260727.mbx

260727.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 Monday, July 27, 2026, Vol. 27, No. 148 Headlines B E L G I U M MANUCHAR GROUP: Fitch Affirms 'B' Long-Term IDR, Outlook Stable F R A N C E FCT YOUNI 2026-1: Moody's Assigns Ba3 Rating to EUR10.6MM E Notes HESTIAFLOOR 2: Fitch Affirms 'B+' Long-Term IDR, Outlook Stable I R E L A N D 1988 ASSET MGMT: Fitch Assigns 'B-sf' Final Rating to Class F Notes ANCHORAGE CAPITAL 3: Fitch Assigns 'B-sf' Rating to Class F-R Notes ARCANO EURO IV: Fitch Assigns 'B-sf' Final Rating to Class F Notes AVOCA CAPITAL XIII: Fitch Affirms 'Bsf' Rating on Class F-RR Notes BILBAO CLO IV: Fitch Affirms 'B-sf' Rating on Class E Notes CAPITAL FOUR III: Fitch Assigns B-sf Final Rating to Cl. F-R Notes ELMWOOD EUROPEAN 2: Fitch Assigns 'B-sf' Rating on Class F Notes HOXTON CONSUMER 2026-1: S&P Assigns BB+(sf) Rating to E-Dfrd Notes JUBILEE 2022-XXVI: Fitch Alters Outlook on B-sf Rating to Negative MADISON PARK XI: Fitch Assigns 'B-sf' Final Rating to Cl. F-R Notes PENTA CLO 18: Fitch Assigns 'B-sf' Rating to Class F-R Notes PRIORITY 1: Teneo Restructuring Appointed as Joint Liquidators SOUND POINT 17: Fitch Assigns 'B-sf' Final Rating to Class F Notes ST. PAUL XI: Fitch Alters Outlook on 'B-sf' Rating to Negative I T A L Y EFESTO BIDCO: Fitch Affirms 'B' Long-Term IDR, Outlook Negative FERRARINI SPA: Potential Buyers Must File Offers by Sept. 30 MARINAGRI: October 16 Sale Scheduled for Business Units L U X E M B O U R G ALFA ASSET: Creditors Must File Claims by October 30 VENGA FINANCE: Moody's Rates New Amended Sr. Secured Term Loans B2 N E T H E R L A N D S AMMEGA GROUP: Fitch Lowers Long-Term IDR to 'CCC+' DOMI 2022-1: Moody's Ups Rating on EUR5MM Class E Notes to B1 NORMEC 1 BV: Moody's Lowers CFR to B3, Alters Outlook to Stable VECHT RESIDENTIAL 2023-1: Moody's Ups Rating on D Notes from Ba2 P O R T U G A L OHI GROUP: S&P Affirms 'B' Long-Term ICR, Outlook Remains Stable R U S S I A REGIONAL ELECTRICAL: Fitch Affirms 'BB' IDR, Outlook Positive UZBEK METALLURGICAL: Fitch Lowers LT IDR to 'B', Outlook Positive UZBEKISTAN AIRPORTS: Fitch Alters Outlook on 'BB' IDR to Positive S P A I N SANTANDER CONSUMO 11: Moody's Gives Ba3 Rating to EUR90MM E Notes S W E D E N RECIPHARM HOLDING: Fitch Assigns 'B(EXP)' IDR, Outlook Stable T U R K E Y EREGLI DEMIR: Moody's Affirms 'B2' CFR, Alters Outlook to Positive TURKIYE: Fitch Affirms 'BB-' Long-Term IDR, Outlook Stable ZORLU ENERJI: Moody's Affirms 'B3' CFR, Alters Outlook to Negative U N I T E D K I N G D O M CCOS (UK): Leonard Curtis Appointed as Joint Administrators DAMASK CATERING: Begbies Traynor Appointed as Administrators E5 LIVING (GRIMSBY): FRP Advisory Appointed as Administrators ELDENS FINANCE: Antony Batty Appointed as Administrators JOHN LEWIS OF HUNGERFORD: BK Plus Appointed as Joint Administrators LINKIT RECRUITMENT: Conselia Limited Appointed as Administrator NEWDAY FUNDING 2023-1: Fitch Ups Rating on Class F Notes to 'BB+sf' NORTHAMPTOMSHIRE INDEPENDENT: FRP Advisory Tapped as Administrators OGI FUELS: Cowgills Limited Appointed as Joint Administrators PATTERSONS (BRISTOL): Grant Thornton Appointed as Administrators PEDAL REVOLUTION: Creditors' Meeting Set for July 28 ST. GERARD'S SCHOOL: FRP Advisory Appointed as Administrators STRATTON MORTGAGE 2024-1: S&P Affirms 'BB' Rating on E-Dfrd Notes STRATTON MORTGAGE 2024-2: S&P Affirms 'BB' Rating on E-Dfrd Notes TARAK INTERNATIONAL: Creditors' Meeting Held July 23 TOGETHER ASSET 2026-1ST2: S&P Assigns 'B-' Rating to X2-Dfrd Notes VICTORIA PLC: 90% 2028 SSNs Holders Support Refinancing Transaction - - - - - ============= B E L G I U M ============= MANUCHAR GROUP: Fitch Affirms 'B' Long-Term IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed Manuchar Group B.V.'s Long-Term Issuer Default Rating (IDR) at 'B' with a Stable Outlook. Fitch has also affirmed Manuchar's senior secured rating at 'B'. The Recovery Rating is 'RR4'. The IDR reflects Manuchar's high leverage, small scale and emerging-market exposure, balanced by an asset-light model, leading market positions and resilient margins. EBITDA gross leverage worsened to 7.4x at end-2025, from 6.4x at end-2024, driven by higher debt following the July 2025 refinancing rather than operating deterioration. The Stable Outlook reflects its expectation that EBITDA gross leverage will fall below 5.5x from 2028 on EBITDA growth, alongside positive free cash flow (FCF) generation. Key Rating Drivers Worsening but Temporary Leverage: Manuchar's EBITDA gross leverage rose to 7.4x at end-2025, from 6.4x at end-2024, driven by higher total debt of USD671 million following the July 2025 refinancing, alongside slower-than-expected EBITDA growth. Fitch expects EBITDA gross leverage to fall to 5.7x in 2026 and 5.6x in 2027, before declining further to 5.4x in 2028 and towards 4.8x by 2030, supported by improving earnings as the company enhances its product mix and benefits from acquisition contributions, as well as by positive FCF that reduces the use of short-term debt. The marginal and temporary breach of the 5.5x negative sensitivity in 2026 and 2027 does not represent a sustained breach, in its view. Emerging Market Exposure: Manuchar operates a global high-growth-market platform, with Latin America its largest region and Brazil generating around 33% of EBITDA in 2025. It also has a meaningful presence in EMEA, with a local presence in over 40 countries and sales in more than 125 countries. It handles complex distribution, supports customer retention and maintains proximity to end-users through its warehouse infrastructure. Revenue grew 18.2% to USD1,428 million in 2025 on volume growth, favourable mix and the Proquiel Quimicos acquisition, although these markets entail demand sensitivity to inflation and longer payment collection. No M&A Headroom: Manuchar's strategy is to grow organically, complemented by opportunistic acquisitions, having completed several deals over the past three years. Fitch has not assumed new acquisitions in its rating case. With EBITDA gross leverage at 7.4x at end-2025 and forecast above the 5.5x negative sensitivity until 2028, there is no headroom to absorb debt-funded M&A without breaching the sensitivity. Any material acquisition before deleveraging is established would be difficult to accommodate at the current rating, unless funded neutrally or supported by outperformance. Asset-Light Business: Manuchar operates an asset-light model, with maintenance capex estimated at 0.3% of sales. Its non-current assets mostly comprise 676,000 sqm of warehousing, offices and a few port operations across more than 180 locations. The shipment of goods is outsourced, with around 90% of maritime shipping volumes processed as break-bulk shipping to reduce costs compared with container shipping. This supports its margin stability and structurally positive FCF generation. Heavy Working Capital: As a distributor, Manuchar holds material inventories and handles large volumes. In addition, part of its business is sourcing and arranging maritime shipping of goods to destinations, which requires financing to cover the transit time. Manuchar uses different types of transactional lines secured by credit-insurance or high-quality receivables, factoring facilities and letters of credit. Fitch expects these lines to be rolled over in the normal course of business, despite their short-term nature, as the exposure is backed up by assets, receivables and/or insurance. FX Exposure Mitigated: The US dollar is Manuchar's functional currency. About 80% of its operating income is realised in US dollars or euros hedged into dollars, and about 75% of inventory and receivables are either denominated in US dollars or priced in local currency but pegged to the dollar. The remaining 25% is hedged through options, forward contracts, or the use of local-currency lines. Manuchar is raising debt in euros, but Fitch expects the company to economically convert most of the funding into US dollars through swaps or hedges to match the currency exposure of the debt to its earnings stream. Peer Analysis Manuchar's closest Fitch-rated peer is Windsor Holdings III, LLC (Univar; B+/Stable). They are both chemical distributors with asset-light business models and resilient market stability. Fitch sees both companies' business profile and offering as similar, although Univar, as the world's second-largest chemical distributor, has greater scale and broader diversification than Manuchar. Univar's larger size, operational reach, and more extensive geographic presence give it a stronger ability to manage logistical complexities and counterparty risks than Manuchar. EVOCA S.p.A. (B-/Negative) is a manufacturer and distributor specialising in professional coffee and vending machines, with a strong presence in Europe. EVOCA's scale is comparable with Manuchar's, and both companies benefit from well-diversified customer bases. EVOCA has higher EBITDA margins than Manuchar and a higher leverage profile, with EVOCA's EBITDA leverage of 8.2x at end-2025, trending to 6.9x by end-2029. Flender International GmbH (B+/Stable) is a leading global supplier of gear units, couplings, and generators, mainly serving the wind power industry (about 57% of revenue in FY24). Unlike Manuchar's more diversified customer base, Flender's business is concentrated on major wind original equipment manufacturers due to the nature of the industry. Fitch forecasts Flender's EBITDA leverage to fall below 5.0x in 2026, compared with Manuchar's 5.7x. Fitch’s Key Rating-Case Assumptions - Revenue to grow by 11% in 2026, followed by average growth of 4.5% to 2030 - EBITDA margin of 7.3% in 2026, easing to around 6.9%-7.0% across 2027-2030 - Capex at an average of 1.2% of revenue across 2026-2030 - Working capital at around 25%-26% of revenues across 2026-2030 - No dividends to 2030-No acquisitions to 2030 (apart from the already announced 2026 acquisition) 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 ('b+', Moderate), market and competitive positioning ('b+', Lower), diversification and asset quality ('bb-', Moderate), company operational characteristics ('b', Moderate), profitability ('b+', Moderate), financial structure ('b-', Higher), and financial flexibility ('b', Higher). The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the historical year 2025, 20% for the forecast year 2026, 20% for the forecast year 2027, 20% for the forecast year 2028 and 20% for the forecast year 2029. B+ to CC considerations apply in its analysis and has no impact. The governance assessment of 'some deficiencies' has no impact. The operating environment assessment of 'bb' 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 Manuchar would be reorganised as a going concern (GC) in bankruptcy rather than liquidated. Its GC EBITDA estimate reflects Fitch's view of a sustainable EBITDA level after reorganisation, on which Fitch based its enterprise valuation. Fitch used a GC EBITDA of USD85 million, reflecting a fall in volumes in Manuchar's key geographies due to weak economic activity and high inflation. Fitch applied a multiple of 5.0x to GC EBITDA to estimate Manuchar's enterprise valuation, based on its global presence in emerging markets, long expertise in chemical distribution in challenging geographies and vast warehouse network. Fitch assumed that Manuchar's use of factoring would be substituted by super senior debt in the event of financial distress, which is deducted from the value available to calculate recoveries. Fitch also assumed that transactional lines would rank super senior as they are collateralised by receivables or inventories, and that the outstanding amount would reduce in a downturn Fitch assumed Manuchar's super senior revolving credit facility to be fully drawn and to rank senior in recoveries to the senior secured notes. After deducting 10% for administrative claims, its analysis resulted in a waterfall-generated recovery computation for the senior secured instruments in the 'RR4' band, indicating a final 'B' instrument rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA gross leverage above 5.5x on a sustained basis - EBITDA interest coverage consistently below 2x - EBITDA margin consistently below 7% - Volatile or negative FCF margin on a sustained basis - Aggressive M&A leading to recurring leverage, exhausting rating headroom Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - EBITDA gross leverage below 4.5x on a sustained basis - Improvement in geographical and end markets diversification, leading to increased earnings stability Liquidity and Debt Structure Manuchar's liquidity is satisfactory. At end-March 2026, it had USD64 million in cash and equivalents, in addition to an undrawn USD90 million super senior revolving credit facility maturing January 2032. Working capital is also funded by transactional credit lines, factoring and letters of credit. Long-term debt mainly consists of EUR425 million floating rate notes due 2032. Issuer Profile Manuchar is a Belgium-based chemicals and commodities distributor, offering supply chain and logistics solutions globally. 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 Manuchar. 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 ----------- ------ -------- ----- Manuchar Group B.V. LT IDR B Affirmed B senior secured LT B Affirmed RR4 B =========== F R A N C E =========== FCT YOUNI 2026-1: Moody's Assigns Ba3 Rating to EUR10.6MM E Notes ----------------------------------------------------------------- Moody's Ratings has assigned the following definitive ratings to Notes issued by FCT YOUNI FRANCE 2026-1: EUR157.8M Class A Asset Backed Floating Rate Notes due July 2043, Definitive Rating Assigned Aaa (sf) EUR10.7M Class B Asset Backed Floating Rate Notes due July 2043, Definitive Rating Assigned Aa2 (sf) EUR10.6M Class C Asset Backed Floating Rate Notes due July 2043, Definitive Rating Assigned A2 (sf) EUR10.6M Class D Asset Backed Floating Rate Notes due July 2043, Definitive Rating Assigned Baa2 (sf) EUR10.6M Class E Asset Backed Floating Rate Notes due July 2043, Definitive Rating Assigned Ba3 (sf) EUR2.6M Class X Asset Backed Floating Rate Notes due July 2043, Definitive Rating Assigned A2 (sf) Moody's have not assigned a rating to the EUR2.1M 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. The securitized portfolio of EUR202.4 million is mainly selected from the preliminary portfolio (pool-cut date May 12, 2026) with similar characteristics. The securitized portfolio has only performing, amortizing loans with a fixed interest rate and 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) an unrated servicer 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 higher 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 higher 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 36.9%. 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. HESTIAFLOOR 2: Fitch Affirms 'B+' Long-Term IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed Hestiafloor 2's (Gerflor) Long-Term Issuer Default Rating (IDR) at 'B+'. The Outlook is Stable. Fitch has also affirmed the group's senior secured debt rating at 'BB-' with 'RR3' Recovery Rating. The IDR reflects Gerflor's high but improving leverage, balanced against sound profitability and a leading position in the niche resilient flooring market. Its credit metrics are adequate, which Fitch expects to remain well within their rating sensitivities. Its focus on resilient renovation markets, strong geographic and end-market diversification, including limited exposure to the more pressured residential and office end-markets, supports its profitability. Consistently positive free cash flow (FCF) generation will continue to fund its active bolt-on M&A strategy. Key Rating Drivers Improving Leverage: Fitch expects Gerflor's EBITDA leverage to remain adequate for its rating and to further decline to about 4.9x at end-2026, mainly driven by incremental profitability from bolt-on acquisitions. Fitch expects further gradual deleveraging to 4.3x at end-2029, on the back of revenue growth and continued solid EBITDA margins. Fitch forecasts that positive FCF will be mainly used to finance bolt-on M&A. Gerflor's EBITDA leverage declined slightly to about 5.2x at end-2025 from 5.3x at end-2024 and was below its previous forecast of 5.4x, due to higher-than-expected EBITDA generation. Sound EBITDA Growth: Fitch forecasts mid-single digit annual revenue growth in 2026-2029, mainly supported by ongoing bolt-on M&A and modest organic revenue growth. Fitch expects continued sound EBITDA margin of about 13.8%-14% in 2026-2029 (13.8% in 2025), driven by the group's solid end-market and geographic diversification and focus on more resilient renovation end-markets (about 80% of revenue). Gerflor's Fitch-defined EBITDA margin increased to 13.8% in 2025 from 13.5% in 2024, above Fitch's previous forecast of 13.4%. Operating margin was mainly supported by modest organic sales growth, a positive product mix and plant productivity, which continued to support profitability in 1Q26. Positive FCF: Fitch forecasts FCF margin of about 2% in 2026-2029, as continued solid operating profitability is partly offset by high interest costs, steady capex (3%-3.5% of revenue) and working-capital investments (0.5%-1% of revenue) required to support Gerflor's revenue growth. In January 2026, the group completed debt repricing, which reduced its term loan B (TLB) margin by 75bp. Solid Business Profile: Gerflor's business profile is supported by strong positions in several flooring products across geographic regions and end-markets. Its contract division is driven by renovation flooring, which is less cyclical than new builds and accounts for 75%-80% of revenue, with exposure to stable commercial end-markets such as education, healthcare and transport. Continued Acquisitive Strategy: Fitch expects Gerflor to continue its M&A-driven growth strategy and assume total new net acquisitions of EUR50 million annually over 2026-2029. Fitch expects acquisitions to be moderate in size and to be mainly financed by internally generated cash flows. The group has a successful integration record and policy of acquiring companies with a clear strategic fit at sound valuation multiples. Nevertheless, the M&A pipeline, deal