- CLO performance in first-quarter 2020 showed slight credit deterioration compared to the previous quarter, with an increase in assets rated in the 'CCC' rating category, and a worsening of S&P Global Ratings' weighted-average rating factor and scenario default rates.
- Nevertheless, the level of defaulted assets remains low and overcollateralization cushions are positive.
- Following the increase in negative rating actions among speculative-grade companies in March and April, the average credit quality of reinvesting CLO portfolios has stabilized.
COVID-19 concerns persist as much of the market's focus remains on how the pandemic will pan out and it may affect European collateralized loan obligations (CLOs) (see "European CLOs: Assessing The Credit Effects Of COVID-19," published on March 25, 2020)
In the first quarter of the year, downgrades among speculative-grade companies rose markedly, particularly in March. Following this increase in negative rating actions on nonfinancial corporates in March and April, we looked at their impact on CLO portfolio exposures (see "How COVID-19 Changed The European CLO Market In 60 Days," published on May 6, 2020).
In this quarterly index publication, we incorporated the 2019 vintage and look at some of the key metrics behind our ratings on the CLO notes. A month-to-month negative performance of these parameters could pressure the ratings on the notes. We note that our Q1 2020 quarterly report covers the period between the end of November 2019 and February, hence we would have not reflected the impact of COVID-19 in the portfolio composition.
In table 1 below, we show some selected credit metrics for 111 S&P Global Ratings-rated European CLOs that will be reinvesting for all of 2020 since the beginning of the year. We observe that since May, the average credit quality of reinvesting CLO portfolios has appeared to stabilize.
|Selected Average Credit Metrics|
|B-' (%)||CCC' category (%)||Non performing category (%)||Junior O/C cushion (%)||WAP||SPWARF||Par change (%)||CreditWatch negative (%)||Negative outlook (%)|
|Jan. 3, 2020||18.44||3.19||0.10||4.24||98.61||2704||0.00||1.00||20.68|
|Jan. 31, 2020||18.95||2.73||0.10||4.27||98.81||2708||0.00||0.88||19.19|
|March 6, 2020||19.48||1.91||0.04||4.31||98.35||2698||0.00||3.69||22.39|
|April 3, 2020||19.28||6.57||0.08||4.09||85.89||2827||(0.07)||5.23||25.09|
|May 1, 2020||23.74||9.39||0.10||3.59||86.44||2926||(0.13)||6.74||35.26|
|May 8, 2020||24.59||8.68||0.09||3.53||87.09||2922||(0.15)||6.02||36.88|
|May 15, 2020||24.88||8.56||0.11||3.42||88.12||2920||(0.15)||6.42||37.05|
|May 22, 2020||24.69||8.75||0.17||3.35||88.39||2926||(0.16)||6.51||38.55|
|May 29, 2020||25.09||8.91||0.22||3.35||88.32||2923||(0.16)||6.76||38.93|
|June 5, 2020||25.52||8.90||0.23||3.35||88.32||2929||(0.16)||7.52||38.89|
|June 12, 2020||25.52||8.90||0.23||3.50||88.32||2929||(0.16)||7.51||39.24|
|June 19, 2020||25.06||9.80||0.32||3.50||90.29||2956||(0.14)||7.79||40.27|
|CLO--collateralised loan obligation. O/C--Overcollateralization. SPWARF--S&P Global Ratings weighted average rating factor. WAP--Weighted average price. Pricing information is based on over 90% of the loans.|
Nevertheless, we expect broad-based credit deterioration to continue for many speculative-grade companies in certain sectors such as leisure, consumer services, transportation, energy, and natural resources as they find their solvency stretched amid falling revenue. We expect the European trailing 12-month speculative-grade corporate default rate to rise to 8.5% by March 2021 from 2.4% in March 2020 (see "The European Speculative-Grade Corporate Default Rate Could Reach 8.5% by March 2021," published on June 8, 2020).
To date, we have placed 25 classes from 20 European CLOs on CreditWatch negative (see "Ratings On 18 Classes From 14 European CLOs Placed On Watch Negative," published on April 27, 2020, and "Ratings On Seven Classes From Six European CLOs Placed On Watch Negative," published on June 9, 2020). Our rating actions reflected a combination of multiple factors that affected these transactions, with the primary one being the increased exposure to 'CCC' category loans. Other factors included pressure on the overcollateralization ratios, a decline in portfolio credit quality, credit enhancement, and indicative preliminary cash flow results. We also considered qualitative factors to reflect our forward-looking view of the CLO portfolios. We expect to resolve the CreditWatch placements within 90 days of the rating action after we complete a cash flow analysis and committee review for each of the affected transactions.
European CLO Structures Continue to Evolve
On the new issue front, in April, we published an article on how structural features on European CLOs could evolve in the COVID world (see "Redesigning The CLO Blueprint After COVID-19," published on April 21, 2020) Since then, we have seen 16 new issuances price with some of these features, such as lower leverage, removal of the 'B' rated (and for some, the 'BB') tranche, and shorter reinvestment periods--as well as the introduction of some additional features such as the inclusion of a delayed-draw tranche and the reintroduction of the turbo overcollateralization (O/C) test.
We note the difference between this turbo O/C test and the other type of turbo redemption feature (also known as "variable amortizing notes") we have seen in recent transactions. In the latter, interest proceeds used to redeem the most junior notes are made only after the cure of the most junior O/C test (in accordance with the note payment sequence starting from the most senior noteholders) and reinvestment O/C test. (For more information on the latter type of turbo feature i.e., variable amortizing notes, please see https://www.spglobal.com/ratings/en/research-insights/videos/2019-12-11-clo-simplified-turbo-redemption
The turbo O/C test works differently: when the most junior O/C test is breached, up to a certain percentage (e.g., 50%) of available interest proceeds after paying the most junior notes' deferred interest is used to cure the test by paying down the most junior notes rather than the senior notes. This may provide less protection to senior noteholders than a transaction with a standard junior O/C test, which uses all available interest proceeds to pay down the notes sequentially.
To understand the sensitivity of its rating on a typical European CLO to potential negative stresses, S&P Global Ratings explored 10 different scenario analyses and the impact of various stresses (see "How Credit Distress Due To COVID-19 Could Affect European CLO Ratings," published on April 2, 2020). To provide greater market transparency, we have subsequently incorporated five of these scenario analyses in our new issue media releases to facilitate the comparison of transactions.
Although our rating framework has not changed, in light of the rapidly shifting credit dynamics within CLO portfolios due to rating actions (downgrades, CreditWatch placements, and outlook changes) on speculative-grade corporate loan issuers, we introduced an overlay of additional qualitative factors in our rating analysis by considering a minimum cushion between the break-even default rate (BDR) and the scenario default rate (SDR) of 1% for new issue transactions.
The level of the minimum cushion depends on several factors such as the percentage of assets rated 'B-', rated 'CCC', and the percentage of assets with ratings on CreditWatch negative or on negative outlook, amongst others. (See "S&P Global Ratings May Add Additional Qualitative Factors When Rating CLO Tranches Due To Changing Credit Dynamics," published on April 9, 2020" for more details.) For the new issue transactions that we have rated to date, the minimum cushion requirement for reinvestment CLOs has ranged between 1.0% to 1.5%, while actual cushions in transactions have generally exceeded these ranges.
S&P Global Ratings acknowledges a high degree of uncertainty about the evolution of the coronavirus pandemic. The consensus among health experts is that the pandemic may now be at, or near, its peak in some regions but will remain a threat until a vaccine or effective treatment is widely available, which may not occur until the second half of 2021. We are using this assumption in assessing the economic and credit implications associated with the pandemic (see our research here: www.spglobal.com/ratings). As the situation evolves, we will update our assumptions and estimates accordingly.
Measuring CLO Performance Using Key Metrics
CLO issuance has gained momentum over the past five years, and investors have become more familiar with CLO structures and the associated risks, as well as assessing and suitably measuring credit and cash flow risks.
Credit risk, which includes default risk and an increase in 'CCC' category rated assets in the portfolio, among others, can be mitigated by better measures on the cash flow side, like increased available credit enhancement, weighted-average spread, and recoveries, for example.
In this article, we display how these individual parameters have evolved over the last few months to broadly gauge the performance of European CLOs.
