/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/250417.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, April 17, 2025, Vol. 26, No. 77 Headlines G E O R G I A BASISBANK JSC: Fitch Affirms 'B+' Long-Term IDR, Outlook Stable I R E L A N D AQUEDUCT EUROPEAN 13: Fitch Assigns 'B-sf' Final Rating to F Notes CUMULUS 2024-1: Fitch Affirms 'BB-sf' Rating, Alters Outlook to Neg LANSDOWNE NO.1: Fitch Lowers Rating on Class M1 Note to 'B-sf' MARGAY CLO III: Fitch Assigns 'B-sf' Final Rating to Class F Notes SOUND POINT 14: Fitch Assigns 'B-sf' Final Rating to Class F Notes I T A L Y KEPLER S.P.A: Fitch Affirms 'B' Long-Term IDR, Outlook Stable L U X E M B O U R G EP PACO SA: Moody's Affirms 'B1' CFR, Outlook Remains Stable S P A I N CODERE GROUP: Moody's Assigns 'Caa3' CFR, Outlook Negative U N I T E D K I N G D O M AEC INDEPENDENT: FTS Recovery Named as Joint Administrators BROWN BIDCO: Moody's Affirms 'B2' CFR, Outlook Stable GREEEN+ LIMITED: Begbies Traynor Named as Administrators HUMANISING AUTONOMY: Butcher Woods Named as Administrators MARSTON'S ISSUER: Fitch Affirms 'BB+' Rating on Three Tranches RODELLS LIMITED: FRP Advisory Named as Joint Administrators UK LOGISTICS 2025-1: Moody's Assigns B3 Rating to GBP16MM F Notes - - - - - ============= G E O R G I A ============= BASISBANK JSC: Fitch Affirms 'B+' Long-Term IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed JSC Basisbank's (Basis) Long-Term Issuer Default Rating (IDR) at 'B+' with a Stable Outlook and Viability Rating (VR) at 'b+'. Key Rating Drivers Basis's Long-Term IDR is driven by the bank's standalone profile, as captured by its 'b+' VR, which reflects its fairly small franchise in a highly concentrated banking sector, healthy capitalisation and highly dollarised balance sheet, which is a sector wide feature. The Stable Outlook on Basis's IDR reflects its view that the bank is well positioned at its current rating to withstand increased political risks following the disputed parliamentary elections, as captured by the Negative Outlook on Georgia's sovereign IDRs. Accordingly, Fitch does not expect to downgrade the bank in case of a sovereign downgrade, due to the bank's stable credit metrics and lower ratings than the sovereign's. Banks Resilient to Political Unrest: Increased political tensions in Georgia, marked by large protests since 2024, have not materially affected customer confidence or the performance of the banking system to date. Banks could be vulnerable in a stress scenario if the political crisis becomes protracted and undermines investor confidence, exerting pressure on the country's external liquidity and the exchange rate. This is given high dollarisation (43% of sector loans at end-2024), and considerable reliance on external borrowings (15%-20% of sector liabilities). Moderate Market Position: Basis is the fourth-largest bank in the sector, with a moderate 4.2% share of sector assets at end-2024. It has a universal franchise. The non-retail portfolio, including corporates and SMEs, made up 70% of total loans at end-2024, while granular retail loans comprised the remainder, providing diversification. High Dollarisation: Lending dollarisation (50% of loans at end-2024) remains the key vulnerability to asset quality. Foreign-currency (FC) loans in retail are particularly high risk, especially as some have floating interest rates. At end-2024, the bank's FC mortgage loans made up a sizeable 24% of equity. A slight increase in FC deposits by end-2024, given political uncertainty, did not result in an increase in FC loans, due to recent prudential measures. Moderate Impaired Loans, Cyclical Sectors: Stage 3 (3.3%) and Stage 2 (3.7%) loan ratios slightly reduced at end-2024, supported by the strong economy. However, asset quality risks may stem from the bank's large exposure to cyclical sectors, including construction (11% of gross loans at end-2024), hospitality (9%) and real estate (7%), the breakdown of which fundamentally reflects the domestic economy. Reasonable Profitability: Operating profit was an adequate 2.7% of risk-weighted assets (RWAs) in 2023-2024, supported by high interest rates and strong economic development. Fitch expects operating profitability to remain stable in 2025. Healthy Capitalisation: The bank's common equity Tier 1 (CET1) capital ratio increased to a good 15.5% at end-2024 (end-2023: 15.1%), underpinned by a common equity injection in 1Q24 equal to 0.7% of RWAs. Fitch expects continuing reasonable profit generation, low double-digit loan growth, and high regulatory minimum requirements to prop up the bank's healthy capital adequacy levels. Stable Liquidity Despite Political Risks: Basis's deposit balances and liquidity cushions at end-2024 were generally flat relative to the pre-election period at end-3Q24. Liquid assets made up a moderate 17% of total assets at end-2024 (end-2023: 16%), according to the National Bank of Georgia Pillar 3 report. The loans-to-deposits ratio (end-2024: 118%) was above the market average (105%). Liquidity is supported by reasonably stable, albeit concentrated, customer deposits and the expected rollover of wholesale debt, thanks to uninterrupted access to international funding. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The ratings could be downgraded if the bank's capitalisation materially weakens due to significant asset-quality deterioration triggering loss-making performance for several consecutive quarterly reporting periods, for example, due to a large local-currency devaluation. A depletion of the liquidity buffer, in case of a sharp deterioration of customer and investor confidence, could also lead to a downgrade. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Any positive rating action on Basis would primarily require a revision of the Outlook on Georgia's sovereign rating to Stable and an improvement in the operating environment for domestic banks. This should be coupled with strengthening of the bank's liquidity position and maintenance of healthy performance and solvency metrics. An improvement in risk profile and a reduction in asset-quality risks, due to a material decrease in loan book dollarisation and concentration, for example, would also be credit positive. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS The Government Support Rating (GSR) of 'no support' reflects Fitch's view that resolution legislation in Georgia, combined with constraints on the ability of the authorities to provide support - especially in FC - means that government support, although possible, cannot be relied upon. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES There is limited positive rating potential for the GSR, and this would require a substantial improvement of sovereign financial flexibility, as well as an extended record of timely and sufficient capital support being provided to local banks. VR ADJUSTMENTS The asset quality score of 'b+' is below the implied category score of 'bb' due to the following adjustment reason: concentrations (negative). The funding and liquidity score of 'b+' is below the implied category score of 'bb' due to the following adjustment reason: liquidity coverage (negative). ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- JSC Basisbank LT IDR B+ Affirmed B+ ST IDR B Affirmed B Viability b+ Affirmed b+ Government Support ns Affirmed ns ============= I R E L A N D ============= AQUEDUCT EUROPEAN 13: Fitch Assigns 'B-sf' Final Rating to F Notes ------------------------------------------------------------------ Fitch Ratings has assigned Aqueduct European CLO 13 DAC reset notes final ratings, as detailed below. Entity/Debt Rating ----------- ------ Aqueduct European CLO 13 DAC A XS3029331033 LT AAAsf New Rating B XS3029331389 LT AAsf New Rating C XS3029331546 LT Asf New Rating D XS3029332353 LT BBB-sf New Rating E XS3029332783 LT BB-sf New Rating F XS3029332940 LT B-sf New Rating Subordinated Notes XS1628804467 LT NRsf New Rating Z-1 XS2442780271 LT NRsf New Rating Z-2 XS2442780438 LT NRsf New Rating Z-3 XS2442780602 LT NRsf New Rating Transaction Summary Aqueduct European CLO 13 DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds were used to purchase a portfolio with a target par of EUR400 million. The portfolio is actively managed by HPS Investment Partners CLO (UK) LLP. The collateralised loan obligation (CLO) has a 4.5-year reinvestment period and an 8.5-year weighted average life test (WAL). KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'/'B-'. The Fitch-calculated weighted average rating factor (WARF) of the identified portfolio is 25.4. High Recovery Expectations (Positive): At least 90% of the portfolio comprise senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate (WARR) of the identified portfolio is 62.1. Diversified Portfolio (Positive): The transaction has four matrices: two are effective at closing with fixed-rate limits of 12.5% and 5%, and two one-year post-closing with the same fixed-rate limits. The closing matrices correspond to an 8.5-year WAL test while the forward matrices correspond to a 7.5-year WAL test. The forward matrices could be elected one year after closing if the collateral principal amount (default at Fitch collateral value) is at least at the reinvestment target par balance. The transaction also includes various concentration limits, including a maximum of 40% to the three-largest Fitch-defined industries. All matrices are based on a top 10 obligor concentration at 20%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has an approximately 4.5-year reinvestment period and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL for the transaction's Fitch-stressed portfolio analysis is 12 months less than the WAL covenant. This is to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period. These conditions include passing the coverage tests and the Fitch 'CCC' bucket limitation test after reinvestment, as well as a WAL covenant that gradually steps down, before and after the end of the reinvestment period. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would lead to downgrades of no more than one notch for the class B, C,D and E notes and have no impact on the rest. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of default and portfolio deterioration. Due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio, the class, B, C, D and E notes each have a rating cushion of two notches, and the class F notes have a rating cushion of three notches. The class A notes have no rating cushion they are already at the highest achievable rating. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to four notches for class A to D and to below 'B-sf' for class E and F. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to five notches each, except for the 'AAAsf' notes. During the reinvestment period, upgrades, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the transaction's remaining life. After the end of the reinvestment period, upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other nationally recognised statistical rating organisations and/or European securities and markets authority-registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Aqueduct European CLO 13 DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. CUMULUS 2024-1: Fitch Affirms 'BB-sf' Rating, Alters Outlook to Neg ------------------------------------------------------------------- Fitch Ratings has revised Cumulus Static CLO 2024-1 DAC class F notes Outlook to Negative from Stable and affirmed all notes. Entity/Debt Rating Prior ----------- ------ ----- Cumulus Static CLO 2024-1 DAC A XS2797356842 LT AAAsf Affirmed AAAsf B XS2797421505 LT AAsf Affirmed AAsf C XS2797421927 LT Asf Affirmed Asf D XS2797422149 LT BBBsf Affirmed BBBsf E XS2797422495 LT BBsf Affirmed BBsf F XS2797422578 LT BB-sf Affirmed BB-sf Transaction Summary Cumulus Static CLO 2024-1 DAC is an arbitrage cash flow collateralised loan obligation (CLO). Net proceeds from the notes issue were used to purchase a static pool of primarily secured senior loans and bonds, with a target par of EUR400 million. KEY RATING DRIVERS Credit Deterioration Reduces Cushions: The class F notes have a limited default-rate buffer to support the current rating due to the portfolio's credit quality deterioration. The Fitch-weighted average rating factor (WARF) of the identified portfolio has increased to 25.2, from 24.5 since closing in May 2024, and the current average credit quality of obligors is at 'B'/'B-'. Fitch does not expect major improvement in the default-rate cushion, as the transaction currently has 11.1% of the underlying obligors on Negative Outlook, signaling potential continued decline in credit quality. Further deterioration in the default-rate buffer would lead to a downgrade. High Recovery Expectations: Senior secured obligations and first-lien loans represent 99.6% of the portfolio. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-weighted average recovery rate (WARR) of the identified portfolio is 62.7%. Diversified Portfolio Composition: The three largest industries comprise 33.2% of the portfolio balance, the top 10 obligors represent 15.7% of the portfolio balance and the largest obligor represents 1.9% of the portfolio. Static Portfolio: The transaction does not have a reinvestment period and discretionary sales are not permitted. Fitch's analysis is based on the identified portfolio, which it stressed by applying a one-notch downgrade to all obligors with a Negative Outlook (floored at CCC-). Following its adjustment on Negative Outlook, the WARF of the portfolio was 26. Deviation from Model-Implied Rating (MIR): The class B to E notes are rated one notch below their model-implied ratings (MIR) due to insufficient break-even default-rate cushion within the Fitch-stressed portfolio at their MIRs, due to uncertain macro-economic conditions that may increase default risk. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Based on the identified portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of default and portfolio deterioration. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other nationally recognised statistical rating organisations and/or European securities and markets authority-registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Cumulus Static CLO 2024-1 DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. LANSDOWNE NO.1: Fitch Lowers Rating on Class M1 Note to 'B-sf' -------------------------------------------------------------- Fitch Ratings has downgraded Lansdowne Mortgage Securities No. 1 Plc's (LMS1) class M1 note and has affirmed the other notes' ratings. Fitch has also affirmed Lansdowne Mortgage Securities No. 2 Plc's (LMS2) notes. Fitch has removed all notes from Under Criteria Observation. The rating actions follow the implementation of the revised Fitch's European RMBS Rating Criteria and reflect performance trends. Entity/Debt Rating Prior ----------- ------ ----- Lansdowne Mortgage Securities No. 2 Plc Class A2 XS0277482286 LT Bsf Affirmed Bsf Class B XS0277483417 LT CCsf Affirmed CCsf Class M1 XS0277482526 LT B-sf Affirmed B-sf Class M2 XS0277482955 LT CCsf Affirmed CCsf Lansdowne Mortgage Securities No. 1 Plc Class A2 XS0250832614 LT B+sf Affirmed B+sf Class B1 XS0250834404 LT CCsf Affirmed CCsf Class B2 XS0250835120 LT CCsf Affirmed CCsf Class M1 XS0250833695 LT B-sf Downgrade Bsf Class M2 XS0250834073 LT CCsf Affirmed CCsf Transaction Summary The transactions are securitisations of Irish non-conforming residential mortgage loans originated by Start Mortgages Ltd and serviced by Mars Capital Finance Ireland DAC. KEY RATING DRIVERS European RMBS Rating Criteria Updated: The rating actions take into account the update of Fitch's European RMBS Rating Criteria on 30 October 2024. The updated criteria adopted a non-indexed current loan-to-value (LTV) approach to derive the base foreclosure frequency (FF) on portfolios, instead of the original LTV approach applied previously. Fitch has also revised down its loan-level recovery rate cap to 85% from 100%. Fitch has applied a 2.5x transaction adjustment (TA) to the transactions' FF. The 2.5x TA accounts for the difference between FF performance in the portfolio compared with the criteria-derived, transaction-specific weighted average (WA) FF, resulting in an increase in Lansdowne's WAFF. High Arrears, Delayed Foreclosure: In LMS1, 29.5% of the portfolio is in arrears over 90 days, while in LMS2 the figure was 30.1% as of the December 2024 payment date, after 29.6% and 28.2%, respectively, at the beginning of that year. Most borrowers in arrears have been subject to restructuring measures, including margin reductions and term extension. Margin reductions have reduced the WA margin of the portfolio since the last review; term extensions have led to an increase of the portfolio share maturing beyond the final legal maturity of the notes. The transaction therefore has some undercollateralisation. The provisioning mechanism is defined on losses rather than defaults. As foreclosure timing in Ireland is often long and restructurings continue to increase, crystallisation of losses and subsequent provisioning in the revenue waterfall is being delayed. This leads to the transactions having high sensitivity to longer foreclosure timing and is particularly relevant for the ratings of LMS1 and LMS2. Zero Excess Spread Leads to Reserve Drawings: The significant portion of restructured loans, coupled with high arrears, has resulted in a decreased WA margin for the portfolios, reducing the excess spread to zero. At December 2024, the reserves had been further depleted since the review at the start of the year and were about 50% of their target. In its stressed rating scenarios Fitch expects the reserves to be further drawn if arrears remain at current levels or continue to increase. Payment Interruption Risk Constrains Ratings: The transactions' reserve funds may be drawn to cover losses. If the high arrears translate into foreclosures and then losses within a short period, reserves could be depleted rapidly. Therefore, in Fitch's view, payment interruption risk is not adequately addressed and the non-dedicated nature of the reserve limits upgrades of the notes, driving its affirmations. Fitch expects some of the subordinated notes in both transactions to experience interest deferral in an expected case scenario. Fitch considers this is adequately reflected in the notes' 'CCsf' ratings. Lansdowne Mortgage Securities No.1 and No.2 Plc have ESG Relevance Scores of 5 for Governance (Rule of Law, Institutional and Regulatory Quality) due to exposure to jurisdictional legal risks; regulatory effectiveness; supervisory oversight; foreclosure laws; government support and intervention, which has a negative impact on the credit profile, and is highly relevant to the rating, resulting in a change to the rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Most loans in the portfolios have been subject to restructuring rather than being foreclosed. An increasing number of defaulted loans and lower recovery proceeds combined with longer foreclosure timing may result in downgrades. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade If the transactions continue to make timely payments while withstanding negative carry and losses from delinquencies and foreclosures, leading to a decrease in late-stage arrears, Fitch may revise its foreclosure frequency assumptions down. This could result in upgrades. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Lansdowne Mortgage Securities No. 1 Plc, Lansdowne Mortgage Securities No. 2 Plc Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pools and the transactions. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Fitch did not undertake a review of the information provided about the underlying asset pool[s] ahead of the transactions' initial closing. The subsequent performance of the transaction[s] over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Lansdowne Mortgage Securities No. 1 Plc and Lansdowne Mortgage Securities No. 2 Plc has an ESG Relevance Score of '5' for Rule of Law, Institutional and Regulatory Quality due to exposure to jurisdictional legal risks; regulatory effectiveness; supervisory oversight; foreclosure laws; government support and intervention, which has a negative impact on the credit profile, and is highly relevant to the rating, resulting in a change to the rating. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. MARGAY CLO III: Fitch Assigns 'B-sf' Final Rating to Class F Notes ------------------------------------------------------------------ Fitch Ratings has assigned Margay CLO III DAC final ratings, as detailed below. Entity/Debt Rating ----------- ------ Margay CLO III DAC Class A Loan LT AAAsf New Rating Class A Note XS3009533871 LT AAAsf New Rating Class B XS3009534176 LT AAsf New Rating Class C XS3009534259 LT Asf New Rating Class D XS3009534416 LT BBB-sf New Rating Class E XS3009534689 LT BB-sf New Rating Class F XS3009534929 LT B-sf New Rating Class X XS3009533798 LT AAAsf New Rating Subordinated Notes XS3009535140 LT NRsf New Rating Transaction Summary Margay CLO III DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds have been used to purchase a portfolio with a target par of EUR400 million. The portfolio will be actively managed by M&G Investment Management Limited. The CLO has a reinvestment period of five years and a nine-year weighted average life (WAL) test. There is a four year difference between the stated final maturity date (April 2038) and the WAL date. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch places the average credit quality of obligors at 'B'. The Fitch weighted average rating factor (WARF) of the identified portfolio is 23.8. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate of the identified portfolio is 60.6%. Diversified Portfolio (Positive): The transaction includes four Fitch matrices. Two are effective at closing and corresponding to a top 10 obligor concentration limit at 20% chosen by the manager per the Fitch test matrix, fixed-rate asset limits at 5% and 12.5% and a nine- year WAL test. Two can be selected by the manager at any time from one year after closing as long as the aggregate collateral balance (including defaulted obligations at their Fitch-calculated collateral value) is at least at the target par and corresponding to the same limits as the closing matrices, but with an eight-year WAL test. The transaction also includes various concentration limits, including the maximum exposure to the three-largest Fitch-defined industries in the portfolio at 40%. These covenants ensure that the portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has a five-year reinvestment period and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL used for the transaction's stressed portfolio analysis was 12 months less than the WAL test covenant to account for the strict reinvestment conditions envisaged after the reinvestment period. These include passing the coverage tests, Fitch WARF and Fitch 'CCC' bucket limitation, together with a gradually decreasing WAL covenant. In Fitch's opinion, these conditions reduce the effective risk horizon of the portfolio during stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) across all ratings and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would result in downgrades of one notch for the class B through E notes, and to below 'B-sf' for the class F notes. Based on the actual portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of default and portfolio deterioration. Due to the better metrics and shorter life of the identified portfolio the class B, D E and F notes show rating cushions of two notches and the class C notes of one notch. The class X and A notes display no rating cushion as they are already at their maximum achievable rating. Should the cushion between the identified portfolio and the stress portfolio be eroded either due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR across all ratings and a 25% decrease of the RRR across all ratings of the stressed portfolio would lead to downgrades of up to four notches for the class B and C notes, up to three notches for the class A, D and E notes, and to below 'B-sf' for the class F notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the RDR across all ratings and a 25% increase in the RRR across all ratings of Fitch's stress portfolio would lead to upgrades of up to four notches for the notes, except for the 'AAAsf' rated notes, which are at the highest level on Fitch's scale and cannot be upgraded. During the reinvestment period, based on Fitch's stress portfolio, upgrades may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, leading to the ability of the notes to withstand larger than expected losses for the remaining life of the transaction. After the end of the reinvestment period, upgrades may occur in case of stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover for losses on the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY The majority of the underlying assets or risk presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Margay CLO III DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. SOUND POINT 14: Fitch Assigns 'B-sf' Final Rating to Class F Notes ------------------------------------------------------------------ Fitch Ratings has assigned Sound Point Euro CLO 14 Funding DAC final ratings, as detailed below. Entity/Debt Rating ----------- ------ Sound Point Euro CLO 14 Funding DAC A Loan LT AAAsf New Rating A XS2997433144 LT AAAsf New Rating B Loan LT AAsf New Rating B XS2997433227 LT AAsf New Rating C XS2997434548 LT Asf New Rating D XS2997434621 LT BBB-sf New Rating E XS2997434894 LT BB-sf New Rating F XS2997435438 LT B-sf New Rating Subordinated Notes XS2997435784 LT NRsf New Rating Transaction Summary Sound Point Euro CLO 14 Funding DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds have been used to fund a portfolio with a target par of EUR500 million that is actively managed by Sound Point CLO C-MOA, LLC. The collateralised loan obligation (CLO) has a five-year reinvestment period and an eight-year weighted average life test (WAL) at closing, which can be extended by one year if the WAL test step-up condition is met one year after the closing or afterwards. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'/'B-'. The Fitch weighted average rating factor of the identified portfolio is 25. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate of the identified portfolio is 62.4%. Diversified Portfolio (Positive): The transaction includes six Fitch matrices. Two are effective at closing, corresponding to an eight-year WAL and another two are effective at closing, corresponding to a nine-year WAL. Each of these two WAL is accompanied by two fixed-rate asset limits of 7.5% and 12.5%. Another two matrices are effective two years after closing, corresponding to a seven-year WAL, with fixed-rate asset limits of 12.5% and a target par condition at reinvestment target par balance and EUR497.5 million, respectively. All matrices are based on a top-10 obligor concentration limit at 20%. The transaction has a maximum exposure to the three-largest Fitch-defined industries in the portfolio at 40%, among others. These covenants ensure the asset portfolio will not be exposed to excessive concentration. WAL Step-Up Feature (Neutral): The transaction can extend the WAL by one year on or after the step-up date, which is one year after closing. The WAL extension is subject to the satisfaction of collateral quality tests and target par condition (with defaulted assets being treated at collateral value) unless the manager has switched to the nine-year WAL matrix, in which case no further conditions apply and the WAL extension is at the manager's discretion only. Portfolio Management (Neutral): The transaction has a reinvestment period of five years and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Neutral): The WAL used for the transaction's Fitch-stressed portfolio and matrices analysis is 12 months less than the WAL covenant at the issue date, to account for structural and reinvestment conditions post-reinvestment period, including passing the coverage tests and Fitch 'CCC' limit. This ultimately reduces the maximum possible risk horizon of the portfolio when combined with loan pre-payment expectations. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no impact on the class A, E and F notes, and would lead to downgrades of no more than one notch each for the class B, C and D notes. Downgrades, which are based on the identified portfolio, may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of default and portfolio deterioration. Owing to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio, the class B, C, D and E notes each display a rating cushion of two notches and the class F notes have a cushion of five notches. The class A notes have no rating cushion. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded either due to manager trading or negative portfolio credit migration, a 25% increase in the mean RDR, and a 25% decrease in the RRR across all the ratings of the Fitch-stressed portfolio would lead to downgrades of up to four notches each for the class A to E notes and to below 'B-sf' for the class F notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction in the mean RDR and a 25% increase in the RRR across all the ratings of the Fitch-stressed portfolio would lead to an upgrades of up to five notches each for the rated notes, except for the 'AAAsf' rated notes. During the reinvestment period, upgrades, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the remaining life of the transaction. After the end of the reinvestment period, upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other nationally recognised statistical rating organisations and/or European securities and markets authority-registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Sound Point Euro CLO 14 Funding DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. ========= I T A L Y ========= KEPLER S.P.A: Fitch Affirms 'B' Long-Term IDR, Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed Kepler S.p.A.'s (Biofarma) Long-Term Issuer Default Rating (IDR) at 'B' with a Stable Outlook. Concurrently, Fitch has also affirmed its senior secured instrument rating at 'B+' with a Recovery Rating of 'RR3'. Biofarma's ratings are constrained by the company's modest size, high leverage and narrow business focus. Rating strengths are its established market position as a contract development and manufacturing organisation (CDMO) in nutraceuticals (non-pharmaceutical enhancers), with a leading global position in the attractive probiotics niche segment and a well-invested manufacturing platform. The Stable Outlook reflects Fitch's expectation that Biofarma will benefit from structural and profitable growth in its specialist markets, leading to a moderately reducing leverage profile over its rating horizon to 2027. Key Rating Drivers Specialist Niche CDMO: The ratings reflect Biofarma's established market positions in the structurally growing niche nutraceutical market as an innovative outsourcing partner for consumer health firms and divisions of pharmaceutical companies. Biofarma produces nutraceutical finished dosage-form products for health supplements, skin cosmetics and associated medical device products. Its key area of expertise is probiotics, a growing market in which it holds a meaningful share in the EU and the US, representing around a third of the company's sales. Its global position in nutraceuticals and probiotics was strengthened in 2023, following its EU370 million acquisition of US Pharma Labs, which improved its scale and geographical diversification. The acquisition allowed the company to enter the large US market and to become a partner of choice for global clients. It also expanded its manufacturing footprint, by adding US and Chinese facilities, and enhanced its Chinese sourcing capabilities to support its manufacturing facilities in northern Italy and France. Limited Scale, Concentrated Business: Biofarma's limited scale and diversification are mitigated by the technological content and long production cycles of its products and high switching costs for its customers, which protects the business and increases revenue visibility. Fitch estimates that 55% of revenues are derived from specialist and differentiated products such as probiotics and the more regulated medical devices products. Fitch views its expertise in R&D product development and its state-of-the-art manufacturing as critical to its success as a partner of choice for its larger customers. Capex to Accelerate Growth: Fitch expects Biofarma's organic growth to exceed the mid-single-digit growth of its underlying markets at 9% over 2025-2027, largely driven by the completion of investments in two new manufacturing facilities in France and the US, which should become operational from 2H25. Resilient Profitability. Fitch views Biofarma's profitability as resilient for a specialist CDMO, reflecting its leadership in differentiated market niches in which it can add value to clients with its specialised product development expertise. In recent years, Biofarma has proven its ability to pass on cost inflation in its specialty business faster than CDMO peers operating in more commoditised markets. Its rating case assumes EBITDA margins will gradually improve towards 23.5% by 2027 from an estimated 20.5% in 2024. This will be driven by positive operating leverage from revenue growth and cost efficiencies from its state-of-the art manufacturing facilities under construction. Expansion Capex Hits FCF: High expansion capex in manufacturing capabilities to support growth (over 11% of sales in 2024) has led to negative free cash flow (FCF) and Fitch expects it to constrain FCF through to 2027. Fitch expects a gradual improvement of FCF, driven by EBITDA expansion, with FCF forecast to improve in 2025 and become mildly positive thereafter. High Leverage to Moderate: Fitch expects Biofarma's gross EBITDA leverage to improve to 6.4x in 2024, which is high but consistent with the rating. Its Stable Outlook assumes a prudent financial policy that allows gradual organic deleveraging to below 5.5x by 2027, as higher revenue growth and margins drive EBITDA expansion. Selective M&A, Moderate Execution Risks: Fitch anticipates the company will pursue modest bolt-on acquisitions focusing on targeted technologies and manufacturing capabilities, while expanding its geographical reach outside Italy. This would lead to manageable execution risks. Its rating case assumes an annual M&A spend between EUR50 million and EUR100 million over 2025-2027. Fitch would treat higher M&A or a less gradual approach to M&A as event risk, particularly if it is financed only by debt rather than a combination of debt and equity. Supportive Market Fundamentals: Biofarma benefits from supportive market fundamentals, with non-cyclical volume growth driven by a growing and ageing population and an increasing focus on health, disease prevention and self-medication. The company is also well placed to capitalise on the growing outsourcing trend of specialist ingredient manufacturing processes in the consumer health market. Peer Analysis Fitch regards capital - and asset-intensive businesses such as F.I.S. Fabbrica Italiana Sintetici S.p.A. (B/Positive), Roar Bidco AB (Recipharm; B/Stable), European Medco Development 3 Sa.r.l. (Axplora; B-/Stable) and Financiere Top Mendel SAS (Ceva Sante; B+/Stable) as direct peers of Biofarma. They all rely on ongoing investments to grow at pace with or above the market and to maintain operating margins. Biofarma's profitability is similar to that of Axplora and Triley Midco 2 Limited (Clinigen Group, B/Stable), and higher than Recipharm and F.I.S. Nevertheless, Biofarma is considerably smaller than all its peers. In Fitch's wider pharmaceutical rated portfolio, generic drug manufacturing companies Nidda BondCo GmbH (Stada; B/Stable) and Teva Pharmaceutical Industries Limited (BB/Positive) are much larger than Biofarma, while asset-light niche pharmaceutical companies outsourcing manufacturing to CDMOs such as CHEPLAPHARM Arzneimittel GmbH (B/Stable) and ADVANZ PHARMA HoldCo Limited (B/Stable), are similar in size but have better profitability and positive FCF margins in the double digits. Key Assumptions - Revenue growth at 26% in 2024, driven by the full consolidation of US Pharma - Organic revenue growth of 8%-9% over 2025-2027, supported by new capex projects in France and the US - Annual acquisitions of EUR50 million-100 million over 2025-2027 contributing to further growth - Fitch-defined EBITDA margin improving