parameters and post-merger integration remain important rating drivers. Peer Analysis Gerflor has a leading market position in its resilient niche flooring segment and is larger than building product peers such as Terreal Holding SAS or PCF GmbH (CCC), and similar in size to Victoria PLC (CCC/RWN). It is much smaller than Mohawk Industries, Inc. (BBB+/Stable) and slightly smaller than Tarkett Participation (B+/Positive). Gerflor has better geographical diversification than Victoria, although both have a fairly high exposure to Europe. Tarkett is more geographically diversified. Like most building-product companies, Gerflor has limited product differentiation but has developed innovative product solutions, enabling it to cater to a wide range of end-customers. Gerflor's distribution channels result in a strong exposure to renovation or refurbishment construction activities similar to that of Tarkett. Gerflor's EBITDA margin (about 14% in 2025) is stronger than that of Tarkett (7%-8%), Victoria (7%-10%) and PCF (6%-10%). Fitch sees Gerflor's leverage profile (expected EBITDA leverage of 4.9x-4.7x at end-2026-2027) as slightly weaker than Tarkett's 4.6x-4.3x over the same period. Fitch’s Key Rating-Case Assumptions - Mid-single digit revenue growth in 2026-2029 - Broadly stable EBITDA margin at 13.8%-14% in 2026-2029 - Capex at 3.1% of revenue in 2026 and 3.5% in 2027-2029 - Bolt-on M&A of about EUR50 million a year in 2026-2029 - Limited dividend payout 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', Moderate), sector characteristics ('bb+', Moderate), market and competitive positioning ('bb', Moderate), diversification and asset quality ('bb+', Moderate), company operational characteristics ('bb', Lower), profitability ('bbb', Moderate), financial structure ('b', 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 'a+' has no impact. The SCP is 'b+'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'B+'. Recovery Analysis The recovery analysis assumes that Gerflor would be reorganised as a going concern in bankruptcy rather than liquidated. Fitch assumes a 10% administrative claim. Its factoring line and other credit facilities rank super senior. Its GC EBITDA estimate of EUR160 million is up from EUR150 million in the previous calculation, reflecting the structural impact of recent bolt-on acquisitions. The GC EBITDA reflects its view of a sustainable, post-reorganisation EBITDA on which Fitch bases the enterprise valuation. The GC EBITDA reflects intense market competition and a failure to broadly pass on raw-material cost inflation, together with an inability to extract acquisition synergies. Fitch uses an enterprise value multiple of 5.5x to calculate a post-reorganisation valuation. This reflects Gerflor's leading position in its niche markets (such as sport and transport), long-term relationship with blue-chip clients and a loyal customer base due to its direct distribution channel. Its waterfall analysis generates a ranked recovery for the senior secured debt (EUR950 million TLB and EUR210 million revolving credit facility) in the 'RR3' category, leading to a 'BB-' rating for the secured debt. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA gross leverage above 5.5x - EBITDA interest coverage below 3.0x - Neutral to negative FCF margins Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A conservative financial policy with EBITDA gross leverage below 4.0x - FCF margins above 3% on a sustained basis - Greater diversification across segments or geographies Liquidity and Debt Structure At end-March 2026, Gerflor had about EUR75 million Fitch-adjusted cash balance (excluding about EUR15 million restricted for intra-year working capital swings) and access to a EUR210 million revolving credit facility due 2029. Fitch expects positive FCF in 2026-2029 to be used for ongoing bolt-on acquisitions. The group's debt structure is dominated by its EUR950 million TLB due 2030. Issuer Profile France-based Gerflor specialises in resilient flooring (vinyl and linoleum), and walls and finishes solutions primarily sold to commercial customers. Operations are primarily in Europe, with some in the Americas and Asia Pacific. 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 Gerflor 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 ----------- ------ -------- ----- Hestiafloor 2 LT IDR B+ Affirmed B+ senior secured LT BB- Affirmed RR3 BB- ============= I R E L A N D ============= 1988 ASSET MGMT: Fitch Assigns 'B-sf' Final Rating to Class F Notes ------------------------------------------------------------------- Fitch Ratings has assigned 1988 Asset MGMT Euro CLO 1 DAC notes final ratings, as detailed below. Entity/Debt Rating ----------- ------ 1988 Asset MGMT Euro CLO 1 DAC A XS3382800681 LT AAAsf New Rating A-1 Loan LT AAAsf New Rating A-2 Loan LT AAAsf New Rating B XS3382800848 LT AAsf New Rating C XS3382801069 LT Asf New Rating D XS3382801226 LT BBB-sf New Rating E XS3382801655 LT BB-sf New Rating F XS3382801812 LT B-sf New Rating Subordinated Notes XS3382802034 LT NRsf New Rating Transaction Summary 1988 Asset MGMT Euro CLO 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. The transaction has a target par of EUR400 million. The portfolio is actively managed by 1988 CLO LP. The CLO has a reinvestment period of about 4.5 years and an 8.5-year weighted average life (WAL) test at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B+'/'B'. The Fitch weighted average rating factor of the identified portfolio is 21.9. 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 weighted average recovery rate of the identified portfolio is 65.2%. Diversified Asset Portfolio (Positive): The transaction includes two matrices that are effective at closing, corresponding to an 8.5-year WAL and two different fixed-rate asset limits of 5% and 12.5%. The transaction includes a set of forward matrices corresponding to the same fixed-rate asset limits but a 7.5-year WAL, which can be selected from 12 months after closing, subject to the aggregate collateral balance (with defaulted obligations treated at collateral value) being equal to or exceeding the reinvestment target par, as well as a rating agency confirmation. The transaction also has various concentration limits, including a top 10 obligor concentration limit of 20% and a maximum exposure to the three-largest Fitch-defined industries of 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has a 4.5-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 for the transaction's Fitch-stressed portfolio analysis and matrices 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, which include passing the coverage tests and the Fitch 'CCC' bucket limitation test as well as 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) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no impact on the class A notes, A-1 loan, A-2 loan, and the class B to E notes, but would result in the class F notes being downgraded to below 'B-sf'. Downgrades, which are based on the identified portfolio may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of defaults and portfolio deterioration. The class B notes have a rating cushion of two notches, the C and D notes have a cushion of four notches each, the class E notes have five notches and the class F notes have three notches, due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. The class A notes, A-1 loan and A-2 loan 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 in the Fitch-stressed portfolio would lead to downgrades of up to three notches each for the class A notes, A-1 loan and A-2 loan, class B to, D notes and to below 'B-sf' for the class E and F notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to three notches each for the notes, except the class A notes, A-1 loan and A-2 loan, which are at the highest level on Fitch's rating scale and cannot be upgraded. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the remaining life of the transaction. Upgrades after the end of the reinvestment period may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement 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 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 1988 Asset MGMT Euro CLO 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. ANCHORAGE CAPITAL 3: Fitch Assigns 'B-sf' Rating to Class F-R Notes ------------------------------------------------------------------- Fitch Ratings has assigned Anchorage Capital Europe CLO 3 DAC reset notes final ratings, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Anchorage Capital Europe CLO 3 DAC A XS2914142901 LT PIFsf Paid In Full AAAsf A-R XS3430519648 LT AAAsf New Rating B XS2914143115 LT PIFsf Paid In Full AAsf B-R XS3430519994 LT AAsf New Rating C XS2914143461 LT PIFsf Paid In Full Asf C-R XS3430520653 LT Asf New Rating D XS2914143628 LT PIFsf Paid In Full BBB-sf D-R XS3430520901 LT BBB-sf New Rating E XS2914143974 LT PIFsf Paid In Full BB-sf E-R XS3430521388 LT BB-sf New Rating F XS2914144279 LT PIFsf Paid In Full B-sf F-R XS3430521545 LT B-sf New Rating Transaction Summary Anchorage Capital Europe CLO 3 DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of unsecured senior loans, unsecured senior bonds, second-lien loans, first-lien last-out loans, mezzanine obligations and high-yield bonds. On the Existing notes, except for the subordinated notes, were refinanced. The portfolio is actively managed by Anchorage CLO ECM, L.L.C. The CLO has a 4.5-year reinvestment period and an 8.5-year weighted average life (WAL) test at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch places the average credit quality of obligors at 'B'. The Fitch-calculated weighted average rating factor of the identified portfolio is 23.5. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate of the identified portfolio is 64%. Diversified Asset Portfolio (Positive): The transaction includes two Fitch test matrices that are effective at closing. These correspond to a top 10 obligor concentration limit of 20%, two fixed-rate asset limits at 5% and 12.5% and an 8.5-year WAL. It also has four forward matrices, corresponding to the same limits with 7.5-year and seven-year WAL, which can be selected by the manager 12 months and 18 months after closing, respectively. The forward matrix sets are subject to the collateral principal amount (including defaulted obligations at Fitch-calculated collateral value) being at least at the reinvestment target par balance and/or a rating confirmation from Fitch. The transaction also has various concentration limits of the portfolio, including a maximum exposure to the three largest Fitch-defined industries at 40%. These covenants ensure that the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has a 4.5-year reinvestment period and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed 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 and matrices analysis is 12 months less than the WAL covenant. This is to account for structural and reinvestment conditions after the reinvestment period, including the overcollateralisation test and the Fitch 'CCC' limitation test. Fitch believes these conditions will 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 lead to a downgrade to below 'B-sf' for the class F-R notes and have no impact on the other notes. Downgrades, which are based on the identified portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. The class C-R, D-R and F-R notes each have a rating cushion of three notches, and the class B-R and E-R notes have a rating cushion of two notches and five notches, respectively, due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. The class A-R notes have no rating cushion. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to three notches each for the class A-R to class D-R notes, and to below 'B-sf' for the class E-R and 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 five notches each, 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 transaction's remaining life. Upgrades after the end of the reinvestment period may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognised Statistical Rating Organisations and/or European Securities and Markets Authority-registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the 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 Anchorage Capital Europe CLO 3 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. ARCANO EURO IV: Fitch Assigns 'B-sf' Final Rating to Class F Notes ------------------------------------------------------------------ Fitch Ratings has assigned Arcano Euro CLO IV DAC final ratings, as detailed below. Entity/Debt Rating ----------- ------ Arcano Euro CLO IV DAC A XS3367598110 LT AAAsf New Rating B XS3367598383 LT AAsf New Rating C XS3367598979 LT Asf New Rating D XS3367599191 LT BBB-sf New Rating E XS3367599431 LT BB-sf New Rating F XS3367599605 LT B-sf New Rating Subordinated Notes XS3367599944 LT NRsf New Rating Transaction Summary Arcano Euro CLO IV 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 purchase a portfolio with a target par of EUR450 million. The portfolio is actively managed by Arcano Loan Advisors S.L. and Arcano Capital SGIIC, S.A.. The collateralised loan obligation (CLO) has a 4.5-year reinvestment period and an 8.5-year weighted average life test (WAL) test covenant. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'Bsf'. The Fitch-calculated weighted average rating factor (WARF) of the identified portfolio is 23.8. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate (WARR) of the identified portfolio is 64.8%. Diversified Portfolio (Positive): The transaction includes various portfolio concentration limits, including a maximum exposure to the three largest Fitch-defined industries in the portfolio at 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has an approximately 4.5-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. The transaction includes six Fitch matrices. Each matrix set includes two different fixed-rate asset limits at 5% and 10% and a top 10 obligor concentration limit at 20%. Two of the matrices are effective at closing, corresponding to an 8.5-year WAL, while two are effective six months after closing, corresponding to an eight-year WAL and another two effective 18 after closing, corresponding to a seven-year WAL. A switch to matrices with an eight- or seven- year WAL is subject to the collateral balance (treating defaulted obligations at their Fitch-calculated collateral value) being at least equal to the reinvestment target par balance. Cash Flow Modelling (Positive): The WAL for the transaction's Fitch-stressed portfolio analysis is 12 months shorter than the WAL test covenant. This is to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period, which include passing the coverage tests and the Fitch 'CCC' bucket limitation test and a WAL test 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) 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, C and D notes and would lead to downgrades of one notch each for the class B and E notes and to below 'B-sf' for the class F notes. Downgrades, which are based on the identified portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. The rated notes have a rating cushion of up to two notches each for the class B and D notes and three notches each for the class C, E and F notes, 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 D notes, two notches each for the class A, B and C notes, and to below 'B-sf' for the class E and F notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to two notches for the class B notes and three notches each for the class C, D, E and F notes. The class A notes, which are at the highest level on Fitch's rating scale, cannot be upgraded. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the remaining life of the transaction. Upgrades after the end of the reinvestment period may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement 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 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 Arcano Euro CLO IV 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. AVOCA CAPITAL XIII: Fitch Affirms 'Bsf' Rating on Class F-RR Notes ------------------------------------------------------------------ Fitch Ratings has affirmed Avoca Capital CLO XIII DAC's notes and removed them from Under Criteria Observation, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Avoca CLO XIII DAC A-RR XS2326454746 LT AAAsf Affirmed AAAsf B-1-RR XS2326455396 LT AA+sf Affirmed AA+sf B-2-RR XS2326455636 LT AA+sf Affirmed AA+sf C-RR XS2326455552 LT A+sf Affirmed A+sf D-RR XS2326456014 LT BBB+sf Affirmed BBB+sf E-RR XS2326456287 LT BB+sf Affirmed BB+sf F-RR XS2326456105 LT Bsf Affirmed Bsf Transaction Summary Avoca CLO XIII DAC is a cash flow CLO mostly comprising senior secured obligations. The transaction is actively managed by KKR Credit Advisors (Ireland) and exited its reinvestment period in July 2025. The transaction is currently failing the weighted average spread (WAS) test and Fitch weighted average rating factor (WARF) test. KEY RATING DRIVERS CLO Criteria Update: The affirmations and Stable Outlooks primarily reflect the combination of Fitch's updated CLOs and Corporate CDOs Rating Criteria published on 1 June 2026 and portfolio performance. The positive impact from the updated criteria, which brought about an increase in the weighted average recovery rate (WARR), was offset by a deterioration in the par position. The transaction is currently 1.67% below par (calculated as the current par difference below the reinvestment target par), down from 0.92% below par at 30 June 2025. Deviation from MIRs: The class B-1-RR, B-2-RR, E-RR and F-RR notes' ratings are two notches below the model-implied ratings (MIR), and the class C-RR and D-RR notes' ratings are one notch below, due to a limited cushion against their breakeven default rates at a higher rating or insufficient credit enhancement to support the higher rating for the class B-1-RR and B-2-RR notes. All notes have sufficient default-rate cushions to support their current ratings and withstand potential deterioration in the portfolio's credit quality. Performance Within Rating Case: Exposure to assets with a Fitch-derived rating of 'CCC+' or lower is 6.4%, according to the trustee report, and obligors with a Fitch-derived rating on Negative Outlook account for 17.3%. The portfolio includes one defaulted obligation with a total notional amount of EUR653,000. 