250909.mbx

250909.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 Tuesday, September 9, 2025, Vol. 26, No. 180 Headlines I R E L A N D AVOCA CLO XXIX: S&P Assigns Prelim B- (sf) Rating to Cl. F-R Notes ROCKFORD TOWER 2025-2: S&P Assigns B- (sf) Rating to Cl. F Notes SIGNAL HARMONIC I: S&P Assigns B- (sf) Rating to Class F-R Notes TIKEHAU CLO IV: S&P Assigns Prelim B- (sf) Rating to Cl. F-R Notes L U X E M B O U R G BEFESA S.A.: S&P Affirms 'BB' Long-Term ICR, Alters Outlook to Pos. N E T H E R L A N D S MILA 2025-1: Moody's Assigns (P)Ba2 Rating to Class F Notes N O R W A Y AUTOSTORE HOLDINGS: S&P Ups LT Ratings to 'BB', Outlook Stable U N I T E D K I N G D O M ANANAS ANAM: Leonard Curtis Named as Joint Administrators AWAZE LTD: S&P Withdraws 'B-' Long-Term Issuer Credit Rating BRACCAN 2024-1: S&P Affirms 'BB (sf)' Rating on Cl. X-Dfrd Notes GRIFFITHS AND JOHNSON: Opus Restructuring Named as Administrators HULER LIMITED: FRP Advisory Named as Joint Administrators MAIDENCROSS LIMITED: FRP Advisory Named as Joint Administrators WALTHAM FOREST: Quantuma Advisory Named as Administrators - - - - - ============= I R E L A N D ============= AVOCA CLO XXIX: S&P Assigns Prelim B- (sf) Rating to Cl. F-R Notes ------------------------------------------------------------------ S&P Global Ratings assigned its preliminary ratings to Avoca CLO XXIX DAC's class X, A-R, B-R, C-R, D-R, E-R, and F-R notes. At closing, the issuer will also issue unrated subordinated notes. This transaction is a reset of the already existing transaction. At closing, the existing classes of notes will be fully redeemed with the proceeds from the issuance of the replacement notes on the reset date. The preliminary ratings assigned to Avoca CLO XXIX's reset 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 its counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,830.48 Default rate dispersion 492.37 Weighted-average life (years) 4.31 Weighted-average life (years) extended to cover the length of the reinvestment period 4.50 Obligor diversity measure 174.64 Industry diversity measure 20.49 Regional diversity measure 1.24 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 2.30 'AAA' weighted-average recovery (%) 36.80 Actual weighted-average spread (%) 3.70 Actual weighted-average coupon (%) 4.51 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. S&P said, "At closing, we expect the portfolio to be well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and bonds. Therefore, we have conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we modeled a target par of EUR400 million. We also modeled the actual weighted-average spread (3.70%), the actual weighted-average coupon (4.51%), and the 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 March 16, 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 preliminary ratings. "At closing, we expect the transaction's documented counterparty replacement and remedy mechanisms to adequately mitigate its exposure to counterparty risk under our counterparty criteria. "We expect the transaction's legal structure and framework to be bankruptcy remote, in line with our legal criteria. "The CLO will be managed by KKR Credit Advisors (Ireland) Unlimited Co., and the maximum potential rating on the liabilities is 'AAA' under our operational risk criteria. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe the preliminary ratings are commensurate with the available credit enhancement for the class X 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 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 preliminary ratings on the notes. "Given our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe our preliminary 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-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 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 XXIX 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 will be managed by KKR Credit Advisors (Ireland) Unlimited Co. Ratings Prelim. Prelim. Amount Credit Class rating* (mil. EUR) Interest rate§ enhancement (%) X AAA (sf) 1.50 Three/six-month EURIBOR N/A plus 0.83% A-R AAA (sf) 248.00 Three/six-month EURIBOR 38.00 plus 1.28% B-R AA (sf) 42.00 Three/six-month EURIBOR plus 1.85% C-R A (sf) 25.00 Three/six-month EURIBOR 21.250 plus 2.15% D-R BBB- (sf) 29.00 Three/six-month EURIBOR 14.00 plus 2.90% E-R BB- (sf) 18.00 Three/six-month EURIBOR 9.50 plus 5.30% F-R B- (sf) 12.00 Three/six-month EURIBOR 6.50 plus 8.25% Sub notes NR 30.85 N/A N/A *The preliminary ratings assigned to the class X, 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. ROCKFORD TOWER 2025-2: S&P Assigns B- (sf) Rating to Cl. F Notes ---------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Rockford Tower Europe CLO 2025-2 DAC's class A, B, C, D, E, and F notes. At closing, the issuer also issued subordinated notes. The ratings reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,792.07 Default rate dispersion 520.48 Weighted-average