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Mobico (MCGLN; Baa3 on review for downgrade/NR/BBB-) 1H results (to June)

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We are still working through numbers but a correction from above; we said we had flagged €31s looking rich on XCCY in past - that was wrong we've flagged £28s looking rich before. Curve steepness looks fair here.

Also an aside; the legacy issued (in 2019) £28s have +125bp step up on a single agency moving to HY ratings, the new €31s don't. Initial look at numbers point to Moody's continuing to wait for asset sales before stabilising ratings (i.e. standalone numbers are recovering) so there may be less need to price that in now.

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