260715.mbx

260715.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, July 15, 2026, Vol. 27, No. 140 Headlines F R A N C E TAKECARE BIDCO: Moody's Puts 'B2' CFR on Review for Downgrade G E R M A N Y ADLER PELZER: Moody's Confirms 'B3' CFR, Outlook Positive APOLLO 5 GMBH: Moody's Alters Outlook on 'B1' CFR to Positive I R E L A N D JH NORTH AMERICA: Moody's Assigns 'Ba1' CFR, Outlook Stable RRE 30 LOAN: S&P Assigns BB- (sf) Rating to Class D Notes I T A L Y JANUS SPV SRL: Moody's Assigns B2 Rating to EUR15.35MM Cl. B Notes L U X E M B O U R G AI SIRONA: S&P Withdraws 'B' Long-Term Issuer Credit Rating LUNE HOLDINGS: Moody's Cuts CFR to C, Alters Outlook to Stable NEURAXPHARM HOLDCO: S&P Downgrades ICR to 'B-', Outlook Stable N E T H E R L A N D S UNIT4 GROUP: Moody's Withdraws 'B2' CFR Following Debt Repayment S W E D E N VITAL HOLDCO: S&P Assigns Preliminary 'B+' ICR, Outlook Stable T U R K E Y LIMAK CIMENTO: Moody's Affirms 'B2' CFR, Outlook Remains Stable U N I T E D K I N G D O M HAZEL RESIDENTIAL: S&P Lowers CL. F-Dfrd Notes Rating to 'B- (sf)' WISE PLC 2006-1: Moody's Hikes Rating on GBP11.25MM C Notes to B2 - - - - - =========== F R A N C E =========== TAKECARE BIDCO: Moody's Puts 'B2' CFR on Review for Downgrade ------------------------------------------------------------- Moody's Ratings has placed the ratings of Takecare Bidco (Sante Cie, or the group) on review for downgrade, including its B2 Corporate Family Rating, B2-PD Probability of Default Rating, and the B2 rating on the backed senior secured Term Loan B (Facility B) and the backed senior secured Revolving Credit Facility (RCF). Previously, the outlook was stable. The action follows the company's disclosure that four subsidiaries of the group were notified of account seizures totaling EUR45.5 million, ordered by the Paris Judicial Court in the context of a preliminary investigation opened by the Parquet National Financier (PNF). The investigation relates to the group's commercial strategy. The group contests the prosecutors' position and has appealed the seizures. The seizures constitute an event of default under the group's senior facilities documentation, in respect of which the group intends to submit a waiver request to its lenders. RATINGS RATIONALE / FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The review will focus primarily on the outcome of the ongoing waiver negotiations with the group's senior lenders. The review will assess the perimeter, duration, and any protective terms attached to the waiver. The review will further focus on: (i) any new public information or communication regarding the scope, direction, and timing of the investigation; (ii) developments in the mandat ad hoc proceedings and interactions with financial stakeholders; (iii) the group's operating performance, specifically any slowdown in patient recruitment; and (iv) the group's liquidity position, including cash on balance sheet, and RCF drawings. As of end-June 2026, the group's cash balance was approximately EUR35.5 million, after deducting the EUR45.5 million seizure; in addition, the RCF remained fully undrawn. The group's next significant debt maturity is the EUR820 million senior secured Term Loan B maturing in 2031, and there are no material near-term amortization requirements. The adequacy of the liquidity assessment is, however, contingent on the group retaining full access to its RCF, which w Moody's e will continue to monitor as part of Moody's ongoing review. Governance considerations are a key driver of the rating action. The ongoing PNF preliminary investigation and the resulting account seizures introduce uncertainty regarding potential governance implications, including in relation to compliance, business conduct and internal control practices, which Moody's will continue to assess as more information becomes available. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Business and Consumer Services published in February 2026. COMPANY PROFILE Santé Cie, headquartered in Lyon, France, is one of the leading providers of home-care services (Prestataire de Santé à Domicile or PSAD) in France. The company provides medical equipment, consumables, logistics and paramedical services for infusion, parenteral and enteral nutrition as well as respiratory assistance. ============= G E R M A N Y ============= ADLER PELZER: Moody's Confirms 'B3' CFR, Outlook Positive --------------------------------------------------------- Moody's Ratings has confirmed the B3 corporate family rating, the B3 backed senior secured notes rating and the B3-PD probability of default rating of German auto parts supplier Adler Pelzer Holding GmbH (Adler Pelzer), with a positive outlook. Previously, the ratings were on review for downgrade. This rating action concludes the review for downgrade initiated on March 26, 2026. "The confirmation reflects the signing of the private credit refinancing transaction, which resolved the company's liquidity pressure," said Matthias Heck, a Moody's Ratings Senior Vice President - Ratings and Lead Analyst for Adler Pelzer. "The positive outlook reflects relatively strong leverage and margin levels, which could result in a rating upgrade in the next 12-18 months," added Mr. Heck. RATINGS RATIONALE On July 08, 2026, Adler Pelzer announced the signing of a private credit financing package, including a EUR510 million term loan facility to refinance its upcoming debt maturities, comprising the EUR400 million bonds, a EUR68 million term loan from Barclays, both due in April 2027, and EUR22 million drawn under its EUR55 million revolving credit facility (RCF) due in October this year. In addition, the company announced a new RCF of EUR85 million and a new shareholder loan of EUR70 million, which Moody's expects to be considered as equity, in line with the already existing shareholder loans of EUR90 million. Following the closing of the transaction and the repayment of the bonds, Moody's expects to withdraw Moody's ratings on the company. Moody's reviews was focused on the company's ability to manage its liquidity and refinance its existing capital structure at terms that enable the company to generate positive free cash flow and maintain Moody's adjusted EBITDA / interest expense of above 2.5x. With the signing of the refinancing transaction, Moody's expects the company to significantly improve its liquidity situation, a key factor for the confirmation of the rating. The positive outlook recognizes Adler Pelzer's operating performance, which remains solid in an overall challenging automotive sector environment. This should enable the company to maintain relatively solid margins and moderate leverage levels over the next 12-18 months. The B3 CFR of Adler Pelzer balances the company's solid margins (5.4% Moody's-adjusted EBIT margin) and leverage (3.9x Moody's-adjusted gross leverage) against the relatively weak interest cover (2.7x EBITDA/interest) in the last twelve months to March 2026. The B3 CFR is supported by Adler Pelzer's position as a leading automotive supplier of products for noise, vibration and harmonics applications in light vehicles and trucks; long-term and well-established relationships with a diverse mix of automotive original equipment manufacturers; history of revenue growth in excess of global light vehicle production; positive exposure to the trend towards electrified vehicles; and a general commitment of the main shareholder to support the group, if needed, as demonstrated by a sizeable equity injection in the form of a EUR120 million shareholder loan in 2023. Factors constraining the rating include the group's exposure to volatile commodity prices, which might not be fully passed on to customers or with a delay; exposure to the cyclicality of the automotive industry and unstable production rates over the last few years; challenges from tightening emission regulations and rising investments in new drivetrain technologies; Moody's forecasts of slow economic growth and continued geopolitical risks, potentially weighing on consumer sentiment and demand; and continued pressure on FCF generation due to high interest expenses. LIQUIDITY Following the refinancing, Adler Pelzer's liquidity will become adequate. At the end of March 2026, the group's cash sources comprised of EUR211 million of cash and cash equivalents, of which Moody's assumes around EUR175 million to be readily accessible by the group (excluding cash belonging to JV partners). The new EUR85 million committed RCF will be undrawn. The planned EUR70 million injection from the shareholders will improve liquidity accordingly. Moody's projects around EUR130 million annual operating cash flow. Adler Pelzer's basic cash needs include (1) around EUR76 million short-term debt as of March 31, 2026 (excluding accrued bond interest and short-term lease obligations), consisting mainly of credit lines that are usually rolled over, (2) Moody's working cash assumption of around EUR70 million (representing 3% of sales), (3) EUR125 million annual capital spending, including lease liability payments, and (4) expected minority dividends of around EUR15 million. ENVIRONMENTAL, SOCIAL AND GOVERNANCE CONSIDERATIONS ESG considerations have been a driver for this action. More specifically, the refinancing agreement has strengthened the company's liquidity situation and reflects Adler Pelzer's financial strategy and risk management. