- The European CLO market, like most other sectors, is not completely resistant to the effects of the COVID-19 pandemic, which we expect to continue for several months.
- In the short term, we do not expect rated European CLO transactions to experience significant downgrades. Key transaction indicators such as the level of 'CCC' category rated assets, the proportion of defaulted assets, and overcollateralization cushions, suggest transactions are protected from a degree of deterioration in portfolio credit quality.
- However, an extended period of stress may put downward pressure on our CLO ratings, initially affecting speculative-grade tranches.
At the beginning of 2020, the European collateralized loan obligation (CLO) market was facing several challenges, including credit deterioration, difficult arbitrage conditions, and asset scarcity. CLO investor concerns were typically over corporate credit deterioration and leverage ratios, expected recoveries, and loose documentation. At the macro level, trade wars, Brexit, and extended low rates were among the top risks. In spite of these concerns, CLO issuance started strongly, with several new transactions and senior note spreads dipping to a 20 month low. However, the sudden economic stop caused by the spread of COVID-19 and related containment measures will lead to a global recession, in S&P Global Ratings' view.
We expect a surge in the European speculative-grade corporate default rate to the high single digits over the next 12 months, although the severity will vary significantly by sector and individual credit characteristics. As a result, there could also be an impact on CLOs, which are securities backed by a portfolio of corporate debt, typically senior secured loans made to speculative-grade companies, whose average credit rating is in the 'B' ('B+', 'B', and 'B-') category.
Economic Downturn Set To Pressure EMEA Corporate Ratings
COVID-19 is one of the key challenges the European leveraged loan and CLO market will face in 2020. S&P Global Ratings acknowledges a high degree of uncertainty about the rate of spread and peak of the coronavirus outbreak. Some government authorities estimate the pandemic will peak between June and August, and we are using this assumption in assessing the economic and credit implications. We believe measures to contain COVID-19 have pushed the global economy into recession and could hurt employment levels and housing markets (see our macroeconomic and credit updates here: www.spglobal.com/ratings. As the situation evolves, we will update our assumptions and estimates accordingly.
Although economic data is currently limited, our short-term macroeconomic outlook for Europe has deteriorated and we now expect a contraction in Eurozone GDP of 0.5%-1.0% in 2020, revised down from our previous forecast of 0.5% growth. COVID-19 related disruption will affect economic activity in the first half of the year, with a particularly severe hit in the second quarter as near-lockdown measures adopted across Europe dampen the real economy.
The combined effect of COVID-19, with the collapse in oil prices and extreme volatility in capital markets will inevitably have severe implications for credit. In our view, this will likely mean a surge in defaults, with the speculative-grade corporate default rate potentially increasing to the high single digits in Europe over the next six to 12 months from a base case of 2.3%.
The sharp decline in global demand will reduce corporate cash flow generation across industries, placing pressure on working capital needs, available cash, and revolving facilities, as well as companies' ability to remain operational. Government-led fiscal support for companies (especially smaller ones) will offer an alternative avenue for liquidity in the absence of constructive primary capital markets.
Nevertheless, the impact of the COVID-19 disruption will not be uniform across all industries. Sectors exposed to people mobility and discretionary spending, such as airlines, transportation, leisure and gaming, hotels and restaurants, and retail, are likely to be affected the most. Exposure and reliance on cross-border supply chains is another pressure point weighing on the overall creditworthiness of auto manufacturing and capital goods, for example. We expect credits in the healthcare, software, and telecommunication sectors to be more insulated.
Recent oil price shocks add yet another dimension in assessing vulnerabilities. Though oil at less than $35 per barrel will alleviate the variable cost component of issuers in the chemicals sector, this is likely to be more than offset by top-line contraction and high fixed cost component.
Companies rated 'B-' and below will likely suffer most from financing needs and rapid rating transitions. These companies are most likely to lack the financial flexibility to weather a crisis hitting both their top-line revenue and financing costs. They are also the most exposed to risks of distressed exchange or debt restructuring, which would qualify as a default under our ratings definitions.
