/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/250422.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 Tuesday, April 22, 2025, Vol. 26, No. 80 Headlines F R A N C E ACCOR SA: Egan-Jones Retains BB Senior Unsecured Ratings G R E E C E GRIFONAS FINANCE 1: Fitch Affirms 'B-sf' Rating on Class C Notes I R E L A N D ANCHORAGE CAPITAL I: Fitch Assigns 'B-sf' Final Rating to F-R Notes ARMADA EURO VII: Fitch Assigns 'B-sf' Final Rating to Class F Notes ARMADA EURO VII: S&P Assigns B- (sf) Rating to Class F Notes CANYON EURO 2022-1: Fitch Assigns 'B-sf' Final Rating on F-R Notes CVC CORDATUS XXXIV: Fitch Assigns B-sf Final Rating to Cl. F Notes INVESCO EURO V: Fitch Affirms 'B-sf' Rating on Class F Notes JUBILEE CLO 2017-XIX: Fitch Assigns 'B-sf' Rating to Class F Notes JUBILEE CLO 2017-XIX: S&P Assigns B- (sf) Rating to F-R Notes KINBANE 2024-RPL 1: S&P Affirms 'B- (sf)' on Class F-Dfrd Notes SOUND POINT IV: Fitch Assigns 'B-sf' Final Rating to Cl. F-R Notes L U X E M B O U R G ALTISOURCE PORTFOLIO: Narrows Net Loss to $35.4 Million in 2024 RADAR TOPCO: Fitch Alters Outlook on 'BB-' Long-Term IDR to Stable S P A I N LAR ESPANA: Fitch Affirms Then Withdraws 'BB-' IDR, Outlook Stable T U R K E Y TAM FINANS: Fitch Affirms 'B' Long-Term IDR, Outlook Stable U N I T E D K I N G D O M ARROW FILM: Interpath Named as Joint Administrators ATS MINI: Quantuma Advisory Named as Administrators DRAX GROUP: Fitch Affirms 'BB+' Long-Term IDR, Outlook Stable KNOWLEDGEMOTION LTD: Kroll Advisory Named as Administrators PHARMANOVIA BIDCO: Fitch Lowers LongTerm IDR to 'B', Outlook Neg. SMALL BUSINESS 2025-1: Fitch Assigns 'BB+(EXP)sf' Rating to C Notes VILLA (WREA GREEN): FRP Advisory Named as Administrators VOGUE BEDS: CB Business Appointed as Administrator ZOOM PROPERTY: Quantuma Advisory Named as Administrators - - - - - =========== F R A N C E =========== ACCOR SA: Egan-Jones Retains BB Senior Unsecured Ratings -------------------------------------------------------- Egan-Jones Ratings Company on April 11, 2025, maintained its 'BB' foreign currency and local currency senior unsecured ratings on debt issued by Accor SA. EJR also withdrew the rating on commercial paper issued by the Company. Headquartered in Issy-les-Moulineaux, France, Accor SA, doing business as AccorHotels, is a hospitality company. =========== G R E E C E =========== GRIFONAS FINANCE 1: Fitch Affirms 'B-sf' Rating on Class C Notes ---------------------------------------------------------------- Fitch Ratings has affirmed Grifonas Finance No. 1 Plc's notes ratings. All notes have been removed from Under Criteria Observation. Entity/Debt Rating Prior ----------- ------ ----- Grifonas Finance No. 1 Plc Class A XS0262719320 LT AA-sf Affirmed AA-sf Class B XS0262719759 LT Asf Affirmed Asf Class C XS0262720252 LT B-sf Affirmed B-sf Transaction Summary The transaction comprises fully amortising residential mortgages originated and serviced by Consignment Deposits & Loans Fund. KEY RATING DRIVERS European RMBS Rating Criteria Updated: The rating action considers Fitch's updated 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 applied a 1.0x transaction adjustment to the foreclosure frequency (FF), as observed FF performance in the portfolios is broadly comparable with the criteria-derived transaction-specific weighted average (WA) FF. Stable Asset Performance; Increased CE: Asset performance has remained stable overall since the last review in July 2024, and Fitch expects this to continue given the portfolio deleveraging. At the previous payment date (February 2025) cumulative defaults were 5.3% (5.2% at February 2024). The notes are amortising sequentially and credit enhancement (CE) has built up since the last review to approximately 46%, 30% and 12% for the class A, B and C notes, respectively (from around 38%, 25% and 10% at the last review). Data Discrepancy: There is a misalignment between the loan-by-loan data (used by ResiGlobal) provided to Fitch and the reported portfolio amount in the investor report. Fitch considers the ResiGlobal model output accurately reflects the portfolio's credit profile, as results are influenced by the portfolio loss floor. However, in the cash flow analysis, Fitch used conservative assumptions by modelling the performing balance from the loan-by-loan data, which is lower than the total outstanding balance of the rated notes. Interest Payments and Liquidity Mechanism: Since February 2023, the class C interest payments have been postponed to a more junior item in the waterfall following the cumulative default trigger breach (5.0%), to ensure additional protection for the class A and B notes. The structure also includes a facility, which is non-amortising due to breached triggers and reduces the transaction's available funds given the associated commitment fee paid on the committed facility amount. The facility costs are included in Fitch's cash flow analysis as senior expenses. Ratings Capped at 'AA-sf': The class A notes' 'AA-sf' rating is at the maximum achievable rating for Greek structured finance transactions, in accordance with Fitch's Structured Finance and Covered Bonds Country Risk Rating Criteria, six notches above Greece's Long-Term Issuer Default Rating (IDR; BBB-/Stable). RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Insufficient CE to fully compensate the credit losses and cash flow stresses associated with the current ratings scenarios could lead to downgrades of all three tranches. For the class A notes, which are rated at the maximum achievable rating (i.e. six notches above the sovereign IDR), a downgrade of Greece's Long-Term IDR that could decrease the maximum achievable rating for Greek SF transactions, in accordance with Fitch's Structured Finance and Covered Bonds Country Risk Rating Criteria. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade As the class A notes are currently rated at the highest level for SF transactions in Greece, in accordance with Fitch's Structured Finance and Covered Bonds Country Risk Rating Criteria, they cannot be upgraded until Greece's Long-Term IDR is upgraded, which could lead to an increase in the maximum achievable rating for Greek SF transactions, and provided that CE available to the class A notes can sustain the then higher rating stresses. At the most recent payment date, the loan-by-loan data made available to Fitch does not match the information disclosed in the investor report. In its cash flow modelling, Fitch has applied conservative assumptions to accommodate for this discrepency. The ratings of the class B and C notes may change if Fitch is provided with loan-by-loan data that perfectly matches the investor report. 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 Grifonas Finance No. 1 Plc 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. Fitch did not undertake a review of the information provided about the underlying asset pool ahead of the transaction's initial closing. The subsequent performance of the transaction 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. There is a misalignment between the loan-by-loan information made available to Fitch and the data reported in the investor report. Fitch views the ResiGlobal model output of this transaction to adequately capture credit profile of the portfolio, considering that the results are driven by the portfolio loss floor; however in the cash flow analysis Fitch made conservative assumptions by modelling the performing balance of the portfolio as reported in the loan-by-loan, which is lower than the aggregate outstanding balance of the rated 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. ============= I R E L A N D ============= ANCHORAGE CAPITAL I: Fitch Assigns 'B-sf' Final Rating to F-R Notes ------------------------------------------------------------------- Fitch Ratings has assigned Anchorage Capital Europe CLO I DAC's reset notes final ratings, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Anchorage Capital Europe CLO I DAC A-1-R XS2398917133 LT PIFsf Paid In Full AAAsf A-2-R XS2398917729 LT PIFsf Paid In Full AAAsf A-RR XS3027991218 LT AAAsf New Rating B XS1846661111 LT PIFsf Paid In Full AA+sf B-1-R XS3027991994 LT AAsf New Rating B-2-R XS3027991309 LT AAsf New Rating C XS1846661384 LT PIFsf Paid In Full A+sf C-R XS3027991481 LT Asf New Rating D-1 XS1846661541 LT PIFsf Paid In Full BBB+sf D-2-R XS2399533798 LT PIFsf Paid In Full BBB+sf D-RR XS3027992299 LT BBB-sf New Rating E XS1846662432 LT PIFsf Paid In Full BBsf E-R XS3027991564 LT BB-sf New Rating F XS1846662358 LT PIFsf Paid In Full B-sf F-R XS3027991648 LT B-sf New Rating Transaction Summary Anchorage Capital Europe CLO I DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of unsecured senior loans, unsecured senior bonds, second-lien loans, first-lien last-out loans, mezzanine obligations and high-yield bonds. Note proceeds were used to redeem all the existing notes, apart from the subordinated notes, and to fund a portfolio with a target par of EUR400 million. The portfolio is actively managed by Anchorage CLO ECM, L.L.C. The CLO has a five-year reinvestment period and a nine-year weighted average life test (WAL). KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch places the average credit quality of obligors at 'B'. The Fitch-calculated weighted average rating factor of the identified portfolio is 24.5. 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-calculated weighted average recovery rate of the identified portfolio is 61.4%. Diversified Asset Portfolio (Positive): The transaction includes six Fitch matrices. All matrices are based on a top-10 obligor concentration limit of 20%. Two matrices are effective at closing, and correspond to fixed-rate asset limits at 7.5% and 12.5% and a nine-year WAL test. Two matrices are effective 12-months after closing and correspond to an eight-year WAL test and the same fixed-rate asset limits as the closing matrices. Another two matrices correspond to a seven-year WAL test, the same fixed-rate asset limits as the closing matrices, and are effective 24 months after closing. The eight-year and seven-year WAL test matrices can be elected by the collateral manager if the collateral principal amount is at least equal to the reinvestment target par balance. 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. 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 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 stress portfolio and matrices analysis is 12 months less than the WAL covenant. This is to account for structural and reinvestment conditions after the reinvestment period, including the overcollateralisation test and the Fitch 'CCC' limitation test passing after reinvestment. Fitch believes these conditions will reduce the effective risk horizon of the portfolio during the stress period. 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-R, B-R, C-R and D-R notes and lead to downgrades of no more than one notch for the class E-R notes, and to below 'B-sf' for the class F-R notes. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of defaults and portfolio deterioration. Due to the better metrics of the identified portfolio than the Fitch-stressed portfolio, the class B-R, D-R, E-R and F-R notes display rating cushions to downgrades of two notches and the class C-R notes of three notches. The class A-R notes display no rating cushion as they are already at their maximum achievable rating. Should the cushion between the identified portfolio and the Fitch-stressed portfolio erode 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 result in downgrades of four notches for the class B-R and C-R notes, three notches for the class A-R and D-R notes and to below 'B-sf' for the class E-R and F-R notes. 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 two notches for the class B-R, D-R, E-R and F-R notes and three notches for the class C-R notes. The class A-R notes are at the highest rating on Fitch's scale and cannot be upgraded. During the reinvestment period, based on the Fitch-stressed portfolios, upgrades 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 a 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 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 Anchorage Capital Europe CLO I 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. ARMADA EURO VII: Fitch Assigns 'B-sf' Final Rating to Class F Notes ------------------------------------------------------------------- Fitch Ratings has assigned Armada Euro CLO VII DAC final ratings, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Armada Euro CLO VII DAC A XS2978783442 LT AAAsf New Rating AAA(EXP)sf B XS2978783798 LT AAsf New Rating AA(EXP)sf C XS2978783954 LT Asf New Rating A(EXP)sf D XS2978784176 LT BBB-sf New Rating BBB-(EXP)sf E XS2978784333 LT BB-sf New Rating BB-(EXP)sf F XS2978784507 LT B-sf New Rating B-(EXP)sf Subordinated XS2978784762 LT NRsf New Rating NR(EXP)sf Transaction Summary Armada Euro CLO VII 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 fund a portfolio with a target par of EUR400 million. The portfolio is actively managed by Brigade Capital Europe Management LLP. The CLO has a reinvestment period of around 4.5 years and an 8.5-year weighted average life (WAL) test limit. