260603.mbx

260603.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, June 3, 2026, Vol. 27, No. 110 Headlines C Y P R U S KLPP INSURANCE: S&P Affirms 'BB+' ICR & Alters Outlook to Positive G E R M A N Y TUI AG: S&P Withdraws 'BB-' LongTerm Issuer Credit Rating I R E L A N D FINANCE IRELAND 3: S&P Assigns Prelim. 'BB-' Rating on X Notes I T A L Y RINO MASTROTTO: S&P Affirms 'B' ICR & Alters Outlook to Negative N E T H E R L A N D S DOMI 2022-1: S&P Affirms 'B-(sf)' Rating on Class E Notes S P A I N CEMENTOS MOLINS: S&P Assigns 'BB' LongTerm ICR, Outlook Stable S W I T Z E R L A N D ALLWYN AG: S&P Assigns 'BB' LongTerm ICR, Outlook Stable U N I T E D K I N G D O M AERALIS LTD: Buchler Phillips Appointed as Joint Administrators CASTLE DONNINGTON: CMB Partners & Opus Named as Administrators DEVONSHIRE PARK: BTG Begbies Appointed as Administrators FRONTIER MORTGAGE 2026-1: S&P Assigns (P)BB(sf) Rating on X Notes PURPOSE LED: Marshall Peters Appointed as Joint Administrators - - - - - =========== C Y P R U S =========== KLPP INSURANCE: S&P Affirms 'BB+' ICR & Alters Outlook to Positive ------------------------------------------------------------------ S&P Global Ratings revised its outlook on KLPP Insurance and Reinsurance Co. Ltd (KLPP) to positive from stable. At the same time, S&P affirmed its 'BB+' insurer financial strength and issuer credit ratings. The positive outlook reflects that KLPP has made solid progress in building a more consistent track record of profitable growth in its chosen credit and surety insurance markets. At the same time, it has demonstrated consistency in its financial reporting with an unqualified opinion for the second consecutive year. This further reflects enhanced reporting transparency, compliance with Solvency II requirements, and adequate controls over underwriting and investment risks. KLPP reported solid profits in 2025 and the first quarter of 2026 and has made meaningful progress establishing a consistent track record of profitable growth in its core insurance operations. At the same time, KLPP received an unqualified audit opinion for its Dec. 31, 2025 financial statements for the second consecutive year, reinforcing the reliability in its reporting and governance practices. Insurance revenue increased by 3.1% to EUR26.3 million from EUR25.5 million, supported by a 16% expansion in its core credit and surety insurance business. This was partly offset by a 68% reduction in fire and property (re)insurance, reflecting a continued strategic move to limit exposure to historically high property insurance losses. This strategic repositioning supports a more sustainable trajectory, with KLPP executing a more targeted business model focused on its credit and surety insurance business, supported by an experienced underwriting team. As a result of this strategic realignment, KLPP reported sound net income of $20.7 million for the 2025 financial year, compared with $20.9 million in 2024, $2.4 million in 2023, and a loss of $13.6 million in 2022, reflecting improving earnings. KLPP's net income in first quarter (Q1) 2026 was $7.7 million, improving from $3.5 million reported in Q1 2025. The combined ratio (under International Financial Report Standard 17) reached 52.2% in 2025 after 61.1% in 2024, compared with 131.4% in 2023 and 117.9% in 2022, demonstrating sustained underwriting improvement. Although KLPP posted underwriting profits in 2025 and 2024, the business franchise remains in its development phase, following the repositioning toward credit and surety and three consecutive years of substantial underwriting losses from 2021-2023. Furthermore, the absence of reinsurance protection for the credit and surety insurance business is a risk. Given the high-severity, low-frequency nature of surety business, insufficient reinsurance coverage may increase loss severity and correlation risks, potentially leading to greater volatility in underwriting results. That said, KLPP benefits from a very solid solvency position and has embedded controls for accumulation risk within its underwriting guidelines and utilizes counter-guarantees for bonds that exceed defined thresholds. S&P will closely monitor how KLPP develops its underwriting portfolio, reinsurance program, and other protections, such as guarantees, with adequate limits to reduce exposure to large single claims and support the resilience of its growth and underwriting performance. Although underwriting profitability may remain volatile in the coming years, S&P forecasts the average combined ratio will stay below 100% over 2026-2028. Supported by solid investment income, it expects that net income will consistently exceed $15 million annually over the next three years. S&P said, "We believe KLPP's capital will remain a key rating strength over 2026-2028, based on its S&P Global Ratings capital adequacy and regulatory solvency, with a Solvency II ratio of 490% at year-end 2025. Under our base case, we assume KLPP will remain committed to maintaining a sizable buffer above the capital requirements under our highest 99.99% confidence level, according to our capital model in the next years. We already incorporate in this forecast that KLPP may continue to pay dividends of $20 million-$22 million out of its accumulated retained earnings, as demonstrated in 2025 and 2024." As the credit and surety business continues to expand, the increasing exposure could gradually reduce the solvency position and elevate KLPP's risk exposure if portfolio protection is not appropriately scaled over time. S&P said, "We believe KLPP's investment exposure is generally conservative, with the vast majority being invested in investment-grade, fixed-income securities. The company still has some exposure to Russia-linked Eurobonds, accounting for about 5% of total assets (as of year-end 2025), as well as