'B'/'B-' Portfolio: Fitch assesses the average credit quality of the underlying obligors at 'B'/'B-'. The WARF of the current portfolio is 25.9, as calculated by Fitch under its latest criteria. High Recovery Expectations: Senior secured obligations comprise 99.8% of the portfolio. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated WARR of the current portfolio is 64.9%. Diversified Portfolio: The portfolio is well-diversified across obligors, countries and industries. The top 10 obligor concentration, as calculated by Fitch, is 13.1%, and no obligor represents more than 1.69% of the portfolio balance. Exposure to the three largest Fitch-defined industries is 29.1% as calculated by Fitch. Fixed-rate assets as reported by the trustee are at 2.4%, currently complying with the limit of 5%. Transaction Out of Reinvestment Period: The transaction exited its reinvestment period in July 2025 and the senior notes started to amortise in October 2025. According to the latest trustee report dated 29 May 2026, the transaction is breaching the Fitch minimum WARF test and the Fitch minimum WAS test. The manager is allowed to reinvest unscheduled principal proceeds and sale proceeds from credit risk and credit improved obligations on a maintain or improve basis. The test failures are marginal and, if cured, may allow the manager to trade more actively. Fitch assumed in its upgrade analysis that the manager will resume reinvesting and tested the ratings for upgrades based on a stressed portfolio, across the Fitch test matrices set out in the documentation. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Based on the current portfolio, downgrades may occur if the loss expectation is larger than initially assumed, due to unexpectedly high levels of default and portfolio deterioration. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades may occur on stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY 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 Avoca CLO XIII 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. BILBAO CLO IV: Fitch Affirms 'B-sf' Rating on Class E Notes ----------------------------------------------------------- Fitch Ratings has upgraded Bilbao CLO IV DAC's class C notes and affirmed the rest. Fitch has also removed all notes from Under Criteria Observation (UCO). Entity/Debt Rating Prior ----------- ------ ----- Bilbao CLO IV DAC A-1 XS2433714222 LT AAAsf Affirmed AAAsf A-2A XS2433714735 LT AAsf Affirmed AAsf A-2B XS2433714909 LT AAsf Affirmed AAsf B XS2433715112 LT Asf Affirmed Asf C XS2433715385 LT BBBsf Upgrade BBB-sf D XS2433715625 LT BB-sf Affirmed BB-sf E XS2433715971 LT B-sf Affirmed B-sf Transaction Summary Bilbao CLO IV DAC is a securitisation of mainly senior secured loans with a component of senior unsecured, mezzanine, and second-lien loans. The portfolio is actively managed by Guggenheim Partners Europe Limited and will exit its reinvestment period in March 2027. KEY RATING DRIVERS CLO Criteria Update: The rating affirmations and upgrade incorporate the combined effect of Fitch's updated CLOs and Corporate CDOs Rating Criteria published on 1 June 2026 and portfolio performance. The positive impact from the updated criteria resulted in an increase in the weighted average recovery rate to 65.5% from 61.8% as calculated by Fitch. Stable Performance, Shorter Risk Horizon: The portfolio's credit quality has remained stable over the last 12 months. Exposure to assets with a Fitch-Derived Rating of 'CCC+' and below remains low at 1.5%, according to the latest trustee report dated June 2026, versus a limit of 7.5%. The transaction is about 1% below par (calculated as the current par difference over the original target par) with one defaulted asset in the portfolio. The transaction is also passing all its collateral quality, portfolio profile and coverage tests. The stable performance combined with a shortened weighted average life (WAL) test covenant, which has decreased by about 0.75 years since the last review in July 2025, and the criteria update, resulted in the upgrade and affirmations. Low Refinancing Risks: The transaction has manageable near- and medium-term refinancing risk, with 0.75% maturing in 2027 and 11.9% in 2028. 'B'/'B-' Portfolio: Fitch assesses the average credit quality of the obligors at 'B'/'B-'. The Fitch-calculated weighted average rating factor of the current portfolio is 24.7. High Recovery Expectations: Senior secured obligations comprise 99.2% of the portfolio. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate of the current portfolio is 65.5%. Diversified Portfolio: The portfolio is well-diversified across obligors, countries and industries. The top 10 obligor concentration, as calculated by Fitch, is 12.4%, and no obligor represents more than 1.3% of the portfolio balance. Exposure to the three largest Fitch-defined industries is 35.8% as calculated by Fitch. Fixed-rate assets as reported by the trustee are 5.8%, complying with the limit of 10%. Cash Flow Analysis: Fitch used a customised proprietary cash flow model to replicate the principal and interest waterfalls and the various structural features of the transaction, and to assess their effectiveness, including the structural protection provided by excess spread diverted through the par-value and interest-coverage tests. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Downgrades, which are based on the current portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally 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 Bilbao CLO IV 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 III: Fitch Assigns B-sf Final Rating to Cl. F-R Notes ------------------------------------------------------------------ Fitch Ratings has assigned Capital Four CLO III DAC reset notes final ratings, as detailed below. Entity/Debt Rating ----------- ------ Capital Four CLO III DAC Class A-R XS3410931714 LT AAAsf New Rating Class B-R XS3410931987 LT AAsf New Rating Class C-R XS3410932100 LT Asf New Rating Class D-R XS3410932365 LT BBB-sf New Rating Class E-R XS3410932522 LT BB-sf New Rating Class F-R XS3410932878 LT B-sf New Rating Class X-R XS3410931557 LT AAAsf New Rating Subordinated Notes XS2370210960 LT NRsf New Rating Transaction Summary Capital Four CLO III DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds were used to redeem the existing notes, except the subordinated notes, and to fund the portfolio with a target par of EUR300 million. The portfolio is actively managed by Capital Four AIFM A/S. The CLO has a 4.5-year reinvestment period and an 8.5-year weighted average life (WAL) test covenant at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors in the identified portfolio to be in the 'B' category. The Fitch weighted average rating factor of the identified portfolio is 24.5. High Recovery Expectations (Positive): At least 90% of the portfolio 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 64.1%. 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 two Fitch matrices sets. Two closing matrices correspond to an 8.5-year WAL, and two forward matrices correspond to a 7.5-year WAL, which can be selected starting from 12 months after closing, subject to the reinvestment target par condition and a 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. 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, after the reinvestment period, passing the coverage tests and the Fitch 'CCC' bucket limit test, and a WAL covenant that gradually steps down during and after 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 A 25% increase of the mean default rate (RDR) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no impact on the class X-R to D-R notes and would lead to downgrades of two notches for the class E-R notes and to below 'B-sf' for the 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, C-R, D-R and F-R notes each have a two-notch rating cushion and the class E-R notes have a three-notch rating cushion, due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. The class X-R and A-R notes have no rating cushions. 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 each for the class X-R to D-R notes, and to below 'B-sf' for the class E-R and 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 result in upgrades of up to five notches each for all notes, except for the 'AAAsf' rated notes. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may result from better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the remaining life of the transaction. Upgrades after the end of the reinvestment period may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally 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 III DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. ELMWOOD EUROPEAN 2: Fitch Assigns 'B-sf' Rating on Class F Notes ---------------------------------------------------------------- Fitch Ratings has assigned Elmwood European CLO 2 DAC final ratings, as detailed below. Entity/Debt Rating ----------- ------ Elmwood European CLO 2 DAC A XS3373437246 LT AAAsf New Rating A-Loan LT AAAsf New Rating B XS3373437592 LT AAsf New Rating C XS3373437758 LT Asf New Rating D XS3373437915 LT BBB-sf New Rating E XS3373438137 LT BB-sf New Rating F XS3373438301 LT B-sf New Rating Sub Notes XS3373438723 LT NRsf New Rating Z XS3373439028 LT NRsf New Rating Transaction Summary Elmwood European CLO 2 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 purchase a portfolio with a target par of EUR400 million. The portfolio is actively managed by Elmwood Asset Management (UK) Limited and the CLO has a reinvestment period of 4.5 years and a 7.5-year weighted average life (WAL) test at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B+'/'B'. The Fitch weighted average rating factor (WARF) of the current portfolio is 23. 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 current portfolio is 65.5%. Diversified Asset Portfolio (Positive): The transaction includes various concentration limits, including a top 10 obligor concentration limit of 20%, a fixed-rate obligation limit of 10% and a maximum exposure to the three largest Fitch-defined industries of 40%. These covenants ensure that the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has an approximately 4.5-year reinvestment period, which is governed by reinvestment criteria that are similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. The transaction includes three sets of Fitch test matrices. Two are effective at closing, one with a WAL of 8.5 years and one with a WAL of 7.5 years. The third has a WAL of seven years and will become effective 18 months after closing. Matrix switches are conditional on the collateral principal amount (with defaults accounted for at Fitch-calculated collateral value) being at least at the reinvestment target par balance and the satisfaction of the transaction's collateral quality tests. WAL Test Step-Up Feature (Neutral): The transaction can extend the WAL by one year on or after the step-up date, which is one year after closing. The WAL extension is subject to conditions, including the satisfaction of collateral quality tests and the collateral principal balance (with defaulted assets at collateral value) being at least equal to the reinvestment target par, unless prior to the step-up date, the transaction is already applying the matrix with a WAL of 8.5 years, in which case no further conditions will apply. 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, which include passing the coverage tests and the Fitch 'CCC' bucket limit 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 current portfolio would have no impact on the class A to E notes. It would also lead to the downgrade to below 'B-sf' for the class F notes, subject to the erosion of any margin of safety supporting the 'B-sf' rating. 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 E notes have a rating cushion of five notches, the class C and D notes each have four notches, the class F notes have three notches and the class B notes have two notches, due to better metrics and shorter life of the current portfolio than the Fitch-stressed portfolio. The class A notes are at the highest achievable rating and therefore have no rating cushion. 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 two notches each for the class B, C and D notes, three notches for the class A 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 three notches each for the rated notes. The 'AAAsf' notes are at the highest level on Fitch's scale and cannot be upgraded. 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 covenant, allowing the notes to withstand larger-than-expected losses for the remaining life of the transaction. Upgrades after the end of the reinvestment period may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally 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 Elmwood European CLO 2 DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. HOXTON CONSUMER 2026-1: S&P Assigns BB+(sf) Rating to E-Dfrd Notes ------------------------------------------------------------------ S&P Global Ratings assigned its credit ratings to Hoxton Consumer Loan Funding 2026-1 DAC's class A, B-Dfrd, C-Dfrd, D-Dfrd, and E-Dfrd notes. At closing, the issuer also issued unrated class F-Dfrd and X-Dfrd notes. Hoxton Consumer Loan Funding 2026-1 is the first public securitization of a portfolio of unsecured consumer loans originated and serviced by Lendable Ltd. in the U.K., rated by S&P Global Ratings. Previously, S&P rated Lendable Ltd.'s unsecured consumer loans as part of prior warehouse securitization transactions. The issuer used the proceeds of the notes to purchase a portfolio of unsecured consumer loans, to fund the reserve account, and to pay certain issuer expenses and fees. The transaction will amortize from the first interest payment date (IPD). Collections are distributed monthly according to a split waterfall, separate for interest and principal collections. Initially, principal payments will be applied sequentially until the class A notes' support ratio reaches 27%. At that point, the transaction will switch to pro rata amortization until a sequential amortization event occurs. The transaction benefits from an amortizing reserve fund, which is sized at closing at 1.25% of the aggregate principal amount outstanding of the class A to E-Dfrd notes. This reserve will amortize in line with the outstanding balance on these notes, subject to a floor of 0.25% of the outstanding balance of the class A to E-Dfrd notes at closing. This reserve is split into senior and junior reserve fund components, on an 80%/20% basis. The senior reserve is available to cover interest shortfalls on the class A and B-Dfrd notes, as well as senior items in the interest waterfall. The junior reserve is available to cover interest shortfalls on the rated notes and senior items. The excess of the reserve fund above its required amounts following reserve amortization to its required level will be released in the interest priority of payment and may be used to cure the principal deficiency ledgers (PDL). Both reserves provide credit support for the respective notes on the date on which such notes can be amortized. A combination of note subordination, excess spread, and the reserve fund provides credit enhancement for the rated notes. Considering the collections' sweeping frequency, payments are expected to be remitted to the transaction account within two business days of receipt, S&P considers commingling risk to be immaterial in this transaction. Notwithstanding this assessment, the transaction structure incorporates a declaration of trust over Lendable's collection account as an additional layer of protection. Lendable is not a deposit-taking institution. Moreover, Lendable's employees are excluded from the securitized pool through specific eligibility criteria, and there is no insurance attached to the loans. Therefore, S&P concluded that the transaction is not exposed to setoff risk. The rated notes pay a daily compounded Sterling Overnight Index Average rate plus a margin subject to a floor of zero, while the assets pay a monthly fixed interest rate. To mitigate fixed-float interest rate risk, the notes benefit from an interest rate swap. The swap notional amount is based on a predetermined notional schedule based on a 20% prepayment rate. Interest due on all classes of notes other than the most senior tranche outstanding is deferrable under the transaction documents. Nonpayment of interest on the junior notes does not constitute an event of default. Once a class becomes the most senior, current interest is due on a timely basis, while any outstanding deferred interest is due immediately once this note becomes the most senior or at the maturity date. The ratings are not constrained by counterparty, operational, or sovereign risks. S&P considers the issuer to be bankruptcy remote. Ratings Class Rating* Amount (mil. GBP) A AAA (sf) 392.50 B-Dfrd AA (sf) 27.50 C-Dfrd A (sf) 20.00 D-Dfrd BBB (sf) 18.75 E-Dfrd BB+ (sf) 16.25 F-Dfrd NR 25.00 X-Dfrd§ NR 9.75 *S&P said, "Our rating on the class A notes addresses timely payment of interest and ultimate payment of principal. Our ratings on the class B-Dfrd, C-Dfrd, D-Dfrd, and E-Dfrd notes address the ultimate payment of both interest and principal, and consider the timely payment of interest, including any previously deferred amounts, once the class is the most senior." §The class X-Dfrd notes are not asset-backed. Their proceeds were used to fund the reserve account and to pay certain issuer expenses and fees. NR--Not rated. JUBILEE 2022-XXVI: Fitch Alters Outlook on B-sf Rating to Negative ------------------------------------------------------------------ Fitch Ratings has revised Jubilee CLO 2022-XXVI DAC's class E-R and F-R notes' Outlook to Negative from Stable. All notes have been affirmed. Entity/Debt Rating Prior ----------- ------ ----- Jubilee CLO 2022-XXVI DAC Class A-R XS2762950983 LT AAAsf Affirmed AAAsf Class B-1-R XS2762951015 LT AAsf Affirmed AAsf Class B-2-R XS2762951288 LT AAsf Affirmed AAsf Class C-R XS2762951445 LT Asf Affirmed Asf Class D-R XS2762951791 LT BBB-sf Affirmed BBB-sf Class E-R XS2762951957 LT BB-sf Affirmed BB-sf Class F-R XS2762952179 LT B-sf Affirmed B-sf Transaction Summary Jubilee CLO 2022-XXVI DAC is a securitisation of mainly senior secured obligations (at least 92.5%) with a component of senior unsecured, mezzanine, second-lien loans, first-lien last-out loans and high-yield bonds. The portfolio is actively managed by BSP CLO Management LLC. The transaction will exit its reinvestment period in September 2028. KEY RATING DRIVERS Par Deterioration Erodes Credit Enhancement: The deal is 2.8% below par, versus 0.5% at the last review in September 2025. The par value ratios of the class E-R and F-R notes have decreased by 3% each since the last review, to respectively 107.2% and 103.5% in the trustee report dated June 2026, very close to their over-collateralisation test threshold. This reflects further par erosion of about EUR7.4 million over the last 10 months, and a defaulted asset of EUR3 million with low recovery prospects based on the current market valuation. Further performance deterioration could trigger a downgrade on the class E-R and F-R notes, which underlines the Negative Outlook. 