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS An upgrade would require Moody's-adjusted EBIT margin exceeding 4%, Moody's-adjusted debt/EBITDA remaining below 4.5x, and Moody's-adjusted EBITDA/interest expense exceeding 3.5x, all on a sustained basis, as well as maintenance of at least adequate liquidity levels, following the successful refinancing at conditions allowing sustained positive Moody's-adjusted FCF. Moody's could downgrade Adler Pelzer's B3 CFR, if its liquidity deteriorated further. Moreover, a downgrade could be driven by Moody's-adjusted EBIT margin reduced below 3%, Moody's-adjusted debt/EBITDA exceeded 5.5x and Moody's-adjusted EBITDA/interest expense below 2.5x, all on a sustained basis. The group's failure to maintain positive Moody's-adjusted FCF could also indicate negative rating pressure. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Automotive Suppliers published in November 2025. The scorecard-indicated outcome is B1 as of March 2026 and on a 12-18 month forward-looking basis. The difference to the actual B3 rating assigned is explained by the volatility of the automotive industry and the company's history of volatile and mostly negative free cash flows. APOLLO 5 GMBH: Moody's Alters Outlook on 'B1' CFR to Positive ------------------------------------------------------------- Moody's Ratings has affirmed Apollo 5 GmbH's (Aenova or the company) B1 corporate family rating and B1-PD probability of default rating. At the same time, Moody's have affirmed the B1 ratings on the senior secured term loan B1 due in August 2031 and the senior secured revolving credit facility (RCF) due in February 2031, both issued by Aenova Holding GmbH, which is a direct subsidiary of Apollo 5 GmbH. The outlook on both entities was changed to positive from stable. RATINGS RATIONALE The change of outlook to positive reflects Aenova's strong operating momentum and consistent deleveraging trajectory, which Moody's expects to continue over the next 12 to 18 months, supported by the existing product portfolio, new project wins, and the successful ramp-up of the Latina sterile fill and finish line 1 dedicated to GLP-1 injectables. In the next 12 to 18 months, Moody's expects leverage to decrease towards 3.0x and free cash flow, including growth capital expenditures, to turn positive. Although 2025 was a transitional year for Aenova, with revenue growth of only 1.5% and the Moody's-adjusted EBITDA margin broadly flat at 18.7%, performance was held back by temporary headwinds, including the delayed ramp-up of the Latina GLP-1 sterile fill and finish line and isolated production issues. These effects have now largely dissipated, and the first five months of 2026 point to a clear inflection point. Year-to-date, as of May 2026 revenue grew by mid-single digits in percentage terms, ahead of budget, while profitability stepped up meaningfully, with the Moody's-adjusted EBITDA margin expanding by more than three percentage points year-on-year to above 21% and the 12 months ended May 2026 EBITDA reaching around EUR180 million. The improvement is broad-based, reflecting the successful ramp-up of the Latina GLP-1 line, which is now running ahead of plan on both yields and volumes, alongside better operational execution across the network and a positive contribution from price and mix. Going forward, Moody's expects Moody's-adjusted EBITDA to reach around EUR190 million in 2026 and around EUR215 million in 2027, with the margin trending sustainably above 20%. This trajectory is supported by the continued ramp-up of the Latina GLP-1 line; ongoing price pass-through mechanisms embedded in customer contracts, which help protect margins against input cost inflation; and a progressive shift in the product mix towards more complex, higher-value dosage forms and formulations that structurally enhance profitability. Aenova's B1 CFR continues to reflect the company's good market positions in oral solids, semisolids and softgel dosage forms in Europe, as well as in animal health; positive long-term market fundamentals underpinned by growing consumer demand; modest customer concentration with long-standing relationships; and a strong trend of new contract wins alongside a shift towards more complex products. The rating remains constrained by the geographical concentration of production, particularly in Germany; a degree of business risk in the CDMO sector related to responsible production, although Aenova has a good track record on quality; and muted free cash flow (FCF) generation due to the significant capex program associated with the strong revenue growth. LIQUIDITY Aenova's liquidity is adequate, underpinned by around EUR50 million of cash on the balance sheet as of end-March 2026 and full availability under its EUR140 million senior secured revolving credit facility (RCF). FCF is expected to remain constrained in 2026, the peak year of the current capex program (around EUR150 million Moody's adjusted capex, 16% of sales), before ramping up towards around EUR15 million in 2027 as capex steps down to around EUR130 million. Under the loan documentation, the senior secured RCF lenders benefit from a springing senior secured net leverage covenant set at 6.0x, tested only when the senior secured RCF is drawn by more than 40%. Moody's expects Aenova to maintain good capacity under this covenant, if tested. STRUCTURAL CONSIDERATIONS Aenova's capital structure consists of a EUR400 million senior secured Term Loan B and a EUR140 million senior secured RCF, both rated in line with the CFR. The B1-PD PDR is at the same level as the CFR, reflecting the use of a standard 50% recovery rate as is customary for bank debt structures with covenant-lite documentation. The facilities rank pari passu, benefit from upstream guarantees from the group's restricted subsidiaries representing at least 80% of consolidated EBITDA, and are secured by intragroup receivables, bank accounts and share pledges. OUTLOOK The positive outlook reflects Aenova's strong operating momentum and consistent deleveraging trajectory which Moody's expects to continue over the next 12 to 18 months driven by its existing product portfolio and new project wins. Moody's could change the outlook to stable from positive if the company fails to deliver on its business plan objectives over the next 12 months, including steady margin improvements, leverage reduction, positive FCF and enhanced interest coverage. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Moody's could upgrade Aenova's ratings if the company demonstrates a sustained ability to grow its revenue base and improve EBITDA margin to above 20%. An upgrade would also require Moody's-adjusted debt/EBITDA to decline and remain below 3.5x, Moody's-adjusted EBITA/interest expense to improve and remain sustainably above 3.0x, and Moody's-adjusted free cash flow to debt to rise towards high single digit percentage range, even while accommodating its significant growth capex program. Additionally, evidence of a consistent track record of prudent financial policy would be necessary to support an upgrade. Negative pressure on the rating could materialize if (i) the company fails to deliver on projected improvements to revenue generation and profitability, as per management plan, or its operating performance deteriorates, (ii) its Moody's-adjusted debt to EBITDA increases above 4.5x, (iii) its FCF remains limited for an extended period of time or becomes negative, (iv) its Moody's-adjusted EBITA/interest expense remains below 2.0x. Negative pressure would also build up in case of more aggressive financial policy. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Business and Consumer Services published in February 2026. COMPANY PROFILE Headquartered in Starnberg, Germany, Aenova is a leading European CDMO providing outsourcing services to the pharmaceutical and healthcare industries. Aenova operates primarily through 13 production sites in Europe and 1 in the US, delivering in more than 80 countries and has 7 development centers. For the 12 months that ended March 2026, the company generated revenue of EUR893 million and company-adjusted EBITDA of EUR173million. ============= I R E L A N D ============= JH NORTH AMERICA: Moody's Assigns 'Ba1' CFR, Outlook Stable ----------------------------------------------------------- Moody's Ratings assigned a new Ba1 corporate family rating and a Ba1-PD probability default rating and SGL-1 speculative grade liquidity (SGL) to JH North America Holdings Inc. (James Hardie), the issuer of the debt and an indirect wholly-owned subsidiary of James Hardie Industries plc. At the same time, Moody's affirmed the Ba1 ratings to the senior secured notes due 2031 and 2032. The outlook is stable. The existing ratings at James Hardie International Finance Designated Activity Company's including the Ba1 CFR, Ba1-PD PDR and SGL-1, as well as the stable outlook were withdrawn following the redemption of the $400 million senior unsecured notes due 2028 issued by James Hardie International Finance Designated Activity Company. James Hardie International Finance Designated Activity Company has no other rated debt outstanding. RATINGS RATIONALE James Hardie's Ba1 CFR reflects Moody's expectations of continued robust operating performance and modest leverage as it continues to integrate AZEK Company Inc. (AZEK) acquired on July 01, 2025. Moody's expects James Hardie to maintain conservative financial policies, including focusing on further leverage reduction to about 3x debt/EBITDA by fiscal year 2027 (ending March 2027). Leverage stood at 3.9x debt/EBITDA in fiscal year 2026. Improvements in credit metrics will likely be supported by organic earnings growth. James Hardie benefits from well-known brands such as its James Hardie fiber cement for exterior siding and Azek deck boards. Constraining credit factors include the inherent cyclicality of demand in the US construction industry and weak interest coverage. Furthermore, capital deployment for potentially large debt-financed acquisitions is another risk. The stable outlook reflects Moody's expectations that the company will continue to perform well, and leverage will improve towards 3x debt/ EBITDA over the next 12 months. Very good liquidity and conservative financial policies further support the stable outlook. The company's liquidity is a strength. James Hardie's SGL-1 rating reflects Moody's views that the company will maintain very good liquidity over the next 18 months. Moody's expects the company will generate $400 million in free cash flow in 2027. James Hardie has access to an unrated $1 billion revolving credit facility (RCF) due May 2030. At March 31, 2026, the company had no borrowing under its RCF and $269 million cash on hand. James Hardie Industries plc (JHI plc), a holding company, is the issuer of the audited financial statements and the direct parent company of James Hardie International Group Limited (JHIGL). JHIGL guarantees the debt of JH North America Holdings Inc. (JHNAH). James Hardie Building Products Inc. (JHBP), the primary US operating entity of JHI plc, provides upstream guarantees to the debt of JHNAH. The collateral for the senior secured notes and the RCF is only a stock pledge of JHI plc's material US subsidiaries. The senior secured bank credit facilities and senior secured notes are pari passu with each other. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if end markets support long-term organic growth, resulting in debt/EBITDA around 2.0x, or EBITA/interest expense is maintained above 5x. Preservation of very good liquidity and an unsecured capital structure would also support an upgrade. The ratings could be downgraded if debt/EBITDA is sustained above 3x or operating performance erodes on a sustained basis. Further, deterioration in liquidity, adoption of aggressive acquisitions or financial policies could result in a downgrade. James Hardie (NYSE: JHX), domiciled in Dublin, Ireland, with operational headquarters in Chicago, Illinois, is a leading North American manufacturer and marketer of fiber cement and fiber gypsum, which are used for outdoor siding, composite decking and other related products for the residential construction end market. Its revenue for the 12 months ended March 31, was $4.8 billion. The principal methodology used in these ratings was Manufacturing published in September 2025. RRE 30 LOAN: S&P Assigns BB- (sf) Rating to Class D Notes --------------------------------------------------------- S&P Global Ratings assigned its credit ratings to RRE 30 Loan Management DAC's A-1 and A-2 Loans and class A-1, A-2, B, C, and D notes. At closing, the issuer also issued EUR62.1 million unrated subordinated notes. The reinvestment period will be approximately 4.5 years, while the noncall period will be 1.5 years after closing. Under the transaction documents, the rated notes will pay quarterly interest unless a frequency switch event occurs. Following this, the notes and loans will switch to semiannual payments. The ratings assigned to the notes and loans reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes and loans through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,685.88 Default rate dispersion 617.43 Weighted-average life (years) 4.92 Obligor diversity measure 129.30 Industry diversity measure 21.02 Regional diversity measure 1.37 Transaction key metrics Total par amount (mil. EUR) 550 Defaulted assets (mil. EUR) 0 Number of performing obligors 170 Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 2.02 Target 'AAA' weighted-average recovery (%) 36.51% Target weighted-average spread net of floors (%) 3.39 Target weighted-average coupon (%) 3.40 Rating rationale S&P said, "Our ratings reflect our assessment of the collateral portfolio's credit quality, which has a weighted-average rating of 'B'. "The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and bonds. Therefore, we conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we used the EUR550.00 million target par amount, the covenanted weighted-average spread of 3.30%, the target weighted-average coupon of 3.40%, the covenanted weighted-average recovery rate at the 'AAA' rating level and the target weighted-average recovery rates at other rating levels. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "Under our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "The transaction's legal structure and framework is bankruptcy remote, in line with our legal criteria. "Our credit and cash flow analysis indicates that the available credit enhancement for the A-2 Loan and class A-2, B, C, and D notes could withstand stresses commensurate with higher ratings than those assigned." However, as the CLO is still in its reinvestment phase starting from the effective date, during which the transaction's credit risk profile could deteriorate, we capped our ratings on these notes and loan. The class A-1 Loan and A-1 notes can withstand stresses commensurate with the assigned ratings. S&P said, "Considering our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe our ratings are commensurate with the available credit enhancement for all rated classes of notes and loans. In addition to our standard analysis, we also included the sensitivity of the ratings on the class A-1 to D notes and the class A-1 and A-2 Loans, based on four hypothetical scenarios." Environmental, social, and governance S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit assets from being related to certain activities. Accordingly, since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in S&P's rating analysis to account for any ESG-related risks or opportunities. RRE 30 Loan Management DAC is a European cash flow CLO securitization of a revolving pool, comprising euro-denominated senior secured loans and bonds issued mainly by speculative-grade borrowers. Redding Ridge Asset Management (UK) LLP manages the transaction. Ratings Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ A-1 AAA (sf) 163.50 39.00 Three/six-month EURIBOR plus 1.26% A-1 AAA (sf) 172.00 39.00 Three/six-month EURIBOR Loan plus 1.26% A-2 AA (sf) 15.00 29.00 Three/six-month EURIBOR plus 1.70% A-2 AA (sf) 40.00 29.00 Three/six-month EURIBOR Loan plus 1.70% B A (sf) 44.00 21.00 Three/six-month EURIBOR plus 1.95% C BBB- (sf) 38.50 14.00 Three/six-month EURIBOR plus 2.70% D BB- (sf) 24.75 9.50 Three/six-month EURIBOR plus 4.90% Performance Notes NR 1.00 N/A N/A Preferred return notes NR 0.25 N/A N/A Subordinated Notes NR 60.85 N/A N/A *The ratings assigned to the A-1 and A-2 Loans and class A-1 and A-2 notes address timely interest and ultimate principal payments. S&P's ratings address ultimate interest and principal payments on the rest of the other rated notes. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. ========= I T A L Y ========= JANUS SPV SRL: Moody's Assigns B2 Rating to EUR15.35MM Cl. B Notes ------------------------------------------------------------------ Moody's Ratings has assigned definitive ratings to the Notes issued by Janus SPV S.r.l.: EUR66.6M Class A Asset Backed Floating Rate Notes due September 2046, Assigned Baa1 (sf) EUR15.35M Class B Asset Backed Floating Rate Notes due September 2046, Assigned B2 (sf) Moody's have not assigned any rating to the EUR37.26M Class J Asset Backed Fixed Rate and Variable Return Notes due September 2046. RATINGS RATIONALE Janus SPV S.r.l. is a static securitisation of non-performing trade receivables owed by Italian Public Administration entities, mainly municipalities and healthcare-related entities, with obligors predominantly located in the South of Italy and on the Islands. The transaction is originated and serviced by Banca Sistema S.p.A. that has a long-established relationship with the sellers being large corporates active in the pharmaceutical sector or electricity utilities. Banca Sistema S.p.A is part of the Gruppo Banca CF+. It represents the first publicly rated securitisation backed by non-performing public trade receivables in Europe. The portfolio consists exclusively of non-performing receivables with a total outstanding principal balance of approximately EUR85.3 million as of December 31, 2025 or March 31, 2026 (cut-off dates), and late payment interests (including statutory late payment interest) already accrued at cut-off date of approximately EUR54.6 million. For almost all receivables the legal process has already started (resulting in an injunctive decree). Post cut-off collections are expected to be applied to pay transaction costs and support the capital structure in accordance with the priority of payments. Moody's ratings reflect an analysis of the characteristics of the underlying portfolio, the historical payment behaviour of Italian Public Administration debtors, sector-wide and originator-specific performance data, the protection provided by credit enhancement and liquidity reserves, the roles of transaction counterparties, and the structural integrity of the transaction. To estimate the cash flows generated by the portfolio, Moody's relied on extensive historical vintage data on invoice recoveries provided by the servicer, covering the period from 2017 to 2025, and applied Moody's non-performing loan cash-flow modelling framework to assess the timing and amount of recoveries under different stress scenarios. In Moody's views, the credit positive features of this transaction include, among others: (i) the nature of the underlying debtors, which are Italian local public administration entities with a historically strong payment behaviour. Based on vintage data, collections both on principal and late payment interests have been consistently high, reflecting the statutory obligation of public entities to honour the claims; (ii) the legal characteristics of the receivables, which are certain, liquid and payable, with almost all receivables supported by injunctive decrees (still some opposed), and, in some cases, judgments. These legal features reduce the risk of dispute over the existence of the claim, although they may still affect timing; (iii) the experience and specialisation of the originator and servicer, Banca Sistema S.p.A., which has a long-standing track record in factoring and credit management services focused on Italian Public Administration entities, supported by a large and granular historical dataset; (iv) the alignment of interest between the servicer and the noteholders, as servicing fees are predominantly performance-based and linked to recoveries rather than to fixed base fees, with additional performance triggers that may subordinate certain fees in case of underperformance relative to the business plan; (v) the interest on the Class B Notes and Class J Notes are postponed to a more junior position in the waterfall, if the cumulative collection ratio is lower than 80% and 90%, respectively, of the expected cumulative principal recovery rate according to the initial business plan anticipated by the servicer. The Class A Notes will benefit from this structural feature. However, the transaction also exhibits several challenging features, such as: (i) concentration at the debtor level (with top 1, 10 and 20 debtors accounting for 8.97%, 40% and 50.1% of the total outstanding principal balance, respectively), notwithstanding the high granularity at the decree and invoice level, which may expose the transaction to idiosyncratic payment delays by few public local debtors; (ii) geographic concentration of the outstanding balance in Southern Italy and the Islands, regions that historically exhibit longer payment times by public entities compared with Northern regions; (iii) a long weighted-average collection period, reflecting the reliance on legal recovery processes for a significant portion of the receivables, particularly those subject to opposed injunctive decrees; and (iv) the presence of legacy and aged receivables, which may increase timing uncertainty, although this is partially mitigated by the availability of legal enforceability and historical recovery evidence. The underlying portfolio is composed of 157,157 non-performing invoices related to 129 sellers (top 20 sellers accounting for 90% of the outstanding principal balance) and 623 public debtors for an original invoice amount of EUR364,810,754.52 resulting in an outstanding principal balance of EUR85,340,964.08 and EUR54,590,489.68 of late payment interests already accrued and late payment ticket expected of EUR4,660,880.00 as of the cut-off dates. In term of outstanding principal balance, local public entities in the South of Italy and on the Islands make up 57.8% of the portfolio, while receivables to healthcare units in the South of Italy and on the Islands for 36.7%, the remaining being mainly local public entities in the Center of Italy. Moody's used Moody's NPL cash-flow model as part of Moody's quantitative analysis of the transaction. Moody's NPL model enables users to model various features of a European NPL ABS transaction - recovery rates under different scenarios, yield as well as the specific priority of payments and reserve funds on the liability side of the ABS structure. Key transaction structure features: To align the servicer's and the noteholders' interests, the servicing fees have been constructed so that Banca Sistema S.p.A. ("Sistema", Not Rated) is incentivized to maximize recoveries because of triggers related to their performance against the business plans. In addition, the seller (Sistema) is obligated to indemnify the issuer in case that representation and warranties regarding the receivables are proven incorrect. Reserve fund: The transaction benefits from an amortising cash reserve equal to 3.95% of the Class A Notes balance at closing, providing liquidity support to senior noteholders, and from an interest rate cap linked to three-month Euribor. Hedging: Class A Notes pay three-month EURIBOR which has a cap starting at 4% for the payment date in September 2026, moving up progressively to 5.5% in December 2030 and ending in June 2031. Moreover, the transaction benefits from an interest rate cap spread agreements for Class A Notes and an interest rate cap agreement for Class B Notes linked to three-month EURIBOR, with JP Morgan SE acting as the cap counterparty. The Class A cap will have a lower strike starting at 2.75% moving up progressively to 4.5% in March 2031 and being stable till June 2031 and an upper strike starting at 4.0% for the payment date in September 2026, moving up progressively to 5.5% in December 2030 and till June 2031. The Class B cap will have a strike starting at 2.75% moving up progressively to 4.5% in December 2030 and being stable till September 2031. The notional of the interest rate caps are approximately equal to the outstanding balance of the Class A Notes and Class B Notes, respectively, at closing decreasing over time with pre-defined amounts. Counterparty risk analysis: Most of the collections are paid directly into the issuer collection account at The Bank of New York Mellon SA/NV, Milan Branch with a transfer requirement if the rating of the account bank falls below Baa2 or P-2. The portfolio will continue to be serviced by Banca Sistema S.p.A. ("Sistema", Not Rated), but the servicing activities performed by Sistema are monitored by the monitoring agent, Banca Finanziaria Internazionale S.p.A. ("Finint", Not Rated). In addition, Finint is the backup servicer and will help the issuer to find a substitute servicer in case the servicing agreement with Sistema is terminated. Methodology The principal methodology used in these ratings was "Nonperforming and Reperforming Loan Securitizations" published in May 2026. Factors that would lead to an upgrade or downgrade of the ratings: Factors that may lead to an upgrade of the ratings include the recovery process of the defaulted receivables producing significantly higher cash flows realised in a shorter time frame than expected resulting from, for example, an improvement in the local public entities payment behavior. Factors that may cause a downgrade of the ratings include significantly less or slower cash flows generated from the recovery process compared with Moody's expectations at closing due to worsening of the public entity payment behavior or a change in economic conditions from Moody's central scenario forecast or idiosyncratic performance factors. For instance, should the financial situation of the Italian local public entities be worse than forecasted the payment timing could raise significantly lengthening the cashflows. =================== L U X E M B O U R G =================== AI SIRONA: S&P Withdraws 'B' Long-Term Issuer Credit Rating ----------------------------------------------------------- S&P Global Ratings withdrew its 'B' long-term issuer credit rating on AI Sirona (Luxembourg) Acquisition S.a.r.l (AI Sirona). The outlook at the time of the withdrawal was stable. The equity sponsor company Advent International controlled Al Sirona -- the investment holding of the pan-European generic drug company Zentiva Group (Zentiva). Zentiva announced its sale by Advent International to new financial sponsor GTCR Funds in September 2025. The debt carried by AI Sirona has been fully redeemed