260626.mbx

260626.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 Friday, June 26, 2026, Vol. 27, No. 127 Headlines A U S T R I A CONSTANTIA FLEXIBLES: Fitch Assigns 'B(EXP)' IDR, Outlook Positive D E N M A R K LIQTECH INTERNATIONAL: Marathon Micro Fund Holds 9.1% Stake F R A N C E ALTICE FRANCE 3: Moody's Alters Outlook on 'Caa1' CFR to Positive BISCUIT HOLDING: Fitch Cuts IDR to 'RD', Then Hikes IDR to 'CCC' FCT YOUNI 2026-1: Fitch Assigns 'BB(EXP)sf' Rating on Class E Notes FCT YOUNI 2026-1: Moody's Assigns (P)B1 Rating to Class E Notes MISTRAL HOLDCO: Fitch Publishes 'B' LongTerm IDR, Outlook Stable G E R M A N Y HT TROPLAST: Moody's Rates New EUR430MM Senior Secured Notes 'B2' I R E L A N D ARES EUROPEAN XIX: Fitch Affirms 'B-sf' Final Rating on Cl. F Notes BAIN CAPITAL 2018-1: Fitch Withdraws Dsf Rating on Class F Notes BAIN CAPITAL 2021-2: Moody's Affirms B3 Rating on EUR9.8MM F Notes CANYON EURO 2026-1: Fitch Assigns B-sf Final Rating on Cl. F Notes CAPITAL FOUR XII: Fitch Assigns 'B-sf' Final Rating on Cl. F Notes DRYDEN 69 EURO 2018: Moody's Affirms B3 Rating on Cl. F-R Notes FERNHILL PARK: Fitch Assigns 'B-sf' Final Rating on Class F-R Notes HENLEY CLO XVII: Fitch Assigns 'B-(EXP)sf' Rating on Class F Notes TIKEHAU CLO VI: Moody's Affirms B3 Rating on EUR11.6MM Cl. F Notes I T A L Y BRIGNOLE CQ 2024: Fitch Affirms 'BB+sf' Rating on Class X Notes DOLCETTO HOLDCO: Moody's Alters Outlook on 'B3' CFR to Positive FLOS B&B: Fitch Puts 'B' LongTerm IDR on Watch Positive VIMERCATI SPA: July 1 Deadline Set for Expressions of Interest K A Z A K H S T A N SOCIAL-ENTREPRENEURIAL CORP: Fitch Assigns BB IDRs, Outlook Stable L U X E M B O U R G CULLINAN HOLDCO: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable EUROPEAN MEDCO 3: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable MELLENU HOLDING: Fitch Assigns 'B' LongTerm IDR, Outlook Positive P O R T U G A L CONSUMER TOTTA 4 2026: Moody's Gives B1 Rating to EUR9.6MM E Notes GEMMA STC: Fitch Assigns 'BB-sf' Final Rating on Class E Notes R U S S I A ARTEL ELECTRONICS: Fitch Affirms 'B' LongTerm IDR, Outlook Negative NAVOI MINING: Fitch Alters Outlook on 'BB' Long-Term IDR to Pos. U N I T E D K I N G D O M AGPTC HEALTHCARE: BDO LLP Appointed as Joint Administrators ALDERLEY GROUP: MHA Advisory Appointed as Joint Administrators AUBURN 15: Fitch Alters Outlook on 'B+sf' Rating to Stable CURZON SQUARE: FRP Advisory Appointed as Joint Administrators EC3 BROKERS: Insurer Client Money Proof Bar Date Set for Sept. 18 ENQUEST PLC: Fitch Puts 'B' LongTerm IDR on Watch Positive FRONTIER MORTGAGE 2026-1: Fitch Assigns B-sf Rating on Cl. G Notes HERMITAGE 2026: Fitch Assigns 'BB+(EXP)sf' Rating on Class E Notes J K ROOFING: KRE (North) Appointed as Joint Administrators LPPC ENVIRONMENTAL: BTG Begbies Appointed as Administrator MACKOY LIMITED: Quantuma Advisory Appointed as Joint Administrators NEW FARM: Forvis Mazars Appointed as Joint Administrators OBAN CARDS 2026-1: Fitch Assigns 'BB+sf' Final Rating on Cl. E Debt PEGASUS WAREHOUSING: Leonard Curtis Appointed as Administrators SMALL BUSINESS 2026-1: Fitch Assigns 'BBsf' Rating on Class C Notes TENETCONNECT SERVICES: Appoints Interpath as Joint Liquidators TRAVIS PERKINS: Fitch Affirms & Then Withdraws 'BB+' LongTerm IDR X X X X X X X X [] BOOK REVIEW: Black Monday - The Stock Market Catastrophe - - - - - ============= A U S T R I A ============= CONSTANTIA FLEXIBLES: Fitch Assigns 'B(EXP)' IDR, Outlook Positive ------------------------------------------------------------------ Fitch Ratings has assigned Constantia Flexibles GmbH an expected Long-Term Issuer Default Rating (IDR) of 'B (EXP)' with Positive Outlook. Fitch has also assigned instrument ratings of 'B+(EXP)' with Recovery Ratings of 'RR3' to its proposed senior secured debt totaling EUR1.9 billion. The final ratings are contingent on the receipt of final documentation conforming materially to information already received, including details on amount and security package. The IDR reflects Constantia's high leverage, albeit with deleveraging capacity as earnings improve. The rating is supported by a solid business profile, the company's leading position in flexible packaging, established customer relationships and moderate concentration risk. The Positive Outlook reflects its expectation for deleveraging to the positive sensitivity of 6.0x in 2027 and below in 2028, supported by modest but sustainable revenue growth and strong free cash flow (FCF) with limited volatility. Key Rating Drivers Leverage Constrains Rating: Fitch expects Fitch-adjusted EBITDA gross leverage to remain high, albeit improving, at 6.5x in 2026, 6x in 2027, and to decline below 6x from 2028 onwards, from 7.5x in 2025. Deleveraging is likely to be driven by stronger profitability rather than debt reduction. Fitch expects factoring and supply chain finance to remain in line with the 2025 balance and to add around 1.0x to Fitch-adjusted leverage in 2026. Improving FCF Generation: Fitch expects Constantia's FCF generation to strengthen, with the Fitch-defined FCF margin increasing to 1.9% in 2026, 4.2% in 2027 and 5.1% in 2028. This will be supported by higher EBITDA, limited working capital outflows, the absence of restructuring charges from 2027, lower growth capex from 2026 and no dividend payments. Fitch forecasts FCF of about EUR100 million-120 million in 2027-2028. However, Fitch believes excess cash is more likely to be used for acquisitions rather than voluntary debt repayment. EBITDA Growth: Fitch forecasts Fitch-adjusted EBITDA to increase to about EUR354 million in 2026 from EUR305 million in 2025. Growth will be driven by the full run-rate from Aluflexpack acquisition, integration synergies, recently added growth assets and market growth. Cost-saving measures beyond integration should more than offset higher operating costs linked to business expansion in 2026. Fitch forecasts EBITDA of EUR380 million in 2027 and EUR395 million in 2028, supported by integration synergies and organic growth. Fitch-adjusted EBITDA margin should improve to 16% or above from 2027, from 14% in 2025. Limited Earnings Volatility: Constantia is exposed to changes in raw material (mainly aluminum and resin) and energy prices. EBITDA volatility is limited by contractual cost pass-through mechanisms covering about 85%-90% of contracts. This was evident during the period of high inflation, elevated energy costs and the imposition of US tariffs, and Fitch believes the current rise in input costs will be managed in a similar way. The company's strong customer relationships and reliable supply record (including during the pandemic) support pricing flexibility. The small share of packaging costs in customers' end-product prices also supports its ability to pass on cost increases. Acquisition Enhances Scale and Diversification: The acquisition of Aluflexpack in March 2025 strengthens Constantia's position in European flexible packaging, adding about EUR350 million of revenue and EUR35 million of EBITDA, according to management. Fitch believes the transaction improves the company's product and geographical diversification and should support margin expansion through procurement, commercial, operational and administrative synergies, as well as increased in-sourcing. Fitch expects synergy realisation of about EUR30 million in 2026 and 2027, following the EUR9 million recorded in 2025. Solid Business Profile: Constantia's business profile is supported by its leading market position in flexible packaging, loyal customer relationships and a high share of multi-year contracts. Most of its end-markets across the pharma and consumer divisions are fairly defensive as they cater to the basic needs of end-consumers. Fitch also views the company's private label offering as providing some resilience in weaker consumer environments. These strengths are offset by its smaller scale than larger peers, such as Amcor plc (BBB+/Stable) and Mondi Plc. Its focus on mono-material and easily recyclable packaging in Europe positions it well for tighter regulatory requirements. One-Notch Uplift for Senior Secured: Constantia's proposed senior secured debt is rated one notch above the IDR to reflect its good recovery prospects. The instruments rank pari passu with its proposed EUR305 million revolving credit facility (RCF), In accordance with Fitch's criteria, the recovery waterfall analysis includes super senior factoring and senior secured supply chain financing. Peer Analysis Constantia's business profile is stronger than that of most Fitch-rated packaging peers in the sub-investment grade categories. Constantia's product and end-market diversification is broader than that of Ardagh Metal Packaging S.A. (B/Stable), Fischbach MidCo III GmbH (B/Stable), Nordic Paper Holding AB (B+/Positive) and CANPACK Group Inc, (BB/Negative), which are more focused on one or two product lines. Constantia also benefits from higher barriers to entry and stronger market positioning, supported by strict requirements in pharmaceutical and food packaging and its leading flexible packaging position. However, its business profile remains weaker than that of larger, more diversified peers such as Amcor plc (BBB+/Stable) and Mondi plc, due mainly to its smaller scale. Constantia is differentiated by strong contractual cost pass-through mechanism and ongoing cost-saving measures, which support strong FCF generation. Its projected FCF margins of 2.1%-5.1% in 2026-2028 compare favourably with Nordic Paper's (which Fitch forecasts to turn positive only in 2027), CANPACK's (likely to generate positive FCF from 2028), Smurfit Westrock plc's (BBB+/Stable; 1.9%-3.3%) and Amcor's (3.8%-4.4%). These differences reflect product mix, varying vertical integration, operating efficiency, capex cycles and dividend policies. In contrast, Constantia's EBITDA gross leverage of 6.5x in 2026, with some improvement thereafter, is weaker than FischBach's 4.9x and Nordics Paper's 3.1x and broadly in line with Ardagh Metal Packaging's 6.7x. This weaker leverage profile remains the main constraint on the rating relative to peers'. Fitch’s Key Rating-Case Assumptions - Revenue to grow 5% in 2026 and 3% in 2027-2028, supported by the first 12-month contribution of Aluflexpack in 2026, additional volumes driven by acquired growth assets and organic growth - EBITDA margin to increase to 15.5% in 2026 and 16.2%-16.3% in 2027-2028 driven by integration synergies, higher volumes and strict cost management supported by the contractual cost pass-through mechanism - Working capital consumption at 0.8% of revenue in 2026 and 0.3% in 2027-2028 - Capex to decline to 5.5% of revenue in 2026, 4.3% in 2027 and 3.8% on completion of growth capex - No M&As - No dividends - Repayment of subsidiary debt of EUR22 million in 2026, following the completion of refinancing 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 ('bb', Moderate), financial structure ('ccc+', Higher), and financial flexibility ('bb+', Moderate). 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 - The recovery analysis assumes that Constantia would be reorganised as a going concern in bankruptcy rather than liquidated. - Fitch assumes a 10% administrative claim. - Factoring facilities backed by receivables rank super senior while supply chain financing ranks senior secured, in line with Fitch's criteria. - The expected senior secured RCF of EUR305 million is assumed to be fully drawn in post-restructuring and ranks the same as expected senior secured debt of EUR1,900 million. - Other debt of EUR56 million, expected to be outstanding at closing, is fully cash-collateralised and ring-fenced from Constantia or its subsidiaries. The loan is excluded from the waterfall analysis, as it will be repaid from the cash collateral and therefore will not affect recoveries available to other creditors. - Its going-concern (GC) EBITDA estimate of EUR300 million, including Aluflexpack, reflects its view of a sustainable, post-reorganisation EBITDA on which Fitch bases the valuation of the company. - Fitch uses an enterprise value multiple of 5.5x to calculate a post-reorganisation valuation. This reflects Constantia's leading position in its end-markets, long-term relationships with blue-chip customers and high entry barriers especially for pharma packaging. - The waterfall analysis output for the senior secured term loan B (TLB) and other senior secured debt generated a ranked recovery in the 'RR3' band, indicating an instrument rating of 'B+'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA gross leverage above 7.5x - FCF margin consistently negative - EBITDA interest coverage below 2.0x Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA gross leverage below 6.0x - FCF margins sustainably neutral to positive - EBITDA interest coverage above 2.5x Liquidity and Debt Structure At end-2025, Constantia had EUR158 million of cash (adjusted by Fitch for intra-year working capital changes of EUR50 million) and an undrawn RCF of EUR200 million. Fitch expects EUR119 million of Fitch-adjusted cash at end-2026 and EUR305 million of the undrawn RCF if the refinancing is completed as planned. Fitch forecasts Constantia to generate strong FCF of EUR44 million in 2026, EUR100 million in 2027 and EUR123 million in 2028. The new capital structure will consist of the TLB and other senior secured debt totaling EUR1.9 billion with long-dated maturities. Constantia also supports its working capital management with factoring and supply chain financing. Issuer Profile Constantia is an Austrian flexible packaging manufacturer with an aluminum and film foil-based packaging products offering. It serves well-known global customers across the pharma and consumer end-markets. 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 Constantia. 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 ----------- ------ -------- Constantia Flexibles GmbH LT IDR B(EXP) Expected Rating senior secured LT B+(EXP) Expected Rating RR3 ============= D E N M A R K ============= LIQTECH INTERNATIONAL: Marathon Micro Fund Holds 9.1% Stake ----------------------------------------------------------- Marathon Micro Fund, LP disclosed in a Schedule 13G filed with the U.S. Securities and Exchange Commission that as of June 10, 2026, it beneficially owns 3,000,000 shares with 3,000,000 sole voting power, 0 shared voting power, 3,000,000 sole dispositive power, and 0 shared dispositive power of LiqTech International Inc's Common Stock, Par Value $.001, representing 9.1% of the outstanding shares. Marathon Micro Fund, LP may be reached through: James G. Kennedy, President 4 North Park Drive Suite 106 Hunt Valley, MD 21030 Tel: (410) 329-1522 A full-text copy of Marathon Micro Fund, LP's SEC report is available at https://tinyurl.com/yw3k7h3w About LiqTech International Ballerup, Denmark-based LiqTech International, Inc. is a clean technology company that provides state-of-the-art gas and liquid purification products by manufacturing ceramic silicon carbide filters and membranes as well as developing industry-leading and fully automated filtration solutions and systems. Sadler, Gibb & Associates, LLC, based in Draper, Utah, and serving since 2018, included a "going concern" qualification in its report dated February 27, 2026, attached to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, citing that Company's recurring losses and negative operating cash flows raise substantial doubt about the Company's ability to continue as a going concern. As of March 31, 2026, the Company had $24.95 million in total assets, $17.40 million in total liabilities, and $7.55 million in total equity. =========== F R A N C E =========== ALTICE FRANCE 3: Moody's Alters Outlook on 'Caa1' CFR to Positive ----------------------------------------------------------------- Moody's Ratings has affirmed Altice France Lux 3's (Altice France Lux) Caa1 long-term corporate family rating, the Caa1-PD probability of default rating, and the Caa3 instrument rating on the existing senior unsecured notes issued by Altice France Lux. Concurrently, Moody's have affirmed the Caa1 rating on the backed senior secured notes and senior secured bank credit facilities issued by the fully owned subsidiary Altice France SAS (Altice France). Moody's have changed the outlook for both entities to positive from stable. The rating action follows the announcement that a consortium comprising Orange (Baa1 stable), Bouygues Telecom SA (a subsidiary of Bouygues S.A., A3 stable) and Iliad Holding S.A.S. (Ba3 positive) signed a Memorandum of Understanding (MoU) with Altice France[1], for the joint acquisition of SFR, France's second-largest telecommunications operator. Under the terms of the MoU, the total enterprise value of the SFR assets amounts to EUR20.35 billion, split approximately 42% for Bouygues Telecom SA (~EUR8.5 billion), 31% for Iliad Holding S.A.S. (~EUR6.3 billion) and 27% for Orange (~EUR5.6 billion). The definitive legal documentation is expected to be signed in the second half of 2026, with completion anticipated in the second half of 2027, subject to regulatory approvals, including competition clearance. "The outlook change to positive reflects the significant deleveraging Moody's expects in Altice France Lux's credit metrics should the transaction complete," says Ernesto Bisagno, a Moody's Ratings Vice President – Senior Credit Officer and lead analyst for Altice France Lux. "Moody's expects the vast majority of the proceeds from the SFR disposal to be used to repay Altice France Lux's outstanding debt, materially strengthening its credit profile," adds Mr. Bisagno. RATINGS RATIONALE The positive outlook is solely driven by Moody's expectations that the vast majority of Altice France Lux's outstanding debt will be repaid from the proceeds of the SFR disposal upon completion of the transaction. Absent this transaction, Altice France's underlying operating performance remains weak, with revenue declining 9.1% and EBITDA falling 13.1% year-over-year in Q1 2026. The deterioration reflects continued pressure on both mobile and fixed segments, driven by lower volumes and pricing pressure amid intense competition. As a result, Moody's expects its Moody's adjusted leverage to increase above 6.5x in 2026, from 5.7x in 2025. Based on those assumptions, Moody's estimates Altice France's interest coverage — defined as (EBITDA minus capital expenditure) over interest expense — to weaken further to around 0.6x in 2026, from 0.8x in 2025. There is also a risk that Altice France's operating performance could deteriorate further ahead of closing, as the prolonged uncertainty surrounding the SFR disposal may negatively affect customer retention. The Caa1 rating reflects (1) the company's position as one of the leading convergent companies in the French market, (2) its scale and ranking as the second largest telecom operator in France, and (3) its integrated business profile including a 50.01% ownership in Xpfibre, the largest independent fibre company in France. The rating also reflects (1) the highly leveraged capital structure, and the weak free cash flow generation; (2) the ongoing earnings decline; and (3) the highly competitive nature of the French market. LIQUIDITY Altice France's liquidity is adequate, underpinned by the expectation that the company will monetize its SFR assets upon completion of the disposal. However, the underlying liquidity position has weakened, with pro forma liquidity declining to approximately EUR0.77 billion at the end of Q1 2026 with full utilization of the EUR1.2 billion senior secured revolving credit facility (RCF), reflecting the continued deterioration in operating performance and negative free cash flow generation. The RCF is subject to a springing (40% drawings) leverage covenant of maximum of 6.5x. With net leverage of 6.0x at March 2026 (based on the L2QA), there is limited headroom under the RCF. Upcoming debt maturities include EUR922 million euro equivalent due in 2028 in senior secured term loan Bs. Moody's expects negative free cash flow of EUR400 million each year over 2026-27. STRUCTURAL CONSIDERATIONS Altice France's capital structure is an all-senior secured structure, with bank credit facilities (including RCF) and senior secured notes ranking pari passu with each other and with the company's trade payables. The Caa1 rating of the bond and bank credit facilities at Altice France is in line with the CFR given that the amount of senior unsecured debt at the holding level is modest. The Caa3 rating of Altice France Lux 3 senior unsecured notes reflects the structural subordination of these holding-company notes to bond and bank senior debt at Altice France. RATIONALE FOR POSITIVE OUTLOOK The positive outlook reflects Moody's expectations that the vast majority of Altice France Lux's outstanding debt will be repaid from the proceeds of the SFR disposal upon completion of the transaction. The positive outlook also assumes that liquidity will remain adequate. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Further upward rating pressure would materialize upon completion of the transaction. Absent this transaction, upgrade rating pressure is unlikely but could develop if Altice France demonstrates sustained improvement in operating performance and improvement in cash flow generation, with interest coverage — defined as EBITDA minus capital expenditures over interest expense — rising well above 1.0x. A potential upgrade would also be contingent on the company maintaining adequate liquidity. Conversely, downward rating pressure could develop if operating performance fails to recover or cash flow generation weakens, thereby increasing default risk. A deterioration in liquidity could also lead to a downgrade. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Telecommunications Service Providers published in December 2025. The Caa1 rating of Altice France Lux is two notches below the scorecard-indicated outcome of B2, reflecting the greater emphasis placed on the company's weak cash flow generation, which is primarily driven by elevated interest expenses and subdued earnings. COMPANY PROFILE Altice France is France's second-largest telecommunications operator, operating under the SFR brand. At the end of 2025, the company had 19.4 million mobile subscribers and approximately 6 million fixed-line subscribers, of which around 5.4 million were fibre connections, representing 90% of the fixed base. In 2025, Altice France reported revenue of EUR9.2 billion (down 8.4% year-over-year) and adjusted EBITDA (as defined by the company) of EUR2.9 billion. BISCUIT HOLDING: Fitch Cuts IDR to 'RD', Then Hikes IDR to 'CCC' ---------------------------------------------------------------- Fitch Ratings has downgraded Biscuit Holding SAS's (BH) Long-Term Issuer Default Rating (IDR) to 'Restricted Default' (RD) from 'CC' on the completion of its debt exchange offer. Fitch has subsequently upgraded the IDR to 'CCC'. Fitch has also upgraded BH's first-lien secured rating to 'CCC+' from 'CCC-' and its second-lien debt to 'CC' from 'C'. The Recovery Ratings remain 'RR3' and 'RR6', respectively. The downgrade reflects Fitch's view that BH has conducted a distressed debt exchange (DDE). The subsequent IDR upgrade reflects its expectation that BH's leverage metrics will remain excessive through 2029. This suggests that the updated capital structure still entails heightened refinancing risk, unless there is a material recovery in operating performance, which remains subject to execution risk. Key Rating Drivers Debt Restructuring Completed: Fitch views BH's completed debt restructuring as a DDE, as the amend and exchange to its debt terms constituted a material reduction of the original terms, including extension of maturity and lowering of lien priority and was conducted to avoid a probable default. The plan contemplates an extension of the maturity of the EUR696 million term loan B (TLB) and EUR85 million revolving credit facility (RCF) by 3.5 years, to 2030 from 2026; the subordination of the EUR130million (originally EUR80 million) pari passu notes to first-lien debt, from previously pari passu ranking with the TLB and RCF; and changing the EUR150 million second-lien loan's payment terms from cash to non-cash. Unsustainable Capital Structure: Fitch expects BH's leverage to remain above 9x in 2026-2029. Deleveraging prospects are constrained by a material payment-in-kind (PIK) component in the new capital structure, representing around 25% of total debt, which will be capitalising. Fitch expects a gradual operational rebound over the medium term, but under its current assumptions this is unlikely to be sufficient to drive a meaningful reduction in leverage, given the still high debt burden following the restructuring. High Execution and Refinancing Risks: Fitch believes execution risks around the planned turnaround strategy remain high, given the record of weak operating environment with its expectations of a material drop in EBITDA towards EUR93 million (2024: EUR138 million) in 2025. Fitch assumes that cost pressures amid a constrained ability to pass on cost inflation to consumers will be only partially mitigated by cost-efficiency measures across procurement and commercial initiatives. This may constrain the pace of operating recovery in 2026-2027 resulting in a slower than previously expected profit recovery, delaying deleveraging and suggesting still high refinancing risks. Neutral to Positive FCF: Fitch expects negative free cash flow (FCF) in 2026 before gradually recovering to positive territory from 2027 as EBITDA margins gradually trend towards 9% (2025E: 7.9%) and capex moderates at about 2.5% of sales. Fitch expects that BH's FCF will be supported by enhanced flexibility from the capitalisation of cash interest of EUR30 million to EUR35 million in 2026-2027. A weaker operating performance and increased need in working capital may lead to a deterioration in liquidity. Recovery Dependent on Volume Rebound: Fitch expects EBITDA margin recovery pace will depend on volume recovery, gradual pass through, product mix improvement and efficiency initiatives. Fitch assumes BH has moderate ability to increase prices given its role as a private-label producer facing intense competition from brands. Fitch assumes flat revenue for 2025 and a low single digit increase in 2027. Organic growth will be constrained by competition and softer demand for chocolate-related products, with support from a strong focus on commercial initiatives and potential acceleration in the shift toward private label amid weakening consumer sentiment. Moderate Scale, Single Product Category: BH's rating captures its moderate scale with projected EBITDA under EUR130 million in 2026-2029, but strong market positions in France, Germany, Sweden and Benelux. It operates in the single product category of sweet and savoury bakery, mainly biscuits, but has a wide offering within the subsector - often a key advantage for its customers. It is a predominantly private-label producer (about 90% of revenue in 2025), but also develops co-manufacturing and own brands divisions, providing additional sales and profit growth opportunities over the long term. Peer Analysis BH's rating is one notch below that of Platform Bidco Limited (Valeo Foods; B-/Stable). The two companies have similar financial profiles with comparable profitability and high leverage metrics. Valeo Foods' rating also benefits from a stronger brand portfolio and broader product-category diversification. BH is similar in size, product offerings (long shelf life) and geographic diversification to La Doria S.p.A. (B+/Stable), although, the latter's credit profile benefits from considerably lower leverage, higher profitability, and, to some extent, lower exposure to commodity price volatility. BH is smaller than Sammontana Italia S.p.A. (B+/Stable) as measured by EBITDA but has similar geographical diversification. Sammontana benefits from a more diversified product portfolio with strong brands in its key categories. Its ratings also reflect a stronger financial profile with higher operating margins and lower leverage. BH is much smaller than Sigma Holdco BV (B/Stable). The latter has a stronger market position as the largest plant-based spreads producer, despite a narrower product offering. Sigma's credit profile also benefits from a higher operating margin of about 20%, robust FCF margins in the mid-single digits and lower leverage. Fitch’s Key Rating-Case Assumptions The following assumptions are subject to receipt of an updated business plan: - Revenue to rise 0.9% in 2026, after a 1% decline in 2025, followed by around 4% annual growth - EBITDA margin to gradually recover towards 10% by 2029 after a decline to 7.9% in 2025 - Trade working capital at about 8% of revenue following revenue dynamics - Capex to reduce towards 2.5% of revenue in 2026-2029 from an expected 3.3% in 2025 - No M&A over the rating horizon 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 ('bb-', Lower), market and competitive positioning ('b', Moderate), diversification and asset quality ('b+', Moderate), company operational characteristics ('b+', 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: 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. The governance assessment of 'some deficiencies' 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 Its recovery analysis assumes that BH would be considered a going concern (GC) in bankruptcy and that it would be reorganised rather than liquidated. This is because most of its value lies within its wide production and logistics network in Europe, and long-standing customer relationships. Fitch assumed a 10% administrative claim, which is unavailable during restructuring and is therefore deducted from the enterprise value. Fitch assesses GC EBITDA at EUR115 million, which includes recent acquisitions and reflects the earnings required for the group to sustain operations as a GC in unfavourable market conditions, including a major customer loss or reduced ability to pass on cost inflation to customers. The GC EBITDA assumes corrective measures for the company to remain a GC. Fitch applies a recovery multiple of 5x, which is roughly the mid-point of its multiple scale for the sector in EMEA, in line with sector peers. This reflects BH's operational scale and market positions. BH's enterprise value/EBITDA multiple is in line with La Doria's, which has comparable scale and operates in related packaged food categories within the private-label sector. The multiple is below that of Sammontana and Valeo Foods of 5.5x, due to their branded product portfolios and Valeo's bigger scale. Based on these assumptions, its waterfall analysis generates a ranked recovery in the Recovery Rating 'RR3' band, leading to a first-lien secured rating of 'CCC+' for the EUR695 million TLB, one notch above the IDR. The ranked recovery for the EUR150 million second-lien facility (EUR158 million including about EUR8 million of interest), for which the payment date has been extended, corresponds to a Recovery Rating of 'RR6', leading to a second-lien rating of 'CC', two notches below the IDR. Under the new capital structure, the EUR130 million 1.5lien 18% PIK notes are ranking junior to the TLB and the RCF, and senior to the second-lien notes. Its estimates of creditor claims include the fully drawn EUR85 million RCF. Fitch expects BH's factoring line will remain available during and after financial distress, given the strong credit quality of its client base. RATING SENSITIVITIES Factors That Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Indication of further debt restructuring that Fitch would classify as a DDE - Liquidity erosion due to weak operational turnaround leading to continuing decline in revenues or EBITDA Factors That Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Evidence of sustained improvement in operating performance leading to EBITDA and cash flow growth, improving liquidity headroom, altogether signaling of reduced execution and refinancing risks Liquidity and Debt Structure BH's liquidity is satisfactory, with a Fitch-adjusted cash balance of EUR30 million at March 2026, supported by access to an EUR85 million RCF (EUR41 million drawn as of March 2026), with its maturity extended to May 2030. Together with its expectations of positive FCF from 2027, this should be sufficient to insure satisfactory liquidity position. Issuer Profile BH is a EUR1.2 billion revenue, France-based private label biscuit and bread substitute manufacturer, with broad production footprint across Europe. It is owned by Platinum Equity since February 2020. 