250508.mbx

250508.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, May 8, 2025, Vol. 26, No. 92 Headlines C Z E C H R E P U B L I C AI SIRONA: S&P Rates Additional EUR575MM First-Lien Term Loan B 'B' G E R M A N Y CURRENTA GROUP: S&P Assigns Prelim 'BB-' LT ICR, Outlook Stable L I T H U A N I A AKROPOLIS: S&P Rates Proposed Green EUR300MM Sr. Unsec. Notes 'BB+' L U X E M B O U R G ACCORINVEST GROUP: Moody's Expects to Rate New Sr. Secured Bonds B2 ACCORINVEST GROUP: S&P Affirms 'B' ICR on Global Refinancing ADECOAGRO S.A.: S&P Affirms 'BB' ICR Following Ownership Change MANGROVE LUXCO: Moody's Hikes CFR to B2, Alters Outlook to Stable QSRP INVEST: Moody's Upgrades CFR to B2, Alters Outlook to Stable TRAVIATA II SARL: Moody's Withdraws 'B3' CFR on Debt Repayment M O N A C O VILLA ROMA: Foreclosed Property Auction Scheduled for May 16 R U S S I A NAVOI MINING: S&P Assigns 'BB-' Rating to Senior Unsecured Bond S P A I N IM CAJAMAR 4: Moody's Raises Rating on EUR12MM Class E Notes to Ca S W E D E N [] SWEDEN: Savings Banks Face Increasing Economic Uncertainty U N I T E D K I N G D O M CHIARO TECHNOLOGY: Chapter 15 Recognition Hearing on May 13 MCLAREN GROUP: S&P Discontinues 'CCC' LT Issuer Credit Rating TASTE OF THE WEST LIMITED: SWBR Named as Administrators - - - - - =========================== C Z E C H R E P U B L I C =========================== AI SIRONA: S&P Rates Additional EUR575MM First-Lien Term Loan B 'B' ------------------------------------------------------------------- S&P Global Ratings has assigned its 'B' issue credit rating to the EUR575 million first-lien term loan B maturing in December 2030 that has been issued by AI Sirona (Luxembourg) Acquisition S.a.r.l., parent to generic drug company Zentiva. The recovery rating of '3' reflects S&P's expectation of meaningful recovery prospects (50%-70%; rounded estimate: 60%) in the event of default. The change in its capital structure has not affected its 'B' issuer credit rating on AI Sirona or the stable outlook on this rating. The transaction will increase the group's total outstanding debt to EUR2.5 billion. Zentiva intends to distribute the proceeds to shareholders, in addition to EUR64 million from the cash on its balance sheet. S&P estimates that the company's recent transaction will increase its leverage, measured as S&P Global Ratings-adjusted debt to EBITDA, to 6.3x in 2025, well above its 2024 estimate of 5.0x-5.5x. Although Zentiva's adjusted leverage is expected to remain within the range we consider commensurate with a 'B' rating, the transaction will limit its headroom. S&P said, “Our operating assumptions for the group are unchanged. We understand that the strategic initiatives Zentiva implemented as part of its turnaround plans are gaining momentum. As a result, sales volumes are rising, and profitability is improving. We anticipate that Zentiva's robust organic growth will be supported by its strong launch pipeline and seamless execution, and that this will enhance profitability and enable it to reduce debt over the next two years." Zentiva retains adequate liquidity through the cash on its balance sheet and committed credit facilities. Liquidity is further supported by the long-dated maturities on Zentiva's existing debt instruments; the closest maturity is in 2028. Assuming that the company does not undertake any large structural mergers or acquisitions, favorable EBITDA movement should help it maintain adjusted leverage below 6.5x in 2025. S&P forecasts that adjusted leverage will decline to below 6.0x in 2026 and that adjusted free operating cash flow will be positive at EUR130 million-EUR140 million in 2025 and 2026. ============= G E R M A N Y ============= CURRENTA GROUP: S&P Assigns Prelim 'BB-' LT ICR, Outlook Stable --------------------------------------------------------------- S&P Global Ratings assigned its preliminary 'BB-' long-term issue credit ratings to Currenta's intermediate parent company, Currenta Group Holding S.a.r.l, and a 'BB-' rating to the EUR1.0 billion senior secured notes, with a '3' recovery rating (recovery range: 50%-70%; rounded estimate: 55%). Macquarie Asset Management seeks to refinance the existing indebtedness of Currenta which it had acquired in 2019/2020. As part of the transaction, Currenta is raising senior secured notes to refinance the existing capital structure, extend maturities, repay existing drawn revolving credit facility (RCF) and fund a shareholder payment. S&P said, "We view the proposed capital structure as highly leveraged, with adjusted leverage of 5.6x-5.8x for year-end 2025. "The stable outlook reflects that we expect gradual improvement in EBITDA over the next 12-18 months, driven by stable revenue and progress on the Fund2Run program. As a result, adjusted debt to EBITDA should improve to 5.3x-5.5x in 2026. We also expect the company to maintain EBITDA interest coverage above 2.0x, a comfortable liquidity buffer with a long-dated maturity profile and that shareholder remuneration via shareholder loan interest and principal repayment will remain flexible and dependent on business conditions. "The final ratings will depend on our receipt and satisfactory review of all final transaction documentation. Accordingly, the preliminary ratings should not be construed as evidence of the final ratings. If the terms and conditions of the final transaction depart from the material we have already reviewed, or if the transaction does not close within what we consider to be a reasonable timeframe, we reserve the right to withdraw or revise our ratings." Currenta is the largest independent operator of chemical parks in Germany, with net sales (excluding passed-through sales) of about EUR1.3 billion a year. The company operates and owns three industrial sites located in Germany's chemical heartland of North-Rhine Westphalia. The geographic proximity along the Rhine and strategic transportation infrastructures allows its clients to supply in a timely manner. The Rhine is one of the rare rivers where it is permitted to transport ammoniac, which is used in the production of dihydrogen (H2). Germany has ambitious plans to develop its H2 sector to reach its carbon reduction's goal over the next two decades and S&P expects Currenta to be well positioned to benefit from this trend in the long term. Its position as the largest independent operator of chemical parks gives Currenta a clear advantage and favorable position over its direct competitors. Currenta has proven its resilience, despite challenging conditions. Since 2020, it has gone through several crises: COVID-19 in 2020, the Bürrig incident in 2021, and the energy crisis following the invasion of Ukraine in 2022. Its reported EBITDA has remained resilient, at EUR240 million-EUR294 million over the past five years, with the reported adjusted EBITDA margin of about 23%. Its revenue profile is composed of mandatory services, energy cost pass-through mechanisms and take-or-pay contracts, allowing Currenta to maintain stable margins despite the surge of energy prices in Germany in 2021 and downturn in the chemicals sector due to the destocking effect in 2023-2024. Most of Currenta's revenue is secured by long-term contracts with pass-through clauses. The company has very strong visibility on its revenue and margins over the next 5-10 years and benefits from contractual downside protection, thanks to long-term contracts for most of its services, which contributes of about 75% of EBITDA. Most contracts benefit from price escalation clauses that allow to pass through inflation of underlying costs. For the business unit Energy, production of electricity and steam works under a consortium self-supply model with key clients (NEMo), Currenta acts as the operator of this consortium with energy prices and volume risks passed through to customers. The length of NEMo's contract is typically 15 years. Currenta receives a pre-defined EBITDA based on an agreed return on capital employed. The company is negotiating with key clients to extend the consortium, and they expect to receive full commitments from clients to progress toward decarbonization and coal phase-out. For the business unit Circularity, customers must use the services of Currenta for the disposal of all waste produced in its chemical parks. The length of contracts is usually at least five years for keys clients, and revenue is formula driven to pass through the cost of energy and includes take-or-pay clauses. Overall, 86% of net sales benefits from costs passed through. The historical renewal rate is close to 100% for all services. The company has an ambitious transformation program, Fund2Run, and aims to achieved EBITDA improvement of about EUR100 million per year. The Fund2Run program started in 2023, and the objectives are to improve the cost structure and invest in new technologies, such as decarbonization and digitalization. Cost optimization comes from workforce reduction, through renegotiation of existing contracts, in particular for energy supply, logistics, or sewage contracts. Currenta is