/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/250411.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 Friday, April 11, 2025, Vol. 26, No. 73 Headlines F R A N C E GETLINK SE: Fitch Assigns 'BB+' Final Rating to EUR600MM Notes I R E L A N D CVC CORDATUS III: Fitch Assigns B-sf Final Rating to Cl. F-RR Debt HARVEST CLO XVI: Moody's Affirms B2 Rating on EUR12.5MM F-R Notes JUBILEE CLO 2018-XXI: Moody's Affirms B3 Rating on EUR12MM F Notes PALMER SQUARE 2025-1: Fitch Assigns 'BBsf' Final Rating to F Notes PALMER SQUARE 2025-1: Moody's Assigns B3 Rating to EUR6.2MM F Notes PRPM FUNDIDO 2025-1: S&P Puts Prelim. B(sf) Rating to E-Dfrd Notes I T A L Y NEXI SPA: Moody's Affirms 'Ba1' CFR & Alters Outlook to Positive YOUNI ITALY 2025-1: DBRS Finalizes B(low) Rating on E Notes L U X E M B O U R G BANQUE HAVILLAND: Court Orders Provisional Enforcement of Judgment BL CONSUMER II: DBRS Confirms BB Rating on Class E Notes R U S S I A INSON JSC: Fitch Affirms 'B' IFS Rating, Outlook Stable S P A I N OBRASCON HUARTE: Moody's Puts 'B3' CFR on Review for Downgrade PYMES SANTANDER 15: DBRS Confirms C Rating on Series C Notes U N I T E D K I N G D O M AD WILLIAMS: FRP Advisory Named as Joint Administrators ATLAS FUNDING 2025-1: DBRS Gives Prov. BB(high) Rating to E Notes HIBBERD DISTRIBUTION: Leonard Curtis Named as Joint Administrators KILBURN DEVELOPMENTS: Forvis Mazars Named as Administrators MURNELLS LIMITED: Begbies Traynor Named as Administrators NORWEGIAN AIR: April 25 Proof of Debt Submission Deadline Set VAPOURCORE ONLINE: Evelyn Partners Named as Administrators Y S RECLAMATION: Begbies Traynor Named as Administrators YOUTH ENQUIRY: Kirks Named as Administrators X X X X X X X X [] BOOK REVIEW: Transnational Mergers and Acquisitions - - - - - =========== F R A N C E =========== GETLINK SE: Fitch Assigns 'BB+' Final Rating to EUR600MM Notes -------------------------------------------------------------- Fitch Ratings has assigned Getlink S.E.'s (GET) EUR600 million green bond issuance a 'BB+' final rating with a Stable Outlook. The proceeds from the new issuance, together with the use of available cash, were used to refinance the EUR850 million green bond due in October 2025. RATING RATIONALE The notes priced below Fitch's rating case. The 'BB+' rating on the new bond reflects GET's 'BBB' consolidated credit assessment, which Fitch then notches down by two notches to reflect GET's subordinated and restricted access to cash flows generated by CLEF. The reduction in GET's debt to EUR600 million from EUR850 million reduces the refinancing risk at HoldCo, leading to a reduction in the downward notching from GET's consolidated credit profile to two notches from three. The final rating is the same as the expected rating because the transaction's final terms are in line with the draft documentation. For an overview of GET's credit profile, including key rating drivers, see 'Fitch Rates Getlink S.E.'s New Notes 'BB+(EXP)' Expected Rating' published 25 March 2025 on www.fitchratings.com. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade GET - A downgrade of the consolidated group's credit profile would lead to a downgrade of GET. - A material increase of debt at GET or GET's subsidiary levels could be rating negative. - Failure to maintain adequate liquidity at GET's level. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade GET - An upgrade of the consolidated group's credit profile could lead to an upgrade of GET. TRANSACTION SUMMARY Getlink issued a five-year EUR600 million green bond on 4 April 2025, with a 4.125% coupon rate and a maturity on 15 April 2030. The proceeds were used to redeem the EUR850 million bond originally due in October 2025. SECURITY The notes are secured by pledge over shares of Eurotunnel Holding SAS and GET Elec Limited. Date of Relevant Committee 24 March 2025 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 Prior ----------- ------ ----- Getlink S.E. Getlink S.E./Senior Secured Debt – Expected Ratings/1 LT LT BB+ New Rating BB+(EXP) ============= I R E L A N D ============= CVC CORDATUS III: Fitch Assigns B-sf Final Rating to Cl. F-RR Debt ------------------------------------------------------------------ Fitch Ratings has assigned CVC Cordatus Loan Fund III DAC - reset debt final ratings, as detailed below. Entity/Debt Rating ----------- ------ CVC Cordatus Loan Fund III DAC A Loans LT AAAsf New Rating A-RRR XS3015758405 LT AAAsf New Rating B-1-RRR XS3015758660 LT AAsf New Rating B-2-RRR XS3015758827 LT AAsf New Rating C-RRR XS3015759122 LT Asf New Rating D-RR XS3015759478 LT BBB-sf New Rating E-RR XS3015759718 LT BB-sf New Rating F-RR XS3015759981 LT B-sf New Rating Transaction Summary CVC Cordatus Loan Fund III DAC is a securitisation of mainly (at least 90%) senior secured obligations with a component of senior unsecured, mezzanine, second lien loans and high-yield bonds. Debt proceeds have been used to redeem the existing notes and fund a portfolio with a target par of EUR500 million. The portfolio is actively managed by CVC Credit Partners Investment Management Limited and the CLO has about a reinvestment period of about 4.5 years and a 7.5 years weighted average life (WAL) test. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch places the average credit quality of obligors at 'B'/'B-'. The Fitch weighted average rating factor of the identified portfolio is 26.8. 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 58.4%. Diversified Asset Portfolio (Positive): The transaction has a concentration limit for the 10 largest obligors of 20%. The transaction also includes various concentration limits, including the maximum exposure to the three largest Fitch-defined industries in the portfolio at 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction includes four Fitch test matrices, two of which are effective at closing. All matrices correspond to a top 10 obligor concentration limit of 20%, fixed-rate obligation limits at 5% and 10.0%, and a 7.5-year WAL covenant. The transaction has two forward matrices corresponding to the same top 10 obligors and fixed-rate asset limits, and a 7.0-year WAL covenant. The forward matrices will be effective six-months-post closing, subject to the aggregate collateral balance (defaults at Fitch collateral value) being at least at the reinvestment target par. The transaction has a reinvestment period of about 4.5 years and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. WAL Step-Up Feature (Neutral): The transaction can extend the WAL by one year, to seven years, on the step-up date, one year after closing. The WAL extension is automatically subject to conditions including satisfying the collateral-quality tests and the aggregate collateral balance being at least equal to the reinvestment target par balance. Cash Flow Modelling (Positive): The WAL used for the Fitch-stressed portfolio analysis was reduced by 12 months. This reduction to the risk horizon accounts for the strict reinvestment conditions envisaged after the reinvestment period. These include passing the coverage tests and the Fitch 'CCC' maximum limit after reinvestment and a WAL covenant that progressively steps down over time after the end of the reinvestment period. In the agency's opinion, these conditions would reduce the effective risk horizon of the portfolio during the stress period. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) across all ratings and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would lead to downgrades of one notch for the class B-R to E-R notes, to below 'B-sf' for the class F-R notes and have no impact on the class A-R debt. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of default and portfolio deterioration. Due to the better metrics and shorter life of the identified portfolio than the stressed-case portfolio, the class B-R, D-R and E-R notes have rating cushions of two notches, the class F-R notes of three notches and the class C-R notes of one notch. The class A-R notes have no rating cushion as they are already at their maximum achievable rating. Should the cushion between the identified portfolio and the stressed-case portfolio be eroded due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR across all ratings and a 25% decrease of the RRR across all ratings of the stressed-case portfolio would lead to downgrades of up to four notches for the class A debt, class B-R notes and class C-R notes, up to three notches for the class D-R notes and to below 'B-sf' for the class E-R and F-R notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR across all ratings and a 25% increase in the RRR across all ratings of the stressed-case portfolio would lead to upgrades of up to three notches, except for the 'AAAsf' rated classes, which are at the highest level on Fitch's scale and cannot be upgraded. During the reinvestment period, based on the stressed-case portfolio, upgrades may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, meaning the notes are able to withstand larger-than-expected losses for the transaction's remaining life. After the end of the reinvestment period, upgrades may occur on stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses on 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 CVC Cordatus Loan Fund III DAC 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 CVC Cordatus Loan Fund III 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. HARVEST CLO XVI: Moody's Affirms B2 Rating on EUR12.5MM F-R