CLO Collateral Performance Deteriorates Slightly In First-Quarter 2020
Overall, CLO performance in first-quarter 2020 deteriorated slightly since the previous three quarters, with an increase in 'CCC' category rated assets, and worsening of the S&P Global Ratings' weighted-average rating factor (SPWARF) and SDR. Most of the other metrics we capture showed stable performance.
Collateral portfolios of older vintage cohorts are becoming more concentrated as the assets wind down and they approach their final maturities, while newer vintages are benefiting from still being in their reinvestment phases, when collateral managers can actively mitigate default risk through active trading. We attribute these trends more to the stage in a transaction's life cycle than to significant changes in the portfolios at the collateral level.
European CLO 2.0 collateral ratings
While CLOs enjoy the senior secured status of leveraged loans in the portfolio, it is important to note that these loans are issued to speculative-grade companies.
Underlying collateral ratings contribute significantly to the ratings on transactions that have closed since January 2013. Below we show the rating distribution of the CLO collateral portfolio for the different vintages in European CLO 2.0 transactions over a one-year period (see charts 1 to 7). Note that we have considered transactions that have been refinanced to be in the original vintage as when it was first issued. The CLO portfolio rating performance across all CLO vintages indicates stable performance.
Exposure to 'CCC' rated assets has increased
'CCC' category rated assets are an important measure of European CLO performance because an increase in these assets can indicate that the collateral portfolio's credit quality is worsening. The level of 'CCC' assets can also reduce O/C test cushions because they may not be carried at their full par value.
The percentage of assets rated in the 'CCC' category ('CCC+', 'CCC', or 'CCC-') has shown slightly worse performance for the European CLO cohorts we track. These changes reflect rating migration in the underlying portfolios and may also depend on an individual transaction's pool composition, which is based on the CLO manager's strategy to manage the vehicle.
By vintage, the reported level of 'CCC' rated assets in European cash flow CLOs, as a percentage of total assets in February 2020, was:
- 2013 vintage CLOs: 2.29% of total assets (up from 1.80% in November 2019);
- 2014 vintage CLOs: 2.62% of total assets (down from 2.95% in November 2019);
- 2015 vintage CLOs: 3.14% of total assets (down from 3.35% in November 2019);
- 2016 vintage CLOs: 2.03% of total assets (up from 1.88% in November 2019);
- 2017 vintage CLOs: 1.94% of total assets (unchanged from 1.94% in November 2019);
- 2018 vintage CLOs: 2.19% of total assets (up from 1.91% in November 2019); and
- 2019 vintage CLOs: 1.40% of total assets (down from 1.61% in November 2019).
Individual CLOs exhibited some variances among European CLOs from the same vintages. These CLOs are more likely to breach their thresholds sooner than other types of CLOs.
Exposure to defaulted assets remains limited
CLOs performed well through the financial crisis and beyond. Defaulted assets were one of the key indicators of CLO performance because a defaulted asset may result in a loss of principal to the CLO and a corresponding decline in credit enhancement.
From November 2019 to February 2020, the percentage of defaulted assets (i.e., assets from obligors rated 'CC', 'C', 'SD' [selective default], or 'D') slightly increased for the 2018, and 2019 vintages, and decreased for the 2013, 2015, and 2017 cohort. It remains unchanged for the 2014 and 2016 cohort.
As of February 2020, the percentage of defaulted assets in each underlying collateral portfolio was:
- 2013 vintage CLOs: 0.42% of total assets (down from 0.52% in November 2019);
- 2014 vintage CLOs: 0.00% of total assets (unchanged from 0.00% in November 2019);
- 2015 vintage CLOs: 0.14% of total assets (down from 0.18% in November 2019);
- 2016 vintage CLOs: 0.02% of total assets (unchanged from 0.02% in November 2019);
- 2017 vintage CLOs: 0.05% of total assets (down from 0.15% in November 2019);
- 2018 vintage CLOs: 0.28% of total assets (up from 0.14% in November 2019); and
- 2019 vintage CLOs: 0.02% of total assets (up from 0.00% in November 2019).
These calculations show the proportion of assets that are currently in default, over total assets (not including principal cash).
S&P Global Ratings' weighted-average rating factor (SPWARF) worsens
Although CLOs are generally restricted to eligibility criteria that govern what assets can be part of their portfolios and set their limitations, it is challenging to size a portfolio's default risk during the typical four-year reinvestment period in which the collateral manager is allowed to actively trade assets. These trading activities could change the asset portfolio's composition significantly, thus increasing its risk profile and possibly the required par subordination.
The SPWARF provides an indication of the portfolio's overall credit quality. It is each asset's five-year default rate assumed in our corporate collateralized debt obligation (CDO) criteria, weighted by each asset's par balance, and multiplied by 10,000 (see the "Related Criteria" and "Related Research" sections).
In first-quarter 2020, the overall SPWARF increased to 2,801 from 2,652.
Weighted-average life (WAL) decreased
The WAL is the number of years between the current date and the maturity date of assets in the CLO portfolio.
At 5.1, the WAL is decreasing quarter on quarter.
Scenario default rates (SDRs) worsen
Together with the SPWARF and WAL, we use four other benchmarks (the three diversity measures and the default rate dispersion [DRD]) to produce the approximate 'AAA' SDR (i.e., the expected default levels for the portfolio under the 'AAA' stress scenarios).
While the SPWARF only looks at the credit rating on the assets, SDRs (or the expected target default rate) look into all six components when measuring the overall risk profile of a CLO portfolio (SPWARF + DRD + WAL + the three diversity measures).
On average, the current portfolio credit risk ('AAA' SDRs) has slightly worsened since fourth-quarter 2019, increasing to 63.84% from 61.44%.
Cash Flow Metrics
Credit enhancement has remained steady
Our analysis of CDO transactions, as in our other structured finance ratings, focuses on how much credit enhancement is needed for a given level of credit risk to achieve a specific rating. Typically, credit enhancement is provided by a combination of overcollateralization/subordination and cash collateral. In this case, credit enhancement is the percentage of total performing assets plus cash, minus the tranche balance (including senior and pari passu note balance), divided by total performing assets, plus cash plus recovery on defaulted assets. The credit enhancement levels across the capital structure remained stable over 2019-2020.
|Credit Enhancement By Rating Level|
|Vintage||Q2 2019 yearly average||Q3 2019 yearly average||Q4 2019 yearly average||Q1 2020 yearly average|
|Vintage||Q2 2019 yearly average||Q3 2019 yearly average||Q4 2019 yearly average||Q1 2020 yearly average|
|Vintage||Q2 2019 yearly average||Q3 2019 yearly average||Q4 2019 yearly average||Q1 2020 yearly average|
|Vintage||Q2 2019 yearly average||Q3 2019 yearly average||Q4 2019 yearly average||Q1 2020 yearly average|
|Vintage||Q2 2019 yearly average||Q3 2019 yearly average||Q4 2019 yearly average||Q1 2020 yearly average|
Weighted-average spread followed recent quarterly trends
Spreads vary based on a variety of factors, including the levels of relative liquidity for leveraged loans or the actual and perceived level of credit risk in the leveraged loan market, among others.
Over the past two to three years, leveraged loans have refinanced at a lower cost, leading to increased difficulty in managing the weighted-average spread test in CLOs and in maintaining the weighted-average cost of debt and a healthy return to equity. Consequently, weighted-average spreads are monitored closely in CLOs. If this measure decreases significantly, the risk of a negative rating action on the notes would increase.
On average, the weighted-average spread has remained stable over the past three quarters, which has helped CLO managers manage their weighted-average spread tests.
Senior O/C ratios remained stable
The senior O/C ratio test is a par value test to protect senior noteholders. Declines in the senior O/C ratio test results can indicate decreasing credit quality of the CLO. The O/C ratio is the difference between the O/C test calculated for a particular tranche and the trigger associated with it. Breach of these triggers will mean that senior notes are repaid (until the tests are met again), or if the transaction is in its reinvestment period, the proceeds due on junior notes are either invested in substitute collateral or used to repay the notes.
The senior O/C ratio test cushions were stable for all the cohorts except 2014, 2015 and 2018 (see chart 14).
