/raid1/www/Hosts/bankrupt/TCREUR_Public/250313.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, March 13, 2025, Vol. 26, No. 52
Headlines
A R M E N I A
ARMBROK OJSC: Fitch Assigns 'B-' LongTerm IDR, Outlook Stable
F R A N C E
EUTELSAT SA: Fitch Lowers LongTerm IDR to 'BB', Outlook Negative
LUNE HOLDINGS: Moody's Cuts CFR to 'Caa1', Outlook Remains Negative
SNF GROUP: S&P Assigns 'BB+' Rating on EUR550MM Unsecured Notes
TSG SOLUTIONS: S&P Affirms 'B' ICR on Dividend Recapitalization
VIRIDIEN: S&P Affirms 'B-' LT ICR & Alters Outlook to Positive
I R E L A N D
HARVEST CLO XV: Moody's Affirms B1 Rating on EUR13.5MM F-R Notes
OAK HILL IV: Fitch Affirms 'B+sf' Rating on Class F-R Notes
SONA FIOS IV: Fitch Assigns 'B-sf' Final Rating on Class F Notes
I T A L Y
AUTOFLORENCE 3: Fitch Hikes Rating on Class E Notes to 'BB-sf'
DEDALUS SPA: Moody's Affirms 'B3' CFR & Alters Outlook to Stable
L U X E M B O U R G
WINTERFELL FINANCING: Fitch Lowers IDR to 'B-', Outlook Stable
M A L T A
MAS PLC: Moody's Affirms 'B1' CFR & Alters Outlook to Positive
N E T H E R L A N D S
ANQORE GROUP: S&P Affirms 'B-' LongTerm ICR, Outlook Stable
ATHENA HOLDCO: S&P Affirms 'B' LongTerm ICR on Add-On for Dividends
GROUP OF BUTCHERS: S&P Affirms 'B' ICR on Dividend Recap
P O R T U G A L
ROOT BIDCO: Moody's Rates EUR1.11-Mil. Senior Term Loan 'B3'
S W E D E N
IGT HOLDING IV: S&P Affirms 'B' ICR & Alters Outlook to Stable
U N I T E D K I N G D O M
BISTROT PIERRE: Interpath Ltd Named as Administrators
DYFED TELECOM: FTS Recovery Named as Administrators
FERROGLOBE PLC: Moody's Affirms 'B2' CFR & Alters Outlook to Stable
GEKO PRODUCTS: Opus Restructuring Named as Administrators
MEDICAL AND AESTHETIC: Azets Named as Administrators
PLATFORM BIDCO: S&P Affirms 'B-' ICR & Alters Outlook to Stable
RESORTHOPPA LIMITED: KR8 Advisory Named as Administrators
WWTE LIMITED: KR8 Advisory Named as Administrators
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A R M E N I A
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ARMBROK OJSC: Fitch Assigns 'B-' LongTerm IDR, Outlook Stable
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Fitch Ratings has assigned Armbrok Open Joint Stock Company a
Long-Term Issuer Default Rating (IDR) of 'B-' with a Stable Outlook
and Short-term IDR of 'B'.
Armbrok's ratings are based on its standalone credit profile and
are constrained by its modest franchise, basic corporate
governance, high business concentrations and exposure to regulatory
risk. The ratings also reflect Armbrok's strong financial
performance since 2022, conservative leverage and adequate balance
sheet liquidity.
Key Rating Drivers
Leading Position; Small Franchise: Founded in 1994, Armbrok is the
market leader among Armenian investment firms and provides a range
of financial services, including investment banking, brokerage, and
international trading to around 10,000 clients, mostly Armenian
individuals and SMEs. The company generates most of its revenue
from brokerage and securities trading and despite recent
diversification, its revenue base remains concentrated by clients.
In addition to client-driven brokerage services, Armbrok conducts
proprietary activities, which lead to open directional interest
rate and foreign-currency (FX) positions. Armbrok's revenue and
profitability surged in 2022-2023 due to capital inflows following
the Russia-Ukraine war. This effect started to reverse in 2024, and
Fitch expects Armbrok's revenue base to continue to moderate in
2025-2026.
High Risk Appetite: In Fitch's view, Armbrok's appetite for market
risk is high, as reflected in its material open directional
interest rate and FX positions. The company's large holdings in
long-duration Armenian government bonds result in material interest
rate sensitivity, with a 100bp parallel shift in relevant interest
rates, equalling 12% of end-2023 equity. Armbrok's strategic open
FX position was 40% of total capital at end-2024 (predominantly
long in US dollars).
The company aims to mitigate market risk, relying on a natural
hedge, based on the typical correlation of movements in currency
and policy rate. However, the long-term effectiveness of this hedge
is uncertain. Armbrok's current risk management processes are basic
but management plans to implement a more structured and automated
risk management process as business grows.
Good Asset Quality; Concentrated Portfolio: Armbrok's asset quality
benefits from low levels of impaired assets but is weighed down by
high concentrations and investments in distressed assets. The
company maintains a low credit risk government bond portfolio
alongside smaller size high-risk but higher-yielding positions.
Fitch expects asset quality to remain broadly consistent, despite
the firm's risk appetite.
Strong Returns in 2022-2024: Armbrok's financial performance was
boosted in 2022-2023 by external factors, including material
capital inflows since the onset of the Russia-Ukraine war. Inflated
transaction volumes started declining in 2024, but profitability
remains exceptionally strong. Fitch expects profitability to
further moderate in 2025-2026, but the slow pace of this suggests
stabilisation of returns at levels stronger than the already
adequate levels pre-2022.
Armbrok's largely variable expenses offer some flexibility should
revenue decline faster than currently anticipated. Management plans
to develop new business lines, including services to high net worth
individuals and asset management, which should support underlying
profitability.
Low Leverage; Adequate Regulatory Buffer: Armbrok has low leverage
and a strong capital position, maintaining a comfortable cushion
against regulatory minimum requirements. Its assessment of capital
is constrained by the concentrated business model and high risk
appetite. Armbrok's short-dated balance sheet allows flexibility in
reducing risk-weighted assets if necessary. Fitch expects Armbrok
to maintain a comfortable capital position, despite ambitious
growth plans.
Adequate Liquidity: Armbrok maintains a highly liquid balance sheet
with liquid assets consistently covering its short-tenor
liabilities (largely repurchase transactions). Its funding
franchise is limited, but holdings in local government bonds and US
dollar-denominated securities support near-term liquidity. As
Armbrok does not provide meaningful margin lending, its need for
external funding remains limited. Absent major market disruptions,
Fitch expects the company to adequately manage its liquidity
position.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Breaching its statutory capital requirement of 12% of risk-weighted
assets.
An increase in Armbrok's tangible leverage ratio to above 10x, or
any indirect deterioration of the company's solvency, such as a
sharp increase in receivables from related parties or asset
impairment.
Signs of deterioration in funding access or the company's liquidity
buffer.
A significant decrease in revenue generation or a material
reduction in business scale.
Indicators of a substantial increase in regulatory risk, for
example, due to systemic regulatory tightening that constrains the
company's ability to operate in its core segments, or idiosyncratic
issues leading to regulatory intervention, sizable penalties, or
sanctions.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
In the medium term, continued development of Armbrok's domestic
franchise via diversification of revenue sources, coupled with a
moderation of the risk appetite (particularly in respect of market
risk), could drive an upgrade of the Long-Term IDR.
Strengthening of Armbrok's corporate governance practices and a
more formalised risk management framework.
ADJUSTMENTS
The sector risk operating environment score has been assigned below
the implied score due to the following reason: regulatory and legal
framework.
The asset quality score has been assigned below the implied score
due to the following adjustment reason: risk profile and business
model (negative).
The earnings & profitability score has been assigned below the
implied score due to the following adjustment reason: earnings
stability (negative).
The capitalization & leverage score has been assigned below the
implied score due to the following adjustment reason: risk profile
and business model (negative).
The funding, liquidity & coverage score has been assigned below the
implied score due to the following adjustment reason: business
model/funding market convention (negative).
Date of Relevant Committee
Feb. 13, 2025
ESG Considerations
Armbrok has an ESG Relevance Score of '4' for management strategy.
This reflects opportunistic and reactive strategy partially a
factor of a very volatile environment, adding volatility to
company's performance. This has a moderately negative impact on
Armbrok's credit profile and is relevant to the ratings in
conjunction with other factors.
Armbrok has an ESG Relevance Score of '4' for governance structure.
This reflects high key-person risk due to significant dependence in
decision-making on the largest shareholder. This has a moderately
negative impact on Armbrok's 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
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Armbrok Open Joint
Stock Company LT IDR B- New Rating
ST IDR B New Rating
===========
F R A N C E
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EUTELSAT SA: Fitch Lowers LongTerm IDR to 'BB', Outlook Negative
----------------------------------------------------------------
Fitch Ratings has downgraded Eutelsat S.A.'s (ESA) Long-Term Issuer
Default Rating (IDR) to 'BB' from 'BB+' and Eutelsat Communications
S.A.'s (Eutelsat) IDR to 'B' from 'B+'. The Outlooks are Negative.
Fitch has also downgraded ESA's senior unsecured debt rating to
'BB' from 'BB+', while the 'RR4' Recovery Rating remains unchanged.
Fitch has also downgraded Eutelsat's senior unsecured debt rating
to 'CCC+' from 'B+' and revised its Recovery Rating to 'RR6' from
'RR4'.
The downgrade reflects OneWeb's slow revenue growth and its
continuing negative EBITDA, significant pressure in cash
flow-generative GEO segments, high LEO capex requirements with a
likely need for substantial external funding, and looming
refinancing needs from 2027 onwards. The Negative Outlook reflects
low visibility over future funding availability and high execution
risks around the company's strategy to develop its LEO
constellation in an increasingly competitive environment.
Key Rating Drivers
LEO Funding Needs: Fitch expects Eutelsat will need additional
funding, estimated at EUR4.2 billion until 2032, to ensure the
continuity of OneWeb's first-generation satellite constellation and
finance its contribution to the IRIS2 project, based on the
company's estimates. OneWeb alone needs EUR2 billion-EUR2.2 billion
financing over 2025-2029, which may require primarily external
funding in view of limited internal cash flow circulation.
Fitch projects high capex to push free cash flow (FCF) into
negative territory. Eutelsat has already ordered 100 satellites and
would require an additional 340 satellites to ensure that its
OneWeb constellation remains operational until IRIS2 becomes comes
into service.
OneWeb Slow Progress: OneWeb continues to generate negative EBITDA
and has achieved only slow progress in growing its revenues, as
suggested by the performance of Eutelsat's non-video segments.
OneWeb managed to grow its backlog by approximately EUR300 million
to EUR1 billion in 2024, which still only corresponds to a fraction
of the revenue level that would allow sustainably positive EBITDA
generation.
GEO Structural Challenges: Eutelsat's revenues from traditional
GEO-enabled services are likely to remain under pressure, in its
view, with the TV-related video segment hit by structurally lower
usage of linear TV, while the non-video segments are suffering from
the wider adoption of LEO technology. At end-2024 Eutelsat recorded
EUR535 million of goodwill impairments in respect of its GEO assets
on lower future cash flows from these assets, due to weaker demand
for video and intensifying competition with LEO connectivity
services.
'b+' Group-Wide Credit Profile: Eutelsat's group-wide consolidated
credit profile corresponds to 'b+', reflecting operating challenges
in both the GEO and LEO segments, funding uncertainty over LEO
constellations, likely increase in leverage, and looming
refinancing risks in 2027.
PSL Linkage: Covenant and cash flow restrictions at ESA have led to
an assessment of 'porous' ring-fencing and control based on Fitch's
Parent Subsidiary Linkage (PSL) Criteria. As a result, ESA, as a
stronger subsidiary, is rated two notches above the consolidated
group profile of 'b+' and in line with its Standalone Credit
Profile (SCP) of 'bb'. The ringfencing provisions limit Eutelsat's
access to ESA's cash flows, leading us to rate Eutelsat at 'B', one
notch below the group's consolidated profile of 'b+', in line with
Fitch's PSL Criteria.
Ringfencing Around ESA: The 2029 bond terms effectively ringfence
ESA, limiting its leverage and capacity to circulate cash to other
parts of the group, thereby benefiting its creditors. Distributions
from ESA are limited once its net leverage exceeds 2.75x (company
definition) but ESA can provide the greater of EUR1.4 billion or
175% of EBITDA in funding to OneWeb, subject to net leverage
remaining below 3.25x. ESA's heavier involvement in new LEO
projects, such as IRIS2, may increase its exposure to group-wide
risks, reduce the benefits of ringfencing, and lead to narrower
notching in future.
ESA's Robust Cash Flow Generation: With the company-defined
leverage limited to a maximum of 3.25x, Fitch views ESA's SCP as
consistent with 'bb'. By its estimates, ESA's leverage under this
definition was close to 2.6x at end-2024, suggesting limited
capacity for additional distributions. ESA's credit profile is
underpinned by its robust cash flow generation, stemming from a
strong company-defined EBITDA margin of close to 70% and only
moderate GEO capex requirements, despite its GEO revenues remaining
under pressure.
Intensifying LEO Competition: Growing competition with existing and
emerging LEO operators reduces growth and market-share
opportunities for OneWeb but also weighs on GEO segments in its
view. In addition to a fully-operational Starlink, a number of
international providers plan to launch service in the
near-to-medium term such as Amazon's Kuiper, Canada-based Telesat
and Chinese constellations.
Infrastructure Sale Helps Liquidity: Eutelsat's liquidity will be
helped by an expected EUR500 million of net proceeds from the sale
of its passive infrastructure scheduled to take place in 1H26. This
transaction will also lead to an EBITDA margin reduction, as Fitch
treats lease payments as cash expense, but also lower maintenance
capex.
Higher Leverage: Fitch projects that Eutelsat's group-wide net
debt/EBITDA may increase to above 4.5x on weak EBITDA generation
due to GEO pressures and continuing OneWeb losses, and a likely
debt increase to fund maintenance capex for OneWeb's first
generation constellation. Eutelsat's ultimate target is to reduce
net debt/EBITDA (company-defined) to 3x.
Peer Analysis
Eutelsat's strategy of developing a LEO constellation through the
merger with OneWeb contrasts with SES S.A.'s (BBB/Stable) focus on
building a high-capacity medium-earth orbit constellation with
reasonably low latency to allow for time delay-sensitive
applications such as video conferencing. With both operators
participating in the IRIS2 constellation, this difference may
become less pronounced in future.
Eutelsat's leverage thresholds for the rating are tighter than for
single-country integrated European telecoms operators, such as
Royal KPN N.V. (BBB/Stable), reflecting lower revenue visibility,
higher execution risks, and the negative EBITDA and FCF generation
of LEO services. Eutelsat has lower leverage than wider-diversified
Viasat Inc. (B/Stable) but has higher leverage than SES, faces
higher execution risks around its LEO strategy and more challenging
capex requirements. Eutelsat's rating is notched down once from the
group's consolidated profile.
