250815.mbx

250815.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 Friday, August 15, 2025, Vol. 26, No. 163 Headlines G E R M A N Y TK ELEVATOR: Fitch Affirms 'B' Long-Term IDR, Outlook Stable I R E L A N D BAIN CAPITAL 2022-2: Fitch Assigns BB-(EXP)sf Rating to E-RR Notes OCP EURO 2020-4: Fitch Assigns 'B-sf' Final Rating to Cl. F-R Notes OCP EURO 2020-4: S&P Assigns B- (sf) Rating to Class F-R Notes TRINITAS EURO V: Fitch Assigns 'B-sf' Final Rating to Cl. F-R Notes TRINITAS EURO V: S&P Assigns B- (sf) Rating to Class F-R Notes T U R K E Y FLO MAGAZACILIK: S&P Withdraws Prelim 'B' LT Issuer Credit Rating U N I T E D K I N G D O M AQUALIFE SERVICES: Falls Into Administration CLAIRE'S: Falls Into Administration With 2,150 Jobs at Risk EBUYER (UK): Bought Out of Administration by Frasers Group GEORGE HOTEL: Acquired Out of Administration in GBP3MM Deal GLAISYERS LLP: Collapses Into Administration HELIOS TOWERS: S&P Affirms 'BB-' Long-Term ICR, Outlook Stable IHS HOLDING: S&P Affirms 'B+' Issuer Credit Rating, Outlook Stable X X X X X X X X [] BOOK REVIEW: Dangerous Dreamers - - - - - ============= G E R M A N Y ============= TK ELEVATOR: Fitch Affirms 'B' Long-Term IDR, Outlook Stable ------------------------------------------------------------ Fitch Ratings has affirmed TK Elevator Holdco GmbH's (TKE) Long-Term Issuer Default Rating (IDR) at 'B' with a Stable Outlook. Fitch has also affirmed TK Elevator Midco GmbH and TK Elevator U.S. Newco, Inc.'s senior secured debt ratings at 'B' with a Recovery Rating of 'RR4'. The affirmation reflects TKE's limited business diversification, balanced by Fitch's view that the company will extend its recent strong operating performance. Fitch expects ongoing operational improvements to result in positive free cash flow (FCF) margins from the financial year ending September 2026, also as heavier capex and restructuring cost in FY25-FY26 start to reduce thereafter. Key Rating Drivers Earnings Growth to Aid Deleveraging: Fitch forecasts leverage will improve in the short to medium term on growing EBITDA and FCF generation, although the latter will be limited until FY26. Fitch expects leverage to be 6.8x at FY25, unchanged from FY24, before falling towards 6.6x in FY26 on strong operating performance, cost optimisation and reduced cash interest payments. The ability to maintain healthy margins without a material increase in debt will further strengthen TKE's position in the 'B' rating category. FCF To Turn Positive: Fitch expects the company's FCF margins to remain slightly negative in FY25, before turning positive in FY26. Fitch projects FCF margins will trend towards 3%-3.5% from FY27, driven by a rise in underlying earnings, manageable capex, the lack of dividend or other shareholder payments (apart from a EUR27.9 million upstream loan to the shareholders in FY25) and declining restructuring cash costs. The improvement in FCF generation will also be driven by further reduced interest expenses due to the refinancing in March 2025, with lower interest on the refinanced debt, alongside its expectations of lower base rates until FY28. EBITDA Margin Upside: Fitch expects TKE to maintain high EBITDA margins with cost-cutting measures and a higher share from the more profitable services and modernisation divisions. Its rating case assumes healthy EBITDA margins of 14.9% to FY28, supported by increasing exposure to more profitable markets in the Americas. A successful turnaround of its German manufacturing business, driven by a product-mix shift towards the EOX elevator model, and leaner overall production with much lower human capital should aid further deleveraging. Good Market Position: TKE's position, scale and broad service network provide it with an advantage over many competitors, while its global footprint helps streamline its cost structure. TKE is number four globally in the elevator industry, with a market share of 13%. About two-thirds of the global market is represented by four companies. Limited Business Profile: TKE's business profile is constrained by its narrow product range and end-customer exposure, relative to many other diversified industrials companies. It makes and services elevators and is partly dependent on property construction cycles. This is offset by a strong maintenance business that is resilient in economic cycles and the good geographic diversification of its business, which limits the effects of cyclicality in the property sector. Peer Analysis TKE's cash flow is lower than that of direct peers, such as OTIS Worldwide Corporation, Schindler Holding Limited and KONE Oyj, which all benefit from more streamlined cost structures. Other high-yield diversified industrials issuers, such as INNIO Group Holding GmbH (B+/Positive) and Ammega Group B.V. (B-/Negative), which specialise in a fairly narrow range of products, have also demonstrated better cash flow generation. TKE's gross leverage (forecast unchanged at 6.8x at FY25) is higher than that of most similarly rated peers over the medium term, despite Fitch's expectations of deleveraging. Higher-rated INNIO's leverage was 4.1x at end-2024 but Fitch expects it to increase to 4.6x at end-2025. Fitch expects gross leverage at lower-rated Ammega to reduce to 7.7x in 2026 from 9.0x in 2024, which remains above its downgrade sensitivity of 7.5x. TKE has a superior business profile than these peers, with much greater scale and global diversification, and a stronger market position. It is also less vulnerable to economic cycles and shocks, as demonstrated in recent downturns. Key Assumptions - Revenue to increase 2% in FY25, 2.6% in FY26 and 2.9% in FY27-FY28 - EBITDA margin at 14.8% in FY25, 14.9% in FY26 before edging slightly higher to 15% in FY27 on cost-cutting and price increases - Higher capex in FY25 at 2.6% of revenue, due to EOX project implementation, before slightly decreasing to 2.2% until FY28 - Restructuring-related cash costs at EUR160 million in FY25, before moderating to EUR100 million in FY26 and EUR50 million in FY27 - No dividend or other shareholder payments until 2028, apart from a EUR27.9 million upstream loan to the shareholders in FY25 that was made to offset the foreign-exchange differences related to the repayment of the US dollar PIK at shareholder level with the proceeds of the Alat investment as new shareholder in TKE. Recovery Analysis Fitch's recovery analysis follows its bespoke approach for issuers rated 'B+' and below and found that a going-concern (GC) valuation would yield higher realisable values in distress than liquidation. This reflects the globally concentrated market of elevator manufacturers, where the top four companies have an almost 70% total market share. TKE holds the number four position, with a robust business profile, sustainable cash flow generation capacity, a defensible market position and products that are strongly positioned in the global market. Fitch assumes GC EBITDA of EUR950 million, accounting for a structural increase in EBITDA as a result of the restructuring measures implemented