The senior O/C ratio test cushions (based on reported information) as of February 2020 were:
- 2013 vintage CLOs: 11.26% (up from 9.12% in November 2019);
- 2014 vintage CLOs: 13.24% (down from 13.44% in November 2019);
- 2015 vintage CLOs: 9.98% (down from 10.74% in November 2019);
- 2016 vintage CLOs: 9.89% (up from 9.88% in November 2019);
- 2017 vintage CLOs: 9.83% (up from 9.71% in November 2019);
- 2018 vintage CLOs: 9.48% (down from 9.54% in November 2019); and
- 2019 vintage CLOs: 9.70% (up from 9.45% in November 2019).
Subordinated O/C ratios remained steady
The subordinated O/C ratio test is the par value test for the junior notes in the CLO. Failure to satisfy this test will typically cause interest and principal to be redirected to pay down the most-senior class of notes until the test is satisfied.
From November 2019 to February 2020, the subordinated O/C ratios remained steady with slightly better performance for the older 2013, 2014 vintages due to deleveraging (see chart 15).
As of February 2020, the subordinated O/C ratio test cushions (based on reported information) were:
- 2013 vintage CLOs: 4.21% (up from 3.76% in November 2019);
- 2014 vintage CLOs: 4.21% (up from 3.77% in November 2019);
- 2015 vintage CLOs: 3.67% (down from 3.88% in November 2019);
- 2016 vintage CLOs: 4.61% (up from 4.60% in November 2019);
- 2017 vintage CLOs: 4.26% (up from 4.23% in November 2019);
- 2018 vintage CLOs: 4.25% (down from 4.31% in November 2019); and
- 2019 vintage CLOs: 4.48% (up from 4.45% in November 2019).
Our European CLO performance index report provides aggregate performance statistics across most of our rated European cash flow CLO transactions backed primarily by corporate loans. We provide this information to help market participants track the overall performance of European cash flow CLO transactions and to benchmark the performance of the transactions they follow against the performance of cohorts of similar transactions.
Our report highlights what we view as a number of key risk areas for the transactions, and which we use as part of our analysis of the credit quality of securitized portfolios and of the transactions' payment structure and cash flow mechanics. These include rating migration within the underlying collateral portfolios, as well as other information relevant to the sector.
We divide the performance information in the CLO indexes into cohorts, each containing data for most of the European CLO transactions we rated and issued in a specific vintage year. We collect the performance information from transaction-level performance data in our CDO surveillance databases.
Information prior to the most recent 12 months is available on CDO Interface, S&P Global Ratings' web-based portal for CDO performance information, at www.cdointerface.com. To generate, view, and download data from the CDO indexes, log onto CDO Interface, and then select the "Indexes" tab.
|EMEA CLO Corporate Rating Actions (From March 20, 2020 – June 20, 2020)|
|Action date||Issuer||GIC sector||To||From||No. of European CLOs with exposure||Reason||COVID-19 related|
|Mar 20, 2020||Cassini||Media||B-/Negative||B/Negative||40||COVID-19 impact and delayed deleveraging||Yes|
|Mar 20, 2020||Screenvision, LLC||Entertainment||B/Watch Neg||B/Stable||3||Theater closures due to the coronavirus||Yes|
|Mar 20, 2020||Transportes Aéreos Portugueses, S.A.||Airlines||B/Watch Neg||BB-/Stable(prelim)||3||COVID-19 impact erodes credit metrics||Yes|
|Mar 21, 2020||Edreams Odigeo S.A.||Internet and catalog retail||B/Watch Neg||B/Stable||4||COVID-19 uncertainty||Yes|
|Mar 21, 2020||Hurtigruten Group As||Marine||CCC+/Negative||B-/Stable||47||COVID-19 pandemic weakens demand||Yes|
|Mar 21, 2020||Mohegan Tribal Gaming Authority||Hotels, restaurants, and leisure||B-/Watch Neg||B-/Stable||3||Loss in revenue due to mandated closures amid covid -19 outbreak||Yes|
|Mar 21, 2020||The Chemours Company Co.||Chemicals||B+/Negative||BB-/Stable||42||Anticipated weaker credit metrics||Yes|
|Mar 21, 2020||Downstream Development Authority||Hotels, restaurants, and leisure||CCC/Watch Neg||B/Negative||2||Loss in revenue due to mandated closures amid covid -19 outbreak||Yes|
|Mar 23, 2020||Travelex Holdings Ltd.||Consumer finance||CC/Negative||CCC/Watch Neg||2||Insolvency risk||No|
|Mar 23, 2020||Specialty Chemicals International B.V.||Chemicals||B+/Stable||B+/Positive||2||Weaker market demand||Yes|
|Mar 23, 2020||Norican A/S||Machinery||B-/Negative||B/Stable||8||Difficult market conditions||Yes|
|Mar 24, 2020||Nep/Ncp Holdco Inc.||Entertainment||B-/Watch Neg||B/Watch Neg||57||Severe operating challenges||No|
|Mar 24, 2020||Zinc-Polymer Parent Holdings, LLC||Containers and packaging||CCC+/Negative||B/Stable||3||Expected elevated leverage||No|
|Mar 24, 2020||Altran Technologies S.A.||It services||BBB/Stable||BB/Watch Pos||44||Acquisition of controlling stake by capgemini||Yes|
|Mar 24, 2020||Naviera Armas, S.A.||Marine||B-/Negative||B/Stable||13||Weaker earnings and liquidity||Yes|
|Mar 24, 2020||SGL Carbon SE||Electrical equipment||CCC+/Stable||B-/Negative||4||Continued weak market conditions||Yes|
|Mar 25, 2020||Casper MidCo||Hotels, restaurants, and leisure||B-/Watch Neg||B-/Positive||49||COVID-19 uncertainty||Yes|
|Mar 25, 2020||Thame And London Ltd.||Hotels, restaurants, and leisure||CCC+/Watch Neg||B-/Stable||2||COVID-19 impact||Yes|
|Mar 25, 2020||Coty InC.||Personal products||B/Watch Neg||B+/Stable||49||Impact of the spread of COVID-19||Yes|
|Mar 25, 2020||Werner Finco Lp||Commercial services and supplies||B-/Negative||B/Negative||3||COVID-19 issues and continued weak performance||Yes|
|Mar 25, 2020||Promotora De Informaciones S.A.||Media||B-/Watch Neg||B/Stable||26||High leverage and weaker cash flows||Yes|
|Mar 26, 2020||Hexion Inc.||Chemicals||B-/Negative||B/Stable||40||Expected lower demand, earnings||No|
|Mar 26, 2020||Financiere Top Mendel SAS||Health care providers and services||B/Negative||B+/Stable||97||Increased financial leverage||No|
|Mar 26, 2020||LTI Holdings, Inc.||Auto components||CCC+/Negative||B-/Negative||1||Unsustainable capital structure & expected end-market weakness||Yes|
|Mar 26, 2020||Clarios Global LP||Trading companies and distributors||B/Stable||B+/Stable||86||Higher-than-expected debt leverage||Yes|
|Mar 26, 2020||Grupo Antolin Irausa SA||Auto components||B-/Negative||B/Negative||11||COVID-19 impact||Yes|
|Mar 27, 2020||Mabel Topco Ltd.||Hotels, restaurants, and leisure||B-/Watch Neg||B/Positive||1||COVID-19 disruption||Yes|
|Mar 27, 2020||Praesidiad Group Ltd.||Capital markets||CCC/Watch Neg||CCC+/Negative||6||Thin covenant headroom and COVID-19 uncertainty||Yes|
