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T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Tuesday, September 2, 2025, Vol. 26, No. 175
Headlines
C Y P R U S
RONIN EUROPE: S&P Upgrades Long-Term ICR to 'BB', Outlook Stable
I R E L A N D
HENLEY CLO XIII: S&P Assigns B- (sf) Rating to Class F Notes
K A Z A K H S T A N
BANK CENTERCREDIT: S&P Affirms 'BB/B' ICRs, Alters Outlook to Pos.
KAZAKHSTAN TEMIR: S&P Affirms BB ICR, Alters Outlook to Positive
R U S S I A
ELDIK BANK: S&P Assigns 'B+/B' ICRs, Outlook Stable
U N I T E D K I N G D O M
BRIGHTLED LTD: Begbies Traynor Named as Administrators
CELLULAREVOLUTION LTD: Armstrong Watson Named as Administrators
EUROSAIL 2006-2BL: S&P Affirms 'CCC (sf)' Rating on Cl. F1c Notes
EUROSAIL 2007-1NC: S&P Affirms 'B-(sf)' Rating on Class E1c Notes
LEEDALE LTD: Begbies Traynor Named as Administrators
LIBERTY GLOBAL: S&P Withdraws 'BB-' Long-Term ICR on Two Units
RECTORY LANE: RSM UK Named as Joint Administrators
UROPA SECURITIES 2017-1B: S&P Affirms 'CCC' Rating on B2a Notes
VICTORIA PLC: S&P Ups ICR to 'CCC+' on Completed Debt Refinancing
WINDWARD PROSPECTS: Ernst & Young Named as Joint Administrators
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C Y P R U S
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RONIN EUROPE: S&P Upgrades Long-Term ICR to 'BB', Outlook Stable
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S&P Global Ratings raised its long-term issuer credit rating on
Ronin Europe Ltd. (REL) to 'BB'. The outlook is stable. At the same
time, S&P affirmed its 'B' short-term issuer credit rating on REL.
REL is the client-facing agency brokerage business of Ronin Group.
The group, headed by ultimate parent Blodgettex Finance Ltd. and
including other booking entities, performs a wider mandate of
investing its substantial shareholders' equity.
S&P believes that the group's principal repayments due in 2026 are
manageable. These obligations are issued by one of the unregulated
balance sheets in the group. The group's investment portfolio of
over US$600 million, predominantly in high-grade bonds, would
provide ample sufficient liquidity if these liabilities are repaid
rather than refinanced.
S&P expects that the group will continue to manage its bond
portfolios in a conservative manner. As interest rates increased
since 2022, REL and its affiliates reallocated their portfolios
toward highly creditworthy issuers, mostly from developed markets,
achieving a weighted-average credit rating of about 'A+' as of May
2025 compared with 'A-' in June 2024. While the group has been
gradually building up the modified duration of its bond portfolio
(to about 6.5 in May 2025 compared with 3.5 in 2023) to lock-in
higher yields--particularly during market turmoil during the U.S.
tariff announcement in April 2025—S&P does not think this
suggests a materially higher risk appetite in the context of the
interest rate cycle. Moreover, since the group is largely funded by
equity, it is less sensitive to mark-to-market fluctuations of the
portfolio.
Expansion to new markets can somewhat reinvigorate business
performance. REL's customer assets were largely flat over 2022-2024
on the back of the negative valuation effects that rising policy
rates had on fixed-income instruments. Moreover, higher interest
rates resulted in lower customer activity with a higher share of
buy-and-hold strategies among them, which in turn resulted in
gradually declining fees. But S&P understands that REL has been
entering new markets, resulting in a sizable projected increase in
flow volumes and brokerage fees. Growth will remain concentrated on
a handful of customers, however, with REL largely still a boutique
institution.
S&P said, "The stable outlook reflects our view that, over the next
12-18 months, the group will maintain the bond portfolio's high
credit quality while keeping leverage low at the group level. We
also expect that the group's actions will continue supporting REL's
strong capitalization."
S&P could lower the long-term rating on REL if:
-- The group's risk appetite increases materially, for example
through investment in riskier securities or a substantial increase
in leverage; or
-- REL's importance to the group declines following a loss of
clientele or lower focus on brokerage business.
A positive rating action on REL appears remote in the near term and
would require sizable expansion of its business activities
including both commission-generating business and clients' assets
under custody.
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I R E L A N D
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HENLEY CLO XIII: S&P Assigns B- (sf) Rating to Class F Notes
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S&P Global Ratings assigned its ratings to Henley CLO XIII DAC's
class A-1, A-2, B, C, D, E, and F notes. At closing, the issuer
also issued unrated subordinated notes.
The ratings assigned reflect S&P's assessment of:
-- The diversified collateral pool, which primarily comprises
broadly syndicated speculative-grade senior secured term loans and
bonds that are governed by collateral quality tests.
-- The credit enhancement provided through the subordination of
cash flows, excess spread, and overcollateralization.
-- The collateral manager's experienced team, which can affect the
performance of the rated notes through collateral selection,
ongoing portfolio management, and trading.
-- The transaction's legal structure, which is bankruptcy remote.
-- The transaction's counterparty risks, which are in line with
S&P's counterparty rating framework.
Portfolio benchmarks
S&P Global Ratings' weighted-average rating factor 2,869.64
Default rate dispersion 322.85
Weighted-average life (years) 5.32
Obligor diversity measure 131.90
Industry diversity measure 22.24
Regional diversity measure 1.17
Transaction key metrics
Portfolio weighted-average rating
derived from S&P's CDO evaluator B
'CCC' category rated assets (%) 0.50
'AAA' weighted-average recovery (%) 35.89
Weighted-average spread (%) 3.95
Weighted-average coupon (%) 6.33
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 five 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 target
weighted-average spread (3.95%), the target weighted-average coupon
(6.33%), and the target 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 Aug. 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, we consider
the transaction's exposure to country risk 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.
"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-1 to E notes. Our credit and cash flow analysis indicates that
the available credit enhancement for the class B to D 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.
"For the class F notes, our credit and cash flow analysis indicates
that the available credit enhancement could withstand stresses
commensurate with a lower rating. However, we have applied our
'CCC' rating criteria, resulting in a 'B- (sf)' rating on this
class of notes."
The ratings uplift for the class F notes reflects several key
factors, including:
-- The class F notes' available credit enhancement, which is in
the same range as that of other CLOs S&P has rated and that have
recently been issued in Europe.
-- The portfolio's average credit quality, which is similar to
other recent CLOs.
-- S&P's model generated break-even default rate at the 'B-'
rating level of 27.84% (for a portfolio with a weighted-average
life of 5.32 years), versus if we were to consider a long-term
sustainable default rate of 3.1% for 5.32 years, which would result
in a target default rate of 16.49%.
-- S&P does not believe that there is a one-in-two chance of this
note defaulting.
-- S&P does not envision this tranche defaulting in the next 12-18
months.
