260513.mbx

260513.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 Wednesday, May 13, 2026, Vol. 27, No. 95 Headlines D E N M A R K NUUDAY A/S: Moody's Withdraws 'B2' Corporate Family Rating G E R M A N Y SC GERMANY 2023-1: Moody's Ups Rating on EUR10.5MM E Notes from Ba1 I R E L A N D BARINGS EURO 2019-2: Fitch Lowers Rating on Cl. F Notes to 'CCCsf' BLACKROCK EUROPEAN VIII: Moody's Cuts Rating on F-R Notes to Caa1 HARVEST CLO XXVII: Moody's Affirms B3 Rating on EUR11MM F Notes LEGATO EURO III: Fitch Assigns 'B-sf' Final Rating to Class F Notes PALMER SQUARE 2026-1: Fitch Assigns 'BB-sf' Rating to Class E Notes TIKEHAU CLO XV: Fitch Assigns 'B-sf' Final Rating to Class F Notes N E T H E R L A N D S TRUENOORD LIMITED: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable S P A I N CERVANTES BIDCO: Moody's Affirms 'B2' CFR, Outlook Remains Stable S W E D E N SBB HOLDING: Fitch Affirms 'B-' Long-Term IDR, Outlook Stable SBB PARENT: Fitch Affirms 'CCC' Long-Term IDR S W I T Z E R L A N D COLOSSEUM DENTAL: Fitch Affirms 'B' Long-Term IDR, Outlook Stable T U R K E Y CIMKO CIMENTO: Fitch Affirms 'B+' Long-Term IDR, Outlook Stable U N I T E D K I N G D O M AVATION PLC: Fitch Affirms 'B' Long-Term IDR, Outlook Stable GROSVENOR SQUARE: FRP Advisory, BTG Named as Joint Administrators KENSINGTON GARDENS: FRP Advisory, BTG Named as Joint Administrators MACQUARIE AIRFINANCE: Fitch Keeps 'BB+' IDR on Watch Positive ROSAMOND HOUSE: FRP Advisory, BTG Appointed as Joint Administrators ROSARY GARDENS: FRP Advisory, BTG Appointed as Joint Administrators TRINITY SQUARE 2021-1: Fitch Hikes Rating on Cl. X Notes to 'BB+sf' - - - - - ============= D E N M A R K ============= NUUDAY A/S: Moody's Withdraws 'B2' Corporate Family Rating ---------------------------------------------------------- Moody's Ratings withdraws all Nuuday A/S (TDC Brands under the new name) ratings at the issuer's request, including the B2 corporate family rating, the B2-PD probability of default rating, and the B2 rating on the EUR500 million senior secured term loan B (TLB) due in February 2028. Prior to the withdrawal, the outlook was negative. RATINGS RATIONALE Moody's have decided to withdraw the rating(s) following a review of the issuer's request to withdraw its rating(s). TDC Brands is the leading telecommunications service provider in Denmark. The company has become the leading provider of digital services in Denmark, providing fixed-line, internet and mobile services to around 5.9 million customers in the country. In 2025, TDC Brands generated revenue of DKK14.8 billion and EBITDA of DKK1.5 billion. ============= G E R M A N Y ============= SC GERMANY 2023-1: Moody's Ups Rating on EUR10.5MM E Notes from Ba1 ------------------------------------------------------------------- Moody's Ratings has upgraded the ratings of five notes in LT Autorahoitus V DAC (Tommi 5) and SC Germany S.A., Compartment Leasing 2023-1. The rating action reflects the increased levels of credit enhancement for the affected notes, and, in SC Germany S.A., Compartment Leasing 2023-1, better than expected collateral performance. Moody's affirmed the ratings of the notes that had sufficient credit enhancement to maintain their current ratings. Issuer: LT Autorahoitus V DAC (Tommi 5) EUR450.5M Class A Notes, Affirmed Aaa (sf); previously on Feb 15, 2024 Definitive Rating Assigned Aaa (sf) EUR15.1M Class B Notes, Upgraded to Aaa (sf); previously on Feb 15, 2024 Definitive Rating Assigned Aa1 (sf) Issuer: SC Germany S.A., Compartment Leasing 2023-1 EUR624.7M Class A Notes, Affirmed Aaa (sf); previously on Dec 13, 2023 Definitive Rating Assigned Aaa (sf) EUR29.8M Class B Notes, Upgraded to Aa1 (sf); previously on Dec 13, 2023 Definitive Rating Assigned Aa2 (sf) EUR14M Class C Notes, Upgraded to Aa2 (sf); previously on Dec 13, 2023 Definitive Rating Assigned A2 (sf) EUR14M Class D Notes, Upgraded to A1 (sf); previously on Dec 13, 2023 Definitive Rating Assigned Baa2 (sf) EUR10.5M Class E Notes, Upgraded to A2 (sf); previously on Dec 13, 2023 Definitive Rating Assigned Ba1 (sf) RATINGS RATIONALE The rating action is prompted by an increase in credit enhancement for the affected tranches. In SC Germany S.A., Compartment Leasing 2023-1, the rating action is prompted also by decreased key collateral assumptions. Revision of Key Collateral Assumptions As part of the rating action, Moody's reassessed Moody's expected default rate and recovery rate assumptions for the portfolio reflecting the collateral performance to date. LT Autorahoitus V DAC (Tommi 5) The transaction has performed worse than expected. 90 days plus arrears currently stand at 1.22% of current pool balance showing an increasing trend over the past year. Cumulative defaults currently stand at 1.57% of original pool balance, up from 0.71% a year earlier. Moody's have increased the current default probability assumption to 2.3% from 2.0% of the current portfolio balance, which corresponds to a default probability assumption of 2.42% based on original portfolio balance. Moody's have maintained the recovery rate assumption at 45%. Moody's reassessed Moody's Portfolio Credit Enhancement ("PCE") assumption for this transaction. PCE reflects the credit enhancement consistent with the highest rating achievable in Finland. As a result, Moody's have maintained the PCE assumption at 10%. SC Germany S.A., Compartment Leasing 2023-1 The transaction has continued to perform better than expected. 90 days plus arrears currently stand at 0.66% of current pool balance showing a stable trend over the past year. Cumulative defaults currently stand at 0.44% of original pool balance, slightly up from 0.25% a year earlier. Moody's have decreased the current default probability assumption to 1.0% from 1.2% of the current portfolio balance, which corresponds to a default probability assumption of 0.69% based on original portfolio balance. Moody's have maintained the recovery rate assumption at 55%. Moody's reassessed Moody's Portfolio Credit Enhancement ("PCE") assumption for this transaction. PCE reflects the credit enhancement consistent with the highest rating achievable in Germany. As a result, Moody's have decreased the PCE assumption to 5% from 7%. Increase in Available Credit Enhancement LT Autorahoitus V DAC (Tommi 5) Sequential amortization led to the increase in the credit enhancement available in this transaction. The credit enhancement for the Class B tranche increased to 14.8% from 6.2% since closing. SC Germany S.A., Compartment Leasing 2023-1 Class F was repaid by excess spread at the beginning of the transaction, which resulted in a build-up of overcollateralization. Although the notes are amortising pro rata, the available credit enhancement for the notes is increasing as the transaction amortises. For instance, the credit enhancement for the Class D and the Class E increased respectively to 5.6% from 3.8% and to 4.1% from 2.3% since closing. The principal methodology used in these ratings was "Moody's Global Approach to Rating Auto Loan- and Lease-Backed ABS" published in June 2025. Factors that would lead to an upgrade or downgrade of the ratings: Factors or circumstances that could lead to an upgrade of the ratings include (1) performance of the underlying collateral that is better than Moody's expected, (2) an increase in available credit enhancement and (3) improvements in the credit quality of the transaction counterparties and (4) a decrease in sovereign risk. Factors or circumstances that could lead to a downgrade of the ratings include (1) an increase in sovereign risk, (2) performance of the underlying collateral that is worse than Moody's expected, (3) deterioration in the notes' available credit enhancement and (4) deterioration in the credit quality of the transaction counterparties. ============= I R E L A N D ============= BARINGS EURO 2019-2: Fitch Lowers Rating on Cl. F Notes to 'CCCsf' ------------------------------------------------------------------ Fitch Ratings has upgraded Barings Euro CLO 2019-2 DAC's class B-1-R, B-2 and C-R notes and downgraded the class E and F notes. Fitch has affirmed the class A-1-R, A-2-R and D-R notes. Entity/Debt Rating Prior ----------- ------ ----- Barings Euro CLO 2019-2 DAC A-1-R XS2437838019 LT AAAsf Affirmed AAAsf A-2-R XS2437838795 LT AAAsf Affirmed AAAsf B-1-R XS2437839330 LT AA+sf Upgrade AAsf B-2 XS2091902812 LT AA+sf Upgrade AAsf C-R XS2437840692 LT A+sf Upgrade Asf D-R XS2437841237 LT BBB-sf Affirmed BBB-sf E XS2091904602 LT B+sf Downgrade BB-sf F XS2091905161 LT CCCsf Downgrade B-sf Transaction Summary Barings Euro CLO 2019-2 DAC is a cash flow CLO mostly comprising senior secured obligations. The transaction is actively managed by Barings (U.K.) Limited and exited its reinvestment period in July 2024. Reinvestment is subject to the reinvestment criteria. KEY RATING DRIVERS Par Erosion Affects Junior Notes: The transaction is currently 5.4% below par (calculated as the current par difference below the original target par), up from 4.2% below par at the last review. Exposure to assets with a Fitch-derived rating of 'CCC+' or lower has recently fallen to 6.4%, according to the latest trustee report dated 14 April 2026. However, the decline partly reflects sales of assets below par, which have led to further par erosion of about EUR5 million over the last year. Exposure to obligors with a Negative Outlook on their driving ratings is 26.8%, as calculated by Fitch. The portfolio has around EUR5.1 million of defaulted assets with low recovery prospects. Par erosion and performance deterioration, together with expectations of further par-losses from asset sales, has led to the downgrades of the class E and F notes and the Negative Outlook on the class E notes. Fitch estimates the current market value of the portfolio is below the outstanding balance of the rated notes, making full repayment through liquidation unlikely for the class F notes. Fitch acknowledges that market values may be volatile, resulting in substantial credit risk for the class F notes, which has led to their downgrade to 'CCCsf'. Amortisation Increased Credit Enhancement: The transaction has deleveraged since the last review in June 2025, with the class A-1-R notes paying down by about EUR116 million, including the payment made on 24 April 2026. The amortisation has led to an increase in credit enhancement for the senior and mezzanine notes, which has driven the upgrade of the class B-1-R, B-2 and C-R notes. Short tail period: The portfolio comprises 9.6% of non-defaulted assets maturing within one year of the notes' maturity date, and 19.9% maturing within 18 months. These assets are subject to the risk of becoming long-dated if amended and extended, or of having an insufficient work-out period if they default at maturity. Unlike more recent CLO transactions, no haircut is applied to long-dated assets under the deal documentation to calculate the par value tests. This would mainly affect the more junior classes. Transaction Out of Reinvestment Period: The manager stopped reinvesting in October 2025 due to breaches of several tests, including the Fitch 'CCC' test and the class F par value test. However, most of these tests were cured or were close to being cured at the 24 April 2026 payment date. Accordingly, in its upgrade analysis Fitch assumed that the manager will resume reinvesting and tested the ratings for upgrades based on a stressed portfolio, with a weighted average life floor of four years under its criteria, across the Fitch test matrix set out in the documentation. Deviation from MIR: The class B-1-R and B-2 notes are one notch and class D-R notes are two notches below their model-implied ratings due to a limited cushion against their breakeven default rates. 'B'/'B-' Portfolio: Fitch assesses the average credit quality of the underlying obligors at 'B'/'B-'. The weighted average rating factor of the current portfolio is 25.63, as calculated by Fitch under its latest criteria. High Recovery Expectations: Senior secured obligations comprise 92% of the portfolio. 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 of the current portfolio is 60.1%. Diversified Portfolio: The portfolio is well-diversified across obligors, countries and industries. The top 10 obligor concentration, as calculated by Fitch, is 23.1%, and no obligor represents more than 3.2% of the portfolio balance. Exposure to the three largest Fitch-defined industries is 26.1%, as calculated by Fitch. Fixed-rate assets, as reported by the trustee, are at 14.8%, currently complying with the limit of 15%. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Based on the current portfolio, downgrades may occur if the loss expectation is larger than initially 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 occur on 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 Barings Euro CLO 2019-2 DAC Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Barings Euro CLO 2019-2 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. BLACKROCK EUROPEAN VIII: Moody's Cuts Rating on F-R Notes to Caa1 ----------------------------------------------------------------- Moody's Ratings has taken a variety of rating actions on the following notes issued by BlackRock European CLO VIII Designated Activity Company: EUR30,000,000 Class B-1-R Senior Secured Floating Rate Notes due 2036, Upgraded to Aa1 (sf); previously on Feb 22, 2022 Definitive Rating Assigned Aa2 (sf) EUR10,000,000 Class B-2-R Senior Secured Fixed Rate Notes due 2036, Upgraded to Aa1 (sf); previously on Feb 22, 2022 Definitive Rating Assigned Aa2 (sf) EUR25,000,000 Class C-R Senior Secured Deferrable Floating Rate Notes due 2036, Upgraded to A1 (sf); previously on Feb 22, 2022 Definitive Rating Assigned A2 (sf) EUR12,000,000 Class F-R Senior Secured Deferrable Floating Rate Notes due 2036, Downgraded to Caa1 (sf); previously on Feb 22, 2022 Definitive Rating Assigned B3 (sf) Moody's have also affirmed the ratings on the following notes: EUR248,000,000 Class A-R Senior Secured Floating Rate Notes due 2036, Affirmed Aaa (sf); previously on Feb 22, 2022 Definitive Rating Assigned Aaa (sf) EUR28,000,000 Class D-R Senior Secured Deferrable Floating Rate Notes due 2036, Affirmed Baa3 (sf); previously on Feb 22, 2022 Definitive Rating Assigned Baa3 (sf) EUR20,000,000 Class E-R Senior Secured Deferrable Floating Rate Notes due 2036, Affirmed Ba3 (sf); previously on Feb 22, 2022 Definitive Rating Assigned Ba3 (sf) BlackRock European CLO VIII Designated Activity Company, issued in June 2019 and refinanced in February 2022, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European and US loans. The portfolio is managed by BlackRock Investment Management (UK) Limited. The transaction's reinvestment period will end in August 2026. RATINGS RATIONALE The upgrades on the ratings on the Class B-1-R, B-2-R and C-R notes are primarily a result of the benefit of the shorter period of time remaining before the end of the reinvestment period in August 2026; the downgrade of the Class F-R notes reflects the overall deterioration in over collateralisation ratios, with continued weakening over the past 12 months. The affirmations on the ratings on the Class A-R, D-R and E-R notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after considering the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. In light of reinvestment restrictions during the amortisation period, and therefore the limited ability to effect significant changes to the current collateral pool, Moody's analysed the deal assuming a higher likelihood that the collateral pool characteristics would maintain an adequate buffer relative to certain covenant requirements. The over-collateralisation ratios of the rated notes have deteriorated since the refinancing in February 2022 and more specifically over the last 12 months. According to the trustee report dated April 2026[1], the Class A/B, Class C, Class D, Class E and Class F OC ratios are reported at 134.14%, 123.43%, 113.29%, 107.02% and 103.57% compared to April 2025[2] levels of 135.62%, 124.78%, 114.54%, 108.19% and 104.71%, respectively. 