260428.mbx

260428.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, April 28, 2026, Vol. 27, No. 84 Headlines D E N M A R K TDC BRANDS: Fitch Affirms 'B' Long-Term IDR, Outlook Stable F R A N C E INOVIE GROUP: Fitch Affirms 'B' LT IDR, Alters Outlook to Neg. I R E L A N D BARINGS EURO 2021-2: Moody's Cuts Rating on EUR12MM F Notes to Caa2 BNPP AM EURO 2017: Fitch Lowers Rating on Class F Notes to 'B+sf' BRIDGEPOINT CLO X: Fitch Assigns 'B-sf' Final Rating to Cl. F Notes I T A L Y LOTTOMATICA GROUP: Moody's Rates New EUR765MM Sr. Sec. Notes 'Ba2' K A Z A K H S T A N AB KAZAKHSTAN - ZIRAAT: Fitch Alters Outlook on 'B+' IDR to Stable S W E D E N POLESTAR AUTOMOTIVE: Reports $2.36 Billion Net Loss in FY 2025 T U R K E Y VESTEL ELEKTRONIK: Moody's Cuts CFR, $500M Sr. Unsec. Notes to Caa2 U N I T E D K I N G D O M ALTAYYAR HOUSE (FLAT 13): FRP Advisory, BTG Named as Administrators BAKER STREET (PR): FRP Advisory, BTG Appointed as Administrators BOND STREET (CS): FRP Advisory, BTG Appointed as Administrators BURLINGTON GATE: BTG Begbies, FRP Appointed as Joint Administrators CAMELOT UK: Moody's Affirms 'B2' CFR & Alters Outlook to Stable ENQUEST PLC: Fitch Assigns 'B' Long-Term IDR, Outlook Stable FREESIA PLACE PROPERTY: FRP Advisory, BTG Named as Administrators GREYCOAT HOUSE (GS): FRP Advisory, BTG Named as Administrators HOLBORN (WS): FRP Advisory, BTG Appointed as Joint Administrators KNIGHTSBRIDGE (BP): FRP Advisory, BTG Named as Joint Administrators MONTAGUE MANSIONS (DS): FRP Advisory, BTG Named as Administrators MUNIHIRE LCL: Kroll Advisory Appointed as Joint Administrators X X X X X X X X KYRGYZSTAN: Fitch Affirms 'B' Foreign-Currency IDR, Outlook Stable - - - - - ============= D E N M A R K ============= TDC BRANDS: Fitch Affirms 'B' Long-Term IDR, Outlook Stable ----------------------------------------------------------- Fitch Ratings has assigned TDC Brands A/S's new EUR550 million senior secured notes (SSN) a 'B+(EXP)' expected rating with a Recovery Rating of 'RR3'. Fitch has affirmed TDC Brands' Long-Term Issuer Default Rating (IDR) at 'B' with a Stable Outlook. The SSN proceeds will repay the outstanding EUR500 million term loan B (TLB; BB-/RR2) and add cash on balance sheet. The lower Recovery Rating reflects the concurrent issuance of a new EUR175 million super senior revolving credit facility (RCF), which ranks ahead of the planned notes in the debt waterfall. Fitch will withdraw the TLB rating upon full redemption. TDC Brands' IDR reflects high cash flow leverage, an asset-light business model, negative free cash flow (FCF) and competition in the Danish market, balanced by a strong domestic position in mobile, broadband and TV. The Stable Outlook reflects improving FCF generation and declining cash flow leverage over 18-24 months, as IT transformation costs abate. Key Rating Drivers Investment Costs Drive Negative FCF: Fitch expects TDC Brands' FCF to remain negative in 2026-2027, then trend closer to neutral in 2028. This primarily reflects investments needs in the product portfolio and organisational structure, including the final phase of the IT transformation programme and costs shared with TDC NET for B2B 5G advanced services. TDC Brands is likely to fund negative FCF with existing cash, a DKK350 million shareholder equity contribution, contingent on the closing of the note offering, and drawings under its RCF. Negative Cash Flow Leverage: Cash flow from operations (CFO) less capex/total debt remains a key rating constraint due to high investments. Under Fitch's base case, the ratio stays largely negative in 2026 and moves towards neutral by 2028. Fitch-defined EBITDA leverage is forecast to peak at 3.3x in 2026 after the refinancing and decline to 2.9x in 2028, leaving significant headroom against its negative sensitivity for the 'B' rating. Improved Maturity Profile: The new EUR550 million SSN maturing in 2031 should improve the maturity profile and reduce near-term refinancing risk, while funding the final stages of the IT transformation programme. The increase in the RCF to EUR175 million from EUR140 million further supports liquidity. Cost Savings Offset Margin Pressure: Fitch forecasts the EBITDA margin will bottom at 8.7% in 2026. Higher infrastructure costs for fibre/5G versus legacy products should only be partly offset by more profitable mobility services and price increases. Cost savings and lower transformation opex should support a gradual improvement in the EBITDA margin to 9.9% by 2029. Leading Market Positions: TDC Brands has leading positions in Denmark across mobile, broadband and pay-TV, supported by a strong brand portfolio in B2C and B2B. Competition is intense and the shift to a service company model increases commercial risk, but TDC Brands benefits from TDC NET's infrastructure quality and coverage and greater focus on customer satisfaction and efficiency. Access to Best Infrastructure: Long-term contracts with TDC NET support TDC Brands' access to high-quality infrastructure, especially in mobile where it is ahead in 5G. Broadband competition is strong given non-discriminatory access to TDC NET's and utilities' fibre networks. Partnerships with utility wholesale fibre providers add flexibility for expansion outside the Copenhagen region. PSL Linkage: Fitch applies Parent and Subsidiary Linkage (PSL) Rating Criteria using the stronger subsidiary and weaker parent approach. TDC Brands' financing is separate from DK Tele's, with no cross-guarantees or cross-default provisions and separate security packages. However, parent control and TDC Brands' exposure to the broader TDC Group underpin its assessment of 'open' access and control and 'porous' legal ring-fencing, resulting in a consolidated profile plus one-notch approach. Peer Analysis TDC Brands' operating profile is weaker than integrated peers such as Royal KPN N.V. (BBB/Stable) or BT Group Plc (BBB/Stable) due to its asset-light business model and weak profitability and FCF generation. TDC Brands' EBITDA margin is 8%-10% (2026-2029), versus the median for Fitch's portfolio of Western-European telecom operators of 34%-36%. TDC Brands' peer group also includes other domestically focused telecom operators like Masorange Holdco Limited (BBB-/Rating Watch Positive), PLT VII Finance S.a r.l. (Bite; B/Stable) and eircom Holdings (Ireland) Limited (B+/Stable). Different leverage thresholds across this group reflect differences in domestic competitive intensity, market positions, margins and cash flow generation. Lower margins and negative FCF are key constraints on TDC Brands' ratings. To some extent, Telecom Italia S.p.A. (TIM; BB/Positive) is a closer peer following the disposal of most of its fixed-line network assets to FiberCop S.p.A. (BB/Stable) in July 2024. As with the TDC Group split, the loss of stable and predictable network-related profits weakened TIM's operating profile. This was offset by lower debt from sales proceeds. Fitch expects EBITDA leverage and interest coverage to converge between TIM and TDC Brands. However, differences in scale, geographic footprint, mobile network ownership and the margin gap support TIM's higher rating. Fitch’s Key Rating-Case Assumptions - Low positive revenue growth between 0.6-1.0% in 2026-2029 - Fitch-defined EBITDA margin decreasing towards 8.7% in 2026 before increasing towards 9.9% in 2029 - Capex at around DKK1.2 billion in 2026 (including IT capex), gradually reducing to about DKK900 million in 2029 - Working-capital outflows at around 1.5% of revenue in 2026, falling towards 0.2% in 2027-2029 - FCF turning neutral in 2028, after being negative in 2026-2027. Negative FCF to be funded by cash balance, RCF drawings and a DKK350 million equity injection, contingent on the closing of the note offering 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 (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 standard CRT financial period parameters: 20% weight for the latest historical 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 assessment of 'Some Deficiencies' results in no adjustment. - The Operating Environment assessment of 'aa-' results in no adjustment. - The SCP is 'b'. Recovery Analysis Fitch assumes TDC Brands would be reorganised as a going concern in distress or bankruptcy rather than liquidated. The analysis assumes post-restructuring EBITDA at DKK1.0 billion, reflecting stress from intensifying market competition and failure to deliver planned cost savings. A distressed enterprise value multiple of 4.0x is used to calculate a post-restructuring valuation. The analysis deducts 10% for administrative claims and allocates the residual value under a debt waterfall. The assumed fully drawn EUR175 million super senior RCF ranks ahead of the EUR550 million SSN (DKK4,106 million equivalent). The assumptions result in a recovery outcome within the 'RR3' range, supporting a 'B+' instrument rating for the planned SSNs. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Weakening of DK Tele and TDC Brands' consolidated credit profile - EBITDA leverage sustained above 4.5x - Continued deteriorating profitability, with Fitch-defined EBITDA margin reducing to below 8.4% in the short term, and expectations that FCF will not be neutral by 2028 - Weak liquidity, including continued reliance on the RCF to fund negative FCF Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - CFO less capex at more than 3% of total debt, reflecting a stable competitive market position and a normalising capex profile - Improving profitability to further strengthen the business model - EBITDA leverage sustained below 3.5x - An improved consolidated credit profile of DK Tele combined with TDC Brands - Weakening of access and control, or legal ties between DK Tele and TDC Brands Liquidity and Debt Structure At end-2025, TDC Brands' liquidity comprised DKK100 million cash and an undrawn EUR140 million (about DKK1,045 million) RCF. Following the transaction, the committed RCF is assumed to increase to EUR175 million. Fitch forecasts negative FCF of about DKK800 million in 2026-2027 due to high capex linked to the IT transformation programme. Fitch assumes negative FCF will be funded by cash on balance sheet, a DKK350 million shareholder equity injection, contingent on the closing of the note offering, and drawings under the RCF if needed. After the refinancing, the debt maturity will be extended to 2031 from 2028. Issuer Profile TDC Brands (formerly known as Nuuday) is the service company resulting from the split of former Danish incumbent TDC Group. It offers bundled and unbundled products covering mobile, broadband, TV and telephony using the fixed and mobile networks from TDC NET and third-party regional fibre networks. Public Ratings with Credit Linkage to other ratings TDC Brands' IDR is constrained to one notch above DK Tele's consolidated profile, which incorporates both TDC Brands' and DK Tele's debt, but excludes TDC NET. 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 TDC Brands. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- TDC Brands A/S LT IDR B Affirmed B senior secured LT B+(EXP) Expected Rating RR3 =========== F R A N C E =========== INOVIE GROUP: Fitch Affirms 'B' LT IDR, Alters Outlook to Neg. -------------------------------------------------------------- Fitch Ratings has revised Inovie Group's Outlook to Negative from Stable and affirmed its Long-Term Issuer Default Rating (IDR) at 'B'. Fitch has also affirmed Inovie's senior secured debt at 'B+' with a Recovery Rating of 'RR3'. The Negative Outlook reflects the lack of rating headroom with weaker-than-previously-expected credit metrics at end-2025 and increased refinancing risk ahead of its RCF and term loans maturing September 2027 and March 2028. Fitch also sees heightened risk for Inovie to sustain FCF to sales margin in the mid-single digit from 2027 given the lack of visibility around the medium-term reimbursement pricing in the French medical routine-testing market after 2026. The 'B' IDR reflects Inovie's modest scale relative to peers, high financial leverage and reliance on a single reimbursement system. These weaknesses are offset by its strong position in the highly regulated and non-cyclical French laboratory-testing market, strong profitability and positive FCF. Key Rating Drivers Limited Rating Headroom Ahead of Refinancing: Fitch estimates EBITDAR gross leverage to be 8.2x at end-2025, meaningfully above its expected 7.8x and the negative sensitivity, albeit marginally down from 8.4x in 2024. This was due to slightly lower EBITDA generated given increased costs, coupled with higher debt. While Fitch still sees a deleveraging potential in 2026 driven by organic growth, margin recovery and end-2025 acquisitions, it would take a considerable effort for Inovie to deleverage towards the negative sensitivity of 6.8x, likely remaining at the cusp, or above in case of a weaker improvement, leaving no headroom for operating underperformance ahead of the near-term refinancing requirement. Increased Refinancing Risk: Inovie's refinancing risk has increased given the leverage being currently considerably above the rating sensitivities with some risks to the pace of deleveraging in 2026, ahead of the debt maturities in 2027, when the largely drawn RCF falls due and would also require a concurrent TLB refinancing. Sluggish EBITDA expansion resulting in weaker credit metrics would further heighten the refinancing risk and likely lead to a downgrade in the next 12 months. Regulatory Uncertainty After 2026: Fitch anticipates regulatory uncertainty to return after 2026, when the pricing freeze agreed in December 2024 ends, while the new tri-annual reimbursement pricing agreement remains uncertain as negotiations are set to start later this year. Fitch expects the regulatory environment to become more transparent and constructive beyond 2026, which should help reduce volatility. However, Fitch believes the new agreement may lead to slightly higher pricing cut than in the past in its view and lead to structurally lower margins. This would limit the FCF generation and further deleverage as highlighted by its negative Outlook. Pricing Freeze Drives 2026 Recovery: The reimbursement pricing freeze agreed in December 2024 by the French authorities should lead to strong organic growth based on increased volume across its laboratory network, which paired with continued cost reduction will drive margin to 29% by 2026 and enable significant deleverage. While Fitch has a clear visibility on strong organic revenue growth, Fitch notes achievement of the increased EBITDA is contingent on a robust execution of cost saving measures which include the timely integration of recently acquired laboratory networks and absence of external headwinds, which pose execution risks. FCF Recovery, Sustainable Level Uncertain: Fitch estimates FCF margins to have remained in the low single digit in 2025, breaching its negative sensitivities, given limited EBITDA margin improvement and one-off additional French corporate tax in the year. Although, Fitch anticipates FCF margins to increase to mid-to-high-single digits by 2026 as profitability improves, Fitch sees heightened risk for the company to maintain these sustainably from 2027, being subject to the new reimbursement pricing agreement and the terms of the near-term refinancing. Deleveraging Contingent on Financial Policy: The pace of Inovie's deleveraging is contingent on EBITDA growth and the group's financial policy. Fitch expects Inovie's acquisition strategy to focus on smaller targets where synergies can be achieved more quickly. Fitch does not anticipate any other larger acquisitions following Novabio at end-2025, which was largely financed with EUR50 million contribution backed by sponsors equity. Fitch expects the integration and synergies of this latter acquisition to contribute to 0.3x of deleveraging by 2026. Sustainable Business Model: Inovie's rating affirmation at 'B' is anchored in its defensive business model benefitting from stable revenue, high, resilient margins and sustained positive FCF, embedded in a steady regulatory environment with high barriers to entry. It is the third-largest network of private medical-testing laboratories in France, with a focus on the south and central regions, including its position as the third-largest operator in the Paris (Ile-de-France) region. Targeted geographic presence ensures growth above the national average, while its regional concentration contributes to margin improvement. Peer Analysis Inovie's 'B' IDR is in line with that of Laboratoire Eimer Selas (Biogroup; B/Stable) and Ephios Subco 3 S.a.r.l (Synlab; B/Stable), both of which are direct routine medical laboratory-testing peers. Inovie is smaller and less diversified geographically than its rated peers, making it highly exposed to the French market and to potential reimbursement changes in the medium term. Synlab is well diversified across Europe, while Biogroup has a strong presence in France and Belgium. Inovie's lack of geographical diversification is partly compensated by a more diversified product offering, with about 10% of its revenue derived from specialty testing. Fitch estimates Inovie's EBITDAR leverage to have decreased slightly to 8.2x in 2025 from 8.4x in 2024. Fitch expects it will continue to improve to 6.8x in 2026, similar to its projection for Synlab and Biogroup in the same year. Fitch expects leverage for both companies to fluctuate within 6.0x-7.0x over the medium term. In addition, Inovie's ownership structure is distinctive, with biologists owning a large stake at holding company level rather than minority stakes in operating companies. This group structure prevents value leakage to minorities and enables Inovie to integrate small laboratories by offering a mix of cash and equity partnerships, which requires less debt. Fitch’s Key Rating-Case Assumptions - Revenue growth anticipated in low single digit in 2025, and increasing to 13% in 2026 driven by acquisitions and mid-single digits organic growth as above-market volume growth offsets price declines. Organic growth of 1.5% for 2027-2028 - EBITDA margin improving towards 27% in 2025 and 29% by 2026, from 26.4% in 2024, on continued cost restructuring - Acquisitions of about EUR80 million in 2025 and around EUR45 per year on average in 2026-2028, including minority interest purchases, net of rollover equity from biologists; 2025 acquisitions are contributing mostly in 2026 given completion in the last months of the year, for other years they are assumed to take place mid-year. - No dividends - Capex on average at 3% of revenue in 2025-2028 - Refinancing of senior secured term loans and revolving credit facility (RCF; EUR153 million drawn) by 1Q27 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 (bb+, Moderate), Sector Characteristics (bb-, Higher), Market and Competitive Positioning (bb-, Moderate), Diversification and Asset Quality (b+, Moderate), Company Operational Characteristics (b+, Lower), Profitability (bbb+, Moderate), Financial Structure (ccc+, Higher), and Financial Flexibility (b+, Moderate). - 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 assessment of 'Some Deficiencies' results in no adjustment. - The Operating Environment assessment of 'a+' results in no adjustment. - The SCP is 'b'. Recovery Analysis Recovery Assumptions In Fitch's recovery analysis, Fitch follows a going concern (GC) approach as this leads to higher recoveries than liquidation in a bankruptcy. Fitch estimates GC EBITDA at EUR265 million, which Fitch views as a distressed level as Inovie copes with high reimbursement pressure and high-cost inflation that is not offset by its current cost restructuring. Its GC EBITDA estimation is an increase from its previous level of EUR250 million, reflecting contributions from recent acquisitions made by Inovie. A distressed enterprise value/EBITDA multiple of 5.5x implies a discount of 0.5x to the multiples of more geographically diversified and larger direct competitors, Biogroup and Synlab. Inovie's committed RCF of EUR175 million is assumed fully drawn prior to distress, in line with Fitch's Recovery Ratings Criteria. Structurally higher-ranking senior debt at subsidiary level of EUR135 million ranks ahead of Inovie's RCF and term loan B (TLB). Estimated post-distress enterprise value, after deducting 10% for administrative claims, generates a ranked recovery for the senior secured debt (including RCF and TLB) in the 'RR3' band, indicating a 'B+' instrument rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Action/Downgrade - Adverse regulatory changes and/or loss of discipline in acquisition target selection, leading to weak operating performance and eroding profitability - Lack of visibility on EBITDAR gross leverage decreasing towards 6.8x by 2026 (pro-forma for acquisitions) - EBITDAR fixed-charge coverage below 1.5x on a sustained basis (pro-forma for acquisitions) - FCF margin in low single digits on a sustained basis - Refinancing of the Term loans and RCF not completed by 1Q27 Factors that Could, Individually or Collectively, Lead to Positive Action/Upgrade - Improvement in the business profile, including an increase in scale and greater product/geographical diversification - EBITDAR gross leverage below 4.8x on a sustained basis (pro-forma for acquisitions) - EBITDAR fixed-charge coverage above 2.0x on a sustained basis (pro-forma for acquisitions) Liquidity and Debt Structure Fitch estimates Inovie's available cash at year-end 2025 at EUR76 million (excluding Fitch-restricted cash of EUR20 million) cash on its balance sheet. This, together with the remaining undrawn RCF of EUR22 million, is sufficient to cover potential short-term disruptions. Inovie's EUR153 million outstanding on its RCF is due in September 2027 and its EUR1.97 billion TLB matures in March 2028. Fitch expects Inovie to refinance its debt ahead of maturity. Issuer Profile Inovie is one of France's largest providers of routine diagnostic tests in the private lab-testing market. Summary of Financial Adjustments Fitch computed Inovie's defined-lease liabilities by multiplying Fitch-defined lease cost by 5.5x, in line with peer multiples for the lab-testing sector. 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 Inovie. ESG Considerations Inovie has an ESG Relevance Score of '4' for social impacts due to its exposure to the French regulated medical lab-testing market, which is subject to pricing and reimbursement pressures as the government seeks to control national healthcare spending. This has a negative impact on Inovie's credit profile and is relevant to ratings 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. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Inovie Group LT IDR B Affirmed B senior secured LT B+ Affirmed RR3 B+ ============= I R E L A N D ============= BARINGS EURO 2021-2: Moody's Cuts Rating on EUR12MM F Notes to Caa2 ------------------------------------------------------------------- Moody's Ratings has taken a variety of rating actions on the following notes issued by Barings Euro CLO 2021-2 Designated Activity Company: EUR15,000,000 Class B-1 Senior Secured Floating Rate Notes due 2034, Upgraded to Aa1 (sf); previously on Sep 22, 2021 Definitive Rating Assigned Aa2 (sf) EUR25,000,000 Class B-2 Senior Secured Fixed Rate Notes due 2034, Upgraded to Aa1 (sf); previously on Sep 22, 2021 Definitive Rating Assigned Aa2 (sf) EUR12,000,000 Class F Senior Secured Deferrable Floating Rate Notes due 2034, Downgraded to Caa2 (sf); previously on Sep 22, 2021 Definitive Rating Assigned B3 (sf) Moody's have also affirmed the ratings on the following notes: EUR188,000,000 Class A Senior Secured Floating Rate Notes due 2034, Affirmed Aaa (sf); previously on Sep 22, 2021 Definitive Rating Assigned Aaa (sf) EUR60,000,000 Class A Senior Secured Floating Rate Loan due 2034, Affirmed Aaa (sf); previously on Sep 22, 2021 Definitive Rating Assigned Aaa (sf) EUR25,000,000 Class C Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed A2 (sf); previously on Sep 22, 2021 Definitive Rating Assigned A2 (sf) EUR27,800,000 Class D Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Baa3 (sf); previously on Sep 22, 2021 Definitive Rating Assigned Baa3 (sf) EUR19,200,000 Class E Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Ba3 (sf); previously on Sep 22, 2021 Definitive Rating Assigned Ba3 (sf) Barings Euro CLO 2021-2 Designated Activity Company, issued in September 2021, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Barings (U.K.) Limited. The transaction's reinvestment period ended in March 2026. RATINGS RATIONALE The rating upgrades on the Class B-1 and Class B-2 notes are primarily a result of the transaction having reached the end of the reinvestment period in March 2026. 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 downgrade on the rating on the Class F notes is primarily a result of the deterioration in over-collateralisation ratios since the payment date in October 2025. The over-collateralisation ratios of the rated notes has deteriorated since the payment date in October 2025. According to the trustee report dated March 2026[1] the Class F OC ratio is reported at 103.3% compared to October 2025[2] levels of 104.9%. The affirmations on the ratings on the Class A, Class C, Class D and Class E notes as well as the Class A loan are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. The key model inputs Moody's uses in Moody's analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on Moody's published 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: EUR382.9 million Defaulted Securities: EUR7.9 million Diversity Score: 62 Weighted Average Rating Factor (WARF): 3016 Weighted Average Life (WAL): 4.4 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.6% Weighted Average Coupon (WAC): 4.3% Weighted Average Recovery Rate (WARR): 42.8% 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. Moody's notes that the April 2026 trustee report was published at the time Moody's were completing Moody's analysis of the March 2026 data. Key portfolio metrics such as WARF, diversity score, weighted average spread and life, and OC ratios exhibit little or no change between these dates. 