250519.mbx

250519.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 Monday, May 19, 2025, Vol. 26, No. 99 Headlines B U L G A R I A FIBANK: Fitch Affirms 'B' LongTerm IDR, Outlook Stable F R A N C E HOLDING D'INFRASTRUCTURES: Fitch Affirms 'BB+' IDR, Outlook Stable I T A L Y AUTO ABS ITALIAN 2025-1: Fitch Gives 'BB+(EXP)sf' Rating on E Notes L U X E M B O U R G ALBION FINANCING 1: Fitch Rates USD2-Bil. Secured Notes 'BB+(EXP)' AURIS LUXEMBOURG II: Fitch Affirms 'B' LongTerm IDR, Outlook Stable U N I T E D K I N G D O M 375 PROPERTIES: Edge Recovery Named as Administrators AITA FILMS: Kallis Insolvency Named as Administrators CARNIVAL PLC: Fitch Hikes LongTerm IDR to 'BB+', Outlook Positive HOSPITAL PIPELINE: Azets Holding Named as Administrators IOR GROUP: Quantuma Advisory Named as Administrators LHP SOLUTIONS: CG&Co Named as Administrators MACQUARIE AIRFINANCE: Fitch Alters Outlook on 'BB+' IDR to Positive MANTA SYSTEMS: RSM UK Named as Administrators MAVEN LEISURE: Interpath Advisory Named as Administrators MAVEN PREMIUM: Interpath Advisory Named as Administrators MOUNT PACKAGING: Philmore & Co Named as Administrators NEWGATE FUNDING 2007-2: Fitch Affirms B+ Rating on Class F Debt PATERSON ASSOCIATES: Opus Restructuring Named as Administrators SMALL BUSINESS 2025-1: Fitch Assigns BB+sf Final Rating on C Notes TTD TRADES: WSM Marks Named as Administrators - - - - - =============== B U L G A R I A =============== FIBANK: Fitch Affirms 'B' LongTerm IDR, Outlook Stable ------------------------------------------------------ Fitch Ratings has affirmed First Investment Bank AD's (Fibank) Long -Term Issuer Default Rating (IDR) at 'B' with a Stable Outlook and its Viability Rating (VR) at 'b'. Key Rating Drivers Asset Quality Affects Credit Profile: Fibank's weak asset quality weighs on its assessment of its profitability and business model and encumbers its capital, given its only modest provisioning. This is balanced against a reasonable domestic franchise and adequate funding and liquidity. Operating Environment to Improve: Bulgaria's planned eurozone accession should improve the operating environment for its domestic banks, strengthen the institutional framework and its resilience, and reinforce prospects for continued profitable operations. The accession should strengthen banks' already good liquidity position and provide flexibility for contingency planning. Business prospects are underpinned by Bulgaria's solid economic performance, reflected in rising income levels, and significant and structural improvements in asset quality and materially reduced sector fragmentation. Constrained Business Model: Fibank's business profile is weighed down by a high share of problem assets, limiting its ability to grow and improve returns. Fibank is Bulgaria's fifth-largest bank, with an 8% share of sector assets at end-2024. High Problem Asset Exposures: The bank's weak asset quality and high capital encumbrance weigh on its risk profile, despite some improvement in underwriting, particularly in retail lending. These issues also affect its business model, resulting in a strong linkage between Fibank's business and risk profiles. Weak Asset Quality: Fibank's impaired loans ratio was stable at 12.6% at end-2024, despite sizeable write-offs of 2.7% of gross loans. Fitch expects the ratio to reduce over the next two years, as higher revenue should help reduce impaired loans, but the ratio is likely to remain much higher than at peers. A large stock of foreclosed assets, including investment properties, remain difficult to resolve and weigh on asset quality. Reserve coverage of problem assets is considerably weaker than at peers, with loan loss allowances covering 32% of impaired loans at end-2024. Profitability Fluctuates on Impairments: Fitch expects Fibank's profitability metrics to moderately weaken over 2025-2026 due to falling interest rates and continued efforts to resolve problem assets. Fitch also anticipates them to remain more volatile than at peers, given the bank's modest provisioning of large problem loans and assets. The operating profit/risk-weighted assets ratio weakened to 1.8% in 2024 from 2.3% in 2023 on higher loan impairment charges. High Capital Encumbrance: The bank's common equity Tier 1 ratio improved to 18% at end-2024 from 17.1% at end-2023, but encumbrance by unprovisioned impaired loans remained high at 47%. Reasonable Funding and Liquidity: The bank's funding relies on customer deposits. Customer deposits are granular, and liquidity buffers provide strong coverage of Fibank's refinancing needs. The bank remains comfortably self funded and is making progress in meeting its fully phased-in minimum requirement for own funds and eligible liabilities from mid-2025. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Negative rating action could stem from a weakening of Fibank's asset quality, resulting in the bank's unprovisioned impaired loans exceeding its common equity Tier 1 capital without clear prospects for a swift recovery. A deterioration of the bank's common equity Tier 1 ratio below 15% on a sustained basis due to asset-quality pressure or weaker profitability could also lead to negative rating action. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade would be contingent on major progress in resolving the bank's problem assets, while maintaining reasonable profitability and capitalisation. This would require a credible improvement in loan book quality or increased coverage of impaired loans towards the sector average, leading to a sustainable reduction of capital encumbrance by unprovisioned impaired loans. Progress in addressing the bank's stock of non-loan problem assets would also be positive for the rating. No Government Support: Fibank's Government Support Rating (GSR) of 'ns' (no support) expresses Fitch's opinion that, although potential sovereign support for the bank is possible, it cannot be relied on. This is underpinned by the EU's Bank Recovery and Resolution Directive, transposed into Bulgarian legislation, which requires senior creditors to participate in losses, ahead of a bank receiving sovereign support. An upgrade of the GSR would most likely result from a positive change in Bulgaria's propensity to support domestic banks. While not impossible, Fitch believes this is highly unlikely in light of the existing resolution legislation. VR ADJUSTMENTS The 'bb+' operating environment score is below the 'bbb' category implied score due to the following adjustment reason: financial market development (negative). The 'b' earnings and profitability score is below the 'bb' category implied score due to the following adjustment reason: earnings stability (negative). The 'b' capitalisation and leverage score is below the 'bb' category implied score due to the following adjustment reason: reserve coverage and asset valuation (negative). ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- First Investment Bank AD LT IDR B Affirmed B ST IDR B Affirmed B Viability b Affirmed b Government Support ns Affirmed ns =========== F R A N C E =========== HOLDING D'INFRASTRUCTURES: Fitch Affirms 'BB+' IDR, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Holding d'Infrastructures des Métiers de l'Environnement's (SAUR) Long-Term Issuer Default Rating (IDR) and senior unsecured rating at 'BB+'. The Outlook on the IDR is Stable. The affirmation and Stable Outlook reflect its expectation that SAUR's funds from operations (FFO) net leverage will return within the 'BB+' rating sensitivities (FFO net leverage below 5.2x) by 2026, widening the headroom in 2027. The company is deleveraging from the 2023 peak, mainly thanks to organic growth and margin recovery in its French business. However, further business growth, cost optimisation and working-capital management efforts will be required to position the rating more comfortably. The rating reflects SAUR's robust business profile as an integrated water and wastewater operator with good visibility on revenues on its municipal business. However, some earnings volatility resulting from tariff indexation time lag, and the growing share of more profitable industrial water activities limit the group's debt capacity. Key Rating Drivers Deleveraging Begun, not Yet Sufficient: SAUR's Fitch-defined FFO net leverage fell to 6.6x in 2024 (8.2x in 2023), a level not yet consistent with the rating. Fitch expects SAUR to continue deleveraging, supported by the recovery in EBITDA margin from its municipal water activity, and growth in the industrial and international businesses. Fitch also expects cost optimisation and improvements in working-capital management towards a neutral to positive position by 2026. Its forecast anticipates that FFO net leverage will return broadly within the 'BB+' sensitivities by 2026 and fall further, reaching about 4.5x in 2027. Cash-flow Generation Gradually Improving: SAUR's free cash flow (FCF) generation was negative in 2023-2024, although with a year-on-year recovery, affected by a reduced EBITDA margin and working-capital cash absorption. Fitch expects FCF to recover throughout the forecast period and turn neutral in 2026. FCF recovery remains contingent on the successful improvement of