250822.mbx

250822.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 22, 2025, Vol. 26, No. 168 Headlines F R A N C E AC AJACCIO: Files for Bankruptcy, 180 Jobs at Stake I R E L A N D ANCHORAGE CAPITAL 2: Moody's Affirms B3 Rating on EUR12MM F Notes ARINI EUROPEAN I: S&P Assigns B- (sf) Rating to Class F-R Notes AURIUM CLO V: Moody's Affirms B3 Rating on EUR14.3MM Class F Notes AVOCA CLO XXXVII: S&P Assigns B- (sf) Rating to Class F Notes BOSPHORUS CLO V: Moody's Ups Rating on EUR18.4MM Cl. E Notes to Ba2 CVC CORDATUS XI: Moody's Ups Rating on EUR14.625MM F Notes to B1 INVESCO EURO I: Moody's Cuts Rating on EUR12MM Class F Notes to B2 RRE 6: S&P Assigns Preliminary BB- (sf) Rating to Class D-R Notes SIGNAL HARMONIC I: S&P Assigns Prelim B- (sf) Rating to F-R Notes L U X E M B O U R G ALEXANDRITE LAKE: Fitch Rates EUR300MM Sr. Sec. Bond Final 'BB-' N E T H E R L A N D S CELAVITA: Potato Processor Declared Bankrupt VAN LIER: More Units of Dutch Shoe Brand Declared Bankrupt P O L A N D 7ANNA: Files for Bankruptcy S W I T Z E R L A N D PEACH PROPERTY: Moody's Puts 'B3' CFR Under Review for Upgrade U N I T E D K I N G D O M AQUALIFE SERVICES: Interpath Ltd Named as Joint Administrators B WOMACK: JT Maxwell Named as Administrator BLOSSOM HOME CARE: AMS Business Named as Administrators EDC GROUP: Shut Down After Spending Clients' Money GLODEN LIMITED: Begbies Traynor Named as Joint Administrators KENT HOUSING: PKF Littlejohn Named as Joint Administrators MAGNUS SEARCH: KR8 Advisory Named as Joint Administrators MERLIN ENTERTAINMENTS: S&P Lowers ICR to 'CCC+', Outlook Stable ROXY MEDIA: Faces Further Delay in Winding up Case SHOOT BLUE: Opus Restructuring Named as Joint Administrators SPECIALTY STEELS: Collapses Into Government Control SPURGEON'S COLLEGE: BDO LLP Named as Joint Administrators STAGWOOD INDUSTRIES: MHA Named as Administrators UPPER STREET FILM: Insolve Plus Named as Administrator X X X X X X X X [] BOOK REVIEW: Taking Charge [] KROLL: Private Schools See Spike in Company Administration - - - - - =========== F R A N C E =========== AC AJACCIO: Files for Bankruptcy, 180 Jobs at Stake --------------------------------------------------- Yahoo Sports reports that after months of financial turmoil, AC Ajaccio have filed for bankruptcy, losing their professional status for the first time in 27 years. According to Corse-Matin, the Corsican club submitted their declaration of insolvency on Monday, Aug. 18, at the Ajaccio commercial court. The decision comes after the board failed to attract investors or cover an estimated EUR13 million deficit. The move will result in the loss of around 180 jobs and the closure of the club's training centre, which was named the best in Ligue 2 as recently as May, notes the report. The report relates that Ajaccio's immediate future remains unclear. The French football financial watchdog, the DNCG, has excluded the club from all national competitions, which would force a restart in Regional 1 (sixth tier). However, the association managing the ACA's amateur arm hoped to appeal in a last-ditch effort to secure a place in National 3 (fifth tier). Supporters have already mobilized in an attempt to save the club, notes Yahoo Sports. The Socios ACA launched an online fundraising campaign which raised more than EUR10,000 in its first 24 hours. Ajaccio, twice promoted to Ligue 1 in the past decade, now face the most precarious moment in their modern history, the report discloses. The club's current board is expected to resign in the coming days as survival efforts shift to the grassroots level. ============= I R E L A N D ============= ANCHORAGE CAPITAL 2: Moody's Affirms B3 Rating on EUR12MM F Notes ----------------------------------------------------------------- Moody's Ratings has upgraded the ratings on the following notes issued by Anchorage Capital Europe CLO 2 DAC: EUR28,000,000 Class B-1 Senior Secured Floating Rate Notes due 2034, Upgraded to Aaa (sf); previously on Apr 20, 2021 Definitive Rating Assigned Aa2 (sf) EUR9,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2034, Upgraded to Aaa (sf); previously on Apr 20, 2021 Definitive Rating Assigned Aa2 (sf) EUR29,000,000 Class C Senior Secured Deferrable Floating Rate Notes due 2034, Upgraded to A1 (sf); previously on Apr 20, 2021 Definitive Rating Assigned A3 (sf) EUR28,000,000 Class D Senior Secured Deferrable Floating Rate Notes due 2034, Upgraded to Baa2 (sf); previously on Apr 20, 2021 Definitive Rating Assigned Baa3 (sf) Moody's have also affirmed the ratings on the following notes: EUR240,000,000 Class A Senior Secured Floating Rate Notes due 2034, Affirmed Aaa (sf); previously on Apr 20, 2021 Definitive Rating Assigned Aaa (sf) EUR26,000,000 Class E Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Ba3 (sf); previously on Apr 20, 2021 Definitive Rating Assigned Ba3 (sf) EUR12,000,000 Class F Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed B3 (sf); previously on Apr 20, 2021 Definitive Rating Assigned B3 (sf) Anchorage Capital Europe CLO 2 DAC, issued in October 2018 and reset in April 2021, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Anchorage Capital Group, L.L.C. The transaction's reinvestment period ended in July 2025. RATINGS RATIONALE The rating upgrades on the Class B-1, Class B-2, Class C and Class D notes are primarily a result of the transaction having reached the end of the reinvestment period in July 2025. The affirmations on the ratings on the Class A, Class E and Class F 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. In light of reinvestment restrictions during the amortisation period, and therefore the limited ability to effect significant changes to the current collateral pool, Moody's analysed the deal assuming a higher likelihood that the collateral pool characteristics would maintain an adequate buffer relative to certain covenant requirements. 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 methodologies 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: EUR389.8m Defaulted Securities: EUR5.5m Diversity Score: 58 Weighted Average Rating Factor (WARF): 2962 Weighted Average Life (WAL): 4.7 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.8 % Weighted Average Coupon (WAC): 5.6% Weighted Average Recovery Rate (WARR): 43.10% Par haircut in OC tests and interest diversion test: 0% 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. 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. ARINI EUROPEAN I: S&P Assigns B- (sf) Rating to Class F-R Notes --------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Arini European CLO I DAC's class A-R loan and class A-R, B-R, C-R, D-R, E-R, and F-R notes. The issuer also issued unrated subordinated notes. This transaction is a reset of the already existing transaction that closed in December 2023. The existing notes were fully redeemed with the proceeds from the issuance of the replacement loan and notes on the reset date and the ratings on the original notes have been withdrawn. This is a European cash flow CLO transaction, securitizing a pool of primarily syndicated senior secured loans and bonds. The portfolio's reinvestment period will end approximately 4.88 years after closing. Under the transaction documents, the rated loan and notes pay quarterly interest unless there is a frequency switch event. Following this, the loan and notes will switch to semiannual payment. The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, we have conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,637.77 Default rate dispersion 631.51 Weighted-average life (years) 4.88 Obligor diversity measure 144.07 Industry diversity measure 25.48 Regional diversity measure 1.29 Transaction key metrics Total par amount (mil. EUR) 400 Defaulted assets (mil. EUR) 0 Number of performing obligors 180 Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 2.03 Actual 'AAA' weighted-average recovery (%) 37.71 Actual weighted-average spread net of floors (%) 3.63 Actual weighted-average coupon (%) 3.75 S&P said, "In our cash flow analysis, although the target par amount is EUR400 million, we have modeled EUR399.7 million. This is due to the lack of effective date and the reliance on note proceeds to bring the portfolio up to target par. We also ran our cash flows based on the covenanted weighted-average spread of 3.63%, the covenanted weighted-average coupon of 3.75%, and the actual weighted-average recovery rates for the rated loan and notes. 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. "Following the application of our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently limited at the assigned ratings, as the exposure to individual sovereigns does not exceed the diversification thresholds outlined in our criteria. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "The transaction's legal structure is bankruptcy remote, in line with our legal criteria. “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 A-R loan and class A-R to F-R notes. "Our credit and cash flow analysis indicates that the available credit enhancement for the class B-R to E-R notes is commensurate with higher ratings than those we have assigned. However, as the CLO will have a reinvestment period, during which the transaction's credit risk profile could deteriorate, we have capped our ratings on these notes. "In addition to our standard analysis, we have also included the sensitivity of the ratings on the class A-R loan and 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." Arini European CLO I 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. Arini Capital Management US LLC is the collateral manager. Ratings Amount Class Rating* (mil. EUR) Sub (%) Interest rate§ A-R AAA (sf) 118.60 38.00 Three/six-month EURIBOR plus 1.34% A-R loan AAA (sf) 129.40 38.00 Three/six-month EURIBOR plus 1.34% B-R AA (sf) 44.00 27.00 Three/six-month EURIBOR plus 2.00% C-R A (sf) 22.00 21.50 Three/six-month EURIBOR plus 2.40% D-R BBB- (sf) 30.00 14.00 Three/six-month EURIBOR plus 3.30% E-R BB- (sf) 18.00 9.50 Three/six-month EURIBOR plus 5.75% F-R B- (sf) 12.00 6.50 Three/six-month EURIBOR plus 8.44% Sub NR 33.30 N/A N/A *The ratings assigned to the class A-R loan and class A-R and B-R notes address timely interest and ultimate principal payments. The ratings assigned to the class C-R to 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. AURIUM CLO V: Moody's Affirms B3 Rating on EUR14.3MM Class F Notes ------------------------------------------------------------------ Moody's Ratings has upgraded the ratings on the following notes issued by Aurium CLO V Designated Activity Company: EUR25,750,000 Class B-1 Senior Secured Floating Rate Notes due 