Having access to ample liquidity to withstand at least two to three months of severely reduced revenue inflows, a nimble cost base, and access to liquidity will be key. We expect a deluge of covenant waiver and covenant reset requests, additional revolving credit facilities made available to cover working capital and cost shortfalls, and swift and severe cost cutting measures, culminating in distressed exchanges and even forced restructurings. There may also be isolated insolvency cases with limited recovery prospects where emergence as a going concern may not be feasible, particularly for smaller issuers.
So Far, Minimal EMEA CLO Exposure To Downgraded Credits
As of March 25, 2020, we have taken negative rating actions on 208 U.S. and EMEA speculative-grade corporate issuers, to which European CLOs are exposed, for reasons related to the spread of COVID-19, including downgrades, and negative outlook and CreditWatch placements (see tables 1 and 2). On aggregate, these credits are included in the portfolios of 110 European CLOs that we rate, but account for only 7% of the total portfolio exposure by notional amount.
|Rating Actions On EMEA Corporate Credits|
|Date||Issuer||Sector||Rating||Recovery||Previous Rating||Count of CLOs||Count of loans||Sum of loans (mil. €)||Loan average amount (mil. €)||Loan maximum amount (mil. €)||Loan minimum amount (mil. €)|
|March 20, 2020||Vue International Bidco PLC||Media & Entertainment||B-/Negative||3(65%)||B-/Stable||72||147||163.62||1.11||5.09||0.07|
|March 20, 2020||Hurtigruten Group AS||Media & Entertainment||CCC+/Negative||3(55%)||B-/Stable||45||52||147.20||2.83||6.00||0.25|
|March 20, 2020||Cassini SAS||Media & Entertainment||B-/Negative||3(60%)||B/Negative||40||58||107.26||1.85||6.50||0.22|
|March 20, 2020||eDreams ODIGEO S.A.||Retailing||B/WatchNeg||1(95%)||B/Stable||4||4||5.50||1.38||2.00||1.00|
|March 18, 2020||Cineworld Group PLC||Media & Entertainment||B/WatchNeg||3(60%)||BB-/WatchNeg||18||20||21.80||1.09||4.12||0.32|
|March 18, 2020||Comet Bidco Ltd.||Media & Entertainment||B-/WatchNeg||3(60%)||B-/Stable||7||7||14.58||2.08||2.71||1.81|
|March 17, 2020||Codere S.A.||Media & Entertainment||CCC+/Negative||3(65%)||B-/Negative||18||18||51.67||2.87||6.00||1.25|
|March 17, 2020||Aston Martin Holdings (UK) Ltd.||Automobiles||CCC-/WatchNeg||4(45%)||CCC+/Negative||1||1||0.80||0.80||0.80||0.80|
|March 16, 2020||Amphora Intermediate II Ltd.||Consumer Products||B-/Stable||3(55%)||B/Stable||6||6||15.40||2.57||4.00||2.28|
|March 13, 2020||Auris Luxembourg II Sarl (WS Audiology)||Healthcare||B/Negative||3(55%)||B+/Negative||93||100||337.24||3.37||8.00||0.33|
|March 12, 2020||Garrett Motion Inc.||Automobiles & Components||BB-/Negative||3(65%)||BB-/Stable||25||28||58.30||2.08||5.73||0.61|
|March 10, 2020||EG Group Ltd.||Retailing||B/Negative||3(65%)||B/Stable||89||190||515.21||2.71||11.76||0.10|
|March 9, 2020||Promontoria Holding 264 B.V.||Transportation||B/Negative||4(45%)||B/Stable||39||54||76.94||1.42||3.67||0.15|
|March 9, 2020||Gestamp Automocion||Automobiles & Components||BB/Negative||2(70%)||BB/Stable||1||1||1.00||1.00||1.00||1.00|