the EBITDA margin, effective working-capital management and capex moderation. However, some execution risk remains, especially regarding renewed inflation pressure or negative working-capital trends driven by engineering, construction and construction, and industrial segment growth. Good 2024 Performance: The company's Fitch-adjusted EBITDA rose by 29% to EUR197 million in 2024, above its previous guidance of EUR185 million. This was driven by the recovery of the municipal water business in France and international, while industrial water continued strong growth. Nevertheless, negative EUR44 million working capital continued to penalise the company's FCF, which was around negative EUR100 million. FFO net leverage of 6.6x was in line with its expectations. Robust Organic Growth: SAUR's revenues have had 8% annual organic growth over the last three years, supported by distribution and industrial water. In water distribution, the company benefits from a revenue backlog of EUR7.6 billion with churn rate below 5%. The industrial water business continued its strong organic growth, supported by water management outsourcing, and benefiting from the latest acquisitions. Fitch expects SAUR's revenues will grow at 6% CAGR from 2024 to 2027, driven by tariff revisions, commercial efforts and growing demand. Cost Optimisation Plan Under Way: The company's optimisation plan started in 2024 with full-time equivalent improvement at the local level, contract renegotiations and productivity gains with a total benefit of EUR25 million for the year. In 2025 the company aims to complete its water reorganisation in France and centralise and optimise purchasing processes, reducing external charges. Fitch also expects exceptional costs related to completed M&A and efficiency measures to diminish. Working-Capital Management Still Challenging: SAUR's cash absorption from working capital of EUR44 million fell short of its expectations for neutral working capital by end-2024, also due to increasing industrial business and engineering, construction and construction works. Fitch forecasts working capital will improve over the rating horizon, but that the expansion of the industry segment will largely offset the benefit of working-capital cash generation within municipal water distribution. Fitch therefore expects broadly neutral working capital in 2025 and mild cash generation thereafter, still far from the large cash generation reported until 2022. Supportive Shareholders: SAUR's main shareholders (EQT, PGGM and DIF) have supported its strategy, prioritising growth over dividends. SAUR's external growth strategy was conservatively financed, mostly through capital increases allowing it to strengthen its market position in the industry segment while minimising the impact on leverage. Its forecast does not assume any further acquisitions but Fitch expects the shareholders will continue to provide equity support for potential new acquisitions. A reduction of shareholder support for acquisitions could hinder the company's deleveraging trajectory. Peer Analysis SAUR is France's third-largest water and wastewater management company, behind Veolia Environnement S.A. and Suez S.A. Both companies benefit from larger scale and a greater presence outside the domestic market than SAUR. In water, these peers also benefit from larger and more profitable contracts, which explains their higher profitability even though they operate under the same contractual framework as SAUR. FCC Aqualia, S.A. (BBB-/Stable), the Spanish water concessions operator, is SAUR's closest rated peer by business mix and scale. Aqualia's municipal business accounts for about 90% of EBITDA, compared with around 70% for SAUR at end-2024. Overall, Fitch considers Aqualia's business risk slightly better than SAUR's, with longer average concession residual life, higher renewal rates, better profitability due to higher capex intensity, and a contractual framework that includes timely financial equilibrium mechanisms. This allows for higher debt capacity with a threshold for investment grade at 5.0x for FFO net leverage for Aqualia compared with 4.5x for SAUR. Acea SpA (BBB+/Stable) is an Italian diversified multi-utility operating in water distribution, environmental services, and electricity production and distribution. Acea benefits from a stronger business profile thanks to a high share of regulated revenues provided by a mature and predictable regulatory framework. Acea's diversified revenue streams and regulated revenue mechanism provides better protection against inflation, which enabled it to preserve its EBITDA margin during the recent inflationary period. Key Assumptions - Revenue CAGR of 6.7% for 2025-2027, supported by organic development (mainly Industrial Water and Water France) and tariff indexation - Fitch-calculated consolidated EBITDA margin gradually increasing to 11.5% by 2027 (9.5% in 2025; 10.8% in 2026), from 8.4% in 2024 - Average capex of about EUR210 million a year over 2025-2027 - No M&A; any large M&A to be largely supported by equity injections - No dividends over the period RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Failure to show credible deleveraging pattern towards 5.2x FFO net leverage by 2026 at the latest - Persisting earnings volatility due to changes in public contract agreements, regulatory frameworks or having a less-contracted business mix or being contracted with higher-risk counterparties (Industrial Water rising above 35%-40% of total EBITDA - around 30% forecast in 2025 - for example, could lead Fitch to review SAUR's debt capacity for the current rating Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - FFO net leverage below 4.5x on a sustained basis, accompanied with tangible recovery of EBITDA margin Liquidity and Debt Structure SAUR's liquidity at end-2024 was EUR824 million including EUR674 million of readily available cash and EUR150 million of undrawn revolving credit facility. The liquidity was supported by the EUR550 million blue bond issued in October 2024 to refinance the EUR450 million sustainability-linked bonds maturing in September 2025 (EUR208 million were already prepaid). Fitch expects SAUR to return to neutral FCF by 2026 supported by increasing EBITDA and improvement in working capital. Fitch expects the company will proactively refinance its bond maturities to 2027-2029. Issuer Profile SAUR is an integrated water and wastewater treatment and distribution operator for households and a water services provider for industries. It also provides engineering and procurement and other water-related works for municipalities and serves more than 20 million residents and 9,200 municipalities. 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 ----------- ------ -------- ----- Holding d'Infrastructures des Metiers de l'Environnement LT IDR BB+ Affirmed BB+ senior unsecured LT BB+ Affirmed RR4 BB+ ========= I T A L Y ========= AUTO ABS ITALIAN 2025-1: Fitch Gives 'BB+(EXP)sf' Rating on E Notes ------------------------------------------------------------------- Fitch Ratings has assigned Auto ABS Italian Stella Loans S.r.l. (Series 2025-1) notes expected ratings. The assignment of final ratings is contingent on the receipt of final documents conforming to information reviewed. Entity/Debt Rating ----------- ------ Auto ABS Italian Stella Loans S.r.l. (Series 2025-1) A1 LT AA(EXP)sf Expected Rating A2 LT AA(EXP)sf Expected Rating B LT AA(EXP)sf Expected Rating C LT A(EXP)sf Expected Rating D LT BBB+(EXP)sf Expected Rating E LT BB+(EXP)sf Expected Rating Transaction Summary The transaction is a seven-month revolving period securitisation of Italian balloon or amortising auto loans originated by Stellantis Financial Services Italia (SFS), a captive lender resulting from a joint venture between Stellantis N.V. (BBB/Stable/F2) and Santander Consumer Bank S.p.A. (not rated). KEY RATING DRIVERS Low Expected Defaults: Fitch has observed historical default rates lower than for other captive auto loan lenders operating in Italy. The provisional portfolio comprises loans advanced to private borrowers (93.4%) and commercial borrowers (6.6%). Fitch derived separate asset assumptions for different products, reflecting different performance expectations and product features. Fitch has assumed a weighted average (WA) base-case lifetime default and recovery rate of 2.0% and 40.1%, respectively, for the provisional portfolio. Balloon Loans Risk Addressed: The provisional portfolio partly consists of balloon loans (41.2% of the pool balance), while the remainder comprises amortising auto loans. Balloon loan borrowers may face a payment shock at maturity if they cannot refinance the balloon amount or return or sell their car. Fitch has considered this additional default risk by applying a higher default multiple. The WA default multiple of the portfolio is 5.2x at 'AA(EXP)sf'. Shorter Data History for Multi-Step Loans: The preliminary portfolio includes approximately 15% multi-step loans, with no restrictions during the revolving period. SFS began originating these loans in 2021, and the data history is shorter compared with other products offered by the originator. Fitch has factored this into the default multiples for sub-pools with a significant proportion of multi-step loans, such as private used and private new standard loans. Strong Excess Spread Supports Mezzanines: The provisional portfolio is expected to generate substantial excess spread, as the assets earn materially higher yields than the notes' interest and transaction senior costs. Fitch tested several stresses on portfolio yield reduction and prepayments assumptions and concluded that the repayment of the class C and D notes was dependent on excess spread, currently constraining the ratings at 'A(EXP)sf' and 'BBB+(EXP)sf', respectively. The uncollateralised class E excess spread notes receive principal solely through the available excess spread in the revenue priority of payments and it will start amortising at the first payment date after closing. Fitch caps excess spread notes' ratings at 'BB+(EXP)sf'. 