life (years) 4.81 Obligor diversity measure 139.62 Industry diversity measure 24.22 Regional diversity measure 1.20 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 1.30 Actual 'AAA' weighted-average recovery (%) 37.62 Actual weighted-average spread (%) 3.82 Portfolio weighted-average rating derived from S&P's CDO evaluator B 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 5.1 years after closing. The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, S&P has conducted our credit and cash flow analysis by applying its criteria for corporate cash flow CDOs. S&P said, "In our cash flow analysis, we used the EUR400 million target par amount, and the portfolio's target weighted-average spread (3.82%), covenanted weighted-average coupon (4.50%), and the target weighted-average recovery rates. 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 Oct. 15, 2030, the collateral manager may substitute assets in the portfolio for so long as S&P's 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, as long as the initial ratings are maintained. S&P said, "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 current 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 rating is commensurate with the available credit enhancement for the class A notes. Our credit and cash flow analysis indicates that the available credit enhancement for the class B, C, D, E, and F notes could withstand stresses commensurate with higher ratings than those we have assigned. However, as the CLO will be in its reinvestment phase starting from closing, during which the transaction's credit risk profile could deteriorate, we have capped our ratings assigned to the notes. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe that the assigned ratings are commensurate with the available credit enhancement for all the rated classes of notes. "In addition to our standard analysis, we have also included the sensitivity of the ratings on the class A to E notes based on four hypothetical scenarios. The results are shown in the chart below. "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." Rockford Tower Europe CLO 2025-2 DAC securitizes a portfolio of primarily senior-secured leveraged loans and bonds. The transaction is managed by Rockford Tower Capital Management LLC. 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 assets from being related to certain activities. Accordingly, since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Ratings Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ A AAA (sf) 248.00 38.00 3mE + 1.35% B AA (sf) 46.00 26.50 3mE + 2.00% C A (sf) 22.00 21.00 3mE + 2.40% D BBB- (sf) 29.00 13.75 3mE + 3.35% E BB- (sf) 18.00 9.25 3mE + 5.80% F B- (sf) 11.00 6.50 3mE + 8.52% Sub notes NR 33.60 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 6mE when a frequency switch event occurs. NR--Not rated. N/A--Not applicable. 3mE--Three-month Euro Interbank Offered Rate. SIGNAL HARMONIC I: S&P Assigns B- (sf) Rating to Class F-R Notes ---------------------------------------------------------------- S&P Global Ratings assigned its 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 has EUR36.43 million of outstanding subordinated notes from the original issuance. This transaction is a reset of the already existing transaction, that we did not rate. The existing classes of notes were refinanced with the proceeds from the issuance of the replacement notes on the reset date. The 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 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 2,779.69 Default rate dispersion 540.92 Weighted-average life (years) 4.84 Weighted-average life extended to cover the length of the reinvestment period (years) 5.00 Obligor diversity measure 121.58 Industry diversity measure 22.55 Regional diversity measure 1.16 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 2.60 Target 'AAA' weighted-average recovery (%) 37.93 Target weighted-average spread (%) 3.87 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. The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, S&P has conducted our credit and cash flow analysis by applying its criteria for corporate cash flow CDOs. S&P said, "In our cash flow analysis, we used the EUR500 million target par amount, the target weighted-average spread (3.87%), 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 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. "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 and framework is bankruptcy remote, in line with our legal criteria. "Our credit and cash flow analysis indicates that the available credit enhancement for the class B-R to E-R notes could withstand stresses commensurate with higher rating levels than those we have assigned. However, as the CLO will be in its reinvestment phase starting from closing, during which the transaction's credit risk profile could deteriorate, we have capped our ratings assigned to the notes. "Taking the above factors into account and