260602.mbx

260602.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, June 2, 2026, Vol. 27, No. 109 Headlines F R A N C E CASINO GUICHARD-PERRACHON: Fitch Keeps 'CCC-' IDR on Watch Negative G E R M A N Y BLITZ 26-281 SE: Fitch Assigns B+(EXP) LongTerm IDR, Outlook Stable I R E L A N D ARES EUROPEAN XI: Fitch Affirms 'B+sf' Rating on Class F Notes BAIN CAPITAL 2018-2: Fitch Affirms B-sf Rating on Class F Debt CAPITAL FOUR XII: Fitch Assigns 'B-(EXP)sf' Rating on Class F Notes CVC CORDATUS XXIII: Fitch Assigns 'B-sf' Rating on Class F-R Notes INVESCO EURO IX: Fitch Affirms B-sf Rating on Class F-R Debt INVESCO EURO V: Fitch Affirms B-sf Rating on Class F Debt JUBILEE CLO 2018-XXI: Fitch Affirms B+sf Rating on Class F-R Notes MAN GLG V: Fitch Lowers Rating on Class F Notes to 'CCCsf' PROVIDUS CLO VIII: S&P Affirms B-(sf) Rating on Class F-R Notes I T A L Y DEDALUS SPA: Fitch Alters Outlook on 'B-' LongTerm IDR to Positive L U X E M B O U R G ECARAT DE SA: S&P Assigns Prelim. B- (sf) Rating on F-Dfrd Notes PLT VII FINANCE: Fitch Alters Outlook on B LongTerm IDR to Positive N E T H E R L A N D S AMG CRITICAL: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable DOMI 2024-1: S&P Affirms 'BB+(sf)' Ratings on Class E Notes E-MAC NL 2004-II: Fitch Affirms 'CCCsf' Rating on Class E Notes P O L A N D CYFROWY POLSAT: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable R U S S I A BAKAI BANK: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable ELDIK BANK: Fitch Affirms 'B' LongTerm IDRs, Outlook Stable U N I T E D K I N G D O M HAWKSMOOR MORTGAGE 2026: Fitch Assigns 'Bsf' Rating on Cl. F Notes SHERWOOD PARENTCO: Fitch Affirms 'B' LongTerm IDR, Outlook Stable STRATTON MORTGAGE 2024-1: Fitch Affirms CCsf Rating on 2 Tranches [] Fitch Affirms & Then Withdraws Ratings on Dekania II/III Notes - - - - - =========== F R A N C E =========== CASINO GUICHARD-PERRACHON: Fitch Keeps 'CCC-' IDR on Watch Negative ------------------------------------------------------------------- Fitch Ratings has maintained Casino Guichard-Perrachon S.A.'s 'CCC-' Long-Term Issuer Default Rating (IDR) on Rating Watch Negative (RWN). Fitch has affirmed Casino's term loan B at 'C' with a Recovery Rating of 'RR6', and maintained the 'B-' rating of the senior secured notes issued by Quatrim S.A.S. on RWN. The ratings reflect the ongoing discussions among Casino's shareholders, management and creditors with the purpose of restructuring its capital structure and its expectation that these will ultimately result in actions that would constitute a distressed debt exchange (DDE) as per its criteria. Fitch expects to resolve the RWN when there is more clarity on the next stages to be taken around the debt restructuring. Should a DDE occur, Fitch would downgrade Casino's IDR to 'Restricted Default' and re-rate the new capital structure. Key Rating Drivers High Probability of DDE: Casino is in advanced negotiations with its shareholders and creditors on actions to be taken to modify the capital structure to a more sustainable level of debt. It received Paris Commercial Court approval to enter into a Conciliation procedure earlier this year. Fitch assumes that the business will continue to operate normally, but refinancing options outside of current discussions for upcoming 2027 maturities seem unlikely and Fitch expects that some form of DDE will occur later this year. Offers of Creditors and Shareholders: Fitch understands that based on the proposals of TLB SteerCo and France Retail Holdings (FRH) to modify Casino's capital structure, both parties and management envisage a severe reduction in terms for current debtholders, including debt equitisation, as well as the potential reinstatement of facilities with paid in kind interest as a condition for the contribution of new liquid resources and extend current debt maturities. As these actions would be taken to avoid bankruptcy procedures for Casino, this constitutes a DDE under Fitch's criteria. Quatrim Debt Uncertainty: Quatrim's notes are not part of ongoing discussions between TLB SteerCo and FRH. Fitch note that a material amount these notes has been cancelled since their reinstatement back in 2024, with the balance reduced to EUR120 million at end-1Q26. Casino has sufficient available liquidity to pay back Quatrim noteholders in full, but Fitch does not exclude some form of restructuring for Quatrim. FCF Under Pressure: Its current forecast assumes consistently negative free cash flow (FCF), exceeding -6% in 2026, and improving to negative 2.5-3.0% in 2027-2028, under the current capital structure and the assumption of the refinancing of Casino's debt at market interest rates. Total forecast negative FCF under the Fitch case is around EUR1 billion in 2026-2028, and would exhaust Casino's current liquidity. Management Turnaround Plan Requires Resources: Management's Renouveau 2030 plan includes many operating efficiency initiatives, but still assumes material capex (EUR1.7 billion over 2025-2030) for refurbishment of the full Monoprix network, as well as expanding through the rollout of new concepts across Monoprix, Franprix and Naturalia stores. Under its forecast, this will have to be funded with external resources, so capital structure certainty is necessary to execute the plan. Leverage Affected by RCF Drawdown: Based on published unaudited results, profitability improved in 2025 with the EBITDA margin at 2.4% vs 1.3% in 2024, but Fitch calculates that 2025 EBITDAR leverage still increased to 6.9x from 6.3x in 2024 due to the full drawdown of the EUR711 million revolving credit facility (RCF) in 4Q25. Its revised forecast assumes deleveraging to 5.7x in 2026 and flat leverage thereafter. 2025 Unaudited Results Show Improvements: Casino has not yet published its audited 2025 results and expects to do so after completion of capital structure optimisation. Unaudited 2025 results demonstrate mixed revenue dynamics, but a steady improvement in profitability, broadly in line with the Fitch rating case, although slower than initially expected by management in its Renouveau 2028 programme. Its forecast assumes EBITDA slightly above EUR300 million in 2028 as a result of cost efficiency improvements and elimination of dis-synergies. The inability to publish audited accounts contributes to an increased ESG score for Financial Transparency. Peer Analysis Casino is smaller and has more limited geographic diversification than international food retail chains such as Tesco PLC (BBB/Stable). Casino's business risk profile is positioned weakly relative to food retailers in the 'B' category such as Bellis Finco plc (ASDA, B/Negative), Market Holdco 3 Limited (Morrisons, B/Stable), WD FF Limited (Iceland, B/Stable) and FR Bondco SAS (B/Stable), due to comparable EBITDAR but higher execution risks in its business turnaround and deleveraging. Casino also has weaker profitability, FCF margin, financial leverage and coverage metrics. These differences in business profile and leverage resulted, before the downgrade to 'CCC-', in a two- to three-notch differential in its IDR relative to peers. Fitch’s Key Rating-Case Assumptions Sales decline of 0.5% in 2026 and less than 1% growth in 2027-2028 Slow EBITDA margin improvement from 2.4% in 2025 to 2.6% in 2026, and towards 3.7% by 2028 Capex of around EUR300 million a year in 2026-2028. Negative working capital evolution of around EUR30 million in 2026 and flat thereafter One-off expenses related to litigations and hypermarket and supermarket segment disposals of around EUR200 million 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 ('b', Moderate), sector characteristics ('b', Moderate), market and competitive positioning ('b+', Lower), diversification and asset quality ('b-', Moderate), company operational characteristics ('b+', Lower), profitability ('ccc-', Higher), financial structure ('ccc+', Moderate), and financial flexibility ('ccc-', Higher). The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the forecast year 2025, 40% for the forecast year 2026 and 40% for the forecast year 2027. B+ to CC considerations apply in its analysis and results in an adjustment of -1 notch(es). The governance assessment of 'deficient' has no impact. The operating environment assessment of 'a+' has no impact. The SCP is 'ccc-'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'CCC-'. Recovery Analysis The recovery analysis assumes that Casino would be considered a going concern (GC) in bankruptcy and that it would be reorganised rather than liquidated in a default. Fitch has assumed a 10% administrative claim in the recovery analysis. Fitch has applied a distressed enterprise value/EBITDA of 4.5x, in line with comparable businesses and reflecting the maturity and characteristics of Casino's businesses under the restricted group. In its bespoke GC recovery analysis, Fitch considers an estimated post-restructuring EBITDA available to creditors of EUR280 million, which is broadly aligned with its forecast EBITDA for the continuing business in 2027, once the Renouveau 2030 strategy gains more traction. Fitch has assumed that Casino's debtholders would get additional value of about EUR22 million in connection with a minority equity stake in Companhia Brasileira de Distribuicao S.A. Its GC assumptions would result in an outstanding recovery rate for Casino's Quatrim debt (EUR120 million after prepayment in Q1 2026) leading to a Recovery Rating of 'RR1', indicating a B-' instrument rating. Following the payment waterfall, its assumptions result in no recoveries for the reinstated EUR1.4 billion senior secured term loan issued by Casino, leading to an 'RR6' and 'C' instrument rating. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Entering into inevitable balance-sheet restructuring stage, which Fitch would view as a DDE, or prevent timely debt service - Liquidity erosion with increasing prospects of a liquidity crisis in the next 12 months Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Clarity over Casino's capital structure with the removal of the prospect of debt restructuring, which would constitute a DDE under Fitch's criteria - Adequate liquidity with freely available cash and credit lines comfortably supporting debt service at least over the next 24 months Liquidity and Debt Structure Casino's readily available cash as calculated by Fitch was at around EUR1.2 billion at end-2025 due to the full drawdown of the Monoprix RCF. This provides sufficient headroom to cover operating expenses and capex in 2026. However, consistently negative FCF under its forecast will continue putting pressure on liquidity in 2026, exhausting the cash balance in 2027 and requiring additional funding. Issuer Profile Casino is a major French food retailer operating in convenience stores and wholesale e-commerce retail. 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 Casino. ESG Considerations Casino has an ESG Relevance Score of '4' for Financial Transparency due to failure to timely present audited 2025 annual financial statements, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Quatrim S.A.S. senior secured LT B- Rating Watch Maintained RR1 B- Casino, Guichard- Perrachon S.A. LT IDR CCC- Rating Watch Maintained CCC- senior secured LT C Affirmed RR6 C ============= G E R M A N Y ============= BLITZ 26-281 SE: Fitch Assigns B+(EXP) LongTerm IDR, Outlook Stable ------------------------------------------------------------------- Fitch Ratings has assigned Blitz 26-281 SE an expected Long-Term Issuer Default Rating (IDR) of 'B+(EXP)' with Stable Outlook. Fitch has also assigned its planned EUR650 million term loan B a 'BB-(EXP)' expected senior secured rating with a Recovery Rating of 'RR3'. The debt will part-fund the acquisition of Hana Group and its subsequent combination with Eat Happy Group (EHG) to create Bento, subject to regulatory approvals. Final ratings are subject to the completion of transaction on terms as reviewed by us. The rating reflects Bento's niche scale, modest geographic and limited product diversification, which increases its exposure to changing consumer preferences and product-specific safety risks. This is balanced by sound demand fundamentals for an attractive fresh grocery sushi category, a substantially variable cost base, and low initial EBITDAR leverage, healthy profit margins and expected increasingly positive free cash flow (FCF). Key Rating Drivers Leading Position, Modest Diversification: Bento will be a leading Asian food platform with over 5,400 points of sale (POS) in their retail partner stores across 14 countries in Europe. The group operates about 3,500 sushi kiosks, where chefs prepare fresh high-quality sushi daily, and 1,900 chillers for smaller stores that are serviced mainly from nearby stores or from central kitchens. Its size and track record represent a competitive advantage. The two key markets are Germany and France, representing around 75% of gross sales. Product diversification is limited with sushi accounting for about 75% of sales; Bento also sells sushi bowls, sweets, salads, wok, beverages and sauces. The single product exposure results in a more concentrated business profile and heightens exposure to product-specific safety risks and changing consumer preferences. Attractive Category: Fitch believes fresh grocery sushi is an attractive food-to-go category, driven by health trends and convenience, particularly for the young generation of consumers. Fitch believes sushi has good growth prospects, but it is less competitively priced than other food-to-go categories, due to its higher price point against other options like sandwiches and salads, and particularly in the current environment of weak consumer sentiment. Unique Business Model: Fitch views Bento as a crossover business between food retail and restaurant. It has strong competitive advantages in its positioning in stores, effective management of its supply chain, strong relationships with retail partners, and a highly variable cost base. Fitch views its commission-based, long term contracts with retail partners akin to favourable lease terms, reinforced by greater flexibility of closing down the site as opposed to closing a store by a retailer. Sustained Growth but Limited Scale: Bento's rating is constrained by scale, with its Fitch-defined EBITDAR consistent with a 'b' category. Fitch forecasts sustained growth of like-for-like (LFL) sales from existing POS and from over 1,100 new POS, of which 500 have been agreed for 2026-2029. Fitch believes there is scope to open new POS, mostly with existing partner stores, with manageable execution risk. Fitch believes that about half of the new openings are planned for Germany, which offers the highest growth prospects. Limited Execution Risk on Integration: Fitch sees limited execution risk to integrating the two groups in different countries and to delivering planned synergies. Its forecast incorporates a slight increase in profit margin as the company gains scale and delivers procurement and operational synergies. Positive FCF: Fitch forecasts positive underlying cash generation, supported by limited working capital outflows. However, capex over 2026-2029 constrains FCF. This is mitigated by growth capex being discretionary, which Bento can adjust as it consists of individual kiosk openings that require low capex per site. Bento may use the build-up of cash for continued expansion or dividend distribution that is consistent with its conservative leverage policy. Contained Starting Leverage: Fitch forecasts moderate Fitch-defined EBITDAR leverage of about 4.0x in 2026, before deleveraging from EBITDA growth to near 3.5x in 2027. This is supported by a financial policy of a maximum 3.5x net debt / EBITDA (post IFRS16) over the next three years, as outlined in a shareholder agreement between the private equity sponsor (58% shareholding) and founder/other shareholders. Subsequently, leverage may increase as debt documentation permits 7.5x leverage and a change-of-control event would not be triggered if the founder exited. France Underperforms in 2025: France is a home market for Hana Group, which had flat LFL sales in 2025 across its 785 kiosks, versus 4.5% LFL sales growth for the combined group. The underperformance was due to some format changes and also market share losses by its retail partners, which in its view highlights its dependence on retail partners. Overall, Fitch believes Bento and its retail partners are aligned in their interests in generating income from kiosks, and Bento can exit underperforming sites more easily than food retailers or restaurant operators can exit their sites. Peer Analysis Bento is substantially smaller than most of its rated food retail peers, including Asda (Bellis Finco plc, B/Negative) and Morrisons (Market Holdco 3 Limited, B/Stable). It is also smaller than Eroski, S.Coop (BB-/Stable) that generated around EUR400 million EBITDAR, as well as Iceland (WD FF Limited, B/Stable) and Picard (FR Bondco SAS, B/Stable) both with about EUR300 million EBITDAR. Eroski's one-notch higher rating is due to its larger scale, broader diversification and lower demand volatility more than offsetting its slightly higher leverage (4.5x). Picard has a robust business model, well-known brand and very strong margins for a retailer, but its leverage of 7.0x is much higher than Bento's, resulting in its lower rating by one notch. Iceland has a weaker business profile than other grocers; its lower margin, weaker FCF and higher leverage (5.0x) are reflected in its one-notch lower rating. Fitch also compared Bento to restaurant peers. Restaurant Brands International Inc (BB+/Stable), a global quick-service restaurant franchisor with over 33,000 units, is considerably more diversified and materially larger with over USD9 billion revenue and nearly USD3 billion EBITDA. Raising Cane's Restaurants, LLC (BB-/Stable), restaurant operator and franchisor in the US, with about 900 units, has considerably larger scale and higher operating profitability than Bento. Its leverage is in the high 3.0x range, similar to Bento's. Its rating is also constrained by a single-brand concept. QSRP Invest Sarl (B/Stable) has a mostly franchise business model (80%) that is more diversified across burgers, tacos, Asian cuisine and Coffee & Bakery. Its one-notch rating differential with Bento's reflects the latter's meaningfully stronger credit metrics more than offsetting its weaker diversification. Fitch’s Key Rating-Case Assumptions • Revenue to grow in the high single digits, averaging around 8% over 2026-2029, driven primarily by new kiosk openings in Germany, France and the UK, as well as LFL growth mainly in Germany and the UK, partly offset by weaker LFL performance in Italy and France • EBITDAR margin to gradually improve as Bento gains scale, also supported by productivity gains and synergies • Small working capital outflows on average at EUR5 million over 2026-2029 • Capex to average about EUR55 million a year over 2026-2029, comprising increasing maintenance