'AAsf' Sovereign Cap: Italian structured finance transactions are capped at six notches above Italy's Issuer Default Rating (IDR, BBB/Positive/F2), which is the case for the class A1, A2 and B notes. The Positive Outlook on these notes reflects that on the sovereign. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The ratings of the class A and B notes, at the applicable rating cap, are sensitive to changes to Italy's Long-Term IDR and Outlook. A revision of the Outlook on Italy's IDR to Stable would trigger similar action on the notes. Unexpected increases in the frequency of defaults or decreases in recovery rates that could produce loss levels larger than the base case and could result in negative rating action on the notes. For example, a simultaneous increase in the default base case by 25% and decrease in the recovery base case by 25% would lead to up to two-notch downgrades of the class B to D notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of Italy's IDR and revision of the related rating cap for Italian structured finance transactions could trigger an upgrade of the class A and B notes, provided that sufficient credit enhancement is available to withstand the stresses associated with higher rating scenarios. An unexpected decrease in the frequency of defaults or an increase in the recovery rates could produce loss levels lower than the base case. For example, a simultaneous decrease in the default base case by 25% and an increase in the recovery base case by 25% would lead to upgrades of up to four notches for class C and D notes, provided there are no qualitative arising elements that could limit the ratings. 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 Auto ABS Italian Stella Loans S.r.l. (Series 2025-1) 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. =================== L U X E M B O U R G =================== ALBION FINANCING 1: Fitch Rates USD2-Bil. Secured Notes 'BB+(EXP)' ------------------------------------------------------------------ Fitch Ratings has assigned co-borrowers Albion Financing 1 S.a.r.l and Aggreko Holdings Inc proposed USD2,085 million new senior secured notes an expected rating of 'BB+(EXP)' with a Recovery Rating of 'RR2' on the refinancing announcement. The final rating is contingent upon the receipt of final documents conforming to the information already reviewed. The co-borrowers are the financing entities of Albion HoldCo Limited (Albion), which is the owner of UK-based temporary power and energy supply provider Aggreko Limited. The announced refinancing includes a USD323 million dividend recapitalisation, which will not result in the EBITDA leverage downgrade sensitivity of 5.0x being exceeded. Fitch forecasts EBITDA leverage to reach 4.5x by end-2025, up from its previous forecast of 4.0x, which leaves lower rating headroom. Key Rating Drivers Dividend Recapitalisation: Albion plans to issue USD323 million of new debt to fund a special distribution to its sponsors. This is the first dividend payment since the business was taken private in 2021, and Fitch understands there are no plans to pay further dividends over the short to medium term. Fitch generally views an increase in borrowings to fund shareholder distributions unfavourably, especially when free cash flow (FCF) is already weak. However, Fitch expects Albion's leverage to remain appropriate for the current rating, even with the additional debt. Refinancing Near-Term Facilities: Albion plans to refinance its USD1,035 million senior secured notes due October 2026 and USD450 million senior unsecured notes due April 2027. The company also intends to repay USD177 million in preference shares. The new notes will be senior secured. The refinancing will simplify Albion's debt structure by removing unsecured debt and preference shares and extending its maturity profile. The company will also refinance and extend its GBP300 million revolving credit facility (RCF) and GBP150 million ancillary bonding facility due June 2026 and plans to increase the total size of these facilities to approximately USD1.2 billion to reflect the group's growth since 2021. Leverage to Rise: The USD423 million increase in debt, which includes the special dividend and transaction fees relating to the refinancing, will increase its forecast EBITDA leverage at end-2025 to 4.5x, up from its previous forecast of 4.0x. Fitch expects debt to continue rising each year to fund the company's growth strategy, which should lead to corresponding higher EBITDA. If this is not the case, it could pressure the rating. Consistently Negative FCF a Constraint: Fitch anticipates negative FCF generation until 2028 as Albion expands its existing fleet and invests in the latest emissions-compliant engines and renewable technologies. The company has plans for large discretionary capex (around 70%-75% of total) to 2028 to support expansion, which amounts to average growth capex at 20%-25% of revenue during this period. This sustained FCF deficit, which Fitch estimates could reach as much as USD1.8 billion during 2025-2028, could reduce liquidity headroom and pressure the rating if forecast growth is not achieved. Strong Profitability to Continue: Fitch forecasts Albion's Fitch-calculated EBITDA margin to improve to 39% over the medium term, compared with an EBITDA margin of about 35% at end-2024. Albion's company-reported margin improved each year from 2021 to 2024 due to tight cost management, improved pricing, and cost-saving initiatives. Fitch believes further margin improvement will be driven by investments in human resources, economies of scale from an expanded fleet, synergies from acquisitions, and growth of solar within the energy transition solutions business. Continued Revenue Growth: Revenue grew about 14% year-on-year in 2024 to 2,854 million, primarily led by a 19% growth in North America. This increase was due to higher customer activity in petrochemical and refining, data centres and building services and construction. It extended the near 14% revenue gain in 2023, which included USD196 million from recent acquisitions. Fitch anticipates revenue growth will remain strong while Albion undertakes its expansion plans. Attractive Underlying Market: Fitch believes the energy market has long-term attractive structural drivers, due to ageing electrical infrastructure, particularly against the backdrop of the transition to renewable energy. Global demand for power is set to increase 2.5x current levels by 2050, with the largest growth in demand expected in data centres. Additionally, the gap between power supply and demand is widening, as governments remain reluctant to make large investments in fossil-fuel based power plants during energy transition. Peer Analysis Albion's revenue is slightly higher then Boels Topholding B.V.'s (BB-/Stable) but less than a third of Ashtead Group plc's (BBB/Stable). Albion's EBITDA margin is similar to Boels but higher than BCP V Modular Services Holdings III Limited (Modulaire). Allowing for the planned dividend recapitalisation, Albion's EBITDA leverage will be between that of Boels and Modulaire. Key Assumptions Fitch's Key Assumptions Within Its Rating Case for the Issuer - Low double-digit revenue growth for 2025-2028, driven by acquisitions and the company's expansionary capex to meet increasing demand - EBITDA margin to continue to improve 2025-2028, driven by key cost-saving initiatives, focus on pricing and synergies stemming from acquisitions and growth in solar in the emissions trading system business - No further dividend distribution in line with management expectations to 2028 - Increasing capex in line with management's expectations to 2028 RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage above 5.0x - EBITDA margin decreasing due to lower productivity on expansionary capex, margin-dilutive debt-funded acquisitions, loss of large customers or significant pricing pressure - EBITDA interest coverage below 3.0x Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage below 4.0x on a sustained basis - EBITDA interest coverage above 5.0x - Improvement of FCF margin to above 3% on a sustained basis Liquidity and Debt Structure Albion reported USD165 million of cash at end-December 2024. It also has access to a largely undrawn GBP300 million revolving credit facility which is