Notes ----------------------------------------------------------------- Moody's Ratings has upgraded the ratings on the following notes issued by Harvest CLO XVI DAC: EUR31,000,000 Class C-R Senior Secured Deferrable Floating Rate Notes due 2031, Upgraded to Aa1 (sf); previously on Oct 5, 2023 Upgraded to Aa3 (sf) EUR27,000,000 Class D-R Senior Secured Deferrable Floating Rate Notes due 2031, Upgraded to A3 (sf); previously on Oct 5, 2023 Affirmed Baa2 (sf) Moody's have also affirmed the ratings on the following notes: EUR273,000,000 (Current outstanding amount EUR182,168,054) Class A-R Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf); previously on Oct 5, 2023 Affirmed Aaa (sf) EUR22,000,000 Class B-1-R Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf); previously on Oct 5, 2023 Upgraded to Aaa (sf) EUR20,000,000 Class B-2-R Senior Secured Fixed Rate Notes due 2031, Affirmed Aaa (sf); previously on Oct 5, 2023 Upgraded to Aaa (sf) EUR24,000,000 Class E-R Senior Secured Deferrable Floating Rate Notes due 2031, Affirmed Ba2 (sf); previously on Oct 5, 2023 Affirmed Ba2 (sf) EUR12,500,000 Class F-R Senior Secured Deferrable Floating Rate Notes due 2031, Affirmed B2 (sf); previously on Oct 5, 2023 Affirmed B2 (sf) Harvest CLO XVI DAC, issued in September 2016 and refinanced in March 2021, 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 April 2023. RATINGS RATIONALE The rating upgrades on the Class C-R and D-R notes are primarily a result of the deleveraging of the notes following amortisation of the underlying portfolio since the last rating action in October 2023. The affirmations on the ratings on the Class A-R, B-1-R, B-2-R, E-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 Class A-R notes have paid down by approximately EUR90.3 million (33.1%) since the last rating action in October 2023 and EUR90.8 million (34.9%) since closing. 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 OC ratios are reported at 152.09%, 133.61%, 120.83%, 111.35% and 106.99% compared to August 2023 [2] levels of 137.81%, 125.45%, 116.35%, 109.31% and 105.97%, respectively. 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: EUR337.6m Defaulted Securities: EUR6.6m Diversity Score: 51 Weighted Average Rating Factor (WARF): 3067 Weighted Average Life (WAL): 3.7 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.8% Weighted Average Coupon (WAC): 4.2% Weighted Average Recovery Rate (WARR): 44.06% Par haircut in OC tests and interest diversion test: none The default probability derives from the credit quality of the collateral pool and Moody's 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, using the methodology "Moody's Approach to Assessing Counterparty Risks in Structured Finance" published in October 2024. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analysed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from Moody's other analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. JUBILEE CLO 2018-XXI: Moody's Affirms B3 Rating on EUR12MM F Notes ------------------------------------------------------------------ Moody's Ratings has upgraded the ratings on the following notes issued by Jubilee CLO 2018-XXI DAC: EUR36,000,000 Class B Senior Secured Floating Rate Notes due 2035, Upgraded to Aa1 (sf); previously on Mar 31, 2021 Assigned Aa2 (sf) EUR18,000,000 Class C-1 Deferrable Mezzanine Floating Rate Notes due 2035, Upgraded to A1 (sf); previously on Mar 31, 2021 Assigned A2 (sf) EUR7,000,000 Class C-2 Deferrable Mezzanine Fixed Rate Notes due 2035, Upgraded to A1 (sf); previously on Mar 31, 2021 Assigned A2 (sf) Moody's have also affirmed the ratings on the following notes: EUR250,000,000 Class A Senior Secured Floating Rate Notes due 2035, Affirmed Aaa (sf); previously on Mar 31, 2021 Assigned Aaa (sf) EUR29,000,000 Class D Deferrable Mezzanine Floating Rate Notes due 2035, Affirmed Baa3 (sf); previously on Mar 31, 2021 Assigned Baa3 (sf) EUR20,000,000 Class E Deferrable Junior Floating Rate Notes due 2035, Affirmed Ba3 (sf); previously on Mar 31, 2021 Assigned Ba3 (sf) EUR12,000,000 Class F Deferrable Junior Floating Rate Notes due 2035, Affirmed B3 (sf); previously on Mar 31, 2021 Assigned B3 (sf) Jubilee CLO 2018-XXI DAC, originally issued in December 2018 and refinanced in March 2021, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Alcentra Limited. The transaction's reinvestment period will end in April 2025. RATINGS RATIONALE The rating upgrades on the Class B, C-1 and C-2 notes are primarily a result of the benefit of the shorter period of time remaining before the end of the reinvestment period in April 2025. The affirmations on the ratings on the Class A, D, E and F notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. In light of reinvestment restrictions during the amortisation period, and therefore the limited ability to effect significant changes to the current collateral pool, Moody's analysed the deal assuming a higher likelihood that the collateral pool characteristics would maintain an adequate buffer relative to certain covenant requirements. 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: EUR395.0m Defaulted Securities: EUR6.9m Diversity Score: 60 Weighted Average Rating Factor (WARF): 2932 Weighted Average Life (WAL): 4.45 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.86% Weighted Average Coupon (WAC): 3.55% Weighted Average Recovery Rate (WARR): 43.94% Par haircut in OC tests and interest diversion test: none The default probability derives from the credit quality of the collateral pool and Moody's 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 Moody's are 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. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: Once reaching the end of the reinvestment period in April 2025, the main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Weighted average life: The notes' ratings are sensitive to the weighted average life assumption of the portfolio, which could lengthen as a result of the manager's decision to reinvest in new issue loans or other loans with longer maturities, or participate in amend-to-extend offerings. The effect on the ratings of extending the portfolio's weighted average life can be positive or negative depending on the notes' seniority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analysed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from 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. PALMER SQUARE 2025-1: Fitch Assigns 'BBsf' Final Rating to F Notes ------------------------------------------------------------------ Fitch Ratings has assigned Palmer Square European Loan Funding 2025-1 DAC notes final ratings, as detailed below. Entity/Debt Rating ----------- ------ Palmer Square European Loan Funding 2025-1 DAC A XS2999623775 LT AAAsf New Rating B XS2999624070 LT AAsf New Rating C XS2999624401 LT Asf New Rating D XS2999624740 LT BBB-sf New Rating E XS2999625044 LT BB+sf New Rating F XS2999625390 LT BBsf New Rating Subordinated XS2999625713 LT NRsf New Rating Transaction Summary Palmer Square European Loan Funding 2025-1 DAC is an arbitrage cash flow CLO that is being serviced by Palmer Square Europe Capital Management LLC. Net proceeds from the the notes have been used to purchase a static pool of primarily secured senior loans and bonds, with a target par of EUR630 million. KEY RATING DRIVERS 'B+'/'B' Portfolio Credit Quality (Neutral): Fitch places the average credit quality of obligors in the 'B+/B' category. The Fitch weighted average rating factor (WARF) of the identified portfolio is 23. High Recovery Expectations (Positive): Senior secured obligations and first-lien loans make up around 95.4% of the portfolio. 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 current portfolio is 63.2% Diversified Portfolio Composition (Positive): The largest three industries comprise 33.9% of the portfolio balance, the top 10 obligors represent 9.2% of the portfolio balance and the largest five obligors represents 5% of the portfolio. Static Portfolio (Positive): The transaction does not have a reinvestment period and discretionary sales are not permitted. Fitch's analysis is based on the current portfolio and stressed by applying a one-notch reduction to all obligors with a Negative Outlook (floored at 'CCC-'), which is 7.4% of the indicative portfolio. After the adjustment on Negative Outlook, the portfolio WARF would be 23.5. Deviation from MIR: The minus one-notch deviation from the model-implied ratings (MIR) for the class B, C, and F notes and the minus two-notch deviation for the class D notes reflect the insufficient breakeven default rate cushion on the Negative Outlook portfolio at the MIR, considering the uncertain macro-economic conditions that increase risk. 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 current portfolio would lead to downgrades of up to three notches for the notes. 