gradually to 23.5% in 2027 from 20.6% in 2024 - Working capital inflow of EUR5 million in 2025, followed by outflows of EUR5 million-10 million a year in 2026-2027 - Capex at 11.7% of sales in 2025, then moderating to 9% in 2026 and 7.5% in 2027 - No dividends Recovery Analysis Biofarma's recovery analysis is based on a going-concern (GC) approach, which according to its analysis supports a higher realisable value in financial distress than a balance-sheet liquidation. Financial distress could arise primarily from increased costs or price pressures in a higher-than-expected inflationary environment, or the loss of key contracts from its top customers, which would lead to margin contraction and reduced cash flow generation. From the GC enterprise value (EV) calculation, Fitch estimates a post-restructuring EBITDA of EUR85 million. At this post-restructuring EBITDA, Fitch believes the company will be able to continue generating cash, although it would face high pressure given debt/EBITDA of around 8.0x. The multiple Fitch uses is 5.5x EV/EBITDA, up from 5.0x at its last review, reflecting increased scale and wider geographic diversification after the US Pharma acquisition. After deducting 10% for administrative claims and considering the EUR104 million upsized revolving credit facility as fully drawn and super senior to the notes, its principal waterfall analysis generated a ranked recovery in the 'RR3' category for the floating-rate notes, leading to a 'B+' rating, one notch above the IDR. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Unsuccessful implementation of growth strategy, including an M&A approach that increases financial and execution risks - EBITDA margin at or below 20% on a sustained basis - Weakening cash generation, with FCF margins around break-even on a sustained basis - Fitch-calculated gross debt consistently above 6.5x EBITDA - EBITDA interest coverage below 2.0x on a sustained basis Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Successful implementation of growth strategy, including selective and targeted M&A, leading to increased scale - EBITDA margin at or above 25% on a sustained basis - Continued strong cash generation, with FCF margins in the high single digits on a sustained basis - Fitch-calculated gross debt sustained at or below 4.5x EBITDA - EBITDA interest coverage above 3.0x on a sustained basis Liquidity and Debt Structure Fitch estimates Bioforma had EUR15 million of cash on its balance sheet (excluding EUR5 million of Fitch-defined restricted cash) and EUR84 million available under the upsized revolving credit facility, down from EUR104 million, at end-2024. The company also has a EUR115 million capex facility, which is undrawn. Fitch expects Biofarma to be around breakeven FCF in 2025, before turning slightly positive from 2026. Its rating case assumes new acquisitions will mostly be financed with additional debt. Issuer Profile Biofarma is an Italian CDMO specialising in manufacturing health supplements, medical devices and cosmetics, with a leading position in the development and production of probiotics. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Kepler S.p.A. LT IDR B Affirmed B senior secured LT B+ Affirmed RR3 B+ =================== L U X E M B O U R G =================== EP PACO SA: Moody's Affirms 'B1' CFR, Outlook Remains Stable ------------------------------------------------------------ Moody's Ratings has affirmed the B1 Corporate Family Rating and B1-PD Probability of Default Rating of EP PaCo S.A. ("Euroports"), as well as the B1 ratings of EP BCo SA's EUR515 million senior secured first lien term loan B due June 2029 and the EUR35 million senior secured revolving credit facility due June 2028; and the B3 rating on the EUR73 million senior secured second lien term loan due June 2030. The outlook of EP PaCo S.A. and EP BCo SA remain stable. Following the signing of a debt assumption agreement, all of the debt ratings of EP BCo SA are moved to Euroports FinCo 2 NV (assigned a stable outlook). RATINGS RATIONALE The affirmation of Euroports' ratings with a stable outlook reflects Moody's expectations that the operating and financial performance of the group will remain resilient, such that the funds from operations (FFO)/debt ratio will remain comfortably positioned within the ratio guidance for a B1 rating, i.e. at least 7%. In 2024, Euroports' revenues increased by 11%, reaching EUR1,028 million, and OEBITDA as defined and reported by Euroports grew by 5%, driven primarily by the terminal segment's strong performance, particularly in Belgium, France and Finland. Terminal revenues grew by 1.7% year-over-year, up to EUR486.1 million, while MPL revenues grew by 23.1% year-over-year, up to EUR553 million. For 2025, Moody's estimates OEBITDA to continue to grow as the company is well diversified in terms of commodities and markets served, with limited exposure to the US. Under Moody's central scenario, Moody's estimates that over the next 12-18 months, Moody's adjusted FFO/Debt ratio will be around 8-8.5%. Nevertheless, there remain downside risks, in particular from challenging global macroeconomic and geopolitical conditions that may create risks to global trade growth. Overall, Euroports' B1 CFR continues to reflect (1) the strategic location of Euroports' key terminals with a long average concession life; (2) the high degree of geographical and industry diversification, through strong terminal presence in Europe and in China; (3) a resilient operating profile, supported by an effective cost-saving programme and robust terminal activity over the last years; (4) the contractual ability to pass through inflation on the vast majority of its contracts; and (5) long standing relationships with a well-diversified group of large industrial customers with contractual take-or-pay or volume requirement features, which somewhat offset the volatility of underlying commodities handled. The rating also reflects the following challenges (1) Euroports' exposure to cyclical industries, negative sector trends or adverse weather conditions, notwithstanding contractual arrangements with key customers; (2) high financial leverage, with leverage reduction mainly reliant on EBITDA growth; (3) a share of the logistic business in total EBITDA, which has lower profitability and a weaker business profile than the traditional port operating business; and (4) the absence of interest rate hedging, which leaves the company exposed to interest rates changes. On June 24, 2024, R-LOGITECH, the majority shareholder of Thaumas N.V. (the holding company of Euroports), holding 53.4% of voting shares, announced the sale of a portion of its shares in Thaumas N.V. to PMV and SFPIM (co-shareholders that each previously owned 23.3% of the voting shares). Consequently, PMV and FPIM became, together and temporarily, the majority shareholders of Euroports. This transaction is expected to be the first step towards the sale of the entire stake held by R-LOGITECH in Thaumas (expected in 2025). EP PaCo S.A.'s probability of default rating of B1-PD is in line with its CFR, reflecting a family-wide loss given default rate of 50%, typically assumed by us for a capital structure that consists of first and second lien credit facilities. The transfer of EP BCo SA debt obligations to Euroports FinCo 2 NV has no impact on the B1/B3 ratings because there has been no change in the security, guarantees, or guarantors of the senior secured first lien term loan B and the senior secured second lien term loan. Furthermore, Euroports FinCo 2 NV is located within the same ring-fenced group. LIQUIDITY AND DEBT COVENANTS Euroports' liquidity position is good, underpinned by EUR81 million of cash on balance sheet, as of December 31st 2024. The company has a committed facility of EUR35 million, which has been fully drawn and has increased cash on balance sheet, with a final maturity in June 2028. The company will not face any significant debt maturity before 2029 when the first lien term loan becomes due. Moody's do not expect the company to distribute dividends over the next 12-18 months. Overall, given Euroports' relatively low capital spending requirements, Moody's expects that Euroports' liquidity position and cash flow generation will be sufficient to cover its capital expenditures and debt service obligations in the following 12-18 months. RATING OUTLOOK The stable outlook reflects Moody's expectations that Euroports' operating performance will continue to improve and financial metrics will remain in line with the ratio guidance for the B1 rating level, particularly that its FFO/debt ratio will remain above 7%. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upward rating pressure could develop if Euroports demonstrates a consistent growth in EBITDA or a reduction in debt levels, such that its FFO/debt is positioned above 10% on a sustained basis; and it maintains good liquidity. Downward rating pressure could develop as a result of a weakening in the group's financial profile, such that its FFO/debt falls below 7%; a substantial deterioration in the group's liquidity or decline in cash balances below historical levels; or a significant change in the business mix of the group, resulting in a heightened risk profile. The principal methodology used in these ratings was Privately Managed Ports published in April 2023. EP PaCo S.A. (Euroports) is the direct shareholder of EP BCo SA, which in turn owns Euroports Holdings S.a.r.l, an international port operator whose operations consist of large-scale ports situated in 15 terminal areas in Europe and in China. The company handles, stores and transports primarily bulk and breakbulk essential commodities, serving a diverse customer base across different end markets. Euroports also operates a freight forwarding and transport business which accounted for around 54% and 23% of its revenue and reported operating OEBITDA, respectively, in 2024. In 2024, Euroports reported EUR1,028 million in revenue and EUR108 million in OEBITDA (pre-IFRS-16). ========= S P A I N ========= CODERE GROUP: Moody's Assigns 'Caa3' CFR, Outlook Negative ---------------------------------------------------------- Moody's Ratings has assigned a Caa3 corporate family rating and a Caa3-PD probability of default rating to Codere Group Topco, S.A. (Codere or the company). Concurrently, Moody's have assigned a Caa3 instrument rating on the EUR128 million backed senior secured notes due 2028 (the first-priority notes) issued by Codere Finance 2 (Luxembourg) S.A. (Codere Finance 2). The outlook on both entities is negative. RATINGS RATIONALE Codere's Caa3 ratings reflect the company's weak liquidity, the weaker-than-expected financial performance in 2024 and the significant uncertainties around the ability of the group to achieve substantial earnings recovery and a breakeven level of free cash flow (FCF). Codere's weak liquidity is stemming from its sizable negative free cash flow (FCF) generation, due to its depressed EBITDA and high level of capital expenditures and leases payments, resulting in the likelihood that the company will be subject to liquidity pressures once again towards the end of 2025 or in the course of 2026. A very significant improvement in EBITDA would be required in the next few years for Codere to avoid liquidity pressures and be in a position to achieve a breakeven level of FCF. The company's financial performance in 2024 was significantly weaker than the previous expectations. This is because of revenue and company-adjusted EBITDA declines in retail activities in many of the group's countries. There was notably significant decline in company-adjusted EBITDA in Italy, Mexico and Argentina. Argentina was impacted by the significant currency devaluation at the end of 2023 while the recovery in financial performance in Argentina and Mexico following the regulatory hall closures issues in 2023 has not happened in 2024 as expected by the group previously. Moody's notes however that Codere online continues to exhibit strong growth, but it represented only a low single digit EBITDA in euro terms in 2024 after items qualified by Codere as non-recurring. In 2025, Moody's expects Codere's consolidated revenue to grow around low single digits in percentage terms driven by the growth in the online business balanced by the limited growth in retail activities overall. Moody's projects EBITDA to grow more strongly than revenue as a result of a reduction in items qualified by Codere as non-recurring, notably online growth investments and expenses, and financial restructuring expenses. However, there are significant uncertainties and risks to the recovery forecasts because of the uncertain recovery path in Mexico and the difficult macroeconomic conditions in Argentina. Codere's credit quality is also constrained by compliance and reporting risks. Due to a change in auditor, the company was only able to produce its audited accounts for 2023 in March 2025. For its subsidiary operating online activities, Codere online, 2023 audited accounts are still not available and failure to have them ready by the end of the extension period granted by The Nasdaq Stock Market LLC (Nasdaq) in the middle of May 2025 might lead to a delisting of Codere online. LIQUIDITY Codere's liquidity is weak because Moody's expects the company to continue to generate sizably negative free cash flow (FCF) leading to risks of liquidity pressures and covenant breach in the next 12-18 months. Codere's cash balance was EUR146 million as of December 2024 (unaudited figure), of which around EUR106 million (unaudited) corresponds to retail activities. Codere's cash level at December 2024 was supported by the cash injections received in the context of the restructuring transaction that the group completed last year. As part of this restructuring transaction, Codere received EUR20 million of additional liquidity via the issuance of bridge notes in the end of Q2 2024, and an additional amount of around EUR40 million at completion of the restructuring transaction, in October 2024, following the issuance of the EUR128 million first-priority notes. The timing of the potential next period of liquidity pressure for the group will depend on the group's pace of recovery in EBITDA, the extent of the group's ability to use some flexibility in capital expenditures spending as well as in local debt, working capital and deferred payments management. Moody's also note there are some risks of potential additional liquidity needs associated with the Italian license renewal, as well as with the tax claim from the Mexican tax authority for which a legal process is ongoing although not expected to come to an ultimate conclusion before the end of this year. Codere is subject to a liquidity covenant, tested quarterly, requiring that it maintains EUR40 million of cash in its retail operations (excluding the cash in the online division that is restricted). Codere's next significant debt maturity is the first-priority notes maturity in December 2028. ESG CONSIDERATIONS Moody's considers social and governance factors to be key drivers of the rating action. Codere's governance score of G-5 is linked to the company's financial policy and the weak management track record given its regular liquidity issues leading to serial defaults, as well as compliance and reporting issues associated with the change in auditor and the delay in reporting its annual audited accounts for 2023. Codere's social score of S-5 reflects its exposure to the regulatory risks inherent to the gaming and gambling industry but also to demographic and societal trends risks. Codere's exposure to online is moderate, which represents in Moody's views a risk in the context of changing consumer preferences from land-based gaming to online. STRUCTURAL CONSIDERATIONS Codere's PDR is in line with the CFR, reflecting Moody's assumptions of a 50% recovery rate, as is customary for capital structures that include bonds and bank debt. The first-priority notes rating is in line with the CFR. RATIONALE FOR NEGATIVE OUTLOOK The negative outlook reflects the group's weak liquidity and sizably negative free cash flow (FCF), and the uncertain potential for recovery in operating performance and cash flow. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upward pressure on the ratings could arise if the company's performance significantly recovers on a sustainable basis such that the risk of a liquidity shortfall and covenant breach reduces materially. Upward pressure on the ratings would require that Moody's assessments of recovery for the group's debt holders in case of another restructuring is commensurate with a higher CFR. The ratings could be downgraded if the company's performance does not improve or further deteriorates, or if liquidity weakens further, or a debt restructuring materialises with the estimated degree of recovery being below levels commensurate with a Caa3 rating. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Gaming published in June 2021. COMPANY PROFILE Founded in 1980 and headquartered in Madrid, Spain, Codere is an international gaming operator. The company operates retail gaming activities such as gaming halls, arcades, gaming machines but also betting shops in seven countries overall. Codere also holds a 66.5% ownership in its online gaming subsidiary, Codere online. In retail activities, Codere indicates being among the top market leaders in Spain, Argentina, Mexico and Uruguay. Codere is also present in retail gaming in Italy, Panama and Colombia. Codere online provides online gambling services mainly in Spain, Mexico, Colombia, Panama and the city of Buenos Aires. In 2024, the company reported preliminary non-audited consolidated revenue of around EUR1.3 billion and preliminary non-audited consolidated company-adjusted EBITDA of EUR178 million (before items qualified as non-recurring by Codere). Codere's ultimate ownership is composed of former note holders and first-priority notes holders. =========================== U N I T E D K I N G D O M =========================== AEC INDEPENDENT: FTS Recovery Named as Joint Administrators ----------------------------------------------------------- AEC Independent Ltd was placed into administration proceedings in the High Court of Justice Business and Property Courts of England and Wales, Insolvency & Companies List (ChD) Court Number: CR-2025-002168, and Alan Coleman and Marco Piacquadio of FTS Recovery Limited were appointed as joint administrators on March 28, 2025. AEC Independent specialized in private security activities. Its registered office and principal trading address is at Aec House, Unit 35 Greatbridge Road, Romsey, SO51 0HR. The joint administrators can be reached at: Alan Coleman FTS Recovery Limited 3rd Floor, Tootal House 56 Oxford Street, Manchester M1 6EU -- and -- Marco Piacquadio FTS Recovery Limited Ground Floor, Baird House Seebeck Place, Knowlhill Milton Keynes, MK5 8FR Further details, contact: The Joint Administrators Tel No: 01908 754 666 Email: Elena.Dimitrova@ftsrecovery.co.uk Alternative contact: Elena Dimitrova BROWN BIDCO: Moody's Affirms 'B2' CFR, Outlook Stable ----------------------------------------------------- Moody's Ratings affirmed its ratings for BROWN BIDCO LIMITED ("Signature"), including the B2 corporate family rating and the B2-PD probability of default rating. Concurrently, Moody's affirmed the B2 ratings of the backed senior secured bank credit facilities, borrowed by Brown Group Holding LLC and Signature Aviation US Holdings, Inc. Moody's also affirmed the B2 ratings of the backed senior notes due 2028 issued by Signature Aviation US Holdings, Inc. The ratings outlook is stable. The affirmation of the ratings reflects Moody's expectations of a generally stable operating environment for FBO providers that will result in modest earnings growth and positive cash generation. RATINGS RATIONALE The B2 CFR reflects Signature's strong position as the leading fixed base operator (FBO) in the US. Moody's recognize Signature's large and diverse footprint in an industry where scale provides sustainable competitive advantages in the fragmented FBO industry. Signature benefits from a relatively flexible cost structure which allows the company to effectively manage costs during periods of decreased revenue. The company has a good history of organic revenue growth and the business performed resiliently during - and since - the coronavirus pandemic. That said, the current economic outlook is highly uncertain and Signature's earnings would be vulnerable during an economic downturn. The FBO industry is highly cyclical, with flight volumes strongly correlated with changes in GDP. Weakening economic conditions could not only reduce demand but also complicate passing higher costs to customers, although Moody's notes that the company is protected contractually from oil price increases and has a track record of margin stability. The ratings also reflect Signature's high financial leverage that limits financial flexibility, with estimated December 2024 debt-to-EBITDA of around 5.5 times. The stable outlook reflects Signature's good liquidity, strong market position and Moody's expectations of positive free cash flow during 2025. Moody's expects Signature to maintain good liquidity over the next 12 to 18 months. Signature's cash balance was $264 million as of September 30, 2024. Moody's expects positive, albeit modest, free cash generation in 2024 with free cash flow-to-debt in the low single-digits. Moody's anticipates similar levels of cash generation during 2025. The company has no near-term principal obligations. External liquidity is provided by an undrawn $445 million revolving credit facility (RCF) that expires in 2029. The revolver contains a springing leverage covenant set at 40% headroom which applies when the facility is at least 40% drawn. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Factors that could lead to a ratings upgrade include improved liquidity with free cash flow-to-debt consistently in the mid-single digits, demonstration of a more conservative financial policy that would include debt-to-EBITDA being sustained below 6 times. Factors that could lead to a ratings downgrade include lower general aviation traffic volumes that result in weaker earnings. Debt-to-EBITDA sustained above 7x, EBITDA-to-Interest below 2.5x, or weakening liquidity could also result in a downgrade. The principal methodology used in these ratings was Business and Consumer Services published in November 2021. BROWN BIDCO LIMITED (dba as Signature Aviation) is an intermediate holding company of the Signature Aviation group. The Signature Aviation Group operates more than 200 FBO locations providing business and general aviation flight support services at airports, with the US being its largest market followed by Europe. An FBO is a commercial business granted the right by government authorities to provide aeronautical services to general aviation aircraft on the airport's property. The company is owned by entities controlled by Blackstone Infrastructure Partners, Blackstone Core Equity, Global Infrastructure Partners and Cascade Investment, L.L.C. GREEEN+ LIMITED: Begbies Traynor Named as Administrators -------------------------------------------------------- Greeen+ Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts of England and Wales, Insolvency & Companies List (ChD) Court Number: CR-2025-002232, and Paul Appleton and Simon John Killick of Begbies Traynor (London) LLP, were appointed as administrators on March 28, 2025. Greeen+ Limited specialized in the wholesale of flowers and plants. Its registered office is at 1-4 London Road, Spalding, Lincolnshire, PE11 2TA. The administrators can be reached at: Paul Appleton Simon John Killick Begbies Traynor (London) LLP 31st Floor, 40 Bank Street, London, E14 5NR Any person who requires further information may contact: Benjamin Jackson Begbies Traynor (London) LLP Email: RC-Team@btguk.com Tel No: 020 7400 7900 HUMANISING AUTONOMY: Butcher Woods Named as Administrators ---------------------------------------------------------- Humanising Autonomy Ltd was placed into administration proceedings in the High Court of Justice Business and Property Courts in Birmingham, Insolvency & Companies List (ChD) Court Number: CR-2025-BHM-000142, and Richard Paul James Goodwin and Roderick Graham Butcher of Butcher Woods, were appointed as administrators on March 28, 2025. Humanising Autonomy specialized in the design of IT systems for the automobile industry. Its registered office is at 79 Caroline Street, Birmingham, B3 1UP (Formerly) Makerversity Humanising Autonomy, Makerversity, Somerset House, Strand, London, WC2R 1LA. Its principal trading address is at Makerversity Humanising Autonomy, Makerversity, Somerset House, Strand, London, WC2R 1LA. The administrators can be reached at: Richard Paul James Goodwin Roderick Graham Butcher Butcher Woods 79 Caroline Street Birmingham B3 1UP For further details, contact: James Stallard Email: james.stallard@butcher-woods.co.uk Tel No: 0121 236 6001 MARSTON'S ISSUER: Fitch Affirms 'BB+' Rating on Three Tranches -------------------------------------------------------------- Fitch Ratings has affirmed Marston's Issuer Plc's class A notes at 'BB+' and class B notes at 'B+'. The Outlooks are Stable. Entity/Debt Rating Prior ----------- ------ ----- Marston's Issuer PLC Marston's Issuer PLC/Project Revenues - Senior Secured Debt/1 LT LT Class A2 XS0226790748 LT BB+ Affirmed BB+ Class A3 XS0226792280 LT BB+ Affirmed BB+ Class A4 XS0331071026 LT BB+ Affirmed BB+ Marston's Issuer PLC/Project Revenues - Junior Secured Debt/2 LT LT Class B XS0226897030 LT B+ Affirmed B+ RATING RATIONALE The affirmation reflects the solid performance of tenanted and franchise pubs and stable managed estate. Combined with reducing cost pressure, this has enabled Marston's to improve profitability and cash flow generation. Within the securitisation, EBITDA has already achieved full pre-pandemic recovery in 2024 on a per pub basis. Under the current Fitch rating case (FRC), the projected free cash flow (FCF) debt service coverage ratio (DSCR; minimum of average or median) over 2025-2032 is around 1.3x for the class A notes, and around 1.2x for the class B notes. KEY RATING DRIVERS Industry Profile - Midrange Sector in Structural Decline; Strong Culture The UK pub sector has been in structural decline for the past three decades due to demographic shifts, greater health awareness and the growing presence of competing offerings. Exposure to discretionary spending is high, and revenues are linked to the broader economy. Competition is keen, including off-trade alternatives, and barriers to entry are low. The pandemic and its related containment measures had a material impact on the sector. Trade volumes are recovering, but cost pressures on pubs and customers continue to affect demand and profitability. Despite these challenges, Fitch views the sector as sustainable in the long term, supported by the strong UK pub culture. Operating environment - Weaker; Barriers to entry - Midrange; Sustainability - Midrange Company Profile - Midrange Hybrid Managed/Tenanted Model Marston's is one of several large operators of pubs and bars in the UK, operating over 1,300 pubs and bars across the country. After selling its brewing business to form a joint venture with Carlsberg UK, Marston's is now a more focused pub operator. The company's securitised perimeter consists of 845 (as of September 2024) tenanted and managed pubs across the UK. The