|Mar 27, 2020||Adient PLC||Auto components||B+/Watch Neg||B+/Negative||10||Pandemic risks||Yes|
|Mar 27, 2020||Stonegate Pub Co. Ltd.||Hotels, restaurants, and leisure||CCC+/Negative||B-/Watch Dev||7||COVID-19 uncertainty||Yes|
|Mar 27, 2020||Autokiniton Us Holdings, Inc.||Distributors||B/Watch Neg||B+/Stable||2||Impact from the coronavirus||Yes|
|Mar 27, 2020||EI Group PLC||Hotels, restaurants, and leisure||CCC+/Negative||B/Watch Neg||2||COVID-19 lockdown||Yes|
|Mar 27, 2020||Lsf9 Balta Issuer S.A.||Household durables||B-/Negative||B/Stable||1||Cash flow generation uncertainty and refinancing risks||Yes|
|Mar 27, 2020||Thor Industries, Inc.||Automobiles||BB-/Negative||BB/Negative||24||Anticipated COVID-19 impact||Yes|
|Mar 28, 2020||The Knot Worldwide Inc.||Interactive media and services||B/Watch Neg||B/Stable||1||-||Yes|
|Mar 28, 2020||Samsonite International S.A.||Textiles, apparel and luxury goods||BB-/Negative||BB+/Watch Neg||1||Impact of coronavirus on travel||Yes|
|Mar 28, 2020||UC Holdings Inc.||Auto components||B/Watch Neg||B/Stable||2||Coronavirus-related production disruption||Yes|
|Mar 30, 2020||Afflelou SAS||Specialty retail||B-/Negative||B/Stable||12||Low covenant headroom and sharp decline in volumes linked to COVID-19||Yes|
|Mar 30, 2020||HNVR Midco Ltd.||It services||CCC+/Negative||B-/Stable||80||COVID-19 impact||Yes|
|Mar 30, 2020||Kiwi Vfs Sub 1 S.A.R.L.||Capital markets||B/Negative||B+/Stable||47||COVID-19 leads to global travel disruption||Yes|
|Mar 30, 2020||Ammega Group B.V.||Machinery||B-/Stable||B/Stable||56||Likely delay in deleveraging due to the coronavirus pandemic||Yes|
|Mar 31, 2020||Kestra Advisor Services Holdings A, Inc.||Capital markets||B/Stable||B+/Watch Neg||1||Rate cuts and declining markets||Yes|
|Mar 31, 2020||International Design Group Spa||Household durables||B/Negative||B/Stable||38||Expected material decline in demand due to COVID-19 outbreak||Yes|
|Mar 31, 2020||International Park Holdings B.V.||Hotels, restaurants, and leisure||B-/Watch Neg||B-/Stable||52||Uncertainty on the duration of the theme park closures due to COVID-19 pandemic||Yes|
|Mar 31, 2020||Loxam SAS||Trading companies and distributors||B/Negative||BB-/Negative||12||Negative impact of COVID-19 on financial results||Yes|
|Mar 31, 2020||Piolin Bidco S.A.U.||Entertainment||B-/Watch Neg||B-/Positive||77||Uncertainty on the duration of the theme park closures due to COVID-19 pandemic||Yes|
|Mar 31, 2020||Raffinerie Heide GmbH||Oil, gas and consumable fuels||B-/Stable||B/Stable||2||Severe downturn because of COVID-19||Yes|
|Mar 31, 2020||Vincent Bidco BV (Nl)||Commercial services and supplies||B-/Stable||B/Stable||13||Closure of some sites amid COVID-19||Yes|
|Apr 01, 2020||Tailwind Smith Cooper Holding Corporation||Building products||B-/Negative||B/Stable||3||Expected high leverage||No|
|Apr 01, 2020||Catluxe Sarl||Textiles, apparel and luxury goods||CCC+/Negative||B-/Stable||23||Unsustainable capital structure due to COVID-19||Yes|
|Apr 01, 2020||Kirk Beauty One GmbH||Specialty retail||CCC+/Negative||B-/Stable||3||COVID-19 uncertainty and heightened refinancing risk||Yes|
|Apr 01, 2020||Selecta Group B.V.||Internet and catalog retail||B-/Negative||B/Stable||9||Continued negative free operating cash flow||Yes|
|Apr 02, 2020||House of HR NV||Commercial services and supplies||B/Negative||B+/Stable||52||COVID-19 measures limit recruitment||Yes|
|Apr 02, 2020||Jaguar Land Rover Automotive PLC||Automobiles||B/Negative||B+/Negative||1||Weaker credit metrics due to COVID-19 uncertainty||Yes|
|Apr 02, 2020||Sunshine Luxembourg VII S.A R.L.||Personal products||B-/Stable||B/Negative||51||Expected weakening in credit metrics||Yes|
|Apr 02, 2020||Zephyr Midco 2 Ltd.||Media||B-/Stable||B/Stable||44||Delayed deleveraging due to COVID-19||Yes|
|Apr 02, 2020||Transdigm Inc.||Aerospace and defense||B+/Negative||B+/Stable||1||Weaker credit metrics due to coronvirus||No|
|Apr 03, 2020||Europcar Mobility Group||Road and rail||B-/Watch Neg||BB-/Negative||4||COVID-19 effects and weakening liquidity||Yes|
|Apr 03, 2020||Franklin Ireland Topco Limited||Consumer finance||B-/Negative||B/Negative||34||COVID-19-related disruption||Yes|
|Apr 03, 2020||Parts Holding Europe SAS||Specialty retail||B-/Negative||B/Negative||43||Impact from COVID-19||Yes|
|Apr 03, 2020||Schaeffler AG||Auto components||BBB-/Watch Neg||BBB-/Negative||1||Weaker earnings due to the COVID-19 pandemic||Yes|
|Apr 03, 2020||AMC Entertainment Holdings INC.||Entertainment||CCC-/Negative||B/Watch Neg||1||Closure of theatres due to COVID-19 outbreak||Yes|
|Apr 03, 2020||CHG PPC Parent LLC||Food products||B-/Negative||B/Stable||19||Expected profitability hit due to coronavirus||Yes|
|Apr 03, 2020||Iho Verwaltungs GmbH||Auto components||BBB-/Watch Neg||BBB-/Negative||7||Weaker earnings due to the COVID-19 pandemic||Yes|
|Apr 03, 2020||Kapla Holding (Kiloutou)||Trading companies and distributors||B/Negative||B+/Stable||67||Uncertainties due to COVID-19||Yes|
|Apr 04, 2020||Kronos Worldwide Inc.||Chemicals||B-/Negative||B/Stable||7||Expected weaker demand amid global economic slowdown||Yes|
|Apr 04, 2020||ASP Unifrax Holdings, Inc.||Trading companies and distributors||CCC+/Negative||B-/Stable||32||Weak auto and commodity demand||Yes|
|Apr 06, 2020||BBD Bidco Ltd.||Commercial services and supplies||B-/Negative||B/Stable||67||COVID-19 measures weigh on sales||Yes|
|Apr 06, 2020||Solera Holdings Inc.||Software||B-/Negative||B-/Stable||50||Weak economic forecast||No|
|Apr 07, 2020||Amer Sports Holding 1 Oy||Media||B-/Negative||B+/Stable||56||Declining demand amid COVID-19 pandemic||Yes|
|Apr 07, 2020||Fire (BC) S.a r.l.||Chemicals||B-/Stable||B/Stable||49||Weaker expected credit metrics for 2020||No|
|Apr 07, 2020||Envision Healthcare Corp.||Health care providers and services||CC/Negative||B/Negative||3||Proposed distressed exchange offer||Yes|
|Apr 07, 2020||Burger King France SAS||Hotels, restaurants, and leisure||B-/Watch Neg||B-/Stable||16||COVID-19 confinement measures||Yes|
|Apr 07, 2020||Tendam Brands S.A.U.||Specialty retail||B/Watch Neg||B+/Stable||22||COVID-19 confinement measures||Yes|
|Apr 07, 2020||Thom Europe S.A.S.||Specialty retail||B/Negative||B/Stable||46||COVID-19 confinement measures||Yes|
|Apr 08, 2020||Kongsberg Automotive ASA||Distributors||B-/Watch Neg||B/Watch Neg||11||Liquidity concerns due to covid 19||Yes|
|Apr 08, 2020||Tenneco INC.||Auto components||B/Watch Neg||B+/Stable||32||Pandemic-related risks||Yes|
|Apr 08, 2020||Advantage Sales & Marketing Inc.||Media||CCC+/Watch Dev||B-/Positive||3||Heightened refinancing risk||Yes|
|Apr 08, 2020||Pinnacle Bidco PLC||Hotels, restaurants, and leisure||B-/Watch Neg||B/Watch Neg||1||COVID-19 exacerbates high leverage||Yes|
