250626.mbx

250626.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, June 26, 2025, Vol. 26, No. 127 Headlines I R E L A N D CONTEGO CLO VI: Fitch Hikes Rating on Class F-R Notes to 'B+sf' CVC CORDATUS XXIX: Fitch Assigns B-(EXP)sf Rating on Cl. F-R Notes PALMER SQUARE 2025-2: Fitch Assigns 'BBsf' Final Rating on E Notes PENTA CLO 9: Fitch Hikes Rating on Class F Notes to 'B+sf' PROVIDUS CLO IX: Fitch Assigns 'B-sf' Final Rating on Cl. F-R Notes PROVIDUS CLO IX: S&P Assigns B-(sf) Rating on Class F-R Notes SONA FIOS I: Fitch Assigns 'B-sf' Final Rating on Class F Notes SONA FIOS I: S&P Assigns BB-(sf) Rating on Class E-R Notes ST. PAUL'S CLO III-R: Moody's Ups EUR40.8MM E-R Notes Rating to Ba1 L U X E M B O U R G EUROPEAN MEDCO 3: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable U N I T E D K I N G D O M ANDREW PLASTICS: Lucas Ross Named as Administrators CONSORT HEALTHCARE: S&P Raises Debt Rating to 'B-', Outlook Stable DOMINUS CHELMSFORD: Moorfields Named as Administrators GATWICK AIRPORT: Fitch Affirms 'BB' Rating on Senior Secured Debt HERMITAGE 2024 PLC: Fitch Affirms 'BB+sf' Rating on Class E Notes JAB PROPERTY: Begbies Traynor Named as Administrators LHBO REALISATIONS: MHA Named as Administrators MORGANASH LIMITED: Parker Walsh Named as Administrators RMAC NO. 3: Fitch Lowers Rating on Class F Notes to 'B-sf' TAURUS 2025-3 UK: Moody's Assigns (P)Ba3 Rating to GBP32MM E Notes VALUECHAIN TECHNOLOGY: KBL Advisory Named as Administrators - - - - - ============= I R E L A N D ============= CONTEGO CLO VI: Fitch Hikes Rating on Class F-R Notes to 'B+sf' --------------------------------------------------------------- Fitch Ratings has upgraded Contego CLO VI DAC's class F-R notes and affirmed the rest as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Contego CLO VI DAC A-R XS2315796560 LT AAAsf Affirmed AAAsf B-1-R XS2315797378 LT AA+sf Affirmed AA+sf B-2-R XS2315797964 LT AA+sf Affirmed AA+sf C-R XS2315798699 LT A+sf Affirmed A+sf D-R XS2315799234 LT BBB+sf Affirmed BBB+sf E-R XS2315799317 LT BB+sf Affirmed BB+sf F-R XS2315799580 LT B+sf Upgrade Bsf Transaction Summary Contego CLO VI DAC is a cash flow CLO mostly comprising senior secured obligations. The transaction is actively managed by Five Arrows Managers LLP and will exit its reinvestment period in July 2025. KEY RATING DRIVERS Stable Asset Performance: The upgrade reflects the transaction's resilient performance with portfolio losses below its rating case. The transaction is around 0.9% below par (calculated as the current par difference over the original target par) and defaults comprise 0.9% of the portfolio's outstanding principal balance. The transaction is also passing all its collateral-quality, portfolio-profile and coverage tests. Low Refinancing Risks: The transaction has low near- and medium-term refinancing risk, with no portfolio assets maturing in 2025 and 0.6% maturing in 2026. Sufficient Cushion across Structure: All the notes have retained sufficient buffer, to support the upgrade and should be capable of withstanding further defaults in the portfolio. This supports the Stable Outlooks. 'B'/'B-' Portfolio: Fitch assesses the average credit quality of the underlying obligors at 'B'/'B-'. The weighted average rating factor of the current portfolio is 26.1 as calculated by Fitch under its latest criteria. About 12.3% of the portfolio is currently on Negative Outlook. High Recovery Expectations: Senior secured obligations comprise 97.6% of the portfolio. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate of the current portfolio is 61.7%. Diversified Portfolio: The portfolio is well-diversified across obligors, countries and industries. The top 10 obligor concentration, as calculated by Fitch, is 11.8%, and no obligor represents more than 1.5% of the portfolio balance. Exposure to the three largest Fitch-defined industries is 31.4% as calculated by Fitch. Fixed-rate assets, as reported by the trustee, are at 6%, currently complying with the limit of 7.5%. Cashflow Analysis: The transaction is within its reinvestment period until July 2025. In addition, after the reinvestment period, the manager can continue to reinvest unscheduled principal proceeds and sale proceeds from credit-risk obligations, subject to compliance with the reinvestment criteria. Given the manager's ability to reinvest, Fitch's analysis is based on a portfolio where the transaction covenants have been stressed to their limits. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Downgrades, which are ased on the current portfolio, may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of default and portfolio deterioration. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognised Statistical Rating Organisations and/or European Securities and Markets Authority-registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Contego CLO VI 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 XXIX: Fitch Assigns B-(EXP)sf Rating on Cl. F-R Notes ------------------------------------------------------------------ Fitch Ratings has assigned CVC Cordatus Loan Fund XXIX DAC reset notes expected ratings. The assignment of final ratings is contingent on the receipt of final documents conforming to information already reviewed. Entity/Debt Rating ----------- ------ CVC Cordatus Loan Fund XXIX DAC A-R LT AAA(EXP)sf Expected Rating B-R LT AA(EXP)sf Expected Rating C-R LT A(EXP)sf Expected Rating D-R LT BBB-(EXP)sf Expected Rating E-R LT BB-(EXP)sf Expected Rating F-R LT B-(EXP)sf Expected Rating Transaction Summary CVC Cordatus Loan Fund XXIX DAC is a securitisation of mainly senior secured obligations (at least 96%) with a component of senior unsecured, mezzanine, second lien loans and high-yield bonds. Note proceeds will be used to redeem the existing notes (except the subordinated notes) and to fund the existing portfolio with a target par of EUR425 million. The portfolio is actively managed by CVC Credit Partners Investment Management Limited. The CLO will have a 4.5-year reinvestment period and a 7.5-year weighted average life (WAL) test at closing, which can be extended one year after closing, subject to conditions. 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 24.8. High Recovery Expectations (Positive): At least 96% of the portfolio will comprise senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second lien, unsecured and mezzanine assets. The Fitch-weighted average recovery rate of the identified portfolio is 58.6%. Diversified Portfolio (Positive): The transaction will include various concentration limits in the portfolio, including a fixed-rate obligation limit at 12.5%, 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. WAL Step-Up Feature (Neutral): From one year after closing, the transaction can extend the WAL test by one year. The WAL extension is at the option of the manager, but subject to conditions, including passing the Fitch collateral quality tests and the aggregate collateral balance with defaulted assets at their collateral value being equal to or greater than the reinvestment target par. Portfolio Management (Neutral): The transaction will have 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 for the transaction's Fitch-stressed portfolio analysis is 12 months less than the WAL covenant. This is to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period, which include passing the coverage tests and the Fitch 'CCC' bucket limitation test after reinvestment as well as a WAL covenant that gradually steps down, before and after the end of the reinvestment period. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) 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 A-R and B-R notes and would lead to downgrades of one notch for the class C-R, D-R, E-R notes. It would also lead to downgrade 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 default and portfolio deterioration. Due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio, the class B-R to the class F-R notes each display a rating cushion of 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 RDR across all ratings and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to four notches for the class A-R, B-R, C-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 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 two notches for the notes, except 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 CVC Cordatus Loan Fund XXIX DAC 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 CVC Cordatus Loan Fund XXIX 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. PALMER SQUARE 2025-2: Fitch Assigns 'BBsf' Final Rating on E Notes ------------------------------------------------------------------ Fitch has assigned Palmer Square European Loan Funding 2025-2 DAC notes final ratings. Entity/Debt Rating ----------- ------ Palmer Square European Loan Funding 2025-2 DAC Class A XS3070649366 LT AAAsf New Rating Class B XS3070649523 LT AAsf New Rating Class C XS3070649879 LT Asf New Rating Class D XS3070650026 LT BBBsf New Rating Class E XS3070650372 LT BBsf New Rating Subordinated Notes XS3070650612 LT NRsf New Rating Transaction Summary Palmer Square European Loan Funding 2025-2 DAC is an arbitrage cash flow collateralised loan obligation (CLO) that is being serviced by Palmer Square Europe Capital Management LLC (Palmer Square). Net proceeds from the issuance of the notes have been used to purchase a static pool of primarily secured senior loans and bonds, with a target par of EUR400 million. KEY RATING DRIVERS 'B+'/'B' Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors 'B+'/'B'. The Fitch weighted average rating factor (WARF) of the current portfolio is 23. High Recovery Expectations (Positive): Senior secured obligations and first lien loans make up around 95.2% of the portfolio. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate (WARR) of the current portfolio is 62.1%. Diversified Portfolio (Positive): The largest three industries comprise about 35.3% of the portfolio balance, the top 10 obligors represent 9.1% of the portfolio balance and the largest five obligors represent 5% of the portfolio. Static Portfolio (Positive): The transaction does not have a reinvestment period, and discretionary sales are not permitted. Fitch's analysis is based on the current portfolio, which it stressed by downgrading by one notch all obligors with a Negative Outlook, with a floor at 'CCC-'. This group of obligors represents 4.2% of the current portfolio and leads to a portfolio WARF of 23.6. Deviation from Model-Implied Rating (MIR): The class B, C, D and E notes are rated one notch below the model-implied ratings (MIR). This reflects the insufficient break-even default rate cushion for the Fitch-stressed portfolio at the MIR, due to uncertain macro-economic conditions and the risk of excess spread compression from loan repricing. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Downgrades, which are based on the current portfolio, may occur if the loss expectation is larger than initially assumed, due to unexpectedly high defaults and portfolio deterioration. However, there is no cushion between the current portfolio and the Fitch-stressed portfolio, due to the only slightly better WARF of the current portfolio than the Fitch-stressed portfolio, resulting from a very low share of loans on Negative Outlook. Therefore, 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 two notches for the rated 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 for the rated notes, except for the 'AAAsf' rated notes. 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 Most 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 Palmer Square European Loan Funding 2025-2 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. PENTA CLO 9: Fitch Hikes Rating on Class F Notes to 'B+sf' ---------------------------------------------------------- Fitch Ratings has upgraded Penta CLO 9 DAC's class F notes and affirmed the rest. Entity/Debt Rating Prior ----------- ------ ----- Penta CLO 9 DAC A XS2344756577 LT AAAsf Affirmed AAAsf B-1 XS2344756494 LT AA+sf Affirmed AA+sf B-2 XS2344756650 LT AA+sf Affirmed AA+sf C XS2344756734 LT A+sf Affirmed A+sf D XS2344756817 LT BBB+sf Affirmed BBB+sf E XS2344757898 LT BB+sf Affirmed BB+sf F XS2344757971 LT B+sf Upgrade Bsf Transaction Summary Penta CLO 9 DAC is a securitisation of mainly senior secured loans (at least 90%) with a component of senior unsecured, mezzanine, and second-lien loans. The portfolio is actively managed by Partners Group (UK) Management Ltd. The transaction will exit its reinvestment period in July 2026. KEY RATING DRIVERS Stable Asset Performance: The rating actions reflect the transaction's resilient performance with portfolio losses below its rating case. The transaction is around 0.4% below par (calculated as the current par difference over the original target par) and currently has no defaults. The transaction is also passing all its collateral-quality, portfolio-profile and coverage tests. Low Refinancing Risks: The transaction has low near- and medium-term refinancing risk, with no portfolio assets maturing in 2025 and 1.6% maturing in 2026. Sufficient Cushion across Structure: All notes have retained sufficient buffer and should be capable of withstanding further defaults in the portfolio. This supports the Stable Outlooks. 'B'/'B-' Portfolio: Fitch assesses the average credit quality of the underlying obligors at 'B'/'B-'. The weighted average rating factor of the current portfolio is 25.1, as calculated by Fitch under its latest criteria. About 11.5% of the portfolio is currently on Negative Outlook. High Recovery Expectations: Senior secured obligations comprise 99.8% of the portfolio. 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 current portfolio is 61.3%. Diversified Portfolio: The portfolio is well-diversified across obligors, countries and industries. The top 10 obligor concentration, as calculated by Fitch, is 11.5%, and no obligor represents more than 1.6% of the portfolio balance. Exposure to the three largest Fitch-defined industries is 37.2%, as calculated by Fitch. Fixed-rate assets as reported by the trustee are at 1%, currently complying with the limit of 5%. Cashflow Analysis: The transaction is within its reinvestment period until July 2026. In addition, after the reinvestment period, the manager can continue to reinvest unscheduled principal proceeds and sale proceeds from credit-risk obligations, subject to compliance with the reinvestment criteria. Given the manager's ability to reinvest, Fitch's analysis is based on a portfolio where the transaction covenants have been stressed to their limits. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Downgrades, which are based on the current portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognised Statistical Rating Organisations and/or European Securities and Markets Authority- registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Penta CLO 9 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. PROVIDUS CLO IX: Fitch Assigns 'B-sf' Final Rating on Cl. F-R Notes ------------------------------------------------------------------- Fitch Ratings has assigned Providus CLO IX DAC reset notes final ratings. Entity/Debt Rating Prior ----------- ------ ----- Providus CLO IX DAC A XS2662911838 LT PIFsf Paid In Full AAAsf A-R XS3088632040 LT AAAsf New Rating B XS2662911754 LT PIFsf Paid In Full AAsf B-R XS3088632396 LT AAsf New Rating C XS2662912489 LT PIFsf Paid In Full Asf C-R XS3088632552 LT Asf New Rating D XS2662912307 LT PIFsf Paid In Full BBB-sf D-R XS3088632719 LT BBB-sf New Rating E XS2662912646 LT PIFsf Paid In Full BB-sf E-R XS3088632982 LT BB-sf New Rating F XS2662912992 LT PIFsf Paid In Full B-sf F-R XS3088633105 LT B-sf New Rating X XS2701616695 LT PIFsf Paid In Full AAAsf X-R XS3088631745 LT AAAsf New Rating Transaction Summary Providus CLO IX 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. Issuance proceeds from the reset notes and additional subordinated notes have been used to redeem the existing notes (except the subordinated notes) and fund the existing portfolio with a target par of EUR400 million. The portfolio is actively managed by Permira European CLO Manager LLP. The CLO has a 4.6-year reinvestment period and an 8.6-year weighted average life test (WAL) at 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 25.1. 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%. Diversified Asset Portfolio (Positive): The transaction includes six Fitch matrices. Two are effective at closing, corresponding to an 8.6-year WAL. Two forward matrices are effective six months after closing, corresponding to an 8.1-year WAL and another two forward matrices are effective 18 months after closing, corresponding to a 7.1-year WAL. All matrices are based on a top-10 obligor concentration limit at 20% and each matrix set corresponds to two different fixed-rate asset limits at 5% and 12.5%. Switching to the forward matrices is subject to the reinvestment target par condition and rating agency confirmation. The transaction also includes other various concentration limits, including a maximum exposure to the three largest Fitch-defined industries of 40%. These covenants ensure that the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has a 4.6-year reinvestment period, which is governed by reinvestment criteria that are 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 Analysis (Neutral): The WAL used for the transaction's Fitch-stressed portfolio analysis and matrices analysis is 12 months less than the WAL covenant. This is to account for the strict reinvestment conditions envisaged by the transaction after the reinvestment period, including the satisfaction of the coverage tests and Fitch 'CCC' limit, alongside a consistently decreasing WAL covenant. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would lead to a downgrade of one notch each for the class D-R and E-R notes, two notches each for the class B-R and C-R notes, to below 'B-sf' for the class F-R notes, and would not affect the class X-R and A-R notes. Downgrades, which are based on the identified portfolio, may occur if the loss expectation is larger than initially assumed, due to unexpectedly high default and portfolio deterioration. The class B-R, D-R, E-R and F-R notes each have a two-notch cushion, the class C-R notes have a one-notch cushion, and the class X-R and A-R notes have no cushion, due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. 