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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
Wednesday, February 4, 2026, Vol. 27, No. 25
Headlines
B E L G I U M
TELENET GROUP: S&P Affirms 'BB-' ICR Following Refinancing
B O S N I A A N D H E R Z E G O V I N A
BOSNIA AND HERZEGOVINA: Moody's Affirms 'B3' LT Issuer Ratings
G E R M A N Y
CTEC III GMBH: Moody's Rates New Amended Senior Secured Debt 'B1'
I R E L A N D
CVC CORDATUS XIX: Moody's Affirms B3 Rating on EUR11.2MM F Notes
I T A L Y
MARCOLIN SPA: S&P Withdraws 'B' LongTerm Issuer Credit Rating
L U X E M B O U R G
FORESEA HOLDING: Moody's Affirms B2 CFR & Rates New $150MM Notes B2
FORESEA HOLDING: S&P Affirms 'B' ICR & Alters Outlook to Stable
N E T H E R L A N D S
ACR I BV: Moody's Withdraws 'Ca' Corporate Family Rating
U N I T E D K I N G D O M
CLIFFEDGE 10: Quantuma Advisory Named as Administrators
DENTOGENICS LIMITED: Xeinadin Corporate Named as Administrators
FAI REALISATIONS: MHA Advisory Named as Administrators
INVENTIVE SERVICE: FTI Consulting Named as Administrators
NAVIGATE PEOPLE: Marshall Peters Named as Administrators
PEACH ALMANACK: FTI Consulting Named as Administrators
PEACH MELBA: FTI Consulting Named as Administrators
PEACH ON THE WATER: FTI Consulting Named as Administrators
RUBIX GROUP: Moody's Affirms 'B3' CFR, Outlook Remains Stable
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B E L G I U M
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TELENET GROUP: S&P Affirms 'BB-' ICR Following Refinancing
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S&P Global Ratings affirmed our long-term issuer credit rating
(ICR) on Belgium-based telecom operator Telenet Group Holding N.V.
(Telenet) at 'BB-'.
While Telenet will continue to own the majority and fully
consolidate Wyre, Wyre will move out of the restricted group upon
completion of the proposed refinancing. S&P said, "Consequently, we
estimate Telenet's secured lenders will have slightly reduced
recovery prospects of 55% from 60%. Nevertheless, we assigned a
'BB-' issue level rating and '3' recovery rating to Telenet's
proposed senior secured debt facilities."
The stable outlook reflects S&P's expectation that Telenet will
maintain adjusted leverage of 4.5x-5.0x, supported by stable
earnings and a supportive financial policy.
The proposed refinancing transaction is leverage-neutral but will
reduce Telenet's consolidated cash interest. Telenet currently
maintains a controlling 66.8% stake in Wyre and fully consolidates
its financials. S&P said, "We expect Wyre to use the initial EUR2.3
billion in new debt to repay intercompany loans from Telenet along
with a small dividend to Telenet and its shareholders, following
which Wyre will be designated as an unrestricted subsidiary of the
Telenet group. The proceeds will be used by Telenet, alongside a
separate EUR2 billion in new senior secured instruments, to
refinance and repay EUR4.3 billion of existing debt maturing in
2028 and 2029. Despite Wyre moving out of the restricted group it
will remain fully consolidated and, as this is a leverage neutral
transaction, we forecast S&P Global Ratings-adjusted leverage of
about 4.9x following the transaction, which remains within our
existing thresholds for the meeting. We also expect cash interest
to reduce by about EUR70 million due to favorable pricing of Wyre's
debt. However, we forecast continued cash burn in 2026 of about
EUR50 million in 2026 and 2027 as Wyre continues to invest in
fiber-to-the-home (FTTH) upgrades."
S&P said, "We view any potential sale of Wyre that leads to loss of
consolidation and control as negative for the business risk
profile. Wyre is under a strategic review, and in the
short-to-medium term Telenet might sell significant stake in Wyre.
Since there is no definitive agreement for sale, we do not
currently account for this potential future sale in our base case.
In a scenario where a sale of the stakes results in a loss of
consolidation and control of Wyre, such a sale would result in
Telenet having to pay fixed-line access fees to Wyre, which we
forecast will reduce S&P Global Ratings-adjusted EBITDA margins
from 45% in 2026 to about 27% for the serviceco stand-alone. The
significant reduction in margins and scale, alongside the loss of
control over critical assets, would likely result in us revising
down our business risk profile assessment from satisfactory to
fair. That said, Telenet will continue to benefit from a solid
market position in the fixed and TV segment, particularly in
Brussels and Flanders, a highly converged subscriber base, and
operating in a rational Belgium telecom market with favorable
average revenue per user levels.
"In such a scenario, we would expect Telenet ServiceCo (the
ServiceCo) to maintain stable leverage and significantly improve
its free operating cash flow (FOCF) generation compared with
consolidated figures. We understand that under a scenario of the
sale of Wyre, Telenet will aim to repay some of debt at the
ServiceCo from the proceeds of the sale of Wyre and will aim to
revise down company adjusted leverage to about 4.5x following the
sale. This translates to approximately 5.0x on an S&P Global
Ratings-adjusted basis as our adjustments add about 0.5x to
leverage. Key adjustments include leases, and amortization of
broadcasting rights. Following the potential sale, we would expect
the ServiceCo to maintain S&P Global Ratings-adjusted leverage of
4.0x-5.0x. This aligns well with company's financial policy for the
ServiceCo of maintaining company adjusted leverage of 3.5x-4.5x.
Furthermore, following the potential sale, we would expect the
ServiceCo to generate robust FOCF such that FOCF to debt is between
5%-10% which we would view as consistent with the current 'bb-'
stand-alone credit profile (SACP) rating.
"We continue to view Telenet as core to Liberty Global, which
supports our 'BB-' long-term ICR on Telenet. Liberty Global has
been a Telenet shareholder since 2007. Telenet contributes
significantly to Liberty Global's total revenue, accounting for
almost 25%, including 50% of Virgin Media O2's revenue. Telenet's
strategy aligns with Liberty Global's long-term goal of
establishing leading fixed and mobile converged national telecom
operators. We think Liberty Global would provide extraordinary
financial support to Telenet, if required. We align our long-term
ICR on Telenet with our 'BB-' long-term ICR on Liberty Global. If
we revise down our SACP on Telenet to 'b+', this will not lead to a
lower ICR as long as our rating on Liberty Global remains 'BB-' and
our view of Telenet's strategic importance to Liberty Global does
not change.
"The stable outlook indicates that we expect Telenet to remain a
core group entity of Liberty Global. We forecast broadly stable
adjusted EBITDA, since growth in the business-to-business (B2B)
segment will be offset by a decline in mobile services. That said,
we expect adjusted debt to EBITDA to remain at about 5.0x over the
next few years.