|Apr 09, 2020||Global Blue Acquisition B.V.||Internet and catalog retail||B+/Stable||BB-/Stable||29||Worsening operating performance amid COVID-19||Yes|
|Apr 09, 2020||Promontoria Holding 264 B.V.||Air freight and logistics||B-/Negative||B/Negative||40||Weaker earnings and COVID-19 uncertainty||Yes|
|Apr 09, 2020||Swissport Financing S.A R.L.||Capital markets||CCC/Negative||B-/Stable||81||Risk of debt restructuring due to COVID-19||Yes|
|Apr 09, 2020||Viskase Companies Inc.||Containers and packaging||CCC/Negative||B-/Watch Neg||1||Refinancing risk||Yes|
|Apr 10, 2020||GTT Communications, Inc.||Diversified telecommunication services||CCC+/Negative||B-/Negative||56||Potential economic impact from the coronavirus||Yes|
|Apr 10, 2020||Aruba Investments Inc.||Chemicals||B-/Stable||B-/Positive||30||Weakened demand in some of its key end markets||No|
|Apr 11, 2020||First American Payment Systems LP||It services||B-/Negative||B/Stable||2||Macroeconomic weakness due to COVID-19||Yes|
|Apr 13, 2020||Wireco Worldgroup Inc.||Metals and mining||B-/Negative||B/Watch Neg||1||Expected lower oil & gas volumes, credit metrics weakness||Yes|
|Apr 14, 2020||HGIM Corp.||Marine||CCC+/Negative||B-/Stable||3||Unsustainable leverage, weak market conditions||Yes|
|Apr 14, 2020||Awaze LTD.||Media||B-/Negative||B/Negative||39||Closures due to COVID-19 containment measures||Yes|
|Apr 14, 2020||Novem Group GmbH||Distributors||B+/ Watch Neg||B+/Stable||13||COVID-19 pandemic||Yes|
|Apr 14, 2020||Gestamp Automocion S.A.||Auto components||BB/Watch Neg||BB/Negative||1||COVID-19 pandemic||Yes|
|Apr 15, 2020||Finastra Ltd.||Software||CCC+/Negative||B-/Stable||69||Potentially unsustainable capital structure||Yes|
|Apr 15, 2020||Shift4 Payments LLC||It services||B-/Negative||B/Stable||1||Macroeconomic weakness from COVID-19||Yes|
|Apr 16, 2020||McLaren Group Ltd.||Automobiles||CCC/Negative||B/Negative||1||Weak liquidity stemming from COVID-19 uncertainty||Yes|
|Apr 16, 2020||Anacap Financial Europe S.A.||Capital markets||B+/Watch Neg||B+/Stable||24||Tough environment for the sector amid COVID-19||Yes|
|Apr 16, 2020||B2Holding Asa||Consumer finance||B+/Negative||BB-/Stable||1||Tough environment for the sector amid COVID-19||Yes|
|Apr 16, 2020||Intrum Ab (Publ)||Commercial services and supplies||BB/Negative||BB+/Negative||14||Tough environment for the sector amid COVID-19||Yes|
|Apr 16, 2020||Intrum Ab (Publ)||Commercial services and supplies||B+/Stable||BB-/Stable||26||Tough environment for the sector amid COVID-19||Yes|
|Apr 16, 2020||Ai Convoy (Luxembourg) S.A.R.L.||Aerospace and defense||B/Negative||B(prelim)/Stable||77||COVID-19 pandemic||Yes|
|Apr 16, 2020||Rubix Group Finco Ltd.||Trading companies and distributors||B-/Negative||B/Negative||49||Weaker credit metrics amid COVID-19 uncertainty||Yes|
|Apr 16, 2020||Sazka Group A.S.||Hotels, restaurants, and leisure||B+/Negative||BB-/Negative||3||COVID-19 pandemic||Yes|
|Apr 16, 2020||Tele Columbus AG||Media||B-/Watch Neg||B-/Negative||72||Operational setbacks||Yes|
|Apr 16, 2020||Ai Ladder (Luxembourg) Subco S.A.R.L.||Electrical equipment||B/Negative||B/Stable||2||COVID-19 impact||Yes|
|Apr 16, 2020||ASR Media and Sponsorship S.p.A.||Project leisure and gaming||B+/Watch Neg||BB-/Stable||11||Uncertainity on sporting events because of COVID-19 pandemic||Yes|
|Apr 16, 2020||Inter Media And Communication S.P.A.||Project leisure and gaming||B+/Watch Neg||BB-/Stable||4||Uncertainity on sporting events because of COVID-19 pandemic||Yes|
|Apr 17, 2020||Safety Products/JHC Acquisition Corp.||Metals and mining||B-/Negative||B/Stable||2||Higher expected leverage||Yes|
|Apr 17, 2020||Kraton Polymers LLC||Chemicals||B+/Negative||B+/Positive||2||Debt reduction||No|
|Apr 17, 2020||Lsf10 Xl Bidco SCA||Building products||B+/Negative||B+/Stable||10||Weaker revenue prospects||No|
|Apr 18, 2020||RGIS Holdings LLC||Commercial services and supplies||CCC-/Watch Neg||CCC+/Negative||3||Likely near-term convenant violation||No|
|Apr 18, 2020||Dynasty Acquisition Co., Inc.||Aerospace and defense||B-/Negative||B/Stable||1||Lower air traffic due to coronavirus pandemic||Yes|
|Apr 20, 2020||Joye Media SLU||Entertainment||B/Watch Neg||BB-/Stable||28||COVID-19 impact on earnings and liquidity||Yes|
|Apr 20, 2020||Lima Corporate S.P.A.||Health care equipment and supplies||B-/Stable||B/Stable||7||Deviation from deleveraging trajectory due to COVID-19 fallout||Yes|
|Apr 21, 2020||Diamond (BC) B.V.||Chemicals||CCC+/Negative||B-/Negative||54||Anticipated global recession in 2020||Yes|
|Apr 21, 2020||Perstorp Holding Ab (Publ)||Chemicals||B-/Negative||B/Negative||54||Weakened demand in COVID-19 fallout||Yes|
|Apr 21, 2020||Altice Luxembourg SA||Media||NR||B/Negative||3||-||Yes|
|Apr 21, 2020||P&Iswbidco GmbH||Media||NR||B/Negative||8||-||Yes|
|Apr 21, 2020||LSFX Flavum Bidco S.A.||Chemicals||B/Negative||B/Stable||23||Economic impact from COVID-19||Yes|
|Apr 22, 2020||Engine Holding LLC||Media||D||CCC-/Negative||2||Forbearance agreement following missed debt interest and amortization payments||No|
|Apr 22, 2020||Takko Fashion S.a.r.l.||Specialty retail||CCC+/Negative||B-/Stable||19||COVID-19 uncertainty and covenant breach risk||Yes|
|Apr 22, 2020||Breitling Financing S.A R.L.||Textiles, apparel and luxury goods||B-/Stable||B/Stable||52||Expected increase in leverage due to COVID-19||Yes|
|Apr 23, 2020||Nets Topco 3 S.a r.l.||Software||B-/Negative||B/Developing||101||COVID-19 impact||Yes|
|Apr 23, 2020||Paysafe Group Holdings II Ltd.||Technology hardware, storage and peripherals||B-/Stable||B/Stable||64||COVID-19-related macroeconomic weakness||Yes|
|Apr 23, 2020||Marcolin Spa||Health care equipment and supplies||B-/Negative||B/Stable||6||Liquidity stress due to COVID-19 fallout||Yes|
|Apr 23, 2020||Novafives||Machinery||B-/Stable||B/Negative||27||Weaker 2019 results due to COVID-19||Yes|
|Apr 24, 2020||Motion Midco Ltd.||Hotels, restaurants, and leisure||B/Watch Neg||B+/Watch Neg||65||COVID-19 impact||Yes|
|Apr 25, 2020||Brand Industrial Services, Inc.||Construction and engineering||B-/Negative||B-/Stable||3||Risk of elevated debt leverage||No|
|Apr 27, 2020||GHD Verwaltung Gesundheits Gmbh Deutschland GmbH||Health care equipment and supplies||B-/Stable||B/Negative||37||Operating underperformance||Yes|
|Apr 28, 2020||Rodenstock GmbH||Health care equipment and supplies||B-/Stable||B/Stable||27||Projected weaker demand||Yes|
|Apr 29, 2020||Envision Healthcare Corp.||Health care providers and services||SD||CC/Negative||3||Distressed exchange||Yes|
|Apr 29, 2020||Qualtek USA, LLC||Construction and engineering||B-/Negative||B/Negative||2||Weaker than expected operating results||Yes|