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. Due to the better WARF of the current portfolio than the Negative Outlook portfolio and their deviation from their MIRs, the class B, C, and F notes display rating cushions of one notch, the class D of two notches and the class A and E have no rating cushion. Should the cushion between the current portfolio and the Fitch-stressed portfolio erode due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to three notches for the 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 an upgrade of up to five notches for the rated notes, except for the 'AAAsf' rated notes, which are at the highest level on Fitch's scale and cannot be upgraded. Upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement 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 Palmer Square European Loan Funding 2025-1 DAC 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 Palmer Square European Loan Funding 2025-1 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. PALMER SQUARE 2025-1: Moody's Assigns B3 Rating to EUR6.2MM F Notes ------------------------------------------------------------------- Moody's Ratings announced that it has assigned the following definitive ratings to notes issued by Palmer Square European Loan Funding 2025-1 Designated Activity Company (the "Issuer"): EUR428,400,000 Class A Senior Secured Floating Rate Notes due 2034, Assigned Aaa (sf) EUR69,300,000 Class B Senior Secured Floating Rate Notes due 2034, Assigned Aa1 (sf) EUR33,500,000 Class C Senior Secured Deferrable Floating Rate Notes due 2034, Assigned A2 (sf) EUR31,200,000 Class D Senior Secured Deferrable Floating Rate Notes due 2034, Assigned Baa3 (sf) EUR23,600,000 Class E Senior Secured Deferrable Floating Rate Notes due 2034, Assigned Ba3 (sf) EUR6,200,000 Class F Senior Secured Deferrable Floating Rate Notes due 2034, Assigned B3 (sf) RATINGS RATIONALE The rationale for the ratings is based on a consideration of the risks associated with the CLO's portfolio and structure as described in Moody's methodologies. The Issuer is a static CLO. The issued notes are collateralized primarily by broadly syndicated senior secured corporate loans. The portfolio is fully ramped up as of the closing date. Palmer Square Europe Capital Management LLC may sell assets on behalf of the Issuer during the life of the transaction. Reinvestment is not permitted and all sales and principal proceeds received will be used to amortize the notes in sequential order. In addition to the six classes of notes rated by us, the Issuer has issued EUR43,300,000 of Subordinated Notes which are not rated. The transaction incorporates interest and par coverage tests which, if triggered, divert interest and principal proceeds to pay down the notes in order of seniority. 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. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The servicer's sale decisions will also affect the notes' performance. Moody's modeled the transaction using a cash flow model based on the Binomial Expansion Technique, as described in Section 2.3 of the "Moody's Global Approach to Rating Collateralized Loan Obligations" rating methodology published in May 2024. Moody's used the following base-case modeling assumptions: Par Amount: EUR630,374,366 Diversity Score: 66 Weighted Average Rating Factor (WARF): 2655 Weighted Average Spread (WAS): 3.51% (actual spread vector of the portfolio) Weighted Average Coupon (WAC): 2.69% (actual spread vector of the portfolio) Weighted Average Recovery Rate (WARR): 44.06% Weighted Average Life (WAL): 4.4 years (actual amortization vector of the portfolio) PRPM FUNDIDO 2025-1: S&P Puts Prelim. B(sf) Rating to E-Dfrd Notes ------------------------------------------------------------------ S&P Global Ratings assigned its preliminary credit ratings to PRPM Fundido 2025-1 DAC's class A, B-Dfrd, C-Dfrd, D-Dfrd, and E-Dfrd notes. At closing, PRPM Fundido 2025-1 DAC will also issue unrated class F and RFN notes. S&P said, "Our preliminary ratings address the timely payment of interest and the ultimate payment of principal on the class A notes. Our preliminary ratings on the class B-Dfrd, C-Dfrd, D-Dfrd and E-Dfrd notes address the ultimate payment of interest and principal on these notes, and timely payment of interest when they become the most senior class of notes outstanding. Unpaid interest will not accrue additional interest and will be due at the notes' legal final maturity." Credit enhancement for the rated notes will comprise mainly subordination. A reserve fund will be fully funded at closing and provide mainly liquidity support for the payment of senior fees and interest due on the class A and B notes, when it becomes the most senior note outstanding. Any excess of the cash reserve over its required amount provides credit support. The provisional pool of €392.6 million originated by multiple lenders, with the main ones being Banco de Sabadell S.A. (Sabadell), Abanca Corporacion Bancaria S.A. (Abanca), and Cajamar Caja Rural S.C.C. (Cajamar). The assets are first and lower-ranking reperforming mortgages secured primarily on residential properties. PRPM Fundido 2025-1 DAC, the issuer of the RMBS notes, is an Irish SPV. The issuer will purchase FTA bonds issued by the three Casa VI FTA compartments, a Spanish SPV: FT Casa VI – Cebreiro, FT Casa VI – Alpujarras, and FT Casa VI - Garrotxa. The FTA bonds are backed by mortgage certificates pledged in favor of the RMBS noteholders. S&P said, "We consider the Spanish and Irish issuers to be bankruptcy remote entities, and we have received preliminary legal opinions that indicate the sale of the assets would survive the seller's insolvency." While S&P has not finalized our analysis of these opinions, it expectd to assign final ratings at closing, subject to a satisfactory review of the transaction documents and legal opinions. Additionally, Sabadell, Abanca, Cajamar, and Pepper Spanish Servicing, S.L.U (Pepper) will act as special servicers on these assets and master servicers of the overall portfolio. Hispania Asset Management (HAM) will conduct recovery activities. The application of S&P's structured finance sovereign risk criteria does not constrain the preliminary ratings. Preliminary ratings Class Prelim. rating* Class size (%) A AAA (sf) 55.50 B-Dfrd* AA (sf) 9.00 C-Dfrd* A+ (sf) 3.00 D-Dfrd* BBB (sf) 3.50 E-Dfrd* B (sf) 5.500 F NR 23.50 RFN NR 1.66 *S&P's preliminary ratings address timely receipt of interest and ultimate repayment of principal on the class A notes and the ultimate payment of interest and principal on the other rated notes. Its preliminary ratings also address timely payment of current interest due, when the deferrable notes become the most senior outstanding class. Any deferred and unpaid interest is due by the legal final maturity. NR--Not rated. Dfrd--Deferrable. ========= I T A L Y ========= NEXI SPA: Moody's Affirms 'Ba1' CFR & Alters Outlook to Positive ---------------------------------------------------------------- Moody's Ratings has affirmed the Ba1 long term corporate family rating and the Ba1-PD probability of default rating of Nexi S.p.A. Concurrently, Moody's have also affirmed the Ba1 senior unsecured instruments ratings issued by the company. The outlook has been changed to positive from stable. RATINGS RATIONALE The rating action considers continued good performance, highlighting the company's strong position as a payment solutions provider in Europe, and management's commitment to improve its financial policy as indicated previously and then reiterated and strengthened in its 2024 results call. These increase the likelihood for Nexi to establish a track record of reaching and maintaining credit metrics in line with the guidance for a higher rating over the next 12 months. The company recently reiterated its focus on continuing gradual net leverage reduction towards 2.0-2.5x on a company-defined EBITDA basis (2.7x as of December 2024) and clearly stated maintaining strong credit metrics as a priority for its capital allocation. Moody's-adjusted gross leverage improved to 3.7x during 2024 from 4.7x in 2023 on the back of positive performance and gross debt reduction. Moody's expects further EBITDA growth over the coming years and gross debt reduction during 2025 (excluding funds raised to refinance 2026 maturities) could improve Moody's-adjusted leverage to within the expectations for a higher rating level. Shareholder remuneration is also an important priority for Nexi's capital allocation, and the company instated a dividend policy that envisages a EUR300 million distribution in 2025, expected to gradually grow over time. Furthermore, the company will execute another share buyback program during the year, amounting to an additional EUR300 million. Moody's assesses that the dividend policy provides sufficient flexibility from a cash flow generation capacity for the company to improve and maintain strong credit metrics, in particular in case performance is weaker than expected. Moody's anticipates Nexi's acquisition strategy will continue to be disciplined and most likely consist of small, cash funded bolt-ons. Moody's also expects that the use of proceeds of any significant divestment would take into account the company commitments to improving and maintaining strong credit metrics. However, significant disposals could also hamper the company's scale and business profile and could act as a constraint to further upward pressure. Nexi's leading position in its key markets; high barriers to entry in the payment processing market; capacity to generate good FCF; and scale, which is a key source of competitive advantage, support its Ba1 rating. Conversely, Nexi's relative geographical concentration, with majority of revenue generated in Italy and Nordic countries; a certain degree of product line and customer concentration; and intense competition, constrain the rating. RATING OUTLOOK Nexi's positive rating outlook reflects Moody's expectations that upward rating pressure could build