and the new financial sponsor GTCR Funds has implemented a full refinancing package with new debt located in a new entity called Althea Acquisition Bidco S.a.r.l. (Althea). Althea is the new controlling holding of Zentiva, our initial rating on Althea was on Oct. 27, 2025. LUNE HOLDINGS: Moody's Cuts CFR to C, Alters Outlook to Stable -------------------------------------------------------------- Moody's Ratings downgraded Lune Holdings S.a.r.l.'s (Kem One or the company) long term corporate family rating and probability of default rating to C and C-PD from Caa3 and Caa3-PD, respectively. Concurrently, Moody's downgraded Kem One's existing rating for the senior secured global notes (the SSNs) to C from Ca. The outlook was changed to stable from negative. RATINGS RATIONALE The downgrade reflects heightened probability of default in conjunction with lower-than-initially expected recoveries for Kem One's existing instruments, following the company's announced restructuring plan. In particular, the restructuring plan contemplates a full extinguishment of the company's EUR450 million SSNs. The plan contemplates equitization and reinstatement of certain other instruments with a nearly 80% write down of pre-restructuring debt. Moody's will consider the proposed restructuring transaction if completed, as a distressed exchange, which is an event of default under Moody's definitions, because it involves debt write-downs and allows the company to avoid a default. Moody's expects to append a limited default (/LD) designation to Kem One's C-PD PDR upon transaction closing, which is expected to occur in late Q3 or early Q4 2026. Moody's views the announcement as credit positive upon completion because it materially reduces the company's gross debt and interest burden while pushing out the company's debt maturities to 2031 for its reinstated senior debt. However Moody's are unable to assess the degree of capital structure sustainability given the company has ceased providing financial reporting as of June 30, 2025. On June 15, 2026, Kem One announced an agreement in principle with its main financial partners on a EUR100 million recapitalization that will reduce its debt by approximately 80% and transfer control of the company away from its existing shareholder (Apollo-managed funds, owner since 2022). The new liquidity package comprises EUR30 million jointly provided by Monarch Alternative Capital LP (Monarch) and Arini Capital Management Limited as new money equity, EUR40 million of capital contributed by Apollo-managed funds (split between new money debt EUR15 million and preferred shares EUR25 million), and a new EUR30 million super senior revolving credit facility (SSRCF), alongside the maintenance of certain modest existing financing lines. Following the restructuring the company is expected to have approximately EUR185 million of debt (EUR30 million SSRCF, EUR10 million RCF, EUR135 million secured debt, and roughly EUR10 million of BPI loans). Moody's notes the EUR30 million SSRCF may not be drawn at recapitalization closing, but it is designed to provide headroom. The EUR135 million of new secured debt is estimated to pay E+7%, will be due in April 2031 and will PIK for the first two years following the restructuring and Pay if You Can thereafter. Part of the legacy debt will also be reinstated as preferred equity in the capital structure estimated at around EUR155 million with an interest rate a 12.5% and will only be payable in cash upon the company achieving certain financial metrics. Monarch will be the controlling shareholder, with Arini having a minority stake. Final ownership percentages depend on the degree existing senior notes holders choose to participate in providing new money equity. LIQUIDITY Moody's views Kem One's liquidity as weak given the need for restructuring and the absence of financial reporting. However, Moody's expects certain new money to be made available as part of the restructuring plan. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Upward pressure could develop if Kem One completes its restructuring, re-establishes regular financial reporting, demonstrates a sustained recovery in EBITDA and free cash flow, maintains adequate liquidity, and operates with a financial policy consistent with the deleveraged capital structure, including a credible path to addressing the 2031 maturity. Given the current rating position, downward pressure is limited. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Chemicals published in February 2026. The C CFR is three notches below the Caa2 scorecard-indicated outcome based on last twelve months June 2025 results. This differential reflects Kem One recovery prospects for its outstanding debt and absence of current financial reporting. COMPANY PROFILE Lune Holdings S.a.r.l. (Kem One), is domiciled in Luxembourg and is a base chemicals producer, primarily focused on PVC and caustic soda. The company has leading market positions in Southern Europe, while it has limited sales exposure to Northern European countries. The company has eight manufacturing sites in France and Spain. Since 2021, Kem One is majority owned by funds managed by affiliates of Apollo Global Management, Inc. NEURAXPHARM HOLDCO: S&P Downgrades ICR to 'B-', Outlook Stable -------------------------------------------------------------- S&P Global Ratings lowered its ratings on Neuraxpharm Holdco SARL and its debt to 'B-' from 'B', with its recovery rating on the debt remains unchanged at '3', indicating its expectation of 50%-70% recovery prospects (rounded estimate: 50%) in the event of a default. The stable outlook reflects S&P's expectation that Neuraxpharm can generate solid revenue and profitability improvement over the next 12 months, and deleverage toward 7.0x-7.5x by year-end 2027. S&P said, "The downgrade stems from our view that Neuraxpharm's deleveraging to sustainably lower than 7.0x will take longer than previously anticipated, with credit metrics now aligned with a 'B-' rating. This follows weaker-than-anticipated profitability in 2025, when S&P Global Ratings-adjusted EBITDA margins reached 20.9%, short of our forecast of about 25%. This was driven by elevated one-time litigation expenses and ongoing setup costs for Briumvi medication as the company frontloaded certain investments that year. As a result, S&P Global Ratings-adjusted debt to EBITDA was 9.1x at year-end 2025, much higher than we previously expected. This, coupled with the contemplated EUR200 million TLB add-on, underpins our projection of delayed deleveraging toward 8.0x-8.5x in 2026. Moreover, this trend will likely worsen over the next 12 to 18 months, since we expect free operating cash flow (FOCF) to widen negative EUR55 million–negative EUR60 million in 2026, due to elevated growth capital expenditure (capex)--including Briumvi-related investments--and working capital requirements of EUR45 million–EUR50 million linked to sales expansion. We expect cash generation to be pressured as the company continues to invest in new launches and potentially also acquisitions. Nevertheless, we continue to assess Neuraxpharm's liquidity as adequate, supported by a EUR100 million fully undrawn RCF and EUR86 million of cash on the balance sheet as of Dec. 31, 2025." The contemplated additional debt could provide Neuraxpharm with financial flexibility, but the increased amount of total debt will delay previously anticipated deleveraging. The company could use the proceeds of the additional debt to fund strategic acquisitions in the near term, which would support the group's portfolio expansion. However, should such a scenario materialize, Neuraxpharm would likely reap the full financial benefits, with meaningful contributions to revenue and EBITDA, likely only from late 2027. This timing reflects the inherent nature of the industry, where the integration of new assets requires substantial lead time for regulatory alignment, commercial scaling, and the subsequent realization of operational synergies. S&P considers that, in absence of acquisitions, the company could distribute dividends, which may further hamper deleveraging prospects. S&P said, "Despite these challenges, we expect Neuraxpharm's credit profile to improve gradually over the next 12-18 months, supported by robust revenue growth from core business and the increasing contribution of Briumvi. We project the group will continue expanding its operations, with double-digit revenue growth of 12.5%-13.5% expected throughout 2026-2027. This growth is underpinned by solid volume increases in direct net sales, driven by geographic expansion into mature markets, a move we believe carries moderate execution risk. This trajectory is further bolstered by the significant expected contribution from Briumvi, as indicated by first-quarter 2026 results, where the segment generated more than EUR15 million in sales and turned EBITDA positive. As the group continues to absorb fixed costs, we project S&P Global Ratings-adjusted EBITDA margins to expand to 23.5%-24.0% in 2026. Furthermore, we forecast that previously elevated one-time costs will decline as litigation expenses subside and