2034, Upgraded to Aaa (sf); previously on Apr 19, 2021 Definitive Rating Assigned Aa2 (sf) EUR12,750,000 Class B-2 Senior Secured Fixed Rate Notes due 2034, Upgraded to Aaa (sf); previously on Apr 19, 2021 Definitive Rating Assigned Aa2 (sf) Moody's have also affirmed the ratings on the following debt: EUR172,800,000 Class A Senior Secured Floating Rate Notes due 2034, Affirmed Aaa (sf); previously on Apr 19, 2021 Definitive Rating Assigned Aaa (sf) EUR100,000,000 Class A Senior Secured Floating Rate Loan due 2034, Affirmed Aaa (sf); previously on Apr 19, 2021 Definitive Rating Assigned Aaa (sf) EUR36,300,000 Class C Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed A2 (sf); previously on Apr 19, 2021 Definitive Rating Assigned A2 (sf) EUR27,500,000 Class D Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Baa3 (sf); previously on Apr 19, 2021 Definitive Rating Assigned Baa3 (sf) EUR22,000,000 Class E Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Ba3 (sf); previously on Apr 19, 2021 Definitive Rating Assigned Ba3 (sf) EUR14,300,000 Class F Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed B3 (sf); previously on Apr 19, 2021 Definitive Rating Assigned B3 (sf) Aurium CLO V Designated Activity Company, issued in April 2019 and refinanced in April 2021, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Spire Management Limited ("Spire"). The transaction's reinvestment period ended in July 2025. RATINGS RATIONALE The rating upgrades on the Class B-1 and Class B-2 notes are primarily a result of the transaction having reached the end of the reinvestment period in July 2025. The affirmations on the ratings on the Class A debt, Class C, Class D, Class E and Class F 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. In light of reinvestment restrictions during the amortisation period, and therefore the limited ability to effect significant changes to the current collateral pool, Moody's analysed the deal assuming a higher likelihood that the collateral pool characteristics would maintain an adequate buffer relative to certain covenant requirements. 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 methodologies 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: EUR435.0 million Defaulted Securities: EUR2.6 million Diversity Score: 60 Weighted Average Rating Factor (WARF): 2878 Weighted Average Life (WAL): 4.4 years Weighted Average Spread (WAS) (before accounting for Euribor /reference rate floors): 3.67% Weighted Average Coupon (WAC): 3.27% Weighted Average Recovery Rate (WARR): 43.96% Par haircut in OC tests and interest diversion test: 0% 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 debt's performance is subject to uncertainty. The debt's performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. 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 debt 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 debt 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. AVOCA CLO XXXVII: S&P Assigns B- (sf) Rating to Class F Notes ------------------------------------------------------------- S&P Global Ratings assigned its ratings to Avoca CLO XXXVII DAC's class A, B, C, D, E, and F notes. At closing, the issuer has also issued unrated subordinated notes. The ratings assigned to Avoca CLO XXXVII's 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 weighted-average rating factor 2,813.51 Default rate dispersion 445.62 Weighted-average life (years) 4.76 Obligor diversity measure 183.57 Industry diversity measure 21.37 Regional diversity measure 1.24 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 1.31 'AAA' weighted-average recovery (%) 36.77 Actual weighted-average spread (%) 3.67 Actual covenanted weighted-average coupon (%) 5.63 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 approximately 4.5 years after closing. 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 its criteria for corporate cash flow CDOs. S&P said, "In our cash flow analysis, we modeled a target par of EUR400 million. Additionally, we modeled the actual weighted-average spread (3.67%), the actual weighted-average coupon (5.63%), and the identified weighted-average recovery rates calculated in line with our CLO criteria for all classes of notes. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Until the end of the reinvestment period on April 15, 2030, the collateral manager may substitute assets in the portfolio as 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 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. "Under our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our counterparty criteria. "The transaction's legal structure and framework is bankruptcy remote, in line with our legal criteria." The CLO is managed by KKR Credit Advisors (Ireland) Unlimited Co., and the maximum potential rating on the liabilities is 'AAA' under our operational risk criteria. S&P said, "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe the ratings are commensurate with the available credit enhancement for the class A to F notes. Our credit and cash flow analysis indicates that the available credit enhancement for the class B to E notes could withstand stresses commensurate with higher ratings than those 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 on the notes. "Given our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe our ratings are commensurate with the available credit enhancement for all the rated classes of notes. "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we also included the sensitivity of the ratings on the class A to E notes based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F notes." Environmental, social, and governance S&P said, "We regard the transaction's exposure to environmental, social, and governance (ESG) credit factors as 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." Avoca CLO XXXVII DAC is a European cash flow CLO securitization of a revolving pool, comprising mainly euro-denominated leveraged loans and bonds. The transaction is a broadly syndicated CLO that is managed by KKR Credit Advisors (Ireland) Unlimited Co. Ratings list Rating amount Credit Class Rating* (mil. EUR) Interest rate§ enhancement (%) A AAA (sf) 244.00 Three/six-month EURIBOR 39.00 plus 1.33% B AA (sf) 48.00 Three/six-month EURIBOR 27.00 plus 1.90% C A (sf) 24.00 Three/six-month EURIBOR 21.00 plus 2.05% D BBB- (sf) 28.00 Three/six-month EURIBOR 14.00 plus 3.00% E BB- (sf) 18.00 Three/six-month EURIBOR 9.50 plus 5.50% F B- (sf) 12.00 Three/six-month EURIBOR 6.50 plus 8.50% Sub NR 31.40 N/A N/A *The ratings assigned to the class A and B notes address timely interest and ultimate principal payments. The ratings assigned to the class C, D, E, and F notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. BOSPHORUS CLO V: Moody's Ups Rating on EUR18.4MM Cl. E Notes to Ba2 ------------------------------------------------------------------- Moody's Ratings has upgraded the ratings on the following notes issued by Bosphorus CLO V Designated Activity Company: EUR20,000,000 Class B-1 Secured Floating Rate Notes due 2032, Upgraded to Aaa (sf); previously on May 9, 2024 Upgraded to Aa1 (sf) EUR13,250,000 Class B-2 Secured Fixed Rate Notes due 2032, Upgraded to Aaa (sf); previously on May 9, 2024 Upgraded to Aa1 (sf) EUR21,000,000 Class C Secured Deferrable Floating Rate Notes due 2032, Upgraded to Aa1 (sf); previously on May 9, 2024 Upgraded to A1 (sf) EUR25,350,000 Class D Secured Deferrable Floating Rate Notes due 2032, Upgraded to Baa1 (sf); previously on May 9, 2024 Affirmed Baa3 (sf) EUR18,400,000 Class E Secured Deferrable Floating Rate Notes due 2032, Upgraded to Ba2 (sf); previously on May 9, 2024 Affirmed Ba3 (sf) Moody's have also affirmed the ratings on the following notes: EUR97,000,000 (Current outstanding amount EUR58,266,913) Class A-1 Secured Floating Rate Notes due 2032, Affirmed Aaa (sf); previously on May 9, 2024 Affirmed Aaa (sf) EUR120,000,000 (Current outstanding amount EUR72,082,779) Class A-2 Secured Floating Rate Notes due 2032, Affirmed Aaa (sf); previously on May 9, 2024 Affirmed Aaa (sf) EUR10,500,000 Class F Secured Deferrable Floating Rate Notes due 2032, Affirmed B3 (sf); previously on May 9, 2024 Affirmed B3 (sf) Bosphorus CLO V Designated Activity Company issued in December 2019 is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Cross Ocean Adviser LLP. The transaction's reinvestment period ended in June 2024. RATINGS RATIONALE The rating upgrades on the Class B-1, Class B-2, Class C, Class D and Class E notes are primarily a result of the deleveraging of the Class A-1 and Class A-2 notes following amortisation of the underlying portfolio since the last rating action in May 2024. The affirmations on the ratings on the Class A-1, Class A-2 and Class F 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-1-and A-2 notes have paid down by approximately EUR86.7 million (39.9%) in the last 12 months. As a result of the deleveraging, over-collateralisation (OC) has increased across the capital structure. According to the trustee report dated June 2025[1] the Class A/B, Class C, Class D, Class E and Class F OC ratios are reported at 156.40%, 138.61%, 121.87%, 112.05% and 107.13% compared to June 2024[2] levels of 139.06%, 128.30%, 117.33%, 110.48% and 106.91% respectively. 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 methodologies 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: EUR257.1m Defaulted securities: EUR0 Diversity Score: 33 Weighted Average Rating Factor (WARF): 3030 Weighted Average Life (WAL): 3.4 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.8% Weighted Average Coupon (WAC): 4.1% Weighted Average Recovery Rate (WARR): 44.90% Par haircut in OC tests and interest diversion test: 0.51% 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. 