promissory notes issued by a leasing company based in Russia but operating across Asia, Russia, and the Commonwealth of Independent States region, representing approximately 12% of total assets. We view this exposure as manageable given KLPP's capital base, though we will continue to monitor potential defaults, payment reliability, and their impact on earnings and capital adequacy. In 2023, KLPP borrowed about $120 million in Japanese yen from banks to improve its investment result and earn a margin against the nominal interest rate of the loan by investing in highly rated bonds. Outstanding borrowings declined to $85.6 million in 2025 and further to $65.9 million in Q1 2026. The currency risk associated with borrowings in Japanese yen is mitigated by a currency swap. S&P said, "We will continue to monitor the permanence and efficiency of the foreign exchange hedge protection and any potential adverse financial impact from currency mismatches. We treat this loan as operational leverage under our criteria; hence it does not affect our view on the company's funding structure or financial leverage." S&P said, "The positive outlook reflects that we could raise the ratings by one notch over the next 12-24 months if KLPP continues to develop its market franchise and expand profitably in its chosen credit and surety insurance markets. Furthermore, we expect KLPP to maintain its strong financial risk profile, supported by a sizable capital buffer above the 99.99% confidence level, according to our capital model." S&P could revise the outlook back to stable over the next 12-24 months if: -- KLPP experienced significant earnings volatility stemming, for example, from large losses in its insurance business, currency-related losses, or volatility in its Russian-related investment exposure; -- KLPP's business risk profile weakens materially, for instance, because of a significant expansion in high-risk insurance markets; or -- KLPP were to unexpectedly receive a modified audit opinion again. S&P could raise the ratings on KLPP by one notch over the next 12-24 months if KLPP builds a further track record in developing its business franchise and demonstrates profitable growth in its targeted credit and surety insurance markets, while maintaining the highest capital adequacy according to its model. ============= G E R M A N Y ============= TUI AG: S&P Withdraws 'BB-' LongTerm Issuer Credit Rating --------------------------------------------------------- S&P Global Ratings withdrew its 'BB-' long-term issuer and issue ratings on TUI AG at the company's request. At the time of the withdrawal, the outlook on our issuer credit rating was stable. ============= I R E L A N D ============= FINANCE IRELAND 3: S&P Assigns Prelim. 'BB-' Rating on X Notes -------------------------------------------------------------- S&P Global Ratings assigned its preliminary credit ratings to Finance Ireland Auto Receivables No. 3 DAC's class A to X-Dfrd notes. Finance Ireland Auto Receivables No. 3 is an ABS transaction backed by a pool of new and used auto finance receivables. The preliminary pool predominantly comprises consumer hire-purchase agreements, plus a smaller proportion of non-consumer hire-purchase and personal contract plan agreements. The assets were originated by Finance Ireland Credit Solutions DAC, trading as Finance Ireland Motor and Leasing (FIML), to its private retail and commercial clients in Ireland. This will be the third securitization of Finance Ireland Motor and Leasing's assets that S&P has rated. However, Finance Ireland Credit Solutions DAC (trading as FIML) has previously been a frequent issuer from its RMBS platform, with seven transactions issued to date, along with two small ticket CMBS transactions. This transaction will be static and will not feature a revolving period. An amortizing reserve fund provides liquidity. It is sized at 1.6% of the class A to D-Dfrd notes' closing balance. This reserve amortizes along with the class A to D-Dfrd notes' outstanding balance. The reserve fund is available to the class A and B-Dfrd notes from closing, excluding the class B-Dfrd PDL. Once the class A notes are redeemed, the reserve fund is available to the class B-Dfrd and D-Dfrd notes. Principal can also be used to pay senior fees and interest on all notes outstanding, subject to certain conditions. S&P said, "Our analysis indicates that the class A and D-Dfrd notes' available credit enhancement will be sufficient to withstand losses commensurate with the assigned preliminary ratings. "There are no rating constraints in the transaction under our counterparty, operational risk, or structured finance sovereign risk criteria. We consider the issuer to be bankruptcy remote." Preliminary ratings Class Prelim rating* Class size (%) A AAA (sf) 91.00 B-Dfrd AA+ (sf) 4.50 C-Dfrd A (sf) 3.50 D-Dfrd BBB+ (sf) 1.00 X-Dfrd BB- (sf) 3.00 *S&P's preliminary ratings address timely receipt of interest and ultimate repayment of principal on the class A notes, and the ultimate payment of interest and principal on all the other rated notes. S&P's preliminary ratings also address timely receipt of interest on the class B-Dfrd to D-Dfrd notes when they become the most senior outstanding. ========= I T A L Y ========= RINO MASTROTTO: S&P Affirms 'B' ICR & Alters Outlook to Negative ---------------------------------------------------------------- S&P Global Ratings revised the outlook on its ratings on Italian leather and textile manufacturer Rino Mastrotto Group SpA to negative from stable, and affirmed its 'B' long-term issuer credit rating and our 'B' issue rating on the company's EUR320 million notes due 2031 with a recovery rating of '3'. The negative outlook reflects Rino Mastrotto's reduced rating headroom amid difficult market conditions resulting in weak operating performance, higher-than-expected