over the next 12 months if the company develops a track record of improving and maintaining credit metrics in line with the expectations for a higher rating for a sustained period. The outlook incorporates Moody's assumptions that there will be no significant increase in leverage from any future debt-funded acquisitions and that the company will maintain good liquidity. LIQUIDITY Nexi has very good liquidity, supported by own cash and equivalents on balance sheet around EUR1.5 billion as of December 2024, strong FCF generation capacity and, pro forma for the recently announced refinancing transaction, a fully undrawn EUR1 billion revolving credit facility (RCF). Additionally, the group has dedicated clearing and overdraft facilities to cover working capital needs, consisting of factoring lines of up to EUR4.2 billion and up to EUR2.4 billion of bilateral credit facilities as of December 2024. These facilities are used to cover Nexi's working capital needs because of the requirement to fund the differences in the timing of settlement between counterparties in the merchant acquiring business and the funding of customer receivables on behalf of its co-issuer banks in the issuing business. Some loans, the majority of which maturing in 2025 and 2026, are subject to a net leverage-based financial maintenance covenant currently set at 5.25x. Moody's expects the company will maintain ample headroom to this threshold. STRUCTURAL CONSIDERATIONS Nexi's debt instruments all rank pari passu as unsecured liabilities of the company. Consequently, the instruments rated by us have also been affirmed at Ba1, at the same level as the CFR. This reflects the relatively small size of the liabilities of operating subsidiaries, including trade payables, pensions and operating leases that rank ahead. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Positive rating pressure could develop if Nexi's revenue, EBITDA and geographical diversification continue to improve; EBITDA margin remains strong reflecting the company's competitive position; the company builds a track record of balanced financial policy with company-defined net leverage reaching and stabilizing at its target around 2.0x-2.5x, such that Moody's-adjusted gross leverage improves towards 3.0x on a sustained basis; good FCF generation and liquidity. Negative rating pressure could develop if Nexi's revenue and EBITDA development is weaker than anticipated; there is a change in financial policy target or priority from debt repayment to M&A or shareholder remuneration such that Moody's-adjusted gross leverage is forecast to weaken to above 4.0x on a sustained basis or for a longer period; or FCF generation or liquidity deteriorate. ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS Nexi's stronger financial policy commitment to achieving and maintaining credit metrics that can be commensurate to a higher rating level was an important governance consideration for the rating action. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Business and Consumer Services published in November 2021. COMPANY PROFILE Headquartered in Milan, Italy, Nexi is a leading provider of digital payment solutions in Europe, offering products, technologies and capabilities across the payments ecosystem. The company is present in more than 25 countries and is the leading European merchant acquirer, in terms of merchants served and overall transaction value handled, and payment processor, in terms of payment cards managed and total transaction value handled. Its activities include merchant acquiring, issuer processing, card issuing, point of sale (POS) and ATM management, and other technology-driven services to financial institutions, individual cardholders and corporate clients. During 2024, the company reported net revenues of around EUR3.5 billion and company-adjusted EBITDA of around EUR1.9 billion. YOUNI ITALY 2025-1: DBRS Finalizes B(low) Rating on E Notes ----------------------------------------------------------- DBRS Ratings GmbH finalized provisional credit ratings on the following classes of notes (collectively, the Rated Notes) issued by Youni Italy 2025-1 S.r.l. (the Issuer): -- Class A Notes at AA (sf) -- Class B Notes at A (sf) -- Class C Notes at BBB (sf) -- Class D Notes at BB (low) (sf) -- Class E Notes at B (low) (sf) Morningstar DBRS did not rate the Class X Notes and Class R Notes also issued in the transaction. The credit rating of the Class A Notes addresses the timely payment of scheduled interest and the ultimate repayment of principal by the final maturity date. The credit ratings of the Class B, Class C, Class D, and Class E Notes address the ultimate payment of interest but the timely payment of scheduled interest when they are the most senior class, and the ultimate repayment of principal by the final maturity date. The transaction is a securitization of fixed-rate consumer loans granted by Younited S.A., Italian Branch (the originator) to private individuals residing in Italy. CREDIT RATING RATIONALE Morningstar DBRS' credit ratings are based on the following analytical considerations: -- The transaction's structure, including the form and sufficiency of available credit enhancement to withstand stressed cash flow assumptions and repay the Issuer's financial obligations according to the terms under which the Rated Notes are issued -- The credit quality and the diversification of the collateral portfolio, its historical performance and the projected performance under various stress scenarios -- The operational risk review of the originator's capabilities with regard to originations, underwriting and servicing -- The transaction parties' financial strength with regard to their respective roles -- The consistency of the transaction's structure with Morningstar DBRS' "Legal and Derivative Criteria for European Structured Finance Transactions" methodology -- Morningstar DBRS' long-term sovereign credit rating on the Republic of Italy, currently BBB (high) with a Positive trend TRANSACTION STRUCTURE The transaction is static and allocates collections in separate interest and principal priorities of payments. The transaction benefits from a cash reserve initially funded with the Notes proceeds equal to 1.25% of the outstanding Rated Notes balance, subject to a floor of EUR 500,000, which as part of interest available funds can be used to cover senior expenses, servicing fee, senior hedging payments and non-deferred interest payments on the Rated Notes. If the interest collections and the cash reserve are not sufficient, principal funds can also be re-allocated to cover senior expenses, servicing fee, senior hedging payments, and interest payments on the most senior class of Rated Notes. Morningstar DBRS considers the interest rate risk for the transaction to be limited as an interest rate swap is in place to reduce the mismatch between the fixed-rate collateral and the Rated Notes. TRANSACTION COUNTERPARTIES Citibank, N.A., London Branch is the account bank for the transaction. Morningstar DBRS privately rates Citibank, N.A., London Branch, which meets the Morningstar DBRS criteria to act in such capacity. The transaction documents contain downgrade provisions largely consistent with Morningstar DBRS' criteria. Citibank Europe plc is the initial swap counterparty for the transaction. Morningstar DBRS has a Long-Term Issuer Rating of AA (low) on Citibank Europe plc which meets the criteria to act in such capacity. The transaction documents contain downgrade provisions largely consistent with Morningstar DBRS' criteria. PORTFOLIO ASSUMPTIONS While the historical data is shorter than most Italian unsecured consumer loan portfolios analyzed by Morningstar DBRS, the observed default rates are generally comparable. Morningstar DBRS also received data on two distinct sub-portfolios with a significantly more seasoned sub-portfolio accounting for approximately one quarter of total collateral at closing. Consequently, Morningstar DBRS established expected default assumptions for each sub-portfolio based on the respective seasoning and borrower risk band compositions and constructed a portfolio lifetime expected default of 5.3% for this transaction. Additionally, Morningstar DBRS set the expected recovery at 25% or a loss given default (LGD) of 75%, also comparable with other Italian consumer loan portfolios. Morningstar DBRS' credit ratings on the Rated Notes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations for each of the Rated Notes are the related Interest Amounts and the Class Balances. Notes: All figures are in euros unless otherwise noted. =================== L U X E M B O U R G =================== BANQUE HAVILLAND: Court Orders Provisional Enforcement of Judgment ------------------------------------------------------------------ By commercial judgment no. 2025TALCH02/00559 (docket number TAL-2024-06491) of March 28, 2025, the District Court in and of Luxembourg-City, second chamber, sitting in commercial matters, ruling contradictorily and in a public hearing, after having heard in council chamber the public limited company BANQUE HAVILLAND S.A., the Luxembourg Financial Sector Supervision Authority (Commission de Surveillance du Secteur Financier) and the Administrators, Laurent Fisch of Fisch Legal and Christophe Vandendorpe of EY Strategy and Transactions, in their conclusions, has supplemented judgment no. 2024TALVCOM/00116 of August 9, 2024 as follows: -- declares that the restitution