so far. The GC EBITDA would continue to result in persistently negative FCF, effectively representing a post-distress cash flow proxy for the business to remain a GC. In this scenario, TKE depletes internal cash reserves, due to less favourable contractual terms with customers, to help rebuild its order book after restructuring. Fitch applies a 6.0x distressed multiple to EBITDA to estimate total enterprise valuation (EV) of EUR5.7 billion. This reflects TKE's leading market position, high recurring revenue base and international manufacturing and distribution diversification. Fitch assumes its EUR992 million revolving credit facility is fully drawn in distress while its local facility of EUR335 million is excluded from the waterfall analysis as it is cash-collateralised. Fitch also includes TKE's EUR225 million unsecured (working-capital) loans in China as priority debt. Fitch treats its factoring line as priority debt, which is deducted from the EV. The EV is further reduced by 10% for administrative claims, after which the remaining value is distributed to holders of first-lien secured debt totalling EUR 9.7 billion (including fully drawn RCF). Under the capital structure after restructuring, its waterfall analysis generated a ranked recovery in the 'RR4' band, indicating a 'B' instrument rating, at the same level as the IDR, for the senior secured debt, consisting of EUR6.21 billion term loans B and EUR2.54 billion senior secured notes issued by TK Elevator Midco GmbH and TK Elevator U.S. Inc. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage above 7.5x - EBITDA margin below 12% - FCF margin consistently neutral to negative - EBITDA interest coverage below 2.0x Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage below 6.0x - FCF margin above 3% - EBITDA interest coverage above 3.0x Liquidity and Debt Structure TKE had around EUR730 million of reported cash and short-term financial investments at end-March 2025, 1% of which Fitch treats as restricted for intra-year operating needs. Its EUR992 million revolving credit facility maturing in 2030 was drawn down to EUR268 million at end-March 2025. Fitch assesses TKE's liquidity as comfortable over FY25-FY28, based on its expected remaining largely undrawn revolving credit facility, despite a marginally negative FCF margin of 0.5% expected for FY25. Fitch forecasts FCF margins of around 2.4% in FY26-FY27, driven by still meaningful capex (2.2% of revenue) and ongoing, albeit decreasing, restructuring costs. FCF is supported by the lack of dividend payments until 2028 and lower interest payments after the March 2025 refinancing. The latter has also improved the debt maturity profile with most of its debt coming due only in 2030. Issuer Profile TKE's product portfolio includes passenger and freight elevators, escalators and moving walkways, passenger boarding bridges, chair and platform lifts, which is complemented by a recurring, largely resilient, service and modernisation business. 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 ----------- ------ -------- ----- TK Elevator Holdco GmbH LT IDR B Affirmed B TK Elevator U.S. Newco, Inc. senior secured LT B Affirmed RR4 B TK Elevator Midco GmbH senior secured LT B Affirmed RR4 B ============= I R E L A N D ============= BAIN CAPITAL 2022-2: Fitch Assigns BB-(EXP)sf Rating to E-RR Notes ------------------------------------------------------------------ Fitch Ratings has assigned Bain Capital Euro CLO 2022-2 DAC's refinancing notes expected ratings. The assignment of final ratings is contingent on the receipt of final documents conforming to information already reviewed. Entity/Debt Rating ----------- ------ Bain Capital Euro CLO 2022-2 DAC Class A-RR LT AAA(EXP)sf Expected Rating Class B1-RR LT AA(EXP)sf Expected Rating Class B2-RR LT AA(EXP)sf Expected Rating Class C-RR LT A(EXP)sf Expected Rating Class D-RR LT BBB-(EXP)sf Expected Rating Class E-RR LT BB-(EXP)sf Expected Rating Transaction Summary Bain Capital Euro CLO 2022-2 DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans, first-lien last-out loans and high-yield bonds. On the issue date, the existing notes except for class F and the subordinated notes will be refinanced. The portfolio is actively managed by Bain Capital Credit, Ltd. The CLO will exit its reinvestment period in July 2028. The weighted average life test at the refinancing closing date is expected to be at about seven years. KEY RATING DRIVERS 'B'/'B-' Portfolio Credit Quality: Fitch places the average credit quality of obligors at 'B'/'B-'. The weighted average rating factor of the identified portfolio, as calculated by Fitch, is 25.1. High Recovery Expectations: At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate of the current portfolio is 60.9%. Diversified Portfolio: The transaction includes various concentration limits in the portfolio, including a limit for the 10 largest obligors at 26.5%, the 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. 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 tested the notes' achievable ratings across the matrices, since 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, 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 An increase of the default rate (RDR) by 25% of the mean RDR and a decrease of the recovery rate (RRR) by 25% at all rating levels in the current portfolio would have no impact on the class A-RR notes and lead to downgrades of up to three notches for the class B-1RR notes to E-RR. Downgrades may occur if the build-up of the notes' credit enhancement following amortisation does not compensate for a larger loss expectation than initially assumed due to unexpectedly high levels of defaults and portfolio deterioration. Due to the better metrics and shorter life of the current portfolio than the Fitch-stressed portfolio, the class B-1RR, B-2RR, and D-RR to E-RR notes have rating cushions of two notches, and the class C-R notes of one notch. 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 three notches for the class A-RR notes, four notches for the class B-1RR to B-2RR notes, two notches for the class C-RR to D-RR notes, and to below 'B-sf' for the class E-RR notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A reduction of the RDR by 25% of the mean RDR and an increase in the RRR by 25% at all rating levels in the Fitch-stressed portfolio would result in upgrades of up to three notches for all notes, except for the 'AAAsf' rated notes, which are at the highest level on Fitch's scale and cannot be upgraded. During the reinvestment period, based on the Fitch-stressed portfolio, upgrades may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the remaining life of the transaction. After the end of the reinvestment period, upgrades may 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 Bain Capital Euro CLO 2022-2 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 Bain Capital Euro CLO 2022-2 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. OCP EURO 2020-4: Fitch Assigns 'B-sf' Final Rating to Cl. F-R Notes ------------------------------------------------------------------- Fitch Ratings has assigned OCP Euro CLO 2020-4 DAC final ratings, as detailed below. Entity/Debt Rating ----------- ------ OCP Euro CLO 2020-4 DAC. Class A-R XS3127992785 LT AAAsf New Rating Class B-R XS3127993163 LT AAsf New Rating Class C-R XS3127993759 LT Asf New Rating Class D-R XS3127994054 LT BBB-sf New Rating Class E-R XS3127994211 LT BB-sf New Rating Class F-R XS3127994484 LT B-sf New Rating Subordinated Notes LT NRsf New Rating Transaction Summary OCP Euro CLO 2020-4 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. All except the subordinated notes were refinanced, with the remaining proceeds invested in additional assets until the target par amount is reached. The portfolio has a target par of EUR400 million and is actively managed by Onex Credit Partners, LLC. The CLO has a remaining reinvestment period of three years and a seven-year weighted average life test (WAL). KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'/ 'B-'. The Fitch-weighted average rating factor of the identified portfolio is 25.2. 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 62.5%. Diversified Asset Portfolio (Positive): The transaction includes various concentration limits, including a fixed-rate obligation limit of 12.5%, a top 10 obligor concentration limit of 20%, and a maximum exposure to the three largest Fitch-defined industries of 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The two matrices effective at the close of refinancing correspond to a seven-year WAL, fixed-rate asset limits at 5% and 12.5%, and a top 10 obligor concentration limit at 20%. The transaction has a three-year reinvestment period with reinvestment criteria similar to other European CLOs. 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 (Positive): 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, and a WAL covenant that progressively 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 up to one notch for the class C-R to E-R notes and to below 'B-sf' for the class F-R notes. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of 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 F-R notes display rating cushions of two notches, and the class A-R notes have no rating cushion. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded either due to manager trading or negative portfolio credit migration, a 25% increase 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 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 three notches for the notes. The class A-R notes are already 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 OCP Euro CLO 2020-4 DAC - 2025 RESET 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 OCP Euro CLO 2020-4 DAC - 2025 RESET. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. OCP EURO 2020-4: S&P Assigns B- (sf) Rating to Class F-R Notes -------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to OCP Euro CLO 2020-4 DAC's class A-R, B-R, C-R, D-R, E-R, and F-R notes. At closing, the issuer had unrated subordinated notes outstanding from the existing transaction and issued an additional EUR18.90 million of subordinated notes. This transaction is a reset of the already existing transaction that closed in September 2021. The issuance proceeds of the refinancing notes were used to redeem the refinanced notes (the original transaction's class A, B-1, B-2, C, D, E and F notes, for which S&P withdrew its ratings at the same time), and pay fees and expenses incurred in connection with the reset. The ratings assigned to the reset 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 2,780.43 Default rate dispersion 562.37 Weighted-average life (years) 3.86 Obligor diversity measure 135.92 Industry diversity measure 23.36 Regional diversity measure 1.30 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 2.14 Portfolio target par amount (mil. EUR) 400.00 Actual 'AAA' weighted-average recovery (%) 37.59 Actual weighted-average spread (net of floors; %) 3.71 Actual weighted-average coupon 2.95 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 Aug. 13, 2028.The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and bonds. Therefore, S&P has conducted its credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. S&P said, "In our cash flow analysis, we used the EUR400 million target par amount, the actual weighted-average spread (3.71%), actual weighted-average coupon (2.95%), and target 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-R to E-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-R notes, our credit and cash flow analysis indicate that the available credit enhancement could withstand stresses commensurate with the assigned rating. "For the class F-R notes, S&P's 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 S&P has rated and that has 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 18.91% (for a portfolio with a weighted-average life of 3.86 years), versus if we were to consider a long-term sustainable default rate of 3.1% for 3.86 years, which would result in a target default rate of 11.97%. -- 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. -- Following this analysis, S&P considers that the available credit enhancement for the class F-R notes is commensurate with the assigned 'B- (sf)' rating. -- Following S&P's analysis of the credit, cash flow, counterparty, operational, and legal risks, it believes its ratings are commensurate with the available credit enhancement for the class A-R to F-R notes. S&P said, "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-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." 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 Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ A-R AAA (sf) 248.00 38.00 Three/six-month Euribor plus 1.23% B-R AA (sf) 44.00 27.00 Three/six-month Euribor plus 1.95% C-R A (sf) 24.00 21.00 Three/six-month Euribor plus 2.25% D-R BBB- (sf) 28.00 14.00 Three/six-month Euribor plus 3.25% E-R BB- (sf) 18.00 9.50 Three/six-month Euribor plus 5.60% F-R B- (sf) 12.00 6.50 Three/six-month Euribor plus 8.62% Sub. Notes NR 49.90 N/A N/A *S&P's ratings on the class A-R and B-R notes address timely interest and ultimate principal payments. Its ratings on 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. TRINITAS EURO V: Fitch Assigns 'B-sf' Final Rating to Cl. F-R Notes ------------------------------------------------------------------- Fitch Ratings has assigned Trinitas Euro CLO V DAC's reset notes final ratings, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Trinitas Euro CLO V DAC A XS2678881082 LT PIFsf Paid In Full AAAsf A-R XS3121755170 LT AAAsf New Rating B-1 XS2678881249 LT PIFsf Paid In Full AAsf B-2 XS2678881595 LT PIFsf Paid In Full AAsf B-R XS3121755337 LT AAsf New Rating C XS2678881751 LT PIFsf Paid In Full Asf C-R XS3121755501 LT Asf New Rating D XS2678881918 LT PIFsf Paid In Full BBB-sf D-R XS3121755766 LT BBB-sf New Rating E XS2678882130 LT PIFsf Paid In Full BB-sf E-R XS3121755923 LT BB-sf New Rating F XS2678882304 LT PIFsf Paid In Full B-sf F-R XS3121756145 LT B-sf New Rating Transaction Summary Trinitas Euro CLO V DAC reset is a securitisation of mainly senior secured loans and secured senior bonds (at least 90%) with a component of senior unsecured, mezzanine and second-lien loans. On the issue date, the existing notes except for the subordinated notes have been refinanced. The portfolio is actively managed by Trinitas Capital Management, LLC. The CLO has an reinvestment period of about 4.5 years and a seven-year weighted average life (WAL). KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors to be in the 'B' category. The Fitch weighted average rating factor of the identified portfolio is 23.8. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate of the identified portfolio is 62.8%. Diversified Portfolio (Positive): The transaction includes various concentration limits, including a maximum of 40% to the three-largest Fitch-defined industries and a top 10 obligor concentration at 25%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. WAL Step-Up Feature (Neutral): The transaction could extend the WAL test covenant by 18 months from 18 months after closing if the aggregate collateral balance (with defaulted obligations carried at a haircut) is at least at the reinvestment target par amount and the transaction is passing all tests. Portfolio Management (Neutral): The transaction has two matrices that are effective at closing and correspond to a seven-year WAL test, with fixed-rate limits of 5% and 12.5%. The transaction has a reinvestment period of about 4.5 years and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL 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 and a WAL test covenant that progressively steps down, before and after the end of the reinvestment period. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no impact on the class class A-R, B-R or C-R notes and would lead to downgrades of one notch each for the class D-R and E-R notes, and to below 'B-sf' for the class F-R notes. Downgrades, which are based on the identified portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of defaults and portfolio deterioration. The class B-R, D-R, E-R and F-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-R notes do not have any rating cushion as they are already at the highest achievable rating. Should the cushion between the current portfolio and the stressed-case 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 three notches each for the class B-R and E-R notes, two notches each for the class A-R and C-R notes; one notch for the class D-R notes; and below 'B-sf' for the class F-R notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the RDR 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 rated notes, except for the 'AAAsf' rated 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 covenant, 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. 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 Trinitas Euro CLO V DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. TRINITAS EURO V: S&P Assigns B- (sf) Rating to Class F-R Notes -------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Trinitas Euro CLO V DAC's class 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. This transaction is a reset of the already existing transaction. The existing classes of notes--class A, B-1, B-2, C, D, E, and F--were fully redeemed with the proceeds from the issuance of the replacement notes on the reset date. The ratings on the original notes have been withdrawn. The ratings assigned to the reset notes reflect our assessment of: -- The diversified collateral pool, which consists primarily of broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes 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 our counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,649.27 Default rate dispersion 613.09 Weighted-average life (years) 4.25 Weighted-average life including reinvestment period (year s) 4.45 Obligor diversity measure 142.55 Industry diversity measure 21.99 Regional diversity measure 1.28 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 1.93 Actual 'AAA' weighted-average recovery (%) 36.29 Actual weighted-average spread (%) 3.67 Actual weighted-average coupon (%) 5.13 Rating rationale Under the transaction documents, the rated notes pay quarterly interest unless a frequency switch event occurs. Following this, the notes will switch to semiannual payments. The portfolio's reinvestment period will end approximately 4.6 years after closing while the non-call period will end 1.5 years after closing. S&P said, "The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and bonds. Therefore, we have conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we used the EUR350 million target par amount, the actual weighted-average spread (3.67%), the actual weighted-average coupon (5.13%), and the actual portfolio weighted-average recovery rates (WARR) for all rated notes, except the class A-R notes, where we used covenanted WARR of 35.29%. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Under our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. Until the end of the reinvestment period on Jan. 25, 2030, the collateral manager may substitute assets in the portfolio for so long as our CDO Monitor test is maintained or improved in relation to the initial ratings on the notes. This test looks at the total amount of losses that the transaction can sustain as established by the initial cash flows for each rating, and it compares that with the current portfolio's default potential plus par losses to date. As a result, until the end of the reinvestment period, the collateral manager may through trading deteriorate the transaction's current risk profile, if the initial ratings are maintained. The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under S&P's current counterparty criteria. The transaction's legal structure and framework is bankruptcy remote, in line with S&P's legal criteria. S&P said, "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe the ratings assigned to the class A-R and F-R notes are commensurate with the available credit enhancement. Our credit and cash flow analysis indicates that the available credit enhancement for the class B-R to E-R notes could withstand stresses commensurate with higher rating levels than those we have assigned. However, as the CLO will be in its reinvestment phase starting from closing, during which the transaction's credit risk profile could deteriorate, we have capped our ratings assigned to the notes. "Taking the above factors into account and following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe that the assigned ratings are commensurate with the available credit enhancement for all the rated classes of 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-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." 