Key Assumptions
- Mid-to-high single-digit revenue declines in the segments of
GEO-enabled services
- OneWeb operations achieving positive EBITDA by FY28 (year-end
June)
- Sale of ground infrastructure for EUR500 million on a net basis
in FY26
- GEO capex on average at 20% of GEO revenues in FY25-FY29
- Cumulative EUR2.2 billion of capex in the maintenance of the
existing LEO constellation in FY25-FY29
- No dividends
Recovery Analysis
The recovery analysis assumes that Eutelsat would be liquidated
rather than reorganised in bankruptcy. Fitch has assumed a 10%
administrative claim. A liquidation value (LV) approach involves
discounting Eutelsat's book value of balance-sheet assets including
affiliates and estimating the total asset liquidation proceeds.
Under the LV approach, Fitch calculates the total amount available
to creditors after the 10% administration claim at zero.
There is no operating activity at the Eutelsat level, with its key
assets being a 96.3% stake in ESA and a 100% economic interest in
OneWeb. In the event of financial distress, Fitch has assumed zero
value for OneWeb as OneWeb continues to generate negative EBITDA.
Fitch expects the default at Eutelsat to be accompanied by at least
some operating under-performance at ESA but assume that this
subsidiary will continue operating. Operating pressures at ESA may
be triggered by a loss of some large customers or satellite
technical malfunctioning.
Fitch applies a going concern approach to estimate the value of
ESA. Fitch assumes EUR600 million of EBITDA at ESA level and apply
a 4x enterprise value /EBITDA multiple, which is broadly in line
with the observed trading multiples for satellite operators. Fitch
assumes EUR2,461 million of ESA debt, ranking structurally senior
to Eutelsat's own debt.
As only residual equity value is available at Eutelsat's level, the
above assumptions result in zero residual equity value, before
applying a 10% discount for administrative claims. Fitch estimates
the total value of unsecured debt for claims at Eutelsat at EUR400
million. This results in expected recoveries for senior unsecured
debt at 0%, leading to a Recovery Rating of 'RR6'.
RATING SENSITIVITIES
Eutelsat
Factors that Could, Individually or Collectively, Lead to
Downgrade
- Consolidated EBITDA net leverage remaining above 4.5x for an
extended period. In monitoring leverage, Fitch also considers
leverage at Eutelsat (with ESA deconsolidated), including recurring
dividends received from ESA
- Significant pressure on FCF driven by EBITDA erosion as a result
of pricing pressure, protracted contraction of segments, increasing
global overcapacity or new competitive entrants, and
higher-than-expected capital intensity
- Slow progress in achieving sustainably strong EBITDA generation
at OneWeb
- Increasing refinancing risk with weaker access to financial
markets and bank financing but also slow progress in arranging
long-term sustainable funding for OneWeb, including from export
credit agencies
Factors that Could, Individually or Collectively, Lead to Upgrade
- Consolidated EBITDA net leverage sustained at below 4x
- Visibility on cash flow turning positive through the cycle and
that revenue and EBITDA will not be adversely affected by changes
in sector trends and the market structure
- Removal of ringfencing around ESA
Factors that Could, Individually or Collectively, Lead to Revision
of the Outlook to Stable:
- Consolidated EBITDA net leverage consistently below 4.5x
- Progress in addressing upcoming refinancing needs and the funding
of OneWeb development, coupled with evidence of improving OneWeb
performance
ESA
Factors That Could, Individually or Collectively, Lead to
Downgrade
- EBITDA net leverage consistently exceeding 3.5x
- Continuing pressure in GEO segments, leading to lower revenue
visibility and FCF erosion
- Removal or significant loosening of ringfencing provisions but
also wider exposure to group-wide risks including from a wider
exposure to LEO development
Factors That Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- Stronger ringfence around ESA or an improvement in the group-wide
credit profile
Liquidity and Debt Structure
Eutelsat had ample liquidity at end-2024, with EUR692 million of
cash on its balance sheet, supported by a EUR450 million credit
line maturing in April 2027 that can be extended for two 12-month
periods on mutual consent, and an additional EUR100 million credit
facility maturing in June 2027. Eutelsat is facing approximately
EUR1 billion refinancing needs in June-July 2027, followed by
EUR600 million bond maturities each in 2028 and 2029.
Issuer Profile
Eutelsat is a global satellite operator operating a GEO and LEO
constellation, with half of its revenues generated in the
direct-to-home video/TV segment, and another third in connectivity
segments.
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
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
----------- ------ -------- -----
Eutelsat S.A. LT IDR BB Downgrade BB+
senior unsecured LT BB Downgrade RR4 BB+
senior unsecured LT BB Downgrade RR4 BB+
Eutelsat
Communications S.A. LT IDR B Downgrade B+
senior unsecured LT CCC+ Downgrade RR6 B+
LUNE HOLDINGS: Moody's Cuts CFR to 'Caa1', Outlook Remains Negative
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Moody's Ratings downgraded Lune Holdings S.a.r.l.'s (Kem One or the
company) long term corporate family rating and probability of
default rating to Caa1 and Caa1-PD from B3 and B3-PD, respectively.
Concurrently, Moody's downgraded Kem One's existing rating for the
senior secured global notes to Caa2 from Caa1. The outlook remains
negative.
RATINGS RATIONALE
The downgrade reflects Moody's views of Kem One's weak liquidity
and its unsustainable capital structure. Since Moody's last rating
action in October 2024, Moody's lowered Moody's EBITDA expectations
for 2024 and 2025, leading to a need for more additional capital
compared to Moody's previous estimates. Moody's views Kem One's
tight liquidity management and very high leverage indicative of an
aggressive financial policy, which was a key driver of the rating
action.
The European PVC market remains weak due to low construction
activity in Europe, fierce competition among producers, and high
energy costs, despite EU anti-dumping measures on imports from the
US and Egypt. General-purpose PVC margins remain low, and high
production costs compared to global non-European companies make
export markets relatively unattractive for European producers.
Nonetheless, Western Europe remains Kem One's main market.
The company needs a very substantial increase in EBITDA to restore
the sustainability of its capital structure, and Moody's considers
achieving this in 2025 very unlikely as Moody's still expects
challenging market conditions.
Kem One's gross leverage, as adjusted by us, stood at around 39x
for the last twelve months ended September 2024, and Moody's
forecasts gross leverage to be around 14x in 2025. There is a high
degree of uncertainties attached to Moody's forecasts due to Kem
One's volatile performance, stemming from the commodity nature of
the business and operational difficulties. Moody's have revised
Moody's forecasts more frequently than for other chemical
companies. This makes it challenging to forecast when the company
will return to its historical levels of EBITDA.
On a more positive note, the company should benefit from the
technology upgrade at its Fos plant which is expected to operate
soon. Additionally, the company is implementing several operational
initiatives aimed at structurally improving its EBITDA.
NEGATIVE OUTLOOK
The negative outlook reflects its weak rating positioning with
limited headroom for operational underperformance.
LIQUIDITY
Kem One's liquidity is weak. As of the end of September 2024, the
company had around EUR4 million of cash on balance. The company
also drew under its super senior revolving credit facility in
Q4-2024. Additionally, the company recently increased its factoring
amount and sold the bonds it previously held on its balance sheet
in Q1-2025. Given the weak business performance and high capital
expenditures, Moody's expects that the company will need additional
capital to ease its liquidity pressure.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Although unlikely given the lack of visibility and challenged
liquidity, Moody's could upgrade Kem One's rating if the company's
adjusted debt to EBITDA is below 6.5x on a sustained basis;
liquidity profile improves; FCF turns positive again.
Moody's could downgrade Kem One's rating if the company's liquidity
does not improve or operating performance does not improve. A
ratings downgrade could also be prompted if Moody's views on the
probability of a restructuring or distressed exchange increases, or
Moody's expectations on recovery in a default scenario, worsens.
The principal methodology used in these ratings was Chemicals
published in October 2023.
COMPANY PROFILE
Lune Holdings S.a.r.l. (Kem One), based in Lyon, France, is a base
chemicals producer, primarily focused on PVC and caustic soda. The
company has leading market positions in Southern Europe, while it
has limited sales exposure to Northern European countries. The
company has eight manufacturing sites in France and Spain. Since
2021, Kem One is majority owned by funds managed by affiliates of
Apollo.
SNF GROUP: S&P Assigns 'BB+' Rating on EUR550MM Unsecured Notes
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S&P Global Ratings assigned its 'BB+' issue rating and '3' recovery
rating to the proposed EUR550 senior unsecured notes to be issued
by SNF Group (SNF; BB+/Stable/--). The unchanged '3' recovery
rating on the group's total senior unsecured debt, including the
proposed notes, indicates its expectation of meaningful recovery
(50%-70%, rounded estimate: 60%) in the event of a default.
SNF intends to issue the proposed seven-year EUR550 million bond,
and use the proceeds to:
-- Redeem EUR350 million senior notes due 2026, out of the rated
EUR700 million senior unsecured notes outstanding due 2026 and
2029;
-- Pay down the drawings (about EUR200 million) under the existing
revolving credit facility (RCF) together with cash on balance
sheet; and
-- Pay the transaction fees and expenses.
This like-for-like refinancing will not affect leverage metrics and
will strengthen the company's debt maturity and liquidity profile,
releasing almost full RCF availability.
The proposed notes will rank pari-passu with all the group's
existing and future senior unsecured debt. S&P said, "Our 'BB+'
issue rating and '3' recovery rating (60%) on the group's senior
unsecured debt, including the proposed issuance, therefore remains
unchanged. These ratings reflect the notes' unsecured nature and
their structural subordination to the debt at operating
subsidiaries."
For the 12 months ended Dec. 31, 2024, SNF Group reported strong
performance, underpinned by steady demand from key end markets such
as water treatment and oil recovery. This translated into 4.3%
revenue growth year on year, with accelerating volume growth of
9.3% offsetting the 4% price decline. Reported EBITDA of EUR900
million was flat compared with the same period in 2023, with
reported margin at 19.1%, down from 20% in 2023, navigating
volatile prices for raw materials, mainly propylene. This still
translates into record-high S&P Global Ratings-adjusted EBITDA of
about EUR881 million in 2024 compared with EUR854 million in 2023.
Including our adjustments, the margin was flat because of lower
nonrecurring charges.
S&P said, "We anticipate lower profitability for SNF Group in 2025
due to normalizing propylene prices, though EBITDA should remain
strong at EUR750 million-EUR800 million, subject to revision of our
base case as visibility improves throughout the year. We project
negative free operating cash flow (FOCF) in 2025 of EUR25
million-EUR40 million, due to the company's strategy of reinvesting
all cash flows into capacity expansions and growth-related working
capital outflows. This FOCF forecast constrains the rating at
'BB+'. However, the company maintains comfortable rating headroom
at this level, supported by its strong market position, continued
volume growth, resilient EBITDA generation, and funds from
operations (FFO) to debt consistently above 30%."
Issue Ratings--Recovery Analysis
Key analytical factors
-- SNF's outstanding $700 million senior unsecured notes due 2027
and 2030, EUR350 million remaining senior unsecured notes due 2029,
and the new EUR550 million senior unsecured notes are rated 'BB+'.
The recovery rating is '3', indicating recovery prospects within
the 50%-70% range (rounded estimate 60%). S&P does not rate the RCF
but S&P assumes it is 85% drawn at default and that these drawings
rank pari-passu with the group's senior unsecured rated debt.
-- The recovery rating reflects the unsecured nature of the debt
and its structural subordination to the outstanding debt at
operating subsidiaries. S&P highlights that recovery for the
unsecured debtholders would be at the lower end of the range and
that any additional debt issuance could cause it to revise down the
recovery rating on the unsecured debt.
-- Triggers for the hypothetical default scenario assumed in 2030
include heightened price pressure because of intense competition,
rising feedstock prices that cannot be passed through to customers,
a significant and prolonged downturn in the oil and gas industry,
and adverse foreign exchange movements.
-- S&P values SNF as a going concern, given its leading global
market position, presence in defensive sectors, necessity of its
products, and long-term relationships.
Simulated default assumptions
-- Simulated year of default: 2030
-- Jurisdiction: France
Simplified waterfall
-- Emergence EBITDA: EUR312 million (capital expenditure
represents 3.5% of three-year average sales; the cyclicality
adjustment is 5%, in line with the specific industry subsegment).
-- Multiple: 6.0x
-- Gross enterprise value: EUR1,561.9 million
-- Net enterprise value for waterfall after administrative
expenses (5%): EUR1,483.8 million
-- Estimated priority claims: EUR153.3 million*
-- Estimated senior unsecured debt claims: EUR2,238.3 million*
-- Recovery range: 50%-70% (rounded estimate 60%)
-- Recovery rating: 3
*All debt amounts include six months of prepetition interest
TSG SOLUTIONS: S&P Affirms 'B' ICR on Dividend Recapitalization
---------------------------------------------------------------
S&P Global Ratings affirmed its 'B' long-term issuer credit rating
on TSG Solutions Group SAS (TSG) and assigned its 'B' issue rating
and '3' recovery rating to the group's EUR600 million term loan B
(TLB).
The stable outlook reflects our expectation that TSG's leading
market position in multitechnical services for service stations in
Europe, rapidly expanding electric vehicle charging stations
(EVCS), related services business, and bolt-on mergers and
acquisitions will support revenue growth of 20% in fiscal 2026 and
S&P Global Ratings-adjusted EBITDA margins of close to 10%, driving
adjusted debt to EBITDA (leverage) down to 5.3x from 6.2x as of end
fiscal-2025.
The rating action follows TSG's announcement that it plans to issue
a EUR600 million senior secured TLB maturing in 2032. The proceeds
will be used to: Repay the existing EUR420 million TLB; fund a
EUR160 million dividend to shareholders; repay EUR46 million
drawings under the current RCF; and pay EUR7 million of transaction
fees. In addition, the company intends to upsize its senior secured
RCF to EUR135 million from EUR120 million and extend the maturity
by 3.5 years to 2032.
S&P said, "We continue to forecast strong topline growth and solid
profitability for TSG in fiscal years 2025 and 2026, supported by
the rapid growth of its “new energies" services (mainly electric
and solar). We anticipate 14% revenue growth in fiscal 2025 and 20%
revenue growth in fiscal 2026, with organic growth stable at about
9%. The main driver is the very strong rise in demand for
electrical services TSG provides, such as the installation of EVCS
but also the installation of all the infrastructure around it and
the maintenance afterward. Despite a very mature market, TSG has
been able in recent years to maintain its revenue it derives from
traditional service stations equipment maintenance by passing price
increases compensating voluntary attrition of volumes. It has also
been selective on choosing more profitable projects. We expect this
trend to continue going forward. We estimate that facility building
maintenance and system and payments activities will continue to
increase to about 5% per year in coming years as TSG further
increases its prices."