progressing toward its decarbonization targets and aims to exit from coal by 2030. The company has five coal units, one will be fully decommissioned, two will be replaced by electric boilers in 2026 and 2027 and the two remaining will be replaced by H2 and CCUS (carbon capture utilization and storage) gas boilers by 2030. S&P said, "We expect a coal phase-out investment plan of about EUR165 million between 2025 and 2028. We understand that for most new investments, the company has long-term commitments from key clients and negotiates predefined rates of return on investments, translating into an expected improvement of the EBITDA. As of end-2024, 75% of the program has been achieved and the company is on track to deliver the expected EBITDA improvement. We factor into our base case an increase in EBITDA of about EUR50 million in 2025 compared with 2024." Most of Currenta's customer end markets are cyclical. As an operator of chemical parks, the company has no direct exposure to the chemical sector, but the great majority of its customers are chemical producers. It is indirectly affected if the chemicals sector weakens, as this could hinder the operations of its clients, and they may decide to reduce production or reduce capacity. This would reduce volume of products and services provided by Currenta and lower utilization of the utilities. Nevertheless, this risk is partly mitigated by long-term contracts with take-or-pay clauses and a material proportion of its services are mandatory for companies operating in the chemical parks and the resilience demonstrated. Currenta has strong customers and geographic concentration. In 2024, 70% of the company's net sales came from three major clients: Covestro Group (30.3% of net sales), Lanxess Group (23.9%), and Bayer Group (15.8%). Their common history with Currenta and their longstanding relationships are mitigating factors. S&P said, "Nevertheless, we consider this concentration credit negative. We cannot exclude that a client could decide to reduce its presence or leave the park over the medium term. The overall competitiveness of Europe and in particular of Germany could weaken, resulting in the relocation of chemical facilities to lower-cost hubs, such as North America or Asia. We understand that Currenta receives several applications from companies to join the chemical parks and the company has a strict screening process to ensure that the new joiner will add value to the "Verbund" system." Nevertheless, moving from one chemical park to another is time consuming and complex, leading to vacancy and extra costs. Currenta is only present in Germany and is exposed to local change in regulations, energy transition, feedstock supply, or political turmoil for instance. The preliminary 'BB-' rating reflects the highly leveraged capital structure at the transaction's close. S&P said, "We anticipate Currenta's capital structure will be highly leveraged following the transaction's close, with adjusted debt to EBITDA at about 5.6x-5.8x in 2025, deleveraging to 5.3x-5.5x in 2026. We forecast a slight reduction in 2025-2026, as EBITDA improves along with progress on the Fund2Run program and cost optimization. We expect to see a progressive strengthening in the following years, with S&P Global Ratings-adjusted EBITDA margin reaching 14%-15% in 2026 and 15%-16% in 2027. We expect the S&P Global Ratings-adjusted EBITDA to reach EUR320 million-EUR330 million in 2025 and EUR345 million-EUR360 million in 2026, translating into an adjusted leverage of 5.6x-5.8x and 5.3x-5.5x in 2025 and 2026. We expect Currenta to display a strong EBITDA interest coverage of about 3.5x-4.0x in 2025. Our adjusted debt calculation for 2024 includes adjustments for leases (EUR60 million), factoring (EUR50 million), asset retirement obligations (EUR100 million), and pension liabilities (EUR770 million), and cash is netted off where relevant." S&P said, "We forecast Currenta will generate free operating cash flow (FOCF) of EUR10 million-EUR15 million in 2025 but will remain limited due to high capital expenditure (capex) in 2026 and 2027. The company needs recurring maintenance capex of about EUR100 million to operate. In addition, it has special projects such as exiting coal or a construction of a new fire station for about EUR400 million between 2025 and 2029. We forecast total capex of about EUR160 million in 2025 and EUR200 million in 2027. This, combined with EUR50 million-EUR55 million of projected cash interest payments and moderate working capital outflow of about EUR30 million, result in our projected FOCF of EUR10 million-EUR15 million in 2025. "We consider the financial policy neutral, given we view Macquarie Asset Management as a long-term investor. We expect that shareholder remuneration via the repayment of interest and principal on the shareholder loan will remain flexible and depend on business conditions. This is because we understand that Currenta's shareholders remain committed to maintaining prudent leverage. Covenants include a maximum consolidated net leverage ratio of 3.25x after giving effect to any restricted payments as defined by the issuer. We view the EUR1.025 billion shareholder loan as equity under our criteria. The equity treatment reflects our view of Macquarie Asset Management as an infrastructure fund with a relatively long investment horizon, as well as certain features of the loan: it matures three years later than the newly issued senior secured notes; it is contractually subordinated to any senior debt; and is not transferrable unless the company's shares are sold. We also note that there are no events of default or acceleration of repayment, which further supports equity treatment. Finally, we anticipate that any repayment of the shareholder loan will be subject to covenants. "The stable outlook reflects our expectation of gradual improvement in EBITDA over the next 12-18 months driven by stable revenue and progress on the Fund2Run program. As a result, adjusted debt to EBITDA should improve to 5.3x-5.5x in 2026. We also expect the company to maintain EBITDA interest coverage above 2x, a comfortable liquidity buffer with a long-dated maturity profile, and we expect shareholder remuneration via shareholder loan interest and principal repayment will remain flexible and dependent on business conditions." S&P could lower the rating if: -- The company's adjusted debt to EBITDA deteriorates to above 6.5x, with no prospect for a swift improvement; -- Currenta fails to achieve EBITDA and margin growth from the transformation plan we include in our base case; -- FOCF turns negative and this leads to a weakening in liquidity; or -- The company's financial policy becomes more aggressive, possibly as a result of further debt-funded acquisitions or shareholder returns. S&P could raise its ratings if: -- The company's adjusted debt to EBITDA approaches to 5.0x on a sustainable basis; -- The company performs above our expectations; -- It does not undertake additional debt-funded shareholder returns or additional debt-funded acquisitions before improving its credit metrics; and -- Liquidity remains adequate. ================= L I T H U A N I A ================= AKROPOLIS: S&P Rates Proposed Green EUR300MM Sr. Unsec. Notes 'BB+' ------------------------------------------------------------------- S&P Global Ratings assigned its 'BB+' long-term issue rating to the proposed green EUR300 million senior unsecured notes to be issued by shopping center owner Akropolis (BB+/Stable/). The transaction will reduce the company's liquidity risk over the coming 12-24 months and extend its weighted-average debt maturity to well above three years with limited refinancing needs over the next two years. S&P said, "We rate the company's senior unsecured bond 'BB+', in line with the issuer credit rating. This is because we do not see significant subordination risk in the company's capital structure, with the ratio of secured debt to total outstanding debt representing about one third, well below our 50% threshold for which we would typically notch the issue down from the issuer credit rating." On May 6, 2025, Akropolis announced the issuance of a EUR300 million green unsecured bond with an expected maturity of five years. S&P said, "We understand that Akropolis will use the proceeds to refinance its EUR300 million senior unsecured bond falling due in June 2026 and use any remainder to finance eligible green projects. Following the transaction, we expect Akropolis' weighted-average debt maturity to increase to well above our three-year requirement for the real estate sector, compared with around two years as of Dec. 31, 2024." After this exercise, Akropolis would have limited refinancing needs until 2027 when its secured bank loans totaling EUR141.6 million fall due. S&P said, "We anticipate that operating fundamentals for Akropolis' properties will remain robust over the next 12 months, underpinned by solid demand. In 2024, Akropolis reported 8.8% like-for-like growth in net rental income, mostly due to the high