record" assessments which have changed to 4
from 5. As such, the overall exposure to governance risks (Issuer
Profile Score or "IPS") has been changed to 4 from 5, and VTR's
Credit Impact Score has changed to CIS-4 from CIS-5.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could upgrade VTR's ratings as VTR and America Movil build
a track record of operational and financial integration, executing
on the operating plan. The ratings could be upgraded if the company
manages to execute on its strategy and turnaround profitability and
cash flow trends, sustaining a positive trend in operating metrics
including ARPU, revenue and subscriber growth, while reducing
leverage towards 6x.
Conversely, the ratings could be downgraded if there's any
indication of lower support from America Movil. Negative pressure
could arise should the company fails to sustain revenue growth or
improve profitability, with sustained leverage above 9x without a
clear path to reduce it.
The principal methodology used in these ratings was
Telecommunications Service Providers published in November 2023.
VTR Finance N.V. offers mobile, broadband, pay TV and fixed
telephony services, which allow it to offer bundles and benefit
from cross-selling opportunities. For the last twelve months ended
September 2024, VTR Finance N.V. reported revenue of CLP431.9
billion, 469 thousand mobile subscribers and 2.3 million
fixed-revenue-generating units.
VTR is 91% owned by America Movil, which is the controlling and
consolidating entity of ClaroVTR, the joint venture owning VTR.
===========================
U N I T E D K I N G D O M
===========================
COOL & HEAT: Xeinadin Corporate Named as Administrators
-------------------------------------------------------
Cool & Heat Ltd was placed into administration proceedings in the
Business & Property Courts, Leeds, Court Number: CR2025LDS000136,
and Charles Brook and Alan Fallows of Xeinadin Corporate Recovery
Limited were appointed as administrators on Feb. 11, 2025.
Its registered address and principal trading address is at Unit 4
Dale Industrial Estate, Radcliffe, M26 1AD.
The joint administrators can be reached at:
Charles Brook
Alan Fallows
Xeinadin Corporate Recovery Limited
100 Barbirolli Square
Manchester, M2 3BD
Tel No: 0161 832 6221
For further information contact:
Josh Daly
Xeinadin Corporate Recovery Limited
Tel No: 0161 212 8389
Email: josh.daly@xeinadin.com
100 Barbirolli Square
Manchester M2 3BD
EUROSAIL-UK 2007-6NC: Moody's Affirms Ca Rating on GBP13M D1a Notes
-------------------------------------------------------------------
Moody's Ratings has upgraded the rating of one note in Eurosail-UK
2007-6NC PLC. The rating action reflects the increased level of
credit enhancement for the affected note.
GBP122.1M Class A3a Notes, Upgraded to Aaa (sf); previously on Feb
3, 2021 Upgraded to Aa1 (sf)
GBP21.7M Class B1a Notes, Affirmed Caa2 (sf); previously on Feb 3,
2021 Affirmed Caa2 (sf)
GBP15.5M Class C1a Notes, Affirmed Caa3 (sf); previously on Feb 3,
2021 Affirmed Caa3 (sf)
GBP13M Class D1a Notes, Affirmed Ca (sf); previously on Dec 17,
2015 Affirmed Ca (sf)
Moody's affirmed the rating of the other notes considering their
expected lifetime loss-given-default.
RATINGS RATIONALE
The rating action is prompted by an increase in credit enhancement
for the affected tranche.
Increase in Available Credit Enhancement
Sequential amortization and non-amortizing reserve fund led to the
increase in the credit enhancement available in this transaction.
For instance, the credit enhancement for the tranche affected by
the rating action increased to 55.89% from 34.75% since the last
rating action.
Revision of Key Collateral Assumptions:
As part of the rating action, Moody's reassessed Moody's lifetime
loss expectation for the portfolio reflecting the collateral
performance to date.
The performance of the transaction has slightly deteriorated in the
last year, however cumulative losses increased only slightly and
currently stand at 4.86% of original pool balance up from 4.84% a
year earlier. As a result, Moody's maintained the loss assumption
at 6.79% as a percentage of original pool balance. The expected
loss assumption corresponds to 9.49% as a percentage of current
pool balance.
Moody's reassessed loan-by-loan information to estimate the loss
Moody's expect the portfolio to incur in a severe economic stress.
As a result, Moody's have maintained the MILAN Stressed Loss
assumption at 22.8%.
Counterparty Exposure
The rating actions took into consideration the notes' exposure to
relevant counterparties, such as servicer, account banks or swap
providers.
Moody's considered how the liquidity available in the transactions
and other mitigants support continuity of note payments, in case of
servicer default, using the CR assessment as a reference point for
servicers. Kensington Mortgage Company Limited ("KMC") is not rated
but the parent company, Barclays Bank UK PLC, is rated Aa3(cr)
(Counterparty Risk Assessment). Moody's assessment took into
account the rating of the parent entity of KMC as well as the
extensive experience and the relative size and market share of this
servicer in the UK mortgage market. The ratings of the notes are
not constrained by operational risk as a result of the assessment
of the servicer credit quality and the associated probability of
the servicer default together with other mitigants in the
transactions such as back-up servicer, independent cash manager and
liquidity.