|March 4, 2020||Kongsberg Automotive ASA||Automobiles & Components||B/WatchNeg||2(75%)||B+/Negative||11||16||13.90||0.87||2.00||0.50|
|March 4, 2020||Travelex||Media & Entertainment||CCC/WatchNeg||5(15%)||B-/WatchNeg||2||2||1.97||0.99||1.47||0.50|
|March 2, 2020||Planet (Franklin UK Bidco Ltd.)||Technology||B/Negative||3(50%)||B/Stable||34||159||91.38||0.57||4.22||0.01|
|Rating Actions On U.S. Corporate Credits|
|Date||Issuer||Sector||Current||Recovery (senior secured)||Previous||Count of CLOs||Count of loans||Loan amount (mil. €)||Loan average amount (mil. €)||Loan maximum amount (mil. €)||Loan minimum amount (mil. €)|
|March 20, 2020||The Chemours Co.||Chemicals||B+/Negative||1(95%)||BB-/Stable||42||43||113.17||2.63||4.93||0.99|
|March 20, 2020||Scientific Games Corp.||Hotels & Gaming||B/WatchNeg||B/Positive||16||17||22.52||1.32||3.77||0.25|
|March 20, 2020||Mohegan Tribal Gaming Authority||Hotels & Gaming||B-/WatchNeg||B-/Stable||3||5||5.37||1.07||1.83||0.41|
|March 20, 2020||Downstream Development||Hotels & Gaming||CCC/WatchNeg||B/Negative||2||3||3.66||1.22||1.84||0.46|
|March 19, 2020||Screenvision LLC||Media & Entertainment||B/WatchNeg||3(65%)||B/Stable||3||5||4.51||0.90||1.50||0.75|
|March 19, 2020||Holley Purchaser Inc.||Automotive||B-/Negative||3(60%)||B-/Stable||3||3||6.78||2.26||2.28||2.25|
|March 19, 2020||PDC Beauty & Wellness Co.||Capital Goods||B/Negative||6(0%)||B/Stable||3||3||2.07||0.69||0.86||0.45|
|March 18, 2020||Banff Parent Inc.||Technology||B-/WatchNeg||3(65%)||B-/Stable||69||86||298.97||3.48||11.78||0.49|
|March 17, 2020||International Game Technology PLC||Hotels & Gaming||BB/WatchNeg||3(65%)||BB+/Stable||16||23||28.85||1.25||3.35||0.50|
|March 17, 2020||Go Wireless Holdings Inc.||Retailing||B/WatchNeg||2(80%)||B/Negative||1||1||0.27||0.27||0.27||0.27|
|March 16, 2020||Getty Images Inc.||Media & Entertainment||B-/WatchNeg||3(60%)||B-/Stable||26||29||71.77||2.47||4.73||0.20|
|March 16, 2020||AMC Entertainment Inc.||Media & Entertainment||B/WatchNeg||1(95%)||B/Stable||1||1||4.77||4.77||4.77||4.77|
|March 13, 2020||NEP/NCP Holdco Inc.||Media & Entertainment||B/WatchNeg||6(5%)||B/Stable||57||62||127.10||2.05||5.87||0.50|
|March 13, 2020||Pugnacious Endeavors Inc.||Media & Entertainment||B/WatchNeg||3(50%)||B/Stable||27||29||72.36||2.50||7.00||0.99|
|March 13, 2020||Carlson Travel Inc.||Media & Entertainment||B-/WatchNeg||3(60%)||B-/Stable||12||12||25.44||2.12||5.70||0.50|
|March 13, 2020||WireCo WorldGroup Inc.||Metals & Mining||B/WatchNeg||5(25%)||B/Stable||1||2||1.32||0.66||0.88||0.44|
|March 3, 2020||Samsonite International S.A.||Capital Goods||BB+/WatchNeg||1(95%)||BB+/Negative||1||1||4.00||4.00||4.00||4.00|
|February 26, 2020||Tenneco Inc.||Automobiles & Components||B+/Stable||3(50%)||BB/Negative||32||49||84.99||1.73||5.00||0.25|
In aggregate, the universe of European CLOs that we rate is generally well-diversified by issuer, country, and sector, with more than 600 issuers across 27 countries and 60 Global Industry Classification Standard (GICS) industries (see table 3).