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: EUR386.2m Defaulted Securities: EUR0.4m Diversity Score: 60 Weighted Average Rating Factor (WARF): 2858 Weighted Average Life (WAL): 4.45 years Weighted Average Spread (WAS) (before accounting for Euribor): 3.56% Weighted Average Coupon (WAC): 2.94% Weighted Average Recovery Rate (WARR): 43.23% Par haircut in OC tests and interest diversion test: 0% The default probability derives from the credit quality of the collateral pool and Moody's expectations of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into Moody's cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Collateralized Loan Obligations" published in April 2026. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as the account bank and swap provider, using the methodology "Structured Finance Counterparty Risks" published in May 2025. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: Once reaching the end of the reinvestment period in August 2026, 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. -- Weighted average life: The notes' ratings are sensitive to the weighted average life assumption of the portfolio, which could lengthen as a result of the manager's decision to reinvest in new issue loans or other loans with longer maturities, or participate in amend-to-extend offerings. The effect on the ratings of extending the portfolio's weighted average life can be positive or negative depending on the notes' seniority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analysed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. 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. HARVEST CLO XXVII: Moody's Affirms B3 Rating on EUR11MM F Notes --------------------------------------------------------------- Moody's Ratings has upgraded the ratings on the following notes issued by Harvest CLO XXVII Designated Activity Company: EUR28,100,000 Class B-1 Senior Secured Floating Rate Notes due 2034, Upgraded to Aa1 (sf); previously on Nov 30, 2021 Definitive Rating Assigned Aa2 (sf) EUR12,500,000 Class B-2 Senior Secured Fixed Rate Notes due 2034, Upgraded to Aa1 (sf); previously on Nov 30, 2021 Definitive Rating Assigned Aa2 (sf) Moody's have also affirmed the ratings on the following notes: EUR246,000,000 Class A Senior Secured Floating Rate Notes due 2034, Affirmed Aaa (sf); previously on Nov 30, 2021 Definitive Rating Assigned Aaa (sf) EUR26,000,000 Class C Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed A2 (sf); previously on Nov 30, 2021 Definitive Rating Assigned A2 (sf) EUR26,400,000 Class D Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Baa3 (sf); previously on Nov 30, 2021 Definitive Rating Assigned Baa3 (sf) EUR23,000,000 Class E Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Ba3 (sf); previously on Nov 30, 2021 Definitive Rating Assigned Ba3 (sf) EUR11,000,000 Class F Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed B3 (sf); previously on Nov 30, 2021 Definitive Rating Assigned B3 (sf) Harvest CLO XXVII Designated Activity Company, issued in November 2021, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Investcorp Credit Management EU Limited. The transaction's reinvestment period will end in July 2026. RATINGS RATIONALE The rating upgrades on the Class B-1 and B-2 notes are primarily a result of the benefit of the shorter period of time remaining before the end of the reinvestment period in July 2026. The affirmations on the ratings on the Class A, C, D, E and F notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. In light of reinvestment restrictions during the amortisation period, and therefore the limited ability to effect significant changes to the current collateral pool, Moody's analysed the deal assuming a higher likelihood that the collateral pool characteristics would maintain an adequate buffer relative to certain covenant requirements. The key model inputs Moody's uses in Moody's analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on Moody's published methodology and could differ from the trustee's reported numbers. In Moody's base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR390.3m Defaulted Securities: EUR0 Diversity Score: 55 Weighted Average Rating Factor (WARF): 3051 Weighted Average Life (WAL): 4.32 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.63% Weighted Average Coupon (WAC): 4.16% Weighted Average Recovery Rate (WARR): 43.83% 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 Moody's are analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Collateralized Loan Obligations" published in April 2026. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank, using the methodology "Structured Finance Counterparty Risks" published in May 2025. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: Once reaching the end of the reinvestment period in July 2026, 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. -- Weighted average life: The notes' ratings are sensitive to the weighted average life assumption of the portfolio, which could lengthen as a result of the manager's decision to reinvest in new issue loans or other loans with longer maturities, or participate in amend-to-extend offerings. The effect on the ratings of extending the portfolio's weighted average life can be positive or negative depending on the notes' seniority. 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. LEGATO EURO III: Fitch Assigns 'B-sf' Final Rating to Class F Notes ------------------------------------------------------------------- Fitch Ratings has assigned final ratings and Rating Outlooks to Legato Euro CLO III DAC notes, as detailed below. Entity/Debt Rating ----------- ------ Legato Euro CLO III DAC Class A XS3278754935 LT AAAsf New Rating Class A-1 Loan LT AAAsf New Rating Class A-2 Loan LT AAAsf New Rating Class B XS3278755155 LT AAsf New Rating Class C XS3278755312 LT Asf New Rating Class D XS3278755585 LT BBB-sf New Rating Class E XS3278755742 LT BB-sf New Rating Class F XS3278756120 LT B-sf New Rating Transaction Summary Legato Euro CLO III 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 have been used to fund a portfolio with a target par of EUR450 million that is actively managed by LGT Capital Partners (U.K.) Limited. The collateralised loan obligation (CLO) has a 4.5-year reinvestment period and a 7.5-year weighted average life test (WAL) at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch places the average credit quality of obligors at 'B'. The Fitch weighted average rating factor (WARF) of the identified portfolio is 23.5. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate (WARR) of the identified portfolio is 60.3%. Diversified Portfolio (Positive): The transaction includes various concentration limits, including a top 10 obligor concentration limit of 20% and a maximum exposure to the three largest Fitch-defined industries of 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction includes two Fitch test matrix sets, and each set comprises two matrices that correspond to two fixed-rate asset limits of 5% and 12.5%, respectively. All matrices correspond to a top 10 obligor limit at 20%. One set is effective at closing, corresponding to a 7.5-year WAL test. The other set, which corresponds to a seven-year WAL test, is effective six months after closing, or 18 months after closing if WAL steps up by one year. Switching to the forward matrices is subject to the satisfaction of the reinvestment target par condition. The transaction has a 4.5-year reinvestment period, which is governed by reinvestment criteria that are 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. WAL Test Step-Up Feature (Neutral): The transaction can extend its WAL by one year on the WAL step-up determination date, which is one year after closing. The WAL extension is subject to conditions including the adjusted collateral principal amount being at least equal to the reinvestment target par balance. The forward matrix set is not applicable on the date falling 12 months post-closing if the WAL step up condition is met on that date. Cash Flow Analysis (Neutral): The WAL used for the transaction's Fitch-stressed portfolio is 12 months shorter than the WAL covenant at issue date. This is to account for strict structural and reinvestment conditions after the reinvestment period, including the satisfaction of coverage tests and the Fitch 'CCC' limitation test. These conditions reduce the effective risk horizon of the portfolio in stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade An increase of the mean default rate (RDR) by 25% and a decrease of the recovery rate (RRR) by 25% at all ratings in the identified portfolio would lead to downgrades of one notch each for the class D and E notes, two notches for the class B and C notes, to below 'B-sf' for the class F notes, and would not affect the class A notes. 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. The class B and C notes each have a one-notch cushion, and the class D to F notes each have a two-notch cushion, due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. The class A notes have no rating cushion. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded 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 three notches for the notes, except for the class E and F notes, which would be downgraded to below 'B-sf'. 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 two notches, except for 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 transaction's remaining life. 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 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 agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. Date of Relevant Committee 07 May 2026 ESG Considerations Fitch does not provide ESG relevance scores for Legato Euro CLO III 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. PALMER SQUARE 2026-1: Fitch Assigns 'BB-sf' Rating to Class E Notes ------------------------------------------------------------------- Fitch Ratings has assigned Palmer Square European Loan Funding 2026-1 DAC notes final ratings, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Palmer Square European Loan Funding 2026-1 DAC A XS3321032537 LT AAAsf New Rating AAA(EXP)sf B XS3321032883 LT AAsf New Rating AA(EXP)sf C XS3321033006 LT Asf New Rating A(EXP)sf D XS3321033345 LT BBB-sf New Rating BBB-(EXP)sf E XS3321033691 LT BB-sf New Rating BB-(EXP)sf Subordinated Notes XS3321033857 LT NRsf New Rating NR(EXP)sf Transaction Summary Palmer Square European Loan Funding 2026-1 DAC is a static cash flow CLO that is serviced by Palmer Square Europe Capital Management LLC (Palmer Square). Net proceeds from the notes were used to purchase a pool of primarily secured senior loans and bonds, with a target par of EUR500 million. KEY RATING DRIVERS 'B+'/'B' Portfolio Credit Quality (Neutral): Fitch places the average credit quality of obligors at 'B+'/'B'. The Fitch weighted average rating factor (WARF) of the current portfolio is 22.9. The portfolio includes 0.6% of 'CCC' obligations and 8% of the ratings are on Negative Outlook, a percentage well below the average for EMEA CLOs. High Recovery Expectations (Positive): Senior secured obligations and first lien loans make up most of the portfolio. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate of the current portfolio is 61.5%. Diversified Portfolio Composition (Positive): The three largest industries comprise about 33.3% of the portfolio balance, the top 10 obligors represent 8.5% of the portfolio balance and the largest five obligors represent 4.5% of the portfolio. Static Portfolio (Positive): The transaction does not have a reinvestment period, and while discretionary sales are not permitted, the manager may sell certain assets such as defaulted assets and credit-impaired assets, which, for example, can be any floating-rate assets with a price decline of 0.25%. Fitch's analysis is based on the current portfolio, which Fitch stressed by applying a one-notch reduction to all obligors with a Negative Outlook (floored at CCC-). After the adjustment for Negative Outlooks, the portfolio WARF would be 23.4. Deviation from Model-Implied Ratings: The minus one-notch deviation from the model-implied ratings (MIR) for the class B and C notes and the minus two-notch deviation for the class D and E notes reflect insufficient breakeven default rate cushion on Fitch-stressed portfolio at the MIRs, given an uncertain macro-economic outlook and the risk of excess spread compression from loan re-pricings. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase in the mean default rate (RDR) and a 25% decrease in the recovery rate (RRR) across all ratings in the current portfolio would result in one-notch downgrades of the class A, D and E notes and two-notch downgrades of the class B and C notes. 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. However, because the current portfolio's WARF is only marginally better than that of the Fitch-stressed portfolio - driven by the very low share of loans on Negative Outlook and their deviation from their MIRs - all notes except the class A notes have rating cushions. The class B and C notes have one-notch cushions, and the class D and E notes have two-notch cushions. If the cushion between the current portfolio and the Fitch-stressed portfolio were to erode due to manager trading or negative credit migration, a 25% increase in the mean RDR and a 25% decrease in the RRR across all ratings in the Fitch-stressed portfolio would result in downgrades of one notch each for the class A and D notes and two notches each for the class B, C and E notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction in the mean RDR and a 25% increase in the RRR across all ratings in the Fitch-stressed portfolio would result in upgrades of two notches for the class B notes, four notches each for the class C and E notes, and five notches for the class D notes. The class A notes are rated at the highest level on Fitch's scale and cannot be upgraded. Upgrades may result from a 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 Palmer Square European Loan Funding 2026-1 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. TIKEHAU CLO XV: Fitch Assigns 'B-sf' Final Rating to Class F Notes ------------------------------------------------------------------ Fitch Ratings has assigned Tikehau CLO XV DAC final ratings, as detailed below. Entity/Debt Rating ----------- ------ Tikehau CLO XV DAC A XS3264763155 LT AAAsf New Rating B XS3264763312 LT AAsf New Rating C XS3264763585 LT Asf New Rating D XS3264763742 LT BBB-sf New Rating E XS3264764047 LT BB-sf New Rating F XS3264764393 LT B-sf New Rating Subordinated Notes XS3264764476 LT NRsf New Rating Transaction Summary Tikehau CLO XV 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. The portfolio is actively managed by Tikehau Capital Europe Limited. The collateralised loan obligation (CLO) has a five-year reinvestment period and an eight-year weighted average life test (WAL) at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch places the average credit quality of obligors at 'B'. The Fitch weighted average rating factor (WARF) of the identified portfolio is 23.3. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate (WARR) of the identified portfolio is 61.3%. Diversified Asset Portfolio (Positive): The transaction has a concentration limit for the 10 largest obligors of 20%. The transaction also includes various other concentration limits, including a maximum exposure to the three-largest Fitch-defined industries in the portfolio at 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has a five-year reinvestment period, which is governed by reinvestment criteria that are similar to those of other European CLOs. 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. WAL Step-Up Feature (Neutral): The transaction can extend the WAL by one year on or after the WAL step-up determination date, which is 12 months after closing. The WAL extension is subject to conditions, including passing the collateral quality and coverage tests and the adjusted collateral principal amount being at least equal to the reinvestment target par balance. Cash Flow Modelling (Positive): The WAL used for the Fitch-stressed portfolio analysis was reduced by 12 months. This is to account for the strict reinvestment conditions envisaged after the reinvestment period. These include passing the coverage tests and the Fitch 'CCC' maximum limit and a WAL covenant that progressively steps down over time 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 have no impact on the class A notes but would lead to downgrades of one notch each for the class B, C, D, and E notes, and to below 'B-sf' for the class F notes. 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. The class B to F notes each have a rating cushion of two notches, due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. The class A notes have no rating cushion as they are already at 'AAAsf' 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 three notches each for the class A to D notes, and to below 'B-sf' for the class E and F 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 two notches each for the rated notes, except for the 'AAAsf' rated 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. 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 Tikehau CLO XV 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. ===================== N E T H E R L A N D S ===================== TRUENOORD LIMITED: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has affirmed TrueNoord Limited's Long-Term Issuer Default Rating (IDR) at 'BB-'. The Outlook is Stable. These rating actions are being taken in conjunction with Fitch's global aircraft leasing sector review. For more information on the sector review, please see "Fitch Ratings Completes Aircraft Lessor Peer Review; Revises Sector Outlook to Deteriorating,". Key Rating Drivers Scale Constrains Ratings: TrueNoord's Long-Term IDR is underpinned by its Standalone Credit Profile. The ratings reflect its moderate market position as a global, full-service lessor of regional jets and turboprop aircrafts, appropriate current and target leverage, limited near-term debt maturities, and sound liquidity. As TrueNoord is relatively smaller than many Fitch-rated aircraft lessor peers, constraints include execution risk tied to the company's significant growth targets, and higher residual value risk due to its focus on less liquid regional jets and turboprop aircraft. Stable Outlook: The Stable Outlook reflects its expectation that TrueNoord will manage its balance sheet to maintain sufficient headroom relative to its negative rating sensitivities over the Outlook horizon. It also reflects Fitch's expectations of appropriate asset quality, sufficient operating cash flow, improved funding flexibility, and sound liquidity. The announcement on 30 April 2026 of the takeover of Arcus Infrastructure Partners, an infrastructure fund manager, of 74% of TrueNoord's share capital, with the founding investor Freshstream holding the remainder, is credit neutral in its view, as Fitch does not expect changes in TrueNoord's corporate policy. Sector Rating Constraints: Rating constraints more broadly applicable to the aircraft lessor industry include the monoline nature of the business; potential exposure to residual value risks, the reliance on wholesale funding sources; and vulnerability to exogenous shocks, including sensitivity to higher oil prices, inflation and unemployment, which could negatively affect travel demand. Fitch also notes the ongoing Iran conflict and risk of protracted jet fuel shortages. Airlines globally have responded by cutting capacity on less-profitable routes, but lessors may still face increased requests for lease deferrals. If granted, these deferrals could negatively affect liquidity and internal capital generation over time. Growing Franchise: TrueNoord is focused on the regional jet and turboprop segment, with a portfolio net book value of USD1.4 billion at 31 December 2025. TrueNoord placed its first direct original equipment manufacturer (OEM) aircraft order in October 2025, which Fitch views as a positive development because it supports renewal of the aging fleet (average age of 10 years at end-3QFY26; financially year ending March), and improves visibility on fleet profile. The order includes 20 E195-E2 aircraft and purchase rights for an additional 30 aircraft (20 E195E2 and 10 E175-E1). Exposure to Weaker Airlines: TrueNoord's customer diversification is adequate, serving 32 lessees' customers in 24 countries, with no single customer representing more than 14% of the total current market value, as estimated by Fitch. However, TrueNoord's exposure to weaker credit quality lessees is higher than rated peers given its focus on the regional jet market. Fitch views TrueNoord's depreciation policy and underwriting approach as appropriately conservative, which should limit future asset-related impairment risk through the cycle. Aircraft values should also be supported by continuous aircraft supply constraint due to ongoing OEM and engine shortages and shorter maintenance cycles for new technology engines. Evolving Funding Mix, Adequate Liquidity: TrueNoord successfully issued a USD400 million senior unsecured debt in February 2026, increasing the share of unsecured debt to about 45% of total end-3QFY26 debt, improving funding flexibility. Fitch views the company's liquidity as adequate. Liquidity resources at end-3QFY26 included an estimated USD173 million of unrestricted cash and USD410 million of available capacity under its committed warehouse and term loans. Fitch estimates that available resources, expected operating cashflows and, following the expected increase in aircraft purchases in line with management targets, liquidity coverage will remain sound and above 1x. Fitch believes there is minimal refinancing risk, given the modest level of debt maturity in the near-term. Volatile Profitability, Increasing Net Spreads: TrueNoord's pre-tax earnings have been volatile over the past four years, reflecting pandemic-related lease transitions, and more recently, rising financing costs as the share of unsecured funding has increased. 9MFY26 annualised pre-tax return on average assets was modest at 0.4%. Net spreads, measured as lease yields less funding costs, improved to 4.6% in 3QFY26, from 4.0% in FY25. Fitch expects net spreads over the medium term will remain within the 'bb' benchmark range of 1%-5% for aircraft lessors operating in a 'bbb' sector risk environment. Sound Leverage: TrueNoord's Fitch-calculated leverage ratio (total funding to tangible equity), was stable at 2.2x at end-3QFY26. Fitch expects leverage will increase but that TrueNoord will maintain it below 3x, supported by profit retention. Fitch has assigned TrueNoord's USD50 million preferred shares a 50% equity credit, as any cumulative coupon can be paid as cash upon investor exit. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade TrueNoord's Long-Term IDR is sensitive to a weakening of projected long-term cash flow generation, net spreads weakening to close to or below 2.5% over a sustained period, liquidity coverage falling below 1.0x, and an increase in gross leverage above 3.0x for an extended period. Macroeconomic or geopolitical risks that pressure airlines and lead to lease restructurings and rejections, lessee defaults, and larger losses would also be negative for the ratings. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade The ratings could benefit in the medium-term from enhanced scale, as exhibited by lessee diversification, reduced exposure to weaker airlines, low impairment ratios, and a reduction in the proportion of tier 3 aircraft as categorised by Fitch. Net spreads in excess of 3% over a sustained period, unsecured debt approaching or in excess of 35%, while maintaining liquidity coverage in excess of 1.2x could also be positive for ratings. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES Senior Unsecured Debt Equalised: TrueNoord Capital DAC's senior unsecured debt rating of 'BB-' is equalised with TrueNoord's Long-Term IDR. This is due to TrueNoord's and other material subsidiaries' guarantee for TrueNoord Capital DAC and also reflects average recovery prospects in the event of financial distress, given the availability of unencumbered assets. ADJUSTMENTS The Standalone Credit Profile has been assigned in line with the implied Standalone Credit Profile. The sector risk operating environment score has been assigned in line with the implied score. The business profile score has been assigned in line with the implied score. The asset quality score has been assigned below the implied score due to the following adjustment reason(s): Risk profile and business model (negative). The earnings & profitability score has been assigned in line with the implied score. The capitalization & leverage score has been assigned below the implied score due to the following adjustment reason(s): risk profile and business model (negative). The funding, liquidity & coverage score has been assigned in line with the implied score. ESG Considerations TrueNoord has an ESG Relevance Score of '4' for Governance Structure, due to its limited board independence and the organisational complexity of its ownership structure. This has a negative impact on the credit profile and is relevant to the 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 Prior ----------- ------ ----- TrueNoord Limited LT IDR BB- Affirmed BB- TrueNoord Capital Designated Activity Company senior unsecured LT BB- Affirmed BB- ========= S P A I N ========= CERVANTES BIDCO: Moody's Affirms 'B2' CFR, Outlook Remains Stable ----------------------------------------------------------------- Moody's Ratings has affirmed the B2 long term corporate family rating and the B2-PD probability of default rating of Cervantes Bidco, S.L. (Cervantes), the top entity within the restricted group of Europa University Education Group, S.L.U. (Europa University Education or EUEG), a leading private higher education provider in Iberia. At the same time, Moody's also affirmed the B2 instruments on the group's EUR1,000 million senior secured term loan B (TLB) due 2031 and the EUR85 million senior secured revolving credit facility (RCF) due 2031, both borrowed by Cervantes Bidco, S.L. The outlook remains stable. "The affirmation of the B2 rating reflects Europa University Education's continued strong operating performance, high revenue and earnings visibility, and proven ability to deliver profitable growth," says Víctor García Capdevila, Vice President – Senior Analyst at Moody's Ratings and lead analyst for Europa University Education. "It is balanced by the group's elevated leverage following the January 2026 dividend recapitalisation and its ongoing exposure to the regulatory environment in