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 class A-R to D-R notes, to below 'B-sf' for the class E-R and F-R notes, and would not affect the class X-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 up to four notches each for the notes, except for the 'AAAsf' notes. Upgrades during the reinvestment period, 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. Upgrades after the end of the reinvestment period may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY 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. Most 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 Providus CLO IX 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. PROVIDUS CLO IX: S&P Assigns B-(sf) Rating on Class F-R Notes ------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Providus CLO IX DAC's class X-R, A-R, B-R, C-R, D-R, E-R, and F-R notes. The issuer has unrated subordinated notes outstanding from the existing transaction and, at closing, issued an additional EUR2.70 million of subordinated notes. This transaction is a reset of the already existing transaction. The issuance proceeds of the refinancing notes were used to redeem the refinanced notes (the original transaction's class X, A, B, C, D, E, and F notes) and the ratings on the original notes have been withdrawn. The reinvestment period will be approximately 4.58 years, while the non-call period will be 1.58 years after closing. Under the transaction documents, the rated notes will pay quarterly interest unless there is a frequency switch event. Following this, the notes will switch to semiannual payment. The ratings assigned to the notes 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 2,895.51 Default rate dispersion 508.94 Weighted-average life (years) 4.51 Weighted-average life (years) extended to cover the length of the reinvestment period 4.58 Obligor diversity measure 147.69 Industry diversity measure 14.67 Regional diversity measure 1.39 SPWARF--S&P Global Ratings' weighted-average rating factor. Transaction key metrics Total par amount (mil. EUR) 400.00 Defaulted assets (mil. EUR) 0 Number of performing obligors 182 Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 1.67 Actual 'AAA' weighted-average recovery (%) 36.36 Actual weighted-average spread (net of floors) (%) 3.75 Actual weighted-average coupon (%) 4.56 *Performing assets plus cash and expected recoveries on defaulted assets. SDR--scenario default rate. WARR--Weighted-average recovery rate. S&P said, "Our ratings reflect our assessment of the collateral portfolio's credit quality, which has a weighted-average rating of 'B'. We consider that the portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, we conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we used the EUR400 million target par amount, the actual weighted-average spread of 3.75%, the actual weighted-average coupon of 4.56%, and the actual weighted-average recovery rates at all rating levels. The portfolio is 100% ramped at closing. 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. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "Under our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "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-R, C-R, and D-R notes could withstand stresses commensurate with higher ratings than those we have assigned. However, as the CLO is still in its reinvestment phase, during which the transaction's credit risk profile could deteriorate, we have capped our ratings assigned to the notes. "The class X-R, A-R, and E-R notes can withstand stresses commensurate with the assigned ratings. In our view, the portfolio is granular in nature, and well-diversified across obligors, industries, and asset characteristics when compared with other CLO transactions we have rated recently. As such, we have not applied any additional scenario and sensitivity analysis when assigning our ratings to any classes of notes in this transaction. "For the class F-R notes, our credit and cash flow analysis indicate that the available credit enhancement could withstand stresses commensurate with a lower rating. However, we have applied our 'CCC' rating criteria, resulting in a 'B- (sf)' rating on this class of notes." The ratings uplift for the class F-R notes reflects several key factors, including: -- The class F-R 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 26.37% (for a portfolio with a weighted-average life of 4.58 years), versus if it was to consider a long-term sustainable default rate of 3.1% for 4.58 years, which would result in a target default rate of 14.20%. -- S&P does not believe that there is a one-in-two chance of this tranche defaulting. -- S&P does not envision this tranche defaulting in the next 12-18 months. S&P said, "Following this analysis, we consider that the available credit enhancement for the class F-R notes is commensurate with the assigned 'B- (sf)' rating. "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 the class X-R, A-R, B-R, C-R, D-R, E-R, and F-R notes. "In addition to our standard analysis, we have also included the sensitivity of the ratings on the class X-R to E-R 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-R notes." Providus CLO IX DAC is a European cash flow CLO securitization of a revolving pool, comprising euro-denominated senior secured loans and bonds issued mainly by speculative-grade borrowers. Permira European CLO Manager LLP manages the transaction. 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 and social credit factors is viewed as below average, while governance credit factors are average. For this transaction, the documents prohibit or limit certain assets from being related to certain activities. Accordingly, since the exclusion of assets from these activities 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. "Accordingly, 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." Ratings Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ X-R AAA (sf) 1.00 N/A Three/six-month EURIBOR plus 0.90% A-R AAA (sf) 244.00 39.00 Three/six-month EURIBOR plus 1.35% B-R AA (sf) 48.00 27.00 Three/six-month EURIBOR plus 1.75% C-R A (sf) 24.00 21.00 Three/six-month EURIBOR plus 2.20% D-R BBB- (sf) 26.50 14.38 Three/six-month EURIBOR plus 3.15% E-R BB- (sf) 19.50 9.50 Three/six-month EURIBOR plus 5.50% F-R B- (sf) 12.00 6.50 Three/six-month EURIBOR plus 8.16% Sub. Notes NR 30.10 N/A N/A *The ratings assigned to the class X-R, A-R, and B-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. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. SONA FIOS I: Fitch Assigns 'B-sf' Final Rating on Class F Notes --------------------------------------------------------------- Fitch Ratings has assigned Sona Fios CLO I DAC's refinancing notes final ratings and affirmed its non-refinanced notes as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Sona Fios CLO I DAC A-1 Loan LT AAAsf Affirmed AAAsf A-1 XS2714442220 LT AAAsf Affirmed AAAsf A-2 XS2720029755 LT AAAsf Affirmed AAAsf B-1 XS2714442493 LT PIFsf Paid In Full AAsf B-1-R XS3091972243 LT AAsf New Rating B-2 XS2714442576 LT PIFsf Paid In Full AAsf B-2-R XS3091972326 LT AAsf New Rating C XS2714442659 LT PIFsf Paid In Full Asf C-R XS3091972599 LT Asf New Rating D XS2714442733 LT PIFsf Paid In Full BBB-sf D-R XS3091972672 LT BBB-sf New Rating E XS2714442816 LT PIFsf Paid In Full BB-sf E-R XS3091972755 LT BB-sf New Rating F XS2714442907 LT B-sf Affirmed B-sf Transaction Summary Sona Fios CLO I DAC is a securitisation of mainly senior secured obligations (at least 92.5%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds have been used to purchase a portfolio with a target par of EUR425 million. The portfolio is actively managed by Sona Asset Management (UK) LLP. The CLO has a 4.6-year reinvestment period and an 8.5-year weighted average life test (WAL) at closing. KEY RATING DRIVERS 'B' Portfolio Credit Quality: Fitch places the average credit quality of obligors at 'B'. The weighted average rating factor (WARF), as calculated by Fitch, is 23.4. High Recovery Expectations: At least 92.5% 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 (WARR) of the current portfolio is 61.1%. Diversified Portfolio: The transaction includes four Fitch matrices. Two are effective at closing, corresponding to an 8.5-year WAL, and fixed-rate asset limits at 7.5% and 12.5%, and two are effective one year after closing and are being used, corresponding to the same fixed-rate asset limits but with a 7.5-year WAL. All matrices are based on a top 10 obligor concentration limit at 20%. The transaction includes various other concentration limits in the portfolio, including a maximum exposure to the three largest Fitch-defined industries in the portfolio at 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Affirmation of Non-Refinanced Notes: The affirmation of the non-refinanced notes reflects the transaction's sound performance so far. The April 2025 investor report said the aggregate collateral balance was slightly above the reinvestment target par balance and the transaction was passing all coverage, collateral-quality and portfolio-profile tests. The portfolio had no exposure to defaulted assets and assets with a Fitch-derived rating of 'CCC+' or below were 4.3%, as calculated by the trustee. Transaction Inside Reinvestment Period: The transaction is within its reinvestment period, which expires in July 2028, and the manager can reinvest principal proceeds and sale proceeds, subject to compliance with the reinvestment criteria. Given the manager's ability to reinvest, Fitch's analysis is based on a stressed portfolio, which it tested the notes' achievable ratings across the matrices (which were not updated as part of the refinancing), as the portfolio can still migrate to different collateral quality tests. Cash Flow Analysis: The WAL used for the transaction's Fitch-stressed portfolio analysis is 12 months less than the WAL covenant at the refinancing closing date but subject to a floor of six years, to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period. These include passing the coverage tests and the Fitch 'CCC' bucket limitation test after reinvestment, as well as a WAL covenant that progressively steps down over time, both before and after the end of the reinvestment period. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) and a 25% decrease of the recovery rate (RRR) across all ratings of the current portfolio would have no impact on the class A-1 and A-2 notes, while it would lead to downgrades of one notch each for the class B-1-R to D-R notes, two notches for the class E-R notes and to below 'B-sf' for the class F notes. Downgrades, which are based on the current portfolio, may occur if the loss expectation is larger than initially assumed, due to unexpectedly high defaults and portfolio deterioration. The class B-1-R, B-2-R, D-R and E-R notes each have a rating cushion of two notches and the class C-R notes have a cushion of one notch, due to the better metrics and shorter life of the current portfolio than the Fitch-stressed portfolio. The class A-1, A-2 and F notes have no rating cushion. Should the cushion between the current portfolio and the Fitch-stressed portfolio be eroded either 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 three notches each for the rated 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 each for the class B-1-R to F notes. The 'AAAsf' notes are at the highest level on Fitch's rating scale and cannot be upgraded. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the remaining life of the transaction. Upgrades after the end of the reinvestment period, except for the 'AAAsf' notes, 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. Most 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 this transaction. 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. SONA FIOS I: S&P Assigns BB-(sf) Rating on Class E-R Notes ---------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Sona Fios CLO I DAC's class B-1-R, B-2-R, C-R, D-R, and E-R notes. At the same time, we affirmed our ratings on the existing class A-1 loan and class A-1, A-2, and F notes, and withdrew its ratings on the original class B-1, B-2, C, D, and E notes. At closing, the issuer had unrated subordinated notes outstanding from the existing transaction. On June 20, 2025, Sona Fios I CLO DAC refinanced the existing class B-1, B-2 C, D, and E notes (originally issued in December 2023) through an optional redemption and issued replacement notes of the same notional. The replacement notes are largely subject to the same terms and conditions as the original notes, except that the replacement notes will have a lower spread over Euro Interbank Offered Rate (EURIBOR) than the original notes. 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 2,751.49 Default rate dispersion 552.22 Weighted-average life (years) 4.46 Obligor diversity measure 106.47 Industry diversity measure 23.16 Regional diversity measure 1.19 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 3.40 Actual target 'AAA' weighted-average recovery (%) 37.67 Actual target weighted-average spread (net of floors; %) 4.05 Actual target weighted-average coupon 4.65 Rating rationale Under the transaction documents, the rated notes will pay quarterly interest unless a frequency switch event occurs. Following this, the notes will switch to semiannual payments. The portfolio's reinvestment period will end on July 15, 2028. 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 a EUR422.63 million adjusted target par collateral principal amount, which is lower than the target par amount of EUR425 million. This is because the portfolio features debt issued by Altice France S.A., which we downgraded to 'CC' on Feb. 28, 2025. As a result, we applied a 40% recovery rate at the 'AAA' rating level, carrying the initial position of EUR3.94 million at EUR1.57 million. "We also used the portfolio's covenanted weighted-average spread (4.00%), actual weighted-average coupon (4.65%), and actual weighted-average recovery rates at each rating level. "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. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "Under our structured finance sovereign risk criteria, we consider that the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "The transaction's legal structure and framework is bankruptcy remote, in line with our legal criteria. "Our credit and cash flow analysis indicates that the available credit enhancement for the class B-1-R, B-2-R, C-R, and D-R notes could withstand stresses commensurate with higher ratings than those assigned. However, as the CLO is still in its reinvestment phase, during which the transaction's credit risk profile could deteriorate, we capped our assigned ratings on these refinanced notes. "For the class A-1 loan and class A-1, A-2, and E-R notes, our credit and cash flow analysis indicate that the available credit enhancement could withstand stresses commensurate with the assigned ratings. "For the class F notes, our credit and cash flow analysis indicate that the available credit enhancement could withstand stresses commensurate with a lower rating. However, we have applied our 'CCC' rating criteria, and affirmed our '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 S&P has 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 17.85% (for a portfolio with a weighted-average life of 4.47 years), versus if it was to consider a long-term sustainable default rate of 3.1% for 4.47 years, which would result in a target default rate of 13.86%. -- S&P does not believe that there is a one-in-two chance of this tranche defaulting. -- S&P does not envision this tranche defaulting in the next 12-18 months. S&P said, "Following this analysis, we consider that the available credit enhancement for the class F notes is commensurate with the assigned 'B- (sf)' rating. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe our ratings are commensurate with the available credit enhancement for the class A-1 loan and class A-1, A-2, B-1-R, B-2-R, C-R, D-R, E-R, and F notes. "In addition to our standard analysis, to provide an indication of 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 to E-R notes and class A-1 loan based on four hypothetical scenarios." 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 or limit assets from being related to certain industries. 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." Ratings Ratings assigned Replacement Original notes notes Amount Interest interest Credit Class Rating* (mil. EUR) rate§ rate† enhancement(%) B-1-R AA (sf) 32.50 3mE + 1.50% 3mE + 2.70% 27.01 B-2-R AA (sf) 10.00 4.00% 6.40% 27.01 C-R A (sf) 23.20 3mE + 1.80% 3mE + 4.00% 21.55 D-R BBB- (sf) 27.80 3mE + 2.50% 3mE + 5.90% 15.01 E-R BB- (sf) 18.10 3mE + 3.75% 3mE + 8.19% 10.75 Ratings affirmed Class Rating* Amount (mil. EUR) Notes interest rate (%)§ A-1 AAA (sf) 196.50 1.85 A-1 loan AAA (sf) 50.00 1.85 A-2 AAA (sf) 21.20 2.25 F B- (sf) 15.90 8.39 *The ratings assigned to the class 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, and E-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. †The margins on the notes switch back to initial level after Dec. 20, 2025. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. ST. PAUL'S CLO III-R: Moody's Ups EUR40.8MM E-R Notes Rating to Ba1 ------------------------------------------------------------------- Moody's Ratings has upgraded the ratings on the following notes issued by St. Paul's CLO III-R Designated Activity Company: EUR30,800,000 Class C-R Senior Secured Deferrable Floating Rate Notes due 2032, Upgraded to Aaa (sf); previously on Sep 12, 2024 Upgraded to Aa3 (sf) EUR27,500,000 Class D-R Senior Secured Deferrable Floating Rate Notes due 2032, Upgraded to A1 (sf); previously on Sep 12, 2024 Affirmed Baa1 (sf) EUR40,800,000 Class E-R Senior Secured Deferrable Floating Rate Notes due 2032, Upgraded to Ba1 (sf); previously on Sep 12, 2024 Affirmed Ba2 (sf) Moody's have also affirmed the ratings on the following notes: EUR330,100,000 (Current outstanding amount EUR150,367,645) Class A-R Senior Secured Floating Rate Notes due 2032, Affirmed Aaa (sf); previously on Sep 12, 2024 Affirmed Aaa (sf) EUR48,800,000 Class B-1-R Senior Secured Floating Rate Notes due 2032, Affirmed Aaa (sf); previously on Sep 12, 2024 Upgraded to Aaa (sf) EUR18,400,000 Class B-2-R Senior Secured Fixed Rate Notes due 2032, Affirmed Aaa (sf); previously on Sep 12, 2024 Upgraded to Aaa (sf) EUR16,200,000 Class F-R Senior Secured Deferrable Floating Rate Notes due 2032, Affirmed B2 (sf); previously on Sep 12, 2024 Affirmed B2 (sf) St. Paul's CLO III-R Designated Activity Company, issued in February 2018, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Intermediate Capital Managers Limited. The transaction's reinvestment period ended in January 2022 RATINGS RATIONALE The rating upgrades on the Class C-R, D-R and E-R notes are primarily a result of the significant deleveraging of the senior notes following amortization of the underlying portfolio the last rating action in September 2024. The affirmations on the ratings on the Class A-R, B-1-R, B-2-R and F-R notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. The Class A-R notes have paid down by approximately EUR110.5 million (33.5%) since the last rating action in September 2024 and EUR179.7 million (54.4%) since closing. As a result of the deleveraging, over-collateralisation (OC) has increased across the capital structure. According to the trustee report dated May 2025[1] the Class A/B, Class C, Class D, Class E and Class F OC ratios are reported at 159.21%, 139.47%, 125.57%, 109.39% and 104.06% compared to August 2024[2] levels of 138.38%, 126.50%, 117.50%, 106.28% and 102.39% respectively. The deleveraging and OC improvements primarily resulted from high prepayment rates of leveraged loans in the underlying portfolio. Most of the prepaid proceeds have been applied to amortise the liabilities. All else held equal, such deleveraging is generally a positive credit driver for the CLO's rated liabilities. The key model inputs Moody's uses in Moody's analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on Moody's published methodology and could differ from the trustee's reported numbers. In Moody's base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR343.3m Defaulted Securities: EUR19.9m Diversity Score: 36 Weighted Average Rating Factor (WARF): 3227 Weighted Average Life (WAL): 3.41 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.97% Weighted Average Coupon (WAC): 4.55% Weighted Average Recovery Rate (WARR): 43.98% Par haircut in OC tests and interest diversion test: 1.11% The default probability derives from the credit quality of the collateral pool and Moody's expectations of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into Moody's cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Moody's Global Approach to Rating Collateralized Loan Obligations" published in May 2024. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank, using the methodology "Structured Finance Counterparty Risks" published in May 2025. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analysed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from Moody's other analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. =================== L U X E M B O U R G =================== EUROPEAN MEDCO 3: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed European Medco Development 3 S.a.r.l.'s (Axplora) Long-Term Issuer Default Rating (IDR) at 'B-' with a Stable Outlook. Fitch has also affirmed the rating of the senior secured debt issued by European Medco Development 4 S.a.r.l. at 'B' with a Recovery Rating of 'RR3'. The rating reflects Axplora's modest size, EBITDA gross leverage above 5.5x and weak but improving free cash flow (FCF) generation, which are mitigated by the strength and resilience of its niche and profitable steroids and specialty active pharmaceutical ingredients (API) businesses. Axplora's rating headroom improved in FY25 (year-end March), with EBITDA gross leverage improving to 5.8x, from 6.7x in FY24 as the growth and margin expansion of its steroids business offset the continued weakness at Novasep, whose underperformance had previously caused a deterioration of margins and leverage. Key Rating Drivers Improved Rating Headroom: Axplora's rating headroom has improved, as a 10% rise in EBITDA in FY25 resulted in lower EBITDA gross leverage of 5.8x, while EBITDA margins expanded towards 22% from 18% in FY24 due to cost-cutting initiatives. Early Recovery Signs at Novasep: The performance of Novasep, the pharma CDMO (contract development and manufacturing organisation) division, in FY25 was worse than Fitch's expectations. Its revenue declined by a further 4% and its EBITDA margin contracted further to 8.5%, from 12.2% in FY24, despite cost-cutting efforts. The loss of three key customer contracts led to Novasep's EBITDA and revenue contracting by two thirds and 40%, respectively, from FY23 levels. However, Fitch expects a mild recovery at Novasep in FY26 followed by a moderate recovery to FY28, as the company attempts to replace lost volumes with new contracts, despite the execution risks involved. The contribution of Novasep to group EBITDA has decreased sharply to 14% in FY25 from 42% in FY23, although it still represents 40% of group sales. Axplora continues to invest in building a foundation for future profitable growth in this business, which will influence the rating trajectory. Weak FCF to Gradually Improve: Fitch expects high growth capex to continue to weigh on free cash flow (FCF) generation, with negative FCF in FY26 and FY27, before turning slightly positive from FY28 through earnings expansion. FCF generation turned positive in FY25, after being negative in FY24, due primarily to working capital inflows and lower growth capex. An inability to reverse FCF outflows due to expected high capital intensity would signal increased execution risks and an inability to self-fund organic growth, which may put the ratings under pressure. Some Concentration Risks: The rating is constrained by Axplora's small scale in a fragmented and competitive CDMO market, and customer and product concentration. This concentration is reflected in its business risk assessment, alongside the high operating leverage of Axplora's capex-intensive manufacturing-driven business model, with a high percentage of fixed costs. Resilient Niche Position: Axplora benefits from a resilient niche market position, supported by high barriers to entry in the main subsidiary, PharmaZell, particularly in its high-margin steroids and high-potency APIs. The group has modest geographic diversification, supplying European clients from its production sites in Germany, France, Italy and India. Axplora's credit profile benefits from a supportive environment in the broader pharmaceutical market due to a growing and ageing population and increasing access to medical care, with generic drugs receiving government support as a means of containing rising healthcare costs. Peer Analysis CDMOs, such as Roar BidCo AB (Recipharm; B/Stable), Kepler S.p.A. (Biofarma; B/Stable), F.I.S. Fabbrica Italiana Sintetici S.p.A. (B/Positive), and privately rated CDMOs are the closest peers to Axplora. Following its acquisition of Novasep in 2022, Axplora is slightly larger than Biofarma by revenue, slightly smaller than FIS, less than half the size of Recipharm and Financiere Top Mendel SAS (Ceva Sante; B+/Stable), and five time smaller than Nidda BondCo GmbH (Stada; B/Stable). Axplora's EBITDA margin of about 20% is higher than the low-to-mid teens margins of CDMOs such as Recipharm and FIS, due to its focus on more niche specialty APIs backed by proprietary manufacturing knowledge. Its EBITDA margin is slightly below the low-to-mid 20% of Biofarma and Stada and below the high 20% of Ceva Sante. Fitch also compares Axplora with asset-light niche pharmaceutical companies that own drug patents but outsource their manufacturing to CDMOs, such as CHEPLAPHARM Arzneimittel GmbH (B/Stable), Pharmanovia Bidco Limited (B/Negative) and ADVANZ PHARMA HoldCo Limited (B/Stable). These three peers are larger and more profitable, with EBITDA margins of about 40% and FCF margins typically between 10% and 20% in the case of Cheplapharm and Advanz, but they suffer from neutral or structurally declining organic revenue, relying on acquisitions for growth instead. Key Assumptions - Sales to rebound about 2.5% in FY26, driven by the steroids business, while CDMO and speciality will see flat revenue; for FY27-FY29, a rebound in growth in CDMO, with all divisions growing at the low-to-mid single digits - Fitch-adjusted EBITDA margins gradually improving 23% by FY28 due to efficiency measures and resumption of revenue growth - Capex maintained at 9%-10% of sales - Working-capital cash outflows of about EUR12 million in FY26 and EUR5 million a year in FY27-FY28 - No major M&A - No shareholder distributions Recovery Analysis Its recovery analysis assumes that Axplora would be restructured as a going concern (GC) rather than liquidated in a default. Its estimated GC EBITDA of EUR80 million (unchanged from last year) reflects potential distress from declining sales due to loss of customers, production issues or underperformance in selected product groups due to concentration risks. The GC EBITDA also incorporates corrective measures, which the business would implement following distress. Fitch maintains an enterprise value/EBITDA multiple of 5.5x, which Fitch considers appropriate for a mid-scale CDMO company. After deducting 10% for administrative claims, its principal analysis generates a ranked recovery in the 'RR3' band for the senior secured capital structure, leading to a 'B' instrument rating (unchanged) for the senior secured debt. Its waterfall analysis comprises a EUR520 million term loan B (TLB) and a EUR92.5 million RCF ranking equally among themselves, the latter of which Fitch assumes to be fully drawn prior to distress. In its debt waterfall Fitch also assumes that 50% of the group's estimated EUR50 million of average drawn factoring facilities would be replenished by similar super senior debt in a default. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Declining revenue due to product or production issues, integration challenges, or a loss of customers leading to EBITDA margin declining towards 17% on a sustained basis - Consistently negative FCF, leading to diminished liquidity headroom - Total debt/EBITDA above 7.0x for an extended period - EBITDA/interest paid below 1.5x on a sustained basis Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Increasing product diversification, supporting EBITDA margin expansion above 20% on a sustained basis - Consistently neutral-to-positive FCF margins - Total debt/EBITDA reducing towards 5.5x on a sustained basis - EBITDA/interest paid above 2.5x on a sustained basis Liquidity and Debt Structure Fitch projects Axplora's cash balances to remain between EUR40 million and EUR50 million (Fitch restricts EUR10 million for working-capital purposes), supported by a reduced EUR92.5 million undrawn RCF. Fitch projects slightly negative FCF in FY26-FY27 due to higher working capital and expansionary capex, followed by slightly positive FCF to FY29. Issuer Profile Axplora was created in 2022 through the merger of PharmaZell, a leading European niche pharma API manufacturer, and Novasep, a European pharma CDMO with a substantial presence in North America. 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 ----------- ------ -------- ----- European Medco Development 4 S.a.r.l. senior secured LT B Affirmed RR3 B European Medco Development 3 S.a.r.l. LT IDR B- Affirmed B- =========================== U N I T E D K I N G D O M =========================== ANDREW PLASTICS: Lucas Ross Named as Administrators --------------------------------------------------- Andrew Plastics Ltd was placed into administration proceedings in the High Court of Justice, Court Number: CR-2025-004030, and Stephen Lancaster of Lucas Ross Limited was appointed as administrators on June 18, 2025. Andrew Plastics is a manufacturer of plastic products. Its registered office and principal trading address is at 14/15 Glebe Road, East Gillibrands Industrial Estate, Skelmersdale, WN8 9JP. The joint administrators can be reached at: Stephen Lancaster Lucas Ross Limited Stanmore House 64-68 Blackburn Street Radcliffe Manchester M26 2JS For further details, contact: The Liquidators Tel No: 0161 509 5095 Email: help@lucasross,co.uk Alternative contact: Jake Goosey CONSORT HEALTHCARE: S&P Raises Debt Rating to 'B-', Outlook Stable ------------------------------------------------------------------ S&P Global Ratings raised its issue ratings on the long-term senior secured debt and S&P underlying rating (SPUR) to 'B-' from 'CCC-' reflecting Consort Healthcare (Tameside) PLC's improved financial and operating profile. The stable outlook incorporates S&P's view that the project will be able to complete its remedial works within the agreed timelines and forecasted budget, thereby ensuring its available