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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
Thursday, March 12, 2026, Vol. 27, No. 51
Headlines
G E O R G I A
SILKNET JSC: Fitch Affirms & Then Withdraws 'BB-' LongTerm IDR
G E R M A N Y
SC GERMANY 2023-1: Fitch Lowers Rating on Class F Notes to 'B-sf'
I R E L A N D
PENTA CLO 17: Fitch Assigns 'B-sf' Final Rating on Class F-R Notes
I T A L Y
SUNRISE SPV 98: DBRS Gives Prov. BB(high) Rating on Class E Notes
SUNRISE SPV 98: Fitch Assigns 'BB+(EXP)sf' Rating on 2 Tranches
L U X E M B O U R G
LSF11 BOSON: DBRS Confirms BB(low) Rating on Class C Notes
N E T H E R L A N D S
ACCELL GROUP: Fitch Cuts IDR to 'RD'; Hikes to 'CC'; Withdraws All
ACCELL GROUP: Moody's Withdraws 'Caa3' Corporate Family Rating
P O R T U G A L
LUSITANO MORTGAGES 5: Fitch Affirms 'BBsf' Rating on Cl. D Notes
U N I T E D K I N G D O M
C. FULLARD: Leonard Curtis Appointed as Joint Administrators
IMMEDIA BROADCAST: RSM UK Appointed as Joint Administrators
MILES TOOL: Milsted Langdon Appointed as Joint Administrators
X X X X X X X X
[] Fitch Affirms Ratings on 10 Western European Telecom Cos.
- - - - -
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G E O R G I A
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SILKNET JSC: Fitch Affirms & Then Withdraws 'BB-' LongTerm IDR
--------------------------------------------------------------
Fitch has affirmed Silknet JSC's Long-Term Issuer Default Rating
(IDR) at 'BB-' with a Stable Outlook and has simultaneously
withdrawn the rating.
The rating reflects Silknet's strong ties with its parent Silk Road
Group Holding LLC (Silkroad, BB-/Stable), as the former guarantees
the USD400 million Eurobond issued by Silkroad, its stable market
position as a strong number two telecoms operator in Georgia and
positive free cash flow (FCF) generation. Silknet's own external
debt remains small as most funding is sourced from the parent.
Fitch has withdrawn Silknet's rating for commercial reasons. Fitch
will no longer provide ratings or analytical coverage of the
entity.
Key Rating Drivers
Strong Ties with Parent: Fitch views ties between Silknet and its
parent as strong, which allows us to equalise the ratings without
applying its Parent and Subsidiary Linkage Rating Criteria. The
company guarantees Silk Road's USD400 million Eurobond. The parent
provides substantially all funding for Silknet, which Fitch views
as equivalent to providing a guarantee. Silkroad owns 95% of
Silknet and intends to increase its shareholding.
Entrenched Telecoms Market Positions: Fitch expects Silknet to
maintain its competitive positions in a highly consolidated but
fairly stable and small market of 5.8 million mobile and 1.2
million internet retail customers. Georgia is predominantly
serviced by Magticom and Silknet - the two largest operators - with
Cellfie, the third largest, far behind and other smaller
competitors holding just a fraction of the market.
5G Spectrum Secured: Silknet managed to secure considerable 5G
spectrum in June 2025, addressing its previous strategic
disadvantage versus competitors. Fitch views Silknet as having
reached broad spectrum parity with its peers.
Cash Upstreamed to Parent: Fitch projects that Silknet will remain
strongly cash flow-generative, with most internally generated cash
upstreamed to the parent. The company's EBITDA margins of above 55%
and moderate capex requirements of below 25% of revenue underpin
its pre-dividend FCF margin of close to 30%, which is solid for its
rating.
Peer Analysis
Silknet's peer group includes emerging markets telecom operators
Kazakhtelecom JSC (BBB-/Stable), Kcell JSC (BB+/Stable), Turkcell
Iletisim Hizmetleri A.S. (BB-/Positive), Turk Telekomunikasyon A.S.
(BB-/Positive), Uzbektelecom JSC (BB/Stable) and Telekom Srbija
a.d. Beograd (B+/Positive).
Silknet benefits from its established customer franchise and the
wide network of a fixed-line telecoms incumbent, combined with a
strong mobile business similar to Kazakhtelecom's and Turk
Telecomunikasyon's. However, the former is smaller in size and is
only the second-largest telecoms operator in Georgia.
Fitch’s Key Rating-Case Assumptions
- Mid single-digit revenue growth on average in 2025-2028, with
mobile rising ahead of broadband revenue
- Fitch-defined EBITDA margin gradually declining towards 54% in
2027-2028, from 58% in 2025, with content cost amortisation and
subscriber acquisition cost amortisation treated as operating cash
expenses, reducing EBITDA and capex
- Cash capex including spectrum below 25% of revenue in 2025-2028
- FCF upstreamed to the parent
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
- Business and financial profile factors (assessment, relative
importance): Management (bbb-, Lower), Sector Characteristics (bbb,
Lower), Market and Competitive Positioning (b+, Higher),
Diversification and Asset Quality (bb+, Moderate), Company
Operational Characteristics (bbb+, Moderate), Profitability (a-,
Lower), Financial Structure (a+, Lower), and Financial Flexibility
(b+, Moderate).
- The quantitative financial subfactors are based on standard CRT
financial period parameters: 20% weight for the latest historical
year 2024, 40% for the forecast year 2025 and 40% for the forecast
year 2026.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bb' results in no
adjustment.
- The SCP is 'bb-'.
To derive the IDR:
- Based on Fitch's Parent and Subsidiary Linkage Rating Criteria,
its assessment results in an equalised approach without applying
these criteria. This is specifically in cases where the entities
provide cross-guarantees to each other, or in case of a parent with
no material impediments to access the assets of the subsidiary.
RATING SENSITIVITIES
Rating sensitivities are no longer relevant as the ratings have
been withdrawn.
Liquidity and Debt Structure
Silknet has paid off its USD300 million Eurobond, with
substantially all new funding provided by Silk Road.
Issuer Profile
Silknet is the second-largest telecoms operator in Georgia, with
over 30% market shares in mobile, broadband and pay-TV, supported
by its incumbent fixed-line infrastructure across the country,
except for Tbilisi. Silknet is fully controlled by Silk Road.
RATING ACTIONS
Entity/Debt Rating Prior
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Silknet JSC
LT IDR BB- Affirmed BB-
LT IDR WD Withdrawn
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G E R M A N Y
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SC GERMANY 2023-1: Fitch Lowers Rating on Class F Notes to 'B-sf'
-----------------------------------------------------------------
Fitch Ratings has downgraded SC Germany S.A., Compartment Consumer
2023-1's (SCGC 2023) class F notes. The rating action includes a
revised modelling of the liquidity reserve, correcting an error.
Entity/Debt Rating
----------- ------
SC Germany S.A.,
Compartment
Consumer 2023-1
Class A XS2639842348 LT AAAsf Affirmed
Class B XS2639842694 LT AAsf Affirmed
Class C XS2639843072 LT Asf Affirmed
Class D XS2639843403 LT BBBsf Affirmed
Class E XS2639843742 LT BBsf Affirmed
Class F XS2639844047 LT B-sf Downgrade
Transaction Summary
The transaction is a securitisation of unsecured consumer loans
originated by Santander Consumer Bank AG. Following a performance
trigger breach, the transaction is amortising sequentially. The
class F notes can be paid down via excess spread in the priority of
interest payments but have not received any allocations since the
payment date in March 2024.
The transaction's investor report for the payment date on 16
February 2026 disclosed that there was a calculation error by the
servicer regarding the target amounts for the two-tiered reserve,
which should have stopped amortising in March 2024 according to the
transaction documentation. Fitch understands the reserve continued
to amortise, resulting in actual reserve amounts lower than the
target balance of about EUR11.7 million. The issuer's
representatives included a note in the investor report that
interest available funds for the next payment dates will be used in
the interest priority of payments to bring the reserve to its
actual target balance of EUR11.7 million in total, through the two
reserve replenishment positions in the waterfall.
Fitch has amended its modelling of the transaction accordingly,
including the targeted replenishment of the reserve. In its
modelling, the first part of the reserve that is primarily aimed at
liquidity protection will be refilled to the correct target balance
within the next two payment dates. The second part of the reserve
that is junior to all notes' principal deficiency ledgers (PDL)
will never be refilled in its modelling, in a stressed or expected
case scenario.