Spain," adds Mr. García. RATINGS RATIONALE The affirmation of Europa University Education's B2 CFR reflects: (1) its leading and well established position in the fragmented private higher education market in Iberia; (2) very high revenue and EBITDA visibility, supported by committed, multi year student enrolments and predominantly prepaid tuition fees; (3) a strong and consistent track record of organic revenue and earnings growth since the inaugural rating, supported by robust growth in new enrolments and sustained pricing power; (4) resilient profitability, with EBITDA margins remaining above 30%; and (5) solid execution capabilities, evidenced by repeated outperformance versus budget and Moody's base case assumptions. The group continues to benefit from supportive demand fundamentals in private higher education in Spain and Portugal, particularly in undergraduate and official postgraduate programs. This is complemented by low and stable attrition rates, reflecting the multi year nature of degree programs, improving student mix, and a growing emphasis on undergraduate programs. These strengths are partly offset by: (1) high Moody's adjusted gross leverage, which increased materially following the EUR270 million dividend recapitalisation completed in January 2026; (2) moderate free cash flow generation in 2025, mainly driven by the final phase of an intensive capital expenditure program related to the opening of the Málaga and Portugal campuses; (3) the need to continue building a longer track record under the current ownership structure led by EQT; and (4) the company's exposure to political and regulatory developments in Spain. In October 2025, Spanish authorities enacted amendments to Royal Decree 640/2021, tightening the regulatory framework for private universities through more stringent requirements on academic offerings, faculty composition, research activity, and enrolment thresholds. While Europa University Education already complies with most of the new requirements and the near term impact is expected to be limited, some elements, including stringent requirements on academic program breadth, faculty composition and research outputs, could still weigh on margins, slow growth, and increase execution risk, reinforcing regulatory and political risk as an ongoing rating constraint. Moody's base case scenario assumes revenue growth of 16% and 18% to EUR570 million and EUR673 million in 2026 and 2027 respectively, supported by strong enrolment growth, price increases and stable attrition rates. Moody's forecasts Moody's-adjusted EBITDA growth of 18% and 21% to EUR176 million and EUR213 million respectively. As a result, Moody's-adjusted gross leverage is expected to reduce to 5.4x in 2027 from 6.5x in 2026. LIQUIDITY Europa University Education's liquidity is good. As of March 2026, the company had a cash balance of EUR50 million and full availability under its EUR85 million senior secured revolving credit facility, which is subject to a springing net debt/EBITDA covenant of 10.2x, tested when drawings exceed 40% of the facility. Cash flow generation is seasonal and closely linked to the academic cycle. While working capital is structurally negative at year-end, it shows pronounced quarter on quarter seasonality. Moody's forecasts positive free cash flow of about EUR34 million in 2026 (excluding the EUR270 million dividend payment) and around EUR120 million in 2027, supported by strong EBITDA growth and a material reduction in capital spending as the Málaga campus and the Oriente campus in Portugal are completed. The company has no debt maturities until 2031, when the RCF and term loan B (TLB) mature. STRUCTURAL CONSIDERATIONS The B2-PD probability of default rating is in line with the B2 corporate family rating (CFR), reflecting the 50% family recovery rate. This is consistent with Moody's standard approach for all covenant-lite TLB capital structures and takes into account the shared security and guarantor package, as well as the pari passu ranking of both instruments. The EUR1,000 million TLB and the EUR85 million RCF are rated B2, in line with the company's CFR. RATIONALE FOR THE STABLE OUTLOOK The stable outlook reflects Moody's expectations that EUEG will continue to record strong organic growth over the next 12-18 months, resulting in a reduction in leverage to 5.4x in 2027 from 6.5x in 2026. The stable outlook assumes no material debt-funded acquisitions or shareholder distributions. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upward pressure on the ratings could emerge if EUEG maintains Moody's-adjusted gross leverage below 5.0x and consistently generates positive free cash flow. Further drivers of positive rating momentum include increased operational scale and enhanced geographic diversification. Downward pressure on the ratings could arise as a result of a deterioration in EUEG's operating performance, debt-funded acquisitions or shareholder distributions, which will keep its Moody's-adjusted gross leverage above 6.0x on a sustained basis. Moody's could also downgrade the ratings if liquidity deteriorates; FCF remains negative for an extended period; or changes in the accreditation or regulatory landscape significantly weaken the company's business prospects. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Business and Consumer Services published in February 2026. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. COMPANY PROFILE Europa University Education Group, S.L.U. is a leading private higher education provider in Spain and Portugal, offering a broad range of accredited and non-accredited programs across on-site and online formats to more than 60,000 students. In 2025, it generated EUR490 million of revenue and EUR148 million of Moody's-adjusted EBITDA, and is majority owned by EQT (64%), Permira (35%) and the management team (1%). =========== S W E D E N =========== SBB HOLDING: Fitch Affirms 'B-' Long-Term IDR, Outlook Stable ------------------------------------------------------------- Fitch Ratings has affirmed Samhallsbyggnadsbolaget i Norden Holding AB (publ)'s (SBB Holding) Long-Term Issuer Default Rating (IDR) at 'B-' with a Stable Outlook, and its senior unsecured rating at 'B-'/'RR4'. The ratings reflect SBB Holding's main equity investments: Public Property Invest ASA's (PPI; BBB+/Stable) SEK51 billion community service portfolio, Sveafastigheter AB's (publ) (BBB-/Positive) SEK29 billion residential-for-rent portfolio and Nordiqus AB's SEK42 billion education portfolio. All are part-owned with stable operational performance. Debt interest payments can be met with cash dividends from these investments, but SBB Holding does not generate adequate operational cash flow to reduce high leverage (end-2025 net debt/EBITDA above 25.0x) or repay maturing senior unsecured bonds. It relies on monetisation options, including partial sales of investments, to deleverage to a more sustainable capital structure supported by recurring cash dividends from the remaining equity investments. Key Rating Drivers Dividends from Equity Investments: SBB Holding's three main equity interests are Nordiqus (49.8% ownership; education sector), Sveafastigheter (63%; residential-for-rent) and PPI (40.6%; community services). SBB Holding's IDR reflects a business profile, supported by its investments in these high-quality portfolios, balanced by its own weak financial profile, short debt maturity and associated refinancing risk. Dividends from PPI and Nordiqus will cover interest on SBB Holding's remaining senior unsecured bonds. Sveafastigheter has not paid any dividends, instead reinvesting profits into its portfolio. Monetisation options to repay SBB Holding's remaining debt include partial sales of these investment interests. SBB Holding also has a SEK6.1 billion portfolio of development assets and some smaller minority investments (some listed and dividend paying) totalling about SEK3.5 billion, both of which can also be monetised. Weak Financial Profile: SBB Holding's financial profile remains weak despite reduced debt. Fitch estimates SBB group's end-2026 net debt/EBITDA will remain above 25x. Fitch expects dividends from investments to grow, which will reduce SBB Holding's net debt/EBITDA. SBB Holding is owned by SBB - Samhallsbyggnadsbolaget i Norden AB (SBB Parent; CCC), which holds no assets other than cash, but holds SEK8.4 billion of non-performing hybrid debt. After the planned repayment of the 2026 bonds, assuming the remaining debt is refinanced at prevailing market rates, Fitch forecasts SBB Holding's end-2028 net debt/EBITDA at about 23.0x, loan-to-value (LTV) at about 65% and EBITDA net interest cover at about 1x. Fitch believes this high leverage to be unsustainable, and expects SBB Holdings to monetise part of its equity investments and repay most of its remaining unsecured bonds. PPI Investment: PPI's pan-Nordic NOK52 billion (SEK51 billion) portfolio of community service assets generated annualised rental income of about NOK3.5 billion at end-1Q26. The portfolio benefits from long CPI-indexed leases backed by government-linked tenants, with a 6.8-year weighted average unexpired lease term and 94% occupancy. Fitch treats PPI as deconsolidated and includes only its recurring rental-derived cash dividends within SBB Holding's EBITDA. Sveafastigheter Investment: Sveafastigheter's SEK29.4 billion residential-for-rent portfolio is located in expanding regions around Sweden, including Stockholm-Mälardalen, and university cities, like Malmö-Öresund and Gothenburg. This stable business profile is combined with moderate standalone leverage and forecast interest cover above 2.0x. Fitch deconsolidates Sveafastigheter and includes only its potential recurring rental-derived cash dividends in SBB Holding's EBITDA. Nordiqus Investment: SBB Holding also owns 49.8% of Nordiqus, with Brookfield owning the rest. Nordiqus has a SEK42 billion portfolio of Nordic educational assets benefiting from long-term rents that are mostly backed by government funding. Fitch deconsolidates Nordiqus and includes its cash dividend payments in SBB Holding's EBITDA. SBB Holding has also provided Nordiqus with a vendor loan of SEK5.3 billion (nominal value), due in January 2029. The loan is not currently generating any cash interest income. SBB Residential Property AB: This SEK6.1 billion residential-for-rent joint venture portfolio is partly funded by preference shares held by Morgan Stanley, which constrain dividend distributions to the parent. Currently, net of its expensive coupon, limited rental-derived dividends flow to SBB Holding. It remains an option for SBB Holding to prepay this funding and sell this entity or its portfolio. Beneficial Aker Equity Participation: Aker Property Group became a shareholder in SBB Parent in May 2025 through the sale of assets to PPI and the exchange of some of Aker's PPI shares for shares in SBB Parent. Aker now holds 8.9% of SBB Parent's equity and about 29.1% of the voting rights. Aker also injected equity into PPI and owns 33.8% of it following the sale of SBB Holding's community service assets to PPI. In its view, Aker's presence as a shareholder in SBB Parent could help improve the group's capital structure. Peer Analysis SBB Holding, as an investment holding company (IHC), is comparable to Heimstaden AB (B-/Negative), which has a single concentrated investment in Heimstaden Bostad AB (BBB-/Stable), whereas SBB Holding has a more diverse portfolio of three main equity investments across diverse asset classes. Both have finite cash resources, but Heimstaden AB has not been receiving cash dividends from its main investment in Heimstaden Bostad. Without these cash dividends, Heimstaden AB's management income is insufficient to cover its annual interest costs, heightening its refinancing risk. By contrast, Fitch believes SBB Holding has access to stable and growing dividends from PPI and Nordiqus to cover its annual interest costs. SBB Holding's community service portfolio peer is Assura Limited (BBB+/Negative), which develops and owns modern general practitioner (GP) facilities in the UK, with approved rents indirectly paid by the state-funded National Health Service and a long weighted average unexpired lease term. At GBP3.1 billion (EUR3.6 billion), Assura's portfolio is smaller than SBB Group's consolidated group portfolio of SEK50 billion (EUR4.6 billion). Its net initial yield at end-March 2025 was 5.23%, reflecting its UK community service activities, compared with SBB Group's 5.7% for its Nordic community service assets at end-2025. Sveafastigheter's SEK29.0 billion (EUR2.7 billion) Swedish residential-for-rent portfolio provides stable rental income and has a similar profile to portfolios in other heavily regulated jurisdictions, such as Germany and France, including those owned by Heimstaden Bostad AB, Vonovia SE (BBB+/Stable), SCI LAMARTINE (BBB+/Stable) and D.V.I. Deutsche Vermögens- und Immobilienverwaltungs Gmbh (BBB-/Stable). Fitch’s Key Rating-Case Assumptions - Cash flow received from joint ventures of about SEK680 million-750 million a year, mostly comprising PPI and Nordiqus dividends - Total capex to average about SEK300 million annually to 2028 - Disposals of about SEK900 million of development assets in 2026 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), Portfolio Credit Characteristics (bbb, Moderate), Portfolio Diversification (bb+, Moderate), Risk Appetite and Investment Track Record (bb+, Moderate), Transparency and Execution of Investment Strategy (b, Lower), Access to Capital (bb-, Moderate), Financial Structure (ccc, Higher), and Financial Flexibility (b+, Higher). - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'aa' results in no adjustment. - The SCP is 'b-'. To derive the IDR: - Application of Fitch's Parent and Subsidiary Linkage Rating Criteria results in a consolidated approach. Recovery Analysis The Corporate Recovery Ratings and Instrument Ratings Criteria guide senior debt for an IHC to be rated at the same level as the IDR, with its Recovery Rating capped at 'RR4'. This reflects the lower predictability of recoveries based on equity valuations of investments, which can deteriorate rapidly as an investment approaches financial distress, and the lack of control over those investments. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Insufficient visibility on sources of liquidity for near-term debt maturities - Fitch-calculated net LTV (as an IHC) consistently above 60% - Increased volatility in dividends from PPI and Nordiqus, resulting in SBB Holding's EBITDA net interest cover falling below 1.0x Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Fitch-calculated net LTV (as an IHC) consistently below 50% - Lower net debt/EBITDA and higher interest cover Liquidity and Debt Structure SBB Holding's consolidated accounts showed available cash at end-2025 of about SEK2.5 billion, of which SEK500 million was attributed to Sveafastigheter. A further SEK1.8 billion of cash is held at SBB Parent. Liquidity is further supported by an undrawn SEK2.5 billion asset-backed facility. SBB Holding's next significant debt maturity, about SEK5.4 billion, is due in August 2026 and should be covered by cash and availability under its asset-backed facility. SBB Holding's end-2025 average cost of debt on its fixed-rate bonds was a low 1.8% excluding the higher-coupon Morgan Stanley preference shares (13% cost) in SBB Residential Property AB. Fitch believes the cost of debt would increase substantially if the maturing bonds were refinanced at prevailing market rates. 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 SBB Holding. 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 ----------- ------ -------- ----- Samhallsbyggnadsbolaget i Norden Holding AB (publ) LT IDR B- Affirmed B- senior unsecured LT B- Affirmed RR4 B- SBB PARENT: Fitch Affirms 'CCC' Long-Term IDR --------------------------------------------- Fitch Ratings has affirmed SBB - Samhallsbyggnadsbolaget i Norden AB's (SBB Parent) Long-Term Issuer Default Rating (LT IDR) at 'CCC' and its senior unsecured rating at 'CC', with a Recovery Rating of 'RR6'. Following the disposal of the group's community service portfolio in December 2025, SBB Parent no longer holds any assets other than cash and generates no revenue, but it still holds about SEK8.4 billion of non-performing hybrid debt. SBB Parent does not plan to resume interest payment on these hybrids. Fitch now rates SBB Parent as an investment holding company (IHC) with equity investments held indirectly through Samhallsbyggnadsbolaget i Norden Holding AB (publ) (SBB Holding; B-/Stable). Key Rating Drivers Dividends Constraints: Headroom exists under SBB Holding's unsecured bond covenants to allow the upstreaming of cash (or restricted distributions, as defined in the bond documentation) to SBB Parent. However, any dividend payment by SBB Parent to its shareholders is possible only if interest payments on the hybrids resume. As a result, there is no incentive to upstream cash from SBB Holdings. IHC Criteria: In assessing SBB Parent as an IHC, Fitch considers the investments held by its wholly owned subsidiary, SBB Holding. The latter indirectly has three main equity interests: Nordiqus AB (49.8% ownership; education sector), Sveafastigheter AB (publ) (63%; residential-for-rent; BBB-/Positive) and Public Property Invest ASA (PPI; 40.6%, community service; BBB+/Stable). Under its criteria, SBB Parent's IDR reflects a business profile supported by its investments in these quality portfolios and its reliance on cash dividends, balanced against its own weak financial profile. SBB Parent Debt: SBB Parent has about SEK8.4 billion of hybrids remaining after using the group's 4Q25 asset sale proceeds for debt repayments. These deeply subordinated instruments are non-performing, after coupon deferral was triggered. Fitch does not apply equity credit to the hybrids retained by SBB Parent due to their lack of permanence under Fitch's Corporate Hybrids Treatment and Notching Criteria. These non-performing instruments are rated 'C', three notches below the IDR. Additionally, SBB Parent has an EUR40 million Schuldschein loan and a SEK3 million unsecured bond outstanding. Beneficial Aker Equity Participation: Aker Property Group became a shareholder in SBB Parent in May 2025 through the sale of assets to PPI and the exchange of some of Aker's PPI shares for shares in SBB Parent. Aker now holds 8.9% of SBB Parent's equity and about 29.1% of voting rights. Aker also injected equity into PPI and will own 33.8% of it, pro forma for this transaction. Fitch believes that Aker, as a shareholder, could help improve the group's capital structure. Weak Credit Profile: SBB Parent's ratings reflect its reliance on dividends from SBB Holding, the absence of directly held property assets generating rental income, high leverage and the lack of other standalone liquidity resources. Fitch differentiates SBB Parent's weaker credit profile from that of its stronger subsidiary, SBB Holding; it also takes into account the structural subordination of SBB Parent, which is rated two notches below SBB Holding's IDR. Peer Analysis SBB Parent, as an IHC, is comparable to Heimstaden AB (B-/Negative), which has a single concentrated investment holding in Heimstaden Bostad AB (BBB-/Stable), compared with SBB Parent's more diverse, albeit indirectly held, portfolio of three equity investments across different asset classes. Heimstaden AB has not been receiving cash dividends from its main investment in Heimstaden Bostad. Absent these cash dividends, Heimstaden AB's management income is insufficient to cover its annual interest costs, increasing its refinancing risk, although it has finite cash resources. Similarly, SBB Parent also does not have access to cash dividends, but its debt consists mainly of hybrids, which are non-performing and do not create refinancing risk. The SBB group's community service portfolio is comparable to that of Assura Limited (BBB+/Negative), which develops and owns modern general practitioner (GP) facilities in the UK, with approved rents indirectly paid by the state-funded National Health Service and a long weighted average unexpired lease term. At GBP3.1 billion (EUR3.6 billion), Assura's portfolio is smaller than the SBB group's consolidated portfolio of SEK50 billion (EUR4.6 billion). Its net initial yield at end-March 2025 was 5.23%, reflecting its UK community service activities, compared with 5.7% for the SBB group's Nordic community service assets at end-2025. Sveafastigheter's SEK29.0 billion (EUR2.7 billion) Swedish residential-for-rent portfolio provides stable rental income and has a similar profile to portfolios in other heavily regulated jurisdictions, such as Germany and France, including those owned by Heimstaden Bostad AB, Vonovia SE (BBB+/Stable), SCI LAMARTINE (BBB+/Stable) and D.V.I. Deutsche Vermögens- und Immobilienverwaltungs Gmbh (BBB-/Stable). Fitch’s Key Rating-Case Assumptions - Hybrid interest continues to be deferred 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), Portfolio Credit Characteristics (bbb, Moderate), Portfolio Diversification (bb+, Moderate), Risk Appetite and Investment Track Record (bb+, Moderate), Transparency and Execution of Investment Strategy (b, Lower), Access to Capital (bb-, Moderate), Financial Structure (ccc-, Higher), and Financial Flexibility (ccc, Higher). - The Governance assessment of 'Good' results in no adjustment. - The Operating Environment assessment of 'aa-' results in no adjustment. - The SCP is 'ccc'. To derive the IDR: - Application of Fitch's Parent and Subsidiary Linkage Rating Criteria results in a consolidated approach. Recovery Analysis Its recovery analysis assumes SBB Parent would be liquidated rather than reorganised as a going concern in a default. Fitch assumes no cash or assets are available for recoveries. Fitch's principal waterfall analysis generates a ranked recovery for the senior unsecured debt of 'RR6', leading to a 'CC' rating of unsecured debt. Fitch estimates a ranked recovery of 'RR6' for SBB Parent's hybrids, given their structural subordination. As loss absorption has been triggered through the deferral of coupons, the instrument rating is 'C', three notches below SBB Parent's IDR. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Failure to execute, or provide visibility on, a plan to address near-term debt maturities - Actions pointing to a widespread potential renegotiation of SBB Parent's debt terms and conditions, including a material reduction in lenders' terms sought to avoid a default Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Evidence that refinancing risk has eased, including improved capital-market access for the SBB group - A material reduction in leverage Liquidity and Debt Structure At end-2025, SBB Parent's available liquidity was about SEK1.8 billion, which Fitch expects will be used to meet SBB Holding's bond maturity in August 2026. It also had access to a SEK2.5 billion asset-backed facility held at SBB Holding, which remained fully undrawn. It had no revolving credit facilities available for drawdowns. SBB Parent's average cost of debt at end-2025 was 3.3% on its remaining hybrid instruments. 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 SBB Parent. ESG Considerations SBB Parent has an ESG Relevance Score '4' for Financial Transparency, reflecting an investigation by the Swedish authorities into the application of accounting standards and disclosures. These considerations have a negative impact on the credit profile and are relevant to the 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 ----------- ------ -------- ----- SBB – Samhallsbyggnadsbolaget i Norden AB LT IDR CCC Affirmed CCC ST IDR C Affirmed C Subordinated LT C Affirmed RR6 C senior unsecured LT CC Affirmed RR6 CC ===================== S W I T Z E R L A N D ===================== COLOSSEUM DENTAL: Fitch Affirms 'B' Long-Term IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Colosseum Dental Finance BV's Long-Term Issuer Default Rating (IDR) at 'B'. The Outlook is Stable. Fitch has also affirmed Colosseum's term loan B's (TLB) 'B+' senior secured instrument rating with a Recovery Rating of 'RR3'. The ratings balance Colosseum's strong local competitive positions in defensive European dental care markets, its scale and geographic diversification with high, albeit reducing, leverage and weak but improving free cash flow (FCF) generation. The Stable Outlook reflects Fitch's view that Colosseum is adequately positioned at its rating. Key Rating Drivers Improving Margins: Fitch expects Colosseum's EBITDA margin expansion to continue. It improved to above 12% in 2024 from 5% in 2020. Fitch projects further expansion towards 14% in 2025, followed by a gradual improvement to above 14.5% by 2028, driven by organic growth, operating efficiencies and the integration of small bolt-on acquisitions to its network. In its view, the countries that will contribute the most to margin expansion will be Germany and geographies with currently lower margins, such as France, the UK and the Netherlands. Fitch expects that the company will maintain high margins in the Nordics and above-group-average margins in Switzerland. FCF to Turn Positive: Fitch projects Fitch-defined FCF, calculated after earn-outs, which Fitch treats as capex, will become positive in 2026 and increase towards mid-single digits by 2028. Fitch assumes EBITDA growth to be the main driver, supported by revenue growth and margin expansion. Fitch expects FCF margin to remain negative at around -2% in 2025, affected by earn-outs and larger than usual working capital outflows. Fitch estimates capex intensity before accounting for earn-outs to remain modest at around 3.5% of revenue until 2028. High Leverage to Moderate: Fitch projects EBITDAR leverage to gradually moderate from an estimated 6.3x in 2025to below 6.0x in 2027, which is adequate for the rating. The expected mild deleveraging will be driven by the EBITDA expansion, and there is further potential for deleveraging by acquiring dental practices at low multiples. Its credit view of Colosseum rests on the assumption of maintaining profitable business growth while carefully managing its financial risks given the likely continuous use of debt to fund M&A. Fitch treats the payment-in-kind (PIK) and shareholder loan issued outside the restricted group at Colosseum AG level as equity. Consolidation Potential, M&A-Driven Growth: Its rating assumes Colosseum continues its 'buy-and-build' strategy to consolidate the fragmented European dental care market. The rating case assumes EUR450 million of additional acquisitions between 2025 and 2028. Fitch views a robust implementation of the buy-and-build strategy with strong discipline around asset selection and multiples paid as critical to the deleveraging prospects for the wider group, despite it being debt funded. This reflects its assumption of modest acquisition multiples and the use of performance earn-outs to partially defer some acquisition costs and reduce operating risks. Supportive Shareholder: Fitch views the involvement of Jacobs Holding AG (JAG), a long-term investor, as positive for Colosseum's strategic development. JAG has demonstrated its commitment through equity and shareholder loan injections since it created the company in 2017. Fitch does not expect dividend payments or share buybacks during the four-year forecast to 2028. However, Fitch projects modest opportunistic repayments of the PIK debt, subject to Colosseum's performance, in line with the EUR15 million PIK repayment completed in 2025. Fitch assumes PIK repayments are capped at 10% of the principal as per the documentation. Defensive and Diversified Operations: Colosseum's rating is underpinned by its satisfactory market position as a pan-European dental care business, with a strong customer focus. Its strategy is to leverage economies of scale and standardisation, creating leading regional dental chains across Western Europe through the acquisition of dental practices, consolidating the highly fragmented market. The group has grown robust and profitable operations in Switzerland, Germany and the Nordics, and is gradually improving the profitability of its meaningful operations in the Netherlands and relatively smaller operations in Italy, the UK and France. Regulation Influences Business Risk: Fitch views Colosseum's regulatory environments as stable, with a long-term focus on outcomes and value favouring the development of private health care markets. Dental care reimbursement is less regulated than other healthcare segments, with an above-average share of