"We could lower the rating on Telenet if we downgraded Liberty
Global.
"We could revise down our SACP on Telenet if it adopted a more
aggressive financial policy, leading to adjusted debt to EBITDA of
5.0x or more on a sustained basis. This could also stem from more
fierce competition, causing higher customer loss, or price pressure
with unchanged shareholder remuneration.
"Our rating on Telenet is capped at the rating on its parent,
Liberty Global. We could upgrade Telenet if we raised the rating on
Liberty Global. Although unlikely, we could revise up the SACP on
Telenet if management tightened its financial policy such that it
targets adjusted debt to EBITDA below 4.0x and FOCF to
debt--excluding vendor financing--sustainably above 10%."
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B O S N I A A N D H E R Z E G O V I N A
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BOSNIA AND HERZEGOVINA: Moody's Affirms 'B3' LT Issuer Ratings
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Moody's Ratings has affirmed the Government of Bosnia and
Herzegovina's (BiH) B3 domestic- and foreign-currency long-term
issuer ratings. The outlook remains stable.
The affirmation of the B3 ratings reflects Moody's views that
limited political co-operation within BiH to advance key
legislation and reforms will continue to hinder policy
effectiveness, even as political tensions have abated from very
high levels. Fiscal performance will deteriorate somewhat given a
rise in social spending commitments, although the relatively low
general government debt burden will continue to support BiH's
credit profile. Furthermore, BiH's moderate economic growth will
support a relatively high wealth buffer, although structural
economic constraints, including high emigration, dampen BiH's
economic potential.
The stable outlook reflects Moody's views that high political risks
constrain BiH's B3 rating in the absence of a sustained improvement
in political co-operation. Moody's expects rising refinancing
challenges within the BiH entities will add to fiscal risks,
although the safeguards provided by the centralised administration
of state-level debt repayments will contain liquidity risks for
BiH, supporting the stable outlook. Finally, the stable outlook
reflects Moody's views that economic growth will remain broadly
resilient to political tensions, although the gradual
implementation of the European Union's (EU, Aaa stable) new carbon
border tax will weigh on medium-term competitiveness.
BiH's local- and foreign-currency country ceilings remain unchanged
at B1 and B3, respectively. The two-notch gap between the
local-currency ceiling and the sovereign rating reflects the
elevated risks from domestic politics, low predictability of the
government and institutions, moderate external imbalances and the
government's moderate footprint in the economy. The two-notch gap
between the foreign-currency ceiling and the local-currency ceiling
balances limited capital account openness and weak policy
effectiveness against contained external indebtedness and the
presence of a credible currency board arrangement.
RATINGS RATIONALE
RATIONALE FOR THE AFFIRMATION OF THE B3 RATINGS
The rating affirmation reflects Moody's views that BiH's credit
profile will remain constrained by a lack of political consensus
and limited co-operation between the authorities, which continues
to weigh on policy effectiveness and hinder material reform
progress. Moody's considers policy effectiveness to be a Governance
consideration under Moody's ESG framework.
That said, political tensions have recently de-escalated from very
high levels. The parliamentary assembly of the Republic of Srpska
(RS, B3 stable) entity annulled six separatist laws which had
challenged the authority of state institutions and posed risks to
BiH's sovereign integrity.
Furthermore, BiH finally reached agreement on a reform agenda with
the European Commission which can provide up to EUR976.6 million
(around 3% of GDP) in funding until 2027 under the EU's Reform and
Growth Facility, subject to reform implementation.
However, in Moody's views, there are limited signs that
co-ordination between authorities on key legislation and reforms
will sustainably improve, including persistent political obstacles
to timely state budget approval alongside a continued lack of
progress on the remaining few conditions to formally start EU
accession negotiations. Furthermore, Moody's expects the political
landscape will likely fragment further ahead of the general
elections in October 2026.
The affirmation of the B3 ratings also reflects BiH's low general
government debt burden, which Moody's expects to remain favourable
relative to rating peers even as BiH's fiscal performance
deteriorates. At the same, weak state-owned enterprises and the
potential for new arbitration awards against BiH will pose fiscal
risks.
Moody's expects the general government fiscal deficit to average
around 2.7% of GDP over the next two years, which compares with a
track record of budget surpluses prior to the pandemic. Deficits
would be even higher if new significant social spending commitments
are implemented ahead of the general election without offsetting
budgetary measures. Permanently higher social spending will also
reduce the flexibility of government spending to adjust to shocks.
Moody's expects the general government debt burden to rise just
above 30% of GDP in 2027, although this is still favourable
relative to the B-rated median (around 48% in 2024).
Both the RS and the Federation of Bosnia and Herzegovina (B3
stable) are targeting significant new Eurobond issuances in 2026.
The resulting large amortisations will add to future refinancing
challenges for the entity governments, particularly amid potential
capacity constraints in the domestic market. Moody's expects these
higher refinancing pressures are likely to exacerbate BiH's fiscal
challenges, especially if it results in new arrears or deferred
expenditures.
Finally, the affirmation of the B3 ratings captures BiH's
relatively high wealth buffer compared to rated peers which helps
the economy absorb political shocks without abrupt macro
adjustment. However, BiH faces significant structural constraints
which prevent a faster convergence towards the income of EU peers,
with emigration reducing the labour supply and accelerating
population ageing. Furthermore, BiH's carbon-intensive economy
faces a long-term headwind from the EU's Carbon Border Adjustment
Mechanism which comes into force gradually from 2026.
RATIONALE FOR THE STABLE OUTLOOK
The stable outlook reflects Moody's views that high political risks
continue to constrain the rating at B3. Moody's expects in Moody's
central scenario that the political balance will hold, supported by
the international community's evident commitment to preserve BiH's
sovereign integrity. The political landscape is likely to remain
broadly similar after the forthcoming elections, which in Moody's
views will limit the prospect for renewed co-operation.
The stable outlook also reflects Moody's views that the general
government debt burden will remain relatively low. Rising financing
needs at the entity level will add to fiscal risks, although these
can be managed through new external borrowing, drawing on cash
reserves and a demonstrated ability to adjust budgets. At the same
time, the safeguards provided by the centralised administration of
state-level debt repayments help to mitigate liquidity risks for
BiH.
Finally, Moody's expects economic growth will remain broadly
resilient to political tensions. Prospects for new EU funding to
significantly boost investment will likely be dampened by political
tensions which impede reforms to improve the business environment.
In the absence of significant decarbonization reforms, Moody's also
expects the Carbon Border Adjustment Mechanism will gradually weigh
on exports of electricity and other energy intensive sectors,
posing a risk to BiH's longer-term competitiveness.