S&P Global Ratings-adjusted leverage, and subdued annual FOCF. Rino Mastrotto showed some deterioration in its operating performance for 2025, mainly due to declining volumes in its luxury and automotive divisions. Organic revenue fell by about 9% year on year, coupled with a contraction in profitability and negative annual free operating cash flow (FOCF). A tough operating environment amid subdued consumer sentiment and increased input costs will continue to weigh on the company's performance. That said, S&P anticipates gradual recovery with organic sales growth of about 3%, although it expects the dilutive effect of Prada's tanneries' integration will affect profitability. For fiscal year ended Dec. 31, 2025, Rino Mastrotto posted a contraction in reported sales of about 3.7% year on year (a 9% decline on an organic comparable basis) with a 360 basis-point drop in S&P Global Ratings-adjusted EBITDA margin. These results stemmed primarily from challenges in the personal luxury industry and the company's automotive division. Rino Mastrotto posted a lower-than-expected operating performance with total reported sales of EUR349 million in 2025, with all three of its divisions negatively contributing to the performance. The luxury creations segment (56% of sales) was hit by a general weakness within the luxury industry, mainly because of lower consumer spending in the Asia-Pacific region. The interior design segment (16% of sales) was affected by industry headwinds, with some volume pressure associated with lower real estate investments. Meanwhile, in the automotive segment (28%), some of the company's contracts were phased out. Despite a better product mix thanks to a higher contribution from the luxury creations division, the weak top line and higher personnel costs translated into subdued profitability, resulting in S&P Global Ratings-adjusted EBITDA of EUR42.3 million in 2025 (12.1% adjusted margin), significantly below the previous year's adjusted EBITDA of EUR56.7 million (15.7% adjusted margin). While pressures in performance persisted in the first nine months of 2025, with organic comparable company sales declining by 13% versus 2024, the last quarter of 2025 showed signs of recovery (organic growth of about 5%), mainly thanks to a normalization of the luxury creations division, particularly from the textile businesses. S&P understands that the positive trend that started during the last quarter of 2025 is continuing in the first half of 2026. The contraction in adjusted EBITDA caused adjusted debt to EBITDA to increase from about 7.0x in 2024 to 9.3x in 2025. S&P said, "We expect Rino Mastrotto's operating performance will remain volatile in 2026 as the company continues to navigate a difficult operating environment. Under our revised base case, we assume reported sales growth of 13%-14% for full-year 2026, of which about 3% is organic. The external growth stems from the full consolidation of two tanneries (Conceria Superior SpA and Tannerie Limoges S.A.), which were an in-kind contribution from Prada, coupled with the contribution from Rino Mastrotto's partnership with Gruppo Marzotto in the interior design segment. We also expect a sequential improvement in performance in 2026 in the luxury creations division, thanks to some early positive signs of volume improvement for some key accounts, especially in the leather category. Meanwhile, the expected ramp up of new contracts with key European carmakers will support growth in the automotive division. We think top-line growth could also emerge from price increases, as well as the company's entry into the lamb leather business over the medium term. As a result, we anticipate organic reported revenue growth of 3%-5% in 2027. Although we expect absolute EBITDA (excluding synergies from recent partnerships) to be flat this year compared with 2025, we forecast a dilution in the S&P Global Ratings-adjusted EBITDA margin of 50 bps-100 bps. This is because of the negative profitability of Prada's tanneries and an expected increase in input costs, including chemicals and utilities, where we could see delays in passing though the inflation, especially in the luxury creation and interior design divisions, which do not benefit from automatic pass-through mechanisms. We expect the company to benefit from manufacturing and commercial efficiencies, leading to 2027 S&P Global Ratings-adjusted EBITDA margin of 12.5%-13.5%, representing an annual increase of about 100 bps-150 bps. "We expect the company to start deleveraging and generate flat or slightly positive annual FOCF while maintaining adequate liquidity, supported by progressive recovery in its addressable market. For 2026, we forecast improving EBITDA, mainly thanks to synergies from recent partnerships including procurement for leather and textile, reduced usage of outsourcing, optimized chemical usage, and benefit from operating leverage. This should lead to gradual deleveraging approaching 8.5x by year-end 2026 and toward 7.0x-7.5x in 2027. Relatively lower annual capital expenditure (capex) should support cash flow conversion as the company completes investments related to its new headquarters in Italy and new machineries. Annual FOCF will benefit from better working capital, because the company is working on reducing inventory lead time and payables days. We expect flattish or slightly positive FOCF in 2026 and EUR10 million-EUR15 million in 2027. Moreover, the group has cash on balance sheet of about EUR44 million as of year-end 2025, and a fully undrawn EUR50 million super senior revolving credit facility (RCF) due 2031, in addition to other commercial and working capital facilities." The negative outlook reflects Rino Mastrotto's reduced rating headroom stemming from difficult market conditions, which has resulted in a weak operating