S&P said, "Following this analysis, we consider that the available
credit enhancement for the class F notes is commensurate with the
assigned 'B- (sf)' rating.
"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-1 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."
Henley CLO XIII DAC is a European cash flow CLO securitization of a
revolving pool, comprising mainly euro-denominated leveraged loans
and bonds. The transaction is managed by Napier Park CMV LLC.
Ratings
Balance Credit
Class Rating* (mil. EUR) Interest rate§ enhancement (%)
A-1 AAA (sf) 244.00 Three/six-month EURIBOR 39.00
plus 1.33%
A-2 AAA (sf) 5.00 Three/six-month EURIBOR 37.75
plus 1.68%
B AA (sf) 41.30 Three/six-month EURIBOR 27.43
plus 1.90%
C A (sf) 25.70 Three/six-month EURIBOR 21.00
plus 2.30%
D BBB- (sf) 28.00 Three/six-month EURIBOR 14.00
plus 3.15%
E BB- (sf) 19.00 Three/six-month EURIBOR 9.25
plus 5.70%
F B- (sf) 11.00 Three/six-month EURIBOR 6.50
plus 8.42%
Sub notes NR 30.90 N/A N/A
*The ratings assigned to the class A-1, A-2, 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.
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K A Z A K H S T A N
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BANK CENTERCREDIT: S&P Affirms 'BB/B' ICRs, Alters Outlook to Pos.
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S&P Global Ratings revised its outlook on Bank CenterCredit JSC
(BCC) to positive from stable. At the same time, S&P affirmed the
long- and short-term issuer credit ratings on BCC at 'BB/B' and
raised the Kazakhstan national scale rating to 'kzAA-' from
'kzA+'.
S&P said, "The revision of our outlook on BCC follows the same
action on Kazakhstan. We consider BCC as a highly systemically
important bank in Kazakhstan, one of the largest by assets and
deposits. BCC is the third largest of Kazakhstan's commercial
banks, with a market share of about 11% by total assets and 12% by
retail deposits as of July 1, 2025. We expect that improving
sovereign creditworthiness can increase Kazakhstan's capacity to
provide extraordinary support to systemically important
institutions, such as BCC."
BCC's operating performance remains solid. BCC reported 70% net
income growth in the first half of 2025 compared with the same
period in 2024, supported by 27% net interest income growth and
improved noninterest income contribution, mostly due to commissions
and income from dealing operations. The group's return on average
equity has consistently exceeded 35% over the past few years (43%
in first half 2025). While S&P expects it may somewhat decline
because of expected loan book growth deceleration, we forecast it
will remain robust at about 20%-25% over the next three years.
S&P said, "We expect BCC to remain adequately capitalized. We
forecast our risk-adjusted capital (RAC) ratio may improve to
8.7%-9.2% in the next 18-24 months (compared with 7.5% in 2024),
supported by good earnings and 100% earnings retention. This is
based on our expectation that the bank's loan book growth will
decelerate to 15% in 2025, from above 35% over the past three years
(11.7% in the first half of 2025 in annual terms), on the back of
deceleration in auto loans growth and corporate lending decline. We
forecast its net interest margin will remain strong (7.0%-7.3%),
supported by still high interest rates and an anticipated increase
in the share of higher margin retail loans and loans to small and
midsize enterprises (SME).
"We expect BCC's asset quality to remain stable. Although we expect
a moderate increase in unsecured retail and SME loans in BCC's
portfolio over 2025-2026, we anticipate BCC will adhere to its
cautious underwriting approach. We expect nonperforming loans will
remain at 5.5%-6.0% over the next two years versus 5.0% as of June
30, 2025, including Stage 3 and purchased or originated
credit-impaired loans and repossessed assets held for sale in line
with International Financial Reporting Standards. This is
comparable with the sector average of 7%. We also expect that BCC's
cost of risk will be 1.7%-1.9% in 2025-2026, broadly in line with
the system average."
The positive outlook on BCC reflects improving sovereign
creditworthiness and the government's capacity to provide
extraordinary support to systemically important institutions over
the next two to three years.
S&P said, "We could revise the outlook to stable if we took the
same action on the sovereign. We could also revise the outlook to
stable if we observe material pressure on BCC's asset quality and
capitalization, a scenario we consider to be remote.
"Although we consider an upgrade over the next six to 12 months
unlikely, if we raised the sovereign rating over the next two to
three years, an upgrade of BCC could follow. We could also raise
the rating if the bank's profitability metrics remain solid and
above the market average, with increasing earnings stability, seen
in higher contributions from fee and commission income. This would
make the bank more comparable with higher-rated local and
international peers. Additionally, we could upgrade BCC if it
continues to build its capitalization through 100% earnings
retention and loan book growth deceleration, with a consistently
high RAC ratio exceeding 10%."
KAZAKHSTAN TEMIR: S&P Affirms BB ICR, Alters Outlook to Positive
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S&P Global Ratings revised to positive from stable its outlook on
four Kazakhstani government-related entities (GREs):
-- Sovereign Wealth Fund Samruk-Kazyna JSC
-- Kazakhstan Temir Zholy (KTZ)
-- Kazakhstan Electricity Grid Operating Co. JSC (KEGOC)
QazaqGaz.
At the same time, S&P affirmed its global scale ratings on these
entities. S&P also raised its Kazakhstan national scale rating on
KTZ to 'kzAA-' from 'kzA+'.
The outlook revisions follow our revision of the outlook on the
long-term sovereign credit rating on Kazakhstan.
Sovereign Wealth Fund Samruk-Kazyna JSC
S&P said, "We equalize the ratings on Samruk-Kazyna with the
sovereign rating. We continue to view Samruk-Kazyna as a GRE that
would benefit from an almost certain likelihood of extraordinary
government support under stress. Samruk-Kazyna plays a critical
role for Kazakhstan's government as the main vehicle for
implementing its agenda for strategic industrialization and
long-term economic sustainability and diversification. In addition,
we assess as integral the link between the fund and the government,
which is the sole shareholder in Samruk-Kazyna and provides close
oversight of its strategies, priorities, and activities."
Outlook
The positive outlook on Samruk-Kazyna mirrors that on Kazakhstan.
Upside scenario
A positive rating action for Samruk-Kazyna might stem from a
similar action on Kazakhstan, all else being equal.
Downside scenario
S&P would revise the outlook to stable in case of a similar rating
action on Kazakhstan
Kazakhstan Temir Zholy (KTZ)
S&P's raising of the Kazakhstan national scale rating on KTZ to
'kzAA-' from 'kzA+' reflects the upward trend in credit quality.
S&P said, "Our view of a very high likelihood of extraordinary
financial support from the government leads us to rate KTZ two
notches above the 'b+' stand-alone credit profile (SACP). KTZ plays
a very important role in Kazakhstan's national transport sector,
given the country's land-locked position and strong commodity
sectors. We believe there is a very strong link with the
Kazakhstani government, which wholly owns KTZ via Sovereign Wealth
Fund Samruk-Kazyna and provides stable ongoing support. Therefore,
we continue to see the likelihood of timely and sufficient
extraordinary financial support for KTZ from the Kazakhstani
government as very high."