private payments introducing higher volatility and exposure to consumer spending. However, these payments are relatively stable over the cycle, as necessary treatments may be delayed but not cancelled. In this private pay market, there is potential to implement retail and customer relationship frameworks for patients by optimising price plans and creating profitable service propositions. Peer Analysis EMEA-based peers rated within the 'B' category tend to be constrained by weak credit metrics, with EBITDAR leverage averaging 6.0x-7.0x and tight EBITDAR fixed-charge cover metrics around 1.5x-2.0x. Their highly leveraged balance sheets often reflect aggressive financial policies focused on debt-funded acquisitions, as their strategies often involve consolidation of fragmented care markets and generating benefits from scale and standardised management structures, given the limited room for maximising organic returns. Fitch rates Colosseum at the same level as its direct peer dental care provider Romansur Investments SL (DonteB/Stable), as well as other healthcare providers including veterinary operator IVC Acquisition Midco Ltd (B/Stable), fertility clinic operator Inception Holdco S.a.r.l. (B/Stable), French hospital operator Almaviva Developpement (B/Stable), and Finnish social care and private healthcare provider Mehilainen Yhtyma Oy (B/Stable). Fitch rates it one notch below Germany-based hospital operator Schoen Klinik SE (B+/Stable) and one notch higher than Median B.V. (B-/Positive) and Cidron Atrium SE (B-/Positive) . Fitch also compares Colosseum with diagnostic lab-testing companies including Ephios Subco 3 S.a.r.l. (Synlab, B/Stable), Inovie Group (B/Negative) and Laboratoire Eimer Selas (B/Stable). Lab-testing companies tolerate high leverage relative to their ratings due to strong operating and cash flow margins combined with non-cyclical revenue patterns, high visibility amid sector regulation, large business scale and wide geographic footprints. Fitch’s Key Rating-Case Assumptions - Organic sales growth averaging 2.7% in 2026 to 2028 - Total revenue growth close to 5% in 2025, followed by 10% in 2026 and 10-12% over 2027-2028, supported by acquisitions - EBITDA margin expands to 13.8% in 2025 on operating improvements, further increasing towards 14.5% by 2028 - Operating leases at about 5% of sales, 4.5x implied lease multiple in 2025-2028 - Fitch-estimated net acquisitions of EUR50 million in 2025 and around EUR130 million a year until 2028, including EUR25 million-EUR30 million minority put options purchases over 2026-2028 - Acquisition assumptions: 6.0x multiple for M&A, 14.5% EBITDA margin, 2% organic growth of the acquired businesses. 75% of purchase price upfront payment and the balance paid thought earn-outs in four equal instalments from the year after the acquisition - Total capex including earn-outs at 4% in 2025 and between 4% and 5.0% in 2026 to 2028. Maintenance capex at 2.5% of sales until 2028 - Around EUR100 million a year until 2028 of additional debt to finance new acquisitions - Modest PIK debt repayments averaging EUR15 million a year in 2025-2028 - No dividends until 2028 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, Moderate), Market and Competitive Positioning (bb, Moderate), Diversification and Asset Quality (bb-, Moderate), Company Operational Characteristics (bb, Lower), Profitability (bb, Moderate), Financial Structure (b-, Higher), and Financial Flexibility (bb-, 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 'aa-' results in no adjustment. - The SCP is 'b'. Recovery Analysis Fitch expects that in a bankruptcy Colosseum would most likely be sold or restructured as a going concern (GC) rather than liquidated. Fitch estimates a post-restructuring GC EBITDA at about EUR140 million, which includes the contribution from the recent acquisitions. Fitch applies a distressed enterprise value/EBITDA multiple of 6.0x, in line with most healthcare providers that it rates in EMEA. After deducting 10% for administrative claims, the allocation of value in the liability waterfall results in a Recovery Rating of 'RR3' for the senior secured debt, comprising the EUR1,185 million TLB and EUR175 million revolving credit facility (RCF) ranking pari passu. In accordance with its criteria, Fitch assumes the RCF to be fully drawn prior to distress. Fitch treats shareholder loan and PIK notes as equity and do not include them in the recovery analysis. This indicates a 'B+' instrument rating, one notch above the IDR. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA margin erosion towards 10% due to operational underperformance or inability to successfully integrate new acquisitions - Adverse regulatory changes resulting in profitability erosion - EBITDAR leverage sustained above 7.0x due to operating underperformance or as a result of opportunistic and aggressively debt-funded M&A. - FCF margin neutral to negative on sustained basis - EBITDAR fixed-charge coverage below 1.5x Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustainable EBITDA margin improvement towards or above 16% on a sustainable basis driven by robust execution of the strategic plan and well-managed integration of new acquisitions - Continued supportive regulatory environment on the main markets of presence - EBITDAR leverage sustainably below 5.5x. - FCF margin trending towards mid-single digit territory - EBITDAR fixed-charge coverage sustainably above 2.5x Liquidity and Debt Structure Fitch views Colosseum's liquidity as satisfactory. Fitch estimates the company had around EUR75 million of unrestricted cash on balance at end-2025. Fitch restricts EUR10 million from cash, which it deems required for daily operations and therefore not available for debt service. At end-2025, the EUR175 million RCF due 2031 was fully undrawn, and Fitch projects that the company will partially use it over the rating horizon to finance its M&A activity. Fitch also expects Colosseum to generate low-to-mid single-digit FCF from 2026, which should support its liquidity. The EUR1.185 billion TLB matures in 2032. The maturity of the existing EUR121 million PIK notes and the EUR216 million shareholder loan was extended to 2033. Issuer Profile Colosseum Dental is Europe's largest pan-European dental care provider, based in Switzerland. 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 Colosseum. 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 ----------- ------ -------- ----- Colosseum Dental Finance BV LT IDR B Affirmed B senior secured LT B+ Affirmed RR3 B+ =========== T U R K E Y =========== CIMKO CIMENTO: Fitch Affirms 'B+' Long-Term IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed Cimko Cimento ve Beton Sanayi Ticaret A.S.'s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'B+'. The Outlook is Stable. Fitch has also affirmed the senior unsecured rating at 'B+' with a Recovery Rating of 'RR4'. The affirmation continues to reflect Cimko's smaller scale and narrower geographic footprint than many Fitch-rated peers. The capital structure remains concentrated in a single fixed-income instrument, which limits funding diversification and increases FX risk. Rating strengths are Cimko's resilient profitability, positive free cash flow generation (FCF) and moderate leverage. They are supported by healthy margins, solid cost pass-through and the group's strong market position in cement and ready-mix concrete in Turkiye. The Stable Outlook reflects its expectations of resilient operating performance, with key measures in line with the rating sensitivities. Key Rating Drivers Profitability Resilient: Fitch-calculated EBITDA margin rose to 31% in 2025 from 27% in 2024, better than its previous estimate of 28%. This was supported by stronger cement profitability, pass-through of higher input costs, lower raw material and fuel costs, and product mix optimisation. Fitch expects margin to moderate to about 27% in 2026 as pricing remains flat in US dollar terms while import coal, fuel, electricity and labour costs rise. Margin should remain solid and improve modestly over 2027-2029 to an average of 28%, supported by input cost hedging, renewable energy use and operating efficiency. Scale and Diversification Constraints: Cimko's business profile remains constrained by its modest scale and limited geographic diversification. Domestic sales accounted for about 90% of revenue in 2025, and Fitch expects this to continue in the medium term due to strong local demand. Cimko is mainly exposed to the cyclical new-build construction market and has a heavy presence in regions of Turkiye affected by the February 2023 earthquake. Its 7.1% domestic market share supports its position in Turkiye, while exports and Adana Port provide some hard-currency revenue and modest diversification. Positive FCF: FCF margin turned strongly positive in 2025 to 6.5%, driven by lower capex as the group concluded the bulk of its expansion plans in 2024 and made no dividend distributions. Fitch expects FCF to remain positive to 2029, supported by lower capex intensity, averaging 5%, and resilient operating performance. Fitch does not expect dividend distributions in 2026, in line with management guidance, but assumes they will commence in 2027 as cash-build up strengthens and FCF margins remain positive. Leverage to Decline: Fitch-calculated gross leverage declined to 2.1x at end-2025 from 2.7x at end-2024 due to strong EBITDA generation and some debt repayment. Cimko made two tap issuance totalling USD89.9 million in 1Q26 for general corporate purposes and to build a cash buffer, which will raise estimated gross leverage to 2.7x by end-2026 compared with its earlier estimate of 2.1x. Nevertheless, Fitch expects leverage to continue declining and to remain consistent with the rating, supported by positive FCF and no planned debt-funded expansion. Restricted Group Structure: Cimko's debt structure is insulated from its parent, Sanko Holding A.S., supporting a Standalone Credit Profile (SCP) approach in its analysis. Fitch has limited visibility on Sanko. Cimko is directly and indirectly fully owned by Sanko, but its debt financing is separate and current bond documentation includes no cross-guarantees or cross-default provisions. Restricted payment definitions and other ring-fencing provisions limit related-party transactions and constrain leverage increases through a fixed charge coverage test that also captures dividend distributions to the parent. Fitch assesses legal separation as 'insulated' and access and control as 'porous'. Peer Analysis Cimko's business profile is constrained by its small scale, similar to 'B' category peers such as Limak Cimento Sanayi Ve Ticaret Anonim Sirketi (B+/Stable). Cimko's revenue base is much smaller than those of larger rated peers, such as Holcim Ltd (BBB+/Stable) and CRH plc (BBB+/Stable), which have stronger market positions and broader production networks. Cimko's operations are concentrated in the domestic market, unlike peers, such as Titan Cement International S.A. (BB+/Positive), which have diversified revenue streams in multiple countries including the US, Greece, and Turkey. Cimko has robust profit margins despite its limited size, supported by a strong cost position. Cimko's financial structure is broadly similar to Limak's, but less robust than those of CRH and Holcim. Cimko has less financial flexibility than other Fitch-rated peers in the building materials sector as it does not have access to committed credit facilities, and has a large FX exposure. Fitch’s Key Rating-Case Assumptions Revenue to increase by an average of 12% annually in Turkish lira across 2026-2029, reflecting higher sales volumes Improving EBITDA margin to 29% by end-2029, reflecting ramp-up of solar plants and port operations Capex broadly in line with the management forecasts at about 5% of revenue Fitch-assumed dividends after 2026 No debt-funded M&As Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the SCP: - Business and financial profile factors (assessment, relative importance): Management (bb, Moderate), Sector Characteristics (bb-, Moderate), Market and Competitive Positioning (b+, Moderate), Diversification and Asset Quality (b, Higher), Company Operational Characteristics (bb, Moderate), Profitability (a, Moderate), Financial Structure (bb+, 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 'bb-' results in no adjustment. - The SCP is 'b+'. To derive the IDR: - Application of Fitch's Parent Subsidiary Linkage Rating Criteria results in a(n) standalone approach. Recovery Analysis - The recovery analysis assumes that Cimko would be reorganised as a going concern (GC) in bankruptcy rather than liquidated. - Fitch used an administrative claim of 10%, in line with the industry median and peer group. - Fitch translated the recovery analysis into US dollars from Turkish lira (using its year-end exchange rate for 2025) as most of its borrowings are in US dollars. - Fitch assumed a GC EBITDA of USD140 million. This reflects a post-reorganisation EBITDA in Turkiye's challenging market environment and high inflation, which lead to lower demand and weaker sold volumes. - Fitch applied an enterprise value multiple of 4.5x to the GC EBITDA to calculate a post-reorganisation enterprise value, reflecting Cimko's strong market position in Turkiye and cost position. However, this multiple is constrained by the lack of geographical diversification, as production and revenue are concentrated in Turkiye. - Fitch estimated the total amount of senior debt claims at USD608 million, as of end-2025, and after the Eurobond tap issuance of USD90 million in 1Q26. The waterfall analysis used the updated capital structure, consisting of secured project loans at Cimko's solar plants, which are USD46 million, a senior unsecured USD390 million Eurobond and other bank credit facilities of about USD172 million. - These assumptions resulted in a recovery rate for the senior unsecured instrument within the 'RR3' range, but its assessment of the governance environment in Turkiye (country-specific cap) constrains this to 'RR4', corresponding to a Long-Term IDR of 'B+'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A deterioration in Turkiye's economic environment and general market conditions leading to EBITDA gross leverage above 3.5x on a sustained basis - Neutral FCF generation - Lack of ring-fencing (eg cash extraction leading to higher leverage) and tighter links with parent Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improved geographical market diversification - EBITDA gross leverage below 2.5x on a sustained basis, supported by a consistent financial policy - Sustainable FCF margins of at least 5% Liquidity and Debt Structure Fitch views Cimko's liquidity as adequate. Cimko reported a Fitch-adjusted cash balance of TRY1.4 billion at end-2025. Fitch restricts about TRY980 million for intra-year working capital volatility, equal to about 3.5% of revenue. Long-term debt represented about 77% of total debt at end-2025. About 94% of debt was denominated in US dollars, with the rest in euros. Issuer Profile Cimko is one of the largest cement producers in Turkiye. Its product portfolio includes clinker, various cement types such as grey, oil-well, and low-alkali cement, and ready-mix concrete. 