performance, leading to higher-than-expected adjusted leverage and subdued annual FOCF. S&P said, "We could take a negative rating action if Rino Mastrotto were unable to show a clear deleveraging trend such that adjusted debt to EBITDA stays above 7.0x, or if the company cannot protect its cash flow generation by restoring positive FOCF. This could happen, for example, if the company experiences loss of volumes because of weaker consumer demand, is not able to generate manufacturing and commercial efficiencies, or benefit from synergies created by recent partnerships. A more aggressive financial policy favoring significant debt-funded acquisitions or shareholder returns could also weigh on the rating. "We could consider revising the outlook to stable if the company shows steady EBITDA growth resulting in a quicker-than-expected deleveraging path such that debt-to-EBITDA decreases to 7.0x. This would also depend on Rino Mastrotto's ability to maintain a positive FOCF generation and an FFO cash interest coverage close to 2.0x." ===================== N E T H E R L A N D S ===================== DOMI 2022-1: S&P Affirms 'B-(sf)' Rating on Class E Notes --------------------------------------------------------- S&P Global Ratings raised its credit rating on Domi 2022-1 B.V.'s class D-Dfrd notes to 'A+ (sf)' from 'BBB+ (sf)'. At the same time, S&P affirmed its 'AAA (sf)', 'AA+ (sf)', 'AA (sf)', and 'B- (sf)' ratings on the class A, B-Dfrd, C-Dfrd, and E-Dfrd notes, respectively. The notes are interest deferrable except the class A notes. S&P's ratings address timely receipt of interest and ultimate repayment of principal on the class A notes, and ultimate receipt of interest and repayment of principal on the other classes of notes. 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. "We consider the performance of the loans in the collateral pool as strong since closing. As of the March 2026 payment date, arrears have been minimal with no losses since closing. "We lowered our originator adjustment to account for Domivest B.V.'s (the originator) long performance track record and status as a major lender in the Dutch buy-to-let (BTL) market, in line with our updated assessment in the recent Domi 2026-1 B.V. transaction. "Our updated credit analysis led to a decrease in the weighted-average foreclosure frequency at all rating levels along with a decrease in the weighted-average loss severity (WALS). The loans' amortization and higher property prices in the Netherlands, reflected in our house price index (HPI), have decreased the weighted-average current loan-to-value ratio, significantly decreasing the WALS for all rating levels since our previous review." Table 1 WAFF and WALS levels Rating level WAFF (%) WALS (%) AAA 15.91 21.68 AA 10.69 15.64 A 8.00 5.97 BBB 5.47 2.32 BB 2.78 2.00 B 2.11 2.00 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. S&P's operational, legal, and counterparty risk analyses remain unchanged since closing, and does not cap the ratings. The notes' sequential amortization has increased the available credit enhancement for the class A, B-Dfrd, C-Dfrd, and D-Dfrd notes. Table 2 Credit enhancement levels Class CE (%) CE as of previous review (%) A 16.7 11.9 B-Dfrd 10.3 7.4 C-Dfrd 6.4 4.6 D-Dfrd 2.4 1.7 E-Dfrd 0.0 0.0 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 because it is not available immediately to cover losses. S&P said, "Our review considered the transaction's strong asset performance, the class A to D-Dfrd notes' increased credit enhancement, and the high excess spread. We also considered the latest HPI data, which reflected the Netherlands' real estate market dynamics. We revised our overvaluation by decreasing our repossession market value decline adjustment. "In addition to our standard cash flow analysis, we considered sensitivity to reduced excess spread caused by prepayments, potential increased tail-end risk exposure, and each tranche's relative position in the fully sequential capital structure to determine our ratings on the class A to D-Dfrd notes. "Our upgrade of the class D-Dfrd notes to 'A+ (sf)' from 'BBB+ (sf)' reflects the implementation of our residential loans criteria and their increased credit enhancement to 2.4% from 1.7% since our previous review. We also considered the lower WAFF and WALS, and the transaction's good asset performance. "We affirmed our 'AAA (sf)' rating on the class A notes because the application of our criteria and related credit and cash flow analysis indicates that their available credit enhancement is commensurate with the rating. "Although the class B-Dfrd notes can achieve higher ratings in our cash flow analysis, we affirmed our 'AA+ (sf)' rating as we do not believe the presence of an interest deferral mechanism is consistent with the definition of a 'AAA' rating. "The class C-Dfrd notes could also withstand stresses at higher rating levels. However, based on this tranche's position in the payment waterfall and available credit enhancement relative to the other senior notes, we affirmed our 'AA (sf)' rating to distinguish between this class of notes and the class B-Dfrd notes. "The class E-Dfrd notes faced shortfalls at all rating levels under our standard assumptions. However, we affirmed our 'B- (sf)' rating to reflect the application of our 'CCC' ratings criteria. In our view, the payment of interest and principal on this tranche does not depend on favorable business, financial, and economic conditions. Our rating reflects that principal can be used to pay interest under certain conditions, the notes are interest deferrable, the transaction's performance is good, and the tranche's principal deficiency ledger is clear according to the most recent investor report." 