The higher topline will strongly benefit profitability,
particularly in fiscal 2025 where the price increases passed for
service station maintenance contracts will drive an 80 basis points
(bps) improvement in S&P Global Ratings-adjusted EBITDA margins to
9.7%. In fiscal 2026, S&P anticipates a minor 10 bps increase to
9.8% driven by a continuously positive scale effect.
Despite the evolution of the business mix, free operating cash flow
(FOCF) generation will remain at high levels. Because "new
energies" activities do not benefit from payment conditions as
favorable as the "traditional energies" activities, we expect
working outflows of EUR15 million-EUR20 million per year in coming
years compared to inflows or minor outflows historically. However,
EBITDA growth and constantly low working capital requirements of
about 3% of revenue (including capital expenditure [capex] paid
through leases, which account for about 75% of total capex), will
support comfortably positive FOCF generation of about EUR36 million
in fiscal 2025 and EUR46 million in fiscal 2026.
S&P said, "Following the releveraging in fiscal 2025 linked to the
dividend payment, we expect significant deleveraging in fiscal
2026. We forecast S&P Global Ratings-adjusted leverage will
increase to 6.2x by fiscal 2025 before declining to 5.3x by fiscal
2026. Despite an increase of cash interest expense to EUR36 million
in fiscal 2025 and EUR43 million in fiscal 2026 due to the higher
gross debt quantum, we forecast that funds from operations (FFO)
cash interest coverage will remain comfortably above 2.0x, at 2.8x
in fiscal 2025-2026. In our view, TSG will continue to focus on
organic and external growth in coming years, adding EUR70 million
pro forma per year on average to its revenue base through bolt-on
acquisitions.
"The stable outlook indicates that we expect TSG's revenue to
increase and its profitability to expand driven by strong growth in
its “new energies” activities, as well as the resilience of its
legacy services for service stations. We forecast that the S&P
Global Ratings-adjusted debt-to-EBITDA ratio will decrease to 5.3x
by the end of fiscal 2026. TSG will also continue to generate
comfortably positive FOCF and FFO cash interest coverage will
remain comfortably above 2.0x in fiscal 2025-2026.
"We could lower the rating if the company faces a significant
revenue and EBITDA contraction caused by unforeseen adverse
operating developments. For example, a downgrade could be triggered
if the decline in fossil fuel consumption in Europe accelerated,
causing many service stations to close, and the ramp-up in
carbon-free fuels such as gas or electricity was slower than
expected, so that the increase did not fully compensate for the
decline in fossil fuels. In this scenario, credit metrics would
deteriorate, including FOCF turning negative, with no prospects of
a return to positive territory. We could also lower the rating if
FFO cash interest coverage fell below 2.0x for a prolonged period,
or if the company undertook debt-financed acquisitions or made
higher cash returns to shareholders than our expectation.
"We could raise the rating if TSG's credit metrics improved beyond
our expectations, so that adjusted leverage fell below 5.0x, while
FOCF remained sustainably positive. This could occur if there was a
faster transition to electricity and gas as a fuel for vehicles
than we expect, yielding higher demand for TSG's services. An
upgrade would also depend on the financial sponsor committing to
maintaining leverage below 5.0x."
VIRIDIEN: S&P Affirms 'B-' LT ICR & Alters Outlook to Positive
--------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' long-term issuer credit rating
on global seismic services group Viridien and assigned a 'B' issue
rating to the new senior secured notes. At the same time, S&P
revised the outlook on the long-term issuer credit rating to
positive from stable.
The positive outlook is based on a 33% probability that Viridien
will use material positive FOCF to reduce its gross debt and on its
assumption that market conditions for the seismic sector will not
weaken over the next 1-2 years.
Viridien's refinancing of its $1 billion notes due in 2027 improves
the company's capital structure and supports deleveraging. Viridien
has launched the refinancing of its outstanding bonds of EUR585
million and $500 million. The amount of outstanding bonds decreased
after the combined repurchase of $60 million in 2024. The new
envisaged issuance of two $475 million tranches will reduce gross
debt by about $100 million. S&P said, "This debt repayment and
other cash outflows linked to the issuance are cash-funded, which
will reduce S&P Global Ratings-adjusted debt to EBITDA by about
0.3x in 2025 since we do not deduct the company's cash from out
debt metrics. We also view positively the early refinancing of
these notes because it pushes most of Viridien's debt maturities to
2030, which eases the company's debt maturity profile. We factor in
the refinancing of the senior secured RCF, which increases to $125
million from an existing $100 million. This increases Viridien's
headroom for dealing with potential cash generation downturns."
The company's financial policy should support further deleveraging.
S&P said, "Our earnings forecast remains largely unchanged as we
still anticipate that reported EBITDA will reach about $500 million
in 2025, with a potential to increase further. This is supported by
positive market conditions, the large revenue backlog in Viridien's
geoscience division of $351 million at year-end 2024, and the end
of the Shearwater contract, which expired in January 2025 and had
caused costs of about $50 million annually. Over the past couple of
years, Viridien transitioned toward an asset-light model, which, in
our view, improves cash flow generation and prevents cash burn in
market downturns. This could enable the company to improve FOCF
generation to at least $100 million annually over the next couple
of years, despite high annual capital expenditure (capex) of about
$300 million, which is mainly linked to growth funding in the earth
data division. We note, however, that the company has a track
record of not always fully meeting its targeted operating results
due to difficult market conditions, one-off items, and higher
investments."
"We understand that the company's financial policy targets
continued deleveraging using excess cash flow, as was the case with
the $60 million debt buyback in 2024. This could enable the company
to reduce leverage below 4.0x over the next 12-18 months, from
about 4.5x at year-end 2025 and pro forma the refinancing, which
could be commensurate with a higher rating. That said, the
deleveraging trajectory relies on continued positive market
momentum fueling EBITDA growth and FOCF generation used for debt
reduction. Therefore, we have recognized the potential improvement
in credit metrics through the outlook revision to positive from
stable.
"The positive outlook reflects the 33% probability that the company
will use material positive FOCF to reduce its gross debt further
and our expectation that market conditions for the seismic sector
will not weaken over the next 1-2 years.
"Under our base-case scenario, we forecast reported EBITDA of about
$500 million and FOCF of $50 million-$100 million in 2025, which
could improve debt to EBITDA to about 4.0x.
"We could revise the outlook to stable from positive over the next
12-18 months if Viridien was unable to reduce adjusted leverage
toward 4.0x or below. This scenario could materialize in the case
of an adverse market environment, major operational issues, or the
company's inability to generate FOCF of at least $50 million under
normal conditions.
"We could upgrade Viridien over the next 12-24 months if the
company managed to reduce further its gross debt burden or
sustainably increased its EBITDA well above $500 million, which
would reduce adjusted debt to EBITDA well below 4.0x."
=============
I R E L A N D
=============
HARVEST CLO XV: Moody's Affirms B1 Rating on EUR13.5MM F-R Notes
----------------------------------------------------------------
Moody's Ratings has upgraded the ratings on the following notes
issued by Harvest CLO XV DAC:
EUR24,200,000 Class D-R Senior Secured Deferrable Floating Rate
Notes due 2030, Upgraded to Aa1 (sf); previously on Oct 11, 2024
Upgraded to A2 (sf)
EUR23,100,000 Class E-R Senior Secured Deferrable Floating Rate
Notes due 2030, Upgraded to Baa3 (sf); previously on Oct 11, 2024
Upgraded to Ba1 (sf)
Moody's have also affirmed the ratings on the following notes:
EUR15,000,000 (Current outstanding amount EUR12,840,254) Class
A-2-R Senior Secured Floating Rate Notes due 2030, Affirmed Aaa
(sf); previously on Oct 11, 2024 Affirmed Aaa (sf)
EUR41,600,000 Class B-1-R Senior Secured Floating Rate Notes due
2030, Affirmed Aaa (sf); previously on Oct 11, 2024 Affirmed Aaa
(sf)
EUR5,000,000 Class B-2-R Senior Secured Fixed Rate Notes due 2030,
Affirmed Aaa (sf); previously on Oct 11, 2024 Affirmed Aaa (sf)
EUR31,500,000 Class C-R Senior Secured Deferrable Floating Rate
Notes due 2030, Affirmed Aaa (sf); previously on Oct 11, 2024
Upgraded to Aaa (sf)
EUR13,500,000 Class F-R Senior Secured Deferrable Floating Rate
Notes due 2030, Affirmed B1 (sf); previously on Oct 11, 2024
Affirmed B1 (sf)
Harvest CLO XV DAC, issued in May 2016 and refinanced in May 2018,
is a collateralised loan obligation (CLO) backed by a portfolio of
mostly high-yield senior secured European loans. The portfolio is
managed by Investcorp Credit Management EU Limited. The
transaction's reinvestment period ended in May 2022.
RATINGS RATIONALE
The rating upgrades on the Class D-R and E-R 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 October 2024.
The affirmations on the ratings on the Class A-2-R, B-1-R, B-2-R,
C-R and F-R notes are primarily a result of the expected losses on
the notes remaining consistent with their current rating levels,
after taking into account the CLO's latest portfolio, its relevant
structural features and its actual over-collateralisation ratios.
The senior notes have paid down by EUR79.3 million since the last
rating action in October 2024. On the most recent payment date in
February, the Class A-1A-R and A-1B-R notes have been fully
redeemed and the Class A-2-R notes have been paid down by EUR2.2
million. As a result of the deleveraging, over-collateralisation
(OC) has increased across the capital structure. According to the
trustee report dated February 2025 [1] the Class A/B, Class C,
Class D, Class E and Class F ratios are reported at 219.5%, 163.8%,
137.1%, 118.6% and 109.9% compared to August 2024 [2] levels, on
which the last rating action was based, of 180.5%, 147.1%, 128.9%,
115.2% and 108.4%, respectively. Moody's notes that the February
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 uses 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: EUR171.6m
Diversity Score: 38
Weighted Average Rating Factor (WARF): 3372
Weighted Average Life (WAL): 2.86 years
Weighted Average Spread (WAS) (before accounting for Euribor
floors): 3.83%
Weighted Average Coupon (WAC): 4.04%
Weighted Average Recovery Rate (WARR): 44.3%
The default probability derives from the credit quality of the
collateral pool and Moody's expectations of the remaining life of
the collateral pool. The estimated average recovery rate on future
defaults is based primarily on the seniority of the assets in the
collateral pool. In each case, historical and market performance
and a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporates these default and recovery
characteristics of the collateral pool into 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, such as account bank, 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.
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.
OAK HILL IV: Fitch Affirms 'B+sf' Rating on Class F-R Notes
-----------------------------------------------------------
Fitch Ratings has upgraded Oak Hill European Credit Partners IV
DAC's Class C-R notes and affirmed the others.
Entity/Debt Rating Prior
----------- ------ -----
Oak Hill European
Credit Partners IV DAC
A-1-R XS1736667723 LT AAAsf Affirmed AAAsf
A-2-R XS1736668614 LT AAAsf Affirmed AAAsf
B-1-R XS1736669422 LT AAAsf Affirmed AAAsf
B-2-R XS1736670198 LT AAAsf Affirmed AAAsf
C-R XS1736670784 LT AA+sf Upgrade AAsf
D-R XS1736671246 LT A-sf Affirmed A-sf
E-R XS1736671592 LT BB+sf Affirmed BB+sf
F-R XS1736671915 LT B+sf Affirmed B+sf
Transaction Summary
Oak Hill European Credit Partners IV DAC is a cash flow CLO mostly
comprising senior secured obligations. The transaction is actively
managed by Oak Hill Advisors, LLP and exited its reinvestment
period in January 2022.
KEY RATING DRIVERS
Amortisation Increases Credit Enhancement: The transaction has
deleveraged, with the class A-1-R and A-2-R notes having been paid
down by about EUR69 million since its last review in June 2024.
This has resulted in a notable increase in credit enhancement (CE),
and led to the upgrades. The portfolio has approximately EUR300,000
of defaulted assets and exposure to assets with a Fitch-derived
rating of 'CCC+' and below is 8.5% as reported by the trustee,
versus a limit of 7.5%. The portfolio's total par loss remains
below its rating-case assumptions.
'B'/'B-' Portfolio: Fitch assesses the average credit quality of
the transaction's underlying obligors at 'B'/'B-'. The weighted
average rating factor (WARF) of the current portfolio, as
calculated by Fitch under its latest criteria, is 26.7.
High Recovery Expectations: Senior secured obligations comprise
99.9% of the portfolio. Fitch views the recovery prospects for
these assets as more favourable than for second-lien, unsecured and
mezzanine assets. The Fitch-calculated weighted average recovery
rate (WARR) of the current portfolio under its latest criteria is
62.5%.
Diversified Portfolio: The portfolio is well-diversified across
obligors, countries and industries. As calculated by the trustee,
the top-10 obligor concentration is 21.2%, no obligor represents
more than 2.4% of the portfolio balance, and exposure to the three
largest Fitch-defined industries is 36.4%. Fixed-rate assets are
reported by the trustee at 4.0% of the portfolio balance, versus a
limit of 7.5%.
Transaction Outside Reinvestment Period: The transaction exited its
reinvestment period in January 2022, and the most senior notes are
deleveraging as not all proceeds are reinvested. The manager can
reinvest unscheduled principal proceeds and sale proceeds from
credit improved/impaired obligations after the reinvestment period,
subject to compliance with the reinvestment criteria. Since Fitch's
last rating action in June 2024, the transaction has started
failing the Fitch CCC, Fitch WARF and another rating agency's WARF
tests. However, the manager can continue to reinvest on a maintain
and improve basis.
Given the manager's ability to reinvest, Fitch's analysis is based
on a stressed portfolio using its collateral quality matrix
specified in the transaction documentation. Fitch also applied a
haircut of 1.5% to the WARR as the calculation of the WARR in the
transaction documentation is not in line with its latest CLO
Criteria.
Cash Flow Analysis: Fitch used a customised proprietary cash flow
model to replicate the principal and interest waterfalls and the
various structural features of the transaction, and to assess their
effectiveness, including the structural protection provided by
excess spread diverted through the par-value and interest-coverage
tests.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
Based on the current portfolio, downgrades may occur if the loss
expectation is larger than initially assumed, due to unexpectedly
high levels of default and portfolio deterioration.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Upgrades may result from stable portfolio credit quality and
deleveraging, leading to higher CE and excess spread available to
cover losses in the remaining portfolio.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.
The majority of the underlying assets or risk presenting entities
have ratings or credit opinions from Fitch and/or other Nationally
Recognized Statistical Rating Organizations and/or European
Securities and Markets Authority registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk presenting entities.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG Considerations
Fitch does not provide ESG relevance scores for Oak Hill European
Credit Partners IV DAC.
In cases where Fitch does not provide ESG relevance scores in
connection with the credit rating of a transaction, programme,
instrument or issuer, Fitch will disclose any ESG factor that is a
key rating driver in the key rating drivers section of the relevant
rating action commentary.