'B'/'B-' Portfolio: Fitch assesses the average credit quality of the underlying obligors at 'B'/'B-'. The weighted average rating factor of the current portfolio is 24.9 as calculated by Fitch under its latest criteria. About 16.1% of the portfolio is currently on Negative Outlook. High Recovery Expectations: Senior secured obligations comprise 97.7% of the portfolio. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate of the current portfolio is 64.4%. Diversified Portfolio: The portfolio is well-diversified across obligors, countries and industries. The top 10 obligor concentration, as calculated by Fitch, is 12.4%, and no obligor represents more than 1.6% of the portfolio balance. Exposure to the three largest Fitch-defined industries is 28.8% as calculated by Fitch. Fixed-rate assets as reported by the trustee are at 7.2%, complying with the limit of 7.5%. Transaction within Reinvestment Period: The transaction is still in its reinvestment period. The manager is still able to reinvest on a maintain-or-improve basis during the reinvestment period, despite the deal failing the 'CCC' limit test at 8.4%, above a maximum of 7.5%. Fitch's upgrade analysis is therefore based on a stressed portfolio, in which the transaction covenants were stressed to their limits and the ratings of the notes were tested based on the collateral quality test matrices set out in the transaction documentation. For the stressed portfolio analysis, Fitch modelled a weighted average life of 5.6 years, in line with the current weighted average life test covenant of the transaction. Cash Flow Analysis: Fitch used a customised proprietary cash flow model to replicate the principal and interest waterfalls and the various structural features of the transaction, and to assess their effectiveness, including the structural protection provided by excess spread diverted through the par value and interest coverage tests. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Downgrades, which are based on the current portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority- registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Jubilee CLO 2022-XXVI 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. MADISON PARK XI: Fitch Assigns 'B-sf' Final Rating to Cl. F-R Notes ------------------------------------------------------------------- Fitch Ratings has assigned Madison Park Euro Funding XI DAC's reset notes final ratings, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Madison Park Euro Funding XI DAC A-R XS3406619745 LT AAAsf New Rating AAA(EXP)sf B-R XS3406682941 LT AAsf New Rating AA(EXP)sf C-R XS3406732399 LT Asf New Rating A(EXP)sf D-R XS3406732555 LT BBB-sf New Rating BBB-(EXP)sf E-R XS3406734502 LT BB-sf New Rating BB-(EXP)sf F-R XS3406737430 LT B-sf New Rating B-(EXP)sf A-1 XS1833622910 LT PIFsf Paid In Full AAAsf A-2 XS1833623561 LT PIFsf Paid In Full AAAsf B-1 XS1833624379 LT PIFsf Paid In Full AA+sf B-2 XS1833624965 LT PIFsf Paid In Full AA+sf C XS1833625426 LT PIFsf Paid In Full A+sf D XS1833626150 LT PIFsf Paid In Full BBB+sf E XS1833626747 LT PIFsf Paid In Full BB+sf F XS1833627471 LT PIFsf Paid In Full B+sf Transaction Summary Madison Park Euro Funding XI 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 the existing notes, except the subordinated notes, and to fund the portfolio with a target par of EUR450 million. The portfolio is managed by UBS Asset Management Credit Investments Group (UK) Ltd. The CLO has a 4.6-year reinvestment period and an 8.5-year weighted average life (WAL) test at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'/'B-'. The Fitch weighted average rating factor (WARF) 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 63.5%. Diversified Portfolio (Positive): The transaction includes four matrices. Two matrices are effective at closing and correspond to two fixed-rate asset limits of 5% and 12.5%, each subject to an 8.5-year WAL test. The other two matrices correspond to the same two fixed-rate asset limits but are subject to a 7.5-year WAL test. These can be selected by the manager one year after closing. The transaction also sets out various concentration limits in the portfolio, including a fixed-rate obligation limit at 12.5%, a top 10 obligor concentration limit at 25%, and a maximum exposure to the three largest Fitch-defined industries in the portfolio at 40%. These covenants ensure that the asset portfolio is not exposed to excessive concentration. Portfolio Management (Neutral): The transaction has a 4.6-year reinvestment period, which is 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. Cash Flow Modelling (Positive): The WAL used for the 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 include passing the coverage tests and the Fitch WARF and 'CCC' bucket limitation test, as well as a WAL covenant that gradually steps down. 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 lead to downgrades of one notch for 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 defaults and portfolio deterioration. The class C-R, D-R, E-R and F-R notes each have a rating cushion of three notches, and the class B-R notes have a cushion of two notches, due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. The class A-R 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 due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to three notches each for the class A-R, B-R, C-R and D-R notes, and to below 'B-sf ' for the class E-R and 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 five notches each for the notes, except the 'AAAsf' rated notes. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than -expected losses for the remaining life of the transaction. Upgrades after the end of the reinvestment period may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority- registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Madison Park Euro Funding XI DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. PENTA CLO 18: Fitch Assigns 'B-sf' Rating to Class F-R Notes ------------------------------------------------------------ Fitch Ratings has assigned Penta CLO 18 DAC's reset notes final ratings, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Penta CLO 18 DAC Class A Notes XS2941196987 LT PIFsf Paid In Full AAAsf Class A-1 Loan LT PIFsf Paid In Full AAAsf Class A-2 Loan LT PIFsf Paid In Full AAAsf Class A-R XS3434479229 LT AAAsf New Rating Class B Notes XS2941197100 LT PIFsf Paid In Full AAsf Class B-R XS3434479492 LT AAsf New Rating Class C Notes XS2941197365 LT PIFsf Paid In Full Asf Class C-R XS3434479575 LT Asf New Rating Class D Notes XS2941197522 LT PIFsf Paid In Full BBB-sf Class D-R XS3434479906 LT BBB-sf New Rating Class E Notes XS2941197878 LT PIFsf Paid In Full BB-sf Class E-R XS3434480078 LT BB-sf New Rating Class F Notes XS2941198090 LT PIFsf Paid In Full B-sf Class F-R XS3434480151 LT B-sf New Rating Class X-R XS3434479062 LT AAAsf New Rating Class Z XS3434480409 LT NRsf New Rating Transaction Summary Penta CLO 18 DAC is a securitisation of mainly senior secured loans and secured senior bonds, with a component of senior unsecured, mezzanine and second-lien loans. Net proceeds from the refinancing notes were used to redeem the existing notes, except for the subordinated notes, to fund a portfolio with a target par of EUR400 million. The portfolio is actively managed by Partners Group CLO Advisers LP. The collateralised loan obligation (CLO) has a 4.5-year reinvestment period and an 8.5 year weighted average life (WAL) test 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 (WARF) of the identified portfolio is 24.3. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate (WARR) of the identified portfolio is 64.6%. Diversified Asset Portfolio (Positive): The transaction includes various other concentration limits, including 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 has a 4.5-year reinvestment period and 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 four Fitch matrices, each based on a top 10 obligor concentration of 20%. Two matrices are effective at closing, corresponding to fixed-rate asset limits at 5% and 10% and to an 8.5-year WAL test covenant. The remaining two matrices are effective 12 months after closing and correspond to a 7.5-year WAL test covenant, with the same fixed-rate asset limits. The two forward matrices can be elected by the collateral manager if the collateral principal amount (with defaults carried at Fitch-calculated collateral value) is at least equal to the reinvestment target par balance. Cash Flow Modelling (Positive): The WAL used for the transaction's Fitch-stressed portfolio analysis has been reduced by one year. This accounts for the strict reinvestment conditions envisaged by the transaction after its reinvestment period. These conditions include passing both the coverage tests and the Fitch 'CCC' maximum limit, together with a WAL covenant that gradually steps down, both 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 X-R to D-R notes and lead to downgrades of one notch for 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 notes have a rating cushion of two notches, the class C-R and F-R notes each have a cushion of three notches, the class D-R notes have four notches and the class E-R notes have five notches, due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. The class X-R and A-R notes have no rating cushions as they are already rated at the highest possible level. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded either due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to three notches each for the class A-R to D-R notes and to below 'B-sf for the class E-R and F-R notes. The class X-R notes will not be affected. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction in the mean RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to two notches each for the class B-R and C-R notes, up to four notches each for the class D-R and F-R notes and up to five notches for the class E-R notes. The class X-R and A-R notes are rated 'AAAsf', the highest level on Fitch's scale, and cannot be upgraded. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the transaction's remaining life. Upgrades after the end of the reinvestment period may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY 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 Penta CLO 18 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. PRIORITY 1: Teneo Restructuring Appointed as Joint Liquidators -------------------------------------------------------------- By Orders of the High Court made on July 13, 2026, on the petitions of each of Priority 1 Issuer Logistics Designated Activity Company, Priority 1 Leasing Holdco Ireland Limited and Priority 1 Leasing Limited (the "Companies"), it was ordered that the Companies be wound up by the Court and that Damien Murran and Julian Moroney of Teneo Restructuring (Ireland) Limited of 20 on Hatch, Hatch Street Lower, Saint Kevin's, Dublin 2, be appointed as Joint Official Liquidators of each of the Companies. SOUND POINT 17: Fitch Assigns 'B-sf' Final Rating to Class F Notes ------------------------------------------------------------------ Fitch Ratings has assigned Sound Point Euro CLO 17 Funding DAC final ratings, as detailed below. Entity/Debt Rating ----------- ------ Sound Point Euro CLO 17 Funding DAC A XS3295878519 LT AAAsf New Rating B XS3295878600 LT AAsf New Rating C XS3295878782 LT Asf New Rating D XS3295878865 LT BBB-sf New Rating E XS3295878949 LT BB-sf New Rating F XS3295879087 LT B-sf New Rating Subordinated Notes XS3295879160 LT NRsf New Rating Transaction Summary Sound Point Euro CLO 17 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 purchase a portfolio with a target par of EUR400 million. The portfolio is actively managed by Sound Point CLO C-MOA, LLC. The CLO has a five-year reinvestment period and a nine-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 at 'B'. The Fitch-calculated weighted average rating factor of the identified portfolio is 24.3. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second lien, unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate of the identified portfolio is 65.6%. Diversified Portfolio (Positive): The transaction includes six Fitch matrices, each based on a top 10 obligor concentration limit of 20%. Two matrices are effective at closing, corresponding to fixed-rate asset limits of 5% and 12.5% and a nine year WAL test covenant. The remaining four matrices are effective 12 and 24 months after closing and correspond to eight-year and a seven-year WAL test covenants, with the same fixed-rate asset limits as the closing matrices. The forward matrices can be elected by the collateral manager if the collateral principal amount (with defaults carried at Fitch collateral value) is at least equal to the reinvestment target par balance. The transaction includes additional covenants, including a maximum exposure to the three largest Fitch-defined industries in the portfolio at 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction has 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 for the transaction's Fitch-stressed portfolio and matrices 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 after reinvestment, as well as a WAL covenant that gradually steps down. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during the stress period. 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 have no impact on the rated notes. Based on the current 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 the shorter life of the current portfolio than the Fitch-stressed portfolio, the class E and F notes have rating cushions of five notches, the class D notes of four notches, the class C notes of three notches and the class B notes of two 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 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 two notches for the class C and D notes; three notches for the class A and B 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 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 each for the 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 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. 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 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 Sound Point Euro CLO 17 Funding 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. ST. PAUL XI: Fitch Alters Outlook on 'B-sf' Rating to Negative -------------------------------------------------------------- Fitch Ratings has upgraded St. Paul's CLO XI DAC's class D-R notes and revised the Outlooks on the class E and F notes to Negative from Stable. Entity/Debt Rating Prior ----------- ------ ----- St. Paul's CLO XI DAC A-R XS2388195120 LT AAAsf Affirmed AAAsf B-1-R XS2388195633 LT AAAsf Affirmed AAAsf B-2-R XS2388195807 LT AAAsf Affirmed AAAsf C-1-R XS2388196102 LT A+sf Affirmed A+sf C-2-R XS2388196441 LT A+sf Affirmed A+sf D-R XS2388196870 LT BBB+sf Upgrade BBBsf E XS2007341576 LT BBsf Affirmed BBsf F XS2007341816 LT B-sf Affirmed B-sf Transaction Summary St. Paul's CLO XI DAC is a cash flow CLO comprising mostly senior secured obligations. The transaction is outside the reinvestment period, which ended in January 2024, and is actively managed by ICG Manager Limited. KEY RATING DRIVERS Deteriorating Portfolio Quality: The portfolio's credit quality has deteriorated since the last review in May 2026. In the latest trustee report, dated June 2026, obligations with a Fitch-Derived Rating of 'CCC+' or below increased to 15% of the aggregate collateral balance from 12.8%, driven by negative rating migration, and remain above the 7.5% limit. Defaulted obligations also remain high at EUR10.3 million, with near-zero market values and lower trustee-reported values than in the last review. Over-collateralisation for the class E and F notes fell to 2.6% and 1.3%, respectively, from 2.9% and 1.6% at the previous review, reflecting the increase in assets rated 'CCC+' or below. Exposure to obligors with a Negative Outlook remains high at 20.6%, based on Fitch's calculations. The trustee-calculated portfolio's weighted average recovery rate (WARR) fell to 61.8% from 62.4%. The deal continues to fail the Fitch weighted average rating factor (WARF) and Fitch WARR tests. Par losses, at 2.1% of the original target balance, defaults, and the increase in obligations rated 'CCC+' or below have resulted in the Outlooks on the class E and F notes being revised to Negative. CLO Criteria Update: The class D-R upgrade and the affirmations of all other classes reflect the positive effect of Fitch's updated CLOs and Corporate CDOs Rating Criteria, published on 1 June 2026 offsetting the deteriorating portfolio performance. The rating actions also reflect Fitch's view of low recovery prospects from the transaction's defaulted assets. The senior positions of the class A-R to D-R notes will benefit more from further amortisation, underlining their Stable Outlooks. The notes of this deal were not placed on UCO on 5 June 2026 as the CLO manager had informed Fitch of their intention to amend their existing transaction documents (in particular the Fitch test matrices) to align with Fitch's latest criteria. However, the Fitch test matrices will not be updated for this deal. 