following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe that the assigned ratings are commensurate with the available credit enhancement for all the rated classes of notes. "In addition to our standard analysis, to provide an indication of how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we have also included the sensitivity of the ratings on the class 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 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 ratings assigned to the class X-R, A-R, and B-R notes address timely interest and ultimate principal payments. The ratings assigned to the class C-R, D-R, E-R, and F-R notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. TIKEHAU CLO IV: S&P Assigns Prelim B- (sf) Rating to Cl. F-R Notes ------------------------------------------------------------------ S&P Global Ratings assigned its preliminary credit ratings to Tikehau CLO IV DAC's class A-R to F-R notes. The issuer has EUR38.30 million of outstanding unrated subordinated notes at closing, and will issue an additional EUR16.70 million of subordinated notes. 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 portfolio's reinvestment period will end approximately five years after closing, while the non-call period will end two years after closing. The preliminary ratings reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which S&P expects to be bankruptcy remote. -- The transaction's counterparty risks, which S&P expects to be in line with its counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,761.21 Default rate dispersion 599.83 Weighted-average life (years) 3.90 Weighted-average life (years) extended to match reinvestment period 5.06 Obligor diversity measure 123.23 Industry diversity measure 18.43 Regional diversity measure 1.25 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 2.53 Target 'AAA' weighted-average recovery (%) 36.81 Actual weighted-average coupon (%) 4.12 Actual weighted-average spread (net of floors; %) 3.85 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. Rating rationale S&P said, "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 EUR400 million target par amount, the covenant weighted-average spread (3.75%) indicated by the collateral manager, and the actual weighted-average coupon (4.12%). We have assumed the weighted-average recovery rates for all rated notes (36.81% at 'AAA'). 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 class B-R to E-R notes could withstand stresses commensurate with higher preliminary ratings than those we have assigned. However, as the CLO is still in its reinvestment phase, during which the transaction's credit risk profile could deteriorate, we have capped the assigned preliminary ratings. The class A-R and F-R notes can withstand stresses commensurate with the assigned preliminary ratings. "We understand that the assets currently held by the CLO equate to approximately 60% of the EUR400 million target par amount. In the absence of other mitigants, and to address a potential liquidity concern on the rated notes on the first payment date, we have applied a ramp-up haircut in our analysis with the rated notes continuing to pass at their preliminary rating levels. "Until the end of the reinvestment period on Oct. 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. "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. "At closing, we expect 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. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe our preliminary ratings are commensurate with the available credit enhancement for the class A-R to F-R 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-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 preliminary '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 Class rating* (mil. EUR) Sub (%) Interest rate§ A-R AAA (sf) 244.00 39.00 Three/six-month EURIBOR plus 1.33% B-R AA (sf) 45.00 27.75 Three/six-month EURIBOR plus 1.95% C-R A (sf) 25.00 21.50 Three/six-month EURIBOR plus 2.40% D-R BBB- (sf) 30.00 14.00 Three/six-month EURIBOR plus 3.25% E-R BB- (sf) 18.00 9.50 Three/six-month EURIBOR plus 5.45% F-R B- (sf) 12.00 6.50 Three/six-month EURIBOR plus 8.34% Additional sub. Notes NR 16.70 N/A N/A Sub. Notes NR 38.30 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 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. =================== L U X E M B O U R G =================== BEFESA S.A.: S&P Affirms 'BB' Long-Term ICR, Alters Outlook to Pos. ------------------------------------------------------------------- S&P Global Ratings revised its outlook on Befesa S.A. to positive from stable and affirmed its 'BB' long-term issuer credit rating and 'BB' issue rating on the company and its senior secured EUR100 million revolving credit facility (RCF) and EUR650 million senior secured term loan B (TLB). The positive outlook reflects S&P's expectation that resilient operating performance in 2025 and 2026 will drive S&P Global Ratings-adjusted leverage