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. CVC CORDATUS XI: Moody's Ups Rating on EUR14.625MM F Notes to B1 ---------------------------------------------------------------- Moody's Ratings has upgraded the ratings on the following notes issued by CVC Cordatus Loan Fund XI Designated Activity Company: EUR31,500,000 Class C-R Senior Secured Deferrable Floating Rate Notes due 2031, Upgraded to Aaa (sf); previously on Oct 6, 2023 Upgraded to Aa3 (sf) EUR22,500,000 Class D-R Senior Secured Deferrable Floating Rate Notes due 2031, Upgraded to A1 (sf); previously on Oct 6, 2023 Upgraded to Baa1 (sf) EUR30,375,000 Class E Senior Secured Deferrable Floating Rate Notes due 2031, Upgraded to Ba1 (sf); previously on Oct 6, 2023 Affirmed Ba2 (sf) EUR14,625,000 Class F Senior Secured Deferrable Floating Rate Notes due 2031, Upgraded to B1 (sf); previously on Oct 6, 2023 Affirmed B2 (sf) Moody's have also affirmed the ratings on the following notes: EUR271,125,000 (Current outstanding amount EUR130,387,364) Class A-R Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf); previously on Oct 6, 2023 Affirmed Aaa (sf) EUR22,500,000 Class B-1-R Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf); previously on Oct 6, 2023 Affirmed Aaa (sf) EUR24,750,000 Class B-2-R Senior Secured Fixed Rate Notes due 2031, Affirmed Aaa (sf); previously on Oct 6, 2023 Affirmed Aaa (sf) CVC Cordatus Loan Fund XI Designated Activity Company, issued in September 2018 and refinanced in March 2021, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by CVC Credit Partners European CLO Mmgt LLP. The transaction's reinvestment period ended in April 2023. RATINGS RATIONALE The rating upgrades on the Class C-R, D-R, E and F notes are primarily a result of the significant deleveraging of the senior notes following amortisation of the underlying portfolio since the payment date in July 2024. The affirmations on the ratings on the Class A-R, B-1-R and B-2-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 EUR113.4 million (41.8% of its original balance) in the last 12 months and EUR140.7 million (51.9%) since closing. As a result of the deleveraging, over-collateralisation (OC) has increased across the capital structure. According to the trustee report dated July 2025[1] the Class A/B, Class C, Class D, Class E and Class F OC ratios are reported at 158.2%, 138.4%, 127.0%, 114.4% and 109.1% compared to July 2024[2] levels of 141.8%, 128.7%, 120.7%, 111.4% and 107.4%, respectively. Moody's note that the July 2024 and July 2025 principal payments are not reflected in the reported OC ratios. 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 methodologies 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: EUR304.0 million Defaulted Securities: EUR4.1 million Diversity Score: 43 Weighted Average Rating Factor (WARF): 3032 Weighted Average Life (WAL): 3.3 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.7% Weighted Average Coupon (WAC): 3.5% Weighted Average Recovery Rate (WARR): 43.3% Par haircut in OC tests and interest diversion test: 0% 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. -- Long-dated assets: The presence of assets that mature beyond the CLO's legal maturity date exposes the deal to liquidation risk on those assets. Moody's assumes that, at transaction maturity, the liquidation value of such an asset will depend on the nature of the asset as well as the extent to which the asset's maturity lags that of the liabilities. Liquidation values 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. INVESCO EURO I: Moody's Cuts Rating on EUR12MM Class F Notes to B2 ------------------------------------------------------------------ Moody's Ratings has downgraded the rating on the following notes issued by Invesco Euro CLO I Designated Activity Company: EUR12,000,000 Class F Senior Secured Deferrable Floating Rate Notes due 2031, Downgraded to B2 (sf); previously on Dec 12, 2024 Affirmed B1 (sf) Moody's have also affirmed the ratings on the following notes: EUR214,400,000 (Current outstanding amount EUR150,993,371) Class A-1-R Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf); previously on Dec 12, 2024 Affirmed Aaa (sf) EUR30,000,000 (Current outstanding amount EUR21,127,804) Class A-2-R Senior Secured Fixed Rate Notes due 2031, Affirmed Aaa (sf); previously on Dec 12, 2024 Affirmed Aaa (sf) EUR41,200,000 Class B-R Senior Secured Floating Rate Notes due 2031, Affirmed Aaa (sf); previously on Dec 12, 2024 Upgraded to Aaa (sf) EUR26,400,000 Class C-R Senior Secured Deferrable Floating Rate Notes due 2031, Affirmed Aa3 (sf); previously on Dec 12, 2024 Upgraded to Aa3 (sf) EUR25,600,000 Class D-R Senior Secured Deferrable Floating Rate Notes due 2031, Affirmed Baa1 (sf); previously on Dec 12, 2024 Upgraded to Baa1 (sf) EUR22,400,000 Class E Senior Secured Deferrable Floating Rate Notes due 2031, Affirmed Ba2 (sf); previously on Dec 12, 2024 Affirmed Ba2 (sf) Invesco Euro CLO I Designated Activity Company, issued in December 2018 and refinanced in March 2021, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Invesco European RR L.P. The transaction's reinvestment period ended in January 2023. RATINGS RATIONALE The rating downgrade on the Class F notes is primarily a result of the deterioration of the key credit metrics of the underlying pool and loss of par since the last rating action in December 2024. The affirmations on the ratings on the Class A-1-R, Class A-2-R, Class B-R, Class C-R, Class D-R and Class E 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 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 methodologies 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: EUR320.6m Defaulted Securities: EUR5.5m Diversity Score: 38 Weighted Average Rating Factor (WARF): 3261 Weighted Average Life (WAL): 3.38 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 4.01% Weighted Average Coupon (WAC): 4.31% Weighted Average Recovery Rate (WARR): 42.62% Par haircut in OC tests and interest diversion test: 1.75% 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 and swap provider, 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. -- Long-dated assets: The presence of assets that mature beyond the CLO's legal maturity date exposes the deal to liquidation risk on those assets. Moody's assumes that, at transaction maturity, the liquidation value of such an asset will depend on the nature of the asset as well as the extent to which the asset's maturity lags that of the liabilities. Liquidation values 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. RRE 6: S&P Assigns Preliminary BB- (sf) Rating to Class D-R Notes ----------------------------------------------------------------- S&P Global Ratings assigned its preliminary credit ratings to RRE 6 Loan Management DAC's class A-1-R to D-R notes. The issuer also has unrated subordinated notes outstanding from the original transaction. This transaction is a reset of the already existing transaction that closed in March 2021. The existing notes will be fully redeemed with the proceeds from the issuance of the replacement notes on the reset date. This is a European cash flow CLO transaction, securitizing a portfolio of primarily senior secured leveraged loans and bonds. Redding Ridge Asset Management (UK) LLP will manage the transaction. The preliminary ratings assigned to the notes reflect our 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 S&P expects to be bankruptcy remote. -- The transaction's counterparty risks, which S&P expects to be in line with our counterparty rating framework. Under the transaction documents, the rated notes will pay quarterly interest unless there is a frequency switch event. Following this, the notes will permanently switch to semiannual payments. The portfolio's reinvestment period will end approximately 4.5 years after closing. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,671.27 Default rate dispersion 567.90 Weighted-average life (years) 4.61 Obligor diversity measure 123.84 Industry diversity measure 21.13 Regional diversity measure 1.22 Transaction key metrics Total par amount (mil. EUR) 400.00 Defaulted assets (mil. EUR) 0.00 Number of performing obligors 167 Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 1.52 Actual 'AAA' weighted-average recovery (%) 36.64 Actual portfolio weighted-average spread (%) 3.60 Actual portfolio weighted-average coupon (%) 3.10 S&P said, "At closing, we expect the portfolio to be well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, we have conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. As such, we have not applied any additional scenario and sensitivity analysis when assigning preliminary ratings to any class of notes in this transaction. "In our cash flow analysis, we used the EUR400 million target par amount, the covenanted weighted-average spread (3.45%), and the covenanted weighted-average coupon (4.00%) as indicated by the collateral manager. We assumed weighted-average recovery rates in line with those of the target portfolio presented to us except at the 'AAA' rating level, where we have assumed a 1% cushion. 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. "Our credit and cash flow analysis indicates that the available credit enhancement for the class A-2-R, B-R, C-1-R, C-2-R, and D-R notes could withstand stresses commensurate with higher preliminary ratings than those 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 the assigned preliminary ratings. The class A-1-R notes can withstand stresses commensurate with the assigned preliminary rating. "Until the end of the reinvestment period on April 15, 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 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. S&P said, "At closing, we expect the transaction's documented counterparty replacement and remedy mechanisms to adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "Following the application of our structured finance sovereign risk criteria, we consider the transaction's exposure to country risk to be limited at the assigned preliminary ratings, as the exposure to individual sovereigns does not exceed the diversification thresholds outlined in our criteria. "At closing, we expect the transaction's legal structure to be bankruptcy remote, in line with our legal criteria. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe that our assigned preliminary ratings are commensurate with the available credit enhancement for the class A-1-R, A-2-R, B-R, C-1-R, C-2-R, and D-R notes. "In addition to our standard analysis, we have also included the sensitivity of the ratings on the class A-1-R to D-R notes to four hypothetical scenarios." Environmental, social, and governance factors 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 assets from being related to certain industries. 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." RRE 6 Loan Management DAC is a European cash flow CLO transaction, securitizing a portfolio of primarily senior secured leveraged loans and bonds. Redding Ridge Asset Management (UK) LLP will manage the transaction. Ratings list Prelim Prelim amount Credit Class rating* (mil. EUR) enhancement (%) Interest rate§ A-1-R AAA (sf) 244.00 39.00 Three/six-month EURIBOR plus 1.32% A-2-R AA (sf) 42.00 28.50 Three/six-month EURIBOR plus 1.95% B-R A (sf) 30.00 21.00 Three/six-month EURIBOR plus 2.25% C-1-R BBB (sf) 20.00 16.00 Three/six-month EURIBOR plus 3.00% C-2-R BBB- (sf) 8.00 14.00 Three/six-month EURIBOR plus 4.00% D-R BB- (sf) 18.50 9.38 Three/six-month EURIBOR plus 5.40% Sub notes NR 42.00 N/A N/A *The preliminary ratings assigned to the class A-1-R and A-2-R notes address timely interest and ultimate principal payments. The preliminary ratings assigned to the class B-R, C-1-R, C-2-R, and D-R notes address ultimate interest and principal payments. §Solely for modeling purposes as the actual spreads may vary at pricing. 