Industries reliant on consumer discretionary spending (e.g., travel and high-end retail) and cross-border supply chains (e.g., auto, electronics, and chemicals) are particularly exposed to COVID-19 related risks and will see increased pressure on revenue and earnings (see "Global Credit Conditions: COVID-19's Darkening Shadow," published March 3, 2020).
|European CLOs Exposure By GICS|
|GICS||Exposure (%)||Exposure (€)||GICS||Exposure (%)||Exposure (€)|
|Health care providers and services||9.13||4,020,345,382||Food and staples retailing||0.88||389,245,559|
|Chemicals||8.68||3,821,166,115||Technology hardware, storage and peripherals||0.87||383,087,501|
|Diversified telecommunication services||5.02||2,211,677,971||Marine||0.76||336,432,035|
|Hotels, restaurants and leisure||4.71||2,071,628,802||Personal products||0.65||287,684,253|
|Media||4.64||2,042,396,810||Interactive media and services||0.58||255,462,469|
|Commercial services and supplies||4.50||1,979,739,456||Paper and forest products||0.58||254,214,731|
|Diversified consumer services||4.08||1,797,797,618||Electric utilities||0.54||239,226,806|
|Food products||3.70||1,629,631,596||Leisure products||0.43||188,982,791|
|Specialty retail||3.58||1,574,267,948||Textiles, apparel and luxury goods||0.39||172,803,173|
|Trading companies and distributors||3.45||1,520,416,298||Wireless telecommunication services||0.38||167,802,669|
|Entertainment||2.94||1,291,891,579||Metals and mining||0.32||141,763,734|
|Pharmaceuticals||2.71||1,194,212,308||Semiconductors and semiconductor equipment||0.23||103,289,655|
|Building products||1.98||872,759,771||Consumer finance||0.21||93,351,666|
|Containers and packaging||1.82||801,029,930||Automobiles||0.19||82,180,614|
|Health care equipment and supplies||1.76||776,271,842||Air freight and logistics||0.17||76,935,000|
|Real estate management and development||1.33||584,858,713||Transportation infrastructure||0.14||62,752,500|
|It services||1.30||572,645,124||Electrical equipment||0.11||46,846,524|
|Electronic equipment, instruments and components||1.18||519,468,880||Construction materials||0.08||37,125,000|
|Life sciences tools and services||1.14||503,656,088||Household products||0.07||29,687,000|
|Aerospace and defense||1.14||500,454,326||Project leisure and gaming||0.04||18,650,000|
|Multiline retail||1.01||445,297,784||Oil, gas and consumable fuels||0.03||11,276,629|
|Construction and engineering||1.01||442,883,566||Energy equipment and services||0.02||8,471,082|
|Internet and catalog retail||0.96||423,015,679||Road and rail||0.01||3,454,669|
Overall CLO performance in fourth-quarter 2019 showed slight credit deterioration compared with the previous three quarters, with an increase in 'CCC' category rated assets, and a worsening of the S&P Global Ratings weighted-average rating factor (SPWARF) and scenario default rates (see "European CLO Performance Index Report Q4 2019," published on March 24, 2020). Most of the other metrics we capture showed stable performance.
Chart 4 shows the CLO exposure by loan amounts per country broken down by current outlook. It also indicates the percentage of exposure amount for that country that has been affected by a COVID-19 related rating action out of the total country exposure.
Effect On European CLO Tranches
Considering the speculative-grade corporate rating actions that we have taken since the emergence of COVID-19, several of the affected credits are not present in the portfolios of any European CLOs that we rate. In addition, 25% of the credits with rating actions had their outlook changed to negative, which alone would not alter our credit analysis of CLO portfolios. By contrast, 56% had their rating placed on CreditWatch negative, which our CLO credit analysis treats as a one-notch downgrade.