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 BH. 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 ----------- ------ -------- ----- Biscuit Holding SAS LT IDR RD Downgrade CC LT IDR CCC Upgrade sr secured 2nd lien LT CC Upgrade RR6 C senior secured LT CCC+ Upgrade RR3 CCC- FCT YOUNI 2026-1: Fitch Assigns 'BB(EXP)sf' Rating on Class E Notes ------------------------------------------------------------------- Fitch Ratings has assigned FCT Youni France 2026-1 expected ratings. The assignment of final ratings is contingent on the receipt of final documentation conforming to the information Fitch has received. Entity/Debt Rating ----------- ------ FCT Youni France 2026-1 Class A LT AAA(EXP)sf Expected Rating Class B LT AA(EXP)sf Expected Rating Class C LT A(EXP)sf Expected Rating Class D LT BBB(EXP)sf Expected Rating Class E LT BB(EXP)sf Expected Rating Class F LT NR(EXP)sf Expected Rating Class R LT NR(EXP)sf Expected Rating Class X LT A(EXP)sf Expected Rating Transaction Summary FCT Youni France 2026-1 is a static true-sale securitisation of unsecured consumer loans granted to borrowers domiciled in metropolitan France by Younited S.A. The securitised portfolio consists of general-purpose personal loans advanced to individuals. All the loans bear a fixed interest rate and are amortising with constant monthly instalments. KEY RATING DRIVERS Score Bands Drive Credit Risk: Fitch expects a lifetime portfolio weighted average (WA) default rate of 6.2% and a WA recovery rate of 60%. Fitch applied a WA 'AAAsf' default multiple of 4.3x and a WA recovery haircut of 55% to stress the base-case assumptions for the notes' ratings. In setting its assumptions, Fitch considered Younited's underwriting standards and the performance of individual score bands. Strong Excess Spread: The structure benefits from an initial net annual excess spread of about 5.4% after deducting senior fees, swap costs and the WA cost of liabilities, providing a source of credit enhancement for the notes. Fitch tested more severe WA coupon compression assumptions on defaults than those set out in its criteria, which did not constrain the ratings of the notes. Sensitivity to Pro-Rata Length: The transaction will amortise pro-rata if no sequential amortisation event occurs. In Fitch's expected case, a switch from pro-rata to sequential amortisation is unlikely during the first two years, given gap between the portfolio performance assumptions and the transaction's trigger levels. Tail risk is mitigated by a mandatory switch to sequential pay-down once the outstanding collateral balance falls below a specified threshold. Sufficient Liquidity Protection: Payment interruption risk is mitigated by the presence of an amortising cash reserve that will be used to cover shortfalls on the senior fees, swap payments and interest on the class A to E notes. This cash reserve will be funded at closing through the issue of the class X notes. Servicing Continuity Risk Mitigated: Younited will the servicer of the transaction. Fitch views servicing continuity risks adequately mitigated by, among other features, the monthly transfer of borrowers' notification details to the management company; a specially dedicated account bank; a cash reserve funded at closing to cover liquidity; and by the management company's responsibility in appointing a substitute servicer within 30 calendar days of a servicer termination event. A back-up servicer will also be appointed at closing. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The transaction's performance may be affected by adverse changes in market conditions and the economic environment. Weakening asset performance is strongly correlated with increasing levels of delinquencies and defaults, which could reduce the credit enhancement available to the notes. Unanticipated declines in recoveries could also result in lower net proceeds, which combined with higher defaults, may negatively affect the rating of the notes. Sensitivities to higher default rates and lower recoveries are shown below: Defaults increase by 25% Class A; 'AAsf'; Class B: 'Asf'; Class C: 'BBB+sf'; Class D: 'BB+sf'; Class E: 'BB-sf'; Class X: 'Asf' Recoveries decrease by 25% Class A; 'AA+sf'; Class B: 'A+sf'; Class C: 'A-sf'; Class D: 'BBB-sf'; Class E: 'BB-sf'; Class X: 'Asf' Defaults increase by 25% and recoveries decrease by 25% Class A; 'AA-sf'; Class B: 'Asf'; Class C: 'BBBsf'; Class D: 'BB+sf'; Class E: 'Bsf'; Class X: 'Asf' Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An unexpected decrease in the frequency of defaults or increase in the recovery rates resulting in smaller losses than its expectation could lead to an upgrade. Defaults decrease by 25% and recoveries increase by 25% Class A; 'AAAsf'; Class B: 'AA+sf'; Class C: 'AA-sf'; Class D: 'Asf'; Class E: 'BBBsf'; Class X: 'Asf' 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. Fitch conducted a review of a small, targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. FCT YOUNI 2026-1: Moody's Assigns (P)B1 Rating to Class E Notes --------------------------------------------------------------- Moody's Ratings has assigned the following provisional ratings to Notes to be issued by FCT YOUNI FRANCE 2026-1: EUR [ ]M Class A Asset Backed Floating Rate Notes due July 2043, Assigned (P)Aaa (sf) EUR [ ]M Class B Asset Backed Floating Rate Notes due July 2043, Assigned (P)Aa2 (sf) EUR [ ]M Class C Asset Backed Floating Rate Notes due July 2043, Assigned (P)A2 (sf) EUR [ ]M Class D Asset Backed Floating Rate Notes due July 2043, Assigned (P)Baa3 (sf) EUR [ ]M Class E Asset Backed Floating Rate Notes due July 2043, Assigned (P)B1 (sf) EUR [ ]M Class X Asset Backed Floating Rate Notes due July 2043, Assigned (P)A2 (sf) Moody's have not assigned a rating to the EUR[ ]M Class F Asset Backed Notes due July 2043, which are also to be issued at the closing of the transaction. RATINGS RATIONALE The transaction is a static cash securitisation of unsecured consumer loans extended by Younited S.A. (not rated) to obligors in France. The originator will also act as the servicer of the portfolio during the life of the transaction. As of May 12, 2026, the provisional portfolio of EUR214.88M shows 100% performing contracts with a weighted average seasoning of around 0.9 year. The portfolio consists of fixed rate amortizing loans (100%) which have equal instalments during the life of the loan. According to us, the transaction benefits from credit strengths such as: (i) a granular portfolio, and (ii) a static structure. Furthermore, the Notes benefit from a cash reserve funded at closing at 1.25% of the initial Notes balance of the Class A to E Notes. The reserve will mainly provide liquidity to pay senior expenses, hedging costs and the coupon on the Class A to E Notes. However, Moody's notes that the transaction features some credit weaknesses such as: (i) an unrated originator, (ii) a pro rata principal repayments of the Class A to E Notes, and (iii) a risk of potential servicing disruption mitigated by the presence of MCS & Associes S.A. as back-up servicer. Moody's analysis focused, among other factors, on: (1) an evaluation of the underlying portfolio of financing agreements, (2) the macroeconomic environment, (3) historical performance information, (4) the credit enhancement provided by subordination, cash reserve and excess spread, (5) the liquidity support available in the transaction through the reserve fund, and (6) the legal and structural integrity of the transaction. MAIN MODEL ASSUMPTIONS Moody's determined the portfolio lifetime expected defaults of 6.3%, a recovery rate of 30.0% and Aaa portfolio credit enhancement ("PCE") of 17.0% related to the receivables. The expected defaults and recoveries capture Moody's expectations of performance considering the current economic outlook, while the PCE captures the loss Moody's expects the portfolio to suffer in the event of a severe recession scenario. Expected defaults, recoveries and PCE are parameters used by us to calibrate Moody's lognormal portfolio loss distribution curve and to associate a probability with each potential future loss scenario in the ABSROM cash flow model to rate Consumer ABS. Portfolio expected defaults of 6.3% are worse than the EMEA Consumer ABS average and are based on Moody's assessments of the lifetime expectation for the pool taking into account: (i) historical performance of the loan book of the originator, (ii) benchmark transactions, and (iii) other qualitative considerations. Portfolio expected recoveries of 30.0% are in line with the EMEA Consumer ABS average and are based on Moody's assessments of the lifetime expectation for the pool taking into account: (i) historical performance of the loan book of the originator, (ii) benchmark transactions, and (iii) other qualitative considerations. PCE of 17.0% is worse than the EMEA Consumer ABS average and is based on: (i) Moody's assessments of the borrower credit, and (ii) benchmark transactions. The PCE level of 17.0% results in an implied coefficient of variation ("CoV") of 36%. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was "Consumer Loan Securitizations" published in May 2026. Factors that would lead to an upgrade or downgrade of the ratings: Factors that may cause an upgrade of the ratings include significantly better than expected performance of the pool together with an increase in credit enhancement of the Notes. Factors that may cause a downgrade of the ratings include a decline in the overall performance of the portfolio and a meaningful deterioration of the credit profile of the originator and servicer Younited S.A. MISTRAL HOLDCO: Fitch Publishes 'B' LongTerm IDR, Outlook Stable ---------------------------------------------------------------- Fitch Ratings has published Mistral Holdco SAS's (MTX) Long-Term Issuer Default Rating (LT IDR) of 'B' with a Stable Outlook. Fitch has also published the senior secured instrument rating of 'B' with a Recovery Rating of 'RR4' for its term loan B (TLB). Fitch expects to affirm TLB's rating once the planned EUR80 million fungible debt add-on is completed. Rating strengths are a sustainable business model, supported by diversified revenue streams and a high share of recurring revenue. This is balanced by high leverage for the rating, exacerbated by the EUR80 million TLB increase, partly used to fund the acquisition of Peasy. Fitch expects Fitch-defined EBITDA gross leverage to increase to 8.0x in 2026, before declining towards 6.5x (a level more appropriate for the rating) in 2028. Other constraints are weak interest cover and low, even though positive, free cash flow (FCF) generation relative to peers', resulting in limited rating headroom. Key Rating Drivers Sustainable Business Model: MTX has strong positions in France's mortgage and insurance brokerage markets, a broad service offering and a high share of recurring revenue, which management estimates at about 75% in 2025. The company is exposed to the cyclical mortgage market, but it retains good technology, adequate brand power, an extensive franchise network, which should allow MTX to take advantage of financial services digitalisation. Improving Geographic Diversification: The acquisition of Peasy - a provider of omnichannel brokerage and comparison services for credit, insurance and daily expense products in Belgium - is complementary to MTX's business profile, supporting its geographic diversification and MTX's financial performance. Fitch expects Peasy's revenue to grow 13%-14% a year and its company-defined EBITDA margin to be around 35%. Increased Leverage, Slower Deleveraging: Fitch expects Fitch-defined EBITDA leverage to increase to 8.0x in 2026 from 7.7x in 2025, reflecting higher debt incurred to finance the acquisition of Peasy. This is compounded by its expectation of slower revenue and EBITDA growth due to underperformance in the insurance segment and the prospect of higher interest rates slowing growth in the credit-related brokerage segment, although this may prove temporary. Fitch expects leverage to decline to 6.5x only by 2028, driven by EBITDA expansion and growth in the credit and savings segments with stabilising trends in the insurance business. Deleveraging Capacity: MTX retains the capacity to deleverage organically, supported by revenue growth, cost savings and synergy realisation. Management has also communicated their intention to maintain a conservative financial policy with a company-defined net leverage below 5.0x over the medium term. This, together with the TLB maturity extension, underpins the Stable Outlook. Its base case assumes MTX will successfully refinance its debt in 2026. Failure to refinance or underperformance relative to its forecasts could lead to a negative rating action Financial Flexibility to Improve: Fitch expects MTX's EBITDA interest cover to remain weak for the rating, at 1.9x-2.3x in 2026-2028. However, financial flexibility should improve following its amend-and-extend TBL transaction and the EUR80 million add-on, which extends TLB's maturity to 2031. Liquidity should also be satisfactory, following an increase in its revolving credit facility (RCF) to EUR65 million, and given expected positive FCF in 2026-2028. Favourable Organic Growth Prospects: MTX has recorded strong organic growth in the low double digits over the five years to 2023. Regulatory changes in France, including the Amendment Bourquin (2019) and the Lemoine Law (2022), have lowered barriers for consumers to renegotiate mortgage insurance, supporting market demand. Fitch expects the ongoing recovery in the French mortgage market, alongside MTX's updated strategic plan to optimise its franchise network, develop new distribution channels and enhance service offerings—to support about mid to high single digit revenue growth in 2027-2029. EBITDA Margin Gradual Improvement: Fitch expects MTX's Fitch-defined EBITDA margin to average about 26.4% over 2026-2028. The initial mechanical margin dilution from the Peasy acquisition will be gradually offset by synergy realisation, cost savings, lower lease costs and economies of scale. FCF Generation to Turn Positive: MTX generated some negative Fitch-defined FCF in 2024-2025 due to revenue underperformance and one-off dividend payments. However, Fitch expects Fitch-defined FCF to improve to 4%-6% of revenue in 2027-2028, supported by stronger revenue performance, margin improvement, moderate capex, limited working capital outflows, and the lack of dividends assumed over the forecast period. Profitability improvement, particularly related to FCF, is an important consideration underpinning the Stable Outlook. Franchise Model: MTX has built a significant franchise network with 250+ branches covering France as of June 2026. The franchise structure allows complete flexibility to adapt to changing consumer habits towards online and keeps margins high relative to peers. Franchisees distribute a share of their revenue to MTX and are charged for IT and marketing expenses. Franchisees manage their own operating and financing risks. They are independent and support their own financial performance. Peer Analysis MTX has a leading position in the French mortgage and mortgage insurance brokerage market. Compared with peers DIOT - SIACI TopCo SAS (B/Stable) and Ardonagh Group Holdings Limited (B/Stable) - which are B2B operators - MTX is more consumer-oriented, smaller in scale with weaker profitability and FCF margins, a less diversified revenue base and is partially exposed to cyclical pressures in the mortgage market. This results in tighter leverage thresholds for MTX than the above peers at the same 'B' rating. Fitch’s Key Rating-Case Assumptions - Revenue growth of about 20% in 2026 (5% organic) and in the mid to high single digits yearly in 2027-2028, supported by a French credit market rebound, greater demand for intermediation in key services and market share expansion through new products launch - Fitch-defined EBITDA at 25% of gross revenue in 2026, before gradually improving to 27% in 2028, supported by operating leverage on the back of increasing volumes and cost efficiencies - Capex of EUR17 million a year in 2026-2028 - No dividend payments over 2026-2028 - No further debt-funded M&A in 2026-2028 (except Peasy in 2026) Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bb-', Lower), sector characteristics ('bb', Lower), market and competitive positioning ('b', Higher), diversification and asset quality ('b+', Moderate), company operational characteristics ('bb', Moderate), profitability ('b+', Lower), financial structure ('b-', Higher), and financial flexibility ('b', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the historical year 2025, 30% for the forecast year 2026, 30% for the forecast year 2027 and 20% 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 Fitch assumed that MTX would be considered a going-concern in bankruptcy and that it would be reorganised rather than liquidated. Fitch assumes a 10% administrative claim. In its bespoke going-concern recovery analysis, Fitch considered an estimated post-restructuring EBITDA available to creditors of about EUR50 million (including contribution from acquired businesses) with limited growth and higher competitive intensity. Fitch used a distressed enterprise value/EBITDA multiple of 5.5x. Fitch assumed EUR5 million of Peasy's own debt is subordinated to the senior secured debt of MTX. These assumptions - after considering enlarged senior secured debt of EUR500 million (which includes the EUR80 million of fungible TLB add-on) and assuming a fully drawn pari-passu RCF of EUR65 million in default - result in a debt instrument rating of 'B', in line with the IDR, and a Recovery Rating of 'RR4'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Deterioration of MTX's strong market position or an increase in competition resulting in weaker EBITDA growth and erosion in FCF Debt-funded acquisitions or sustained operational weakness preventing Fitch-defined EBITDA leverage from declining to below 6.5x on a sustained basis EBITDA interest covers below 2.0x FCF margin declining towards the low-single digits on a sustained basis Failure to progress on refinancing before end of summer 2026 Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Evidence of a conservative financial policy with Fitch-defined EBITDA leverage below 4.5x on a sustained basis Greater diversification either by geography or by product, reflected in steady EBITDA margin and FCF improvement EBITDA interest covers above 3.0x on a sustained basis Liquidity and Debt Structure MTX had EUR44 million cash and cash equivalents at end-2025 and Fitch expects the business to be broadly cash flow- neutral in 2026 before generating positive FCF in 2027-2028. Fitch expects FCF margins to improve to about 6% by 2028, supporting a growing cash balance. The rating assumes a more conservative capital allocation policy that favours deleveraging over the medium term. MTX will have no short-term debt maturity, if the amend-and-extend is successful, extending TLB maturity to 2031 Its RCF of EUR50 million was fully drawn as of 1Q26 to fund the acquisition of Peasy. Fitch expects RCF to be upsized to EUR65 million, after the amend-and-extend, and to be fully undrawn. Issuer Profile MTX is a French financial services broker, with a leading position in France, its main market. Date of Relevant Committee 15 June 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 MTX. 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 ----------- ------ -------- Mistral Holdco SAS LT IDR B Publish senior secured LT B Publish RR4 ============= G E R M A N Y ============= HT TROPLAST: Moody's Rates New EUR430MM Senior Secured Notes 'B2' ----------------------------------------------------------------- Moody's Ratings has assigned a B2 rating to the proposed EUR430 backed senior secured notes due 2031 issued by HT Troplast GmbH (Profine or the company). Profine's B2 long-term corporate family rating and B2-PD probability of default rating are unaffected. The stable outlook is also unaffected. Proceeds from the proposed notes, together with cash on balance sheet, will be used to redeem the existing EUR380 million backed senior secured notes due July 2028, including accrued interest and call premium, repay the EUR22 million drawn revolving credit facility (RCF) due January 2028, and cover associated transaction costs. Moody's expects to withdraw the B2 rating on the existing notes upon their full repayment. Pro forma for the refinancing, Moody's-adjusted leverage will increase modestly to 6.1x on a gross basis (from 5.8x as of the twelve months ended March 2026) and 5.9x on a net basis (from 5.5x). Notwithstanding this modest increase, Moody's views the transaction as credit positive, as it extends the debt maturity profile to 2031 and Moody's expects a modest reduction in annual interest expense. The revised springing covenant framework — resetting the maximum net leverage threshold to 4.5x through Q3 2027 before a gradual annual step-down, compared with a previously tighter forward step-down — provides improved capacity and reduces the risk of a covenant-driven restriction on RCF availability. RATINGS RATIONALE Profine's B2 CFR reflects its leading position in the global PVC fenestration market, with vertically integrated operations and high exposure to relatively resilient residential renovation activity; proven pricing discipline supporting gross margins sustained above 49% since 2024; and a fragmented, sticky customer base with high switching costs. The rating is constrained by weak point-in-time credit metrics, with Moody's-adjusted leverage at 6.0x gross (5.7x net) pro forma for the proposed transaction. Elevated operating expenses, particularly personnel costs associated with strategic growth initiatives, have weighed on company-reported EBITDA, which, despite modest improvement to EUR94 million (11.3% margin) in the twelve months ended March 2026, remains below 2023 levels. Moody's expects company-reported EBITDA to recover toward EUR113–118 million over 2026–27, supported by material surcharges and effective cost pass-through. This should support gradual deleveraging to 4.9x on a gross basis (4.5x on a net basis) by year-end 2026 and 4.7x (4.2x net) by year-end 2027, aligning with rating thresholds for the B2 CFR. Improving earnings, together with lower interest costs, disciplined capex and working capital management, should also support a more consistent track record of positive free cash flow (FCF) and gradual strengthening of liquidity. RATIONALE OF THE OUTLOOK The stable outlook reflects Moody's expectations that improved pricing execution and cost pass-through will support earnings recovery over the next 12–18 months and a gradual reduction in Moody's-adjusted debt/EBITDA towards 4.5x–5.0x. It also assumes prudent financial policies, with no material debt-funded acquisitions or shareholder distributions, and the maintenance of adequate liquidity at all times. LIQUIDITY Pro forma for the refinancing, Profine has adequate liquidity, supported by around EUR22 million unrestricted cash and up to EUR85 million fully undrawn RCF. The company also has access to EUR22 million undrawn committed factoring program, maturing in December 2028, providing support to manage intra-year working capital fluctuations. Over the next 12-18 months, Moody's expects funds from operations around EUR70–77 million, sufficient to cover working capital, capex and principal lease repayments of up to EUR60 million, resulting in Moody's-adjusted FCF around EUR10–17 million. This should support a gradual rebuild of the cash balance to around EUR45 million by year-end 2026 and EUR60 million by year-end 2027. Profine will have no material debt maturities before 2031. The RCF contains a springing net leverage covenant, tested quarterly when utilisation exceeds 35% of commitments, set at 4.5x. Pro forma net leverage was around 4.2x, indicating modest capacity under the covenant. Moody's expects net leverage to remain within 3.7x–4.0x range over the next 12–18 months and do not anticipate material RCF utilisation. STRUCTURAL CONSIDERATIONS Post transaction, Profine's capital structure will comprise EUR430 million backed senior secured notes and up to EUR85 million super senior RCF. Both instruments are guaranteed by operating subsidiaries across various jurisdictions accounting for at least 80% of consolidated EBITDA and 70% of group assets, and share a common security package consisting of customary share pledges, intragroup receivables, bank accounts, certain current and fixed assets, and land charges over real estate property. However, the super senior secured RCF benefits from priority of claim over the senior secured notes. As a result, in Moody's Loss Given Default (LGD) waterfall, the super senior secured RCF ranks ahead of the senior secured notes and trade payables, which then rank ahead of short-term liabilities, pension obligations and other bank debt at the level of the operating entities. The senior secured notes are rated B2, in line with the CFR, reflecting the relatively small size of the super senior RCF. The company's PDR at B2-PD is also in line with the CFR, reflecting Moody's standard assumption of a 50% family recovery rate. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING Positive rating pressure could develop if: -- Moody's-adjusted debt/EBITDA remains below 4.0x on a sustained basis; -- Moody's-adjusted EBIT/interest exceeds 2.0x; -- The company maintains good liquidity, with Moody's-adjusted FCF/Debt improving toward high single digits; and -- The company adheres to conservative financial policies, with no excessive profit distributions to shareholders or larger debt-funded acquisitions Conversely, negative rating pressure would arise if: -- Moody's-adjusted debt/EBITDA exceeds 5.0x on a sustained basis; -- Moody's-adjusted EBIT/interest declines below 1.5x on a sustained basis; and -- Liquidity deteriorates, evidenced by significantly weaker or consistent negative FCF PRINCIPAL METHODOLOGY The principal methodology used in this rating was Building Materials published in September 2025. CORPORATE PROFILE Profine is a leading global manufacturer of PVC window and door profile systems and PVC sheets, headquartered in Pirmasens, Germany. The company operates under three long-established brands — Kömmerling, KBE, and Trocal — with Europe accounting for around 89% of revenue in 2025. The company generated EUR834 million revenue and EUR109 million company-adjusted EBITDA in the twelve months to March 2026, with renovation accounting for a significant share of revenue across most markets. Since 2012, Profine has been privately owned (95% of share capital) and managed by Peter A. Mrosik, who also serves as the company's CEO. ============= I R E L A N D ============= ARES EUROPEAN XIX: Fitch Affirms 'B-sf' Final Rating on Cl. F Notes ------------------------------------------------------------------- Fitch Ratings has assigned Ares European CLO XIX DAC's refinancing notes final ratings and affirmed the existing class F notes. Entity/Debt Rating Prior ----------- ------ ----- Ares European CLO XIX DAC A-R XS3406779606 LT AAAsf New Rating B-R XS3406779945 LT AAsf New Rating C-R XS3406780364 LT A+sf New Rating Class A XS2806450529 LT PIFsf Paid In Full AAAsf Class B XS2806450875 LT PIFsf Paid In Full AAsf Class C XS2806450958 LT PIFsf Paid In Full Asf Class D XS2806451097 LT PIFsf Paid In Full BBB-sf Class E XS2806451253 LT PIFsf Paid In Full BB-sf Class F XS2806451337 LT B-sf Affirmed B-sf D-R XS3406780521 LT BBB-sf New Rating E-R XS3406780877 LT BB-sf New Rating Transaction Summary Ares European CLO XIX DAC is a securitization of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds, and is managed by Ares Management Ltd. It closed in June 2024. Net proceeds from the refinancing notes have been used to redeem the existing notes, except for the class F notes and the subordinated notes. The CLO has 2.6 years remaining in its reinvestment period and a 6.5-year weighted average life (WAL) test at closing of the refinancing, with an original target par of EUR425 million. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'/'B-'. The Fitch-calculated weighted average rating factor of the identified portfolio is 24.9. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate of the identified portfolio is 65.3%. Diversified Portfolio (Positive): 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 (Neutral): The transaction's Fitch matrices have been updated at this refinancing, corresponding to a WAL covenant of 6.5 years. The two matrices both correspond to a top 10 obligor concentration of 16%, and fixed-rate asset limits of 5% or 10%. The transaction is within its reinvestment period, which is 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 (Positive): The WAL for the transaction's Fitch-stressed portfolio is six years, which is lower than the transaction's 6.5-year WAL covenant. This reflects the transaction's strict reinvestment conditions that apply after the reinvestment period, including the satisfaction of the coverage tests and of the Fitch 'CCC' bucket limitation test, and a WAL covenant test that steps down during and after the reinvestment period. This approach is consistent with Fitch's criteria, which allow a 12-month reduction to the transaction's WAL covenant, subject to a six-year floor, when the transaction provides for strict conditions after the reinvestment period that reduce the portfolio's effective risk horizon during the stress period. In addition, its analysis considered that the transaction was about 0.2% below the EUR425 million target par at refinancing. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no negative impact on the class A-R to E-R notes, and lead to a downgrade to below 'B-sf' for the class F notes. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of defaults and portfolio deterioration. Due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio, the class B-R notes have a rating cushion of two notches, the class C-R notes of three notches and the class D-R, E-R and F notes of five notches. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to three notches for the class C-R and E-R notes, up to two notches for the class A-R, B-R and D-R notes and to below 'B-sf' for the class F notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to five notches for the notes, except for the 'AAAsf' notes, which are at the highest level on Fitch's scale and cannot be upgraded. During the reinvestment period, based on the Fitch-stressed portfolio, upgrades may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the transaction's remaining life. After the end of the reinvestment period, upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Ares European CLO XIX 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 Ares European CLO XIX 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 2018-1: Fitch Withdraws Dsf Rating on Class F Notes ---------------------------------------------------------------- Fitch Ratings has downgraded Bain Capital Euro CLO 2018-1 DAC class F notes to 'Dsf' from 'Csf ' and withdrawn the rating. The class D and E notes were paid in full. Entity/Debt Rating Prior ----------- ------ ----- Bain Capital Euro CLO 2018-1 DAC D XS1713467469 LT PIFsf Paid In Full A+sf E XS1713467030 LT PIFsf Paid In Full BB+sf F XS1713466909 LT Dsf Downgrade Csf F XS1713466909 LT WDsf Withdrawn Transaction Summary Bain Capital Euro CLO 2018-1 DAC is a cash flow CLO comprising mostly senior secured obligations. The transaction is actively managed by Bain Capital Credit, Ltd. and exited its reinvestment period in April 2022. Fitch is withdrawing the class F notes rating as the notes have defaulted. Accordingly, Fitch will no longer provide Ratings or analytical coverage. KEY RATING DRIVERS Principal Redemption Below Par: The downgrade of the class F notes to 'Dsf' reflects a redemption in an amount below their outstanding principal amount. In the notices dated 28 April 2026, class F noteholders, acting by extraordinary resolution, consented to an adjustment of the outstanding principal amount. The adjustment amount was unknown at the previous rating action on 13 May 2026. According to the payment report for the 12 June 2026 redemption date, the class F notes received a principal payment of EUR7.4 million, lower than their par amount of EUR11.2 million. Fitch views the adjustment of the outstanding principal amount as a Distressed Debt Exchange, as it led to a material reduction in economic terms compared with the original contractual terms and averted a default under the transaction documents to allow the redemption. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Not relevant as the rating is being withdrawn. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Not relevant as the rating is being 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 not conducted any checks on 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. ESG Considerations Fitch does not provide ESG relevance scores for Bain Capital Euro CLO 2018-1 DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. BAIN CAPITAL 2021-2: Moody's Affirms B3 Rating on EUR9.8MM F Notes ------------------------------------------------------------------ Moody's Ratings has upgraded the ratings on the following notes issued by Bain Capital Euro CLO 2021-2 Designated Activity Company: EUR25.9M Class B-1 Senior Secured Floating Rate Notes due 2034, Upgraded to Aa1 (sf); previously on Nov 10, 2021 Definitive Rating Assigned Aa2 (sf) EUR13.5M Class B-2 Senior Secured Fixed Rate Notes due 2034, Upgraded to Aa1 (sf); previously on Nov 10, 2021 Definitive Rating Assigned Aa2 (sf) Moody's have also affirmed the ratings on the following notes: EUR228.8M Class A Senior Secured Floating Rate Notes due 2034, Affirmed Aaa (sf); previously on Nov 10, 2021 Definitive Rating Assigned Aaa (sf) EUR26.3M Class C Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed A2 (sf); previously on Nov 10, 2021 Definitive Rating Assigned A2 (sf) EUR25.1M Class D Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Baa3 (sf); previously on Nov 10, 2021 Definitive Rating Assigned Baa3 (sf) EUR19.9M Class E Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed Ba3 (sf); previously on Nov 10, 2021 Definitive Rating Assigned Ba3 (sf) EUR9.8M Class F Senior Secured Deferrable Floating Rate Notes due 2034, Affirmed B3 (sf); previously on Nov 10, 2021 Definitive Rating Assigned B3 (sf) Bain Capital Euro CLO 2021-2 Designated Activity Company, issued in Nov 2021, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Bain Capital Credit US CLO Manager, LLC. The transaction's reinvestment period will end in July 2026. RATINGS RATIONALE The rating upgrades on the Class B-1 and Class B-2 notes are primarily a result of the benefit of the shorter period of time remaining before the end of the reinvestment period in July 2026. The affirmations on the ratings on the Class A, Class C, Class D, Class E and Class F notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. In light of reinvestment restrictions during the amortisation period, and therefore the limited ability to effect significant changes to the current collateral pool, Moody's analysed the deal assuming a higher likelihood that the collateral pool characteristics would maintain an adequate buffer relative to certain covenant requirements. The key model inputs Moody's uses in Moody's analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on Moody's published methodology and could differ from the trustee's reported numbers. In Moody's base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR364.8m Defaulted Securities: EUR2.6m Diversity Score: 65 Weighted Average Rating Factor (WARF): 2977 Weighted Average Life (WAL): 4.29 years Weighted Average Spread (WAS) (before accounting for Euribor floors): 3.67% Weighted Average Coupon (WAC): 3.98% Weighted Average Recovery Rate (WARR): 43.64% Par haircut in OC tests and interest diversion test: 0% The default probability derives from the credit quality of the collateral pool and Moody's expectations of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into Moody's cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Moody's notes that the June 2026 trustee report was published at the time Moody's were completing Moody's analysis of the May 2026 data. Key portfolio metrics such as WARF, diversity score, weighted average spread and life, and OC ratios exhibit little or no change between these dates. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Collateralized Loan Obligations" published in April 2026. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as the account bank using the methodology "Structured Finance Counterparty Risks" published in May 2025. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: Once reaching the end of the reinvestment period in July 2026, the main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Weighted average life: The notes' ratings are sensitive to the weighted average life assumption of the portfolio, which could lengthen as a result of the manager's decision to reinvest in new issue loans or other loans with longer maturities, or participate in amend-to-extend offerings. The effect on the ratings of extending the portfolio's weighted average life can be positive or negative depending on the notes' seniority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analysed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from Moody's other analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. CANYON EURO 2026-1: Fitch Assigns B-sf Final Rating on Cl. F Notes ------------------------------------------------------------------ Fitch has assigned Canyon Euro CLO 2026-1 DAC final ratings. Entity/Debt Rating ----------- ------ Canyon Euro CLO 2026-1 DAC A Notes XS3351078616 LT AAAsf New Rating A-1 Loan LT AAAsf New Rating A-2 Loan LT AAAsf New Rating B XS3351078889 LT AAsf New Rating C XS3351079002 LT Asf New Rating D XS3351079267 LT BBB-sf New Rating E XS3351079424 LT BB-sf New Rating F XS3351079770 LT B-sf New Rating Subordinated Notes XS3351079937 LT NRsf New Rating Z XS3351080273 LT NRsf New Rating Transaction Summary Canyon Euro CLO 2026-1 DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds were used to fund a portfolio with a target par of EUR400 million The portfolio is actively managed by Canyon CLO Advisors L.P. The CLO has a 4.7-year reinvestment period and an 8.5-year weighted average life (WAL) covenant. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch places the average credit quality of obligors at 'B'. The Fitch weighted average rating factor (WARF) of the identified portfolio is 23.5. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate (WARR) of the identified portfolio is 65.5%. Diversified Asset Portfolio (Positive): The transaction includes six matrices, all corresponding to a top 10 obligor concentration limit at 20%. Two matrices are effective at closing and correspond to two fixed-rate asset limits of 5% and 10%, and an 8.5-year WAL test. The other four matrices can be selected by the manager any time from one and 1.5 years after closing and correspond to the same two fixed-rate asset limits of 5% and 10%, and 7.5-year and seven-year WAL tests, respectively. The transaction includes various concentration limits, including a maximum exposure to the three largest (Fitch-defined) industries in the portfolio at 40%. These covenants ensure that the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has an approximately five-year reinvestment period and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL used for the transaction's Fitch-stressed portfolio analysis is 12 months less than the WAL covenant at the issue date to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period. These conditions include passing the coverage tests, the Fitch WARF and the Fitch 'CCC' bucket limitation test, as well as a WAL covenant that gradually steps down over time, both before and after the end of the reinvestment period. Fitch believes these conditions reduce the effective risk horizon of the portfolio during stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) and a 25% decrease of the recovery rate (RRR) across all ratings of the current portfolio would lead to a one-notch downgrade on the class E notes. It would also lead to a downgrade to below 'B-sf' for the class F notes, subject to the erosion of any margin of safety supporting the 'B-sf' rating for the class F notes. Downgrades, which are based on the current portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of defaults and portfolio deterioration. The class C notes have a rating cushion of four notches and the classes B, D, E and F notes each have a rating cushion of two notches due to the better metrics and shorter life of the current portfolio than the stressed-case portfolio. The class A notes do not have any rating cushion as they are already at the highest achievable rating. Should the cushion between the current 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 three notches for the class A notes; four notches for the class B notes; three notches each for the class C and D notes; and 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 RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to three notches each for the rated notes, except for the 'AAAsf' rated notes. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the remaining life of the transaction. Upgrades after the end of the reinvestment period, except for the 'AAAsf' notes, 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 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 Canyon Euro CLO 2026-1 DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. CAPITAL FOUR XII: Fitch Assigns 'B-sf' Final Rating on Cl. F Notes ------------------------------------------------------------------ Fitch Ratings has assigned Capital Four CLO XII DAC final ratings. Entity/Debt Rating Prior ----------- ------ ----- Capital Four CLO XII DAC A XS3379657508 LT AAAsf New Rating AAA(EXP)sf B XS3379657763 LT AAsf New Rating AA(EXP)sf C XS3379657920 LT Asf New Rating A(EXP)sf D XS3379658225 LT BBB-sf New Rating BBB-(EXP)sf E XS3379658571 LT BB-sf New Rating BB-(EXP)sf F XS3379658738 LT B-sf New Rating B-(EXP)sf Subordinated Notes XS3379659629 LT NRsf New Rating NR(EXP)sf 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 have been 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 has 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 is 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 comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate of the identified portfolio is 65.7%. Diversified Asset Portfolio (Positive): The transaction has 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 includes four Fitch matrices. Two closing matrices correspond to a 7.5-year WAL, and two forward matrices correspond to a seven-year WAL, which can be selected starting from 18 months after closing, subject to the reinvestment target par condition and rating agency confirmation. Each matrix set corresponds to two different fixed-rate asset limits at 5% and 10%. The transaction has a reinvestment period of 4.5 years and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. WAL Step-Up Feature (Neutral): The transaction can extend the WAL test by one year on the WAL test step-up determination date, which is 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 equal to, or greater than, 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 after reinvestment, 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 in stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade An increase of the default rate (RDR) in the identified portfolio by 25% of the mean RDR and a decrease of the recovery rate (RRR) by 25% at all rating levels would have no impact on the class A to D notes and lead to downgrades of one notch for the class E notes and to below 'B-sf' for the class F notes. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. The class B to E notes have two-notch rating cushions and the class F notes have a three-notch rating cushion due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. There is no cushion for the class A notes, as they are at the highest achievable rating. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded either due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to four notches 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 for all notes, except for the 'AAAsf' rated notes, which are at the highest level on Fitch's scale and cannot be upgraded. During the reinvestment period, based on the Fitch stressed portfolio, upgrades 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. 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 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 Capital Four CLO XII DAC 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 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. DRYDEN 69 EURO 2018: Moody's Affirms B3 Rating on Cl. F-R Notes --------------------------------------------------------------- Moody's Ratings has upgraded the ratings on the following notes issued by Dryden 69 Euro CLO 2018 DAC: EUR14,000,000 Class B-1-R Senior Secured Floating Rate Notes due 2034, Upgraded to Aa1 (sf); previously on Nov 23, 2021 Definitive Rating Assigned Aa2 (sf) EUR18,000,000 Class B-2-R Senior Secured Fixed Rate Notes due 2034, Upgraded to Aa1 (sf); previously on Nov 23, 2021 Definitive Rating Assigned Aa2 (sf) EUR12,000,000 Class C-1-R Mezzanine Secured Deferrable Floating Rate Notes due 2034, Upgraded to A1 (sf); previously on Nov 23, 2021 Definitive Rating Assigned A2 (sf) EUR14,000,000 Class C-2-R Mezzanine Secured Deferrable Fixed Rate Notes due 2034, Upgraded to A1 (sf); previously on Nov 23, 2021 Definitive Rating Assigned A2 (sf) Moody's have also affirmed the ratings on the following notes: EUR248,000,000 Class A-R Senior Secured Floating Rate Notes due 2034, Affirmed Aaa (sf); previously on Nov 23, 2021 Definitive Rating Assigned Aaa (sf) EUR29,000,000 Class D-R Mezzanine Secured Deferrable Floating Rate Notes due 2034, Affirmed Baa3 (sf); previously on Nov 23, 2021 Definitive Rating Assigned Baa3 (sf) EUR25,000,000 Class E-R Mezzanine Secured Deferrable Floating Rate Notes due 2034, Affirmed Ba3 (sf); previously on Nov 23, 2021 Definitive Rating Assigned Ba3 (sf) EUR12,000,000 Class F-R Mezzanine Secured Deferrable Floating Rate Notes due 2034, Affirmed B3 (sf); previously on Nov 23, 2021 Definitive Rating Assigned B3 (sf) Dryden 69 Euro CLO 2018 DAC, issued in June 2019 and reset in November 2021, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by PGIM Limited and PGIM Loan Originator Manager Limited. The transaction's reinvestment period will end in July 2026. RATINGS RATIONALE The rating upgrades on the Class B-1-R, Class B-2-R, Class C-1-R and Class C-2-R notes are primarily a result of the benefit of the shorter period of time remaining before the end of the reinvestment period in July 2026. The affirmations on the ratings on the Class A-R, Class D-R, Class E-R and Class F-R notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. The over-collateralisation ratios of the rated notes have deteriorated over the last 12 months. According to the trustee report dated April 2026[1] the Class A/B, Class C, Class D, Class E and Class F OC ratios are reported at 139.90%, 128.01%, 116.93%, 108.81% and 105.30% compared to April 2025[2] levels of 142.88%, 130.74%, 119.42%, 111.13% and 107.55%, respectively. In light of reinvestment restrictions during the amortisation period, and therefore the limited ability to effect significant changes to the current collateral pool, Moody's analysed the deal assuming a higher likelihood that the collateral pool characteristics would maintain an adequate buffer relative to certain covenant requirements. The key model inputs Moody's uses in Moody's analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on Moody's published methodology and could differ from the trustee's reported numbers. In Moody's base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR391.13m Defaulted Securities: EUR4.08m Diversity Score: 55 Weighted Average Rating Factor (WARF): 2985 Weighted Average Life (WAL): 4.65 years Weighted Average Spread (WAS): 3.73% Weighted Average Coupon (WAC): 3.56% Weighted Average Recovery Rate (WARR): 42.69% Par haircut in OC tests and interest diversion test: 0% The default probability derives from the credit quality of the collateral pool and Moody's expectations of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into Moody's cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Moody's notes that the May 2026 trustee report was published at the time Moody's were completing Moody's analysis of the April 2026 data. Key portfolio metrics such as WARF, diversity score, weighted average spread and life, and OC ratios exhibit little or no change between these dates. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Collateralized Loan Obligations" published in April 2026. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: Once reaching the end of the reinvestment period in July 2026, the main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Weighted average life: The notes' ratings are sensitive to the weighted average life assumption of the portfolio, which could lengthen as a result of the manager's decision to reinvest in new issue loans or other loans with longer maturities, or participate in amend-to-extend offerings. The effect on the ratings of extending the portfolio's weighted average life can be positive or negative depending on the notes' seniority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from Moody's other analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. FERNHILL PARK: Fitch Assigns 'B-sf' Final Rating on Class F-R Notes ------------------------------------------------------------------- Fitch Ratings has assigned the Fernhill Park CLO DAC reset notes final ratings. Entity/Debt Rating Prior ----------- ------ ----- Fernhill Park CLO DAC A XS2809805364 LT PIFsf Paid In Full AAAsf A-R Loan LT AAAsf New Rating A-R Note XS3393819175 LT AAAsf New Rating B XS2809806842 LT PIFsf Paid In Full AAsf B-R XS3393819415 LT AAsf New Rating C XS2809807816 LT PIFsf Paid In Full Asf C-R XS3393819688 LT Asf New Rating D XS2809808624 LT PIFsf Paid In Full BBB-sf D-R XS3393819845 LT BBB-sf New Rating E XS2809809788 LT PIFsf Paid In Full BB-sf E-R XS3393820009 LT BB-sf New Rating F XS2809811172 LT PIFsf Paid In Full B-sf F-R XS3393820264 LT B-sf New Rating X XS3393818953 LT AAAsf New Rating Transaction Summary Fernhill Park Euro CLO DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds were used to redeem all the existing notes, except for the subordinated notes, and to fund the portfolio with a target par of EUR500 million and will be managed by Blackstone Ireland Limited. The collateralised loan obligation (CLO) will have a 4.5-year reinvestment period, and a 7.5-year weighted average life test (WAL), or subject to specific conditions an 8.5-year WAL. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'/'B-'. The Fitch-calculated weighted average rating factor (WARF) of the identified portfolio is 24.6. 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-calculated weighted average recovery rate (WARR) of the identified portfolio is 66.1%. Diversified Portfolio (Positive): The transaction will include various concentration limits, including a top 10 obligor concentration limit at 20%, a maximum of 40% to the three-largest Fitch-defined industries and a fixed-rate asset limit of 10%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction will have an approximately 4.5-year reinvestment period 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. The transaction includes six Fitch matrices. Each matrix set corresponds to two different fixed-rate asset limits at 5% and 10%. Four of the matrices are applicable on or after closing, corresponding to a 7.5-year WAL and an extended 8.5-year WAL. Another two matrices are effective 18 months after closing, corresponding to a 7.0-year WAL, and are subject to the collateral principal amount (treating defaulted obligations at their Fitch-calculated collateral value) being at least equal to the target par amount. WAL Test Step-Up Feature (Neutral): The WAL test covenant may be extended by 12 months as early as the issue date, subject to the satisfaction of Fitch collateral quality tests on the matrix corresponding to an 8.5-year WAL, and the adjusted collateral principal amount being equal or exceeding the reinvestment target par balance. Cash Flow Modelling (Positive): The WAL for the transaction's Fitch-stressed portfolio analysis is 12 months less than the WAL covenant. This is to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period. These conditions include passing the coverage tests and the Fitch 'CCC' bucket limitation test, and a WAL covenant that gradually steps down, before and after the end of the reinvestment period. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) across and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no negative impact on the class A notes to class D-R notes. It would lead to downgrades of one notch on the class E-R notes and to below 'B-sf' for the class F-R notes. Downgrades, which are based on the identified portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. The class B-R to F-R notes have rating cushions of up to five notches due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded either due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to three notches for the class X to E-R 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 three notches for the rated notes, except for the 'AAAsf' rated notes. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than- expected losses for the remaining life of the transaction. Upgrades after the end of the reinvestment period may result from a stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY 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 Fernhill Park CLO 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. HENLEY CLO XVII: Fitch Assigns 'B-(EXP)sf' Rating on Class F Notes ------------------------------------------------------------------ Fitch Ratings has assigned Henley CLO XVII 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 ----------- ------ Henley CLO XVII DAC A XS3356042963 LT AAA(EXP)sf Expected Rating A-L LT AAA(EXP)sf Expected Rating B XS3356043938 LT AA(EXP)sf Expected Rating C XS3356043003 LT A(EXP)sf Expected Rating D XS3356043342 LT BBB-(EXP)sf Expected Rating E XS3356044159 LT BB-(EXP)sf Expected Rating F XS3356043425 LT B-(EXP)sf Expected Rating Subordinated Notes XS3356043771 LT NR(EXP)sf Expected Rating Transaction Summary Henley CLO XVII 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 bond.Net proceeds from the notes will be used to purchase a portfolio with a target par of EUR500 million. The portfolio will be actively managed by Napier Park CMV LLC. The transaction will have a 4.5-year reinvestment period and a 7.75-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 to be in the 'B' category. The Fitch weighted average rating factor of the identified portfolio is 23.5. 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 64.5%. Diversified Asset Portfolio (Positive): The transaction will include various concentration limits in the portfolio, including a maximum exposure to the three largest Fitch-defined industries in the portfolio of 40% and the top 10 obligor concentration limit of 17.5%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction will have a 4.5-year reinvestment period, which will be governed by reinvestment criteria similar to those of other European deals. Its analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. WAL Step-Up Feature (Neutral): The transaction can extend the WAL by nine months on or after the step-up date, which is nine months after closing. The WAL extension is subject to conditions including the satisfaction of collateral quality tests and the collateral balance (defaults at Fitch-calculated collateral value) being no less than the reinvestment target par balance. Cash Flow Modelling (Positive): The WAL used for the transaction's Fitch-stressed portfolio analysis is 12 months less than the WAL test covenant at the issue date. This is to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period. These include passing the coverage tests and the Fitch 'CCC' bucket limitation test and a WAL covenant that progressively steps down before and after the end of the reinvestment period. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no downgrade impact on the class A to F notes. Based on the identified portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of defaults and portfolio deterioration. Due to the better metrics and shorter life of the identified portfolio than the stressed-case portfolio, the class B notes display a rating cushion of two notches, the class C and D notes of four notches and the class E and F notes of five notches. The class A notes do not have any rating cushion as they are already at the highest achievable rating. 