capex as Bento gains scale and growth capex for mostly kiosk openings (1,185) • No dividend payments until 2028 •An outflow of EUR15 million in 2027 in relation to the Wasabi put option 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 ('b', Higher), diversification and asset quality ('b+', Higher), company operational characteristics ('bbb-', Lower), profitability ('b+', Moderate), financial structure ('bb-', Higher), and financial flexibility ('bb+', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 45% weight for the forecast year 2026, 45% for the forecast year 2027 and 10% for the forecast year 2028. B+ to CC considerations apply in its analysis and have no impact. The governance assessment of 'some deficiencies' has no impact. The operating environment assessment of 'aa-' has no impact. The SCP is 'b+'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'B+'. Recovery Analysis Its recovery analysis assumes that Bento would be treated as a going concern in bankruptcy and reorganised rather than liquidated. Its bespoke going-concern recovery analysis assumes post-restructuring EBITDA available to creditors of about EUR100 million. This reflects its view of a sustainable EBITDA level that would allow Bento to remain a viable business. Fitch applied a distressed enterprise value/EBITDA multiple of 5.0x, reflecting Bento's market position and sustainable business model. This is half a turn above Iceland's 4.5x multiple, reflecting Bento's stronger cash generation profile. The multiple is aligned with QSRP Invest S.a.r.l.'s and Wheel Bidco Limited's. Under the planned capital structure, Bento will issue EUR650 million TLB and EUR100 million revolving credit facility (RCF), both ranking pari passu, to part-fund the acquisition of Hana Group. In line with its criteria, Fitch assumes the EUR100 million senior RCF is fully drawn at default. Its principal waterfall analysis, after deducting 10% for administrative claims, produced a ranked recovery for the senior secured debt equivalent to 'RR3', leading to one-notch uplift over the IDR to a 'BB-(EXP)' debt rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Weaker-than-expected earnings due to weaker sales trends, poor execution of growth, or an inability to deliver synergies as planned - EBITDAR leverage consistently above 4.0x due to weaker performance, additional debt, or shareholder distributions - Looser financial policy in anticipation of higher leverage - EBITDAR fixed-charge coverage below 2.0x - Reducing FCF towards neutral Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Demonstrated strong trading, combined with broader diversification, increase in units that results in higher EBITDAR towards the 'bb' category medians under Fitch's Non-Food Retail Navigator while maintaining positive FCF - Conservative, clearly stated financial policy resulting in EBITDAR leverage consistently below 3.0x - EBITDAR fixed-charge coverage above 2.5x Liquidity and Debt Structure Bento has a satisfactory liquidity profile, with a Fitch-estimated cash balance of about EUR30 million at end-2025, alongside the planned, new committed EUR100 million RCF due in 2032. Fitch expects Bento's liquidity to strengthen over 2026-2029, supported by the cash-generative nature of its business. Its planned debt structure is concentrated in the TLB, but it provides comfortable maturity headroom given the seven-year maturity. Date of Relevant Committee May 20, 2026 MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Bento. 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 ----------- ------ -------- Blitz 26-281 SE LT IDR B+(EXP) Expected Rating senior secured LT BB-(EXP) Expected Rating RR3 ============= I R E L A N D ============= ARES EUROPEAN XI: Fitch Affirms 'B+sf' Rating on Class F Notes -------------------------------------------------------------- Fitch Ratings has upgraded Ares European CLO XI DAC's class C-R and D-R notes and affirmed the rest. The Outlooks are Stable. Entity/Debt Rating Prior ----------- ------ ----- Ares European CLO XI DAC A-1-R XS2333699267 LT AAAsf Affirmed AAAsf A-2-R XS2333699937 LT AAAsf Affirmed AAAsf B-1-R XS2333700610 LT AAAsf Affirmed AAAsf B-2-R XS2333701261 LT AAAsf Affirmed AAAsf C-R XS2333701931 LT AA+sf Upgrade AAsf D-R XS2333702582 LT Asf Upgrade BBB+sf E XS1958267905 LT BB+sf Affirmed BB+sf F XS1958269273 LT B+sf Affirmed B+sf Transaction Summary Ares European CLO XI DAC is a cash flow CLO comprising mostly of senior secured obligations. The transaction is outside of its reinvestment period and the portfolio is actively managed by Ares European Loan Management LLP. KEY RATING DRIVERS Deleveraging Increases Credit Enhancement: Approximately EUR108 million of the class A-1-R notes have been repaid since its last review in June 2025, according to the trustee report dated 1 April 2026. The repayment has more than offset a widening of par losses, which are now 2.1% of the original target par, versus 1% at the last review. As a result, credit enhancement (CE) has increased across the capital structure since the last review, driving the upgrades of the class C-R and D-R notes. Sufficient Cushion Supports Stable Outlooks: All notes have sufficient default-rate cushions to support their current ratings and withstand potential deterioration in the credit quality of the portfolio at their ratings. 'B'/'B-' Portfolio: Fitch assesses the average credit quality of the underlying obligors at 'B'/'B-'. The weighted average rating factor (WARF) of the current portfolio is 27.7 as calculated by Fitch under its current criteria. Exposure to obligors with a Negative Outlook on their driving ratings is 23.5%, as calculated by Fitch. According to the trustee report dated 1 April 2026, there are no defaulted assets and exposure to assets with a Fitch-derived rating of 'CCC+' or lower (the Fitch 'CCC' test) is 8.7% against a limit of 7.5%. High Recovery Expectations: Senior secured obligations comprise 99.9% of the portfolio. Fitch views the recovery prospects for these assets as more favorable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate (WARR) of the current portfolio is 60.6%. Diversified Portfolio: The portfolio is well-diversified across obligors, countries and industries. The top 10 obligor concentration, as calculated by Fitch, is 20.3%, and no obligor represents more than 2.7% of the portfolio balance. Exposure to the three largest Fitch-defined industries is 28.7%, according to the trustee report. Fixed-rate assets reported by the trustee are at 4.2% of the portfolio balance, against a limit of 7.5%. Transaction Outside Reinvestment Period: The reinvestment period ended in October 2023, but the manager can continue to reinvest unscheduled principal proceeds and sale proceeds from credit-improved or credit-impaired obligations, subject to compliance with the reinvestment criteria. The manager has been unable to reinvest since August 2025 due to breaches of certain tests. According to the trustee report dated 1 April 2026, the transaction breaches the Fitch 'CCC' test and two other tests from another rating agency that must be satisfied after each reinvestment. However, because these tests may be cured through the sale of some of the 'CCC' rated assets, Fitch assumed in its upgrade analysis 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. Since the recovery definition of this transaction is not in line with the current criteria and could result in an inflated weighted average recovery rate compared with the current criteria, a 1.5% haircut was applied across all Fitch test matrices. Model-Implied Rating Deviation: The class D-R notes' rating is one notch below the model-implied rating due to a limited cushion against their break-even default rates at a higher rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Downgrades based on the current portfolio may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades may occur on stable portfolio credit quality and deleveraging, leading to higher CE and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognised Statistical Rating Organisations and/or European Securities and Markets Authority- registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the rating agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Ares European CLO XI 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. BAIN CAPITAL 2018-2: Fitch Affirms B-sf Rating on Class F Debt -------------------------------------------------------------- Fitch Ratings has upgraded Bain Capital Euro CLO 2018-2 DAC's class C and class D notes and affirmed the others. The Outlook on the class F notes has been revised to Negative from Stable. Entity/Debt Rating Prior ----------- ------ ----- Bain Capital Euro CLO 2018-2 DAC A-R XS2326485898 LT PIFsf Paid In Full AAAsf B-1-R XS2326486516 LT AAAsf Affirmed AAAsf B-2-R XS2326487167 LT AAAsf Affirmed AAAsf C XS1890841452 LT AAAsf Upgrade A+sf D XS1890840058 LT A+sf Upgrade BBB+sf E XS1890842930 LT BB+sf Affirmed BB+sf F XS1890843235 LT B-sf Affirmed B-sf Transaction Summary Bain Capital Euro CLO 2018-2 DAC is a cash flow CLO mostly comprising senior secured obligations. The transaction is actively managed by Bain Capital Credit, Ltd. and exited its reinvestment period in January 2023. KEY RATING DRIVERS Amortisation Benefits Senior Notes: The transaction has amortised by about EUR130 million since its last review in July 2025 according to the trustee report dated 6 May 2026, with the class A-R notes being paid in full and the class B-1-R and B-2-R notes beginning to pay down. The manager reported aggregated sales of EUR27.2 million. The difference likely reflects prepayments due to the manager not participating in the repricing activity between July 2025 and February 2026. The manager has not reported any purchases since March 2025. The amortisation has resulted in an increase in credit enhancement for the class C and D notes, driving their upgrades. Junior Notes Sensitive to Deterioration: The transaction is currently 4.6% below par (calculated as the current par difference below the original target par). Defaulted assets have reduced to EUR3.5 million from EUR10 million as of the last review. However, the decline partly reflects sales of assets below par, which have led to further par erosion of about EUR4.5 million over the last year. Prepayments and sales have increased the share of assets rated 'CCC+' and below to 14% from 6% and assets on Negative Outlook account for 29.7% of the current portfolio. This supports the Negative Outlook on the class F notes. Increasing Refinancing Risk: The Negative Outlook on the class F notes is also driven by increasing near- and medium-term refinancing risk, with about 45% of the remaining portfolio due to mature by end of 2028. The weaker credit quality of the remaining portfolio has led Fitch to expect slower prepayments, as re-pricings are less likely and, unless asset values recover, further par losses from asset sales. The market value over-collateralisation for the class F notes is still positive but much less than the par over-collateralisation. Mildly Diversified Portfolio: As the transaction is amortising, concentration is increasing, with the top 10 obligors at 30.3%. The largest obligor represents 3.7% of the portfolio and exposure to the three largest Fitch-defined industries is 24.6%, by Fitch's calculations. '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 28 as calculated by Fitch under its latest criteria. High Recovery Expectations: Senior secured obligations comprise 99.5% 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 61%. Transaction Out of Reinvestment Period: The manager stopped reinvesting in March 2025. The manager's barriers to reinvesting mean Fitch's downgrade analysis is based on the current portfolio, and the upgrade analysis is based on a stressed portfolio in which Fitch has notched down assets on Negative Outlook and floored the WAL at four years. Deviation from MIR: The class D notes are three notches below their model-implied ratings (MIR). The deviation reflects the increasing top 10 obligor concentration, with some 'CCC' or below rated assets, and growing exposure to refinancing risk, combined with limited default-rate cushions at their MIRs. 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 Bain Capital Euro CLO 2018-2 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. Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action 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 Bain Capital Euro CLO 2018-2 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. CAPITAL FOUR XII: Fitch Assigns 'B-(EXP)sf' Rating on Class F Notes ------------------------------------------------------------------- Fitch Ratings has assigned Capital Four CLO XII DAC expected ratings. The assignment of final ratings is contingent on the receipt of final documents conforming to the information already received. Entity/Debt Rating ----------- ------ Capital Four CLO XII DAC A XS3379657508 LT AAA(EXP)sf Expected Rating B XS3379657763 LT AA(EXP)sf Expected Rating C XS3379657920 LT A(EXP)sf Expected Rating D XS3379658225 LT BBB-(EXP)sf Expected Rating E XS3379658571 LT BB-(EXP)sf Expected Rating F XS3379658738 LT B-(EXP)sf Expected Rating Subordinated Notes XS3379659629 LT NR(EXP)sf Expected Rating Transaction Summary Capital Four CLO XII 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 will be used to fund the portfolio with a target par of EUR450 million. The portfolio is actively managed by Capital Four AIFM A/S. The CLO will have a 4.5-year reinvestment period and a 7.5-year weighted average life (WAL) test covenant at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors in the identified portfolio to be in the 'B' category. The Fitch weighted average rating factor of the identified portfolio is 24.5. High Recovery Expectations (Positive): At least 90% of the portfolio will comprise senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate of the identified portfolio is 61.4%. Diversified Asset Portfolio (Positive): The transaction will have various concentration limits, including a top 10 obligor concentration limit of 20% and a maximum exposure to the three largest Fitch-defined industries in the portfolio of 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction will have a reinvestment period of 4.5 years and include reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. WAL Step-Up Feature (Neutral): The transaction can extend the WAL test by one year on the WAL test step-up determination date one year after closing. The WAL extension is subject to conditions, including passing the collateral quality tests, coverage tests, portfolio profile tests and the collateral principal amount with defaulted assets carried at their collateral value being at least equal to the reinvestment target par. Cash Flow Modelling (Positive): The WAL used for the transaction's Fitch-stressed portfolio and matrix analysis is 12 months less than the WAL covenant at the issue date, to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period. These include passing the coverage tests and the Fitch 'CCC' bucket limit test, and a WAL covenant that gradually steps down, before and after the end of the reinvestment period. 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 An increase of the mean default rate (RDR) in the identified portfolio by 25% and a decrease of the recovery rate (RRR) by 25% at all rating levels would have no impact on the class A notes, lead to downgrades of one notch each for the class D and E notes, two notches each for the class B and C 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 C notes have a one-notch rating cushion, and the class B, D, E and F notes each have a two-notch rating 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 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 result in upgrades of up to two notches each for all the rated notes, except for the 'AAAsf' rated notes. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may result from better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the remaining life of the transaction. Upgrades after the end of the reinvestment period may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognised Statistical Rating Organisations and/or European Securities and Markets Authority- registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the rating agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Capital Four CLO XII 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. CVC CORDATUS XXIII: Fitch Assigns 'B-sf' Rating on Class F-R Notes ------------------------------------------------------------------ Fitch Ratings has assigned CVC Cordatus Loan Fund XXIII DAC refinancing notes final ratings and affirmed the non-refinanced notes. Entity/Debt Rating Prior ----------- ------ ----- CVC Cordatus Loan Fund XXIII DAC A-1 XS2441239618 LT PIFsf Paid In Full AAAsf A-2 XS2455336169 LT PIFsf Paid In Full AAAsf A-R XS3376302868 LT AAAsf New Rating B-1-R XS2877495114 LT PIFsf Paid In Full AAsf B-1-RR XS3376303080 LT AAsf New Rating B-2 XS2441240038 LT AAsf Affirmed AAsf C-R XS2877522701 LT PIFsf Paid In Full Asf C-RR XS3376303247 LT Asf New Rating D-R XS2877599162 LT PIFsf Paid In Full BBB-sf D-RR XS3376303593 LT BBB-sf New Rating E-R XS2877701628 LT PIFsf Paid In Full BB-sf E-RR XS3376303759 LT BB-sf New Rating F XS2441240970 LT PIFsf Paid In Full B-sf F-R XS3376303916 LT B-sf New Rating Transaction Summary CVC Cordatus Loan Fund XXIII 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. Net proceeds from the refinancing notes were used to redeem the existing notes, except for the class B-2 notes and the subordinated notes. The portfolio is actively managed by CVC Credit Partners Investment Management Limited (CVC). The transaction will exit its reinvestment period in October 2026 and has approximately a 4.5-year weighted average life (WAL) test. KEY RATING DRIVERS Average Portfolio Credit Quality: Fitch assesses the average credit quality of obligors at 'B'. The Fitch-calculated weighted average rating factor of the identified portfolio is 24.5. Strong Recovery Expectation: 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 of the identified portfolio is 57.9%. Diversified Portfolio: The transaction has various 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: The original matrices were updated in connection with this refinancing, so that only two matrices corresponding to a WAL covenant of 4.5 years and a top 10 obligors limit of 23% are effective. The two matrices correspond to fixed-rate asset limits of 7.5% and 15%. The transaction has five months of the reinvestment period remaining, governed by reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling: The WAL for the transaction's Fitch-stressed portfolio and matrices analysis is in line with the WAL covenant, which, under Fitch's criteria, is below the floor with no further reduction. In addition, its analysis considered that the transaction is about 1% below the target par of EUR500 million. Class B-2 Notes Affirmed: The affirmation of the existing class B-2 notes reflects that the transaction's performance is in line with the expected rating case. The default rate cushion at 'AAsf' based on the existing portfolio supports the Stable Outlook. 