KEY RATING DRIVERS
Model Error Correction: Fitch has amended the liquidity reserve
modelling following the identification of incorrect amortisation of
the liquidity reserve by the servicer. The reserve has been
incorrectly amortising since the March 2024 payment date when the
class F notes stopped amortising, contradicting the documentation.
Fitch modelled the reserve amortisation according to the
documentation, resulting in modelled cash flow dynamics deviating
from the actual cash flow dynamics.
The model error correction involves incorporating the correcting
measure of topping up the reserve using available interest funds to
the target amount as of the March 2024 payment date. The reserve
will be static thereafter due to an irreversible breach of a
sequential payment trigger. Consequently, the PDLs will increase
while the reserve is replenished, resulting in a weakening of the
class F notes' position. In addition, generally limited excess
spread is a driver of the downgrade of the class F notes.
Relatively High Portfolio Defaults: Unlike the older SC Germany
Consumer transactions, SCGC 2023's portfolio defaults are still
trending upwards with a noticeable increase in defaults in the last
few periods. The high arrears also indicate that defaults will
remain high. However, Santander's book shows signs of stabilisation
from 2023, indicating possible performance stabilisation.
Consequently, Fitch has kept its default assumptions unchanged but
will monitor the performance closely and potentially increase the
default assumption if the trend continues. The senior notes'
ratings can withstand slightly higher defaults than currently
expected.
Low Excess Spread: SCGC 2023 is reporting negative excess spread as
a result of high defaults. It has an uncleared PDL that has been
increasing and is about EUR7.8 million (2% of the total outstanding
asset balance). As Fitch expects PDLs to increase more than
expected due to the combination of high defaults and topping up of
the reserve in the next few periods, further amortisation of SCGC
2023's class F notes from excess spread is improbable.
Repayment of the class F notes is therefore dependent on default
timing and availability of funds at the end of the transaction's
life, when the notes will also receive principal allocations. Fitch
has downgraded the notes to 'B-sf' as material default risk is
present with only a limited margin of safety, commensurate with
Fitch's 'B-sf' rating definition and the model-implied rating. A
further downgrade is possible, if excess spread remains weak and
defaults continue to be high. This is reflected in the Negative
Outlook.
CE Counterbalances Higher Defaults: The impact of high defaults and
low excess spread on the class A to D notes has been largely offset
by the steady build-up of credit enhancement (CE) for these notes.
The switch to sequential amortisation and quicker deleveraging of
the notes during pro rata amortisation have contributed to
increased CE. Nevertheless, there are uncertainties regarding the
transaction's performance. Fitch has consequently affirmed the
class A to D notes instead of upgrading them.
Servicing Disruption Risks Addressed: The transaction has a fully
funded reserve that is currently below the target amount as per the
documentation. The current reserve amount is nevertheless
sufficient to cover payment interruption risk for at least three
months, in line with its criteria. Since the reserve is now a
static reserve, the payment interruption risk coverage is expected
to only increase.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
A further weakening of borrowers' debt servicing capacity beyond
Fitch's expectations could result in higher-than-expected defaults,
negatively affecting the transaction's performance.
Lower-than-expected recoveries would also have a negative impact on
the transaction's performance due to large asset pool losses and
low available funds to clear PDLs. Sensitivities to higher default
rates and lower recoveries are shown below.
Expected impact on the notes' ratings of increased defaults (class
A/B/C/D/E/F)
Increase default rates by 10%:
'AAAsf'/'AAsf'/'Asf'/'BBBsf'/'BBsf'/'NRsf'
Increase default rates by 25%:
'AAAsf'/'AAsf'/'Asf'/'BBBsf'/'B-sf'/'NRsf'
Expected impact on the notes' ratings of reduced recoveries (class
A/B/C/D/E/F)
Reduce recovery rates by 10%:
'AAAsf'/'AAsf'/'Asf'/'BBBsf'/'BBsf'/'B-sf'
Reduce recovery rates by 25%:
'AAAsf'/'AAsf'/'Asf'/'BBBsf'/'BBsf'/'CCCsf'
Expected impact on the notes' ratings of increased defaults and
reduced recoveries (class A/B/C/D/E/F)
Increase default rates by 10% and reduce recovery rates by 10%:
'AAAsf'/'AAsf'/'Asf'/'BBBsf'/'BB-sf'/'NRsf'
Increase default rates by 25% and reduce recovery rates by 25%:
'AA+sf'/'AAsf'/'Asf'/'BBBsf'/'CCCsf'/'NRsf'
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
The notes could benefit from an improvement in the macroeconomic
dynamics resulting in a reduction in defaults. Smaller asset pool
losses and higher available funds resulting from
higher-than-expected recoveries would also be beneficial to the
notes
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
SC Germany S.A., Compartment Consumer 2023-1
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.
Prior to the transaction closing, Fitch reviewed the results of a
third party assessment conducted on the asset portfolio information
and concluded that there were no findings that affected the rating
analysis.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
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I R E L A N D
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PENTA CLO 17: Fitch Assigns 'B-sf' Final Rating on Class F-R Notes
------------------------------------------------------------------
Fitch Ratings has assigned Penta CLO 17 DAC's reset notes final
ratings.
Entity/Debt Rating
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Penta CLO 17 DAC
Class A-R XS3289697776 LT AAAsf New Rating
Class B-R XS3289698071 LT AAsf New Rating
Class C-R XS3289698238 LT Asf New Rating
Class D-R XS3289698402 LT BBB-sf New Rating
Class E-R XS3289698741 LT BB-sf New Rating
Class F-R XS3289699046 LT B-sf New Rating
Class X-R XS3289697420 LT AAAsf New Rating
Class Z XS3289699475 LT NRsf New Rating
Transaction Summary
Penta CLO 17 DAC is a securitisation of mainly senior secured loans
and secured senior bonds (at least 90%), with a component of senior
unsecured, mezzanine and second-lien loans. The refinancing note
proceeds have been used to redeem the existing notes except the
subordinated notes. The portfolio is actively managed by Partners
Group CLO Advisers LP. The CLO has a 4.7-year reinvestment period
and an 8.5-year weighted average life (WAL) test.
KEY RATING DRIVERS
Average Portfolio Credit Quality (Neutral): Fitch assesses the
average credit quality of obligors to be in the 'B' category. The
Fitch weighted average rating factor of the identified portfolio is
24.7.
High Recovery Expectations (Positive): At least 90% of the
portfolio comprises senior secured obligations. Fitch views the
recovery prospects for these assets as more favourable than for
second-lien, unsecured and mezzanine assets. The Fitch weighted
average recovery rate of the identified portfolio is 59.9%.
Diversified Asset Portfolio (Positive): The transaction will
include various concentration limits in the portfolio, including a
top 10 obligor concentration limit of 20% and a maximum exposure to
the three largest (Fitch-defined) industries in the portfolio of
40%. These covenants ensure the asset portfolio will not be exposed
to excessive concentration.
Portfolio Management (Neutral): The transaction will have a
4.7-year reinvestment period and reinvestment criteria similar to
those of other European transactions. Fitch's analysis is based on
a stressed-case portfolio with the aim of testing the robustness of
the transaction structure against its covenants and portfolio
guidelines.
The transaction includes three Fitch test matrix sets, each
comprising two matrices that correspond to two fixed-rate asset
limits of 5% and 10%. All matrices correspond to a top 10 obligor
limit at 20%. One set is effective at closing, corresponding to an
8.5-year WAL test. Another set, which corresponds to a 7.5-year WAL
test, is effective 12 months after closing. The third set
corresponds to a seven-year WAL test and is effective 18 months
after closing. Switching to the forward matrices is subject to the
satisfaction of the reinvestment target par condition.
Cash Flow Modelling (Positive): The WAL used for the transaction's
stress portfolio analysis has been reduced by one year, down to 7.5
years. This accounts for the strict reinvestment conditions
envisaged by the transaction after its reinvestment period. These
conditions include passing both the coverage tests and the Fitch
'CCC' maximum limit, together with a WAL covenant that gradually
steps down before and after the end of the reinvestment period.
Fitch believes these conditions would reduce the effective risk
horizon of the portfolio during the stress period.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
A 25% increase of the mean default rate (RDR) across all ratings
and a 25% decrease of the recovery rate (RRR) across all ratings of
the identified portfolio would have no impact on the class A notes
and lead to downgrades of no more than one notch for the class
B,C,D, and E notes and to below 'B-sf' for the class F notes.