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch places the average credit quality of obligors at 'B'. The Fitch weighted average rating factor of the identified portfolio is 23.9. 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 65.0%. Diversified Portfolio (Positive): The transaction includes one matrix set at closing and two forward matrix sets that are effective 12 and 18 months after closing, provided the collateral principal amount (defaults at Fitch-calculated collateral value) is at least equal to the reinvestment target par balance or does not fall short of it by more than EUR2 million, among other conditions. Each matrix set comprises two matrices with fixed-rate asset limits of 5% and 12.5%. The closing matrix sets corresponds to an 8.5-year WAL test covenant, whereas the two forward matrix sets correspond to a 7.5-year and 7.0-year WAL test covenant. The transaction includes various concentration limits, including a maximum exposure to the three largest Fitch-defined industries in the portfolio at 40% and a 10 largest obligor concentration limit at 20%. These covenants ensure that the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has a reinvestment period of around 4.5 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 (Positive): The WAL used for the Fitch-stressed portfolio is 12 months less than the WAL covenant to account for structural and reinvestment conditions after the reinvestment period, including passing the over-collateralisation and Fitch 'CCC' limitation tests, and a WAL covenant that progressively steps down over time. 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) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no impact on the class A, B and E notes, and would lead to downgrades of no more than one notch for the class C and D notes, and to below 'B-sf' for the class F notes. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of defaults and portfolio deterioration. Due to the better metrics of the identified portfolio than the Fitch-stressed portfolio, the notes display rating cushions to a downgrade of up to three notches. Should the cushion between the identified portfolio and the Fitch-stressed portfolio erode 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 result in downgrades of three notches for the class A and D notes, four notches for the class B and C notes, and to below 'B-sf' for the class E and F notes. 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 an upgrade of up to five notches each for the rated notes, except for the 'AAAsf' notes, which are at the highest level on Fitch's scale and cannot be upgraded. During the reinvestment period, based on the Fitch-stressed portfolio, upgrades 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 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 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 Armada Euro CLO VII 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. ARMADA EURO VII: S&P Assigns B- (sf) Rating to Class F Notes ------------------------------------------------------------ S&P Global Ratings assigned its credit ratings to Armada Euro CLO VII DAC's class A to F European cash flow CLO notes. The issuer also issued unrated subordinated notes. Under the transaction documents, the rated notes pay quarterly interest unless a frequency switch event occurs. Following this, the notes will switch to semiannual payments. The transaction has a 1.5-year noncall period and the portfolio's reinvestment period will end 4.5 years after closing. The ratings reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,734.22 Default rate dispersion 571.83 Weighted-average life (years) 4.819 Obligor diversity measure 88.68 Industry diversity measure 20.31 Regional diversity measure 1.29 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 1.27 Actual 'AAA' weighted-average recovery (%) 37.63 Actual weighted-average spread (net of floors; %) 3.69 Actual weighted-average coupon (%) 3.20 The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, S&P has conducted its credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. S&P said, "In our cash flow analysis, we used the EUR400 million target par amount, the actual weighted-average spread (3.69%), the actual weighted-average coupon (3.20%), and the actual weighted-average recovery rates at all rating levels. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Until the end of the reinvestment period on Oct. 15, 2029, the collateral manager may substitute assets in the portfolio for so long as our CDO Monitor test is maintained or improved in relation to the initial ratings on the notes. This test looks at the total amount of losses that the transaction can sustain as established by the initial cash flows for each rating, and it compares that with the current portfolio's default potential plus par losses to date. As a result, until the end of the reinvestment period, the collateral manager may through trading deteriorate the transaction's current risk profile, as long as the initial ratings are maintained. "Under our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "The transaction's legal structure and framework is bankruptcy remote, in line with our legal criteria. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe the assigned ratings are commensurate with the available credit enhancement for the class A, B, C, D, E, and F notes. "Our credit and cash flow analysis indicates that the available credit enhancement for the class B to F notes could withstand stresses commensurate with higher ratings than those we have assigned. However, as the CLO will be in its reinvestment phase starting from closing, during which the transaction's credit risk profile could deteriorate, we have capped our ratings assigned to the notes." The class A notes can withstand stresses commensurate with the assigned rating. S&P sad, "In addition to our standard analysis, we have also included the sensitivity of the ratings on the class A to E notes based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F notes." The transaction securitizes a portfolio of primarily senior secured leveraged loans and bonds and will be managed by Brigade Capital Europe Management LLP. Environmental, social, and governance S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector. For this transaction, the documents prohibit assets from being related to certain activities. Accordingly, since the exclusion of assets from certain industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Ratings list Amount Credit Class Rating* (mil. EUR) Interest rate(%)§ enhancement (%) A AAA (sf) 248.00 3mE +1.19% 38.00 B AA (sf) 44.00 3mE +1.70% 27.00 C A (sf) 26.00 3mE +2.15% 20.50 D BBB- (sf) 27.00 3mE +3.00% 13.75 E BB- (sf) 17.00 3mE +4.90% 9.50 F B- (sf) 12.00 3mE +7.69% 6.50 Subordinated NR 34.70 N/A N/A *The ratings assigned to the class A and B notes address timely interest and ultimate principal payments. The ratings assigned to the class C, D, E, and F notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. 3mE--Three-month EURIBOR. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. CANYON EURO 2022-1: Fitch Assigns 'B-sf' Final Rating on F-R Notes ------------------------------------------------------------------ Fitch Ratings has assigned Canyon Euro CLO 2022-1 DAC reset notes final ratings, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Canyon Euro CLO 2022-1 DAC A Loan LT PIFsf Paid In Full AAAsf A XS2584250497 LT PIFsf Paid In Full AAAsf A-R LT AAAsf New Rating AAA(EXP)sf A-R Loan LT AAAsf New Rating AAA(EXP)sf B XS2584250570 LT PIFsf Paid In Full AAsf B-R LT AAsf New Rating AA(EXP)sf C XS2584251032 LT PIFsf Paid In Full Asf C-R LT Asf New Rating A(EXP)sf D-1 XS2584251206 LT PIFsf Paid In Full BBBsf D-1-R LT BBB-sf New Rating BBB-(EXP)sf D-2 XS2599092108 LT PIFsf Paid In Full BBB-sf D-2-R LT BBB-sf New Rating BBB-(EXP)sf E XS2584251461 LT PIFsf Paid In Full BB-sf E-R LT BB-sf New Rating BB-(EXP)sf F XS2584251628 LT PIFsf Paid In Full B-sf F-R LT B-sf New Rating B-(EXP)sf Transaction Summary Canyon Euro CLO 2022-1 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 refinance existing notes except the subordinated notes and to fund the portfolio with a target par of EUR400 million. The portfolio is actively managed by Canyon CLO Advisors L.P. The CLO has a five-year reinvestment period and a nine-year weighted average life (WAL) test. 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 24.7. 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 63.7%. Diversified Portfolio (Positive): The transaction includes various concentration limits, including a maximum exposure to the three largest Fitch-defined industries in the portfolio at 42.5% and a top 10 obligor concentration limit at 20%. These covenants ensure that the asset 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 portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. The transaction has six Fitch matrices. Two are effective at closing, corresponding to a WAL of nine years and another two are forward matrices corresponding to a WAL of eight years. 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. Another two forward matrices are effective two years after closing, corresponding to a seven-year WAL with a target par condition at EUR398 million. The matrices correspond to two fixed rate (FRA) limits of 5% and 12.5%. Cash Flow Modelling (Positive): The WAL used for the transaction's Fitch-stressed portfolio and matrices analysis is 12 months less than the WAL covenant to account for structural and reinvestment conditions after the reinvestment period. These include satisfaction of the over-collateralisation tests and Fitch's 'CCC' limit. In Fitch's opinion, 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 D-2 and E notes, to below 'B-sf' for the class F 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, D-1, D-2, E and F notes each have a two-notch cushion, the class C notes have a cushion of three notches and the class A notes have no cushion. 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 each for the notes. 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 four notches each for the 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 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 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 Canyon Euro CLO 2022-1 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. CVC CORDATUS XXXIV: Fitch Assigns B-sf Final Rating to Cl. F Notes ------------------------------------------------------------------ Fitch Ratings has assigned CVC Cordatus Loan Fund XXXIV DAC notes final ratings, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- CVC Cordatus Loan Fund XXXIV DAC A XS2980877158 LT AAAsf New Rating AAA(EXP)sf B XS2980877588 LT AAsf New Rating AA(EXP)sf C XS2980877745 LT Asf New Rating A(EXP)sf D XS2980878040 LT BBB-sf New Rating BBB-(EXP)sf E XS2980878396 LT BB-sf New Rating BB-(EXP)sf F XS2980878552 LT B-sf New Rating B-(EXP)sf Sub Notes XS2980878982 LT NRsf New Rating NR(EXP)sf Transaction Summary CVC Cordatus Loan Fund XXXIV DAC is a securitisation of mainly (at least 96%) senior secured obligations 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 EUR400 million. The portfolio is actively managed by CVC Credit Partners Investment Management Limited. The CLO has a 4.5-year reinvestment period and a 7.5-year weighted average life (WAL) test covenant at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'/'B-'. Fitch's weighted average rating factor of the identified portfolio is 25.3. High Recovery Expectations (Positive): At least 96% 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 58.4%. Diversified Portfolio (Positive): The transaction includes one matrix set at closing and one forward matrix set that is effective 12 months or 18 months after closing, depending on the WAL step-up, provided the aggregate collateral balance (defaults at Fitch-calculated collateral value) is at least at the reinvestment target par balance, among other conditions. Each matrix set is comprised of two matrices with fixed-rate asset limits of 5% and 12.5% respectively. The transaction also features various portfolio concentration limits, including a top 10 obligor concentration limit at 20% and a maximum exposure to the three largest Fitch-defined industries at 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The 4.5-year reinvestment period includes criteria common in European CLO transactions. Fitch's analysis is based on a stress portfolio aimed at testing the robustness of the transaction structure against its covenants and portfolio guidelines. WAL Step-Up Feature (Neutral): The transaction could extend the WAL test by one year at the step-up date one year from closing if the aggregate collateral balance (defaulted obligations at the lower of Fitch and another rating agency's-calculated collateral value) is at least at the reinvestment target par balance and if the transaction is passing the collateral quality tests. Cash Flow Modelling (Positive): The WAL for the Fitch stress portfolio is 12 months shorter than the WAL covenant. This is to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period, which include coverage test satisfaction and the Fitch 'CCC' bucket limitation test after reinvestment as well as a WAL covenant that gradually steps down, both during and after the reinvestment period. Fitch believes these conditions reduce the effective risk horizon of the portfolio during a stress period. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (DR) across all ratings and a 25% decrease of the recovery rate (RR) of the identified portfolio across all ratings would not impact the class A notes and would lead to downgrades of two notches for the class B notes, one notch for the class C, D and E notes and to below 'B-sf' for the class F notes. Downgrades are based on the identified portfolio. They 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 rated notes display rating cushions of up to two notches. 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 of the mean DR and a 25% decrease of the RR of the Fitch-stressed portfolio across all ratings would lead to downgrades of up to four notches 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 of the mean DR across all ratings and a 25% increase in the RR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to three notches for the class B to E notes and five notches for the class F notes. Upgrades are based on the Fitch-stressed portfolio. During the reinvestment period, they 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 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 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 Harvest CLO XXXIV 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. INVESCO EURO V: Fitch Affirms 'B-sf' Rating on Class F Notes ------------------------------------------------------------ Fitch Ratings has assigned Invesco Euro CLO V DAC's class A-R refinancing notes a final rating and affirmed its non-refinanced notes, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Invesco Euro CLO V DAC A XS2269329921 LT PIFsf Paid In Full AAAsf A-R XS3036677501 LT AAAsf New Rating B-1 XS2269330184 LT AAsf Affirmed AAsf B-2 XS2269330341 LT AAsf Affirmed AAsf C XS2269330697 LT Asf Affirmed Asf D XS2269330853 LT BBB-sf Affirmed BBB-sf E XS2269331075 LT BB-sf Affirmed BB-sf F XS2269331232 LT B-sf Affirmed B-sf Transaction Summary Invesco Euro CLO V DAC is a cash flow CLO comprising mostly senior secured obligations. The transaction closed in January 2021, is actively managed by Invesco European RR L.P. and exited its reinvestment period in January 2025. The transaction has executed an amendment deed where it refinanced the class A notes and extended the weighted average life test end date to July 2030 from July 2029. KEY RATING DRIVERS 'B'/'B-' Portfolio Credit Quality: Fitch places the average credit quality of obligors at 'B'/'B-'. The weighted average rating factor, as calculated by Fitch, is 26.3. High Recovery Expectations: At least 92.5% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favorable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate of the current portfolio is 63.5%. Diversified Portfolio: The portfolio is well-diversified across obligors, countries and industries. The top 10 obligor concentration, as calculated by Fitch, is 20.3%, and no obligor represents more than 3.0% of the portfolio balance. The exposure to the three largest Fitch-defined industries is 32.9%, as calculated by the trustee. Fixed-rate assets are reported by the trustee at 5.4% of the portfolio balance compared with the maximum of 10% Affirmation of Non-Refinanced Notes: The affirmation of the non-refinanced notes reflects the transaction's stable performance. As of the last trustee report in March 2025, the transaction is passing all its tests except the Fitch 'CCC' test, which showed marginal failure. The transaction is currently 1.9% below par (calculated as the current par difference over the original target par). Exposure to assets with a Fitch-derived rating of 'CCC+' and below is 7.6%, according to the trustee, versus a limit of 7.5%. There are approximately EUR6.75 million of defaulted assets in the portfolio, but total par loss remains below its rating-case assumptions. Transaction Outside Reinvestment Period: The transaction exited its reinvestment period in January 2025, but the manager can still reinvest unscheduled principal proceeds and sale proceeds from credit-risk obligations, subject to compliance with the reinvestment criteria. Fitch's 'CCC' test has shown marginal failure and needs to be satisfied after the reinvestment period, but the manager may be able to cure it. Given the likelihood of the manager's ability to reinvest, Fitch's analysis is based on a stressed portfolio and tested the ratings achievable by the notes across the Fitch matrices, since the portfolio can migrate to different collateral-quality tests limits. Cash Flow Analysis: Fitch used a customised proprietary cash flow model to replicate the principal and interest waterfalls and the various structural features of the transaction, and to assess their effectiveness, including the structural protection provided by excess spread diverted through the par-value and interest-coverage tests. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Based on the current 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 occur on 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 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 Invesco Euro CLO V 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. JUBILEE CLO 2017-XIX: Fitch Assigns 'B-sf' Rating to Class F Notes ------------------------------------------------------------------ Fitch Ratings has assigned Jubilee CLO 2017-XIX DAC Reset notes ratings, as detailed below. Entity/Debt Rating ----------- ------ Jubilee CLO 2017-XIX DAC A1 Loan LT AAAsf New Rating A1 XS3035944001 LT AAAsf New Rating A2 XS3045520189 LT AAAsf New Rating B1 XS3035944696 LT AAsf New Rating B2 XS3035946634 LT AAsf New Rating C XS3035947012 LT Asf New Rating D XS3035947871 LT BBB-sf New Rating E XS3035948093 LT BB-sf New Rating F XS3035948259 LT B-sf New Rating Subordinated Notes XS1706230452 LT NRsf New Rating Transaction Summary Jubilee CLO 2017-XIX DAC is a securitisation of mainly senior secured obligations (at least 90.0%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds have been used to redeem the existing notes and fund a portfolio with a target par of EUR400 million. The portfolio is actively managed by Alcentra Ltd. The CLO has a 4.5-year reinvestment period and a 7.5-year weighted average life test (WAL). KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'. The Fitch weighted average rating factor of the identified portfolio is 25.5. 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 two sets of matrices. The first set comprises two matrices with fixed-rate assets limits of 10% and 5% and a 7.5- year WAL test. The second set comprises two matrices with the same fixed-rate asset limits and an extended 8.5-year WAL test. All matrices have the same top 10 obligor concentration limit at 20%. The manager can switch between the two sets of matrices subject to satisfaction of collateral quality tests and target par condition (with defaulted assets being carried at collateral value). The transaction also includes various concentration limits in the portfolio, including the maximum exposure to the three largest Fitch-defined industries at 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has a 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 used for the transaction stress portfolio is reduced by 12 months from the WAL covenant. This reduction to the risk horizon accounts for the strict reinvestment conditions envisaged by the transaction after its reinvestment period. These include, among others, passing both the coverage tests and the Fitch 'CCC' test post reinvestment as well as a WAL covenant that progressively steps down over time. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during the stress period. 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 satisfaction of coverage tests, collateral quality tests and target par condition (with defaulted assets being carried at collateral value) unless the manager has already switched to the extended WAL matrix, in which case only the coverage tests satisfaction condition apply. 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 lead to a downgrade of one notch for all debt apart from the class A-1 and A-2 notes. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of defaults and portfolio deterioration. Due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio, the class B to F notes have rating cushions of up to two notches. The class 'AAAsf' rated notes have no rating cushion as they are at the highest level on Fitch's scale. 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. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR across all ratings and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to three notches, 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 the Fitch-stressed portfolio, upgrades 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 occur on 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 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 Jubilee CLO 2017-XIX DAC - RESET. 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. JUBILEE CLO 2017-XIX: S&P Assigns B- (sf) Rating to F-R Notes ------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Jubilee CLO 2017-XIX DAC's class A-1-R loan and class A-1-R, A-2-R, B-1-R, B-2-R, C-R, D-R, E-R, and F-R notes. There are also unrated subordinated notes from the original transaction and the issuer has also issued an additional EUR22.20 million of subordinated notes. This transaction is a reset of the already existing transaction. The existing classes of notes--class A-1, A-2, B, C, D, E, and F-- were fully redeemed with the proceeds from the issuance of the replacement debt on the reset date. The ratings assigned to the reset notes and loan reflect our assessment of: -- The diversified collateral pool, which consists primarily of broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes and loan through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,863.39 Default rate dispersion 596.80 Weighted-average life (years) 4.01 Weighted-average life extended to cover the length of the reinvestment period (years) 4.50 Obligor diversity measure 120.36 Industry diversity measure 19.54 Regional diversity measure 1.17 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets, as of April 7th (%) 2.16 Target 'AAA' weighted-average recovery (%) 36.61 Target weighted-average spread (%) 3.90 Target weighted-average coupon (%) 2.64 Rating rationale Under the transaction documents, the rated notes and loan will pay quarterly interest unless a frequency switch event occurs. Following this, the notes and loan will switch to semiannual payments. The portfolio's reinvestment period will end approximately 4.5 years after closing. The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, S&P has conducted its credit and cash flow analysis by applying its criteria for corporate cash flow CDOs. S&P said, "In our cash flow analysis, we used the EUR400 million target par amount, the covenanted weighted-average spread (3.70%), the covenanted weighted-average coupon (4.00%), and the target weighted-average recovery rates at all rating levels, except for 'AAA', where we modeled the covenanted weighted-average recovery (36.50%) calculated in line with our CLO criteria for all classes of notes and the loan. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Under our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "Until the end of the reinvestment period on Oct. 15, 2029, the collateral manager may substitute assets in the portfolio for so long as our CDO Monitor test is maintained or improved in relation to the initial ratings on the notes and the loan. This test looks at the total amount of losses that the transaction can sustain as established by the initial cash flows for each rating, and it compares that with the current portfolio's default potential plus par losses to date. As a result, until the end of the reinvestment period, the collateral manager may through trading deteriorate the transaction's current risk profile, as long as the initial ratings are maintained. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "The transaction's legal structure and framework is bankruptcy remote, in line with our legal criteria. "Our credit and cash flow analysis indicate that the available credit enhancement for the class B-1-R to D-R notes could withstand stresses commensurate with higher rating levels than those we have assigned. However, as the CLO will be in its reinvestment phase starting from closing, during which the transaction's credit risk profile could deteriorate, we have capped our ratings assigned to the notes." The class A-1-R, A-1-R loan, and E-R notes can withstand stresses commensurate with the assigned ratings. For the class F-R notes, our credit and cash flow analysis indicates that the available credit enhancement could withstand stresses commensurate with a lower rating. However, S&P has applied its 'CCC' rating criteria, resulting in a 'B- (sf)' rating on this class of notes. The ratings uplift for the class F notes reflects several key factors, including: -- The class F notes' available credit enhancement, which is in the same range as that of other CLOs we have rated and that have recently been issued in Europe. -- The portfolio's average credit quality, which is similar to other recent CLOs. -- S&P's model generated break-even default rate at the 'B-' rating level of 26.10% (for a portfolio with a weighted-average life of 4.50 years), versus if it was to consider a long-term sustainable default rate of 3.1% for 4.50 years, which would result in a target default rate of 13.95%. -- S&P does not believe that there is a one-in-two chance of this note defaulting. -- S&P does not envision this tranche defaulting in the next 12-18 months. Following this analysis, S&P considers that the available credit enhancement for the class F-R notes is commensurate with the assigned 'B- (sf)' rating. S&P said, "Taking the above factors into account and following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe that our ratings are commensurate with the available credit enhancement for all the rated classes of notes and the loan. "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we have also included the sensitivity of the ratings on the class A-1-R to E-R notes, and A-1-R loan based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F-R notes." Environmental, social, and governance S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit (and or for some of these activities there are revenue limits or can't be the primary business activity) assets from being related to certain activities. Since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Jubilee CLO 2017-XIX is a cash flow CLO securitizing a portfolio of primarily European senior-secured leveraged loans and bonds. The transaction is managed by Alcentra Ltd. Ratings list Amount Credit Class Rating* (mil. EUR) Interest rate(%)§ enhancement (%) A-1-R AAA (sf) 194.00 3mE + 1.24 39.00 A-1-R loan AAA (sf) 50.00 3mE + 1.24 39.00 A-2-R AAA (sf) 4.00 3mE + 1.60 38.00 B-1-R AA (sf) 31.50 3mE + 1.93 27.00 B-2-R AA (sf) 12.50 4.70 27.00 C-R A (sf) 24.00 3mE + 2.50 21.00 D-R BBB- (sf) 28.00 3mE + 3.55 14.00 E-R BB- (sf) 18.00 3mE + 5.95 9.50 F-R B- (sf) 12.00 3mE + 8.70 6.50 Sub NR 65.00 N/A N/A *The ratings assigned to the class A-1-R loan, and class A-1-R, A-2-R, B-1-R, and B-2-R notes address timely interest and ultimate principal payments. The ratings assigned to the class C-R, D-R, E-R, and F-R notes address ultimate interest and principal payments. § The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. NR--Not rated. N/A--Not applicable. 3mE--Three-month Euro Interbank Offered Rate. KINBANE 2024-RPL 1: S&P Affirms 'B- (sf)' on Class F-Dfrd Notes --------------------------------------------------------------- S&P Global Ratings raised its credit ratings on Kinbane 2024-RPL 1 DAC's class B-Dfrd notes to 'AA+ (sf)' from 'AA (sf)', class C-Dfrd notes to 'A+ (sf)' from 'A (sf)', and class D-Dfrd notes to 'BBB+ (sf)' from 'BBB (sf)'. At the same time, S&P affirmed its 'AAA (sf)', 'BB (sf)', and 'B- (sf)' ratings on the class A, E-Dfrd, and F-Dfrd notes, respectively. The rating actions reflect its full analysis of the most recent transaction information and the transaction's structural features. Over 78% of the loans in the transaction at closing had been previously restructured, and 56.6% were at least one month in arrears. Since closing, loan level arrears have decreased to 51.1% from 56.6%, of which 41.8% (45.2% at closing) were 90+ days past due as of December 2024. The class A notes are paying down quickly with 17% principal paid since closing, increasing available credit enhancement. Additionally, as of the December 2024 interest payment date, the general reserve fund is at its target of EUR2.58 million, but some drawings have occurred since closing. The liquidity reserve fund remains at its target with no drawings since closing. Deferred interest is accruing on the class E-Dfrd and F-Dfrd notes (these tranches started to accrue interest from July 2024). The class E-Dfrd notes cleared accrued interest in January 2024 but started accruing again in February 2025. Payment rates (paid/amount due) remain stable especially for loans in severe arrears (more than three months in arrears). S&P said, "At closing, we applied a 100% weighted-average foreclosure frequency (WAFF) assumption at the 'AAA' and 'AA' rating levels for these loans. At all rating levels from 'A' to 'B', we gave credit to their payment rate and instead applied a 5x adjustment to the WAFF where the loans exceeded the 80% average payment rate, and that the servicer identified for permanent restructure. We continue to give benefit to payment rate to loans in severe arrears as payment rates are expected to be stable." The transaction benefits from yield supplement overcollateralization of 5.50%, which will be released to the revenue waterfall. On each interest payment date, principal equal to an annualized 0.55% of the outstanding portfolio balance will be transferred to the revenue waterfall to supplement the available revenue. This can provide additional funds during a period of stress, where the interest generated by the performing assets may be insufficient to cover revenue items. The transaction documents contain a contractual floor of one-month Euro Interbank Offered Rate plus 2.0% for variable rate loans. S&P gives credit to the floor in its analysis and applied it from closing for the loans serviced by Pepper and a year after closing for loans serviced by Mars. After applying S&P's global RMBS criteria, its credit coverage has decreased across all rating categories since closing, primarily due to a lower weighted-average loss severity (WALS) assumption. The pool also has a lower reperforming loan adjustment given the portfolio's increased seasoning since our previous review. Currently 34.0% of loans are classified as reperforming, down from 34.9% at closing. On Jan. 20, 2025, S&P updated its under- and overvaluation assessments for European residential real estate markets, reducing the WALS at all rating categories in the transaction. Portfolio WAFF and WALS Rating level WAFF (%) WALS (%) Credit coverage (%) AAA 72.77 17.76 12.92 AA 65.62 15.06 9.88 A 60.30 10.85 6.54 BBB 53.82 8.89 4.78 BB 46.18 7.60 3.51 B 44.46 6.46 2.87 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. S&P said, "We consider that the transaction remains vulnerable to additional stresses to some key variables, in particular defaults and loss severity, to determine our forward-looking view. In our view, borrowers' ability to repay their mortgage loans will be highly correlated to macroeconomic conditions, particularly the unemployment rate, consumer price inflation, and interest rates. "Policy interest rates in the eurozone may have peaked--the European Central Bank began cutting rates in the summer of 2024. Our unemployment rate estimates for Ireland in 2023 and forecasts for 2024 and 2025 are 4.3%, 4.1%, and 4.0%, respectively. Most borrowers in this transaction pay variable interest rates, which have seen higher rates and inflation effects over the last 24 months and may have exhausted savings to keep up with everyday payments. We have considered this in both our credit and cash flow analyses." Continued high inflation estimates in 2024 and forecasts for 2025 are subsiding at 2.3% and 2.1%, respectively. If inflationary pressures materialize more quickly or more severely than currently expected, risks may emerge. S&P considers the borrowers in this transaction to have been originated as prime but have seen performance deterioration and as such they will generally have lower resilience to economic pressures than prime borrowers. Furthermore, a decline in house prices typically decreases the level of realized recoveries. For Ireland in 2024, house prices increased by 9.5%, exceeding European-wide levels and observed inflation. A general housing market downturn may delay recoveries. S&P has also run extended recovery timings to understand the transaction's sensitivity to liquidity risk. S&P said, "Our 'AAA (sf)' rating on the class A notes reflects that they pass at their current rating level in all sensitivities in our cash flow analysis. The class B-Dfrd, C-Dfrd, D-Dfrd, and E-Dfrd notes pass at levels exceeding the assigned ratings in our standard run. However, under some of our sensitivity runs, notably increasing the WAFF and extending the recovery rates of the assets, these notes show some creditworthiness deterioration closer to their current ratings. The class F-Dfrd notes do not pass the stresses applied at our 'B' rating level therefore, we applied our 'CCC' criteria. We performed a qualitative assessment of the key variables, along with simulating a steady state scenario in our cash flow analysis. The class F-Dfrd notes pass this scenario. We therefore do not consider their repayment to be dependent upon favorable business, financial, and economic conditions, and we affirmed the 'B- (sf)' rating." Kinbane 2024-RPL 1 DAC is a static RMBS transaction that securitizes a portfolio of reperforming owner-occupied and buy-to-let mortgage loans, secured over residential properties in Ireland. The transaction closed in April 2024 and the first optional redemption date is in April 2027. SOUND POINT IV: Fitch Assigns 'B-sf' Final Rating to Cl. F-R Notes ------------------------------------------------------------------ Fitch Ratings has assigned Sound Point Euro CLO IV Funding DAC reset final ratings, as detailed below. Entity/Debt Rating ----------- ------ Sound Point Euro CLO IV Funding DAC A-R XS3029435834 LT AAAsf New Rating B-R XS3029436055 LT AAsf New Rating C-R XS3029435917 LT Asf New Rating D1-R XS3029436139 LT BBB-sf New Rating D2-R XS3029436303 LT BBB-sf New Rating E-R XS3029436212 LT BB-sf New Rating F-R XS3029436485 LT B-sf New Rating Subordinated notes XS2249776894 LT NRsf New Rating X-R XS3030374543 LT AAAsf New Rating Transaction Summary Sound Point Euro CLO IV Funding DAC reset 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 EUR400 million and redeem existing notes. The portfolio is actively managed by Sound Point CLO C-MOA, LLC. The 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 closing. 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 25.7. 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 64.2%. Diversified Portfolio (Positive): The transaction includes six Fitch matrices. Four are effective at closing, with two corresponding to an eight-year WAL and another two corresponding to a nine-year WAL. For each WAL there can be two different fixed-rate asset limits of 7.5% and 12.5%. The remaining two matrices are effective two years after closing, corresponding to a seven-year WAL with a collateral principal amount at least equal to reinvestment target par balance and two different fixed-rate asset limits of 7.5% and 12.5%. 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 conditions including the satisfaction of collateral quality tests and the adjusted collateral principal balance being at least at the reinvestment target par, unless the manager has already 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 about 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 issue date, to account for structural and reinvestment conditions post-reinvestment period, including the coverage tests and Fitch 'CCC' limitation passing post reinvestment. 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) across all ratings and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no impact on the class X-R, A-R and F-R notes and lead to downgrades of two notches for the class B-R and C-R notes, and one notch for the class D1-R, D2-R and E-R notes. 