management team is experienced and has been stable in the past, despite the appointment of a new CEO in January 2024 and the recent announcement of its CFO's departure by October 2025. Fitch considers Marston's asset quality adequate and in line with peers. The company has previously had higher than covenanted maintenance capex. Information shared by the company is adequate. Financial performance - Midrange; Company operations - Midrange; Transparency - Midrange; Dependence on operator - Midrange; Asset quality - Midrange Debt Structure - 1 - Stronger; Debt Structure - 2 - Midrange Standard WBS Structure with Junior Back-Ended Amortisation - Debt Structure: Stronger (Class A), Midrange (Class B) All debt is fully amortising on a fixed schedule, eliminating refinancing risk. The class A notes benefit from deferability of the junior class B notes. Amortisation of the class B notes is back-ended, and their interest-only period is substantial. The notes are either fixed rate or fully hedged. The security package is strong, with comprehensive first-ranking fixed and floating charges over borrower assets. Class A is the senior ranking controlling creditor, with the class B notes lower ranking, resulting in a 'Midrange' assessment. All standard WBS legal and structural features are present, and the covenant package is comprehensive. The restricted payment condition levels are standard, with 1.5x EBITDA DSCR and 1.3x FCF DSCR. The liquidity facility is covenanted at 18 months' peak debt service. All counterparties' ratings are at or above the rating of the highest-rated notes. The issuer is an orphan bankruptcy-remote special-purpose vehicle. Debt profile - Stronger (Class A), Midrange (Class B); Security package - Stronger (Class A), Midrange (Class B); Structural features - Stronger (Classes A and B) Financial Profile Marston's has already achieved profitability recovery in the financial year ending September 2024 on an EBITDA per pub basis. In the long-term (2025-2035), the FRC assumes marginally increasing EBITDA (CAGR of +0.1%) and marginally decreasing FCF (CAGR of -0.1%) reflecting the cost pressures, the changing consumer habits affect the pubs industry, and the increasing maintenance expenditure. This results in a FCF DSCR (minimum of median and average) of around 1.3x for the class A notes and around 1.2x for the class B notes under the FRC over the rating horizon (2025-2032). PEER GROUP Marston's closest peers are hybrid pubco (managed and tenanted) securitisations, such as Greene King Finance Plc, and managed pubco securitisations such as Mitchells & Butlers Finance Plc. Marston's managed pubs generated around 60% of EBITDA as of September 2024, which is less favourable as Fitch considers a higher proportion of managed pubs to be a stronger feature as they have greater transparency and control. Hybrid pubco peer Greene King generates more than 70% through managed pubs. The average EBITDA contribution per pub in Marston's estates is slightly lower than peers. Greene King's class A notes are rated 'BBB+', with a FCF DSCR of 1.9x, well above the coverage levels of Marston's, justifying the higher rating for Greene King. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Deterioration of the FRC-projected profile FCF DSCRs to substantially below 1.2x for the class A notes and towards 1.0x for the class B notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improvement of the FRC-projected profile FCF DSCRs to substantially above 1.4x for the class A notes and 1.2x for the class B notes. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. RODELLS LIMITED: FRP Advisory Named as Joint Administrators ----------------------------------------------------------- Rodells Limited was placed into administration proceedings in the High Court of Justice Court Number: CR-2025-001655, and Miles Needham and Sarah Cook of FRP Advisory Trading Limited, were appointed as joint administrators on March 24, 2025. Rodells Limited, trading as Rodells, specialized in scaffold erection. Its registered office is at Broad Colney Works Shenley Lane, London Colney, St. Albans AL2 1DG. Its principal trading address is at FRP Advisory, 4 Beaconsfield Road, St Albans, Hertfordshire, AL1 3RD. The joint administrators can be reached at: Sarah Cook Miles Needham FRP Advisory Trading Limited 4 Beaconsfield Road, St Albans Hertfordshire, AL1 3RD Further details contact: Joint Administrators Tel: 01727 811111 Andrew Andreou Email: cp.stalbans@frpadvisory.com UK LOGISTICS 2025-1: Moody's Assigns B3 Rating to GBP16MM F Notes ----------------------------------------------------------------- Moody's Ratings has assigned the following definitive ratings to the debt issuance of UK Logistics 2025-1 DAC (the "Issuer"): GBP379M Class A Commercial Mortgage Backed Floating Rate Notes due May 2035, Definitive Rating Assigned Aaa (sf) GBP107.7M Class B Commercial Mortgage Backed Floating Rate Notes due May 2035, Definitive Rating Assigned Aa3 (sf) GBP67.9M Class C Commercial Mortgage Backed Floating Rate Notes due May 2035, Definitive Rating Assigned A3 (sf) GBP127.6M Class D Commercial Mortgage Backed Floating Rate Notes due May 2035, Definitive Rating Assigned Baa3 (sf) GBP99.8M Class E Commercial Mortgage Backed Floating Rate Notes due May 2035, Definitive Rating Assigned Ba3 (sf) GBP16M Class F Commercial Mortgage Backed Floating Rate Notes due May 2035, Definitive Rating Assigned B3 (sf) UK Logistics 2025-1 DAC is a true sale transaction backed by three floating rate loans secured by urban logistics and industrial outdoor storage (IOS) properties located throughout the UK. The Nevis loan is secured by 59 urban logistics properties, the Fawr loan is secured by 20 urban logistics properties and 6 IOS properties, and the Pike loan is secured by 23 urban logistics properties. The loans were granted by Citibank, N.A. London Branch to refinance the three portfolios. The sponsor of the three loans is Blackstone. RATINGS RATIONALE The rating action is based on (i) Moody's assessments of the real estate quality and characteristics of the collateral of each loan, (ii) analysis of each of the loan terms and (iii) the expected legal and structural features of the transaction. Moody's derive a loss expectation for the securitised loans based on Moody's assessments of (i) each loan's default probability both during its term and at maturity, and (ii) the value of the collateral. Moody's loan to value ratios (LTV) stands at 83.7% for the Nevis loan, 79.6% for the Fawr loan and 80.8% for the Pike loan. Moody's property grades range from an average of 2.0 on the Nevis loan, 2.0 on the Fawr Loan to 2.5 for the Pike loan (on a scale of 1 to 5, 1 being the best). The key strengths of the transaction include: (i) well-located property portfolios, close to major transport networks and population centres, (ii) a diversified tenant base with approximately 320 tenants for the Nevis loan, approximately 129 tenants for Fawr loan and approximately 224 tenants for Pike loan, (iii) positive rent reversionary potential, (iv) favourable market fundamentals for last mile logistics properties and (v) an experienced sponsor with strong asset management teams. Challenges in the transaction include: (i) elevated default risk considering both term and refinancing default risk, (ii) pro-rata allocation of principal proceeds, (iii) weak special servicing transfer events provision, (iv) weak release price mechanism, (v) elevated vacancy levels, (vi) no scheduled amortisation of the loans, (vii) interest rate hedging will initially only be in place for two years, (viii) exposure to older properties with partly weak energy efficiency ratings and (ix) weak covenants with no financial default covenant prior to a change of control event (CoC). Further, Moody's have rated the notes considering the legal final maturity date of the notes as specified at closing. The transaction includes a concept of a Term Extension Modification which may be passed by way of an ordinary resolution of the noteholders of each class of notes or acting as a single class, which will have the effect of extending the date of legal final maturity beyond the initial legal final maturity date. Moody's will consider the impact of any such Term Extension Modification if and when it is enacted, having regard to the circumstances driving the extension. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "EMEA Commercial Mortgage-backed Securitisations" published in January 2025. Factors that would lead to an upgrade or downgrade of the ratings: Main factors or circumstances that could lead to a downgrade of the ratings are generally: (i) a decline in the property values backing the underlying loans, (ii) an increase in default risk assessment or (iii) an extension of the legal final maturity date consistent with Moody's definition of distressed exchange. Main factors or circumstances that could lead to an upgrade of the ratings are generally: (i) an increase in the property values backing the underlying loans, (ii) repayment of loans with an assumed high refinancing risk or (iii) a decrease in default risk assessment. ********* 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 * * *