ENVIRONMENTAL, SOCIAL, GOVERNANCE (ESG) CONSIDERATIONS
BiH's ESG Credit Impact Score (CIS-4) indicates the credit rating
is lower than it would have been if ESG risk exposures did not
exist. BiH has high exposure to social risks given its very adverse
demographic challenges as well as a moderate exposure to
environmental risks given its high reliance on agriculture. BiH
also has a very weak governance profile, which explains its low
resilience to environmental and social risks despite relatively
high fiscal strength.
GDP per capita (PPP basis, US$): 21,702 (2024) (also known as Per
Capita Income)
Real GDP growth (% change): 2.6% (2024) (also known as GDP Growth)
Inflation Rate (CPI, % change Dec/Dec): 2.2% (2024)
Gen. Gov. Financial Balance/GDP: -1.9% (2024) (also known as Fiscal
Balance)
Current Account Balance/GDP: -3.5% (2024) (also known as External
Balance)
External debt/GDP: 45.7% (2024)
Economic resiliency: b2
Default history: At least one default event (on bonds and/or loans)
has been recorded since 1983.
On January 27, 2026, a rating committee was called to discuss the
rating of the Bosnia and Herzegovina, Government of. The main
points raised during the discussion were: The issuer's economic
fundamentals, including its economic strength, have not materially
changed. The issuer's institutions and governance strength, have
not materially changed. The issuer's fiscal or financial strength,
including its debt profile, has not materially changed. The
issuer's susceptibility to event risks has not materially changed.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Moody's could assign a positive outlook and the rating could
eventually be upgraded if there is a strengthening of the country's
institutional profile in the context of the implementation of
EU-related reforms. The implementation of reforms which improve the
business environment, helping to unlock foreign investment and
raise economic potential, would also be positive for the rating.
This reform progress would most likely result from a more
cooperative post-election political environment or evidence that
the reform agenda is able to progress despite continued deep-rooted
political divisions. While reform progress could provide positive
rating pressure, it is likely that BiH's structural credit
challenges would still remain significant at a higher rating
level.
The rating could be downgraded if there is a significant weakening
in the general government fiscal metrics, leading to the debt
burden rising materially above similarly rated peers. Furthermore,
a significant refinancing challenge at the entity level which has
material fiscal consequences for the state or disrupts
macro-stability would also be negative. Political actions which
result in a material weakening of state institutions or a marked
escalation in political or social tensions jeopardizing the
country's future as a single sovereign nation would also lead to
downward rating pressure.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Sovereigns
published in November 2022.
The weighting of all rating factors is described in the methodology
used in this credit rating action, if applicable.
BiH's "ba3" economic strength score is set three notches below the
initial score of "baa3" to reflect BiH's large and inefficient
public sector that hinders the development of a competitive private
sector as well as continued emigration that weighs on economic
potential. The "a3" fiscal strength score is set three notches
below the initial score of "aa3" to capture downside risks to the
fiscal trajectory posed by high social spending pressures and
financing pressures at the entity level, large share of foreign
currency denominated debt as well as contingent liability risks
from financially weak state-owned enterprises. This leads to a
final scorecard-indicated outcome of B2-Caa1, which is below the
initial scorecard-indicated outcome of Ba3-B2. The rating is within
the final scorecard-indicated outcome.
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G E R M A N Y
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CTEC III GMBH: Moody's Rates New Amended Senior Secured Debt 'B1'
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Moody's Ratings has assigned B1 ratings to the proposed amended and
extended senior secured term loan B and the senior secured
revolving credit facility (RCF) due in 2032 and 2031, respectively
and issued at the level of CTEC III GmbH, a direct subsidiary of
CTEC II GmbH (Ceramtec or the company).
CTEC II GmbH's B2 long-term corporate family rating, the B2-PD
probability of default rating and the Caa1 rating on the backed
senior unsecured notes due in February 2030 issued at the level of
CTEC II GmbH are unaffected. The negative outlook on all entities
is also unaffected.
The proposed transaction seeks to extend the maturity of the
existing backed senior secured first-lien term loans to 2032 from
the current maturity of 2029 as well as amend the margin on the
term loan with potential cash cost savings via a 25-50 basis points
reduction from the current level of E+375 basis points.
Concurrently, the company intends to extend the maturity of the RCF
to 2031 from 2028.
Overall, Moody's view the transaction as leverage neutral, while
also noting its benefits in extending upcoming maturities and
potentially lowering cash interest costs.
RATINGS RATIONALE
The B2 CFR of Ceramtec continues to reflect the company's strong
position in the niche market of high-performance ceramic materials
and products where it benefits from technological expertise, high
entry barriers and a reputation for quality; attractive end markets
with favourable dynamics, particularly within the medical sector,
which is characterised by favourable long-term dynamics such as
ageing populations.
At the same time, Ceramtec's rating is constrained by certain
factors. Moody's-adjusted debt to EBITDA is very high for the
current rating category. The company's exposure to cyclical
industrial sectors—such as automotive, electronics, and
construction—adds earnings volatility. There's also event risk
from potential debt-funded acquisitions as Ceramtec seeks to
diversify and grow its medical portfolio.
LIQUIDITY
Ceramtec's liquidity is good, supported by EUR140 million cash on
balance sheet as of end 2025 based on management preliminary
numbers and access to a fully available EUR250 million senior
secured revolving credit facility (RCF). Moody's anticipates
Moody's-adjusted free cash flow (FCF) is likely to turn positive in
2026 and 2027, reaching around EUR50 million annually.
The RCF is subject to a springing first-lien net leverage ratio
covenant set at 9.7x, tested when the facility is drawn by more
than 40%. Moody's expects Ceramtec to ensure consistent compliance
with this covenant.
STRUCTURAL CONSIDERATIONS
Moody's rank pari passu the senior secured EUR1,480 million Term
Loan B and the EUR250 million RCF, which share the same security
and are guaranteed by subsidiaries of the group accounting for at
least 80% of consolidated EBITDA. The B1 ratings on the senior
secured instruments reflect their priority position in the group's
capital structure and the benefit of loss absorption provided by
the EUR465 million backed senior unsecured notes rated Caa1.
RATIONALE FOR NEGATIVE OUTLOOK
The negative outlook reflects Moody's expectations that Ceramtec
will continue to exhibit weak credit metrics with Moody's-adjusted
debt/EBITDA around 7.7x and breakeven to slightly negative FCF in
2025. The outlook may be revised to stable if Ceramtec demonstrates
sustainable improvements to EBITDA growth and positive FCF
generation and reduces its Moody's-adjusted debt-to-EBITDA to below
7.0x. Conversely, failure to improve credit metrics on a
sustainable basis could lead to a rating downgrade.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Upward rating pressure is unlikely at this point because of the
negative outlook. It could build up in the longer term if Ceramtec
continues to efficiently execute its strategy of diversifying its
medical segment portfolio while delivering improvements in its
operating performance; it reduces its Moody's-adjusted debt/EBITDA
to below 5.0x on a sustained basis; its Moody's-adjusted FCF/debt
increases to and is maintained in mid-to-high single digits (in
percentage terms) and its EBITDA to interest expense ratio
increases towards 3.0x.