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 three notches for the class A and E notes, two notches for the class B, C and D notes, and to below 'B-sf' for the class F notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the RDR across all ratings and a 25% increase in the RRR across all ratings of the stressed-case portfolio would lead to upgrades of up to five notches for the rated notes, except for the 'AAAsf' rated notes, which are at the highest level on Fitch's scale and cannot be upgraded. During the reinvestment period, based on the stressed-case portfolio, upgrades may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, leading to the ability of the notes to withstand larger-than-expected losses for the remaining life of the transaction. After the end of the reinvestment period, upgrades may occur in case of 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 Henley CLO XVII DAC 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 Henley CLO XVII DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. TIKEHAU CLO VI: Moody's Affirms B3 Rating on EUR11.6MM Cl. F Notes ------------------------------------------------------------------ Moody's Ratings has upgraded the ratings on the following notes issued by Tikehau CLO VI DAC: EUR27,000,000 Class B-1 Notes due 2035, Upgraded to Aa1 (sf); previously on Dec 21, 2021 Definitive Rating Assigned Aa2 (sf) EUR13,000,000 Class B-2 Notes due 2035, Upgraded to Aa1 (sf); previously on Dec 21, 2021 Definitive Rating Assigned Aa2 (sf) EUR24,000,000 Class C Notes due 2035, Upgraded to A1 (sf); previously on Dec 21, 2021 Definitive Rating Assigned A2 (sf) Moody's have also affirmed the ratings on the following notes: EUR248,000,000 Class A Notes due 2035, Affirmed Aaa (sf); previously on Dec 21, 2021 Definitive Rating Assigned Aaa (sf) EUR29,000,000 Class D Notes due 2035, Affirmed Baa3 (sf); previously on Dec 21, 2021 Definitive Rating Assigned Baa3 (sf) EUR19,800,000 Class E Notes due 2035, Affirmed Ba3 (sf); previously on Dec 21, 2021 Definitive Rating Assigned Ba3 (sf) EUR11,600,000 Class F Notes due 2035, Affirmed B3 (sf); previously on Dec 21, 2021 Definitive Rating Assigned B3 (sf) Tikehau CLO VI DAC, issued in December 2021, is a collateralised loan obligation (CLO) backed by a portfolio of mostly high-yield senior secured European loans. The portfolio is managed by Tikehau Capital Europe Limited. The transaction's reinvestment will end in July 2026. RATINGS RATIONALE The rating upgrades on the Class B-1, Class B-2 and Class C notes are primarily a result of the benefit of the shorter period of time remaining before the end of the reinvestment period in July 2026. The affirmations on the ratings on the Class A, Class D, Class E and Class F notes are primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the CLO's latest portfolio, its relevant structural features and its actual over-collateralisation ratios. In light of reinvestment restrictions during the amortisation period, and therefore the limited ability to effect significant changes to the current collateral pool, Moody's analysed the deal assuming a higher likelihood that the collateral pool characteristics would maintain an adequate buffer relative to certain covenant requirements. The key model inputs Moody's uses in Moody's analysis, such as par, weighted average rating factor, diversity score and the weighted average recovery rate, are based on Moody's published methodology and could differ from the trustee's reported numbers. In Moody's base case, Moody's used the following assumptions: Performing par and principal proceeds balance: EUR392.9m Defaulted Securities: EUR5.2m Diversity Score: 56 Weighted Average Rating Factor (WARF): 2902 Weighted Average Life (WAL): 4.22 years Weighted Average Spread (WAS): 3.72% Weighted Average Coupon (WAC): 3.87% Weighted Average Recovery Rate (WARR): 43.82% Par haircut in OC tests and interest diversion test: 0% The default probability derives from the credit quality of the collateral pool and Moody's expectations of the remaining life of the collateral pool. The estimated average recovery rate on future defaults is based primarily on the seniority of the assets in the collateral pool. In each case, historical and market performance and a collateral manager's latitude to trade collateral are also relevant factors. Moody's incorporates these default and recovery characteristics of the collateral pool into Moody's cash flow model analysis, subjecting them to stresses as a function of the target rating of each CLO liability it is analysing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Collateralized Loan Obligations" published in April 2026. Counterparty Exposure: The rating action took into consideration the notes' exposure to relevant counterparties, such as account bank, using the methodology "Structured Finance Counterparty Risks" published in May 2025. Moody's concluded the ratings of the notes are not constrained by these risks. Factors that would lead to an upgrade or downgrade of the ratings: The rated notes' performance is subject to uncertainty. The notes' performance is sensitive to the performance of the underlying portfolio, which in turn depends on economic and credit conditions that may change. The collateral manager's investment decisions and management of the transaction will also affect the notes' performance. Additional uncertainty about performance is due to the following: -- Portfolio amortisation: Once reaching the end of the reinvestment period in July 2026, The main source of uncertainty in this transaction is the pace of amortisation of the underlying portfolio, which can vary significantly depending on market conditions and have a significant impact on the notes' ratings. Amortisation could accelerate as a consequence of high loan prepayment levels or collateral sales by the collateral manager or be delayed by an increase in loan amend-and-extend restructurings. Fast amortisation would usually benefit the ratings of the notes beginning with the notes having the highest prepayment priority. -- Weighted average life: The notes' ratings are sensitive to the weighted average life assumption of the portfolio, which could lengthen as a result of the manager's decision to reinvest in new issue loans or other loans with longer maturities, or participate in amend-to-extend offerings. The effect on the ratings of extending the portfolio's weighted average life can be positive or negative depending on the notes' seniority. -- Recovery of defaulted assets: Market value fluctuations in trustee-reported defaulted assets and those Moody's assumes have defaulted can result in volatility in the deal's over-collateralisation levels. Further, the timing of recoveries and the manager's decision whether to work out or sell defaulted assets can also result in additional uncertainty. Moody's analysed defaulted recoveries assuming the lower of the market price or the recovery rate to account for potential volatility in market prices. Recoveries higher than Moody's expectations would have a positive impact on the notes' ratings. In addition to the quantitative factors that Moody's explicitly modelled, qualitative factors are part of the rating committee's considerations. These qualitative factors include the structural protections in the transaction, its recent performance given the market environment, the legal environment, specific documentation features, the collateral manager's track record and the potential for selection bias in the portfolio. All information available to rating committees, including macroeconomic forecasts, input from Moody's other analytical groups, market factors, and judgments regarding the nature and severity of credit stress on the transactions, can influence the final rating decision. ========= I T A L Y ========= BRIGNOLE CQ 2024: Fitch Affirms 'BB+sf' Rating on Class X Notes --------------------------------------------------------------- Fitch Ratings has revised Brignole CQ 2024 S.r.l.'s class B and D notes' Outlook to Stable from Positive, while affirming all ratings. Entity/Debt Rating Prior ----------- ------ ----- Brignole CQ 2024 S.r.l. Class A IT0005612319 LT AA+sf Affirmed AA+sf Class B IT0005612327 LT Asf Affirmed Asf Class C IT0005612335 LT BBBsf Affirmed BBBsf Class D IT0005612343 LT BBB-sf Affirmed BBB-sf Class X IT0005612350 LT BB+sf Affirmed BB+sf Transaction Summary Brignole CQ 2024 S.r.l. is a static securitisation of fully amortising salary assignment loans (SAL) granted by Creditis Servizi Finanziari S.p.A to pensioners, and public- and private-sector employees. KEY RATING DRIVERS Performance within Expectations: As of April 2026, defaults, mainly life defaults, have continued occurring earlier than the transaction's default definition of seven months. As a result, cumulative gross defaults are more front-loaded than expected at closing. However, they remain commensurate with Fitch's lifetime default base case assumption of 8.1%. Cumulative gross defaults were 3.7% of the collateral balance at closing, while arrears 90+ days remained stable at 0.3%. The revision of the Outlooks on the class B and D notes to Stable reflects that these tranches cannot sustain higher ratings given current credit enhancement. Sovereign Adjustment Factor Applies: The public sector exposure is over 33% of the portfolio's outstanding balance. Fitch applied a sovereign adjustment factor (SAF) of 1.3x to non-life default multiples at 'AA+sf' for public-sector borrowers and pensioners to reflect SAL's considerable dependence on, and interconnectedness with, the Italian sovereign. The rating action reflects also the recalibration of its default multiples for intermediate ratings of 'Bsf' to 'AA+sf' following the upgrade of Italy's ratings and, as a result, the revised 'AA+sf' maximum achievable for Italian structured finance deals (see 'Fitch Upgrades 72 Italian SF Tranches on Sovereign Upgrade; Revised 44 tranches to Positive Outlook', dated 16 October 2025). Mandatory Insurance Increases Recoveries: The underlying loans benefit from mandatory insurance (life or unemployment, as applicable). The 'AA+sf' 31.3% recovery rate is determined by applying a 55% haircut to unsecured uninsured recoveries and haircuts that are commensurate with insurers' ratings for insured recoveries, in accordance with Fitch's criteria. Sequential Switch Mitigates Pro-Rata Repayment: The class A to D notes is repaying pro-rata until a sequential redemption event occurs if, among other events, the cumulative gross default ratio exceeds certain thresholds. The mandatory switch to sequential paydown when the outstanding collateral balance falls below 10% mitigates tail risk. In its expected case, Fitch believes the switch to sequential amortisation is unlikely until the 10% collateral balance trigger is breached, given the gap between its expectations for the portfolio's performance and defined triggers. Payment Interruption Risk Mitigated: Payment interruption risk is mitigated for the senior notes as at least six months of the class A to D interest payments and senior expenses are protected. In its assessment, Fitch considered the transaction's reserve fund and a buffer of more than five years between the legal final maturity of the notes and the last maturing loan in the portfolio. Fitch has assumed that payments from private-sector borrowers will continue to be made in the event of salary and pension delays arising from sovereign distress. Excess Spread Dependence: The class X notes are not collateralised, and the related interest and principal are paid from available excess spread. The class X notes started amortising from the issue date according to a schedule. Excess spread-dependent notes are typically sensitive to underlying loan performance and prepayments and cannot achieve a rating higher than 'BB+sf'. 'AA+sf' Sovereign Cap: Italian structured finance transactions are capped at six notches above the rating of Italy (BBB+/Stable/F1), which is the case for the class A notes. No additional rating cap applies because the portfolio's top 10 employers, excluding pension providers, represented less than 20% of the portfolio balance at closing. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The class A notes are sensitive to changes in Italy's Long-Term IDR. A downgrade of Italy's IDR and a revision downwards of the 'AA+sf' rating cap for Italian structured finance transactions would trigger downgrades of the notes rated at this level. All the notes' ratings are sensitive to the length of the pro-rata period and may face downward rating pressure during a prolonged pro-rata period. An unexpected increase in the frequency of defaults or a decrease in the recovery rates could produce larger losses than the base case. For example, a simultaneous increase in the default base case by 25%, and a decrease in the recovery base case by 25% would lead to downgrades of up to seven notches for the class A to X notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of Italy's IDR and a revision upwards of the 'AA+sf' rating cap for Italian structured finance transactions could trigger upgrades of the notes rated at this level. This is provided sufficient credit enhancement is available to withstand stress at a higher rating. An unexpected decrease in the frequency of defaults or an increase in the recovery rates could produce smaller losses than the base case. For example, a simultaneous decrease in the default base case by 25% and an increase in the recovery base case by 25% would lead to upgrades of up to three notches for the class B notes and up to four notches for the class C and D 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 pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Prior to the transaction's 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. Prior to the transaction's closing, Fitch conducted a review of a small, targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. DOLCETTO HOLDCO: Moody's Alters Outlook on 'B3' CFR to Positive --------------------------------------------------------------- Moody's Ratings has affirmed the B3 corporate family rating and the B3-PD probability of default rating of Dolcetto HoldCo S.p.A. (DOC Pharma or the company). Consequently, Moody's have affirmed the B3 instrument ratings of the backed senior secured notes issued by the company, due in 2032. The outlook has been changed to positive from stable. RATINGS RATIONALE The ratings affirmation and change to positive outlook reflect Moody's expectations that the company's key credit metrics will continue to improve over the next 12-18 months. Over this period, Moody's expects Moody's-adjusted gross leverage to improve below 6x, supported by good Moody's-adjusted free cash flow (FCF) generation of around EUR30-40 million per year and Moody's-adjusted EBITA to interest expense above 2x. The company has also demonstrated a solid track record of organic growth and cash flow generation, which also underpins the rating action. Over the next 12-18 months, Moody's expects organic revenue growth in the mid- to high-single-digit range in percentages, driven mainly by new generic drug launches and continued penetration of over-the-counter (OTC) products under the Muscoril brand. Over the same period of time, Moody's also expects Moody's-adjusted EBITDA to increase to around EUR170-180 million from EUR141 million in 2025. DOC Pharma's B3 rating continues to reflect its strong position in the Italian retail market for Class A drugs, where generic penetration and growth remain favourable; solid operating performance in recent years, which has supported market share gains in Class A drugs; a broad and well-diversified portfolio across therapeutic categories; and high profitability margins with good free cash flow generation. The rating is constrained by high leverage and execution risk related to the company's growth strategy, which includes acquiring off-patent branded products and expanding its OTC offering, including nutraceuticals. Its asset-light model also increases exposure to potential supply chain disruption and stock shortages, while its small scale and concentration in Italy heighten vulnerability to regulatory changes. Although Moody's do not expect further major M&A, additional debt-funded transactions could slow organic deleveraging, as seen recently. In May 2026, the company acquired Riopan, a branded anti-acid product sold in Italy and ten other European countries. The company has already secured meaningful cost synergies that should support Riopan's profitability over the next two years and could also expand the product through additional OTC opportunities. The acquisition was funded through a EUR90 million add-on to the company's backed senior secured notes. OUTLOOK The positive outlook reflects Moody's expectations that DOC Pharma's operating performance will remain strong and that it will successfully integrate recent acquisitions, which will result in EBITDA growth and an improvement of its Moody's-adjusted gross leverage below 6x, with good FCF generation, in the next 12-18 months. The outlook assumes that the company will not undertake any major debt-funded acquisitions or shareholder distributions and that its liquidity will remain at least adequate. The outlook could be revised to stable if the company's recent strong performance does not prove sustainable or there is a significant debt-funded acquisition, leading to credit metrics not improving as Moody's expects. LIQUIDITY DOC Pharma has good liquidity, mainly supported by cash and cash equivalents of EUR19 million as of March 31, 2026 and access to its EUR150 million super senior revolving credit facility (SSRCF) which is undrawn as of the same date. Over the next 12-18 months, Moody's expects good Moody's-adjusted FCF generation of about EUR30-40 million annually, and have assumed increased working capital requirements of about 5% of revenue, related to the integration of recent acquisitions, and modest capital expenditure of about 2-3% of revenue. The SSRCF lenders benefit from a springing consolidated senior secured net leverage covenant set at 11.5x and tested only when the RCF is drawn by more than 40%. Moody's anticipates that the company will have significant capacity against this threshold, if tested. STRUCTURAL CONSIDERATIONS The PDR of B3-PD reflects Moody's assumptions of a 50% family recovery rate for structures with a mix of bank debt and notes. The B3 ratings of the backed senior secured notes are in line with the B3 CFR, reflecting their positioning in the capital structure, with only the EUR150 million SSRCF ranking ahead of them. All debt instruments benefit from guarantees by DOC Generici s.r.l. The security package mainly consists of share pledges, certain material bank accounts and intercompany receivables. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upward rating pressure could arise if DOC Pharma continues to successfully execute its strategy and maintains a good operating performance, delivering EBITDA growth and supporting deleveraging. Quantitatively, this would translate into its leverage ratio (defined as Moody's-adjusted gross debt/EBITDA) trending towards 5.5x, its Moody's-adjusted FCF to debt increasing above 5%, and its Moody's-adjusted EBITA to interest expense improving above 2.0x, all on a sustained basis. Downward rating pressure could develop if DOC Pharma's operating performance weakens or there are material issues or delays in integrating acquisitions. Numerically, this would translate into a Moody's-adjusted gross leverage remaining well above 6.5x for a prolonged period, or its Moody's-adjusted FCF turning negative, or its Moody's-adjusted EBITA to interest expense declining towards 1x, for a prolonged period of time. A deterioration of the company's liquidity profile or an adverse change in the regulatory environment in Italy could create downward pressure on its ratings. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Pharmaceuticals published in September 2025. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. COMPANY PROFILE DOC Pharma is a leading Italian independent generics company operating in the retail channel. The company operates mainly in the Italian market and has operations across a wide variety of therapeutic categories. DOC Pharma has expanded its product offering to include off-patent branded drugs and OTC non-prescription products. The company generated net revenue of EUR367 million and company adjusted EBITDA of EUR145 million for the last twelve months ended in March 31, 2026. Private equity group TPG Inc. has a majority shareholder position with Intermediate Capital Group PLC (ICG) and management and other co-investors having minority positions. FLOS B&B: Fitch Puts 'B' LongTerm IDR on Watch Positive ------------------------------------------------------- Fitch Ratings has placed Flos B&B Italia S.p.A.'s Long-Term Issuer Default Rating (IDR) senior secured notes rating - both at 'B' - on Rating Watch Positive (RWP). The notes have a Recovery Rating of 'RR4'. The RWP follows the announcement of divestment of Louis Poulsen, a high-end Danish lighting business, with the plan to use the proceeds for partial debt repayment. Flos expects the divestment to be completed in 2H26, subject to customary conditions, including regulatory approvals. The RWP reflects Fitch's expectation that Flos's leverage will improve sharply to 4x-4.5x over 2026-2028, following debt prepayment, below the positive sensitivity of 5x. The RWP for senior secured notes reflects a potential upgrade, in line with the IDR. Key Rating Drivers Louis Poulsen Disposal Rating Positive: Fitch expects that the announced divestment will have a limited impact the company's business profile, with only moderate reduction in scale and a narrower brand portfolio but will lead to significant deleveraging and reduced pressure on free cash flow (FCF) from debt costs. Flos announced the divestment of Louis Poulsen, one of its high-end lighting brands, which contributed 17% of its revenue and 23% of its EBITDA in 2025. Flos plans to use the proceeds to partly repay its debt, in compliance with the terms of its existing financial arrangements. The divestment is expected to close in 2H26. Material Deleveraging after Sale: Fitch expects Flos's leverage to reduce to and remain below 5x, its positive sensitivity, from 6.4x at end-2025, following the sale completion, with most of proceeds used for debt repayment. A more conservative capital structure and, potentially, improving FCF will offset a moderate reduction in scale, which will remain compatible with the higher end of the 'B' rating category. Fitch expects that the negative impact on Flos's operating margin from the disposal of a higher-margin business will be more than offset by interest costs savings, resulting in an improving FCF margin. Flos's ratings have been under pressure from declining revenue over 2023-2025, driving up its leverage to above 6x and exhausting rating headroom. This is despite the company's prepayment a total of EUR85 million expensive fixed-rate notes in 2024 and 2025, underscoring its proactive liability management. Refocus on Core Brands: Fitch views the disposal as being aligned with the group's strategic repositioning since end-2024 and it refocus on the core brands of Flos and B&B, following the appointment of a new senior management team in 2025. This disposal follows the termination of the Fendi Casa joint venture in July 2025. Flos has stated that it would focus on the organic growth of the existing brand portfolio, benefiting from high brand awareness and competitiveness in the high-end and premium lighting and furniture categories. Weak Demand Pressures Revenue: Fitch anticipates Flos's organic revenue to continue to fall in 2026, due to cyclical weakness in the luxury market, softer consumer sentiment and geopolitical uncertainty, which continue to weigh on consumer spending. Flos reported soft 1Q26 results, with its revenue declining 5% (after excluding Fendi Casa), or by 0.5% at constant currency, due to subdued demand and a weaker US dollar. The group's main markets, the US and Europe, are likely to remain weak, while APAC does not provide enough support for a broader recovery. Competition is also rising from Chinese luxury brands in domestic markets. FCF to be Further Boosted: Fitch expects FCF margins to improve above 5%, on a reduced interest burden after debt repayment, despite lower expected EBITDA margin after the Louis Poulsen sale. The divested brand had a margin of 26.2% in 2025, higher than Flos's consolidated margin of 19.3%. Fitch expects EBITDA margin to be about 17% after the sale, which remains strong versus peers'. Fitch also expects FCF to be supported by minimal working capital needs and moderate capex of about 4% of revenue. Profitability will continue to benefit from a flexible cost base and strong supply chain management. Sustained positive FCF remains one of the major supportive factors for the IDR. Financial Flexibility to Improve: Fitch expects Flos's interest coverage to improve above 3.5x in 2027-2028, after its planned debt prepayment. Liquidity will be further supported by improving FCF. Fitch assumes Flos to repay its EUR20 million drawn revolving credit facility (RCF) by end-2026. Flos maintained sufficient liquidity at end-March 2026, with EUR69 million in reported cash and a EUR125 million undrawn RCF out of a total committed EUR145 million. Peer Analysis Flos's luxury peers are Capri Holdings Limited (BB/Negative; the owner of Jimmy Choo and Michael Kors (USA), Inc.) and Tapestry Inc., the owner of Coach, Kate Spade and Stuart Weitzman. Fitch sees higher fashion risk and greater exposure to retail distribution in Capri and Tapestry than at Flos. However, comparability is limited, as Flos is smaller and has a substantially different capital structure. Within Fitch's leveraged buyout portfolio of branded consumer goods, Flos shares similarities with Birkenstock Holding plc (BB+/Stable). The shoe producer's rating reflects its larger scale, stronger brand recognition, better margins and lower leverage than Flos, especially after its initial public offering in 2024 and partial debt prepayment. Mobilux Group SCA (B+/Stable) has greater operational scale and a stronger position in its respective markets, but a thinner EBITDA margin of 6.1% compared with Flos. Its rating is one notch higher, reflecting stronger EBITDAR leverage of under 4.0x and a strong cash balance. Rino Mastrotto Group S.p.A. (RMG; B/Negative) is rated in line with Flos, on comparable EBITDA margins, and expectations of positive FCF. The Negative Outlook on RMG reflects a sharp increase in its leverage following weak operating performance in 2025. Fitch’s Key Rating-Case Assumptions - Revenue to decline 3.6% in 2026, before returning to low-to-mid single-digit expansion from 2027. Revenue growth to be driven by organic expansion and bolt-on M&A - EBITDA margin to remain at 19%-20% over 2026-2029 - Neutral working capital-related cash flow between 2026 and 2029 - Capex at an average of 4.3% of sales over the next four years - Bolt-on M&A acquisitions of about EUR20 million a year in 2027-2029 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', Moderate), sector characteristics ('bb', Moderate), market and competitive positioning ('bb-', Higher), diversification and asset quality ('bb+', Moderate), company operational characteristics ('bb', Moderate), profitability ('bbb', Lower), financial structure ('b', Higher), and financial flexibility ('b+', Moderate). 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 result in an adjustment of -1 notch. The governance assessment of 'good' has no impact. The operating environment assessment of 'a+' has no impact. The SCP is 'b'. Fitch made no adjustments to the SCP, resulting in an IDR of 'B'. Recovery Analysis The recovery analysis assumes that Flos would be considered a going concern (GC) in bankruptcy and would be reorganised rather than liquidated, given its immaterial asset base and the inherent value of its distinctive portfolio of brands. Additional value lies in its retail network and wholesale and contract client portfolio. Fitch assumes a 10% administrative claim. Fitch assesses GC EBITDA (pre-disposal) at about EUR95 million, following slower revenue growth due to weak expansion in certain distribution channels and weaker pricing, leading to lower margins. At this GC EBITDA level, Fitch estimates Flos would face an unsustainable capital structure, making refinancing extremely difficult and necessitating a debt restructuring. Fitch used a 6.0x multiple, which is at the high end of its distressed multiples for high-yield and leveraged finance credits. Its choice of multiple is justified by the premium valuations in the sector for strong design and luxury brands. The security package includes share pledges in its main operating subsidiaries. No security is provided over the intellectual property rights, access to which is, however, protected by negative pledges and limitation-of-lien provisions. Fitch assumes Flos's RCF of EUR145 million to be fully drawn at default. The RCF ranks super senior, ahead of the senior secured notes of EUR890 million. Fitch expects Flos's factoring facilities, of about EUR6.6 million, to remain available in bankruptcy, given its industry and client base. Its waterfall analysis generates a ranked recovery for senior secured noteholders in the 'RR4' category, leading to a 'B' instrument rating, in line with the IDR. RATING SENSITIVITIES Fitch expects to resolve the RWP on the transaction close, which is anticipated to be completed in 4Q26. Consequently, resolution of the RWP could exceed six months. If the proposed deal does not take place, Fitch would remove the RWP, and the following rating sensitivities would apply to Flos: Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Persisting operating underperformance, higher drawdowns under the RCF, or debt-funded acquisitions leading to EBITDA leverage higher than 6.0x through the cycle - EBITDA interest coverage deteriorating towards 2.0x - FCF margin lower than 2% Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA leverage below 5.0x on a sustained basis, including as a result of a lower leverage target - EBITDA interest coverage above 3.0x on a sustained basis - FCF margin of 5% or higher, due to successful pass-through of input cost increases and strong retention of pricing power Liquidity and Debt Structure Flos's liquidity is satisfactory. Fitch-adjusted available cash at end-March 2026 was EUR67 million, while its RCF was drawn by EUR20 million. Liquidity is further supported by its expectation of consistently positive FCF. Flos's debt maturity profile improved after its refinancing in December 2024, when it extended the maturity of its floating-rate notes to 2029. In addition, its EUR340 million senior secured notes are due in November 2028. Issuer Profile Flos is a leading high-end furniture designer and manufacturer, based in Italy, with global operations through different channels: wholesale, contracts, e-commerce and directly operated stores. 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 Flos. 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 ----------- ------ -------- ----- Flos B&B Italia S.p.A. LT IDR B Rating Watch On B senior secured LT B Rating Watch On RR4 B VIMERCATI SPA: July 1 Deadline Set for Expressions of Interest -------------------------------------------------------------- In the context of the negotiated settlement procedure (composizione negoziata) initiated by VIMERCATI S.p.A., with registered office in Pero (MI), and PROGIND S.r.L, with registered office in Azeglio (TO), the Appointed Independent Expert, A. Guiotto, announced the commencement of a competitive bidding procedure pursuant to Article 22 of the Italian Crisis and Insolvency Code for the lease and subsequent acquisition of the following business units: (i) Vimercati Unit: manufacturing of mechatronic automotive components, approx. 160 employees, located in Pero (MI); and (ii) Progind Unit: automotive moulds and plastic injection moulding, approx. 