indexation of leases and its high average occupancy rate of 98.3%. Like-for-like rental income growth will likely slow down over the coming 12-24 months because inflation has fallen from previous highs. We forecast like-for-like rental growth of 2.0%-2.5% in 2025 and 1.5%-2.0% in 2026 (8.8% in 2024). "Our base case assumes S&P Global Ratings-adjusted debt to debt plus equity of 36%-38% over 2025-2026 (38.5% in 2024), including our assumptions of a flat fair value property adjustment (1.5% in 2024) as yields stabilize and rental growth slows. We expect the new bond to have a higher coupon, however, compared to the replaced bond's 2.875%, in light of recent changes to the interest rate environment. Following the transaction, we anticipate the company's average cost of debt will rise to about 5.5%-6.0% from 3.82% as of December 2024. As a result, we forecast EBITDA to interest coverage will decline to 3.0x-4.0x by end-2025 from 5.1x in 2024. We also forecast debt to EBITDA about 5.0x (5.1x 2024) supported by growing cash flow generation and lower debt. Accordingly, our ratio expectations for the next 12-24 months should remain well in line with the current 'bb+' stand-alone credit profile, and within downside thresholds—debt to debt plus equity should stay well below 45% and S&P Global Ratings-adjusted debt to EBITDA should remain below 7.5x." =================== L U X E M B O U R G =================== ACCORINVEST GROUP: Moody's Expects to Rate New Sr. Secured Bonds B2 ------------------------------------------------------------------- Moody's Ratings said that it expects to assign a B2 instrument rating to AccorInvest Group S.A.'s (AccorInvest) proposed EUR1,250 million high yield backed senior secured bonds due 2030 and due 2032. Moody's expects the company to use the proceeds combined with those of new term loans B1 and B2 as well as EUR65 million of cash and EUR100 million of temporary partial drawdown of new RCF which will be used to pay EUR30 million in fees and to repay all existing senior facilities, including the Prêt Garanti par l'Etat (PGE). This marks the conclusion of the company's efforts to exit the restructuring plan initiated in 2021 and establish a financing structure that better reflects its going concern status. The outlook is stable. The B2 debt rating, in line with AccorInvest's corporate family rating (CFR), reflects its leading position in the European hotel industry, both as an operator and a substantial property owner, focusing on the economy and midscale segments. The company relies heavily on ACCOR S.A. for various services, resulting in significant management fees, while the company is still implementing cost-saving measures and a disposal plan to improve operational efficiency. The B2 CFR also reflect AccorInvest's high leverage, and Moody's expectations that ongoing disposals and deleveraging efforts will enhance profitability and liquidity. AccorInvest's large asset base (latest external value of owned assets is EUR6.2 billion as of year-end 2024) allows the company to strategically manage leverage and to support its liquidity profile. Following this refinancing, the company's debt maturity profile will become more staggered, with no major debt maturities before 2029, while Moody's expects a slightly positive Moody's adjusted Free Cash Flow to keep supporting the AccorInvest's liquidity profile. The stable outlook reflects Moody's expectations that AccorInvest's ongoing disposal process and diversification of funding sources will support a leverage below 6x and improve Moody's-adjusted coverage towards 1.6x to 1.7x over the next 12 to 18 months. This outlook also considers Moody's expectations that AccorInvest will maintain a good liquidity profile, supported by modestly positive Moody's adjusted FCF due to resilient operational performance, on-going implementation of cost efficiency measures and cautious liquidity management. Pro-forma of the bonds' issuance, AccorInvest's capital structure will primarily consist of EUR200 million term loan B1 due 2028 and EUR350 million term loan B2 due 2030 or 3 months before the shortest maturity of backed senior secured notes (currently October 2029), a EUR400 million RCF expected to remain undrawn over the medium term, the existing EUR1,400 million backed senior secured bonds and the planned EUR1,250 million backed senior secured bonds. All these loans and bonds will rank equally and share the same security package, including share pledges over certain operating subsidiaries and intercompany loan receivables. In Moody's loss-given-default (LGD) assessment for AccorInvest, the backed senior secured bonds, the term loans B1 and B2, and the RCF, rank pari passu, while the operating liabilities directly held at the operating company level rank senior. Moody's have overridden the LGD model by one notch to reflect the limited but still significant guarantor coverage of around 49% of the group's EBITDA and the significant share of gross asset value not subject to share pledge on existing debt (approximately EUR3.2 billion as of year-end 2024). AccorInvest is a leading European operator of hotels, running 576 hotels as of December 2024, with a focus on the economy and midscale segment. AccorInvest's business centers around the European hotel market. AccorInvest owns freehold or long ground leases on 292 hotels, making it also one of the largest owner of hotels in Europe with a gross Asset value (GAV) of EUR7.8 billion as of December 2024. In 2024, AccorInvest income was primarily driven by the leisure sector (53%), as the business sector's recovery was slower. All of AccorInvest hotels are managed by ACCOR S.A. that provides hotel management, input into the hotel budgeting process, recruiting, back of house and other services to AccorInvest. AccorInvest was created as a spin-off of Accor's real estate operations and ACCOR S.A. still owns 30% of AccorInvest's share capital. ACCORINVEST GROUP: S&P Affirms 'B' ICR on Global Refinancing ------------------------------------------------------------ S&P Global Ratings affirmed the 'B' long-term issuer credit rating on AccorInvest Group S.A. (AIG) and the 'B+' issue rating with a '2' recovery rating on the company's existing EUR1.4 billion senior secured notes. The outlook on the issuer credit rating is stable. S&P has also assigned a 'B+' issue rating with a '2' recovery rating to the proposed EUR1.25 billion senior secured notes. S&P said, "The stable outlook reflects our expectations that AIG will continue to demonstrate sound operating performance and progress on its asset disposal plan such that it maintains S&P Global Ratings-adjusted debt to EBITDA of 5.5x-6.0x and funds from operations (FFO) to debt of about 10% over the next 12 months. Although we estimate that free operating cash flow (FOCF) after leases will be negative in 2025, we expect the company to maintain adequate liquidity." AIG plans to partly refinance its capital structure by issuing EUR1.25 billion senior secured notes, EUR550 million term loans and a EUR400 million revolving credit facility (RCF) to repay EUR1.5 billion term loans outstanding under its existing senior facilities agreement and a EUR405 million government-backed loan ("Pret garanti par l'Etat"; PGE). While the transaction is leverage neutral, S&P understands it will allow AIG more financial flexibility, alleviating some of the restrictions on its operational leeway in the previous debt documentation. The proposed refinancing will extend the debt maturity profile of AIG and restore its financial flexibility and operational leeway. In the last quarter of 2024, AIG successfully completed the issuance of EUR1.4 billion senior secured notes. Combined with the EUR836 million gross proceeds from the disposal plan, this allowed the company to significantly reduce the outstanding amount of financial debt under its existing senior facilities agreement to about EUR2 billion (including the EUR405 million PGE) at year-end 2024, compared with about EUR4.6 billion at year-end 2023. Under the proposed transaction, AIG plans to issue EUR1.25 billion senior secured notes, EUR550 million term loans (of which EUR200 million in a term loan B1 (TLB1) and EUR350 million in a term loan B2 (TLB2) and a new upsized RCF of EUR400 million (the outstanding facility is EUR250 million), of which about EUR100 million will be drawn at the transaction's close. The group intends to use the proceeds, alongside cash on balance sheet, to redeem its outstanding bank debt of about EUR2 billion due in 2027. Although the new senior facility agreement (SFA) terms would still include a cash flow sweep of the proceeds from asset disposals under the TLB1, the terms of the debt repayment are less stringent than those under the existing SFA and allow the company to retain a significant portion of the proceeds from its asset disposal plan, subject to leverage thresholds. Moreover, the new SFA's financial covenants are now based only on leverage and loan-to-value ratios, removing those based on interest coverage and minimum liquidity