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. Owing to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio, the class C-R notes display a rating cushion of one notch, the class B-R, D1-R, D2-R and E-R notes of two notches, and the class F-R notes of five notches. The class X-R and A-R notes display 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 across all ratings, 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 for the class A-R to D2-R notes and to below 'B-sf' for the class E-R and F-R notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction in the mean RDR across all ratings and a 25% increase in the RRR across all the ratings of the Fitch-stressed portfolio would lead to upgrades of up to five 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 the Fitch-stressed portfolio, upgrades 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 occur on 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 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 Sound Point Euro CLO IV 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. =================== L U X E M B O U R G =================== ALTISOURCE PORTFOLIO: Narrows Net Loss to $35.4 Million in 2024 --------------------------------------------------------------- Altisource Portfolio Solutions S.A. filed with the U.S. Securities and Exchange Commission its Annual Report on Form 10-K reporting a net loss of $35.4 million on $160.1 million of revenues for the year ended Dec. 31, 2024, compared to a net loss of $56.1 million on $145.1 million of revenues for the year ended Dec. 31, 2023. As of Dec. 31, 2024, the Company had $143.6 million in total assets, $300.3 million in total liabilities, and a total stockholders' deficit of $156.7 million. A full-text copy of the Company's Form 10-K is available at: https://tinyurl.com/ycxmyrhf About Altisource Headquartered in Luxembourg, Altisource Portfolio Solutions S.A. -- https://www.Altisource.com/ -- is an integrated service provider and marketplace for the real estate and mortgage industries. Combining operational excellence with a suite of innovative services and technologies, Altisource helps solve the demands of the ever-changing markets it serves. * * * In March 2025. S&P Global Ratings raised its issuer credit rating on Altisource Portfolio Solutions S.A. to 'CCC+' from 'SD'. S&P said, "We also assigned our 'B' issue-level rating and '1' recovery rating to the new $12.5 million senior secured debt (super senior facility), 'CCC-' issue-level rating and '6' recovery rating to the new $160 million senior subordinated debt (new first lien loan), and withdrew our ratings on the company's exchanged senior secured term loan, which was rated 'D'. "The stable outlook reflects our expectation that over the next 12 months, while we expect Altisource to generate positive cash flow from operations, we believe its liquidity will remain constrained and the company will remain dependent on favorable financial and economic conditions to meet its financial commitments. RADAR TOPCO: Fitch Alters Outlook on 'BB-' Long-Term IDR to Stable ------------------------------------------------------------------ Fitch Ratings has revised the Outlook on Radar Topco SARL's (Swissport) Long-Term Issuer Default Rating (IDR) to Stable from Positive and affirmed the IDR at 'BB-'. Fitch has also affirmed theEUR1.3 billion (equivalent) term loan B (TLB) due 2031 issued by Swissport's subsidiary Radar Bidco SARL at 'BB+' with a Recovery Rating of 'RR2'. The Outlook revision is driven by its revised forecasts and the increasing of the TLB last year leading to forecast EBITDAR leverage remaining above the positive sensitivity of 3.8x. Fitch has reduced its volume growth expectations, particularly for 2025, due to ongoing trade conflicts and some air travel demand softness in the US. The IDR reflects Swissport's market position in global ground and cargo handling, contracted business model and diversified customer base. The rating also reflects the company's capital structure, which was refinanced in 2024, leading to good liquidity and limited near term funding requirement Key Rating Drivers Slower Deleveraging: Fitch expects deleveraging towards its positive guidelines for the 'BB-' rating to be slower than previously expected with EBITDAR leverage declining to 4.1x by 2027 from 4.4x at end-2024. This is due to a higher gross debt after the TLB increase of about EUR100 million and its revised forecasts reflecting slightly slower EBITDAR growth. Fitch now expects the EBITDAR leverage to be well placed in the rating sensitivities, leading to the revision of the Outlook to Stable. Strong 2024 Performance: Swissport's robust 2024 performance was highlighted by 27% higher Fitch-defined EBITDAR to EUR460 million, driven by robust performance in ground handling and cargo activities. Ground handling volumes surpassed 2019 levels for the first time, fuelled by strong global passenger demand and good commercial performance. Cargo volumes returned to growth after two years of post-pandemic normalisation with tonnage handled nearing the 2021 peak. Management also continued implementing its cost optimisation plan that resulted in EUR32 million savings during 2024. Softer Near-term Industry Outlook: Weakness in US domestic air passenger volumes as well as the potential impact from the tariff disputes, primarily on US cargo imports, point to a weaker industry environment in 2025, although Fitch expects the rest of the world to continue to trend positively. A wider recessionary scenario, currently not its base case. could lead to further weakness in volumes compared with its current forecasts. Fitch continues to expect air passenger volumes to trend towards their long-term mid-single digit growth trajectory. Swissport's business profile offers some resilience as its ground handling (55% of EBITDAR) is more exposed to flight frequency than passenger volumes. However, cargo volumes (45% of EBITDAR), remain exposed to the macro-economic situation, mitigated by the company's strong market position, which could enable it to continue growing its contract portfolio. Moderate Expected EBITDA growth: Fitch expects 5% CAGR of Swissport's EBITDAR from 2024 to 2027 driven by its revised forecasts of mild ground handling and cargo volume growth and pricing broadly in line with 2024. EBITDA generation will also be supported by management's efficiency plan, which aims to generate an about EUR40 million impact on EBITDA from 2025 to 2027. Steady Cash Flow Generation: Swissport's asset-light business model and satisfactory EBITDA margin (around 8%) allow for consistently positive free cash flow (FCF) generation. Bond repricing in October 2024 allowed the company to reduce its interest margin by 50bp, supporting cash-flow generation. Its forecast includes an average EUR23 million yearly cash absorption from working capital and capex intensity (excluding leases) of around 2.6% of revenues. Fitch still expects FCF generation to average about EUR50 million a year in 2025 to 2027, with about 1.3% of FCF conversion in absence of dividends or M&A. Robust Business Profile: Swissport holds strong market positions in ground and cargo handling for B2B aviation services, with a global footprint. The company operates under the International Air Transport Association's standard ground handling agreement, which typically spans three to five years and includes cost-escalation clauses to mitigate inflation risks, ensuring stability and predictability in its contracted business model. Peer Analysis Fitch views Avia Solutions Group (ASG) Public Limited Company (BB/Stable) as a peer for Swissport given B2B aviation services offerings by both companies. Specific services between the two differ, but Fitch sees underlying linkage to the aviation industry dynamics as comparable. Fitch views Swissport's business profile as broadly comparable with that of Avia Solutions, which benefited from a faster post-pandemic recovery, has faster growth prospects and benefits from a wider range of services although some could be volatile. Swissport benefits from a larger revenue base, better contracted business profile and greater geographical diversification. Compared with Inpost S.A. (BB/Positive), Swissport has stronger barriers to entry and greater geographic diversification, but Inpost generates higher EBITDA margins. Swissport's credit profile places it adequately in the 'BB' rating category, given its financial leverage, and is comparable with Avia and Inpost, and better than that of SGL Group ApS (B/Stable), whose small size, lower debt capacity and credit metrics place it in the 'B' rating category. Key Assumptions Low-to-mid single-digit growth in ground handling and cargo volumes and pricing to 2027 Stable EBITDAR margin at 13% in 2027 Stable capex at around 2.5% of sales to 2027 Cash interest rate averaging 6.3% to 2027 No dividends, and no M&A to 2027 RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDAR gross leverage above 4.8x on a sustained basis - EBITDAR fixed charge coverage below 1.5x on a sustained basis - Structural or cost inflation-driven decline in EBITDAR margins to below 10% Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDAR gross leverage below 3.8x on a sustained basis - EBITDAR fixed charge coverage above 1.8x on a sustained basis Liquidity and Debt Structure At end-2024, Swissport had EUR630 million of liquidity including EUR470 million of readily-available-cash and a EUR160 million revolving credit facility. The TLB increase in October 2024 added about EUR100 million of cash on balance sheet, supporting liquidity. Fitch views the expected positive FCF as sufficient to cover small debt maturities by 2027 (including Cares Act loan which the management plans to repay within three years) and do not expect any excess cash flow pre-payment to the TLB. Fitch does not anticipate dividends distribution or M&A and expect the revolving credit facility to remain undrawn by 2027. 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 ----------- ------ -------- ----- Radar Topco SARL LT IDR BB- Affirmed BB- Radar Bidco SARL senior secured LT BB+ Affirmed RR2 BB+ ========= S P A I N ========= LAR ESPANA: Fitch Affirms Then Withdraws 'BB-' IDR, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Lar Espana Real Estate SOCIMI, S.A.'s Long-Term Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook and senior unsecured rating at 'BB-', and simultaneously withdrawn all ratings. Lar España's ratings reflect its strategy to re-leverage itself to around 60% loan-to-value (LTV) after the company was taken private in December 2024, resulting in Fitch-calculated net debt/EBITDA of 12.5x by end-2025. Fitch anticipates some continuity in Lar España's business plan under the new board, capitalising on the Spanish shopping centre company's dominant catchment areas and ongoing active management to drive cash flow generation, despite the acquisition-led increase in leverage. Fitch has withdrawn Lar Espana's ratings for commercial reasons and will no longer provide ratings and analytical coverage on it. Key Rating Drivers Re-leveraging Strategy: The acquisition of Lar España by Hines European Real Estate Partners III and Grupo Lar took place in December 2024. The new owners intended to re-leverage Lar España to around 60% LTV upon their acquisition of the company in December 2024. Lower Financial Flexibility: The re-leveraging involves repayment of bridge funding at the Bidco level, with a debt restructuring in two phases. First, EUR651 million of bank financing to facilitate 2024's prepayment of EUR581 million bonds and EUR70 million in European Investment Bank debt. Second, EUR139 million new debt would bring the group's unsecured debt to EUR790 million. Dominant Catchment Stability: Lar España's assets have sustained dominance within their catchment areas, as reflected in a strong 2023 operational performance. Tenants' like-for-like brand sales grew by 8%, contributing to a 16% year-on-year increase in like-for-like gross rental income, of which 7% was due to indexation. The momentum continued into 1H24, with a 6.6% like-for-like increase in gross rental income, despite lower inflation. This growth was bolstered by a 4.9% rise in tenants' sales, driven by notable performances in fashion, and health and beauty. High Occupancy Rate: The strategic locations of its retail assets are also reflected in their average occupancy rate of 96% in 1H24 (end-2023: 97%). Gran Via de Vigo had a 2023 occupancy rate of 98%, despite the introduction of the competing Vialia shopping centre within its catchment area. Proactive leasing strategies and investment of about EUR5 million in refurbishment and repositioning underscore stable demand. Higher rents and limited capex needs across the rest of the portfolio, despite retail challenges such as inflation and rising mortgage rates, reflect the sites' strong positioning. The increased occupancy cost ratio of 10.2% (2022: 9.2%) indicates affordable rents for tenants. Omnichannel Approach Increasing Tenants' Sales: The rise in sales for Lar España's tenants' brands is supported by omnichannel initiatives that improve the number of customer visits and dwell times. These include Lar España's discount app, "El Club de los Disfrutones", a new online sales platform that has already been implemented at Lagoh, and a pilot programme designed to facilitate tracking of key performance indicators. This enhances the overall customer experience and promotes stronger collaborative partnerships with tenants. Peer Analysis At end-2023, Lar España's portfolio was valued at EUR1.3 billion, with 12 retail assets primarily anchored by grocery stores, enhanced by food and leisure amenities. The average property size of 40,000 sqm surpasses that of Castellana Properties Socimi, S.A. (BBB-/Positive; EUR1.0 billion, 20,000 sqm) and IGD SIIQ S.p.A. (BBB-/Stable; EUR2.1 billion, 25,000 sqm), although IGD has a larger total portfolio. Lar España's focus on regional convenience-led retail