Based on the identified portfolio, downgrades may occur if the loss
expectation is larger than initially assumed, due to unexpectedly
high levels of default and portfolio deterioration. Due to the
better metrics and shorter life of the identified portfolio than
the Fitch-stressed portfolio, the class B, C, D, E, and F notes
display rating cushions of two notches. The class A notes have no
rating cushion.
Should the cushion between the identified portfolio and the
Fitch-stressed portfolio be eroded either due to manager trading or
negative portfolio credit migration, a 25% increase of the mean RDR
across all ratings and a 25% decrease of the RRR across all ratings
of the Fitch-stressed portfolio would lead to downgrades of up to
four notches for the class B to D notes and to below 'B-sf for E
and F notes.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
A 25% reduction in the mean RDR and a 25% increase in the RRR
across all ratings of the Fitch-stressed portfolio would lead to
upgrades of two notches for the class B, C, and D notes and three
notches for the class E and F notes. The class A notes are rated
'AAAsf', the highest level on Fitch's scale, and cannot be
upgraded.
During the reinvestment period, based on the Fitch-stressed
portfolio, upgrades may occur on better-than-expected portfolio
credit quality and a shorter remaining WAL test, allowing the notes
to withstand larger-than-expected losses for the transaction's
remaining life. After the end of the reinvestment period, upgrades
may result from stable portfolio credit quality and deleveraging,
leading to higher credit enhancement and excess spread to cover
losses in the remaining portfolio.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Penta CLO 17 DAC
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset pool
and the transaction. Fitch has not reviewed the results of any
third party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.
The majority of the underlying assets or risk presenting entities
have ratings or credit opinions from Fitch and/or other Nationally
Recognized Statistical Rating Organizations and/or European
Securities and Markets Authority registered rating agencies. Fitch
has relied on the practices of the relevant groups within Fitch
and/or other rating agencies to assess the asset portfolio
information or information on the risk presenting entities.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG Considerations
Fitch does not provide ESG relevance scores for Penta CLO 17 DAC.
In cases where Fitch does not provide ESG relevance scores in
connection with the credit rating of a transaction, programme,
instrument or issuer, Fitch will disclose any ESG factor that is a
key rating driver in the key rating drivers section of the relevant
rating action commentary.
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I T A L Y
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SUNRISE SPV 98: DBRS Gives Prov. BB(high) Rating on Class E Notes
-----------------------------------------------------------------
DBRS Ratings GmbH assigned provisional credit ratings to the
following classes of notes (collectively, the Rated Notes) to be
issued by Sunrise SPV 98 S.r.l. - Sunrise 2026-1 (the Issuer):
-- Class A Notes at (P) AAA (sf)
-- Class B Notes at (P) AA (sf)
-- Class C Notes at (P) A (sf)
-- Class D Notes at (P) BBB (high) (sf)
-- Class E Notes at (P) BB (high) (sf)
-- Class X Notes at (P) A (high) (sf)
Morningstar DBRS did not rate the Class M Notes (together with the
Rated Notes, the Notes) also expected to be issued in this
transaction.
The credit ratings of the Class A and Class B Notes address the
timely payment of scheduled interest and the ultimate repayment of
principal on or before the legal final maturity date. The credit
ratings of the Class C, Class D, and Class E Notes address the
ultimate payment of interest but the timely payment of scheduled
interest when they become the senior-most tranche, and the ultimate
repayment of principal on or before the legal final maturity date.
The credit rating of the Class X Notes addresses the ultimate
payment of interest and the ultimate repayment of principal on or
before the legal final maturity date.
The transaction is a securitization of fixed-rate consumer, auto
and other purpose loans granted to private individuals residing in
Italy by Agos Ducato S.p.A. (Agos). Agos is also the initial
servicer of the transaction, which has no exposure to balloon
payments or residual value.
CREDIT RATING RATIONALE
Morningstar DBRS' credit ratings are based on the following
analytical considerations:
-- The transaction's structure, including the form and sufficiency
of available credit enhancement to withstand stressed cash flow
assumptions and repay the Issuer's financial obligations according
to the terms under which the Rated Notes are issued.
-- The credit quality and the diversification of the collateral
portfolio, its historical performance and the projected performance
under various stress scenarios.
-- The operational risk review of Agos' capabilities with regard
to originations, underwriting, servicing and financial strength.
-- The transaction parties' financial strength with regard to
their respective roles.
-- The expected consistency of the transaction's structure with
Morningstar DBRS' Legal and Derivative Criteria for European and
Asia-Pacific Structured Finance Transactions methodology.
-- Morningstar DBRS' long-term sovereign credit rating on the
Republic of Italy, currently A (low) with a Stable trend.
TRANSACTION STRUCTURE
The transaction includes a six-month scheduled revolving period,
during which the Issuer is able to purchase additional loan
receivables, subject to the eligibility criteria and concentration
limits set out in the transaction documents. The revolving period
may end earlier than scheduled if certain events occur such as the
insolvency of Agos as the originator, the replacement of Agos as
the servicer, or the breach of performance triggers.
The transaction allocates collections in separate interest and
principal priorities of payments and benefits from an amortizing
payment interruption risk reserve equal to 1.1% of Rated Notes
(excluding the Class X Notes) principal balances, subject to a
floor of EUR 850,000. This reserve will be initially funded with
the (Class X) Notes issuance proceeds and can be used to cover
senior expenses, senior swap payments and interest payments on the
Rated Notes (excluding the Class X Notes) and would be replenished
in the interest waterfall. Principal funds can also be reallocated
to cover senior expenses, senior swap payments and interest
payments on the Rated Notes (excluding the Class X Notes) if the
interest collections and this reserve are not sufficient.
The transaction also benefits from a rata posticipata reserve to
supplement interest amounts that borrowers do not make during
payment holidays. This reserve will be funded through the
transaction interest waterfall if specific thresholds are breached
and will be released when the threshold breach is cured.
After the end of the revolving period, the repayment of the Notes
(excluding the Class X Notes) will be on the Class A Notes only for
six months, followed by a pro rata repayment between the Notes
(excluding the Class X Notes) until a sequential redemption event
occurs. Upon the occurrence of a sequential redemption event, the
repayment of the Notes (excluding the Class X Notes) will switch to
be sequential and non-reversible. On the other hand, the Class X
Notes will begin to be repaid with the available funds in the
interest priority of payments immediately after the transaction
closes.
Morningstar DBRS considers the interest rate risk for the
transaction to be limited as an interest rate swap is in place to
reduce the mismatch between the fixed-rate collateral and the Rated
Notes (excluding the Class X Notes).
TRANSACTION COUNTERPARTIES
Credit Agricole Corporate and Investment Bank (CA-CIB), Milan
branch is the account bank for the transaction. Based on
Morningstar DBRS' private credit ratings on CA-CIB, the downgrade
provisions outlined in the transaction documents and other
mitigating factors in the transaction structure, Morningstar DBRS
considers the risk arising from the exposure to the account bank to
be consistent with the credit ratings assigned.
CA-CIB is also the initial swap counterparty for the transaction.
CA-CIB meets the Morningstar DBRS' criteria to act in such
capacity. The transaction documents contain downgrade provisions
consistent with Morningstar DBRS' criteria.
PORTFOLIO ASSUMPTIONS
As Agos has a long operating history of consumer and auto loan
lending in Italy, Morningstar DBRS considers the performance data
to be meaningful for vintage analysis. Morningstar DBRS maintained
its expected default assumptions for each loan type and constructed
a portfolio lifetime expected gross default of 5.1% for this
transaction based on the potential portfolio migration during the
scheduled revolving period. Morningstar DBRS also maintained its
expected recovery rates of all loan types at 20% or a loss given
default (LGD) of 80%.
FINANCIAL OBLIGATIONS
Morningstar DBRS' credit ratings on the Rated Notes address the
credit risk associated with the identified financial obligations in
accordance with the relevant transaction documents. The associated
financial obligations for each of the Rated Notes are the related
interest amounts and the initial principal amounts.
Morningstar DBRS' credit ratings do not address non-payment risk
associated with contractual payment obligations contemplated in the
applicable transaction document(s) that are not financial
obligations.
Notes: All figures are in euros unless otherwise noted.