requirements linked to the amortization of some of the previous facilities. Finally, the new debt documentation also removes the limitation on capital expenditure (capex), restoring the company's ability to invest in the renovation and development of its hotel portfolio. S&P said, "AIG's operating performance in 2024 improved in line with our expectations. Total revenue decreased by 5.2% in 2024 due to the sale of 160 hotels, which led to the loss of about EUR366 million in revenue. However, like-for-like perimeter revenue improved by 3.1% to about EUR4.4 billion, in line with our previous expectations of about EUR4.3 billion for the same perimeter. This has been achieved thanks to sound average daily rates (ADR) increasing by about 2.2% and stable occupancy rates in 2024, supporting a 3.6% like-for-like increase in revenue per available room (RevPar). This underpinned stable S&P Global Ratings adjusted EBITDA generation in 2024 of about EUR904 million, in line with 2023, and an adjusted EBITDA margin of about 22.4%, up by about 60 basis points on 2023. This is the result of operational efficiencies, tight control over operating costs, and steady RevPar growth. In addition, the company has been able to dispose, on a first-priority basis, of noncore less profitable leased assets, which helped the group recalibrate its portfolio toward owned hotels, refocusing its operations on the European continent. Finally, FOCF after leases generation stood at about EUR32 million (EUR98 million excluding one-off costs associated with the amend-and-extend and debt issuance transactions completed in 2024), in line with our previous expectations of about EUR20 million in 2024. "We expect progress on the asset disposal plan will contribute to further deleveraging in 2025. Out of its planned EUR1.7 billion of asset disposals initiated in 2023, AIG has successfully completed about EUR836 million to date. We expect the vast majority of the residual disposals plan to be completed by the end of 2025, and we understand that the company will use part of the proceeds to repay the EUR100 million RCF drawings and the EUR200 TLB1 before year-end 2025." Consequently, S&P expects the company's capital structure at year-end 2025 to comprise the following: -- EUR350 million TLB2 due 2030; -- EUR750 million senior secured notes due 2029; -- EUR650 million senior secured notes due 2031; -- EUR1.25 billion proposed senior secured notes, in a mix of fixed rate notes due 2030 and 2032; and -- EUR400 million undrawn RCF at year-end. This entails further deleveraging from the transaction's close, and we therefore expect S&P Global Ratings-adjusted leverage to decline to 5.7x in 2025 from 5.9x in 2024, in line with S&P's previous expectations. High working capital outflows and capex will constrain FOCF generation in 2025. Although the asset disposal plan supports improvements in AIG's EBITDA margin, as it reshapes the perimeter of the group around the most profitable owned assets, it is also causing an acceleration in trade working capital outflows, as the company needs to close suppliers' trade payables before it can dispose of the assets. S&P said, "Consequently, we now expect a working capital outflow of about EUR30 million in 2025, compared with our previous expectation of positive EUR30 million. Capex should be about EUR250 million in 2025, in line with 2024, and will not be constrained by the cap imposed by the previous documentation. Consequently, we forecast about negative EUR48 million in FOCF after lease payments in 2025, down from positive EUR32 million in 2024, followed by positive EUR30 million in 2026. Although Accor announced the disposal of its 30% stake in AIG by year-end 2026, we do not think this will have implications for AIG's operations. This is because the operational relationship between Accor (BBB-/Stable/A-3) and AIG is regulated by a master agreement, and individual hotel management agreements that are independent of the current and future shareholding status of Accor. Currently, we view the concentration on Accor as the sole hotel manager of AIG's properties as a constraint on the overall rating on AIG. We believe that AIG could benefit from a gradual diversification of its hotel manager base, once Accor has completed the sale of its stake. We also note that the disposal of Accor's stake would not trigger a change-of-control event under the current indenture due to its minority stake, although we note that the new RCF agreement and the proposed notes' offering memorandum include a portability clause, which is subject to a certain leverage threshold and outstanding ratings in the event of a change of control if the majority of shareholders decided to exit." S&P said, "The stable outlook reflects our expectations that AIG will successfully complete the refinancing of the capital structure, continue to demonstrate sound operating performance and progress on its asset disposal plan, such that S&P Global Ratings-adjusted leverage remains stable at about 5.5x-6.0x with adjusted FFO to debt of about 10% over the next 12 months. While we forecast FOCF after leases to turn negative in 2025, due to one-off costs associated with the asset disposal plan, we expect the company to maintain adequate liquidity over the next 12 months. "We would lower the rating on AIG if volatile market conditions hindered the group's ability to complete its asset disposals in line with the budget; or if there was a material deterioration in the competitive landscape that significantly impaired the group's business model due to macroeconomic or geopolitical event risks; or in the event of intense competition resulting in a dramatic reduction in the volume of customers for a prolonged period; or in the event of a substantial increase in costs, causing S&P Global Ratings-adjusted leverage to increase above 7.0x and FOCF after leases to remain negative for a prolonged period. "We could raise the rating on AIG if the company made significant progress on the completion of its asset disposal plan, resulting in lower financial leverage, stronger liquidity, and a more efficient asset portfolio. In such an event, we should see S&P Global Ratings-adjusted leverage improving to below 5.5x, FFO to debt reaching 12%, and materially positive FOCF after leases." ADECOAGRO S.A.: S&P Affirms 'BB' ICR Following Ownership Change --------------------------------------------------------------- On May 6, 2025, S&P Global Ratings affirmed its 'BB' global scale issuer credit rating on Adecoagro S.A. and its 'BB' issue rating on the senior unsecured notes. The stable outlook reflects S&P's expectation that Adecoagro will continue to operate in line with its track record, supported by the new ownership--namely, maintaining leverage below 2.0x and a prudent approach to cash outflows, including investments and dividend payouts. The rating affirmation reflects S&P's view that the terms agreed between Tether and Adecoagro point to continuity of the company's current strategy following the change in ownership. In particular, the company will keep the current management team and, at a minimum, three independent members on the board of directors (it currently has eight out of nine). It will also maintain the current financial policies, such as maximum leverage below 2.0x and dividend payouts limited to 40% of net cash from operations. In addition, the independent members on the board will have veto power on matters that could present a conflict of interest between Tether and the company, including business discontinuities, further acquisitions, and related parties transactions. S&P said, "Our base-case expectation is that net leverage will stay below 2.0x in 2025 and 2026. This is aligned with Adecoagro's record of controlling leverage and maintaining a prudent approach to cash outflows, as capital expenditures (capex) and dividends, which has also contributed to the maintenance of an adequate liquidity cushion despite volatility in the industry. "We view Tether Investments as a managed fund, and therefore the ultimate subject of analysis continues to be Adecoagro. Nevertheless, we will continue to monitor how financial policies develop under the new ownership. In particular, a more aggressive approach to leverage or shareholders' remuneration, through the use of the financial sponsor's ownership, could limit our financial risk profile and put pressure on the ratings. For now, we have a limited track record on acquisitions and investments strategy of Tether, including a timeframe for divestments, as well as limited information on the credit quality of its shareholders." Solid EBITDA and consistent cash flows will help Adecoagro to maintain current leverage. S&P said, "Brent oil prices have been declining--we revised our assumption to $65 for the remainder of 2025 from $70 previously--which can pressure ethanol prices in Brazil. Still, supportive demand and domestic currency depreciation could limit the negative impact on prices. The same should continue to support sugar prices, mainly considering