SONA FIOS IV: Fitch Assigns 'B-sf' Final Rating on Class F Notes
----------------------------------------------------------------
Fitch Ratings has assigned SONA FIOS CLO IV DAC final ratings.
Entity/Debt Rating Prior
----------- ------ -----
Sona Fios CLO IV DAC
Class A Loan LT AAAsf New Rating
Class A XS2988520982 LT AAAsf New Rating AAA(EXP)sf
Class B XS2988521105 LT AAsf New Rating AA(EXP)sf
Class C XS2988521444 LT Asf New Rating A(EXP)sf
Class D XS2988521527 LT BBB-sf New Rating BBB-(EXP)sf
Class E XS2988522335 LT BB-sf New Rating BB-(EXP)sf
Class F XS2988522418 LT B-sf New Rating B-(EXP)sf
Class X Loan LT AAAsf New Rating
Class X XS2988521956 LT AAAsf New Rating AAA(EXP)sf
Subordinated notes
XS2988522848 LT NRsf New Rating NR(EXP)sf
Transaction Summary
SONA FIOS CLO IV DAC is a securitisation of mainly senior secured
obligations (at least 90%) with a component of senior unsecured,
mezzanine, second-lien loans and high-yield bonds. Note proceeds
have been used to purchase a portfolio with a target par of EUR450
million. The portfolio is actively managed by Sona Asset Management
(UK) LLP. The CLO has a 4.6-year reinvestment period and an
8.5-year weighted average life test (WAL).
KEY RATING DRIVERS
Average Portfolio Credit Quality (Neutral): Fitch assesses the
average credit quality of obligors to be in the 'B' category. The
Fitch weighted average rating factor of the identified portfolio is
23.6.
High Recovery Expectations (Positive): At least 90% of the
portfolio comprises senior secured obligations. Fitch views the
recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets. The Fitch weighted
average recovery rate of the identified portfolio is 60.6%.
Diversified Portfolio (Positive): The transaction has two Fitch
matrix sets, one effective at closing and one effective a year
later. The matrices within each set correspond to a top 10 obligor
concentration limit at 20%, a fixed-rate asset limit at 12.5% or
7.5%, and an 8.5-year at the closing matrix set and a 7.5-year WAL
test in the forward matrix set.
The transaction includes various concentration limits in the
portfolio, including a maximum exposure to the three-largest
Fitch-defined industries at 40%. These covenants ensure the asset
portfolio will not be exposed to excessive concentration.
Portfolio Management (Neutral): The transaction has a 4.6-year
reinvestment period and includes reinvestment criteria similar to
those of other European transactions. Fitch's analysis is based on
a stressed-case portfolio with the aim of testing the robustness of
the transaction structure against its covenants and portfolio
guidelines.
Cash Flow Modelling (Positive): The WAL used for the transaction's
Fitch-stressed portfolio is reduced by 12 months from the WAL
covenant. This reduction is to account for the strict reinvestment
conditions envisaged by the transaction after its reinvestment
period. These include passing both the coverage tests and the Fitch
'CCC' test post- reinvestment as well as a WAL covenant that
progressively steps down over time. Fitch believes these conditions
would reduce the effective risk horizon of the portfolio during
stress periods.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
A 25% increase of the mean default rate (RDR) and a 25% decrease of
the recovery rate (RRR) across all ratings of the identified
portfolio would lead to a downgrade of one notch each for all notes
and debt apart from the class A and X notes.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
A 25% reduction of the mean RDR and a 25% increase in the RRR
across all ratings of the Fitch-stressed portfolio would lead to
upgrades of up to three notches each, except for the 'AAAsf' rated
notes.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
The majority of the underlying assets or risk-presenting entities
have ratings or credit opinions from Fitch and/or other nationally
recognised statistical rating organisations and/or European
securities and markets authority-registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk-presenting entities.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG Considerations
Fitch does not provide ESG relevance scores for Sona Fios CLO IV
DAC.
In cases where Fitch does not provide ESG relevance scores in
connection with the credit rating of a transaction, programme,
instrument or issuer, Fitch will disclose any ESG factor that is a
key rating driver in the key rating drivers section of the relevant
rating action commentary.
=========
I T A L Y
=========
AUTOFLORENCE 3: Fitch Hikes Rating on Class E Notes to 'BB-sf'
--------------------------------------------------------------
Fitch Ratings has upgraded Autoflorence 3 S.r.l.'s (AF3)
asset-backed securities class D and E notes, while affirming the
rest. Fitch has also affirmed Autoflorence 2 S.r.l. (AF2) as
detailed below.
Entity/Debt Rating Prior
----------- ------ -----
Autoflorence 2 S.r.l.
Class A IT0005456949 LT AAsf Affirmed AAsf
Class B IT0005456956 LT A+sf Affirmed A+sf
Class C IT0005456964 LT Asf Affirmed Asf
Class D IT0005456972 LT A-sf Affirmed A-sf
Class E IT0005456980 LT BBBsf Affirmed BBBsf
Autoflorence 3 S.r.l.
Class A notes IT0005545709 LT AAsf Affirmed AAsf
Class B notes IT0005545717 LT A+sf Affirmed A+sf
Class C notes IT0005545725 LT BBBsf Affirmed BBBsf
Class D notes IT0005545733 LT BB+sf Upgrade BBsf
Class E notes IT0005545741 LT BB-sf Upgrade B+sf
Transaction Summary
The transactions are securitisations of Italian auto loans
originated by Findomestic Banca S.p.A., which specialises in
consumer lending and is part of BNP Paribas SA (A+/Stable/F1).
KEY RATING DRIVERS
Revised Asset Assumptions Support Upgrades: Fitch has lowered the
'AAsf' default multiple for AF3 to 4.25x, from 4.5x, as the deal
exited its revolving period in June 2024. Fitch now models the
current portfolio composition rather than the Fitch-stressed
portfolio at closing in June 2023. At the January 2025 payment
date, AF3's 0.9% cumulative defaults were within its expectations,
while recoveries were at 12.2%. AF2 asset assumptions are
unchanged.
Sequential Switch Protects Tail Risk: For both deals, the class A
to F notes can repay pro rata until a sequential redemption event
occurs, which happens if cumulative defaults on the portfolio
exceed certain thresholds or an uncleared principal deficiency
ledger is recorded. The mandatory switch to sequential paydown when
the outstanding collateral balance falls below 10% successfully
mitigates tail risk.
Payment Interruption Risk Mitigated: Principal can be drawn to
cover senior fees and interest shortfall on the class A to C notes
for AF2 and for class A to E notes for AF3. If principal drawings
are insufficient to cover shortfall and if interests are not
deferred, a liquidity reserve available to the class A to C notes
for AF2 and to the class A to E notes for AF3 can be used.
The class D and E notes interest of AF2 is paid ultimately by the
notes' legal final maturity, unlike the class A to C notes, which
receive timely interest payments when they are most senior.
'AAsf' Sovereign Cap: The class A notes are rated 'AAsf', six
notches above Italy's rating (BBB/Positive/F2), which is the
highest achievable rating for Italian structured finance and
covered bonds. The Positive Outlook on the senior notes reflects
that on the sovereign Long-Term Issuer Default Rating (IDR).
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
The ratings of the class A notes are sensitive to changes to
Italy's Long-Term IDR and Outlook. A revision of the Outlook on
Italy's IDR to Stable would trigger a similar action on the ratings
of the class A notes.
An unexpected increase in the frequency of defaults or decrease of
the recovery rates could produce losses larger than the base case.
For example, a simultaneous increase of the default base case by
25% and a decrease of the recovery base case by 25% would lead to
downgrades of up to three notches each from the notes'
model-implied ratings.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
An upgrade of Italy's IDR and a revision of the related rating cap
for Italian structured finance transactions could trigger an
upgrade of the class A notes, provided available credit enhancement
is sufficient to withstand stresses associated with higher
ratings.
The notes could be upgraded if the transaction's performance is in
line with Fitch's expectations and credit enhancement is sufficient
to withstand stresses at higher ratings. An unexpected decrease in
the frequency of defaults or increase in recovery rates that would
produce smaller losses than the base case could result in positive
rating action. For example, a simultaneous decrease in the default
base case by 25% and increase in the recovery base case by 25%
would lead to upgrades of up to three notches each from the notes'
model-implied ratings.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Prior to the transactions closing, Fitch reviewed the results of a
third-party assessment conducted on the asset portfolio information
and concluded that there were no findings that affected the rating
analysis.
Prior to the transactions closing, Fitch conducted a review of a
small targeted sample of the originator's origination files and
found the information contained in the reviewed files to be
adequately consistent with the originator's policies and practices
and the other information provided to the agency about the asset
portfolio.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
DEDALUS SPA: Moody's Affirms 'B3' CFR & Alters Outlook to Stable
----------------------------------------------------------------
Moody's Ratings affirmed Dedalus S.p.A.'s B3 long term corporate
family rating and B3-PD probability of default rating.
Concurrently, Moody's affirmed the B3 instrument ratings on senior
secured term loan B (term loan) due May 2027 and senior secured
revolving credit facility (RCF) due November 2026 both issued by
Dedalus Finance GmbH. The outlook on both entities changed to
stable from negative.
RATINGS RATIONALE
The rating action reflects Dedalus's solid operating performance in
2024, leading to improved key credit metrics, in particular modest
but positive Free Cash Flow (FCF) generation, and expectations of
continued improvement over the next 12-18 months. Adequate
liquidity, including Moody's expectations of a timely refinancing
of revolving credit facility (RCF) due in November 2026 and term
loan due in May 2027 at manageable cost of debt such that FCF
remains sustainable positive, further supports the stable outlook
and B3 rating.
Moody's expects EBITDA to improve, supported by Dedalus' strong
position in healthcare software solutions market, which has good
fundamentals for growth, and operational improvement measures
actioned by current management since end of 2023. However, the
company's financial profile will likely remain stretched, with
Moody's adjusted (EBITDA – Capex) / Interest coverage of around
1.5x in 2025 (0.9x in 2024) and FCF/debt at 1-2% in 2025 (FCF at
0.3% in 2024).
In 2024, Dedalus showed operating improvement with expectations for
like-for-like revenue and company-adjusted EBITDA growth of 4.5%
and 5.9%, respectively, and positive FCF (after interest paid,
before disposal) of EUR4 million (vs. negative EUR16 million in
2023), based on current trading. The company made progress on cash
collections, and fully stabilized its ERP system. Order intake was
solid, with a 9% year-over-year increase in 2024, and recurring
revenue supports future topline growth. Moody's forecasts
high-single-digit revenue growth over the next 12-18 months, driven
by new customer wins and up and cross-selling, with no material
external growth expected.
Dedalus implemented several efficiency measures in 2024, such as
discontinuing operations in smaller and less profitable markets in
the US and China, disposing of non-core assets, and restructuring.
These measures are expected to support improvements in EBITDA
margin in 2025, with management expectation of EUR20 million of
run-rate EBITDA gains on an annualized basis since implementation.
Additionally, a reduction in one-off items related to restructuring
will support improvement in Moody's adjusted EBITDA in 2025 and
reduce the gap between management adjusted EBITDA and Moody's
adjusted EBITDA. Furthermore, the company took measures to
stabilize its R&D expenditure, which will support FCF generation
going forward.
Dedalus' leading market position with a highly stable customer base
in the healthcare segment and a high share of recurring revenues
and the currently ongoing market push by regulation and shift
towards technology support the B3 CFR. The strategy review,
including a pause in acquisitive strategy and focus on higher
governance and control structures, after the consortium led by
PE-sponsor Ardian increased its equity stake in the company by 19%
to 92% and appointed a new CEO in October 2023, also supports the
B3 CFR.
Nevertheless, the company's high leverage, Moody's-adjusted
debt/EBITDA after exceptionals and after capitalization of software
development costs of around 7.5x in 2024 (plus PIK note outside of
the restricted group, equivalent to around 1.6x of Moody's adjusted
EBITDA) constrains the rating. Additionally, the healthcare
software sector is fragmented and typically has lower profit
margins than other software sectors due to the complexity of
implementation and specific product requirements. However, this
sector is expected to grow by at high single-digit rate, driven by
the ongoing need to invest in healthcare IT to reduce costs.
OUTLOOK
The stable outlook reflects Moody's expectations of improvement in
operating performance, such that FCF remains sustainably positive,
(EBITDA-Capex)/ Interest improves to above 1.25x and liquidity
remains adequate, including expectations for the company to address
debt maturities of RCF and term loan well in advance (at least 12
months in advance), at manageable cost of debt.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Dedalus' ratings could be upgraded with Moody's-adjusted
debt/EBITDA sustainably below 6.0x; Moody's-adjusted FCF/debt
sustainably above 5%; and the company maintains a prudent financial
policy without any shareholder distributions or debt-funded
acquisitions.
Downward pressure on Dedalus' ratings would build, if (1) the
company's liquidity weakens, or (2) Moody's adjusted debt/EBITDA is
above 7.5x or (3) FCF turns negative, or (4) Moody's adjusted
(EBITDA-capex) / Interest sustainably below 1.25x. Lack of
progress on timely refinancing of the RCF would also cause downward
pressure.
LIQUIDITY
Dedalus has adequate liquidity. Liquidity sources consist of around
EUR68 million cash on balance sheet as of the end of December 2024
and EUR109 million of availability under its EUR165 million RCF,
and Moody's expectation of positive FCF generation in the next
12-18 months. The RCF matures in November 2026, and entails one
springing financial covenant at the defined net leverage level,
only tested when the facility is drawn by more than 40%. Moody's
expects sufficient headroom under the covenant test level.
Dedalus uses factoring without recourse programs to support its
liquidity (around EUR55 million drawn out of EUR80 million as of
December 2024). These factoring facilities have short maturities of
up to 18 months and can lead to liquidity needs for the company if
not extended.
The company has RCF maturing in November 2026 and the term loan
maturing in May 2027. Its PIK notes outside of restricted group
mature in November 2027.
STRUCTURAL CONSIDERATIONS
The RCF ranks pari passu to the senior secured term loan B, hence
both instruments are rated B3 in line with the CFR.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Software
published in June 2022.
COMPANY PROFILE
Dedalus S.p.A. (Dedalus), which is based in Italy, provides
healthcare software solutions for the healthcare industry, serving
each actor in the healthcare ecosystem (including hospitals,
clinics, diagnostics centers, laboratories, national / regional
systems and life science organizations). The company's
self-developed software suite includes an electronic medical
record, patient administration system,diagnostic information system
for radiologists, laboratories, diagnostic centers, anatomical
pathologists (both in-vivo and in-vitro diagnostic), ERP and
Analytics. The group is owned and controlled by a consortium led by
Ardian. In 2024, Dedalus expects to generate revenue of EUR899
million and company-adjusted EBITDA of EUR226 million.