'B'/'B-' Portfolio: Fitch assesses the average credit quality of the obligors in the portfolio at 'B'/'B-'. The Fitch-calculated WARF of the current portfolio is 29.9. Recovery Expectations: Senior secured obligations account for 98.3% of the portfolio. Fitch considers the recovery prospects for these assets to be stronger than for second-lien, unsecured, and mezzanine obligations. Fitch calculates the portfolio's WARR at 64.8%, based on its latest criteria. Low recovery prospects from the transaction's defaulted assets have been reflected in Fitch's analysis by modelling a 0% recovery rate for three assets, First Brands Group LLC's 2023 euro incremental term loan and EUR DIP roll up term loan and Garfunkelux Holdco 4 SA's GFKLDE 10.5% 05/01/2030. Its assumption is substantially in line with their market value as last reported by the trustee. Diversified Portfolio: The trustee calculated the largest three Fitch-defined industries at 26.9%, below the 40% limit, and the largest single obligor represents 2.7% of the aggregate collateral balance, below the 3% limit. Fixed-rate obligations, as reported by the trustee, are 9%, complying with the 15% limit. Transaction Outside Reinvestment Period: The collateral manager has not made a purchase since December 2025. The collateral manager cannot currently reinvest due to the failure of the Fitch 'CCC+' or below obligations test and the Fitch WARF test. The results in Fitch's downgrade analysis being based on the current portfolio, and the upgrade analysis is based on a Fitch-stressed portfolio, for which the ratings of assets with a Negative Outlook were adjusted down by one notch and the WAL floored at four years. Deviation from MIRs: The class C-1-R, C-2-R, and D-R notes are rated three notches below their model-implied ratings (MIRs) due to insufficient break-even default-rate cushion at the MIRs. The class E and F notes are rated two and three notches below their MIRs, respectively, to avoid unjustified rating volatility at higher ratings as the portfolio becomes more concentrated through deleveraging. In addition, the deviation reflects the large Fitch 'CCC+' or below bucket, the high amount of defaulted assets, and high volatility in the market value of lower-rated assets. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Downgrades, which are based on the current portfolio may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Upgrades may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally 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 St. Paul's CLO XI DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. ========= I T A L Y ========= EFESTO BIDCO: Fitch Affirms 'B' Long-Term IDR, Outlook Negative --------------------------------------------------------------- Fitch Ratings has affirmed Efesto Bidco S.p.A.'s (Forgital Group) Long-Term Issuer Default Rating (IDR) at 'B' with a Negative Outlook. Fitch has also affirmed Forgital Group's USD825 million senior secured notes due 2032, jointly issued with Efesto US, LLC, with a rating of 'B' with a Recovery Rating of 'RR4'. Fitch expects revenue and margin improvement over 2026-2029, chiefly driven by aerospace market growth. This will support deleveraging to below the negative EBITDA leverage sensitivity of 6.0x by end-2028 and lead to positive free cash flow (FCF). Small scale, concentrated customer base, material exposure to cyclical markets and high leverage constrain the rating. Forgital Group's strong niche market position, healthy EBITDA margins and long-term customer relationships, including with Rolls-Royce plc (A-/Stable), support the rating. The Negative Outlook reflects weaker than expected recent performance and the risk of slower revenue and EBITDA improvement, which could delay deleveraging and lead to a downgrade. Key Rating Drivers High Leverage: Pro-forma EBITDA leverage reached 8.0x at end-2025, weaker than its previous expectation of 7.2x due to lower-than-expected revenue and margins. Fitch expects the company to delever to around 7x at end-2026 and around 6x at end-2027 through EBITDA growth, but is unlikely to go below the negative EBITDA leverage sensitivity of 6.0x until end-2028. Any further delays in expected deleveraging will likely lead to a downgrade. 2025 Revenue Below Expectations: Pro forma revenue fell to EUR491 million in 2025 from EUR507 million in 2024, below Fitch's expectations. The decline reflected a weak US dollar, slower widebody output, soft industrial end-markets in Europe and supply-chain disruption affecting original equipment manufacturers and airframers. Fitch considers management's 2026 guidance of about EUR505 million-EUR530 million achievable. 1Q26 revenue grew year-on-year, providing early evidence of recovery. Expected growth is supported by strong aerospace demand, recent business wins, narrowbody and defence expansion and a slight industrial recovery expected in 2H26. Margin Weakness Expected to Improve: Fitch expects the EBITDA margin to recover to about 21% in 2026 and rise towards 23% by 2029, driven by higher volumes, better product mix and greater fixed-cost absorption as aerospace production ramps. The pro forma EBITDA margin fell to about 19% in 2025 from 22.5% in 2024, reflecting a weak US dollar, US tariff challenges and lower volumes. These were only partly offset by efficiency gains and improved energy costs. FCF to Improve: Fitch expects FCF will be slightly negative in 2026 before improving to neutral and then positive from 2027 as EBITDA grows. This assumes stable capex at about EUR35 million a year, working capital outflows of about 2% of revenue annually, and no dividend distributions. Concentrated Customer Base: Forgital Group's main customer is Rolls-Royce, which accounts for about 40% of its revenue. This presents high customer concentration risk, albeit offset by the strong, long-term nature of the relationship, the robust recovery in Rolls-Royce's operating performance and the difficulty of replacing Forgital Group in the short term on most programmes due to certification requirements and other barriers to entry. Solid Backlog: At end-2025, the order backlog in aerospace, with contracts until 2045, was about EUR4.8 billion, more than 10x its aerospace revenue in 2025. The solid backlog gives the group strong revenue visibility in the sector, where long-term contracts dominate, and supports the rating. The majority of the backlog relates to widebody aircraft and the rest to narrowbody and other aircraft. Good Market Position; Small Scale: The group is one of the leading producers of metallic forgings and large rings for aerospace and industrial markets. Nevertheless, Forgital Group's small size and scale are constraints on its credit profile as they restrict its ability to absorb cost overruns. The main mitigating factors are long-term relationships with major customers and the solid role the group plays in the engine supply chain. Peer Analysis Forgital Group is about half the size of Aernnova Aerospace S.A.U. (B/Negative) and much smaller than the rest of the Fitch-rated EMEA aerospace and defence portfolio, which is investment grade. Both issuers are reliant on one main customer (Rolls-Royce and Airbus, respectively) for a material share of their revenue and backlog. Forgital Group's EBITDA margin is comparable with similarly sized industrial peers such as EVOCA S.p.A. (B-/Negative) and Ammega Group B.V. (B-/Negative), and stronger than Aernnova's. Forgital Group's EBITDA leverage of about 8x at end-2025, forecast to improve to 7.0x at end-2026, is commensurate with that of Aernnova and EVOCA but much higher than that of other Fitch-rated EMEA aerospace and defence peers. Fitch’s Key Rating-Case Assumptions - Mid-single digit growth in 2026, rising to mid-high single-digit revenue during 2027-2029, supported by programme ramp-up in aerospace and new orders - EBITDA margin to increase to about 21% in 2026, and almost 23% in 2029, supported by higher volumes, efficiency gains and improving product mix - Capex of about EUR35 million annually during 2026-2029 - Working capital outflow of about 2% of revenue each year during 2026-2029 - No M&A or dividend payments 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 ('bb', Moderate), company operational characteristics ('bb-', Higher), profitability ('bb-', Moderate), financial structure ('ccc+', Higher), and financial flexibility ('b+', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 40% weight for the forecast year 2026, 40% for the forecast year 2027 and 20% for the forecast year 2028. B+ to CC considerations apply in its analysis and has 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 The recovery analysis assumes that Forgital Group would be reorganised as a going concern (GC) in bankruptcy rather than liquidated. Fitch assumes a 10% administrative claim. Fitch estimates the GC EBITDA at EUR90 million, reflecting its view of a sustainable, post-reorganisation EBITDA on which it bases the valuation of the group. Fitch applies a multiple of 5.5x to GC EBITDA to calculate an enterprise valuation after restructuring. This is comparable with multiples applied to aerospace and defence peers. It reflects the group's leading market position in the niche industry, long-term and successful cooperation with main customer Rolls-Royce, high barriers to entry and healthy profitability. The multiple reflects the group's limited geographical diversification and constrained scale. Fitch deducts about EUR40 million from the enterprise valuation for the use of factoring, in line with Fitch's criteria. Fitch estimates the amount of senior debt claims at EUR833 million, including a EUR125 million super senior secured revolving credit facility, USD825 million equivalent senior secured notes. These assumptions result in a recovery rate for the senior secured notes within a 'RR4' Recovery Rating, supporting a debt rating in line with the IDR. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - EBITDA leverage above 6.0x on a sustained basis - Neutral to negative FCF - EBITDA interest coverage sustainably below 2.0x - Loss of main customer or pricing pressure leading to structural deterioration of EBITDA margin Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Improvement of EBITDA leverage to below 6.0x would support a revision of the Outlook to Stable - Increased customer and market diversification while maintaining heathy profitability - EBITDA leverage below 5.0x on a sustained basis - FCF margin above 3% - EBITDA interest coverage sustained above 3.0x Liquidity and Debt Structure At end-March 2026, Forgital Group reported EUR12.7 million of cash and cash equivalents, down from EUR57.2 million at end-2025, due to 1Q26 being the weakest quarter of the year and the February coupon payment on the notes. Fitch expects cash and cash equivalents to be rebuilt to about EUR50 million by year-end. Fitch does not expect the EUR125 million revolving credit facility due August 2031 to be drawn over the rating horizon, with neutral FCF expected in 2027, turning positive from 2028. Issuer Profile Forgital Group is the leading manufacturer of advanced metallic forgings and large rolled rings for aerospace and industrial 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 Efesto Bidco S.p.A.. 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 ----------- ------ -------- ----- Efesto US, LLC senior secured LT B Affirmed RR4 B Efesto Bidco S.p.A. LT IDR B Affirmed B senior secured LT B Affirmed RR4 B FERRARINI SPA: Potential Buyers Must File Offers by Sept. 30 ------------------------------------------------------------ By the Order of the Court of Reggio Emilia, Insolvency Proceedings Division, Dr. Domenico Livio Trombone, the Judicial Liquidator of the Composition with Creditors of Ferrarini S.p.A. No. 3/2020, invites interested parties to submit improved irrevocable offers for the purchase of the shareholdings held by Ferrarini S.p.A. and Simest S.p.A. in the companies Ferrarini Pacific Limited (Hong Kong) and Ferrarini Spolka Z Ograniczona Odpowiedzialnoscia (Poland), to be sold together as a single lot. An irrevocable purchase offer has already been received for a total amount of EUR6,000,000 of which EUR3,636,000 relates to the Ferrarini shareholdings and EUR2,364,000 relates to the Simest shareholdings. Offers must be received by no later than noon on September 30, 2026, at the Istituto Vendite Giudiziarie di Modena, Viale Virgilio No. 42/F, in accordance with the procedures set out in the full invitation. Offers must be accompanied by a security deposit of not less than 10% of the offered price. In the event that improved offers are received, the Proceeding may launch a competitive bidding process open to interested parties. Further information and the full documentation are available from the Proceeding and on the following websites: * www.ivgmodena.it * www.astagiudiziaria.com * www.astegiudiziarie.it * www.areeindustriali it This notice does not constitute a contractual proposal or an offer to the public pursuant to Article 1336 of the Italian Civil Code. MARINAGRI: October 16 Sale Scheduled for Business Units ------------------------------------------------------- Bankruptcy No. 4/2020 offers for sale an asset identified as single lot, consisting of the business units of Marinagri located in Policoro (MT): Marinagri hotel, marina, restaurant, wine bar, shops, supermarket, caretaker's accommodation and shipyard. The base price is set at EUR15,502,746. The minimum bid is set at EUR11,627,060. The sale will be conducted on the platform www.garavirtuale.it from Oct. 16 at 3:00 p.m. to Oct. 18 at 3:00 p.m. Should no bids be received for the single lot, from Oct. 23 at 3:00 p.m. and Oct. 25 at 3:00 p.m., the sale will proceed on the platform www.doauction.it with five separate lots relating to the business units. The documentation is available on the websites www.asteannunci.it and www.pvp.giustizia.it Delegated Judge: Ms. Tiziana Caradonio Curators: Attorney Antonio de Notaristefani di Vastogirardi Mr. Cosimo Valentini Contact information: Gruppo Edicom Spa Tel: 041536991 ext. 429 Mobile: +39 3757928931 E-mail: info@doauction.com =================== L U X E M B O U R G =================== ALFA ASSET: Creditors Must File Claims by October 30 ---------------------------------------------------- By judgment of July 1, 2026, the Sixth Chamber of the District Court of and in Luxembourg, sitting in commercial matters, extended, for all creditors of Alfa Asset Management (Europe) SA (in Compulsory Liquidation), the deadline for lodging statements of claim with the registry of the Sixth Chamber of the District Court of and in Luxembourg, until October 30, 2026, by 5:00 p.m. at the latest, failing which the right to claim will he forfeited. Claims will be submitted in accordance with Article 134 of the Law of December 18, 2015, on the resolution, reorganization and winding up measures of credit institutions and certain investment firms and on deposit guarantee and investor compensation schemes, as amended. The judgment is provisionally enforceable, notwithstanding any right of appeal and without security. For further information, particularly regarding the procedure for lodging statements of claim, creditors are invited to visit the website www.aameliquidationjudiciaire.lu Alain Rukavina is the court-appointed liquidator. VENGA FINANCE: Moody's Rates New Amended Sr. Secured Term Loans B2 ------------------------------------------------------------------ Moody's Ratings has assigned B2 ratings to the proposed amended and extended Backed Senior Secured Term Loans (TLB) and the Backed Senior Secured Revolving Credit Facility (RCF) issued by Venga Finance S.a.r.l. and due in 2032 and 2031 respectively. Venga Topco S.a.r.l.'s (Marlink or the company) B2 long-term corporate family rating and B2-PD probability of default rating are unaffected. The positive outlook on both entities is also unaffected. "The proposed amend-and-extend transaction extends the current term loan maturity by three years, benefitting the company's liquidity profile, while increasing the overall debt amount by $125 million for general corporate purposes, including the repayment of the outstanding RCF and potential M&A," says Luigi Bucci, a Vice President at Moody's Ratings. "Moody's expects that the transaction will have a modestly negative impact on pro forma leverage, with a large part of the proceeds used for M&A. Organic deleveraging prospects remain intact, but the risk of more significant debt-funded acquisitions or dividend recapitalisations remains," adds Mr. Bucci. A comprehensive review of all credit ratings for the respective issuer(s) has been conducted during a rating committee. RATINGS RATIONALE Marlink's Moody's-adjusted gross leverage stood at 5.2x in 2025, or 4.6x excluding the negative impact from FX losses that Moody's expenses, following the dividend recapitalization completed during the year. For 2026, Moody's forecasts slight deleveraging towards 4.5x, with the positive impact from EBITDA growth partially offset by the proposed increase in debt. For 2027, while the company could reduce leverage further, Moody's believes there is an ongoing risk that deleveraging will be limited by additional debt-funded M&A or shareholder distributions. Moody's also forecasts free cash flow (FCF) generation to be supported by EBITDA growth, despite a continued drag from working capital. This will result in Moody's-adjusted FCF/debt of around 2%-3% in 2026, before improving to above 5% when excluding the potential negative effect of dividends. While the dividend recapitalisation completed in 2025 and the proposed transaction have slowed Marlink's deleveraging trajectory, Moody's have assessed that Marlink's credit profile is broadly unchanged because of the continued strong operating performance. Marlink's B2 CFR reflects the company's position as a leading provider of satellite communications, network management, cybersecurity and digital solutions for the maritime and enterprise sectors in remote locations. It also considers: the largely recurring nature of the company's revenues, which supports the stability of future earnings, its continued strength in EBITDA growth; and its good liquidity. These credit strengths are counterbalanced by Marlink's dependence on satellite operators to provide the satellite component of its connectivity services to end customers; the sector's intense competition and the risk of disintermediation by satellite network operators; Moody's expectations that FCF will continue to be constrained by working capital outflows; and its continued exposure to debt-funded M&A and dividend recapitalisation risk. LIQUIDITY ANALYSIS Marlink's liquidity is good. The company's liquidity profile is supported by $41 million of cash on the balance sheet as of the end of March 2026, a large $150 million RCF and long-dated maturity profile pro forma for the amend-and-extend transaction. Pro forma for the proposed transaction, Marlink has no material debt maturities until 2032, with the RCF, due 2031 fully undrawn. The RCF benefits from a springing financial covenant, under which the company maintains adequate capacity. STRUCTURAL CONSIDERATIONS The PDR is aligned with the CFR, reflecting a 50% recovery assumption. The company's debt is guaranteed by operating subsidiaries accounting for 80% of consolidated EBITDA. It is secured outside the US by share pledges, intercompany receivables and bank accounts of foreign subsidiary guarantors, as well as an English Law floating charge or a New York law security agreement over certain assets for guarantors in England and Wales. In the US, it is security granted over all assets subject to customary exclusions. Moody's have, therefore, ranked all of the company's debt highest in the priority of claims, together with the company's trade claims, lease rejection claims and pension deficit. As a result, the B2 ratings on the senior secured term loans and the RCF are rated in line with the CFR. RATIONALE FOR POSITIVE OUTLOOK The positive outlook reflects Moody's expectations of sustained revenue and EBITDA growth over the next 12–18 months. Moody's anticipates Moody's-adjusted debt/EBITDA will reduce to below 4.5x and Moody's-adjusted FCF (pre-dividends) to improve during the same period. The outlook could return to stable if the impact of the proposed transaction on credit metrics were greater than Moody's currently assume, or if Marlink were to continue undertaking dividend recapitalisations. The positive outlook does not envisage any additional shareholder distributions. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if: (1) the company establishes a track record of meeting its business plan translating into strong organic revenue and EBITDA growth; (2) its Moody's-adjusted gross leverage falls sustainably below 4.5x; and (3) Marlink generates healthy FCF translating into a Moody's-adjusted FCF/debt ratio of over 5% on a sustained basis. The ratings could be downgraded if: (1) Moody's-adjusted debt/EBITDA rises above 5.5x on a sustained basis; (2) the company's business profile weakens materially; or (3) liquidity deteriorates. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Business and Consumer Services published in February 2026. COMPANY PROFILE Marlink is a leading global satellite communication solutions and managed digital services provider primarily focused on the maritime industry. In 2025, the group reported revenues of USD791 million and company-adjusted EBITDA of USD234 million. ===================== N E T H E R L A N D S ===================== AMMEGA GROUP: Fitch Lowers Long-Term IDR to 'CCC+' -------------------------------------------------- Fitch Ratings has downgraded Ammega Group B.V. Long-Term Issuer Default Rating (IDR) to 'CCC+' from 'B-'; Fitch has also downgraded Ammega's senior secured debt rating to 'CCC+' from 'B-' with a Recovery Rating of 'RR4'. The downgrade reflects its assessment that Ammega's Fitch-adjusted EBITDA leverage will remain high at 10x-11x in 2025-2026, above its previous expectation of around 8x and the 7.5x downgrade threshold. Fitch expects leverage to decline to around 8x over the next 18-24 months, but believe this level could constrain the company's refinancing ability ahead of its 2028 debt maturities. Fitch notes the improvement in Ammega's financial profile and expects the company to begin generating positive free cash flow (FCF) from 2026, driven by management's cost-control measures and supported by an improving end-market environment. However, despite its assumptions of FCF generation of around 1%-2% and improving profitability, Fitch expects leverage to remain elevated until 2029. Key Rating Drivers Unsustainably High Leverage: A prolonged global belting market decline resulted in Ammega's leverage increasing to about 11x, which was higher than its earlier expectations of 8x and its downgrade sensitivity of 7.5x. Fitch expects the company to gradually deleverage to about 10x in 2026 and 9x in 2027 supported by revenue growth and EBITDA improvement. However, a failure to achieve clear deleveraging in the next two years, might impact Ammega's ability to refinance its revolving credit facility and senior secured credit facilities due in 2028. Cash Generation Improves: Fitch expects the company to generate positive FCF from 2026, at around 1% of revenues, following four years of negative FCF (average FCF margin of -4.6% in 2022-2025). The improvement in cash generation (FCF margin of 0.8% in 2026 vs -4.7% in 2025) is being driven by gradually improving demand as well as management's internal cost-control measures. Fitch expects management to remain prudent and the company to sustain positive FCF generation over the forecast period. Nevertheless, its forecast FCF generation is insufficient to reduce leverage below the negative rating sensitivities before 2028, even if fully directed towards debt repayment. Gradual EBITDA Recovery: Fitch forecasts Ammega's Fitch-calculated EBITDA margin recovery to 14% in 2026, up from 13.3% in 2025, and further improvement to about 17% in 2029, based on its expectation of a gradual demand recovery across the company's end-markets combined with the effects of cost-saving initiatives, reduction of one-off items and efficiency improvement measures and procurement savings implemented over the past years. Established Market Position: Fitch expects annual revenue growth in the single digits over the next four years, underpinned by demand from non-cyclical customers and supplemented by services and high replacement revenue. Fitch expects revenue to rise by around 2.6% in 2026 and 2.9% in 2027 driven by a gradually improving economic environment, especially in EMEA, which has been causing Ammega's customers to delay investment decisions. Structural Long-Term Growth in Demand: Fitch expects growth to be driven by increasing application and installation of belt products to support the rise of automation of industrial processes, and greater precision and efficiency requirements from direct end-users, original equipment manufacturers and distributors. Earnings resilience is supported by the replacement cycle for belts of up to two years, although this can vary depending on the industry of user and type of belt, and by belt upgrading, which generates about 70% of Ammega's revenue. Peer Analysis Ammega's direct competitors are larger and more diversified manufacturers, such as Forbo, Rexnord Corporation and Gates, but their belting business is smaller than or equal to the former's production capacity. Ammega is exposed to more stable and growing end-markets and generates EBITDA and FCF margins in line with these peers but it has substantially higher leverage. Ammega's profitability is on par with TK Elevator Holdco GmbH (B/Rating Watch Positive), CEME S.p.A. (B/Negative) and Ahlstrom Oyj (B/Stable), but its FCF margins are below all these peers. Ammega's EBITDA gross leverage in the range of 10-11x in 2025-2026 is materially above Ahlstrom's 6.2x, TK Elevator's 6.1x or CEME's 7.6x. Fitch’s Key Rating-Case Assumptions - Revenue to rise by around 2.6% in 2026, followed by low single-digit growth in the next three years - Fitch-adjusted EBITDA margin increasing to 14.1% in 2026, from 13.3% in 2025, and gradually to over 17% by 2029, reflecting cost-saving initiatives and recovery in the market - Capex at an average of 2.3% of revenue in 2026-2029 - Minimal working-capital outflows in 2026-2029 as working capital stabilizes - No dividend payments to 2029 Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bb-', Lower), sector characteristics ('bbb-', Moderate), market and competitive positioning ('bbb-', Moderate), diversification and asset quality ('bbb-', Moderate), company operational characteristics ('bb-', Lower), profitability ('bb-', Higher), financial structure ('ccc-', Higher), and financial flexibility ('b-', Moderate). The quantitative financial subfactors are based on standard CRT financial period parameters: 20% weight for the latest historical year 2025, 40% for the forecast year 2026 and 40% for the forecast year 2027. B+ to CC considerations apply in its analysis and has no impact. The governance assessment of 'some deficiencies' has no impact. The operating environment assessment of 'aa-' 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 Fitch's recovery analysis reflects a going-concern (GC) approach, due to a higher value in maintaining Ammega as a business after distress than from liquidation. Fitch estimates the GC value available for creditor claims at about EUR688 million, assuming GC EBITDA of EUR125million. GC EBITDA incorporates a loss of a major customer, deterioration in demand and a reduced order intake. The assumption also reflects corrective measures taken in reorganisation to offset the adverse conditions that trigger the default. Fitch used an enterprise value (EV) multiple of 5.5x, in line with the average for industrial and manufacturing peers in the 'B' rating category. This is justified by its high recurring revenue share of 70% and the critical nature of Ammega's products in all production processes. Fitch deducted about EUR80 million from the EV, due to Ammega's use of non-recourse factoring facilities in 2025, adjusted for a discount, in line with Fitch's criteria. After a 10% deduction for administrative claim, its debt waterfall analysis generated a ranked recovery in the 'RR4' band, indicating a 'B-' instrument rating. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Weaker-than-expected operating performance leading to tightening liquidity headroom - Lack of deleveraging trajectory affecting its refinancing ability Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Fitch-adjusted gross debt/EBITDA below 7.5x - Fitch-adjusted EBITDA/interest paid above 2.0x - FCF margin consistently neutral Liquidity and Debt Structure At end-1Q26, Ammega had a Fitch-adjusted cash balance of around EUR13 million and around EUR102 million undrawn under its EUR182 million revolving credit facility. Ammega does not have any major maturities due until 2028. Fitch forecasts an FCF margin of 0.8% in 2026, neutral FCF in 2027, and turning sustainably positive from 2028. Ammega's debt comprises a senior secured covenant-lite EUR966 million term loan B2 and EUR250 million add-on term loan B3, both with maturity in December 2028. The revolving credit facility matures in June 2028. Issuer Profile Ammega is the product of the merger between Ammeraal Beltech and Megadyne, which have leading positions within lightweight conveyor belts and industrial power transmission belts. Key end-markets include food, logistics and e-commerce, industrials, airports, elevators and packaging. External Appeal Committee Outcomes In accordance with Fitch's policies the Issuer appealed and provided additional information to Fitch that resulted in a rating action that is different than the original rating committee outcome. 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 Ammega Group B.V.. 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 ----------- ------ -------- ----- Ammega Group B.V. LT IDR CCC+ Downgrade B- senior secured LT CCC+ Downgrade RR4 B- DOMI 2022-1: Moody's Ups Rating on EUR5MM Class E Notes to B1 ------------------------------------------------------------- Moody's Ratings has upgraded the ratings of 10 Notes in Domi 2022-1 B.V. ("Domi 2022"), Domi 2023-1 B.V. ("Domi 2023") and Domi 2024-1 B.V. ("Domi 2024"). The Notes are backed by Dutch buy-to-let mortgage loans originated by Domivest B.V. ("Domivest", NR). Moody's affirmed the rating of the notes that had sufficient credit enhancement to maintain the current ratings. Domi 2022-1 B.V. EUR298.5M Class A Notes, Affirmed Aaa (sf); previously on Jan 10, 2024 Affirmed Aaa (sf) EUR13.3M Class B Notes, Upgraded to Aaa (sf); previously on Jan 10, 2024 Affirmed Aa1 (sf) EUR8.3M Class C Notes, Upgraded to Aa1 (sf); previously on Jan 10, 2024 Affirmed Aa3 (sf) EUR8.3M Class D Notes, Upgraded to A1 (sf); previously on Jan 10, 2024 Affirmed Baa1 (sf) EUR5M Class E Notes, Upgraded to B1 (sf); previously on Jan 10, 2024 Affirmed Caa1 (sf) Domi 2023-1 B.V. EUR242.34M Class A Notes, Affirmed Aaa (sf); previously on Feb 24, 2023 Definitive Rating Assigned Aaa (sf) EUR9.75M Class B Notes, Upgraded to Aaa (sf); previously on Feb 24, 2023 Definitive Rating Assigned Aa1 (sf) EUR9.75M Class C Notes, Upgraded to Aa1 (sf); previously on Feb 24, 2023 Definitive Rating Assigned Aa3 (sf) EUR6.96M Class D Notes, Upgraded to Aa3 (sf); previously on Feb 24, 2023 Definitive Rating Assigned A3 (sf) Domi 2024-1 B.V. EUR297.62M Class A Notes, Affirmed Aaa (sf); previously on Oct 22, 2025 Affirmed Aaa (sf) EUR12.87M Class B Notes, Affirmed Aa1 (sf); previously on Oct 22, 2025 Upgraded to Aa1 (sf) EUR6.44M Class C Notes, Upgraded to Aa3 (sf); previously on Oct 22, 2025 Affirmed A1 (sf) EUR3.21M Class D Notes, Upgraded to A2 (sf); previously on Oct 22, 2025 Affirmed Baa1 (sf) EUR1.61M Class E Notes, Upgraded to Ba1 (sf); previously on Oct 22, 2025 Upgraded to Ba2 (sf) A comprehensive review of all credit ratings for the respective transactions has been conducted during a rating committee. RATINGS RATIONALE The rating action is prompted by decreased key collateral assumptions due to better than expected collateral performance for all the affected tranches and an increase in credit enhancement for the affected tranches except Class E in Domi 2022, and Classes D and E in Domi 2024. Increase in Available Credit Enhancement Sequential amortization led to the increase in the credit enhancement available in the transactions. For instance, the credit enhancement for the Class B Notes in Domi 2022, the most senior tranche affected by the upgrade action in this transaction, increased to 11.8% from 8.7% since the last rating action in January 2024. The credit enhancement for the Class B Notes in Domi 2023, the most senior tranche affected by the upgrade action in this transaction, increased to 14.1% from 10.2% since closing. The credit enhancement for the Class B Notes in Domi 2024, the most senior tranche affected by the upgrade action in this transaction, increased to 6.4% from 5.7% since the last rating action in October 2025. Revision of Key Collateral Assumptions As part of the rating action, Moody's reassessed Moody's lifetime loss expectation for the portfolios reflecting the collateral performance to date. For Domi 2022, the performance of the transaction has remained stable since the last rating action. 90 days plus arrears currently stand at 0.22% of current pool balance showing a slight increasing trend over the past year. Cumulative losses currently stand unchanged at 0.0% of original pool balance. Based on the observed performance to date, Moody's decreased the expected loss assumption as a percentage of current pool balance to 1.0% from 1.9%. The revised expected loss assumption corresponds to 0.63% as a percentage of original pool balance (previously 1.28%). The performance of Domi 2023 and Domi 2024 has remained stable since closing. 