the company's volume already fixed, despite uncertainties around South Asia's sugar output. For Adecoagro, we assume average ethanol and sugar prices around Brazilian real (R$) 2.3 per liter and R$2,540 per ton, respectively, in 2025, from R$2.4 and R$2,490 in 2024." Nevertheless, despite drier weather likely weakening sugarcane volumes for the 2025/2026 harvest, S&P still considers crushing volume close to 13 million-13.5 million tons, from 12.8 in the previous harvest, because of improving yields. In Argentina, ongoing investments in efficiency and productivity, higher volumes, and better prices for some commodities, such as corn, will support profitability in the region. All things considered, we forecast consolidated nominal EBITDA of US$525 million in 2025. S&P Said, "Also, we continue to expect the company to support its investments--which we forecast at about US$355 million per year in 2025 and 2026--with cash generation. We expect free operating cash flow (FOCF) in excess of $85 million before leasing, but about negative R$23 million after leasing payments. "The stable outlook reflects our expectation that Adecoagro will control leverage and maintain a prudent approach to shareholders' remuneration and investments under the new ownership, in line with its track record. We also expect that the company will sustain results in Brazil, from a greater harvest area for sugarcane and favorable prices, and in Argentina, from improving yields. We expect leverage to remain at about 1.5x-2.0x and funds from operations to debt around 50% in the next few years, despite negative FOCF after lease payments. "We could take a negative rating action if we see rising risks of more aggressive financial policies affecting Adecoagro's growth strategy, leverage, and dividends approach. We could also take a negative rating action on the company in the next 12-18 months if it can't maintain sources of cash at least 20% above uses for the following 12 months to cushion against foreign exchange rate and commodity price volatility, as well as the seasonality of the industry. This could result from adverse climate conditions weighing on productivity and volumes while prices for its main products drop, impairing cash generation. "Although unlikely in the next 12-18 months, we could raise the rating on the company if it maintains a conservative financial strategy amid the new ownership, while it increases volumes in Brazil and Argentina and maintains competitive cash costs for its sugarcane operations despite challenging weather conditions, leading to adjusted debt to EBITDA below 1.5x and FOCF to debt above 15%, both consistently throughout commodity cycles. We would also look for sources over uses of cash for the next 12 months of comfortably above 1.2x in any period of the year." MANGROVE LUXCO: Moody's Hikes CFR to B2, Alters Outlook to Stable ----------------------------------------------------------------- Moody's Ratings upgraded the corporate family rating of Mangrove LuxCo III S.a r.l. (Mangrove or the company) to B2 from B3 and the company's probability of default rating to B2-PD from B3-PD. Concurrently, Moody's upgraded to B2 from B3 the rating of the EUR525 million backed senior secured notes maturing in 2029. The outlook has been changed to stable from positive. RATINGS RATIONALE The rating action was triggered by the continuation of the strong revenue growth Mangrove shows since 2022 (during the last 3 years revenue grew on average by 19.5% to EUR1.6 billion in 2024) and a material improvement in profitability: During 2024 Mangrove's Moody's-adjusted EBITA grew to EUR168 million from EUR69 million in 2023, EBITA margin increased to 10.6% from 5.1%, leverage declined to 3.2x debt/EBITDA from 4.6x in the prior year. Strong order intake and an order book of EUR1,111 million provide good visibility for further revenue growth and good profitability in 2025, further expanding the positive track record the company has built since 2022. On the back of solid free cash flow generation in 2023 and 2024 cash in unrestricted markets increased to EUR223 million. With the expanded debt maturity profile following the refinancing in 2024 and supported by a strong footprint in the profitable data center business Mangrove shows a materially improved credit profile. The B2 CFR of Mangrove is supported by Mangrove's established position in the global heat exchanger market, with a broad product portfolio, global production capability and geographical diversification; the critical nature of the heat exchanger product, which typically accounts for a small percentage of the overall cost of a large power plant or asset; and the company's expansion into the data center application market, which has solid growth fundamentals. The rating is constrained by the cyclical nature of some of Mangrove's end markets albeit less marked than in the past given improved diversification and reduced exposure to oil & gas. In addition, while Moody's positively acknowledge the shareholder support over the recent past, Moody's will continue to monitor financial policy and shareholder behavior going forward. With regard to claims brought forward by the senior unsecured noteholders of Galapagos Holding S.A. (Galapagos) Moody's takes comfort from the updated information provided in the 2024 consolidated financial statements and in the offering memorandum for the notes issuance in July 2024, where it is clearly stated that such claims have been either dismissed or decided in favor of Mangrove in final or unappealable judgements or have been irrevocably withdrawn. LIQUIDITY Moody's considers Mangrove's liquidity to be good. As of December 31, 2024, the company had around EUR223 million of available cash on balance (after deducting cash in restricted markets). Over the next 12 months to December 2025, Moody's expects Mangrove to generate around EUR130 million in funds from operations (after interest payments), which, together with available cash on balance and the company's EUR65 million revolving credit facility (RCF, fully available as of December 31, 2024), will be sufficient to cover the expected liquidity needs, including working cash, working capital needs and capital expenditure (including lease payments) together totaling around EUR165 million in Moody's base scenario. The EUR65 million revolving credit facility is part of a EUR235 million super senior facilities agreement (SSFA) signed in July 2024 which also contains a EUR170 million guarantee facility. The agreement, which matures in January 2029, contains a springing senior secured net leverage covenant for the revolving credit facility to be tested quarterly only if drawings minus cash balance exceed 40% of the aggregate commitments. RATING OUTLOOK The stable outlook reflects Moody's expectations that Mangrove will be able to stabilize operating performance and key credit metrics around the level seen in 2023/2024. Supported by a solid order book of around EUR1.1 billion Moody's expects that over the next 12 - 18 months Mangrove will be able to keep leverage well below its own leverage target ceiling of 3.0x (reported) net debt/EBITDA (1.4x as of December 2024) while maintaining solid liquidity with ample flexibility for short-term swings. The B2 rating also requires Mangrove to sustainably maintain Moody's adjusted leverage well below 5.5x debt/EBITDA combined with a sustainable positive free cash flow generation, supported by no further shareholder-friendly transactions beyond the EUR100 million partial repayment of outstanding preferred equity in 2024. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS A higher rating would require a more sustainable track record through the cycle and further evidence that the improved operating performance can be sustained enabling Mangrove to sustainably show (i) EBITA margin above 10%, (ii) leverage well below 4.5x debt/EBITDA, (iii) interest cover maintained consistently above 2.5x EBITA/interest expense, as well as (iv) free cash flow coverage of debt at mid single digits. In addition, a clear commitment to a more creditor-friendly financial policy would be required. Downward pressure on the rating could develop in case of an erosion of profitability indicated by EBITA-margin trending towards mid single digits, if liquidity weakens, free cash flow turns sustainably negative or if leverage increases above 5.5x debt/EBITDA. Likewise, any further distributions to shareholders or any other shareholder-friendly transactions could trigger a negative rating action. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Manufacturing published in September 2021. COMPANY PROFILE Luxembourg-based Mangrove LuxCo III S.a r.l. (Mangrove) is the parent of companies that operate under the name Kelvion. The company is a leading global manufacturer of heat exchangers for a variety of industrial applications. These primarily include Data Centres, Food & Beverages, HVAC (Heat, Ventilation and Air Conditioning) & refrigeration, Power & Energy, Chemicals, Oil & Gas, Transportation and Heavy & Light Equipment. The company is owned by a fund managed by Triton Partners, a private equity group. During 2024, Mangrove generated EUR1,592 million in revenue and around EUR205 million in Moody's-adjusted EBITDA. QSRP INVEST: Moody's Upgrades CFR to B2, Alters Outlook to Stable ----------------------------------------------------------------- Moody's Ratings has upgraded the corporate family rating of QSRP Invest S.a r.l. (QSRP or the company), the subsidiary of QSR Platform S.a r.l, to B2 from B3 and probability of default rating to B2-PD from B3-PD. Concurrently, Moody's also upgraded to B2 from B3 the instrument ratings of the EUR615 million backed senior secured term loan B maturing in 2031 and the EUR85 million backed senior secured revolving credit facility (RCF) maturing in 2030, both borrowed by QSRP Finco BV. The outlook on both entities was changed to stable from positive. "The upgrade reflects the strong operating and financial performance in 2024, which Moody's expects to continue in the next 12-18 months, leading to an improvement in metrics more commensurate with a B2 rating," says Fernando Galeote, a Moody's Ratings Analyst and lead analyst for QSRP. "QSRP's Moody's adjusted gross leverage at the end of 2024 stood at 6.0x, and Moody's expects it will decrease below 5.5x in the next 12-18 months," adds Mr Galeote. RATINGS RATIONALE QSRP's operating performance in 2024 pro forma for acquisitions, based on management accounts, was strong with revenue growth of 21%, of which 5% was organic, reaching EUR684 million (2023: EUR568 million) and Moody's-adjusted EBITDA increasing by 34% (19% organic) to EUR184 million (2023: EUR137 million). This growth was mainly driven by: (1) the opening around 70 net new restaurants in the burgers and tacos segment; (2) the positive average spend evolution in the majority of the brands; (3) declining costs in food and energy; and (4) the acquisitions of Chopstix in the UK and G la Dalle in France. Moody's base case scenario assumes that company's revenue will increase by 10% in 2025 to EUR756 million and by 8% in 2026 to EUR818 million; with Moody's-adjusted EBITDA also increasing by 6% in 2025 to EUR195 million and by 13% in 2026 to EUR220 million. Moody's forecasts Moody's-adjusted EBITDA margins will soften slightly in 2025 to around 26% from 27% in 2024 due to inflation in raw materials and staff cost, with the latter mainly in Italy and the UK, before coming back to around 27% in 2026 thanks to some easing in material costs and operating leverage. The company's Moody's-adjusted FCF in 2024 increased to EUR10 million (2023: EUR2 million) thanks to the improvement in top line and the phasing effect of CAPEX done in Q4 2024 which will be paid in Q1 2025. Moody's predicts in Moody's base case positive FCF of EUR4 million in 2025 and to improve further to EUR22 million in 2026 thanks to top line enhancement and lower restructuring costs at Nordsee. Moody's forecasts Moody's-adjusted debt/ EBITDA to decrease below 5.5x in the next 12-18 months from 6.0x in 2024, pro forma for acquisitions. In terms of new restaurant openings, in 2024, the company opened 88, excluding M&A, and closed around 30 of its Nordsee sites and 19 in the burgers and tacos segment. In 2025 and 2026, Moody's forecasts around 100 new openings a year in the former perimeter and 50 and 70, respectively, in the recently acquired brands. Additionally, Moody's assumptions does not take into consideration the removal of Nordsee from the restricted group, which the company is exploring, given the lack of visibility and the fact that, the impact will not be material. The company's rating continues to reflect (1) the strong brand awareness of the Burger King brand, for which the company acts as the exclusive master franchise in Belgium, Luxembourg and Italy, complemented by the local burger champion Quick; (2) the company's geographical and concept diversification through its different chains like O'Tacos, Chopstix and G la Dalle; (3) its transition to an asset-light business model, which enhances the resilience of its margins; and (4) Moody's expectations that its credit metrics will keep improving gradually and that it will start generating sustainable positive free cash flow (FCF) in the next 12-18 months. However, the company's rating is also constrained by (1) the execution risks associated with the ongoing recovery and restructuring of its Seafood segment; (2) its ambitious network expansion because of intense competition, particularly in new geographies with the O'Tacos brand as a result of the brand's limited recognition outside its core markets; (3) its exposure to food and wage inflation and the erosion of consumer discretionary spending, which can hurt its profitability; and (4) the existence of payment-in-kind (PIK) notes outside the restricted group. LIQUIDITY Liquidity is good, supported by cash balance of EUR94 million as of December 2024 and access to the fully undrawn EUR85 million backed senior secured revolving credit facility (RCF) due 2030. The company's ability to draw on the RCF is subject to a springing covenant of net leverage not exceeding 7.25x, tested when the facility is more than 40% drawn. Moody's expects QSRP to maintain adequate capacity against the covenant threshold. STRUCTURAL CONSIDERATIONS The B2 instrument ratings of the EUR615 million backed senior secured term loan B and the EUR85 million backed senior secured revolving credit facility (RCF) issued by QSRP Finco BV are in line with the CFR, reflecting the fact that these two instruments rank pari passu and represent the majority of all of the company's financial debt. The capital structure also includes a shareholder loan, borrowed by QSRP Invest S.a r.l. This loan is equity-like, and is not included in Moody's adjustments to QSRP's debt. The B2-PD PDR of QSRP Invest S.a r.l. reflects the assumption of a 50% family recovery rate, given the weak security package and the covenant-lite structure. In addition, there are EUR121 million of Pay-if-you-Can PIK notes outside of the restricted group defined by the lenders of QSRP. Moody's considers there is a risk that this debt could be refinanced inside the restricted group once sufficient financial flexibility develops. This limits deleveraging prospects for the restricted group, although the restricted payment covenant ensures some mitigation against this risk. OUTLOOK The stable outlook reflects Moody's expectations than QSRP will continue to grow its top line driven by new restaurants openings and the increase in SWS, decreasing its Moody's-adjusted gross debt/EBITDA below 5.5x in the next 12-18 months. The stable outlook also factors in a prudent approach to debt-funded acquisitions to complement the organic growth and that the company will maintain at least an adequate liquidity at all times. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upward pressure on the rating could develop if credit metrics improve leading to Moody's-adjusted debt/EBITDA decreasing below 4.5x and Moody's-adjusted EBIT/interest expense improving above 2.0x, both on a sustained basis. Before considering an upgrade, the company's free cash flow generation would have to materially improve. Negative rating pressure could arise if QSRP does not maintain positive momentum in its trading performance such that Moody's expectations of earnings driven deleveraging is not sustained. Quantitatively, assuming a stable capital structure, this would translate to the company's Moody's-adjusted leverage remaining above 5.5x in 2026. Additionally, negative pressure on the ratings could build if QSRP's free cash flow turns negative on a sustained basis, the company's liquidity weakens materially or if its financial policies become more aggressive. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Restaurants published in August 2021. COMPANY PROFILE Headquartered in Luxembourg, QSRP is a leading entity in the fast-food industry operating a network of 1,402 restaurants and 136 virtual kitchens. Founded in 2014, QSRP has gradually expanded its brand portfolio and geographical presence through both inorganic acquisitions of key brands and organic growth via new restaurant openings. The most important brands in the portfolio are Burger King (master franchise agreement in Italy, Belgium, and Luxembourg), O'Tacos, Quick, Nordsee, Chopstix and G la Dalle. In 2024 preliminary results, pro forma for acquisitions, QSRP posted systemwide sales of EUR1.8 billion, revenue of EUR684 million, and a company EBITDA post IFRS 16 of EUR200 million. The company is under the ownership of Kharis Capital, a private equity firm. TRAVIATA II SARL: Moody's Withdraws 'B3' CFR on Debt Repayment -------------------------------------------------------------- Moody's Ratings has withdrawn the B3 corporate family rating and the B3-PD probability of default rating of Traviata II S.a r.l. (Traviata), an entity that owns majority equity stakes in The Stepstone Group Midco 1 GmbH (Stepstone, B1 stable) and AVIV Group MidCo GmbH (Aviv, B3 stable). Concurrently Moody's have withdrawn Traviata B.V.'s B3 backed senior secured term loan B rating and its B3 backed senior secured revolving credit facility rating. Before the withdrawal, the outlook on both entities was stable. RATINGS RATIONALE Moody's have decided to withdraw the ratings because Traviata's debt previously rated by Moody's has been fully repaid on April 29, 2025 with a combination of equity and proceeds from a new EUR505 million payment-in-kind financing raised by the company. COMPANY PROFILE Traviata II S.a r.l. is a holding company, and its sole activity consists of owning, through its subsidiary Traviata B.V., a 90% equity stake in Stepstone, a leading European digital recruiting platform and a 90% equity stake in Aviv, a pan European real estate online classifieds company. Traviata is controlled by KKR Group CO. Inc. and co-investors. =========== M O N A C O =========== VILLA ROMA: Foreclosed Property Auction Scheduled for May 16 ------------------------------------------------------------ Maire Thomas Giaccardi, Attorney at Law at 99 Avocats Associes Law Firm, announced that a single lot public auction of a foreclosed property will be held on May 16, 2025 at 4:00 p.m. at the Court of First Instance, Palais de Justice, Rue Colonel Bellando de Castro, Monaco. The properties being put up for sale are located in the Villa de Rome apartment block apartment block at 11 Boulevard de Suisse, Monaco. They include: -- Unit 178, a duplex apartment on the Sth and 6th floors; and -- Unit 179,a duplex apartment on the 5th and 6th floors These two units have been combined to form a single property (planning permission for alterations granted on January 24, 1996 by the Planning and Building Department). A description of the property in its current state follows: -- On the fifth floor: two entrance halls, living room, kitchen, linen room, two bedrooms, two bathrooms, two separate toilets, pantry, study, two hallways, terrace, four balconies, -- On the sixth floor: four bedrooms, a gym, four bathrooms, separate toilet, sauna, walk-in-wardrobe, two hallways, four loggias and two planters. The two levels are served by two internal staircases. -- 2 cellars in basement level 3, Units 135 and 136 -- 4 parking spaces in basement, Units 125, 126, 127 and 128 The sale is sought at the request of public limited company UBS (Monaco) S.A., whose registered office is located at 2 Avenue de Grande Bretagne, Monaco, acting through Alejandro Velez, Managing Director, against private non-trading company Societe Civile Immobiliere Villa Roma, whose registered office is located at 11 Boulevard de Suisse, Monaco, represented by its current manager. The property shall be sold by public auction in a single lot to the highest and final bidder at the starting price of EUR43,500,000 in addition to the charges and conditions set out in the specifications, and in particular the legal costs, the amount of which shall be made public before the auction opens. Participation in the auction shall only be authorised after a deposit has been made at the Court Registry Office of a sum corresponding to 20% of the auction price the day before the auction hearing via a bank cheque drawn on an institution established in the Principality of Monaco i.e. in the sum of EUR8,700,000. The bids shall be received in accordance with Sections 612 to 620 of the Civil Procedure Code plus the charges and conditions set out in the Specifications file. In accordance with Article 603 of the Monegasque Civil Procedure Code, it is declared that all those on whose behalf a legal mortgage may be registered must request such registration before the auction is recorded. For further information, please contact: Maitre Thomas Giaccardi, Attorney at Law 16 rue du Gabian 98000 Monaco Phone: 00 377 97 70 40 70 Or consult the Specifications at the Court Registry Office - Palais de Justice rue Colonel Bellando deCastro, Monaco. =========== R U S S I A =========== NAVOI MINING: S&P Assigns 'BB-' Rating to Senior Unsecured Bond --------------------------------------------------------------- S&P Global Ratings assigned its 'BB-' issue rating to the senior unsecured bond proposed by Uzbekistan-based gold miner Navoi Mining And Metallurgical Co. (NMMC; BB-/Stable/--), in line with the issuer credit rating on NMMC. The proposed bond will not be subordinated to the vast majority of NMMC's debt. The company has a simple legal structure with one legal entity that issues all of its debt. Therefore, there will be no structural subordination. On top of that, only about 5% of the company's debt is secured, which means there is no contractual subordination. S&P said, "We understand that NMMC will use most of the bond proceeds to repay existing debt and general corporate purposes, including but not limited to financing of NMMC's capital expenditure program, repayment or prepayment of existing debt, general working capital, and other operational expenses. Therefore, the debt issuance will only marginally affect leverage. We expect that NMMC will continue to benefit from the strong prices on gold, its main product, supporting funds from operations (FFO) to debt comfortably above 60% in 2025-2026. NMMC's FFO-to-debt ratio stood at 93.4% at year-end 2024." ========= S P A I N ========= IM CAJAMAR 4: Moody's Raises Rating on EUR12MM Class E Notes to Ca ------------------------------------------------------------------ Moody's Ratings has upgraded the ratings of nine notes in three IM Cajamar transactions. The rating action reflects better-than-expected collateral performance and increased credit enhancement levels for the affected notes and Moody's assessments of the likelihood of prolonged missed interests in all three transactions. Also, the higher interest rate environment benefits the yield and excess spread available in the transactions. Moody's affirmed the ratings of the notes that had sufficient credit enhancement to maintain their current ratings. Maximum achievable rating is Aa1 (sf) for structured finance transactions in Spain, driven by the corresponding local currency country ceiling of the country. Issuer: IM BCC CAJAMAR 1, FT EUR615M Class A Notes, Affirmed Aa1 (sf); previously on Dec 27, 2018 Upgraded to Aa1 (sf) EUR135M Class B Notes, Upgraded to Baa3 (sf); previously on Dec 27, 2018 Upgraded to B3 (sf) Issuer: IM CAJAMAR 4, FTA EUR961.5M Class A Notes, Affirmed Aa1 (sf); previously on Jun 18, 2024 Affirmed Aa1 (sf) EUR25M Class B Notes, Upgraded to A2 (sf); previously on Jun 18, 2024 Upgraded to A3 (sf) EUR5M Class C Notes, Upgraded to Baa2 (sf); previously on Jun 18, 2024 Upgraded to Baa3 (sf) EUR8.5M Class D Notes, Upgraded to Baa3 (sf); previously on Jun 18, 2024 Upgraded to Ba2 (sf) EUR12M Class E Notes, Upgraded to Ca (sf); previously on Nov 3, 2009 Downgraded to C (sf) Issuer: IM CAJAMAR 6, FTA EUR1836.2M Class A Notes, Affirmed Aa1 (sf); previously on Jul 14, 2023 Affirmed Aa1 (sf) EUR31.2M Class B Notes, Upgraded to Aa1 (sf); previously on Jul 14, 2023 Upgraded to Aa3 (sf) EUR19.5M Class C Notes, Upgraded to Aa2 (sf); previously on Jul 14, 2023 Upgraded to A2 (sf) EUR62.4M Class D Notes, Upgraded to A3 (sf); previously on Jul 14, 2023 Upgraded to Ba1 (sf) EUR50.7M Class E Notes, Upgraded to Ca (sf); previously on Feb 8, 2008 Definitive Rating Assigned C (sf) RATINGS RATIONALE The rating action is prompted by: -- decreased key collateral assumptions, namely the portfolio Expected Loss (EL) as percentage of both original and current pool balance and, for IM CAJAMAR 4, FTA and IM CAJAMAR 6, FTA, the MILAN Stressed Loss assumptions due to better than expected collateral performance. -- an increase in credit enhancement for the affected tranches due to reserve fund for all three transactions being fully funded at the minimum floor amount. As pools amortise, the fixed reserve fund amount drives credit enhancement increase benefitting the tranches. -- Moody's assessments of the likelihood of prolonged missed interest in all three transactions. Also, asset yields increased as reference interest rates have materially increased, following a prolonged negative interest rate environment, which benefits excess spread available in the transactions. Revision of Key Collateral Assumptions: As part of the rating action, Moody's reassessed the lifetime loss expectations for the portfolios, reflecting the collateral performance to date. For IM CAJAMAR 4, FTA ("CM4"), IM CAJAMAR 6, FTA ("CM6") and IM BCC CAJAMAR 1, FT ("BCC CM1"): (1) total delinquencies have remained stable in the past year, with 90 days plus arrears as of March 2025 reporting date standing at 0.18%, 0.25% and 0.21% of current pool balance, respectively and (2) cumulative defaults currently stand at 4.09%, 8.35%, and 0.84% of the original pool balance, respectively and are unchanged from a year earlier. Moody's decreased the expected loss assumption to 1.65% and 1.91% as a percentage of the current pool balance from 2.16% and 2.41% due to the good performance for CM4 and CM6, respectively. Moody's maintained the expected loss assumption