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 debts' performance is subject to uncertainty. The debts' 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 debts' 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. Recoveries 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. BNPP AM EURO 2017: Fitch Lowers Rating on Class F Notes to 'B+sf' ----------------------------------------------------------------- Fitch Ratings has downgraded BNPP AM Euro CLO 2017 DAC's class F notes and affirmed the rest as detailed below. Entity/Debt Rating Prior ----------- ------ ----- BNPP AM Euro CLO 2017 DAC A-R XS2060921223 LT AAAsf Affirmed AAAsf B XS1646366663 LT AA+sf Affirmed AA+sf C XS1646367711 LT A+sf Affirmed A+sf D XS1646368016 LT A-sf Affirmed A-sf E XS1646368289 LT BB+sf Affirmed BB+sf F XS1646368362 LT B+sf Downgrade BBsf Transaction Summary BNPP AM Euro CLO 2017 DAC is a cash flow CLO mostly comprising senior secured obligations. The portfolio is actively managed by BNP Paribas Asset Management Europe. The transaction exited its reinvestment period in October 2021. KEY RATING DRIVERS Junior Notes Sensitive to Deterioration: The transaction has seen further par losses since the previous review in May 2025to 3.65% below par as a result of the disposal of distressed assets. The reported defaults total EUR3.1 million, assets rated 'CCC+' and below (excluding non-rated assets) total 7.4% of the portfolio and 22% of the current portfolio is on Negative Outlook. The over-collateralisation cushion for the class F notes has also thinned to 0.63%, from 2.05% in May 2025. The deterioration of the portfolio supports the downgrade of the class F notes and the maintenance of the Negative Outlook. The Negative Outlook on the class D and F notes reflects the limited break-even default rate cushion available at their ratings. Amortisation Benefits Senior Notes: As of February 2026, the class A-R notes have paid down EUR40 million, since the last review in May 2025. This amortisation, based on the trustee report as of April 2025, has increased the credit enhancement of the class A-R to D notes, outweighing further par losses that have occurred since the previous review. This has resulted in their affirmation. Transaction Outside Reinvestment Period: The transaction is outside of its reinvestment period but can continue to reinvest, subject to curing the failure of another rating agency's weighted average rating factor (WARF) test. Its analysis for upgrade is therefore based on a Fitch-stressed portfolio, floored at four years under its applicable criteria. On the other hand, Fitch considers the current portfolio in its downgrade analysis and has taken into account the cash in the principal account being used to pay down the notes in its downgrade analysis. However, the junior notes' status means the positive impact is limited on them. 'B'/'B- Portfolio: Fitch assesses the average credit quality of the transaction's underlying obligors at 'B'/'B-'. The WARF of the current portfolio is 28 as calculated by Fitch under its latest criteria. High Recovery Expectations: Senior secured obligations comprise 99% of the portfolio as calculated by the trustee. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate (WARR) of the current portfolio is 65.4%. Diversified Portfolio: The portfolio is well-diversified across obligors, countries and industries. The top 10 obligor concentration, as calculated by Fitch, is 18.9%, and no obligor represents more than 2% of the portfolio balance, as reported by the trustee. Exposure to the three largest Fitch-defined industries is 28.3% as calculated by the trustee. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Downgrades, which are based on the current portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available 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 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 Recognised Statistical Rating Organisations 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 rating 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 BNPP AM Euro CLO 2017 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. BRIDGEPOINT CLO X: Fitch Assigns 'B-sf' Final Rating to Cl. F Notes ------------------------------------------------------------------- Fitch Ratings has assigned Bridgepoint CLO X DAC final ratings, as detailed below. Entity/Debt Rating ----------- ------ Bridgepoint CLO X DAC A XS3280977532 LT AAAsf New Rating A-1 Loan LT AAAsf New Rating A-2 Loan LT AAAsf New Rating B XS3280979405 LT AAsf New Rating C XS3280979660 LT Asf New Rating D XS3280979827 LT BBB-sf New Rating E XS3280981054 LT BB-sf New Rating F XS3280984405 LT B-sf New Rating Subordinated Notes XS3280983696 LT NRsf New Rating Transaction Summary Bridgepoint CLO X DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds were used to fund a portfolio with a target par of EUR400 million that is actively managed by Bridgepoint Credit Management Limited. The collateralised loan obligation (CLO) has a 4.5-year reinvestment period, and a 7.5-year weighted average life (WAL) test at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'/'B-'. The Fitch-calculated weighted average rating factor (WARF) of the identified portfolio is 23.6. Strong Recovery Expectation (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-calculated weighted average recovery rate (WARR) of the identified portfolio is 61.9%. Diversified Asset Portfolio (Positive): The transaction has six Fitch test matrices, each based on a top 10 obligor limit at 20%. Two are effective at closing, corresponding to fixed-rate asset limits at 5% and 12.5% and to a 7.5-year WAL test covenant, and the remaining four matrices are effective 15 and 18 months after closing and correspond to a 7.25-year and a seven-year WAL test covenant with the same fixed-rate asset limits as the closing matrices. The switch to the two forward matrix sets is subject to the aggregate collateral balance (with defaults at collateral value) being at least equal to the reinvestment target par balance. The transaction also includes additional concentration limits, including a maximum exposure to the three-largest Fitch-defined industries in the portfolio at 43%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. WAL Step-up (Neutral): The transaction's WAL test can step up by one year on or after 12 months from closing. The step-up is conditional on each of the collateral quality tests (based on the closing matrix set) being satisfied and the aggregate collateral balance (defaulted obligation at Fitch collateral value) being at least equal to the reinvestment target par balance. Portfolio Management (Neutral): The transaction has a 4.5-year reinvestment period and includes 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. Cash Flow Modelling (Neutral): The WAL used for the transaction's Fitch-stressed portfolio analysis is 12 months less than the WAL covenant at the issue date, to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period. These include passing the coverage tests, and the Fitch 'CCC' bucket limitation test and a WAL covenant that progressively steps down over time, both before and after the end of the reinvestment period. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would downgrades of one notch each to the class B, C, D and E notes and below 'B-sf' for the class F notes. The class A notes, A-1 loan and A-2 loan would not be affected. Downgrades, which are based on the identified portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. All the rated notes, except the 'AAAsf' notes, each have a rating cushion of between one and two notches, due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. 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 and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to four notches each for the rated notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to three notches each for the notes, except the 'AAAsf' notes. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, 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 remaining life of the transaction. Upgrades after the end of the reinvestment period may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available 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 The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognised Statistical Rating Organisations 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 rating 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 Bridgepoint CLO X 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. ========= I T A L Y ========= LOTTOMATICA GROUP: Moody's Rates New EUR765MM Sr. Sec. Notes 'Ba2' ------------------------------------------------------------------ Moody's Ratings has assigned a Ba2 rating to the proposed EUR765 million senior secured notes due 2032 to be issued by Lottomatica Group S.p.A. (Lottomatica or the company), the leading gaming company in Italy. The proposed EUR765 million senior secured notes will be used to refinance the existing EUR400 million senior secured floating rates notes due in 2031, the related fees and for general corporate purposes. RATINGS RATIONALE Lottomatica's Ba2 corporate family rating reflects its strong business profile with a favorable position in the gaming value chain, which makes it less vulnerable to downturns; good product diversification and increasing presence in the profitable high-growth online segment; good liquidity, supported by consistently strong free cash flow; and proven ability to integrate large targets and achieve synergies. Following Lottomatica's solid operating performance in 2025, Moody's expects its Moody's adjusted debt/EBITDA to remain around 3x over the next 12-18 months, supported by continued solid operating performance and in line with the company's targeted reported Net Debt / EBITDA between 2.0x and 2.5x. Moody's also expects Lottomatica to pursue share buyback opportunities in line with its targeted net leverage. The company was awarded a 9-year extension of the online concession in November 2025. Moody's understands that the retail and sports betting concessions, which since 2017 have been renewed annually, might be opened for multi-year license tender over the next few years. Currently, the earliest cash-out for Lottomatica from such a tendering process would not be before 2027. In Moody's base case, Moody's expects the company to at least partially finance the cash outflows with internally generated cash, with an unchanged financial policy. The rating remains constrained by Lottomatica's geographical concentration in Italy, with exposure to a single regulatory and fiscal regime; exposure to concession renewal risks and related cash outflow, which can be significant; and presence in the mature retail gaming machine segment, which has limited growth prospects. LIQUIDITY Lottomatica has good liquidity, supported by its cash balance of EUR144 million as of December 2025 and EUR447.25 million fully undrawn revolving credit facility (RCF). The super senior RCF documentation contains a springing financial covenant based on senior secured net leverage set at 8.3x, tested when the RCF is drawn by more than 40%. Moody's expects Lottomatica to maintain good buffer under this covenant if it is tested. The company's liquidity sources can accommodate smaller bolt-on acquisition and some shares buybacks. The company does not have any debt maturity before 2030. RATIONALE FOR STABLE OUTLOOK The stable outlook reflects Moody's forecasts that the company will maintain strong operating performance. It also incorporates Moody's expectations that Lottomatica will maintain unchanged its financial policy, with Moody's-adjusted debt/EBITDA around 3x over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Moody's could upgrade Lottomatica's rating if: -- the company establishes a track record of following more conservative governance practices and financial policy; -- it maintains Moody's-adjusted leverage below 2.5x on a sustained basis while maintaining good liquidity and generating strong positive FCF; and -- it continues to