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 lead to downgrades of one notch for the class E-RR notes and to below 'B-sf' for the class F-R notes. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. The class B-1-RR, B-2, D-RR, E-RR and F-R notes have two-notch rating cushions, and the class C-RR notes have a three-notch rating cushion, due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded 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 one notch for the class D-RR notes, two notches for the class A-R and C-RR notes, three notches for the class B-1-RR, B-2 and E-RR notes and to below 'B-sf' for the class F-R 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 across the capital structure. During the reinvestment period, based on the Fitch-stressed portfolio, upgrades may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the transaction's remaining life. After the end of the reinvestment period, upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY CVC Cordatus Loan Fund XXIII 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 CVC Cordatus Loan Fund XXIII 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. INVESCO EURO IX: Fitch Affirms B-sf Rating on Class F-R Debt ------------------------------------------------------------ Fitch Ratings has revised Invesco Euro CLO IX DAC's class F-R notes Outlook to Negative from Stable. All notes have been affirmed. Entity/Debt Rating Prior ----------- ------ ----- Invesco Euro CLO IX DAC X-R XS2898159459 LT AAAsf Affirmed AAAsf A-R Note XS2898159707 LT AAAsf Affirmed AAAsf A-R Loan XS2901907464 LT AAAsf Affirmed AAAsf B-1R XS2898159889 LT AAsf Affirmed AAsf B-2R XS2898160036 LT AAsf Affirmed AAsf C-R XS2898160200 LT Asf Affirmed Asf D-R XS2898160465 LT BBB-sf Affirmed BBB-sf E-R XS2898160622 LT BB-sf Affirmed BB-sf F-R XS2898160978 LT B-sf Affirmed B-sf Transaction Summary Invesco Euro CLO IX DAC is a European cash flow collateralised loan obligation (CLO) predominantly backed by senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. The transaction has a target par amount of EUR400 million. The portfolio is actively managed by Invesco European RR L.P. The reinvestment period ends on 20 April 2029, and the transaction had a 7.04-year weighted average life (WAL) test covenant as of 8 April 2026. KEY RATING DRIVERS Performance Deterioration: The transaction has recorded par losses, since the latest reset on 21 October 2024, due mainly to defaults in the portfolio. The collateral principal amount was EUR8.52 million below the target par amount of EUR400 million, representing a 2.13% shortfall, according to the latest trustee report dated 8 April 2026. The same report showed Fitch 'CCC' obligations at 5.55% of the portfolio, remaining within the transaction limit of 7.5%. Defaulted obligations totalled approximately EUR6.67 million, while no long-dated obligations were reported. Par losses, together with a decline in the portfolio's weighted average spread, have eroded the break-even default-rate cushion. The Outlook revision of the class F-R notes to Negative reflects the reduced buffer against further deterioration in portfolio credit quality. Sufficient Cushion for Higher-Ranking Notes: The class X-R, A-R, B-1R, B-2R, C-R, D-R, and E-R notes and the class A-R loan have retained sufficient buffers to support their ratings and should be capable of absorbing further defaults and par erosion in the portfolio. This is reflected in their Stable Outlooks. '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 24.8 as calculated by Fitch under its current criteria. Fitch also calculates that 22% of the assets are on Negative Outlook. High Recovery Expectations: Senior secured obligations comprise 100% 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 63.1%. Diversified Portfolio: The portfolio remains well diversified across obligors, countries and industries. Fitch-calculated top 10 obligor concentration is 16.7%, with the largest obligor accounting for 1.9% of the portfolio balance. Exposure to the three largest Fitch-defined industries is 30.2%, with technology software representing the third-largest industry exposure at 8.7%. Fixed-rate assets, as reported by the trustee, accounted for 3.3% of the portfolio, within the 7.5% limit. Limited Refinancing Risk: The transaction has decreasing near- and medium-term refinancing risk, with 15.9% of the remaining portfolio due to mature by end-2028, compared with 30.4% at the last review. Transaction Inside Reinvestment Period: The manager's ability to reinvest means that Fitch's analysis is based on a stressed portfolio, which Fitch tested for the notes' achievable ratings across all Fitch test matrices, as the portfolio can still migrate to different collateral quality tests and the level of fixed-rate assets could change. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Downgrades, which are based on the current portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognised Statistical Rating Organisations and/or European Securities and Markets Authority- registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the rating agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Invesco Euro CLO IX 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. INVESCO EURO V: Fitch Affirms B-sf Rating on Class F Debt --------------------------------------------------------- Fitch Ratings has revised Invesco Euro CLO V DAC's class E and F notes Outlook to Negative from Stable. All notes have been affirmed. Entity/Debt Rating Prior ----------- ------ ----- Invesco Euro CLO V DAC A-R XS3036677253 LT AAAsf Affirmed AAAsf B-1 XS2269330184 LT AAsf Affirmed AAsf B-2 XS2269330341 LT AAsf Affirmed AAsf C XS2269330697 LT Asf Affirmed Asf D XS2269330853 LT BBB-sf Affirmed BBB-sf E XS2269331075 LT BB-sf Affirmed BB-sf F XS2269331232 LT B-sf Affirmed B-sf Transaction Summary Invesco Euro CLO V DAC is a European cash flow collateralised loan obligation (CLO) predominantly backed by senior secured obligations (at least 92.5%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. The transaction had an original target par amount of EUR300 million. The portfolio is actively managed by Invesco European RR L.P. The reinvestment period ended on 15 January 2025, and the transaction had a 3.3-year weighted average life (WAL) test covenant as of 1 April 2026. KEY RATING DRIVERS Performance Deterioration: The transaction has recorded par losses since closing on 15 January 2021. The collateral principal amount was approximately EUR13.5 million below the original target par amount of EUR300 million, representing a 4.5% shortfall, based on the latest trustee report dated 1 April 2026. The report also showed that the deal failed the class E par value test, with a result of 106.2%, below the minimum of 106.61%. Fitch 'CCC' obligations accounted for 7.2% of the portfolio, remaining within the transaction limit of 7.5%, and defaulted obligations totalled about EUR7.5 million. In addition, long-dated obligations represented 0.7% of the portfolio. On the most recent payment date, available interest proceeds were insufficient to fully cover the interest due on the class F notes due to excess spread compression, resulting in EUR168,199 of deferred interest. Reduced Break-even Cushions: Par losses and a decline in the portfolio's weighted average spread have reduced the break-even default-rate cushions for the class E and F notes at 'BB-sf' and 'B-sf', respectively. Nevertheless, the class E notes remain highly vulnerable to default risk in the event of adverse changes in economic conditions over time, while the class F notes indicate a high likelihood of default with a limited margin of safety. The Outlook revision of the class E and F notes to Negative reflects the reduced protection against further defaults. Amortisation Benefits Higher-Ranking Notes: The transaction has begun to deleverage its most senior notes. The class X notes have been repaid in full, and the class A-R notes have amortised by EUR5.7 million, equivalent to 1.9% of the original target par amount. The transaction held EUR44 million in cash, according to the trustee report. Those principal proceeds may be used to further deleverage the transaction on the next payment date, as the transaction is outside its reinvestment period and the reinvestment criteria were not met as of 1 April 2026, Credit enhancement remains below original levels across all tranches due to the transaction's par shortfall, despite the benefits of deleveraging for senior and mezzanine noteholders. Nevertheless, the class A-R, B-1, B-2, C and D notes continue to benefit from sufficient loss-absorption capacity to support their current ratings and to withstand further defaults and par erosion in the portfolio. This is reflected in their Stable Outlooks. '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 26.6 as calculated by Fitch under its current criteria. Fitch also calculates that 23.2% of the assets are on Negative Outlook. High Recovery Expectations: Senior secured obligations comprise 100% 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 62.9%. Diversified Portfolio: The portfolio is well-diversified across obligors, countries and industries. The top 10 obligor concentration, as calculated by Fitch, is 24.2%, and the largest obligor represents 3.5% of the portfolio balance. Exposure to the three-largest Fitch-defined industries is 27.8% as calculated by Fitch, with the technology software sector at 5.85%. Fixed-rate assets as reported by the trustee are 4.1%, complying with the limit of 10%. Limited Refinancing Risk: The transaction has decreasing near- and medium-term refinancing risk, with 24.6% of the remaining portfolio due to mature by end-2028, compared with 27.6% at the last review in March 2026. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Downgrades, which are based on the current portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognised Statistical Rating Organisations and/or European Securities and Markets Authority- registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the rating agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Invesco Euro CLO V 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. JUBILEE CLO 2018-XXI: Fitch Affirms B+sf Rating on Class F-R Notes ------------------------------------------------------------------ Fitch Ratings has affirmed Jubilee CLO 2018-XXI DAC's notes and revised the Outlook on the class F-R notes to Negative from Stable. Entity/Debt Rating Prior ----------- ------ ----- Jubilee CLO 2018-XXI DAC A-R XS2308742639 LT AAAsf Affirmed AAAsf B-R XS2308742985 LT AA+sf Affirmed AA+sf C-1-R XS2308743520 LT A+sf Affirmed A+sf C-2-R XS2309373111 LT A+sf Affirmed A+sf D-R XS2308743959 LT BBB+sf Affirmed BBB+sf E-R XS2308744338 LT BB+sf Affirmed BB+sf F-R XS2308744254 LT B+sf Affirmed B+sf Transaction Summary Jubilee CLO 2018-XXI DAC is a cash flow CLO mostly comprising senior secured obligations (at least 90%). The transaction is managed by Benefit Street Partners and exited its reinvestment period in April 2025. Reinvestment is subject to reinvestment criteria. KEY RATING DRIVERS Junior Notes Sensitive to Performance Deterioration: The transaction has seen further par losses since the previous review in September 2025, mainly driven by the sale of portfolio assets at discounted prices, and is currently 2.77% below par. The revision of the Outlook on the class F-R notes reflects their reduced protection against new defaults caused by this par erosion. The portfolio has around EUR 5.5 million of defaulted assets with low recovery prospects and 18.52% of the current portfolio is on Negative Outlook. Sufficient Cushion for Higher-Ranking Notes: The class A-R to E-R notes have retained sufficient buffers to support their current ratings and should be capable of absorbing further defaults and par erosion in the portfolio. This is reflected by their Stable Outlooks. 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 25.2 as calculated by Fitch under its current criteria. High Recovery Expectations: Senior secured obligations comprise 98.6% 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 61.6% Diversified Portfolio: The portfolio is well-diversified across obligors, countries and industries. The top 10 obligor concentration, as calculated by Fitch, is 16.2%, and the largest obligor represents 2.1% of the portfolio balance. Exposure to the three largest Fitch-defined industries is 25.4% as calculated by Fitch. Fixed-rate assets as reported by the trustee are 5.8%, complying with the reported limit of 10.0%. 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 assumed, due to unexpectedly high levels of default and portfolio deterioration. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Jubilee CLO 2018-XXI 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 Jubilee CLO 2018-XXI 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. MAN GLG V: Fitch Lowers Rating on Class F Notes to 'CCCsf' ---------------------------------------------------------- Fitch Ratings has upgraded Man GLG Euro CLO V DAC's class C-1, C-2-R, C-3, D-1 and D-2-R notes, downgraded the class F notes and affirmed the others. Entity/Debt Rating Prior ----------- ------ ----- Man GLG Euro CLO V DAC A-1-R XS2313671526 LT AAAsf Affirmed AAAsf A-2-R XS2313672250 LT AAAsf Affirmed AAAsf B-1 XS1881728221 LT AAAsf Affirmed AAAsf B-2-R XS2313672334 LT AAAsf Affirmed AAAsf B-3 XS1885673399 LT AAAsf Affirmed AAAsf C-1 XS1881728908 LT AA+sf Upgrade A+sf C-2-R XS2313673142 LT AA+sf Upgrade A+sf C-3 XS1885673985 LT AA+sf Upgrade A+sf D-1 XS1881729203 LT A-sf Upgrade BBB+sf D-2-R XS2313672680 LT A-sf Upgrade BBB+sf E XS1881732256 LT BB+sf Affirmed BB+sf F XS1881732330 LT CCCsf Downgrade B-sf Transaction Summary Man GLG Euro CLO V DAC is a cash flow CLO comprising mostly senior secured obligations. The transaction is actively managed by GLG Partners LP and exited its reinvestment period in December 2022. KEY RATING DRIVERS Junior Notes Sensitive to Par Loss: The transaction has experienced further par losses since the last review and is currently 5.4% below par. The class F par value test has been consistently failing since September 2025 and the ratio is currently 101.8%. The portfolio has EUR9.0 million of defaulted assets and EUR19.1 million (or 13.1% of the portfolio) of Fitch 'CCC' obligations. Exposure to obligors with a Negative Outlook is 23.5%, as calculated by Fitch. Fitch estimates the current market value of the portfolio to be below the outstanding balance of the rated notes, making a repayment in full by 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 Enhances CE: The class A-1-R notes have been repaid by EUR138.8 million (96.5%) since the last review in July 2025. The benefit from amortisation outweighs further par losses that have occurred since the previous review and increased the credit enhancement (CE) for the rated notes, except the class F notes, leading to the upgrades and affirmations. The Negative Outlook on the class E notes reflects continuing par loss and increasing Fitch 'CCC' assets. Short Tail Period: The portfolio comprises 11.6% of non-defaulted assets maturing within one year of the notes' maturity date, and 13.7% 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. 'B'/'B-' Portfolio: Fitch assesses the average credit quality of the underlying obligors at 'B'/'B-'. Fitch calculated, under its current criteria, the weighted average rating factor at 27.5 for the current portfolio and 29.5 for the stressed portfolio, for which Fitch has adjusted assets on Negative Outlook downward by one notch. High Recovery Expectations: Senior secured obligations comprise 97.6% 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 57.5% under its current criteria. Moderately Diversified Portfolio: The portfolio is moderately diversified across obligors, countries and industries, although the top 10 obligors and the largest obligor concentrations are 25.8% and 3.4%, respectively, failing their respective limits of 20% and 3%. Exposure to the three largest Fitch-defined industries is 37.2% as calculated by Fitch. Fixed-rate assets as reported by the trustee are at 4.1%, currently complying with the limit of 10%. Transaction Outside Reinvestment Period: The transaction exited its reinvestment period in December 2022 and has not made a purchase since January 2025 (and no sales since December 2025). The transaction cannot reinvest currently due to the failure of the Fitch 'CCC' limit and the class F par value tests. The manager's inability to reinvest means Fitch's downgrade analysis is based on the current portfolio, and the upgrade analysis is based on a Fitch-stressed portfolio, for which Fitch has notched down assets on Negative Outlook and floored the weighted average life at four years. Deviation from MIRs: The class C-1, C-2-R and C-3 notes are rated one notch below their model-implied ratings (MIR) due to insufficient break-even default-rate cushion at the MIRs. The class D-1 and D-2-R notes are rated two notches below their MIRs to avoid unjustified rating volatility at higher ratings. The portfolio will become more concentrated as deleveraging continues. In addition, there is a sizable Fitch 'CCC' bucket and the market value of these lower rated assets has shown high volatility. 