currently being extended and increased. Liquidity will be supported by additional debt to cover the forecast negative FCF while its expansionary capex plan is underway. Fitch believes Albion has the flexibility to put on hold expansionary capex to restore FCF. Issuer Profile UK-based Aggreko Limited, a subsidiary of Albion, is a global leader providing mobile modular power, temperature control and energy services across more than 60 countries. Date of Relevant Committee January 20, 2025 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 ----------- ------ -------- Albion Financing 1 S.a.r.l senior secured LT BB+(EXP) Expected Rating RR2 AURIS LUXEMBOURG II: Fitch Affirms 'B' LongTerm IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed Auris Luxembourg II S.A.'s (WSA) Long-Term Issuer Default Rating (IDR) at 'B' with a Stable Outlook. Fitch has also affirmed the senior secured rating on Auris Luxembourg III S.a.r.l.'s term loan B (TLB) at 'B+', with a Recovery Rating of 'RR3'. The 'B' IDR balances WSA's moderately high financial leverage and neutral free cash flow (FCF) generation against a strong business profile supported by a meaningful market position as the third-largest manufacturer in the global, non-cyclical hearing-aid market. The Stable Outlook reflects the steady organic revenue improvement amid softer product demand in FY25 (financial year ending September). The company still faces some execution risks, but Fitch expects WSA's EBITDA margins to remain in the mid-to-high teens through the implementation of operating efficiencies across its supply chain that should translate into steady deleveraging towards 5.4x by FY28. Key Rating Drivers Limited Tariff Impact: Fitch expects potential tariffs in the US to have a limited effect on WSA as articles imported for the handicapped are currently exempt from tariffs. Fitch views the cancellation of any type of exemptions on WSA devices or parts as event risk. Soft US Market: Fitch expects the US retail market will remain soft, given lower product demand, leading to slower overall sales growth of around 3% in FY25 versus 7% in FY24, mainly fostered by the launch of the high-end Widex Allure in March. Fitch expects the product demand softness to be temporary, as the purchases of hearing aids cannot be put off for a significant period. Consequently, Fitch expects revenue to return to mid-single digits from FY26. Operating Efficiencies Realisation: WSA's profit margins are improving, with EBITDA margins 3pp higher on a like-for-like basis in 2QFY25. Fitch expects EBITDA margins to further benefit as WSA adopts cost-efficiency measures such as simplifying its research and development (R&D) teams, cutting administrative headcount and taking measures on its supply chain, such as leveraging its regional manufacturing footprint to reduce transportation costs. This should result in the Fitch-defined EBITDA margin growing towards 17% by FY28 from estimated 16% in FY25. Accounting Change to R&D: In line with the company's adjustment, Fitch has reclassified R&D costs as profit and loss expenses rather than capitalising them, as it did previously. This results in a EUR100 million downward revision of EBITDA, with an impact on the EBITDA margin of around 350bp and around 1.3x on leverage, leading to leverage being temporarily outside the sensitivities in FY25 by 0.3x. Operating efficiencies should mitigate the margin decline and lead to steady deleveraging below its negative sensitivity of 6.5x by FY26. There is no impact on FCF, as Fitch is reducing capex by an equivalent amount. Neutral FCF: Fitch expects WSA to continue reinvesting its cash flow to support its ongoing development of new products, resulting in moderate R&D, capex, and working capital requirements. Fitch also expects interest costs to remain at or above EUR200 million across FY25-FY26, before moderating to around EUR175 million in FY27-FY28. This will allow neutral to slightly positive FCF. Fitch sees a risk of higher working-capital volatility related to supply chain or new product launches, but estimate that FCF will remain closer to neutral over the medium term. Sustained negative FCF would signal persisting operational vulnerabilities and could pressure the ratings. Long-Term Sector Growth: Hearing aid sales have been resilient through economic cycles, despite being predominantly discretionary spending. Fitch expects the customer base to expand, driven by stronger penetration in large markets, demographic shifts in advanced economies with more hearing-impaired people adopting devices, and progress in hearing-aid technology and diagnostics. WSA's diverse product portfolio, extensive geographic footprint, and competitive position should allow it to capitalise on these long-term trends. Peer Analysis WSA is one of the top manufacturers and distributors in the hearing aid industry, benefiting from significant scale, a large portfolio of brands and widespread geographical coverage. The business profile is a cross between a medical device manufacturer, supported by resilient health-driven demand, and a consumer goods company. Worldwide state- and private insurance-led reimbursement regimes are rapidly developing. However, most expenses for such devices remain discretionary and require co-payment by customers. Fitch assesses WSA's business profile as a solid 'BB' rating, but its lower profitability, weaker FCF profile and moderately high leverage constrains the credit profile at 'B'. The company's credit metrics are broadly in line with those of manufacturers and retail entities in sectors that share traits of healthcare and consumer products such as Afflelou S.A.S. (B/Stable). These entities' business models are also dependent on the marketing and distribution of R&D-led products with a healthcare profile, which result in similar EBITDA margins from the high teens to the low 20s. Key Assumptions Fitch's Key Assumptions Within Its Rating Case for the Issuer - Sales growth of 3% in FY25 followed by 5%-6% in FY26-FY28 - Fitch-adjusted EBITDA margin close to 16% in FY25, gradually increasing towards 17% in FY28, supported by organic growth and cost-saving initiatives. Its EBITDA calculation now includes capitalised R&D as operating expenses - Capex at around 4% of sales to FY28 - Working capital outflow of around EUR50 million in FY25-FY28, to support revenue growth - No M&A in the next four years - No dividends paid for FY24-FY28 Recovery Analysis - The recovery analysis assumes that WSA would be considered a going concern (GC) in bankruptcy, and that it would be reorganised rather than liquidated, given the inherent value of its product portfolio, brands, retail network and clients. - Fitch assesses WSA's GC EBITDA at about EUR300 million, which after undertaking corrective measures should allow the company to generate moderately positive FCF. - Financial distress, leading to restructuring, may be the result of new technologies in the hearing aid market or a widespread diffusion of value-for-money devices. Both could lead to a loss of pricing power across WSA's portfolio, reducing gross margins and overall profitability. - Fitch believes that restructuring would primarily be triggered by an increase in leverage associated with financial distress given WSA's moderately high leverage, leading to above-average debt multiples. This is likely to materialise at EBITDA levels still potentially able to generate neutral FCF. - Fitch applies an enterprise value (EV) multiple of 6.5x EBITDA to the GC EBITDA to calculate a post-reorganisation EV. The multiple is at the high end of the range of multiples used for other healthcare-focused credit opinions and ratings in the 'B' category, reflecting WSA's strong global market position in the hearing-aid market and scale. - Its waterfall analysis generated a ranked recovery in the 'RR3' band, indicating a 'B+' instrument rating for the senior secured TLB 1, TLB 2 and revolving credit facility. The latter ranks pari passu with the TLBs, and which Fitch assumes to be fully drawn upon default. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage above 6.5x on a sustained basis - EBITDA interest coverage over 2.0x on a sustained basis - Low to neutral FCF generation Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage below 5.5x on a sustained basis - EBITDA interest coverage over 2.5x on a sustained basis - FCF margin in the mid-single digits on a sustained basis Liquidity and Debt Structure Fitch views WSA's liquidity as satisfactory, as it has EUR39 million of Fitch-adjusted cash available for debt repayment, in addition to EUR207 million available under its revolving credit facility, with no major near-term maturities after last year's refinancing. Its assessment is also underpinned its assumption of positive, albeit limited, FCF generation though the next two years. Issuer Profile WSA is the combination formed in 2019 of Sivantos and Widex. WSA is a global leading hearing aid company, with a multi-branded portfolio of product and business brands. 