grow its EBIT margin above 20%. Moody's could downgrade Lottomatica's rating if: -- its operating performance weakens or it is hurt by a changing regulatory and fiscal regime, including the more onerous concession renewals; -- its Moody's-adjusted leverage increases above 3.5x on a sustained basis; -- its FCF deteriorates and liquidity weakens; or -- it engages in large transformative acquisitions that could lead to integration risk and an increase in leverage. PRINCIPAL METHODOLOGY The principal methodology used in this rating was Gaming published in September 2025. COMPANY PROFILE Founded in 2006 and headquartered in Rome (Italy), Lottomatica is the leader in the Italian gaming market. Lottomatica (formerly Gamma Midco S.p.A.) is the publicly listed entity, consolidating entity for audited financials, and holding company of Lottomatica S.p.A. The company reported EUR2.25 billion revenue in 2025. =================== K A Z A K H S T A N =================== AB KAZAKHSTAN - ZIRAAT: Fitch Alters Outlook on 'B+' IDR to Stable ------------------------------------------------------------------ Fitch Ratings has revised AB Kazakhstan - Ziraat International Bank JSC's (KZI) Outlooks to Stable from Positive, while affirming its Long-Term (LT) Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'B+'. Fitch has also revised the Outlook on the bank's National LT Rating to Stable from Positive and affirmed it at 'BBB(kaz)'. The rating action follows the revision of the Outlook on the parent Turkiye Cumhuriyeti Ziraat Bankasi Anonim Sirketi's (Ziraat) 'BB-' LT Foreign-Currency IDR to Stable from Positive (see 'Fitch Revises 9 Turkish Banks' Outlooks to Stable on Sovereign Action; Affirms at 'BB-'' dated 14.04.2026). Key Rating Drivers KZI's LT IDRs and National LT Rating reflect potential support from Ziraat, as captured by its 'b+' Shareholder Support Rating. The Stable Outlook on KZI's IDRs mirrors that on the parent's LT Foreign-Currency IDR. Small Bank, Reliant on Parent: KZI is a small bank, with total assets of USD0.6 billion at end-2025. Its client base on both sides of its balance sheet mostly comprises Ziraat's group clients and other Turkish businesses operating in Kazakhstan. Fitch has not assigned KZI a Viability Rating because the bank is heavily reliant on its parent for new business origination and risk management, and also because Ziraat's representatives are involved in all major decision-making at the subsidiary level. Strong Parent Support: Fitch believes Ziraat has a high propensity to support KZI, due to the latter's strong operational integration, virtually full ownership and high reputational risk for the parent if KZI defaults, given common branding and Ziraat's broader international presence. In addition, the cost of potential support is low considering the subsidiary's small size relative to the parent's (end-2025: less than 1% of the group's consolidated assets), and record of extraordinary equity support (2022: 21% of risk-weighted assets). The one-notch difference between KZI's and Ziraat's IDRs reflects that KZI operates in a strategically important but non-core and small market. A potential divestment of KZI would not fundamentally alter Ziraat's group franchise. KZI's 'BBB(kaz)' National Rating reflects Fitch's view of the bank's creditworthiness relative to domestic peers'. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A downgrade of Ziraat's LT Foreign-Currency IDR could result in downgrade of KZI's LT IDRs. KZI's ratings could also be downgraded if Ziraat's propensity to support its subsidiary weakens considerably. The National Rating could be downgraded if KZI's creditworthiness weakens relative to local peers'. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of Ziraat's LT Foreign-Currency IDR would result in an upgrade of KZI's LT IDRs. The National Rating could be upgraded if KZI's creditworthiness strengthens relative to that of local peers, which could be triggered by an upgrade of the bank's LT Local-Currency IDR. Public Ratings with Credit Linkage to other ratings KZI's ratings are linked to Ziraat's IDRs. ESG Considerations Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This 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 of the materiality and relevance of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- AB Kazakhstan – Ziraat International Bank JSC LT IDR B+ Affirmed B+ ST IDR B Affirmed B LC LT IDR B+ Affirmed B+ Natl LT BBB(kaz) Affirmed BBB(kaz) Shareholder Support b+ Affirmed b+ =========== S W E D E N =========== POLESTAR AUTOMOTIVE: Reports $2.36 Billion Net Loss in FY 2025 -------------------------------------------------------------- Polestar Automotive Holding UK PLC filed with the U.S. Securities and Exchange Commission its Annual Report on Form 20-F for the fiscal year ended December 31, 2025. There is substantial doubt about Polestar's ability to continue as a going concern, meaning that Polestar may not be able to continue in operation for the foreseeable future or be able to realize assets and discharge liabilities in the ordinary course of operations. Deloitte AB, the Company's independent registered public accounting firm for the fiscal year ended December 31, 2025, has included an explanatory paragraph in their opinion that accompanies the Company's audited consolidated financial statements as of and for the year ended December 31, 2025, indicating that the Company requires additional financing to support operating and development activities that raise substantial doubt about its ability to continue as a going concern. Management assessed Polestar Group's ability to continue as a going concern and evaluated whether there are certain events or conditions, considered in the aggregate, that may cast substantial doubt about Polestar's ability to continue as a going concern. As a result of this assessment, management identified a material uncertainty that casts substantial doubt on Polestar Group's ability to obtain sufficient financing, including the renegotiation of financing due to expire in early 2027, to support its cash flow needs and ensure on-going compliance with its debt covenants. In performing this assessment, management considered a broad range of relevant information, including cash flow forecasts, liquidity forecasts and operational forecasts pertaining to the 12-month period following the issuance date of these Consolidated Financial Statements, as well as other risks related to Polestar's business. In making these forecasts, management was required to make judgements relating to Polestar Group's future operations as well as macroeconomic and geopolitical factors. These include judgements relating to car sale volumes and prices, operating expenses (including the impact of tariffs), required capital expenditure and market demand for debt refinancing and debt and equity issuances by Polestar. As a result of scaling up commercialization and continued capital expenditures related to developing its vehicles, managing the Company's liquidity profile and funding needs remains one of management's key priorities. If Polestar is not able to raise the necessary funds through its operations, equity issuances, debt financings and refinancing or other means, the Group may be required to delay, limit, reduce, or, in the worst case, terminate research and development and / or commercialization efforts. As of December 31, 2025, Polestar had net current liabilities of $3.52 billion. Since inception, Polestar Group has generated recurring net losses and negative operating and investing cash flows. Net losses for the years ended December 31, 2025, 2024, and 2023, amounted to $2.36 billion, $2.05 billion, and $1.18 billion, respectively. Negative operating cash flows for the years ended December 31, 2025, 2024, and 2023, amounted to $914.99 million, $991.21 million, and $1.89 billion, respectively, and negative investing cash flows for the years ended December 31, 2025, 2024, and 2023, amounted to $520.68 million, $412.56 million, and $417.62 million, respectively. Management's 2026-2030 business plan forecasts that Polestar will generate negative operating cash flows in the short-term and that investing cash flows will continue to be negative in the short-term and long-term due to the high capital expenditure demands of Polestar's business. Securing financing to support operating and development activities represents an ongoing challenge for Polestar Group. Polestar Group primarily finances its operations through short-term (i.e., 12 months or less) working capital loan arrangements with credit institutions, contributions from shareholders, extended trade credit from related parties, and long-term financing arrangements with related parties. During the year ended December 31, 2025, Polestar entered into a credit agreement in relation to a $600.0 million term loan facility arrangement with a related party, the first $300.0 million being committed and the second $300.0 million uncommitted. The Term Loan Facility is available for general corporate purposes. Management's 2026-2030 business plan indicates that Polestar Group depends on rolling-over current financing arrangements as well as obtaining additional financing that is expected to be funded via one of, or a combination of, new short-term working capital loan arrangements, long-term loan arrangements, loans with related parties, and executing capital market transactions through offerings of debt and/or equity. Until Polestar Group begins generating sufficient positive operating cash flows, the timely realization of these financing endeavors is essential for Polestar Group's ability to continue as a going concern. Management cannot guarantee that Polestar Group will be successful in securing the funds necessary to continue operating and development activities as planned. During the year ended December 31, 2025, Polestar demonstrated its ability to manage its liquidity by the following initiates: * Entering into multiple short-term working capital loan arrangements with international banking partners and in China. * Entering into a credit agreement with a wholly owned subsidiary of Geely Sweden Holdings AB in relation to a subordinated Term Loan Facility of up to $600.0 million. * Completing a private investment in public equity transaction by PSD Investment Limited, an existing investor, for $200.0 million. * Raising capital from Banco Bilbao Vizcaya Argentaria, S.A. and NATIXIS through the issuance of ADS' for an aggregate amount of $300.0 million. * Agreeing with Geely Sweden Holdings AB on future conversion into equity of approximately $300.0 million of the outstanding principal and interest on a convertible loan. Polestar is party to financing instruments that contain financial covenants with which Polestar must comply during, and beyond, the 12 months following the issuance date of these Consolidated Financial Statements including, but not limited to, a minimum quarterly cash level of €400.0 million, minimum annual revenue amounts and maximum quarterly financial indebtedness of $5.5 billion. A failure to comply with such covenants may result in an event of default that could have material adverse effects on its business. Due to the factors discussed above, there is substantial doubt as to whether Polestar will be able to comply with all covenants in future periods. Remedies to a potential event of default include proactively applying for a covenant waiver prior to such event of default occurring. During 2025, Polestar identified that it was at risk of breaching the debt-to-asset ratio and minimum annual revenue covenants under its Club Loan. Prior to any breach occurring, Polestar applied for and received lender approval to amend both covenants, confirmed on July 9, 2025. No event of default occurred; In March 2026, Polestar received lender confirmation of updated 2026 minimum annual revenue and debt-to-asset ratio covenant thresholds aligned with management's forecasts. Based on these thresholds, management expects to remain in compliance with applicable covenants within the twelve-month period following issuance. There remains material uncertainty as to whether Polestar will comply with all covenants in future periods. Management cannot guarantee that waivers will be granted for any future non-compliance with covenants on this facility nor on Polestar's other borrowings with covenants. Management forecasts sufficient liquidity in the 12-month period following the issuance date of these Consolidated Financial Statements in order for Polestar to meet its cash flow requirements as well as to ensure compliance with the applicable financial covenants, but the uncertainty related to the execution of management's liquidity and funding plan indicates the existence of a material