by the public limited company BANQUE HAVILLAND S.A. of fungible securities as referred to in Article 1(1) of the law of August 1, 2001 on the circulation of securities, as amended, is not subject to the administrators' prior authorization; and -- has ordered the provisional enforcement of the Judgment nothwithstanding any appeal, on the minute, before registration and without security. BL CONSUMER II: DBRS Confirms BB Rating on Class E Notes -------------------------------------------------------- DBRS Ratings GmbH confirmed the credit ratings on the notes issued by BL Consumer Issuance Platform II S.a r.l., acting in respect of its Compartment BL Consumer Credit 2024 (the Issuer) as follows: -- Class A Notes at AAA (sf) -- Class B Notes at AA (low) (sf) -- Class C Notes at A (low) (sf) -- Class D Notes at BBB (sf) -- Class E Notes at BB (sf) -- Class F Notes at B (high) (sf) -- Class G Notes at CCC (sf) -- Class X1 Notes at CCC (sf) -- Class X2 Notes at CCC (sf) The credit ratings of the Class A and Class B Notes address the timely payment of scheduled interest and the ultimate repayment of principal by the legal final maturity date. The credit ratings of the Class C, Class D, Class E, Class F and Class G Notes address the ultimate payment of scheduled interest while subordinated, then timely payment of scheduled interest as most senior class of notes outstanding, and the ultimate repayment of principal by the legal final maturity date. The credit ratings of the Class X1 and Class X2 Notes address the ultimate payment of interest and the ultimate repayment of principal by the legal final maturity date. The Issuer is a securitization of revolving loans with some fixed-rate instalment loans granted to individual residents in Belgium and Luxembourg and serviced by Buy Way Personal Finance (Buy Way). CREDIT RATING RATIONALE The credit rating confirmations follow an annual review of the transaction and are based on the following analytical considerations: -- The portfolio performance, in terms of payment date in terms of delinquencies, yield, payment rates, charge-offs and cumulative default rate, as of the January 2025 payment date -- The non-occurrence of a revolving termination event -- The current level of credit enhancement available and ability of Issuer- and transaction-specific structural features to cover expected losses at their respective rating levels -- The consistency of the transaction's structure with "Legal and Derivative Criteria for European Structured Finance Transactions" methodology PORTFOLIO PERFORMANCE AND ASSUMPTIONS As of the January 2025 payment date, one-to-two months and two-to-three months in arrears ratios were 0.48% and 0.25%, respectively, while more than three months in arrears ratio was 0.10%. The annualized portfolio yield, monthly principal payment rate (MPPR) and annualized charge-off rate for the revolving loans portfolio were at 14.4%, 9.2% and 5.0% respectively. On the other hand, the cumulative default rate for instalment loans was at 2.4% as of January 2025 payment date. The Issuer's MPPR for the revolving loans portfolio has been stable between around 9% and 10% since closing. Morningstar DBRS also notes that the zeroing legislation applicable to Belgian revolving loans prescribes a minimum payment under which the due balance of a revolving loan must reach zero after up to 96 months. Based on the historical trend, Morningstar DBRS elected to maintain the expected MPPR at 8.0%. The portfolio yield for the revolving loans portfolio, influenced by the Belgian usury rate, as Buy Way has historically set the Belgian revolving loan interest rate at the legal maximum for both new and existing accounts, has also been stable at around 14.5% since closing. Morningstar DBRS maintained the expected yield at 12.0%, as the usury rates are likely to decline in the near or medium term. Morningstar DBRS also notes that annualized charge-off rates for the revolving loans portfolio has increased from closing, and the current level of 5.0% as of January 2025 payment date is above our expected level. However, due to lack of sufficient historical data from the Issuer to confirm a consistent trend of charge-off exceeding our expected level, we elected to maintain the expected charge-off rate for the revolving loans at 4.4%. The cumulative default rate for instalment loans have steadily increased since closing but remains below our assumed level. Morningstar DBRS maintained the cumulative default rate for instalment loans at 7.0%. After considering the historical recovery performance and benchmarking against comparable with French consumer loan portfolios, Morningstar DBRS elected to maintain the expected recovery for the overall portfolio at 40.0%. CREDIT ENHANCEMENT As of the January 2025 payment date, credit enhancement based on subordination levels, for the Class A, Class B, Class C, Class D, Class E and Class F Notes was at 21.0%, 13.0%, 9.0%, 6.0%, 4.0% and 2.0%, respectively, unchanged from closing. The transaction includes a reserve with a target amount of 1.3% of the outstanding balance of the Class A, Class B and Class C Notes that is available to cover any shortfalls in senior expenses, senior hedging payments (only applicable during the amortization period if the Notes are not fully redeemed on the first optional redemption date) and interest payments on the Class A, Class B and Class C Notes (subject to the most senior class status and/or the PDL condition). There is also a spread account (with zero balance at closing) to trap excess spread if it falls below 4%. COUNTERPARTIES Citibank Europe plc, Luxembourg Branch is the Issuer account bank for the transaction. Based on the Morningstar DBRS Long-Term Issuer Rating of the Citibank Europe plc at AA (low) and the downgrade provisions outlined in the transaction documents consistent with "Legal and Derivative Criteria for European Structured Finance Transactions" methodology, Morningstar DBRS considers the risk arising from the exposure to Citibank Europe plc to be consistent with the credit ratings assigned. Citibank Europe plc is also the interest rate hedge counterparty for the transaction. Morningstar DBRS' Long-Term Issuer Rating of the Citibank Europe plc at AA (low) is consistent with the first rating threshold as described in Morningstar DBRS' "Legal and Derivative Criteria for European Structured Finance Transactions" methodology. The downgrade provisions in the swap documentation are consistent with Morningstar DBRS' criteria. Notes: All figures are in euros unless otherwise noted. =========== R U S S I A =========== INSON JSC: Fitch Affirms 'B' IFS Rating, Outlook Stable ------------------------------------------------------- Fitch Ratings has affirmed Uzbekistan-based Joint Stock Company Insurance Organization INSON an Insurer Financial Strength (IFS) Rating of 'B'. The Outlook is Stable. The rating reflects INSON's moderate operating scale in the Ubzek insurance market, weak capitalisation and low and volatile financial performance. Key Rating Drivers Medium-Sized Domestic Insurer: INSON's company profile reflects its moderate diversification and competitive position in the Ubzek insurance market, with a small operating scale and a 2.7% market share at end-2024. The insurer's business risk profile is negatively affected by its significant, albeit decreasing, exposure to financial risk insurance, which exposes the company's financial performance to high volatility in the event of macroeconomic stress. There is also limited transparency on the quality of underlying loans. Weak Capitalisation: Fitch assesses INSON's capital position as weak, hindered by rapid business growth and low internal capital generation. The company's capitalisation, assessed using Fitch's Global Prism model, scored 'Weak' at the end of both 2022 and 2023, and Fitch expects it to remain 'Weak' at the end of 2024. The company's regulatory capital was UZS63 billion at the end of 2024, with its regulatory solvency margin improving to 124% from 102% at the end of 2023 and 107% at the end of 2022. However, given the weak internal capital generation, Fitch anticipates that INSON will rely on capital injections to meet the increasing capital requirements imposed by the regulator. Low, Volatile Profitability: INSON has a record of positive but modest earnings. In 2024, profit was UZS0.6 billion and return on equity (ROE) about 1%, according to statutory reporting. According to the latest available IFRS report, INSON achieved a ROE of 3% in 2023. This is a notable decrease from 15% in 2022; the average ROE between 2021 and 2024 was 5%. INSON's underwriting performance is negatively affected by high acquisition and administrative expenses; however, investment income has consistently contributed to earnings in years of poor underwriting results, ensuring net income has remained positive. Improved Investment Risk: Fitch considers INSON's investment and asset risk high but improved in 2024. This assessment is based on a decreasing risky asset ratio, which was 23% at the end of 2024, according to statutory reporting. Risky assets include the company's investments in affiliates. This is significantly lower than 45% at the end of 2023 and 88% at the end of 2022. The rest of the investment portfolio, about 81% of total investments, is held in cash or local bank deposits with several state-owned and large private banks that are rated in the 'B' or 'BB' categories. Modest Use of Reinsurance: INSON makes limited use of reinsurance, as indicated by a high net-to-gross premium ratio across key business lines, including motor, financial risk, property, and accident insurance. An exception is marine, aviation and transport insurance, due to fronting activities for other insurers. The credit quality of reinsurers varies, with the panel comprising local insurance companies and large international reinsurers with 'A' category ratings. Like its local peers, INSON is exposed to potentially significant catastrophe risk. The company lacks sufficient catastrophe coverage and does not perform internal assessments of the potential maximum exposure within its insurance portfolio. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Significant erosion of the capital position on a sustained basis Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Significant improvement in the company profile assessment, demonstrated by larger operating scale, better diversification and a lower business risk profile. - Improvement in the capital position alongside an improvement in the asset quality of the insurer's investment portfolio. 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 Prior ----------- ------ ----- Joint Stock Company Insurance Organization INSON LT IFS B Affirmed B ========= S P A I N ========= OBRASCON HUARTE: Moody's Puts 'B3' CFR on Review for Downgrade -------------------------------------------------------------- Moody's Ratings has placed Obrascon Huarte Lain S.A.'s ("OHLA") credit ratings, including its B3 corporate family rating and B3-PD probability of default rating on review for downgrade. Concurrently, Moody's have also placed the B3 instrument rating on the existing backed senior secured notes, issued by subsidiary OHL Operaciones S.A.U., on review for downgrade. Previously, the outlook on both entities was stable. RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS OHLA's review for downgrade reflects significant corporate governance risks, including allegations of insider trading and shareholder conflicts over financial management and cash flow forecast, alleged deficiencies in internal controls and conflicts of interest, and restricted access to pertinent information. These governance issues were highlighted by a recent notification of share disposal by a new shareholder within the 30-day lock-up period mandated by Article 19, paragraph 11 of the Market Abuse Regulation (596/2014). The governance concerns are exacerbated by a board that is dominated by non-independent board members, following the recent resignation of four board members (collectively representing 18% of OHLA's share capital), which reduced the number of independent board members to just two out of seven. In addition, the company's history of aggressive financial policies and unsustainable capital structure, and its intricate corporate framework (comprising both fully-consolidated and equity-accounted joint ventures) further diminishes reporting transparency and complicates the distinction between holding-level and joint venture-level earnings and cash generation. OHLA completed a complex recapitalisation on February 13, 2025. This transaction addressed its previously delayed coupon payment, significantly reduced its gross debt, and enhanced its liquidity with around EUR75 million in net cash proceeds. However, a recent adverse ruling on the Jamal Abul Nasser street road project in Kuwait, requiring OHLA to disburse EUR39.2 million in guarantees, has expedited the need for shareholder liquidity support to meet the agreed-upon financial conditions with the providers of OHLA's bonding lines for maintaining a minimum centralized cash balance in the upcoming quarters. Although the company had previously secured a public commitment from new shareholders for the issuance of EUR50 million in convertible notes to cover future liquidity requirements, the anchor shareholders, with the approval of the newly formed Board of Directors, decided to instead proceed with a rights issue with pre-emptive subscription rights. This approach aims to prevent the dilution of minority shareholders and preserve the controlling power of existing shareholders. Notwithstanding the ratings review, OHLA's ratings continue to be supported by its robust operating performance and its sizeable and diversified order backlog of EUR8.5 billion (equivalent to 23.7 months of sales) focused on relatively resilient public infrastructure projects in Europe and Americas. During this review, Moody's will focus on (i) timely reporting of audited accounts for 2024 with an unqualified auditor opinion, (ii) enforcement of suitable corporate governance and effective internal control measures that align interests of all shareholders and creditors, and (iii) strengthening of OHLA's liquidity profile through the successful execution of up to EUR50 million rights issue and maintenance of all required financial conditions to secure access to bonding lines that ensure business continuity. Factors that could lead to an upgrade or downgrade of the ratings will be updated once the review is completed. Prior to the review, Moody's noted that the ratings could be upgraded if OHLA enhances its liquidity through consistent positive free cash generation and maintains disciplined financial policies. This includes timely addressing the maturity of backed senior secured notes and ensuring continued access to bonding lines essential for ongoing operations by adhering to the required terms and conditions for their maintenance and extension. Moody's also noted that the ratings could be downgraded if the liquidity materially deteriorates due to consistent negative free cash flow or substantial investments in concessions. Additional negative rating pressure could arise from a weakening of operating performance or a failure to secure an extension of bonding lines. LIQUIDITY Despite OHLA's substantial cash balance at joint ventures' level (around EUR346.2 million, which Moody's do not consider readily available), Moody's views OHLA's liquidity as weak. Despite a solid operating performance in 2024 and EUR75 million net proceeds from the recapitalisation transaction, the company still requires additional equity support to maintain an adequate centralised cash balance following the recent unfavorable ruling mandating a EUR40 million disbursement in guarantees related to the Jamal Abul Nasser street road litigation. This equity support is especially critical due to the restrictive financial conditions imposed by banks and the fact that the company has not yet received the expected EUR90 million in net cash proceeds from the favorable ruling in the Qatar metro stations litigation. Although the company does not have access to a committed revolving credit facility, it is permitted to incur up to EUR50 million in additional indebtedness through revolving credit facilities to manage working capital fluctuations. OHLA faces no significant debt maturities before December 2029, when OHL Operaciones S.A.U.'s backed senior secured notes are due. STRUCTURAL CONSIDERATIONS OHLA's capital structure consists of EUR328 million outstanding backed senior secured notes due in December 2029, issued by OHL Operaciones S.A.U., an indirect wholly subsidiary of OHLA. The backed senior secured notes are rated in line with the CFR. OHLA's PDR of B3-PD remains in line with its CFR, reflecting Moody's standard assumptions of 50% family recovery rate. The backed senior secured notes are guaranteed by operating subsidiaries that generate at least 90% of the group's revenue. However, the security package is limited to customary pledge over shares in certain subsidiaries, certain bank accounts, and intercompany receivables. Hence, in Moody's loss given default (LGD) waterfall, they rank pari passu with unsecured trade payables, short-term lease liabilities, and other bank debt at the level of the operating entities. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Construction published in April 2025. CORPORATE PROFILE Headquartered in Madrid, Obrascon Huarte Lain S.A. (OHLA) is one of Spain's leading construction groups. The group's activities include its core engineering and construction business (including the industrial division); and the development of concessions in identified core markets in Europe, North America and Latin America. In 2024, OHLA generated around EUR3.7 billion in sales and EUR142 million in company-reported EBITDA (both excluding the Services division). As of March 2025, OHLA's principal shareholders are the Mexican Amodio family (21% stake) along with José Elias Navarro (10% stake) and Andrés Holzer (8% stake). The remaining shares are in free float, traded on the Spanish Stock Exchanges. PYMES SANTANDER 15: DBRS Confirms C Rating on Series C Notes ------------------------------------------------------------ DBRS Ratings GmbH took the following credit rating actions on the notes issued by FT PYMES Santander 15 (the Issuer), as follows: -- Series B Notes upgraded to BBB (sf) from BBB (low) (sf) -- Series C Notes confirmed at C (sf) The credit ratings on the Series B and Series C Notes address the ultimate payment of interest and principal on or before the legal final maturity date in April 2051. The credit rating actions follow an annual review of the transaction and are based on the following analytical considerations: -- The portfolio performance, in terms of delinquencies, defaults, and losses, as of the January 2025 