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. SIGNAL HARMONIC I: S&P Assigns Prelim B- (sf) Rating to F-R Notes ----------------------------------------------------------------- S&P Global Ratings assigned its preliminary credit ratings to Signal Harmonic CLO I DAC's class X-R, A-R, B-R, C-R, D-R, E-R, and F-R notes. At closing, the issuer will have EUR36.43 million of outstanding subordinated notes from the original issuance. This transaction is a reset of the already existing transaction, that S&P did not rate. The existing classes of notes will be refinanced with the proceeds from the issuance of the replacement notes on the reset date. The preliminary ratings assigned to the notes reflect S&P's 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 S&P expects to be bankruptcy remote. -- The transaction's counterparty risks, which S&P expects to be in line with our counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,773.03 Default rate dispersion 533.53 Weighted-average life (years) 4.87 Weighted-average life extended to cover the length of the reinvestment period (years) 5.00 Obligor diversity measure 123.31 Industry diversity measure 22.06 Regional diversity measure 1.15 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 2.23 Target 'AAA' weighted-average recovery (%) 37.96 Target weighted-average spread (%) 3.88 Target weighted-average coupon (%) 8.00 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 five years after closing. S&P said, "At closing, we expect the portfolio to be well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured 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 EUR500 million target par amount, the target weighted-average spread (3.88%), the covenanted weighted-average coupon (5.00%), and the target weighted-average recovery rates calculated in line with our CLO criteria for all rating levels. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "Under our structured finance sovereign risk criteria, we consider that the transaction's exposure to country risk is sufficiently mitigated at the assigned preliminary ratings. "Until the end of the reinvestment period on Sept. 5, 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. "At closing, we expect that the transaction's documented counterparty replacement and remedy mechanisms will adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "We expect the transaction's legal structure and framework to be 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 F-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 preliminary 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 preliminary 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 preliminary ratings on European CLO transactions, 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." 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 Prelim. Prelim. Amount Credit Class rating* (mil. EUR) enhancement (%) Interest rate§ X-R AAA (sf) 3.25 N/A Three/six-month EURIBOR plus 0.90% A-R AAA (sf) 310.00 38.00 Three/six-month EURIBOR plus 1.40% B-R AA (sf) 55.00 27.00 Three/six-month EURIBOR plus 2.05% C-R A (sf) 30.00 21.00 Three/six-month EURIBOR plus 2.50% D-R BBB- (sf) 35.00 14.00 Three/six-month EURIBOR plus 3.50% E-R BB- (sf) 20.00 10.00 Three/six-month EURIBOR plus 6.00% F-R B- (sf) 17.50 6.50 Three/six-month EURIBOR plus 8.51% Sub notes NR 36.43 N/A N/A *The preliminary ratings assigned to the class A-R and B-R notes address timely interest and ultimate principal payments. The preliminary 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. =================== L U X E M B O U R G =================== ALEXANDRITE LAKE: Fitch Rates EUR300MM Sr. Sec. Bond Final 'BB-' ---------------------------------------------------------------- Fitch Ratings has assigned Alexandrite Lake Lux Holdings S.à.r.l.'s EUR300 million senior secured bond a final rating of 'BB-' with a Recovery Rating of 'RR3'. The senior secured rating also applies to the co-issuer, Savoy Luxembourg Holdings S.à.r.l. (together, the co-midcos). The co-midcos jointly own 100% of alstria office AG (alstria). The assignment of the bond's final rating follows the completion of the bond issue and the receipt of the final documentation, which conforms to the previously received information. The consolidated profile of the co-midcos, which are owned by Brookfield, and their subordinated debt, includes alstria. It owns a EUR4.1 billion German non-prime rent income-producing office portfolio, specialising in the refurbishment and repositioning of offices for a portion of its portfolio. The core portfolio has long lease lengths, 93% occupancy, and affordable rents in city centre locations. Key Rating Drivers Office Portfolio Qualities: alstria's end-2024 portfolio is strategically located in some of Germany's leading office markets: Hamburg (33% by end-2024 value), Düsseldorf (27%), Frankfurt (22%), Stuttgart (11%), and Berlin (8%). Most of these assets are moderate in size, averaging 13,000 sqm, with affordable rent averaging EUR18.6/sqm/month, and potential upside to market rent and ultimate sale. There is asset concentration, with the top 10 assets constituting 33% of end-2024 value. Stabilised assets comprised 93% of the portfolio by value at end-2024, with the balance consisting of refurbishment properties (defined as less than 50% occupancy) office assets. Stabilised Portfolio's Robust Rental Income: alstria's tenant base is robust, with 37% of end-2024 annual rent sourced from public sector entities, such as the City of Hamburg, Frankfurt and Berlin or investment-grade companies, some with state links. The portfolio has a solid weighted average unexpired lease term to earliest-break (WALB) of 5.2 years, ensuring longevity of income. Vacancy within the total portfolio is managed at around 8% (by estimated rental value, (ERV)), reflecting alstria's continuous refurbishment strategy. Work on Refurbishment Portfolio: alstria has some under-invested assets, often bought at reduced prices to refurbish and re-let for higher rents when market conditions are conducive. This will increase their capital value. Planned refurbishments do not target prime quality fit-out or prime rents but optimise returns by setting rents appropriate for central urban locations. Switching from single-lets to multi-tenanted buildings helps to optimse rental income through creating evidence of higher rents on phased lease expiries across multiple tenants as opposed to a single tenant on a long 15-year lease Refurbishment Spend and Higher Rents: The success of this strategy has resulted in the portfolio's average rent increasing year on year. Individual examples, such as Epplestrasse 225 in Stuttgart and Deutsche-Telekom-Allee 9 in Darmstadt, show that earlier refurbishments increased rents higher than previous levels given the refurbishment cost, with subsequent refurbishments increasing rent levels again. This increases a refurbished building's previous value Managed Vacancy Rate: alstria mitigates the execution risk inherent in refurbishment projects by investing strategically in its portfolio, managing the vacancy rate at around 8% (excluding developments). Typically, about 10 projects are under way simultaneously, each averaging EUR25 million-30 million in capex, which helps reduce concentration risk. These projects usually take 2.0-2.5 years from vacancy to re-letting. Capex Planning Flexibility: alstria can time its use of capex, as its assets typically only require limited outlay. Upon lease expiry, alstria has the option to re-let at broadly existing rents or refurbish the property, which increases rental values. Fitch expects the development pipeline will be funded mainly through asset disposals, or with potential equity involvement from Brookfield, to achieve the group's target 50% loan-to-value (LTV) leverage threshold and minimal reliance on further debt. High But Stable Leverage: Fitch expects alstria's net debt/EBITDA to remain high at around 15x-16x over the next two to three years, but may reduce thereafter should it be able to sell properties. alstria is committed to reducing its LTV ratio to about 50% over the long term, from 56% at end-2024. alstria's interest cover benefits from low-coupon bank and bond debt with 2026-2028 interest coverage forecast about 1.8x. Key Rating Drivers for Alexandrite Lake Lux Holdings S.a.r.l, and Savoy Luxembourg Holdings S.a.r.l. (the Co-MidCos) PSL Assessment 'Porous': Fitch uses its Parent and Subsidiary Linkage (PSL) Rating Criteria reflecting the co-ordinated Brookfield ownership and the co-midcos' control over alstria's strategy. Under its PSL criteria, Fitch assesses alstria's legal ring-fencing as 'porous', reflecting the debt incurrence and maintenance covenants in alstria's public bonds, which limit downside risk. Dividends from alstria are not required to service co-midco debt, which also has liquidity support from its owners. In addition, a default of a co-midco will not result in a default on alstria's debt. Fitch also assesses access and control as 'porous', with alstria's external funding and stated financial policy (alstria's LTV target of below 50%, no co-borrowing) conditioned by financial covenants. PSL-Required Consolidated Metrics: The criteria guide that with this linkage the co-midcos' ratings are derived from the consolidated profile, including alstria's figures. Consolidated net debt/EBITDA is 17x-19x, LTV is about 60%-63%, and consolidated interest cover narrows to 1.4x by 2027. Co-Midcos' Debt Reliant on alstria: To service the bonds' coupons, co-midcos are reliant on cash dividends from alstria, and/or liquidity under a letter of credit (LOC)-backed mechanism for interest payment shortfalls. Fitch views the six-month LOC interest expense reserve mechanism, supported by the two Brookfield funds, as an accretive initial six months liquidity to cover interest payments for the senior secured bond, should dividends from alstria be interrupted. If the LOC is drawn, Brookfield may be required to renew its commitment to, or top-up, any shortfall in the six-month LOC. alstria Dividend Capacity Tightening: Instead of alstria upstreaming a dividend, the ultimate owners expect alstria to deploy its cash flow towards re-investment in higher-yielding property refurbishments. Fitch calculates