===================
L U X E M B O U R G
===================
WINTERFELL FINANCING: Fitch Lowers IDR to 'B-', Outlook Stable
--------------------------------------------------------------
Fitch Ratings has downgraded Winterfell Financing S.a.r.l.'s
(Stark) Long-Term Issuer Default Rating (IDR) to 'B-' from 'B'. The
Outlook is Stable. Fitch has also downgraded Stark's secured debt
to 'B-' from 'B+'. The Recovery Rating has been revised to 'RR4'
from 'RR3'.
The downgrade reflects a sharp deterioration in Stark's EBITDA
versus its previous expectations due to protracted weakness in the
residential end-markets. This leads to weaker cash flows, higher
debt and leverage, and weaker interest coverage, which Fitch
expects to persist due to the still uncertain timing of the
recovery in new-build residential markets, especially in Germany.
However, Fitch expects Stark to recover to within the updated
rating sensitivities in the short term, supporting Stable Outlook.
The senior secured debt downgrade reflects higher non-recourse
factoring drawdown resulting in a higher amount of prior-ranking
debt, leading to a lower ranked recovery band for the senior
secured debt.
Key Rating Drivers
Temporarily Constrained EBITDA: Stark underperformed its
expectations in FY24 (financial year ending July) and 1QFY25 mainly
due to protracted weakness in residential end-markets, especially
in new build. Fitch expects that nominal Fitch-defined EBITDA will
remain weak in FY25 at about EUR180 million-EUR190 million (EUR135
million in FY24), followed by a gradual recovery to about EUR300
million in FY26 and EUR360 million in FY27. This will be mainly
driven by recovering new-build residential demand, increased
spending on repair, maintenance and improvements (RMI) and
increasing margins.
Fitch expects a gradual recovery of the group's Fitch-defined
EBITDA margin by about 3pp by FY28 from FY24-FY25. The margin
increase will be supported by gradual demand recovery, continued
progress in cost-saving initiatives and ongoing turnaround of the
UK distribution business (SGBDUK), which Stark acquired from
Compagnie de Saint-Gobain in March 2023.
High Leverage, Delayed Deleveraging: Fitch expects continued
elevated near-term leverage at about 13x at end-FY25 and 8x at
end-FY26. This is driven by weak operating profitability combined
with an increase in Fitch-defined debt in FY25 due to higher
non-recourse factoring drawdown (used to optimise working capital
and support liquidity).
Gradual Recovery in Residential End-Markets: Fitch assumes a
gradual and uneven recovery in the housing end-market across the
group's key geographic markets. Fitch expects recovery in the UK
and the Nordics to have started in FY25. However, Fitch assumes a
delayed recovery in Germany from 2026, as there are still no clear
signs of immediate improvement. The recovery will be supported by
improving financing conditions due to interest rate cuts providing
mortgage finance improvements, plus pent-up demand (for both
new-build and RMI) and a more stable input cost environment than
previous years.
Volatile FCF: Fitch expects Stark to generate neutral to slightly
positive free cash flow (FCF) in FY26-FY27, following temporary
high cash consumption in FY24-FY25 driven by weak demand and high
non-recurring outflows, mainly related to the integration of
SGBDUK. The unencumbered real estate portfolio provides additional
financial flexibility. The group has a portfolio of around EUR1
billion of owned real estate assets.
Solid Business Profile: Stark's business profile is mainly
underpinned by its leading positions in the heavy building
materials distribution markets in the Nordics and Germany. The
SGBDUK purchase improved Stark's geographic diversification by
giving it the second-largest building merchant's platform in the
UK. The group's diversification is supported by its extensive
branch coverage, with proximity to the largest-growing urban areas
as well as limited supplier and customer concentration.
Exposure to Cyclical End-Markets: The business profile is mainly
limited by its exposure to cyclical construction end-markets,
especially the housing market, and intense competition in the
fragmented distribution market. This is mitigated by its focus on
the more resilient RMI end-markets (around 70% of gross profit). In
FY24-FY25, the group's performance was hit by sharp declines in
housing markets, resulting in steep volume declines and
deflationary pressures.
Peer Analysis
Fitch views Stark's business profile as somewhat weaker than
Quimper AB's (Ahlsell; B+/Stable), a leading Nordic distributor of
installation products, tools and supplies to professional
customers. Both companies benefit from strong market positions,
significant scale of operations and sound diversification with
fairly broad product offerings, large exposure to renovation
end-markets and limited customer and supplier concentration.
Stark's broader geographic footprint is more than offset by
Ahlsell's stronger end-market diversification, given its exposure
to infrastructure and industry end-markets and lower reliance on
the cyclical residential end-market.
Both companies' ratings are constrained by leverage. Ahlsell's
financial profile is stronger than that of Stark, based on lower
expected leverage and stronger profitability, supported by higher
EBITDA margins and FCF generation.
Key Assumptions
Fitch's Key Assumptions Within its Rating Case for the Issuer
- Revenue of EUR7.8 billion in FY25, growing by low to mid-single
digits each year in FY26-FY28
- Fitch-defined EBITDA will remain weak in FY25 at about EUR180
million-EUR190 million (EUR135 million in FY24), followed by a
gradual recovery to about EUR300 million in FY26 and EUR360 million
in FY27 mainly on recovering residential demand and increasing
margins
- No significant working capital outflows in FY25-FY28
- Average annual M&A of EUR20 million in FY26-FY28
- Capex at 1.7-1.8% of revenue annually in FY25-FY26 and 1.4%
annually in FY27-FY28
- No dividends
Recovery Analysis
The recovery analysis assumes that Stark would be reorganised as a
going-concern (GC) in bankruptcy rather than liquidated. It
reflects Stark's market position, dense network of branches, own
portfolio of brands and potential for further consolidation in the
fragmented distribution market.
Fitch has assumed a 10% administrative claim.
Fitch estimates a GC EBITDA of EUR280 million for Stark, which
reflects its view of a sustainable, post-reorganisation EBITDA
level, upon which Fitch bases the enterprise valuation (EV). It
reflects intense market competition and a failure to broadly pass
on raw material cost inflation together with an inability to
successfully extract acquisition synergies.
An EV multiple of 5.5x is applied to the GC EBITDA to calculate a
post-reorganisation EV. The multiple reflects Stark's leading
position across the Nordics and German heavy materials distribution
market, significant scale and strong asset quality with a large
owned real estate portfolio located near growing urban areas. The
multiple is in line with that of Nordic building material
distributor Ahlsell.
Its waterfall analysis generates a ranked recovery for the EUR1.8
billion term loan B (TLB) in the 'RR4' category, leading to a 'B-'
rating. The waterfall-generated recovery computation is 45%, down
from 54% mainly due to higher non-recourse factoring drawdown.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
- EBITDA leverage above 9.0x on a sustained basis
- EBITDA interest coverage below 1.5x on a sustained basis
- Consistently negative FCF
- Problems with integration of acquisitions or increased debt
funding
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
- EBITDA leverage below 7.5x on a sustained basis
- EBITDA margin above 4.0% on a sustained basis
- Neutral FCF on a sustained basis
Liquidity and Debt Structure
At 31 October 2024, Stark had about EUR86 million of readily
available cash (excluding Fitch's adjustment for EUR87 million
intra-year working-capital swings) and had access to EUR331 million
under its partially drawn committed revolving credit facility of
about EUR371 million, maturing in November 2027. It has no
significant short-term debt maturities (apart from its non-recourse
factoring, committed for 30-36 months, viewed by Fitch as
short-term). Fitch estimates about EUR200 million negative FCF in
FY25 to be covered by increased non-recourse factoring drawdown.
Fitch expects broadly neutral FCF in FY26. The group's financial
flexibility is supported by its unencumbered real estate portfolio
of about EUR1 billion.
Stark's total debt of about EUR2.3 billion is concentrated in its
EUR1,795 million TLB maturing in May 2028. Other debt mainly
comprised mortgage loans and non-recourse factoring. In December
2025, the group signed new EUR480 million non-recourse factoring
facility and Fitch assumes about 75% drawdown from end-FY25 to
end-FY28.
Issuer Profile
Stark is a leading business-to-business distributor of heavy
building materials focused on the Nordics, the UK and Germany.
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
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
----------- ------ -------- -----
Winterfell
Financing S.a.r.l. LT IDR B- Downgrade B
senior secured LT B- Downgrade RR4 B+
=========
M A L T A
=========
MAS PLC: Moody's Affirms 'B1' CFR & Alters Outlook to Positive
--------------------------------------------------------------
Moody's Ratings has affirmed the B1 corporate family rating of MAS
P.L.C. and the B2 backed senior unsecured notes rating issued by
MAS Securities B.V. The outlook for both issuers changed to
positive from negative.
RATINGS RATIONALE
The outlook change to positive reflects the combination of
prospects of a simplified group structure enhancing the risk
profile of the company that may outweigh a premium paid by MAS for
the assets, a reducing funding gap following a disposal and
progress on other financing transactions, as well as ongoing good
operating performance of MAS' retail assets and its tenants. At the
same time some execution risks to meet the funding gap for its May
2026 bond maturities remain.
On March 03, 2025, MAS announced it entered into an agreement with
its joint venture partner Prime Kapital to terminate their
development joint venture (DJV) arrangements between MAS and Prime
Kapital, whose main shareholders are also MAS' largest
shareholders. The assets of the DJV would effectively be split
between the JV partners. Under the proposal, MAS will be the sole
owner of the DJV and its existing retail asset going forward, while
Prime Kapital will receive the MAS shares owned by the DJV, receive
residential assets and the development pipeline owned by the DJV,
as well as a cash payment estimated to EUR89.9 million. MAS has an
option to settle part of the purchase price with an unsecured note
to be sold to Prime Kapital, which is subject to separate
shareholder approval. While the DJV transaction would result in a
cash outflow ahead of MAS' bond maturity in May 2026, it would
improve MAS' business profile as it simplifies the group structure
and reduces governance complexity, which are relevant factors for
this rating action. A relatively large part of MAS' balance sheet
is the investment in preferred equity issued by the DJV, in which
MAS is a minority partner only and lacks control. Indirect
development exposure would also decrease, while Moody's recognises
a high price being contemplated in the transaction.
Given the large unencumbered asset base of the DJV, the transaction
would also increase MAS' funding options. MAS also announced the
intention to resume dividends. Future changes to credit quality
will depend on MAS' ability to address the remaining execution risk
for MAS bond. Moody's understands the DJV transaction is subject to
shareholder approval until June 2025, including decisions about the
resumption of dividend payments.
MAS sold a number of strip malls in Romania, improving liquidity by
roughly EUR40 million and reducing further potential outflows to
the DJV. MAS also accessed further secured funding that helped to
bridge the still existing, but narrowing funding gap to meet all
requirements including MAS Securities B.V.'s outstanding EUR173
million backed senior unsecured bond maturing in May 2026. While
MAS does not have much flexibility to further encumber its asset
base, the continued good operating performance of its asset base
improves funding access independent of the DJV transaction.
Operating performance remained solid in H1 ending December 31,
2024. The company reported a 7.3% passing net rental income growth
for its CEE, aligned with a 7.8% tenant sales growth that keeps OCR
at an affordable 10.6%. Rent reversion at 9.5% and almost full
occupancy round up a set of good operating figures. CEE property
values increased by 4.1% in the 6 months to December 2024,
moderated by a small loss on its German asset. As a consequence,
MAS' key credit metrics remain strong for its ratings, with
Moody's-adjusted debt/total assets of just above 31% and net
debt/EBITDA (excluding DJV preferred equity accruing coupon) of
6.3x.
LIQUIDITY
Liquidity for MAS is adequate in the next 12 months but continues
to require execution of measures to increase sources to meet MAS
Securities B.V.'s outstanding EUR173 million backed senior
unsecured bond maturity in May 2026. Moody's expects a full drawing
of the main commitments by the DJV (EUR55 million including
Revolving Credit Facility (RCF)) if the DJV transaction was not to
take place, next to debt repayments and some capital spending. MAS
has access to about EUR145 million of cash and cash equivalents and
will generate about EUR35-40 million annual Moody's-adjusted FFO.
The company could encumber one additional property asset or issue
some unsecured debt / RCF to cover the remaining funding gap,
outside of asking for direct shareholder support. Given the low LTV
of the company Moody's see improved prospects of refinancing.
The DJV transaction would weaken liquidity in the short term but
improves access to a large unencumbered asset base, where Moody's
understands potential further bank financing is already in advanced
stages.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
An upgrade could occur if
-- MAS creates a buffer to its liquidity needs, including the bond
maturity in May 2026
-- Reduced governance concerns linked to potential DJV's capital
calls and their potential use
-- A rating upgrade would require Moody's-adjusted debt/asset to
remain well below 40% and Moody's-adjusted fixed charge cover
(excluding accounting earnings from preferred equity) to remain
well above 2x
A downgrade could occur if
-- Failure to address liquidity requirements within the next 3 to
6 months
-- Moody's-adjusted debt/asset increases above 40% and
Moody's-adjusted fixed charge cover (excluding accounting earnings
from preferred shares) drops below 2x
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was REITS and Other
Commercial Real Estate Firms published in February 2024.
COMPANY PROFILE
MAS P.L.C. is a CEE focused retail real estate landlord and
operator, with a focus in Romania. Most of its EUR1.1 billion
directly owned assets are open air and enclosed malls. The company
also has a 40% stake in and provides preferred equity to PKM
Development Ltd, the DJV established with Prime Kapital, which
provides construction and development functions to the DJV.
MAS is listed on the Johannesburg Stock Exchange (JSE), with a
market capitalisation of around EUR741 million including the
company's share scheme as of March 04, 2025.
=====================
N E T H E R L A N D S
=====================
ANQORE GROUP: S&P Affirms 'B-' LongTerm ICR, Outlook Stable
-----------------------------------------------------------
S&P Global Ratings affirmed its 'B-' long-term issuer credit rating
on chemical company AnQore and its issue ratings on its term loan B
(TLB).
The stable outlook factors in S&P's expectation of a debt reduction
through proceeds from the disposal of Circle assets. In addition,
AnQore's adjusted EBITDA will at least remain stable in 2025, with
unadjusted FOCF turning positive and EBITDA interest coverage
approaching 1.5x in the next 12 months.
The covenant waiver provided by lenders eases the pressure on
liquidity and allows the company to focus on deleveraging by
increasing EBITDA in 2025-2026, and thus get better prepared for a
potential refinancing. All lenders have consented to replace the
existing quarterly net leverage covenant of 5.5x with a quarterly
minimum liquidity covenant requiring EUR25 million of cash and
undrawn revolving credit facility (RCF) for the six quarters from
the last quarter of 2024 up to and including the first quarter of
2026. This eases the limitation on drawing down the RCF, providing
more buffer and helping maintain adequate liquidity. S&P's assume
the company will focus on bringing down the leverage to a more
sustainable level through rising EBITDA in the next one-two years
before they start refinancing the EUR300 million TLB due in
December 2027.