Outlook
The positive outlook mirrors that on Kazakhstan.
Upside scenario
A one-notch upgrade of the sovereign could also lead S&P's to take
a positive rating action on KTZ, all else unchanged.
S&P would also consider an upgrade if KTZ's SACP strengthened to
'bb-', which could result from:
-- Stronger liquidity, supported by a ratio of committed sources
to uses of sustainably above 1.2x over the next 12 months, along
with a manageable maturity profile and no covenant breaches; and
-- Funds from operations (FFO) to debt improving sustainably above
20% due to gradual deleveraging, supported by a solid increase in
traffic and/or favorable tariffs, material subsidies, or equity
injections (including refinancing of debt with equity, equity
injections from the state, or IPO proceeds), absent material
liquidity gaps.
Downside scenario
S&P would revise outlook to stable if on a stand-alone basis its
assessment of KTZ's SACP weakened. For example, if S&P Global
Ratings-adjusted FFO to debt deteriorated below 12% due to
weaker-than-expected operating performance or higher capital
expenditure (capex).
Kazakhstan Electricity Grid Operating Co. JSC (KEGOC)
S&P's view of a very high likelihood of extraordinary financial
support from the Kazakhstani government currently leads it to rate
KEGOC one notch above its SACP. As Kazakhstan's main electricity
transmission system operator, KEGOC is very important for the
economy and government. It has a track record of state support,
including credit-supportive tariff increases, equity injections,
tax benefits, and state guarantees on debt. As such, the positive
outlook on KEGOC primarily mirrors that on Kazakhstan.
Outlook
S&P's positive outlook on KEGOC mirrors the one on Kazakhstan.
S&P said, "On a stand-alone basis, we expect KEGOC to maintain FFO
to debt close to or above 30% even at the peak of the investment
cycle, underpinned by improved EBITDA generation on the back of
regulatory changes. We further expect sustained government support
to the company and no material distributions above our base-case
level."
Upside scenario
S&P could raise the rating of KEGOC by one notch if it was to
upgrade Kazakhstan by one notch to 'BBB', or if:
-- KEGOC executes its capex program smoothly;
-- Recent changes in the regulatory framework that support
investments through tariff revisions are sustained, in the absence
of significant dividend distributions during periods of heavy capex
and negative interventions in tariff regulation, and
-- S&P was to project FFO to debt comfortably above 40% through
the investment cycle alongside adequate liquidity.
Downside scenario
S&P said, "An outlook revision to stable, taking into account our
view of government support, would require the same action on
Kazakhstan or a very significant deterioration in KEGOC'S metrics,
keeping FFO to debt below 20% without short-term prospects for
recovery, or a material deterioration in liquidity, which we don't
expect given the company's liquidity buffers. Although not our base
case, these changes could be triggered by large shareholder
distributions during the investment cycle and tariff revisions that
do not fully compensate for higher energy costs and the capex
program."
QazaqGaz NC JSC
S&P said, "We continue to see it as highly likely that the
government of Kazakhstan, via Samruk-Kazyna, will provide support
to QazaqGaz if needed, translating into a one-notch of uplift from
the SACP. The increasing demand for gas, amid the government's goal
for 65% gasification of the country by 2030 from 60% in 2023, makes
gas a critical part of Kazakhstan's energy mix and decarbonization,
in our view. In November 2021, QazaqGaz officially became the
national gas company of Kazakhstan, when it was spun off from
KazMunayGas, and became a direct subsidiary of Sovereign Wealth
Fund Samruk-Kazyna." Thanks to this status, QazaqGaz has preemptive
rights to purchase the associated gas from oil producers and
develop Kazakhstan's gas fields.
Outlook
The positive outlook mirrors that on Kazakhstan.
S&P said, "The outlook also incorporates our view that QazaqGaz
will receive annual dividends of KZT300 billion-KZT350 billion from
joint ventures AGP and BSGP in a timely manner. This would ensure
FFO to debt remains at 25%-35% on average in 2025-2027, during the
peak of the capex cycle, and later closer to 40%, albeit with
potential volatility year on year. We also expect QazaqGaz to build
a significant cash balance to fund investments in gas production
and network enhancement as well as the full repayment of a Eurobond
due in 2027."
Upside scenario
A positive rating action might stem from a similar action on
Kazakhstan, all else being equal
Downside scenario
S&P said, "We would revise outlook to stable if QazaqGaz ' SACP
weakened to 'bb-, for example, if we viewed liquidity constraints
from interruptions in dividends from the joint ventures or a
materially enlarged investment program was squeezing FFO to debt,
causing negative free operating cash flow (FOCF), and creating a
marked increase in debt."
Ratings list
Kazakhstan Electricity Grid Operating Co. (JSC)
Ratings Affirmed; Outlook Action
To From
Kazakhstan Electricity Grid Operating Co. (JSC)
Issuer Credit Rating BB+/Positive/-- BB+/Stable/--
Kazakhstan Temir Zholy
Ratings Affirmed; Outlook Action
To From
Kazakhstan Temir Zholy
Issuer Credit Rating BB/Positive/-- BB/Stable/--
Upgraded
To From
Kazakhstan Temir Zholy
Issuer Credit Rating
Kazakhstan National Scale kzAA-/--/-- kzA+/--/--
Sovereign Wealth Fund Samruk-Kazyna JSC
Ratings Affirmed; Outlook Action
To From
Sovereign Wealth Fund Samruk-Kazyna JSC
Issuer Credit Rating BBB-/Positive/A-3 BBB-/Stable/A-3
Intergas Central Asia JSC
QazaqGaz NC JSC
Issuer Credit Rating BB+/Positive/-- BB+/Stable/--
Ratings Affirmed
Sovereign Wealth Fund Samruk-Kazyna JSC
Issuer Credit Rating
Kazakhstan National Scale kzAAA/--/--
Senior Unsecured BBB-
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R U S S I A
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ELDIK BANK: S&P Assigns 'B+/B' ICRs, Outlook Stable
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S&P Global Ratings assigned its 'B+/B' long- and short-term issuer
credit ratings to Kyrgyzstan-based commercial bank OJSC Eldik Bank.
The outlook is stable.
S&P Global Ratings expects Eldik Bank to maintain its market
leading position and to expand into financing large infrastructure
projects. Eldik Bank is one of the few pivotal players in
Kyrgyzstan's banking sector, with a strong business franchise and
robust brand recognition. As of June 30, 2025, Eldik Bank had
assets of approximately KGS200 billion (about $2.3 billion), making
it the largest bank in the country by assets. The bank accounts for
an estimated 12% of system-wide deposits in Kyrgyzstan.