60 employees, located in Azeglio (TO). Included: tangible assets, including Vimercati's production facility, intangible assets, employment relationships and severance pay (7FR), commercial contracts, authorisations and licences. Excluded: inventory subject to a consignment agreement, pre-existing receivables/payables, cash, bank debt, tax and social security liabilities, shareholder/intercompany loans, and litigation. MINIMUM TERMS AND CONDITIONS Business Lease: minimum monthly rent EUR20,000; duration until December 31, 2026. Acquisition: minimum purchase price EUR8,500,085.67, of which EUR7,000,000 for Vimercati and EUR1,500,085.67 for Progind, plus CNC Success Contribution of EUR1,000,000. Lease payments shall be deducted from the final purchase price. The purchase option must be exercised before lease expiry. PROCEDURE AND KEY DATES Data Room Access: June 12 - July 13, 2026, subject to execution of a Non-Disclosure Agreement and payment of a EUR80,000 security deposit (cashier's cheque to the Expert or designated Counsel). Requests: michele.petriello@milano.pecavvocati.it Expression of Interest: by July 1, 2026 at 11:59 p.m. CET. Binding Offers: to be delivered in a sealed envelope to the Notary by July 13, 2026 at 2:00 p.m. CET, with a security deposit equal to 10% of the offered price plus CNC Contribution. Competitive Auction: July 13, 2026 at 3:00 p.m. CET at the Notary's office. Minimum bid increments: EUR50,000 up to EUR10 million; EUR75,000 from EUR10 million to EUR11 million; EUR100,000 above EUR11 million. INFORMATION AND DOCUMENTATION The Bidding Rules are available on the Companies' websites, the Italian Public Sales Portal (PVP) and www.asteannunci it. Independent Expert PEC: alberto.guiotto@odec.pr.legalmail.it Companies' PEC: michele.petriello@milano.pecavvocati.it =================== K A Z A K H S T A N =================== SOCIAL-ENTREPRENEURIAL CORP: Fitch Assigns BB IDRs, Outlook Stable ------------------------------------------------------------------ Fitch Ratings has assigned JSC Social-Entrepreneurial Corporation Aktobe (SEC Aktobe) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) of 'BB' with Stable Outlooks. The ratings reflect Fitch's view that extraordinary support from Aktobe Region (BBB-/Stable) for SEC Aktobe is 'Very likely', given its tight links with the region and its important public mission as a development institution. Fitch applies a top-down notching from the region's rating under its Government-Related Entities (GRE) Rating Criteria. SEC Aktobe's Standalone Credit Profile (SCP) is 'ccc+', seven notches below the region's rating, as assessed under its Public Policy Revenue-Supported Entities Rating Criteria. These assessments result in SEC Aktobe's 'BB' IDR, two notches below the region's. KEY RATING DRIVERS Support Score Assessment 'Very likely' Fitch considers that extraordinary support from Aktobe Region to SEC Aktobe would be 'Very likely' in case of need, reflecting a support score of 32.5 (out of a maximum 60) under its GRE criteria. This reflects a combination of responsibility to support and incentive to support factors assessment as below. Responsibility to Support Decision Making and Oversight 'Very Strong' SEC Aktobe is a joint-stock company wholly owned by Aktobe Region. The board of directors includes a senior regional official alongside the company's CEO and independent directors. The board approves strategies, major transactions and appoints senior management. All strategic plans, key performance indicators and development targets are closely coordinated with the region's administration and subject to municipal approval. Precedents of Support 'Not Strong Enough' SEC Aktobe receives support from the regional government, primarily in the form of budget loans for the food stabilisation programme (which constituted 100% of the company's debt up to end-2024 and about 80% at end-2025) and partial compensation of costs associated with the industrial zone. The region also provides targeted funding for specific programmes where SEC Aktobe acts as operator, allowing it to place temporarily idle funds in bank accounts and earn interest income. Fitch assesses precedents of support as 'Not Strong Enough' because the regional government has not provided sufficient support for the company to maintain a viable financial profile. SEC Aktobe generated consistently negative EBITDA throughout 2021-2024, as operating activities alone do not cover costs. The region compensates the direct costs of the industrial zone but not SEC Aktobe's administrative overheads. Interest income from programme funds has partially offset these operating losses, but Fitch does not consider this sustainable form of support given the volatility of cash balances and interest rates, and legislative restrictions on placing programme funds into deposits. Incentives to Support Preservation of Government Policy Role 'Strong' SEC Aktobe is the region's primary development institution. Its functions include food price stabilisation, management of the regional industrial zone, agricultural and SME lending. It is also operator of targeted government programmes, managing associated cash flows on behalf of the regional administration. In Fitch's view, disruption to SEC Aktobe's operations would materially affect the region's socioeconomic stability and long-term development, affecting the entire population through higher food inflation, undermining SME support infrastructure, and damaging public trust in local government. Political repercussions could be significant given the company's deep integration within municipal governance and its central role in executing key government programmes. Contagion Risk 'Strong' SEC Aktobe has a separate budget and its debt is not consolidated in the regional government's accounts. The company's debt portfolio at end-2024 consisted entirely of regional budget loans (KZT2.9 billion). From 2025, SEC Aktobe also borrows from Agrarian Credit Corporation (BBB/Stable), a subsidiary of JSC National Investment Holding Baiterek (BBB/Stable), and has issued a small market bond (KZT50 million). A default by SEC Aktobe would likely affect market perception, raising funding costs for the region and other local GREs, given the company's high public profile and close operational alignment with the region's strategic priorities. Standalone Credit Profile SEC Aktobe's 'ccc+' SCP reflects the combination of a 'Weaker' risk profile and a 'b' financial profile. The SCP also factors in peer comparison, including consistent operational losses, very thin margin of safety and reliance on the region for continuous support. Risk Profile: 'Weaker' Fitch assesses SEC Aktobe's risk profile at 'Weaker', reflecting the combination of assessments: Revenue Risk: 'Weaker' SEC Aktobe operates in Aktobe Region, one of Kazakhstan's major agricultural and industrial regions, with a diversified economic base. The company generates operating revenue primarily through its industrial zone (approximately 60% of operating revenue in 2024), consisting mainly of cost compensation from the regional budget supplemented by rents and fees from zone residents. Additional streams include sales of food products through the stabilisation fund (19%) and agency commissions from administering government programmes (18%). Operating revenue has historically been volatile, reflecting structural shifts in the company's mandate, which continues to evolve. Operational scope and pricing policies are determined by government directives, and most activities carry social pricing that only partially covers associated direct and administrative costs, leading to consistent operating losses. These factors support a 'Weaker' revenue risk assessment. Expenditure Risk: 'Weaker' Opex consistently exceeds operating revenues. Costs are dominated by goods, services and maintenance (66% in 2024, largely reflecting industrial zone utilities and cost of goods sold for food stabilisation) and staff costs (30%). The company has limited ability to reduce expenditure in response to revenue shortfalls, as staff costs are largely fixed given the policy-driven and administrative nature of its functions. SEC Aktobe also has a record of material impairments on financial assets and investments, and its planned expansion into direct lending and investment projects introduces additional credit risk. Liabilities and Liquidity Risk: 'Midrange' The company's debt at end-2024 (KZT2.9 billion) consisted entirely of low-cost regional budget loans with no foreign exchange or interest rate risk. Cash and deposits on the balance sheet (KZT11.4 billion) represent restricted programme funds unavailable for debt service, but the rollover nature of budget lending mitigates immediate repayment pressure. The funding structure began diversifying in 2025, signalling a shift toward more complex liabilities as lending operations expand. Financial Profile 'b' Under Fitch's rating case, SEC Aktobe's EBITDA remains negative throughout the scenario horizon, in line with 2021-2024 actuals. With negative debt metrics and no unrestricted liquidity available for debt service, all assessments (net adjusted debt/EBITDA, debt service coverage, gross interest coverage, and liquidity coverage) are 'b', yielding a 'b' financial profile. Operating revenue is structurally short of costs, with regional government compensation only partial. Interest income from programme funds held in bank deposits has historically offset some of this shortfall but falls outside its EBITDA calculation and is inherently volatile. Under its base case, the intended removal of loss-making functions and shift toward lending and investment activities bring EBITDA toward break-even by the end of the scenario. The rating case includes stresses for historical volatility and execution risks surrounding the transition, yielding persistently negative EBITDA throughout. Short-Term Ratings SEC Aktobe's 'B' Short-Term IDR corresponds to its 'BB' Long-Term IDR. National Ratings SEC Aktobe's National Long-Term Rating is 'A+(kaz)' under Fitch's National Scale Rating Criteria, reflecting correspondence to its 'BB' Long-Term Local-Currency IDR and peer comparison. Peer Analysis SEC Aktobe's closest peers are JSC Social-Entrepreneurial Corporation Astana (BBB-/Stable) and JSC Social-Entrepreneurial Corporation Almaty (BBB-/Stable), similar regional development institutions in Kazakhstan. International peers include urban development entities, such as Societe d'Etude, de Maitrise d'Ouvrage et d'Amenagement Parisienne (SEMAPA; A+/Stable) in the City of Paris and municipal companies in China that have various functions for local economic development, largely government-initiated and commercial construction projects. These include Shandong Land Development Group Co., Ltd. (BBB+/Positive), Taizhou Urban Construction and Investment Development Group Co., Ltd. (BBB/Stable) and Foshan Construction & Development Group Co.,Ltd (BBB+/Stable). The SCPs of most peers are in the 'b' category (SEMAPA does not have a SCP), but all companies benefit from support from their respective governments. This support leads to IDRs that are two categories higher than the SCPs, with exact notching dependent on Fitch's assessment of the relevant government's ability to provide support and support score assessment. Issuer Profile SEC Aktobe is a development institution of Aktobe Region and contributes to sustainable socio-economic growth by implementing the region's programmes in agricultural production support, food security, and broader entrepreneurial development. Key Assumptions Fitch's rating case is a "through-the-cycle" scenario, which incorporates a combination of revenue, cost and financial risk stresses. It is based on 2020-2024 historical figures and 2025-2029 scenario assumptions: - Operating revenue growth on average at approximately 18% a year, reflecting return from the expansion of investment activities - Opex growth on average at approximately 14% a year, reflecting expected decrease or restructure of loss-generating activities - Average net capex of approximately KZT1.9 billion a year, predominantly reflecting expansion of lending activities - Cost of debt on average at 4.7%, driven by a mix of preferential rates from government-related lenders and capital market debt Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A downgrade of Aktobe Region's ratings - A weakening of the region's control over or incentive to support SEC Aktobe, resulting in a support score of 25 points or less, which would lead to wider notching from the region's ratings Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Aktobe Region's ratings - An increase in the support score to 35 points or more, which could be driven by material improvements in SEC Aktobe's financial profile that reflect stronger regional support and result in a higher precedent of support assessment, narrowing the notching from the region's ratings Climate Vulnerability Signals The Climate.VS for 2035 for SEC Aktobe is 51. The high VS reflects elevated exposure to extreme weather risk. This could affect SEC Aktobe through its lending operations to agricultural producers and is relevant to the ratings in conjunction with other factors. However, SEC Aktobe's ratings are driven by support from Aktobe Region, which mitigates these risks. ESG Considerations SEC Aktobe has an ESG Relevance Score of '4' for Exposure to Environmental Impacts due to potential effects of extreme weather conditions on agricultural producers to which SEC Aktobe extends loans, 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. Public Ratings with Credit Linkage to other ratings SEC Aktobe's IDRs are linked to Aktobe Region's ratings Entity/Debt Rating ----------- ------ JSC Social- Entrepreneurial Corporation Aktobe LT IDR BB New Rating ST IDR B New Rating LC LT IDR BB New Rating LC ST IDR B New Rating Natl LT A+(kaz) New Rating senior unsecured LT BB New Rating =================== L U X E M B O U R G =================== CULLINAN HOLDCO: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable ---------------------------------------------------------------- Fitch Ratings has affirmed Cullinan Holdco SCSp's (Graanul) Long-Term Issuer Default Rating (IDR) at 'B-' and senior secured rating at 'B-' and removed them from Rating Watch Negative (RWN). The Outlook on the IDR is Stable. The Recovery Rating is 'RR4'. The removal of the RWN and rating affirmation reflect the extension of its contract with a major utility until 2030, removing short-term re-contracting risk. Graanul's rating is constrained by the still material risk related to the ability to maintain stable sales volumes and by high leverage. Key Rating Drivers Important Contract Extended: Graanul's largest utility customer, historically accounting for about 50% of annual wood pellet production, has extended its contract to 2030. The new contract-for-difference (CfD) bridging mechanism for the customer's biomass plant runs from March 2027 to March 2031 and covers around half the load factor compared with the current scheme. The renewal is a positive development for Graanul's credit profile, as it removes the near-term re-contracting risk associated with its largest revenue contributor and provides greater cash flow visibility through the end of the decade. 2027 Contracting Progress: Contracting for 2027 is well advanced with over 50% contracted on a firm volume basis. Notably, these contracted volumes relate solely to take-or-pay commitments. Fitch assumes Graanul will be able to contract additional volumes for 2027 in 2H26. Graanul also maintains a portion of its volume as spot sales, providing a buffer to capture more favourable pricing opportunities that typically arise during the heating season. Concentrated Customer Base: Graanul has a highly concentrated customer base, with the three largest customers in the pellet production segment accounting for approximately78% of total revenue in 2025. Customer concentration is not uncommon among pellet producers, which bid for large contracts that often result in a significant share of a single customer in the total revenue mix, but it is a rating constraint. Regulatory Risk: Fitch views the current regulatory environment as broadly supportive of pellet producers, although the sustainability of feedstock faces increased regulatory scrutiny. The revised Renewable Energy Directive continues to count primary wood biomass as 100% renewable and zero rated in the EU Emissions Trading System. Subsidies for biomass in the UK, its largest contracted market, were extended until 2031 but state support is gradually decreasing and there is limited visibility on future cost competitiveness of wood pellets for utilities. Higher carbon prices could support the switch to biomass from coal-based heat or electricity installations in the EU. High Leverage: Fitch projects that Graanul will sustain sales volumes of 2.5 million tonnes, with average EBITDA — inclusive of contributions from electricity generation and logistics — of approximately EUR40/tonne. This translates into expected EBITDA gross leverage of approximately 6.0x over 2026-2029. This is within the 5.5x-7.5x range for the current rating, but Fitch views leverage as high for the company's scale, exposure to volume and price risk, and its concentrated customer base. Potential New Customers: Fitch understands from management that Graanul is working to diversify its customer base and exploring contracts with new customers in Poland and Scandinavia as well as in sustainable aviation fuels, lime and cement. Crystallisation of new contracts in the medium term could offset lower utility sales. Fitch views diversification as a critical factor supporting Graanul's long-term business viability. Peer Analysis Graanul's closest Fitch rated peers are Sunoco LP (BB+/Stable) and Puma Energy Holdings Pte. Ltd (BB+/Stable). Graanul focuses on the production and distribution of wood pellets and biomass energy, whereas Puma Energy focuses on traditional energy logistics and distribution. Graanul's scale is smaller than Puma Energy, with operations concentrated in Europe and the US, whereas Puma Energy offers midstream and downstream operations globally. Graanul's leverage profile is weaker, with average EBITDA net leverage of 5.3x in 2026-2027 compared with Puma Energy's 1.5x. Sunoco LP is the largest fuel distributor in the US, distributing about eight billion gallons a year. In addition to distributing motor fuel, Sunoco also distributes other petroleum products such as propane and lubricating oil, and about 25% of its volumes are sold under long-term contracts. Sunoco's scale is larger than Graanul's and its leverage lower than Graanul's. Fitch’s Key Rating-Case Assumptions - Volumes of about 2.5 million tonnes annually in 2026-2029 - EBITDA per tonne including CHP and logistics segments of around EUR40/tonne - Capex of EUR17 million annually - No dividends in 2026-2029 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 ('bb-', Moderate), market and competitive positioning ('b-', Higher), diversification and asset quality ('bb', Moderate), company operational characteristics ('b', Higher), profitability ('b', Moderate), financial structure ('bb-', Moderate), and financial flexibility ('b', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the historical year 2025, 10% for the forecast year 2026, 30% for the forecast year 2027, 30% for the forecast year 2028 and 20% for the forecast year 2029. 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 - Its recovery analysis assumes that Graanul would be reorganised as a going concern (GC) in bankruptcy rather than liquidated. - The GC EBITDA reflects its view of a sustainable, post-reorganisation EBITDA on which Fitch bases the enterprise valuation (EV). - The GC EBITDA of EUR85 million (net of lease charges) reflects production levels of about 2 million tonnes. - Fitch uses a multiple of 5.0x to estimate a GC enterprise value for Graanul, due to its position as the second-largest wood-pellet producer in Europe and the contractual nature of its operations. - Its revolving credit facility (RCF) is ranked as super senior to its senior secured notes. - Its analysis, after deducting 10% for administrative claims, generated a waterfall-generated recovery computation in the 'RR4' band, indicating a 'B-' rating for the senior secured notes. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Significant reduction in volumes or loss of a sizeable customer without a replacement - EBITDA gross leverage above 7.5x on a sustained basis - EBITDA interest coverage at or below 1x on a sustained basis Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improvement in the business profile including scale, customer diversification and contract duration - EBITDA gross leverage consistently below 5.5x Liquidity and Debt Structure Cash balance at end-2025 was EUR13 million against short-term debt of EUR16 million (excluding leases). Graanul had also EUR100 million available under its revolving credit facility maturing in 2029. Issuer Profile Graanul's main activity is renewable energy with production of wood pellets (nameplate capacity of 2.9 million tonnes) and production of electricity and heat from biomass. Summary of Financial Adjustments Fitch reduced operating costs by EUR9.6 million in 2025 to account for one-off refinancing costs. 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 Grannul. 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 ----------- ------ -------- ----- Cullinan Holdco SCSp LT IDR B- Affirmed B- senior secured LT B- Affirmed RR4 B- EUROPEAN MEDCO 3: Fitch Affirms 'B-' LongTerm IDR, Outlook Stable ----------------------------------------------------------------- Fitch Ratings has affirmed European Medco Development 3 S.a.r.l.'s (Axplora) Long-Term Issuer Default Rating (IDR) at 'B-' with a Stable Outlook. Fitch has also affirmed the senior secured debt issued by European Medco Development 4 S.a.r.l. at 'B' with a Recovery Rating of 'RR3'. The rating reflects Axplora's modest size, high leverage and weak but improving free cash flow (FCF) due to high growth capex, which are mitigated by the strength of its niche and profitable steroids and specialty active pharmaceutical ingredients (API) businesses and satisfactory liquidity headroom. The Stable Outlook reflects its expectation that the contract portfolio will be rebuilt in FY27 (year-end to March) after several years of revenue and earnings contraction, leading to improved leverage despite negative FCF due to high growth capex. Fitch projects further credit improvement from FY28, supported by EBITDA growth, albeit subject to some execution risk, notably regarding the pace of operational improvement at Novasep. Key Rating Drivers Weak FY26 Revenue; Profitability Maintained: Axplora's underlying operating performance in FY26 was overall weak with reduced revenue and operating cash flows. Revenue declined 5.5% in FY26, including a -1.8% FX impact and a 3.8% organic decline caused by lower sales from certain contracts, including the World Health Organisation. However, Axplora has maintained its profitability. Fitch-defined EBITDA margins were stable at 21.3%, as a large rise in margins at the specialty API division to 30% (from the low 20% range) and a modest rise in margins at the steroids division offset continued weakness at Novasep. Fitch expects the margins of the specialty API division to remain in the high 20% ranges, benefiting from production relocation to lower-cost plants in India. Growth; Margin Improvement from FY27: The continued strength of the highly profitable steroids division has supported Axplora's credit profile and has offset the continued weakness at Novasep, whose underperformance had previously caused a deterioration of margins and leverage. Fitch projects underlying EBITDA margins to gradually expand to 24% in FY27 and towards 27% in FY29, driven by a recovery of the Novasep division and structurally higher margins at the specialty API division related to new contracts and efficiencies from the relocation of some production to its lower-cost Indian plants. Recovery at Novasep; Execution Risks: Weakness at Novasep, the pharma CDMO (contract development and manufacturing organisation) division acquired in April 2022, has weighed on Axplora's performance since it lost three key customer contracts in FY23. Fitch believes that performance bottomed out in FY26 and expect a gradual recovery, supported by sales from new contracts. Fitch assesses execution risk as meaningful, given limited visibility on the timing of the operational improvement at Novasep. Evidence of progressive EBITDA growth throughout FY27, particularly in the CDMO division, would be a major sign of improving credit fundamentals for Axplora over the medium term. Underlying FCF to Improve: FCF was strongly positive in FY26 mostly due to a one-off insurance compensation. However, Fitch projects mid-single digit negative FCF margin in FY27 as growth capex resumes, in addition to incurring some exceptional costs. Nevertheless, Fitch forecasts underlying operating cash flow to improve, led by EBITDA growth from FY27. Axplora's commitment to growth capex will consume up to 9%-10% of revenue, but these investments will be central to its medium-term operational growth. Fitch expects the gradual rise of EBITDA to help turn FCF to neutral-to-positive from FY28. Deleveraging Expected: Fitch expects EBITDA growth will lead to a decrease in EBITDA gross leverage to 6.0x in FY27 from 6.7x in FY26, followed by an improvement to 5.5x in FY28, creating substantial rating headroom over the next 12-18 months. This deleveraging is a function of receding execution risks, particularly during the portfolio rebuilding in FY27. Some Concentration Risks: The rating is constrained by Axplora's small scale in a fragmented and competitive CDMO market, and certain customer and product concentration. This concentration is reflected in its business risk assessment, alongside the high operating leverage of Axplora's capex-intensive manufacturing-driven business model, with a high percentage of fixed costs. Resilient Niche Position: Axplora benefits from a resilient niche market position, supported by high barriers to entry in the main subsidiary, PharmaZell, particularly in its high-margin steroids and high-potency APIs. The group has modest geographic diversification, supplying European clients from its nine production sites in Germany, France, Italy and India. Its credit profile benefits from a supportive environment in the broader pharmaceutical market due to a growing and ageing population and increasing access to medical care, with generic drugs supported by government as a means to contain rising healthcare costs. Peer Analysis Fitch compares Axplora with Fitch-rated CDMO companies, such as Roar BidCo AB (Recipharm; B/Stable), Kepler S.p.A. (Biofarma; B/Stable) and F.I.S. Fabbrica Italiana Sintetici S.p.A. (FIS; B+/Stable). Axplora has similar scale by revenue with Biofarma and is considerably smaller than FIS and Recipharm. Axplora's EBITDA margin of about 20%-25% compares well with those of Biofarma, FIS, Nidda BondCo GmbH (B/Stable), Triley Midco Limited (B/Negative) and Recipharm. Its EBITDA margin is below that of about 28% of Financiere Top Mendel S.A.S. (Ceva Sante; B+/Stable), an animal health company. Fitch also compares Axplora with asset-light niche pharmaceutical companies that own drug patents but outsource their manufacturing to CDMOs, such as CHEPLAPHARM Arzneimittel GmbH (B/Stable) and ADVANZ PHARMA HoldCo Limited (B/Negative), whose EBITDA margins are above 30%. These companies also benefit from stronger FCF margins, but they suffer from neutral or structurally declining organic revenue, relying on acquisitions for growth instead. Axplora's EBITDA leverage compares well with those of Biofarma, CHEPLAPHARM and ADVANZ PHARMA, but its weaker versus FIS's and Rechipharm's. Fitch’s Key Rating-Case Assumptions - Revenue decline of 5.5% in FY26, including a -3.4% FX impact and a 2% organic decline due to specific contracts including the lower sales to the World Health Organsisation - Organic revenue growth of 2.5% in FY27, accelerating to 9.5% in FY28 and 11% in FY29 - Fitch-adjusted EBITDA margins stable at 21.3% in FY26 (excluding any insurance proceeds) and improving to 24% in FY27 and towards 27% by FY29 - Net capex, after client prepayments, of EUR37 million in FY26 and at about EUR45 million-50 million a year in FY27-FY29 - Small working capital outflow in FY26 and about EUR10 million over FY27-FY29 - No acquisitions - No shareholder distributions 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 ('bb+', Lower), market and competitive positioning ('b+', Moderate), diversification and asset quality ('b+', Higher), company operational characteristics ('bb-', Moderate), profitability ('b', Moderate), financial structure ('ccc+', Higher), and financial flexibility ('bb-', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the forecast year FY26, 40% for the forecast year FY27, 30% for the forecast year FY28 and 10% for the forecast year FY29. Assessments of the quantitative financial subfactors also include bespoke calculations. 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 '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 Its recovery analysis assumes that Axplora would be restructured as a going concern (GC) rather than liquidated in a default. Its estimated GC EBITDA of EUR80 million (unchanged from last year) reflects potential distress from declining sales due to loss of customers, production issues or underperformance in selected product categories due to concentration risk. The GC EBITDA also incorporates corrective measures, which the business would implement following distress. Fitch maintains an enterprise value/EBITDA multiple of 5.5x, which Fitch considers appropriate for a mid-scale CDMO company. Its analysis. after deducting 10% for administrative claims, generates a ranked recovery in the 'RR3' band for the fully senior secured capital structure, leading to a 'B' instrument rating (unchanged) for the senior secured debt. Its waterfall analysis comprises a EUR530 million term loan B (TLB) and an undrawn EUR60 million revolving credit facility (RCF) ranking equally among themselves, the latter of which Fitch assumes to be fully drawn prior to distress. In its debt waterfall Fitch also assumes that 50% of the group's estimated EUR46 million of average drawn factoring facilities would be replenished through similar super senior debt in a default. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Declining revenue due to product or production issues, integration challenges, or a loss of customers leading to EBITDA margin declining towards 17% on a sustained basis - Consistently negative FCF, leading to diminished liquidity headroom - Total debt/EBITDA above 7.0x for an extended period - EBITDA/interest paid below 1.5x on a sustained basis Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Increasing product diversification, supporting EBITDA margin expansion above 20% on a sustained basis - Consistently neutral-to-positive FCF margins - Total debt/EBITDA reducing towards 5.5x on a sustained basis - EBITDA/interest paid above 2.5x on a sustained basis Liquidity and Debt Structure At FYE26 Axplora's Fitch-defined readily available cash (net of restricted cash of EUR10 million) was EUR81 million. The group does not have any material upcoming maturities except for its EUR530 million TLB due September 2029. Available liquidity is sufficient to cover potential fluctuations of FCF in the next two years. Fitch-defined short-term debt at FYE26 comprised solely non-recourse factoring usage. Liquidity is also supported by an undrawn committed EUR60 million RCF due in March 2029. Issuer Profile Axplora, created from the 2022 merger of PharmaZell and Novasep, is an API contract manufacturer operating nine manufacturing sites: four in France, two in Germany, one in Italy and two in India. Its clients are generic and innovative pharmaceutical firms. Summary of Financial Adjustments Fitch views all insurance proceeds as an exceptional cash inflow, reversing the EUR20 million in business interruption compensation that Axplora treats as EBITDA. 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 Axplora. 