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 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 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 Man GLG Euro CLO V 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. PROVIDUS CLO VIII: S&P Affirms B-(sf) Rating on Class F-R Notes --------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Providus CLO VIII DAC's class A-R-R, B-R-R, C-R-R, D-R-R, and E-R-R notes. At the same time, S&P affirmed its rating on the existing class F-R notes and withdrew its ratings on the original class A-R, B-R, C-R, D-R, and E-R notes. At closing, the issuer had unrated subordinated notes outstanding from the existing transaction. On May 26, 2026, Providus CLO VIII refinanced the existing class A-R, B-R, C-R, D-R, and E-R notes (originally issued in October 2024) through an optional redemption and issued replacement notes of the same notional. To account for the difference in Euro Interbank Offered Rate (EURIBOR) rates at pricing and settlement, the original interest rates on the refinanced notes were adjusted such that the accrued interest amounts remain the same for each class of refinanced notes, and noteholders are paid in full. S&P withdrew its ratings on these classes of notes. The replacement notes are largely subject to the same terms and conditions as the original notes, except that the replacement notes will have a lower spread over EURIBOR than the original notes. The ratings reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,923.52 Default rate dispersion 534.90 Weighted-average life (years) 4.27 Obligor diversity measure 176.96 Industry diversity measure 18.53 Regional diversity measure 1.38 Transaction key metrics Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 4.60 Actual 'AAA' weighted-average recovery (%) 35.06 Actual weighted-average spread (net of floors; %) 3.59 Actual weighted-average coupon (%) 4.09 Rating rationale Under the transaction documents, the rated notes will pay quarterly interest unless a frequency switch event occurs. Following this, the notes will switch to semiannual payments. The portfolio's reinvestment period will end on April 13, 2029. The portfolio is well diversified at closing, primarily comprising broadly syndicated speculative-grade senior secured term loans and senior secured bonds. Therefore, S&P has conducted its credit and cash flow analysis by applying its criteria for corporate cash flow CDOs. S&P said, "In our cash flow analysis, we modelled a par amount of EUR424.43 million, which is lower than the target par amount of EUR425.00 million. At closing, the portfolio is below par, the collateral principal amount used in our cash flow analysis is adjusted further down by the presence of negative cash. "We used the portfolio's actual weighted-average spread (3.59%), actual weighted-average coupon (4.09%), and the actual portfolio weighted-average recovery rates for all rated notes. "We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our counterparty criteria. "Under our structured finance sovereign risk criteria, we consider that the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "The transaction's legal structure and framework is bankruptcy remote, in line with our legal criteria. "Our credit and cash flow analysis indicates that the available credit enhancement for the class B-R-R and C-R-R notes could withstand stresses commensurate with higher ratings than those assigned. However, as the CLO is still in its reinvestment phase, during which the transaction's credit risk profile could deteriorate, we capped our assigned ratings on these refinanced notes. "Our credit and cash flow analysis indicates that the available credit enhancement for the class A-R-R, D-R-R, and E-R-R notes could withstand stresses commensurate with the assigned ratings. "The class F-R notes' current break-even default rate (BDR) cushion is negative at the 'B-' rating level. Based on the portfolio's actual characteristics and additional overlaying factors, including our long-term corporate default rates and recent economic outlook, we believe this class can sustain a steady-state scenario, in accordance with our criteria." S&P's analysis reflects several factors, including: -- The class F-R notes' available credit enhancement is in the same range as that of other CLOs S&P has rated and that has recently been issued in Europe. -- S&P's BDR at the 'B-' rating level is 16.44%, versus a portfolio default rate of 13.66% if it was to consider a long-term sustainable default rate of 3.2% for a portfolio with a weighted-average life of 4.27 years. -- Whether the tranche is vulnerable to nonpayment in the near future. -- If there is a one-in-two chance for this note to default. -- If S&P envisions this tranche to default in the next 12-18 months. S&P said, "Following this analysis, we consider that the available credit enhancement for the class F-R notes is commensurate with a 'B- (sf)' rating. "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe our ratings are commensurate with the available credit enhancement for the class A-R-R to F-R notes. "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we have also included the sensitivity of the ratings on the class A-R-R to E-R-R notes based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F-R notes." Environmental, social, and governance S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit or limit assets from being related to certain industries. Since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Ratings assigned Replacement Original Notes notes Amount interest interest Credit Class Rating* (mil. EUR) rate § rate enhancement(%) A-R-R AAA (sf) 263.50 Three-month Three-month 37.92 EURIBOR EURIBOR + 1.22% + 1.30% B-R-R AA (sf) 47.80 Three-month Three-month 26.65 EURIBOR EURIBOR + 1.80% + 1.90% C-R-R A (sf) 26.60 Three-month Three-month 20.39 EURIBOR EURIBOR + 2.00% + 2.25% D-R-R BBB- (sf) 27.60 Three-month Three-month 13.88 EURIBOR EURIBOR + 3.05% + 3.40% E-R-R BB- (sf) 19.10 Three-month Three-month 9.38 EURIBOR EURIBOR + 5.50% + 6.25% Rating affirmed Amount Class Rating* (mil. EUR) Notes interest rate§ F-R B- (sf) 12.80 Three-month EURIBOR + 8.41% *The ratings assigned to the class A-R-R, and B-R-R notes address timely interest and ultimate principal payments. The ratings assigned to the class C-R-R, D-R-R, E-R-R, and F-R notes address ultimate interest and principal payments. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. EURIBOR--Euro Interbank Offered Rate. ========= I T A L Y ========= DEDALUS SPA: Fitch Alters Outlook on 'B-' LongTerm IDR to Positive ------------------------------------------------------------------ Fitch Ratings has revised Dedalus SpA's Outlook to Positive from Stable and affirmed its Long-Term Issuer Default Rating (IDR) to at 'B-'. Fitch has also affirmed Dedalus Finance GmbH's EUR1,275 million senior secured term loan B (TLB) at 'B'. The Recovery Rating is 'RR3'. The Positive Outlook reflects gradual deleveraging driven by robust revenue and EBITDA growth, aided by a successful operational turnaround. Fitch expects Dedalus's EBITDA leverage to decline to below 7.5x by end-2026, and to below 6.5x by end-2028, which would be consistent with a 'B' rating. Dedalus benefits from a low churn and a sound industry growth outlook. Key Rating Drivers Improving Leverage: Fitch expects Dedalus to achieve significant deleveraging in 2026, primarily driven by stronger EBITDA generation due to robust revenue growth and profitability improvement, with reduced use of its revolving credit facility (RCF). Fitch forecasts Fitch-defined EBITDA leverage to decline to below 7.5x by end-2026 and further to below 6.5x in 2028, from 8.7x at end-2025. Opportunistic Debt Tap Issues: Dedalus's efforts to issue additional debt may slow down deleveraging and extend the upgrade outlook horizon or lead to the Outlook being revised to Stable. The company upsized its TLB by EUR50 million in a refinancing transaction in June 2025 and had planned to issue an additional EUR33 million in an announced repricing transaction in January 2026 before it decided to cancel it. There is a payment-in kind instrument above the rated group, which creates incentives for upstreaming cash to meet those obligations. AI Integration: Fitch views Dedalus as reasonably resilient to the threat of AI disruption. The company is actively embedding AI capabilities into its products, which ensures that it maintains innovation parity with competition. Dedalus has access to the vast amount of customer data that makes its AI tools better trained for professional use compared with generic AI agents. Healthcare software is highly regulated, mission-critical and increasingly subject to data sovereignty rules, creating high barriers for entry. Successful New Products Roll-Out: Dedalus achieved good adoption of its new products and some important customer wins, such as in the UK with its ORBIS U system, which improves its growth and competitive outlook in key markets. Successful user cases of implementing new products typically significantly facilitate market expansion. Revenue from strategic new products has seen double-digit growth, accounting for an 80% share in order intake in 1Q26. Strong Short-Term Revenue Visibility: Strong growth in order intake of more than 25% year on year in 1Q26 supports its revenue growth expectations in the high single digits for this year. Management estimated that close to 90% of its targeted 2026 revenue was secured with committed orders as of April 2026. Supportive Industry Fundamentals: Dedalus benefits from increasing expenditure on healthcare and rising sector digitalisation in Europe and globally, including through government-sponsored initiatives such as the Hospital Future Act in Germany and 'Segur de la sante' in France. Most industry experts expect at least high single-digit CAGR in global healthcare information systems and mid-to-high single-digit CAGR in pharmacy information systems markets in 2025-2032. Fitch believes at least mid-to-high single-digit revenue growth should be achievable in the short-to- medium term. R&D Stabilisation: Dedalus's profitability and cash flow will benefit from broadly stable research and development (R&D) investments in absolute terms, which may start declining as a percentage of revenue, a key benefit of the company's growing scale. The company has rearranged its product portfolio with a focus on new products and reduced investment in solutions that are approaching their end of life. Fitch expects flat capitalised R&D to be a major contributor to EBITDA margin improvement in 2026. Enduring Customer Relationships: Dedalus benefits from low single-digit customer churn and a high share of recurring revenue (69% in 1Q26), leading to good cash flow visibility and stability. The critical nature of healthcare software products, combined with major barriers to entry including high switching costs, large initial R&D, rigorous medical regulations, and the long-term nature of contracts (three to six years) underpin strong customer-base sustainability. Strong Positions in Fragmented Markets: Dedalus has strong positions in its typically fragmented markets, with its share varying from 20% to 70% across key targeted sub-segments, according to management estimates. Dedalus served 1,848 inpatient hospitals outside the US, placing it as the third-largest electronic health record vendor in this category worldwide in 2024, by KLAS estimates. Dedalus's main competitive advantages are a dedicated focus on the healthcare industry, strong R&D capabilities and a reasonably large size. Ongoing Efficiency Improvement: Dedalus remains focused on improving its cost efficiency, which should contribute to profitability improvement and stronger cash flow in the next two to three years. Wider AI adoption at Dedalus facilitates code writing and customer support while the gradual phase-out of its older products would structurally refocus R&D investments on innovations. Positive Cash Flow: Fitch expects Dedalus's FCF to remain slightly positive, with FCF margins in the low single-digit territory. FCF will be supported by mid-to-high single-digit revenue growth and gradually improving EBITDA profitability, to above 19% by 2029, but also broadly stable capex and slightly declining R&D as a percentage of revenue. Challenges include permanently higher taxes on full utilisation of losses-carry-forward provisions and likely negative working capital movements, reversing strong 2025 inflows. Peer Analysis Dedalus's close Fitch-rated peers include providers of healthcare revenue-cycle-management or other healthcare-IT related software (HCIT), such as Waystar Technologies, Inc. (BB/Stable), Gainwell Acquisition Corp. (B-/Stable) or CompuGroup Medical. Broader peers include Oracle Corporation (BBB/Stable), which also has a HCIT division but is considerably more diversified, and European providers of enterprise resource planning software, such as Unit4 Group Holding B.V. (B/Stable) and TeamSystem S.p.A. (B/Stable). CompuGroup and Dedalus operate in broadly the same European markets and are direct competitors while Waystar and Gainwell operate in the US. Waystar benefits from much higher margins, lower leverage and stronger cash flow generation, resulting in a much higher rating. Gainwell's ratings reflect its high leverage that Fitch expects to remain above 7x. Dedalus, Unit4 and TeamSystem are all controlled by private equity groups, which are opportunistic in the capital allocation priorities of their investee companies. Fitch’s Key Rating-Case Assumptions - High single-digit organic revenue growth in 2026 andmid-single-digit growth in 2027-2029 - Fitch-defined EBITDA margin at 18% in 2026, gradually improving to above 19% in the medium term - Exceptional costs of EUR5 million a year treated as recurring and deducted from EBITDA - Negative cash flow from working capital in 2026-2029 - Capex at slightly below 2% of revenue to 2029 - Capitalised R&D treated as cash expenses and deducted from EBITDA, with R&D costs equal to approximately 7% of revenue - Factoring facility of EUR60 million used and treated as debt - No acquisitions or dividends to 2029 Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bb-', lower), sector characteristics ('bbb+', moderate), market and competitive positioning ('bbb-', moderate), diversification and asset quality ('bb-', lower), company operational characteristics ('bb', moderate), profitability ('b', moderate), financial structure ('ccc+', higher), and financial flexibility ('b+', higher). The quantitative financial subfactors are based on custom CRT financial period parameters: 50% weight for the historical year 2025, 40% for the forecast year 2026 and 10% for the forecast year 2027. B+ to CC considerations apply in its analysis and result in an adjustment of -1 notch. The governance assessment of 'some deficiencies' has no impact. The operating environment assessment of 'a+' has no impact. The SCP is 'b-'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'B-'. Recovery Analysis The recovery analysis assumed that Dedalus would be reorganised as a going concern (GC) in a bankruptcy rather than liquidated. Fitch estimated that its post-restructuring EBITDA would be around EUR140 million. Fitch expects a default would come from a fall in revenue and EBITDA following software problems, unfavourable changes in regulation, reputational damage or intensified competition. Fitch applied an enterprise value (EV) multiple of 6x to the GC EBITDA to calculate a post-reorganisation EV. The multiple is in line with that of other similar software companies that have good pre-dividend FCF, a high share of recurring revenue and low customer churn. Fitch deducted a 10% of administrative claim from the EV to account for bankruptcy and associated costs. Fitch estimated the total amount of secured debt for claims at EUR1,463 million, which includes a EUR1,275 million senior secured TLB, and assumed that Dedalus's equally ranked EUR188 million RCF is fully drawn. Fitch did not include Dedalus's payment-in kind notes in total debt, as they are outside the scope of the restricted group. Fitch treats them as equity, in line with its criteria. Similarly, Fitch does not include factoring facilities in the total claims estimates as Fitch believes the factoring programme will remain available through bankruptcy. Its analysis resulted in a senior secured debt rating of 'B', one notch above the IDR, with a Recovery Rating of 'RR3'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage above 8.5x - Cash from operations (CFO) less capex/gross debt persistently negative - EBITDA interest coverage persistently below 2x - A weakening market position, underlined by slowing revenue growth - Eroding liquidity prompted by continuously weak or negative FCF with the RCF constantly drawn by a large amount Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage below 6.5x - CFO less capex/gross debt trending towards 5% - Continued strong market leadership and sustainably positive FCF generation - EBITDA interest coverage above 2.5x Liquidity and Debt Structure Dedalus had EUR48 million cash on balance sheet at end- 2025, supported by an EUR188 million RCF, of which EUR5 million is reserved for guarantees only. The company's EUR1,275 million TLB facility matures in May 2030, following a refinancing and an EUR50 million tap issue in June 2025. Issuer Profile Dedalus is a leading pan-European provider in a fragmented healthcare software market, formed in May 2020 from the merger of Dedalus's operations in Italy and France and Aceso, a carve-out of the healthcare software business from Agfa-Gevaert with operations in Germany, Austria, Switzerland and France. 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 Dedalus. 