Agricultural financing accounted for about 27% of its loan book at
the end of 2024, in a country where agriculture plays a vital role
in the economy. S&P said, "After a KGS61.5 billion capital
injection by the government in 2025, we understand that Eldik Bank
is likely to expand its loan portfolio through financing large
infrastructure projects, which might change its loan book
composition and risk profile, increasing its single-name
concentration risk in the medium term. The government could play a
more decisive role in determining Eldik Bank's strategy in future
to better reflect its economic and development agenda, but we
expect governance procedures to remain prudent and business
decisions to be driven by risk-adjusted profitability." The bank's
recent acquisition of one of the largest domestic
telecommunications operators in the country, Sky Mobile, is in line
with its strategy to strengthen its digital ecosystem and expand
its customer base.
A recent capital injection by the Kyrgyzstan government led to a
strengthening of Eldik Bank's already solid capital position. S&P
said, "We expect Eldik Bank's risk-adjusted capital ratio to remain
well above 15% over the next two years, following a Tier 1 capital
injection by the government totaling KGS61.5 billion over June and
July 2025 (compared to the bank's KGS18.5 billion of total equity
reported at the end of 2024). Simultaneously, Eldik Bank purchased
government bonds for KGS60 billion with 15-years maturity under a
3% coupon rate at amortized cost. We understand that the bank's
intention is to hold these securities up to maturity. The capital
raise supports Eldik Bank's plan to finance national infrastructure
projects and to scale up sector-specific financing, as well as the
bank's ambitions to enter international debt and equity markets and
to increase cooperation with global financial institutions. We
understand that the bank is in the process of updating its business
plan, and it will take time for it to build a significant project
finance portfolio. Therefore, we now assume moderate loan book
growth over the next year and the continuation of dividend payouts
averaging 45%-50% of net income. We anticipate that the bank's new
mandate to finance large infrastructure projects will deplete its
currently very solid capital cushion in the medium term. Therefore,
we applied a negative notch following our comparable rating
analysis because we believe an assessment of very strong capital
and earnings is temporary. This results in a stand-alone credit
profile (SACP) of 'bb-', which is in line with our assessment of
the anchor for banks operating predominantly in Kyrgyzstan."
S&P said, "We expect the bank's risk profile to evolve with the new
mandate, but higher than average exposures to volatile sectors will
likely remain. The quality of the bank's underwriting and risk
management will be tested over the next several years while loan
book growth, exposures, and concentrations might change
significantly over the coming years. Meanwhile, the bank has
improved its balance sheet with the share of loans classified as
Stage 3 decreasing to about 6.4% at the end of 2024, from about 27%
at the end of 2021. We consider the bank's loan loss provisioning
rate as one of the lowest among regional peers. The bank reported a
ratio of provisions to problem loans of 46% as of Dec. 31, 2024.
Eldik Bank's highest exposure is consumer loans at 29% of the loan
book, followed by the agriculture sector at 27%, and wholesale
trade at 19%--sectors that could potentially weigh on the risk
profile in case of an economic downturn. Expansion into the quite
complex project finance sector, where the bank may lack sufficient
expertise, could put additional pressure on its asset quality and
overall risk profile over time. We assume prudent decision making
and envisage credit costs to be 1.5%-1.8% over the outlook horizon,
as the recently grown loan book starts seasoning and macroeconomic
conditions remain quite favorable.
"We expect Eldik Bank to diversify its funding profile and continue
to hold ample liquidity buffers. We consider the bank's funding and
liquidity profiles to be good compared with its regional peers. We
expect growth in customer deposits, accounting for 83% of its
funding base at the end of 2024, to normalize over the next few
years after a record-high 160% increase in 2022, leading to 3.0x
growth over 2022-2024. This brought the bank's loan-to-deposit
ratio to an all-time low of 58% at the end of 2024 (year-end 2020:
81%), despite dynamic loan growth over the same period. The bank
does not have any wholesale funding, but this will likely change
over time as it aims to tap capital markets and cooperate with
international financial institutions to finance large
infrastructure projects. Therefore, we expect the loan-to-deposit
ratio to return to its historic levels over the next two years.
Cash and cash equivalents accounted for about 33% of the bank's
total assets as of June 30, 2025, and these are unlikely to
decrease over the next 12-18 months.
"We view Eldik Bank as a government-related entity (GRE) with high
systemic importance in Kyrgyzstan's banking sector. The bank plays
an important role for and has a strong link with the government,
and we believe it has a moderately high likelihood of receiving
timely and sufficient extraordinary government support. As the
largest bank by assets in Kyrgyzstan, we expect the bank to
maintain its historic mandate to provide financing under various
government-led programs, encourage entrepreneurship, and
participate in financing of infrastructure projects going forward.
We think the link between the government and Eldik Bank is strong
because of the government's direct control through the State Agency
for State Property Management. Therefore, our assessment of Eldik
Bank's creditworthiness incorporates the government's material
ongoing support.
"We do not incorporate an uplift for extraordinary government
support. While we consider Eldik Bank to have high systemic
importance in Kyrgyzstan's banking sector and to be a GRE with a
moderately high likelihood of support from the Kyrgyzstan
government, we do not incorporate any notches of government support
in our ratings. This is because the bank's SACP is one notch higher
than the sovereign rating of 'B+'. Our assessment of Eldik Bank's
SACP incorporates the government's ongoing support in terms of
funding and capital.
"Our rating on the bank is constrained at the level of the foreign
currency sovereign credit rating. Eldik Bank is exposed to economic
risks in Kyrgyzstan as well as the government's creditworthiness.
We typically do not rate banks above the sovereign credit rating
because of the likely direct and indirect influence of sovereign
distress on their operations, including their ability to service
foreign currency obligations.
"The stable outlook on Eldik Bank mirrors that on the sovereign and
reflects our view that adequate capital buffers and strong links
with the government will help the bank to maintain its
creditworthiness over the next 12 months.
"We could lower our ratings on Eldik Bank over the next 12 months
if we were to lower our sovereign credit ratings on Kyrgyzstan.
Although we currently consider the likelihood of a downgrade to be
remote, we may take a negative rating action if asset quality
deteriorated materially. We could also take a negative rating
action if nonfinancial risks unexpectedly materialized, for example
if the bank faced material sanction allegations or regulatory
intervention, which is not our base-case assumption."
A positive rating action over the next 12 months would hinge on an
upgrade of Kyrgyzstan.
===========================
U N I T E D K I N G D O M
===========================
BRIGHTLED LTD: Begbies Traynor Named as Administrators
------------------------------------------------------
Brightled 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-MAN-001068, and Dean Watson and Paul Stanley of Begbies
Traynor (Central) LLP, were appointed as administrators on Aug. 12,
2025.
Brightled Ltd specialized in the wholesale of other office
machinery and equipment.
Its registered office is at 340 Deansgate, Manchester, M3 4LY.