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 Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ A-R AAA (sf) 217.00 38.00 3/6-month EURIBOR + 1.35 B-R AA (sf) 38.50 27.00 3/6-month EURIBOR + 2.00 C-R A (sf) 21.00 21.00 3/6-month EURIBOR + 2.40 D-R BBB- (sf) 24.50 14.00 3/6-month EURIBOR + 3.40 E-R BB- (sf) 15.80 9.49 3/6-month EURIBOR + 5.80 F-R B- (sf) 10.50 6.49 3/6-month EURIBOR + 8.55 Sub NR 25.80 N/A N/A *The ratings assigned to the class 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. NR--Not rated. N/A--Not applicable. EURIBOR--Euro Interbank Offered Rate. =========== T U R K E Y =========== FLO MAGAZACILIK: S&P Withdraws Prelim 'B' LT Issuer Credit Rating ----------------------------------------------------------------- S&P Global Ratings withdrew its 'B' preliminary long-term issuer credit rating on FLO Magazacilik ve Pazarlama A.S., at the issuer's request. At the same time, S&P withdrew its 'B' preliminary rating on the company's proposed unsecured Eurobond. FLO has decided not to proceed with a Eurobond issuance at this point. The outlook was negative at the time of the withdrawal. =========================== U N I T E D K I N G D O M =========================== AQUALIFE SERVICES: Falls Into Administration -------------------------------------------- Aqualife Services Limited, a Stirling-based aquaculture services business, has ceased trading and been placed into administration, according to Business Sale Report. The company had become known for its innovative, spider-like robotic technology, which improved the efficiency of fish vaccination in settings such as salmon farms, notes the report. However, it had come under increasing pressure as a result of a number of headwinds. Over recent years, the company had outsourced its assembly operations as it sought to increase its scalability, but has been hit by significant Canadian orders being postponed, as well as sustained commercial pressures resulting from international uncertainty over trade tariffs, relates Business Sale. The company ceased trading prior to the appointment of Interpath Advisory partners Alistair McAlinden and Geoff Jacobs as joint administrators on August 6 2025, with all staff made redundant, Business Sale relays. Following their appointment, the joint administrators are seeking a buyer for the company's business and assets while they wind down its operations, the report discloses. Interpath has stated that it expects interest in the business and its technology from international buyers in the aquaculture industry. According to Business Sale, Joint administrator and Interpath Advisory's Head of Scotland Alistair McAlinden said: "Aqualife was a pioneer in the use of robotic technology in aquaculture and fish vaccination. It had built a strong reputation for precision and innovation. Unfortunately, the business faced a number of challenges in recent years, including delays to key contracts and increasing financial pressures." Interpath Managing Director and joint administrator Geoff Jacobs added: "Our immediate priority is to support impacted employees and to explore options for the sale of the business and its assets. Given the anticipated interest from players in the global aquaculture sector, interested parties are encouraged to contact us as matter of urgency," the report notes. Founded in 1996, Aqualife Services specialized in fish vaccination, serving the aquaculture sector both in the UK and internationally. In accounts for the year to December 31 2023, Aqualife Services Limited's fixed assets were valued at around GBP862,000 and current assets at around GBP838,000. However, its net liabilities at the time exceeded GBP1.5 million. CLAIRE'S: Falls Into Administration With 2,150 Jobs at Risk ----------------------------------------------------------- Tom Espiner & Faarea Masud of BBC News report that fashion accessories chain Claire's has collapsed into administration in the UK and Ireland, putting 2,150 jobs at risk. The company has 278 shops in the UK and 28 in Ireland but has been struggling with falling sales and fierce competition. Claire's said all outlets will continue trading while it considers "the best possible path forward," notes BBC News. Its administrators from Interpath said they will "assess options for the company", which could include selling the business to "secure a future for this well-loved brand". Claire's chief executive Chris Cramer said the "difficult" decision to appoint administrators allows its stores to remain open, says the report. Claire's had been particularly popular for its ear piercing services and was a common stop in the early 2000s for tweens and teens during weekend shopping trips in malls across the world. Its stores were known for their colorful selection of hair bands, earrings, jewellery, and occasionally for toys like slime and fluffy toys. BBC News says the company will no longer be issuing refunds, nor accepting online orders. It will also not be delivering orders which have not yet shipped, but says customers are only charged on dispatch of items, so customers with outstanding online orders should not be out of pocket. Claire's said that, in cases where it cannot issue refunds, customers should check with their card issuer for other avenues for refunds. According to the report, the move in the UK comes after Claire's filed for bankruptcy in the US earlier this month, where the firm said it was suffering from people moving away from bricks-and-mortar shops. The firm has USD690 million (GBP508 million) of debt. The company operates under two brand names, Claire's and Icing, and is owned by a group of firms, including investment giant Elliott Management. Similar to its UK administration process, the firm said all of its US shops will remain open until an alternative future is found, relates the report. Claire's is the latest casualty in several shop-heavy firms who have suffered from the decline of the High Street as people move more towards shopping online. In its US filing, Mr. Cramer blamed "increased competition, consumer spending trends and the ongoing shift away from brick-and-mortar retail" for the declaration of bankruptcy, as well as "debt obligations" and wider economic turmoil, BBC News says. He said that it was a "challenging period" and that "in the UK, taking this step will allow us to continue to trade the business while we explore the best possible path forward". Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the popularity of the Claire's brand had "waned," notes the report. While stores were once great for brand recognition, she said younger people now pay more attention to brands making their mark online. "The chain is now faced with stiff competition from Tiktok and Insta shops, and by cheap accessories sold by fast fashion giants like Shein and Temu," she said. Other analysts said many accessory shop chain like Claire's have been hit by US President Donald Trump's tariffs imposed on China and its neighbors, BBC News says. "A lot of that category is sourced from Asia, and any increase in import costs hits hard when your price points are low and margins are tight," retail analyst Catherine Shuttleworth said at the time of Claire's US bankruptcy filing. EBUYER (UK): Bought Out of Administration by Frasers Group ---------------------------------------------------------- Business Sale Report relates that Ebuyer (UK) Limited, an electronics retailer that fell into administration last week due to growing financial difficulties over recent years, has been acquired by Frasers Group in a pre-pack deal. In accounts for the year to December 31 2023, a year in which Ebuyer was acquired by Realtime Holdings Limited, the company reported turnover of GBP136.5 million, down from GBP174.2 million a year earlier, while falling from a post-tax profit of around GBP104,000 to a loss of close to GBP1.4 million, the report notes. At the time, directors stated that the "market for electrical products and components declined further" during the year, which it partly attributed to declining discretionary spending amid inflationary issues and the UK's credit crunch, resulting in the 22 per cent drop in turnover, says the report. Despite initiating cost reduction and efficiency plans in order to improve short and long-term profitability, including significant staff layoffs, the company continued to struggle financially and was hit by a winding-up petition filed by landlord Urban Logistics Acquisitions 6 Ltd over unpaid rent, recounts Business Sale. Tony Wright and Alistair Massey of FRP Advisory were appointed as joint administrators of the company on August 8, securing a sale of the business to Mike Ashley's Frasers Group, the report discloses. Following the sale, the Ebuyer website now links to the group's Studio Retail business. According to Business Sale, Joint administrator and FRP Advisory partner Tony Wright said: "Frasers Group has an established record of successfully taking retail brands forward and unlocking their potential. Ebuyer is a recognised name in the consumer technology space, and this transaction provides a platform it can use to re establish its position as one of the UK's largest PC components retailers." Ebuyer, which was founded more than 25 years ago, was a major online tech retailer. In the company's 2023 accounts, its fixed assets were valued at around GBP746,000 and current assets at GBP34.3 million, with net assets of GBP7.8 million. GEORGE HOTEL: Acquired Out of Administration in GBP3MM Deal ----------------------------------------------------------- The George Hotel, a 24-bedroom boutique hotel in Inveraray, has been acquired out of administration in a deal that safeguards dozens of jobs, according to Business Sale Report. Fyne Hospitality has acquired the hotel business, its contents and a residential dwelling in a deal worth GBP3.05 million, notes Business Sale. The business fell into administration on March 28 2025, with administrators attributing the collapse to historic debts, recalls Business Sale. Kevin Mapstone and Kenny Craig of Begbies Traynor were appointed as joint administrators of Inveraray Inn Limited, trading as the George Hotel. Begbies Traynor partner Thomas McKay supervised the hotel's trading during administration while a buyer was sought, the report relates. The marketing campaign for the business attracted interest from 51 parties, with Fyne Hospitality ultimately securing a deal following negotiations and a swift due diligence process. Following the acquisition, co-owners Charlie Maclachlan and Sam Wignell will take over the operation of the hotel, bringing significant industry experience to the business, the report says. Thomas McKay said that Maclachlan and Wignell had "saved a seventh-generation business, a 165-year-old family hotel that is a major contributor to the local and regional economy." He continued: "This deal opens a new chapter for the George Hotel as a historic venue, providing the best possible outcome in challenging circumstances and saving all jobs in the process," notes Business Sale. McKay added that the hotel and hospitality industry had experienced "a turbulent few years" and continued to face uncertainty as a result of high costs for trading, goods and services, which made it difficult to achieve profitability and meet creditor commitments, relates the report. He emphasized that owners "can help to alleviate financial challenges by taking restructuring advice as early as possible," Business Sale notes. The George Hotel, which has been owned and operated by the Clark family for seven generations, employs 43 full and part-time staff. A noted hospitality venue, winning numerous awards for its hotel services, the George Hotel is located on a one-acre site close to the western shore of Loch Fyne. GLAISYERS LLP: Collapses Into Administration -------------------------------------------- Glaisyers LLP, a Birmingham-headquartered law firm, fell into administration at the end of last month, with Gareth Wilcox and Charles Turner of Opus Restructuring appointed as joint administrators, relates Business Sale Report. The report says the firm's collapse was attributed to a number of factors, which were exacerbated by rising costs. Following their appointment, the joint administrators undertook an accelerated M&A process, securing a sale of the firm's work in progress and certain other assets, the report says. Cartwright King Solicitors acquired the firm's family or childcare matters, while Davisons Law will take over its civil litigation cases. In accounts for the year to March 31 2024, Glaisyers LLP's total assets were valued at approximately GBP650,000, with total members' interests totalling marginally less than GBP140,000, the report discloses. HELIOS TOWERS: S&P Affirms 'BB-' Long-Term ICR, Outlook Stable -------------------------------------------------------------- S&P Global Ratings affirmed its long-term issuer credit rating on Helios Towers and its issue rating on the senior unsecured notes issued by HTA Group Ltd. at 'BB-'. The stable outlook reflects S&P's view that Helios Towers will maintain its solid market position and stable cash flows while preserving S&P Global Ratings-adjusted debt to EBITDA comfortably below 5.0x and funds from operations (FFO) to debt above 12%. S&P said, "Following the application of our updated methodology for digital infrastructure companies, we see no overall change in Helios Towers' creditworthiness. The updated methodology results in changes to some components of our rating, but Helios Towers continues to benefit from a solid track record of execution in the relatively low-risk digital infrastructure sector. It enjoys long-term consumer price index-linked contracts, robust cost pass-through mechanisms, and a diversified presence in structurally growing markets with relatively low mobile penetration, expanding populations and mobile network operator (MNO) subscribers, and technology transitions driving increasing demand for telecom infrastructure. We believe this supports resilient and predictable cash flow generation despite its exposure to elevated country risk." Helios Towers' profitability reflects a number of structural factors. These include a higher share of power costs in the cost