|Apr 29, 2020||BME Group Holding BV||Trading companies and distributors||B/Negative||B/Stable||18||Weakened demand from COVID-19 fallout||Yes|
|Apr 30, 2020||Codere S.A.||Hotels, restaurants, and leisure||CCC/Negative||CCC+/Negative||19||Heightened default risk||No|
|Apr 30, 2020||Cineworld Group PLC||Entertainment||CCC+/Watch Neg||B/Watch Neg||21||Weak liquidity and uncertainty on when cinemas will reopen||No|
|Apr 30, 2020||Quimper AB||Trading companies and distributors||B/Negative||B/Stable||100||Likely weaker demand||No|
|May 01, 2020||EG Group Ltd.||Specialty retail||B-/Stable||B/Negative||95||Expected slower deleveraging amid COVID-19 disruption||Yes|
|May 04, 2020||Gamenet Group S.P.A.||Hotels, restaurants, and leisure||B/Negative||B+/Watch Neg||47||Apollo acquisition and COVID-19 effects||Yes|
|May 05, 2020||Envision Healthcare Corp.||Health care providers and services||CCC/Negative||SD||3||Debt rating actions taken||Yes|
|May 05, 2020||Commercial Vehicle Group Inc.||Machinery||B/Negative||B/Stable||3||Lower demand||No|
|May 05, 2020||Haya Real Estate S.A.U||Real estate management and development||B-/Negative||B-/Stable||26||COVID-19 containment measures are likely to limit covenant headroom||Yes|
|May 05, 2020||Sisal Group S.P.A||Hotels, restaurants, and leisure||B/Negative||B+/Negative||22||COVID-19 impact||Yes|
|May 07, 2020||Archroma Holdings S.à r.l.||Chemicals||B/Negative||B/Stable||49||Weaker earnings amid COVID-19||Yes|
|May 07, 2020||Dexko Global Inc.||Auto components||B-/Negative||B/Stable||28||Expected weaker demand||Yes|
|May 09, 2020||Banff Parent Inc.||Software||B-/Stable||B-/Watch Neg||15||Compuware acquisition||No|
|May 12, 2020||Flutter Entertainment PLC||Hotels, restaurants, and leisure||BB+/Watch Neg||B+/Watch Pos||62||Rating upgrade post merger with flutter entertainment||No|
|May 12, 2020||New Look Bonds Ltd.||Specialty retail||NR||CCC+/Negative||9||Rating downgarded on liquidity concerns and then withdrawn on issuer's request||No|
|May 12, 2020||Sisalpay Group S.P.A.||It services||BB-/Negative||BB-/Stable||54||Downgrade of corporate parent sisal group||No|
|May 13, 2020||Foodco Bondco SAU||Hotels, restaurants, and leisure||CCC+/Negative||B/Stable||31||COVID-19 uncertainty||Yes|
|May 14, 2020||MEIF 5 Arena Holdings SLU||Commercial services and supplies||BB-/Negative||BB/Stable||12||Likely slower deleveraging amid COVID-19 disruption||Yes|
|May 14, 2020||Infopro Digital Group B.V.||Software||B-/Stable||B/Stable||11||COVID-19-related deleveraging constraints and refinancing risk||Yes|
|May 14, 2020||U.S. Renal Care Inc.||Health care providers and services||B-/Stable||B/Stable||3||Underperformance and weaker discretionary cash flow||Yes|
|May 18, 2020||L1R HB Finance Ltd.||Specialty retail||CCC+/Stable||B-/Negative||30||COVID-19 disruption||Yes|
|May 19, 2020||Takko Fashion S.a.r.l.||Specialty retail||SD||CCC+/Negative||19||Missed interest payments||No|
|May 19, 2020||Schoeller Packaging B.V.||Containers and packaging||B-/Negative||B/Stable||4||Weak cash flow generation prospects||Yes|
|May 20, 2020||Groupe Ecore Holding||Commercial services and supplies||CCC+/Stable||B-/Stable||3||COVID-19 disruption, unsustainable capital structure||Yes|
|May 20, 2020||Nordex SE||Electrical equipment||B-/Stable||B/Stable||2||COVID-19 impact||Yes|
|May 20, 2020||Sigma Holdco BV||Food products||B+/Negative||B+/Stable||17||Expected weaker cash flow due to separation-related costs||No|
|May 20, 2020||Jacobs Douwe Egberts International B.V.||Food products||BB/Watch Pos||BB/Positive||26||Ipo announcement||Yes|
|May 21, 2020||Downstream Development Authority||Hotels, restaurants, and leisure||SD||CCC/Watch Neg||2||Term loan modification||Yes|
|May 25, 2020||Travelex Holdings Ltd.||Consumer finance||SD||CC/Negative||2||Missed interest payment on senior secured notes||No|
|May 27, 2020||Contourglobal Power Holdings S.A.||Electric utilities||BB/Stable||BB-/Positive||1||Business resilience||Yes|
|May 28, 2020||Rolls Royce PLC||Aerospace and defense||BB/Negative||BBB-/Watch Neg||1||COVID-19 impact||Yes|
|May 28, 2020||William Hill PLC||Hotels, restaurants, and leisure||BB-/Negative||BB/Stable||1||COVID-19 impact||Yes|
|May 28, 2020||Anacap Financial Europe S.A.||Capital markets||B/Stable||B+/Watch Neg||25||Further deterioration of its financial profile||Yes|
|May 29, 2020||Europcar Mobility Group||Road and rail||CCC+/Negative||B-/Watch Neg||5||COVID-19 disruption and potential liquidity pressure||Yes|
|May 29, 2020||Global University Systems Holding BV||Diversified consumer services||B/Watch Neg||B/Stable||79||COVID-19 uncertainties||Yes|
|May 29, 2020||Downstream Development Authority||Hotels, restaurants, and leisure||CCC/Negative||SD||2||Term loan modification||Yes|
|May 30, 2020||Infor Inc.||Software||BBB/Stable||B-/Watch Pos||75||Acquisition by koch industries||Yes|
|May 30, 2020||Technicolor S.A.||Entertainment||CCC-/Negative||B-/Stable||29||Plan to raise additional debt||Yes|
|May 30, 2020||Carlson Travel Inc.||Hotels, restaurants, and leisure||CCC/Negative||B-/Watch Neg||12||Business declines from COVID-19||Yes|
|Jun 02, 2020||Al Alpine At Bidco||Machinery||B/Watch Neg||B/Stable||73||Weaker performance prospects||Yes|
|Jun 03, 2020||AMC Entertainment Holdings Inc.||Entertainment||CC/Negative||CCC-/Negative||1||Subordinated notes exchange offer||Yes|
|Jun 03, 2020||Galileo Global Education Finance Sarl||Diversified consumer services||B/Negative||B/Stable||78||Forecasted increase in debt||No|
|Jun 04, 2020||PHM Netherlands Midco B.V.||Chemicals||B-/Stable||B/Negative||9||Elevated debt leverage; debt ratings lowered||Yes|
|Jun 04, 2020||Swissport Financing S.A R.L.||Capital markets||CCC/Watch Neg||CCC/Negative||72||Launching consent solicitation and scheme of arrangement||Yes|
|Jun 08, 2020||Auris Luxembourg II S.a.r.l.||Health care equipment and supplies||B-/Stable||B/Negative||112||Delayed deleveraging prospects||Yes|
|Jun 09, 2020||Masmovil Ibercom SA.||Electric utilities||BB-/Watch Neg||BB-/Stable||96||Takeover bid by providence, cinven, and kkr||No|
|Jun 09, 2020||OQ Chemicals Holding Drei GmbH||Chemicals||B/Negative||B+/Stable||58||Parent company's exposure to oil prices||Yes|
|Jun 09, 2020||Pro.Gest Spa||Containers and packaging||CCC+/Negative||B-/Watch Neg||3||Ongoing liquidity concerns||Yes|
|Jun 10, 2020||RGIS Holdings LLC||Commercial services and supplies||D/NM||CCC-/Watch Neg||3||Missed interest payment on debt||No|
|Jun 10, 2020||Cassini SAS||Media||B-/Watch Neg||B-/Negative||48||Show cancellations and postponements||Yes|
|Jun 10, 2020||Foodco Bondco SAU||Hotels, restaurants, and leisure||CCC-/Negative||CCC+/Negative||31||Debt restructuring risk||Yes|
|Jun 11, 2020||iQor Holdings Inc.||It services||CC/Negative||CCC/Negative||2||Bridge loan containing specific default language||No|