alstria's dividend capacity ratio - defined as EBITDA less interest expense and tax/co-midco interest costs - and standalone interest cover, as comfortably above 2x, but the co-midco-level consolidated interest cover tightens to 1.4x by 2027. The high consolidated leverage and tight interest cover frame the co-midcos' ratings. Financial Covenants: Incremental debt at the co-midco level is limited to EUR515 million. As incurrence-based covenants, alstria's public bonds have an LTV ratio below 60% (end-2024: 55%), secured debt/total assets less than 45% (32%) and unencumbered assets/unsecured debt above 150% (186%). alstria's maintenance-based interest coverage is above 1.8x (2.4x). Peer Analysis DEMIRE Deutsche Mittelstand Real Estate AG's (IDR: CCC+) EUR0.8 billion secondary office-weighted portfolio is located in non-CBD areas across Germany. In comparison, alstria's EUR4.1 billion portfolio is also diversified within Germany but is concentrated in the country's top office markets, which have distinct local sector dynamics. This mitigates single-country concentration risk. alstria offers mid-market rents in or near CBD locations, where demand is stronger than for DEMIRE's non-CBD affordable office space, as reflected in alstria's vacancy rate of 8.6% versus DEMIRE's 18% at end-1Q25. Within Brookfield-owned Alexandrite Monnet UK HoldCo Plc (IDR: B+/Stable), Befimmo's assets are concentrated in Brussels' prime CBD market and have high occupancy, strong rent collection, and a focus on increasing rents and ESG credentials. At end-2023, the tenant base was 53% public sector entities, a proportion unique among Fitch-rated peers. Befimmo's asset quality is higher than alstria's, with half its portfolio younger than 10 years. Although Befimmo's average rent (EUR15/sq m/month) is lower than alstria's (EUR19/sq m/month) due to legacy government leases, its cash flow has greater visibility, reflected in a WALB of 9.5 years compared with alstria's 5.2 years. Sirius Real Estate Limited (IDR: BBB/Stable) invests in secondary German offices, which are strategically located close to key German cities. Sirius's approach to acquiring higher-yielding assets, with a moderate level of capex required, is standardised and has a record of improving cash flow and lease tenors. Sirius has an active in-house leasing team for the German operations. Key Assumptions Fitch's Key Assumptions for alstria: - Rental growth from annual indexation is 1.3%-2%. - Rent increases during 2026-2027 are based on some scheduled refurbishments being let. For 2028 and 2029 Fitch assumes a 10% gross rent yield on improvement capex, and 4.8% yield rent lost from disposals (also producing an annualised effect). - Rental yield on refurbishment capex averages 9.6%. - Investment property disposals are EUR80 million in 2025, EUR110 million in 2026, EUR250 million annually thereafter. - Total value-enhancing capex is EUR140 million in 2025 and EUR104 million-EUR110 million thereafter. - Cost of debt for in-place secured loans is based on Fitch's Global Economic Outlook EUR policy; Fitch assumes new unsecured debt is issued at a fixed-rate coupon of 5.5%. - Existing interest rate hedging and caps increase alstria's cost of debt by EUR1.5 million-EUR4 million annually. Recovery Analysis Its bespoke recovery analysis assumes that the co-midcos would be liquidated rather than restructured as a going concern (GC) in a default. Fitch uses alstria's EUR4,163 million of investment property assets as at 1Q25. Given the inclusion of its undrawn EUR150 million revolving credit facility (RCF) in debt, the drawing of which would most likely add assets, Fitch added the same amount to investment properties, the total of which Fitch applies a standard 20% discount. Fitch also makes a standard 10% deduction for administrative claims. Fitch's principal waterfall analysis measures these proceeds against alstria's end-1Q25 secured debt of EUR1,571.5 million, and unsecured gross debt of EUR978 million plus the longer-dated EUR150 million portion of the undrawn RCF maturing in 2028. Flowing through to the co-midcos level, Fitch's principal waterfall analysis generates a high ranked recovery for the EUR300 million structurally subordinated secured bond. At co-midcos' 'B+' IDR, the senior secured rating is capped at 'RR3'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade (Using Fitch's PSL criteria, co-midcos' IDRs are the same as the consolidated profile) - Deterioration of alstria's operational and financial profile - Co-midco consolidated net debt/EBITDA above 18x - Co-midco consolidated LTV above 65% - Co-midco standalone interest coverage below 1.2x (alstria EBITDA less interest expense/co-midco interest expense) Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Material improvement in the consolidated profile including alstria's operational and financial profile - Co-midco consolidated net debt/EBITDA below 14x - Co-midco consolidated LTV below 55% - Co-midco standalone interest coverage above 1.45x Liquidity and Debt Structure alstria's end-2024 average debt maturity was fairly short at 2.8 years, with EUR335.2 million of unsecured debt and EUR107 million of secured debt maturities during 2025. The weighted average debt ratio improves to about four years pro forma for the new EUR500 million unsecured bond issued in March 2025, which partly prepaid some tendered unsecured 2025, 2026 and 2027 unsecured bonds, along with new secured funding incurred in 1H25. At end-March 2025, after 1Q25's refinancing, alstria had EUR200 million undrawn from its RCFs (of which EUR50 million matures in April 2026 and the rest in April 2028), EUR146 million of unrestricted cash relative to EUR84.4 million of September 2025 bonds remaining outstanding, and a EUR107 million secured loan due end-August 2025, which is to be refinanced. Co-midco liquidity resources (LofC mechanism) are detailed above. Date of Relevant Committee 21 July 2025 MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Macro and Sector Forecasts data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Alexandrite Lake Lux Holdings S.a r.l. senior secured LT BB- New Rating RR3 BB-(EXP) Savoy Luxembourg Holdings S.a r.l. senior secured LT BB- New Rating RR3 BB-(EXP) ===================== N E T H E R L A N D S ===================== CELAVITA: Potato Processor Declared Bankrupt -------------------------------------------- Hort News, citing various reports, relates that Dutch-based potato processor CelaVita was declared bankrupt on August 12. Reports say that the company had been in financial difficulty for some time and recently announced a reorganization, Hort News relays. Dutch media outlet Omroep Gelderland previously reported that the company had announced a reorganization to focus more on French fry production. Just over a month ago, employees of CelaVita rejected a final offer for a new collective labour agreement, with the majority of the employees in favour of taking industrial action, according to trade union FNV, the report discloses. It is now unclear what will happen to the approximately 200 employees. Established in 1967, CelaVita has become one of the best best-known suppliers of potato products to supermarkets, the food industry, hotels, restaurants, and institutions across Europe. The company was acquired by McCain in 2012, but sold to investment firm Nimbus in March 2024. VAN LIER: More Units of Dutch Shoe Brand Declared Bankrupt ---------------------------------------------------------- ANP reports that many subsidiaries of the shoe brand Van Lier have been declared bankrupt, according to the Zeeland-West-Brabant court. It had previously been reported that the company was facing financial difficulties. The report says it is not immediately clear how extensive the bankruptcy is. On the website of the alternative exchange Bondex, the company states that the parent company VANLIER b.v. is not bankrupt, but bankruptcy has been declared for subsidiaries Van Lier b.v., Van Lier Amsterdam, and Van Lier Shoes b.v. "Further announcements on this matter will only follow after consultation with the trustee of these companies," the company said, ANP relates. The company is owned by Geert van Spaendonck, although the bankruptcy report indicated that he had distanced himself from the parent company, notes ANP. All shares have been transferred to Fairmont Capital, based in Amsterdam. The report says the brand's webshop also appears to have been taken offline. Earlier this year, it was reported that the company was struggling financially, recalls ANP. All seven of its physical stores closed when the company operating them was declared bankrupt. In June, the company reported in its preliminary annual figures that it was having trouble repaying its COVID-related debt to the Tax Authorities, recounts the report. At the same time, shoe sales declined, and the company suffered a loss of nearly one million euros. Van Lier has a long history, dating back to 1815, when the family business was founded in Loon op Zand, Noord-Brabant. The brand became known for its classy leather shoes. =========== P O L A N D =========== 7ANNA: Files for Bankruptcy --------------------------- Stephane Pelletier of Pinkbike reports that Poland-based company 7Anna, the parent of NS Bikes, Rondo, Octane One, and Creme Cycles, has officially filed for bankruptcy. The filing was confirmed on August 18, 2025, and follows a turbulent stretch for the company, which has faced financial strain due to supplier issues, client bankruptcies, and other setbacks, the report says. While "bankruptcy" might sound like the end, the company emphasized in its official statement that this step does not mean operations are shutting down, the report relates. 