AnQore has reached an agreement to sell Circle Infra Partners
(previously Sitech), of which AnQore owns 46%. Circle mainly
manages the infrastructure assets at the Chemelot chemical park in
Geleen, the Netherlands. Funds advised by Basalt Infrastructure
Partners will take over the shares in Circle from AnQore, Arlanxeo,
Envalior, Fibrant, and OCI. S&P's understand that AnQore plans to
use most of the disposal proceeds to reduce the outstanding TLB
after the completion of the transaction.
S&P said, "Despite a planned debt reduction, we expect AnQore's
leverage to remain elevated due to low EBITDA. As agreed with the
lenders, AnQore plans to repay part of its EUR300 million TLB. We
expect this would reduce AnQore's gross leverage as adjusted by S&P
Global Ratings to about 7.0x-7.5x in 2025 from 9.2x in 2024 in our
base case, based on our forecast of stable adjusted EBITDA of EUR35
million-EUR40 million in 2024 and 2025. While a debt repayment
would be credit positive, this would still represent elevated
leverage, commensurate with the 'B-' rating."
"We expect modestly higher demand and improved propylene sourcing
will drive a flat EBITDA in 2025 and a gradual recovery from 2026.
We forecast our adjusted EBITDA will gradually strengthen to EUR40
million-EUR45 million in 2026, further up to EUR45 million-EUR55
million in 2027. Although the global acrylonitrile (ACN) market
will remain oversupplied in the next three-five years due to
capacity additions in Asia, AnQore is well positioned to benefit
from its European customers' increasing preference for local supply
given ongoing geopolitical and trade tensions and potential supply
chain constraints. However, this faces various risk factors
including the company's sales and production concentration in
Europe, where demand will likely remain soft, and market conditions
continue to be challenging for commodity chemicals. In addition,
lower formula pricing in the next few years as negotiated with some
contract customers, and demanding environmental regulation with
decreasing allocation of free carbon dioxide allowances will also
affect margins.
"Accordingly, we expect FOCF to remain constrained due to slow
EBITDA recovery and high interest costs. Nevertheless, we note that
capital expenditure (capex) is lowering to a more normalized level
of EUR15 million-EUR20 million per year from 2024 as the large
growth projects, primarily the investments in the C3 pipeline are
completed. Moreover, working capital will be supported by higher
factoring utilization, which AnQore plans to increase by EUR10
million-EUR15 million in 2025. As a result, we expect unadjusted
FOCF to reach EUR5 million-EUR10 million in 2025. It will likely
weaken to roughly neutral in 2026 assuming a reversal to a normal
working capital consumption level. In addition, FOCF will be
affected by higher overhaul costs in 2027 due to a large scheduled
turnaround every four years. The weak FOCF indicates vulnerable
headroom under the current rating. We estimate that an EBITDA of at
least EUR50 million-EUR55 million will be needed to ensure a
sustainably positive FOCF.
"The stable outlook factors in our expectation of a debt reduction
through proceeds from the disposal of Circle assets. We think
lenders consent obtained on the covenant relief and partial debt
repayment is releasing liquidity and rating headroom. In addition,
AnQore's adjusted EBITDA will remain stable in 2025 as the company
benefits from slightly higher volumes and its new C3 pipeline,
which started its operations in early 2024. In turn, we anticipate
the company's unadjusted FOCF to turn positive and EBITDA interest
coverage to approach 1.5x in the next 12 months.
"Rating pressure may come from a much less reduction in gross debt
as we expect. Negative pressure will also emerge if AnQore faces a
prolonged, subdued EBITDA without a gradual recovery and continued
negative FOCF. We could lower the rating if the company fails to
reduce the leverage, or its liquidity position deteriorates more
than expected. We could also take a negative rating action if the
group encounters difficulties in operating the new C3 pipeline or
if the owners follow a more aggressive growth strategy in the
current challenging environment.
"We could raise the rating if adjusted debt to EBITDA improves to
sustainably below 6.0x and we are confident that AnQore can sustain
positive FOCF and comfortable covenant headroom with EBITDA
interest coverage above 2.0x."
ATHENA HOLDCO: S&P Affirms 'B' LongTerm ICR on Add-On for Dividends
-------------------------------------------------------------------
S&P Global Ratings affirmed its 'B' long-term issuer credit rating
on Athena Holdco SAS (April) and its financing subsidiary Athena
Bidco SAS, and its 'B' issue rating on the EUR1.35 billion term
loan.
S&P said, "We also affirmed our recovery rating of '3' on the term
loan but lowered our rounded estimate of recovery prospects to 55%,
from 50%, due to the higher amount of senior secured debt.
S&P said, "The stable outlook reflects our view that April's
revenue and EBITDA growth will remain strong. Both will benefit
from favorable industry trends and bolt-on mergers and acquisitions
(M&As), which will underpin S&P Global Ratings-adjusted debt to
EBITDA of about 7x, positive free operating cash flow (FOCF), and
funds from operations (FFO) interest coverage of about 2.0x over
the next 12 months.”
Athena Holdco SAS (April) is raising EUR150 million to add on to
its EUR1.2 billion senior secured term loan, primarily to fund
dividends, and proposes to reprice the full tranche.
S&P said, "The proposed term loan add-on will slow April's
deleveraging. The company indicated that it would use proceeds from
the add-on for general corporate purposes, including earnouts and
dividend payments. This means that April could use proceeds of up
to EUR150 million to distribute cash to shareholders. This will
include a partial redemption of the EUR400 million convertible
bonds that were granted by the controlling shareholders and that
sit at the topco level. Despite the partial redemption, we do not
consider this instrument in our financial analysis because a large
portion will remain outstanding and the transaction is within our
expectations for the rating. Nevertheless, the shareholder
distribution, which comes less than a year after April had put the
new capital structure in place, indicates a more aggressive
financial policy than we had initially expected. At the same time,
the repricing will slightly reduce April's interest expense and
mitigate the effect of the add-on on the company's interest
coverage and cash flow metrics.
"Despite some softness in credit protection and individual health
insurance segments, April's operating performance remains sound.
Based on the company's preliminary results, gross revenue increased
to EUR768 million (+24.7% year on year) in 2024, while net revenue
increased to EUR537 million (+19.0% year on year). The rise
resulted from organic growth of 3.3% and the consolidation of
Lexham in the U.K. (acquired in Jan 2024) and DLPK Group (DLPK) in
France (acquired in July 2024). Organic growth benefited from
increasing premiums (+6% year on year) and volumes across all
segments, particularly in medical insurance for expatriates in
Asia, motorcycle and leisure boating insurance in France, Spain and
Canada, and health and protection insurance for very small
enterprises. That said, the individual health segment suffered from
competitive pressures, while credit protection insurance remained
impaired by depressed mortgage volumes.
"Company-reported normative EBITDA increased by 20% to EUR205
million year on year. Yet the consolidation of lower-margin wealth
management business DLPK and investments in digital
business-to-customer distribution diluted profitability, despite
April's increasing operating leverage and cost-reduction measures
in underperforming businesses. We estimate adjusted EBITDA was
EUR182 million in 2024--which would constitute a year-on-year
increase of 15%--and EBITDA margins were 23.6%, down from 25.6% in
2023. We exclude financial investment income, which amounted to
about EUR10 million in 2024, from our EBITDA calculation.
"For 2025, we forecast a healthy gross revenue growth of 16%-18%,
supported by organic net revenue growth of about 5% and the full
consolidation of DLPK. We forecast a continued erosion of adjusted
EBITDA margins to 22.2%, mainly due to the full consolidation of
the lower-margin wealth management business and investments in
salesforce, tools, and processes to improve the customer
experience.
"Our expectations of earnings growth, sound interest coverage, and
cash generation continue to support the rating, despite the high
leverage. For 2024, we calculate adjusted debt to EBITDA of about
7.2x, FFO cash interest coverage at 2.1x, and FOCF of about EUR30
million, excluding refinancing transaction costs that are
non-recurring. Despite earnings growth in 2025, we forecast broadly
stable adjusted debt to EBITDA and FFO cash interest coverage
because of the higher debt. At the same time, we expect FOCF will
increase to about EUR65 million, underpinned by EBITDA growth. Cash
flow generation will remain restricted by interest expenses of
EUR82 million and high capital expenditure (capex) of about EUR42
million, including investments in IT infrastructure. These metrics
are consistent with the current 'B' rating but do not provide
headroom for more aggressive financial policy decisions.
"The stable outlook reflects our view that April will continue to
see strong revenue and EBITDA growth. Both will benefit from
favorable industry trends and bolt-on M&As, which will underpin
adjusted debt to EBITDA of about 7x, positive FOCF, and FFO
interest coverage of about 2.0x over the next 12 months.
"We could lower the rating if April posted negative FOCF on a
prolonged basis or if FFO cash interest coverage reduced materially
below 2x. This could happen if April experienced a material decline
in profitability or higher volatility in margins due to unexpected
operational issues--including the integration of recent
acquisitions or adverse regulatory developments. We could also
lower the rating if April's leverage increased on the back of
material debt-funded acquisitions or shareholder remuneration.
"We could consider an upgrade if April improved its adjusted
leverage to less than 5x, in line with a financial risk profile
that qualifies for a higher assessment. A positive rating action
would also depend on the financial sponsor's commitment to
demonstrating a prudent financial policy and maintaining credit
metrics at this level."
GROUP OF BUTCHERS: S&P Affirms 'B' ICR on Dividend Recap
--------------------------------------------------------
S&P Global Ratings affirmed its 'B' rating on Netherlands-based
meat producer Group of Butchers (GoB; the group top holding company
of Artisan Holdco B.V.). S&P assigned its 'B' issue-level rating
and '3' recovery rating (rounded estimate: 65%) to the proposed TLB
due 2032.
The stable outlook reflects S&P's view that GoB's operating
performance should remain resilient over the next 12 months,
supported by its strong market positions and good operating
efficiency in the private label processed meat industry in the
Netherlands, Germany, and Belgium.
GoB has enough headroom under the 'B' rating to absorb the increase
in debt levels arising from the proposed transaction, with adjusted
leverage projected to peak at 5.7x after the transaction. The
company is looking to issue a new EUR705 million seven-year TLB to
refinance EUR489 million TLB due 2028 and distribute a EUR350
million dividend to existing shareholders. S&P said,
"Notwithstanding the higher senior debt, we expect adjusted debt
leverage at 5.7x after the transaction closes, comfortably below
our 7.0x downside trigger for the rating, gradually decreasing to
around 5.5x in 2025 and 5.0x in 2026. This is also because the
transaction is partly funded by EUR134 million cash balances, which
we exclude from our debt leverage calculations given the private
equity ownership. Moreover, roughly half of the dividend
distribution is expected to take the form of a partial repayment of
the existing preferred shares from Apollo, which we are currently
treating as debt under our credit metrics. The transaction will
also mean GoB will benefit from a new six and a half-year revolving
credit facility (RCF) of EUR75 million, expected to be undrawn at
closing. We understand that the rationale behind the transaction is
to realize some returns for the shareholders and proactively extend
maturities to continue to be invested in the company."
For 2025 and 2026, GoB's stable operating performance should help
stabilize debt leverage at 5.0x-5.5x and support FOCF generation
exceeding EUR70 million annually. GoB's credit metrics should
stabilize after the transaction with adjusted debt leverage
gradually reducing to around 5.5x in 2025 and 5.0x in 2026, while
funds from operations (FFO) cash interest remains at around 3.0x.
This assumes S&P Global Ratings-adjusted EBITDA reaching EUR170
million-EUR175 million in 2025 and around EUR200 million in 2026,
supported by organic expansion and notably inorganic growth not
included in GoB's business plan. S&P said, "We see FOCF at around
EUR70 million-EUR90 million over 2025-2026 annually as the increase
in EBITDA absorbs higher cash interests, working capital
investments, and higher capital expenditure (capex). We assume GoB
will continue looking to strengthen its position in Germany where
it still holds a relatively low market share, diversify its client
base, expand its complementary product offering, and potentially
enter a fourth geography. Moreover, we see growth for the company
reliant on acquisitions, considering the lack of dynamism in the
broader meat industry in Europe. Our base case factors in EUR100
million in 2025 and EUR150 million in 2026 of partly debt-funded
acquisition spending, swiftly translating into EBITDA contribution
for the group." This assumes a successful execution of the group's
inorganic plan, which includes acquiring well-invested businesses
at favorable valuations with strong synergy opportunities and
complementary propositions.
S&P said, "Our expectations of EBITDA growth reflect a strong
commercial execution, accretive acquisitions, and continuing cost
control, against the backdrop of an overall stagnant processed meat
market. We forecast 3%-4% organic revenue growth in 2025, mainly
driven by around 3% volume expansion with a marginally positive
price mix effect. Our volume growth estimate reflects a strong
commercial execution leading to higher share of existing clients'
wallet, cross-selling of new products, as well as new client
accounts coming from the acquired companies. This should be
supported by GoB's strong partnerships with local retailers and its
proven data-backed ability to identify and serve pockets of growth
within the relatively stagnant industry. On the supply side, we
forecast the manufacturing capacity to gradually expand due to the
ramp-up of acquired sites and capacity additions in its
Schnitzelmacher factory in Germany. For 2026, organic revenue
growth should accelerate to 4%-5% thanks to more favorable price
negotiations, notably in Belgium, where we currently see pricing
pressures from retailers pushing back owing to the overall
disinflationary environment and relatively weak consumer sentiment.
Our price mix forecast also assumes some inflation pass-through in
the Netherlands and Germany, but notably product mix improvements
as the company shifts toward more value-added products (sliced,
pre-packaged, and ready-to-heat). The adjusted EBITDA margin should
marginally increase and remain stable at around 13.5% over
2025-2026, from 13.3% in 2024, on the back of a higher gross margin
(product mix improvements, pricing above commodity inflation, and
cost savings) more than offsetting higher overhead costs and the
dilutive impact from acquisitions. We expect costs savings mainly
coming from higher manufacturing yields as the company lowers
slicing waste, increased automation, and procurement savings.
Moreover, GoB exhibits a favorable track record of swiftly
realizing synergies from acquired companies, which we expect to
support profitability over the forecast period. This assumes
cross-selling of products and clients, higher bargaining power with
customers and suppliers, reduced cost duplicities and transfer of
central functions."
The operating performance remained strong in 2024 thanks to
profitability improvements and marginally growing like-for-like
revenue. Organic revenue growth (pro forma acquisitions) was 0.7%
in 2024 as inflation-led pricing in the Netherlands and product mix
improvements more than offset retail pricing pressures in Belgium,
while volumes remained stable. This reflects GoB's beneficial
inflation pass-through agreements with Dutch retailers but also a
tougher environment for negotiations in Germany, and notably in
Belgium, where the company conceded price decreases. During the
last year the group continued shifting its sales mix toward more
value-added products, which helped counter pricing pressures and
slightly declining industry volumes in GoB's markets. Organic
growth was supported by mergers and acquisitions, with two German
meat processors acquired in Germany, Abbelen and Ott, and one
Belgian manufacturer of salads and soups, Delitas. S&P said, "We
estimate those acquisitions contributed slightly more than EUR270
million revenue and EUR31 million EBITDA in 2024 pro forma,
attesting to the group's strategy to acquire companies with
well-functioning operations. We estimate S&P Global
Ratings-adjusted EBITDA increased by around 90 basis points year on
year on the back of pricing above inflation in the Netherlands,
lower energy and meat costs in Germany, and product mix
improvements across regions." This largely offset pricing pressures
in Belgium, cost inflation in overheads, and a transient margin
dilution from the recent acquisitions.