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. We expect the European Central Bank's policy interest rates to stabilize at 2.5% in 2026. Our forecasts for Dutch unemployment for 2026, 2027, and 2028 are 4.1%, 4.2%, and 4.1%, respectively. Additionally, our forecasts for Dutch GDP are 1.3% for 2026, 2027, and 2028. "Furthermore, a decline in house prices typically affects the level of realized recoveries. In 2026, 2027, and 2028, we expect Dutch house prices to grow by 5.3%, and then increase by 4.5% and 5.0%, respectively. "We ran additional scenarios with increased defaults of 1.1x and 1.3x and a higher prepayment rate of 40%. Furthermore, we also considered an additional sensitivity to borrower concentration in our cash flow analysis. The results indicate no credit deterioration of the notes at the assigned rating levels." Domi 2022-1 B.V. is a Dutch RMBS transaction that closed in April 2022 and securitizes a pool of BTL loans secured on first-ranking mortgages in the Netherlands. ========= S P A I N ========= CEMENTOS MOLINS: S&P Assigns 'BB' LongTerm ICR, Outlook Stable -------------------------------------------------------------- S&P Global Ratings assigned its 'BB' long-term issuer credit rating to Spain-headquartered Cementos Molins S.A. (Molins) and its 'BB' issue rating and '3' recovery rating to the EUR500 million senior unsecured notes due 2033. S&P does not rate the EUR680 million TLA or the EUR225 million revolving credit facility (RCF). The stable outlook reflects S&P's expectation that Molins will reduce its leverage and maintain strong free operating cash flow (FOCF) through 2026-2027 due to its strengthened market position, steady profitability, and successful integration of Secil. Molins, a global leader in building materials and solutions, issued senior unsecured notes of EUR500 million to refinance a bridge loan of the same amount. This, alongside a EUR680 million term loan A (TLA) and available cash, funded the acquisition of Portugal-based Secil Companhia Geral de Cal e Cimento in March 2026. S&P projects Molins' S&P Global Ratings-adjusted debt to EBITDA at 2.3x-2.5x in 2026 following the acquisition of Secil, representing a moderately leveraged capital structure compared to low leverage before the transaction. Molins has a healthy market position and good geographic diversification. The group operates in Europe, South America, North Africa, and Asia. It has a leading position in the domestic market, Spain, with a 35% share in Catalonia, and 1.9 metric tons (mt) of production capacity, which drives revenue concentration in Europe, with 62% of reported sales in 2025. In South America, Molins is second-largest player with a 26% market share and 3.9 mt of production, contributing to about 28% of reported sales in 2025. The group's presence in Africa is concentrated in Tunisia, holding the No. 2 market position with a 21% share and 2.1 mt of production capacity. The group also has exposure to high-growth markets like Mexico, Colombia, and Bangladesh through joint ventures (JVs). The acquisition of Secil will widen the group's market presence, thanks to Secil's 36% market share and production capacity of 4.0 mt in Portugal and foothold in Brazil (6% and 2.4 mt), the only large market where Molins is not yet present. After the acquisition, Molins will be present in 18 countries with approximately 30 mt of capacity, up from 13 countries and 24 mt of capacity before. However, Molins is smaller (including the acquisition) than peers like Cementir Holding B.V. (BBB-/Stable/--) and Buzzi SpA (BBB+/Stable/A-2). Molins' vertical integration and product diversification will support business growth. The group is exposed to the cyclicality of the building materials industry. However, it has a well-established position in the Iberian peninsula and key emerging markets such as Argentina and Brazil, as well as vertical integration. This allows Molins to benefit from structural developments, including the long-term fundamental need for residential construction in Europe and ongoing infrastructure investments in Latin America. Molins' exposure to white cement provides slightly wider product diversification than cement manufacturers focused predominantly on grey cement production, like Titan S.A. (BB+/Positive/B). S&P expects the group's focus on sustainability and innovation, along with developments in its precast solutions business, to strengthen its market positions. Molins' innovative and sustainable products, like Escofet and Susterra, partly mitigate the competitive risk of its product mix's commoditized nature. Secil's offerings of sustainable construction solutions further complement this focus through continued investments in decarbonization-impact projects. Molins will likely sustain healthy profitability that is higher than peers'. S&P said, "We project S&P Global Ratings-adjusted EBITDA margins (including the acquisition) at 27.1%-29.7% in 2026 and 2027. This reflects a recovery after a slight drop in 2025 and support from Secil's solid margins. Consequently, we assess profitability as above average, which leaves Molins' margins higher than peers'. For example, we project Buzzi's S&P Global Ratings-adjusted EBITDA margin at 27.0%-27.7% in 2026-2027 and Cementir's at 24.0%-24.5%." S&P views Molins' customer base as highly diversified. No single customer or small group of customers makes up a material concentration of the group's revenue. Although contracts are predominantly short term and project-based, customer turnover is very low at about 1% per year, reflecting stable, long-standing commercial relationships. Long-term contracts are mainly associated with large infrastructure or complex projects and include indexation mechanisms to inflation-linked adjustments (such as steel, cement, or other input costs) and frequent price revisions (more regular repricing in high-inflation markets). Capital expenditure (capex) is in line with that of peers