below 2.5x by year-end 2026, while generating comfortably positive discretionary cash flow (DCF) of over EUR45 million. EBITDA is expected to return to the historical level after the recent slump. S&P projects S&P Global Ratings-adjusted EBITDA will grow to EUR225 million in 2025, after the EUR193 million in 2024 and EUR164 million in 2023 that led us to downgrade Befesa in May 2024. The main drivers for the recovery in EBITDA are: -- Healthy zinc prices with zinc hedged at an average price of EUR2,640 per ton (/ton) for about 65% of the volumes. -- Contribution from the ramp-up of the two new Palmerton kilns. -- Cost savings at the Rutherford zinc refining plant. On the other hand, the EBITDA could have been higher, given: -- A decline in secondary aluminum alloy EBITDA, due to a combination in intense competition for scrap with Southeast Asian players and weak demand from European auto manufacturers. -- The poor results of the Chinese operations because the transition to electric arc furnace (EAF) technology is taking much longer than expected. S&P said, "The solid performance in 2025 and 2026 will support lower leverage and positive discretionary cash flow. Driven by EBITDA growth and positive cash flow generation, we anticipate a reduction in S&P Global Ratings-adjusted leverage to 2.9x by year-end 2025 and 2.6x by year-end 2026. In addition, we expect that dividend payments of EUR26 million in 2025 and EUR38 million in 2026 will not prevent DCF from staying comfortably positive at EUR49 million in 2025 and EUR46 million in 2026. In our base case we assume that growth for Befesa will mainly be driven by the U.S. and Europe, where the steel producer continues to convert traditional blast furnaces and basic oxygen furnaces with EAFs, which will support demand for Befesa's steel dust recycling services. We do not expect any improvement in market demand in China and do not assume any additional capex in the country during our forecast horizon through 2026. We understand that Befesa aims to focus in coming quarters on the ramp-up of its Palmerton and Bernburg projects and that it intends to be very prudent in future growth capex, given the low growth prospects for the steel industry. As such, we expect capex to remain below EUR100 million per year in future years, which should support further reduction in leverage. We therefore expect free operating cash flow will increase above EUR70 million in 2025 and 2026. "The financial policy could support a higher rating. Befesa aims to operate with company-reported leverage between 2.0x and 2.5x, which corresponds to approximatively 2.5x-3.0x S&P Global Ratings-adjusted leverage and would be consistent with our a 'BB+' rating. However, the company's decision not to pull its financial lever in the last downcycle makes us less confident in its commitment to flex its dividends or capex in the next downcycle. Hence, a future decision would take into account the company's track record of maintaining some headroom under its financial policy. "The positive outlook reflects our expectation that resilient operating performance in 2025 and 2026 will drive S&P Global Ratings-adjusted leverage below 2.5x by year-end 2026, while generating comfortably positive DCF of over EUR45 million. "We could revise our outlook to stable if it appears likely that Befesa's credit metrics will not improve as we expect, including adjusted leverage remaining above 3x and DCF turning negative." Although unlikely within the next 12 months, S&P could also lower the rating if: -- S&P Global Ratings-adjusted debt to EBITDA jumps above 4x combined with weaker-than-expected negative DCF; or -- Although less likely, if Befesa deviates from its current financial policy, for example, by significantly increasing its capex without reducing dividends, or by entering a debt-funded acquisition with low profit contribution. A higher rating would be supported by the following: -- Achieving sustainable EBITDA of more than EUR225 million over the cycle. -- Track record of flexing capex and dividends so that actual results support neutral DCF. -- Adjusted debt to EBITDA of up to 3x at the bottom of the cycle. ===================== N E T H E R L A N D S ===================== MILA 2025-1: Moody's Assigns (P)Ba2 Rating to Class F Notes ----------------------------------------------------------- Moody's Ratings has assigned the following provisional ratings to Notes to be issued by Mila 2025-1 B.V.: EUR[ ]M Class A asset-backed Notes 2025 due 2042, Assigned (P)Aaa (sf) EUR[ ]M Class B asset-backed Notes 2025 due 2042, Assigned (P)Aa2 (sf) EUR[ ]M Class C asset-backed Notes 2025 due 2042, Assigned (P)A1 (sf) EUR[ ]M Class D asset-backed Notes 2025 due 2042, Assigned (P)Baa2 (sf) EUR[ ]M Class E asset-backed Notes 2025 due 2042, Assigned (P)Ba1 (sf) EUR[ ]M Class F asset-backed Notes 2025 due 2042, Assigned (P)Ba2 (sf) Moody's have not assigned a rating to the EUR[ ]M Class X Notes 2025 due 2042, which are also to be issued