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 ----------- ------ -------- ----- Dedalus SpA LT IDR B- Affirmed B- Dedalus Finance GmbH senior secured LT B Affirmed RR3 B =================== L U X E M B O U R G =================== ECARAT DE SA: S&P Assigns Prelim. B- (sf) Rating on F-Dfrd Notes ---------------------------------------------------------------- S&P Global Ratings assigned its preliminary credit rating to the class A and B-Dfrd to F-Dfrd notes issued by ECARAT DE S.A., acting on behalf and for the account of its Compartment Lease 2026-1. At closing, the issuer will also issue unrated asset-backed class G notes. At closing, the issuer will purchase directly from Stellantis Bank S.A., German branch a portfolio of German auto lease receivables and residual value receivables. Stellantis Bank, German branch is the captive finance company for all Stellantis brands in Germany. The transaction securitizes receivables (comprising residual values) arising from auto financial lease contracts of Stellantis group or Leapmotors-branded vehicles granted to German private and commercial lease customers. The transaction will revolve for 12 months, during which the portfolio characteristics might change, within certain documented limits. The portfolio purchase price is calculated on a discounted cash flow basis using a discount rate, which is the actual internal rate of return as applied by the seller to each single lease contract. The vehicles' residual values are securitized. S&P said, "Our preliminary rating on the class A notes addresses the timely payment of interest. Our preliminary ratings on class B-Dfrd to F-Dfrd notes address ultimate payment of interest until they become the most senior class of notes, and timely payment of interest afterward. Any unpaid interest before they become the most senior class of notes are due by legal maturity and we modelled this accordingly. "The class F-Dfrd notes are not able to withstand our stresses at the 'B' rating level. We believe their repayment does not depend on favorable conditions, given that the issuer would be able to meet its obligations under these tranches in a steady state scenario. We therefore assigned our preliminary 'B- (sf)' rating to these notes in line with our criteria. "In our view, the most relevant risk for the transaction is a decline in the vehicles' market value. The portfolio comprises about 71.3% in direct residual values, that can increase up to 75.0% during the revolving period, which are subject to market value decline risk. We have accounted for the additional losses resulting from a market value decline of the underlying vehicles under our ratings scenarios." The transaction will allow pro rata redemption of all classes of notes unless a sequential payment trigger is hit. Pro rata redemption of the junior class of notes would cause the available credit enhancement for the senior noteholders to reduce in absolute terms. The transaction will feature various performance triggers for principal deficiency ledger and cumulative gross ratios, mitigating the risk derived from pro rata amortization. Our cash flow model incorporates those triggers, testing the effect of a change in the type of amortization of the notes. In addition, S&P has run several scenarios to test the effect of a sequential payment trigger being hit at different stages of the life of the transaction. The issuer is a typical Luxembourgian special-purpose entity (SPE) with a standard setup. Sovereign, counterparty, and operational risks do not constrain the preliminary ratings. Ratings Class Rating* Class size (%) A AAA (sf) 70.00 B-Dfrd AA+ (sf) 7.50 C-Dfrd AA (sf) 5.65 D-Dfrd A (sf) 5.15 E-Dfrd BB (sf) 8.10 F-Dfrd B- (sf) 2.60 G NR 1.00 *S&P said, "Our preliminary rating on the class A notes addresses the timely payment of interest and ultimate payment of principal, while our preliminary ratings on the other classes address the ultimate payment of interest until they become the most senior class of notes, and timely payment of interest afterward." Any unpaid interests before they become the most senior class of notes are due by legal maturity. Payment of principal is no later than the legal final maturity date. NR--Not rated. PLT VII FINANCE: Fitch Alters Outlook on B LongTerm IDR to Positive ------------------------------------------------------------------- Fitch Ratings has revised PLT VII Finance S.a r.l.'s (Bite) Outlook to Positive from Stable, while affirming its Long-Term Issuer Default Rating (IDR) at 'B'. Fitch has also affirmed Bite's senior secured notes rating at 'B+'. The Positive Outlook reflects Bite's improving pre-dividend free cash flow (FCF) and retained discretionary capacity to manage its credit profile. The higher FCF reflects receding 5G capex, which alongside its record of maintaining leverage below its stated financial policy, is likely to lift cash flow from operations (CFO) less capex/gross debt to levels consistent with a higher rating. Bite's ratings reflect its established position in the Latvian and Lithuanian telecoms and pay-TV markets, as well as its exposure to the more volatile media segment and leveraged financial structure. Bite's three-mobile operator markets are structurally supportive, which should allow the company to generate high-single digit pre-dividend FCF margins over the next three years. Key Rating Drivers Neutral Impact from Tower Disposal: Bite's operating profile is unaffected by the disposal of its tower assets given their passive nature. Fitch anticipates the impact of the sale to be broadly leverage-neutral with debt reduction and EBITDA growth largely offsetting the impact of increased opex costs. Bite expects to receive EUR480 million proceeds from the disposal and use EUR100 million to repay debt. As a result, Fitch expects Fitch-defined gross leverage of 5.5x in 2026, compared with 5.4x in 2025. This assumes an increase in tower-related opex costs of EUR30 million a year. Unchanged Financial Policy: Bite's 5.0x net leverage target translates into about a 6.0x Fitch-defined metric, which is likely to be above the downgrade threshold of the rating. Fitch expects Bite's shareholders to remain opportunistic in shareholder distributions, while managing leverage on average below their stated financial policy. Fitch forecasts continued shareholder distributions and only organic deleveraging, based on its record. Fitch expects Fitch-defined gross leverage to gradually decrease to 5.0x by 2028 from a 5.5x peak in 2026, barring more aggressive but policy-compliant debt-funded distributions. Positive Pre-Dividend Free Cash Flow: Fitch expects Bite's pre-dividend free cash flow (FCF) margins to fall to the mid-single digits in 2026, due to the initial dilutive impact of the tower transaction, before returning to its historical low-teens by 2029. Bite's EBITDA margins after the transaction of about 29% and a more moderate capex profile should lead to sustained strong cash flow generation, aided by low corporate taxes in the Baltics. 5G Capex Cycle Nearing Completion: Bite has made major progress with its 5G network rollout, with Fitch-defined capex down to 10.4% of revenue in 2025 from a peak 11.4% in 2024. Fitch expects capex to gradually decline to 8% of revenue by 2028, roughly in line with the 2019-2022 average, before Bite rolled out its 5G capex plan. This will lead to improving CFO less capex/debt that is consistent with a higher rating. Established Market Positions: Bite is the third-largest mobile telecom company in Lithuania (close to second) and Latvia. Both are three-operator markets with the same mobile competitors. Fitch expects Bite to maintain its market shares, supported by its large spectrum portfolio, wide network coverage and quality, as well as convergent-type offering. Rational Markets: The markets in Latvia and Lithuania have been rational so far, although receding inflation is likely to reduce pricing flexibility. The small size of the local markets makes them less attractive for virtual operators, with no major mobile virtual network operator at present. This reduces the risk of disruptive competition and supports its expectation of EBITDA margins stabilising at 29% over 2026-2030. Positive Growth Outlook: Fitch expects Bite to continue to benefit from service revenue growth in the low-to-mid single digits, supported by increasing data consumption, including from an expanding fixed-wireless customer base resulting from wider 5G usage. Service revenue rises will be further supported by the strong performance of its fixed broadband and pay-TV operations, following its diversification strategy, with these businesses now contributing to 34% of service revenue, up from less than 20% in 2020. Media More Volatile: Fitch views the media business as intrinsically more volatile, as it is driven by advertising revenue with strong correlation to GDP. Fitch expects this sector to grow in the low single digits, supported by Bite's leading share of viewership in its markets and only limited local language competition. Exposure to higher volatility in the media business is mitigated by the sector's moderate contribution to service revenue at 16% in 2025, a share Fitch expects to be stable over 2026-2030. Low M&A Risk: Fitch believes limited M&A opportunities in the Baltics region diminish the risk of major M&A, even though Bite doubled its revolving credit facility (RCF) to EUR100 million in 2024. Fitch expects shareholder remuneration to be more central to the group's capital allocation than M&A. Peer Analysis Bite has strong positions in its core markets but is smaller in absolute scale than most mobile and telecom peers with 'B' category ratings. Bite benefits from operating in less congested and rational three-operator mobile markets that lack a major mobile virtual network operator presence and bundling competition. Bite generates positive pre-dividend FCF, which is a credit strength, but cable-centric and fixed-line incumbent operators, such as eircom Holdings (Ireland) Limited (B+/Stable) and Virgin Media Ireland Limited (B+/Stable), benefit from more stable customer relationships, higher EBITDA margin and larger interest coverage. Fitch’s Key Rating-Case Assumptions - Low-to-mid single-digit mobile service revenue growth in 2026-2030 - Media revenue to rise 2% in 2026-2030 - Fitch-defined EBITDA margin to stabilise at 29.2% until 2030 - Capex to gradually decline to 8% of revenue by 2030 - Exceptional dividend of EUR405 million in 2026 - FCF fully paid out as dividends thereafter - No M&A Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bb-', Lower), sector characteristics ('bbb', Lower), market and competitive positioning ('bb-', Moderate), diversification and asset quality ('bb', Moderate), company operational characteristics ('bbb', Moderate), profitability ('bbb', Lower), financial structure ('b', Higher), and financial flexibility ('b', Higher). The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the 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 have no impact. The governance assessment of 'good' has no impact. The operating environment assessment of 'bbb' has no impact. The SCP is 'b'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'B'. Recovery Analysis Key Recovery Rating Assumptions - Bite considered a going concern in bankruptcy and the company reorganised rather than liquidated - A 10% administrative claim - Estimate of a post-restructuring going-concern EBITDA of EUR150 million - Enterprise value multiple of 5.0x used to calculate a post-reorganisation valuation - Bite's prior-ranking super senior secured RCF of EUR100 million fully drawn on default - Its analysis results in a 'B+' senior secured rating for the company's EUR1,120 million senior secured debt with a Recovery Rating of 'RR3' with further headroom created from the expected EUR100 million debt repayment RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - CFO less capex/debt below 2% - A sharp reduction in pre-dividend FCF generation, driven by competitive or regulatory challenges - Fitch-defined EBITDA leverage (gross debt/EBITDA) persistently above 6.0x Factors that Could, Individuallyor Collectively, Lead to Positive Rating Action/Upgrade - CFO less capex/debt above 4% - Fitch-defined EBITDA leverage sustained below 5.0x and a firm commitment to manage it below this level - Strong pre-dividend FCF generation, while maintaining competitive positions in Latvia and Lithuania Liquidity and Debt Structure Bite's cash on balance sheet at end-2025 was EUR23 million. Fitch expects the company to be able to maintain its cash balance over 2026-2030. It also has access to an untapped EUR100 million super-senior RCF maturing in 2030. Bite's next maturity will be 2031 when its EUR1,120 million senior secured debt matures (excluding the expected EUR100 million debt reduction). Issuer Profile Bite is a mobile-centric operator in Latvia and Lithuania, with considerable broadband and pay-TV segments and substantial advertising-based free-to-air TV revenue across the Baltics. 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 PLT VII Finance S.a r.l.. 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 ----------- ------ -------- ----- PLT VII Finance S.a r.l. LT IDR B Affirmed B senior secured LT B+ Affirmed RR3 B+ ===================== N E T H E R L A N D S ===================== AMG CRITICAL: Fitch Affirms 'BB-' LongTerm IDR, Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed AMG Critical Materials N.V. (AMG) and AMG Vanadium LLC's Long-Term Issuer Default Ratings (IDRs) at 'BB-'. Fitch has also affirmed the company's senior secured revolving credit facility and term loan at 'BB+' with a Recovery Rating of 'RR2' and unsecured notes at 'BB-'/'RR4'. The Rating Outlook is Stable. The 'BB-' IDR reflects AMG's advantaged cost positions in vanadium and lithium and its leading market position in advanced metallurgy & engineering. These strengths are offset by a heightened degree of cash flow risk due to its commodity price exposure. The Stable Outlook reflects Fitch's expectation that relatively low capex outlays will allow the company to maintain comfortable liquidity while lithium and vanadium prices remain pressured, before EBITDA leverage falls below 3.5x in 2027. Fitch expects that EBITDA leverage will remain durably below 3.5x, which could lead to positive rating momentum. Key Rating Drivers Volatile Commodity Pricing Dynamics: In 2024, lithium prices fell 65% and ferrovanadium prices fell 23%, which highlights the cash flow risk inherent in AMG's commodity price exposure. Lithium overcapacity keeps prices low. Fitch expects spot prices will remain below $15/kg in the near to medium term, although long-term demand for battery-grade lithium remains. Demand for vanadium, which steelmakers primarily use as an alloy, depends on global steel infrastructure spending and demand for titanium and chrome alloys. However, AMG's vanadium contracts partly mitigate cash flow risk. The company collects a tipping fee and returns part of the sales price to suppliers. Measured Strategic Investment Policy: AMG has completed a period of significant growth spending, including Europe's first lithium hydroxide refinery in Bitterfeld, Germany. The facility is in the final stages of qualification, and AMG expects to ramp-up in the second half of 2026. Fitch believes the company will take a conservative approach to capital allocation, particularly with respect to lithium. Further large-scale investment is unlikely while prices remain durably low. Fitch expects AMG to follow a measured capital allocation strategy over the medium-to-longer-term. The company will likely focus on growth capex and opportunistic bolt-on M&A that does not require a significant amount of additional debt. Completion of the Bitterfeld plant and the lithium concentrate expansion in Brazil should improve FCF generation over the rating horizon. Leading U.S. Vanadium Producer: AMG is the sole ferrovanadium producer and recycler in the U.S., which insulates it from tariff pressures. AMG's Cambridge II expansion project in Ohio doubled its spent recycling capacity to 60,000 tons annually. AMG processes a by-product of spent catalyst from oil refining into ferrovanadium and receives a tipping fee from oil refiners for disposing of the hazardous waste materials. Steel producers buy the ferrovanadium to produce high strength steel for various end-uses. AMG competes primarily with imports, but its increased processing capabilities, low-cost operations and proximity to steel producers strengthen its market position. Long-Term Outlook Intact: Fitch views AMG's long-term strategy of becoming Europe's leading vertically integrated producer of battery-grade lithium hydroxide favorably. The lithium industry is consolidated and has high barriers to entry, including technical knowledge and raw-material access. Under this model, AMG could convert Brazilian spodumene into technical grade lithium hydroxide before producing battery grade lithium hydroxide through its Bitterfeld operations. However, with near-term cash flows and earnings pressured by a challenging commodity price environment, Fitch does not anticipate a material increase in organic or inorganic growth spending in the near term. Peer Analysis AMG is considerably smaller than H.B. Fuller (BB/Stable), Kronos Worldwide (B+/Stable), and market leading lithium producer Albemarle Corporation (BBB-/Stable). However, greater diversification into businesses other than lithium and battery storage leave it somewhat better equipped to absorb the volatility in lithium prices than Albemarle. Kronos is similarly exposed to commodity pricing, given its TiO2 production but lacks AMG's modest diversification into other business lines and its growth potential. W. R. Grace Holdings LLC (B/Stable) has used a similar operating and capital deployment strategy to AMG. WR Grace generates much of its cash through its catalyst business and uses the proceeds to fund the buildout of certain growth segments. However, AMG tends to operate with much lower leverage. The company's lack of imminent capex needs will bolster cash generation in the near term, but it will rely on strong continued growth in EV demand to return to a position of strong FCF generation over the long-term. Fitch’s Key Rating-Case Assumptions Fitch's Key Assumptions Within Its Rating Case for the Issuer - Lithium prices slightly recover 2026, with steeper recovery in 2027 and beyond as demand growth overtakes supply; - Revenue growth in the near term driven by scaling of Bitterfeld operations & improvements in lithium pricing in out years; - Limited growth spending until lithium prices begin to materially rebound in 2027; - No material debt repayments shown, though the company maintains the financial flexibility to do so. Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bbb', Lower), sector characteristics ('bbb', Moderate), market and competitive positioning ('b+', Higher), diversification and asset quality ('bb', Moderate), company operational characteristics ('bb+', Moderate), profitability ('bb+', Moderate), financial structure ('bb-', Higher), and financial flexibility ('bb+', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 5% weight for the historical year 2025, 5% for the forecast year 2026, 5% for the forecast year 2027, 40% for the forecast year 2028 and 45% for the forecast year 2029. The governance assessment of 'good' has no impact. The operating environment assessment of 'a' has no impact. The SCP is 'bb-'. To derive the Long-Term IDR: Application of Fitch's Parent Subsidiary Linkage Rating Criteria results in a(n) same credit profile for both parent and subsidiary approach. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to a Negative Rating Action/Downgrade - EBITDA leverage durably above 4.5x; - Slower-than-expected growth in lithium demand related to a secular shift in consumer preferences for electric vehicles; - Durably negative FCF generation, potentially due to more aggressive than anticipated growth spending. Developments That May, Individually or Collectively, Lead to a Positive Rating Action/Upgrade - Demonstrated commitment to operating with EBITDA leverage sustained below 3.5x; - Increased vertical integration and overall improvement in cost structure, leading to lower overall earnings volatility. Liquidity and Debt Structure As of Dec. 31, 2025, AMG had cash and cash equivalents of approximately $289 million and full availability under its $200 million revolving credit facility. AMG's revolver has a net debt/EBITDA covenant maximum of 3.5x. Issuer Profile AMG is a global critical raw materials company that processes specialty metals and mineral products for the transportation, infrastructure, energy and specialty metals and chemicals markets. AMG operates production facilities inNorth America, EMEA, South America and Asia. 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 AMG's 2025 revenue-weighted Climate.VS for 2035 is 34 out of 100, suggesting low exposure to climate related risks in that year. For further information on how Fitch perceives climate-related risks in the chemicals sector, please refer to Oil & Gas and Chemicals - Long-Term Climate Vulnerability Signals Update. 