liquidity is sufficient to support the debt service without being exhausted. Tameside is a limited-purpose vehicle that used bond proceeds to finance the design, construction, and operation of the project for the trust under a 34-year project agreement, as part of the U.K. government's private finance initiative program. The project comprises an 86-bed acute diagnostic and treatment center, a mental health facility, and a surface car park. The upgrade reflects the clarity over the project's financial and operating performance after receiving additional information following the settlement agreement. When Tameside and the trust signed the settlement agreement in December 2024, the parties agreed to a lower annual unitary charge until the end of the project agreement to incorporate the settlement amount that Tameside owes to the trust related to the historical defects. Additionally, the trust waived the rights to withholding significant deductions from the unitary charge, which helped the project to increasing the available liquidity. That said, although S&P still expects that cash flows will be insufficient to meet the next three debt service payments and operational obligations while the remediation works are still in progress, S&P believes that the project will still have enough liquidity to provide cushion and, therefore, not default on the debt obligations. The covenant negotiation to exclude the defect remediation works from the calculation should allow Tameside to prevent a debt acceleration while revamping its operating and financial performance. Under the financing agreement for the existing debt, creditors have the right to accelerate the project's debt obligation in case Tameside fails to report a minimum DSCR of 1.05x. However, as part of the settlement agreement negotiation, the controlling creditors acknowledged that while the defect remediation works are in progress, the project's cash flow generation would not be sufficient to meet its operating and financial obligations, therefore using the available liquidity to support the project in honoring its obligations. Because of that, the project and creditors have agreed that while these defect remediation works are executed, the DSCRs for covenant purposes would exclude the costs related with these works, which should allow Tameside to comply with the 1.05x threshold. Defect remediation costs will pressure the project's credit metrics in the next two years. Tameside should incur these additional costs until the end of 2026, which should lead to S&P Global Ratings-calculated DSCRs below 1.0x at least during the next three debt service payments--September 2025, March 2026, and September 2026. Under the settlement agreement, the project agreed to undertake the remedial costs of the historical defects, out of which GBP1.6 million of these costs have already been paid. S&P said, "We understand most of the works have been undertaken at the main building, with the remaining works well under progress. Therefore, we view as highly unlikely that the project will face cost overruns. Furthermore, under the settlement agreement, Tameside and the trust also agreed to an intrusive, extensive condition survey to identify other potential defects at the site, for which the project has already provisioned an additional GBP1.7 million that it may incur in defect remediation costs during the same period, which we have incorporated in our base case. Given the recent discussions over the settlement agreement, we view the provisioned amount should be enough to cover the additional remediation works." The stable outlook on the debt ratings reflects our expectations that the project will receive the unitary payments without significant retained deductions and that it will complete the defect remedial works within the expected timelines and budget. Although the cash flow generation should not be enough in the next two years to meet operational and financial obligations, the available liquidity should help to sustain the debt service without being depleted. S&P said, "We could lower the ratings on the project's debt if the defect remedial costs exceed those forecast, or if Tameside is not able to sustain a good operating performance--leading to deductions to the unitary charge that are not passed down to subcontractors--that will demand more resources from the available liquidity and therefore increase the risk they will be exhausted. "We do not envision an upgrade of the debt ratings before the project successfully completes the remedial works on the identified defects, and the potential defects from the ongoing condition survey, which we do not expect to happen before the end of 2026. Before considering any positive rating action, the project should demonstrate its ability to consistently present DSCRs of at least 1.0x, and the gradual increase of its liquidity levels to previously reported reserve amounts." DOMINUS CHELMSFORD: Moorfields Named as Administrators ------------------------------------------------------ Dominus Chelmsford 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 004121 of 2025, and Arron Kendall and Michael Solomons of Moorfields were appointed as administrators on June 17, 2025. Dominus Chelmsford engaged in bookkeeping activities. Its registered office is at 1 London Street, Reading, RG1 4PN Its principal trading address is at 42-47 High Street, Chelmsford, Essex, CM2 6FD The joint administrators can be reached at: Arron Kendall Michael Solomons Moorfields 82 St John Street London, EC1M 4JN Tel No: 020-7186-1144 For further details, contact: Ciara Brennan Moorfields 82 St John Street London, EC1M 4JN Email: ciara.brennan@moorfieldscr.com 82 St John Street London, EC1M 4JN GATWICK AIRPORT: Fitch Affirms 'BB' Rating on Senior Secured Debt ----------------------------------------------------------------- Fitch Ratings has affirmed Gatwick Airport Finance plc's (GAF) notes at 'BB' and Gatwick Funding Limited's (GF) notes at 'BBB+'. The Outlooks are Stable. RATING RATIONALE The affirmation of GF's notes reflects Gatwick's ongoing traffic recovery and financial performance being broadly in line with its expectations. In addition, management's flexibility in adjusting capex and equity distributions should mitigate a potential softer traffic environment, with projected leverage in Fitch's rating case below the 'BBB+' rating sensitivity of 6.5x. The affirmation of GAF's notes reflects structural subordination of GAF's debt to the GF ring-fenced group (the group). GAF's debt rating is notched down twice from the group's consolidated profile, which includes GF and GAF debt, due to the structural subordination of GAF debt to GF debt, and GAF's reliance on a single asset (GF). The consolidated approach results from GAF's full ownership of and dependence on the group and GAF's covenants tested at the consolidated level. GAF's notes are due in April 2026, and Fitch will closely monitor the refinancing, which Fitch expects well ahead of the maturity. KEY RATING DRIVERS Revenue Risk - Volume - High Midrange Second-Largest in Strong Catchment Area: Gatwick is the second-largest airport in the UK, serving as an origin-and-destination, leisure-oriented airport with a strong catchment area (London and south-east UK) of 15 million people. It competes with Heathrow, a primary hub and long-haul full-service airport, and Stansted Airport, which focuses on low-cost carriers (LCCs). Gatwick's traffic has been less resilient than EMEA peers' to economic downturns, but Fitch believes this has improved due to its focus on the growing LCC market and long-term contracts with airlines. Revenue Risk - Price - Midrange Commitments Monitored by Regulator: The airport operates under 'light-handed' regulation. The contract framework establishes legally binding commitments between the airport and airlines, creating a default tariff for all airlines. New commitments for 2025-2029 feature an annual increase of gross yield at CPI less 1% in the first two years and CPI for the final two years of the extension period. The framework enables bespoke bilateral contracts, giving the airport pricing flexibility. The contracts incentivise traffic and protect revenue against moderate downside. Infrastructure Dev. & Renewal - Stronger Modern Facilities, Flexible Capex: Gatwick has considerable experience managing its own asset base and has carried out major works in recent years, maintaining and improving its infrastructure. It has a fairly complex operational footprint with a fully owned single main runway, standby runway and two terminals. In the medium term, there are some runway capacity constraints, but the terminals' capacity can be increased by modular capex projects. Short- and medium-term maintenance needs are well defined. The investment programme is significant but modular. Debt Structure - 1 - Midrange; Debt Structure - 2 - Midrange Debt Structure at GF - 'Midrange' Bullet Debt, Protective Features: GF's debt programme benefits from a strong security and covenant package. All debt is senior ranking, with no material exposure to interest-rate risk. The reliance on bullet debt creates refinancing risk, although near-term refinancing needs are low, maturities are fairly evenly spread and Gatwick has a record of access to capital markets. GF's debt assessment benefits from a strong liquidity position and a dedicated GBP250 million undrawn liquidity facility. There are no outstanding maturities until 2026. Debt Structure at GAF - 'Midrange' Reliance on Dividends Upstream: Debt service at GAF (Holdco) is reliant on dividends being upstreamed from the ring-fenced group. The group resumed dividend distributions to its ultimate shareholders in 2024, following the removal of the dividend lock-up. These distributions are flexible and can be adjusted in line with profitability. A debt service reserve account supports interest payments in case of a lock-up. GAF's debt has no