That said, CLOs benefit from structural features such excess spread, tranching, and the deferability of coupon payments on the mezzanine and junior notes. These factors make CLOs relatively resilient structures, and an increase in corporate downgrades is unlikely to lead to any CLO tranche defaults in the short term. A more likely scenario is that speculative-grade CLO tranches (and possibly some tranches originally rated 'BBB') could be downgraded.
The likely increase in the number of assets falling into the 'CCC' rating category has two effects. First, our stressed scenario default rates for the portfolio would increase, although not significantly. Second, there could also be a breach of the portfolio's documented 'CCC' limit, which could ultimately lead to a breach of coverage ratios. This would mean funds being diverted to repay the senior notes, increasing the CLO's average cost of debt and reducing excess spread.
For example, let's consider a 'AAA' rated CLO tranche, with 38.5% credit enhancement, and an assumed portfolio default rate of 65% in a 'AAA' stress (the scenario default rate; SDR). In general, an increase of 'CCC' category rated assets to 5% is unlikely to cause a downgrade, based on our credit and cash flow models. Similarly, an increase of 'CCC' category rated assets to 15% would increase the SDR by about 2.3 percentage points at the 'AAA' level, 2.8 percentage points at the 'BBB' level, and almost 3.0 percentage points for speculative-grade rating scenarios.
Nevertheless, the cash flow could be negatively affected by this change. In general, when a CLO has 2.5% of excess 'CCC' category rated assets (the amount above the 'CCC' threshold, which is typically 7.5%), this equates to a reduction in the overcollateralization cushion of 0.75%, when using 70% as market value for the 'CCC' excess assets [2.5 x (1-70%)]. If the market value for the 'CCC' excess assets is lower, e.g., 40%, then the erosion in the overcollateralization cushion would be greater, at about 1.5%. Otherwise said, the coverage tests will start breaching earlier and then the senior notes start receiving their principal back earlier.
An increase in corporate default rates could have a similar, albeit more pronounced effect, as even junior 'B-' rated CLO tranches tend to have 6.5%-7.5% credit enhancement and are deferrable in nature. If we consider a 'AAA' rated tranche, with 38.5% credit enhancement, and a 'BBB' rated tranche, with 15% credit enhancement, the increase of defaulted assets to 5% (with a 38% recovery rate for 'AAA' rated notes and 55% for 'BBB') is unlikely to cause a downgrade to the senior note and it may lead to a one notch downgrade for the mezzanine tranche, based on our credit and cash flow model. Similarly, even an increase to 10% of defaulted assets would lead to a likely downgrade of the senior tranches of just one notch, while the mezzanine notes would likely face up to a two-notch downgrade. At the same time, the speculative-grade notes could suffer a greater downgrade.
These are simplified examples, mainly to provide a sense of the risk of downgrade in specific individual scenarios. In our experience, portfolio credit deterioration is not the only factor to consider. Other factors such as decisions to work out the defaulted assets or a sharp deleverage of the senior notes, which would increase the cost of debt of the structure, reducing the excess spread, also play an important role.
That said, we expect that the increases in 'CCC' category rated assets and defaults in the underlying portfolio will lead to a downgrade of the tranches, mainly at the bottom of the CLO capital structure. Even senior tranches, structured with limited cushion, may also see negative rating actions. The specific effect on individual transactions will depend on the structure and portfolio, as well as the collateral manager's role. A collateral manager may be able to boost the CLO's performance by purchasing better credit cheaply, and by building additional par, which would benefit the noteholders. At the same time, a repricing-up of new loans can increase the CLO's weighted-average spread (WAS), which can be used to cure coverage breaches. At the same rating level, for a 1 percentage point increase in the portfolio's WAS, we would usually see about a 3 percentage point increase in the breakeven default rate. Although this somewhat oversimplifies the effect of a relative change in both of these metrics, which will vary slightly among transactions, it presents an approximate indication of what the effect may be. However, this will ultimately depend on the details of each CLO's capital structure.