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 ----------- ------ -------- ----- Auris Luxembourg III S.a.r.l senior secured LT B+ Affirmed RR3 B+ Auris Luxembourg II S.A. LT IDR B Affirmed B =========================== U N I T E D K I N G D O M =========================== 375 PROPERTIES: Edge Recovery Named as Administrators ----------------------------------------------------- 375 Properties Limited was placed into administration proceedings in the High Court of Justice, Court Number: CR-2025-003239, and Robert Cundy of Edge Recovery Limited was appointed as administrators on May 13, 2025. 375 Properties specialized in residents property management. The Company's registered office and principal trading address is at 375 High Road, Ilford, Essex, IG1 1TF. The joint administrators can be reached at: Robert Cundy Edge Recovery Limited Leonard House, 7 Newman Road, Bromley Kent, BR1 1RJ For further details, contact: Robert Cundy Tel No: +44 (0)20 8315 7430 Email: rob.cundy@edgerecovery.com AITA FILMS: Kallis Insolvency Named as Administrators ----------------------------------------------------- AITA Films Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts of England and Wales, Insolvency and Companies (ChD), Court Number: CR-2025-002380, and Kikis Kallis and Andreas Arakapiotis of Kallis Insolvency Practitioners were appointed as administrators on May 1, 2025. AITA Films engaged in motion picture production activities. The Company's registered office is at Unit 2-5 Croxted Mews, 286a-288 Croxted Road, London, SE24 9DA. Its principal trading address is at Versa Studios Studio House, Whitehall Rd, Holbeck, Leeds LS12 1AP. The joint administrators can be reached at: Kikis Kallis Andreas Arakapiotis Kallis Insolvency Practitioners Mountview Court, 1148 High Road, Whetstone, London, N20 0RA For further details, contact: Antonis Stylianou Tel No: 020 8446 6699 Email: Antonis@kallis.co.uk CARNIVAL PLC: Fitch Hikes LongTerm IDR to 'BB+', Outlook Positive ----------------------------------------------------------------- Fitch Ratings has upgraded the Long-Term Issuer Default Rating (IDR) of Carnival Corporation, Carnival plc, and Carnival Holdings (Bermuda) II Limited (together 'Carnival') to 'BB+', from 'BB'. Fitch also affirmed the first lien term loans and senior secured notes at 'BBB-'', with a Recovery Rating of RR1, and upgraded the rating on the senior unsecured notes to 'BB+'/RR4, from 'BB'/RR4. Fitch also assigned a 'BB+'/RR4 rating to the proposed issuance of 2031 senior unsecured notes. The Rating Outlook is Positive. The Fitch-calculated 2025 estimated EBITDA leverage of 4.1x for Carnival is in line with the 'BB+' range. Carnival benefits from its scale, high operating margins, strong liquidity, and its expectations of continued deleveraging. Potential risks include an economic downturn that reduces leisure demand and higher fuel prices. The Positive Outlook reflects Fitch's belief that solid booking activity will continue and management's commitment to debt reduction will lead to stronger credit metrics. Key Rating Drivers Cruise Demand Remains Strong: Cruise companies benefit from offering a better value proposition relative to resort vacations and having a large base of repeat customers. Carnival, along with Royal Caribbean and Norwegian Cruise Lines, has announced record bookings for both 2025 and 2026. The long-term nature of cruise bookings provides strong visibility, as cancellations are not typically material. Carnival is guiding net yield growth to rise by approximately 4.7% (constant currency) in 2025. Continued Debt Reduction: Carnival's debt materially increased during the Covid-19 pandemic to fund ship deliveries and cover operating costs. Fitch expects debt will decline to $27 billion in 2025, from $35.6 billion in 2022. Fitch also expects FCF growth and management's commitment to investment-grade metrics to lead to a rapid improvement in credit metrics. The decline in new ship deliveries over the next three years should lead to greater FCF growth and further debt reduction. Carnival also has approximately $1.1 billion of convertible notes, which Fitch expects to be largely settled through share exchanges. Increased FCF Growth: Fitch expects EBITDA growth, lower interest costs from debt reduction, and lower growth capex to result in higher FCF through the forecast horizon. Fitch estimates FCF will grow to $1.6 billion in 2025 and materially thereafter. Carnival should also benefit from higher customer deposits given the continued growth in bookings. Fitch does not anticipate any material shareholder returns until the company achieves investment-grade status. Leader in Cruise Industry: Carnival is the world's largest cruise operator with multiple brands. Due to its brand acceptance and market leading capacity, the company holds the top market share in the North American and European markets, which contribute most of its EBITDA. Historically, the company's scale has been a credit positive, but pandemic-related disruptions severely impacted Carnival due to its high fixed-cost structure and resulted in delayed ship deliveries. Under normal cruise operating conditions, Fitch considers Carnival's scale a positive factor. Moderate Industry Capacity Growth: Capacity growth is expected to be somewhat muted over the next several years given the reduction of new ship orders during the pandemic, as industry credit metrics weakened. However, Fitch believes lower supply growth will support net yield growth in the near term. Recent announcements of new ship builds will mostly not affect the market until the end of the decade, although capacity growth would still be modest. Favorable Industry Dynamics: The top players in the cruise line industry benefit from high barriers to entry due to significant ship capex spend, low global market penetration rates relative to other leisure activities, mobile assets that allow companies to move to other markets when existing markets are facing uncertain economic or geopolitical issues, and favorable tax treatment given their incorporation outside the U.S. Peer Analysis Carnival is the largest cruise ship operator in terms of berths and passengers carried compared to Royal Caribbean Inc. (NR) and Norwegian Cruise Line Holdings, Ltd. (NR). Carnival is also compared to other high-'BB' and low-'BBB' leisure credits, such as Hyatt Hotels Corporation (BBB-/Stable) and Wyndham Hotels & Resorts Inc. (BB+/Stable). Carnival has materially greater scale and geographic diversification than its comparable peers, although leverage is higher. Fitch believes Carnival's scale and FCF generation will result in materially improved credit metrics that will be more indicative of an investment-grade credit over the forecast horizon. Key Assumptions - Passengers carried expected to grow in the low-single digits during the forecast horizon. Occupancy expected to increase to 106% in 2026 and beyond; - Net yields are expected to increase 4% in 2025 and in the low -to mid-single digits over the remainder of the forecast horizon, which is below management guidance; - Adjusted cruise costs per available lower berth days, excluding fuel, are forecast to increase in the low- to mid-single digits over the forecast horizon; - Capex including new ship deliveries are expected to drop to $3.7 billion in 2025 and $3.6 billion in 2026; - There are no assumptions for share repurchases, common dividends, acquisitions or asset sales; - FCF is expected to be applied to debt reduction through the forecast horizon. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA Leverage sustaining above 4.5x; - Economic or geopolitical event that lasts for an extended period and results in a deterioration of the capital structure (i.e. increased debt, use of secured or priority guaranteed financing); - A more aggressive financial policy that includes accelerated ship building plans or increased shareholder allocations that would allow for credit metrics to become vulnerable during a weaker economic environment. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustainable positive FCF with application to debt payment; - EBITDA leverage approaching 4.0x; - A debt structure that does not include secured or guaranteed debt; - (CFO-Capex)/Debt is greater than 10%. Liquidity and Debt Structure Carnival had $833 million of cash and $2.9 billion of borrowings available (subject to foreign exchange movements) under its current RCF as of Feb. 28, 2025, maturing in Aug. 2027. The company also had $7.8 billion of undrawn export credit facilities as of Feb. 28, 2025, to fund ship deliveries planned through 2033. Fitch expects Carnival to be FCF positive through the forecast horizon, which further enhances liquidity. Proceeds from the proposed $1 billion senior unsecured note issuance due 2031 will be used to redeem the remaining principal outstanding on the 7.625% senior unsecured notes due 2026. Carnival has material debt repayments due over the next several years, including $4.9 billion due in 2027 and $6.7 billion due in 2028 pro forma the refinancing. Fitch believes debt reduction, potential conversion of convertible debt exchanged into shares, and refinancing opportunities should allow the company to address its debt repayment schedule. Fitch expects new ship deliveries to decline over the forecast horizon. The company plans no ship additions in 2026, and will add one each in 2027 and 2028. The company recently announced three new ships for the Carnival brand and two ships for the Aida brand, but the first delivery is not until 2029. Issuer Profile Carnival Corporation and Carnival plc (together, Carnival) is the largest global cruise company and among the largest leisure travel companies, with a portfolio of world-class cruise lines. 