at closing of the transaction. RATINGS RATIONALE The transaction is a 12-month revolving cash securitisation of unsecured consumer loans extended by Lender & Spender B.V. (not rated) to obligors in the Netherlands. The originator will also act as the servicer of the portfolio during the life of the transaction. As of August 24, 2025, the provisional portfolio of EUR240.8M shows 100% performing contracts with a weighted average seasoning of around 5 months. The portfolio consists of fixed rate amortizing loans (100%) which have equal instalments during the life of the loan. According to Moody's Ratings, the transaction benefits from credit strengths such as: (i) a granular portfolio, (ii) a simple product mix with a portfolio of amortizing fixed rate loan products, and (iii) a significant level of excess spread at closing. Furthermore, the Notes benefit from a cash reserve funded at closing at 1.5% of the initial Notes balance of the Class A to F Notes. The reserve will mainly provide liquidity to pay senior expenses, hedging costs and the coupon on the Class A to F Notes. However, Moody's notes that the transaction features some credit weaknesses such as: (i) a small and unrated originator, (ii) a revolving period of 12 months, (iii) a pro rata principal repayments of the Class A to F Notes, and (iv) a risk of potential servicing disruption mitigated by the presence of Trustmoore SFCM Netherlands B.V. as back-up servicer facilitator. Moody's analysis focused, among other factors, on: (1) an evaluation of the underlying portfolio of financing agreements, (2) the macroeconomic environment, (3) historical performance information, (4) the credit enhancement provided by subordination, cash reserve and excess spread, (5) the liquidity support available in the transaction through the reserve fund, and (6) the legal and structural integrity of the transaction. MAIN MODEL ASSUMPTIONS Moody's determined the portfolio lifetime expected defaults of 2.5%, a recovery rate of 15.0% and Aaa portfolio credit enhancement ("PCE") of 16.0% related to the receivables. The expected defaults and recoveries capture Moody's expectations of performance considering the current economic outlook, while the PCE captures the loss Moody's expects the portfolio to suffer in the event of a severe recession scenario. Expected defaults, recoveries and PCE are parameters used by us to calibrate Moody's lognormal portfolio loss distribution curve and to associate a probability with each potential future loss scenario in the ABSROM cash flow model to rate Consumer ABS. Portfolio expected defaults of 2.5% are better than the EMEA Consumer ABS average and are based on Moody's assessments of the lifetime expectation for the pool taking into account: (i) historical performance of the loan book of the originator, (ii) benchmark transactions, and (iii) other qualitative considerations, such as the revolving period. Portfolio expected recoveries of 15.0% are in line with the EMEA Consumer ABS average and are based on Moody's assessments of the lifetime expectation for the pool taking into account: (i) historical performance of the loan book of the originator, (ii) benchmark transactions, and (iii) other qualitative considerations. PCE of 16.0% is in line with the EMEA Consumer ABS average and is based on: (i) Moody's assessments of the borrower credit, (ii) the replenishment period of the transaction, and (iii) benchmark transactions. The PCE level of 16.0% results in an implied coefficient of variation ("CoV") of 58.1%. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was "Moody's Approach to Rating Consumer Loan-Backed ABS" published in July 2024. Factors that would lead to an upgrade or downgrade of the ratings: Factors that may cause an upgrade of the ratings include significantly better than expected performance of the pool together with an increase in credit enhancement of the Notes. Factors that may cause a downgrade of the ratings include a decline in the overall performance of the portfolio and a meaningful deterioration of the credit profile of the originator and servicer Lender & Spender B.V. =========== N O R W A Y =========== AUTOSTORE HOLDINGS: S&P Ups LT Ratings to 'BB', Outlook Stable -------------------------------------------------------------- S&P Global Ratings raised to 'BB' from 'BB-' its long-term ratings on AutoStore Holdings Ltd. (AutoStore), its subsidiary Automate Intermediate Holdings II S.a.r.l., and AutoStore's $450 million term loan B (TLB). The recovery rating on the TLB is unchanged at '3', reflecting S&P's expectation of meaningful recovery prosects of about 65%. It will withdraw the issuance rating once the existing debt has been repaid. The stable outlook reflects S&P's expectation that AutoStore's operating performance will recover over the next 12 months resulting in an FFO-to-debt ratio of above 40% and healthy cash generation with a free operating cash flow (FOCF)-to-debt ratio of more than 25% in 2026. AutoStore, a