Downward rating pressure could arise if the company's operating
performance continues to deteriorate further; its Moody's-adjusted
debt/EBITDA remains above 7.0x for a prolonged period; its
Moody's-adjusted EBITDA to interest expenses remains below 2.0x;
its FCF generation further weakens; the company opts for
debt-financed acquisitions or shareholder distributions that could
impair its credit metrics; or there is a significant deviation from
the current company's financial policy of continued leverage
reduction.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Medical
Products and Devices published in October 2025.
COMPANY PROFILE
Based in Plochingen, Germany, Ceramtec designs and manufactures
high-performance ceramic materials primarily for medical
applications (ceramic components for hip joint implants) and
industrial applications used in the automobile, electronics,
aerospace, industrial machinery, textile and construction
industries, among others.
In August 2021, BC Partners Fund XI and Canada Pension Plan
Investment Board agreed to jointly acquire Ceramtec from the
previous owner BC European Capital X and co-investors. The two
funds together hold the majority stake in the company (about 90%),
with management holding the balance.
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I R E L A N D
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CVC CORDATUS XIX: Moody's Affirms B3 Rating on EUR11.2MM F Notes
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Moody's Ratings has upgraded the ratings on the following notes
issued by CVC Cordatus Loan Fund XIX DAC:
EUR27,800,000 Class B-1 Senior Secured Floating Rate Notes due
2033, Upgraded to Aaa (sf); previously on Jan 20, 2021 Assigned Aa2
(sf)
EUR13,500,000 Class B-2 Senior Secured Fixed Rate Notes due 2033,
Upgraded to Aaa (sf); previously on Jan 20, 2021 Assigned Aa2 (sf)
EUR23,400,000 Class C Senior Secured Deferrable Floating Rate
Notes due 2033, Upgraded to Aa3 (sf); previously on Jan 20, 2021
Assigned A2 (sf)
Moody's have also affirmed the ratings on the following notes:
EUR228,700,000 (Current outstanding amount EUR131,726,594) Class A
Senior Secured Floating Rate Notes due 2033, Affirmed Aaa (sf);
previously on Jan 20, 2021 Assigned Aaa (sf)
EUR24,400,000 Class D Senior Secured Deferrable Floating Rate
Notes due 2033, Affirmed Baa3 (sf); previously on Jan 20, 2021
Assigned Baa3 (sf)
EUR18,800,000 Class E Senior Secured Deferrable Floating Rate
Notes due 2033, Affirmed Ba3 (sf); previously on Jan 20, 2021
Assigned Ba3 (sf)
EUR11,200,000 Class F Senior Secured Deferrable Floating Rate
Notes due 2033, Affirmed B3 (sf); previously on Jan 20, 2021
Assigned B3 (sf)
CVC Cordatus Loan Fund XIX DAC, issued in January 2021, is a
collateralised loan obligation (CLO) backed by a portfolio of
mostly high-yield senior secured European loans. The portfolio is
managed by CVC Credit Partners European CLO Management LLP. The
transaction's reinvestment period ended in December 2024.
RATINGS RATIONALE
The rating upgrades on the Class B-1, Class B-2 and Class C notes
are primarily a result of the deleveraging of the senior notes
following amortisation of the underlying portfolio since the
payment date in March 2025.
The affirmations on the ratings on the Class A, Class D, Class E
and Class F notes are primarily a result of the expected losses on
the notes remaining consistent with their current rating levels,
after taking into account the CLO's latest portfolio, its relevant
structural features and its actual over-collateralisation ratios.
The Class A notes have paid down by approximately EUR97.0 million
(42%) in the last 12 months and since closing. Of this amount,
EUR79.0 million (35%) was paid down in the last payment date in
December 2025 and is not reflected in the latest reported
overcollateralization ratios.
In light of reinvestment restrictions during the amortisation
period, and therefore the limited ability to effect significant
changes to the current collateral pool, Moody's analysed the deal
assuming a higher likelihood that the collateral pool
characteristics would maintain an adequate buffer relative to
certain covenant requirements.
The key model inputs Moody's uses in Moody's analysis, such as par,
weighted average rating factor, diversity score and the weighted
average recovery rate, are based on Moody's published methodology
and could differ from the trustee's reported numbers.
In Moody's base case, Moody's used the following assumptions:
Performing par and principal proceeds balance: EUR272,568,146
Defaulted Securities: EUR3,557,004
Diversity Score: 47
Weighted Average Rating Factor (WARF): 3242
Weighted Average Life (WAL): 3.93 years
Weighted Average Spread (WAS) (before accounting for
Euribor/reference rate floors): 3.66%
Weighted Average Coupon (WAC): 3.95%
Weighted Average Recovery Rate (WARR): 42.74%
Par haircut in OC tests and interest diversion test: 0%
The default probability derives from the credit quality of the
collateral pool and Moody's expectations of the remaining life of
the collateral pool. The estimated average recovery rate on future
defaults is based primarily on the seniority of the assets in the
collateral pool. In each case, historical and market performance
and a collateral manager's latitude to trade collateral are also
relevant factors. Moody's incorporates these default and recovery
characteristics of the collateral pool into Moody's cash flow model
analysis, subjecting them to stresses as a function of the target
rating of each CLO liability it is analysing.
Methodology Underlying the Rating Action:
The principal methodology used in these ratings was "Collateralized
Loan Obligations" published in October 2025.
Counterparty Exposure:
The rating action took into consideration the notes' exposure to
relevant counterparties, such as account bank, using the
methodology "Structured Finance Counterparty Risks" published in
May 2025. Moody's concluded the ratings of the notes are not
constrained by these risks.
Factors that would lead to an upgrade or downgrade of the ratings:
The rated notes' performance is subject to uncertainty. The notes'
performance is sensitive to the performance of the underlying
portfolio, which in turn depends on economic and credit conditions
that may change. The collateral manager's investment decisions and
management of the transaction will also affect the notes'
performance.
Additional uncertainty about performance is due to the following:
-- Portfolio amortisation: The main source of uncertainty in this
transaction is the pace of amortisation of the underlying
portfolio, which can vary significantly depending on market
conditions and have a significant impact on the notes' ratings.
Amortisation could accelerate as a consequence of high loan
prepayment levels or collateral sales by the collateral manager or
be delayed by an increase in loan amend-and-extend restructurings.
Fast amortisation would usually benefit the ratings of the notes
beginning with the notes having the highest prepayment priority.
-- Recovery of defaulted assets: Market value fluctuations in
trustee-reported defaulted assets and those Moody's assumes have
defaulted can result in volatility in the deal's
over-collateralisation levels. Further, the timing of recoveries
and the manager's decision whether to work out or sell defaulted
assets can also result in additional uncertainty. Moody's analysed
defaulted recoveries assuming the lower of the market price or the
recovery rate to account for potential volatility in market prices.