the Briumvi ramp-up continues. However, we maintain a conservative stance regarding nonrecurring costs to account for potential execution risks related to new launches or prospective acquisitions. "The stable outlook reflects our expectation of gradual improvement in Neuraxpharm's operating performance through 2028, with solid revenue growth stemming from all segments and, in particular, the fast-growing product Briumvi. In our view, this will drive progressive deleveraging despite negative FOCF. "We could take a negative action if we see increasing liquidity risk, for instance due to larger-than-expected negative FOCF or the capital structure becoming unsustainable, notably owing to elevated debt-financed discretionary spending that prevents deleveraging. "We could take a positive rating action if the company deleverages faster than expected, with debt to EBITDA lower than 7.0x, improved profitability, and FOCF increasing and staying positive, allowing the company to partly self-fund its external growth strategy." ===================== N E T H E R L A N D S ===================== UNIT4 GROUP: Moody's Withdraws 'B2' CFR Following Debt Repayment ---------------------------------------------------------------- Moody's Ratings has withdrawn all ratings of Unit4 Group Holding B.V. (Unit4 or the company), including the company's B2 long term corporate family rating, the B2-PD probability of default rating and the B2 instruments ratings on the senior secured term loan B and senior secured revolving credit facility. Prior to the withdrawal, the outlook was stable. RATINGS RATIONALE Moody's have withdrawn the ratings because the company's instruments previously rated by Moody's have been fully repaid. COMPANY PROFILE Unit4 is an enterprise resource planning (ERP) software and standalone financial management systems (FMS) vendor catering to midmarket companies with 1,000-10,000 employees and public sector organisations. Its products are focused on applications such as finance, procurement, projects, payroll and human resources (HR). Headquartered in the Netherlands, Unit4 operates in 25 countries and employs around 2,500 people. =========== S W E D E N =========== VITAL HOLDCO: S&P Assigns Preliminary 'B+' ICR, Outlook Stable -------------------------------------------------------------- S&P Global Ratings assigned its preliminary 'B+' issuer credit rating to Sweden-based Vital Holdco AB (Vitamin Well). S&P also assigned its preliminary 'B+' issue rating to its proposed SEK20,871 million term loan B (TLB) due in 2033, as well as a recovery rating of '3' to the new debt instrument, reflecting its expectation of meaningful recovery (50%-70%; rounded estimate 60%) in the event of default. S&P said, "The stable outlook reflects our view that the group will successfully integrate its acquisition of EMPWR and continue to demonstrate strong growth momentum. We expect that S&P Global Ratings-adjusted leverage will decrease below 5.0x and FOCF to debt will improve to 10% amid maintained adequate liquidity." Vitamin Well intends to issue a new EUR1.9 billion equivalent TLB and a new EUR200 million revolving credit facility (RCF). These new debt instruments will fund part of the planned acquisition of EMPWR and refinance the existing debt facilities. Vitamin Well benefits from a leading market position in its core brands in the rapidly growing nutritional beverage and snacking market. It also has a favorable product and channel mix that supports above-average profitability in the nutritional industry. Despite ongoing scale and diversification improvements, the company remains smaller than some global players and subject to substitution and competition risks. S&P said, "We forecast that pro forma adjusted debt leverage will peak at about 5.0x-5.5x in 2026 and then decrease to 4.0x-5.0x in 2027. FOCF to debt should be about 3% negative in 2026 due to high capital expenditure (capex) on expanding capacity, but should normalize at close to 10% in 2027 as capacity expansion projects are finalized. "In our view, Vitamin Well's leading market position is underpinned by its well-established brand portfolio, continual product innovation, and omnichannel distribution strategy." The group primarily sells protein bars, energy drinks, and "functional water" (water with nutritional supplements) across its three main brands: Barebells, NOCCO, and Vitamin Well. The group's leading market position and its ability to continually innovate, consistently delivering high-quality products with premium positioning and a superior nutritional profile, has established a solid track record of volume expansion, pricing flexibility, and superior profitability during inflationary periods. Moreover, the group's diversified and flexible distribution strategy allows it to scale rapidly and create brand awareness in new markets, while ensuring quality control and customer loyalty in its core markets. Vitamin Well is adequately diversified across regions, although it has some brand concentration and is smaller than large peers in the beverage and food sector. The company's operations are not concentrated in any individual country, but have more exposure to developed markets, providing stability to the company's operations. The company's revenue is mainly generated in North America (about 50%), the Nordic region (30%), and the rest of Europe (20%). However, its products are concentrated across a few well-known brands: Barebells, which mainly sells protein bars (accounting for about 68% of last 12-month (LTM) April 2026 sales); NOCCO, focused on energy drinks (16%); and Vitamin Well, specialized in functional water (13%). Although its scale is considerable versus rated peers in the nutritional sector, with expected annual average S&P Global Ratings-adjusted pro forma EBITDA of about EUR400 million in 2026 and 2027, the group remains relatively small compared with some global peers like Nestle and Mars. S&P said, "We believe Vitamin Well should continue to benefit from favorable tailwinds in the nutritional market, albeit subject to competition and substitution risk. We expect the nutritional and health industry to continue benefiting from strong growth momentum on the back of secular trends like growing awareness of healthy food alternatives and wellness, and growing demand for protein and energy products, especially in developed economies." However, Vitamin Well's addressable market remains fragmented with many small players and limited barriers to entry, which could attract bigger players from the broader beverage and food space. Moreover, the nutritional industry is exposed to evolving trends and consumer habits, leading to potential substitution risks. The planned acquisition of EMPWR enhances the group's manufacturing capabilities and reinforces its growth potential. S&P said, "In our view, Vitamin Well's planned acquisition of EMPRW should strengthen the group's positioning across the value chain, bringing the production of its protein bars in-house. Moreover, the acquisition supports the group's expansion plan by unlocking further production capacity through significant expansion capex. It may also yield synergies by eliminating duplicate resources and consolidating overhead costs. Nonetheless, the transaction carries integration risk, and expected benefits and synergies may not be fully realized or may cost more than expected to achieve. That said, we understand that the two entities will be run independently, maintaining the current management teams, which limits integration risks." S&P said, "We expect pro forma S&P Global Ratings-adjusted leverage will remain elevated above 5.0x in 2026 but decline rapidly thereafter on the back of significant earnings growth.We forecast that Vitamin Well's pro forma S&P Global Ratings-adjusted debt to EBITDA will be about 5.0x-5.5x in 2026, improving to about 4.0x-5.0x in 2027. This reflects our expectation of solid pro forma topline growth (including EMPWR) of about 15%-20% in 2026 and 15% in 2027, and EBITDA expansion to SEK4.0 billion-SEK4.2 billion in 2026. We expect EBITDA will rise further to SEK4.8 billion-SEK5.0 billion in 2027 on the back of capacity expansion, continual innovation, further market penetration, and industry tailwinds. "While 2026 pro forma FOCF will likely be constrained by one-off transaction costs and capacity expansion capex, we expect it will normalize and be strongly positive from 2027 onward.For 2026, we expect Vitamin Well's FOCF generation to remain negative at about SEK700 million-SEK800 million, constrained by the approximate SEK824 million transaction-related costs and SEK1.2 billion-SEK 1.3 billion in capex, mostly earmarked for EMPWR's capacity expansion. Our expectation of solid EBITDA growth, normalization of capital investments as the expansion projects are completed, and limited working capital needs to fund increased sales should support a rapid recovery in FOCF in 2027 to SEK2.0 billion-SEK2.2 billion. Additionally, the long-dated debt maturities and the SEK2,300 million (EUR200 million) undrawn committed RCF imply that the group is adequately funded, and we expect liquidity to remain