at 2.62% as a percentage of the current pool balance for BCC CM1. The expected loss assumptions have been revised down to 1.45%, 3.25%, and 1.40% from 1.70%, 4.10% and 1.49% expressed as a percentage of the original pool balance for CM4, CM6, and BCC CM1 respectively. Moody's have also assessed loan-by-loan information as a part of the detailed transaction review to determine the credit support consistent with target rating levels and the volatility of future losses. As a result, Moody's have decreased the MILAN Stressed Loss assumption to 5.9% and 6.5% from 6.7% and 7.6% for CM4 and CM6 respectively. MILAN Stressed Loss assumption for BCC CM1 has been maintained at 8.4%. Increase in Available Credit Enhancement and Liquidity A non-amortizing reserve fund (fully funded and at floor for all three transactions) led to the increase in the credit enhancement available in these transactions. CM4 and CM6 transactions are amortizing pro rata due to good performance, so the reserve fund is the driver of credit enhancement increase for these transactions. For instance, the credit enhancement for the most senior tranche affected by the rating action increased to 12.98% and 19.83% from 12.12% and 14.49% for CM4 and CM6 respectively since the last rating action. In BCC CM1, the reserve fund represents approximately 8.4% of the pool balance, up from 3.8% of the pool balance as of the last rating action. The reserve fund will also be available to the Class B notes once the senior notes have been fully redeemed. Counterparty Exposure The rating actions took into consideration the notes' exposure to relevant counterparties, such as servicer, account banks or swap providers. Moody's assessed the exposure to Banco Bilbao Vizcaya Argentaria, S.A. acting as swap counterparty for CM4. Moody's analysis considered the risks of additional losses on the notes if they were to become unhedged following a swap counterparty default by using the CR assessment as reference point for swap counterparties. Moody's concluded that the ratings of the Class B and Class C notes for CM4 are constrained by the swap agreement entered between the issuer and the swap counterparty. Assessment of the likelihood of prolonged missed interest For BCC CM1, the interest payments for the Class B notes are subordinated to both the Class A interest and principal payments. As a result the Class B notes are exposed to the basis risk and level of excess spread existing between the asset portfolio and the notes and are at risk of deferring interest over the life of the transaction for lengthy consecutive periods. The Class B notes already experienced some interest shortfalls in 2023 which have been repaid since then. However, the reserve fund will be available to cover any interest shortfall on the Class B notes, once they become most senior, i.e. the Class A notes have been redeemed in full. The transaction structure does not mandate interest-on-interest following non-payment of interest. The upgrade of Class B notes has taken into account the potential economic loss that would result from lengthy periods of interest shortfall ultimately repaid without interest accrued on missed interest, depending on different prepayment rate scenarios affecting the repayment of the Class A notes. CM4 and CM6 feature some interest deferral triggers permitting to subordinate the interest payments of the mezzanine notes, namely, B, C and D to the principal payments of the notes. For both transactions, the interest deferral triggers have not been hit, with interest payments having been paid timely for all the mezzanine notes so far. The reserve fund is available to pay subordinated interest. Moody's analysis considers low likelihood of prolonged interest shortfalls on Classes B, C and D in the future. Upgrade of Class E notes in CM4 and CM6 reflects the partial repayment of these notes since issuance and Moody's assessments of their loss given default as a percentage of the original balance. Class E notes were issued to fund the reserve fund in each transaction. The principal methodology used in these ratings was "Residential Mortgage-Backed Securitizations" published in October 2024. Factors that would lead to an upgrade or downgrade of the ratings: Factors or circumstances that could lead to an upgrade of the ratings include: (1) performance of the underlying collateral that is better than Moody's expected, (2) an increase in available credit enhancement, (3) improvements in the credit quality of the transaction counterparties, and (4) a decrease in sovereign risk. Factors or circumstances that could lead to a downgrade of the ratings include: (1) an increase in sovereign risk, (2) performance of the underlying collateral that is worse than Moody's expected, (3) deterioration in the Notes' available credit enhancement, and (4) deterioration in the credit quality of the transaction counterparties. =========== S W E D E N =========== [] SWEDEN: Savings Banks Face Increasing Economic Uncertainty ------------------------------------------------------------- Swedish savings banks face increasing economic uncertainty on the back of a strong performance in 2024, according to a report published by Nordic Credit Rating. Although net interest margins peaked in 2023, growth was stable and capitalisation remained strong in 2024. Many banks saw a decrease in loss provisions due to an improving economic outlook. "Strong earnings, supported by dividends from Swedbank for most of our sample banks have bolstered capital ratios" said NCR credit analyst Ylva Forsberg. "However, poor profitability in transferred mortgages and rising joint IT costs will likely remain areas of contention between the savings banks and Swedbank." "While the Swedish economy remains relatively stable, global economic uncertainty has accelerated in recent weeks. While we believe the savings banks have a solid foundation from which to manage this uncertainty, loan growth in 2025 may be lower than our earlier expectations." =========================== U N I T E D K I N G D O M =========================== CHIARO TECHNOLOGY: Chapter 15 Recognition Hearing on May 13 ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware will hold a hearing May 13 in Wilmington to consider the request of Chiaro Technology Limited (in Administration) for recognition of its English proceeding as a foreign main proceeding pursuant to Chapter 15 of the U.S. Bankruptcy Code. Chiaro Technology Ltd., filed for Chapter 15 in Delaware bankruptcy court, requesting U.S. recognition of a U.K. insolvency proceeding as it works to manage its U.S. assets and pursue a sale to a rival firm. About Chiaro Technology Ltd. Chiaro Technology Ltd. is a British women's healthtech company. Chiaro Technology Ltd. sought relief under Chapter 15 of the U.S. Bankruptcy Code (Bankr. D. Del. Case No. 25-10691) on April 11, 2025. The Honorable Bankruptcy Judge Brendan Linehan Shannon handles the Chapter 15 case. R. Craig Martin, Esq., at DLA Piper LLP (US), serves as U.S. counsel. Lindsay Hallam, Matthew Boyd Callaghan, and Oliver Wright of FTI Consulting LLP, serve as joint administrators of Chiaro Technology in its administration proceedings under English law before the High Court of Justice, Business and Property Courts in Leeds, Insolvency and Companies List. MCLAREN GROUP: S&P Discontinues 'CCC' LT Issuer Credit Rating ------------------------------------------------------------- S&P Global Ratings discontinued all its ratings on McLaren Group Ltd. and subsidiaries at the issuer's request. The request follows the completion of the acquisition of the McLaren group by CYVN Holdings, an Abu Dhabi investment fund, and the redemption of all McLaren's outstanding debt. For instance, the $200 million term loan and GBP95 million super senior revolving credit facility have been repaid and cancelled. The senior secured notes trustee holds principal and accrued interest until the redemption date of Aug. 1, 2025, on trust. McLaren Finance PLC, the issuer of the $620 million senior secured notes, has therefore been discharged. S&P's long-term issuer credit rating on McLaren at the time of the discontinuance was 'CCC' with a negative outlook. TASTE OF THE WEST LIMITED: SWBR Named as Administrators ------------------------------------------------------- Taste of The West Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts in Bristol, Insolvency & Companies List (ChD), Court Number: CR-2025-BRS-000042, and Rob Coad and Sam Talby of SWBR, were appointed as administrators on April 29, 2025. Trading as Taste of the West Limited, the company specialized in food services. Its registered office and principal trading address is at Country House Estate, London Road, Whimple, Exeter, Devon EX5 2NL. The administrators can be reached at: Rob Coad Sam Talby SWBR Country House Estate, London Road Whimple, Exeter, Devon EX5 2NL Further Details Contact: Charlie Cooper Email: charlie.cooper@undebt.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- 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 * * *