For tranches B1a, C1a and D1a, Moody's ratings take into
consideration 1) the losses resulting from the tranche write-downs
following the restructuring in February 2014 (write-down of 10% of
the original note principal balance) and 2) any future losses to be
incurred due to collateral performance. Moody's expectation of
loss-given-default assesses losses experienced and expected future
losses as a percent of the original bond balance and is consistent
with the respective ratings of B1a, C1a and D1a.
The principal methodology used in these ratings was "Residential
Mortgage-Backed Securitizations" published in October 2024.
The analysis undertaken by Moody's at the initial assignment of
ratings for RMBS securities may focus on aspects that become less
relevant or typically remain unchanged during the surveillance
stage.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors or circumstances that could lead to an upgrade of the
ratings include (1) performance of the underlying collateral that
is better than Moody's expected, (2) an increase in available
credit enhancement and (3) improvements in the credit quality of
the transaction counterparties.
Factors or circumstances that could lead to a downgrade of the
ratings include (1) an increase in sovereign risk, (2) performance
of the underlying collateral that is worse than Moody's expected,
(3) deterioration in the notes' available credit enhancement and
(4) deterioration in the credit quality of the transaction
counterparties.
PRESTEK LTD: SFP Restructuring Named as Administrators
------------------------------------------------------
Prestek Ltd was placed into administration proceedings in the High
Court of Justice Business and Property Courts of England and Wales,
Insolvency & Companies List (ChD), Court Number: CR-2025-000726,
and David Kemp and Richard Hunt of SFP Restructuring Limited were
appointed as administrators on Feb. 5, 2025.
Prestek Ltd involved in retail sale via mail order houses or via
Internet. The previous company's name is PFM Projects Ltd.
Its registered office is at Warehouse W, 3 Western Gateway, Royal
Victoria Docks, London, E16 1BD.
Its principal trading address is at 22 The Business Centre,
Wokingham, RG41 2QY.
The joint administrators can be reached at:
David Kemp
Richard Hunt
SFP Restructuring Limited
9 Ensign House
Admirals Way Marsh Wall
London, E14 9XQ
For further details, contact:
David Kemp
Tel No: 0207-538-2222
PS2 REALISATIONS: Leonard Curtis Named as Administrators
--------------------------------------------------------
PS2 Realisations 2025 Limited was placed into administration
proceedings in the High Court of Justice Business and Property
Courts in Manchester, Company & Insolvency List (ChD), Court
Number: CR-2024-MAN-001681, and Mike Dillon and Andrew Knowles of
Leonard Curtis were appointed as administrators on Jan. 8, 2025.
PS2 Realisations is in the manufacturing industry.
Its registered office and principal trading address is at Systems
House Cunliffe Road, Whitebirk Industrial Estate, Blackburn,
Lancashire, BB1 5UA.
The joint administrators can be reached at:
Mike Dillon
Hilary Pascoe
Leonard Curtis
Riverside House
Irwell Street
Manchester M3 5EN
For further details contact:
The Joint Administrators
Tel No: 0161 831 9999
Email: recovery@leonardcurtis.co.uk
Alternative contact: Avery Lewis
SHAWBROOK MORTGAGE 2022-1: S&P Affirms 'B-(sf)' Rating on F Notes
-----------------------------------------------------------------
S&P Global Ratings raised to 'A+ (sf)' from 'A- (sf)' its credit
rating on Shawbrook Mortgage Funding 2022-1 PLC's class E-Dfrd
notes. S&P also affirmed its 'AAA (sf)', 'AA+ (sf)', 'AA (sf)',
'AA- (sf)', and 'B- (sf)' ratings on the class A, B-Dfrd, C-Dfrd,
D-Dfrd, and F-Dfrd notes, respectively.
The rating actions address S&P's full analysis of the most recent
transaction information it has received and the transaction's
structural features.
Total arrears have risen to 2.2% but have been consistently below
our U.K. buy-to-let index.
S&P said, "We applied our global RMBS criteria in our analysis of
this transaction. Our weighted-average foreclosure frequency
assumptions increased at all rating levels due to higher arrears,
while benefitting from additional seasoning. Our weighted-average
loss severity assumptions remained relatively stable."
Table 1
Credit analysis results
Rating level WAFF (%) WALS (%)
AAA 22.52 43.63
AA 15.89 36.50
A 12.48 24.41
BBB 9.25 17.29
BB 5.84 12.36
B 5.08 8.09
WAFF--Weighted-average foreclosure frequency.
WALS--Weighted-average loss severity.
S&P's credit analysis showed an increase in the required credit
coverage for all rating levels.
Available credit enhancement in this transaction has increased
since closing due to the deleveraging and the sequential
amortization of notes.