provider of warehouse automation technology, intends to issue a five-year $150 million term loan. Proceeds from the new facilities, combined with cash on balance sheet, will be used to fully repay its outstanding $450 million TLB maturing in July 2026. This reduces S&P Global Ratings-adjusted debt by about EUR250 million. However, credit metrics will only slightly change with funds from operations (FFO) to debt remaining flat in 2025 at 43%, similar to 2024, reflecting the weaker operating performance in 2025 due to the weak macroeconomic environment and delays in investment decision by its customers. AutoStore will partially refinance its upcoming maturities while using cash on balance sheet to repay the remainder, leading to S&P Global Ratings-adjusted debt significantly reducing. The company plans to raise a five-year $150 million term loan and a new $350 million revolving credit facility (RCF). Proceeds from the new debt, combined with about $300 million cash on balance sheet, will be used to repay the existing senior secured TLB facilities of EUR253 million and $167 million (both due July 2026) in full. Because we do not give the company the benefit of the cash on balance sheet, the reduction in the outstanding financial debt will substantially reduce S&P Global Ratings-adjusted debt to about $300 million at end-2025, compared with $550 million in 2024. Furthermore, the final payments of EUR65 million to Ocado Group PLC to settle the litigation case in first-half 2025 will contribute to the reduction. S&P understands that the new $350 million RCF will be partly used by about $75 million after the refinancing to ensure sufficient cash within the group, and the use of the RCF will likely reduce over time. S&P said, "While we expect operating performance to contract in 2025, we also anticipate a sound recovery in 2026. In first-half 2025, AutoStore reported a revenue decline of approximately 25% compared to the same period last year. This was mainly driven by ongoing weak macroeconomic environment and uncertainties around the introduction of the U.S. administration's import tariffs--which weighed on customer investment sentiment. Although we think that second quarter revenue significantly improved compared with the first quarter, we expect that revenue development in second-half 2025 will remain subdued, as customers remain cautious on investment decisions. That said, we forecast a revenue decline of 15%-20% to $480 million-$510 million in 2025 from $601 million a year earlier. Thereafter, we expect a more supportive macroeconomic environment and improved investment sentiment of its clients to support an 11%-15% growth to $530 million-$590 million in 2026. We understand that customer interest in the company's product offering remains high and that the company maintains its dominating market position for high density storage solutions. The growing order back-log that reached $530 million at the end of the second quarter of 2025 supports the expected recovery in operating performance. Nevertheless, lower volumes and some restructuring charges booked in first-half 2025 will have a 600-basis point effect on the adjusted EBITDA margin, declining to about 37% in 2025 from 43% in 2024, and the adjusted EBITDA will decline to about $185 million, compared with $258 million in 2024. For 2026, we forecast a recovery of S&P Global Ratings-adjusted EBITDA to about $220 million (about 39%), supported by higher volumes allowing improved fixed cost absorption. "Free cash flow generation remains sound despite weaker operating performance. We expect that AutoStore will generate FOCF of about $50 million in 2025, compared to $61 million in 2024. The decline will primarily stem from lower EBITDA generation, almost fully compensated by neutral working capital requirements (an outflow of $23 million in 2024) and reduced litigation payments to the Ocado Group of $65 million in 2025 compared to more than $100 million in 2024. We understand that the dispute with the online retailer Ocado Group is now settled with the last payments of $64.8 million in first-half 2025. We expect FOCF will increase to more than $100 million in 2026, on the back of improving operating performance, lower interest payments, and the absence of further litigation-related payments. "We expect that AutoStore's financial policy will be supportive of the current rating level. The company has a medium-term leverage policy of not exceeding 2.0x net debt to company adjusted EBITDA, which should correspond well to the threshold set of an 40% FFO to debt ratio on S&P global adjusted basis. With the final payment to settle the Ocado litigation and the use of cash for the refinancing, the difference in adjustments has materially reduced. We further expect that potential bolt-on acquisitions or dividends will at least be partially funded from cash on balance sheet, which has no impact on our ratio calculation as we do not net any cash on balance sheet. Additionally, we