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 ----------- ------ -------- ----- European Medco Development 4 S.a.r.l. senior secured LT B Affirmed RR3 B European Medco Development 3 S.a.r.l. LT IDR B- Affirmed B- MELLENU HOLDING: Fitch Assigns 'B' LongTerm IDR, Outlook Positive ----------------------------------------------------------------- Fitch Ratings has assigned Luxembourg-based Mellenu Holding S.A. (Mellenu) a Long-Term Issuer Default Rating (IDR) of 'B' with Positive Outlook. Fitch has also affirmed Mellenu Finance S.A.'s (formerly 4finance S.A.) senior unsecured bond, which is unconditionally and irrevocably guaranteed by Mellenu and its major operating subsidiaries, at 'B' with a Recovery Rating of 'RR4'. The Positive Outlook on Mellenu's Long-Term IDR is primarily driven by the completion of the sale of TBI Bank in February 2026, which released previously ring-fenced capital and materially improved the quality and usability of the group's capital and liquidity to support debt repayment, loss absorption and growth. It is also supported by the early redemption of its October 2026 bond on 27 April 2026, which materially reduced near-term refinancing risk. Fitch has withdrawn 4finance Holding S. A.'s ratings as the entity has undergone a reorganisation, with its activities acquired by Mellenu in late May 2026. Accordingly, Fitch will no longer provide ratings or analytical coverage of 4finance Holding. A consortium led by 4finance Holding management announced a shareholder restructuring of the group's core operating subsidiaries on 29 May 2026. A new Luxembourg-based holding company, Mellenu, was established to acquire 4finance Holding's core online lending teams, assets, liabilities, subsidiaries and retail brands. In 2H26, the consortium will acquire Mellenu through a Luxembourg acquisition vehicle with Mellenu's management holding 25% of the vehicle's share capital and existing and new institutional investors holding the rest. Key Rating Drivers Subprime Online Consumer Lender: Mellenu's ratings are driven by its standalone credit profile and reflect the inherently high regulatory and credit risks of its monoline business model in the higher-risk subsector of consumer lending. They also reflect increasing exposure to weaker operating environments in emerging markets and heightened foreign-currency risk. Rating strengths include Mellenu's long record (including before the reorganisation) of stable operations in sub- and near-prime unsecured consumer lending, its healthy profitability, granular, short-dated loan portfolio, tested access to bond markets and reduced refinancing risk. Adequate Financial Performance: The group's financial performance has been adequate through economic cycles and across different countries by developing well-established underwriting practices. High margins, sufficient scale, small ticket loans, short tenors and effective use of extensive client data have allowed the group to build a profitable online lending business ahead of some peers, and to roll out its model in additional markets. TBI Bank Sale Improves Capitalisation: The sale of TBI Bank in February 2026 released previously ring-fenced capital, materially strengthening the group's capitalisation. Fitch expects Mellenu's consolidated gross debt/tangible equity ratio to improve to about 0.5x by mid-2026, from 1x at end-2025. Its assessment is constrained by the high-risk sub-prime lending focus, but this is partly offset by strong internal capital generation and high provisioning levels, which limit capital erosion. Improved Liquidity after Sale: The disposal of TBI Bank released considerable liquidity that had previously been trapped within a regulated entity. In its view, the bank had offered limited strategic synergies with Mellenu's core online non-bank lending business and had restricted cash upstreaming to the group. Fitch has factored in up to EUR40 million dividend payments, funded by the sale proceeds. Domestic sanctions imposed in Poland in December 2024, restricting 4finance Holding's re-entry into that market, had no impact on the group's operations so far. Prior to the disposal, Fitch had treated the 100%-owned Bulgarian bank subsidiary, TBI Bank, as an asset held for sale, due to limited integration and synergies with the group. High Credit Risk; Adequate Provisioning: Sizeable impairment charges are an integral part of Mellenu's business model, with cost of risk (loan impairment charges/average gross loans) at 46%, while impairment charges consumed 75% of Fitch-defined pre-impairment operating profit in 2025. Impaired loans were 1.5x covered by loan loss provisions. Portfolio seasoning risks are modest, as about 65% of loans matured within 12 months at end-2025, and the loan portfolio's average maturity was nine months. Single-name concentration is low, with the 20 largest exposures representing 0.2% of the loan book at end-2025. Adequate Profitability: Mellenu's focus on high-cost consumer lending results in high loan margins, which are subsequently consumed by high impairment charges and marketing expenses. However, efficient online operations, with over 90% of loans issued through mobile phone apps and a high number of repeat customers resulted in a sound cost/income ratio of 40% in 2025 (2024: 39%) and an adequate pre-tax income/average assets ratio (3% in 2025). However, expansion into new markets and different subsectors could lead to earnings volatility. Liquid Balance Sheet: The group's business model is based on originating short-term loans that are primarily funded with longer-term bond issuance. This supports its immediate liquidity, allowing it to deleverage in a manageable manner. Reduced Refinancing Risk: The early repayment of a EUR140 million bond in April 2026 has materially reduced near-term refinancing risk. Reliance on wholesale funding leaves the group sensitive to shifts in investor sentiment, even though it has continued access to capital markets. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The Outlook could be revised to Stable as a result of a sharp increase in credit risk or leverage, for example, due to rapid lending growth in lower-rated jurisdictions or higher-than-expected dividend payouts. A weakening of the funding and liquidity profile with, for example, shorter average debt maturities or reduced liquidity buffers, could lead to a downgrade. A material deterioration in profitability with, for example, pre-tax income/average assets ratio worsening to below 2% could also lead to negative rating action. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Deploying the bulk of proceeds from the sale of TBI Bank in sustainably growing its franchise, leading to a stronger and more diversified business model, alongside the maintenance of sound financial metrics, could lead to an upgrade of the Long-Term IDR to 'B+'. DEBT AND OTHER INSTRUMENT RATINGS: KEY RATING DRIVERS Mellenu's debt issuing subsidiary, Mellenu Finance S.A., has one outstanding senior unsecured bond of EUR135 million maturing in May 2028, of which the group holds about EUR5 million in treasury. The issue is irrevocably and unconditionally guaranteed by Mellenu's major operating subsidiaries. Mellenu has no material external debt other than its bond. Fitch rates the senior unsecured debt in line with the Long-Term IDR, as the bonds are reference obligations, and Fitch expects average recovery prospects, given the group's unsecured funding profile. DEBT AND OTHER INSTRUMENT RATINGS: RATING SENSITIVITIES The senior unsecured debt rating is mainly sensitive to changes in the Long-Term IDR. Changes to its assessment of recovery prospects for the senior unsecured debt could result in the senior unsecured debt rating being notched down from the Long-Term IDR. ADJUSTMENTS The sector risk operating environment score of 'bb' is below the implied score of 'bbb' due to the following adjustment reason(s): regulatory and legal framework (negative), regional, industry or sub-sector focus (negative). The business profile score 'b' is below the implied score of 'bb' due to the following adjustment reason(s): business model (negative). The earnings and profitability score of 'b+' is below the implied score of 'bb' due to the following adjustment reason(s): portfolio risk (negative). The funding, liquidity and coverage score of 'b' is below the implied score of 'bb' due to the following adjustment reason(s): business model/funding market convention (negative). Summary of Financial Adjustments Fitch treated TBI Bank as an asset held for sale also for the historical period, due to its limited integration and synergies. ESG Considerations Mellenu has an ESG Relevance Score of '4' for Exposure to Social Impacts due to regulatory risks to the business model development (including the potential tightening of lending rate caps), which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. Mellenu has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security due to the risks in the context of fair lending practices and pricing transparency, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. Mellenu g has an ESG Relevance Score of '4' for Group Structure due to the developing nature of its corporate governance structure with limited independent oversight including the absence of a supervisory board, which has a negative impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. Mellenu has an ESG Relevance Score of '4' for Governance Structure due to the developing nature of its corporate governance structure, 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 ----------- ------ -------- ----- Mellenu Holding SA LT IDR B New Rating ST IDR B New Rating 4finance Holding S.A. LT IDR WD Withdrawn B ST IDR WD Withdrawn B Mellenu Finance S.A senior unsecured LT B Affirmed RR4 B =============== P O R T U G A L =============== CONSUMER TOTTA 4 2026: Moody's Gives B1 Rating to EUR9.6MM E Notes ------------------------------------------------------------------ Moody's Ratings has assigned the following definitive ratings to Notes issued by Consumer Totta 4 2026: EUR398.4M Class A Floating Rate Notes due 2036, Definitive Rating Assigned Aaa (sf) EUR31.2M Class B Floating Rate Notes due 2036, Definitive Rating Assigned A2 (sf) EUR18M Class C Floating Rate Notes due 2036, Definitive Rating Assigned Baa2 (sf) EUR22.8M Class D Floating Rate Notes due 2036, Definitive Rating Assigned Ba2 (sf) EUR9.6M Class E Floating Rate Notes due 2036, Definitive Rating Assigned B1 (sf) EUR4.8M Class F Floating Rate Notes due 2036, Definitive Rating Assigned B3 (sf) Moody's have not assigned a rating to EUR 1 Class R Floating Rate Notes due 2036 and EUR 1000 Class X Note due 2036. RATINGS RATIONALE The Notes are backed by a 6-month revolving pool of Portuguese unsecured consumer loans originated by Banco Santander Totta S.A. ("Santander Totta"), (A2/P-1 Bank Deposits; A2(cr)/P-1(cr)). This represents the fourth SRT ABS issuance originated by Banco Santander Totta S.A. The portfolio consists of approximately EUR401.58 million as of the 22 of May pool cut-off date. The weighted average seasoning of the portfolio is approximately 0.8 years. The weighted average original term to maturity of the portfolio is approximately 6.48 years and weighted average remaining term to maturity is 5.68 years. 99% of the loans are fixed rate loans and all loans are monthly annuity style amortising loans with no balloon payment. 75.7% of the portfolio is composed of pre-approved loans where the borrower was offered an unsecured consumer loan up to a maximum amount without initiating an application process. There will be a pre-funding period of 6 months, where additional receivables can be purchased in an amount equal to approximately 20% of the closing portfolio. The Reserve Fund is funded to 1.0% of the A to E Notes balance at closing and the total credit enhancement for the Class A Notes is 18.0%. The ratings are primarily based on the credit quality of the portfolio, the structural features of the transaction and its legal integrity. The transaction benefits from various credit strengths such as the granularity of the portfolio, securitisation experience of Santander group, a reserve fund sized at 1.0% of the Class A-E Notes as of closing with a floor of 0.25%, subordination of the Notes and significant excess spread. However, Moody's notes that the transaction features a number of credit weaknesses, such as a (i) complex structure including interest deferral triggers for junior Notes, (ii) pro-rata payments on all classes A-E of Notes, (iii) a six months revolving structure which could increase performance volatility of the underlying portfolio, partially mitigated by early amortisation triggers, revolving criteria both on individual loan and portfolio level and the eligibility criteria for the portfolio, and (iv) the relatively high linkage to Santander Totta acting as originator and servicer. These characteristics, amongst others, were considered in Moody's analysis and ratings. 99% of the underlying loans are linked to fixed interest rates, and the rated notes are all floating rate indexed to three month Euribor. As a result, the issuer is subject to fixed-floating mismatch. This risk is mitigated by an interest rate swap provided by Banco Santander, S.A. (Spain) (A1/P-1; A2(cr)/P-1(cr)). Moody's determined the portfolio lifetime expected defaults of 6.0%, expected recoveries of 15% and portfolio credit enhancement ("PCE") of 18% related to borrower receivables. The expected defaults and recoveries capture Moody's expectations of performance considering the current economic outlook, while the PCE captures the loss Moody's expects the portfolio to suffer in the event of a severe recession scenario. Expected defaults and PCE are parameters used to calibrate its lognormal portfolio loss distribution curve and to associate a probability with each potential future loss scenario in the ABSROM cash flow model to rate Consumer ABS. Portfolio expected defaults of 6.0% are in line with the EMEA Consumer Loan ABS average and are based on Moody's assessments of the lifetime expectation for the pool taking into account (i) historic performance of the loan book of the originator, (ii) the pool composition in terms of the exposure to certain products i.e. pre-approved loans where the borrower was offered an unsecured consumer loan up to a maximum amount without initiating an application process, (iii) benchmark transactions, and (iv) other qualitative considerations, such as the revolving period. Portfolio expected recoveries of 15% are in line with the EMEA Consumer Loan ABS average and are based on Moody's assessments of the lifetime expectation for the pool taking into account (i) historic performance of the loan book of the originator, (ii) benchmark transactions, and (iii) other qualitative considerations. PCE of 18% is in line with the EMEA Consumer Loan ABS average and is based on Moody's assessments of the pool taking into account: (i) the revolving and pre-funding period, and (ii) the relative ranking to peers in EMEA. The PCE level of 18% results in an implied coefficient of variation ("CoV") of 34.74%. The principal methodology used in these ratings was "Consumer Loan Securitizations" published in May 2026. Factors that would lead to an upgrade or downgrade of the ratings: Factors that may cause an upgrade of the ratings of the notes include significantly better than expected performance of the pool together with an increase in credit enhancement of Notes. Factors that would lead to a downgrade of the ratings include: (i) increased counterparty risk leading to potential operational risk of (a) servicing or cash management interruptions and (b) the risk of increased swap linkage due to a downgrade of a swap counterparty ratings; and (ii) economic conditions being worse than forecast resulting in higher arrears and losses. GEMMA STC: Fitch Assigns 'BB-sf' Final Rating on Class E Notes -------------------------------------------------------------- Fitch Ratings has assigned Gamma, STC S.A. / Consumer Totta 4 final ratings. The final rating on the class E notes is one notch higher than the expected rating due to final lower spreads and a lower swap rate. Entity/Debt Rating Prior ----------- ------ ----- Gamma, STC S.A. / Consumer Totta 4 Class A PTGMMIOM0012 LT AAsf New Rating AA(EXP)sf Class B PTGMMJOM0003 LT A-sf New Rating A-(EXP)sf Class C PTGMMKOM0000 LT BBBs New Rating BBB(EXP)sf Class D PTGMMLOM0009 LT BBsf New Rating BB(EXP)sf Class E PTGMMMOM0008 LT BB-sf New Rating B+(EXP)sf Class F PTGMMNOM0007 LT BB+sf New Rating BB+(EXP)sf Transaction Summary The transaction is a six-month revolving securitisation of a fully amortising unsecured consumer loans portfolio originated in Portugal by Banco Santander Totta S.A. (Totta; A+/Stable/F1). Totta is owned by Banco Santander, S.A. (A+/Stable/F1). KEY RATING DRIVERS Asset Assumptions: Fitch has calibrated a base-case default rate of 7% for the portfolio, lower than the 7.5% applied in the previous transaction Consumer Totta 3 in October 2025. This reflects recent improvement in portfolio performance, supported by favourable macroeconomic conditions and the originator's strengthened risk policies. The base case recovery rate has been recalibrated to 25%, from 35% in Consumer Totta 3, reflecting Fitch's updated analysis of historical recovery data, and underlining lower recoveries on defaulted receivables. Revolving and Pre-funding Period: The transaction features a six-month revolving and pre-funding period, during which additional receivables can be purchased by the issuer for up to 30% of the initial portfolio balance, assuming a 10% prepayment rate. Fitch considers any associated credit risk as captured by the default multiples and the portfolio eligibility criteria contractually defined. At closing, the issuer used the note proceeds to purchase a maximum 84% of the portfolio balance with the remaining 16% held in cash at the transaction account bank (the pre-funding amount) for purchasing additional assets. Any unapplied pre-funding amounts will be used to amortise the class A to E notes pro rata after the end of the revolving period. Pro Rata Note Amortisation: The class A to E notes amortise pro rata from the first quarterly interest payment date after the end of the revolving period until a switch-to-sequential amortisation event. Fitch considers such an event as unlikely during the first years after closing under the base case, given its portfolio performance expectations versus the defined triggers. Fitch believes the tail risk posed by the pro rata pay-down is mitigated by the mandatory switch to sequential amortisation when the pool balance falls below 10% of the initial balance. Interest Rate Risk Mitigated: Hedging through a fixed-to-floating interest rate swap addresses the mismatch between the floating-rate liabilities and the predominantly fixed-rate assets (99.0% of the portfolio). RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Long-term asset performance deterioration such as increased defaults and delinquencies or reduced portfolio yield, which could be driven by changes in portfolio characteristics, macroeconomic conditions, business practices or legislation could be negative for the ratings Sensitivities to higher default rates and lower recoveries are shown below: Expected impact on the notes' ratings of increased defaults (class A/B/C/D/E/F) Increase default rates by 10%: 'A+sf'/'BBB+sf'/'BBB-sf'/'BBsf'/'B+sf'/'BB+sf'' Increase default rates by 25%: 'Asf'/'BBBsf'/'BB+sf'/'B+sf'/'B-sf'/'BB+sf'' Increase default rates by 50%: 'A-sf'/'BB+sf'/'BBsf'/'CCCsf'/'NRsf'/'BB+sf'' Expected impact on the notes' ratings of reduced recoveries (class A/B/C/D/E/F) Reduce recovery rates by 10%: 'AA-sf'/'BBB+sf'/'BBB-sf'/'BBsf'/'BB-sf'/'BB+sf'' Reduce recovery rates by 25%: 'A+sf'/'BBB+sf'/'BBB-sf'/'BBsf'/'B+sf'/'BB+sf'' Reduce recovery rates by 50%: 'A+sf'/'BBBsf'/'BB+sf'/'BB-sf'/'B-sf'/'BB+sf'' Expected impact on the notes' ratings of increased defaults and reduced recoveries (class A/B/C/D/E/F) Increase default rates by 10% and reduce recovery rates by 10%: 'A+sf'/'BBB+sf'/'BBB-sf'/'BBsf'/'Bsf'/'BB+sf'' Increase default rates by 25% and reduce recovery rates by 25%: 'Asf'/'BBB-sf'/'BBsf'/'Bsf'/'CCCsf'/'BB+sf'' Increase default rates by 50% and reduce recovery rates by 50%: 'BBBsf'/'BBsf'/'B+sf'/'NRsf'/'NRsf'/'BB+sf'' Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Better asset performance than expected, such as lower defaults and higher recoveries would be positive for the ratings. Increasing credit enhancement ratios as the transaction deleverages to fully compensate the credit losses and cash flow stresses commensurate with higher ratings would also lead to positive rating action. Reducing default rates by 10% and increasing recovery rates by 10% would result in ratings of 'AAsf'/'Asf'/'BBB+sf'/'BB+sf'/'BBsf'/'BB+sf' for the class A, B, C, D, E and F notes, respectively. 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 Gamma, STC S.A. / Consumer Totta 4 Fitch reviewed the results of a third party assessment conducted on the asset portfolio information, and concluded that there were no findings that affected the rating analysis. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. =========== R U S S I A =========== ARTEL ELECTRONICS: Fitch Affirms 'B' LongTerm IDR, Outlook Negative ------------------------------------------------------------------- Fitch Ratings has affirmed Artel Electronics LLC's (AE) Long-Term Issuer Default Rating (IDR) at 'B'. The Outlook is Negative. The Negative Outlook reflects weaker demand and lower profitability in 2026 due to a challenging white goods market and stronger competition in AE's key end-markets. Fitch expects leverage to remain above the negative rating sensitivity with improvement possible on accelerated debt repayment or stabilizing market conditions that would support the current rating. However, underperformance with weaker financial flexibility may lead to a downgrade. The affirmation reflects AE's continuing small scale, limited geographic diversification, and exposure to emerging-market and FX risks. It also reflects its expectation of positive free cash flow (FCF) generation, supported by improved working capital and lower dividend distributions. Key Rating Drivers Prolonged Weaker Revenue Trends: Fitch expects Artel's revenue decline to continue in 2026, with a further 2% fall before a modest recovery from 2027 onwards. Uzbekistan's growing progress in reforms and policy focus are increasing foreign competition in Artel's domestic market, which accounted for 82% of 2025 revenue. This contributed to recent market share losses. Competitors benefit from broader product ranges and aggressive pricing, which intensified after the Uzbek currency appreciated in 2025. Fitch expects a modest recovery from 2027 as market share stabilises and Artel's shift toward premium products supports performance. Artel's strategic repositioning focuses on stronger differentiation through product reliability rather than lower pricing. Further Margin Pressure: Fitch forecasts EBITDA margin to decline slightly in 2026-2029, due to aggressive pricing in an inflationary domestic market. Margin pressure could increase if raw material costs rise further, including plastics, due to a prolonged closure of the Strait of Hormuz amid the Iran conflict. Artel's strategic shift toward more profitable products and cost-efficiency measures, including office relocation to a free economic zone in Uzbekistan, should help stabilise profitability, but at a lower level than in previous years. Leverage to Peak Before Easing: Fitch anticipates EBITDA leverage to rise to 3.6x at end-2026 from 3.1x at end-2025, before easing back to 3.1x by 2029. The increase reflects weaker profitability, despite management's efforts to accelerate debt repayment. Fitch believes Artel's deleveraging path is achievable, supported by ongoing debt repayment, but it is likely to be gradual as profitability stabilises below 2025 levels and cash continues to also be used for dividends. The pressure on leverage is mitigated by still modest metrics relative to diversified manufacturing peers in the 'B' rating category and by strong coverage ratios. Positive FCF: Fitch views Artel's ability for positive FCF recovery in 2025 as positive for its credit profile. This reflected lower working capital outflows, supported by longer payable days that better align with receivable and inventory days. Fitch expects FCF margin to average about 0.8% through 2029, supported by disciplined capex, lower dividend payouts and lower interest paid as debt declines. Positive FCF should help support liquidity, which is under pressure in the near term due to accelerated debt repayment. Ongoing Related-Party Transactions: Fitch views increased related-party transactions in 2025 as a credit weakness. Fitch does not include related-party guarantees in Artel's debt or leverage because the underlying loans are secured by the borrowers' assets and there is no indication that Artel will be called to support repayment. However, a direct loan to related parties in 2025 and ongoing guarantees would be reassessed if the related parties underperform, which could lead to rating pressure. Leading Market Position: AE remains a leading household appliances producer in Uzbekistan, with strong market positions across most of its main product categories. Its established production base, distribution network and long-standing cooperation with brands, such as Shivaki, provide modest protection against new entrants and support its business profile. Peer Analysis AE has a more limited scale than its direct peers Arcelik A.S. (B+/Negative) and Whirlpool Corp. (BB-/Negative). Its limited geographic diversification, with 82% of sales derived from Uzbekistan, compares with Arcelik's 45% locally, is another contributing factor to the one-notch difference in their ratings. Fitch views material exposure to emerging markets as a rating limitation for these peers as it makes cash flow generation susceptible to macroeconomic, political, and FX risks. AE's forecast EBITDA and EBIT margins are at similar levels to those of other diversified industrial companies, such as Ahlstrom Oy (B/Stable), and ams-OSRAM AG (B/Positive), but are weaker than Ammega Group B.V.'s (B-/Negative). AE's improved FCF margins remain stronger than Ahlstrom's and ams', but are weaker than INNIO's, supporting the one-notch rating difference. AE's leverage is comparable with that of higher-rated peers, such as INNIO, and is considerably lower than Ammega's and Ahlstrom's, supporting the rating differences. Fitch’s Key Rating-Case Assumptions - Revenue to decline about 2% in 2026 before growing on average at 2.2% a year during 2027-2029 - EBITDA margin at low double-digit levels, supported by slower cost inflation but prolonged pricing pressures - Normalised working capital outflows until 2029 - Capex at an average 3% of sales over 2026-2029 on lower sales and production refocus - Dividend payments of about UZS94 billion in 2026 and on average at UZS139 billion from 2027 onwards - Regular refinancing of short-term debt - No M&A from 2027 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 ('bb+', Moderate), market and competitive positioning ('bb-', Moderate), diversification and asset quality ('b', Higher), company operational characteristics ('bb-', Moderate), profitability ('bb+', Moderate), financial structure ('bb', Moderate), and financial flexibility ('b-', Higher). The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the 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 'some deficiencies' has no impact. The operating environment assessment of 'b+' 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'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage above 3.0x on a sustained basis - FCF margin below 1% - EBITDA margin below 11% - Deterioration in liquidity, resulting in an inability to refinance short-term debt Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Sustained record of improved corporate governance, including greater financial transparency - Improved geographical diversification, with a materially lower reliance on the domestic market - FCF margin above 3% on a sustained basis - EBITDA leverage below 2.0x on a sustained basis and improved liquidity Liquidity and Debt Structure AE's liquidity is supported only by cash, with no committed credit facilities, and does not fully cover 2026 short-term debt maturities. This is mitigated by AE's long-standing relationships with local banks, which allow it to refinance short-term debt regularly. The low cash balance reflects AE's newly implemented deleveraging strategy with a UZS587 billion repayment in 2025. Liquidity is supported by positive FCF, which Fitch expects to continue, driven by disciplined capex and better working capital management. AE's capital structure is concentrated with 86% of total debt raised from a single source. AE significantly increased guarantees provided to related parties in 2025. Issuer Profile AE is based in Uzbekistan (BB/Positive) and a leading domestic producer of household appliances and electronics. 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 AE. 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 ----------- ------ ----- Artel Electronics LLC LT IDR B Affirmed B NAVOI MINING: Fitch Alters Outlook on 'BB' Long-Term IDR to Pos. ---------------------------------------------------------------- Fitch Ratings has revised two Uzbek natural resources companies' Outlooks to Positive from Stable. Fitch has affirmed the Long-Term Issuer Default Ratings (IDRs) of JSC Navoi Mining and Metallurgical Company (NMMC) at 'BB' and JSC Navoiyazot at 'BB-'. The rating actions follow the revision of the Outlook on Uzbekistan's Long-Term IDR to Positive from Stable on June 3, 2026. NMMC's Standalone Credit Profile (SCP) is 'bb+', but its IDR is constrained by that of Uzbekistan in accordance with Fitch's Government Related Entities (GRE) Rating Criteria and Parent and Subsidiary Linkage (PSL) Rating Criteria. Navoiyazot's SCP is 'b-'. Its Long-Term IDR is notched down by one notch from the sovereign parent, Uzbekistan, under Fitch's GRE Rating Criteria. Key Rating Drivers NMMC Sovereign Constrains Rating: NMMC's rating is constrained by that of Uzbekistan, given its close links with the sovereign, in accordance with Fitch's GRE Rating Criteria and PSL Rating Criteria. This reflects the influence the state exerts on the company through strategic direction and control over the company's cash flows through taxation and dividends. The company's GRE support score is 30, out of a maximum 60. Responsibility to Support: Decision making and oversight under the GRE Rating Criteria is 'Strong', given state ownership through the Ministry of Economy and Finance. Fitch assesses precedents of support as 'Strong' based on the state's history of providing assistance through debt provided by government entities. The company has not received any equity injections over the past 10 years. Incentive to Support: Fitch assesses NMMC's preservation of government policy role as 'Strong' as it is responsible for more than 80% of gold produced in the country and is the largest taxpayer and a major employer in Uzbekistan. Fitch considers NMMC to be a reference entity for the state, given its size and international debt amount, underscoring its 'Strong' assessment of contagion risk. Navoiyazot Top-Down Rating Approach: Navoiyazot's IDR is notched down by one notch from the rating of Uzbekistan, its sole ultimate shareholder. The GRE support score is 35 out of 60, which underlines 'Extremely Likely' expectations for state support, according to its GRE Rating criteria. Responsibility to Support: Decision-making and oversight by the state is 'Strong', given the government's ultimate 100% ownership and its control over the company's strategy and investment programme. The state also regulates certain product prices. Fitch assesses precedents of support as 'Very Strong' as most funding is either from state-owned banks or Ministry of Economy and Finance and given its record of other forms of support including debt-to-equity conversion and direct support loans. Incentives to Support: Fitch assesses the preservation of government policy role as 'Strong' as Navoiyazot mainly produces fertilisers for the agriculture industry, which is key for the local economy. The company also produces essential sodium cyanide for Uzbek miners. Fitch views contagion risk as 'Strong', reflecting that its default would likely disrupt access to, or raise the cost of financing for the government or its other GREs. Corporate Rating Tool Inputs and Scores Fitch scored the issuers as follows, using its Corporate Rating Tool (CRT) to produce the SCP: NMMC Business and financial profile factors (assessment, relative importance): management ('bbb-', Lower), sector characteristics ('bb+', Lower), market and competitive positioning ('bbb', Higher), diversification and asset quality ('bbb', Moderate), company operational characteristics ('bbb-', Moderate), profitability ('bbb+', Moderate), financial structure ('a+', Moderate), and financial flexibility ('bb+', Higher). The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the historical year 2025, 10% for the forecast year 2026, 30% for the forecast year 2027, 30% for the forecast year 2028 and 20% for the forecast year 2029. The governance assessment of 'good' has no impact. The operating environment assessment of 'b' results in an adjustment of -2 notches. The SCP is 'bb+'. To derive the Long-Term IDR: Application of Fitch's PSL Rating Criteria results in a consolidated approach. Application of Fitch's GRE Rating Criteria results in a constrained approach. Navoiyazot Business and financial profile factors (assessment, relative importance): management ('b-', Moderate), sector characteristics ('bb', Lower), market and competitive positioning ('b-', Higher), diversification and asset quality ('b', Moderate), company operational characteristics ('b', Moderate), profitability ('bb+', Lower), financial structure ('b+', Moderate), and financial flexibility ('b-', Higher). The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the forecast year 2025, 10% for the forecast year 2026, 30% for the forecast year 2027, 30% for the forecast year 2028 and 20% for the forecast year 2029. 