S&P said, "The stable outlook reflects our view that GoB's
operating performance should remain resilient over the next 12
months because we believe the group can navigate the overall
declining consumption for processed meat in Europe, and that it has
a track-record of successfully integrating its acquisitions. Under
our base case, we see the company continuing to strengthen its
competitive position in its core markets supported by strong
commercial execution and accretive bolt-on acquisitions. To
maintain the current rating, we would need to see GoB posting
adjusted debt leverage at 5.0x-6.0x, and positive FOCF of around
EUR70 million-EUR90 million annually.
"We could lower the rating on GoB if, contrary to our base case,
adjusted debt leverage rises above 7x or FOCF turns neutral or
negative for a prolonged period."
This could occur if the company sees accelerated volume decline by
losing major retail contracts to competitors, is unable to pass on
higher-than-expected operating costs, or faces acquisition
integration setbacks. Another downside factor would be if the
company decided to sharply increase discretionary spending on
acquisitions compared with our assumptions.
S&P could take a positive rating action if the company deleverages
to below 5x adjusted debt to EBITDA on a sustained basis while
maintaining a large positive FOCF base, at least in line with its
base-case, with a firm and lasting commitment from management and
financial sponsors to always maintain such a level of debt
leverage.
===============
P O R T U G A L
===============
ROOT BIDCO: Moody's Rates EUR1.11-Mil. Senior Term Loan 'B3'
------------------------------------------------------------
Moody's Ratings assigned B3 ratings to Root Bidco S.a.r.l.'s
(Rovensa) proposed EUR1,110 million senior secured term loan B4 and
EUR165 million senior secured revolving credit facility (RCF). All
other ratings of Rovensa are unaffected, including the company's B3
corporate family rating and B3-PD probability of default rating.
The outlook is negative.
The proposed transaction seeks to extend the existing senior
secured term loans and RCF by 3 years, and to refinance the
drawings under the RCF. The maturity date for the proposed amended
and extended senior secured term loan is September 2030. Moody's
also expects that the company will extend its shareholder loans.
RATINGS RATIONALE
The contemplated amend and extend transaction would extend
Rovensa's maturity profile by 3 years, which Moody's views as
credit positive. While the higher amount of term loan debt to repay
RCF drawings somewhat improves Rovensa's liquidity, it also adds
additional long-term debt to the capital structure. Moody's expects
Rovensa's net leverage to remain unchanged.
The company is weakly positioned in its B3 rating due to its highly
leveraged capital structure, including Moody's-adjusted gross
leverage of around 9x for the last 12 months ended December 2024,
and its weak track record of cash generation. However, Rovensa's
management adjusted EBITDA (excluding non-recurring items)
increased to EUR160 million in the last 12 months ended December
2024 from EUR150 million in June 2024. EBITDA growth was driven by
reduced SG&A costs and to a lesser extent by a higher gross margin.
The company has to date not shown sufficient EBITDA growth to
reduce leverage to Moody's expectations for the B3 rating.
Nonetheless, Moody's forecasts earnings to improve further over the
period January to June 2025 (2nd half of Rovensa's fiscal year
2025), supported by market growth and cost savings, leading to a
Moody's-adjusted gross leverage of around 8x by June 2025 (end of
fiscal year).
Rovensa's B3 CFR continues to reflect its broad portfolio of
biosolutions and off-patent crop protection products; focus on
speciality crops, which provide better earnings stability than
typical for larger fertiliser companies; and better growth
prospects of its biosolutions products compared to conventional
products. The credit profile is further supported by its adequate
liquidity profile.
However, the company's highly leveraged capital structure; weak
track record of cash flow generation; exposure to extreme weather
events; limited demand visibility and large seasonal swings in
working capital continue to constrain the rating.
LIQUIDITY
Rovensa's liquidity is adequate. As of the end of December 2024,
the company had around EUR79 million in cash and cash equivalents
on balance sheet, and access to a EUR165 million committed RCF, of
which EUR78 million was drawn (which the company intends to repay
with the proposed transaction). In addition, the company has access
to various non-recourse factoring agreements that are renewed
annually to a large extent. In a scenario where banks would not
extend their factoring programmes with the company, the company
would need alternative liquidity sources, otherwise its liquidity
profile would weaken materially.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Rovensa's ratings could be upgraded if (1) the company's
Moody's-adjusted debt to EBITDA declines below 6.0x on a sustained
basis; (2) Rovensa builds a track record of generating consistent
positive free cash; (3) adjusted EBITDA/Interest is above 2.0x; (4)
the company maintains an adequate liquidity profile.
Conversely, Rovensa's ratings could be downgraded if (1) Rovensa
generates sustained negative FCF or with any other deterioration of
its liquidity profile; (2) its Moody's adjusted gross leverage
remains above 7.5x; (3) Moody's-adjusted EBITDA interest coverage
declined below 1.5x.
The principal methodology used in these ratings was Chemicals
published in October 2023.
COMPANY PROFILE
With dual headquarters in Madrid, Spain and Lisbon, Portugal, Root
Bidco S.a.r.l. (Rovensa) provides differentiated crop life cycle
management solutions targeted to promote sustainability in
agriculture, including bionutrition, biocontrol and crop protection
products, with a particular focus on high-value cash crops, such as
fruits and vegetables. For the last twelve months ended December
2024, the company generated company-adjusted EBITDA of around
EUR160 million. The company's largest shareholders are Bridgepoint
fund and funds managed by Partners Group.
===========
S W E D E N
===========
IGT HOLDING IV: S&P Affirms 'B' ICR & Alters Outlook to Stable
--------------------------------------------------------------
S&P Global Ratings affirmed its 'B' long-term issuer credit and
issue ratings on Swedish software company IGT Holding IV AB (IFS)
and assigned its 'B' issue rating with a '3' recovery rating to the
company's proposed EUR400 million revolving credit facility (RCF),
and US dollar and euro term loans B of around EUR2.3 billion,
reflecting our expectation of meaningful (55%) recovery prospects.
The stable outlook reflects S&P's view that IFS will continue to
deleverage well below 9x (including the payment-in-kind [PIK] loan)
in the next 12-24 months, while improving its FOCF generation and
EBITDA cash interest coverage.
IFS plans to refinance its current capital structure to reduce
margins and extend maturities, with a small increase in debt for
future acquisitions. S&P said, "We see the transaction as
opportunistic with no meaningful impact on credit metrics. The
company plans to use the proceeds from the two new term loans B,
together worth almost EUR2.3 billion, to repay its existing term
loans. We also understand the company is seeking to reduce the
margin on its term loans and extend and align maturities to 2032
through this refinancing. The SEK2,575 million RCF, equivalent to
EUR230 million, will be refinanced in euros and extended to up to
EUR400 million. The $300 million (EUR280 million) PIK privately
placed loan issued by the holding company and ultimate parent IGT
Holding 1 AB will remain in place. We treat it as debt according to
our criteria, despite it being subordinated to IFS' debt, having a
longer maturity than IFS' debt and being cash flow neutral as it is
a non-cash interest instrument. As such, we look at leverage both
excluding and including PIK and we forecast that, after
incorporating this transaction, IFS' leverage including the PIK
loan will remain sustainably below 9x (below 8x excluding the PIK
loan) and that consolidated FOCF to debt will increase and approach
5% by 2025."
IFS' strong growth momentum with a high share of recurring revenues
supports S&P's rating. S&P expects IFS will continue to experience
strong organic growth of 15%-20% over the next two years. Revenues
will benefit from the company's well-invested product suite, its
long-term customer relationships, and its strong competitive
position across its key verticals -- mainly asset-heavy industrial
sectors, such as aerospace and defense, energy and utilities, and
manufacturing. Growth in maintenance revenues and the migration to
a SaaS model have resulted in IFS' already substantial share of
recurring revenues reaching 80% by year-end 2024. This reduces the
company's exposure to cyclicality and increases revenue
predictability. Additionally, as part of a fast-growing and
fragmented market, IFS has a track record of successfully executing
acquisitions to accelerate its revenue growth and solidify its
market position. Most recently, in 2024, IFS acquired Copperleaf, a
provider of asset investment planning and management software,
which enhances IFS' product proposition in the Enterprise Asset
Management (EAM) segment, in our view.
S&P said, "We expect IFS' solid profitability will significantly
improve again from 2025, mainly as acquisition-related exceptional
costs decline. S&P Global Ratings-adjusted EBITDA margins will
improve to about 30% from 2025, after a temporary dip in 2024, as
exceptional costs related to M&A reduce and the successful
integration of acquisitions expands margins. After high exceptional
costs in 2024 related to the Copperleaf acquisition, we expect such
costs -- related mainly to restructuring -- to normalize from 2025.
Additionally, the gradually declining contribution from lumpier,
lower-margin consulting revenues will also improve adjusted EBITDA
margins to above 30% and lead to a more stable earnings base. As a
result, without material debt-funded acquisitions, adjusted debt to
EBITDA (including the PIK loan), will improve to just over 6.0x in
2025, from about 9.0x in 2024. At the same time, EBITDA cash
interest coverage will improve to 3.0x in 2025, from about 2.5x in
2024, and further strengthen in 2026.
"We expect cash flow generation will improve from 2025 after
several consecutive weak years. FOCF to debt will approach 4%-5% by
2025 and strengthen to 6% in 2026, from breakeven in 2024. This in
an improvement from the company's low free cash flow of recent
years, during which its migration from a perpetual license-based
billing model to a software as a service (SaaS) model resulted in
significant negative working capital that weighed on FOCF. Now that
the company has largely completed this transition, we expect a
reduction in deferred revenues supported by lower interest costs
thanks to the planned refinancing. This leads us to forecast
stronger FOCF of around EUR115 million in 2025, up from EUR35
million in 2024. Nevertheless, we note that IFS' acquisition
appetite has previously resulted in weaker-than-anticipated FOCF
and FOCF to debt. This was due to acquisitions being followed by
material cash restructurings, weighing on cash flow generation. Our
forecast assumes IFS will undertake small-scale M&A of EUR150
million-EUR200 million per year from 2025. A meaningful deviation
from this base case, for example a large debt-funded acquisition,
especially a loss-making one like Copperleaf, would likely result
in weaker FOCF and credit metrics, which could pressure our
rating."
IFS' financial policy and acquisition appetite limit rating upside.
S&P views the likelihood of IFS maintaining leverage below its
upside trigger as constrained by prospects of further debt-funded
acquisitions, given its recent M&A history and its private equity
ownership. However, its financial policy of maintaining net
leverage of 4.3x-5.3x (as defined by the company under the existing
credit agreement) translates into adjusted leverage of 7.5x-8.5x
(including the PIK loan) and remains supportive of the current
rating.
S&P said, "The stable outlook reflects our expectation that IFS
will continue to report revenue growth of over 15% and increase
adjusted EBITDA margins to about 30%, underpinned by a strong focus
on organic growth and sound demand for its product offering. We
expect this will help IFS reduce S&P Global Ratings-adjusted debt
to EBITDA toward 6x (5x excluding the PIK loan), and that FOCF to
debt will recover toward 5% from 2025, creating some buffer for
bolt-on acquisitions.
"We could lower the rating if FOCF to debt falls consistently below
5%, if adjusted debt to EBITDA rises above 9x (8x excluding the PIK
loan), or if EBITDA cash interest coverage goes below 2.0x. This
could result from the adoption of a more aggressive financial
policy, a large debt-funded M&A transaction with no imminent
deleveraging prospects, or weakening operating performance due to
intense competition, higher customer churn, or loss of market
share.
"We see near-term rating upside as unlikely due to the company's
high leverage appetite. We could raise our rating on IFS if
adjusted leverage declined to sustainably below 6.5x (5.5x
excluding the PIK loan) and FOCF to debt approached 10%. This could
happen with continued double-digit revenue growth, strong adjusted
EBITDA margins of more than 30%, and a more conservative financial
policy with a contained M&A appetite, most likely resulting from a
prudent exit strategy such as an IPO."
===========================
U N I T E D K I N G D O M
===========================
BISTROT PIERRE: Interpath Ltd Named as Administrators
-----------------------------------------------------
Bistrot Pierre 1994 Limited was placed into administration
proceedings in the High Court of Justice, Business & Property
Courts of England & Wales Insolvency and Companies List (ChD),
Court Number: CR-2025-001562, and William James Wright and Ryan
Grant of Interpath Ltd were appointed as administrators on March 7,
2025.
Bistrot Pierre is a licensed restaurant.
Its registered office is at Interpath Ltd, 10 Fleet Place, London,
EC4M 7RB.
Its principal trading address is at Milton Chambers, 19 Milton
Street, Nottingham, NG1 3EU.
The joint administrators can be reached at:
William James Wright
Interpath Ltd
10 Fleet Place
London, EC4M 7RB
-- and --
Ryan Grant
Interpath Ltd
2nd floor, 45 Church Street
Birmingham, B3 2RT.
For further details, contact:
Interpath Ltd
Email: bistrotpierre@interpath.com
Tel No: 0118 214 5925
DYFED TELECOM: FTS Recovery Named as Administrators
---------------------------------------------------
Dyfed Telecom 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-2025-1291, and Alan Coleman and Marco Piacquadio of FTS Recovery
Limited were appointed as administrators on Feb. 28, 2025.
Dyfed Telecom engaged in telecommunications activities.
Its registered office and principal trading address is at Unit 3,
Waengadog Farm, Stockwell Lane, Kidwelly, Carmarthenshire, Wales,
SA17 4PP.
The administrators can be reached at:
Alan Coleman
FTS Recovery Limited
3rd Floor, Tootal House
56 Oxford Street
Manchester M1 6EU
-- and --
Marco Piacquadio
FTS Recovery Limited
Baird House, Seebeck Place
Knowlhill, Milton Keynes
MK5 8FR
For further information, contact:
The Joint Administrators
Tel No: 01908 754 666
Email: dwani.patel@ftsrecovery.co.uk
Alternative contact: Dwani Patel
FERROGLOBE PLC: Moody's Affirms 'B2' CFR & Alters Outlook to Stable
-------------------------------------------------------------------
Moody's Ratings has affirmed Ferroglobe PLC's B2 long-term
corporate family rating and its B2-PD probability of default
rating. Concurrently, Moody's have changed Ferroglobe's outlook to
stable from positive. Ferroglobe is a large producer of silicon
metal and silicon/manganese alloys.