uncertainty that may cast substantial doubt upon Polestar's ability to continue as a going concern. There are ongoing efforts in place to mitigate the uncertainty. Management Comments Michael Lohscheller, Polestar CEO, said: "2025 was a record year for Polestar, with retail sales of over 60,000 cars and revenue surpassing USD 3 billion. Our strong commercial performance was driven by the expansion of our sales network and strength of our model line-up. "Since June 2025 to-date, we have strengthened our balance sheet and improved our debt and liquidity positions through a total of USD 1.2 billion in equity injections, approx. USD 0.6 billion debt-to-equity conversions, partially executed and planned, and an agreement of a three-year extension of the USD 0.7 billion shareholder loan. "In 2026, our operational focus will be on the continued expansion of our sales network, growing our sales points by a planned 20%, to coincide with the largest model offensive in our history, with four new models planned during the next three years. While we expect market conditions to become more challenging, amid ongoing geopolitical developments, we will continue to drive financial performance, building on our achievements in 2025, with an improved model mix, sustained cost reduction and financial discipline." Financial guidance Polestar has continued to make major strides in its commercial transformation supported by accelerated retail expansion and the strength of its attractive model line-up in a challenging geopolitical and economic environment. Looking to 2026, the global environment is expected to remain highly uncertain given recent geopolitical developments. As previously indicated, retail sales volumes are expected to increase at a low double-digit rate, with a continued focus on quality revenue. The sales mix is expected to further evolve with an increasing share of Polestar 4 coupe, our best-selling model, complemented later in 2026 with the introduction of new Polestar 4 SUV variant. A full text copy of the Company's Form 20-F is available at https://tinyurl.com/4kxd2z7c About Polestar Automotive Polestar (Nasdaq: PSNY) is the Swedish electric performance car brand with a focus on uncompromised design and innovation, and the ambition to accelerate the change towards a sustainable future. Headquartered in Gothenburg, Sweden, its cars are available in 27 markets globally across North America, Europe and Asia Pacific. As of December 31, 2025, the Company had $3.93 billion in total assets, $9.05 billion in total liabilities, and $5.12 billion in total deficit. =========== T U R K E Y =========== VESTEL ELEKTRONIK: Moody's Cuts CFR, $500M Sr. Unsec. Notes to Caa2 ------------------------------------------------------------------- Moody's Ratings has downgraded the long term corporate family rating of Vestel Elektronik Sanayi Ve Ticaret A.S. (Vestel or the company) to Caa2 from Caa1 and the probability of default rating to Caa2-PD from Caa1-PD. Moody's have also downgraded to Caa2 from Caa1 the instrument rating on the $500 million guaranteed senior unsecured notes due 2029 issued by Vestel. The outlook remains negative. RATINGS RATIONALE The rating action reflects Moody's views that Vestel's capital structure is unsustainable and its liquidity position weak, materially increasing the risk of a debt restructuring. Free cash flow has remained negative for the past five years, necessitating ongoing external funding, while the company's bond documentation significantly constrains its ability to incur additional debt. Moody's estimates that Vestel will require around TRY30 billion ($670 million) of additional funding until the end of 2027 to cover continued free cash flow shortfalls, exceeding the approximately $250 million of remaining capacity available under existing debt incurrence baskets. Moody's views the unsustainable capital structure, weak liquidity and increased likelihood of default as governance risks. Because of the increase in these risks, Moody's changed Vestel's governance issuer profile score to G-5 from G-4 and credit impact score to CIS-5 from CIS-4. Operating performance continued to deteriorate in 2025 and Moody's sees limited prospects for a material recovery over the next one to two years. Sales declined by 26% year on year in TRY terms, while Moody's adjusted EBITDA turned negative at TRY 5.8 billion ($146 million), compared with positive TRY 4.7 billion ($143 million) in the prior year. Performance worsened sharply in the fourth quarter, with sales down 47% year on year. Operational weakness was broad based across all segments, including TVs and domestic appliances, and across both Turkiye and Europe. Competitive pressure from Chinese manufacturers in Europe remains the primary driver and has increasingly affected the Turkish market, as similarly challenged domestic peers have redirected volumes to the local market, intensifying pricing pressure. This has been compounded by rising input costs, driven by labor cost inflation and higher shipping expenses following disruptions in the Red Sea. In 2026, Moody's expects geopolitical conflict in the Middle East to add further pressure on input costs and supply chains. Vestel has taken significant actions to reduce costs and preserve liquidity, including a 35% workforce reduction and operational efficiency measures. In addition, the company generated a sizeable working capital inflow of around $730 million in 2025 by shifting parts of its supply chain from Turkiye to Asia, benefiting from materially longer supplier payment terms. However, while efficiency measures provide some ongoing relief, the working capital release was largely a one off measure and Moody's do not expect it will be repeatable. Moreover, the relocation of supply chains and aggressive cost discipline risk further weakening Vestel's competitive position over time, potentially undermining its business profile and margins. Vestel's Caa2 CFR continues to reflect (1) the company's still meaningful, though deteriorating, market presence in televisions and household appliances in Turkiye and Europe; (2) a diversified business model across own brands, licensed brands and original design manufacturing (ODM), which provides some diversification by customer and product; and (3) exposure to mobility electronics and energy storage, which could benefit from longer term growth in electric vehicles and renewable energy, although these activities remain relatively small and are insufficient to offset pressure in the core appliance business. The rating also reflects (1) Vestel's unsustainable capital structure and weak liquidity, which elevate the risk of a debt restructuring; (2) a sustained track record of negative free cash flow over the past five years and Moody's expectations that free cash flow will remain negative for at least the next two to three years; (3) a weakened competitive position across its core products and markets amid intensified competition from Chinese manufacturers and other Turkish producers; and (4) exposure to a structurally declining global TV market, compounded by volatile input costs. NEGATIVE OUTLOOK The negative outlook reflects Vestel's weak liquidity position, driven by Moody's expectations of continued negative free cash flow over the next 12–18 months and the resulting need for additional funding, which will be constraint by restrictions on debt incurrence under the company's bond documentation. Operating prospects have also weakened amid higher energy and plastics costs and lower consumer demand in both Turkiye and Europe following geopolitical conflict in the Middle East. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Given the negative outlook, an upgrade is unlikely in the near term. Moody's would consider revising the outlook to stable if Vestel materially improves its operating performance, is on a path to sustainable positive free cash flow, and stabilizes its debt position. An upgrade would likely require a significant strengthening of liquidity, including reduced reliance on short term debt and/or substantial recovery of long term receivables from related parties. Moody's could downgrade the rating if the company defaults on its debt, or proceeds with a debt restructuring that leads to creditor recoveries falling short of current rating level expectations, or if it undertakes bond buybacks which Moody's may deem as distressed exchanges. The principal methodology used in these ratings was Consumer Durables published in December 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. =========================== U N I T E D K I N G D O M =========================== ALTAYYAR HOUSE (FLAT 13): FRP Advisory, BTG Named as Administrators ------------------------------------------------------------------- Altayyar House (Flat 13) Limited was placed into administration in the High Court of Justice, Court Number CR-2026-002115. Simon Baggs and David Hudson of FRP Advisory Trading Limited, and Paul Steven Cooper of BTG Begbies Traynor (London) LLP, were appointed as Joint Administrators on March 16, 2026. Altayyar House (Flat 13) Limited carried on a business of buying and selling of own real estate and other letting and operating of own or leased real estate. Its registered office is at 134 Buckingham Palace Road, London, SW1W 9SA (to be changed to c/o FRP Advisory Trading Ltd, 2nd Floor, 120 Colmore Row, Birmingham, B3 3BD). Its principal trading address is 134 Buckingham Palace Road, London, SW1W 9SA. The Joint Administrators can be contacted at: Simon Baggs David Hudson FRP Advisory Trading Limited 2nd Floor, 120 Colmore Row Birmingham B3 3BD -- and -- Paul Steven Cooper BTG Begbies Traynor (London) LLP 31st Floor, 40 Bank Street Canary Wharf London E14 5NR Further details contact: The Joint Administrators Tel: 0121 710 1680 Alternative contact: Abbie Lenihan Email: cp.birmingham@frpadvisory.com BAKER STREET (PR): FRP Advisory, BTG Appointed as Administrators ---------------------------------------------------------------- Baker Street (PR) Limited was placed into administration in the High Court of Justice, Court Number CR-2026-002069. Simon Baggs and David Hudson of FRP Advisory Trading Limited, and Paul Steven Cooper of BTG Begbies Traynor (London) LLP, were appointed as joint administrators on March 16, 2026. Baker Street (PR) Limited carried on a business of buying and selling of own real estate and other letting and operating of own or leased real estate. Its registered office is at 134 Buckingham Palace Road, London, SW1W 9SA (to be changed to c/o FRP Advisory Trading Ltd, 2nd Floor, 120 Colmore Row, Birmingham, B3 3BD). Its principal trading address is 134 Buckingham Palace Road, London, SW1W 9SA. The Joint Administrators can be contacted at: Simon Baggs David Hudson FRP Advisory Trading Limited 2nd Floor, 120 Colmore Row Birmingham B3 3BD -- and -- Paul Steven Cooper BTG Begbies Traynor (London) LLP 31st Floor, 40 Bank Street Canary Wharf London E14 5NR Further information: The Joint Administrators Tel: 0121 710 1680 Alternative contact: Abbie Lenihan Email: cp.birmingham@frpadvisory.com BOND STREET (CS): FRP Advisory, BTG Appointed as Administrators --------------------------------------------------------------- Bond Street (CS) Limited was placed into administration in the High Court of Justice, Court Number CR-2026-002079. David Hudson and Simon Baggs of FRP Advisory Trading Limited, and Paul Steven Cooper of BTG Begbies Traynor (London) LLP, were appointed as joint administrators on March 16, 2026. Bond Street (CS) Limited carried on a business of buying and selling of own real estate. Its registered office is at 134 Buckingham Palace Road, London, SW1W 9SA (to be changed to FRP Advisory, 2nd Floor, Churchill House, 26–30 Upper Marlborough Road, St Albans, AL1 3UU). Its principal trading address is 134 Buckingham Palace Road, London, SW1W 9SA. The Joint Administrators can be contacted at: David Hudson Simon Baggs FRP Advisory Trading Limited 2nd Floor, 110 Cannon Street London EC4N 6EU -- and -- Paul Steven Cooper BTG Begbies Traynor (London) LLP 31st Floor, 40 Bank Street Canary Wharf London E14 5NR Further details contact: The Joint Administrators Tel: 01727 811111 Alternative contact:Daniel Brooks Email: cp.stalbans@frpadvisory.com BURLINGTON GATE: BTG Begbies, FRP Appointed as Joint Administrators ------------------------------------------------------------------- Burlington Gate (Flat 407) Limited was placed into administration in the Business and Property Courts of England and Wales, Insolvency and Companies List (ChD), Court Number CR-2026-001933. Paul Steven Cooper of BTG Begbies Traynor (London) LLP, David Paul Hudson and Simon Baggs of FRP Advisory Trading Ltd were appointed as Joint Administrators on March 12, 2026. Burlington