90 days plus arrears currently stand at 0.0% of current pool balance showing a stable trend over the past year. Cumulative losses currently stand unchanged at 0.0% of original pool balance. Based on the observed performance to date, Moody's decreased the expected loss assumption as a percentage of current pool balance to 1.0% in both transactions, from 1.7% in Domi 2023, and from 1.4% in Domi 2024. The revised expected loss assumption corresponds to 0.75% as a percentage of original pool balance (previously 1.57%) in Domi 2023, and to 0.70% as a percentage of original pool balance (previously 1.14%) in Domi 2024. Moody's reassessed loan-by-loan information to estimate the loss Moody's expects the portfolios to incur in a severe economic stress scenario. Moody's also considered the servicing framework, under which Domivest acts as servicer of the portfolios and Stater Nederland B.V. ("Stater", NR) acts as sub-servicer. The overall servicing ability and stability has been classified as average. As a result, Moody's have decreased the MILAN Stressed Loss assumption to 6.9%, 8.1% and 6.7% from 8.1%, 10.0% and 7.8%, respectively for Domi 2022, Domi 2023 and Domi 2024. Counterparty Exposure The rating action took into consideration the Notes' exposure to relevant counterparties, such as the servicer, account bank or swap provider. The principal methodology used in these ratings was "Residential Mortgage-Backed Securitizations" published in October 2024. The analysis undertaken by Moody's at the initial assignment of ratings for RMBS securities may focus on aspects that become less relevant or typically remain unchanged during the surveillance stage. Factors that would lead to an upgrade or downgrade of the ratings: Factors or circumstances that could lead to an upgrade of the ratings include (1) performance of the underlying collateral that is better than Moody's expected, (2) an increase in available credit enhancement and (3) improvements in the credit quality of the transaction counterparties. Factors or circumstances that could lead to a downgrade of the ratings include (1) an increase in sovereign risk, (2) performance of the underlying collateral that is worse than Moody's expected, (3) deterioration in the notes' available credit enhancement and (4) deterioration in the credit quality of the transaction counterparties. NORMEC 1 BV: Moody's Lowers CFR to B3, Alters Outlook to Stable --------------------------------------------------------------- Moody's Ratings downgraded the corporate family rating of Normec 1 B.V. (Normec or the company) to B3 from B2 and the probability of default rating to B3-PD from B2-PD. Concurrently, Moody's downgraded to B3 from B2 the ratings on the EUR135 million senior secured revolving credit facility (RCF) maturing in 2030 and on the senior secured term loan B1 (TLB) maturing in 2031, both issued by Normec. The senior secured TLB will be upsized to EUR1,040 million following the proposed EUR125 million fungible add-on. The outlook has changed to stable from negative. The company will use the proposed EUR125 million add-on together with a EUR55 million PIK instrument to be issued at a holding company (holdco) level and outside of the senior debt restricted group, and EUR15 million of cash on balance sheet to repay EUR93 million of drawings under the RCF, and to fund upcoming M&A transactions totaling EUR102 million. "The downgrade to B3 reflects Normec's persistently elevated leverage due to higher-than-expected restructuring and integration costs which have resulted in slower deleveraging prospects," said Fernando Galeote, Moody's Ratings AVP-Ratings and lead analyst for Normec. "The stable outlook reflects Moody's expectations of improving organic revenue growth and profitability levels that will result in gradual deleveraging and improved free cash flow generation over the next 12-18 months," adds Mr. Galeote. RATINGS RATIONALE The downgrade reflects Normec's high leverage and weaker-than-expected credit metrics following an active period of acquisition-driven growth. While the company's business profile remains solid with higher scale and diversification due to recent acquisitions, operating performance has fallen short of expectations and deleveraging will be materially slower than originally anticipated. After delivering 7.1% organic growth in 2024, growth slowed to 2.8% in 2025, reflecting softer end-market conditions in certain Foodcare and Life Safety activities and weaker performance in some recently acquired businesses. Moody's nevertheless expect a gradual improvement to mid-single-digit organic revenue growth over the next 12-18 months driven by the ongoing operational improvement initiatives and recovery in some underperforming businesses. Moody's projects pro forma revenue of approximately EUR840 million in 2026, driven by mid-single-digit organic revenue growth and contribution from planned EUR100 million in acquisitions. However, profitability will be lower than expected, as the company will continue to incur high M&A, integration and restructuring costs. As a result, Moody's estimates pro forma Moody's-adjusted EBITDA to reach around EUR150 million in 2026, representing an 18% margin, lower than previously expected. Moody's projects that Moody's-adjusted free cash flow (FCF) will remain negative at EUR7 million (was negative EUR18 million in 2025), while Moody's were previously expecting positive FCF generation. Moody's estimates that Moody's-adjusted debt/EBITDA will remain around 8.0x in 2026 (in line with 2025 levels) before improving to 6.8x in 2027, supported by mid-single-digit organic growth and improving profitability levels as the group will begin to realize the benefits of its integration and operational improvement initiatives. Moody's also expects FCF to turn positive in 2027, although it will remain modest as cash generation will still be constrained by some acquisition-related expenditures and integration costs. Moody's nevertheless acknowledge the acquisitive strategy of the company, which may delay Moody's deleveraging and FCF improvement expectations. The B3 CFR continues to reflect Normec's (1) leading positions in several niche and resilient segments of the testing, inspection, certification and compliance (TICC) market; (2) diversified service offering across Foodcare, Life Safety, Sustainability and Healthcare; (3) diversified customer base with high recurring revenue and low customer churn; (4) strong barriers to entry supported by accreditation requirements and specialist expertise; and (5) positive long-term industry fundamentals driven by regulation, quality requirements and sustainability trends. The rating remains constrained by the company's (1) relatively small size compared to other rated peers; (2) exposure to the relatively mature Foodcare and Life Safety segments; (3) its high leverage levels; and (4) exposure to execution and integration risk linked to the acquisition of underperforming businesses with high margin potential. LIQUIDITY Normec has an adequate liquidity profile, with EUR75 million of available cash on the balance sheet and access to a fully undrawn EUR135 million senior secured revolving credit facility, following the proposed add-on and proceeds from the PIK. The senior secured revolving credit facility has a springing covenant set at 9.0x senior secured net leverage, tested only when the RCF is drawn at more than 40%. Normec does not have any significant debt maturity until 2030 when the RCF is due. RATING OUTLOOK The stable outlook reflects Moody's expectations that Normec will maintain its strong market position and continue to generate positive organic growth while gradually improving profitability through operational initiatives and tighter integration processes. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if the company delivers sustained mid-single-digit organic revenue growth, accompanied by margin expansion and successful integration of acquisitions, while maintaining adequate liquidity. An upgrade would require Moody's-adjusted debt/EBITDA to reduce toward 6.0x on a sustained basis; Moody's-adjusted FCF to improve to positive levels on a sustained basis; and Moody's-adjusted EBITA/interest expense to exceed 1.5x. Negative rating pressure could develop if operating performance weakens such as if the company is not able to grow organic revenues or its profitability deteriorates from current levels. A downgrade would also result from Moody's-adjusted leverage at above 8.0x on a sustained basis; FCF remaining negative and; Moody's-adjusted EBITA/interest expense below 1.0x; or liquidity deteriorating. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Business and Consumer Services published in February 2026. The net effect of any adjustments applied to rating factor scores or scorecard outputs under the primary methodology(ies), if any, was not material to the ratings addressed in this announcement. COMPANY PROFILE Normec is an independent provider of testing, inspection, certification, and compliance (TICC) services in the foodcare, life safety, sustainability, and healthcare business units focused on six geographies, including Belgium, the Netherlands, Germany, the UK, France, and Switzerland. Headquartered in Utrecht, Netherlands, the company operates more than 35 laboratories and 80 offices with around 4,000 employees. Since June 2020, the company is majority-controlled by funds managed by Astorg with a 92% shareholding in the company alongside management. VECHT RESIDENTIAL 2023-1: Moody's Ups Rating on D Notes from Ba2 ---------------------------------------------------------------- Moody's Ratings has upgraded the ratings of three Notes in Vecht Residential 2023-1 B.V. The Notes are backed by Dutch buy-to-let mortgage loans originated by Mogelijk Hypotheken B.V. (Mogelijk). Moody's affirmed the rating of the Class A Notes that had sufficient credit enhancement to maintain the current rating. EUR201.5M Class A Notes, Affirmed Aaa (sf); previously on Feb 3, 2025 Affirmed Aaa (sf) EUR9.3M Class B Notes, Upgraded to Aa1 (sf); previously on Feb 3, 2025 Affirmed Aa2 (sf) EUR6.5M Class C Notes, Upgraded to Aa3 (sf); previously on Feb 3, 2025 Upgraded to A2 (sf) EUR6.1M Class D Notes, Upgraded to Baa3 (sf); previously on Feb 3, 2025 Affirmed Ba2 (sf) RATINGS RATIONALE The rating action is prompted by decreased key collateral assumptions due to better than expected collateral performance and an increase in credit enhancement for the affected tranches. Increase in Available Credit Enhancement Sequential amortization led to the increase in the credit enhancement available in this transaction. For instance, the credit enhancement for the Class B Notes, the most senior tranche affected by the upgrade action, increased to 11.8% from 9.8% since the last rating action in February 2025. Revision of Key Collateral Assumptions As part of the rating action, Moody's reassessed Moody's lifetime loss expectation for the portfolio reflecting the collateral performance to date. The performance of the transaction has remained stable since the last rating action. 90 days plus arrears currently stand at 0.26% of current pool balance showing a slight increasing trend over the past year. Cumulative losses currently stand unchanged at 0.0% of original pool balance. Based on the observed performance to date, Moody's decreased the expected loss assumption as a percentage of current pool balance to 1.5% from 2.2%. The revised expected loss assumption corresponds to 1.11% as a percentage of original pool balance (previously 1.95%). Moody's reassessed loan-by-loan information to estimate the loss Moody's expects the portfolio to incur in a severe economic stress scenario. As a result, Moody's have maintained the MILAN Stressed Loss assumption at 8.9%. Counterparty Exposure The rating action took into consideration the Notes' exposure to relevant counterparties, such as the servicer, account bank and swap provider. The principal methodology used in these ratings was "Residential Mortgage-Backed Securitizations" published in October 2024. The analysis undertaken by Moody's at the initial assignment of a rating for an RMBS security may focus on aspects that become less relevant or typically remain unchanged during the surveillance stage. Factors that would lead to an upgrade or downgrade of the ratings: Factors or circumstances that could lead to an upgrade of the ratings include (1) performance of the underlying collateral that is better than Moody's expected, (2) an increase in available credit enhancement and (3) improvements in the credit quality of the transaction counterparties. Factors or circumstances that could lead to a downgrade of the ratings include (1) an increase in sovereign risk, (2) performance of the underlying collateral that is worse than Moody's expected, (3) deterioration in the notes' available credit enhancement and (4) deterioration in the credit quality of the transaction counterparties. =============== P O R T U G A L =============== OHI GROUP: S&P Affirms 'B' Long-Term ICR, Outlook Remains Stable ---------------------------------------------------------------- On July 23, 2026, S&P Global Ratings affirmed its 'B' long-term issuer credit and issue ratings on OHI Group S.A. and its senior secured debt. The recovery rating on the debt remains '3'. The stable outlook indicates our view that OHI's profitability and cash flow will keep improving, driven by stabilized aircraft availability and higher average medium aircraft equivalent (MACE) rates, which should support reduced leverage. S&P's 'B' rating on OHI reflects an operational recovery following a period of volatility. Helicopter operator OHI Group S.A.'s (OHI) operational performance has recovered in recent months following lower aircraft availability in 2025 and first-quarter 2026 that led to higher leverage than S&P expected. S&P said, "We expect the recovery to gain momentum, and as a result, we forecast revenue of EUR550 million in 2026 and EUR630 million in 2027, leading to gross debt to EBITDA close to 4.0x in 2026 and below 3.5x in 2027. "While the company's performance in 2025 and early 2026 was weaker than our previous expectations--primarily due to aircraft availability dropping to approximately 82% caused by aircraft manufacturer part delays and limited backup capacity--we view these as transitory issues." The rating affirmation and stable outlook account for the current elevated leverage (measured as adjusted debt to EBITDA) and liquidity constraints, while considering the signs of an operational turnaround. Recent operational improvements in aircraft availability and MACE rates support a positive trajectory for margins and revenue. Following the challenges of the previous year, OHI has made relevant progress during the first half of 2026. Most notably, group average aircraft availability rebounded to 91%-93% in the second quarter of 2026, driven by management's efforts to increase the backup fleet ratio and shorten maintenance lead times. Furthermore, improved pricing supports expanding margins. OHI achieved a 58% win rate in recent MACE tenders with an average rate of EUR8.3 million (6.4% higher than tenders won in 2025). S&P expects these improvements to underpin EBITDA growth through the rest of 2026. S&P said, "We expect OHI to meaningfully reduce leverage as operational efficiencies and cost-restructuring initiatives materialize. Although the company ended 2025 with leverage at 5.2x, higher than we previously forecast due to the availability shortfall, we now project a gradual reduction in leverage. As availability stabilizes at historical levels (above 90%) and the higher-priced contract mix gains weight, we forecast gross debt to EBITDA to decline to about 4.2x by the end of 2026. Cost-restructuring measures, including tighter selling, general, and administrative expense controls, will also support lower leverage." These measures aim to optimize the cost structure as revenue rise toward our 2027 forecast of EUR630 million. Although liquidity is tight, OHI has a manageable debt profile and is working to secure additional credit lines. Liquidity remains constrained, with a cash balance of EUR34.5 million against EUR49.6 million in short-term maturities as of first-quarter 2026. However, OHI's debt maturity profile remains well-staggered, with the primary bond maturity not due until 2029. Management is negotiating bilateral credit lines in Brazil to cover its short-term needs. S&P said, "Additionally, we continue to monitor the company's progress toward a potential IPO, but we do not incorporate the timing or proceeds of a listing into our base case due to uncertainty. "The stable outlook reflects our view that stabilized aircraft availability and higher average MACE rates could expand OHI's margins and improve its cash flow. In this context, we project a debt-to-EBITDA ratio of 4.2x in 2026 and 3.3x in 2027 and funds from operations (FFO) to debt of 11%-18% over the next two years. "We could lower the ratings if the company fails to consistently maintain aircraft availability above 90% or to sustain the expected higher average MACE rates. In this scenario, we would see weaker profitability than we expected, leading to FFO to debt consistently below 12% or increased pressure on liquidity, with negative free operating cash flow (FOCF) after lease payments. "An upgrade is not likely in the next 12 months, but we could raise the ratings if the company sustains a comfortable liquidity position while FFO to gross debt improves to above 30%." This could result from stronger and more consistent EBITDA margins, driven by optimized operational performance and higher-priced contracts, alongside the potential use of surplus cash to reduce debt. =========== R U S S I A =========== REGIONAL ELECTRICAL: Fitch Affirms 'BB' IDR, Outlook Positive ------------------------------------------------------------- Fitch Ratings has affirmed Uzbekistan-based Regional Electrical Power Networks JSC's (Regional Networks) Long-Term Issuer Default Rating (IDR) at 'BB' with a Positive Outlook. Regional Networks' rating is equalised with that of its sole parent, Uzbekistan (BB/Positive), reflecting that almost all of the company's debt is provided by the state or secured by government guarantees. Fitch expects this to remain the case. The Standalone Credit Profile (SCP) of 'ccc' reflects weak cash flow generation amid non-cost-reflective tariffs, opaque regulation leading to very limited cash flow visibility and poor standalone liquidity. Key Rating Drivers Rating Equalised with Uzbekistan: Over 90% of Regional Networks' debt at end-2025 was guaranteed by the state, leading to the rating being equalised with the state's under Fitch's Government-Related Entities (GRE) Rating Criteria. Fitch treats funds from international financial institutions, which the Ministry of Finance on-lends to the company, as equivalent to government guarantees. State-guaranteed debt falling below 75% of total debt would lead to the company's rating being notched down two levels from the sovereign rating under its GRE Rating Criteria. Assets Disposal Without Compensation: In 2025, Regional Networks transferred high voltage substations and network lines to the national electricity transmission operator, which is also fully state-owned, without cash or other compensation. As a result, the company's fixed assets at end-2025 decreased by 11% year on year and equity capital became negative. Regional Networks are in discussions with the government regarding deconsolidation of a portion of debt related to the assets transfer. Fitch treats the transaction as evidence of some deficiencies in governance, even though it does not lead to a significant weakening of the credit profile. Franklin Templeton's Action Plan: Franklin Templeton, which is the trustee and manager of the state's share in Regional Networks, proposed an action plan to restore the company's financial sustainability and transition to standalone funding. It includes implementation of cost-reflective tariffs, developing the long-term tariff framework, programmes for loss reduction and collections improvement, strengthening of governance and reduced reliance on ad-hoc government support. In its view, successful execution of the plan may lead to a multi-notch improvement of the SCP, although not in the near term. Regulatory Decisions Key: Almost all of Regional Networks' revenue and about 90% of its costs are regulated, making regulatory tariff decisions a key driver of the company's financial profile. In June 2026, the government raised energy tariffs for households by 8%-13%, depending on consumption volume, and by 10% for large corporates. However, the corresponding increase in the purchase tariff has not yet been approved, making cash flow visibility very limited. Average EBITDA margin was about 4% in 2021-2025, but volatility was high from year to year. Fitch forecasts Regional Networks' profitability to remain low and erratic under the current regulatory regime. Weak Regulation: The poor regulatory framework weighs on Regional Networks' business profile. It is characterised by low, short-term tariffs, limited transparency, the absence of a clear framework, manual cash-allocation mechanisms and political risk to tariff setting. In 2024, the company internally separated distribution and supply functions within its branches. The timing and details of the potential spin-off of supply activities to a separate legal entity remain unclear. FX Mismatch in Revenue/Debt: Regional Networks is exposed to foreign-currency risk, with 46% of its debt at end-2024 denominated in US dollars and euros and 14% in Russian roubles, while its revenue is in Uzbek soum. FX hedging instruments are limited in Uzbekistan. Fitch expects the soum's depreciation against the dollar to be modest at about 2% per year over 2026-2028. 