SUNRISE SPV 98: Fitch Assigns 'BB+(EXP)sf' Rating on 2 Tranches
---------------------------------------------------------------
Fitch Ratings has assigned Sunrise SPV 98 S.r.l. - Series 2026-1's
ABS expected ratings.
Entity/Debt Rating
----------- ------
Sunrise SPV 98 S.r.l
- Series 2026-1
A LT AA+(EXP)sf Expected Rating
B LT A+(EXP)sf Expected Rating
C LT BBB+(EXP)sf Expected Rating
D LT BBB(EXP)sf Expected Rating
E LT BB+(EXP)sf Expected Rating
M LT NR(EXP)sf Expected Rating
X LT BB+(EXP)sf Expected Rating
Transaction Summary
Sunrise SPV 98 S.r.l. - Series 2026-1 is the 29th public
securitisation of unsecured consumer loans originated for Italian
residents by Agos Ducato S.p.A. (A-/Stable/F1). The transaction has
a revolving period of five interest payment dates, which will end
in September 2026. The notes will then amortise sequentially until
March 2027 and switch to pro rata in April 2027.
KEY RATING DRIVERS
Sound Historical Performance: Fitch expects a weighted average (WA)
lifetime default rate of 4.6% and a WA recovery rate of 10.5% for
the portfolio at the end of the transaction's revolving period.
These assumptions take into account Agos's loan book, sound
historical vintages, default levels and the strong performance of
other Sunrise transactions, which have shown limited signs of
deterioration during periods of economic stress. At 'AA+sf', Fitch
has assigned a WA default rate of 20.9% and a WA recovery rate of
5.3%.
Mainly Unsecured Personal Loans: Around 75% of the portfolio will
consist of personal loans (limited to 78% through the revolving
period, in accordance with the transaction documents), which have
historically experienced greater loss rates than other types of
consumer loans. The rest of the portfolio will comprise auto loans,
furniture and "purpose" loans.
Initial Sequential Builds Up CE: The class A to M notes will
amortise sequentially until March 2027; they will start amortising
pro rata from the following payment date. The initial sequential
amortisation will allow credit enhancement (CE) to build up to
support the collateralised rated notes before the pro rata
amortisation begins. The notes will switch back to sequential if
certain performance triggers are breached. Its base case views a
switch to sequential amortisation as unlikely at the base case due
to the gap between its portfolio loss expectations and performance
triggers.
Excess Spread Notes' Rating Cap: The class X notes' interest and
principal will be paid from the available excess spread as the
notes are not collateralised. Excess spread notes are typically
sensitive to underlying loan performance and prepayments and cannot
achieve a rating higher than 'BB+sf'. The class X notes will start
amortising from the first payment date.
'AA+sf' Maximum Achievable Rating: The class A notes' rating is
limited by the sovereign cap for Italian structured finance
transactions at six notches above Italy's Long-Term Issuer Default
Rating (IDR; BBB+/Stable).
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
The class A notes are sensitive to changes in Italy's Long-Term
IDR. A downgrade of Italy's IDR and a downward revision of the
'AA+sf' rating cap for Italian structured finance transactions
would trigger downgrades of the notes rated at this level.
An unexpected increase in the frequency of defaults or a decrease
in the recovery rates could produce loss levels higher than the
base case. For example, a simultaneous increase in the default base
case by 25%, and a decrease in the recovery base case by 25%, would
lead to downgrades of up to two notches for the class A to E
notes.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
The class A notes are sensitive to changes in Italy's Long-Term
IDR. An upgrade of Italy's IDR and an upward revision of the
'AA+sf' rating cap for Italian structured finance transactions
could trigger upgrades of the notes rated at this level. This is
provided sufficient CE is available to withstand stresses at a
higher rating scenario.
An unexpected decrease in the frequency of defaults or an increase
in the recovery rates could produce loss levels lower than the base
case. For example, a simultaneous decrease in the default base case
by 25%, and an increase in the recovery base case by 25%, would
lead to upgrades of up to two notches for the class B to E notes.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Sunrise SPV 98 S.r.l - Series 2026-1
Fitch reviewed the results of a third party assessment conducted on
the asset portfolio information, and concluded that there were no
findings that affected the rating analysis.
Fitch conducted a review of a small targeted sample of the
originator's origination files and found the information contained
in the reviewed files to be adequately consistent with the
originator's policies and practices and the other information
provided to the agency about the asset portfolio.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the agency's
rating analysis according to its applicable rating methodologies
indicates that it is adequately reliable.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
===================
L U X E M B O U R G
===================
LSF11 BOSON: DBRS Confirms BB(low) Rating on Class C Notes
----------------------------------------------------------
DBRS Ratings GmbH confirmed its credit ratings on the notes issued
by LSF11 Boson Investments S.a.r.l. (Compartment 2) (the Issuer) as
follows:
-- Class A1 at A (sf)
-- Class A2 at A (sf)
-- Class B at BBB (high) (sf)
-- Class C notes at BB (low) (sf)
In addition, Morningstar DBRS changed the trend on Class C to
Stable from Negative. All remaining trends are Stable.
The credit ratings on the Class A1 and Class A2 notes (together,
the Class A notes) address the timely payment of interest and the
ultimate repayment of principal by the legal final maturity date.
The credit ratings on the Class B and Class C notes (together with
the Class A notes, the rated notes) address the ultimate payment of
interest and principal by the legal final maturity date.
Morningstar DBRS' credit ratings do not address Additional Note
Payments (as defined in the transaction documents). Morningstar
DBRS does not rate the Class D or Class P notes (together with the
rated notes, the notes) also issued in this transaction.
The notes are collateralized by a pool of secured Spanish
nonperforming loans (NPLs) and real estate owned assets (REOs)
originated by Banco de Sabadell S.A. (Sabadell) and acquired by
Lone Star from Sabadell via one of its subsidiaries, LSF11 Boson
Investments S.a.r.l. (Compartment 2) (formerly LSF113 S.a.r.l.; the
transferor) in December 2020 (the original purchase date). In July
2021, Sabadell and the transferor also entered into a
subparticipation agreement in respect of certain nonaccelerated
loans included in the portfolio. The transferor allocated all its
contractual positions to the Issuer in 2021.
As of the July 2021 cut-off date, the gross book value of the loan
pool was approximately EUR 626.8 million and the total outstanding
balance of the subparticipated loans was EUR 21.7 million. The
total real estate value (REV) backing the portfolio amounted to EUR
564.9 million, of which 93.8% comprised residential properties
located in Spain. About 5.4% of the real estate assets by value
were already repossessed as of the cut-off date.
Servihabitat Servicios Inmobiliarios, S.L.U. (the Servicer)
services the secured loans and REOs. Hudson Advisors Spain, S.L.U.
is the asset manager and backup administrator facilitator and, as
such, acts in an oversight and monitoring capacity, providing input
on asset resolution strategies.
CREDIT RATING RATIONALE
The credit rating actions follow a review of the transaction and
are based on the following analytical considerations:
-- Transaction performance: Assessment of the portfolio recoveries
as of October 31, 2025, with a focus on: (1) a comparison of actual
gross collections against the Servicer's initial business plan
forecast; (2) the collection performance observed over the past
months; and (3) a comparison of current performance and Morningstar
DBRS' expectations.
-- Updated business plan: The Servicer's updated business plan as
of October 2025, received in February 2026, and the comparison with
the initial collection expectations.
-- Portfolio characteristics: Loan pool composition as of 31
October 2025 and the evolution of its core features since
issuance.
-- Transaction liquidating structure: The order of priority
entails a fully sequential amortization of the notes (i.e., the
Class A2 notes will begin to amortize following the full repayment
of the Class A1 notes unless an enforcement notice has been
delivered; the Class B notes will begin to amortize following the
full repayment of the Class A2 notes, and the Class C notes will
begin to amortize following the full repayment of the Class B
notes).
-- Liquidity support: The Class A, Class B, and Class C reserve
funds provide liquidity support to the respective classes of notes
and currently stand at EUR 4.4 million, EUR 0.0 million, and EUR
0.0 million, respectively (amounts at closing of EUR 11.0 million,
EUR 1.0 million, and EUR 1.8 million, respectively, and target
amounts equivalent to 5.0%, 8.25%, and 11.0% of the outstanding
balances, respectively). The Class A Reserve fund is replenished
through the waterfall; the Class B and C Reserves are replenished
using any available funds from the interest rate cap.