Recoveries higher than Moody's expectations would have a positive
impact on the notes' ratings.
-- Long-dated assets: The presence of assets that mature beyond
the CLO's legal maturity date exposes the deal to liquidation risk
on those assets. Moody's assumes that, at transaction maturity, the
liquidation value of such an asset will depend on the nature of the
asset as well as the extent to which the asset's maturity lags that
of the liabilities. Liquidation values higher than Moody's
expectations would have a positive impact on the notes' ratings.
In addition to the quantitative factors that Moody's explicitly
modelled, qualitative factors are part of the rating committee's
considerations. These qualitative factors include the structural
protections in the transaction, its recent performance given the
market environment, the legal environment, specific documentation
features, the collateral manager's track record and the potential
for selection bias in the portfolio. All information available to
rating committees, including macroeconomic forecasts, input from
Moody's other analytical groups, market factors, and judgments
regarding the nature and severity of credit stress on the
transactions, can influence the final rating decision.
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I T A L Y
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MARCOLIN SPA: S&P Withdraws 'B' LongTerm Issuer Credit Rating
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S&P Global Ratings withdrew its ratings on Italy-based eyewear
manufacturer and distributor Marcolin SpA, at the issuer's request.
The ratings withdrawn comprise its 'B' long-term issuer credit
rating on Marcolin, and its 'B issue credit rating and '4' recovery
rating on the company's senior secured debt. At the time of the
withdrawal, S&P's outlook on our rating on Marcolin was stable.
On Dec. 22, 2025, Marcolin was acquired by VSP Vision (not rated)
and the notes rated by S&P Global Ratings were repaid in full.
===================
L U X E M B O U R G
===================
FORESEA HOLDING: Moody's Affirms B2 CFR & Rates New $150MM Notes B2
-------------------------------------------------------------------
Moody's Ratings has affirmed FORESEA Holding S.A. (Foresea)'s B2
corporate family rating as well as the existing B2 Back Senior
Secured rating. At the same time, Moody's have assigned a B2 rating
to Foresea's proposed $150 million backed Senior Secured Notes due
2030. This transaction is an add-on to the original $300 million
backed Senior Secured Notes due 2030 issued in June 2023. The
outlook for the ratings remains stable.
The rating of the proposed notes assumes that the final transaction
documents will not be materially different from draft legal
documentation reviewed by us to date and assume that these
agreements are legally valid, binding and enforceable.
RATINGS RATIONALE
Foresea's B2 rating is supported by its strong market position in
Brazil, long term relationship with customers and firm backlog of
contracts that provides cash flow visibility through the end of
2029. The company has about 16% of market share in Brazil, and a
track record that includes over 440 wells interventions and more
than 700 thousand meters drilled as of 2025. The company currently
has a firm backlog of $1.6 billion (as of September 2025), mostly
concentrated in contracts with Petroleo Brasileiro S.A. - PETROBRAS
(Ba1 stable, 99%), and PRIO S.A. (Ba2 stable, 1%). The positive
fundamentals for the offshore drilling industry, a result of tight
supply and high daily rates, and Foresea's good credit metrics and
adequate liquidity after its out-of-court reorganization also
support the rating.
The rating is constrained by Foresea's scale and concentration of
operations in five drilling units, in the oil and gas industry, in
a single country. Foresea is one of the largest pure-play operators
of ultra-deepwater rigs, focused on chartering and operations of
rigs in the Brazilian offshore oil and gas industry. Although the
company increased its managed fleet portfolio in 2025, it continues
to have a smaller scale and a narrower diversification when
compared to global peers. Foresea's small scale and concentration
of operations introduce event risk, as the company's credit metrics
and cash generation would be materially affected in case of
operational disruptions in any of its drilling units. The
inherently cyclical nature of the offshore drilling industry and
the high level of volatility in oil and gas prices also constrain
Foresea's credit profile since those entail significant
re-contracting risks. Finally, the lack of track record in terms of
capital allocation after the out-of-court reorganization also
constrains the rating.
Foresea has low debt levels and adequate liquidity as a result of
the out-of-court reorganization made by Ocyan S.A. The current debt
level and related debt service can easily be accommodated in
Foresea's cash generation, especially when considering the current
high daily rates. Foresea's EBIT margin has historically hovered
around 30-40% and Moody's expects profitability to recover to these
levels in the future because of higher daily rates in its existing
contracts.
Proceeds from the proposed transaction will be used for general
corporate purposes, including payments to shareholders. While
credit negative, the impact of the additional indebtedness will not
strain Foresea' credit quality based on the existing cushion the
company has on credit metrics. Moody's expects Foresea's Moody's
adjusted leverage to increase to around 1.7x from 1.2x in the
twelve months ended September 2025 with the add-on, maintaining
this ratio through 2027, based on the expected performance of
existing contracts. Interest coverage (measured by EBITDA/Interest
expense) will also decline to 7.2x from 10.9x in the twelve months
ended September 2025.
LIQUIDITY
Foresea has an adequate liquidity profile with $109 million in cash
as of September 2025 and only one debt instrument maturing in 2030.
Moody's expects the company's cash flow from operations to amount
to around $200 million per year, which is sufficient to cover
investment requirements in its fleet. Debt incurrence limitations
in its bond indentures limit additional debt issuances and the
company has financial covenants setting a maximum gross leverage of
3.5x (1.0x currently) and a minimum liquidity level of $50 million.
Any additional investments in fleet expansion will be done through
ring-fenced structures that protect existing bondholders. Moody's
expects the company to maintain a disciplined approach to capital
allocation, including dividend distributions, as it starts to
increase its cash from operations.
STRUCTURAL CONSIDERATIONS
The B2 rating of the $300 million senior secured notes due 2030 and
$150 million senior secured notes due 2030 add-on stands at the
same level as the company's corporate family rating. The notes
represent the totality of Foresea's debt. The notes are secured by
a first priority lien on substantially all of Foresea's material
assets.
RATING OUTLOOK
The stable outlook reflects Moody's expectations that Foresea's
credit metrics and liquidity will remain adequate in the next 12-18
months, supported by the terms of the existing charter and service
contracts.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
Foresea's ratings could be upgraded if the company achieves larger
scale with revenues above $750 million as well as longer duration
of contracts in a healthy industry environment, if the company
sustains a track record of strong profitability and maintains a
strong balance sheet with leverage below 1.5x, positive FCF
generation and prudent shareholder distributions. Further balance
sheet strengthening, with a high cash position or extremely low
leverage that mitigates its small size and narrow product offering
could also result in positive pressure on the rating.