expect the company's use of its leverage headroom will be such that it remains commensurate with the 'BB' rating. "In our view, there are economic uncertainties due to the U.S. administration and the tariff implementation. AutoStore generates about 22% of its revenue in the U.S., with all products manufactured outside the U.S. Core production is based in Poland, complemented by the recently established assembly line in Thailand. The assembly line in Thailand currently runs at low capacity but offers a lower-cost manufacturing base and provides strategic flexibility to shift production if tariff dynamics make it advantageous. Furthermore, AutoStore products are distributed through a partner network, which technically limits their exposure to tariff-related risks, as the responsibility for import duties falls usually on the distributor. However, we do not expect that the full burden will be absorbed by distribution partners alone. Given competitive dynamics and the need to maintain market positioning, it is likely that the company will share a portion of the tariff-related costs, either through pricing adjustments, or other commercial arrangements. However, AutoStore anticipates a moderate direct effect over time. "The stable outlook reflects our expectation that AutoStore will stabilize its topline in the second half of 2025 and post renewed revenue growth in 2026, translating to an S&P Global Ratings-adjusted FFO-to-debt ratio above 40% and FOCF-to-debt ratio of more than 25%. "We could lower the rating if AutoStore's topline continues to decline meaningfully in 2026 or if it significantly underperforms the market resulting in declining market share and lead to credit metrics deteriorating such that its S&P Global Ratings-adjusted FFO-to-debt ratio declines below 40% or its FOCF-to-debt ratio does not comfortably reach more than 20%. "Although unlikely in the near term, we could consider an upgrade if the company successfully executes its growth strategy resulting in significant increase of its scale and diversification, leading to a reduced volatility in EBITDA generation while reaching an adjusted EBITDA margin above 40%. An upgrade would likely also require a more conservative financial policy translating to an S&P Global Ratings-adjusted FFO-to-debt ratio of above 60% and FOCF to debt above 40%." =========================== U N I T E D K I N G D O M =========================== ANANAS ANAM: Leonard Curtis Named as Joint Administrators --------------------------------------------------------- Ananas Anam UK Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts of England and Wales Court Number: CR-2025-005138, and Alex Cadwallader and Neil Bennett of Leonard Curtis, were appointed as joint administrators on Aug. 19, 2025. Ananas Anam is a textile manufacturer. Its registered office and principal trading address is at55 Baker Street, London, W1U 7EU. The joint administrators can be reached at: Neil Bennett Alex Cadwallader Leonard Curtis 5th Floor, Grove House 248a Marylebone Road London, NW1 6BB Further details contact: The Joint Administrators Tel No: 020 7535 7000 Email: recovery@leonardcurtis.co.uk Alternative contact: Toby Gibbons AWAZE LTD: S&P Withdraws 'B-' Long-Term Issuer Credit Rating ------------------------------------------------------------ S&P Global Ratings has withdrawn its 'B-' long-term issuer credit rating on Awaze Ltd. and its 'B-' issue rating on the senior secured debt, issued by Compass Bidco B.V. The withdrawal is at the issuer's request. Awaze operates in the European vacation rental segment of the broader lodging and leisure industry. At the time of the withdrawal, the outlook on S&P's long-term issuer credit rating was negative. BRACCAN 2024-1: S&P Affirms 'BB (sf)' Rating on Cl. X-Dfrd Notes ---------------------------------------------------------------- S&P Global Ratings affirmed its 'AAA (sf)', 'AA (sf)', 'A (sf)', 'BBB+ (sf)', and 'BB (sf)' credit ratings on Braccan 2024-1 PLC's the class A, B, C-Dfrd, D-Dfrd, and X-Dfrd notes, respectively. S&P has resolved the UCO placements of all classes of notes. The rating actions reflect the transaction's stable credit and cash flow performance. Since closing, S&P has observed a modest increase in its weighted-average foreclosure frequency (WAFF) assumptions across all rating categories. This reflects increased arrears, which have increased to 1.88% from 1.00% at closing. S&P's weighted-average loss severity (WALS) assumptions have declined materially, supported by favorable house price index trends and strengthened real estate valuation data. Constant payment rates have remained stable since closing as most of the portfolio is expected to revert from fixed to floating rates over the next four years, with about 40% due to reset in 2026. Credit analysis results Rating level WAFF (%) WALS (%) Credit coverage (%) AAA 22.50 38.08 8.57 AA 15.29 31.71 4.85 A 11.63 21.22 2.47 BBB 7.96 15.26 1.22 BB 4.29 11.16 0.48 B 3.38 7.61 0.26 