|Assets Affected By Recent Rating Actions On Corporate Issuers|
|AMC Entertainment Holdings Inc.||£500 mil 6.375% sr nts due 11/15/2024||Bond||XS1512809606||BBG00GX2FRV3||B/WatchNeg|
|Amphora Finance Ltd.||£301 mil fltg rate Facility B bank ln due 04/25/2025||Loan||--||BBG00KJQWXF3||B-|
|Aston Martin Capital Holdings Ltd.||£285 mil 5.75% nts due 04/15/2022||Bond||XS1533915564||BBG00GB843Z5||CCC-/WatchNeg|
|Auris Luxembourg III S.a.r.l.||EUR1.7 bil fltg rate Term B1 A bank ln due 02/21/2026||Loan||--||--||B|
|Boxer Parent Company Inc.||EUR930 mil fltg rate EUR term bank ln due 10/02/2025||Loan||US05988HAC16||--||B-/WatchNeg|
|Boxer Parent Company Inc.||EUR301.5 mil 8.375% nts due 09/01/2026||Bond||XS1864418857||BBG00LLZ75R4||B-/WatchNeg|
|Carlson Travel Inc.||EUR330 mil nts due 06/15/2023||Bond||XS1535991498||BBG00FGQBYD0||B-/WatchNeg|
|Cassini||EUR568 mil Facility B bank ln due 03/28/2026||Loan||--||--||B-|
|CODERE FINANCE 2 (LUXEMBOURG) S.A.||EUR500 mil 6.75% nts due 11/01/2021||Bond||XS1513765922||BBG00F5F5J00||CCC+|
|Comet Bidco Ltd.||£315 mil fltg rate Facility B1 bank ln due 09/29/2024||Loan||--||--||B-/WatchNeg|
|Crown Finance US Inc.||EUR607.643 mil fltg rate Euro Term Loan bank ln due 02/28/2025||Loan||US22834KAC53||BBG00JRTZV08||B/WatchNeg|
|Downstream Development Authority||US$270 mil 10.50% nts due 02/15/2023||Bond||US26112TAJ51||BBG00JSCPCF1||CCC/WatchNeg|
|eDreams ODIGEO S.A.||EUR425 mil 5.50% nts due 09/01/2023||Bond||XS1879565791||BBG00LY8PJV5||B/WatchNeg|
|EG Finco Ltd.||EUR835 mil fltg rate EUR TL Fac B1 bank ln due 02/06/2025||Loan||--||--||B|
|EG Finco Ltd.||EUR200 mil TL Second Lien bank ln due 04/20/2026||Loan||XAG2902UAB70||--||B|
|EG Finco Ltd.||£400 mil fltg rate GBP TL Fac B bank ln due 02/06/2025||Loan||--||--||B|
|EG Global Finance PLC||EUR700 mil 6.25% nts due 10/30/2025||Bond||XS2065633203||--||B|
|EG Global Finance PLC||EUR670 mil 4.375% callable nts due 02/07/2025||Bond||XS1992087996||BBG00NZHWKS3||B|
|EG Global Finance PLC||EUR300 mil 3.625% nts due 02/07/2024||Bond||XS1992918661||BBG00P2FHBL2||B|
|Explorer II A.S.||EUR300 mil 3.375% bnds due 02/24/2025||Bond||NO0010874548||BBG00RLS8C37||CCC+|
|Franklin Uk Bidco Ltd.||EUR8.4 mil fltg rate Term B2 Loan bank ln due 12/09/2024||Loan||--||BBG00JRY17M3||B|
|Franklin Uk Bidco Ltd.||EUR96.6 mil fltg rate Term B3 Loan bank ln due 12/09/2024||Loan||--||--||B|
|Franklin Uk Bidco Ltd.||EUR250 mil fltg rate Term B1 loan bank ln due 12/09/2024||Loan||--||BBG00JB0T3Y0||B|
|Garrett LX I S.A.R.L||EUR350 mil 5.125% nts due 10/15/2026||Bond||XS1884811594||BBG00LZN8764||BB-|
|Garrett LX III S.A.R.L||EUR375 mil fltg rate TL B bank ln due 09/27/2025||Loan||US36641DAE04||--||BB-|