S&P said, "Operational, counterparty, and legal risks continue to
be adequately mitigated, in our view, and do not constrain our
ratings on the notes. We also performed a sensitivity analysis for
deterioration in credit performance such as an increase in
defaults, and a longer recovery period.
"Our credit and cash flow results indicate the available credit
enhancement for the class E-Dfrd notes is commensurate with a
higher rating than currently assigned due to an increase in credit
enhancement. We therefore raised to 'A+ (sf)' from A- (sf)' our
rating on the E-Dfrd notes.
"We affirmed our 'AAA (sf)' rating on the class A notes to reflect
our credit and cash flow analysis, which indicated the rating
remains robust.
"Our credit and cash flow results indicate the available credit
enhancement for the class B-Dfrd, C-Dfrd, and D-Dfrd notes are
commensurate with higher ratings. However, we affirmed our 'AA+
(sf)' rating on the class B-Dfrd notes as the deferred payment of
interest on the notes is not commensurate with our ratings
definition at the'AAA (sf)' rating level. Given the difference in
credit enhancement and seniority, we affirmed our 'AA (sf)' and
'AA- (sf)' ratings on the class C-Dfrd and D-Dfrd notes,
respectively.
"Under our credit and cash flow analysis, the class F-Dfrd notes
continue to fail at a 'B' stress level in our elevated prepayment
stress scenario, but attain a rating under our steady state
scenario (expected prepayment and contractual fees). Debt servicing
for this class of notes does not depend on favorable economic and
financial conditions. We therefore apply our 'CCC' ratings criteria
and affirmed our 'B- (sf)'rating on this class of notes."
Shawbrook Mortgage Funding 2022-1 PLC is backed by a mortgage pool
of buy-to-let residential mortgages located in England, Wales, and
Scotland.
TAILORMADE LOGISTICS: BDO LLP Named as Administrators
-----------------------------------------------------
Tailormade Logistics UK Limited was placed into administration
proceedings in the High Court of Justice, Business and Property
Courts in Birmingham, Court Number: CR-2025-BHM-000073, and
Benjamin Peterson and Lee Causer of BDO LLP were appointed as
administrators on Feb. 12, 2025.
Tailormade Logistics specialized in Freight transport by road
Its registered office is c/o BDO LLP, at Two Snowhill, 7th Floor,
Birmingham, B4 6GA to be changed to c/o BDO LLP, at 5 Temple
Square, Temple Street, Liverpool, L2 5RH
Its principal trading address is at Swan Mill, Mill 1 / Floor 1, 4
Higher Swan Lane, Bolton, BL3 3AQ.
The joint administrators can be reached at:
Benjamin Peterson
BDO LLP
Water Court Ground Floor
Suite B, 116-118 Canal Street
Nottingham, NG1 7HF
-- and --
Lee Causer
BDO LLP
Two Snowhill
Birmingham, B4 6GA
For further details contact:
Owen Casey
Tel No: +44 151 237 4437
Email: BRCMTNorthandScotland@bdo.co.uk
===============
X X X X X X X X
===============
[] Kroll Comments on January 2025 Company Insolvency Figures
------------------------------------------------------------
The Insolvency Service published the latest January insolvency
statistics, reflecting on Company Administrations which Kroll
tracks and which generally reflect larger businesses.
Benjamin Wiles, Managing Director at Kroll, said: "We are beginning
to see consistent numbers from economic data and surveys showing
low business confidence within the private sector with many
companies saying they are reducing headcount or pausing investment
projects.
"While we aren't necessarily seeing significant numbers of company
administrations yet, in fact there was drop in January, there is a
lot of restructuring activity taking place across the market.
Already this year there have been a number of large companies
including major banks and supermarkets announcing job cuts in
response to forthcoming tax changes or as part of wider business
transformation.
"What's telling is that this activity is focused on large
corporates, who tend to have more headroom to absorb costs . What
concerns us is that the pictures being painted in the business
surveys are quite bleak and there is clearly a level of distress
among small and mid-sized companies, who simply may not have the
options to hand that larger businesses do. In particular, this can
be seen in the rise of creditors’ voluntary liquidations (CVLs),
an insolvency process more often used by smaller companies.
"However, these tough conditions may not translate into a higher
number of insolvencies later this year, particularly as higher
wages and improving consumer confidence may feed into the wider
economy giving a boost to certain sectors notably retail,
hospitality and leisure."
Kroll also tracks another form of insolvency, administrations,
throughout the year. The attached document and table below breaks
down a comparison of the top 10 administrations by sector in
January 2025.
2025 Administration Appointments by Sector
Retail - 13
Manufacturing - 11
Leisure & Hospitality - 11
Media & Tech - 8
Construction - 5
Automotive - 4
Recruitment - 4
Real Estate - 3
Food & Drink - 3
Energy & Industrials - 2
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.
Copyright 2025. All rights reserved. ISSN 1529-2754.
This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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delivered via e-mail. Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each. For subscription information,
contact Peter Chapman at 215-945-7000.
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