payment date; -- The one-year base case probability of default (PD), default and recovery rates based on the current portfolio of receivables; and -- The current available credit enhancement to the Series B Notes to cover the expected losses assumed at their credit rating level. The Series C Notes were issued to fund a reserve fund and are in a first-loss position supported only by available excess spread. Given the characteristics of the Series C Notes, as defined in the transaction documents, the default would most likely be recognized at maturity or following an early termination of the transaction. The transaction is a cash flow securitization collateralized by a portfolio of secured and unsecured term loans and credit lines originated by Banco Santander SA (Santander), Banesto, and Banif (prior to their integration into Santander) to corporates, small and medium-size enterprises (SMEs), and self-employed individuals based in Spain. The transaction included a 24-month revolving period, which ended with the January 2022 payment date and the Series A Notes have been amortizing since the April 2022 payment date. PORTFOLIO PERFORMANCE As of the January 2025 payment date, loans two to three months in arrears represented 0.6% of the outstanding portfolio balance, up from 0.4% in April 2024. The 90+ days delinquency ratio remained stable at 0.8%, and the cumulative default ratio slightly increased to 0.7%, up from 0.6% in the same period. PORTFOLIO ASSUMPTIONS AND KEY DRIVERS Morningstar DBRS maintained its one-year base case PD assumption of 2.25%. Morningstar DBRS conducted a loan-by-loan analysis of the outstanding portfolio and updated its default and recovery assumptions based on the current pool of receivables. CREDIT ENHANCEMENT The Series B Notes benefit from 13.7% of credit enhancement provided by the reserve fund, down from 16.0% last year. The decrease in credit enhancement is driven by the amortization of the reserve fund to the floor target level at EUR 75.0 million from the initial level of EUR 150.0 million in October 2024 payment date. The reserve fund was funded through the issuance of the Series C Notes and is available to cover senior fees and interest and principal on the Series B Notes. As of the January 2025 payment date, the reserve fund was at EUR 75.0 million, its target level and floor. Santander acts as the account bank for the transaction. Based on the account bank's reference rating of A (high), which is one notch below the Morningstar DBRS Long Term Critical Obligations Rating of Santander of AA (low), the downgrade provisions outlined in the transaction documents, and other mitigating factors inherent in the transaction structure, Morningstar DBRS considers the risk arising from the exposure to Santander to be consistent with the credit ratings assigned to the notes, as described in Morningstar DBRS's "Legal and Derivative Criteria for European Structured Finance Transactions" methodology. Notes: All figures are in euros unless otherwise noted. =========================== U N I T E D K I N G D O M =========================== AD WILLIAMS: FRP Advisory Named as Joint Administrators ------------------------------------------------------- AD Williams Lydd Ltd was placed into administration proceedings in the High Court of Justice Business and Property Courts in Birmingham Court Number: CR-2025-BHM-000159, and Rajnesh Mittal and Benjamin Jones of FRP Advisory Trading Limited, were appointed as joint administrators on March 26, 2025. AD Williams specialized in the maintenance and repair of motor vehicles. Its registered office is at Unit E1 Fort Wallington Industrial Estate, Military Road, Fareham, PO16 8TT to be changed to FRP Advisory Trading Limited, 2nd Floor, 120 Colmore Row, Birmingham, B3 3BD. Its principal trading address is at Dengemarsh Rd, Lydd, Romney Marsh, TN29 9JH. The joint administrators can be reached at: Rajnesh Mittal Benjamin Jones FRP Advisory Trading Limited 2nd Floor, 120 Colmore Row Birmingham, B3 3BD Further details, contact: The Joint Administrators Tel No: 0121 710 1680 Alternative contact: Karen Webb Email: Karen.webb@frpadvisory.com ATLAS FUNDING 2025-1: DBRS Gives Prov. BB(high) Rating to E Notes ----------------------------------------------------------------- DBRS Ratings Limited assigned provisional credit ratings to the following classes of notes (the notes) to be issued by Atlas Funding 2025-1 Plc (the Issuer): -- Class A notes at (P) AAA (sf) -- Class B notes at (P) AA (high) (sf) -- Class C notes at (P) A (high) (sf) -- Class D notes at (P) BBB (high) (sf) -- Class E notes at (P) BB (high) (sf) -- Class X notes at (P) A (high) (sf) The provisional credit rating on the Class A notes addresses the timely payment of interest and the ultimate repayment of principal on or before the legal final maturity date in July 2062. The provisional credit ratings on the Class B, Class C, Class D, and Class E notes address the timely payment of interest once they are the senior-most class of notes outstanding and until then the ultimate payment of interest and the ultimate repayment of principal on or before the legal final maturity date. The provisional credit rating on the Class X notes addresses the ultimate payment of interest and principal on or before the legal final maturity date. CREDIT RATING RATIONALE The transaction represents the issuance of residential mortgage-backed securities (RMBS) backed by first-lien, buy-to-let (BTL) mortgage loans granted by Lendco Limited (Lendco; the seller or the originator) in the UK. The Issuer is a bankruptcy-remote special-purpose vehicle (SPV) incorporated in the UK. Lendco is a UK specialist property finance lender, which has been offering loans to customers in England and Wales since 2018. Lendco's BTL business targets professional portfolio landlords, often real estate companies or SPVs, which they acquire through the broker marketplace. This is Lendco's fifth securitization with the inaugural transaction, Atlas Funding 2021-1, closing in January 2021, followed by Atlas Funding 2022-1 in May 2022, Atlas Funding 2023-1 in May 2023, and Atlas Funding 2024-1 in May 2024. Liquidity in the transaction is provided by the combination of a liquidity facility (LF) available from closing and a liquidity reserve fund (LRF) that will be funded through excess spread. The LF shall cover senior costs and expenses, senior swap payments, and interest shortfalls on the Class A notes only whereas the LRF shall cover the same items plus interest shortfalls on the Class B notes. In addition, principal borrowing is also envisaged under the transaction documentation and can be used to cover senior costs and expenses as well as interest shortfalls on the senior-most class of notes outstanding but subject to some conditions for the Class B to Class E notes. Interest shortfalls on the Class B to Class E notes, as long as they are not the senior-most class of notes outstanding, shall be deferred and not be recorded as an event of default until the final maturity date or such earlier date on which the notes are fully redeemed. The transaction also features two fixed-to-floating interest rate swaps, given the presence of a large portion of fixed-rate loans (with a compulsory reversion to floating in the future), while the liabilities shall pay a coupon linked to Sonia. Morningstar DBRS based its credit ratings on a review of the following analytical considerations: -- The transaction's capital structure, including the form and sufficiency of available credit enhancement; -- The credit quality of the mortgage portfolio and the ability of the servicer to perform collection and resolution activities. Morningstar DBRS estimated stress-level probability of default (PD), loss given default (LGD), and expected losses (EL) on the mortgage portfolio. Morningstar DBRS used the PD, LGD, and EL as inputs into the cash flow engine. Morningstar DBRS analyzed the mortgage portfolio in accordance with its "European RMBS Insight Methodology"; -- The transaction's ability to withstand stressed cash flow assumptions and repay the Class A, Class B, Class C, Class D, Class E, and Class X Notes according to the terms of the transaction documents. Morningstar DBRS analyzed the transaction structure using Intex DealMaker. Morningstar DBRS considered additional sensitivity scenarios of 0% CPR; -- The structural mitigants in place to avoid potential payment disruptions caused by operational risk, such as a downgrade, and replacement language in the transaction documents; -- Morningstar DBRS' sovereign credit rating on the United Kingdom of Great Britain and Northern Ireland of AA with a Stable trend as of the date of this press release; and -- The expected consistency of the transaction's legal structure with Morningstar DBRS' "Legal and Derivative Criteria for European Structured Finance Transactions" methodology and the presence of legal opinions that are expected to address the assignment of the assets to the Issuer. Notes: All figures are in British pound sterling unless otherwise noted. HIBBERD DISTRIBUTION: Leonard Curtis Named as Joint Administrators ------------------------------------------------------------------ Hibberd Distribution Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts in Manchester, Insolvency & Companies List (ChD) Court Number: CR-2025-MAN-000401, and M J Colman and Megan Singleton of Leonard Curtis, were appointed as joint administrators on March 21, 2025. Hibberd