7Anna says it continues to produce, service, and sell bikes, while working with potential investors to secure the brand's future. At this stage, 7Anna says its brands remain active and operational, with sales, service, and warranty support ongoing. The bankruptcy petition, according to the company, is a legal step intended to protect creditors while providing time for reorganization and seeking new investment, adds the report. ===================== S W I T Z E R L A N D ===================== PEACH PROPERTY: Moody's Puts 'B3' CFR Under Review for Upgrade -------------------------------------------------------------- Moody's Ratings has placed the B3 corporate family rating of Peach Property Group AG (PPG or the company), a Swiss-listed real estate company focused on German residential properties, on review for upgrade. Concurrently, Moody's have placed the Caa2 backed senior unsecured rating of Peach Property Finance GmbH, a wholly-owned subsidiary of PPG, on review for upgrade. Previously, the outlook for both entities was negative. On August 14, 2025, PPG announced it had signed a new long-term secured financing agreement with Castlelake L.P. (Castlelake) for EUR410 million. Upon completion, PPG will have secured all the funds necessary to fully repay the outstanding amount of EUR173 million on its EUR300 million backed senior unsecured bond maturing in November 2025. The closing of the new loan is anticipated before the end of October 2025 and remains subject to customary closing conditions. RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The rating action reflects the reduction in refinancing risk following the new EUR410 million secured loan agreement, complementing a EUR120 million secured loan finalised in June 2025 and a CHF 50 million equity raise in July 2025. These funds will enable PPG to fully redeem the EUR173 million outstanding on its November 2025 bond, repay the EUR54 million convertible bond due in May 2026 and refinance approximately EUR340 million of existing secured loans maturing between 2026 and 2029. The rating action also incorporates Moody's expectations that PPG will successfully extend its EUR200 million secured loan maturing in September 2025 and will maintain a resilient operating performance. The review will focus on: the transactions concluding as planned; confirmation that the new loan proceeds will be deployed towards repayment of PPG's outstanding bond; and an assessment of the company's ability to sustain metrics indicative of stronger credit quality. The review will also assess the differences in expected loss between secured and unsecured creditors. PPG's credit profile remains supported by its focus on regulated rental housing in Germany, which provides stable cash flow in medium-sized cities benefitting from favorable demographic trends; the company's customer-centric approach, which Moody's expects will help reduce current high vacancy rates; and the company's proven track record of shareholder support. However, PPG's ratings are constrained by refinancing risk associated with its 2025 debt maturities, although this risk is significantly mitigated by recent developments; the company's relatively small scale compared to its peers; high vacancy rates; and still weak credit metrics, including elevated leverage as measured by Net Debt/EBITDA, low Fixed Charge Coverage and a limited pool of unencumbered assets. PPG's ratings could be upgraded following the successful refinancing of its debt maturities in 2025, coupled with the maintenance of adequate liquidity and credit metrics commensurate with a higher rating. Conversely, downward pressure on the ratings could result from the company failing to secure proceeds to address its upcoming debt maturities; an increased likelihood of default and/or lower-than-anticipated expected recovery rates in the event of default or distressed exchange; or a weakening in operating performance. ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS Governance considerations are material to PPG's credit quality. The company exhibits an aggressive financial strategy, as demonstrated by a lack of early refinancing for its debt maturities and elevated leverage. Nonetheless, the recent track record of continued shareholder support is positive. LIQUIDITY PPG's liquidity is currently weak. As of December 31, 2024, the company's liquidity sources included EUR221 million in cash and cash equivalents, along with EUR55 million available under a revolving credit facility, which matured in April 2025. Following the refinancing activities completed since the beginning of the year and the equity raise in July 2025, Moody's estimates that available liquidity has decreased to approximately EUR180 million. This amount is insufficient to cover the company's debt maturities over the next 12 months, making PPG reliant on external funding sources. However, Moody's anticipates that PPG's liquidity profile will improve with the new EUR410 million secured loan and the refinancing of its EUR200 million secured loan maturing in September 2025, which will significantly extend the company's maturity profile. Additionally, PPG has signed a new EUR30 million capital expenditure facility with Castlelake, which will further support its liquidity position. STRUCTURAL CONSIDERATIONS PPG's B3 CFR references its senior secured rating, as secured funding constitutes the majority of the company's capital structure. The backed senior unsecured rating is rated Caa2, with the two-notch differential from the B3 CFR reflecting: the limited unencumbered assets, which offer weak asset coverage for unsecured creditors; Moody's expectations that the remaining unencumbered assets may be pledged to secure additional debt; and Moody's assessments of differences in expected loss between secured and unsecured creditors. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was REITs and Other Commercial Real Estate Firms published in May 2025. PPG's B3 CFR is two notches below the scorecard-indicated outcome of B1. This difference is primarily due to refinancing risk and currently weak liquidity stemming from the company's debt maturities in 2025, alongside weak credit metrics. COMPANY PROFILE PPG is a real estate company focused on residential investments throughout Germany. Headquartered in Zurich, PPG has been publicly listed on the SIX Swiss Exchange since 2010 and had a market capitalisation of CHF 378 million as of August 15, 2025. As of December 31, 2024, the company owned 21,947 residential units with a total market value of approximately EUR2.0 billion. =========================== U N I T E D K I N G D O M =========================== AQUALIFE SERVICES: Interpath Ltd Named as Joint Administrators -------------------------------------------------------------- Aqualife Services Ltd was placed into administration proceedings in the Edinburgh Sheriff Court No EDI-L111 of 25, and Geoffrey Isaac Jacobs and Alistair McAlinden of Interpath Ltd, were appointed as joint administrators on Aug. 6, 2026. Aqualife Services specialized in aquaculture. Its registered office is at c/o Interpath Ltd, 5th Floor, 130 St Vincent Street, Glasgow, G2 5HF. Its principal trading address is at Unit 4, Springkerse Business Centre, Whitehouse Road, Stirling, FK7 7SP. The joint administrators can be reached at: Geoffrey Isaac Jacobs Alistair McAlinden Interpath Ltd 5th Floor, 130 St Vincent Street Glasgow, G2 5HF Further Details Contact: Meadow Lees Tel No; 0141 648 4291 Email: meadow.lees@interpath.com B WOMACK: JT Maxwell Named as Administrator ------------------------------------------- B Womack Furniture Ltd was placed into administration proceedings in the High Court of Justice Business & Property Court No 001080 of 2025, and Andrew Ryder of JT Maxwell Limited was appointed as administrator on Aug. 1, 2025. B Womack Furniture's agents were involved in the sale of furniture, household goods, hardware and ironmongery. Its registered office and principal trading address is at 20-21 Hallgate, Doncaster, South Yorkshire, DN1 3NG. The administrators can be reached at: Andrew Ryder JT Maxwell Limited Unit 1 Lagan House 1 Sackville Street, Lisburn Co Antrim, BT27 4AB For further details, contact: Email: corporate@jtmaxwell.co.uk Tel No: 02892 448 110 BLOSSOM HOME CARE: AMS Business Named as Administrators ------------------------------------------------------- Blossom Home Care Franchising Ltd was placed into administration proceedings in the High Court of Justice Business and Property Court in Manchester Company and Insolvency List, No CR2025MAN001076 of 2025, and Philip Lawrence and Gareth Howarth of AMS Business Recovery, were appointed as administrators on July 31, 2024. Blossom Home Care specialized in Home Care, Elderly Care, Care of Adults with home care needs, Care Franchises, and Social Care. Its registered office and principal trading address is at Sidings House Sidings Court, Lakeside, Doncaster, South Yorkshire, DN4 5NU. The joint administrators can be reached at: Philip Lawrence Gareth Howarth AMS Business Recovery 1 Hardman Street, Manchester Greater Manchester, M3 3HF Telephone No: 0161 413 0999 For further information contact: Sahil Nadeem AMS Business Recovery Tel No: 0161 413 0999 Email: sahil.nadeem@groupams.co.uk EDC GROUP: Shut Down After Spending Clients' Money -------------------------------------------------- Jonny Manning of BBC News reports three debt-collection agencies have been shut down after spending thousands of pounds of their clients' money at bookmakers, hotels and football clubs. Sunderland-based EDC Group NE Ltd, UK EDC Ltd and UK TCF Limited charged clients to collect debts on their behalf but failed to pass on almost GBP55,000 of their clients' money, notes the report. BBC says the companies, which were all owned by the same director, have been dissolved by the High Court following an investigation by the Insolvency Service (IS). The IS said the three companies had falsely claimed to have been collecting unpaid debts for more than 25 years, however, the companies were only incorporated in 2022 and 2023, the report relates. Analysis of EDC Group NE Ltd's bank account, carried out by the IS, found GBP17,000 was paid to bookmakers, GBP9,679 to football clubs and GBP21,362 to hostelries, hotels, restaurants and supermarkets, BBC notes. It found no payments to clients for debts collected. The IS's chief investigator, David Hope, said the companies were "nothing more than operations designed to take money from clients", according to BBC. "The victims trusted these companies to collect debts on their behalf but instead found themselves unable to contact anyone after paying upfront fees, while money that was collected was kept by the companies," he said, the report adds. GLODEN LIMITED: Begbies Traynor Named as Joint Administrators ------------------------------------------------------------- Gloden Limited was placed into administration proceedings in the High Court of Justice Business & Property Courts in Bristol Insolvency & Companies List (Ch) No CR2025-BRS000076, and Paul Wood and Simon Robert Haskew of Begbies Traynor (Central) LLP, were appointed as joint administrators on Aug. 6, 2025. Gloden Limited specialized in physical well-being activities. Its registered office is at Unit 13, Warmley Business Park, Crown Way, Bristol, BS30 8FR. Its previous registered office was at 16 High Street, Axbridge, BS26 2AF. The joint administrators can be reached at: Paul Wood Simon Robert Haskew Begbies Traynor (Central) LLP 3rd Floor Castlemead Lower Castle Street Bristol BS1 3AG Any person