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 Cimko. 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 ----------- ------ -------- ----- Cimko Cimento Ve Beton Sanayi Ticaret Anonim Sirketi LT IDR B+ Affirmed B+ LC LT IDR B+ Affirmed B+ senior unsecured LT B+ Affirmed RR4 B+ =========================== U N I T E D K I N G D O M =========================== AVATION PLC: Fitch Affirms 'B' Long-Term IDR, Outlook Stable ------------------------------------------------------------ Fitch Ratings has affirmed Avation PLC's (Avation) Long-Term Issuer Default Rating (IDR) at 'B' with a Stable Outlook. Fitch has also affirmed the 'B'/'RR4' long-term debt rating on the senior unsecured bond issued by Avation's 100% subsidiary, Avation Group (S) Pte. Ltd. (Avation Group), under its USD1 billion global medium-term note programme. These rating actions are being taken in conjunction with Fitch's global aircraft leasing sector review. For more information on the sector review, please see "Fitch Ratings Completes Aircraft Lessor Peer Review; Revises Sector Outlook to Deteriorating,". Avation was incorporated in England and Wales in 2006 and is listed on the London Stock Exchange (LSE: AVAP). The company is domiciled and headquartered in Singapore. Avation Group is the group's applicant member of the Singapore Aircraft Leasing Scheme. Key Rating Drivers Niche Aircraft Lessor: Avation's Long-Term IDR reflects its franchise as a modest-sized aircraft lessor with a niche focus on ATR turboprops and current-generation narrowbody and widebody aircraft serving the Asia-Pacific and European airline markets. The company has operated through multiple market cycles and Fitch views its management and operating capabilities as broadly commensurate with its scale. The absence of material orderbook commitments reduces placement and funding risks compared with peers. Sector Rating Constraints: Rating constraints applicable to the aircraft lessor industry include its monoline nature; potential exposure to residual value risk, reliance on wholesale funding sources and vulnerability to exogenous shocks that could dampen travel demand, such as high oil prices, inflation and unemployment. The ongoing Iran conflict and resulting risk of protracted jet fuel shortages illustrates this vulnerability. Airlines globally have cut capacity on less-profitable routes, but lessors may still face increased requests for lease deferrals that, if granted, could weaken liquidity and internal capital generation over time. High Concentration, Limited Scale: Avation has significant lessee concentration in emerging markets. Its top-five lessees account for about 70% of net book value (NBV), but it has limited exposure to the Middle Eastern airline with only one A320-200 leased to Etihad. The company continues to diversify its portfolio, but concentration could remain high given its limited scale. Similar to peers, Avation collects security deposits and maintenance reserves to mitigate exposure to lessees with weak credit profiles. Less Liquid Fleet: Avation had a higher proportion of less-liquid tier-2 (53%) and tier-3 (11%) aircraft as at end-2025, as per its Global Aircraft Tiers, compared with higher-rated peers. The fleet comprised 14 narrowbody (61% of NBV), 18 regional (31%) and one widebody (8%) aircraft. It leased 33 aircraft to 16 airlines across 15 countries with a NBV of USD742 million and had an orderbook of nine ATR 72-600s and purchase rights for an additional 24 of the same type through June 2034, 5 of which was converted to order in February 2026. Modest Profitability: Avation's lease yield ranks mid-range within its peer group, but Fitch considers it modest on a risk-adjusted basis due to the high portfolio concentration and greater exposure to lessees with weak credit profiles. The net spread improved to 6.6% in the first-half of the financial year ending June 2026 (1HFY26), against a four-year average of 4.2%, due to a boost in maintenance reserve income. However, a higher coupon rate of 8.5% on senior unsecured debt and normalisation of maintenance reverse income may weigh on the net spread, despite the company's aim to reduce funding costs by optimising its capital structure. Above-Peer Leverage: Fitch-calculated leverage (gross debt-to-tangible equity) continues to decline amid modest growth and the repayment of secured debt, but remains highest among Fitch-rated peers. Leverage, excluding aircraft purchase rights from tangible equity, was 4.1x at end-2025, down from 4.5x at end-2024. Leverage may rise modestly with growth from the ATR orderbook and opportunistic narrowbody fleet expansion, but Fitch expects it to stay below 5.0x. Weak Liquidity: Avation has weaker liquidity coverage than that of most peers and lacks undrawn committed credit facilities. Liquidity coverage for contracted aircraft purchases and upcoming debt maturities over the next 12 months fell below 1.0x at end-1HFY26, reflecting a drop in operating cash flow and large orderbook deliveries. Liquidity sources include unrestricted cash of USD46 million, which may be deployed for fleet expansion. Concentrated Maturity Structure: The debt maturity profile remains concentrated, despite the company refinancing its senior unsecured bond in 2025, which eased near-term refinancing pressure. The May 2031 unsecured bond maturity remains a structural weakness for Avation's funding and overall credit profile. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Leverage, measured by gross debt-to-tangible equity, approaching 5.5x, rapid expansion without consistent underwriting standards and commensurate growth in capital and staffing, and deterioration in residual value realisations. Negative rating action could also be driven by credit deterioration of underlying lessees, particularly those that represent a meaningful portion of Avation's portfolio; net spread falling below 3.0% (FY25: 6.5%) on elevated funding costs or weakening lease yields on a risk-adjusted basis; a large shift in funding mix, with unsecured debt falling to below 30% (FY25: 45%); and/or refinancing pressure ahead of significant upcoming maturities. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A decline in the debt-to-tangible equity ratio towards 3.0x and reduced concentration in the maturity schedule, with the liquidity coverage ratio improving to above 1.0x and net spread remaining above 5.0% on a sustained basis. Enhanced scale and geographic or lessee diversification, provided growth is at a moderate pace and do not adversely affect underwriting or pricing terms, would also be positive for the ratings. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS Fitch equalises the unsecured bond rating with Avation's IDR, as the bonds constitute Avation's direct, unconditional, unsubordinated and unsecured obligations under a guarantee and rank equally with all its other unsecured obligations. The bond rating also reflects its expectation of average recoveries for senior unsecured debtholders. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The senior unsecured debt rating is sensitive to changes in Avation's Long-Term IDR and the instrument's recovery prospects. Action on Avation's IDR would cause the debt rating to move in tandem. Fitch could also notch the debt rating below the IDR should secured debt increase as a percentage of total debt, such that the unencumbered pool contracts and weakens expected recoveries on the senior unsecured debt. ADJUSTMENTS The asset-quality score has been assigned below the implied score due to the following adjustment reason: concentration and asset performance. The capitalisation and leverage score has been assigned below the implied score due to the following adjustment reason: risk profile and business model. 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 ----------- ------ -------- ----- Avation Group (S) Pte. Ltd. senior unsecured LT B Affirmed RR4 B Avation PLC LT IDR B Affirmed B GROSVENOR SQUARE: FRP Advisory, BTG Named as Joint Administrators ----------------------------------------------------------------- Grosvenor Square (DS) Limited was placed into administration in the High Court of Justice, Court Number CR-2026-001880. 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 12, 2026. Grosvenor Square (DS) 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 Trading Limited, Minerva, 29 East Parade, Leeds, LS1 5PS). 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 40 Bank Street Canary Wharf London E14 5NR Further details contact: The Joint Administrators Tel: 0113 831 3555 Alternative contact: Usman Khan Email: cp.leeds@frpadvisory.com KENSINGTON GARDENS: FRP Advisory, BTG Named as Joint Administrators ------------------------------------------------------------------- Kensington Gardens Square Property Limited was placed into administration in the High Court of Justice, Court Number CR-2026-001885. 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 12, 2026. Kensington Gardens Square 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 (to be changed to FRP Advisory Trading Limited, Minerva, 29 East Parade, Leeds, LS1 5PS). 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: 0113 831 3555 Alternative contact: Alanna Gee Email: cp.leeds@frpadvisory.com MACQUARIE AIRFINANCE: Fitch Keeps 'BB+' IDR on Watch Positive ------------------------------------------------------------- Fitch Ratings is maintaining Macquarie AirFinance Holdings Limited (MAHL) and its rated subsidiaries, Macquarie Aircraft Leasing Inc. (MAL) and Macquarie Aerospace Finance UK Limited (MAFU) - rated at 'BB+' Long-Term Issuer Default Ratings (IDRs) - on Rating Watch Positive (RWP). Fitch has also maintained the RWP on the 'BB+' long term rating of MAHL's senior unsecured debt. These rating actions are being taken in conjunction with Fitch's global aircraft leasing sector review. For more information on the sector review, please see "Fitch Completes Aircraft Lessor Peer Review; Revises Sector Outlook to Deteriorating,". Key Rating Drivers Acquisition by DAE in 2H26: Fitch had placed MAHL on RWP following the announcement in late February 2026 by Dubai Aerospace Enterprise (DAE) Ltd (DAE, BBB/Stable) that it had signed a definitive agreement to acquire 100% of MAHL for an enterprise value of about USD7 billion. MAHL's RWP reflects Fitch's view that MAHL will become an integral part of DAE's overall aircraft lessor franchise once the acquisition is completed. DAE expects the transaction, which is subject to customary anti-trust and other closing conditions, to be completed in 3Q26. Fitch expects to assign a 'group rating' to MAHL at the level of DAE's Long-Term IDR upon completion. Full Acquisition; Debt Guarantees: DAE intends to acquire 100% of MAHL's share capital in an all-cash transaction at an enterprise value of about USD7 billion. The acquisition will be funded with a combination of equity injection from the Investment Corporation of Dubai - DAE's shareholder - new senior unsecured debt and the rollover of MAHL's senior unsecured notes. The rolled-over debt will, on completion of the acquisition, be irrevocably and unconditionally guaranteed by DAE. Group Rating Assignment on Closing: Fitch expects to assign MAHL a 'group rating' at the level of DAE's Long-Term IDR once the transaction is finalised. This reflects its view that MAHL will become core to DAE as it will add scale and business diversification to DAE's global aircraft lessor franchise. Fitch has decided to assign 'group ratings' on closing, rather than a Shareholder Support Rating, because of MAHL's large size relative to DAE's and its expectation that MAHL will be fully integrated into DAE in management, balance-sheet fungibility and system. Reputational Risks: Fitch believes that a default of MAHL after its acquisition would create high reputational risk for DAE, and that the UAE authorities would favour support for MAHL from DAE. Limited prudential requirements and MAHL's legal jurisdiction - the UK (AA-/Stable) - mean MAHL's ratings after the acquisition would not be constrained by capital fungibility or country risk considerations. Manageable Execution and Integration Risks: Fitch sees considerable overlap between DAE's and MAHL's customer bases, as both are global aircraft lessors. However, Fitch considers lessee attrition risk to be manageable and offset by a more diversified customer base of the combined entity. Similarly, execution risks are mitigated by DAE's good record in integrating previous acquisitions, notably Nordic Aviation in 2025, and DAE's scalable operating platform. Better Earnings Consistency Supports SCP: MAHL's standalone credit profile (SCP) benefits from improved scale and enhanced earnings consistency. Solid execution with respect to growth targets and long-term strategic financial objectives, including pretax return on average assets sustained above 1.5%, while maintaining leverage below 3.0x, unsecured debt/total debt above 50%, and a liquidity coverage ratio above 1.0x could support a one-notch upward revision of the SCP over the next 12-18 months. An upward revision of the SCP is also contingent on MAHL maintaining new technology aircraft above 50% of the portfolio, while further lengthening the weighted average lease profile and portfolio aircraft age to align more closely with investment-grade peers. Moderate Franchise Focussed on Narrowbodies: MAHL's