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 'b+' has no impact. The SCP is 'b-'. To derive the Long-Term IDR: Application of Fitch's GRE Rating Criteria results in a top-down -1 approach. RATING SENSITIVITIES NMMC Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade As the Outlook is Positive, a negative rating action is unlikely. However, a negative rating action on the sovereign would be replicated in NMMC - EBITDA gross leverage above 2.0x on a sustained basis could be negative for the SCP, but not necessarily for the IDR - Sustained negative free cash flow due to dividends or large capex or M&A activity could be negative for the SCP, but not necessarily for the IDR Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Positive rating action on the sovereign Navoiyazot Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade As the Outlook is Positive, a negative rating action is unlikely. However, a revision of the sovereign Outlook to Stable would be replicated to Navoiyazot - Material weakening of links with and support from the state - Unremedied liquidity issues - EBITDA gross leverage above 5.5x on a sustained basis would be negative for the SCP, but not necessarily for the IDR Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Positive rating action on the sovereign - Strengthening ties with the state - Improvement in the liquidity profile and EBITDA gross leverage below 4.5x on a sustained basis For Rating Sensitivities for Uzbekistan, see Rating Action Commentary 'Fitch Revises Uzbekistan's Outlook to Positive; Affirms at 'BB', dated 3 June 2026 Public Ratings with Credit Linkage to other ratings NMMC's rating is constrained by Uzbekistan's rating. Navoiyazot's rating is notched down by one notch from the sovereign's. 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 NMMC or Navoiyazot. RATINGS Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- JSC Navoiyazot LT IDR BB- Affirmed BB- JSC Navoi Mining and Metallurgical Company LT IDR BB Affirmed BB senior unsecured LT BB Affirmed RR4 BB =========================== U N I T E D K I N G D O M =========================== AGPTC HEALTHCARE: BDO LLP Appointed as Joint Administrators ----------------------------------------------------------- AGPTC Healthcare Limited was placed into administration in the Court of Session, Court Number COS-P481 of 2026. James Stephen, Kerry Bailey, and David Wallis, all of BDO LLP, were appointed as Joint Administrators on June 3, 2026. The company specialised in the wholesale of pharmaceutical goods. Its registered office is Norwood, 3 Beech Road, Lenzie, Glasgow, G66 4HN, changing to c/o BDO LLP, 2 Atlantic Square, 31 York Street, Glasgow, G2 8NJ. Its principal trading address is 35 Meiklewood Road, Glasgow, G51 4GB. The Joint Administrators can be contacted at: James Stephen Kerry Bailey David Wallis BDO LLP 2 Atlantic Square 31 York Street Glasgow G2 8NJ Further information: Contact: Alex Convery Email: BRCMTNorthandScotland@bdo.co.uk Tel: +44 (0)744 2798412 BDO LLP ALDERLEY GROUP: MHA Advisory Appointed as Joint Administrators -------------------------------------------------------------- Alderley Group (2019) 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-2026-004508. Steven Illes and Andrew Duncan, both of MHA Advisory Ltd, were appointed as Joint Administrators on June 9, 2026. The company specialised in the development of building projects. Its registered office and principal trading address is 50 Sloane Avenue, Chelsea, London, SW3 3DD. The Joint Administrators can be contacted at: Steven Illes Andrew Duncan MHA Advisory Ltd 6th Floor 2 London Wall Place London EC2Y 5AU Further information: Contact: James Holdsworth Email: James.Holdsworth@mha.co.uk MHA Advisory Ltd AUBURN 15: Fitch Alters Outlook on 'B+sf' Rating to Stable ---------------------------------------------------------- Fitch Ratings has revised Auburn 15 plc's (AU15) class E to F notes to Stable Outlook from Negative. Fitch has affirmed the ratings of AU15, alongside those of Oat Hill No.3 PLC (OH3). Entity/Debt Rating Prior ----------- ------ ----- Auburn 15 plc Class A1 NRR Loan Note LT AAAsf Affirmed AAAsf Class A1 XS2813764540 LT AAAsf Affirmed AAAsf Class A2 XS2813764979 LT AAAsf Affirmed AAAsf Class B XS2813765190 LT AA+sf Affirmed AA+sf Class C XS2813765356 LT A-sf Affirmed A-sf Class D XS2813765513 LT BBB-sf Affirmed BBB-sf Class E XS2813765786 LT BB+sf Revision Outlook BB+sf Class F XS2813765869 LT B+sf Revision Outlook B+sf Oat Hill No.3 PLC A XS2639038384 LT AAAsf Affirmed AAAsf B XS2639039192 LT AA+sf Affirmed AA+sf C XS2639039275 LT A+sf Affirmed A+sf Class A Loan LT AAAsf Affirmed AAAsf D XS2639039606 LT BBBsf Affirmed BBBsf E XS2639065601 LT BBsf Affirmed BBsf F XS2639066088 LT B-sf Affirmed B-sf Transaction Summary AU15 and OH3 are securitisations of buy-to-let (BTL) and owner-occupied (OO) residential mortgage assets originated by Capital Home Loans Limited (CHL) and secured against properties in the UK. In both transactions, the underlying assets had been previously securitised, with the collateral pools backing AU15 sourced from the Towd Point Mortgage Funding Auburn series (most recently Auburn 12, 13 and 14), and the collateral pool backing OH3 sourced from Oat Hill No. 1 plc (OH1) and Oat Hill No. 2 plc (OH2). Currently, Topaz acts as servicer for both transactions. KEY RATING DRIVERS Recovery Rate Assumptions: The reported loss severity across both transactions implies recovery rates (RR) below those assumed under its criteria. The RR assumed in its analysis for both performing and defaulted loans, which Fitch defines as loans that more than 12 months in arrears, can have a significant impact on model-implied ratings (MIR), especially for junior notes. The class B to F note ratings of OH3 have been affirmed below their respective MIRs to avoid rating volatility, should realised RRs continue to be persistently below those assumed under Fitch's criteria. Both transactions have reported realised losses exceeding those implied by the indexed value of the underlying properties. Fitch has therefore applied borrower-level recovery rate caps to BTL loans, in line with non-conforming loan treatment, at 85% at 'Bsf' and 65% at 'AAAsf'. Stable Asset Performance: Performance across both transactions has remained broadly stable since the prior review. One-month-plus and three-month-plus arrears have shown modest year-on-year improvement in both pools, with the pace of arrear build-up stabilising. A meaningful portion of delinquent BTL loans continues to be managed through the receiver of rent mechanism, containing loss realisation. Stable asset performance, alongside credit enhancement available to the notes, underpin today's rating actions. This is underscored in the revised Outlooks for the class E and F notes of AU15. Transaction Adjustment: Fitch applied its BTL-specific assumptions to the BTL sub pools in both transactions, incorporating a 1.5x transaction adjustment to the foreclosure frequency, reflecting each transaction's historical performance where the proportion of loans in three-month-plus arrears has consistently underperformed Fitch's BTL index. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The transactions' performance may be affected by adverse changes in market conditions and economic environment. Weakening economic performance is strongly correlated to increasing levels of delinquencies and defaults that could reduce the credit enhancement available to the notes. Fitch found that a 15% increase in the weighted average forclosure frequency and a 15% decrease of the weighted average recovery rate would imply the following: AU15: Class A : 'AAAsf' Class B: 'AA-sf' Class C: 'BB+sf' Class D: 'B+sf' Class E: 'B-sf' Class F: distressed rating OH3: Class A: 'AAAsf' Class B: 'AA+sf' Class C: 'AA-sf' Class D: 'BBB+sf' Class E: 'BBBsf' Class F: 'BB-sf' Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Improving market conditions, economic environment and credit enhancement build-up could lead to positive rating actions. Fitch found that a 15% decrease in the weighted average foreclosure frequency and a 15% increase of the weighted average recovery rate would imply the following: AU15: Class A: 'AAAsf' Class B: 'AA+sf' Class C: 'AA-sf' Class D: 'Asf' Class E: 'BBB+sf' Class F: 'BB+sf' OH3: Class A: 'AAAsf' Class B: 'AAAsf' Class C: 'AAAsf' Class D: 'AA+sf' Class E: 'AA+sf' Class F: 'A+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 AU15 plc has an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security due to a proportion of interest-only loans in legacy owner-occupied mortgages, 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. CURZON SQUARE: FRP Advisory Appointed as Joint Administrators ------------------------------------------------------------- Curzon Square 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-2026-004042. Philip Lewis Armstrong and Geoffrey Paul Rowley, both of FRP Advisory Trading Limited, were appointed as Joint Administrators on June 5, 2026. The Company is a UK-registered private company that has historically operated as a private family office and non-trading company. Its registered office is 4 Curzon Square, London, W1J 7FW, in the process of being changed to FRP Advisory Trading Limited, 110 Cannon Street, London, EC4N 6EU. The Joint Administrators can be contacted at: Philip Lewis Armstrong Geoffrey Paul Rowley FRP Advisory Trading Limited 110 Cannon Street London EC4N 6EU Further information: Email: Joseph.Price@frpadvisory.com Contact: Joseph Price Tel: 020 3005 4000 FRP Advisory Trading Limited EC3 BROKERS: Insurer Client Money Proof Bar Date Set for Sept. 18 ----------------------------------------------------------------- EC3 Brokers Limited entered into administration on November 25, 2022. Anthony John Wright and David Paul Hudson, both of FRP Advisory Trading Limited, 2nd Floor, 110 Cannon Street, London, ECA4N 6EU, are currently appointed as Joint Administrators of the Company . Pursuant to the Order of Chief Insolvency and Companies Court Judge Briggs dated April 14, 2026, a scheme of distribution ("Scheme of Distribution") was approved setting out how the Joint Administrators will deal with the distribution of client monies held by the Company at the time of its entry into administration ("Client Money Pool"). This notice relates to insurers only. The Joint Administrators will issue a further notice in the future relevant to non-insurers. To the extent that an insurer considers it is a client of the Company and may have outstanding balances with the Company and is entitled to a share of the Client Money Pool, they should submit an insurer client money proof (and any supporting information and/or documentation in respect of their claim) to the Joint Administrators as soon as possible but by no later than September 18, 2026 ("Bar Date"), unless they have already done so. The Joint Administrators will adjudicate upon insurer client money proofs submitted, and will inform each insurer as to the determination of any claim submitted. Subsequently, the Joint Administrators (or any subsequently appointed liquidators) intend to declare and make a distribution from the Client Money Pool in accordance with the terms of the Scheme of Distribution, once all relevant steps of the Scheme of Distribution have been undertaken. To the extent an insurer submits their insurer client money proof after the Bar Date, as set out in the Scheme of Distribution, it will be at the discretion of the Joint Administrators whether to adjudicate upon such claim (and there is no guarantee that such adjudication will take place). Contact Details Insurer client money proofs (and any supporting information and/or documentation in respect of your claim) must be delivered to the Joint Administrators and can be sent by email to EC3@frpadvisory.com. A template client money proof, and a copy of the Scheme of Distribution, is available on request by contacting the email address above. ENQUEST PLC: Fitch Puts 'B' LongTerm IDR on Watch Positive ---------------------------------------------------------- Fitch Ratings has placed EnQuest plc's Long-Term Issuer Default Rating (IDR) of 'B' and senior unsecured rating of 'B+' on Rating Watch Positive (RWP). The Recovery Rating is 'RR3'. The RWP reflects the company's proposed acquisition of offshore various assets in Malaysia, which it expects to close in 4Q26 and the resulting improvements to the company's business profile. The RWP also incorporates the company's higher production and reserves, lower unit costs, and greater diversification, following the acquisition, alongside its assumptions of a manageable debt increase for its funding. Fitch expects to resolve the RWP by upgrading EnQuest's ratings, likely by no more than one notch, upon acquisition close, which may take more than six months. Key Rating Drivers Acquisition Increases Scale: The proposed acquisition of certain assets in Malaysia will materially increase EnQuest's scale in reserves, production volumes, and EBITDA generation. The assets to be acquired represent 103.5 million barrels of oil equivalent (mmboe) of 1P reserves and 138mmboe of 2P reserves (on a working interest basis), bringing the company's reserves to 230mmboe on a 1P basis and 301mmboe on a 2P basis. Fitch also assumes a large increase in production volumes which, under its conservative rating case, will average over 95 thousand barrels of oil equivalent per day (mboe/d) through 2030, compared with pre-transaction levels of 40mboe/d-45mboe/d. This will result in much higher through-the-cycle EBITDA generation, which Fitch expects will average about USD700 million a year for 2027-2030 under its rating case, though this will also partly depend on the company's updated business plan once the acquisition is finalised. Pivot in Geographic Focus: The acquisition would meaningfully diversify EnQuest's operations, which have derived most of its reserves and revenue from the UK North Sea. Malaysia will account for over 40% of EBITDA and about 57% of reserves after the acquisition. The company's production mix will also become more balanced towards gas versus its current liquids-weighted composition. Leverage to Remain Manageable: Its rating case, subject to the company's updated business plan, expects strong cash generation in 2026 on the back of supportive prices and manageable acquisition debt, including USD189 million of deferred consideration, to keep leverage moderate. Fitch assumes funds from operations (FFO) gross and net leverage will average 2.1x and 1.5x, respectively, during 2027-2030, subject to the mix of cash and debt it will use to fund the acquisition. Nevertheless, Fitch expects the resulting leverage to be manageable for the enlarged company. Unit Costs to Improve: EnQuest has guided that the assets to be acquired will have substantially lower opex of around USD10/boe on average, bringing company-defined opex to about USD16/boe. This is positive for the credit profile but is partly offset by its assumption that the acquired assets will also have lower revenue per barrel on a working interest basis than the existing portfolio, due in part to their higher proportion of gas than liquids production, as well as the commercial and fiscal terms applicable to the assets. Reserve Life Diluted: The assets to be acquired have 1P and 2P reserve life of 4.9 years and 6.6 years, respectively. The company's pre-acquisition 2025 reserve life was 7.6 years on a 1P basis and 9.8 years on a 2P basis. The acquisition will therefore reduce reserve life to around six years on a 1P basis and eight years on a 2P basis. Fitch expects the company will therefore need to manage the conversion of 2C resources in its portfolio into reserves over the next four years to replenish reserves and maintain its reserve life at comfortable levels. Peer Analysis Trident Energy, L.P. (B+/Stable), Talos Energy Inc. (B/Stable) and W&T Offshore, Inc. (B-/Stable) have business models similar to EnQuest's, focusing on acquiring and operating mature assets with low decline rates, limited exposure to greenfield projects and disciplined capital deployment. This supports stable production and modest capex across the peer group. All three also maintain manageable through-the-cycle leverage. Talos is the largest among EnQuest's peers, with production of about 95mboe/d, followed by Trident at about 70 mboe/d. Fitch expects EnQuest's production following the acquisition to be largely in line with that of Talos. W&T is smaller than EnQuest at about 35mboe/d. Trident has the largest reserves, with 2P reserves of 344mmboe, materially higher than Talos's 278mmboe and W&T's 242mmboe. EnQuest's 2P reserves of around 300mmboe after the acquisition will be slightly lower than Trident's. Unit economics differentiate the peer group. Trident and Talos have unit operating cash costs of about USD20/bbl, slightly higher than its assumption for EnQuest's post-transaction Fitch-defined cash costs of USD19/bbl (including leases). However, EnQuest's revenue per barrel (on a working interest basis) will be mildly lower through the cycle due to a higher share of gas production and commercial and fiscal terms governing the acquired assets. W&T is weaker than the rest of the peer group at about USD30/bbl, although it has lower capital intensity. Given EnQuest's exposure to a higher-tax jurisdiction in the UK, Fitch uses FFO-based metrics to compare it with peers in lower-tax jurisdictions. Fitch expects EnQuest's through-the-cycle FFO gross leverage to be about 2.0x. This is slightly higher than Talos' and Trident's 1.5-1.8x, but well below W&T's at about 4x. Fitch’s Key Rating-Case Assumptions - Oil and gas prices in line with Fitch's base case price deck - Production averaging 40mboe/d-45mboe/d by end-2030 on a pre-acquisition basis, increasing to over 95mboe/d on average after the acquisition during 2027-2030 - Capex averaging USD100 million a year by end-2030 on a pre-acquisition basis, increasing to USD150 million a year on average after the acquisition during 2027-2030 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) before the acquisition: Business and financial profile factors (assessment, relative importance): management ('bb+', Lower), sector characteristics ('b+', Lower), market and competitive positioning ('b', Higher), diversification and asset quality ('b', Moderate), company operational characteristics ('b-', Moderate), profitability ('b-', Higher), financial structure ('bbb-', Moderate), and financial flexibility ('b+', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the historical year 2025, 10% for the forecast year 2026, 30% for the forecast year 2027, 30% for the forecast year 2028 and 20% for the forecast year 2029. 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 '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 Its recovery analysis assumes that EnQuest would be reorganised as a going concern (GC) in bankruptcy rather than liquidated. EnQuest's GC EBITDA of USD225 million (before acquisition) reflects its view on EBITDA generation from the group's assets, assuming a severe downturn in oil prices followed by some recovery. Fitch has applied an enterprise value (EV)/EBITDA multiple of 4x to calculate a GC EV, which reflects the small scale of the company's assets partially offset by their presence in the UK North Sea with significant associated tax losses. The contemplated senior unsecured notes are subordinated to the USD400 million cash tranche of the company's reserve-based loan (RBL). The notes rank pari passu with the GBP42 million working capital facility and USD22 million vendor loan. The notes are guaranteed on a senior subordinated basis by subsidiaries contributing 90% of EnQuest's assets and 100% of its revenue. For its recovery analysis, Fitch assumes that both the senior secured RBL and the senior unsecured SVT working capital facility are fully drawn. Its analysis, after deducting 10% for administrative claims, generated a waterfall-generated recovery computation in the 'RR3' band for the senior unsecured bonds, indicating a 'B+' instrument rating. Following the acquisition, Fitch believes the impact on the Recovery Rating for the unsecured bonds is unlikely from the increase in RBL which will be upsized to USD700 million from the current USD400 million level to fund the acquisition. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - As the ratings are on RWP, Fitch does not expect negative rating action. However, if the acquisition does not materialise Fitch is likely to affirm the 'B' IDR with a Stable Outlook. Without the proposed acquisition - Failure to maintain production above 40mboe/d on a sustained basis would be negative for the rating. - Fitch-defined FFO gross leverage above 3x or FFO net leverage above 2x on a sustained basis - Increase in liquidity and refinancing risk Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The RWP would be resolved, likely with a one-notch upgrade of EnQuest's ratings upon closing of the proposed acquisition Without the proposed acquisition - Increasing production to over 70mboe/d on a sustained basis while maintaining adequate reserve life - Fitch-defined FFO gross leverage below 2x or FFO net leverage below 1x on a sustained basis Liquidity and Debt Structure EnQuest's liquidity at end-2025 comprised USD266 million of Fitch-defined readily available cash and a fully undrawn USD400 million RBL maturing in 2031. This comfortably covers short-term debt of about USD60 million. Following the successful refinancing of its bonds during 2026, the company's next maturity is its USD675 million senior unsecured bond in 2031. The proposed acquisition will be funded by an upsized RBL to USD700 million as well as cash on hand. Fitch believes this should leave the company with adequate liquidity once it pays the USD554 million upfront consideration. Subsequent maturities consisting of USD63 million deferred consideration a year for 2027-2029 could be covered with internal resources. Drawdowns on the RBL may become due earlier than 2031 as the facility begins to amortise in 2028. Issuer Profile EnQuest is an independent oil and gas exploration and production company, primarily active in the UK North Sea and southeast Asia (Malaysia, Vietnam and Brunei). MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The Climate.VS for 2035 for EnQuest is 53. While the Climate.VS is high, it is comparable with the average for oil and gas producers. This does not have an immediate affect on the ratings as the energy transition is expected to occur over a very long timescale and there continues to be a high level of uncertainty over its pace and form. Any impact on the rating may differ from the illustrative rating impact in the Climate.VS framework, reflecting the evolution of its assessment of global risks and action the entity might take to adapt to or mitigate the exposure. 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 ----------- ------ -------- ----- EnQuest PLC LT IDR B Rating Watch On B senior unsecured LT B+ Rating Watch On RR3 B+ FRONTIER MORTGAGE 2026-1: Fitch Assigns B-sf Rating on Cl. G Notes ------------------------------------------------------------------ Fitch Ratings has assigned Frontier Mortgage Funding 2026-1 plc's notes final ratings Entity/Debt Rating Prior ----------- ------ ----- Frontier Mortgage Funding 2026-1 plc Class A NRR Loan Note LT AAAsf New Rating AAA(EXP)sf Class A XS3386592029 LT AAAsf New Rating AAA(EXP)sf Class B XS3386592375 LT AA+sf New Rating AA+(EXP)sf Class C XS3386592615 LT A+sf New Rating A+(EXP)sf Class D XS3386592888 LT A-sf New Rating A-(EXP)sf Class E XS3386592961 LT BBB-sf New Rating BBB-(EXP)sf Class F XS3386593183 LT BB-sf New Rating BB-(EXP)sf Class G XS3386593423 LT B-sf New Rating B-(EXP)sf Class X XS3386593779 LT BB+sf New Rating BB+(EXP)sf Class Z XS3386593696 LT NRsf New Rating NR(EXP)sf VRR Loan Notes LT NRsf New Rating NR(EXP)sf Transaction Summary The transaction is a static securitisation containing a mixed pool of seasoned owner-occupied (OO) loans (91.9%) and buy-to-let (BTL) loans (8.1%) originated by Santander UK (STUK) Plc. STUK remains the legal title holder and the servicer of the assets. KEY RATING DRIVERS Seasoned Portfolio, High Arrears: The pool consists predominantly of OO mortgages originated by STUK and its predecessors, with a weighted average (WA) seasoning of 8.5 years. Overall, the pool's credit profile is in line with prime RMBS transactions, despite a material share (26.7%) of pre-2014 originations; 94.5% of the borrowers had verified income and limited adverse credit markers at origination. However, the pool was selected to include weaker loans, featuring 8.3% of restructured loans and 8.2% with more than three payments in arrears, of which 0.7% of the pool balance has been reclassified as defaulted. Fitch has modelled the pool using the prime matrix with a 1.0x transaction adjustment. Interest Rate Swap in Place: At end-March 2026, 83% of the loans paid a fixed interest rate (reverting to a floating rate), while the notes pay a SONIA-linked floating rate. The issuer entered into a swap at closing to mitigate the interest rate risk arising from the fixed-rate mortgages in the pool. The swap features a defined notional balance that could lead to over-hedging in the structure due to defaults or prepayments. This could reduce the available revenue funds in decreasing interest rate scenarios and has been factored into Fitch's analysis. Alternative Prepayment Rates: Fixed-rate loans are subject to early repayment charges. The point at which these loans are scheduled to revert from a fixed to the relevant follow-on rate will likely determine the time of prepayments. Fitch has therefore applied an alternative high prepayment stress that tracks the fixed-rate reversion profile of the pool. The prepayment rate applied is capped at a maximum rate of 40% a year. Product Switches, Limited Interest-Rate Risk: Product switches granted by STUK for non-forbearance reasons will be repurchased from the pool. Product switches to a fixed-rate loan for borrowers in arrears (forbearance-related) will be retained in the pool. STUK offers a fixed product for 12 months, based on a discount from its standard variable rate. The issuer will enter into additional hedging if the proportion of fixed-rate loans exceeds the existing swap notional amount by 5% of the pool's balance, to mitigate the risk of a material portion of unhedged fixed-rate loans in the pool. Fitch has incorporated the exposure to unhedged product-switches up to the allowed limit in its analysis. 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 the economic environment. Weakening economic performance is strongly correlated to increasing levels of delinquencies and defaults that could reduce the credit enhancement available to the notes. In addition, unexpected declines in recoveries could result in lower net proceeds, which may make some notes susceptible to potential negative rating action depending on the extent of the decline in recoveries. Fitch conducts sensitivity analyses by stressing a transaction's base-case foreclosure frequency (FF) and recovery rate (RR) assumptions. Fitch found that a 15% increase in the WAFF and a 15% decrease in the WARR indicated model-implied downgrades of one notch for the class A notes, four notches for the class B, C and D notes, five notches for the class X notes, and more than one category for the E and F 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. Fitch tested an additional rating sensitivity scenario by applying a decrease in the WAFF of 15% and an increase in the WARR of 15%. This leads to model-implied upgrades of one notch for the class B notes, two notches for the class D notes, and five notches for the class E, F and G note. The class A, C and X notes are at their highest achievable rating 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 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. HERMITAGE 2026: Fitch Assigns 'BB+(EXP)sf' Rating on Class E Notes ------------------------------------------------------------------ Fitch Ratings has assigned Hermitage 2026 PLC expected ratings. The assignment of final ratings is contingent on the receipt of documentation conforming to information already reviewed. Entity/Debt Rating ----------- ------ Hermitage 2026 PLC Class A XS3375210963 LT AAA(EXP)sf Expected Rating Class B XS3375206342 LT AA+(EXP)sf Expected Rating Class C XS3375206425 LT A(EXP)sf Expected Rating Class D XS3375206698 LT BBB(EXP)sf Expected Rating Class E XS3375206771 LT BB+(EXP)sf Expected Rating Class F XS3375210617 LT NR(EXP)sf Expected Rating Transaction Summary Hermitage 2026 PLC will be the fourth securitisation of equipment finance receivables originated by Haydock Finance Limited to SME borrowers in the UK. Affiliates of funds managed by Apollo Global Management, Inc. acquired a majority stake in Haydock in 2018. KEY RATING DRIVERS Moderate Obligor Credit Risk: Fitch assumed a default base case of 7.5%, slightly lower than the 8% assumption made for the previous deal, Hermitage 2025. The reduction largely reflects the longer performance data history available for this issuance. Performance has been stable despite a challenging operating environment for SMEs. Haydock targets riskier segments than prime-only lenders, resulting in higher interest rates and an increased focus on asset recovery value. The base case reflects the subdued macroeconomic environment for SMEs in the UK and Fitch's deteriorating sector outlook. Revolving Period Risk Addressed: The transaction will feature a 12-month revolving period from closing, slightly higher than the nine-month revolving period in Hermitage 2025. The longer transaction horizon heightens the risk of changes in origination standards and the risk of an economic downturn. Fitch has set the 'AAA' default multiple at 4.25x, resulting in an 'AAA' default rate of 32%. Pro Rata Increases Risk: The class A to E notes and the unrated class F notes will amortise pro rata with one another until the breach of certain triggers. In Fitch's view, this increases tail risk and makes the ratings more sensitive to default timing and prepayment rates. Fitch analysed the transaction's triggers in its cash flow modelling and believe they are adequate to mitigate the risk at the assigned ratings. Limited Portfolio Concentration: Obligor concentrations are higher than in a typical EMEA ABS pool due to the commercial nature of the borrowers and the presence of some high value assets. However, the pool is still sufficiently granular for Fitch's Consumer ABS Rating Criteria approach to apply. The largest obligor comprises 0.9% of the total pool balance. There is wide diversification across industries, asset types and geographies. Heterogenous Equipment Collateral: The loans finance many asset types, including heavy goods vehicles, light commercial vehicles, "prestige" vehicles, industrial machinery and buses. Haydock focuses on business-critical, high recovery and easily movable assets. This supports strong recoveries. Fitch assigned a recovery base case of 60%. Fitch also applied a median 'AAA' recovery haircut of 50%. The secured nature of recoveries is a strength but there is risk of volatility stemming from exposure to larger, more specialised and higher-value assets. Servicing Continuity Risk Addressed: The credit risk of the obligors and the heterogeneity of the financed equipment increase the complexity of finding replacement servicers. However, Fitch views the risk as adequately mitigated by the presence of a back-up servicer and the availability of liquidity to preserve timely payments on the notes during the transition period. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Rating sensitivity to increased default rates: Increase default rate by 10% / 25% / 50% Class A: 'AAAsf' / 'AAAsf' / 'AA+sf' Class B: 'AA+sf' / 'AA-sf' / 'A+sf' Class C: 'Asf' / 'BBB+sf' / 'BBBsf' Class D: 'BBBsf' / 'BBB-sf' / 'BB+sf' Class E: 'BB+sf' / 'BB+sf' / 'BBsf' Rating sensitivity to reduced recovery rates: Reduce recovery rate by 10% / 25% / 50% Class A: 'AAAsf' / 'AAAsf' / 'AAAsf' Class B: 'AA+sf' / 'AAsf' / 'AA-sf' Class C: 'A-sf' / 'BBB+sf' / 'BBBsf' Class D: 'BBBsf' / 'BBB-sf' / 'BBsf' Class E: 'BB+sf' / 'BBsf' / 'Bsf' Rating sensitivity to increased default rates and reduced recovery rates: Increase default rate and reduce recovery rate each by 10% / 25% / 50% Class A: 'AAAsf' / 'AA+sf' / 'A+sf' Class B: 'AAsf' / 'A+sf' / 'BBB+sf' Class C: 'A-sf' / 'BBBsf' / 'BBsf' Class D: 'BBB-sf' / 'BBsf' / 'CCCsf' Class E: 'BBsf' / 'B+sf' / 'NRsf' Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Rating sensitivity to reduced default rates and increased recovery rates: Reduce default rate and increase recovery rate each by 10% Class B: 'AAAsf' Class C: 'A+sf' Class D: 'A-sf' Class E: 'BBBsf' The class A notes are already rated at 'AAAsf' and therefore 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 has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction and conducted a review of origination files as part of its ongoing monitoring. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information. Prior to the transaction closing, Fitch will review the results of a third-party assessment conducted on the asset portfolio information. 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. J K ROOFING: KRE (North) Appointed as Joint Administrators ---------------------------------------------------------- J K Roofing Specialist Ltd was placed into administration in the High Court of Justice, Business and Property Court in Newcastle, Company & Insolvency List, Court Number 000065 of 2026. Paul Matthew Kings and Lynn Marshall, both of KRE (North) Limited, were appointed as Joint Administrators on June 4, 2026. The company specialised as a roofing contractor. Its registered office and principal trading address is Unit 10, Swales Industrial Estate, Howdon Lane, Wallsend, NE28 0BE. The Joint Administrators can be contacted at: Paul Matthew Kings Lynn Marshall KRE (North) Limited 7-8 Delta Bank Road Gateshead NE11 9DJ Further information: Contact: Lynn Marshall Email: lynn.marshall@krecr.co.uk Tel: 0191 406 7364 KRE (North) Limited LPPC ENVIRONMENTAL: BTG Begbies Appointed as Administrator ---------------------------------------------------------- LPPC Environmental Ltd was placed into administration on June 5, 2026. Kevin Mapstone of BTG Begbies Traynor (Central) LLP was appointed as Administrator. The company specialised in environmental consulting activities. Its registered office is 2 Bothwell Street, Glasgow, G2 6LU (formerly Office 205 - Neospace Neohouse, Riverside Drive, Aberdeen, Aberdeen, AB11 7LH). Its principal trading address is Neo Space, Neo House, Riverside Drive, Aberdeen, Aberdeenshire, AB11 7LH. The Administrator can be contacted at: Kevin Mapstone BTG Begbies Traynor (Central) LLP 2 Bothwell Street Glasgow G2 6LU Further information: Contact: Stanley Smith Email: stanley.smith@btguk.com Tel: 0141 222 2230 Email: glasgow@btguk.com BTG Begbies Traynor (Central) LLP MACKOY LIMITED: Quantuma Advisory Appointed as Joint Administrators ------------------------------------------------------------------- Mackoy Limited, formerly known as Mackoy Construction Limited, was placed into administration in the High Court of Justice, Business and Property Courts of England and Wales, Court Number CR-2026-003236. Kelly Mitchell and Alyson Richards, both of Quantuma Advisory Limited, were appointed as Joint Administrators on June 9, 2026. The company specialised in the construction of commercial buildings. Its registered office is Unit 10 Monks Brook Industrial Park, School Close, Chandlers Ford, Eastleigh, SO53 4RA, and is in the process of being changed to Office D, Beresford House, Town Quay, Southampton, SO14 2AQ. Its principal trading address is Unit 10 Monks Brook Industrial Park, School Close, Chandlers Ford, Eastleigh, SO53 4RA. The Joint Administrators can be contacted at: Kelly Mitchell Alyson Richards Quantuma Advisory Limited Office D, Beresford House Town Quay, Southampton SO14 2AQ Further information: Contact: Laura Stevens Email: Laura.Stevens@quantuma.com Tel: 02380 821 865 Quantuma Advisory Limited NEW FARM: Forvis Mazars Appointed as Joint Administrators --------------------------------------------------------- New Farm Produce Limited was placed into administration in the High Court of Justice, Business and Property Courts in Birmingham, Insolvency and Companies List (ChD), Court Number CR-2026-283. Scott Christian Bevan and Simon David Chandler, both of Forvis Mazars LLP, were appointed as Joint Administrators on June 8, 2026. The company specialised in the growing of pome fruits and stone fruits. Its registered office is c/o Forvis Mazars LLP, 30 Old Bailey, London, EC4M 7AU. Its principal trading address is Park View Farm, Elmhurst, Lichfield, WS13 8EX. The Joint Administrators can be contacted at: Scott Christian Bevan Simon David Chandler Forvis Mazars LLP Three Chamberlain Square Birmingham B3 3AX Further information: Contact: Alexander Mole Email: Alexander.Mole@mazars.co.uk Forvis Mazars LLP OBAN CARDS 2026-1: Fitch Assigns 'BB+sf' Final Rating on Cl. E Debt ------------------------------------------------------------------- Fitch Ratings has assigned Oban Cards 2026-1 plc final ratings and affirmed Oban's existing series. Entity/Debt Rating Prior ----------- ------ ----- Oban Cards 2026-1 plc 2026-1 Class A LT AAAsf New Rating AAA(EXP)sf 2026-1 Class B LT AA+sf New Rating AA+(EXP)sf 2026-1 Class C LT A+sf New Rating A+(EXP)sf 2026-1 Class D LT BBBsf New Rating BBB(EXP)sf 2026-1 Class E LT BB+sf New Rating BB+(EXP)sf 2026-1 Class Z LT NRsf New Rating NR(EXP)sf Oban Cards 2021-1 plc 2021-1 Class A XS2274099832 LT AAAsf Affirmed AAAsf Transaction Summary The transaction is a securitisation of a revolving portfolio of non-prime UK credit card receivables originated by Vanquis Bank Limited (Vanquis; BB-/Positive), wholly owned by Vanquis Banking Group plc (BB-/Positive). Vanquis is one of the leading non-prime card lenders in the UK and is rated in line with Vanquis Banking Group because of its high integration as the group's main operating company. KEY RATING DRIVERS Asset Assumptions Reflect Stable Data: Fitch determined asset assumptions using historical data over more than a decade. As is typical in the non-prime credit card sector, the portfolio has historically shown low payment rates and high yield. Fitch applied a steady-state monthly payment rate of 12% with a 45% stress at 'AAAsf', and a steady-state yield of 30% with a 40% stress at 'AAAsf'. The charge-off assumption of 18% reflects fairly stable historical charge offs, while the stressed charge-off multiple of 3.5x considers the fairly high absolute level of the steady-state and limited volatility in the historical data. Fitch assumed a steady-state purchase rate of 100%, which was stressed by 90% at 'AAAsf' that was gradually reduced to 40% at 'Bsf'. Vanquis is a rated bank and its stress assumptions reflect its assessment of their non-prime portfolio. Rated Originator and Servicer: Fitch assesses Vanquis's credit profile to be in line with Vanquis Banking Group's, based on its role as the group's main operating subsidiary. Vanquis acts in several capacities to this trust, most prominently as originator, servicer and cash manager to the securitisation. The reliance on Vanquis is mitigated by the ease in the transferability of operations to alternative providers and an amortising liquidity reserve. Fitch also considers that Vanquis, being a regulated bank, is subject to regulation that will provide for an orderly wind-down rather than a sudden disruption in operations upon insolvency. Originator and Servicer Linkage: As in all credit card transactions, the trust's performance is closely linked to the originator and servicer due to the revolving nature of the underlying assets and will be influenced by its monitoring and risk-management procedures. Fitch considers Vanquis's policies and procedures to be in line with industry standards and adequate to support the transaction's performance. Unhedged Structure: The credit cards carry a fixed monthly interest rate whereas the notes pay SONIA plus a spread. This mismatch is not hedged but the risk is mitigated by the ability of Vanquis to revise interest rates. The credit card portfolio was successfully repriced when European rates rose in 2022. The remaining risk is reflected in its pricing spread assumption. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Rating sensitivity to increased charge-off rate: Increase steady state by 25%/50%/75%: Class A Notes: 'AA+sf'/'AAsf'/'AA-sf' Class B Notes: 'AA-sf'/'A+sf'/'Asf' Class C Notes: 'Asf'/'A-sf'/'BBBsf' Class D Notes: 'BBB-sf'/'BBsf'/'BB-sf' Class E Notes: 'BB-sf'/'Bsf'/'NR' Rating sensitivity to reduced monthly payment rate (MPR): Reduce steady state by 15% /25%/35%: Class A Notes: 'AA+sf'/'AAsf'/'AA-sf' Class B Notes: 'AA-sf'/'A+sf'/'Asf' Class C Notes: 'Asf'/'A-sf'/'BBB+sf' Class D Notes: 'BBBsf'/'BBB-sf'/'BB+sf' Class E Notes: 'BBsf'/'BB-sf'/'BB-sf' Rating sensitivity to reduced purchase rate: Reduce steady state by 50%/75%/100%: Class A Notes: 'AAAsf'/'AAAsf'/'AAAsf' Class B Notes: 'AAsf'/'AAsf'/'AAsf' Class C Notes: 'A+sf'/'A+sf'/'Asf' Class D Notes: 'BBBsf'/'BBBsf'/'BBB-sf' Class E Notes: 'BBsf'/'BBsf'/'BB-sf' Rating sensitivity to reduced yield: Reduce steady state by 15%/25%/35% (with unchanged pricing spread assumptions): Class A Notes: 'AAAsf'/'AAAsf'/'AAAsf' Class B Notes: 'AA+sf'/'AAsf'/'AAsf' Class C Notes: 'A+sf'/'A+sf'/'Asf' Class D Notes: 'BBBsf'/'BBB-sf'/'BB+sf' Class E Notes: 'BB-sf'/'B+sf'/'Bsf' Rating sensitivity to increased charge-off rate and reduced MPR: Increase steady-state charge-offs by 25%/50%/75% and reduce steady-state MPR by 15%/25%/35%: Class A Notes: 'AAsf'/'Asf'/'BBB+sf' Class B Notes: 'A+sf'/'BBB+sf'/'BBB-sf' Class C Notes: 'A-sf'/'BBB-sf'/'BBsf' Class D Notes: 'BB+sf'/'B+sf'/'Bsf' Class E Notes: 'B+sf'/'NR'/'NR' Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Rating sensitivity to decreased charge-off rate: Decrease steady state by 25%: Class A Notes: 'AAAsf' Class B Notes: 'AAAsf' Class C Notes: 'AAsf' Class D Notes: 'Asf' Class E Notes: 'BBBsf' 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 sought to receive a third-party assessment conducted on the asset portfolio information, but it was unavailable for this transaction. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the rating agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. PEGASUS WAREHOUSING: Leonard Curtis Appointed as Administrators --------------------------------------------------------------- Pegasus Warehousing & Fulfilment Ltd was placed into administration in the High Court of Justice, Business and Property Courts in Manchester, Insolvency & Companies List (ChD), Court Number CR-2026-MAN-000852. Mike Dillon and Andrew Knowles, both of Leonard Curtis, were appointed as Joint Administrators on June 3, 2026. The company specialised in the operation of warehousing and storage facilities for land transport. Its registered office is Orme Business Centre, Greenacres Road, Lees, Oldham, Lancashire, OL4 3NS. The Joint Administrators can be contacted at: Mike Dillon Andrew Knowles Leonard Curtis Riverside House Irwell Street Manchester M3 5EN Further information: Email: recovery@leonardcurtis.co.uk Leonard Curtis SMALL BUSINESS 2026-1: Fitch Assigns 'BBsf' Rating on Class C Notes ------------------------------------------------------------------- Fitch Ratings has assigned Small Business Origination Loan Trust 2026-1 DAC's notes final ratings. Entity/Debt Rating Prior ----------- ------ ----- Small Business Origination Loan Trust 2026-1 DAC A-Loan LT Asf New Rating A(EXP)sf B XS3352063559 LT BBBsf New Rating BBB(EXP)sf C XS3352064102 LT BBsf New Rating BB(EXP)sf R XS3352064441 LT NRsf New Rating Z XS3352064284 LT NRsf New Rating NR(EXP)sf Transaction Summary The transaction is a true-sale securitisation of a GBP353.32 million static pool of UK mostly unsecured SME loans, originated through the marketplace lending platform of Funding Circle Ltd (FC, servicer) and sold by Glencar Investments 49 DAC. This is the fourth issuance from this platform to be rated by Fitch, and the 10th overall. KEY RATING DRIVERS SME Borrower Default Probability: Fitch analysed the default risk of the underlying SME portfolio based on FC's static default vintage data, which is disclosed for each internal risk band separately. For the securitised portfolio, including the 'A+' to 'D' risk bands, Fitch determined an average one-year probability of default at close to 5.0%. Unsecured SME Loans: The transaction's underlying loans are backed by personal guarantees granted by the owners of the SME borrowers, except for a minor portion of the portfolio (GBP6.6 million) that benefits from a debenture granted by the SME borrowers themselves. Fitch analysed the static recovery vintage data and determined an average recovery rate of close to 35%, expected to be uniformly distributed over a five-year period after a borrower default. Waterfall Eden Master Fund, Ltd may also purchase all the defaulted loans at a price of no less than 36.5% of their par amount a maximum of twice throughout the transaction. Granular Portfolio: The collateral portfolio features low single obligor concentration levels, with the top 10 obligors accounting for 2.2% of the portfolio balance. However, industry concentration is more in line with other SME portfolios. The largest three industries accounting for 44.6% of the portfolio balance, led by property and construction (19.9%), followed by manufacturing and engineering (12.6%) and professional and business support (12.1%). Sensitivity to Pro Rata Period: The transaction will feature pro rata amortisation of the notes at closing until the breach of a sequential-pay trigger. The pro rata amortisation is based on the note balance net of the corresponding principal deficiency ledger but also includes the subordinated notes. Pro rata structures generally leak proceeds to subordinated notes and therefore are at a higher risk than sequential amortisation. Their ratings are more sensitive to the back-loaded default timing assumption as it determines the timing of the continued leakage of principal to subordinated notes. Consistent with the historical performance default data provided by FC for its loan book and previous securitisations, Fitch applied some defaults during the first year of the transaction's life under its back-loaded default timing assumption. This approach is in line with Fitch's criteria for portfolios of consumer loans with similar granularity and tenor. Model-Implied Rating Deviation: The class A to C notes are rated one notch above their model-implied ratings. This deviation reflects the impact of modelling higher fees, assuming that the back-up servicer takes over from day one after closing for the full life of the transaction as well as modelling high prepayments and high defaults. Fitch deems this to be a highly remote scenario. Under the assumption that the original servicer remains in place for the life of the transaction, the model-implied ratings would not be lower than the assigned ratings. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Weakening asset 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 also result in lower net proceeds, which may make certain notes susceptible to negative rating action, depending on the extent of the decline in those recoveries. An increase of the rating default rate (RDR) by 25% of the mean default rate and a 25% decrease of the rating recovery rate (RRR) at all rating levels would lead to downgrades of up to three notches for the notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade After the end of the pro-rata period, upgrades may occur on better-than-initially expected asset performance, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. A reduction of the RDR by 25% of the mean default rate and a 25% increase of the RRR at all rating levels would lead to upgrades of up to one notch for 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 reviewed the results of a third party assessment conducted on the asset portfolio information, and concluded that there were no findings that affected the rating analysis. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. TENETCONNECT SERVICES: Appoints Interpath as Joint Liquidators -------------------------------------------------------------- Robert Thomas Spence and Joshua James Dwyer of Interpath Advisory were appointed Joint Liquidators of TenetConnect Services Limited and TenetConnect Limited on June 1, 2026. For further details contact Interpath Advisory at tenet.customers@interpath.com or tenet.employees@interpath.com or tenet.creditors@interpath.com The Joint Liquidators can be reached at: Interpath Ltd. 10 Fleet Place London, EC4M 7RB TRAVIS PERKINS: Fitch Affirms & Then Withdraws 'BB+' LongTerm IDR ----------------------------------------------------------------- Fitch Ratings has affirmed Travis Perkins Plc's Long-Term Issuer Default Rating (IDR) at 'BB+' with a Stable Outlook. It has simultaneously withdrawn the ratings. The affirmation and Stable Outlook reflect Travis Perkins' strong cash-preservation measures, which have helped offset weaker EBITDA margins in a challenging trading environment and support a strong financial structure and flexibility consistent with the rating. Fitch expects EBITDA margins to decline further in 2026 to 3.7%, before rising in 2027-2029. However, Fitch expects free cash flow (FCF) to remain weak for the rating, and net leverage to remain within its rating sensitivities at 1.8x-2.2x over 2026-2029. Fitch has chosen to withdraw Travis Perkin's ratings for commercial reasons and will no longer provide ratings or analytical coverage for the company. Key Rating Drivers Market Remains Challenging: Travis Perkins' 2025 revenue and EBITDA were below its expectations, with Fitch-adjusted EBITDA of about GBP173 million versus its expectation of GBP216 million. Weak consumer spending, low housebuilding activity and commodity price deflation reduced earnings, while the Fitch-adjusted EBITDA margin deteriorated to 3.8%, from 4.5% in 2024. Fitch expects trading conditions to remain difficult in the near term as activity in the group's core markets remains weak. Fitch expects conditions to improve in 2027, supported by a recovery in homebuilding activity. Improving Leverage: Fitch expects EBITDAR net leverage to reduce to 2.2x at end-2026, before gradually improving through 2029. The deleveraging path is driven mainly by higher cash balances and cash preservation measures, with contribution from EBITDA margin gains from 2027. Fitch forecasts EBITDAR fixed-charge coverage to weaken further to 2.0x in 2026 before gradually improving to 2.5x by 2029. Cash Flow Management: Travis Perkins has a record of effective cash-saving measures. Its forecast includes low base capex, in line with company guidance, continued working capital improvement through inventory management, and low dividends in 2026. This supports neutral-to-positive free cash flow (FCF) throughout 2026-2029. Toolstation Improving: Toolstation UK continues to improve profitability and perform well in a difficult market, which Fitch expects to continue in 2026, supported by further price inflation and new store openings. It continues to gain share as stores mature, reinforcing its position as the number two supplier in the UK market. Toolstation Benelux remains challenged with profitability. It showed some improvement in 2025, but further operational disruption limited progress. Fitch expects further restructuring in Toolstation Benelux to lead to additional related costs. Market Leader in UK: Travis Perkins is the UK's largest distributor of building materials to the building, construction and home-improvement markets, with about 1,500 stores. It is firmly positioned to benefit from a market recovery. Its scale and market-leading position provide economies-of-scale advantages over its direct competitors, which are mostly smaller independent outlets. Geographic Concentration: Travis Perkins' business is heavily concentrated in the UK, unlike its more diversified peers such as Winterfell Financing S.a.r.l., which has exposure to several countries. The lack of geographical diversification is a rating constraint. Its announced exit from France will further reduce its diversification. Cyclical Business: Travis Perkins is exposed to the cyclical UK construction and housebuilding sectors, a weakness that has been reflected in the almost 60% decline in EBITDA margins between 2021 and 2025. However, Fitch believes that underlying demand drivers remain robust, amid an ageing and scarce UK housing stock. The government's various sustainability targets should also drive increased investment in housing, including in energy efficiency. This should support the recovery of trading performance over time. Peer Analysis Travis Perkins' forecast EBITDA margin (3.7%-4.6% over 2026-2028) compares favourably with that of Nordic buildings materials distributor, Winterfell Financing S.a.r.l. (Stark, B-/Rating Watch Negative), due to the latter's greater focus on heavy building materials. Quimper AB (B+/Stable), a Nordic distributor of installation products, tools and suppliers, is similar in size and has a higher EBITDA margin of over 9%. Quimper also demonstrates stronger underlying FCF generation than Travis Perkins. However, its EBITDA leverage is more than 2.0x higher than Travis Perkins', which alongside a more aggressive financial policy, explains the three-notch difference between the ratings. DIY retailer Kingfisher plc's (BBB/Stable) business profile is supported by greater scale, geographical diversification, higher margin and lower leverage, which leads to its rating being two notches higher than Travis Perkins'. Fitch’s Key Rating-Case Assumptions - Revenue to grow 1.1% in 2026 amid continued challenging market conditions and minimal volumes growth, followed by low single-digit growth 2027-2029, driven by a gradual recovery in repair, maintenance, and improvement volumes and construction activity - Fitch-defined EBITDA margin to remain under pressure at 3.7% in 2026, before gradually recovering to 5% by 2029 - Working capital inflow of 1.1% of revenue in 2026, followed by an outflow at an average of 0.3% in 2027-2029 - Capex to normalise at 1.7% of revenue in 2026-2029 - Bolt-on M&A at GBP10 million a year during 2026-2029 - Dividend payments GBP30 million in 2026, followed by GBP35 million-GBP60 million in 2027-2029 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 ('bb', Moderate), market and competitive positioning ('bbb-', Lower), diversification and asset quality ('b+', Moderate), company operational characteristics ('bb-', Moderate), profitability ('b', Moderate), financial structure ('bbb+', Higher), and financial flexibility ('bb', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 25% weight for the forecast year 2026, 25% for the forecast year 2027, 25% for the forecast year 2028 and 25% for the forecast year 2029. The governance assessment of 'good' has no impact. The operating environment assessment of 'aa-' 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 Not applicable Liquidity and Debt Structure Fitch expects Travis Perkins' year-end cash balances to remain at GBP380 million-420 million in 2026-2029, after restricting GBP50 million for working-capital seasonality. Travis Perkins' Fitch-adjusted cash on balance sheet of GBP377 million is supported by its GBP375 million fully undrawn revolving credit facility at end-2025, which matures in November 2028. At end-2025, Travis Perkins reported gross debt of GBP425 million, which included GBP350 million US private placement notes (multiple tranches maturing between 2028 and 2037), and a bilateral loan of GBP75 million maturing in November 2027. Issuer Profile Travis Perkins is the UK's largest distributor of building materials to the building, construction and home improvement markets. It serves a full range of building material customers in the UK from around 1,426 branches. 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 Travis Perkins. 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. Following the rating withdrawal, Fitch will no longer provide ESG scores for Travis Perkins. Entity/Debt Rating Prior ----------- ------ ----- Travis Perkins Plc LT IDR BB+ Affirmed BB+ LT IDR WD Withdrawn ST IDR B Affirmed B ST IDR WD Withdrawn =============== X X X X X X X X =============== [] BOOK REVIEW: Black Monday - The Stock Market Catastrophe ----------------------------------------------------------- Author: Tim Metz Publisher: Beard Books Softcover: 268 pages List Price: $34.95 Order your personal copy at http://amazon.com/exec/obidos/ASIN/1587982145/internetbankrupt Metz uses his 23-year career as a journalist with the "Wall Street Journal" to good effect in this account of the worst stock-market crash since 1929. Chapters and sections within them begin by noting date and location in the style of newspaper reports--e. g., "October 19, 1987 - New York Stock Exchange, chairman's office, 10:45 A.M."; "August 25, 1987 - Storefront broker's office near Canal Street, 11:30A.M." This has the effect of dramatizing the collapse, events surrounding it, and varied individuals playing key roles in trying to deal with it and affected by it. A hotel in Paris, a roadway leading to the Caracas, Venezuela airport, the White House, and the Chicago Mercantile Exchange are other locations. Like a camera panning from one scene to the next, Metz's style keeps the drama high and the story moving. Even though the generalities of this historic stock-market event are known, one is drawn into Metz's telling by its inside-story perspective and to find out how the main characters act as the event unfolds and how things turn out for them in the end. Two of these main characters are John Phelan, chairman of the New York Stock Exchange at the time, and Donny Stone, an NYSE trading specialist. The book opens with Phelan in his chairman's office in a meeting with the heads of Salomon Brothers, Merrill Lynch, Goldman Sachs, and other top financial and securities firms. They are all extremely concerned about the 235-point stock-market decline of the preceding week. And they have different thoughts on its causes, import, and appropriate responses to it. After seeing the havoc in the stock market of the previous week, Donny Stone cuts short his vacation in Florida to hurry back to New York to take care of his business as best he can in the circumstances which are having repercussions not only at the NYSE, but also in Washington, D. C., across America, and around the world. The long-term crippling consequences that Wall Street's top leaders and high government officials feared the worse were avoided by a combination of enlightened quick remedies, lowering of fears, expertise and professionalism among numerous individuals in positions high and low, and opportunism among many who saw new opportunities in the havoc. While the worst consequences of the sudden, unexpected, chaotic collapse were avoided and normal order and predictability returned to the financial markets before long, "Black Monday" brought essential changes to the NYSE and the business of trading. Most of the public were not aware of these changes as normal operations returned over the following weeks. But they were unmistakable to insiders; and many individuals connected to Wall Street for decades were hurt by the changes. At Metz's paper, the "Wall Street Journal," some staff were let go because of the reduction in advertising and circulation following the crash. But apart from countless individuals who lost their jobs from the dislocations caused by the crash, the business of trading had a sea change. "Black Monday" brought to light the degree to which traders and trading had come to dominate the modern-day stock market. Of course, trading in stocks had always been the NYSE's reason for being. But as the market crash evidenced, trading had taken on a life of its own. Trading calculations, as seen especially in risk arbitrage, had become so sophisticated and easy to execute that market weaknesses being exploited were publicized widely and quickly. Along with this, the volume of stocks traded and the speed with which financial transactions occurred with advanced communications made the market more mercurial and unmanageable than it had ever been. The very image of trading had been changed within the financial community. As William Simon, the former Secretary of the Treasury, noted, when he first entered investment banking, "trading was not a respectable profession." But by the time of the 1987 disaster and even more so in the years after it, "kids out of B-school are dying to get to the trading desk." Trading has become a high-profile, quasi-glamorous subject in the daily financial and business media. And to the graduates of business schools, it is seen as the field where the most money can be made most quickly and easily. Tim Metz captures all of the dimensions and human drama of this watershed event in the history of the New York Stock Exchange. He closes with the Cassandra-like note that instead of trying to control the astonishingly high levels of trading in short periods of time which was a major cause of Black Monday, the NYSE with the guidance and support of the Security Exchange Commission (SEC) increased the capacity for trading. After more than two decades with "The Wall Street Journal," Tim Metz became the head of his own firm in the areas of financial communications and media relations strategy and execution. ********* 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 * * *