like Buzzi and Cementir. Although the industry typically displays high capital and energy intensity, Molins' capex to revenue was about 7.2% in 2025 and will likely increase to 8.9%-9.3% in 2026-2027 after the acquisition. S&P said, "Despite the company's plans to gradually increase its investments over the next few years to support its decarbonization targets, we expect its capex will remain largely in line with that of peers like Buzzi (8.5%-9.5% in 2026-2027) and Cementir (6.5%-7.5%). A major part of Molins' capex funds maintenance and optimization, focusing on sustainability, digitalization, and operational efficiency. We project pro forma capex (including acquisitions) at EUR195 million-EUR205 million annually in 2026 and 2027, with 65%-70% going toward maintenance and optimization and the rest to fund growth." S&P said, "We anticipate synergies from the Secil acquisition will support resilient operating performance in 2026 and 2027. We forecast revenue of EUR1.90 billion-EUR1.95 billion in 2026 and EUR2.10 billion-EUR2.14 billion in 2027, accounting for Secil contributing only nine months of revenue in 2026 and consolidating 33% of Molins' stake in Moctezuma joint venture. Growth will mainly stem from Secil's full-year contribution in 2027, higher volumes and prices in all key regions (Molins has demonstrated effective price management), and supportive economic growth, particularly in South America and Africa. We project S&P Global Ratings-adjusted EBITDA margins of 27.1%-29.7% in 2026 and 2027, driven by the contribution from higher-margin Secil, ongoing cost control and price pass-through, and run-rate net synergies from the enlarged group. "We expect Molins will sustain solid cash generation. The group has been moderately improving cash conversion over the past few years. Continued contributions from JVs, in particular in Mexico, and Secil's strong cash position will help the group maintain an adequate liquidity profile. We anticipate that the group will achieve FOCF of EUR180 million-EUR190 million annually in 2026 and 2027, as increased cash generation covers higher capex needs after the acquisition. "We anticipate steady deleveraging and a prudent financial policy over the next few years. We project S&P Global Ratings-adjusted debt to EBITDA at 2.3x-2.5x in 2026 and 2.1x-2.3x in 2027, primarily from strengthening EBITDA. This compares with company-calculated net leverage of approximately 2.4x in 2026 and 2.1x in 2027, which are within its long-term leverage ceiling of 2.5x under its financial policy. Furthermore, we expect the group will distribute regular dividends of EUR65 million-EUR75 million yearly in 2026 and 2027, consistent with its 30%-40% dividend payout policy. "The stable outlook reflects our expectation that Molins will reduce leverage and maintain strong FOCF through 2026-2027, due to its strengthened market position, steady profitability, and successful integration of Secil." S&P could downgrade Molins if: -- FOCF to debt falls below 10%; -- Net leverage approaches 3.5x; or -- Molins' stake in Moctezuma declines enough to alter S&P's assessment of the JV's strategic importance and economic benefit for the group. S&P could upgrade Molins if: -- FOCF to debt approaches 15% sustainably; -- Leverage remains below 2.5x; -- Profitability is steady, with S&P Global Ratings-adjusted EBITDA margins of at least 28% in the next few years; -- Molins maintains a prudent financial policy and consistent track record of deleveraging; and -- The group successfully integrates Secil. ===================== S W I T Z E R L A N D ===================== ALLWYN AG: S&P Assigns 'BB' LongTerm ICR, Outlook Stable -------------------------------------------------------- S&P Global Ratings assigned its 'BB' long-term issuer credit rating to Allwyn AG, with a stable outlook. At the same time, S&P withdrew its 'BB' issuer credit rating on Allwyn International AG. S&P rates about EUR5 billion in debt instruments issued by group entities; its issue ratings on this debt are unchanged at 'BB', and its recovery ratings are still '3', indicating recovery prospects of 60%. S&P said, "The stable outlook indicates that we expect the group's cash generation to improve thanks to its recent acquisitions. Therefore, we anticipate that the group will be able to rapidly reduce its adjusted leverage to comfortably below 5x by 2027, from close to 5x as of year-end 2026." On March 24, 2026, Allwyn completed its merger with OPAP S.A. (BB/Stable/--). Allwyn AG is now the ultimate parent of the group, the guarantor of all the debt instruments issued by the group's financing vehicles, and the entity that will release the group's consolidated financial statements in future. The rating assignment to Allwyn AG follows the completed merger with OPAP. Allwyn AG has become the group's ultimate parent and will release the group's consolidated financial statements in future. Allwyn AG replaced Allwyn International AG in the restricted group, directly owns the group's two financing vehicles (Allwyn Entertainment Financing (UK) PLC and Allwyn Entertainment Financing (US) LLC) and acts as guarantor for the liabilities issued by the financing companies. It has also replaced Allwyn International AG as issuer of the unrated bank loans the group raised in 2025 totaling about EUR2.5 billion. The group's 2025 results including full consolidation of OPAP were broadly in line with our expectations. In 2025, Allwyn reported revenue of EUR9.1 billion, about EUR300 million more than we previously forecast. Its S&P Global Ratings-adjusted EBITDA was EUR1.2 billion, which was in line with S&P's previous forecast. Adjusted EBITDA margin increased to 12.7% in 2025, from 11.8% in 2024, while free operating cash flow (FOCF) rose to EUR490 million from EUR210 million. S&P now fully consolidates OPAP's financials