Foresea's ratings could be downgraded if the company's earnings and
backlog deteriorate materially, leading to gross leverage
sustainedly in excess of 3.0x and EBITDA / Interest expense falls
below 3x, if FCF generation turns negative, as a result of weaker
operating performance or more aggressive than currently anticipated
financial policies, including dividend distributions or high
refinancing risk, or if its liquidity position weakens.
COMPANY PROFILE
Foresea is a Luxembourg-based company created in June 2023 after
the spin-off of Ocyan's drilling assets. The company owns 5
offshore drilling units (4 drillships and 1 semisubmersible)
focused on chartering and operations of rigs in the Brazilian
offshore oil and gas industry, and provides services to other
third-party assets (one semisubmersible and four offshore fixed
rigs). As of the twelve months ended September 2025, the company
generated $558 million in revenue and around $246 million in
Moody's adjusted EBITDA.
The principal methodology used in these ratings was Oilfield
Services published in October 2025.
Moody's current scorecard indicated outcome, as well as Moody's
12-18 month forward view, maps to a Ba3, exceeding the B2 rating by
two notches. This difference results from Moody's expectations
constraints regarding scale and lack of diversification despite the
continued strong metrics and enhanced production.
FORESEA HOLDING: S&P Affirms 'B' ICR & Alters Outlook to Stable
---------------------------------------------------------------
On Feb. 2, 2026, S&P Global Ratings revised the outlook on
Brazilian offshore drilling company Foresea Holding S.A. to stable
from positive and affirmed the 'B' issuer credit rating. S&P also
affirmed its 'B+' issue-level rating on the company's senior
secured debt; the '2' recovery rating is unchanged.
The stable outlook reflects S&P's expectation that Foresea will
maintain leverage near 2.0x, with higher gross debt and an EBITDA
margin above 40%.
S&P said, "Foresea announced a proposed reopening of its senior
secured notes, which will increase leverage compared with our
previous expectations. The company will use the proceeds for
general corporate purposes, including distributions to
shareholders.
"We expect the company to maintain solid operational efficiency and
profitability, and continue to extend contracts and sign new ones.
"Foresea's proposed reopening of its senior secured notes due 2030
indicate the company's tolerance for higher leverage than we were
previously expecting. SAO PAULO (S&P Global Ratings) Feb. 2,
2026—S&P Global Ratings took the ratings actions described above.
Foresea intends to use the proceeds of the reopening for general
corporate purposes, including distributions to shareholders. We now
forecast debt of US$450 million, up from US$300 million, so we
expect the company will maintain debt to EBITDA closer to 2.0x and
funds from operations (FFO) to debt below 55%. Our previous
positive outlook reflected our expectations that the company would
reduce leverage toward 1.0x and maintain FFO to debt above 60%,
under the assumption of stable debt levels and increasing EBITDA
generation.
"We anticipate that contract extensions and expected new contracts
will sustain relatively stable profitability. After a significant
revenue increase in 2025 due to new contracts at higher day rates,
we now expect revenue to be stable in 2026. This is due to two
special periodic surveys and one stoppage for preparation to a
contract requirement during the year, which will reduce operating
days. We believe the company will be able to maintain solid uptime
rates of 96% on average, resulting in an EBITDA margin of about
40%-41% in 2026 and 2027."
On Jan. 4, operation of Foresea's ODN II drillship was suspended
after a leakage of fluid. S&P said, "We understand that Foresea is
doing required inspections, which for now indicate no material
damage to the drillship. Public news indicate that Brazil's
National Petroleum Agency should inspect over the next days, after
which the drillship could be allowed to start operations again,
likely by mid-February. Depending on the time it takes for the
drillship to restart operations and eventual cost compensation, we
could see somewhat lower revenue and EBITDA generation than we
currently forecast."
S&P said, "The stable outlook reflects our expectation that Foresea
will maintain leverage closer to 2.0x, with somewhat higher debt
levels following the retap on the notes. We also anticipate solid
operational efficiency and assume the company will continue to
secure new contracts at attractive rates.
"We could lower our rating on Foresea if the company experiences
longer-than-expected maintenance shutdowns, reducing operational
availability and cash flow generation, or if it employs an
aggressive growth strategy financed with debt and not accompanied
by new contracts. In this scenario, we would expect debt to EBITDA
to move toward 3.0x while constant negative discretionary cash flow
would pressure the company's liquidity.
"We could raise the rating on Foresea in the medium term if it
reduces leverage, with increasing EBITDA generation allowing the
company to maintain debt to EBITDA below 1.5x and FFO to debt
consistently above 60%. An upgrade would also depend on our view
that the company would maintain a disciplined approach to
shareholder distributions, protecting leverage and maintaining
adequate liquidity."
=====================
N E T H E R L A N D S
=====================
ACR I BV: Moody's Withdraws 'Ca' Corporate Family Rating
--------------------------------------------------------
Moody's Ratings has withdrawn all ratings of ACR I B.V. (AnQore),
including the Ca long-term corporate family rating and the Ca-PD
probability of default rating. Concurrently, Moody's have also
withdrawn the Ca senior secured bank credit facility ratings of
AnQore B.V. Prior to the withdrawal, the outlook on both entities
was stable.
RATINGS RATIONALE
Moody's have decided to withdraw the rating(s) following a review
of the issuer's request to withdraw its rating(s).
COMPANY PROFILE
Headquartered in the Netherlands, ACR I B.V. (AnQore) is a European
producer of acrylonitrile (ACN) and other co-products (such as
hydrogen cyanide, sodium cyanide, acetonitrile, ammonium sulfate or
steam). The company operates a 275 kilo tonne ACN plant at the
Chemelot site in Geleen (the Netherlands) with two lines.
===========================
U N I T E D K I N G D O M
===========================
CLIFFEDGE 10: Quantuma Advisory Named as Administrators
-------------------------------------------------------
Cliffedge 10 Newquay Ltd was placed into administration proceedings
in the Business and Property Courts in England & Wales, Court
Number CR-2026-000533, and Nicholas Simmonds and Chris Newell of
Quantuma Advisory Limited were appointed as administrators on Jan.
26, 2026.
Cliffedge 10 Newquay Ltd specialized in the development of building
projects.
Its registered office is at The City Foundry, 10 Princes St, Truro,
TR1 2ES, and is in the process of being changed to 1st Floor, 21
Station Road, Watford, Herts, WD17 1AP.
Its principal trading address is Former Marina Hotel, 14
Narrowcliff, Newquay, TR7 2PL.
The administrators can be reached at:
Nicholas Simmonds
Chris Newell
Quantuma Advisory Limited
1st Floor, 21 Station Road
Watford, Herts, WD17 1AP
Telephone No: 01923 954 174
For further details, contact:
Clare Vila
Quantuma Advisory Limited
Email: Clare.Vila@quantuma.com
Telephone No: 01923 954 174
DENTOGENICS LIMITED: Xeinadin Corporate Named as Administrators
---------------------------------------------------------------
Dentogenics Limited was placed into administration proceedings in
the High Court of Justice, Business & Property Manchester, Court
Number CR2026-MAN000043, and Jessica Barker and Alan Fallows of
Xeinadin Corporate Recovery Limited were appointed as joint
administrators on Jan. 23, 2026.