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 ----------- ------ -------- ----- Carnival plc LT IDR BB+ Upgrade BB senior unsecured LT BB+ Upgrade RR4 BB Carnival Corporation LT IDR BB+ Upgrade BB senior unsecured LT BB+ New Rating RR4 senior unsecured LT BB+ Upgrade RR4 BB senior secured LT BBB- Affirmed RR1 BBB- Carnival Holdings (Bermuda) II Limited LT IDR BB+ Upgrade BB senior secured LT BB+ Upgrade RR4 BB HOSPITAL PIPELINE: Azets Holding Named as Administrators -------------------------------------------------------- Hospital Pipeline Installations Limited was placed into administration proceedings on May 9, 2025 and has ceased trading with immediate effect. Blair Milne and James Fennessey of Azets Holding Limited were appointed as administrators on May 9, 2025. Hospital Pipeline engaged in specialized construction activities. The Company's registered office is at 2 Duke Street, Paisley, PA2 6RF. Its principal trading address is at 2 Duke Street, Paisley, Renfrewshire, PA2 6RF. The joint administrators can be reached at: Blair Milne James Fennessey Azets Holding Limited Titanium 1, King's Inch Place Renfrew, PA4 8WF For further details, contact: The Joint Administrators Tel No: 0141 886 6644 Alternative contact: Michael Carr-White Tel: 0141 886 6644 Email: martin.mcgrellis@azets.co.uk IOR GROUP: Quantuma Advisory Named as Administrators ---------------------------------------------------- IOR Group 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-2025-002859, and Kelly Mitchell and Andrew Watling of Quantuma Advisory Limited were appointed as administrators on May 9, 2025. IOR Group engaged in specialised construction activities. The Company's registered office is at 98 Kew Road, Richmond, TW9 2PQ (in the process of being changed to Office D, Beresford House, Town Quay, Southampton, SO14 2AQ). Its principal trading address is at Ground Floor, Bronze Building, The Forge, 105 Sumner St, London, SE1 9HZ The joint administrators can be reached at: Andrew Watling Kelly Mitchell Quantuma Advisory Limited Office D, Beresford House Town Quay, Southampton, SO14 2AQ Any person who requires further information may contact Bethany Oldham Tel No: 02382-357953 Email: bethany.oldham@quantuma.com LHP SOLUTIONS: CG&Co Named as Administrators -------------------------------------------- LHP Solutions Limited was placed into administration proceedings in the Court of Session, No COS-P369-25, and Edward Avery-Gee and Daniel Richardson of CG & Co were appointed as administrators on May 9, 2025. LHP Solutions engaged in the buying and selling of own real estate and letting and operating of own or leased real estate. The Company's registered office is at Clyde Offices, 2nd Floor 48 West George Street Glasgow G2 1BP. The joint administrators can be reached at: Edward Avery-Gee Daniel Richardson C/o CG&Co 27 Byrom Street Manchester M3 4PF For further details, contact: Clara Van Biesebroeck Tel No: 0161 358 0210 Email: info@cg-recovery.com MACQUARIE AIRFINANCE: Fitch Alters Outlook on 'BB+' IDR to Positive ------------------------------------------------------------------- Fitch Ratings has affirmed the Long-Term Issuer Default Ratings (IDRs) of Macquarie AirFinance Holdings Limited (MAHL) and its rated subsidiaries, Macquarie Aircraft Leasing Inc. (MAL) and Macquarie Aerospace Finance UK Limited (MAFU), at 'BB+'. The Rating Outlook has been revised to Positive from Stable. Fitch has also affirmed MAHL's senior unsecured debt at 'BB+'. These rating actions are being taken in conjunction with Fitch's global aircraft leasing sector review, covering 11 publicly rated firms. For more information on the sector review, please see "Fitch Ratings Completes Aircraft Lessor Peer Review, Sector Outlook Remains Neutral,". Key Rating Drivers Improved Scale and Earnings Consistency: The Positive Outlook reflects MAHL's improved scale and enhanced earnings consistency, which Fitch expects will be sustained through various market and economic cycles, including a moderation in travel demand due to a dampening of global economic growth. A one-notch upgrade of the rating over the next 12-24 months could be supported by solid execution with respect to growth targets and long-term strategic financial objectives, including pretax return on average assets sustained above 1.5%, while maintaining leverage below 3.0x, unsecured debt to total debt above 50%, and a liquidity coverage ratio above 1.0x. An upgrade is also contingent on MAHL maintaining new technology aircraft above 50% of the portfolio, while further lengthening the weighted average lease profile and portfolio aircraft age to align more closely with investment-grade peers. Moderate Franchise: MAHL's ratings reflect its position as a global, full-service aircraft operating lease platform, its portfolio focus on relatively liquid, narrowbody aircraft, its appropriate current and targeted leverage, the absence of near-term debt maturities, and solid liquidity metrics. The ratings also consider MAHL's affiliation with long-term equity holders, specifically Macquarie Group Limited (A/Stable), as well as its management's depth, experience, and track record in managing aircraft assets. Weaker Earnings Profile; Sector Constraints: Rating constraints include a weaker but improving earnings profile, moderate exposure to older aircraft, a focus on the sale-leaseback market, which is highly competitive, and shorter average remaining lease terms relative to higher-rated peers. Fitch also notes the potential governance risks relative to larger, public peers, including the lack of independent board members and partial ownership by pension funds. Rating constraints applicable to the aircraft leasing industry more broadly include the monoline nature of the business, vulnerability to exogenous shocks, potential exposure to residual value risk, and sensitivity to oil prices, inflation and unemployment, which negatively impact travel demand. Constraints also include a reliance on wholesale funding sources and meaningful competition. Improved Asset Quality: MAHL's portfolio quality improved meaningfully following the acquisition of the ALAFCO Aviation Lease and Finance Company K.S.C.P. (ALAFCO) portfolio in August 2024, resulting in an increase in portfolio liquidity. The WA age was 9.3 years as of Dec. 31, 2024 (3Q25), which aligns with management's target of below 10 years and is down from 11.4 years a year ago. The WA remaining lease term improved to 5.7 years, up from 4.2 years a year ago, enhancing cash flow stability. Highly liquid, tier 1 aircraft comprised 74.4% of the portfolio, up from 67.5% the previous year, as current technology aircraft were opportunistically sold in a strong secondary market. MAHL sold eight aircraft and six engines with an average age of 21 years in 9M25, generating proceeds of $119.7 million, with an average gain of 68.9% of net book value (NBV). For 9M25, the company determined there were no aircraft that had a book value exceeding its recoverable value, and therefore no impairment charges were taken. Given the increased lease and trading activity seen in the market, Fitch does not expect material impairment charges on MAHL's core new technology narrowbody fleet going forward. Improved Profitability: The company reported a pretax return on average assets of 0.6%, up from a loss of 0.4% during the same period. MAHL benefited from revenue expansion due to the recent acquisition of 75 aircraft from ALAFCO, partially offset by elevated funding costs associated with a larger portfolio and higher rates on debt facilities. Net spread (lease yield minus funding costs) was 5.5% in 9M25, unchanged from a year ago, but down from the average of 8.8% for FY21-FY24. Fitch expects economies of scale to reduce the SG&A margin, while net spreads are likely to trend between 5.5% and 7.0% over the Outlook horizon. Historically, operating performance has been somewhat susceptible to remarketing risk, given MAHL's shorter WA lease term compared to higher-rated peers. A further lengthening of MAHL's lease maturity profile would be viewed favorably by Fitch, as it would enhance operating cash flow predictability. Appropriate Leverage: Leverage on a gross debt to tangible equity basis was 2.8x at Dec. 31, 2024. With the $750 million capital investment by shareholders to support the company's growth between May 2022 and May 2024, leverage is expected to remain below management's long-term target of 3.0x, which Fitch believes is appropriate in the context of MAHL's portfolio liquidity profile. Improved Funding Flexibility: As of Dec. 31, 2024, unsecured debt constituted 67.9% of total debt, an improvement from 54% a year ago and 28% in 2022. Secured debt to total assets was 19.2%, remaining below management's long-term target of 30%. In March 2025, the company completed a $650 million, three-year, 5.2% senior unsecured debt issuance. Proceeds were used to repay outstanding borrowings, including the redemption of its inaugural $500 million, five-year, 8.375% senior unsecured debt, to reduce funding costs. Fitch views MAHL's ability to access the unsecured markets on more economic terms favorably. The increase in the unsecured funding mix grows the pool of unencumbered assets and enhances funding flexibility. Solid Liquidity: Liquidity included $268.9 million in cash and $1.22 billion of undrawn committed capacity under its revolving credit facility as of Dec. 31, 2024. Fitch projects operating cash flows of approximately $271.3 million over the next 12 months, although this could vary depending on portfolio expansion, aircraft sales, and collections. Together, these liquidity sources provide 2.3x coverage of $748.4 million of purchase obligations over the next 12 months as of Dec. 31, 2024, which is above the peer average. Fitch expects liquidity coverage ratios for MAHL to remain at or above 1.5x over time. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A revision of the Outlook to Stable could arise from failure to execute on planned growth targets, while maintaining leverage below 3.0x, unsecured debt to total debt above 50%, and a liquidity ratio above 1.0x. Beyond that, a downgrade of the ratings could be driven by: - Macroeconomic and/or geopolitical-driven headwinds that pressure airlines and lead to additional lease restructurings, rejections, lessee defaults, and increased losses; - An inability to improve scale and a weakening of the company's long-term cash flow generation, profitability, and liquidity position; - Higher impairments or a sustained increase in leverage above 4.0x; - A deviation in funding strategy leading to secured debt to total assets exceeding MAHL's internal target of 30% or a notably lower anticipated proportion of unsecured debt to total debt; - A weakening in portfolio quality, in particular new technology aircraft representing notably less than the 50% targeted communicated by management. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A one-notch upgrade over the next 12-24 months could be contingent upon solid execution with respect to growth targets and long-term strategic financial objectives, including sustained pretax return on average assets above 1.5%, while maintaining leverage below 2.7x, unsecured debt above 50% of total debt, and liquidity coverage above 1.2x. An upgrade of MAHL's ratings could also be contingent upon: - Reduced exposure to weaker airlines, maintenance of an impairment ratio below 1%; - Further lengthening of the WA lease profile and a reduction in the WA age of the fleet more in line with investment-grade peers; - Increases in the proportion of tier 1 aircraft while maintaining its new technology, narrow body focus. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The equalization of the unsecured debt ratings with MAHL's Long-Term IDR reflects the unsecured funding mix, as well as the availability of sufficient unencumbered assets, which provide support to unsecured creditors and suggest average recovery prospects in a stressed scenario. The senior unsecured debt ratings are primarily sensitive to changes in MAHL's Long-Term IDR and secondarily to the relative recovery prospects of the instruments. A decline in unencumbered asset coverage, combined with a material increase in secured debt, could result in the notching of the unsecured debt down from the Long-Term IDR. SUBSIDIARY AND AFFILIATE RATINGS: KEY RATING DRIVERS The Long-Term IDRs assigned to MAL and MAFU are equalized with that of MAHL given that they are wholly owned subsidiaries of the company. SUBSIDIARY AND AFFILIATE RATINGS: RATING SENSITIVITIES The ratings assigned to MAL and MAFU are primarily sensitive to changes in MAHL's Long-Term IDR and are expected to move in tandem. ADJUSTMENTS - The Standalone Credit Profile (SCP) has been assigned in line with the implied SCP. The Business Profile was identified as a relevant negative factor in the assessment. - The Business Profile score has been assigned below the implied score due to the following adjustment reason: Market position (negative). - The Asset Quality score has been assigned below the implied score due to the following adjustment reason: Risk profile and business model (negative). - The Earnings & Profitability score has been assigned below the implied score due to the following adjustment reason: Earnings stability (negative). - The Capitalization & Leverage score has been assigned below the implied score due to the following adjustment reason: Risk profile and business model (negative). - The Funding, Liquidity & Coverage score has been assigned below the implied score due to the following adjustment reason: Funding flexibility (negative). ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Macquarie AirFinance Holdings Limited LT IDR BB+ Affirmed BB+ senior unsecured LT BB+ Affirmed BB+ Macquarie Aircraft Leasing Inc. LT IDR BB+ Affirmed BB+ Macquarie Aerospace Finance UK Limited LT IDR BB+ Affirmed BB+ MANTA SYSTEMS: RSM UK Named as Administrators --------------------------------------------- Manta Systems UK Limited was placed into administration proceedings in the High Court of Justice, The Business and Property Courts in Leeds, Court Number: CR-2025-LDS-000437, and Lee Van Lockwood and Gareth Harris of RSM UK Restructuring Advisory LLP were appointed as administrators on April 29, 2025. Manta Systems engaged in specialized construction activities; and renting and leasing of other machinery, equipment and tangible goods. The Company's registered office and principal trading address is at Beaumont House, Beaumont Street, Darlington, DL1 5RW. The joint administrators can be reached at: Lee Van Lockwood Gareth Harris RSM UK Restructuring Advisory LLP Central Square, 5th Floor 29 Wellington Street, Leeds LS1 4DL Correspondence address & contact details of case manager: Gordon Bettany RSM UK Restructuring Advisory LLP Landmark, St Peter's Square 1 Oxford Street, Manchester, M1 4PB Tel No: 0113 285 5000 Contact details for the Joint Administrators: Tel No: 0113 285 5000 MAVEN LEISURE: Interpath Advisory Named as Administrators --------------------------------------------------------- Maven Leisure Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List (ChD), No CR-2025-003182, and Samuel Birchall and Christopher Robert Pole of Interpath Advisory, Interpath Ltd, were appointed as administrators on May 9, 2025. Maven Leisure engaged in business support service activities. The Company's registered office is at Interpath Ltd, 10 Fleet Place, London, EC4M 7RB. Its principal trading address is at 8 St. Martin`s Place, London, WC2N 4JH. The joint administrators can be reached at: Samuel Birchall Christopher Robert Pole Interpath Advisory, Interpath Ltd 10 Fleet Place, London EC4M 7RB For further details, contact: Seb Wharton Tel No: 0161 529 9026 MAVEN PREMIUM: Interpath Advisory Named as Administrators --------------------------------------------------------- Maven Premium Sports Bars Limited was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List (ChD) No CR-2025-003183, and Samuel Birchall and Christopher Robert Pole of Interpath Advisory, Interpath Ltd, were appointed as administrators on May 9, 2025. Maven Premium specialized in business support service activities. Its registered office is at Interpath Ltd, 10 Fleet Place, London, EC4M 7RB Its principal trading address is at 30 Old Jewry, City of London, London, EC2R 8DQ The joint administrators can be reached at: Samuel Birchall Christopher Robert Pole Interpath Advisory, Interpath Ltd 10 Fleet Place, London EC4M 7RB For further details, contact: Seb Wharton Tel No: 0161 529 9026 MOUNT PACKAGING: Philmore & Co Named as Administrators ------------------------------------------------------ Mount Packaging Systems Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts in Leeds, Insolvency & Companies List (ChD) Court Number: CR-2025-LDS-000459, and Jonathan Paul Philmore of Philmore & Co Ltd was appointed as administrators on May 7, 2025. Mount Packaging is a manufacturer of other special-purpose machinery and other service activities. The Company's registered office is at Yorkshire House, 7 South Lane, Holmfirth, HD9 1HN Its principal trading address is at Shawcross Business Park, Owl Lane, Dewsbury, WF12 7RF The joint administrators can be reached at: Jonathan Paul Philmore Philmore & Co Ltd Yorkshire House, 7 South Lane Holmfirth, HD9 1HN For further details, contact: Liam Cockfield Email: enquiries@philmoreandco.com Tel No: 01484 461959 NEWGATE FUNDING 2007-2: Fitch Affirms B+ Rating on Class F Debt --------------------------------------------------------------- Fitch Ratings has affirmed the Newgate Funding Plc 2007 series. Fitch has revised the Outlooks on 2007-1 and 2007-2 class Db, E, F notes to Negative from Stable. Entity/Debt Rating Prior ----------- ------ ----- Newgate Funding Plc Series 2007-1 Class A3 XS0287753775 LT AAAsf Affirmed AAAsf Class Ba XS0287757255 LT AA+sf Affirmed AA+sf Class Bb XS0287757412 LT AA+sf Affirmed AA+sf Class Cb XS0287759624 LT A+sf Affirmed A+sf Class Db