|Jun 11, 2020||Flutter Entertainment PLC||Hotels, restaurants, and leisure||BB+/Stable||BB+/Watch Neg||67||Raised equity of £813 million via a share placement||No|
|Jun 11, 2020||Banijay Group SAS||Entertainment||B/Negative||B+/Watch Neg||16||Weakening metrics due to COVID-19 operating disruptions||Yes|
|Jun 16, 2020||Warner Music Group Corp.||Entertainment||BB/Stable||BB-/Positive||6||Sustained operating and industry strength||No|
|Jun 17, 2020||Albea Beauty Holdings S.A.||Containers and packaging||B/Negative||B/Watch Dev||50||Sale of dispensing segment||No|
|Jun 17, 2020||Codere S.A.||Hotels, restaurants, and leisure||CCC-/Negative||CCC/Negative||19||Heightened default risk||No|
|Jun 17, 2020||Hercule Debtco S.A R.L.||Containers and packaging||B/Negative||B/Watch Dev||4||Sale of dispensing segment||No|
|Jun 17, 2020||Scientific Games Corp.||Hotels, restaurants, and leisure||B/Negative||B/Watch Neg||20||Less volatile lottery business||No|
|Jun 17, 2020||Screenvision, LLC||Entertainment||B/Negative||B/Watch Neg||3||High leverage amid prolonged theater closures||Yes|
|Jun 17, 2020||Shift4 Payments LLC||It services||B/Stable||B-/Negative||1||Debt reduction from IPO||No|
|Jun 18, 2020||Hema B.V.||Specialty retail||CC/Negative||CCC/Negative||11||Proposed debt restructuring||No|
|Jun 18, 2020||Joye Media SLU||Entertainment||B-/Watch Neg||B/Watch Neg||31||Fragile liquidity||No|
|Jun 19, 2020||Faurecia SE||Auto components||BB/Stable||BB+/Watch Neg||8||COVID-19 weakens deleveraging prospects||Yes|
|Jun 20, 2020||Forming Machining Industries Holdings, LLC||Aerospace and defense||CCC+/Negative||B-/Negative||2||Coronavirus-related fallout||Yes|
|Performing Public Issuers Rated 'B-' Or Lower In European CLO Deals As Of June 19, 2020|
|Issuer||Issuer credit rating||Outlook/CreditWatch||GIC sector||Country||Principal funded balance (€)||Rank order|
|CAB||B-||Stable||Health care providers and services||France||289,595,048||1|
|Sapphire Bidco B.V.||B-||Negative||Commercial services and supplies||Netherlands||271,382,046||2|
|Tele Columbus AG||B-||Watch Neg||Media||Germany||263,496,381||3|
|Piolin Bidco S.A.U.||B-||Watch Neg||Hotels, restaurants, and leisure||Spain||233,304,822||4|
|Diamond (Bc) B.V.||CCC+||Negative||Household products||Netherlands||229,814,951||5|
|Rubix Group Finco Ltd.||B-||Negative||Trading companies and distributors||U.K.||221,025,029||6|
|IGT Holding IV AB||B-||Stable||Software||Sweden||209,155,344||7|
|Speedster Bidco GmbH||B-||Stable||Internet and catalog retail||Germany||201,391,920||8|
|Ammega Group B.V.||B-||Stable||Machinery||Netherlands||191,202,219||9|
|Bbd Bidco Ltd.||B-||Negative||Commercial services and supplies||U.K.||185,302,181||10|
|Sunshine Luxembourg VII S.A R.L.||B-||Stable||Personal products||Switzerland||182,410,728||11|
|Solera Holdings Inc.||B-||Negative||Software||U.S.||180,755,936||12|
|International Park Holdings B.V.||B-||Watch Neg||Hotels, restaurants, and leisure||Spain||168,900,777||13|
|Swissport Financing S.A R.L.||CCC||Watch Neg||Capital markets||Luxembourg||161,230,383||14|
|Perstorp Holding AB (Publ)||B-||Negative||Chemicals||Sweden||155,108,623||15|
|Breitling Financing S.A R.L.||B-||Stable||Textiles, apparel, and luxury goods||Switzerland||154,563,638||16|
|Antigua Bidco Ltd.||B-||Stable||Pharmaceuticals||U.K.||149,651,957||17|
|Kloeckner Pentaplast Of America Inc.||B-||Negative||Containers and packaging||U.S.||149,614,722||18|
|Hurtigruten Group AS||CCC+||Negative||Marine||Norway||144,591,631||19|
|Keter Group B.V.||CCC+||Stable||Household durables||Netherlands||133,742,837||20|
|Lernen Bidco Ltd.||B-||Stable||Diversified consumer services||U.K.||129,930,199||21|
|Cassini SAS||B-||Watch Neg||Media||France||120,589,582||23|
|Promotora De Informaciones S.A.||B-||Watch Neg||Media||Spain||116,005,733||24|
|Diebold Nixdorf Inc.||B-||Negative||Technology hardware, storage, and peripherals||U.S.||111,857,674||25|
|Awaze Ltd.||B-||Negative||Hotels, restaurants, and leisure||U.K.||111,236,704||26|
|Gamma Infrastructure III B.V.||B-||Stable||Diversified telecommunication services||Netherlands||109,163,946||27|
|Vue International Bidco PLC||B-||Negative||Entertainment||U.K.||108,429,180||28|
|Aenova Holding GmbH||B-||Stable||Pharmaceuticals||Germany||105,460,000||29|
|L1R Hb Finance Ltd.||CCC+||Stable||Specialty retail||U.K.||104,315,141||31|
|Dexko Global Inc.||B-||Negative||Auto components||U.S.||102,937,554||32|
|Saphilux S.A.R.L.||B-||Stable||Capital markets||Luxembourg||95,664,729||33|
|Aruba Investments Inc.||B-||Stable||Chemicals||U.S.||93,999,251||34|
|Excelitas Technologies Corp.||B-||Stable||Electronic equipment, instruments, and components||U.S.||91,241,833||35|
|ASP Unifrax Holdings, Inc.||CCC+||Negative||Trading companies and distributors||U.S.||86,325,403||36|
|GHD Verwaltung Gesundheits Gmbh Deutschland GmbH||B-||Stable||Health care equipment and supplies||Germany||82,548,000||37|
|Haya Real Estate S.A.U.||B-||Negative||Real estate management and development||Spain||80,163,000||38|
|BCPE Max Dutch Bidco B.V.||B-||Stable||Pharmaceuticals||Netherlands||79,412,935||39|
|Deerfield Dakota Holding LLC||B-||Stable||Professional services||U.S.||76,979,582||40|
|Everest Bidco SAS||B-||Stable||Electronic equipment, instruments, and components||France||74,905,565||41|
|Faerch Bidco ApS||B-||Stable||Containers and packaging||Denmark||73,481,180||42|
|Capri Acquisitions Bidco Ltd.||B-||Stable||Professional services||U.K.||62,882,956||44|
|Getty Images Inc.||B-||Watch Neg||Interactive media and services||U.S.||62,790,220||45|
|Promontoria Holding 264 B.V.||B-||Negative||Air freight and logistics||Netherlands||54,229,000||47|
|Chg PPC Parent LLC||B-||Negative||Food products||U.S.||53,670,330||48|
|Vincent Bidco Bv (Nl)||B-||Stable||Commercial services and supplies||Netherlands||52,605,000||49|
|Flint Holdco S.A R.L.||CCC+||Negative||Commercial services and supplies||Luxembourg||47,870,721||50|
|Rodenstock GmbH||B-||Stable||Health care equipment and supplies||Germany||47,848,475||51|
|Trident TPI Holdings, Inc.||B-||Negative||Containers and packaging||U.S.||39,839,269||52|
|Foodco Bondco SAU||CCC-||Negative||Hotels, restaurants, and leisure||Spain||38,303,000||53|
|Mediarena Acquisition B.V.||CCC+||Watch Pos||Entertainment||Netherlands||31,877,169||54|
|Burger King France SAS||B-||Watch Neg||Hotels, restaurants, and leisure||France||31,004,000||55|
|Advanz Pharma Corp||B-||Stable||Pharmaceuticals||Canada||30,322,169||56|
|Selecta Group B.V.||B-||Negative||Internet and catalog retail||Netherlands||29,250,000||57|
|Phm Netherlands Midco B.V.||B-||Stable||Chemicals||Netherlands||28,240,000||58|