Gate (Flat 407) Limited specialized in the buying and selling of own real estate, and other letting and operating of own or leased real estate. Its registered office is at 134 Buckingham Palace Road, London, SW1W 9SA. The Joint Administrators can be reached at: Paul Steven Cooper BTG Begbies Traynor (London) LLP 40 Bank Street Canary Wharf London E14 5NR -- and -- David Paul Hudson Simon Baggs FRP Advisory Trading Ltd 2nd Floor, 110 Cannon Street London EC4N 6EU For further details, contact: Ben Kingham BTG Begbies Traynor (Central) LLP Tel. No: 0114 275 5033 Email: sheffield.north@btguk.com CAMELOT UK: Moody's Affirms 'B2' CFR & Alters Outlook to Stable --------------------------------------------------------------- Moody's Ratings affirmed Camelot UK Holdco Limited's (Camelot Holdco) B2 corporate family rating and B2-PD probability of default rating. Camelot Holdco's subsidiaries ratings including, Camelot US Acquisition LLC's B1 backed senior secured first lien bank credit facilities and Clarivate Science Holdings Corporation's B1 backed senior secured notes and Caa1 backed senior unsecured notes ratings were also affirmed. Camelot Holdco's speculative grade liquidity (SGL) rating of SGL-1 remains unchanged. The outlooks were changed to stable from positive. The change in outlook to stable from positive reflects the limited organic revenue growth, competitive industry conditions, and relatively high leverage levels (pro forma leverage of 5.1x, including Moody's standard adjustments). While Moody's expects EBITDA growth to be modest in 2026, leverage levels will decrease as the company continues to direct its significant free cash flow (FCF) to debt repayment. The company is also considering the sale of its life sciences & healthcare business that could lead to a further decrease in leverage, although the company would be slightly smaller and less diversified following a divestiture. Camelot Holdco is a wholly-owned direct subsidiary of Clarivate PLC (Clarivate), which is the entity that is owned by public shareholders and files the group's consolidated financial statements. RATINGS RATIONALE Camelot UK Holdco Limited's B2 CFR reflects its global market positions across Clarivate's core scientific/academic research and intellectual property businesses. The profile also considers the large proportion of subscription and re-occurring revenue (83% as of LTM Q4 2025) and high switching costs derived from Clarivate's proprietary data extraction methodology. Given that Clarivate's subscription products are embedded in customers' core operations and research workflows, customer renewals and retention rates on a weighted average basis have remained above 90% and have been improving in recent periods (92.5% LTM Q4 2025). Clarivate also benefits from good diversification across end markets, geography and customers with attractive EBITDA margins (35% LTM Q4 2025, as adjusted by Moody's) and good FCF (FCF as a percentage of debt of 8% LTM Q4 2025). Leverage is relatively high but Moody's expects it to decline in 2026 as the company will pursue a relatively moderate financial policy and use FCF to repay debt. Clarivate's credit profile is constrained by minimal organic revenue growth in recent years, although Moody's expects organic revenue performance to improve slightly in 2026. Operating performance has the potential to be impacted by more volatile transactional revenue (17% of revenue LTM Q4 2025), but the company is taking steps to reduce exposure to this type of revenue stream. In addition, the possibility remains that subscription and re-occurring revenue may decline slightly during weak macroeconomic periods as some clients reduce spending on ancillary features to offset pressures in other parts of their budgets. Clarivate also faces competitive challenges from a wide range of industry players and the use of AI by competitors and customers has the potential to increase the level of volatility in performance. Camelot Holdco's speculative grade liquidity (SGL) rating of SGL-1 reflects the company's very good liquidity over the next 12-15 months supported by a cash balance of about $329 million and an undrawn $775 million revolving credit facility ($7 million of L/Cs) as of Q4 2025. The revolver matures in January 2029, but is subject to a springing maturity date 91 days prior to the maturity date of the senior secured notes due July 2028 if the debt remains outstanding. Capital expenditures were $263 million as of LTM Q4 2025 and Moody's expects spending to remain in this range as the company invests in product innovation to improve growth. Following $100 million and $198 million in debt repayment in 2025 and 2024, the company repaid another $100 million in debt in January 2026. Moody's expects FCF ($365 million LTM Q4 2025) will be used for additional debt reduction and drive leverage lower in 2026. Clarivate bought back $225 million of shares in 2025, but Moody's don't expect meaningful share repurchases in 2026 as the company focuses on debt repayment. Liquidity may also benefit from the potential sell of the life sciences and healthcare business that could lead to additional debt reduction. The term loans are covenant lite. The revolving credit facility is subject to a springing maximum First lien Net Leverage maintenance covenant of 7.25x (as defined) when more than 35% of the revolver is drawn. To the extent Clarivate were to draw more than 35% over the next 12-15 months, Moody's expects the company will have a substantial cushion with the springing covenant. The stable outlook reflects Moody's views that Camelot Holdco's organic revenue will be modestly positive in 2026 driven by ongoing investments and AI driven service enhancements that will continue to improve the customer experience. The use of FCF for debt reduction is expected to decrease leverage to the 4.7x range in 2026, although leverage could decrease further following any asset sale. While the business model will be relatively resilient to a slow down in the economy and the company benefits from its high degree of proprietary data, the growing use of AI in information technology reduces visibility and elevates the potential for market share changes. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Camelot Holdco's ratings could be upgraded if organic revenue growth increased to the mid-single digit range with at least stable EBITDA margins. A good liquidity position with FCF as a percentage of debt of over 5% and a sustained reduction in total debt to EBITDA leverage below 4.5x (Moody's adjusted), would also be needed while maintaining scale and diversity of service offerings. Prudent financial policies consistent with a higher rating would also be needed. Camelot Holdco's ratings could be downgraded if leverage was sustained above 6x (Moody's adjusted) due to weak operating performance, lost market share, or other leveraging transactions. A deterioration in the company's liquidity position could also lead to negative rating pressure. Headquartered in London, United Kingdom, Camelot UK Holdco Limited ("Camelot Holdco") is a wholly-owned subsidiary of Clarivate PLC (the "parent"), which provides comprehensive intellectual property and scientific information, decision support tools and services that enable academia, corporations, governments and the legal community to discover, protect and commercialize content, ideas and brands. Formerly the Intellectual Property & Science unit of Thomson Reuters Corporation, Clarivate was a carveout purchased by Onex and Baring Asia for approximately $3.55 billion in October 2016. Following the May 2019 merger with Churchill Capital Corp., a special purpose acquisition company (SPAC), Clarivate operates as a publicly traded company. Revenue as of LTM Q4 2025 was $2.5 billion. The principal methodology used in these ratings was Business and Consumer Services published in February 2026. Camelot Holdco's B2 CFR is two notches below the scorecard-indicated outcome of Ba3. The difference reflects among other factors, the limited organic growth in recent periods due to competitive industry conditions. The strategic review of the company has the potential to lead to a reduction in the scale of the business in addition to improved credit metrics. ENQUEST PLC: Fitch Assigns 'B' Long-Term IDR, Outlook Stable ------------------------------------------------------------ Fitch Ratings has assigned EnQuest PLC a Long-Term Issuer Default Rating (IDR) of 'B' with a Stable Outlook. Fitch has also assigned the company's proposed senior unsecured bond issuance an expected rating of 'B+(EXP)' with a Recovery Rating of 'RR3'. EnQuest's IDR reflects its small scale in terms of both production and reserves, high cash costs, significant payments for decommissioning and operations in a high-tax jurisdiction. These are mitigated by the company's moderate financial leverage, good liquidity, strong operational record, increasing geographic diversification and substantial base of accumulated income tax losses. The Stable Outlook reflects its expectation that EnQuest will be able to keep production volumes stable at 40,000-45,000 barrels of oil equivalent per day (kboe/d) until end-2030, while maintaining Fitch-defined FFO leverage at or below 3x through the cycle. Key Rating Drivers Small Scale Independent Producer: EnQuest's production reached about 43 kboe/d in 2025 from its proven and probable (2P) reserve base of 163 million (mm) boe (of which 127 mmboe are proven (1P)), which positions it as one of the smallest oil and gas producers in its peer group. Fitch expects EnQuest's production to remain mostly flat at 40-45kboe/d until end-2030, as natural field decline will be offset by the company's ongoing production optimisation activities, as well as new assets acquired in Vietnam in 2025. The company's relatively small production and reserves scale is likely to remain the key rating constraint for the foreseeable future. Adequate Reserve Life: While overall scale is small, the company's reserve life is better than some other UKCS-focused producers with a 1P reserve life of about eight years and a 2P reserve life of about 10 years. This gives the company some flexibility in the timing of capex and inorganic spending. While not factored into its analysis, the company also has a substantial base of 2C resources of about 452 mmboe, which provides scope for organic reserve replacement. High Cash Costs: Fitch expects EnQuest's total cash operating costs, including production and transportation costs, G&A and Fitch's adjustments for leases, to remain high at USD25-30/boe through 2030. This results in lower unit profitability and higher break-even prices for the company's assets compared with peers. The company's high costs are partially offset by favourable price realisations, given EnQuest's high share of liquids production compared with peers. Improving Geographic Diversification: EnQuest is a UKCS-focussed producer, with the North Sea accounting for about 84% of segment revenue in 2025. Fitch expects the company to continue to generate most of its earnings from UK operations, but also expect the 2025 acquisition of assets in Vietnam, which generate about 5kboe/d of run-rate production and continued investment into the company's existing Malaysian assets, to provide a modestly growing base of non-UK volumes and earnings, helping to offset field declines in the UK. Moderate Leverage: Fitch expects the company's Fitch-defined FFO leverage to average about 2.5x by end-2030, while FFO net leverage will average about 1.1x, which Fitch views as manageable. Management maintains a through-the-cycle net debt-to-EBITDA target of 0.5x, which Fitch views as positive. However, Fitch focuses on FFO-based leverage metrics, as they better capture the company's significant cash outlays for decommissioning and income taxes. UKCS Taxes Manageable: Fitch believes the UK government's combined tax rate of 78% on oil and gas producers will be manageable for EnQuest, given its material base of accumulated tax losses, which should allow it to offset future profits, and the relief mechanism under the Energy Profit Levy in periods when both oil and gas prices are very low. Fitch assumes the annual tax payments will average about USD45 million by end-2030. However, the lack of clarity on the evolution of taxation in the UKCS reduces longer-term cash flow visibility. Good Operational Record: The company's assets are mostly mature and subject to gradual field declines, but EnQuest has a strong record of maintaining high asset uptime and optimising production volumes through enhanced oil recovery techniques and other measures. Peer Analysis Trident Energy, L.P. (B+/Stable), Talos Energy Inc. (B/Stable) and W&T Offshore, Inc. (B-/Stable) have business