material exposure to interest-rate risk, but the reliance on bullet debt (single bullet GBP450 million in 2026) creates refinance risk. Distributions from the group are GAF's sole source of earnings and cash flow to support its debt interest costs. Fitch views GAF's cash flow as having minimal or no diversity and its obligations as structurally subordinated to the group's operating needs. Distributions could be volatile and put pressure on debt service at GAF if the group's cash flow is impaired. GAF debt has a lower rating due to its deep structural subordination to GF's debt. Financial Profile Under Fitch's rating case, projected net debt/EBITDA gradually increases to 6.5x in 2028 from 5.6x in 2025. Consolidated net debt/EBITDA, including GAF debt, exceeds the leverage of the ring-fenced group by around 1x under the rating case. PEER GROUP Heathrow Funding Limited (class A notes A-/Stable) is larger by traffic and has a stronger operational profile as its traffic is more resilient. Consequently, it can tolerate higher leverage with a debt structure broadly aligned with GF's notes. Heathrow's class B notes (BBB/Stable) are a notch below GF's notes as Heathrow's stronger operations are offset by higher leverage. Manchester Airport Group Funding PLC (MAG; senior secured notes: BBB+/Stable) is a larger company by traffic and geographical diversification, with three airports (Manchester Airport, Stansted Airport in London and East Midlands Airport). However, MAG had a larger decline in traffic during the financial crisis. Gatwick has a stronger business profile and more protective debt features, including dedicated reserves and liquidity facilities for debt service, while MAG has lower leverage, which results in the same ratings. GF's higher projected leverage broadly offsets a stronger catchment area than Brussels Airport Company S.A./N.V.'s (senior secured debt: BBB+/Stable). RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade GF: Projected Fitch net debt/EBITDA above 6.5x on a sustained basis under the rating case or failure to prefund its bullet debt well in advance of legal maturities GAF: Weaker-than-expected financial performance, which would trigger dividend lock-up and liquidity not being replenished, or failure to prefund its bullet debt well in advance of legal maturity Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade GF: Projected Fitch net debt/EBITDA below 5.5x on a sustained basis under the rating case with shareholders' commitment to not releverage the company GAF: GF upgrade, coupled with strong liquidity Summary of Financial Adjustments IFRS 16 reversed: lease liabilities are removed from financial liabilities; lease expenses and depreciation of rights-of-use are reclassified as expenses above EBITDA. 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 ----------- ------ ----- Gatwick Funding Limited Gatwick Funding Limited/Airport Revenues - Senior Secured Debt/1 LT LT BBB+ Affirmed BBB+ Gatwick Airport Finance plc Gatwick Airport Finance plc/Airport Revenues - Senior Secured Debt/1 LT LT BB Affirmed BB HERMITAGE 2024 PLC: Fitch Affirms 'BB+sf' Rating on Class E Notes ----------------------------------------------------------------- Fitch Ratings has affirmed Hermitage 2024 Plc's notes. Entity/Debt Rating Prior ----------- ------ ----- Hermitage 2024 Plc Class A XS2847616344 LT AAAsf Affirmed AAAsf Class B XS2847616773 LT AA+sf Affirmed AA+sf Class C XS2847616856 LT Asf Affirmed Asf Class D XS2847616930 LT BBBsf Affirmed BBBsf Class E XS2847617078 LT BB+sf Affirmed BB+sf Transaction Summary Hermitage 2024 Plc is the second securitisation of equipment finance receivables originated by Haydock Finance Limited to SME borrowers in the UK. Affiliates of funds managed by Apollo Global Management, Inc. acquired a majority stake in Haydock in January 2018. KEY RATING DRIVERS Reduced Recovery Haircut: Fitch has reduced its recovery haircut assumption to 50% from 55%. This is due to the availability of more data showing greater consistency in the performance of recoveries. Its assumption for the recovery base case remains 60%. Default assumptions are unchanged at a base case of 8% and a 'AAAsf' default multiple of 4x, resulting in a 'AAAsf' default rate of 32%. Defaults Repurchased at Par: Haydock has periodically repurchased defaulted loans at par since closing, meaning the issuer has not yet incurred credit losses on defaults. The unrated seller and the presence of a repurchase option (not an obligation) mean Fitch does not give credit to future repurchases in its analysis, but any repurchases would support the ratings. Portfolio Remains Granular: There have not been notable increases in obligor or industry concentrations as the portfolio has amortised. The largest and top 10 obligors comprise 0.8% and 4.9% of the portfolio, respectively, a small increase from 0.6% and 4.3% at closing. Exposure to the largest industry has reduced slightly to 17.1% from 17.2%. Fitch continues to rate the transaction under its Consumer ABS Rating Criteria, given the high granularity of the pool. Pro Rata Amortisation: The class A to E notes and the unrated class F notes are amortising pro rata with one another until the breach of certain triggers. In Fitch's view, this increases tail risk and makes the ratings more sensitive to default timing and prepayment rates. Nevertheless, Fitch has analysed the triggers in its cash flow modelling. Fitch believes they are adequate to mitigate the risk at the assigned ratings. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Rating sensitivity to increased default rates: Increase default rate by 10% / 25% / 50% Class A: 'AAAsf' / 'AA+sf' / 'AAsf' Class B: 'AAsf' / 'AA-sf' / 'A+sf' Class C: 'A-sf' / 'A-sf' / 'BBB+sf' Class D: 'BBBsf' / 'BBB-sf' / 'BB+sf' Class E: 'BB+sf' / 'BBsf' / 'BB-sf' Rating sensitivity to reduced recovery rates: Reduce recovery rate by 10% / 25% / 50% Class A: 'AAAsf' / 'AAAsf' / 'AA+sf' Class B: 'AA+sf' / 'AAsf' / 'A+sf' Class C: 'A-sf' / 'BBB+sf' / 'BBB-sf' Class D: 'BBBsf' / 'BB+sf' / 'BBsf' Class E: 'BB+sf' / 'BBsf' / 'CCCsf' Rating sensitivity to increased default rates and reduced recovery rates: Increase default rate and reduce recovery rate each by 10% / 25% / 50% Class A: 'AAAsf' / 'AA+sf' / 'Asf' Class B: 'AAsf' / 'A+sf' / 'BBB+sf' Class C: 'BBB+sf' / 'BBB-sf' / 'BBsf' Class D: 'BBB-sf' / 'BBsf' / 'NRsf' Class E: 'BBsf' / 'B-sf' / 'NRsf' Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Rating sensitivity to reduced default rates and increased recovery rates: Reduce default rate and increase recovery rate by 10% Class B: 'AAAsf' Class C: 'A+sf' Class D: 'A-sf' Class E: 'BBBsf' The class A notes are rated 'AAAsf', which is the highest level on Fitch's scale and cannot be upgraded. 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. Prior to the transaction closing, 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. JAB PROPERTY: Begbies Traynor Named as Administrators ----------------------------------------------------- JAB Property Developments Limited was placed into administration proceedings, and Kevin Mapstone of Begbies Traynor (Central) LLP was appointed as administrators on June 17, 2025. JAB Property Developments engaged in the development of building projects. Its registered office is at 10 Murray Lane, Montrose, DD10 8LF. The joint administrators can be reached at: Kevin Mapstone Begbies Traynor (Central) LLP 2 Bothwell Street Glasgow G2 6LU For further details, contact: Kevin Mapstone Email: glasgow@btguk.com Tel: 0141 222 2230 Alternative contact: Drew Campbell Email: Drew.Campbell@btguk.com LHBO REALISATIONS: MHA Named as Administrators ---------------------------------------------- LHBO Realisations Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts of England and Wales, Court Number: CR-2025-004087, and Georgina Marie Eason and James Alexander Snowdon of MHA were appointed as administrators on June 16, 2025. LHBO Realisations, fka Octagon Broadoaks Holdings Limited, engaged in activities of construction holding companies. Its registered office and principal trading as 128 City Road, London, EC1V 2NX. The joint administrators can be reached at: Georgina Marie Eason James Alexander Snowdon MHA 6th Floor, 2 London Wall Place London, EC2Y 5AU For further details, contact: Fern Taylor Email: Fern.Taylor@mha.co.uk Tel No: 0207 429 4100 Alternative contact: Sam Robinson Email: Sam.Robinson@mha.co.uk Tel No: 0207 429 4100 MORGANASH LIMITED: Parker Walsh Named as Administrators ------------------------------------------------------- Morganash Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts in Manchester, Insolvency & Companies List (ChD), Court Number: CR-2025-000873, and Molly Monks of Parker Walsh Corporate Recovery Limited was appointed as administrators on June 18, 2025. Morganash Limited engaged in various financial services in the UK, Ireland and Germanys. Its registered office and principal trading is at 7 Whitworth Court, Manor Farm Road, Manor Park, Runcorn, Cheshire WA7 1WA. The joint administrators can be reached at: Molly Monk Parker Walsh Corporate Recovery Limited Suite C, Victoria House Bramhall, Cheshire SK7 2BE Email: info@parkerwalsh.co.uk Tel No: 0161 546 8143 RMAC NO. 3: Fitch Lowers Rating on Class F Notes to 'B-sf' ---------------------------------------------------------- Fitch Ratings has downgraded RMAC No.3 PLC's class B to F notes. Fitch has removed all tranches from Under Criteria Observation. Entity/Debt Rating Prior ----------- ------ ----- RMAC No.3 PLC Class A XS2666572693 LT AAAsf Affirmed AAAsf Class B XS2666572776 LT AA-sf Downgrade AAsf Class C XS2666572933 LT A-sf Downgrade A+sf Class D XS2666573071 LT BBBsf Downgrade Asf Class E XS2666573154 LT BB-sf Downgrade BB+sf Class F XS2666573238 LT B-sf Downgrade Bsf Transaction Summary RMAC No.3 is a securitisation of UK owner-occupied (OO) and buy-to-let (BTL) loans originated by GMAC (now Paratus AMC) mainly