-- The exposure to the transaction account bank and the downgrade
provisions outlined in the transaction documents.
Additionally, the Issuer operating expenses account, the Issuer
general account, and the REO company (ReoCo) general account are
aimed at providing support to both the Issuer and the ReoCo in
respect of operating expenses, corporate costs, servicing fees and
expenses, and subparticipation fees since inception. The accounts
were funded at closing with proceeds from the issuance of the notes
at EUR 1.0 million, EUR 2.0 million, and EUR 3.0 million,
respectively, and they are replenished on each interest payment
date (IPD) for an amount equal to the estimated budget for the
following two IPDs. The total balance of the three accounts as of
the November IPD was EUR 2.2 million.
According to the investor report dated November 2025, the principal
amounts outstanding on the Class A1, Class A2, Class B, Class C,
Class D, and Class P notes were EUR 59.0 million, EUR 20.0 million,
EUR 12.0 million, EUR 16.0 million, EUR 376.8 million, and EUR 2.0
million, respectively. The balance of the Class A1 notes has
amortized by approximately 70.5% since issuance. The current
aggregate transaction balance is EUR 485.8 million.
As of November 2025, the Class B and Class C reserve funds were
depleted, as available funds were used to pay interest on those
classes. Deferred interest currently amounts to EUR 0.5 million for
the Class B and EUR 0.8 million for Class C. Since the Additional
Note Payment Date (November 2024) the transaction has accrued
Additional Note Payments--subordinated to interest and principal
payments--of EUR 2.1 million (Class A), EUR 0.2 million (Class B),
and EUR 0.5 million (Class C).
As of October 2025, the transaction was performing significantly
below the Servicer's initial expectations. The actual cumulative
net collections (before servicing fees and corporate costs)
amounted to EUR 147.6 million, whereas the Servicer's initial
business plan estimated cumulative net collections (before
servicing fees and corporate costs) of EUR 242.6 million for the
same period. Therefore, as of October 2025, the transaction was
underperforming by EUR 95.1 million (-39.2%) compared with the
initial expectations.
At issuance, Morningstar DBRS estimated cumulative net collections
(before servicing fees and corporate costs) for the same period of
EUR 76.4 million, EUR 77.4 million, EUR 82.4 million, and EUR 83.4
million at the A (low) (sf), BBB (high) (sf), BB (high) (sf), and
BB (sf) stressed scenarios, respectively. Therefore, as of November
2025, the transaction was performing above Morningstar DBRS'
initial stressed scenarios.
Pursuant to the requirements set out in the receivable servicing
agreement, an updated portfolio business plan was approved and
delivered in February 2026. The updated portfolio business plan,
combined with the actual cumulative net collections as of October
2025, resulted in total collections of EUR 372.4 million, which is
14.0% lower than the total net disposition proceeds of EUR 432.8
million estimated in the initial business plan. Excluding actual
net collections, the Servicer's expected future net collections
from November 2025 account for EUR 216.7 million. Morningstar DBRS'
updated credit rating stresses of A (sf), BBB (high) (sf), and BB
(low) (sf) assume a haircut of 37.1%, 34.2%, and 26.0%,
respectively, to the Servicer's updated business plan, considering
future expected net collections.
The Class A1, A2, B and C Notes may pass higher credit rating
stress scenarios; however, Morningstar DBRS believes that higher
credit ratings would not be commensurate with the risk of the
transaction considering (i) the cumulative underperformance
relative to the executed business plan, (ii) the exposure to the
transaction account bank and the downgrade provisions outlined in
the transaction documents and (iii) the lack of a cash reserve for
Class B and Class C Notes and therefore liquidity support following
redemption of the Class A notes.
The trend change on the Class C notes to Stable from Negative
reflects the material improvement in collateralization and
stabilization of performance since last year.
The final maturity date of the transaction is November 30, 2060.
Notes: All figures are in euros unless otherwise noted.
=====================
N E T H E R L A N D S
=====================
ACCELL GROUP: Fitch Cuts IDR to 'RD'; Hikes to 'CC'; Withdraws All
------------------------------------------------------------------
Fitch Ratings has downgraded Accell Group Holding B.V.'s Long-Term
Issuer Default Rating (IDR) to 'RD' (Restricted Default), from
'CCC', following a change in payment terms that Fitch views as a
distressed debt exchange (DDE). Fitch has subsequently upgraded
Accell's IDR to 'CC'.
Fitch has downgraded Accell's EUR274 million super senior debt
rating to 'CCC' from 'B' and subsequently upgraded it to 'CCC+'.
The Recovery Rating remains at 'RR1'. Fitch has also downgraded the
senior secured rating of its EUR394 million 1.5-lien facility to
'C' from 'CCC+' and the second-lien rating on its EUR84 million
term loan B (TLB) to 'C' from 'CC'. The Recovery Rating for the
1.5-lien facility has been revised to 'RR5' from 'RR3' while that
for the TLB remains at 'RR6'.
The rating reflects Accell's ongoing debt restructuring, which will
likely result in a DDE under Fitch's criteria.
Fitch has withdrawn the ratings for commercial reasons and will no
longer provide ratings or analytical coverage of the company.
Key Rating Drivers
'RD' On Payment Terms Deterioration: The downgrade to 'RD' follows
the conversion to non-cash payment from cash of Acccell's EUR100
million additional super senior facility obtained in August 2025.
Fitch views this as a material reduction in terms for existing
super senior lenders, which Fitch believes was conducted to avoid
an eventual probable payment default and so treat it as a DDE under
its criteria.
Ongoing Debt Restructuring: The subsequent IDR upgrade to 'CC'
reflects the announced restructuring, which includes material debt
write down. Temporary waivers and forbearance provisions for any
potential missed interest payments or breaches of liquidity
covenants under the existing financing agreements have been put in
place in a recapitalisation support agreement as a pathway to a new
financing agreement.
The recapitalisation plan, which was announced on 18 February 2026,
has a target completion in March 2026. Fitch expects the plan,
which Fitch views as a DDE, to reduce debt by EUR470 million-500
million from the Fitch-calculated EUR895 million, with shareholders
providing new money.
Limited Funding Access; Poor Liquidity: Accell completed a debt
restructuring in February 2025, when it reduced nearly 50% of its
gross debt. Fitch considers Accell to have limited financial
flexibility, given its reliance on shareholder support or fresh
external funding and limited assets availability that could be
monetised. Fitch expects Accell's liquidity to remain weak in
2026-2027 due to ongoing operational pressures and cash burn with
currently unclear operational restructuring prospects.
Peer Analysis
Accell's ratings are driven by the ongoing debt restructuring
process.
Fitch’s Key Rating-Case Assumptions
Fitch is unable to provide meaningful rating case assumptions
without an assessment of an updated restructuring plan.
Corporate Rating Tool Inputs and Scores
Fitch scored the issuer as follows, using its Corporate Rating Tool
(CRT) to produce the Standalone Credit Profile (SCP):
- Business and financial profile factors (assessment, relative
importance): Management (ccc+, Moderate), Sector Characteristics
(b+, Moderate), Market and Competitive Positioning (ccc+,
Moderate), Diversification and Asset Quality (bb+, Lower), Company
Operational Characteristics (bb+, Lower), Profitability (ccc-,
Higher), Financial Structure (ccc-, Higher), and Financial
Flexibility (ccc-, Higher).
- The quantitative financial subfactors are based on standard CRT
financial period parameters: 20% weight for the latest historical
year 2024, 40% for the forecast year 2025 and 40% for the forecast
year 2026.
- Weakest link considerations adjustment is applied based on the
access to capital factor and results in no adjustment.
- B+ to CC considerations apply in its analysis and result in an
adjustment of -1 notch(es).
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bbb+' results in no
adjustment.
- The SCP is 'cc'.
Recovery Analysis
Its recovery analysis assumes Accell would be reorganised as a
going concern (GC) in bankruptcy rather than liquidated. Fitch
assumes a 10% administrative claim. Fitch estimates GC EBITDA at
EUR75 million, which reflects its view of Accell's underlying
earning capacity, supported by its attractive product offering and
brand value.
Fitch uses an enterprise value/EBITDA multiple of 5x to calculate a
post-reorganisation valuation, which takes into account Accell's
position as an industry leader with attractive long-term demand
fundamentals. This should allow it to benefit from positive market
trends once current operational and market challenges are
resolved.