ratings reflect its position as a global, full-service aircraft operating lease platform, its portfolio focuses on fairly liquid, narrowbody aircraft, its appropriate current and targeted leverage, the absence of near-term debt maturities, and solid liquidity metrics. The ratings also consider its management's depth, experience, and record in managing aircraft assets. Weaker but Improving Earnings Profile: Rating constraints include a weaker but improving earnings profile, moderate exposure to older aircraft, a focus on the highly competitive sale-leaseback market, and shorter average remaining lease terms relative to higher-rated peers. MAHL also faces potential governance risks relative to larger, public peers, including the lack of independent board members. Sector Rating Constraints: Rating constraints for the aircraft lessor industry broadly include the monoline nature of the business, potential exposure to residual value risks and vulnerability to exogenous shocks, including sensitivity to higher oil prices, inflation and unemployment, which could negatively impact travel demand. The ongoing Iran conflict and arising risk of protracted jet fuel shortages have led to airlines cutting capacity on less profitable routes globally, and lessors may still face increased requests for lease deferrals, which, if granted, could negatively affect liquidity and internal capital generation over time. Improved Asset Quality: Following the acquisition of a sizeable portfolio in August 2024 (ALAFCO Aviation Lease and Finance Company K.S.C.P.), MAHL's portfolio quality improved meaningfully with the weighted average age improving to nine years at end-2025 (from 11.4 years at end-2023) and the weighted average lease term lengthening to 5.9 years at end-2025 from 4.2 years at end-2023. At end-2025, the highly liquid tier 1 aircraft accounted for 72.4% of the portfolio, up from 67.5% at end-2023. No meaningful impairment charges were booked in 2025. Higher Profitability: In the nine months to December 2025, MAHL's pre-tax income/average assets ratio improved materially to 1.5% from 0.6% in FY25 (year end March). It benefited from higher revenue due to the acquisition of 75 aircrafts from ALAFCO, partly offset by high funding costs associated with a larger portfolio and higher rates on debt facilities. Net spread (lease yield less funding costs) was 4.4% in the same period, broadly unchanged from a year ago, but down from the average of 8.8% for FY21-FY24. Fitch expects economies of scale to reduce the selling, general and administrative margin, while net spreads are likely to trend at 5.5%-7% over the next 12-18 months. Appropriate Leverage: Gross debt/tangible equity was 2.6x at end-r 2025 (compared with 2.8x at end- 2024) and Fitch expects leverage to remain below management's long-term target of 3.0x, which is appropriate for MAHL's portfolio liquidity profile. At end-2025, unsecured debt constituted 69% of total debt, broadly in line with end- 2024 (67.9%) but an improvement from 54% at end- 2023 and 28% at end- 2022. Adequate Liquidity: At end-2025, liquidity included USD170.3 million in cash and USD1,895 million of undrawn committed capacity under its revolving credit facility. Its USD1,050 million unsecured term facility entered into in November 2025 was fully drawn. Fitch projects operating cash flow of USD276 million over the next 12 months, although this is subject to portfolio expansion, aircraft sales and collections. At end-2025, these liquidity sources provided 1.1x coverage of USD2.2 billion of purchase obligations over the next 12 months. Purchase commitments after 2026 will be materially lower, which should increase MAHL's liquidity ratio closer to 1.5x in the medium term. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Fitch would remove the RWP from MAHL's Long-Term IDR and likely affirm the rating at 'BB+' and assign a Positive Outlook if the acquisition fails to complete. Should the acquisition fail to complete then a failure to execute on planned growth targets while maintaining leverage below 3.0x, unsecured debt/total debt above 50% and the liquidity ratio above 1.0x could lead to an Outlook revision to Stable. Beyond that, a downgrade of the ratings could be driven by: - Macroeconomic and/or geopolitical challenges that pressure airlines and lead to additional lease restructurings, rejections, lessee defaults and losses - An inability to improve scale and a weakening of the company's long-term cash flow generation, profitability and liquidity position - Higher impairments or a sustained increase in leverage above 4.0x - A deviation in the funding strategy leading to secured debt/total assets exceeding MAHL's internal target of 30% or a notably lower proportion of unsecured debt/total debt - A weakening in portfolio quality, in particular new technology aircraft representing notably less than the 50% target communicated by management Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Fitch expects to upgrade MAHL's Long-Term IDR to the level of DAE's and remove the RWP on completion of the acquisition. Should the acquisition fail to complete, then a one-notch upgrade over the next 12-24 months could be contingent on: - Solid execution with respect to growth targets and long-term strategic financial objectives, including pretax return on average assets sustained above 1.5% hile maintaining leverage below 2.7x, unsecured debt above 50% of total debt and liquidity coverage above 1.2x - Reduced exposure to weaker airlines, with the impairment ratio maintained below 1% - Further lengthening of the weighted average lease profile and a reduction in the weighted average age of the fleet to be more in line with those of investment-grade peers - Increases in the proportion of tier 1 aircraft while maintaining the new technology, narrowbody focus DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS The equalisation of the unsecured debt ratings with MAHL's Long-Term IDR reflects an unsecured funding mix, and the availability of sufficient unencumbered assets, which provide support to unsecured creditors and suggest average recovery prospects during financial distress. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The senior unsecured debt ratings are primarily sensitive to changes in MAHL's Long-Term IDR and secondarily to the relative recovery prospects of the instruments. A decline in unencumbered asset coverage, combined with a material increase in secured debt, could result in the notching down of the unsecured debt from the Long-Term IDR. SUBSIDIARY AND AFFILIATE RATINGS: RATING SENSITIVITIES The ratings of MAL and MAFU are primarily sensitive to changes in MAHL's Long-Term IDR. ADJUSTMENTS The Standalone Credit Profile (SCP) of 'bb+' is in line with the implied SCP. The Business Profile was identified as a relevant negative factor in the assessment. The business profile score of 'bb+' is assigned below the implied score of 'bbb' due to the following adjustment reason(s): Market position (negative). The asset quality score of 'bb+' is assigned below the implied score of 'bbb' due to the following adjustment reason(s): Risk profile and business model (negative). The earnings & profitability score of 'bb' is assigned below the implied score of 'bbb' due to the following adjustment reason(s): Earnings stability (negative). The capitalization & leverage score of 'bb+' is assigned below the implied score of 'bbb' due to the following adjustment reason(s): Risk profile and business model (negative). The funding, liquidity & coverage score of 'bb+' is assigned below the implied score of 'bbb' due to the following adjustment reason(s): Funding flexibility (negative). Public Ratings with Credit Linkage to other ratings The RWP is linked to DAE's Long-Term IDR. 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 Prior ----------- ------ ----- Macquarie AirFinance Holdings Limited LT IDR BB+ Rating Watch Maintained BB+ senior unsecured LT BB+ Rating Watch Maintained BB+ Macquarie Aircraft Leasing Inc. LT IDR BB+ Rating Watch Maintained BB+ Macquarie Aerospace Finance UK Limited LT IDR BB+ Rating Watch Maintained BB+ ROSAMOND HOUSE: FRP Advisory, BTG Appointed as Joint Administrators ------------------------------------------------------------------- Rosamond House (EC) Limited was placed into administration in the High Court of Justice, Business and Property Courts of England & Wales Court Number CR-2026-002027. 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 13, 2026. Rosamond House (EC) 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, 1st Floor, 34 Falcon Court, Preston Farm Business Park, Stockton on Tees, TS18 3TX). 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: 01642 917555 Alternative contact: Anna Harrison Email: cp.teesside@frpadvisory.com ROSARY GARDENS: FRP Advisory, BTG Appointed as Joint Administrators ------------------------------------------------------------------- Rosary Gardens Property Limited was placed into administration in the High Court of Justice, Business and Property Courts of England and Wales Court Number CR-2026-002005. 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 13, 2026. Rosary Gardens 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 (to be changed to FRP Advisory, 1st Floor, 34 Falcon Court, Preston Farm Business Park, Stockton on Tees, TS18 3TX). 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: 01642 917555 Alternative contact: Anna Harrison Email: cp.teesside@frpadvisory.com TRINITY SQUARE 2021-1: Fitch Hikes Rating on Cl. X Notes to 'BB+sf' ------------------------------------------------------------------- Fitch Ratings has upgraded Trinity Square 2021-1 (2024 Refi) PLC's class X notes, and affirmed the rest as detailed below. The Outlooks are Stable. Entity/Debt Rating Prior ----------- ------ ----- Trinity Square 2021-1 (2024 Refi) PLC A XS2783078087 LT AAAsf Affirmed AAAsf B XS2783078160 LT AA-sf Affirmed AA-sf C XS2783078244 LT A-sf Affirmed A-sf D XS2783078327 LT BBBsf Affirmed BBBsf E XS2783078590 LT BB+sf Affirmed BB+sf F XS2783078673 LT B+sf Affirmed B+sf G XS2783078756 LT B-sf Affirmed B-sf H XS2783078830 LT CCCsf Affirmed CCCsf X XS2783078913 LT BB+sf Upgrade Bsf Transaction Summary Trinity Square 2021-1 (2024 Refi) PLC is a securitisation of legacy owner-occupied (OO) and buy-to-let (BTL) mortgages originated by GE Money Home Lending Limited and GE Money Mortgages Limited. The transaction is a refinancing of the Trinity Square 2021-1 PLC issue. KEY RATING DRIVERS Increased Credit Enhancement: The affirmation is supported by increased credit enhancement (CE), provided by both note subordination and the amortising general reserve fund. Fitch considers CE as adequate to withstand rating stresses at the assigned rating level, despite rising defaults as a percentage of the total pool. Stable Asset Performance: Asset performance remains stable, with slight improvements. As of December 2025, one-month-plus arrears were 13.6%, compared with 13.8% in June 2025, while three-month-plus arrears were 11.1% compared with 11.5%. Repossessions rose marginally but remain broadly stable overall and continue to significantly outperform the non-conforming index. Transaction performance has supported the continued generation of excess spread and the paydown of the class X notes, supporting the upgrade. Transaction Adjustment Applied: Fitch has applied its non-conforming assumptions, as well as an OO adjustment of 0.5x and a BTL adjustment of 1.0x, to foreclosure frequencies. This is because the transaction's historical performance (measured by loans more than three months in arrears) has significantly outperformed Fitch's non-conforming index. BTL Recovery Rate Cap: The transaction's reported losses exceed those expected based on the indexed property values in the pool. Fitch has therefore applied borrower-level recovery rate (RR) caps to the BTL loans in the transaction in line with those applied to non-conforming loans. The RR cap is 85% at 'Bsf' and 65% at 'AAAsf'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The transaction's performance may be affected by adverse changes in market conditions and the economic environment. Weakening economic performance is strongly correlated to increasing delinquencies and defaults that could reduce CE available to the notes. Unexpected declines in recoveries could also result in lower net proceeds, which may make certain notes susceptible to negative rating action, depending on the extent of the decline in recoveries. Fitch found that a 15% increase in the WAFF and 15% decrease in the WARR would imply the following: Class A: 'AA+sf' Class B: 'BBB+sf' Class C: 'BB+sf' Class D: 'BB-sf' Class E: 'B-sf' Class F: 'CCCsf' Class G: Below 'CCCsf' Class H: Below 'CCCsf' Class X: 'BB+f' Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Stable-to-improved asset performance driven by stable delinquencies and defaults would lead to increasing CE and potential upgrades. Fitch found that a 15% decrease in the WAFF and 15% increase in the WARR would imply the following: Class A: 'AAAsf' Class B: 'AAAsf' Class C: 'A+sf' Class D: 'A+sf' Class E: 'A-sf' Class F: 'BBBsf' Class G: 'BB+sf' Class H: Below 'CCCsf' Class X: 'BB+sf' 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. Prior to the transaction closing, Fitch reviewed the results of a third-party assessment conducted on the asset portfolio information and concluded that there were no findings that affected the rating analysis. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates is adequately reliable ESG Considerations Trinity Square 2021-1 (2024 Refi) PLC has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security, due to the pool having an interest-only maturity concentration of legacy non-conforming OO loans of greater than 20%, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Trinity Square 2021-1 (2024 Refi) PLC has an ESG Relevance Score of '4' for Human Rights, Community Relations, Access & Affordability, due to a significant proportion of the pool containing OO loans advanced with limited affordability checks, which has a negative impact on the credit profile, and is relevant to the 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. ********* 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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