XS0287767304 LT BBBsf Affirmed BBBsf Class E XS0287776636 LT BBB-sf Affirmed BBB-sf Class F XS0287778095 LT BB+sf Affirmed BB+sf Class Ma XS0287755713 LT AAAsf Affirmed AAAsf Class Mb XS0287756877 LT AAAsf Affirmed AAAsf Newgate Funding Plc Series 2007-3 Class A2b 651357AF2 LT AAAsf Affirmed AAAsf Class A3 651357AG0 LT AAAsf Affirmed AAAsf Class Ba 651357AH8 LT AA+sf Affirmed AA+sf Class Bb 651357AJ4 LT AA+sf Affirmed AA+sf Class Cb 651357AK1 LT AAsf Affirmed AAsf Class D 651357AL9 LT A+sf Affirmed A+sf Class E XS0329655129 LT A+sf Affirmed A+sf Newgate Funding Plc Series 2007-2 Class A3 XS0304280059 LT AAAsf Affirmed AAAsf Class Bb XS0304284630 LT AAsf Affirmed AAsf Class Cb XS0304285959 LT A-sf Affirmed A-sf Class Db XS0304286254 LT BBB-sf Affirmed BBB-sf Class E XS0304280489 LT BB+sf Affirmed BB+sf Class F XS0304281024 LT B+sf Affirmed B+sf Class M XS0304280133 LT AAAsf Affirmed AAAsf Transaction Summary The three transactions are seasoned securitisations of mixed pools containing mainly residential non-conforming owner-occupied mortgage loans with a few residential buy-to let mortgage loans. KEY RATING DRIVERS Asset Performance Deterioration: Since the last review, late-stage arrears have increased in each transaction: by 6.9% for 2007-1, 4.2% for 2007-2 and 5.2% for 2007-3. This has resulted in an increased weighted average foreclosure frequency (WAFF) being applied in Fitch's asset modelling. If further loans move into arrears, or those already in arrears accrue higher arrears balances, Fitch's WAFF may increase at future rating reviews. The continued performance deterioration and build up in late-stage arrears drives the Negative Outlooks in 2007-1 and 2007-2. 2007-3 shows less sensitivity given its larger reserve fund. Weak Recovery Performance: Transaction reporting suggests a loss severity of around 25% for all three transactions, which is significantly weaker than that estimated in Fitch's ResiGlobal: UK model. Fitch examined the weighted average recovery rate (WARR) sensitivities to align its base case with the observed performance. The notes' model-implied ratings (MIRs) are sensitive to a lower WARR so the ratings on the class B, C, D, E and F notes are up to four notches lower than their MIRs. Increasing Credit Enhancement: Credit enhancement (CE) has increased in each transaction due to the amortisation of the asset pool alongside a non-amortising reserve fund. This is most beneficial for the senior notes as the notes are currently amortising sequentially. The buildup of CE has offset the increase in expected loss resulting from the higher WAFF and contributes to the affirmations. Excessive Counterparty Exposure: CE for 2007-3's class E notes is solely from the transaction's reserve fund held by Barclays Bank Plc (A+/Stable) as there are no collateralised subordinated notes. The notes' rating is therefore capped at and linked to Barclays' Long-Term Issuer Default Rating (IDR), reflecting their excessive dependence on Barclays. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The transaction's performance may be affected by changes in market conditions and economic environment. Weakening economic performance is strongly correlated to increasing levels of delinquencies and defaults that could reduce CE available to the notes. Additionally, unanticipated declines in recoveries could result from lower net proceeds, which may make certain notes susceptible to negative rating action depending on the extent of the decline in recoveries. Fitch conducted sensitivity analyses by stressing each transaction's WAFF and WARR assumptions and examining the rating implications for the notes. A 15% increase in the WAFF and a 15% decrease in the WARR indicates downgrades of no more than six notches for 2007-1, six notches for 2007-2 and no downgrades for 2007-3. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Stable to improved asset performance driven by stable delinquencies and defaults would lead to increasing CE and potential upgrades. Fitch tested an additional rating sensitivity scenario by applying a decrease in the WAFF of 15% and an increase in the WARR of 15%. The results indicate upgrades of up to four notches for 2007-3 and six notches for 2007-1 and 2007-2. 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 pools and the transactions. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Fitch did not undertake a review of the information provided about the underlying asset pools ahead of the transaction's initial closing. The subsequent performance of the transactions over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Newgate Funding Plc Series 2007-1, 2007-2, 2007-3 has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security due to the underlying asset pools with limited affordability checks and self-certified income, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Newgate Funding Plc Series 2007-1, 2007-2, 2007-3 has an ESG Relevance Score of '4' for Human Rights, Community Relations, Access & Affordability due to a material concentration of interest-only loans, which has a negative impact on the credit profile, and is relevant to the ratings 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. PATERSON ASSOCIATES: Opus Restructuring Named as Administrators --------------------------------------------------------------- Paterson Associates (Ne) Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts in Newcastle-upon-Tyne, Insolvency & Companies List (ChD) Court Number: CR-2025-000060, and Mark Nicholas Ranson and Emma Mifsud of Opus Restructuring LLP were appointed as administrators on May 7, 2025. Paterson Associates fka Paterson Harkin Limited engaged in specialized construction activities. The Company's registered office and principal trading address is at 15 Britannia House, Brignell Road, Middlesbrough, TS2 1PS. The joint administrators can be reached at: Mark Nicholas Ranson Emma Mifsud Opus Restructuring LLP Fourth Floor, One Park Row Leeds West Yorkshire, LS1 5HN For further details, contact: Theo Skipper Tel No: 01908 752 944 Email: theo.skipper@opusllp.com SMALL BUSINESS 2025-1: Fitch Assigns BB+sf Final Rating on C Notes ------------------------------------------------------------------ Fitch Ratings has assigned Small Business Origination Loan Trust 2025-1 DAC (SBOLT 25-1) notes final ratings. Entity/Debt Rating Prior ----------- ------ ----- Small Business Origination Loan Trust 2025-1 DAC A-Loan LT NRsf New Rating NR(EXP)sf B XS3045380824 LT BBB+sf New Rating BBB+(EXP)sf C XS3045381046 LT BB+sf New Rating BB+(EXP)sf R XS3045381475 LT NRsf New Rating NR(EXP)sf Z XS3045381129 LT NRsf New Rating NR(EXP)sf Transaction Summary SBOLT 25-1 is a true-sale securitisation of a GBP399.97 million static pool of UK mostly unsecured SME loans, originated through the marketplace lending platform of Funding Circle Ltd (FC, the servicer) and sold by Glencar Investments 49 DAC. The transaction is the third issuance 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 5.1%. 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 (GBP10.4 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%, expected to be uniformly distributed over five years 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 1.3% of the portfolio balance. Industry concentration is more in line with other SME portfolios, with the largest three industries accounting for 43.8% of the portfolio balance, led by property and construction (18.1%), followed by professional and business support (12.9%) and manufacturing and engineering (12.8%). 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 are therefore at 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 its 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's 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 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 rating levels would lead to downgrades of up to three notches 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 rating levels would lead to upgrades of up to one notch 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 FC's loan book during the pandemic stress. This criteria variation has no impact on the ratings of the 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. TTD TRADES: WSM Marks Named as Administrators --------------------------------------------- TTD Trades Limited was placed into administration proceedings in the High Court of Justice, No 007785 of 2024, and Andrew John Whelan of WSM Marks Bloom LLP was appointed as administrators on May 7, 2025. TTD Trades engaged in wholesale of clothing and footwear. The Company's registered office is at Unit 2 Spinnaker Court, 1C Becketts Place, Hampton Wick, Kingston upon Thames KT1 4EQ, formerly Riverbank House, 1 Putney Bridge Approach, London SW6 3JD Its principal trading address is at 123 King Street, London W6 9JG The joint administrators can be reached at: Andrew John Whelan WSM Marks Bloom LLP Unit 2 Spinnaker Court 1C Becketts Place Hampton Wick, Kingston upon Thames KT1 4EQ For further details, contact: Jack Darby Email: insolvency@wsm.co.uk ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2025. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. * * * End of Transmission * * *