adequate over the medium term. "The ratings on Vitamin Well will depend on our receipt and satisfactory review of all final documentation and the final terms of the senior secured TLB. If we do not receive the final documentation within a reasonable timeframe or if the final documentation and the final terms of the senior secured TLB are different from the materials and terms we have reviewed, we reserve the right to revise our assessment. Potential changes include, but are not limited to, the utilization of the proceeds, maturity, size and conditions of the facilities, financial and other covenants, security, and ranking. "The stable outlook reflects our view that the group will continue to build on its market positioning, well-known brand portfolio, capacity expansion plan, and positive industry tailwinds to significantly expand its earnings base. We consequently forecast that, over the next 12-24 months, the company will maintain an S&P Global Ratings-adjusted pro forma EBITDA margin of 25%-27%, leverage below 5.0x, and FOCF to debt approaching 10%. "We could lower the rating if the group does not perform according to our expectations, for example because of increasing competition, changing consumer demand, falling industry momentum, or a more aggressive financial policy leading to debt-financed distributions, acquisitions, or additional debt raised above the restricted group." Specifically, S&P could lower its rating if: -- S&P Global Ratings-adjusted FOCF deteriorates such that FOCF to debt approaches 5%; or -- S&P Global Ratings-adjusted debt to EBITDA approaches 6.0x. S&P could raise the ratings if the company sustains strong operational momentum. This would require adjusted debt to EBITDA to stay structurally well below 5x while maintaining FOCF to debt above 10%, with a supportive financial policy and increasing certainty around the potential timing of Vitamin Well's IPO, as well as around the amount of proceeds it could generate and use for debt repayment. =========== T U R K E Y =========== LIMAK CIMENTO: Moody's Affirms 'B2' CFR, Outlook Remains Stable --------------------------------------------------------------- Moody's Ratings has affirmed Limak Cimento Sanayi ve Ticaret A.S.'s (Limak Cement or the company) B2 long-term corporate family rating and B2-PD probability of default rating. Concurrently, Moody's also affirmed the B2 instrument rating of the senior unsecured notes. The outlook remains stable. RATINGS RATIONALE The rating action reflects Limak Cement's established market position as the second-largest cement producer in Turkiye, supported by a long operating track record and a diversified production footprint comprising nine cement plants in Turkiye, together with ready-mix concrete (RMC) operations and international assets in Africa. The rating also reflects the company's strong competitive position in the domestic cement market, which continues to benefit from earthquake reconstruction projects, urban transformation initiatives and infrastructure investments. While domestic cement demand normalized in early 2026 following exceptionally strong conditions in 2025, Moody's expects market fundamentals to remain supportive over the medium term, supported by favorable demographic trends, ongoing construction activity and export opportunities in neighboring markets, particularly Syria. Furthermore, the growth of the RMC business strengthens the company's market presence and supports cement sales volumes across its operating regions. The affirmation further reflects Limak Cement's resilient operating performance and ability to maintain solid profitability through market cycles. In 2025, revenue increased to approximately $903 million from $812 million a year before, supported by strong cement pricing and volumes. However, EBITDA decreased to $251 million from $294 million a year before. Profitability moderated to 28% EBITDA margin (company adjusted basis) in 2025 from 36% in 2024 because of higher volumes in 2024, a larger contribution of the RMC business in 2025, higher clinker procurement costs and inflation-driven labor expenses. Nevertheless, the company continued to generate positive free cash flow (FCF) generation during the last three years, although Moody's expects FCF to be negative in 2026 due to high decarbonization capital expenditures. Additionally, Moody's expects profitability to remain under pressure due to increasing energy and labor costs in Turkiye, despite above historical average cement prices. Limak Cement's rating is also supported by its solid liquidity profile and balanced financial position. As of May 2026, the company held approximately $241 million of cash, providing substantial financial flexibility to fund its planned decarbonization investments and absorb temporary market volatility. Moody's expects Limak Cement to generate operating cash flow of around $80 million in each 2026 and 2027. Together with cash balances, this will cover around $80 million — $100 million of Moody's-estimated yearly capital expenditure. Limak Cement's next large debt maturity is in 2029. Nevertheless, Moody's considers that large, bullet capital structures, such as Limak Cement's $790 million notes, carry elevated risk because while current market conditions have encouraged issuers to lock in lower-cost debt on favorable terms, there is limited visibility on conditions at maturity. This could result in refinancing challenges should interest rates rise, the company's operating performance weaken or access to the debt capital markets become limited. Moody's expects credit metrics to remain consistent with the current rating level over the next 12-18 months, with Moody's-adjusted gross debt/EBITDA remaining around 4.0x and interest coverage (measured as Moody's adjusted EBIT to interest expense) close to 2.0x despite higher fuel costs and elevated capital spending. Liquidity benefits from the absence of significant debt maturities until 2029, continued operating cash flow generation and the company's demonstrated ability to maintain positive free cash flow through favorable market conditions. Limak Cement's B2 CFR continues to reflect (1) a healthy market position in the Turkish cement industry; (2) cost-effective operations and elevated margins compared to local peers as the company benefits from economies of scale; (3) barriers to entry due to relatively high capital investment requirements and close relations with key customers; and (4) favourable long-term demand dynamics in Turkiye underpinned by positive societal trends and growth in the construction industry. The ratings also reflect (1) the relatively small scale of cement production when compared to global peers; (2) high cyclicality of the business which is inherent to the construction industry; (3) the competitive nature of Limak Cement's domestic business combined with volatile coal and cement prices; (4) negative free cash flow before 2023 when cement prices were subdued; and (5) its product and geographical concentration which significantly exposes the company to the domestic operating environment. Limak Cement has a track record of debt add-ons, including the $100 million add-on in December 2025. Furthermore, during 2025, Limak up streamed c.$56 million (TRY2,447.9 million) to its parent company Limak Holding A.S. as long-term funds provided to shareholders, bearing interest at an annual rate of 4.60%. Given these developments, Moody's have revised down the Financial Strategy and Risk Management risk factor to 4 from 3, the Governance Issuer Profile Score (IPS) to G-4 from G-3, and the Credit Impact Score (CIS) to CIS-4 from CIS-3. Nevertheless, Moody's considers that the rating remains solidly positioned in the B2 rating category. RATING OUTLOOK The stable outlook reflects Moody's expectations that Limak Cement will maintain a stable operating performance with positive FCF generation while it benefits from a supportive Turkish cement industry and maintains stable credit metrics over the next 12-18 months. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Positive pressure on the ratings could arise if the company's Moody's-adjusted gross debt/EBITDA remains sustainably below 3.5x; Moody's-adjusted EBIT/interest is higher than 2.5x; and the company maintains positive Moody's-adjusted FCF with FCF/debt in the mid-to-high single-digit range in percentage terms. An upgrade would also require a longer track record of stable operating performance and the company displaying a commitment to maintaining an adequate liquidity position at all times. Downward rating pressure could arise if there are signs of a deterioration in liquidity, Moody's-adjusted gross debt/EBITDA increases sustainably above 5x for a sustained period, Moody's-adjusted EBIT/interest falls below 1.5x on a sustained basis or Moody's-adjusted FCF turns negative. CORPORATE PROFILE Limak Cement is the second largest cement producer in Turkiye with 17 million tons of cement production capacity in Turkiye and Africa and 10 million tons of clinker production capacity. It was founded in 2000 and operates 11 cement factories, 9 of which are in Turkiye and 41 ready-mix concrete plants across Turkiye, Ivory Coast and Mozambique. In 2025, the company generated $903 million in revenue and $251 million in company adjusted EBITDA. Limak Cement is ultimately fully owned by Limak Holding, a Turkish conglomerate specialized in construction, energy, cement, and tourism. In early 2024, Limak Cement completed the public listing of Limak Dogu Anadolu Cement (Limak Dogu), a subsidiary with two integrated factory facilities in Turkiye. The company still retains 73% of the shares and it is fully consolidated under Limak Cement. Limak Dogu's listing was Limak Cement's first interaction with either the bond or equity markets. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Building Materials published in September 2025. Limak's CFR of B2 is two notches below the scorecard indicated outcome of Ba3 on a forward looking basis, which reflects the cyclical nature of the company's business, its limited scale, single ownership considerations and high geographic concentration in Turkiye. =========================== U N I T E D K I N G D O M =========================== HAZEL RESIDENTIAL: S&P Lowers CL. F-Dfrd Notes Rating to 'B- (sf)' ------------------------------------------------------------------ S&P Global Ratings lowered its credit ratings on Hazel Residential PLC's class D-Dfrd notes to 'BBB- (sf)' from 'BBB (sf)', class E-Dfrd notes to 'B+ (sf)' from 'BB+ (sf)', and class F-Dfrd notes to 'B- (sf)' from 'B (sf)'. At the same time, S&P affirmed its 'AAA (sf)' rating on the class A notes, 'AA (sf)' rating on the class B-Dfrd notes, and 'A (sf)' rating on the class C-Dfrd notes. The rating actions reflect S&P's full analysis of the most recent transaction information and the transaction's current structural features. The performance of the loans in the collateral pool has markedly deteriorated since closing in March 2025. S&P said, "Based on our calculation methodology, total arrears increased to 28.5% in February 2026, of which 16.8% is in 90+ days arrears, as compared with 19.6% total arrears and 90+ days arrears of 8.6% in November 2024. The reduction in the pool size due to redemptions or repurchases explains part of the rise in the arrears rate (the denominator effect). Cumulative losses remain relatively stable at 0.14%. The three-month prepayment rate is also stable, hovering at about 4.5%. We contacted the servicer about the level of prepayment and rationale for the repurchases." Credit enhancement has increased significantly for the senior classes of notes since closing. Credit enhancement for the class A notes rose to 22.5% from 12.7% due to the large prepayments mentioned above. The overall effect in S&P's credit analysis resulted in an increase in the weighted-average foreclosure frequency (WAFF) at all rating levels, primarily due to a higher arrears adjustment (including severe arrears adjustment). The transaction credit results benefit from lower anchor default probabilities and a lower loan-to-value ratio adjustment after applying our updated sector and industry variables. These factors have not been offset by the marked increase in arrears. S&P's weighted-average loss severities (WALS) have decreased, primarily driven by its lower overvaluation assessment for London and the South East. Credit analysis results Rating level WAFF (%) WALS (%) Credit coverage (%) AAA 39.29 23.71 9.31 AA 33.06 19.79 6.54 A 26.74 14.41 3.85 BBB 22.27 11.20 2.49 BB 17.32 8.63 1.50 B 16.14 6.21 1.00 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. Both the liquidity reserve and general reserve funds are at their target level. Excess spread has significantly reduced from closing and is now negative based on our calculation, which factors stressed servicing fees, creating some potential liquidity stresses. The pool factor fell to 52.1% due to cumulative redemptions and repurchases. S&P said, "We affirmed our rating on the class A notes because our credit and cash flow results indicate that its available credit enhancement remains commensurate with the assigned rating. "Although the class B-Dfrd and C-Dfrd notes passed cash flow stresses at higher rating levels than those assigned, we considered the deferrable nature of the notes, the relative levels of credit enhancement and subordination, the sensitivity to higher arrears, and a longer recovery period. We therefore affirmed our ratings on these classes of notes. "While the cash flow results of the class D-Dfrd and E-Dfrd notes are commensurate with lower ratings, we take comfort from the fact that the liquidity reserve and general reserve fund are both undrawn, and that the rise in arrears is partially due to the rapid amortization of the notes (we accounted for this by applying a loan-level originator adjustment). "We lowered to 'B- (sf)' our rating on the class F-Dfrd notes as this class of notes does not achieve a rating in our standard cash flow run but only in our steady state scenario. The notes do not rely on favorable economic or financial conditions to repay their interest and principal, as set out in our 'CCC' criteria. "Counterparty risk does not constrain the ratings as we consider the transaction to be in line with our counterparty criteria." Macroeconomic forecasts and forward-looking analysis S&P said, "We expect U.K. inflation to remain above the Bank of England's 2% target in 2026, and we forecast a 2.6% year-on-year change in house prices in the fourth quarter of 2026. Given our current macroeconomic forecasts and forward-looking view of the U.K. residential mortgage market, we performed additional sensitivities relating to higher default levels due to increased arrears and extended recovery timings. The sensitivity analysis results indicate a deterioration consistent with our credit stability considerations in our rating definitions." The transaction is backed by a pool of first-lien, owner-occupied, and buy-to-let mortgage loans secured on properties in England, Scotland, and Wales. The originator is Santander UK PLC. WISE PLC 2006-1: Moody's Hikes Rating on GBP11.25MM C Notes to B2 ----------------------------------------------------------------- Moody's Ratings has upgraded the ratings on the following notes issued by WISE 2006-1 PLC: GBP30M Class A Credit-Linked Notes due 2058, Upgraded to A2 (sf); previously on Jan 29, 2024 Affirmed A3 (sf) GBP22.5M Class B Credit-Linked Notes due 2058, Upgraded to Ba1 (sf); previously on Jan 29, 2024 Affirmed Ba2 (sf) GBP11.25M Class C Credit-Linked Notes due 2058, Upgraded to B2 (sf); previously on Jan 29, 2024 Affirmed Caa1 (sf) Moody's have also affirmed the rating on the following Super Senior Credit Default Swap: Dexia Credit Local - Super Senior Credit Default Swap WISE 2006-1 PLC GBP1436.25M (Current outstanding amount GBP817.93M) Super Senior Swap Notes, Affirmed Aa1 (sf); previously on Jan 29, 2024 Upgraded to Aa1 (sf) WISE 2006-1 PLC is a partially-funded synthetic securitisation, with an underlying portfolio consisting of GBP denominated PFI and regulated utility bonds located in the UK, each guaranteed by one of three (originally seven) monolines. RATINGS RATIONALE The rating upgrades on the notes are primarily a result of the deleveraging of the Super Senior Credit Default Swap following amortisation of the underlying portfolio since the last rating action in January 2024 and a shorter portfolio weighted average life which reduces the time the rated notes are exposed to the credit risk of the underlying portfolio. The affirmation on the rating on the Super Senior Credit Default Swap is primarily a result of the expected losses on the notes remaining consistent with their current rating levels, after taking into account the latest underlying reference portfolio, and its relevant structural features. According to the Quarterly Investor Report dated April 2026[1], the Super Senior Credit Default Swap has paid down by approximately GBP68.6 million (4.6%) since the last rating action in January 2024 and GBP618.3 million (41.2%) since closing. Methodology Underlying the Rating Action: The principal methodology used in these ratings was "Project Finance and Infrastructure Asset CLOs" published in July 2024. 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. In particular, an upgrade or downgrade to the Insurance Financial Strength rating of one or more of the wrappers could result in an upgrade or downgrade to the ratings of the notes. Other sources of uncertainty that may impact notes performance include limitations of historical data for some of the project finance asset types, long maturities of the underlying obligations. Additionally, this transaction is subject to a high level of macroeconomic uncertainty, which could negatively affect the ratings on the notes. Additional uncertainty about performance is due to the following: -- Weighted average life: The notes' ratings are sensitive to the weighted average life assumption of the portfolio. Moody's have assumed the average life of the bonds as reported, however legal final maturity could be up to 32 years. 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. ********* 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 * * *