The joint administrators can be reached at:
Dean Watson
Paul Stanley
Begbies Traynor (Central) LLP
340 Deansgate, Manchester, M3 4LY
Further details contact:
Joint Liquidators
E-mail: abigail.smith@btguk.com
Telephone: 0161 837 1700
CELLULAREVOLUTION LTD: Armstrong Watson Named as Administrators
---------------------------------------------------------------
Cellularevolution Limited was placed into administration
proceedings in the High Court of Justice Business and Property
Courts in Leeds Company and Insolvency List No 831 of 2025, and Ed
Connell and Mike Kienlen of Armstrong Watson LLP, were appointed as
administrators on Aug. 12, 2025.
Cellularevolution Limited, trading as CellRev, specialized in
research and experimental development on biotechnology.
Its registered office is at Third Floor, 10 South Parade, Leeds,
West Yorkshire, LS1 5QS.
Its principal trading address is at The Biosphere, Newcastle Helix,
Newcastle Upon Tyne, NE4 5BX.
The joint administrators can be reached at:
Ed Connell
Mike Kienlen
Armstrong Watson LLP
Third Floor, 10 South Parade
Leeds, West Yorkshire
LS1 5QS
Further Details Contact:
Elena Fergusson
Tel No: 0113 221 1300
Email at elena.fergusson@armstrongwatson.co.uk
EUROSAIL 2006-2BL: S&P Affirms 'CCC (sf)' Rating on Cl. F1c Notes
-----------------------------------------------------------------
S&P Global Ratings raised to 'AAA (sf)' from 'A+ (sf)' its credit
ratings on Eurosail 2006-2BL PLC's class B1a and B1b notes and to
'AA+ (sf)' from 'A+ (sf)' its ratings on the class C1a and C1c
notes. At the same time, S&P affirmed its 'A+ (sf)' ratings on the
class D1a and D1c notes, its 'B (sf)' rating on the class E1c
notes, and its 'CCC (sf)' rating on the class F1c notes. S&P has
resolved the UCO placements of all classes of notes.
The rating actions follow its credit and cash flow analysis of the
most recent transaction information that S&P has received as of the
June 2025 payment date.
Performance has been stable since S&P's previous review in August
2024. Arrears, as per the June 2025 investor report, have increased
to 34.10% from 30.50%. The percentage increase in arrears mostly
reflects the reduced pool size rather than an actual increase in
arrears.
Cumulative losses have increased marginally to 4.98% from 4.97% at
S&P's previous review.
S&P said, "Our weighted-average foreclosure frequency assumptions
have increased at all rating levels, reflecting the higher arrears.
This has been partially offset by lower weighted-average loss
severity assumptions, stemming from a decrease in the current
loan-to-value ratio following house price index growth. However,
considering the transaction's historical loss severity levels, the
latest available data suggests that the portfolio's underlying
properties may have only partially benefited from rising house
prices, and we have therefore applied a haircut to property
valuations to reflect this."
Portfolio WAFF and WALS
Rating level WAFF (%) WALS (%) Credit coverage (%)
AAA 51.89 14.99 7.78
AA 48.10 9.64 4.64
A 45.93 3.06 1.40
BBB 43.46 2.00 0.87
BB 40.94 2.00 0.82
B 40.30 2.00 0.81
WAFF--Weighted-average foreclosure frequency.
WALS--Weighted-average loss severity.
The reserve fund is at target and is not amortizing due to the
breach in the 90+ days arrears and cumulative losses triggers. The
liquidity facility is undrawn and covers interest shortfalls on the
notes. Given the sequential amortization, credit enhancement has
increased since S&P's previous review. This offsets the higher
weighted-average foreclosure frequency in its cash flow analysis.
Fees are declining in line with S&P's expectations at the previous
review, since these are mainly due to legal expenses arising from
the LIBOR transition. This has been beneficial from a cash flow
perspective.
S&P said, "The application of our revised counterparty criteria no
longer constrains the ratings in this transaction. The notes were
capped due the exposure to the bank account provider, Barclays Bank
PLC, which failed to take remedial actions in 2015 when it was
downgraded. Under the revised criteria, we can remove the cap if we
believe there is sufficient available credit enhancement, if a
reason for the failure to implement a committed remedial action is
provided, and if we believe the transaction's performance is
satisfactory.
"Moreover, in line with the revised criteria, we can classify the
exposure to the bank account provider as "low" because it has a
resolution counterparty rating. Furthermore, the replacement
trigger ('A-') is higher than 'BBB', which results in a maximum
supported rating of 'AAA'. Given the high level of available credit
enhancement, the transaction's robust performance, and the fact
that Barclays Bank attempted to remedy following its downgrade but
ultimately decided against this due to potential operational risks
arising from a replacement, we removed the cap on the notes.
"Likewise, we assessed the collateral framework of the swap
provided by Barclays Bank PLC as “low”. The combination of our
assessment of the collateral framework and the rating triggers is
now commensurate with a maximum rating of 'AAA'.
"Considering the results of our updated credit and cash flow
analysis, the available credit enhancement for the class B1a and
B1b notes is sufficient to withstand the stresses that we apply at
a 'AAA' rating level. We therefore raised our ratings on these
notes to 'AAA (sf)' from 'A+ (sf)'.
"The available credit enhancement for the class C1a and C1c notes
can also withstand stresses at higher rating levels. We therefore
raised our ratings to 'AA+ (sf)' from 'A+ (sf)'.
"We affirmed our 'A+ (sf)' ratings on the class D1a and D1c notes
and our 'B (sf)' rating on the class E1c notes. Both classes were
able to pass cash flow stresses at higher rating levels than those
assigned. Our affirmations also considered the notes' sensitivity
to increased arrears (resulting in higher defaults and longer
recoveries), the borrowers' credit profile, the high interest rate
environment, and tail-end risk associated with the small pool
size.
"The class F1c notes do not achieve any rating in our standard or
steady state scenario (actual fees, expected prepayment, no spread
compression) cash flow runs. Moreover, given the low levels of
credit enhancement and significant shortfalls in a steady state
scenario, we still view these notes as vulnerable to nonpayment and
dependent upon favorable business, financial, and economic
conditions. We therefore affirmed our 'CCC (sf)' rating.
"We consider the transaction's resilience in case of additional
stresses to some key variables, in particular defaults and loss
severity, to determine our forward-looking view. We considered the
sensitivity of the ratings to increased defaults, extended
recoveries, and higher interest rates, and the ratings remain
robust. Given its high seasoning (231 months), the transaction has
a low pool factor (10.15), which tends to amplify movement in
arrears. We have considered the tail-end risk associated with the
low pool factor in our analysis."
Eurosail 2006-2BL PLC's loan pool comprises first- and
second-ranking mortgages on properties in England, Wales, and
Northern Ireland, and standard securities on properties in
Scotland. This transaction is backed by nonconforming U.K.
residential mortgages originated by Preferred Mortgages Ltd.