into Allwyn's adjusted metrics starting 2025 (pro forma). In addition, it now fully consolidates Allwyn's operating subsidiary in Austria, CASAG, based on the group's track record of maintaining a stable dividend and financial policy on CASAG and the shareholder agreements between Allwyn and the largest noncontrolling shareholder of CASAG, government-related entity OBAG, which suggest to us that Allwyn retains a degree of control over CASAG's strategy and cash flow. Improved profitability and rising free cash flow generation enabled the Allwyn group to maintain a stable cash balance. Despite sizable outflows linked to the group's aggressive inorganic growth strategy, the renewal of its Italian lottery license, and high dividends in 2025, adjusted debt to EBITDA remained in line with our expectations, at 3.9x. S&P forecasts that Allwyn's leverage will deteriorate slightly in 2026, to about 5x, because of its debt-financed acquisition of a 62.3% stake in PrizePicks for about $1.5 billion, combined with the EUR456 million it paid in cash exit rights following the merger with OPAP. As part of the OPAP transaction, Allwyn set net leverage targets for the group at about 2.5x, based on its own adjusted metrics. This is equivalent to S&P Global Ratings-adjusted debt to EBITDA of 3.5x-4.0x. S&P anticipates that the group will strongly adhere to this financial policy and that it will progressively reduce leverage from 2027 onward, thanks to stronger free cash flow following the merger with OPAP and integration of PrizePicks. Allwyn's decision not to acquire Novibet will slow its expansion in online sports betting and gaming, but did not have a material effect on our credit metrics. The withdrawal was announced on March 4, 2026, and followed a review by the Hellenic Competition Commission. S&P said, "The stable outlook indicates that, even though the PrizePicks acquisition required an increase in debt and weighed on Allwyn's credit metrics, we expect the merger with OPAP to reinforce the group's quality of earnings and help it sustain its profitability. As such, we anticipate that adjusted debt to EBITDA will approach 5x at year-end 2026 before returning to 4x-5x by 2027. We also forecast that FOCF to debt will stabilize at about 10% in 2026 and will improve thereafter. "A temporary deterioration in credit measures caused by the large upfront license payments needed to renew important lottery concessions or secure new contracts might not lead to a downgrade if we think the license will preserve or strengthen the company's competitive position, ensuring adequate profitability and free cash flow generation." S&P could lower its rating on Allwyn AG over the next 12-18 months if: -- Adjusted debt to EBITDA increases above 5x; and -- Adjusted FOCF to debt deteriorates below 5% for a prolonged period. This could occur if operating performance is weaker than expected, for example, because changes in regulatory regimes have a greater impact, if the group fails to turn around U.K. national lottery's profitability, or if Allwyn's recent acquisitions cause it to incur higher-than-expected integration costs. The rating could also come under pressure if the group pursued material debt-financed acquisitions or a more-generous shareholder distribution policy, and this is not offset by a commensurate improvement in free cash flow. S&P could raise the rating on Allwyn if the company outperforms its base-case scenario such that S&P Global Ratings-adjusted debt to EBITDA improves to below 4x and FOCF to debt stay above 10% over a sustained period. This would happen if Allwyn demonstrated a clear path to deleveraging in line with its stated financial policy as it smoothly integrates its recent acquisitions while maintaining its largely predictable cash flows from the lottery segment, allowing the group to comfortably finance shareholders distributions, including distribution to minority shareholders. =========================== U N I T E D K I N G D O M =========================== AERALIS LTD: Buchler Phillips Appointed as Joint Administrators --------------------------------------------------------------- Aeralis Ltd was placed into administration in the Business and Property Courts of England and Wales, Insolvency and Companies List (ChD), Court Number 003777 of 2026. Joanne Milner and David Buchler of Buchler Phillips Limited were appointed as Joint Administrators on May 15, 2026. The company, previously known as Dart Jet Ltd, was into specialized design activities. Its registered office is Bury Lodge, Bury Road, Stowmarket, Suffolk, IP14 1JA. Its principal trading address is The Quadrant, 2440 Aztec West, Almondsbury, Bristol, BS32 4AQ. The Joint Administrators can be contacted at: Joanne Milner Buchler Phillips Limited 64 North Row London W1K 7DA -- and -- David Buchler Buchler Phillips Limited 64 North Row London W1K 7DA For further information, contact: Contact: Bea Vakharia Tel: 020 7647 9011 CASTLE DONNINGTON: CMB Partners & Opus Named as Administrators -------------------------------------------------------------- Castle Donnington Limited was placed into administration in the High Court of Justice, Court Number CR-2026-003681. Adam Price of CMB Partners UK Limited and Ben Stanyon of Opus Restructuring LLP were appointed as Joint Administrators on May 12, 2026. The company was into fund management activities. Its registered office is Woodgate House, 2-8 Games Road, Cockfosters, EN4 9HN. Its principal trading address is Suite 4 Stanmore Towers, 8-14 Church Road, Stanmore, HA7 4AW. The Joint Administrators can be contacted at: Adam Price CMB Partners UK Limited 49 Tabernacle Street London EC2A 4AA -- and -- Ben Stanyon Opus Restructuring LLP First Floor Milwood House 36B Albion Place Maidstone Kent ME14 5DZ For further information, contact: Alternative contact: Ellis Brealey