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 ----------- ------ -------- ----- AMG Critical Materials N.V. LT IDR BB- Affirmed BB- senior secured LT BB+ Affirmed RR2 BB+ AMG Vanadium LLC LT IDR BB- Affirmed BB- senior unsecured LT BB- Affirmed RR4 BB- DOMI 2024-1: S&P Affirms 'BB+(sf)' Ratings on Class E Notes ----------------------------------------------------------- S&P Global Ratings raised its credit ratings on Domi 2024-1 B.V.'s class B-Dfrd notes to 'AA+ (sf)' from 'AA (sf)', C-Dfrd notes to 'A+ (sf)' from 'A (sf)', and X-Dfrd notes to 'BBB+ (sf)' from 'BB (sf)'. S&P also affirmed its 'AAA (sf),' 'BBB+ (sf)', and 'BB+ (sf)' ratings on the class A, D-Dfrd, and E-Dfrd notes, respectively. S&P said, "The rating actions follow our full analysis of the most recent information received and reflect the transaction's current structural features. Our review also reflects the application of our relevant criteria." The performance of the loans in the collateral pool has been strong since closing. As of the March 2026 interest payment date arrears have remained low and the collateral pool has accumulated no repossessions or losses. S&P said, "We lowered our originator adjustment to account for Domivest B.V.'s (the originator) long track record and status as a major lender in the Dutch BTL market, in line with our updated assessment in the recent Domi 2026-1 B.V. transaction. "Our updated credit analysis led to a marginal decrease in the weighted-average foreclosure frequency (WAFF) at all rating levels along with a decrease in the weighted-average loss severity (WALS). Since our closing analysis, house prices have generally increased in the Netherlands, translating in lower indexed current loan-to-value ratios in the pool, which ultimately contributes to a lower WALS across all rating levels and, to some extent, a lower WAFF." Table 1 WAFF and WALS levels Rating level WAFF WALS AAA 14.94% 24.03% AA 9.96% 19.08% A 7.40% 11.09% BBB 4.98% 7.14% BB 2.42% 4.78% B 1.78% 2.96% S&P's operational, legal, and counterparty risk analyses remain unchanged since closing, and does not cap the ratings. The collateral pool mainly comprises interest-only loans, resulting in slow deleveraging and increased credit enhancement, especially for the subordinated classes. Table 2 Credit enhancement levels Current analysis CE (%) CE as of closing (%) A 10.34 7.50 B-Dfrd 4.82 3.50 C-Dfrd 2.06 1.49 D-Dfrd 0.69 0.50 E-Dfrd 0.00 0.00 X-Dfrd N/A N/A CE--Credit enhancement. N/A--Not applicable. A reserve fund covers shortfalls in senior fees and interest on the class A notes at all times, and on the class B-Dfrd to D-Dfrd notes if their respective PDL balances do not exceed 10%. It does not provide credit enhancement to the notes as it is not available immediately to cover losses. The class E-Dfrd notes do not benefit from the reserve fund or from the principal borrowing mechanism, making them more exposed to liquidity shocks, especially when they become the senior-most outstanding class and timely interest payments are due. This tranche also has no credit enhancement. S&P said, "We considered these features in our analysis and although the notes can withstand our stresses at higher rating levels, we affirmed our 'BB+ (sf)' rating." The class C-Dfrd and D-Dfrd notes could withstand higher stresses than those commensurate with the assigned ratings. However, S&P considered their position in the priority of payments and the marginal build-up of credit enhancement since closing and limited our upgrade of the class C-Dfrd notes by one notch--to 'A+ (sf)' from 'A (sf)'--and affirmed our 'BBB+ (sf)' rating on the class D-Dfrd notes. As most loans in the pool are to reset their interest rates in the next four years meaning some borrowers may refinance elsewhere, prepayments may increase, reducing excess spread. S&P said, "We considered the higher prepayment scenario in our cash flow analysis. As this scenario assumes the class X-Dfrd notes will amortize on the upcoming interest payment dates, we raised our rating on this tranche to 'BBB+ (sf)' from 'BB (sf)'." Macroeconomic forecasts and forward-looking analysis S&P said, "In our view, the ability of borrowers to repay their mortgage loans will be highly correlated to macroeconomic conditions, particularly the unemployment rate, consumer price inflation, and interest rates. Our forecasts for Dutch unemployment for 2026 and 2027 are 4.1%. Additionally, our forecasts for Dutch real GDP growth for 2026 and 2027 are 1.3% for both years. "Furthermore, a decline in house prices typically affects the level of realized recoveries. For the Netherlands, we expect nominal house prices to grow by 5.3% in 2026, 4.5% in 2027, and 5% in 2028. "We therefore ran additional scenarios with increased defaults by up to 1.30x the standard WAFF assumption. The results of our sensitivity analysis indicate a deterioration of no more than one category, suggesting that the assigned ratings remain robust under these stresses." Domi 2024-1 B.V. is a Dutch RMBS transaction that closed in June 2024, and securitizes a pool of BTL first-ranking mortgages in the Netherlands. E-MAC NL 2004-II: Fitch Affirms 'CCCsf' Rating on Class E Notes --------------------------------------------------------------- Fitch Ratings has upgraded four tranches of E-MAC NL 2004-II B.V. (E-MAC 2004-II) and three tranches of E-MAC NL 2005-I B.V. (E-MAC 2005-I). The remaining tranches of both transactions have been affirmed. The upgrades reflect the rating cap linked to the collection account bank's deposit rating. Entity/Debt Rating Prior ----------- ------ ----- E-MAC NL 2005-I B.V. Class A XS0216513118 LT AA-sf Upgrade A+sf Class B XS0216513548 LT AA-sf Upgrade A+sf Class C XS0216513977 LT AA-sf Upgrade A+sf Class D XS0216514199 LT A+sf Affirmed A+sf E-MAC NL 2004-II B.V. Class A XS0207208165 LT AA-sf Upgrade A+sf Class B XS0207209569 LT AA-sf Upgrade A+sf Class C XS0207210906 LT AA-sf Upgrade A+sf Class D XS0207211037 LT AA-sf Upgrade A+sf Class E XS0207264077 LT CCCsf Affirmed CCCsf Transaction Summary E-MAC is a special-purpose company incorporated under the laws of the Netherlands with limited liability and registered on the Commercial Register of the Chamber of Commerce of Amsterdam. Its shares are owned by Stichting E-MAC NL Holding, established under the laws of the Netherlands as a foundation. At closing, the issuer acquired a portfolio of residential mortgages from the seller that forms the collateral for the notes. The portfolio consists of first-ranking or first- and sequentially lower-ranking fixed- and variable-rate mortgages secured over residential properties located in the Netherlands. KEY RATING DRIVERS No Replacement Language Caps Rating: Fitch has capped the ratings of E-MAC 2004-II and E-MAC 2005-I notes due to the lack of replacement language for the collection account bank. Fitch has capped the notes' rating at ABN Amro Bank N.V.'s deposit rating, as commingling losses, combined with pro-rata payments, could lead to losses for all notes. The upgrades of E-MAC 2004-II 's class A to D notes and E-MAC 2005-I's class A to C notes follow the upgrade of ABN AMRO Bank N.V.'s deposit rating to 'AA-' from 'A+' on 12 May 2026. E-MAC 2004-II's class E notes are excess spread notes with redemption ranking below the payment of extension margins on collateralised notes. Due to unpaid and accruing extension margin amounts, repayment of the class E notes is unlikely, so Fitch has affirmed the notes at 'CCCsf'. Fitch has affirmed E-MAC 2005-I's class D notes at 'A+sf' due to the tail risk resulting from high interest-only loans concentration and the notes junior ranking in the capital structure. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Asset performance deterioration far beyond its current expectations due to a rise again in cost of living and higher interest rates. - Servicing discontinuity stretching into a period where the issuers' payment obligations are no longer covered by the reserves - A downgrade of the collection account bank could result in a downgrade of the notes 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 credit enhancement and potential upgrades. - Due to the lack of a hard switch-back to sequential amortisation, an increase in delinquencies and losses could also be beneficial to the senior notes, as this would cause the transaction to switch to sequential amortisation and increase credit enhancement for those notes. - An upgrade of the collection account bank could result in upgrades of the notes. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pools and the transactions. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Fitch did not undertake a review of the information provided about the underlying asset pools ahead of the transaction's E-MAC NL 2004-II B.V., E-MAC NL 2005-I B.V. initial closing. The subsequent performance of the transactions over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. =========== P O L A N D =========== CYFROWY POLSAT: Fitch Affirms 'BB' LongTerm IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed Cyfrowy Polsat S.A.'s Long-Term Issuer Default Rating (IDR) at 'BB'. The Outlook is Stable. The affirmation reflects the company's stable telecommunications, media and technology (TMT) operations in Poland, which generate the majority of EBITDA. Polsat's asset-light and technology-agnostic approach to connectivity and converged services allows it to benefit from increasing availability of fibre connectivity from wholesale providers. This preserves free cash flow (FCF) in exchange for narrower margins due to higher wholesale access costs. The company's strong media content and broad mobile and fixed connectivity services support its bundling strategy, driving customer convergence and average revenue per user (ARPU) growth. Polsat's rating is constrained by the high operating cost base, which weighs on the TMT margin. Combined with cash flow volatility, this keeps (cash flow from operation (CFO) - capex)/debt below the threshold for the rating in the short to medium term, despite its expectation of declining capital intensity and interest expenses. Key Rating Drivers Leverage to Improve Gradually: Fitch expects Fitch-defined net leverage under its base case to gradually decline towards 3.6x by end-2028 - the middle of the rating sensitivity range - following a modest increase to 4.0x in 2026, from 3.9x in 2025. The improvement should be driven by pre-dividend FCF generation from lower interest payments, reduced capex in the renewable-energy segment and no spectrum payments until 2029, despite steady EBITDA over the period. Fitch expects management to prioritise deleveraging over the coming years. Fitch will monitor closely any strategy updates announced by the new management and its execution. CFO Less Capex-to-Debt Remains Constrained: The rating is constrained by the group's relatively higher operating cost base in TMT compared with peers, which weighs on margins, and by cash flow volatility from working capital swings. Both limit improvement in (CFO-capex)/debt. Despite its expectation of lower capital intensity and interest expense, the metric is unlikely to improve to a level commensurate with the rating in the short to medium term. Flat TMT Margin: Fitch forecasts the TMT EBITDA margin, based on reported performance in Polsat's business-to-consumer, business-to-business and media segments, to remain at around 21% in 2026 and to stay broadly flat through to 2029. Margin pressure reflects network-related costs from investments that started in 2025 and are likely to continue until 2029 as well as a higher operating cost base following double-digit inflation in 2022 and 2023. Fitch expects this pressure to be partly offset by ARPU growth and continued cost control. Renewables Build-Out Largely Complete: Polsat has completed most of its renewable-energy segment build-out, with only around PLN200 million of capex remaining in 2026. The company has shifted its strategy towards more efficient wind farms and retreated from some photovoltaic projects. This cut planned capex by around PLN1.1 billion, from the initial PLN5.0 billion. However, persistently low energy prices have led Polsat to lower its EBITDA target for the segment to PLN400 million, from PLN500 million, which slightly slows the pace of deleveraging. Past Peak Investment Phase: Fitch expects capex to increasingly focus on TMT maintenance, with minimal remaining spending in renewables. The largely complete renewables build-out limits the need for market access before meaningful debt maturities arise in 2028. Fitch views M&A as opportunistic and focused on operational fit, with potential acquisitions targeting small fibre operators or operating wind and solar assets. Polsat is likely to prioritise deleveraging and new ventures over dividend distributions, with none assumed before 2028 in its base case. Bundling Drives ARPU Growth: Fitch expects Polsat to continue growing ARPU in Poland's competitive TMT market through efficient service bundling and by migrating customers to higher tariffs at contract renewal. Revenue-generating units per customer reached 2.43 at end-1Q26, from 2.27 in 1Q24, while ARPU increased to PLN82.2, from PLN74.6. There is still scope for further price increases, as mobile and broadband services in Poland are among the cheapest in the EU. Interest Cover to Rebound: Fitch expects lower interest rates and debt repayment to lift EBITDA interest coverage above the 3.0x threshold for Polsat's 'BB' rating in 2026, after further pressure in 2025. Interest payments should fall to below PLN900 million in 2026-2028. While interest costs have historically weighed on FCF, they have not compromised liquidity, which Fitch views as satisfactory. Longer-Term TMT Margin Uncertainty: The rollout of fibre networks and continued development of internet protocol television create long-term uncertainty for Polsat's TMT margin. Greater adoption of converged offers over fibre could erode Polsat's market position and increase wholesale costs, given its large direct-to-home subscriber base. However, the near-to-medium term impact should remain limited, as around 40% of Poland's population lives in less densely populated rural areas, where fibre deployment is progressing more slowly. Real Estate Dilutes Operating Profile: Fitch sees Polsat's real-estate business as more opportunistic than the energy segment. However, both dilute the operating profile of its core TMT business through potentially higher working capital needs as well as greater FCF and earnings volatility. Any decision to develop office space may require extra external funding, further pressuring the pace of deleveraging. Fitch does not include any additional real-estate funding in its base case, but would tighten the leverage threshold if the company continues to expand into riskier business segments. Peer Analysis Fitch regards Polsat's fully integrated TMT profile as a distinguishing factor within its peer group of single-market European telecom operators with a partial asset-light approach. Polsat's volatile and less profitable media and advertising segment constrains its margins below those of lower or similarly rated peers, such as The Sunrise Holding Group (BB-/Positive), Telenet Group Holding N.V (BB-/Negative) and VodafoneZiggo Group B.V. (B+/Stable), despite Sunrise and Telenet having comparable revenue. Polsat's EBITDA net leverage is significantly above that of higher-rated peers, such as Royal KPN N.V. (BBB/Stable), Telefonica Deutschland Holding AG (BBB/Stable) and NOS, S.G.P.S., S.A. (BBB/Stable). While Polsat's leverage is likely to stay at around current levels, it should remain below that of the 'BB-' rated peers. Fitch’s Key Rating-Case Assumptions - Revenue to increase to PLN14.6 billion in 2026 and rise by 0.3%-1.8% annually over 2027-2029. Fitch conservatively assumes minor TMT segment revenue growth on higher convergence-driven ARPU, offset by market competition. - Fitch-defined EBITDA margin of around 20% in 2025-2029, driven by network upgrade investments and the cumulative impact of inflation from 2023-2024. FTE reductions and ad hoc cost-cutting initiatives may alleviate some margin pressure in the short to mid term. - Capex, excluding spectrum payments, at 9% of revenue in 2026, easing to 8% in 2027-2029, as investments in renewable energy soften. Fitch notes Polsat paid PLN590 million 900MHz spectrum renewal in January 2026. Fitch includes real-estate segment investments in working capital. - Declining interest payments, reflecting lower Polish interest rates, improving EBITDA interest coverage to above 3.0x from 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', Moderate), sector characteristics ('bbb', Lower), market and competitive positioning ('bbb-', Higher), diversification and asset quality ('bb+', Moderate), company operational characteristics ('bb+', Moderate), profitability ('bb-', Higher), financial structure ('bb-', Higher), and financial flexibility ('bb', Moderate). The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical year 2025, 40% for the forecast year 2026 and 40% for the forecast year 2027. The governance assessment of 'good' has no impact. The operating environment assessment of 'bbb+' has no impact. The SCP is 'bb'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'BB'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade: - Fitch-defined EBITDA net leverage above 4.2x for a sustained period. - EBITDA interest coverage falling below 3.0x for a sustained period. - CFO less capex/debt below 7% for a sustained period. - A significant shift in the business mix towards riskier operating segments, such as real estate. - Major operational, execution, regulatory or financial risks emerging from the development of the renewable energy and real-estate segments; for example, investment or debt in these segments significantly exceeding its expectations or renewable energy significantly underperforming its EBITDA synergy forecasts. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade: The company is currently reviewing its strategy. Positive rating action is unlikely over the medium term if the company undertakes new capital-intensive projects in renewables, real estate or other areas, particularly if accompanied by a looser financial policy. However, Fitch could consider positive rating action if: - Fitch-defined EBITDA net leverage moves below 3.3x on a sustained basis. - FCF returns to positive levels. - CFO less capex/debt rises to above 9% on a sustained basis. - EBITDA interest coverage trends above 4.0x on a sustained basis. Liquidity and Debt Structure Polsat had PLN2.2 billion of cash at end-1Q26, supported by a fully available PLN1 billion revolving credit facility maturing in April 2028. The group has debt maturity peaks in 2028 and 2030. Remaining bonds total PLN3.9 billion and are due in 2030. Remaining term loan exposure comprises a PLN6.3 billion term loan A and euro-denominated EUR506 million term loan B, both maturing in 2028. Term loan A instalments amount to PLN718 million to be repaid in 2026 and PLN830 million in 2027. Project finance debt maturities are spread across 2026-2038. Issuer Profile Polsat is a fully converged TMT company operating in Poland. Its strategy includes developing two additional business segments, renewable energy and real estate. 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 Polsat. 