who requires further information may contact Natalie Biles Begbies Traynor (Central) LLP E-mail: Gloden@btguk.com Telephone: 0117 937 7130 KENT HOUSING: PKF Littlejohn Named as Joint Administrators ---------------------------------------------------------- Kent Housing Developments Limited was placed into administration proceedings in the High Court of Justice, The Business and Property Courts of England and Wales Insolvency and Companies List No 00520 of 2025, and James Sleight and Paul Williams of PKF Littlejohn Advisory Limited, were appointed as joint administrators on Aug. 1, 2025. Kent Housing Developments specialized in the construction of domestic buildings. Its registered office is at Unit 9 97/101 Peregrine Road, Hainault Business Park, Hainault, Essex, England IG6 3XH. Its principal trading address is at 126 Mongeham Road, Great Mongeham, Deal, Kent CT14 9LL. The joint administrators can be reached at: James Sleight PKF Littlejohn Advisoy Limited 12 Kings Street, Leeds LS1 2HL -- and -- Paul Williams PKF Littlejohn Advisory 15 Westferry Circus, London E14 4HD For further details contact Joseph Price Tel No: 0207 947 0507 Email: jprice@pkf-l.com MAGNUS SEARCH: KR8 Advisory Named as Joint Administrators --------------------------------------------------------- Magnus Search Ltd was placed into administration proceedings in the High Court of Justice, Business and Property Courts in Manchester, Insolvency and Companies List (ChD) Court Number: CR-2025-00108, and James Saunders and Mark Blackman of KR8 Advisory Limited were appointed as administrators on August 5, 2025. Magnus Search specialized in activities of employment placement agencies. Its registered office is at C/O KR8 Advisory Limited, The Lexicon, 10-12 Mount Street, Manchester, M2 5NT. Its principal trading address is at Lyndean House, 30-32 Albion Place, Maidstone, Kent, ME14 5DZ. The joint administrators can be reached at: James Saunders Michael Lennon c/o KR8 Advisory Limited The Lexicon, 10-12 Mount Street Manchester, M2 5NT For further information, contact: The Joint Administrators Email: caseenquiries@kr8.co.uk MERLIN ENTERTAINMENTS: S&P Lowers ICR to 'CCC+', Outlook Stable --------------------------------------------------------------- S&P Global Ratings lowered its long-term issuer credit rating on Merlin Entertainments (Motion Midco Ltd.) to 'CCC+' from 'B-', as well as the issue ratings on its senior secured debt to 'B-' from 'B', and on its senior notes to 'CCC-' from 'CCC'. S&P said, "Our stable outlook reflects our view that the group will continue to face challenges resulting in dampened profitability and high cash burn. However, we expect the group to maintain an adequate liquidity position over the next 12 months." Motion Midco Ltd., the holding company of global theme park operator Merlin Entertainments (Merlin), reported first-half 2025 results showing significant pressure on profitability with reported EBITDA down by 10.8% year on year. S&P expects these challenges to remain through the rest of the year, resulting in S&P Global Ratings-adjusted EBITDA falling below GBP500 million in 2025 and adjusted leverage up to 11.8x compared with 10.3x in 2024 (excluding preference shares). High capital spending (capex) requirements and interest expenses will continue to drive negative free operating cash flow (FOCF) after leases of around GBP200 million in 2025 and beyond, resulting in a deteriorating liquidity position. Challenges experienced in 2024 remain in 2025, resulting in company-reported EBITDA dropping by 10.8% in the first half of 2025. Merlin's performance has been affected by a number of factors in each of the geographies including tough competition in the U.S. operations, soft demand due to lower international travel, and lower consumer confidence across key geographies, such as the U.S. and the U.K. Revenue in North America (30% of revenue) dropped by 8.2% (on actual currency basis) to GBP295 million for the first six months of 2025, despite the opening of new attractions, while the U.K. (30% of revenue) was relatively flat dropping by 0.3%, despite a larger drop in the number of visitors (3.2%), thanks to in-park spend. In Europe, the group decided to close the Gateway attractions in Berlin and Istanbul, resulting in revenue dropping by 3.8%, absent this, revenue would have been flat. Legoland Japan drove the revenue growth in Asia Pacific, resulting in 1.9% uplift to GBP138 million. Revenue totaled GBP897 million (down 2.5%) with S&P-Global Ratings adjusted EBITDA at around GBP160 million-GBP165 million during the first half of 2025 as the company faced continuous wage inflation, as well as restructuring and reorganizational costs. S&P said, "We expect revenue for the full year to drop by about 3% with S&P-Global Ratings adjusted EBITDA falling below GBP500 million. We anticipate that the current macroeconomic environment and high competition will continue to impede the group's performance for the remainder of the year. Thus, we forecast revenue to fall to GBP2 billion in 2025, and that higher costs related to wage increases and reorganization will drive S&P-Global Ratings adjusted EBITDA margins down toward 24.2%. This is a higher drop in profitability than we had previously expected, given the longer lasting pressures for the group." High capex requirements and interest burden will continue to drive highly negative FOCF after leases, leading to deteriorating liquidity. The group's operations require a significant amount of capex to maintain and upgrade its existing estate. S&P estimates that total capex for 2025 will be around GBP300 million. On the other hand, the group has a highly leveraged capital structure with significant amounts of financial debt, which, paired with a higher interest rate on the refinanced debt, will lead to cash interest expense of about GBP360 million this year (including approximately GBP80 million of interest related to leases). These two elements, together with lower profitability, will continue to push the company into significantly negative FOCF after leases of around GBP200 million in 2025, which we believe could have a considerable impact on liquidity. As of June 28, 2025, the group had GBP117 million of cash and GBP272 million available under the revolving credit facility (RCF). Although S&P deems this sufficient to assess its liquidity as adequate for the next 12 months, persistent high cash burn could lead to insufficient liquidity after 12 months, absent any cash injection. S&P said, "We believe that the group has an unsustainable capital structure that depends on favorable business, financial, and economic conditions. The group has GBP3.9 billion of financial debt in addition to the GBP1.6 billion of leases on the balance sheet as of June 28, 2025. We expect this to lead to leverage up to 11.8x (from 10.3x excluding preference shares in 2024), failing to show a clear path to deleveraging due to falling profitability versus historical levels. We deem the capital structure as unsustainable in the long term given the high level of debt compared with the size of the group and high cash burn. However, we do not foresee a credit or payment crisis in the near term. "Our stable outlook reflects our view that the group will continue to face challenges on its trading performance as a result of the macroeconomic and competitive environment resulting in dampened profitability and high cash burn. We expect EBITDA margins to drop toward 24% in 2025, resulting in S&P Global Ratings-adjusted leverage remaining elevated at around 11.8x with FOCF after leases below GBP200 million. However, we expect the group to maintain an adequate liquidity position over the next 12 months. "We could lower our rating if we see a heightened likelihood of a payment default or distressed debt exchange within the next 12 months. This could occur if the group's operating performance is weaker than expected, if it consistently generates negative cash flow, or if its liquidity declines to the extent that we no longer believe it has enough cash to meet its obligations or maintain its capital structure. "We could raise the rating if the group restored its earnings growth such that it covered its operating and financial requirements (including interest, capex, and leases) and demonstrated a clear deleveraging path below the current levels, resulting in a capital structure that we would view as sustainable. An upgrade would also hinge on the group's ability to maintain adequate liquidity." ROXY MEDIA: Faces Further Delay in Winding up Case -------------------------------------------------- The Independent reports that Holly Willoughby's media company is set to return to a specialist insolvency court in November following the result of a tribunal appeal. Roxy Media, the media production and management firm run by the TV presenter and her husband Dan Baldwin, is facing winding-up proceedings from His Majesty's Revenue & Customs (HMRC), the report notes. A hearing at the Insolvency and Companies Court in April heard that the firm owed GBP377,000 in tax, which had been reduced from an unknown amount, recounts the report. Lawyers for Roxy Media said last month that the company was seeking to take the case to a tax tribunal, the report recalls. According to The Independent, the company applied for a further adjournment on Wednesday, Aug. 20, to await the outcome of that appeal. Jon-Selous Borlace, for HMRC, told the specialist court: "The company said it filed an appeal to the First-Tier Tribunal," the report relates. ICC Judge Sally Barber allowed the adjournment "to await the outcome of the appeal", setting the next hearing for November 12, the report says. Willoughby set up the company with her husband to specialize in managing media clients. Records on Companies House indicate that she was appointed as a director of the company in 2014, and Mr Baldwin in 2008. The presenter is best known for previously fronting ITV daytime show This Morning and Dancing On Ice. SHOOT BLUE: Opus Restructuring Named as Joint Administrators ------------------------------------------------------------ Shoot Blue Hire Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts of England and Wales Court Number: CR-2025-004642, and Paul Michael Davies and Colin David Wilson of Opus Restructuring LLP, were appointed as joint administrators on Aug. 1, 2025. Shoot Blue specialized in motion picture, video and television program post-production activities; as well as in renting and leasing of media entertainment equipment. Its registered office and principal trading address is at 7 Wembdon Orchard, Wembdon, Bridgwater, TA6 7PH. The joint administrators