properties has been resilient against economic challenges such as inflation and rising mortgage rates, which have been significant in Spain due to the prevalence of floating-rate mortgages. In 2023, its portfolio achieved strong rental collections and operational metrics, exceeding pre-pandemic levels, aided by slower e-commerce growth in Spain, with major tenant Mercadona reporting only 2% online sales. Lar España's active management strategy involves re-leasing, refurbishment, and repositioning to meet changing demands, supported by moderate capex and increased footfall, leveraging grocery visits to boost site dominance. Along with affordable rents, this strategy distinguishes Lar España from operators with city-centre shopping centres like Unibail-Rodamco-Westfield SE (BBB+/Stable), Klepierre SA (BBB+/Stable) and Hammerson plc (BBB/Positive), which face more competition and higher e-commerce exposure. NewRiver REIT plc (BBB/Stable) has a convenience-led portfolio with non-prime assets yielding 7.4%, leading to a lower net debt/EBITDA threshold. In contrast, Castellana Properties and IGD maintain net debt/EBITDA of 8x-9x with yields of 5%-6%. Larger, diversified groups like Hammerson and Unibail have higher debt capacity, with Unibail's net debt/EBITDA at 9.5x-10.5x for its 'BBB+' rating and Hammerson at 8.5x-9.5x for its 'BBB'. Key Assumptions Fitch's Key Assumptions Within Its Rating Case for the Issuer: - Lease expiries averaging 20% of rent a year, re-leased at the previous passing rent plus 2% on average (excluding CPI uplift), for 2024-2027 - Annual CPI during 2024-2027 averaging 2% - Total dividends of EUR353 million raised in 2025 - Capex allocations mostly for maintenance - No disposals or acquisitions during 2024-2027 - Target LTV around 65% RATING SENSITIVITIES Not applicable as the ratings have been withdrawn. Liquidity and Debt Structure Lar España had lower liquidity after the take-private bid. It planned a two-tranche repayment of its EUR651 million gross debt. By end-2024, a syndicate bank loan would cover the full amount, fixed at 3.5%, facilitating the prepayment of EUR581 million in unsecured bonds that have a change of control clause. The loan will remain unsecured for the first 24 months from signing, after which 75% of the loan will be secured, progressing to 100% secured after 30 months. At the most recent update, the company expected the remaining EUR70 million EIB debt to be settled in January 2025, temporarily increasing gross debt to EUR721 million by end-2024. In February 2025, a second tranche of EUR139 million was expected to be financed, stabilising the final debt at EUR790 million after the EIB repayment. The company planned to pay two dividends to the Helios Bidco at the most recent update: EUR214 million in February 2025 and EUR139 million around February-March 2025, totalling EUR353 million. These dividends would repay the equity bridge financing at the Bidco level, significantly reducing available cash by end-2025. Issuer Profile Lar España is an all-retail Spanish real estate SOCIMI (REIT-equivalent status) with a portfolio of nine regional shopping centres and three retail parks totalling EUR1.3 billion in value at end-December 2023. 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 ----------- ------ -------- ----- Lar Espana Real Estate SOCIMI, S.A. LT IDR BB- Affirmed BB- LT IDR WD Withdrawn senior unsecured LT BB- Affirmed RR4 BB- senior unsecured LT WD Withdrawn =========== T U R K E Y =========== TAM FINANS: Fitch Affirms 'B' Long-Term IDR, Outlook Stable ----------------------------------------------------------- Fitch Ratings affirmed Tam Finans Faktoring A.S.'s Long-Term Foreign-Currency and Local-Currency Issuer Default Ratings (IDRs) at 'B'. The Outlooks are Stable. At the same time, Fitch has affirmed Tam Finans' National Rating at 'BBB+(tur)' with a Stable Outlook. The affirmation of the IDRs reflects Tam Finans' resilient financial performance, profitable growth in a niche sector and short-term balance sheet that enables quick adjustment to external shocks. However, its rating reflects deterioration in asset quality and high leverage by international standards. Key Rating Drivers Intrinsic Profile Drives Ratings: Tam Finans' ratings are driven by its intrinsic credit profile, reflecting the company's small franchise and a business model focused on higher-risk small businesses operating in an improving but still challenging operating environment, rising credit losses in 2024 and high leverage. The ratings also reflect consistently strong profitability, a granular portfolio, low market risk, a liquid balance sheet and diversified, albeit largely secured, funding sources. Still High Leverage Despite Improvements: Tam Finans' gross debt/tangible equity ratio (end-2024: 8.1x) has improved compared to 2023 (9.7x), but remains considerably higher than the sector average (4.2x) and reflects its high tolerance for leverage. Tam Finans traditionally prefers to run with high leverage and this strategy is likely to be maintained under the new shareholder structure. Tam Finans' total equity has grown 3x in US dollar terms since end-2021, with the help of strong profitability and full profit retention, reflecting the strong execution record. However, high leverage weakens its buffer against potential losses in Turkiye's improved but still volatile operating environment. Inflation and appetite for aggressive growth continue to drive overall asset expansion. Limited Market Risk, Improving Funding: Tam Finans' highly liquid balance sheet supports funding and liquidity. Market risk exposure is low, given the predominantly lira-denominated balance sheet and low sensitivity to interest-rate risk, as assets and liabilities are short dated and broadly matched in maturities. Funding is predominantly secured by receivables, and mostly from local banks. Fitch believes overall funding conditions improved for Turkish non-bank financial institutions in 2024. Access to foreign funding markets increased and alternative funding options (securitisations) are becoming increasingly viable, which would improve diversification in the medium term. Sound Profitability: In 2024, Tam Finans' pre-tax income/average assets ratio was 9.8% (2023: 9.1%) and pre-tax income/average equity ratio was 90% (2023: 88%), reflecting strong core profitability despite inflation. Its business model provides wider margins than peers and its labour-intensive nature also highlights the importance of managing costs and gaining further scale. Its cost/income ratio improved to 39% in 2024 (2023: 45%), still considerably higher than the sector average of 23%. Profitability is strong, but Fitch expects it to moderate in 2025 and 2026, due to gradual slowdown in growth and lower margins. High Credit Losses in 2024: Tam Finans' impaired receivables/gross receivables ratio increased sharply to 4.6% at end-2024 (2023: 1.5%). Impaired assets were fully covered by loss provisions. Impairment charges at 4.6% of average receivables in 2024 were also more than double the 2020-2023 average of 2.2%. Fitch believes asset quality deterioration reflects the sensitivity of Tam Finans' clientele to economic slowdown, higher interest rates and the challenging operating environment. Fitch expects credit losses in 2025 to remain lower than 2024 but higher than longer-term averages, reflecting the continued challenges in Turkiye's operating environment. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A deterioration in the domestic operating environment affecting both asset quality and earnings would lead to a further lower tolerance for leverage and, consequently, a downgrade. A material and sustained increase in gross debt/tangible equity to above 10x, combined with a weakened operating environment, could lead to a downgrade of the Long-Term IDRs, primarily due to weakened access to funding and liquidity, as would a sharp deterioration in asset quality or profitability that increases solvency risk. Deterioration of these factors relative to domestic peers could lead to a downgrade of the National Rating. Fitch's recalibration of its National Rating mapping may also result in a downward revision of Tam Finans' National Ratings. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Continued improvements in Turkiye's operating environment, coupled with resilient performance and further improvements in the business profile could lead to an upgrade, although Fitch views this as unlikely in the medium term given Tam Finans' small size in the Turkish financial system. Significantly improved creditworthiness relative to domestic peers, could also result in an upgrade of the National Rating. Fitch's recalibration of its National Rating mapping may result in an upward revision of its National Ratings. ADJUSTMENTS The sector risk operating environment score has been assigned below the implied score due to the following adjustment reason(s): sovereign rating (negative), macroeconomic stability (negative). The earnings & profitability score has been assigned below the implied score due to the following adjustment reason(s): portfolio risk (negative), adjusted profitability (negative). The funding, liquidity & coverage score has been assigned above the implied score due to the following adjustment reason(s): business model/funding market convention (positive). 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 ----------- ------ ----- Tam Finans Faktoring A.S. LT IDR B Affirmed B ST IDR B Affirmed B LC LT IDR B Affirmed B LC ST IDR B Affirmed B Natl LT BBB+(tur) Affirmed BBB+(tur) =========================== U N I T E D K I N G D O M =========================== ARROW FILM: Interpath Named as Joint Administrators --------------------------------------------------- Arrow Film Converters Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Leeds Insolvency and Companies List (ChD) No CR-2025-LDS-000331, and James Richard Clark and Howard Smith of Interpath Advisory, Interpath Ltd. were appointed as joint administrators on April 1, 2025. Arrow Film specialized in packaging activities. Its registered office is at Unit 3 Speedwell Road, Whitwood, Castleford WF10 5PY. The joint administrators can be reached at: Howard Smith James Richard Clark Interpath Advisory, Interpath Ltd 4th Floor, Tailors Corner Thirsk Row, Leeds LS1 4DP Further details, contact: Ellie Underwood Email: arrowfilm@interpath.com ATS MINI: Quantuma Advisory Named as Administrators --------------------------------------------------- ATS Mini Skips Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts Court Number: CR-2025-002218, and Nicholas Charles Simmonds and Chris Newell of Quantuma Advisory Limited, were appointed as administrators on March 28, 2025. ATS Mini specialized in the collection of non-hazardous waste. Its registered office is at Unit 1-3 Oyster Haven, Haven Road, Colchester, CO2 8HT and it is in the process of being changed to 1st Floor, 21 Station Road, Watford, Herts, WD17 1AP. Its principal trading address is at Unit 1-3 Oyster Haven, Haven Road, Colchester, CO2 8HT. The administrators can be reached at: Nicholas Charles Simmonds Chris Newell Quantuma Advisory Limited 1st Floor, 21 Station Road Watford, Herts, WD17 1AP For further details, please contact: Richard Sutcliffe Tel No: 07469 311101 Email: richard.sutcliffe@quantuma.com DRAX GROUP: Fitch Affirms 'BB+' Long-Term IDR, Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed Drax Group Holdings Limited's Long-Term Issuer Default Rating (IDR) at 'BB+' with a Stable Outlook, and Drax Finco Plc's senior secured notes at 'BBB-' with a Recovery Rating of 'RR2'. The affirmation reflects Drax's solid performance in 2024, comfortable leverage headroom through the forecast horizon and the short-term improvement in earnings predictability, driven by the introduction of the contract for difference (CfD) bridging mechanism for biomass plants until March 2031 and ongoing diversification. Fitch has limited visibility on Drax's long-term business profile, given the importance of the strategic decision the company is to make about the bioenergy carbon capture and storage (BECCS). However, Fitch expects the company to remain committed to the current rating, implementing supporting measures if needed. Drax targets leverage of net debt to adjusted EBITDA below 2x, consistent with the current rating. Key Rating Drivers Visibility from Bridging Mechanism: Drax's new CfD mechanism, secured at an inflation-linked strike price of GBP113/MWh (2012 prices) extends cash flow visibility for the biomass units to March 2031 from March 2027. Fitch expects the CfD mechanism, with flexible generation and ancillary services, to contribute about GBP100 million of EBITDA annually. However, the CfD only covers a load factor of up to 27% across all four Drax units, implying a material drop compared to the average output of these units of 13TWh, or 56% of maximum output in FY21-FY24 (ending December 2024). Drax maintains flexibility to produce energy beyond the 6TWh cap on a fully merchant basis, but this is not in its forecasts