EUROSAIL 2007-1NC: S&P Affirms 'B-(sf)' Rating on Class E1c Notes
-----------------------------------------------------------------
S&P Global Ratings raised to 'AAA (sf)' from 'A+ (sf)' its credit
ratings on Eurosail 2007-1NC PLC's class B1a and B1c notes and to
'AA (sf)' from 'A+ (sf)' its rating on the class C1a notes. At the
same time, S&P affirmed its 'B+ (sf)' ratings on the class D1a and
D1c notes and its 'B-(sf)' rating on the class E1c notes. S&P has
resolved the UCO placements of all classes of notes.
The upgrades follow S&P's credit and cash flow analysis of the most
recent transaction information that S&P has received as of the June
2025 payment date.
Performance has been stable since our previous review in September
2024. Arrears, as per the June 2025 investor report, have increased
to 41.14% from 38.46%. The percentage increase in arrears mostly
reflects the reduced pool size rather than an actual increase in
arrears.
Cumulative losses have increased marginally to 5.70% from 5.68% at
our previous review.
S&P said, "Our weighted-average foreclosure frequency assumptions
have increased at all rating levels, reflecting the higher arrears.
This has been partially offset by lower weighted-average loss
severity assumptions, stemming from a decrease in the current
loan-to-value ratio following house price index growth. However,
considering the transaction's historical loss severity levels, the
latest available data suggests that the portfolio's underlying
properties may have only partially benefited from rising house
prices, and we have therefore applied a haircut to property
valuations to reflect this."
Portfolio WAFF and WALS
Rating level WAFF (%) WALS (%) Credit coverage (%)
AAA 60.96 20.86 12.72
AA 57.02 15.58 8.88
A 54.58 8.03 4.38
BBB 52.10 4.85 2.53
BB 49.62 3.24 1.61
B 49.00 2.20 1.08
WAFF--Weighted-average foreclosure frequency.
WALS--Weighted-average loss severity.
The reserve fund is at target and is not amortizing due to the
breach in the 90+ days arrears and cumulative losses triggers. The
liquidity facility is at undrawn and covers interest shortfalls on
the notes. Given the sequential amortization, credit enhancement
has increased since our previous review. This offsets the higher
weighted-average foreclosure frequency in our cash flow analysis.
Fees are declining in line with S&P's expectations at the previous
review, since these are mainly due to legal expenses arising from
the LIBOR transition. This has been beneficial from a cash flow
perspective.
S&P said, "The application of our revised counterparty criteria no
longer constrains the ratings in this transaction. The notes were
capped due the exposure to the bank account provider, Barclays Bank
PLC, which failed to take remedial actions in 2015 when it was
downgraded. Under the revised criteria, we can remove the cap if we
believe there is sufficient available credit enhancement, if a
reason for the failure to implement a committed remedial action is
provided, and if we believe the transaction's performance is
satisfactory. Moreover, in line with the revised criteria, we can
classify the exposure to the bank account provider as "low" because
it has a resolution counterparty rating. Furthermore, the
replacement trigger ('A-') is higher than 'BBB', which results in a
maximum supported rating of 'AAA'. Given the high level of
available credit enhancement, the transaction's robust performance,
and the fact that Barclays Bank attempted to remedy following its
downgrade but ultimately decided against this due to potential
operational risks arising from a replacement, we removed the cap on
the notes.
"Likewise, we assessed the collateral framework of the swap
provided by Barclays Bank PLC as "low". The combination of our
assessment of the collateral framework and the rating triggers is
now commensurate with a maximum rating of 'AAA'.
"Considering the results of our updated credit and cash flow
analysis, the available credit enhancement for the class B1a and
B1c notes is sufficient to withstand the stresses that we apply at
a 'AAA' rating level. We therefore raised our ratings on these
notes to 'AAA (sf)' from 'A+ (sf)'.
"The available credit enhancement for the class C1a notes can also
withstand stresses at a higher rating level. We therefore raised
our rating to 'AA (sf)' from 'A+ (sf)'.
"We affirmed our 'B+ (sf)' ratings on the class D1a and D1c notes.
Both classes were able to pass our cash flow stresses at higher
rating levels than those assigned. However, our affirmations also
considered their sensitivity to increased arrears (resulting in
higher defaults and longer recoveries), the borrowers' credit
profile, the high interest rate environment, and tail-end risk
associated with the small pool size.
"The class E1c notes still do not achieve any rating in our
standard or steady state scenario (actual fees, expected
prepayment, no spread compression) cash flow runs. We do not
believe this tranche has sufficient credit enhancement to withstand
a mild stress. Given the current credit enhancement of around 5%,
the non-amortizing reserve fund, and the improving macroeconomic
environment for nonconforming borrowers due to declining interest
rates, we affirmed our 'B- (sf)' rating.
"We consider the transaction's resilience in case of additional
stresses to some key variables, in particular defaults and loss
severity, to determine our forward-looking view. We considered the
sensitivity of the ratings to increased defaults, extended
recoveries, and higher interest rates, and the ratings remain
robust. Given its high seasoning (225 months), the transaction has
a low pool factor (11.02%), which tends to amplify movement in
arrears. We have considered the tail-end risk associated with the
low pool factor in our analysis."
The loan pool comprises first- and second-ranking mortgages on
properties in England, Wales, and Northern Ireland, and standard
securities on properties in Scotland. This transaction is backed by
nonconforming U.K. residential mortgages originated by Southern
Pacific Mortgage Ltd. and Preferred Mortgages Ltd. in February
2007.
LEEDALE LTD: Begbies Traynor Named as Administrators
----------------------------------------------------
Leedale Ltd was placed into administration proceedings in the High
Court of Justice Business and Property Courts in Manchester,
Insolvency & Companies List (ChD) Court Number: CR-2025-001142, and
Craig Povey and Gareth Prince of Begbies Traynor (Central) LLP,
were appointed as administrators on Aug. 13, 2025.
Its registered office is at 85 Great Portland Street, London, W1W
7LT.
The administrators can be reached at:
Craig Povey
Gareth Prince
Begbies Traynor (Central) LLP
11th Floor, One Temple Row
Birmingham, B2 5LG
Any person who requires further information may contact
Jason Hamilton
Begbies Traynor (Central) LLP
Email: jason.hamilton@btguk.com
Telephone: 0121 200 8150
LIBERTY GLOBAL: S&P Withdraws 'BB-' Long-Term ICR on Two Units
--------------------------------------------------------------
S&P Global Ratings has withdrawn its 'BB-' long-term issuer credit
ratings on two subsidiaries of Liberty Global Ltd., that is Liberty
Global Europe Inc. and UnitedGlobalCom LLC because those entities
have ceased to exist, thereby correcting an oversight. The outlook
was stable at the time of the withdrawal.
S&P's rating on Liberty Global Ltd. is unaffected.
RECTORY LANE: RSM UK Named as Joint Administrators
--------------------------------------------------
Rectory Lane Development Ltd was placed into administration
proceedings in the High Court of Justice, Business and Property
Courts Court Number: CR-2025-5629, and David Shambrook and Gordon
Thomson of RSM UK Restructuring Advisory LLP, were appointed as
joint administrators on Aug. 15, 2025.