can be reached at: Paul Michael Davis Opus Restructuring LLP 322 High Holborn, London WC1V 7PB -- and -- Colin David Wilson Opus Restructuring LLP 1 Radian Court, Knowlhill Milton Keynes, MK5 8PJ For further details contact The Joint Administrators Tel No: 020 3326 6454 Alternative contact: Tony Chambers Email: Tony.chambers@opusllp.com SPECIALTY STEELS: Collapses Into Government Control --------------------------------------------------- Simon Jack of BBC News reports that the UK's third-largest steelworks, Speciality Steels UK (SSUK), has been placed under government control, creating an uncertain future for nearly 1,500 workers in Rotherham and Sheffield. BBC says insolvency courts granted a compulsory winding up order sought by creditors owed hundreds of millions of pounds by SSUK -- part of the metals empire of controversial tycoon Sanjeev Gupta. According to the report, the company will now be placed in the hands of the Official Receiver and special managers from consultancy firm Teneo, which has been appointed to run it on behalf of the liquidator. The government has agreed to cover the ongoing wages and costs of the plant while a buyer for is sought, BBC relates. Liberty Steel said the decision to put the firm into compulsory liquidation was "irrational", notes the report. Chief transformation officer Jeffrey Kabel said the move would "impose prolonged uncertainty and significant costs on UK taxpayers for settlements and related expenses, despite the availability of a commercial solution", BBC relays. SPURGEON'S COLLEGE: BDO LLP Named as Joint Administrators --------------------------------------------------------- Spurgeon's College was placed into administration proceedings in the High Court of Justice, Business and Property Courts of England & Wales, Insolvency & Companies List (ChD) Court Number: CR-2025-005290, and William Matthew Tait and Mark Thornton of BDO LLP, were appointed as joint administrators on Aug. 1, 2025. Spurgeon's College specialized in post secondary non tertiary education, as well as first degree level higher education. Its registered office is at 189 South Norwood Hill, London, SE25 6DJ c/o BDO LLP, 5 Temple Square, Temple Street, Liverpool, L2 5RH. The joint administrators can be reached at: William Matthew Tait BDO LLP 55 Baker Street, London, W1U 7EU -- and -- Mark Thornton BDO LLP Central Square, 29 Wellington Street Leeds, LS1 4DL For further details contact: Ellie McGovern Tel No: 0151 305 5874 Emai: BRCMTLondonandSouthEast@bdo.co.uk STAGWOOD INDUSTRIES: MHA Named as Administrators ------------------------------------------------ Stagwood Industries Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts of England and Wales, Insolvency & Companies List (ChD) Court Number: CR-2025-005272, and James Alexander Snowdon and Andrew Duncan of MHA were appointed as administrators on Aug. 1, 2025. Stagwood Industries is a manufacturer of other fabricated metal products not elsewhere classified. Its principal trading and registered office 8 is at Stagwood House Beach Road, Cottenham, Cambridge, CB24 8FP. The administrators can be reached at: Andrew Duncan James Alexander Snowdon MHA 6th Floor, 2 London Wall Place London, EC2Y 5AU Contact details for Administrators: Alex Timotheou Email: alex.timotheou@mha.co.uk Tel No: 020 7429 4100 UPPER STREET FILM: Insolve Plus Named as Administrator ------------------------------------------------------ Upper Street Film and TV Limited was placed into compulsory liquidation in the High Court of Justice No 005369 of 2024, and Lloyd Edward Hinton of Insolve Plus Ltd was appointed as administrator on July 24, 2025. Its registered office is at 14 Bonhill Street, London, EC2A 4BX, and previously at 15 Bagshot Stype Hungerford RG17 0RG. Its principal trading address is at 15 Bagshot Stype Hungerford RG17 0RG. The administrator can be reached at: Lloyd Edward Hinton Insolve Plus Ltd 14 Bonhill Street, London EC2A 4BX Further details contact: Nick Thomas Telephone: 020 7495 2348 Email at nickthomas@insolveplus.com =============== X X X X X X X X =============== [] BOOK REVIEW: Taking Charge ----------------------------- Taking Charge: Management Guide to Troubled Companies and Turnarounds Author: John O. Whitney Publisher: Beard Books Softcover: 283 Pages List Price: $34.95 Order a copy today at: http://beardbooks.com/beardbooks/taking_charge.html Review by Susan Pannell Remember when Lee Iacocca was practically a national hero? He won celebrity status by taking charge at a company so universally known as troubled that humor columnists joked their kids grew up thinking the corporate name was "Ayling Chrysler." Whatever else Iacocca may have been, he was a leader, and leadership is crucial to a successful turnaround, maintains the author. Mediagenic names merit only passing references in Whitney's book, however. The author's own considerable experience as a turnaround pro has given him more than sufficient perspective and acumen to guide managers through successful turnarounds without resorting to name-dropping. While Whitney states that he "share[s] no personal war stories" in this book, it was, nonetheless, written from inside the "shoes, skin, and skull of a turnaround leader." That sense of immediacy, of urgency and intensity, makes Taking Charge compelling reading even for the executive who feels he or she has already mastered the literature of turnarounds. Whitney divides the work into two parts. Part I is succinctly entitled "Survival," and sets out the rules for taking charge within the crucial first 120 days. "The leader rarely succeeds who is not clearly in charge by the end of his fourth month," Whitney notes. Cash budgeting, the mainstay of a successful turnaround, is given attention in almost every chapter. Woe to the inexperienced manager who views accounts receivable management as "an arcane activity 'handled over in accounting.'" Whitney sets out 50 questions concerning AR that the leader must deal with – not academic exercises, but requirements for survival. Other internal sources for cash, including judiciously managed accounts payable and inventory, asset restructuring, and expense cuts, are discussed. External sources of cash, among them banks, asset lenders, and venture capital funds; factoring receivables; and the use of trust receipts and field warehousing, are handled in detail. Although cash, cash, and more cash is the drumbeat of Part I, Whitney does not slight other subjects requiring attention. Two chapters, for example, help the turnaround manager assess how the company got into the mess in the first place, and develop strategies for getting out of it. The critical subject of cash continues to resonate throughout Part II, "Profit and Growth," although here the turnaround leader consolidates his gains and looks ahead as the turnaround matures. New financial, new organizational, and new marketing arrangements are laid out in detail. Whitney also provides a checklist for the leader to use in brainstorming strategic options for the future. Whitney's underlying theme -- that a successful business requires personal leadership as well as bricks and mortar, money and machinery -- is summed up in a concluding chapter that analyzes the qualities that make a leader. His advice is as relevant in this 1999 reprint edition as it was in 1987 when first published. John O. Whitney had a long and distinguished career in academia and industry. He served as the Lead Director of Church and Dwight Co., Inc. and on the Advisory Board of Newsbank Corp. He was Professor of Management and Executive Director of the Deming Center for Quality Management at Columbia Business School, which he joined in 1986. He died in 2013. [] KROLL: Private Schools See Spike in Company Administration ------------------------------------------------------------- Responding to the latest Company Insolvency statistics covering July 2025 published on Aug. 19, 2025 by the Insolvency Service, Benjamin Wiles, Managing Director of Kroll said: "While there continues to be economic uncertainty, weak business confidence and unwelcome speculation on further taxes, we are not seeing a surge in company insolvencies. The market remains relatively stable and there continues to be a lot of money out in the market. Naturally what is more interesting is the picture within certain sectors. We saw a jump in administrations among education and schools, most likely as a result of the Government's VAT increase that took effect at the beginning of the year. This is a sector we are watching closely. "Elsewhere the difficulties on the high street continue. There are huge challenges among retail businesses with Claire's Accessories the latest business appoint administrators. Our data suggests that at current levels, there will be a 25% increase in retail failures year-on-year. Our recent work on Simmons Bars highlights the difficulties in the hospitality industry too with higher people costs and business taxes alongside unpredictable consumer spending and rising food inflation." Industry July 2025 Jan-July 2025 Jan-July 2024 Run rate -------- --------- ------------- ------------- compared to 2024 * ----------- Retail 15 85 72 26.7 Manufacturing 10 84 110 -19.6 Construction 12 83 96 -9.4 Real Estate 5 68 87 -10.3 Leisure & 11 58 55 -4.4 Hospitality Media & Tech 6 58 89 -27.4 Energy & 7 39 35 -4.5 Industrials Financial 4 34 25 42.2 Services Professional 5 31 24 -1.6 Practices Recruitment 4 28 29 -7.7 Education 4 12 6 46.9 * The run rate column refers to the percentage change in administrations if rates were to continue at their current trajectory. Administrations are a formal insolvency process designed to rescue business and maximise returns for creditors. Administrations are typically utilised for larger companies where a restructure is needed to save parts or all the business and tend to be a better barometer on the health of the economy, whereas company liquidations represent small and microbusinesses, with very few assets and debts. About Kroll As the leading independent provider of global financial and risk advisory solutions, Kroll leverages its unique insights, data and technology to help clients stay ahead of complex demands. Kroll's team of more than 6,500 professionals worldwide continues the firm's nearly 100-year history of trusted expertise spanning risk, governance, transactions and valuation. Kroll's advanced solutions and intelligence provide clients the foresight they need to create an enduring competitive advantage. At Kroll, its values define who it is and how it partners with clients and communities. ********* 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 * * *