models similar to EnQuest's, focussing on acquiring and operating mature assets with low decline rates, limited exposure to greenfield projects and disciplined capital deployment. This supports stable production and modest capex across the peer group. All three also maintain manageable through-the-cycle leverage. Talos is the largest peer, with production of about 95 kboe/d, followed by Trident at about 70 kboe/d. W&T is broadly in line with EnQuest at about 35 kboe/d. Trident has the largest reserves, with 2P reserves of 344 mmboe, materially higher than Talos's 278 mmboe and W&T's 242 mmboe. Talos's reserve life is shorter than EnQuest's, which reflects faster depletion. W&T's proved reserves are similar to EnQuest's, but its 2P reserves are higher. Operating costs differentiate the group. Trident and Talos have lower unit operating cash costs of about USD20/bbl, compared with EnQuest's USD25-30/bbl. However, EnQuest benefits from higher price realisations because of its high share of liquids production. W&T is weaker at about USD30/bbl, although it has lower capital intensity. EnQuest and Talos have similar capital intensity. Given EnQuest's exposure to a higher-tax jurisdiction, Fitch uses FFO-based metrics to compare it with peers in lower-tax jurisdictions. Fitch expects EnQuest's through-the-cycle FFO gross leverage to stay about 3.0x. This is higher than Talos' and Trident's FFO gross leverage of 1.5-1.8x, but below W&T's at about 4x. Fitch’s Key Rating-Case Assumptions - Oil and gas prices in-line with Fitch's base case price deck - Production averaging 40-45 kboe/d by end-2030 - Capex averaging USD100 million per year by end-2030 - Taxes averaging USD42 million per year by end-2030 - Decomissioning expenditure averaging USD65 million per year by end-2030 - Successful bond issuance in 2026 used to refinance existing debt with no material increase in total gross debt 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 (bb+, Lower), Sector Characteristics (b+, Lower), Market and Competitive Positioning (b, Higher), Diversification and Asset Quality (b, Moderate), Company Operational Characteristics (b-, Moderate), Profitability (b-, Higher), Financial Structure (bbb-, Moderate), and Financial Flexibility (b+, Moderate). - The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical 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 assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'a' results in no adjustment. - The SCP is 'b'. Recovery Analysis Its recovery analysis assumes that EnQuest would be reorganised as a going concern (GC) in bankruptcy rather than liquidated. EnQuest's GC EBITDA of USD225 million reflects its view on EBITDA generation from the group's assets, assuming a severe downturn in oil prices followed by a recovery to below USD50/bbl. Fitch has applied an enterprise value (EV)/EBITDA multiple of 4x to calculate a GC EV, which reflects the small scale of the company's assets partially offset by their presence in the UK North Sea with significant associated tax losses. The contemplated senior unsecured notes are subordinated to the USD400 million cash tranche of the company's reserve-based loan (RBL). The notes rank pari passu with the GBP42 million working capital facility, the GBP133 million retail bond and USD22 million vendor loan. The notes are guaranteed on a senior subordinated basis by subsidiaries contributing 90% of EnQuest's assets and 100% of its revenue. For its recovery analysis, Fitch assumes that both the senior secured RBL and the senior unsecured SVT working capital facility are fully drawn. Its analysis, after deducting 10% for administrative claims and taking into account its Country-Specific Treatment of Recovery Ratings Criteria, generated a waterfall-generated recovery computation in the 'RR3' band, indicating a 'B+(EXP)' instrument rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Failure to maintain production above 40kboe/d on a sustained basis - Fitch-defined FFO leverage above 3x or FFO net leverage above 2x on a sustained basis - Increase in liquidity and refinancing risk Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Increasing production to over 70kboe/d on a sustained basis while maintaining an adequate reserve life - Fitch-defined FFO leverage below 2x or FFO net leverage below 1x on a sustained basis Liquidity and Debt Structure EnQuest's liquidity at end-2025 comprised USD266 million of cash and a fully undrawn USD400 million RBL facility maturing in 2031. This comfortably covers short-term debt of about USD60 million. However, EnQuest must address its upcoming 2027 bond maturities of USD644 million. The proposed refinancing of the USD465 million bond would cover the largest portion of EnQuest's refinancing needs until 2028, when its RBL starts amortising. Issuer Profile EnQuest plc is an independent oil & gas exploration and production company, primarily active in the UK North Sea as well as in Southeast Asia (Malaysia, Vietnam, Brunei). Date of Relevant Committee 17-Apr-2026 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 Climate.VS for 2035 for EnQuest PLC is 53, which is average for oil and gas production companies. This does not affect the ratings currently as the energy transition is expected to occur over a very long timescale and there continues to be a high level of uncertainty over the pace and form of the transition. Any impact on the rating may differ from the illustrative rating impact in the Climate.VS framework, reflecting the evolution of Fitch's assessment of the global risks, action the entity might take to adapt to or mitigate the exposure, and any other relevant factors. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery ----------- ------ -------- EnQuest PLC LT IDR B New Rating senior unsecured LT B+(EXP) Expected Rating RR3 FREESIA PLACE PROPERTY: FRP Advisory, BTG Named as Administrators ----------------------------------------------------------------- Freesia Place Property Limited was placed into administration in the High Court of Justice, Court Number CR-2026-002086. David Hudson and Simon Baggs of FRP Advisory Trading Limited, and Paul Cooper of BTG Begbies Traynor (London) LLP, were appointed as joint administrators on March 16, 2026. Freesia Place Property Limited carried on a business of buying and selling of own real estate. Its registered office is at 134 Buckingham Palace Road, London, SW1W 9SA (in the process of being changed to FRP Advisory Trading Limited, 2nd Floor, Churchill House, 26–30 Upper Marlborough Road, St Albans, AL1 3UU). Its principal trading address is 134 Buckingham Palace Road, London, SW1W 9SA. The Joint Administrators can be contacted at: David Hudson Simon Baggs FRP Advisory Trading Limited 110 Cannon Street London EC4N 6EU -- and -- Paul Steven Cooper BTG Begbies Traynor (London) LLP 31st Floor, 40 Bank Street Canary Wharf London E14 5NR Further details contact: The Joint Administrators Tel: 01727 811111 Alternative contact: Oliver Mulvaney Email: cp.stalbans@frpadvisory.com GREYCOAT HOUSE (GS): FRP Advisory, BTG Named as Administrators -------------------------------------------------------------- Greycoat House (GS) Limited was placed into administration in the High Court of Justice, Court Number CR-2026-001976. Simon Baggs and David Hudson of FRP Advisory Trading Limited, and Paul Steven Cooper of BTG Begbies Traynor (London) LLP, were appointed as Joint Administrators on March 13, 2026. Greycoat House (GS) Limited specialized in the buying and selling of own real estate and other letting and operating of own or leased real estate. Its registered office is 134 Buckingham Palace Road, London, SW1W 9SA (in the process of being changed to c/o FRP Advisory Trading Ltd, 2nd Floor, 120 Colmore Row, Birmingham, B3 3BD). Its principal trading address is 134 Buckingham Palace Road, London, SW1W 9SA. The Joint Administrators can be reached at: Simon Baggs David Hudson FRP Advisory Trading Limited 2nd Floor, 120 Colmore Row Birmingham B3 3BD -- and -- Paul Steven Cooper BTG Begbies Traynor (London) LLP 31st Floor, 40 Bank Street Canary Wharf London E14 5NR For further details, contact: The Joint Administrators Tel. No: 0121 710 1680 Email: cp.birmingham@frpadvisory.com Alternative contact: Abbie Lenihan HOLBORN (WS): FRP Advisory, BTG Appointed as Joint Administrators ----------------------------------------------------------------- Holborn (WS) Limited was placed into administration in the High Court of Justice, Court Number CR-2026-001984. Simon Baggs and David Hudson of FRP Advisory Trading Limited, and Paul Steven Cooper of BTG Begbies Traynor (London) LLP, were appointed as joint administrators on March 13, 2026. Holborn (WS) Limited carried on a business of buying and selling of own real estate and other letting and operating of own or leased real estate. Its registered office is at 134 Buckingham Palace Road, London, SW1W 9SA (in the process of being changed to c/o FRP Advisory Trading Ltd, 2nd Floor, 120 Colmore Row, Birmingham, B3 3BD). Its principal trading address is 134 Buckingham Palace Road, London, SW1W 9SA. The Joint Administrators can be contacted at: Simon Baggs David Hudson FRP Advisory Trading Limited 2nd Floor, 120 Colmore Row Birmingham B3 3BD -- and -- Paul Steven Cooper BTG Begbies Traynor (London) LLP 31st Floor, 40 Bank Street Canary Wharf London E14 5NR Further details contact: The Joint Administrators Tel: 0121 710 1680 Alternative contact: Abbie Lenihan Email: cp.birmingham@frpadvisory.com KNIGHTSBRIDGE (BP): FRP Advisory, BTG Named as Joint Administrators ------------------------------------------------------------------- Knightsbridge (BP) Limited was placed into administration in the High Court of Justice, Court Number CR-2026-002001. Simon Baggs and David Hudson of FRP Advisory Trading Limited, and Paul Steven Cooper of BTG Begbies Traynor (London) LLP, were appointed as Joint Administrators on March 13, 2026. Knightsbridge (BP) Limited carried on a business of buying and selling of own real estate and other letting and operating of own or leased real estate. Its registered office is at 134 Buckingham Palace Road, London, SW1W 9SA (in the process of being changed to c/o FRP Advisory Trading Ltd, 2nd Floor, 120 Colmore Row, Birmingham, B3 3BD). Its principal trading address is 134 Buckingham Palace Road, London, SW1W 9SA. The Joint Administrators can be contacted at: Simon Baggs David Hudson FRP Advisory Trading Limited 2nd Floor, 120 Colmore Row Birmingham B3 3BD -- and -- Paul Steven Cooper BTG Begbies Traynor (London) LLP 31st Floor, 40 Bank Street Canary Wharf London E14 5NR Further details contact: The Joint Administrators Tel: 0121 710 1680 Alternative contact: Abbie Lenihan Email: cp.birmingham@frpadvisory.com MONTAGUE MANSIONS (DS): FRP Advisory, BTG Named as Administrators ----------------------------------------------------------------- Montague Mansions (DS) Limited was placed into administration in the High Court of Justice, Court Number CR-2026-002017. Simon Baggs and David Hudson of FRP Advisory Trading Limited, and Paul Steven Cooper of BTG Begbies Traynor (London) LLP, were appointed as joint administrators on March 13, 2026. Montague Mansions (DS) Limited specialized in the buying and selling of own real estate and other letting and operating of own or leased real estate. Its registered office is at 134 Buckingham Palace Road, London, SW1W 9SA (in the process of being changed to c/o FRP Advisory Trading Ltd, 2nd Floor, 120 Colmore Row, Birmingham, B3 3BD). Its principal trading address is 134 Buckingham Palace Road, London, SW1W 9SA. The Joint Administrators can be reached at: Simon Baggs David Hudson FRP Advisory Trading Limited 2nd Floor, 120 Colmore Row Birmingham B3 3BD -- and -- Paul Steven Cooper BTG Begbies Traynor (London) LLP 31st Floor, 40 Bank Street Canary Wharf London E14 5NR For further details, contact: The Joint Administrators Tel. No: 0121 710 1680 Email: cp.birmingham@frpadvisory.com Alternative contact: Abbie Lenihan MUNIHIRE LCL: Kroll Advisory Appointed as Joint Administrators -------------------------------------------------------------- Munihire LCL Limited was placed into administration in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency and Companies List (ChD) Court Number CR-2026-001865. Philip Dakin and Benjamin John Wiles of Kroll Advisory Ltd were appointed as Joint Administrators on March 13, 2026. Munihire LCL Limited engaged in specialized construction activities not elsewhere classified. Its registered office is at Brush House, Star Road, Partridge Green, West Sussex, RH13 8RA. Its principal trading address is Elephant House, Woodhouse Road, Kelvedon, Essex, CO5 9DF. The Joint Administrators can be contacted at: Philip Dakin Benjamin John Wiles Kroll Advisory Ltd