Tel: 020 7377 4370 Email: info@cmbukltd.co.uk Contact: The Joint Administrators DEVONSHIRE PARK: BTG Begbies Appointed as Administrators -------------------------------------------------------- Devonshire Park Hotel Holdings Limited was placed into administration in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency & Companies List (ChD), Court Number CR-2026-003734. Andrew Andronikou and Andrew Hosking of BTG Begbies Traynor (London) LLP were appointed as Joint Administrators on May 14, 2026. The company engaged in leisure, particularly in hotels and accommodation. Its registered office and principal trading address is Devonshire Park Hotel, 27-29 Carlisle Road, Eastbourne, BN21 4JR. The Joint Administrators can be contacted at: Andrew Andronikou Andrew Hosking BTG Begbies Traynor (London) LLP Level 33 One Canada Square London E14 5AB For further information, contact: Contact: Chloe Henshaw Email: Chloe.Henshaw@btguk.com Tel: 020 7516 1500 BTG Begbies Traynor (London) LLP FRONTIER MORTGAGE 2026-1: S&P Assigns (P)BB(sf) Rating on X Notes ----------------------------------------------------------------- S&P Global Ratings assigned its preliminary credit ratings to Frontier Mortgage Funding 2026-1 PLC's class A NRR loan note and class A, B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, F-Dfrd, G-Dfrd, and X-Dfrd notes. The class A notes and class A NRR loan note are collectively referred to as the "class A notes" and rank pro rata and pari passu. At closing, the issuer will also issue unrated class Z notes, S certificates, RC1 and RC2 residual certificates, and a VRR loan note. Frontier Mortgage Funding 2026-1 securitizes a £1,380 million portfolio of first-lien owner-occupied (92%) and buy-to-let (8.0%) residential mortgage loans located in the U.K. Santander UK PLC originated the loans in the pool between 1996 and 2026, with a significant portion of the pool comprising legacy loans, 26.9% of which were originated before 2014. Although the loans were initially classified as prime, the pool exhibits some nonconforming features. Overall, 17.5% of the loans are in arrears, including 8.5% that are delinquent by over 90 days. About one-third of the pool was originated over 10 years ago, leading to a weighted-average seasoning of just under nine years for the entire pool. At closing, the class A and B-Dfrd notes (when most senior) will benefit from a liquidity facility, which will be 1.5% of the higher of the class A notes' or class B-Dfrd notes' balance. This facility will amortize in line with the class A and B-Dfrd notes. Santander UK will service the loan portfolio. As an established and leading U.K. servicer, S&P considers its underwriting criteria to be among the best in the market. S&P said, "Our preliminary ratings address the timely payment of interest and the ultimate payment of principal on the class A notes and the ultimate payment of interest and principal on the class X-Dfrd notes. Our ratings also address timely receipt of interest on the class B-Dfrd to G-Dfrd notes when they become the most senior class of notes outstanding." Most of the pool (83%) will bear a fixed interest rate, which will switch to a floating interest rate at a later stage. Given the rated notes will receive a floating coupon based on compounded daily SONIA, the transaction will be exposed to interest rate risk. To address this risk, the issuer will enter into a fixed-floating swap agreement. Based on S&P's initial analysis, it does not anticipate any rating constraints under our counterparty, operational risk, or structured finance sovereign risk criteria. Preliminary ratings Class Prelim rating* Class size (%) A NRR loan note§ AAA (sf) TBD A§ AAA (sf) TBD B-Dfrd AA- (sf) 5.00 C-Dfrd A- (sf) 2.50 D-Dfrd BBB- (sf) 1.50 E-Dfrd BB (sf) 1.00 F-Dfrd B- (sf) 0.50 G-Dfrd CCC (sf) 0.50 Z NR 0.50 X-Dfrd BB (sf) 1.00 S Certs† NR N/A RC1 NR N/A RC2 NR N/A VRR Loan Note** NR N/A *S&P's ratings address timely receipt of interest and ultimate repayment of principal for the class A NRR loan note, and A notes, and the ultimate payment of interest and principal on the other rated notes. Its ratings also address the timely receipt of interest on the rated notes when they become most senior outstanding. Any deferred interest is due at legal final maturity. §The class A notes and class A NRR loan note are, together, the "class A notes", and rank pro rata and pari passu among themselves. The split between the two is to be determined. †From the step-up date, the S certificates will pay 0.10% per annum on the outstanding collateral balance paid pro rata with the class A debt. **The VRR loan note is issued for risk retention. NR--Not rated. N/A--Not applicable. TBD –To be determined. PURPOSE LED: Marshall Peters Appointed as Joint Administrators -------------------------------------------------------------- Purpose Led Success Modelling Ltd, trading as PLSM, was placed into administration in the Court of Session Scotland, Court Number P512/26. Lee Morris and John Thompson, both of Marshall Peters, were appointed as Joint Administrators on May 12, 2026. The company engaged in education. Its registered office is 5 South Charlotte Street, Edinburgh, EH2 4AN. Its principal trading address is 6 103 Hutcheson Street, Glasgow, G1 1SN. The Joint Administrators can be contacted at: Lee Morris Marshall Peters Heskin Hall Farm Wood Lane Heskin Preston PR7 5PA -- and -- John Thompson Marshall Peters Heskin Hall Farm Wood Lane Heskin Preston PR7 5PA For further information, contact: Grace O'Brien Offices of Marshall Peters Tel No: 01257 452021 Email address: graceobrien@marshallpeters.co.uk Address: Heskin Hall Farm Wood Lane, Heskin Preston, PR7 5PA ********* 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. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. * * * End of Transmission * * *