Rectory Lane Development specialized in the development of building
projects.
Its registered office and principal trading address is at Js & Co
Accountants Ltd, 26 Theydon Road, London, E5 9NA.
The joint administrators can be reached at:
David Shambrook
Gordon Thomson
RSM UK Restructuring Advisory LLP
25 Farringdon Street, London
EC4A 4AB
Correspondence address & contact details of case manager:
Jamie Wilson
RSM UK Restructuring Advisory LLP
25 Farringdon Street
London, EC4A 4AB
Tel: 0203 201 8000
For further details contact:
The Joint Administrators
Tel: 020 3201 8000
UROPA SECURITIES 2017-1B: S&P Affirms 'CCC' Rating on B2a Notes
---------------------------------------------------------------
S&P Global Ratings raised to 'AAA (sf)' from 'A+ (sf)' its credit
ratings on Uropa Securities PLC's series 2007-1B class A3a and A3b
notes and to 'AA+ (sf)' from 'A+ (sf)' its ratings on the class A4a
and A4b notes. At the same time, S&P affirmed its 'A+ (sf)' ratings
on the class M1a and M1b notes, its 'A (sf)' rating on the class
M2a notes, its 'BB- (sf)' ratings on the class B1a and B1b notes,
and its 'CCC (sf)' rating on the class B2a notes. S&P has resolved
the UCO placements of all classes of notes.
The upgrades follow S&P's credit and cash flow analysis of the most
recent transaction information that S&P has received as of the July
2025 payment date.
Performance has been stable since S&P's previous review in August
2024. Arrears, as per the July 2025 loan level tape, have increased
slightly to 35.7% from 35.37%. While the share of loans in the
30-60 days and 60-90 days arrears buckets has declined, the
proportion of loans in 90+ days arrears rose to 30.01% from 28.43%.
It is worth noting that the percentage increase in arrears largely
reflects the reduced pool size, rather than a material rise in the
absolute volume of delinquent loans.
Cumulative losses have remained stable at 2.96%. These generally
occurred early in the deal and have been limited since 2015.
S&P said, "Our weighted-average foreclosure frequency assumptions
have increased at all rating levels, reflecting the higher arrears.
This has been partially offset by lower weighted-average loss
severity assumptions, stemming from a decrease in the current
loan-to-value ratio following house price index growth. However,
considering the transaction's historical loss severity levels, the
latest available data suggests that the portfolio's underlying
properties may have only partially benefited from rising house
prices, and we have therefore applied a 15% haircut to property
valuations to reflect this."
Portfolio WAFF and WALS
Rating level WAFF (%) WALS (%) Credit coverage (%)
AAA 49.30 26.18 12.91
AA 45.44 20.19 9.17
A 43.28 10.66 4.61
BBB 40.83 5.93 2.42
BB 38.28 3.38 1.29
B 37.64 2.00 0.75
WAFF--Weighted-average foreclosure frequency.
WALS--Weighted-average loss severity.
The reserve fund has been drawn at various times throughout the
transaction's life and has a shortfall of GBP191,952. This is
mainly due to higher third-party fees and the repayment of the B2a
notes' principal deficiency ledger by GBP44,547.57. The reserve
fund is not amortizing after breaching 90+ days arrears and
cumulative loss triggers. Given the transaction's sequential
amortization, credit enhancement has increased since S&P's previous
review. This offsets the higher weighted-average foreclosure
frequency in its cash flow analysis.
Fees are declining in line with S&P's expectations at the previous
review. Like other nonconforming transactions, both fixed- and
floating-rate fees for this transaction have previously exceeded
their historical averages largely due to legal complexities
associated with the LIBOR transition. However, fee levels are no
longer elevated and are now declining, which is beneficial from a
cash flow perspective.
S&P said, "The application of our revised counterparty criteria no
longer constrains the ratings in this transaction. Previously, the
notes were capped due to exposure to the currency swap provider. In
line with our updated criteria, we assessed the collateral
framework of the swap provided by NatWest Markets PLC as "low." The
combination of this assessment and the applicable rating triggers
is now commensurate with a maximum rating of 'AAA'. As a result,
the notes are no longer capped at the resolution counterparty
rating on the swap counterparty.
"Considering the results of our updated credit and cash flow
analysis, the available credit enhancement for the class A3a and
A3b notes is sufficient to withstand the stresses that we apply at
a 'AAA' rating level. We therefore raised our ratings on these
notes to 'AAA (sf)' from 'A+ (sf)'.
"The available credit enhancement for the class A4a and A4b notes
can also withstand stresses at a higher rating level. Given the
current level of credit enhancement and the relative seniority of
these classes, we raised our rating to 'AA+ (sf)' from 'A+ (sf)'.
"We affirmed our 'A+ (sf)' ratings on the class M1a and M1c notes,
and our 'A (sf)' rating on the class M2a notes. These tranches'
cash flow results have improved due to higher credit enhancement,
lower fees, and credit coverage. However, we believe the assigned
ratings continue to reflect their relative position in the capital
structure, the level of available credit enhancement, and the
nonconforming nature of the borrowers in the pool.
"We affirmed our 'BB- (sf)' ratings on the class B1a and B1b notes.
Both classes were able to pass our cash flow stresses at higher
rating levels than those assigned. However, our affirmations also
considered their sensitivity to increased arrears (resulting in
higher defaults and longer recoveries), the borrowers' credit
profile, the high interest rate environment, and tail-end risk
associated with the small pool size.
"The class B2a notes still do not achieve any rating in our
standard or steady state scenario (actual fees, expected
prepayment, no spread compression) cash flow with significant
principal shortfalls. Given the current level of arrears, low
credit enhancement, the borrowers' nonconforming nature, and
tail-end risk associated with the small pool size, we still believe
these notes are vulnerable to nonpayment, and are dependent upon
favorable business, financial, and economic conditions for the
obligor to meet its financial commitment on the obligation. We
therefore affirmed our 'CCC (sf)' rating on the notes.
"We consider the transaction's resilience in case of additional
stresses to some key variables, in particular defaults and loss
severity, to determine our forward-looking view. We considered the
sensitivity of the ratings to increased defaults, extended
recoveries, and higher interest rates, and the ratings remain
robust with a maximum deterioration of two-notches. Given its high
seasoning (222 months), the transaction has a low pool factor
(17.21%), which tends to amplify movement in arrears. We have
considered the tail-end risk associated with the low pool factor in
our analysis."
The notes are backed by a pool of first-ranking mortgages secured
over freehold and leasehold properties in England and Wales. The
transaction closed in 2007 and was originated by three different
entities--GMAC – RFC Ltd., Kensington Mortgage Co. Ltd., and
Money Partners Ltd.
VICTORIA PLC: S&P Ups ICR to 'CCC+' on Completed Debt Refinancing
-----------------------------------------------------------------
S&P Global Ratings raised its long-term issuer credit rating on
Victoria PLC to 'CCC+' from 'SD'. S&P assigned its 'CCC+' issue
rating to the new EUR612 million first-priority senior secured
notes with a recovery rating of '3' and recovery prospects of 55%.