base, driven by infrastructure constraints in some operating markets and the high-power uptime requirements of MNOs. S&P said, "While these power costs are mitigated through power cost pass-through mechanisms, we note that recent acquisitions have contributed to EBITDA margin dilution, as acquired tower portfolios were characterized by lower colocation rates compared with the group average. That said, we expect Helios Towers' strategy to prioritize organic growth through tenancy additions will support gradual EBITDA margin expansion. We anticipate margins will improve toward the company's stated 55%-60% target by 2026, helping to support the business profile over the medium term." S&P said, "We expect Helios Towers' S&P Global Ratings-adjusted credit ratios to steadily improve in our forecast, building headroom within the current rating. We forecast FFO to debt will rise to around 17% by 2026, with S&P Global Ratings-adjusted leverage improving to about 3.4x. The company is targeting net leverage of about 3.0x by 2026, which we view as broadly equivalent to S&P Global Ratings-adjusted leverage of roughly 3.4x-3.5x. We believe Helios Towers' strong positions in structurally growing markets will continue to support solid tenancy growth, driving FFO and EBITDA expansion. As of June 30, 2025, the company reported net leverage of 3.8x, reflecting this ongoing momentum. In our base case, we forecast S&P Global Ratings-adjusted EBITDA margins will increase to about 54% by 2026 from approximately 50% in 2023, driven by continued tenancy growth. With higher absolute EBITDA and moderated capital expenditure (capex) levels ($170 million annually), we expect free operating cash flow (FOCF) to exceed $100 million in 2026. This should enhance the company's credit metrics headroom over 2025-2026. "Our rating on Helios Towers is two notches higher than our blended foreign currency sovereign creditworthiness assessment of 'B' on the Democratic Republic of the Congo (DRC) and Tanzania, because Helios Towers passes our hypothetical sovereign default stress test in both countries. In our hypothetical sovereign default stress tests, we assume, among other factors, a 50% devaluation of the local operating currencies against hard currencies and a 20%-30% decline in organic EBITDA. Helios Towers' available liquidity facilities and cash are held in hard currencies, primarily in Mauritius, which we think has significantly stronger creditworthiness than the DRC and Tanzania. This supports our view that the company has adequate liquidity and will continue to pass the stress tests. Our transfer and convertibility (T&C) assessments of the DRC and Tanzania do not cap our rating on Helios Towers, given the geographical diversity of the company's exposure and available cash and liquidity facilities held in Mauritius. The T&C assessment reflects our view of the likelihood of a sovereign restricting corporations' access to foreign currency needed to satisfy their debt service obligations, for any country. Helios Towers continues to upstream cash from its operating subsidiaries through shareholder loans, with no major cash repatriation issues noted to date. "The stable outlook reflects our view that Helios Towers will maintain S&P Global Ratings-adjusted debt to EBITDA comfortably below 5.0x and adjusted FFO to debt above 12%, supported by gradually improving positive FOCF from existing operations. The stable outlook also reflects our understanding that Helios Towers will adhere to a prudent financial policy that will support cash generation, with sizable acquisitions in the next 12 months less likely." S&P would lower its rating on Helios Towers in the next 12-18 months if: -- S&P's blended sovereign foreign currency rating falls below the 'B' level as a result of a downgrade of its foreign currency issuer credit rating on the DRC or a deterioration of its view on Tanzania's creditworthiness. -- The company is unable to pass S&P's hypothetical sovereign default stress test in the DRC or Tanzania. -- Adjusted debt to EBITDA increases sustainably above 5x or adjusted FFO to debt falls below 12%. This could result from slower-than-expected tenancy growth, coupled with less-than-optimal operating efficiencies, resulting in S&P Global Ratings-adjusted EBITDA margins below 50%. Also, an aggressive increase in debt to fund capital investments or acquisitions could result in leverage metrics above our expectations. -- Liquidity weakens substantially as a result of a large acquisition or FOCF remains negative for a prolonged period due to expansionary capex investments, without commensurate growth in EBITDA, resulting in higher-than-expected leverage or less-than-adequate liquidity. S&P sees limited potential for an upgrade in the next 12 months due to the current blended sovereign rating of 'B'. IHS HOLDING: S&P Affirms 'B+' Issuer Credit Rating, Outlook Stable ------------------------------------------------------------------ S&P Global Ratings affirmed its 'B+' long-term issuer credit rating on IHS Holding Ltd. and its issue ratings on the senior unsecured notes issued by IHS Holding and IHS Mauritius NG Holdco Ltd. (formerly IHS Netherlands Holdco B.V.) The stable outlook reflects that, despite the economic volatility, we expect IHS Holding's EBITDA to sustainably support weighted S&P Global Ratings-adjusted funds from operations (FFO) to debt of 12%-20% and free operating cash flow (FOCF) to debt above 5% over the next three years. Following the application of our updated methodology for digital infrastructure companies, we see no overall change in IHS Holding Ltd.'s creditworthiness. The updated methodology results in changes to some components of our rating, but the company continues to benefit from its solid track record in the relatively low-risk digital infrastructure sector. S&P continues to recognize IHS Holding Ltd.'s resilient business model supported by long-term contracts, foreign currency and price escalators, and cost saving initiatives, all of which underpin resilient and predictable cash flow. S&P said, "We expect IHS Holding Ltd.'s S&P Global Ratings-adjusted credit metrics will continue to improve in our forecast, creating positive pressure on our stand-alone credit profile (SACP) on the company. We forecast FFO to debt increasing to over 17% by 2026, with S&P Global Ratings-adjusted leverage improving to about 3.6x and remaining well within IHS Holding Ltd.'s reported net leverage target of 3x-4x. As of June 2025, the company reported net leverage of 3.4x. The company's leading position in structurally growing markets characterized by expanding populations and growing demand for telecom infrastructure continues to underpin our expectation for solid tenancy growth, which will drive an increase in FFO and an improving EBITDA margin profile. Furthermore, IHS Holding Ltd.'s relatively high proportion of discretionary capital expenditure (capex) will provide it with additional financial flexibility as it continues to grow. The lower capital intensity aided by project green