Fitch views Accell's EUR274 million super senior secured facility
(including an additional EUR100 million obtained in 2H25) as
ranking senior to its EUR394 million 1.5-lien facility, both due in
May 2030, and senior to its EUR84 million second-lien facility, due
in June 2031. Fitch views Accell's EUR100 million securitisation
facility and EUR110 million asset-backed loan as being available
during and after distress, based on Accell's record of access to
these asset-backed facilities during 2023 and 2024.
The waterfall analysis generated a ranked recovery for the EUR274
million super senior facility in the 'RR1' band, indicating a
'CCC+' rating; for the EUR394 million 1.5 lien facility in the
'RR5' band, indicating a 'C' rating; and for the EUR83.4 million
second-lien facility in the 'RR6' band, indicating a 'C' rating.
RATING SENSITIVITIES
Not applicable as the ratings have been withdrawn.
Liquidity and Debt Structure
Fitch estimates Accell's freely available cash balance was limited
at EUR12 million at end-2025, after restricting EUR15 million for
daily operational purposes. Its asset-backed loan and
securitisation facilities will be due in 2028, while most of its
debt is due in 2030 and 2031. This provides maturity headroom, but
Fitch still view the capital structure as inappropriate due to
material operating underperformance and cash losses.
Issuer Profile
Accell the leader in Europe market in the e-bike segment with a
recognised brand and product offering. It is a major supplier of
bicycle parts and accessories.
MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS
Fitch's latest quarterly Global Corporates Sector Forecasts Monitor
data file which aggregates key data points used in its credit
analysis. Fitch's macroeconomic forecasts, commodity price
assumptions, default rate forecasts, sector key performance
indicators and sector-level forecasts are among the data items
included.
Climate Vulnerability Signals
The results of its Climate.VS screener did not indicate an elevated
risk for Accell.
ESG Considerations
Accell has an ESG Relevance Score of '4'[+] for GHG Emissions & Air
Quality due to its offering of environment-friendly products, which
has a positive impact on the credit profile, and is relevant to the
rating[s] in conjunction with other factors.
Accell has an ESG Relevance Score of '4' for Management Strategy
due to weaker-than-expected strategy implementation, which has a
negative impact on the credit profile, and is relevant to the
rating[s] in conjunction with other factors.
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
Following the rating withdrawal, Fitch will longer provide ESG
scores for Accell.
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
Accell Group
Holding B.V.
LT IDR RD Downgrade CCC
LT IDR CC Upgrade
LT IDR WD Withdrawn
super senior LT CCC Downgrade RR1 B
super senior LT CCC+ Upgrade RR1
super senior LT WD Withdrawn
sr secured 3rd lien LT C Downgrade RR6 CC
sr secured 3rd lien LT WD Withdrawn
sr secured 2nd lien LT C Downgrade RR5 CCC+
sr secured 2nd lien LT WD Withdrawn
ACCELL GROUP: Moody's Withdraws 'Caa3' Corporate Family Rating
--------------------------------------------------------------
Moody's Ratings has withdrawn Accell Group Holding B.V.'s (Accell
or the company) Caa3 long-term corporate family rating, Caa3-PD
probability of default rating, Caa1 rating on the EUR167 million
backed senior secured term loan, and Ca ratings on the EUR376
million backed senior secured term loan and EUR80.2 million backed
senior secured second-lien term loan. The outlook was stable prior
to the withdrawal.
RATINGS RATIONALE
Moody's have decided to withdraw the rating(s) following a review
of the issuer's request to withdraw its rating(s).
Accell is a leading European bicycle manufacturer with a strong
focus on e-bikes. The company also sells bike parts and
accessories, traditional bikes and cargo bikes, and it generates
approximately 70% of its revenues in Central Europe and Benelux.
Following the restructuring transaction completed in February 2025,
the company is owned by a consortium which includes private equity
firm KKR & Co. Inc. (KKR), Teslin Alpine Acquisition B.V. and
certain lenders which participated in the debt restructuring.
===============
P O R T U G A L
===============
LUSITANO MORTGAGES 5: Fitch Affirms 'BBsf' Rating on Cl. D Notes
----------------------------------------------------------------
Fitch Ratings has upgraded Lusitano Mortgages No.4 Plc (LM4) class
D notes and Lusitano Mortgages No.5 plc (LM5) class B and C notes.
It has also upgraded Lusitano Mortgages No.6 Limited (LM6) class C
notes. The Outlooks on all tranches are Stable.
Entity/Debt Rating Prior
----------- ------ -----
Lusitano Mortgages
No.5 plc
Class A XS0268642161 LT AAAsf Affirmed AAAsf
Class B XS0268642831 LT AA+sf Upgrade AA-sf
Class C XS0268643649 LT A+sf Upgrade Asf
Class D XS0268644886 LT BBsf Affirmed BBsf
Lusitano Mortgages
No.6 Limited
Class A XS0312981649 LT AAAsf Affirmed AAAsf
Class B XS0312982290 LT AAAsf Affirmed AAAsf
Class C XS0312982530 LT AAAsf Upgrade AA+sf
Class D XS0312982704 LT CCCsf Affirmed CCCsf
Class E XS0312983009 LT CCsf Affirmed CCsf
Lusitano Mortgages
No.4 Plc
Class A XS0230694233 LT A+sf Affirmed A+sf
Class B XS0230694589 LT A+sf Affirmed A+sf
Class C XS0230695552 LT A+sf Affirmed A+sf
Class D XS0230696360 LT Asf Upgrade BBB+sf
Transaction Summary
The three static Portuguese RMBS transactions comprise residential
mortgages originated and serviced by Novo Banco, S.A. (BBB/Rating
Watch Positive/F3).
KEY RATING DRIVERS
Concentration Risk Caps LM4 Ratings: Fitch expects LM4 to continue
amortising pro-rata until maturity, when the reserve fund will be
the only reliable source of CE. Hence, the ratings are constrained
by the creditworthiness of the reserve fund account holder
(Citibank N.A., London Branch). In its counterparty assessment,
Fitch has considered the rating of the parent company, Citibank
N.A. (A+/Stable), as the branch's host country has a Country
Ceiling (XX) that is higher than the parent's rating.
Increasing Credit Enhancement: The notes are sufficiently protected
by credit enhancement (CE) to absorb the projected losses
commensurate with the current ratings. Fitch expects structural CE
to increase in the short-to-medium term for LM6 due to its
prevailing sequential amortisation, while Fitch expects CE to
continue increasing modestly for LM4 and LM5 due to their static
cash reserves and pro-rata amortisation.
Stable Performance: The transactions have seen stable asset
performance over the past 12 months. The proportion of loans in
more than 90 days arrears remained broadly stable (ranging between
0.2% for LM4 and 0.3% for LM5 of the current portfolio balances as
of the latest reporting dates). The cumulative default rate ranges
between 7.4% for LM4 and 11.7% for LM6, which is higher than the
market average but has been stabilising over the last four years.
Payment Interruption Risk Mitigated: Fitch views payment
interruption risk as mitigated in a servicer disruption in the
Lusitano transactions. Fitch deems the available liquidity
mitigants as sufficient to cover stressed senior costs and notes
interest due amounts while an alternative servicer arrangement is
being implemented. Other mitigants include a daily sweep of cash
collections from the servicer into the special purpose vehicle
account bank, and the availability of principal collections on the
portfolio to cover any interest shortfalls under certain
circumstances.
While the reserve fund balances were volatile in the past, they
have recovered and have been at target balance since September 2017
for LM4 and January 2021 for LM5. The cash reserve is below target
for LM6, although it is slowly being replenished as excess spread
is low, due to performance deterioration since launch. However, LM6
also has a dedicated liquidity reserve.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative
Rating Action/Downgrade
A downgrade of the Portuguese sovereign Long-Term IDRs could lower
the maximum achievable rating for Portuguese structured finance
transactions, leading to a downgrade of LM5's class A notes and
LM6's class A to C notes.
Fitch found that a 15% increase in the weighted average foreclosure
frequency and a 15% decrease in the weighted average recovery rate
would lead to downgrades of up to three notches for LM4 and up to
five notches for LM5.