|Garrett Motion S.a r.l.||EUR330 mil fltg rate TL A bank ln due 09/27/2023||Loan||US36641DAC48||--||BB-|
|Gestamp Automocion S.A.||EUR400 mil 3.25% nts due 04/30/2026||Bond||XS1814065345||BBG00KP1FZS1||BB|
|Getty Images Inc.||EUR450 mil fltg rate euro term bank ln due 02/19/2026||Loan||US37427UAK60||BBG00N2FT3K3||B-/WatchNeg|
|Go Wireless Holdings Inc.||US$300 mil fltg rate 1st lien term bank ln due 12/22/2024||Loan||US38019UAB89||BBG00JF7F0R0||B/WatchNeg|
|Holley Purchaser Inc.||US$400 mil fltg rate 1st lien term bank ln due 10/24/2025||Loan||US43540KAB89||BBG00M5B1S44||B-|
|Hurtigruten Group AS||EUR655 mil fltg rate Term loan Facility B bank ln due 02/09/2025||Loan||--||--||CCC+|
|International Game Technology PLC||EUR500 mil 3.50% nts due 07/15/2024||Bond||XS1844997970||BBG00L7XFPC8||BB/WatchNeg|
|International Game Technology PLC||EUR500 mil 2.375% nts due 04/15/2028||Bond||XS2051904733||BBG00Q6WL5D6||BB/WatchNeg|
|International Game Technology PLC||EUR500 mil nts due 01/15/2026||Bond||XS2009038113||BBG00PF1WJL5||BB/WatchNeg|
|Kongsberg Actuation Systems B.V.||EUR275 mil 5.00% nts due 07/15/2025||Bond||XS1843461689||BBG00LDCHYX3||B/WatchNeg|
|Mohegan Tribal Gaming Authority||US$910 mil fltg rate term B bank ln due 10/13/2023||Loan||US608330AQ92||BBG00DVWW340||B-/WatchNeg|
|NEP Europe Finco B.V.||EUR505.13 mil fltg rate 1st lien term bank ln due 10/20/2025||Loan||US62908HAE53||BBG00M37DPC9||B/WatchNeg|
|Parfums Holding Company Inc.||US$565 mil fltg rate 1st lien term bank ln due 06/30/2024||Loan||US69946PAB22||BBG00GXXZ3K8||B|
|Parfums Holding Company Inc.||US$220 mil fltg rate 2nd lien term bank ln due 06/30/2025||Loan||US69946PAE60||BBG00GXXZ756||B|
|Promontoria Holding 264 B.V.||EUR400 mil 6.75% nts due 08/15/2023||Bond||XS1860222543||BBG00LL10JX9||B|
|Promontoria Holding 264 B.V.||EUR260 mil fltg rate nts due 08/15/2023||Bond||XS1860216909||BBG00LL0W1Y4||B|
|PUG LLC||EUR452.37 mil fltg rate term B bank ln due 02/12/2027||Loan||US74530DAE58||--||B/WatchNeg|
|Samsonite Finco S.à r.l.||EUR350 mil 3.50% sr nts due 05/15/2026||Bond||XS1811792792||BBG00KNL84Q8||BB+/WatchNeg|
|Scientific Games International Inc.||EUR325 mil 3.375% nts due 02/15/2026||Bond||XS1766775545||BBG00JX88GQ2||B/WatchNeg|
|Scientific Games International Inc.||EUR250 mil nts due 02/07/2026||Bond||XS1766775891||BBG00JX88YK9||B/WatchNeg|
|Screenvision LLC||US$175 mil fltg rate term B bank ln due 07/02/2025||Loan||--||BBG00L42XKK1||B/WatchNeg|
|Tenneco Inc.||EUR300 mil fltg rate nts due 04/15/2024||Bond||XS1587913663||BBG00G91TJQ1||B+|
|Tenneco Inc.||US$1.7 bil fltg rate term B bank ln due 10/01/2025||Loan||US88037HAG92||BBG00KK7NNY4||B+|