investments in recent years supports our expectation for S&P Global Ratings-adjusted free operating cash flow to exceed $260 million in fiscal 2025. "Our ratings on IHS continue to be constrained by our transfer and convertibility (T&C) assessment for Nigeria. Given the company's significant economic exposure to Nigeria (B-/Stable/B), we apply our stress test for the sovereign to determine whether we can rate the company above it. In our hypothetical sovereign default stress tests, we assume, among other factors, a further 50% devaluation of the Nigerian naira against the U.S. dollar, and a 20% decline in EBITDA from Nigeria. IHS Holding Ltd.'s available cash in hard currency, as well as the revolving credit facility (RCF) of $300 million at the holding company level, support our view that the group has adequate liquidity to pass the stress test and that it would not default if the sovereign were to, so we do not cap our long-term rating on IHS at the level of Nigeria. However, we cap our assessment of IHS Holding Ltd. at two notches above our 'B-' T&C assessment for Nigeria, given that 50%-70% of the company's EBITDA exposure is to that jurisdiction. The T&C assessment reflects our view of the likelihood of a sovereign restricting corporations' access to foreign currency needed to service debt obligations, for any country. IHS Holding Ltd. has demonstrated satisfactory capability to extract cash from Nigeria, and its other operating subsidiaries. "The stable outlook on IHS Holding Ltd. reflects that of Nigeria and our expectation that the company's EBITDA will support weighted S&P Global Ratings-adjusted FFO to debt of 12%-20% and FOCF to debt above 5% over the next three years." S&P could lower its rating on IHS Holding Ltd. or revise the outlook to negative if: -- S&P takes a negative rating action on Nigeria; -- Changes in Nigeria's economy result in significant deterioration in EBITDA there, such that the group's FFO to debt falls sustainably below 12% and FOCF to debt falls below 5%; -- S&P said, "Our foreign currency rating on the group can no longer exceed our sovereign rating on Nigeria by at least two notches, for example because liquidity sources no longer cover uses by sufficiently more than 1x in a sovereign stress scenario, or the group cannot pass our T&C stress test. We think this could result from lower-than-expected cash generation, higher-than-expected capital investment needs, and a reduction in cash and cash equivalents, possibly due to a large acquisition;" or -- The earnings contribution from countries other than Nigeria does not remain sustainably above 30%. -- All else being equal, an upgrade would be contingent on an improvement in the SACP to above 'b+', coupled with our T&C assessment on Nigeria being above the 'B-' assessment. =============== X X X X X X X X =============== [] BOOK REVIEW: Dangerous Dreamers ---------------------------------- Dangerous Dreamers: The Financial Innovators from Charles Merrill to Michael Milken Author: Robert Sobel Publisher: Beard Books Softcover: 271 pages List Price: $34.95 Order your own personal copy at http://www.beardbooks.com/beardbooks/dangerous_dreamers.html "For the rest of his life, Milken will be accused of crimes for which he was not charged and to which he did not plead guilty." Milken is -- as anyone familiar with junk bonds and the scandals surrounding them in the 1980s knows -- Michael Milken of the Drexel Burnham banking and investment firm. In this book, noted business writer Robert Sobel analyzes the Milken criminal case and the many other phenomena of the period that lay the basis for the modern-day financial industry. However, the author's perspective is broader than the sensationalistic excesses and purported crimes of Milken and his like. Sobel is interested in the individuals and businesses that introduced and developed financial concepts, vehicles, and transactions that increased the wealth of millions of average persons. Sobel's examination of the byplay between financial chicanery and economic revitalization extends back to the Gilded Age of the latter 1800s and early 1900s. This was a time when Jim Fisk, Jay Gould, and others were making fortunes through skulduggery and manipulation of the financial markets, while Cornelius Vanderbilt and others were building the "world's finest railroad system." Later, in the "Junk Decade of the 1980s," as Ivan Boesky and others were reaping fortunes from "dubious" transactions, financial firms such as Forstmann Little and Kohlberg Kravis Roberts "played major positive roles in the largest restructuring of American industry since the turn of the century." While Sobel does not try to defend the excesses and illegalities of individuals and companies, he basically sees the Milkens of the world as "vehicles through which the phenomena of junk finance and leveraged buyouts played themselves out." This was the "Conglomerate Era." Mergers and acquisitions were at the center of financial and economic activity, and CEOs at major corporations were in competition to grow their corporations. Milken, Boesky, and others provided the means for this end. However, it is important to note that they did not originate the mergers and acquisition phenomenon. At first, Milken et al. were much appreciated by major corporations and the financial industry. However, when mergers and acquisition excesses began to bear sour fruit, Milken and his company Drexel Burnham took the brunt of public indignation. The government's search for villains then began. Sobel examines the ripple effects of financial innovators who became financial pariahs. Milken's journey, for example, cannot be unraveled from that of a company such as Beatrice. Starting in 1960, the food company Beatrice started making large-scale acquisitions. CEO Williams Karnes, who "ran a tight, lean ship, with a small office staff," was succeeded by corporate heads who brought in corporate jets and limousines, greatly increased staff, and moved into regal office space. James Dutt of Beatrice is singled out as symptomatic of the heedless mindset that crept into corporate America in the 1980s. Sobol's tale of the complexities and ambivalence of this transitional period is bolstered by memorable portraits of key players and companies. In so doing, he demonstrates once more why he has long been recognized as one of the country's most important business writers. About the Author Robert Sobel was born in 1931 and died in 1999. He was a prolific historian of American business life, writing or editing more than 50 books and hundreds of articles and corporate profiles. He was a professor of business at Hofstra University for 43 years and held a Ph.D. from New York University. Besides producing books, articles, book reviews, scripts for television and audiotapes, he was a weekly columnist for Newsday from 1972 to 1988. At the time of his death he was a contributing editor to Barron's Magazine. ********* 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. 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