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 ----------- ------ ----- Cyfrowy Polsat S.A. LT IDR BB Affirmed BB =========== R U S S I A =========== BAKAI BANK: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable ----------------------------------------------------------- Fitch Ratings has affirmed Kyrgyzstan-based Bakai Bank OJSC's Long-Term Issuer Default Ratings (IDRs) at 'B-' with Stable Outlooks. Fitch also affirmed the bank's Viability Rating (VR) at 'b-' and Government Support Rating (GSR) at 'no support'. Key Rating Drivers Bakai's 'B-' Long-Term IDRs are driven by the bank's intrinsic creditworthiness, as captured by its 'b-' VR. The bank's VR reflects its exposure to the volatile and structurally weak Kyrgyz economy, high risk appetite and dollarisation and vulnerable loan quality. It also considers the bank's reasonable market shares, good profitability and adequate capital and liquidity buffers. Strong Economic Growth; Structural Weaknesses: Kyrgyzstan's GDP growth averaged a high 10% a year in 2022-2025, driven by booming trade and investments in construction. Fitch expects growth to slow to 6% in 2026. High dependence on external trade with Russia exposes local entities to the risk of secondary sanctions, while governance deficiencies and regulatory gaps add to the structural weaknesses of the domestic operating environment. Notable Franchise: Bakai is the fourth-largest bank in Kyrgyzstan, with a 9% share of sector assets and 11% share of sector deposits at end-1Q26. It is privately owned and designated as a domestic systemically important bank. Bakai focuses mostly on large private corporates and SMEs (end-2025: 71% of gross loans), but also expands into retail lending to diversify. Rapid Loan Growth; Currency Risk: Loan expansion was aggressive in 2022-2024, with a CAGR of 38%, outpacing the sector's 29%. In 2025, growth accelerated to 54%, driven primarily by the corporate and SME segments, but Fitch expects it to moderate to about 25% in 2026. Net loans were only 41% of assets at end-2025, with the remainder mostly held in liquid instruments. The bank is exposed to currency risk due to the high dollarisation of its loans and deposits at 34% and 55%, respectively, at end-2025, although its open foreign-currency position was limited at end-2025. Vulnerable Loan Quality: Bakai's Stage 3 loans ratio fell to 3.7% at end-2025 (vs 6.8% at end-2024), largely supported by strong loan growth. The Stage 2 loans ratio was a low 0.4% at end-2025. The total reserve coverage of impaired loans remained broadly stable at 64% at end-2025 (vs 68% at end-2024). Fitch expects Bakai's loan quality to be volatile, with the impaired loans ratio rising to 5% in 2026-2027, driven by the seasoning of previously issued consumer and SME loans. Moderating Profitability: Bakai's performance is underpinned by wide margins (2025: 10.7%) and substantial non-interest income (57% of total operating income), mainly FX trading gains. Weaker operating efficiency led to a decline in pre-impairment profit/average loans to 10% in 2025 (vs 15% in 2024). Operating profit benefited from loan recoveries but fell to a still robust 5.2% of risk-weighted assets (RWAs) in 2025 (6.7% in 2024). Fitch expects it to moderate further to about 4% in 2026-2027, due to normalised FX gains and a larger cost base. Reasonable Capital Buffer: Bakai's Fitch Core Capital (FCC) ratio declined to 18.1% at end-2025 from 19.1% at end-2024, driven by a high 30% RWA growth. At end-1Q26, the bank's regulatory total capital ratio was 15.7% (vs 16.2% at end-2024), which provides an adequate buffer above its 14% regulatory threshold. Fitch expects the bank's FCC ratio to be stable in 2026, with loan expansion offset by internal-capital generation. Deposit Growth; Good Liquidity: Bakai's strong 55% CAGR in the deposit base over 2021-2025 underpins the low loans-to-deposits ratio of 53% at end-2025 (vs 89% at end-2021). Notable contributions came from retail demand deposits and corporate current accounts. The bank's reliance on non-resident deposits was sizeable at 40% of total deposits at end-2025, exceeding the sector-average of 11%. Wholesale funding equalled a modest 5.6% of liabilities at end-2025, while the liquidity buffer was large and covered 49% of customer deposits. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A downgrade of Bakai's Long-Term IDRs and VR could result from asset-quality deterioration translating into loss-making performance and causing the FCC ratio to fall below 10%. Liquidity shortages arising from large deposit outflows could also be credit negative. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of Bakai's Long-Term IDRs and VR would require material improvements in the Kyrgyz operating environment, with the bank maintaining a stable business model and financial profile. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS The bank's 'B' Short-Term IDRs are the only possible option mapping to the 'B-' Long-Term IDRs. Bakai's GSR of 'no support' reflects its private ownership and Fitch's concerns regarding the timeliness of government support that could be provided to banks in Kyrgyzstan, in case of need. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES The bank's Short-Term IDRs are sensitive to changes in its Long-Term IDRs. Upside to the bank's GSR is limited unless there is a record of timely and sufficient capital support being provided to banks. VR ADJUSTMENTS The earnings & profitability score of 'b' is below the 'bb' category implied score due to the following adjustment reason: earnings stability (negative). 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 ----------- ------ ----- Bakai Bank OJSC LT IDR B- Affirmed B- ST IDR B Affirmed B LC LT IDR B- Affirmed B- LC ST IDR B Affirmed B Viability b- Affirmed b- Government Support ns Affirmed ns ELDIK BANK: Fitch Affirms 'B' LongTerm IDRs, Outlook Stable ----------------------------------------------------------- Fitch Ratings has affirmed Kyrgyzstan-based Open joint-stock company Eldik Bank's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'B' with Stable Outlooks. Fitch has also affirmed the bank's Viability Rating (VR) at 'b-' and its Government Support Rating (GSR) at 'b'. Key Rating Drivers Eldik's Long-Term IDRs are equalised with Kyrgyzstan's sovereign ratings, as reflected by the bank's 'b' GSR. The Stable Outlooks on Long-Term IDRs mirror those of sovereign ratings. The bank's 'b-' VR reflects its exposure to the weak Kyrgyz economy, high risk appetite and medium-term loan quality risks. Its assessment also captures deficiencies in the bank's audited financial reporting, as underscored in the initial recognition of long-term, low-yielding sovereign bonds purchased in 2025 at nominal value. It also factors in strong government influence over the bank's strategy and operations. These weaknesses are balanced by its strong domestic franchise and a record of high capitalisation and profitability. IDRs Equalised with Sovereign: Its view on state support considers Eldik's full and strategic government ownership, systemically important status, and a record of capital support from the state. Fitch believes the cost of potential support would be manageable for the sovereign. Strong Economic Growth; Structural Weaknesses: Kyrgyzstan's GDP growth averaged a high 10% a year in 2022-2025, driven by booming trade and investments in construction. Fitch expects growth to slow to 6% in 2026. High dependence on external trade with Russia exposes domestic companies to the risk of secondary sanctions, while governance deficiencies and regulatory gaps add to the structural weaknesses of the domestic operating environment. Strong Franchise; Corporate Focus: Eldik is the largest bank in Kyrgyzstan, with 18% of sector assets at end-1Q26. It benefits from close links to the sovereign, servicing state-owned entities and government bodies. The bank focuses on corporate and SME customers (end-2025: 68% of gross loans) but also develops retail lending (32%) and provides state-subsidised loans. Rapid Growth; Unseasoned Loan Book: Eldik's loan growth averaged 43% in 2023-2025, above the sector average of 36%. Fitch expects it to remain high at about 50% in 2026, led by large corporate and SME lending. This growth pace exposes loan book to seasoning risks, given the bank's evolving risk management framework. Credit risks are also under pressure from notable loan dollarisation (end-2025: 21% of gross loans). Medium-Term Loan Quality Risks: The asset structure is robust, with net loans equalling just 24% of assets at end-2025. However, 23% of assets comprised sovereign bonds purchased in 2025 and recognised at nominal value, while Fitch estimates their fair value to be around half of that amount. The impaired loans ratio decreased to a low 1.9% at end-2025 (end-2024: 5.4%), due to rapid loan growth and recoveries, while total reserve coverage ratio was sound at 88%. Fitch expects the impaired loan ratio to increase to about 3% in 2026-2027, due to loan seasoning. Robust Profitability; Moderation Expected: Eldik's margins narrowed to 5.2% in 2025 (2024: 8.6%), due to strong asset growth, and Fitch believes they will remain under pressure in 2026-2027 from higher funding costs. Combined with lower FX gains, this led to a decline in the operating profit to a still high 4.8% of risk-weighted assets (RWAs) in 2025 (2024: 9.9%). Fitch expects core profitability to normalise at 4% in 2026-2027, due to moderating non-interest income and larger credit losses, while remaining above historical averages. Capitalisation to Decline: In 2025, Eldik received a large state capital injection of KGS64 billion. As a result, the bank's Fitch Core Capital (FCC) ratio surged to 73% at end-2025 (end-2024: 28%). If the sovereign bonds purchased in 2025 were recognised at fair value, Fitch estimates the ratio would be about 47%, which Fitch still views as robust. Fitch expects the FCC ratio to reduce to about 60% by end-2026, due to strong RWA growth, while dividend payouts should be modest. Deposit Funding; Adequate Liquidity: The deposit base (end-2025: 90% of liabilities) more than doubled in 2025, driven by inflows from state-related entities, and included mostly low-cost current accounts. The liquidity buffer, adjusted for the fair value of sovereign bonds, covered a high 72% of customer deposits at end-2025. Fitch expects the loans/deposits ratio to rise in 2026-2027 but remain below 100% (end-2025: 41%), given the bank's growth targets and USD500 million Eurobonds issued in April 2026. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Eldik's GSR and Long-Term IDRs would be downgraded if Kyrgyzstan's sovereign ratings are downgraded. Fitch could also downgrade the IDRs and notch them off the sovereign ratings if Fitch believes that the government's propensity to support the bank has reduced due to, for example, a privatisation of Eldik, insufficient state support or a delay to such support. The VR could be downgraded if Eldik's asset quality sharply deteriorates, translating into large losses and eroding capital, with the adjusted FCC ratio falling below 10%, unless it is compensated for by new equity injections from the state. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Eldik's Long-Term IDRs would be upgraded, following an upgrade of Kyrgyzstan's sovereign ratings. A VR upgrade would require a stronger business profile, supported by continued franchise expansion and improved quality of audited financial reporting. Material improvements in the operating environment for Kyrgyz banks, coupled with Eldik maintaining stable financial metrics, could also be positive for the rating. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS The bank's 'B' Short-Term IDRs are the only possible option mapping to the Long-Term 'B' IDR category. Eldik's ex-government support (xgs) ratings exclude assumptions of extraordinary government support. The Long-Term IDRs (xgs) are equalised with the bank's VR. The Short-Term IDRs (xgs) are mapped to the bank's Long-Term IDRs (xgs). Fitch rates Eldik's USD500 million senior unsecured notes in line with its 'B' Long-Term Foreign-Currency IDR, as a default on these obligations would be deemed a default of the bank, according to Fitch's rating definitions. The recovery prospects for the notes are average, as reflected in their Recovery Rating of 'RR4'. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES The bank's Short-Term IDRs are sensitive to changes in its Long-Term IDRs. The bank's Long-Term IDRs (xgs) are sensitive to changes in its VR. The Short-Term IDRs (xgs) are sensitive to changes in Eldik's Long-Term IDRs (xgs). Eldik's long-term senior unsecured debt rating is sensitive to changes in the bank's Long-Term Foreign-Currency IDR. VR ADJUSTMENTS The earnings and profitability score of 'b' is below the 'bb' category implied score due to the following adjustment reason: earnings stability (negative). The capitalisation and leverage score of 'b' is below the 'bb' category implied score due to the following adjustment reason: risk profile and business model (negative). Public Ratings with Credit Linkage to other ratings Eldik's GSR and IDRs are directly linked to Kyrgyzstan's sovereign IDRs. ESG Considerations Eldik has an ESG Relevance Score of '4' for Governance Structure as Kyrgyzstan's authorities are highly involved in the bank's business and strategy development. It also has an ESG Relevance Score of '4' for Financial Transparency, reflecting shortcomings in the audited financial reporting. These factors have a negative impact on the bank's credit profile and are relevant to the ratings in combination 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 ----------- ------ ----- Open joint-stock company Eldik Bank LT IDR B Affirmed B ST IDR B Affirmed B LC LT IDR B Affirmed B LC ST IDR B Affirmed B Viability b- Affirmed b- Government Support b Affirmed b LT IDR (xgs) B-(xgs) Affirmed B-(xgs) ST IDR (xgs) B(xgs) Affirmed B(xgs) LC LT IDR (xgs) B-(xgs)Affirmed B-(xgs) LC ST IDR (xgs) B(xgs) Affirmed B(xgs) =========================== U N I T E D K I N G D O M =========================== HAWKSMOOR MORTGAGE 2026: Fitch Assigns 'Bsf' Rating on Cl. F Notes ------------------------------------------------------------------ Fitch Ratings has assigned Hawksmoor Mortgage Funding 2026 plc (Hawksmoor 26) final ratings. Entity/Debt Rating Prior ----------- ------ ----- Hawksmoor Mortgage Funding 2026 plc Class A1 NRR Loan Note LT AAAsf New Rating AAA(EXP)sf Class A1 Notes XS3368934538 LT AAAsf New Rating AAA(EXP)sf Class A2 Notes XS3368934611 LT AAAsf New Rating AAA(EXP)sf Class B Notes XS3368934702 LT AA-sf New Rating AA-(EXP)sf Class C Notes XS3368934884 LT A-sf New Rating A-(EXP)sf Class D Notes XS3368934967 LT BBBsf New Rating BBB(EXP)sf Class E Notes XS3368935006 LT BBsf New Rating BB(EXP)sf Class F Notes XS3368935188 LT Bsf New Rating B(EXP)sf Class G Notes XS3368962406 LT B-sf New Rating B-(EXP)sf Class X Notes XS3368935345 LT B-sf New Rating B-(EXP)sf Class Z Notes XS3368935261 LT NRsf New Rating NR(EXP)sf VRR Loan Notes LT NRsf New Rating NR(EXP)sf Transaction Summary Hawksmoor 26 is a securitisation of UK non-conforming (UKN) owner-occupied (OO: 91.8%) and buy-to-let (BTL: 8.2%) mortgages originated in the UK by various legacy UKN lenders. The assets were previously securitised in Stratton Hawksmoor 2022-1 PLC, which was a Fitch-rated transaction. KEY RATING DRIVERS Seasoned Non-Conforming Loans: The portfolio is highly seasoned at 234 months. The pool has a high weighted average (WA) original loan-to-value (LTV) of 85.8% but has benefited from borrower deleveraging, with a WA current LTV of 75.0%, and a significant amount of indexation leading to a WA indexed current LTV of 46.0%. This leads to an overall WA sustainable LTV of 51.5%. The pool is typical for pre-global financial crisis UKN transactions, with pre-2014 OO originations and a high proportion of interest-only (IO) loans, loans with self-certified income and a large proportion of the pool in arrears for longer than one month (28.7%). Fitch therefore applied the UKN and BTL assumptions set out in its UK RMBS Rating Criteria. Robust Payrates: The payrates for the pool, being the total payment made in a given period compared with the total payment due, have been fairly strong. The pool's payrate has been 90%-100% for the past three years, when Fitch limits maximum monthly payments for a given loan at 200%. Unhedged Basis Risk: The pool contains 93.0% of loans linked to the Bank of England base rate (BBR). There will be no hedge in place at close. As the notes pay daily compounded SONIA, the transaction is exposed to basis risk between the BBR and SONIA. Fitch has incorporated this risk into its analysis by implementing a margin reduction of 0.15% in rising and stable interest rate stress scenarios, in line with its UK RMBS Rating Criteria. Reserves Provide Liquidity: The liquidity reserve provides payment coverage for senior fee payments, class A payments and, subject to conditions, class B payments. The general reserve fund provides payment coverage to these items and the other notes' interest payments. As neither reserve can be used to cover credit losses, they are more likely to be available to address interest shortfalls. Late-Stage Arrears Assumed as Defaulted: Fitch treats loans that are more than 12 months in arrears as defaulted for the purpose of asset and cash flow modelling under its criteria. This is to account for the pool producing less revenue than if it were fully performing. Late-stage arrears treated as defaulted account for 11.3% of the total pool in Hawksmoor 26. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The transaction's performance may be affected by changes in market conditions and economic environment. Weakening economic performance is strongly correlated to increasing levels of delinquencies and defaults that could reduce the CE available to the notes. Fitch found that a 15% increase in the WA foreclosure frequency and a 15% decrease in the WA recovery rate would indicate model-implied downgrades of up to four notches for the class A, B and C notes; five notches for the class D notes; at least four notches for the class E notes; and at least one notch for the class F notes. The class G and X notes are already at the lowest non-distressed rating. 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 levels and, potentially, upgrades. Fitch found that a decrease in the WA foreclosure frequency of 15% and an increase in the WA rating recovery rate of 15% would lead to upgrades of up to two notches for the class B notes, four notches for the class C, D, E and G notes and five notches for the class F notes. The class X notes would be unaffected. The class C and below notes are capped at 'A+sf' due to a lack of dedicated liquidity. The class A notes are already at 'AAAsf' and cannot be upgraded. 