|Tenneco Inc.||EUR350 mil 5.00% sr nts due 07/15/2024||Bond||XS1639490918||--||B+|
|Tenneco Inc.||EUR415 mil 4.875% nts due 04/15/2022||Bond||XS1587905727||BBG00G91M3D7||B+|
|The Chemours Company Co.||EUR350 mil fltg rate Term B-2 bank ln due 04/03/2025||Loan||US16384YAG26||BBG00KBB2J22||B+|
|The Chemours Company Co.||EUR450 mil 4.00% nts due 05/15/2026||Bond||XS1827600724||--||B+|
|Travelex Financing PLC||EUR360 mil 8.00% callable nts due 05/15/2022||Bond||XS1577964882||BBG00GK28204||CCC/WatchNeg|
|Vue International Bidco PLC||EUR634 mil fltg rate Term B1 bank ln due 06/21/2026||Loan||--||--||B-|
|Vue International Bidco PLC||EUR114 mil fltg rate Delayed Draw Term B2 bank ln due 06/21/2026||Loan||--||--||B-|
|WireCo WorldGroup Inc.||US$460 mil fltg rate 1st lien bank ln due 09/30/2023||Loan||US97654QAE70||BBG00KRX2F70||B/WatchNeg|
- European ABS And RMBS: Assessing The Credit Effects Of COVID-19, March 30, 2020
- Coronavirus Impact: Key Takeaways From Our Articles, March 27, 2020
- COVID-19: The Steepening Cost To The Eurozone And U.K. Economies, March 26, 2020
- European Corporate Securitizations: Assessing The Credit Effects Of COVID-19, March 26, 2020
- Global Covered Bonds: Assessing The Credit Effects Of COVID-19, March 25, 2020
- European CMBS: Assessing The Credit Effects Of COVID-19, March 24, 2020
- European CLO Performance Index Report Q4 2019, March 24, 2020
- COVID-19 Macroeconomic Update: The Global Recession Is Here And Now, March 17, 2020
- COVID-19 Credit Update: The Sudden Economic Stop Will Bring Intense Credit Pressure, March 17, 2020
- Coronavirus' Global Spread Poses More Serious Challenges For Airlines, March 12, 2020
- COVID-19 Will Cause A Significant Decline In Global RevPAR, Cash Flow, For Rated Lodging Companies, March 11, 2020
- Unrestrained Supply Swamps Oil Outlook: S&P Global Ratings Revises Oil & Gas Assumptions, March 9, 2020
- Global Credit Conditions: COVID-19's Darkening Shadow, March 3, 2020
- Global Auto Sales Will Downshift Again In 2020, Feb. 27, 2020
- How Much Will Coronavirus Disrupt Europe's Travel, Lodging, And Gaming Sectors?, Feb. 13, 2020
- European Corporate Credit Outlook 2020: In The Balance, Jan. 24, 2020
- The European Speculative-Grade Corporate Default Rate Is Expected To Reach 2.3% By September 2020, Dec. 6, 2019
- What's Driving Recent Rating Pressure On Certain European CLO 2.0s? March 22, 2018
This report does not constitute a rating action.
|Primary Credit Analyst:||Emanuele Tamburrano, London (44) 20-7176-3825;|
|Secondary Contacts:||Marta Stojanova, London + 44 20 7176 0476;|
|Shane Ryan, London + 44 20 7176 3461;|
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