Dentogenics Limited operates as a specialized, modern dental
laboratory providing high-quality, custom-built dental
restorations, including implants, crowns, bridges, and
prosthodontics.
Its registered office is at 1 Hardman Street, Spinningfields,
Manchester, M3 3HF.
Its principal trading address is Greengate, Cardale Park,
Harrogate, HG3 1GY.
The joint administrators can be reached at:
Jessica Barker
Alan Fallows
Xeinadin Corporate Recovery Limited
100 Barbirolli Square
Manchester, M2 3BD
Tel No: 0161 832 6221
For further details, contact:
Josh Daly
Xeinadin Corporate Recovery Limited
Email: josh.daly@xeinadin.com
Telephone No: 0161 212 8389
FAI REALISATIONS: MHA Advisory Named as Administrators
------------------------------------------------------
FAI Realisations 2024 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-2024-000325, and Andrew Duncan and Steven Illes of
MHA Advisory Ltd were appointed as replacement administrators on
Jan. 21, 2026.
FAI Realisations 2024 Limited (formerly Fetch.AI Limited)
specialized in business and domestic software development.
Its registered office is c/o Restructuring and Recovery Services
(RRS), S&W Partners LLP, 45 Gresham Street, London EC2V 7BG
(formerly 18 Langton Place, Bury St Edmunds, Suffolk IP33 1NE).
The replacement administrators can be reached at:
Andrew Duncan
Steven Illes
MHA Advisory Ltd
6th Floor, 2 London Wall Place
London, EC2Y 5AU
For urther details, contact:
Kyra Harford
MHA Advisory Ltd
Email: Kyra.Harford@mha.co.uk
Telephone No: 020 7429 4100
INVENTIVE SERVICE: FTI Consulting Named as Administrators
---------------------------------------------------------
Inventive Service Company Limited was placed into administration
proceedings in the High Court of Justice, Business and Property
Courts of England and Wales, Insolvency and Companies List (CHD),
Court Number CR-2026-000565, and Lindsay Kate Hallam, Oliver Stuart
Wright, and Matthew Boyd Callaghan of FTI Consulting LLP were
appointed as joint administrators on Jan. 27, 2026.
Inventive Service Company Limited specialized in the retail sale of
beverages in specialised stores.
Its registered office is at 21 Old Street, Ashton Under Lyne,
Tameside, OL6 6LA.
Its principal trading address is 21-27 Old Street, Ashton Under
Lyne, OL6 6LA.
The joint administrators can be reached at:
Lindsay Kate Hallam
Oliver Stuart Wright
Matthew Boyd Callaghan
FTI Consulting LLP
200 Aldersgate, Aldersgate Street
London, EC1A 4HD
Tel No: +44 20 3727 1000
For further details, contact:
The Joint Administrators
FTI Consulting LLP
Email: revelcollectiveadministrators@fticonsulting.com
NAVIGATE PEOPLE: Marshall Peters Named as Administrators
--------------------------------------------------------
Navigate People Limited was placed into administration proceedings
in the High Court of Justice, No CR-2026-MAN-000, and Lee Morris
and John Thompson of Marshall Peters were appointed as joint
administrators on Jan. 26, 2026.
Navigate People Limited specialized in human resources provision
and management of human resources functions.
Its registered office and principal trading address is at Unit 3
Project House, Glendale Avenue, Sandycroft, Deeside, CH5 2QP.
The joint administrators can be reached at:
Lee Morris
John Thompson
Marshall Peters
Heskin Hall Farm, Wood Lane
Heskin, Preston, PR7 5PA
Tel No: 01257 452021
For further details contact:
Olivia Hamer
Marshall Peters
Email: oliviahamer@marshallpeters.co.uk
Telephone No: 01257 452021
PEACH ALMANACK: FTI Consulting Named as Administrators
------------------------------------------------------
Peach Almanack Limited was placed into administration proceedings
in the High Court of Justice, Business and Property Courts of
England and Wales, Insolvency and Companies List (CHD), Court
Number CR-2026-000569, and Lindsay Kate Hallam, Oliver Stuart
Wright, and Matthew Boyd Callaghan of FTI Consulting LLP were
appointed as joint administrators on Jan. 27, 2026.
Peach Almanack Limited trades as The Almanack and specialized in
licensed restaurants, public houses, and bars.
The Company's registered office is at 21 Old Street, Ashton Under
Lyne, Tameside, OL6 6LA.
Its principal trading address is Abbey End North, Kenilworth, CV8
1QJ.
The joint administrators can be reached at:
Lindsay Kate Hallam
Oliver Stuart Wright
Matthew Boyd Callaghan
FTI Consulting LLP
200 Aldersgate, Aldersgate Street
London, EC1A 4HD
Tel No: +44 20 3727 1000
For further details, contact:
The Joint Administrators
FTI Consulting LLP
Email: revelcollectiveadministrators@fticonsulting.com
PEACH MELBA: FTI Consulting Named as Administrators
---------------------------------------------------
Peach Melba Limited was placed into administration proceedings in
the High Court of Justice, Business and Property Courts of England
and Wales, Insolvency and Companies List (CHD), Court Number
CR-2026-000560, and Lindsay Kate Hallam, Oliver Stuart Wright, and
Matthew Boyd Callaghan of FTI Consulting LLP were appointed as
joint administrators on Jan. 27, 2026.
Peach Melba Limited trades as The High Field and specialized in
licensed restaurants, public houses, and bars.
The Company's registered office is at 21 Old Street, Ashton Under
Lyne, Tameside, OL6 6LA.
The Company's principal trading address is 22 Highfield Road,
Edgbaston, B15 3DP.
The joint administrators can be reached at:
Lindsay Kate Hallam
Oliver Stuart Wright
Matthew Boyd Callaghan
FTI Consulting LLP
200 Aldersgate, Aldersgate Street
London, EC1A 4HD
Tel No: +44 20 3727 1000
For further details, contact:
The Joint Administrators
FTI Consulting LLP
Email: revelcollectiveadministrators@fticonsulting.com
PEACH ON THE WATER: FTI Consulting Named as Administrators
----------------------------------------------------------
Peach on the Water Limited was placed into administration
proceedings in the High Court of Justice, Business and Property
Courts of England and Wales, Insolvency and Companies List (CHD),
Court Number CR-2026-000564, and Lindsay Kate Hallam, Oliver Stuart
Wright, and Matthew Boyd Callaghan of FTI Consulting LLP were
appointed as joint administrators on Jan. 27, 2026.