Distribution specialized in the retail sale of electrical household appliances in specialized stores. Its registered office and principal trading address is at Setantii Building, Amy Johnson Way, Blackpool, FY4 2RP. The joint administrators can be reached at: M J Colman Megan Singleton Leonard Curtis 20 Roundhouse Court South Rings Business Park Bamber Bridge Preston, PR5 6DA Further details contact: Tel: 01772 646180 Email: recovery@leonardcurtis.co.uk Alternative contact: Azimunnisa Raj KILBURN DEVELOPMENTS: Forvis Mazars Named as Administrators ----------------------------------------------------------- Kilburn Developments 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-2025-001960, and Adam Harris and Natasha Brodie of Forvis Mazars LLP, were appointed as administrators on March 21, 2025. Kilburn Developments specialized in the development of building projects. Its registered office is at C/O Camrose, 85 New Cavendish Street, Suite 3, London, W1W 6XD Its principal trading address is at 246-248 Kilburn High Road NW6 2BS. The administrators can be reached at: Adam Harris Natasha Brodie Forvis Mazars LLP 30 Old Bailey, London EC4M 7AU Contact information for Administrators: Tel No: +44 (0)20 7063 5061 Email: Sunney.sagoo@mazars.co.uk Optional alternative contact name: Sunney Sagoo MURNELLS LIMITED: Begbies Traynor Named as Administrators --------------------------------------------------------- Murnells 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-2025-001818, and Stephen Katz and David Birne of Begbies Traynor (London) LLP, were appointed as administrators on March 26, 2025. Murnells Limited specialized in the development of building projects. Its registered office is at Unit 3 Ashford Industrial Estate, Shield Road, Ashford, Middlesex, TW15 1AU. Its principal trading address is at Unit 3 Ashford Industrial Estate, Shield Road, Ashford, Middlesex, TW15 1AU. The administrators can be reached at: Stephen Katz David Birne Begbies Traynor (London) LLP Pearl Assurance House 319 Ballards Lane, London N12 8LY Contact information for Administrators: ST-Team@btguk.com Alternative contact name: Lucy Lu NORWEGIAN AIR: April 25 Proof of Debt Submission Deadline Set ------------------------------------------------------------- The office-holders of Norwegian Air UK Limited disclosed pursuant to Rule 14:28 of the Insolvency (England & Wales) Rules 2016, that they intend to declare a final dividend or distribution. Creditors must send their full names and addresses (and those of their Solicitors, if any), together with particulars of their debtors or claims by April 25, 2025 ("the last date for proving") to: The Joint Liquidators Interpath Advisory, Interpath Ltd 10 Fleet Place, London EC4M 7RB England E-mail: NUKCreditors@Interpath.com If so required by notice from the Joint Liquidators, either personally or by their Solicitors, creditors must come in and prove their debts at such time and place as shall be specified in such notice. If they default in providing such proof, they will be excluded from the benefit of any distribution made before such debts are proved. Joint Liquidators: David John Pike Michael Robert Pink Interpath Advisory, Interpath Ltd 10 Fleet Place, London, EC4M 7RB England -- and -- Stuart Irwin Interpath Advisory, Interpath (Ireland) Ltd The Kelvin, 17-25 College Square East Belfast, BT1 6DH Northern Ireland Date of Appointment: December 2, 2021 For further details contact: Thomas Reynolds Tel No.: +44 289 002 1776 VAPOURCORE ONLINE: Evelyn Partners Named as Administrators ---------------------------------------------------------- Vapourcore Online 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-2025-002038, and Simon Jagger and Cameron Gunn of Evelyn Partners LLP were appointed as administrators on March 24, 2025. Vapourcore Online specialized in retail sale in non-specialized stores. Its registered office is at 2nd Floor Hygeia House, 66 College Road, Harrow, HA1 1BE. The administrators can be reached at: Simon Jagger Cameron Gunn Evelyn Partners LLP 22 York Buildings, London WC2N 6JU Further details contact: Teo Flitcroft Tel No: 020 7702 9775 Email: teo.flitcroft@resolvegroupuk.com Y S RECLAMATION: Begbies Traynor Named as Administrators -------------------------------------------------------- Y S Reclamation 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-2025-001577, and Stephen Katz and David Birne of Begbies Traynor (London) LLP, were appointed as administrators on March 21, 2025. Y S Reclamation is a manufacturer of plastic products. Its registered office is at c/o Begbies Traynor (London) LLP, 31st Floor, 40 Bank Street, London, E14 5NR. The administrators can be reached at: Stephen Katz Begbies Traynor (London) LLP 31st Floor, 40 Bank Street London, E14 5NR -- and -- David Birne Begbies Traynor (London) LLP Pearl Assurance House 319 Ballards Lane, London N12 8LY Any person who requires further information may contact: Chris O'Dwyer Begbies Traynor (London) LLP E-mail: RM-team@btguk.com Tel No: 020 7400 7900 YOUTH ENQUIRY: Kirks Named as Administrators -------------------------------------------- Youth Enquiry Service, Brixham Ltd, trading as YES, was placed into administration proceedings in the High Court of Justice Business and Property Courts in Bristol Court Number: CR-2025-001665, and David Gerard Kirk and Daniel Robert Jeeves of Kirks, were appointed as administrators on March 21, 2025. Its registered office is at 5 Barnfield Crescent, Exeter, Devon, EX1 1QT. Its principal trading address is at The Edge, Bolton Street, Brixham, Devon, TQ5 9DH. The administrators can be reached at: David Gerard Kirk Daniel Robert Jeeves Kirks 5 Barnfield Crescent Exeter, EX1 1QT Further details, please contact: Daniel Jeeves Email: daniel@kirks.co.uk Tel: 01392 474303 =============== X X X X X X X X =============== [] BOOK REVIEW: Transnational Mergers and Acquisitions ------------------------------------------------------ Author: Sarkis J. Khoury Publisher: Beard Books Softcover: 292 pages List Price: $34.95 Order your personal copy today at http://is.gd/hl7cni Transnational Mergers and Acquisitions in the United States will appeal to a wide range of readers. Dr. Khoury's analysis is valuable for managers involved in transnational acquisitions, whether they are acquiring companies or being acquired themselves. At the same time, he provides a comprehensive and large-scale look at the industrial sector of the U.S. economy that proves very useful for policy makers even today. With its nearly 100 tables of data and numerous examples, Khoury provides a wealth of information for business historians and researchers as well. Until the late 1960s, we Americans were confident (some might say smug) in our belief that U.S. direct investment abroad would continue to grow as it had in the 1950s and 1960s, and that we would dominate the other large world economies in foreign investment for some time to come. And then came the 1970s, U.S. investment abroad stood at $78 billion, in contrast to only $13 billion in foreign investment in the U.S. In 1978, however, only eight years later, foreign investment in the U.S. had skyrocketed to nearly #41 billion, about half of it in acquisition of U.S. firms. Foreign acquisitions of U.S. companies grew from 20 in 1970 to 188 in 1978. The tables had turned an Americans were worried. Acquisitions in the banking and insurance sectors were increasing sharply, which in particular alarmed many analysts. Thus, when it was first published in 1980, this book met a growing need for analytical and empirical data on this rapidly increasing flow of foreign investment money into the U.S., much of it in acquisitions. Khoury answers many of the questions arising from the situation as it stood in 1980, many of which are applicable today: What are the motives for transnational acquisitions? How do foreign firms plans, evaluate, and negotiate mergers in the U.S.? What are the effects of these acquisitions on competition, money and capital markets; relative technological position; balance of payments and economic policy in the U.S.? To begin to answer these questions, Khoury researched foreign investment in the U.S. from 1790 to 1979. His historical review includes foreign firms' industry preferences, choice of location in the U.S., and methods for penetrating the U.S. market. He notes the importance of foreign investment to growth in the U.S., particularly until the early 20th century, and that prior to the 1970s, foreign investment had grown steadily throughout U.S. history, with lapses during and after the world wars. Khoury found that rates of return to foreign companies were not excessive. He determined that the effect on the U.S. economy was generally positive and concluded that restricting the inflow of direct and indirect foreign investment would hinder U.S. economic growth both in the short term and long term. Further, he found no compelling reason to restrict the activities of multinational corporations in the U.S. from a policy perspective. Khoury's research broke new ground and provided input for economic policy at just the right time. Sarkis J. Khoury holds a Ph.D. in International Finance from Wharton. He teaches finance and international finance at the University of California, Riverside, and serves as the Executive Director of International Programs at the Anderson Graduate School of Business. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. * * * End of Transmission * * *