In addition, S&P rates all other senior secured debt that is
subordinated to the first-priority notes at 'CCC-' with a recovery
rating of '6' and 0% recovery prospects.
S&P said, "The stable outlook reflects our view that, while the
operating environment remains challenging, Victoria will gradually
improve profitability over the next 12 months as the group starts
realizing benefits from reorganization and cost-saving initiatives.
In addition, we think the group will sustain a sufficient liquidity
provision, with neutral to positive FOCF and access to external
liquidity sources."
On Aug. 26, 2025, Victoria PLC implemented the exchange offer on
the majority of its outstanding EUR489 million senior secured notes
maturing 2026 and a portion of the EUR250 million senior secured
notes maturing 2028 for new EUR612 million first-priority senior
secured notes, maturing 2029. The new capital structure also
includes about EUR165 million (about GBP143 million) remaining on
the existing senior secured notes maturing 2028 and a GBP130
million super senior credit facility maturing 2030.
In S&P's base case, it forecasts S&P Global Ratings-adjusted EBITDA
generation of about GBP115 million-GBP120 million in fiscal 2026
(ending March 31, 2026) and about GBP140 million-GBP145 million in
fiscal 2027. This leads to S&P Global Ratings-adjusted debt to
EBITDA of above 10x (including preference shares with noncash
interest treated as debt), funds from operations (FFO) cash
interest coverage of about 2.5x-3.0x, and neutral to positive free
operating cash flow (FOCF) over the next 12-18 months.
Victoria's debt refinancing, implemented on Aug. 26, 2025, extends
its debt maturity profile and temporarily eases the cash interest
burden over the next 12-18 months. Victoria has exchanged the
majority of its EUR489 million senior secured notes due August 2026
and a portion of its EUR250 million senior secured notes due March
2028 for new EUR612 million first-priority senior secured notes due
July 2029. Victoria also holds a GBP130 million super senior credit
facility, which matures in 2030. This is split between a GBP55
million revolving credit facility (RCF) and a GBP75 million term
loan facility. While the new first-priority notes will bear a
substantially higher fixed interest rate of 9.875%, the company has
the option in the first 12 months for payment in kind (PIK) of
8.875% and 1.000% cash interest. S&P believes the company will
likely exercise this option and reduce the cash interest burden
over the next 12 months. This will help support the liquidity
position and, together with ongoing operational progress, should
enable FFO cash interest coverage to remain at about 3.0x over the
next 12 months.
S&P said, "That said, we currently view the capital structure as
unsustainable owing to the high implied interest costs and the
average weighted debt maturity of close to three years. Also,
Victoria's EBITDA base is currently subdued in a continued soft
trading environment. S&P Global Ratings-adjusted debt
leverage--including preference shares with noncash interest treated
as debt--will consequently remain elevated at above 10x in fiscal
2026 (above 8.0x excluding preference shares). Additionally, beyond
the next 12-18 months, the cash interest burden will increase and
start weighing on free cash flow generation such that FFO cash
interest coverage will decrease to about 2.0x-2.5x.
"We forecast Victoria's profitability to improve as the group
executes cost-saving initiatives, despite demand remaining
challenging. Under our base-case projections, we assume the
operating environment will remain challenging in fiscal 2026 as
consumer demand remains constrained, given prolonged high inflation
weighing on consumer discretionary spending in Victoria's end
markets. We therefore forecast stagnant revenue with a marginal
decline of about 0.5%. We then expect an uplift in fiscal 2027 to
about 3.5%-4.0%, because we anticipate a gradual recovery in
volumes as housing transactions pick up and consumer discretionary
spending increases." However, there is significant uncertainty
about the timing of the recovery, and Victoria's performance
remains highly dependent on a supportive operating environment.
In the meantime, Victoria remains focused on executing cost-saving
initiatives to boost profitability. Key initiatives include
significant restructuring of Balta Rugs, including transferring
select operations from Belgium to existing facilities in Turkiye,
the upgrade of the ceramics facility in Spain, and the integration
of distribution and group procurement. Combined cost initiatives
are expected to bring cost benefits of about GBP50 million spread
over fiscal 2026 and 2027, of which Victoria is on track to execute
about GBP20 million in fiscal 2026. S&P therefore forecasts S&P
Global Ratings-adjusted EBITDA to increase to about GBP115
million-GBP120 million in fiscal 2026 and about GBP140
million-GBP145 million in fiscal 2027, corresponding to adjusted
margins improving to 10.5%-11.0% and 12.5%-13.0% respectively from
a dip to 8.6% in fiscal 2025.
S&P said, "We assume Victoria will generate neutral to positive
FOCF over the next 12 months, supporting an adequate liquidity
position to self-fund operations. The group's liquidity position,
including about GBP65 million cash on balance sheet and GBP55
million available under the new super senior credit facilities on a
pro-forma basis as of March 29, 2025, should sufficiently support
its operations at least over the next 12 months and enable the
group to execute its reorganization plans. We expect stable capex
spending of about GBP60 million annually on maintenance and
reorganization projects, and modest working capital outflows as
Victoria prioritizes working capital management. Alongside an
expected recovery in EBITDA, we forecast FOCF to turn marginally
positive at about GBP5 million-GBP10 million in fiscal 2026 and to
remain above such levels thereafter.
"The stable outlook reflects our view that, while the operating
environment remains challenging, Victoria will gradually improve
profitability over the next 12 months as the group executes
cost-saving initiatives and realizes benefits from reorganization.
In addition, we think the group will sustain a sufficient liquidity
provision, with neutral to positive FOCF as well as access to
external liquidity sources.
"We could lower our ratings on Victoria in the next 12 months if we
observe a continued deterioration of operating performance such
that FOCF generation is materially negative.
"We could take a positive rating action on Victoria if it generates
sustained positive FOCF generation above our base case and
consistently deleverages, supported by an operating performance
recovery through improved revenue growth and profitability."
Upside is also contingent on the company migrating to a more
sustainable capital structure in terms of cost and maturity
profile.
WINDWARD PROSPECTS: Ernst & Young Named as Joint Administrators
---------------------------------------------------------------
Windward Prospects 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-2018-009110, and Simon Edel, Richard Barker and
Dan Mindel of Ernst & Young LLP, were appointed as joint
administrators on Aug. 7, 2025.
Windward Prospects specialized in the activities of head offices.
Its registered office is at C/o Ernst and Young LLP, 1 More London
Place, London, SE1 2AF.
The joint administrators can be reached at:
Simon Edel
Richard Barker
Dan Mindel
Ernst & Young LLP
1 More London Place
London, SE1 2AF
Further details contact:
The Joint Administrators
Email: sedel@parthenon.ey.com
rbarker@parthenon.ey.com
dmindel@parthenon.ey.com
Alternative contact: Donna McNeill
*********
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