|Naviera Armas, S.A.||B-||Negative||Marine||Spain||28,227,000||59|
|Catluxe Sarl||CCC+||Negative||Textiles, apparel, and luxury goods||Luxembourg||26,500,000||60|
|Grupo Antolin Irausa SA||B-||Negative||Auto components||Spain||24,870,000||61|
|Mangrove Luxco Iii Sarl||B-||Stable||Machinery||Luxembourg||24,714,870||62|
|Lima Corporate S.P.A.||B-||Stable||Health care equipment and supplies||Italy||24,360,000||63|
|Carlson Travel Inc.||CCC||Negative||Hotels, restaurants, and leisure||U.S.||23,441,000||64|
|Monitchem Holdco 2 S.A.||B-||Stable||Chemicals||Luxembourg||23,300,000||65|
|Veritas Bermuda Ltd.||B-||Negative||Software||Bermuda||19,887,000||66|
|Comet Bidco Ltd.||B-||Watch Neg||Media||U.K.||14,579,360||68|
|Diaverum Holding Sarl||B-||Stable||Health care providers and services||Luxembourg||13,000,000||69|
|Marcolin SpA||B-||Negative||Health care equipment and supplies||Italy||12,821,000||70|
|Citgo Petroleum Corp.||B-||Stable||Oil, gas, and consumable fuels||U.S.||8,576,394||72|
|Mulhacen Pte. Ltd.||B-||Negative||Banks||Singapore||8,450,000||73|
|Pro.Gest SpA||CCC+||Negative||Containers and packaging||Italy||8,200,000||74|
|Advantage Sales & Marketing Inc.||CCC+||Watch Dev||Media||U.S.||8,180,321||75|
|Werner FinCo LP||B-||Negative||Commercial services and supplies||U.S.||8,024,146||76|
|Brand Industrial Services, Inc.||B-||Negative||Construction and engineering||U.S.||7,058,383||77|
|U.S. Renal Care Inc.||B-||Stable||Health care providers and services||U.S.||6,873,768||78|
|Holley Purchaser, Inc.||B-||Negative||Auto components||U.S.||6,828,451||79|
|Air Methods Corporation||B-||Stable||Health care providers and services||U.S.||6,626,099||80|
|Envision Healthcare Corp.||CCC||Negative||Health care providers and services||U.S.||6,368,891||81|
|Sgl Carbon SE||CCC+||Stable||Electrical equipment||Germany||5,810,000||82|
|Mohegan Tribal Gaming Authority||CCC+||Negative||Hotels, restaurants, and leisure||U.S.||5,404,369||83|
|Stonegate Pub Co. Ltd.||CCC+||Negative||Hotels, restaurants, and leisure||U.K.||5,002,200||84|
|Titlemax Finance Corp||B-||Stable||Consumer finance||U.S.||4,598,571||85|
|Team Health Holdings, Inc.||B-||Negative||Health care providers and services||U.S.||4,205,412||86|
|Option Care Health Inc.||B-||Stable||Health care providers and services||U.S.||4,135,984||87|
|Downstream Development Authority||CCC||Negative||Hotels, restaurants, and leisure||U.S.||3,696,711||88|
|Nordex SE||B-||Stable||Electrical equipment||Germany||3,600,000||89|
|Jazz Acquisition Inc.||B-||Negative||Aerospace and defense||U.S.||3,482,741||90|
|Groupe Ecore Holding||CCC+||Stable||Commercial services and supplies||France||3,200,000||91|
|First American Payment Systems LP||B-||Negative||It services||U.S.||2,759,143||92|
|Qualtek Usa, LLC||B-||Negative||Construction and engineering||U.S.||2,723,769||93|
|Shearer'S Foods, Inc.||B-||Positive||Food products||U.S.||2,708,024||94|
|Schoeller Packaging B.V.||B-||Negative||Containers and packaging||Netherlands||2,500,000||95|
|Transportes Aereos Portugueses, S.A.||B-||Watch Neg||Airlines||Portugal||2,500,000||96|
|Minotaur Acquisition, Inc.||B-||Stable||Capital markets||U.S.||2,409,929||97|
|Zephyr Midco 2 Ltd.||B-||Stable||Interactive media and services||U.K.||2,270,700||98|
|Raffinerie Heide GmbH||B-||Stable||Oil, gas and consumable fuels||Germany||2,250,000||99|
|Kirk Beauty One GmbH||CCC+||Negative||Specialty retail||Germany||1,943,000||100|
|Lago Resort & Casino||CCC||Negative||Hotels, restaurants and leisure||U.S.||1,810,595||101|
|Southern Graphics Inc.||CCC+||Negative||Commercial services and supplies||U.S.||1,688,000||102|
|Pinnacle Bidco Plc||B-||Watch Neg||Hotels, restaurants, and leisure||U.K.||1,632,940||103|
|Pluto Acquisition I, Inc.||B-||Positive||Health care providers and services||U.S.||1,385,658||104|
|Safety Products/Jhc Acquisition Corp.||B-||Negative||Metals and mining||U.S.||1,367,033||105|
|Forming Machining Industries Holdings, LLC||B-||Negative||Aerospace and defense||U.S.||1,361,283||106|
|Wireco Worldgroup Inc.||B-||Negative||Metals and mining||U.S.||1,331,754||107|
|Dynasty Acquisition Co., Inc.||B-||Negative||Aerospace and defense||U.S.||957,704||108|
|Airxcel Inc.||B-||Watch Neg||Machinery||U.S.||868,453||109|
|Lsf9 Balta Issuer S.A.||B-||Negative||Household durables||Belgium||810,000||110|
|Belk, Inc.||CCC||Negative||Multiline retail||U.S.||705,584||111|
|Distribuidora Internacional De Alimentacion S.A.||CCC||Negative||Food and staples retailing||Spain||700,000||112|
|Na Rail Hold Co LLC||B-||Stable||Road and rail||U.S.||458,800||113|
|Viskase Companies Inc.||CCC||Negative||Containers and packaging||U.S.||370,339||114|
- The European Speculative-Grade Corporate Default Rate Could Reach 8.5% By March 2021, June 8, 2020
- The U.S. Speculative-Grade Corporate Default Rate Is Likely To Reach 12.5% By March 2021, May 28, 2020
- The European Crisis Backstop Is Underpinning Corporate Funding Conditions, May 19, 2020
- How COVID-19 Changed The European CLO Market In 60 Days, May 6, 2020
- Ratings On 18 Classes From 14 European CLOs Placed On Watch Negative, April 27, 2020
- Credit Conditions In Europe Darken As Costs Of Lockdowns Add Up, April 27, 2020
- Redesigning The CLO Blueprint After COVID-19, April 21, 2020
- Europe Braces For A Deeper Recession In 2020, April 20, 2020
- First-Quarter 2020 CDO Monitor Benchmarks Reveal Relative Credit Quality And Diversity Of CLO Portfolios, April 10, 2020
- S&P Global Ratings May Add Additional Qualitative Factors When Rating CLO Tranches Due To Changing Credit Dynamics, April 9, 2020
- How Credit Distress Due To COVID-19 Could Affect European CLO Ratings, April 2, 2020
- European CLOs: Assessing The Credit Effects Of COVID-19, March 25, 2020
- CLO Spotlight: Fourth-Quarter 2019 CDO Monitor Benchmarks Reveal Relative Credit Quality And Diversity Of CLO Portfolios, Jan. 24, 2020
- Credit FAQ: Understanding S&P Global Ratings' Updated CLO And Corporate CDO Criteria, June 26, 2019
- S&P Global Ratings' Updated Assumptions For CDO Monitor Non-Model Version, June 21, 2019
- 2018 Annual Global Leveraged Loan CLO Default And Rating Transition Study, June 19, 2019
- Glossary Of Cash Flow CLO Performance Index Fields, Jan. 30, 2009
The author would also like to thank Ian Chandler, Harshala Koyande, and Rohit Vishwakarma for their help with this report.
This report does not constitute a rating action.
|Primary Credit Analyst:||Rebecca Mun, London (44) 20-7176-3613;|
|Secondary Contacts:||Shane Ryan, London + 44 20 7176 3461;|
|Emanuele Tamburrano, London (44) 20-7176-3825;|
|Research Contributor:||Shubham Verma, CRISIL Global Analytical Center, an S&P Global Ratings affiliate, Mumbai|
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