Factors that Could, Individually or Collectively, Lead to Positive
Rating Action/Upgrade
Notes at 'AAAsf' are at the highest rating achievable for
Portuguese transactions and therefore cannot be upgraded. For other
class notes, an increase in CE as the transactions deleverage to
fully compensate the credit losses and cash flow stresses that are
commensurate with higher ratings would result in upgrades.
USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10
Form ABS Due Diligence-15E was not provided to, or reviewed by,
Fitch in relation to this rating action.
DATA ADEQUACY
Fitch has checked the consistency and plausibility of the
information it has received about the performance of the asset
pools and the transactions. Fitch has not reviewed the results of
any third-party assessment of the asset portfolio information or
conducted a review of origination files as part of its ongoing
monitoring.
Fitch did not undertake a review of the information provided about
the underlying asset pools ahead of the transactions' closing. The
subsequent performance of the transactions over the years is
consistent with the rating agency's expectations given the
operating environment and Fitch is therefore satisfied that the
asset pool information relied upon for its initial rating analysis
was adequately reliable.
Overall, and together with any assumptions referred to above,
Fitch's assessment of the information relied upon for the rating
agency's rating analysis according to its applicable rating
methodologies indicates that it is adequately reliable.
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless
otherwise disclosed in this section. A score of '3' means ESG
issues are credit-neutral or have only a minimal credit impact on
the entity, either due to their nature or the way in which they are
being managed by the entity. Fitch's ESG Relevance Scores are not
inputs in the rating process; they are an observation on the
relevance and materiality of ESG factors in the rating decision.
===========================
U N I T E D K I N G D O M
===========================
C. FULLARD: Leonard Curtis Appointed as Joint Administrators
------------------------------------------------------------
C. Fullard (Metals) Limited was placed into administration in the
High Court of Justice, Business and Property Courts in Manchester,
Insolvency & Companies List (ChD), Court Number CR-2026-MAN-000218.
Conrad Beighton (IP No. 9556) and Kirsty Swan (IP No. 30210) of
Leonard Curtis were appointed as Joint Administrators on February
17, 2026.
C. Fullard (Metals) Limited engaged in the wholesale of waste and
scrap.
The company's registered office and principal trading address is at
Unit 60/64, Owen Road Industrial Estate, Owen Road, Willenhall,
West Midlands, WV13 2PZ.
The Joint Administrators can be reached at:
Conrad Beighton (IP No. 9556)
Kirsty Swan (IP No. 30210)
Leonard Curtis
Cavendish House
39-41 Waterloo Street
Birmingham, B2 5PP
For further details, contact:
Cameron Ford
Tel: 0121 200 2111
Email: recovery@leonardcurtis.co.uk
IMMEDIA BROADCAST: RSM UK Appointed as Joint Administrators
-----------------------------------------------------------
Immedia Broadcast Limited, was placed into administration in the
High Court of Justice, Business and Property Courts, Court Number
CR-2026-1068. Glen Carter (IP No. 26072) and Gareth Harris (IP No.
14412) of RSM UK Restructuring Advisory LLP were appointed as Joint
Administrators on February 20, 2026.
Immedia Broadcast Limited engaged in video production activities
and sound recording and music publishing activities.
The company's registered office is c/o RSM UK Restructuring
Advisory LLP, Highfield Court, Tollgate, Chandlers Ford, Eastleigh,
SO53 3TY.
The company's principal trading address is at 7-9 The Broadway,
Newbury, RG14 1AS.
The Joint Administrators can be reached at:
Glen Carter (IP No. 26072)
RSM UK Restructuring Advisory LLP
Highfield Court, Tollgate
Chandlers Ford, Eastleigh, SO53 3TY
Gareth Harris (IP No. 14412)
RSM UK Restructuring Advisory LLP
Central Square, 5th Floor
29 Wellington Street
Leeds, LS1 4DL
Correspondence address & contact details of case manager:
Garry Lee
RSM UK Restructuring Advisory LLP
Highfield Court, Tollgate
Chandlers Ford, Eastleigh, SO53 3TY
Tel: 023 8064 6464
For further details, contact:
Glen Carter
Tel: 023 8064 6464
Gareth Harris
Tel: 0113 285 5000
MILES TOOL: Milsted Langdon Appointed as Joint Administrators
-------------------------------------------------------------
Miles Tool & Machinery Centre Limited was placed into
administration in the High Court of Justice, Business and Property
Courts in Bristol, Insolvency and Companies List (ChD), Court
Number CR-2026-BRS-000019. Richard Warwick (IP No. 9741) and
Rachel Hotham (IP No. 12510) of Milsted Langdon LLP were appointed
as Joint Administrators on February 23, 2026.
Miles Tool & Machinery Centre Limited engaged in the retail sale of
hardware, paints and glass in specialised stores.
The company's registered office is at Winchester House, Deane Gate
Avenue, Taunton, Somerset, TA1 2UH.
The company's principal trading address is at Unit 18 Oxford Road,
Pen Mill Trading Estate, Yeovil, Somerset, BA21 5HR.
The Joint Administrators can be reached at:
Richard Warwick (IP No. 9741)
Rachel Hotham (IP No. 12510)
Milsted Langdon LLP
Winchester House
Deane Gate Avenue
Taunton, Somerset, TA1 2UH
For further details, contact:
Jason Bevan
Tel: 01823 445566
Email: jbevan@milstedlangdon.co.uk
===============
X X X X X X X X
===============
[] Fitch Affirms Ratings on 10 Western European Telecom Cos.
------------------------------------------------------------
Fitch Ratings has affirmed 10 Western European telecoms companies
and their associated entities' ratings.
The companies are eircom Holdings (Ireland) Limited, Telefonica SA,
Orange S.A., Deutsche Telekom AG, Nuuday A/S, Royal KPN N.V.,
Vodafone Group Plc, Telecom Italia S.p.A., Telekom Austria AG, BT
Group plc.
These actions follow the update of Fitch's Corporate Rating
Criteria and the Sector Navigators - Addendum to the Corporate
Rating Criteria on January 9, 2026. The companies' ratings and
Outlooks are unaffected by the criteria changes.
Corporate Rating Tool Inputs and Scores
Fitch scored the issuers as follows, using its Corporate Rating
Tool (CRT) to produce the Standalone Credit Profile (SCP):
eircom Holdings (Ireland) Limited
- Business and financial profile factors (assessment, relative
importance): Management (bbb, Lower), Sector Characteristics (bbb,
Lower), Market and Competitive Positioning (bb, Higher),
Diversification and Asset Quality (bbb-, Moderate), Company
Operational Characteristics (bb+, Moderate), Profitability (bb+,
Lower), Financial Structure (b+, Higher), and Financial Flexibility
(bb-, Moderate).
- The quantitative financial subfactors are based on standard CRT
financial period parameters: 20% weight for the latest historical
year 2024, 40% for the forecast year 2025 and 40% for the forecast
year 2026.
- B+ to CC considerations apply in its analysis and result in an
adjustment of -1 notch.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'a-' results in no
adjustment.
- The SCP is 'b+'.
Telefonica SA
- Business and financial profile factors (assessment, relative
importance): Management (bbb, Lower), Sector Characteristics (bbb,
Lower), Market and Competitive Positioning (a-, Higher),
Diversification and Asset Quality (a, Higher), Company Operational
Characteristics (a-, Moderate), Profitability (bb+, Moderate),
Financial Structure (bbb-, Higher), and Financial Flexibility (a-,
Lower).
- The quantitative financial subfactors are based on standard CRT
financial period parameters: 20% weight for the latest historical
year 2024, 40% for the forecast year 2025 and 40% for the forecast
year 2026.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bbb+' results in no
adjustment.
- The SCP is 'bbb'.
Orange S.A.
- Business and financial profile factors (assessment, relative
importance): Management (bbb, Lower), Sector Characteristics (bbb,
Lower), Market and Competitive Positioning (a-, Higher),
Diversification and Asset Quality (a, Higher), Company Operational
Characteristics (a, Moderate), Profitability (bbb, Moderate),
Financial Structure (bbb-, Higher), and Financial Flexibility (a-,
Lower).
- The quantitative financial subfactors are based on custom CRT
financial period parameters: 20% weight for the forecast year 2025,
40% for the forecast year 2026 and 40% for the forecast year 2027.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'a' results in no
adjustment.
- The SCP is 'bbb+'.