Peach on the Water Limited trades as The Boathouse and specialized
in public houses and bars.
The company's registered office is at 21 Old Street, Ashton Under
Lyne, Tameside, OL6 6LA.
Its principal trading address is Boulters Lock Island, Maidenhead,
SL6 8PE.
The joint administrators can be reached at:
Lindsay Kate Hallam
Oliver Stuart Wright
Matthew Boyd Callaghan
FTI Consulting LLP
200 Aldersgate, Aldersgate Street
London, EC1A 4HD
Tel. No: +44 20 3727 1000
For further details, contact:
The Joint Administrators
FTI Consulting LLP
Email: revelcollectiveadministrators@fticonsulting.com
RUBIX GROUP: Moody's Affirms 'B3' CFR, Outlook Remains Stable
-------------------------------------------------------------
Moody's Ratings has affirmed Rubix Group Midco 3 Limited's (Rubix)
B3 corporate family rating and B3-PD probability of default rating.
Concurrently, Moody's assigned B3 rating to a new senior secured
first lien term loan B tranche of Rubix Group Finco Limited's
(Finco), with a proposed maturity extension to 2031. The outlook
for all entities remains stable.
The existing B3 instrument ratings, including a EUR1,630 million
senior secured first lien term loan B due September 2028 and a
EUR198 million senior secured first lien revolving credit facility
(RCF) due March 2028 as well as a EUR12 million senior secured
first lien RCF due March 2026, borrowed by Rubix Group Finco
Limited, have been reviewed by the rating committee and remained
unchanged. These ratings are expected to be withdrawn following the
completion of the recently launched amend-and-extend transaction.
A comprehensive review of all credit ratings for the respective
issuer(s) has been conducted during a rating committee.
RATINGS RATIONALE
The credit quality of Rubix benefits from its relatively resilient
performance amid adverse macroeconomic conditions, particularly in
2025. Rubix's performance was better than other distributors. The
acquisition of ERIKS UK & Ireland (ERIKS UK&I) in the fourth
quarter of 2025, the group's largest since it came together, was
strategically sound and added scale at similar profitability and
cash conversion levels to Rubix. Fresh equity from new minority
investors should have supported leverage reduction.
However, Rubix continued to execute debt add-ons in 2025, which
largely dampened the deleveraging effect of ERIKS UK&I's
acquisition. In addition, good execution on cost savings did not
fully offset organic revenue decline last year and underperformance
versus Moody's previous forecasts. As a result, Moody's estimates
that Moody's-adjusted gross debt/EBITDA for Rubix was around 6.6x
at the end of 2025 (or 5.9x including a full year's EBITDA
contribution from closed acquisitions) from 5.6x in the previous
year.
In 2026, Moody's forecasts that Rubix will deleverage to a range of
5.0x to 5.5x thanks to a return to organic growth in a low single
digit percentage, combined with ERIKS UK&I integration savings
(from procurement for example) and other efficiency initiatives.
Moody's also expects that Rubix will continue to generate positive
free cash flow (FCF), to the tune of EUR50 million, higher than
last year.
Rubix's B3 CFR continues to reflect the company's: (1) position as
a market leader in the fragmented European industrial parts
distribution market, with a broad range of products and services,
(2) diverse end-markets and focus on the more resilient
maintenance, repair and overhaul (MRO) segment as well as
non-cyclical sectors, (3) improved margins and cash generation,
thanks to ongoing saving initiatives to reduce fixed costs and
working capital and (4) adequate liquidity, although with a degree
of seasonality and reliance on short term facilities.
On the flipside, the CFR also reflects: (1) the exposure to mature
markets in Western Europe with modest long term organic growth
prospects, (2) a degree of correlation to industrial activity which
has been continuously subdued in Europe, (3) the high leverage
resulting from debt additions, and (4) significant off-balance
sheet non-recourse factoring which is not included in Moody's
leverage metrics but considered in Moody's overall qualitative
assessment of leverage.
LIQUIDITY
The company's liquidity is adequate, totalling EUR383 million at
December 31, 2025, comprising cash of EUR170 million and EUR210
million of undrawn senior secured RCF. Liquidity is required to
support Rubix's relatively large seasonal working capital swings as
well as for acquisitions.
STRUCTURAL CONSIDERATIONS
The B3 ratings on the EUR1,762 million senior secured first lien
term loan maturing in September 2031 and EUR210 million pari passu
ranking RCF are in line with the CFR, reflecting the fact that they
are the main financial debt instruments in Rubix's restricted
group.
OUTLOOK
The stable outlook reflects Moody's expectations that Rubix will
reduce Moody's-adjusted leverage to below 5.5x over the next 12
months and improve margins, while maintaining at least stable
revenue on an organic basis. It also reflects Moody's assumptions
that the company will generate Moody's-adjusted free cash
flow/debt, at least in the low single digit percentages. In
addition, the outlook assumes that the company will maintain
adequate liquidity and will not carry out debt-financed
acquisitions or shareholder distributions that result in a material
increase in leverage.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The ratings could be upgraded if (i) Moody's-adjusted debt/EBITDA
reduces sustainably well below 5.0x, before the inclusion of
non-recourse factoring; (ii) improving cash flow generation, with
Moody's-adjusted free cash flow/debt well in excess of 5%; (iii) a
more conservative financial policy, which limits the extent of
re-leveraging from debt-financed acquisitions as well as cash
leakage from the restricted group; (iv) positive organic revenue
growth and at least stable margins; and (v) adequate liquidity.
On the other hand, the ratings could be downgraded if (i) the
company fails to improve its operating performance from its current
levels, resulting in a decline in organic revenue or margins; (ii)
Moody's-adjusted debt/EBITDA increases above 6.5x, before the
inclusion of non-recourse factoring; (iii) Moody's-adjusted
EBITA/Interest sustainably reducing to below 1.5x; and (iv) free
cash flow turns negative on a sustained basis; and (v) liquidity
concerns arise.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Distribution
and Supply Chain Services published in November 2025.
The net effect of any adjustments applied to rating factor scores
or scorecard outputs under the primary methodology(ies), if any,
was not material to the ratings addressed in this announcement.
COMPANY PROFILE
Rubix, headquartered in London, is a leading European distributor
of industrial MRO products and related services. Products offered
include bearings, mechanical power transmission, pneumatics,
hydraulics, tools, health and safety equipment and related
technical services. The group is active in a range of end markets,
including general industry, food and drink, utilities, automotive,
business services, metals and steel, aerospace, energy and
transportation. The company is owned by funds advised by Advent
International.
In 2025, Rubix had net sales of EUR3 billion and company-adjusted
EBITDA of EUR320 million.
*********
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,
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Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante,
Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman,
Editors.
Copyright 2026. All rights reserved. ISSN 1529-2754.
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