"The affirmation with stable outlook reflects prolonged challenging
market conditions including subdued demand and supply pressures
from imports in Ferroglobe's key US and European markets.", says
Tobias Wagner, Moody's Ratings Vice President – Senior Credit
Officer. "These market conditions delay improvements in
Ferroglobe's performance, but Moody's expects the company's credit
metrics, balance sheet and liquidity to remain solid and in line
with the B2 rating."
RATINGS RATIONALE
Ferroglobe's Moody's-adjusted debt/EBITDA for 2024 remained solid,
estimated at around 1.3x, while the company continued to generate
meaningful free cash flow after dividends supported by releases in
working capital. For 2025, Moody's expects debt/EBITDA to remain
below 2.0x. Moody's also expects the company to continue to remain
free cash flow generative supported by further working capital
releases. Meaningful improvement in performance will likely depend
on strengthening demand in key end markets such as aluminium, steel
or solar. In addition, various potential trade measures in the US
and the EU could support market conditions from 2025.
Over the last years Ferroglobe has continuously improved its
balance sheet by applying cash flow generation towards debt
reduction and Moody's expects further slight improvements in 2025,
but most of its balance sheet improvement is done. Ferroglobe has
started to pay moderate dividends and initiated a share buyback
program. Moody's believes the company may also embark on growth
investments or acquisitions over time, although the rating reflects
the expectation that the company will balance any investments and
shareholder returns with maintaining its solid balance sheet and
adequate liquidity profile.
The ratings continue to reflect Ferroglobe's position as one of the
largest producers in the silicon metal sector with a vertically
integrated business model that provides some protection against raw
material price movements such as quartz and metallurgical coal. In
addition, they reflect the volatile profitability and working
capital track record in past years with continued exposure to
market prices and limited visibility into market demand and supply
dynamics.
LIQUIDITY PROFILE
The company's liquidity profile is adequate. As of December 2024,
the company had $133 million of cash and cash equivalents and
access to a $100 million committed asset-backed facility due in
2027, alongside access to some smaller additional local facilities.
The working capital exposure to volatile prices remains a key
liquidity challenge in Moody's views, requiring a significant
degree of minimum liquidity.
ESG CONSIDERATIONS
Ferroglobe's ESG Credit Impact Score of CIS-3 indicates that ESG
considerations have a limited impact on the current credit rating
with potential for greater negative impact over time. This reflects
governance risks, including the need to carefully manage its
balance sheet and liquidity because of the high volatility and low
visibility in the business. It also reflects mostly sector-driven
exposure to environmental and social risks.
RATING OUTLOOK
The stable outlook reflects Moody's expectations that the company
should be able to maintain solid metrics for the B2 rating through
most market conditions based on maintaining low debt levels and at
least adequate liquidity, despite the volatility of profits and
working capital.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The company's profits and cash flows remain exposed to volatility.
Therefore a demonstrated ability to weather different market
conditions while maintaining moderate debt levels, solid metrics
and good liquidity and cash flow generation could result in
positive pressure. In addition, this would require Moody's-adjusted
debt/EBITDA sustained comfortably below 3.0x through the cycle.
Negative pressure could arise if debt levels rise or liquidity
weakens, for example from weak cash flow generation. An inability
to sustain profitability in a weak market environment would also
pressure the rating, and so would leverage rising above 4.0x.
The principal methodology used in these ratings was Manufacturing
published in September 2021.
COMPANY PROFILE
Headquartered in London and listed on the Nasdaq, Ferroglobe PLC is
a large producer of silicon metal and silicon/manganese alloys. The
main shareholder is with 36.0% Grupo Villar Mir, S.A.U.
GEKO PRODUCTS: Opus Restructuring Named as Administrators
---------------------------------------------------------
Geko Products Limited was placed into administration proceedings in
the High Court of Justice, Court Number: CR-2025-001410, and Colin
David Wilson and Allister Manson of Opus Restructuring LLP were
appointed as administrators on March 3, 2025.
Geko Products engaged in the retail sale via mail order houses or
via internet.
Its registered office is at Opus Restructuring LLP, 1 Radian Court,
Knowlhill, Milton Keynes, MK5 8PJ.
Its principal trading address is at Hall Farm, Kirton Road,
Egmanton, Newark, Nottinghamshire, NG22 0HG.
The administrators can be reached at:
Colin David Wilson
Allister Manson
Opus Restructuring LLP
322 High Holborn
London WC1V 7PB
For further details, contact:
Mark Pervical
Email: mark.percival@opusllp.com
MEDICAL AND AESTHETIC: Azets Named as Administrators
----------------------------------------------------
Medical and Aesthetic Training Academy Limited 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-2025-001024, and Nicola Banham and
Matthew Richards of Azets were appointed as administrators on Feb.
27, 2025.
Medical and Aestheticm engaged in medical practice activities.
Its registered office is at Regina House, 124 Finchley Road,
London, NW3 5JS
Its principal trading address is at 33 Cavendish Square, London,
W1G 0PW
The joint administrators can be reached at:
Matthew Richards
Nicola Banham
Azets
2nd Floor, Regis House
45 King William Street
London, EC4R 9AN
For further details, contact:
The Joint Administrators
Tel No: 0207 403 1877
Email: michael.carr-white@azets.co.uk
Alternative contact: Michael Carr-White
PLATFORM BIDCO: S&P Affirms 'B-' ICR & Alters Outlook to Stable
---------------------------------------------------------------
S&P Global Ratings revised its outlook on Platform Bidco (Valeo
Foods) to stable and affirmed its 'B-' long-term issuer and issue
ratings. The recovery rating on the senior secured first-lien term
loan B in unaffected at '3' with recovery prospects of 50%.
The stable outlook indicates that S&P expects Valeo Foods to
maintain stable operating performance and successfully integrate
IDC Holdings, enabling higher FOCF generation and improved credit
metrics.
S&P said, "The group's operational performance has improved faster
than we expected over the past 12-18 months and we forecast that
this trend will continue until March 31, 2025. In the first nine
months of fiscal 2025, Valeo Foods' positive organic growth led to
its top line reaching EUR1,237 million and a 21% increase in
company-reported EBITDA (excluding exceptionals) to EUR143 million.
On a trailing 12-month basis, company-reported EBITDA rose
significantly to EUR190 million compared with EUR146 million in the
previous 12 months. Most of this growth stemmed from recovery in
the U.K. snacking division, and sustained price increases. In
addition, the recent acquisitions of Pattini, Dal Colle, and
Appalaches, combined with new contract gains, led to strong EBITDA
growth of 20% in Europe and 30% in North America in the first nine
months of fiscal 2025. Excluding the acquisition of IDC, we now
estimate that S&P Global Ratings-adjusted EBITDA will be EUR175
million-EUR180 million for fiscal 2025, above our previous
expectation of about EUR165 million. Valeo Foods completed its
acquisition of IDC on Jan. 8, 2025 and therefore, the integration
progress is still at an early stage. Nevertheless, synergies have
been identified, and are being implemented, that should offset the
expected exceptional costs associated with integration. IDC has
performed as we expected and its preliminary figures indicate that
it generated over EUR42 million in EBITDA during 2024. Pro forma
the acquisition of IDC, we expect our adjusted EBITDA for Valeo
Foods to be about EUR210 million-EUR215 million, leading adjusted
debt to EBITDA to drop toward 9.3x-9.5x and FFO interest coverage
to be about 1.5x. In addition, we expect positive FOCF around EUR30
million. Given the positive momentum displayed over the last 12-18
months, we believe Valeo Foods is better positioned to sustainably
maintain credit metrics commensurate with the 'B-' rating, along
with successfully integrating the IDC acquisition.
"We expect Valeo Foods to continue the positive growth trajectory,
supported by operational initiatives, commercial footprint
expansion and integration of IDC, despite price pressures and still
muted consumer confidence. We assume organic revenue growth will
moderate to about 2.5%-3.0% from fiscal 2026 as the U.K. segment
stabilizes, while the international business continues to expand
leveraging a more streamlined commercial footprint. Once IDC has
fully integrated, we forecast S&P Global Ratings-adjusted EBITDA to
about EUR230 million-EUR250 million in fiscal 2026 and FOCF
generation of approximately EUR50 million. This should translate
into adjusted debt to EBITDA reducing toward 8.0x, with funds from
operations (FFO) interest coverage improving to 1.5x-2.0x. The
group have identified around EUR20 million of operational
improvements that will likely materialize over the next 12 months.
These include procurement savings, site rationalization in the
U.K., as well as growth and efficiency capital expenditure (capex)
projects. Despite gradual improvements, consumption remains
subdued, and this will continue to weigh on volumes, particularly
in mature Western European markets. Prices are likely to remain
under pressure because deflation is affecting some input costs,
such as energy and sugar. That said, Valeo Foods has a track record
of maintaining and passing through prices, which will help cover
still-high commodity prices such as cocoa and the recent increase
in the cost of eggs, oil, and packaging, as well as labor cost
inflation, particularly in the U.K. Our forecasts still incorporate
our expectation that exceptional costs will be higher in fiscal
2026, mainly because of costs related to restructuring and the
integration of multiple acquisitions. This will limit the potential
for improvements in adjusted EBITDA margins over the next 12
months.
"We anticipate that Valeo Foods will be able to self-fund its
operations as FOCF turns positive and it controls its discretionary
spending, especially acquisition spending. We estimate positive
FOCF of about EUR30 million in fiscal 2025, pro forma the IDC
acquisition. FOCF will be supported by an inflow of working
capital, leading forecast FOCF to increase to around EUR50 million
in fiscal 2026 as Valeo Foods continues to optimize inventory and
receivables management. In this regard, cash generation benefits
from a factoring program that supports rapid cash conversion.
Elevated capex is likely for the next two years, as the group
rationalizes its manufacturing presence and invests in additional
capacity in Italy. As such, we predict capex around EUR55 million
in each of fiscals 2025 and 2026. In addition, our forecast
incorporates small, bolt-on acquisitions totaling about EUR50
million as the group continues to seek potential opportunities to
expand its commercial footprint and drive growth in enterprise
value. That said, we do not anticipate any large, debt-financed
acquisitions as the group focuses on the integration of IDC. Any
further debt-financed acquisitions would present an event risk for
the ratings as they would likely derail the company's deleveraging
path and ability to generate positive FOCF.
"In our view, Valeo Foods' liquidity remains adequate, with no
refinancing risks expected over the next 12 months. Valeo Foods is
looking to issue an add-on of up to EUR100 million to its
euro-denominated senior secured term loan B, which matures in
September 2028. The company will use the add-on cash proceeds to
fully repay its drawings on the revolving credit facility (RCF),
which was EUR51.2 million drawn as of Dec. 31, 2024. It will also
use the proceeds to pay a portion of the £150.5 million
second-lien facility that matures in September 2030. We view the
transaction as credit neutral; it will improve the group's
liquidity headroom by increasing availability under the RCF. After
the issuance, Valeo Foods' overall liquidity position will be
underpinned by a good cash balance of about EUR50 million-EUR60
million. The EUR180 million RCF does not mature until March 2028
and, based on current trading, we anticipate that Valeo Foods will
maintain sufficient headroom under the covenant. Given that the
company has no near-term refinancing risks, and its first-lien
senior secured term loan B of about EUR1.4 billion is due in
September 2028, we believe there will be sufficient time for
management to realize the benefits of the IDC acquisition and
sustainably lower leverage from the current high level.
"The stable outlook indicates that we expect Valeo Foods to reduce
leverage to about 8.0x by the end of fiscal 2026, as the group
executes the full integration of IDC Holdings. In addition, it will
continue to improve its operating performance through a consistent
price and volume strategy and by reaping the benefits of its
operating efficiency initiatives. We also expect Valeo Foods to
generate positive FOCF of at least EUR30 million over the next 12
months.
"We could lower our ratings on Valeo Foods in the next 12 months if
the group increases leverage, contrary to our base case, and if FFO
cash interest coverage drops to 1.5x or below. We would view as
negative a decision to undertake another large, debt-funded
acquisition before fully integrating IDC Holdings."
This could occur if Valeo Foods fails to integrate IDC Holdings in
a timely manner, so that integration costs were higher than
anticipated and synergies lower than anticipated, or the base
business underperformed as a result of persistently weak volumes.
This would lead to EBITDA and FOCF generation underperforming S&P's
base case. Rating pressure could also occur if the company posted
large negative FOCF, resulting in a weakened liquidity position.
S&P could raise the ratings if Valeo Foods materially outperformed
our base case, with adjusted debt to EBITDA reducing sustainably
below 7.0x and FFO cash interest coverage of 2.0x or above over the
next 12 months.
This could occur if Valeo Foods' base business was able to deliver
stronger-than-anticipated volume growth, combined with stronger
benefits from synergies and cross-selling opportunities because the
expansion of IDC was faster than expected. An upgrade would depend
on a disciplined discretionary spending policy, notably on
acquisitions.
RESORTHOPPA LIMITED: KR8 Advisory Named as Administrators
---------------------------------------------------------
Resorthoppa Limited was placed into administration proceedings in
the High Court of Justice Business and Property Courts of England
and Wales, Insolvency and Companies List (Chd), Court Number:
CR-2025-001419, and James Saunders and Michael Lennon of KR8
Advisory Limited were appointed as administrators on March 4, 2025.
Resorthoppa Limited is engaged in travel agency activities.
Its registered office is at Trecerus Industrial Estate, Padstow,
PL28 8RW and it is in the process of being changed to The Lexicon,
10-12 Mount Street, Manchester, M2 5NT
Its principal trading address is at Steward House 2nd Floor,
Commercial Way, Woking, Surrey, England, GU21 6EN
The joint administrators can be reached at:
James Saunders
Michael Lennon
KR8 Advisory Limited
The Lexicon
10 - 12 Mount Street
Manchester, M2 5NT
For further details, please contact:
The Joint Administrators
Email: Matthew.dunnill@kr8.co.uk
WWTE LIMITED: KR8 Advisory Named as Administrators
--------------------------------------------------
WWTE Limited was placed into administration proceedings in the High
Court of Justice Business and Property Courts of England and Wales
Insolvency and Companies List (Chd), Court Number: CR-2025-001418,
and James Saunders and Michael Lennon of KR8 Advisory Limited were
appointed as administrators on March 4, 2025.
WWTE Limited engaged in reservation service activities.
Its registered office is c/o KR8 Advisory Limited, at The Lexicon,
10-12 Mount Street, Manchester, M2 5NT
Its principal trading address is at Steward House 2nd Floor,
Commercial Way, Woking, Surrey, England, GU21 6EN
The joint administrators can be reached at:
James Saunders
Michael Lennon
KR8 Advisory Limited
The Lexicon
10 - 12 Mount Street
Manchester, M2 5NT
For further details, please contact:
The Joint Administrators
Email: Matthew.dunnill@kr8.co.uk
*********
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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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.
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