between 2004 and 2005. The loans were previously securitised under the RMAC No.1 and RMAC No.2 transactions, not rated by Fitch. KEY RATING DRIVERS UK RMBS Rating Criteria Updated: The rating actions reflect Fitch's updated UK RMBS Rating Criteria (see " Fitch Ratings Updates UK RMBS Rating Criteria" dated 23 May 2025). Key changes include updated representative pool weighted average foreclosure frequencies (WAFF), changes to sector selection, revised recovery rate assumptions and changes to cash flow assumptions. Additionally, Fitch now applies dynamic default distributions and high prepayment rate assumptions rather than the previous static assumptions. The most significant revision was to the non-confirming sector representative 'Bsf' WAFF. Fitch has applied newly introduced borrower-level recovery rate caps to underperforming seasoned collateral. The downgrades of the class B to F notes are due to an increased loss resulting from the revised recovery rate expectations. Transaction Adjustment: The portfolio consists of seasoned loans, originated primarily between 2004 and 2005. The OO loans (90.8% of the pool) contain a high proportion of self-certified, interest-only, county court judgements and restructured loan arrangements. Fitch has applied its non-conforming assumptions and an OO transaction adjustment of 0.75x and BTL transaction adjustment of 1.0x. This is because the historical performance of loans over three months in arrears has been better than Fitch's non-conforming index. Stable Performance: Both early and late-stage arrears have remained stable since closing. As of April 2025, 1m+ arrears were just above 25%, with no visible spikes over the past two years. Three-month plus arrears increased slightly to 17% in March 2024, but have since declined to 15% in line with closing and have consistently outperformed Fitch's UK non-conforming index. Low Margins, Limited Excess Spread: The asset pool predominantly consists (94%) of low-margin (with a weighted average margin of 2.1%) floating-rate assets that track the Bank of England base rate (BBR). As the notes pay daily compounded SONIA, the transaction will be exposed to basis risk between the BBR and SONIA, therefore Fitch has stressed the transaction's cash flows for basis risk in line with its criteria. Most of the loans are bullet loans, predominantly maturing between 2028 and 2030. Given the weighted average margin on the notes and senior costs, and the low-yielding assets, limited excess spread will be available. The rated notes need to meet timely interest payments when they become the most senior outstanding. Principal funds are available to cover interest payments on class A and B notes (subject to principal deficiency ledger (PDL) conditions) or the most senior notes outstanding, creating a debit on the PDL of the unrated class Z1 notes, with funds to clear it in many but not all stressed scenarios. Reserve Build-Up, Liquidity Support: The non-amortising general reserve was sized at a static 1.5% of the class A to Z1 closing balance minus the liquidity reserve fund sized at 1.5% of the outstanding balance of class A and B notes. As the liquidity portion decreases in line with the amortisation of the class A and B notes, the portion that can cover losses increases, contributing to the available credit enhancement for the rated notes. The general reserve has increased to 0.7% of the class A-Z1 notes and is currently at the target level. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The transaction's performance may be affected by adverse changes in market conditions and the economic environment. Weakening economic performance is strongly correlated to increasing delinquencies and defaults that could reduce credit enhancement available to the notes. In addition, unexpected declines in recoveries could result in lower net proceeds, which may make certain notes susceptible to negative rating action, depending on the extent of the decline in recoveries. Fitch found that a 15% increase in the WAFF and 15% decrease of the weighted average recovery rate (WARR) would imply the following: Class A : 'A+sf' Class B: 'BBBsf' Class C: 'BB+sf' Class D: 'BB-sf' Class E: 'CCCsf' Class F: Below 'CCCsf' 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 credit enhancement and potential upgrades. Fitch found that a 15% decrease in the WAFF and 15% increase of the WARR would imply the following: Class A: 'AAAsf' Class B: 'AA+sf' Class C: 'AA-sf' Class D: 'A+sf' Class E: 'BBB-sf' Class F: 'BB-sf' 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. Prior to the transaction closing, Fitch sought to receive a third party assessment conducted on the asset portfolio information, but none was available for this transaction. 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 RMAC No.3 PLC has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security due to legacy origination practices that include loans advanced with limited affordability checks, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. RMAC No.3 PLC has an ESG Relevance Score of '4' for Human Rights, Community Relations, Access & Affordability due to legacy originations with a high 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. TAURUS 2025-3 UK: Moody's Assigns (P)Ba3 Rating to GBP32MM E Notes ------------------------------------------------------------------ Moody's Ratings has assigned the following provisional ratings to the notes to be issued by Taurus 2025-3 UK DAC (the "Issuer"): GBP127M Class A Commercial Mortgage Backed Floating Rate Notes due 2035, Assigned (P)Aaa (sf) GBP29M Class B Commercial Mortgage Backed Floating Rate Notes due 2035, Assigned (P)Aa3 (sf) GBP30M Class C Commercial Mortgage Backed Floating Rate Notes due 2035, Assigned (P)A3 (sf) GBP49M Class D Commercial Mortgage Backed Floating Rate Notes due 2035, Assigned (P)Baa3 (sf) GBP32M Class E Commercial Mortgage Backed Floating Rate Notes due 2035, Assigned (P)Ba3 (sf) Taurus 2025-3 UK DAC is a true sale transaction backed by one floating rate loan secured by 14 logistics and light industrial properties and one retail park located throughout the UK. The loan was granted by Bank of America Europe DAC. The sponsor of the loan is the Starwood Capital Group. RATINGS RATIONALE The rating action is based on (i) Moody's assessment of the real estate quality and characteristics of the collateral, (ii) analysis of the loan terms and (iii) the expected legal and structural features of the transaction. Moody's derives a loss expectation for the securitised loan based on Moody's assessments of (i) the loan's default probability both during its term and at maturity and (ii) the value of the collateral. Moody's loan to value ratio (LTV) stands at 80.0%. Moody's property grade is 1.5 for the portfolio (on a scale of 1 to 5, 1 being the best). The key strengths of the transaction include: (i) good quality, well-located property portfolio, close to major transport networks and population centres, (ii) a strong tenant base, (iii) positive rent reversion potential, (iv) favourable market fundamentals for logistics properties, and (v) experienced sponsor and asset management teams. Challenges in the transaction include: (i) elevated default risk and lack of scheduled amortisation prior to a permitted change of control event (CoC), (ii) exposure to the retail sector, (iii) pro-rata allocation of principal proceeds, (iv) weak release price mechanism for the retail property, (v) exposure to older properties with partly weak energy efficiency ratings and (vi) weak covenants with no financial default covenant prior to a permitted CoC. Further, Moody's have rated the notes considering the legal final maturity date of the notes as specified at closing. The transaction includes a concept of a Term Extension Modification which may be passed by way of an Ordinary Resolution of the holders of each class of notes, which will have the effect of extending the date of legal final maturity beyond the initial legal final maturity date. Moody's will consider the impact of any such Term Extension Modification if and when it is enacted, having regard to the circumstances driving the extension. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "EMEA Commercial Mortgage-backed Securitisations" published January 2025. Factors that would lead to an upgrade or downgrade of the ratings: Main factors or circumstances that could lead to a downgrade of the ratings are generally: (i) a decline in the property values backing the underlying loan, (ii) an increase in the default risk assessment or (iii) an extension of the legal final maturity date consistent with Moody's definition of distressed exchange. Main factors or circumstances that could lead to an upgrade of the ratings are generally: (i) an increase in the property values backing the underlying loan, and (ii) a decrease in default risk assessment. VALUECHAIN TECHNOLOGY: KBL Advisory Named as Administrators ----------------------------------------------------------- Valuechain Technology Ltd was placed into administration proceedings in the High Court of Justice Business and Property Courts in Manchester, Insolvency & Companies List (ChD), Court Number: CR-2025-000868, and Richard Cole and Steve Kenny of KBL Advisory Limited were appointed as administrators on June 17, 2025. Valuechain Technology, fka Valuechain.com Solutions Limited, engaged in business and domestic software development. Its registered office and principal trading address is at 42 Glebe Street, Loughborough, Leicestershire LE11 1JR. The joint administrators can be reached at: Richard Cole Steve Kenny KBL Advisory Limited Stamford House, Northenden Road Sale Cheshire, M33 2DH For further information, contact: Richard@kbl-advisory.com Steve@kbl-advisory.com Alternative contact: Cherry Yau Email: cherry.yau@kbl-advisory.com Tel: 0161 637 8100 ********* 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 * * *