Deutsche Telekom AG
- Business and financial profile factors (assessment, relative
importance): Management (bbb, Lower), Sector Characteristics (bbb,
Lower), Market and Competitive Positioning (a, Higher),
Diversification and Asset Quality (a, Higher), Company Operational
Characteristics (a, Moderate), Profitability (a-, Moderate),
Financial Structure (bbb, Higher), and Financial Flexibility (bbb+,
Lower).
- The quantitative financial subfactors are based on custom CRT
financial period parameters: 20% weight
for the forecast year 2025, 40% for the forecast year 2026 and 40%
for the forecast year 2027.
- The Governance Impact assessment of 'Good' results in no
adjustment.
- The Operating Environment Impact assessment of 'aa-' results in
no adjustment.
- The SCP is 'bbb+'.
Nuuday A/S
- Business and financial profile factors (assessment, relative
importance): Management (bb+, Lower), Sector Characteristics (bbb,
Lower), Market and Competitive Positioning (bb+, Higher),
Diversification and Asset Quality (bbb-, Moderate), Company
Operational Characteristics (b+, Moderate), Profitability (b-,
Higher), Financial Structure (b-, Moderate), and Financial
Flexibility (b, Higher).
- The quantitative financial subfactors are based on custom CRT
financial period parameters: 20% weight for the forecast year 2025,
40% for the forecast year 2026 and 40% for the forecast year 2027.
- B+ to CC considerations apply in its analysis and result in no
adjustment.
- The Governance Impact assessment of 'Some Deficiencies' results
in no adjustment.
- The Operating Environment Impact assessment of 'aa-' results in
no adjustment.
- The SCP is 'b'.
To derive the IDR:
- Application of Fitch's Parent Subsidiary Linkage Considerations
Rating Criteria results in a consolidated profile+1 approach.
Royal KPN N.V.
- Business and financial profile factors (assessment, relative
importance): Management (bbb, Lower), Sector Characteristics (bbb,
Lower), Market and Competitive Positioning (bbb+, Higher),
Diversification and Asset Quality (bbb-, Moderate), Company
Operational Characteristics (a, Moderate), Profitability (bbb+,
Moderate), Financial Structure (bbb, Higher), and Financial
Flexibility (a-, Lower).
- The quantitative financial subfactors are based on custom CRT
financial period parameters: 20% weight for the forecast year 2025,
40% for the forecast year 2026 and 40% for the forecast year 2027.
- The Governance Impact assessment of 'Good' results in no
adjustment.
- The Operating Environment Impact assessment of 'aa-' results in
no adjustment.
- The SCP is 'bbb'
Vodafone Group Plc
- Business and financial profile factors (assessment, relative
importance): Management (bbb, Lower), Sector Characteristics (bbb,
Lower), Market and Competitive Positioning (bbb, Higher),
Diversification and Asset Quality (a, Higher), Company Operational
Characteristics (a-, Moderate), Profitability (bbb-, Moderate),
Financial Structure (bbb-, Higher), and Financial Flexibility
(bbb+, Lower).
- The quantitative financial subfactors are based on standard CRT
financial period parameters: 20% weight for the latest historical
year 2024, 40% for the forecast year 2025 and 40% for the forecast
year 2026.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bbb+' results in no
adjustment.
- The SCP is 'bbb'.
Telecom Italia S.p.A.
- Business and financial profile factors (assessment, relative
importance): Management (bbb, Lower), Sector Characteristics (bbb,
Lower), Market and Competitive Positioning (bbb-, Higher),
Diversification and Asset Quality (bbb, Moderate), Company
Operational Characteristics (bb+, Moderate), Profitability (bb+,
Lower), Financial Structure (b+, Higher), and Financial Flexibility
(bb+, Moderate).
- The quantitative financial subfactors are based on custom CRT
financial period parameters: 40% weight for the forecast year 2025,
40% for the forecast year 2026 and 20% for the forecast year 2027.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'bbb-' results in no
adjustment.
- The SCP is 'bb'.
Telekom Austria AG
- Business and financial profile factors (assessment, relative
importance): Management (bbb, Lower), Sector Characteristics (bbb,
Lower), Market and Competitive Positioning (bbb+, Higher),
Diversification and Asset Quality (bbb+, Moderate), Company
Operational Characteristics (a, Moderate), Profitability (bbb,
Moderate), Financial Structure (a+, Higher), and Financial
Flexibility (a, Lower).
- The quantitative financial subfactors are based on custom CRT
financial period parameters: 20% weight for the forecast year 2025,
40% for the forecast year 2026 and 40% for the forecast year 2027.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'a-' results in no
adjustment.
- The SCP is 'a-'.
To derive the IDR:
- Application of Fitch's Parent Subsidiary Linkage Rating Criteria
results in a standalone approach.
BT Group plc.
- Business and financial profile factors (assessment, relative
importance): Management (bbb, Lower), Sector Characteristics (bbb,
Lower), Market and Competitive Positioning (bbb, Higher),
Diversification and Asset Quality (bbb-, Moderate), Company
Operational Characteristics (a, Moderate), Profitability (a-,
Lower), Financial Structure (bbb, Higher), and Financial
Flexibility (a-, Lower).
- The quantitative financial subfactors are based on standard CRT
financial period parameters: 20% weight for the latest historical
year 2024, 40% for the forecast year 2025 and 40% for the forecast
year 2026.
- The Governance assessment of 'Good' results in no adjustment.
- The Operating Environment assessment of 'aa-' results in no
adjustment
- The SCP is 'bbb'
RATING ACTIONS
Entity/Debt Rating Recovery Prior
----------- ------ -------- -----
BT Finance PLC
senior unsecured LT BBB Affirmed BBB
subordinated LT BB+ Affirmed BB+
Eircom Finco S.a r. l.
senior secured LT BB- Affirmed RR3 BB-
Telecom Italia Capital
senior unsecured LT BB Affirmed RR4 BB
Orange S.A.
LT IDR BBB+ Affirmed BBB+
ST IDR F2 Affirmed F2
senior unsecured LT BBB+ Affirmed BBB+
subordinated LT BBB- Affirmed BBB-
senior unsecured ST F2 Affirmed F2
Telefonica
Emisiones S.A.U.
senior unsecured LT BBB Affirmed BBB
subordinated LT BB+ Affirmed BB+
Telefonica Europe BV
senior unsecured LT BBB Affirmed BBB
subordinated LT BB+ Affirmed BB+
Telekom Austria AG LT IDR A- Affirmed A-
ST IDR F1 Affirmed F1
Vodafone International
Financing DAC
senior unsecured LT BBB Affirmed BBB
British
Telecommunications plc
LT IDR BBB Affirmed BBB
ST IDR F2 Affirmed F2
senior unsecured LT BBB Affirmed BBB
subordinated LT BB+ Affirmed BB+
senior unsecured ST F2 Affirmed F2
Telekom
Finanzmanagement GmbH
senior unsecured LT A- Affirmed A-
Telecom Italia S.p.A.
LT IDR BB Affirmed BB
senior unsecured LT BB Affirmed RR4 BB
Nuuday A/S
LT IDR B Affirmed B
senior secured LT BB- Affirmed RR2 BB-
Telecom Italia
Finance SA
senior unsecured LT BB Affirmed RR4 BB
eircom Holdings
(Ireland) Limited
LT IDR B+ Affirmed B+
Royal KPN N.V.
LT IDR BBB Affirmed BBB
ST IDR F2 Affirmed F2
senior unsecured LT BBB Affirmed BBB
subordinated LT BB+ Affirmed BB+
Deutsche Telekom
International
Finance B.V.
senior unsecured LT BBB+ Affirmed BBB+
Deutsche Telekom AG
LT IDR BBB+ Affirmed BBB+
ST IDR F2 Affirmed F2
senior unsecured LT BBB+ Affirmed BBB+
senior unsecured ST F2 Affirmed F2
Vodafone Group Plc
LT IDR BBB Affirmed BBB
ST IDR F2 Affirmed F2
senior unsecured LT BBB Affirmed BBB
subordinated LT BB+ Affirmed BB+
senior unsecured ST F2 Affirmed F2
BT Group plc
LT IDR BBB Affirmed BBB
ST IDR F2 Affirmed F2
eircom Finance DAC
senior secured LT BB- Affirmed RR3 BB-
Telefonica SA
LT IDR BBB Affirmed BBB
ST IDR F2 Affirmed F2
*********
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 2026. All rights reserved. ISSN 1529-2754.
This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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