The News Building, Level 6 3 London Bridge Street London SE1 9SG Further details: The Joint Administrators Tel: +44 (0) 20 7089 4700 Alternative contact: Jodi.Sheridan Email: Jodi.Sheridan@Kroll.com =============== X X X X X X X X =============== KYRGYZSTAN: Fitch Affirms 'B' Foreign-Currency IDR, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has affirmed Kyrgyzstan's Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'B' with a Stable Outlook. The ratings reflect Kyrgyzstan's modest fiscal deficits, low government debt burden, and strong growth prospects, driven by investments in the energy and mining sectors. This is balanced by the country's small, low-income economy, which is heavily reliant on Russia for transit trade and remittances, and susceptible to regional geopolitical influences. Governance metrics are well below the 'B' median, despite improvement in political stability in recent years. Key Rating Drivers Strong Growth to Moderate: Kyrgyzstan's GDP grew by 10.1% on average in 2022-2025, driven by booming trade and capital inflows, and rapid expansion in construction. The country has benefited significantly from rerouted goods from China to Russia since 2022. Gold mining, particularly from the Kumtor mine, remains vital for export earnings and fiscal revenues. Fitch expects growth to slow to 6.0% in 2026 as trade and capital flows normalise. Risks of energy supply disruptions are limited, as Kyrgyzstan sources almost all its fuel imports from Russia, but the war in the Middle East adds to inflationary pressure and heightens risks to trade and logistics. Mega Projects Support Growth Prospects: Investments in the energy and mining sectors, favourable demographic trends, and efforts to diversify and formalise the economy will underpin medium- to long-term growth potential at 5%-5.5%. Preparations have begun for two mega projects, the Kambrata-1 Hydropower Plant, supported by the World Bank, and the China-Kyrgyzstan-Uzbekistan railway, each of which is expected to have a construction phase of about seven years. Overheating Economy: The economy is showing signs of overheating. Inflation accelerated to 8.2% in 2025 from 5.0% in 2024, although the National Bank of Kyrgyz Republic (NBKR) raised its policy rate to 11% from 9%. Monetary policy transmission remains limited amid excess liquidity in the system and underdeveloped domestic capital markets. The NBKR has injected local-currency liquidity with its large gold purchases, which was then sterilised through NBKR notes and foreign-exchange transactions. Fitch expects inflation to average 9% in 2026, above the NBKR target of 5%-7%, due to the oil price shock, strong wage and credit growth, and an expansionary fiscal stance. Broad money and private-sector credit have grown rapidly, while the labour market has tightened since 2022, with unemployment falling and nominal wages surging. Bank Recapitalisation: In 2025, the government issued its debut USD700 million Eurobond (equivalent to 3.1% of GDP) and aims to raise another USD1 billion over the coming years. The proceeds were used to capitalise state-owned Eldik Bank, which purchased 15-year government treasury bonds for the same amount, effectively channelling the funds back to the state. The government then extended budget loans equivalent to 1.4% of GDP to the State Mortgage Company and two banks and used 0.5% of GDP to purchase gold. The remaining proceeds are being held as deposits. A similar recapitalisation plan has been approved for another bank in 2026, where KGS60 billion will be raised from treasury bonds issued to the bank. The government will use KGS35 billion of the bond proceeds to extend a loan to the State Mortgage Company and the rest to capitalise the bank. Modest Fiscal Deficits: Fitch forecasts a wider fiscal deficit of 3.5% of GDP in 2026 from an estimated 0.1% in 2025 and surpluses in 2022-2024, reflecting its expectation of lower dividend payouts and higher capital expenditure driven by planned infrastructure investments. Its measure of the consolidated general government expenditure incorporates items that the government classifies as below-the-line financing, such as budget loans to the State Mortgage Company and banks. Debt to Increase: General government debt rose to 39.3% of GDP in 2025 from 36.2% of GDP in 2024, and Fitch expects the debt-to-GDP ratio to continue rising gradually to about 43% in the medium term, while remaining below the projected 'B' peer median (2027: 50.9%). Eurobond issuances in 2025 and those expected in 2027 underpin its projection that the interest payments-to-revenue ratio will double in 2025-2027 to near 7%, still well below the 'B' category median of 12.1%. Limited but Ongoing Secondary Sanction Risks: Four small Kyrgyzstan-based banks remain under sanctions. While the spillovers to the broader financial sector have been contained, banks continue to face high costs associated with correspondent banking and sanction compliance. The EU is considering export restrictions on Kyrgyzstan targeting at least two dual-use goods under its anti-circumvention tool aimed at preventing the re-export of such goods to Russia. External Imbalances: Kyrgyzstan runs a structural current account deficit, due to limited domestic production capacity and strong demand financed by remittances. Fitch expects the deficit to narrow to around 13% of GDP in 2026 from an estimated 14.5% in 2025. While Kyrgyzstan has been a key transit trade point since joining the WTO in 1998 and the Eurasian Economic Union (EAEU) in 2015, re-exports to Russia have surged since sanctions were imposed. Net errors and omissions rose above 30% of GDP in 2022 and 2023 before declining to 17% in 2025, reflecting distortions from unrecorded re-exports, as intra-EAEU trade is exempt from customs declarations. Gold Drives Surge in Reserves: International reserves reached USD8.6 billion by end-2025, from USD5.1 billion at end-2024, driven by gold valuation gains and the NBKR's purchases of domestically produced gold. Gold now comprises about 75% of international reserves. Fitch anticipates international reserves to increase to US9.2 billion by end-2026, covering about seven months of current external payments ('B' median: 4.3), supported by expected Eurobond proceeds from bank issuances. Upcoming Presidential Election: Kyrgyzstan has experienced repeated political upheaval, although stability improved after the 2021 presidential election. In February 2026, President Sadyr Japarov dismissed several senior officials, including a former close ally, pointing to further power consolidation ahead of the presidential election in January 2027. ESG - Governance: Kyrgyzstan has an ESG Relevance Score (RS) of '5' for both Political Stability and Rights and for the Rule of Law, Institutional and Regulatory Quality and Control of Corruption. These scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in its proprietary Sovereign Rating Model. Kyrgyzstan has a low WBGI ranking at 23.7, reflecting repeated leadership changes, lagging institutional capacity, uneven application of the rule of law and a high level of corruption. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - External Finances: A sustained decline in international reserves, for example, as a result of reduced remittances or disruptions to regional trade. - Macro: A material weakening of potential growth, for example due to persistently higher geopolitical tensions or deterioration in political stability, that damages economic and financial stability. - Public Finances: A significant rise in the debt-to-GDP ratio in the medium term, for example, due to sustained fiscal slippage or crystallisation of contingent liabilities. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Macro/Structural: Greater confidence in the sustainability of high GDP growth or improved governance standards. - External Finances: Reduction in external vulnerabilities, for example through significant accumulation of foreign-exchange reserves and reduction in the structural current account deficit. - Public Finances: Confidence in the stabilisation of government debt/GDP in the medium term and a material reduction in contingent liability risk. Sovereign Rating Model (SRM) and Qualitative Overlay (QO) Fitch's proprietary SRM assigns Kyrgyzstan a score equivalent to a rating of 'B' on the Long-Term Foreign-Currency (LT FC) IDR scale, up from 'B-' at the previous review. Fitch's sovereign rating committee adjusted the output from the SRM score to arrive at the final LT FC IDR by applying its QO, relative to SRM data and output, as follows: - Structural: +1 notch, to adjust for the negative effect on the SRM of Kyrgyzstan's take-up of the G20's debt service suspension initiative, which prompted a reset of the "years since default or restructuring event" variable (which can pertain both to official and commercial debt). In this case, Fitch judged that the deterioration in the model as a result of the reset does not signal a weakening of the sovereign's capacity and willingness to meet its obligations to private-sector creditors. - Macro: Fitch has introduced a -1 notch, to reflect its projected moderation of exceptionally strong growth that contributed to the one-notch improvement in the SRM score, as well as the small economy's vulnerability to shifts in global geopolitics, given dependence on Russia, relatively weak macroeconomic policy credibility and signs of overheating. Fitch's SRM is the agency's proprietary multiple regression rating model that employs 18 variables based on three-year centred averages, including one year of forecasts, to produce a score equivalent to a LT FC IDR. Fitch's QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within its criteria that are not fully quantifiable and/or not fully reflected in the SRM. Debt Instruments: Key Rating Drivers Senior Unsecured Debt Equalised: The senior unsecured long-term debt ratings are equalised with the applicable Long-Term IDR, reflecting Fitch's expectation of average recovery prospects in a default scenario. Fitch assigns the debt instruments a Recovery Rating of 'RR4'. Country Ceiling Fitch has revised the Country Ceiling for Kyrgyzstan up to 'B+' from 'B', bringing it one notch above the Long-Term Foreign-Currency IDR. This reflects moderate constraints and incentives, relative to the IDR, against capital or exchange controls being imposed that would prevent or significantly impede the private sector from converting local currency into foreign currency and transferring the proceeds to non-resident creditors to service debt payments. Fitch's Country Ceiling Model produced a starting point uplift of one notch above the IDR, up from 0 notches at the previous rating committee, partly driven by lower macro-financial stability risks associated with reduced dollarisation and lower net external debt. Fitch's rating committee did not apply a qualitative adjustment to the model result. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Kyrgyzstan. ESG Considerations Kyrgyzstan has an ESG Relevance Score of '5' for Political Stability and Rights as World Bank Governance Indicators have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and a key rating driver with a high weight. As Kyrgyzstan has a percentile rank below 50 for the respective Governance Indicator, this has a negative impact on the credit profile. Kyrgyzstan has an ESG Relevance Score of '5' for Rule of Law, Institutional & Regulatory Quality and Control of Corruption as World Bank Governance Indicators have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and are a key rating driver with a high weight. As Kyrgyzstan has a percentile rank below 50 for the respective Governance Indicators, this has a negative impact on the credit profile. Kyrgyzstan has an ESG Relevance Score of '4' for Human Rights and Political Freedoms as the Voice and Accountability pillar of the World Bank Governance Indicators is relevant to the rating and a rating driver. As Kyrgyzstan has a percentile rank below 50 for the respective Governance Indicator, this has a negative impact on the credit profile. Kyrgyzstan has an ESG Relevance Score of '4' for Creditor Rights as willingness to service and repay debt is relevant to the rating and is a rating driver for Kyrgyzstan, as for all sovereigns. As Kyrgyzstan participated in the G20's Debt Service Suspension Initiative in 2020, this has a negative impact on the credit profile. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Kyrgyzstan LT IDR B Affirmed B ST IDR B Affirmed B LC LT IDR B Affirmed B LC ST IDR B Affirmed B Country Ceiling B+ Upgrade B senior unsecured LT B Affirmed RR4 B ********* 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. 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