given the high production cost of these units. Short-Term Earnings Predictability: Drax's short-term earnings predictability is solid, with support schemes for its biomass units accounting for about 70% of total projected EBITDA until 2026. Near-term visibility is supported by a rolling hedging policy covering about two years for the renewable obligation-supported biomass units. The group also has around GBP595 million (real terms, 2024-2025 prices) in capacity agreements for hydro and Open-Cycle Gas Turbines (OCGTs) expiring between 2025 and 2042. Strategic Asset-Diversification Initiatives: Drax is investing to diversify its generation capacity, including the 40MW Cruachan I pumping hydro expansion (operational by 2027) and an option for the 600MW Cruachan II expansion (final investment decision expected by 2026), alongside the recent battery storage acquisition which is yet to be completed. This strategy will diversify the company's earnings, although it could its increase merchant exposure. The impact of the capital allocation on the group's earnings visibility remains uncertain, and Fitch will monitor the consistency of its debt capacity with the group's business mix. Battery Storage Acquisition: Fitch expects Drax's GBP200 million acquisition (excluding debt) of Harmony Energy Income Trust (HEIT), a 395MW battery storage company, to improve cash flow visibility and asset diversification, in line with its strategy to invest in flexible generation and system balancing. Its forecast includes HEIT's GBP130 million seven-year debt facility and about GBP25 million in annual EBITDA. Sufficient Leverage Headroom: Fitch expects Drax's funds from operations (FFO) net leverage to increase to 2.2x in 2026 (negative rating sensitivity of 2.8x), mainly due to lower EBITDA resulting from declining electricity prices and reduced biomass output, partially offset by the commissioning of the 0.9GW OCGTs and the HEIT acquisition. Fitch expects Drax to maintain FFO net leverage at around 1.9x in FY27-FY28, supported by a GBP500 million cash inflow at the end of the renewable obligation certificate scheme in 2027, and despite an expected EBITDA decline during the transition to the bridging mechanism from 2027. Strong Operational Performance: Drax's FFO net leverage was 1.5x in 2024 (1.8x in 2023), strongly positioned for the rating. The low leverage mainly reflects the group's disciplined approach to debt-funded growth, high electricity prices and GBP111 million of working-capital inflows, as high collateral requirements incurred previously gradually reverse, mirroring decreasing electricity prices. Fitch projects FFO to normalise at an average of around GBP430 million by 2028, reflecting a lower energy price environment. Biomass Future Uncertainty: Fitch views the future of biomass in the UK's energy system as uncertain. The UK government acknowledges biomass generation as a low-carbon source and the potential role of BECCS in the UK's decarbonisation. However, the government's willingness to support BECCS as a long-term solution remains unclear, which limits the visibility of Drax's long-term business profile. Potential for Data Centre PPAs: Drax plans to establish long-term power purchase agreements (PPAs) for behind-the-meter connections, targeting large-scale data centres. Drax aims to host a 100MW data centre by 2030, with potential expansion to 1.2GW, benefiting from its ownership of about 250 acres around its power station. This model offers data centres significant network charge savings and access to low-carbon energy. Drax would sell or lease the land and provide renewable energy to the data centre, not own the centre itself. Peer Analysis Drax has stronger credit metrics, a more conservative financial policy and a size advantage over Energia Group Limited (BB/Stable). Fitch estimates average FFO net leverage of 1.9x at Drax compared with 2.4x at Energia for 2025-2028. Drax also has substantially stronger credit metrics than SSE plc (BBB+/Stable), with average FFO net leverage of 4.2x in 2025-2027. This is largely offset by SSE's higher debt capacity, which reflects its more robust business profile due to its larger size and focus on UK regulated transmission and distribution networks together with other developed and high-quality markets. Key Assumptions - Normalised power price assumptions at around GBP70/MWh by 2027 for uncontracted renewable obligation certificate unit volumes, based on forward prices - CfD bridging mechanism operating from April 2027 at GBP113/MWh (2012 prices) capped at 6TWh biomass generation output - Annual capex of GBP300 million-350 million - GBP200 million battery storage acquisition in 2025, contributing around GBP25 million annual EBITDA from 2026 and GBP130 million to total debt in 2025 - EBITDA includes full OCGT production from 2026 - Growth and efficiency in pellet production capacity combined with repricing supporting robust EBITDA increase in the segment to 2028 - Capacity market and ancillary services EBITDA in line with management's guidance - Working capital, dividend payout and share buybacks in line with management projections - Refinancing of some maturing debt at a higher interest cost RATING SENSITIVITIES Factors that Could, Collectively or Individually, Lead to Negative Rating Action/Downgrade - Higher-than-expected increase in merchant and non-contracted EBITDA - FFO net leverage above 2.8x, for example, due to a major debt-funded acquisition - A change to the regulatory framework with a material negative impact on profitability and cash flow Factors that Could, Collectively or Individually, Lead to Positive Rating Action/Upgrade - Sustained high share of contracted or quasi-regulated EBITDA, along with tangible progress towards achieving long-term visibility in the group's business mix and earnings profile - FFO net leverage sustained below 1.8x Liquidity and Debt Structure At end-2024, Drax had cash and cash equivalents of GBP356 million with access to a revolving credit facility with an undrawn committed amount of GBP450 million (maturing 2027). The next significant maturity is the EUR250 million notes due in November 2025, of which EUR144 million (GBP119 million) remains outstanding following a completed tender offer in May 2024. Fitch expects Drax to be able to cover its debt obligations over the next 12 months with available liquidity of about GBP800 million. Issuer Profile Drax operates an integrated value chain across wood pellet production in North America, electricity generation and energy supply to business customers in the UK. 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 Drax has an ESG Relevance Score of '4' for Energy Management. This reflects supply risk for its large biomass generation business and the long and complex environmental impact of the biomass supply chain. These factors could affect capacity utilisation and cash flow, negatively affecting the credit profile, and is relevant to the rating in conjunction with other factors. 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 ----------- ------ -------- ----- Drax Finco Plc senior secured LT BBB- Affirmed RR2 BBB- Drax Group Holdings Limited LT IDR BB+ Affirmed BB+ senior secured LT BBB- Affirmed RR2 BBB- KNOWLEDGEMOTION LTD: Kroll Advisory Named as Administrators ----------------------------------------------------------- Knowledgemotion Ltd was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List (ChD), Court Number: CR-2025-002269, and Benjamin John Wiles and Robert Goodhew of Kroll Advisory Ltd, were appointed as administrators on April 1, 2025. Knowledgemotion Ltd specialized in television programming and broadcasting activities and educational support services. Its registered office and principal trading address is at 3rd Floor 1 Ashley Road, Altrincham, Cheshire, United Kingdom, WA14 2DT. The administrators can be reached at: Benjamin John Wiles Robert Goodhew Kroll Advisory Ltd The Shard, 32 London Bridge Street London, SE1 9SG Further details contact: Harriet Hurst Tel No: +44 (0) 207 029 5217 Email: Harriet.Hurst@Kroll.com PHARMANOVIA BIDCO: Fitch Lowers LongTerm IDR to 'B', Outlook Neg. ----------------------------------------------------------------- Fitch Ratings has downgraded Pharmanovia Bidco Limited's (formerly Atnahs) Long-Term Issuer Default Rating (IDR) to 'B' from 'B+'. The Outlook is Negative. Fitch has also downgraded the company's EUR980 million term loan's senior secured rating to 'B+' from 'BB-'. The Recovery Rating remains 'RR3'. The downgrade follows Pharmanovia's material underperformance in 9MFY25 (financial year ending March) coupled with a lack of visibility on its recovery path. The Negative Outlook reflects the high level of uncertainty regarding the company's strategic direction following the resignations of two top executives and the lack of visibility of a turnaround plan amid a material underperformance in FY25, which informs its Negative Outlook. Fitch expects to gain a better understanding of Pharmanovia's medium-term prospects upon receipt of a new budget developed under the new leadership. Key Rating Drivers EBITDA Contraction in FY25: Fitch expects EBITDA to contract further in FY25 from an already weak EUR149 million in FY24. The initially expected EBITDA improvement in 2HFY25, caused by sales-phasing in indirect channels, is not materialising based on 3QFY25 reported numbers, with the EBITDA margin falling almost 20bp short of the budget. This is due to multiple operational issues, such as supplier challenges, inventory alignment and labelling errors in China. Low visibility of 4QFY25 EBITDA recovery makes it very likely that FY25 EBITDA will result in higher leverage. FY25 EBITDA is supported by the integration of the Ellipse acquisition, which is the only brand to have outperformed budget. Elevated Leverage: Fitch expects FY25 leverage to be well outside its sensitivities of 5.5x for a 'B+' rating, leading to the IDR downgrade. Any further underperformance in 4QFY25 versus last year will bring leverage to an unsustainable level for a 'B' rating. A rebound to more usual margins, at the upper end of 30%, in the coming quarter is needed to return leverage to more sustainable territory below 6.5x, which is the negative sensitivity for a 'B' rating. High Execution Risk: The change in management team, lack of guidance for FY25 onwards and the urgent need to address multiple operational issues result in high execution risk. There is a lack of visibility on the company's medium-term strategy, including how and when the recently announced cost-cutting project will benefit the bottom line. The company still faces execution risk in China due to evolving regulation, which accounts for 20% to 25% of its sales. Liquidity Remains Adequate: Pharmanovia has had healthy FCF margins due to its asset-light model with limited capex needs, certain contingent consideration payments and manageable interest costs. Internal cash flow generation in a more normal environment allows the company to sustain earnings from its portfolio of drugs, self-fund much of its growth and maintain adequate financial flexibility. The asset-light model is still helpful during topline underperformance to limit cash leakage. At end 3QFY25, the company had EUR9 million of unrestricted cash on balance sheet and EUR178 million available under its EUR203 million revolving credit facility (RCF), which supports an adequate liquidity position. Reconfiguring Portfolio: Fitch expects the company to prioritise organic growth in its defined therapeutic areas, driven by product redevelopment and new market launches. This is underscored by its in-licencing agreements for novel complementary therapies, which bolster its M&A-driven growth and diversification strategy that has gained momentum since the pandemic. Fitch assumes a moderate decline in its established off-patent drug portfolio from FY26. The company aims to maintain growth based on planned active lifecycle management, although there is limited visibility on its medium-term plan. Constrained by Scale: Pharmanovia's rating is constrained by its small size, despite recent product additions. Fitch considers the company's narrow product portfolio with high sales concentration (its top 10 products accounted for 67% of sales in 9MFY25) to also constrain its rating to the 'B' category. If it is able to continue expanding its portfolio through medium to large acquisitions in the medium term, this would help diversify its portfolio and reduce concentration risk. ESG -Management Strategy: Near-term uncertainty regarding the strategic development of the business and the lack of clear communication on the turnaround plan to normalise material underperformance in FY25 create downside risks and are reflected in the Negative Outlook on the 'B' rating. Furthermore, the company announced that its CFO and CEO resigned on 10 April 2025. Peer Analysis Fitch compares Pharmanovia's 'B' rating against other asset-light scalable niche pharmaceutical companies, such as CHEPLAPHARM Arzneimittel GmbH (B/Stable), ADVANZ PHARMA HoldCo Limited (B/Stable) and