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 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 rating agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. Date of Relevant Committee 13 May 2026 ESG Considerations Hawksmoor 26 has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security due to the OO sub-pool comprising a significant proportion (over 20%) of pre-2014 collateral with limited affordability checks and self-certified income. This has a negative impact on the credit profile and is relevant to the ratings in conjunction with other factors. Hawksmoor 26 has an ESG Relevance Score of '4' for Human Rights, Community Relations, Access & Affordability due to the OO sub-pool containing a concentration (over 20%) of interest-only loans. 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. SHERWOOD PARENTCO: Fitch Affirms 'B' LongTerm IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed Sherwood Parentco Limited's (Arrow) Long-Term Issuer Default Rating (IDR) at 'B' with Stable Outlook. Fitch has also affirmed Sherwood Financing Plc's senior secured debt, guaranteed by Arrow, among other Sherwood entities, at 'B'. Arrow is the parent company of Sherwood Acquisitions Limited, a UK-based entity set up by TDR Capital LLC (and owned by investment funds managed by TDR Capital LLP) to acquire Arrow Global Group, a European fund manager specialising in a range of distressed and performing assets. These rating actions have been taken as part of a periodic review of North American and European debt purchasers, which comprises four publicly rated firms. For more information on the peer review, see "Fitch Ratings Completes Peer Review of North American and European Debt Purchasers". Key Rating Drivers The ratings reflect Arrow's established but modest franchise across the European credit spectrum as well as the anticipated medium-term benefits of business diversification, robust fundraising and the company's shift to an asset-light strategy. The rating is constrained by Arrow's high leverage and debt servicing costs, which have led to consistently negative earnings and could constrain the business in a challenging operating environment. Modest Scale; Diversified Income: Arrow's scale is smaller than that of higher-rated debt purchasers (measured by estimated remaining collections) and alternative asset managers (measured by assets under management). However, the company's local presence in multiple European markets enables it to target smaller and often off-market transactions, which are typically less price-sensitive than auction-led deals. Growth in Capital-Light Earnings: Over the last five years, Arrow has greatly reduced its traditional debt purchasing, acting as a manager of funds investing in a wider range of distressed and performing assets, and as the servicer of those assets. Arrow has made tangible progress in its transition to an asset-light business with fundraising and deployments on track to meet the medium-term targets of EUR6 billion discretionary fee-earning net asset value (NAV) and EUR3 billion deployment a year. Still Below Break-even: Arrow's net earnings remain negative since the adoption of its revised model, with a pre-tax loss of GBP116 million in 2025 (pre-tax losses of GBP70 million in 2024 and GBP125 million in 2023), after accounting for high financing costs. Fitch expects Arrow to improve profitability over time, as the fund management business gains scale and excess cash is used to delever. Higher-than-Expected Leverage: Management's medium-term target to reduce net leverage to 3x adjusted EBITDA has been slower than anticipated due to slower realisations. Fitch-calculated gross debt/adjusted EBITDA (adjusted for portfolio amortisation) increased to about 6x at end-2025 (end-2024: 4x). Fitch expects leverage to reduce as the business scales up, with the co-investment percentage (and consequent funding requirements) of its fund management business reducing to 6% for ACOIII, versus 25% for ACOI. Management have also expedited the sale of certain Portuguese legacy investments and are disposing of the Italian servicer, Zenith Global S.p.A.. These actions will raise about EUR200 million, with excess cash generated from realisations to be used for deleveraging. However, Fitch expects the deleveraging path to be challenging as cash generated from investment realisations, fee-related EBITDA and, potentially, carry will need to be balanced against high interest expenses and ongoing co-investment commitments. Arrow's tangible equity is negative following material inorganic expansion of its local platforms, which weighs on its capitalisation and leverage assessment. Long-Dated Debt Maturities: Arrow's operating cash flow was negative in 2025, due largely to lower realisations while interest coverage (EBITDA adjusted for portfolio amortisation) declined to 1.8x (2024: 2.9x). Arrow's liquidity profile benefits from long-dated debt maturities to December 2029 and a GBP285 million revolving credit facility (RCF) maturing in June 2029 but its liquidity assessment remains sensitive to timely investment realisations. Its assessment of Arrow's funding, liquidity and coverage profile also takes into account its predominantly secured and confidence-sensitive wholesale funding sources. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Further deterioration in Fitch-calculated cash flow leverage over the next 12 to 24 months or inability to materially reduce gross debt or narrow pre-tax losses - Material underperformance in asset realisations, leading to large portfolio impairments or negative operating cash flow - Weakening of Arrow's corporate governance, or other evidence of increased risk appetite Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustained improvement in Arrow's gross leverage ratio to below 4.5x, material reductions in gross debt, alongside a path to break-even in conjunction with sound fund performance that generates co-investment profits and facilitates investor support for investment in future funds. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS Sherwood Financing Plc's senior secured notes are guaranteed by Arrow. These notes comprise EUR1.06 billion at a floating rate due 2029; EUR300 million at 7.625% due 2029 and GBP250 million at 9.625% due 2029. As Arrow's senior secured notes are its main outstanding debt class (and effectively junior to the company's GBP285 million RCF), Fitch has equalised the notes' ratings with the Long-Term IDR, indicating average recoveries for the notes. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES - A downgrade of the Long-Term IDR would likely be mirrored in a downgrade of the notes. In addition, worsening recovery expectations, for instance, through a larger layer of structurally senior debt, could lead Fitch to notch down the notes' rating from the Long-Term IDR - An upgrade of the Long-Term IDR would likely be mirrored in an upgrade of the notes. In addition, improved recovery expectations, for instance, through a larger layer of junior debt, could lead Fitch to notch up the notes' rating from Arrow's Long-Term IDR ADJUSTMENTS The 'b' standalone credit profile (SCP) is below its 'b+' implied SCP due to the following adjustment reason: capitalisation & leverage (negative). The 'bb-' business profile score is below the 'bbb' implied score due to the following reason: business model (negative). The 'b-' earnings and profitability score is below the 'bb' implied score due to the following reason: earnings stability (negative). The 'b' capitalisation and leverage score is above the 'ccc or below' implied score due to the following reason: historical and future metrics (positive). ESG Considerations Arrow has an ESG Relevance Score of '4' for 'Financial Transparency' due to the importance of internal modelling to portfolio valuations and associated metrics, such as estimated remaining collections. However, this is a feature of the sector as a whole, and not specific to the company. This has a moderately negative impact on the credit profile and is relevant to the rating 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 ----------- ------ -------- ----- Sherwood Parentco Limited LT IDR B Affirmed B Sherwood Financing Plc senior secured LT B Affirmed RR4 B STRATTON MORTGAGE 2024-1: Fitch Affirms CCsf Rating on 2 Tranches ----------------------------------------------------------------- Fitch Ratings has affirmed Stratton Mortgage Funding 2024-1 Plc, Stratton Mortgage Funding 2024-2 plc and Stratton Mortgage Funding 2024-3 PLC's notes. The Outlooks on five mezzanine and junior tranches have been revised to Negative from Stable. Entity/Debt Rating Prior ----------- ------ ----- Stratton Mortgage Funding 2024-1 Plc A XS2728570248 LT AAAsf Affirmed AAAsf B XS2728570321 LT AA-sf Affirmed AA-sf C XS2728570594 LT BBBsf Affirmed BBBsf Class A Loan LT AAAsf Affirmed AAAsf D XS2728574232 LT BB-sf Affirmed BB-sf E XS2728574406 LT B-sf Affirmed B-sf F XS2728574588 LT CCCsf Affirmed CCCsf X1 XS2728574828 LT CCsf Affirmed CCsf X2 XS2728575049 LT CCsf Affirmed CCsf Stratton Mortgage Funding 2024-2 plc A XS2777475372 LT AAAsf Affirmed AAAsf B XS2777475539 LT AA+sf Affirmed AA+sf C XS2777476776 LT A+sf Affirmed A+sf D XS2777482741 LT BBB+sf Affirmed BBB+sf E XS2777485504 LT BBB-sf Affirmed BBB-sf F XS2777487203 LT BB+sf Affirmed BB+sf Stratton Mortgage Funding 2024-3 PLC A XS2819830329 LT AAAsf Affirmed AAAsf B XS2819830592 LT AA-sf Affirmed AA-sf C XS2819830758 LT A-sf Affirmed A-sf D XS2819830832 LT BBB-sf Affirmed BBB-sf E XS2819830915 LT B+sf Affirmed B+sf F XS2819831053 LT Bsf Affirmed Bsf Transaction Summary The transactions are securitisations of non-conforming owner-occupied (OO) and buy-to-let (BTL) mortgages backed by properties in the UK. KEY RATING DRIVERS Defaulted Loans: Loans Fitch considers as defaulted are considerable, at over 10% per transaction. This is a combination of loans reported as defaulted, and loans 12 months or more in arrears which Fitch treats as defaulted. In its analysis, defaulted loans produce only recovery amounts subject to recovery rate caps leading to model-implied downgrade pressure on the ratings where Fitch has revised the Outlooks to Negative. Should the high default balances persist, it could lead to downgrades at future reviews. However, Fitch considers current credit enhancement adequate to affirm all ratings. Stable Arrears Performance: Both early and late-stage arrears as a percentage of the outstanding pool balance have been relatively stable across the past year for all three transactions, despite declining pool balances. Stable asset performance contributed to the affirmation of the notes. Transaction Adjustment: The pools comprise highly seasoned (BTL) loans. Fitch analysed the pool using its BTL-specific assumptions, applying a transaction adjustment factor of 1.5x to foreclosure frequency (FF). The higher adjustment reflects the transactions' historical performance, with the proportion of loans in arrears by more than three months consistently underperforming Fitch's BTL index. BTL Recovery Rate Cap: Fitch has applied borrower-level recovery rate (RR) caps to the BTL loans in the transactions, in line with those applied to non-conforming loans. The RR cap is 85% at 'Bsf' and 65% at 'AAAsf'. This reflects observed loss levels of BTL loans of pre-financial crisis vintage. Payment Interruption Risk Rating Cap: The class C notes and more junior notes in each transaction are capped at 'A+sf' due to their lack of access to dedicated liquidity. The class A and B notes in each transaction have access to a dedicated liquidity reserve, which mitigates payment interruption risk up to 'AAAsf'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The transactions' performance may be affected by changes in market conditions and economic environment. Weakening economic performance is strongly correlated to increasing levels of delinquencies and defaults that could reduce credit enhancement available to the notes. Additionally, unanticipated declines in recoveries could result in lower net proceeds, making certain notes susceptible to negative rating action, depending on the extent of the decline in recoveries. Fitch found that an increase in the foreclosure frequency (FF) of 15% and a decrease in the recovery rate of 15% would produce the following model-implied ratings: Stratton Mortgage Funding 2024-1 Plc: Class A/B/C/D/E/F/X1/X2 Ratings: 'AA+sf'/ 'BBB+sf'/'Bsf'/'NRsf'/'NRsf'/'NRsf'/'NRsf'/'NRsf' Stratton Mortgage Funding 2024-2 plc: Class A/B/C/D/E/F Ratings: 'AAAsf'/ 'AA+sf'/'A-sf'/'BB+sf'/'B-sf'/'B-sf' Stratton Mortgage Funding 2024-3 PLC: Class A/B/C/D/E/F Ratings: 'AAAsf'/ 'A-sf'/'BB+sf'/'Bsf'/'NRsf'/'NRsf' 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 credit enhancement and potentially upgrades. Fitch found that a decrease in the FF of 15% and an increase in the recovery rate of 15% would produce the following model-implied ratings: Stratton Mortgage Funding 2024-1 Plc: Class A/B/C/D/E/F/X1/X2 Ratings: 'AAAsf'/ 'AA+sf'/'A-sf'/'BB+sf'/'NRsf'/'NRsf'/'NRsf'/'NRsf' Stratton Mortgage Funding 2024-2 plc: Class A/B/C/D/E/F Ratings: 'AAAsf'/ 'AAAsf'/'AA+sf'/'AA-sf'/'A-sf'/'BBBsf' Stratton Mortgage Funding 2024-3 PLC: Class A/B/C/D/E/F Ratings: 'AAAsf'/ 'AAAsf'/'AAsf'/'Asf'/'BBB-sf'/'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 pools and the transactions. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Prior to the transactions closing, Fitch reviewed the results of a third party assessment conducted on the asset portfolio information and concluded that there were no findings that affected the rating analysis. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Stratton Mortgage Funding 2024-1 Plc has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security due to the high proportion of interest-only loans in legacy OO mortgages, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Stratton Mortgage Funding 2024-1 Plc has an ESG Relevance Score of '4' for Human Rights, Community Relations, Access & Affordability due to a large 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. Stratton Mortgage Funding 2024-2 plc has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security due to the high proportion of interest-only loans in legacy OO mortgages, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Stratton Mortgage Funding 2024-2 plc has an ESG Relevance Score of '4' for Human Rights, Community Relations, Access & Affordability due to a large 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. Stratton Mortgage Funding 2024-3 PLC has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security due to the high proportion of interest-only loans in legacy OO mortgages, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. Stratton Mortgage Funding 2024-3 PLC has an ESG Relevance Score of '4' for Human Rights, Community Relations, Access & Affordability due to a large 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. [] Fitch Affirms & Then Withdraws Ratings on Dekania II/III Notes ----------------------------------------------------------------- Fitch Ratings has affirmed Dekania II and III notes and withdrawn all ratings. The Rating Outlooks on Dekania II class C notes were Stable at the time of the withdrawal. Entity/Debt Rating Prior ----------- ------ ----- Dekania Europe CDO II Plc Class C XS0265874171 LT BBBsf Affirmed BBBsf Class C XS0265874171 LT WDsf Withdrawn Class D1 XS0265875145 LT CCCsf Affirmed CCCsf Class D1 XS0265875145 LT WDsf Withdrawn Class D2 XS0266479913 LT CCCsf Affirmed CCCsf Class D2 XS0266479913 LT WDsf Withdrawn Class E XS0265883164 LT CCsf Affirmed CCsf Class E XS0265883164 LT WDsf Withdrawn Dekania Europe CDO III Plc Class C XS0298467407 LT CCCsf Affirmed CCCsf Class C XS0298467407 LT WDsf Withdrawn Class D XS0298468637 LT CCsf Affirmed CCsf Class D XS0298468637 LT WDsf Withdrawn Class E XS0298469361 LT Csf Affirmed Csf Class E XS0298469361 LT WDsf Withdrawn Class F XS0298469874 LT Csf Affirmed Csf Class F XS0298469874 LT WDsf Withdrawn Transaction Summary Dekania Europe CDO II and III are cash flow CDOs managed by Dekania Capital Management, LLC, an affiliate of Cohen & Company Securities, LLC. The notes are backed primarily by euro-denominated hybrid capital securities and subordinated bonds issued predominantly by small and mid-sized European insurance companies and banks. Fitch has withdrawn ratings as they are no longer considered relevant to the agency's coverage because of Fitch's limited coverage of this CDO sector. Further, there are several unrated assets in the otherwise highly concentrated portfolio. These are treated as 'CCC' in line with Fitch criteria. The lack of ratings effectively limits upgrades for the notes. KEY RATING DRIVERS Credit Quality Drives Ratings: Fitch believes that interest on the perpetual asset, once reclassified as principal, will be sufficient to redeem the class C notes in Dekania II in full before legal final maturity. The notes' 'BBBsf' rating is commensurate with the credit quality of this asset. The class D notes and below notes have been affirmed at 'CCCsf' and below as the reclassified interest to principal from the one perpetual asset is unlikely to be able to pay down these notes while all other underlying assets are maturing near or after the legal final maturity of the notes. For Dekania III, there is EUR14 million of performing assets that are not perpetual backing the class C notes with an outstanding notional of EUR10.3 million. The 'CCCsf' rating of the class C notes is commensurate with the Fitch-derived ratings of these assets. The remaining junior notes have been affirmed at 'CCsf' or lower as they are backed primarily by perpetual assets that expose them to market value risks. High Obligor Concentration: The transactions are in their tail periods. Dekania II is backed by five performing assets and one defaulted asset, while Dekania III is backed by four performing assets and one defaulted asset with the highest rated asset at 'BBB' in both transactions. Consequently, Fitch has capped the ratings at 'BBBsf' in line with its CLOs and Corporate CDOs Rating Criteria. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Not applicable as the ratings have been withdrawn. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Not applicable as the ratings have been withdrawn. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pools and the transactions=. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Fitch did not undertake a review of the information provided about the underlying asset pools ahead of the transactions' closing. The subsequent performance of the transactions over the years is consistent with the rating agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the rating agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Dekania II or Dekania III. 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. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2026. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. 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