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. S&P said, "Our credit and cash flow results indicate that the available credit enhancement for the class A and B notes remains commensurate with the assigned ratings. We therefore affirmed our 'AAA (sf)' and 'AA (sf)' ratings on the class A and B notes, respectively. "We also affirmed our 'A (sf)' rating on the class C-Dfrd notes, our 'BBB+ (sf)' rating on the class D-Dfrd notes, and our 'BB (sf)' rating on the class X-Dfrd notes. These classes were able to pass cash flow stresses at higher rating levels than those assigned. Our affirmations also considered the low excess spread in the transaction, the sensitivity to higher prepayment scenarios, and the fact that the transaction only closed last year. "There are no counterparty constraints on the ratings in this transaction as it remains compliant with our current counterparty criteria." Braccan 2024-1 PLC is backed primarily by a pool of first lien owner-occupied and buy-to-let mortgage loans secured on properties in England, Wales, and Scotland. GRIFFITHS AND JOHNSON: Opus Restructuring Named as Administrators ----------------------------------------------------------------- Griffiths and Johnson 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-2025-000089, and Gary Norton Lee and Frank Ofonagoro of Opus Restructuring LLP, were appointed as administrators on Aug. 19, 2025. Griffiths and Johnson is a manufacturer of fabricated metal products. Its registered office and principal trading address is at Unit 1 City Course Trading Estate, Whitworth Street, Manchester, M11 2DW. The administrators can be reached at: Gary Norton Lee Frank Ofonagoro Opus Restructuring LLP 2nd Floor, 3 Hardman Square Spinningfields, Manchester M3 3EB For further Details, please contact: Dale Taylor Tel No: 0161 383 8410 Email: dale.taylor@opusllp.com HULER LIMITED: FRP Advisory Named as Joint Administrators --------------------------------------------------------- Huler Limited was placed into administration proceedings in the High Court of Justice Business and Property Courts in Manchester, Insolvency and Companies List Court Number: CR-2025-001118, and Simon Farr and Anthony Collier of FRP Advisory Trading Limited, were appointed as joint administrators on Aug. 11, 2025. Huler Limited specialized in business and domestic software development. Its registered office is at Three Counties House, Festival Way, Stoke-On-Trent, ST1 5PX in the process of being changed to C/O FRP Advisory Trading Limited, 4th Floor Abbey House, 32 Booth Street, Manchester, M2 4AB. Its principal trading address is at Three Counties House, Festival Way, Stoke On Trent, ST1 5PX. The joint administrators can be reached at: Simon Farr Anthony Collier FRP Advisory Trading Limited 4th Floor, Abbey House, Booth Street Manchester, M2 4AB Further details contact: The Joint Administrators Tel: 0161 833 3344 Alternative contact: Ben Smith E-mail: cp.manchester@frpadvisory.com MAIDENCROSS LIMITED: FRP Advisory Named as Joint Administrators --------------------------------------------------------------- Maidencross Limited was placed into administration proceedings in the High Court of Justice Court Number: CR-2025-005610, and Paul Atkinson and Nedim Ailyan of FRP Advisory Trading Limited, were appointed as joint administrators on Aug. 20, 2025. Maidencross Limited offered business support services. Its registered office is at 25 Greenwich Church Street, London, SE10 9BJ to be changed to 4th Floor, Centre Block, Central Court, Knoll Rise, Orpington, BR6 0JA. Its principal trading address is at Stone Castle, Stone Castle Drive, Greenhithe, DA9 9XL. The joint administrators can be reached at: Paul Atkinson Nedim Ailyan FRP Advisory Trading Limited 4th Floor, Centre Block Central Court, Knoll Rise Orpington, Kent, BR6 0JA Further Details Contact: The Joint Administrators Tel: 020 8302 4344 Alternative contact: Chloe Fortucci Email: cp.orpington@frpadvisory.com WALTHAM FOREST: Quantuma Advisory Named as Administrators --------------------------------------------------------- Waltham Forest Council Employee Credit Union Limited was placed into administration proceedings in the Business and Property Courts of England and Wales Court Number: CR-2025-005699, and Dina Devalia and Terri Mulgrew of Quantuma Advisory Limited, were appointed as administrators on Aug. 19, 2025. Waltham Forest Council is a credit union. Its registered office is at c/o Quantuma Advisory Limited, 7th Floor, 20 St. Andrew Street, London, EC4A 3AG. Its principal trading address was formerly at Room 202, 313 Billet Road, London, E17 5PX. The administrators can be reached at: Dina Devalia Terri Mulgrew Quantuma Advisory Limited 7th Floor, 20 St. Andrew Street London, EC4A 3AG For further details, please contact: Darren Habgood Tel No: 020 3856 6720 Email: darren.habgood@quantuma.com ********* 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. 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