Neopharmed Gentili S.p.A. (B/Stable). Pharmanovia's moderate business scale and concentrated brand portfolio benefit from increasing product and wide geographic diversification in each brand. However, the current financial underperformance and uncertainty around the medium-term strategy constrain its IDR to the 'B' category. Pharmanovia and Cheplapharm have historically had almost equally high and stable operating and cash flow margins, which were eroded in 2024. Fitch downgraded Cheplapharm to 'B' from 'B+' in December 2024 due to its expectation of gross EBITDA leverage increasing to 6.5x in 2024 and remaining high over the next 12 to 18 months, driven by organic EBITDA declines and recent large acquisitions. ADVANZ PHARMA also has a high execution risk in its refocused strategy to actively develop and market targeted specialist generic drugs, as well as remaining litigation risks. Neopharmed's slightly smaller operations are balanced by better expected leverage. Key Assumptions Fitch's Key Assumptions Within Its Rating Case for the Issuer - Sales growth of 1.6% in FY25, including sales carried forward from FY24; low-single-digit sales growth in FY26-FY28 assuming some acquisitions - EBITDA margin in low 30% in FY25 - Working capital outflow of EUR15 million-20 million in FY25 - RCF drawings in FY25-FY27 to support the cash position - M&A of product intellectual property and commercial infrastructure assets of about EUR85 million a year in FY26-FY28; targeted acquisitions at an enterprise value of 4x sales, funded with internally generated FCF - Non-acquisition capex at about 1% of sales. Fitch treats acquisitions as equivalent capex at 8%-10% of sales, as it views these investments as necessary to offset the organic portfolio decline - No debt-funded dividend payments Recovery Analysis Pharmanovia's recovery analysis is based on a going concern approach, reflecting the company's asset-light business model, which supports higher realisable values in financial distress than balance-sheet liquidation. Financial distress could primarily arise from material revenue contraction following volume losses and price pressure, given its exposure to generic pharmaceutical competition, possibly in combination with an inability to manage the cost base of a rapidly expanding business. Fitch maintains its post-restructuring going concern EBITDA estimate of EUR137 million and apply a 5.5x distressed enterprise value/EBITDA multiple, reflecting the underlying value of the company's expanding portfolio of intellectual property rights before considering value added through portfolio and brand management. This multiple is also in line with the distressed multiples for other Fitch-rated asset-light pharma peers. Its principal waterfall analysis generated a Recovery Rating of 'RR3' for all the senior secured capital structure after deducting 10% for administrative claims. This comprises the senior secured term loan B of EUR980 million and a RCF of about EUR203 million, assumed to be fully drawn before distress, with both facilities ranking equally among themselves. This indicates a 'B+'/'RR3' instrument rating for the senior secured debt. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage below 6.5x on a sustained basis - EBITDA interest coverage below 2.0x - FCF declining on a sustained basis - Insufficient liquidity headroom Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Fitch could revise the Outlook to Stable on a timely strategic update from the new management that effectively addresses current operational issues and stabilises performance in line with its sensitivities for a 'B' rating - EBITDA margin recovery towards 40% - EBITDA leverage at or below 5.5x on a sustained basis - EBITDA interest coverage above 3.0x on a sustained basis - FCF in high-single digits on a sustained basis Liquidity and Debt Structure Pharmanovia's readily available cash on balance sheet at end 3QFY25 was EUR9 million (excluding EUR5 million Fitch deems as not readily available). In addition, it has access to EUR178 million of its EUR203 million RCF. The company does not have any maturities until 2029 and 2030, when the RCF and term loan B come due, respectively. Issuer Profile Pharmanovia is a UK-based specialty pharma company focused on acquiring and managing branded off-patent drugs. Its main therapeutic areas are cardiovascular, endocrinology, neurology and oncology. 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 Pharmanovia has an ESG Relevance Score of '5' for 'Management Strategy' due to an ineffective corporate strategy and the absence of a turnaround plan. This has a negative impact on the credit profile and is highly relevant to the rating. Pharmanovia Bidco Limited has an ESG Relevance Score of '4' for Governance Structure due to the recent resignments of the management team, which has a negative impact on the credit profile, and is relevant to the rating in conjunction with other factors. 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 ----------- ------ -------- ----- Pharmanovia Bidco Limited LT IDR B Downgrade B+ senior secured LT B+ Downgrade RR3 BB- SMALL BUSINESS 2025-1: Fitch Assigns 'BB+(EXP)sf' Rating to C Notes ------------------------------------------------------------------- Fitch Ratings has assigned Small Business Origination Loan Trust 2025-1 DAC (SBOLT 25-1) notes expected ratings as detailed below. The assignment of final ratings is contingent on the receipt of final documents conforming materially to information already reviewed. Entity/Debt Rating ----------- ------ Small Business Origination Loan Trust 2025-1 DAC A-Loan LT NR(EXP)sf Expected Rating B LT BBB+(EXP)sf Expected Rating C LT BB+(EXP)sf Expected Rating R LT NR(EXP)sf Expected Rating Z LT NR(EXP)sf Expected Rating Transaction Summary SBOLT 25-1 is a true-sale securitisation of a GBP384.7 million static pool of mostly UK unsecured SME loans, originated through the marketplace lending (MPL) platform of Funding Circle Ltd (FC, servicer) and sold by Glencar Investments 49 DAC (Glencar). This transaction is the third issue from this platform to be rated by Fitch, and the ninth overall. KEY RATING DRIVERS SME Borrower Default Probability: Fitch analysed the default risk of the underlying SME portfolio based on FC's static default vintage data separately disclosed by their internal risk band. For the securitised portfolio including 'A+' to 'D' risk bands Fitch determined an average one-year probability of default (PD) at 5.2%. Unsecured SME Loans: The transaction's underlying loans are backed by personal guarantees granted by the owners or directors of the SME borrowers, except for a minor portion of the portfolio accounting for GBP11.2 million that benefits from a debenture granted by the SME borrowers themselves. Fitch analysed the static recovery vintage data and determined an average recovery rate at close to 35%, which is expected to be uniformly distributed over a five-year period following a borrower default. Waterfall Eden Master Fund, Ltd may also purchase defaulted loans at a price no less than 36.5% of their par amount. Granular Portfolio: The collateral portfolio features low single obligor concentration levels, with the top 10 obligors accounting for 1.4% of the portfolio balance. Industry concentration, on the other hand, is more in line with other SME portfolios', with the largest three industries accounting for 43.2% of the portfolio balance, led by property and construction (17.5%), followed by professional and business support (13.1%), and manufacturing and engineering (12.6%). Sensitivity to Pro-Rata Period: The transaction will feature pro-rata amortisation of the notes at closing until the breach of a sequential pay trigger. The pro-rata amortisation is based on the note balance net of the corresponding principal deficiency ledger but also includes the subordinated notes. Pro-rata structures generally leak proceeds to subordinated notes and therefore are at a higher risk of sequential amortisation. Under pro-rata structures, ratings are more sensitive to the back-loaded default timing assumption as it determines the timing of the continued leakage of principal to subordinated notes. Consistent with the historical performance default data provided by FC for its loan book and their previous securitisations, Fitch applied some defaults also during the first year of the transaction's life under its back-loaded default timing assumption. This approach is also in line with the Fitch criteria for portfolios of consumer loans with similar granularity and tenor. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Weakening asset performance is strongly correlated to increasing levels of delinquencies and defaults that could reduce credit enhancement available to the notes. Additionally, unanticipated declines in recoveries could also result in lower net proceeds, which may make certain notes' ratings susceptible to negative rating action, depending on the extent of the decline in those recoveries. An increase of the rating default rate (RDR) by 25% of the mean default rate and a 25% decrease of the rating recovery rate (RRR) at all ratings would lead to downgrades of up to two notches each for the notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade After the end of the pro-rata period, upgrades may occur on better-than-initially expected asset performance, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. A reduction of the RDR by 25% of the mean default rate and a 25% increase of the RRR at all ratings would lead to upgrades of no more than one notch each for the notes. SUMMARY OF FINANCIAL ADJUSTMENTS CRITERIA VARIATION Fitch calibrated its correlation assumption to ensure that the default rate for the overall portfolio at 'AAsf' covers the 32.7% peak of delinquencies observed in the FC loan book during the Covid-19 stress. This criteria variation has no impact on the ratings of the rated notes. 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 reviewed the results of a third-party assessment conducted on the asset portfolio information, and concluded that there were no findings that affected the rating analysis. 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 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. VILLA (WREA GREEN): FRP Advisory Named as Administrators -------------------------------------------------------- The Villa (Wrea Green) 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-2025-002283, and Martyn Rickels and Anthony Collier of FRP Advisory Trading Limited, were appointed as administrators on April 1, 2025. The Villa (Wrea Green) operated hotels and similar accommodation. Its registered office is at 4 Croft Court, Whitehills Business Park, Blackpool, FY4 5PR to be changed to FRP Advisory Trading Limited, 4th Floor, Abbey House, Booth Street, Manchester, M2 4AB. Its principal trading address is at The Villa Wrea Green, Moss Side Lane, Wrea Green, Preston, Lancashire, PR4 2PE. The joint administrators can be reached at: Martyn Rickels Anthony Collier FRP Advisory Trading Limited 4th Floor, Abbey House Booth Street, Manchester M2 4AB For further details, contact: The Joint Administrators Tel No: 0161 833 3344 Alternative contact: Ellie Clark Email: cp.manchester@frpadvisory.com VOGUE BEDS: CB Business Appointed as Administrator -------------------------------------------------- Vogue Beds Ltd was placed into administration proceedings in the High Court Of Justice Business and Property Courts In Leeds No CR-2025-LDS-000332, and Christopher Brooksbank of CB Business Recovery Ltd, was appointed as administrator on April 1, 2025. Vogue Beds is a bed manufacturer. Its registered office and principal trading address is at Kingsfield House, Arthur Street, Barwell, Leicestershire, LE9 8GZ. The administrator can be reached at: Christopher Brooksbank CB Business Recovery Ltd Ground Floor Offices Riverside Mills, Saddleworth Road Elland, West Yorkshire, HX5 0RY Further details contact: Daniel Brooksbank Tel No: 01422 485690 Email: dan@cb-br.co.uk ZOOM PROPERTY: Quantuma Advisory Named as Administrators -------------------------------------------------------- Zoom Property Buyer Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts in Bristol Court Number: CR-2025-BRS00031, and Simon Campbell and Kelly Mitchell of Quantuma Advisory Limited were appointed as administrators on March 31, 2025. Zoom Property specialized in the buying and selling of own real estate. Its registered office is at Regency Court, 62-66 Deansgate, Manchester, M3 2EN and it is in the process of being changed to Office D, Beresford House, Town Quay, Southampton, SO14 2AQ. Its principal trading address is at Regency Court, 62-66 Deansgate, Manchester, M3 2EN. The administrators can be reached at: Simon Campbell Kelly Mitchell Quantuma Advisory Limited Office D, Beresford House Town Quay, Southampton, SO14 2AQ Further details contact Joshua Kynvin Tel: 02382 128 470 Email: joshua.kynvin@quantuma.com ********* 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. 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