'Very Strong' Responsibility to Support: Under the GRE criteria, Fitch assesses both decision-making and oversight and precedents of support as 'Very Strong'. The state has strong influence on Regional Networks' strategy and operations through the approval of its investment plans and the setting of electricity sale and purchase tariffs. It directly provides or guarantees nearly all of the company's debt on top of equity injections, subsidies, below-market-rate loans and favourable refinancing terms. Incentive to Support: Fitch assesses preservation of government policy role as 'Strong' as the company's default may temporarily endanger the continued provision of services due to its social function, large workforce and infrastructure renovation programme. Contagion risk is 'Not Strong Enough' as most debt is directly from the state or state banks. The company is not present in the eurobond market. Peer Analysis Regional Networks is similar to Uzbek peers Thermal Power Plants Joint Stock Company (BB/Positive, SCP: ccc) and UzbekHydroEnergo JSC (BB/Positive; SCP: b+), as more than 75% of its debt is provided or guaranteed by the state, which justifies rating equalisation with the sovereign. On a standalone basis, Regional Networks has a substantially weaker business profile than Kazakhstan Electricity Grid Operating Company (BBB/Stable, SCP: bbb-), a transmission operator in Kazakhstan. This reflects the latter's stronger regulatory framework, less depreciated asset base and materially stronger financial profile than Regional Networks, underpinned by stronger liquidity, higher profitability, lower leverage, lower FX risk and more established financial policies. Fitch’s Key Rating-Case Assumptions Key Assumptions within Its Rating Case for the Issuer - Soum depreciating by an average of 2% a year against the dollar over 2026-2028 - Tariff growth for legal entities as approved for 2026 and slightly below inflation over 2027-2028 - Tariff growth for households as approved for 2026 and in line with inflation over 2027-2028 - Electricity purchase tariffs increasing in line with the average sales tariff over 2026-2028 - Capex of about USD470 million over 2025-2028, in line with management expectations - No dividends 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+', Lower), sector characteristics ('ccc+', Higher), market and competitive positioning ('bbb', Lower), diversification and asset quality ('b+', Moderate), company operational characteristics ('b+', Moderate), profitability ('b', Moderate), financial structure ('bb+', Moderate), and financial flexibility ('ccc', Higher). The quantitative financial subfactors are based on custom CRT financial period parameters: 34% weight for the forecast year 2026, 33% for the forecast year 2027 and 33% for the forecast year 2028. B+ to CC considerations apply in its analysis and result in an adjustment of -1 notch(es). The governance assessment of 'some deficiencies' has no impact. The operating environment assessment of 'b' has no impact. The SCP is 'ccc'. To derive the Long-Term IDR: Application of Fitch's GRE Rating Criteria results in a(n) equalised, single-factor approach. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - A revision of Uzbekistan's Outlook to Stable or a downgrade of the sovereign rating, assuming the company's links with the sovereign remain unchanged, would be reflected in Regional Networks' rating - Guaranteed debt falling below 75% of debt would lead to a downgrade, assuming the SCP and government links remain unchanged Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - A sovereign upgrade, assuming the government continues guaranteeing over 75% of debt - A more transparent and predictable operating and regulatory framework (including implementation of multi-year tariffs), alongside a stronger financial profile (funds from operations gross leverage below 7x on a sustained basis) and improved liquidity, could be positive for the SCP For Uzbekistan's sensitivities see its Rating Action Commentary "Fitch Revises Uzbekistan's Outlook to Positive; Affirms at 'BB'" published 03 June 2026. Liquidity and Debt Structure At end-2025, Regional Networks had cash and cash equivalents of UZS0.6 trillion against short-term debt of UZS2.3 trillion. Fitch expects the company's standalone liquidity to remain poor and Fitch expects it to continue to roll over loans with the state and state banks or to receive waivers from related-party lenders. At end-2025, almost all of the company's debt comprised loans provided or guaranteed by the state, while the rest was from state-owned Uzpromstroybank. Debt repayment is partially embedded in the tariff formula. Fitch expects the state to continue supporting the company's liquidity by providing subsidies for capex, budget loans at below-market rates, guaranteeing investment loans or offering favourable refinancing terms. The state also controls the mechanism for splitting customers' bills between parties in the electricity value chain and for managing the company's accounts payable. Issuer Profile Regional Networks is a distribution service operator and electricity sales company in Uzbekistan, which purchases electricity from the single buyer, state-owned Uzenergosotish JSC, and then distributes or sells it to customers. Public Ratings with Credit Linkage to other ratings Regional Networks' ratings are linked to Uzbekistan's IDRs. 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 Regional Networks. ESG Considerations Regional Electrical Power Networks JSC has an ESG Relevance Score of '4' for Financial Transparency due to delays in the publication of IFRS accounts and low standards of information disclosure compared with international best practice, 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. Entity/Debt Rating Prior ----------- ------ ----- Regional Electrical Power Networks JSC LT IDR BB Affirmed BB UZBEK METALLURGICAL: Fitch Lowers LT IDR to 'B', Outlook Positive ----------------------------------------------------------------- Fitch Ratings has downgraded JSC Uzbek Metallurgical Plant's (UMK) Long-Term Issuer Default Rating (IDR) to 'B' from 'B+'. The Outlook is Positive. The downgrade reflects constrained earnings due to a slow ramp-up of the new flat steel complex over the next three to four years due to difficulties in securing raw materials and logistical constraints. Fitch expects UMK's EBITDA gross leverage to decline to below 4x only in 2028 from 7.0x in 2025, based on earnings growth. As a result, UMK's Standalone Credit Profile (SCP) has been revised to 'b-' from 'b'. Fitch currently rates UMK on a bottom-up basis plus a single-notch uplift to the SCP for state support, based on Fitch's Government Related Entities (GRE) Rating Criteria. If Uzbekistan is upgraded as signaled by its Positive Outlook, (see sovereign rating action on Uzbekistan dated 3 June 2026), its criteria would indicate a bottom-up approach plus a two-notch uplift to the SCP. Key Rating Drivers Responsibility to Support: Fitch views decision-making and oversight by the government as 'Strong', given the state's 93% stake ownership and its control over UMK's operating activity and investment programme. Fitch assesses precedents of support as 'Very Strong' as more than half of the external funding for its casting and rolling project was provided by the state. This is despite the government not guaranteeing any of UMK's debt. Further, the state has recently provided additional support to the company in various forms, enhancing its liquidity position. Incentive to Support: UMK's preservation of government policy role is 'Strong', as it accounts for 70% of all steel products produced in Uzbekistan and more than a third of steel products consumed domestically, which Fitch expects to double after the project's full ramp-up. A UMK default would undermine the development of the national steel industry and of the construction and metals and mining sectors. Fitch does not assign UMK any score for contagion risk, due to its fairly limited external debt. Support Score: UMK's overall support score is 25 out of a maximum 60, which underlines 'Strong' expectations for state support, according to its GRE Rating criteria and leads to its rating being notched up once from its SCP. High Leverage Until 2028: UMK's EBITDA gross leverage has been high for the past three years due to delays with the funding for and launch of the casting and rolling project, weaker steel margins and competition with imports in the longs segment. The slower-than-expected ramp-up of the new facility, due to insufficient feedstock procurement, direct reduced iron (DRI) or pellets and logistical constraints, means that Fitch now expects leverage to only reduce towards below 4x by 2028 (instead of 4x expected for 2026 under its previous rating case). Fitch estimates EBITDA gross leverage at 6.9x in 2026, above the negative rating sensitivity. New Project Now Operational: The new casting and rolling complex using EAF technology of Danieli with 1.0mt HRC capacity a year and costing EUR785 million started production at end-2025. In 1H26 67kt of liquid steel and 48kt of HRC were produced. Raw Material Supply Crucial: UMK is reliant on the purchase of scrap, for which it has exclusive purchase rights domestically, while a 100% scrap export duty, effective 1 July 2025, should safeguard the retention of domestic material. Inability to secure sufficient DRI will not allow a full ramp-up of the new casting and rolling complex over the medium term. UMK now plans to source DRI from Tajik Metallurgical Plant once it is commissioned in 2027, subject to timely implementation and the contemplated DRI plant. This may allow UMK to reach higher HRC production by 2029. New DRI Supply Under Consideration: UMK plans to build a direct reduced-iron plant in a joint venture with the state investment fund Uzbekistan Fund for Reconstruction and Development (UFRD). The 600kt DRI project is expected to cost USD180 million and it is currently under feasibility study. UMK's share will be 25% of the project and UFRD will hold the rest, and no recourse to UMK's balance sheet is planned. UMK's contribution is expected to be USD25 million. If the project is approved, construction could start as early as 2027. Increasing Scale/Diversification: The casting and rolling complex will double UMK's steel-making capacity to 2.1 million tons a year. This will diversify its current output of longs and grinding balls. The company is also considering the expansion of its grinding balls production capacity. Flat steel is aimed at replacing imports. UMK has a small scale with EBITDA of USD75 million in 2025. Normalising Margins: Fitch expects EBITDA margins to remain at conservative levels of USD80-85 a ton over the medium term until the company's assets achieve much higher capacity utilization and procurement bottlenecks are resolved. Peer Analysis Fitch rates UMK on a bottom-up basis with a one notch uplift from its SCP due to state support (support score of 25). UMK's 'b-' SCP is below that of JSC Almalyk Mining and Metallurgical Complex (BB/Stable; SCP: b+) and JSC Uzbekneftegaz (UNG; BB/Stable; SCP: b). Almalyk's rating is equalised with that of Uzbekistan (support score of 30). Almalyk's scale by EBITDA is larger than that of UMK and its leverage is lower, even though Almalyk is also implementing a transformative growth project (Yoshlik). Fitch sees 'Strong' contagion risk for Almalyk as the company has some debt with international lenders and expects to fund further Yoshlik expansion with additional lending from foreign financial institutions. UNG's rating is equalised with that of Uzbekistan (support score of 40). UNG's higher support score is underpinned by a large share of state-guaranteed debt, its presence in the Eurobond market and the state's control of domestic gas prices. UNG's 'b' SCP is under pressure from tight liquidity and high leverage. Fitch’s Key Rating-Case Assumptions - A double-digit increase in volumes due to the ramp-up of the casting and rolling complex towards its capacity by 2029, increase in grinding balls production and recovery in long steel sales - Average EBITDA margin of about 12.5% between 2026 and 2029 - Annual capex of about UZS250 billion in 2026-2027 before increasing to UZS700 billion in 2028 - No dividends until 2028 Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the SCP: 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 ('bb-', Moderate), profitability ('bb+', Moderate), financial structure ('ccc+', Higher), and financial flexibility ('b', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the historical year 2025, 20% for the forecast year 2026, 30% for the forecast year 2027, 30% for the forecast year 2028 and 10% 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 'b' has no impact. The SCP is 'b-'. To derive the Long-Term IDR: Application of Fitch's GRE Rating Criteria results in a bottom-up +1 approach. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Material weakening of ties with the state - EBITDA gross leverage materially above 5.5x on a sustained basis may be negative for SCP, but not necessarily for the IDR - Unremedied liquidity issues Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An upgrade of Uzbekistan - EBITDA gross leverage consistently below 4.0x, alongside high-capacity utilization of its facilities - Improvement in the liquidity profile - Strengthening ties with Uzbekistan Liquidity and Debt Structure UMK's cash balance was UZS448 billion at end-2025, based on consolidated financial statements against UZS941 billion short-term maturities. This, alongside the recently received state support in various forms, increased its cash balance towards around USD100 million at 30 June 2026. Fitch expects that available liquidity will be sufficient to cover maturities in 2026-2027 and that UMK will thereafter rely on the government or refinance upcoming maturities. Fitch forecasts largely neutral FCF in 2026-2027. UMK was in breach of net debt/ EBITDA covenants in 2025 and 1H26 under its facilities with international lenders for which It has received waivers. The company expects waivers from two other lenders soon. Issuer Profile UMK is Uzbekistan's largest state-owned steel producer of long steel products, grinding balls and with an increasing output of flat products. The company's scale is small compared to its peers. Public Ratings with Credit Linkage to other ratings UMK's IDR is notched up by one level from its SCP for state support. 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 UMK in 2035 is 51. This reflects asset concentration in one plant and average risk for steel producers and does not affect the company's rating. The risk is partly mitigated by the company's use of electric arc furnaces with generally lower emission than basic oxygen furnaces and by its new facility for flat products and hence lower emissions than its existing long steel facilities. ESG Considerations UMK has an ESG Relevance Score of '4' for Financial Transparency due to the lack of timely financial reporting and below-average quality of financial disclosure (e.g. lack of interim financials), 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. Entity/Debt Rating Prior ----------- ------ ----- JSC Uzbek Metallurgical Plant LT IDR B Downgrade B+ UZBEKISTAN AIRPORTS: Fitch Alters Outlook on 'BB' IDR to Positive ----------------------------------------------------------------- Fitch Ratings has revised the Uzbekistan Airports Joint Stock Company's (UzAirports) Outlook to Positive from Stable, while affirming its Long-Term Issuer Default Rating (IDR) at 'BB'. The change in Outlook reflects a recent similar action on Uzbekistan's sovereign Outlook. UzAirports' 'BB' IDR is equalised with that of the Republic of Uzbekistan (BB/Positive), its ultimate parent, under Fitch's Government-Related Entities (GRE) Rating Criteria. UzAirports' IDR is at the same level as its Standalone Credit Profile (SCP) is of 'bb'. The latter reflects concentrated but monopolistic operations, low leverage and revenue being partly generated by private-public partnerships (PPP) arrangements. Despite strong financial metrics, the SCP is constrained by Uzbekistan's rating, given the group's multiple ties with the domestic economic and banking system. KEY RATING DRIVERS GRE Risk Factors Decision-Making and Oversight - 'Very Strong' UzAirports is fully owned by Uzbekistan with 100% ownership by the Ministry of Economy and Finance of the Republic of Uzbekistan. Board representation enables government oversight of UzAirports' strategic planning and finances. UzAirports owns and operates all airports in Uzbekistan, but the Ministry of Economy and Finance is the ultimate decision-maker in strategic planning, finances and aviation tariffs. Fitch does not expect changes to UzAirports' government full ownership. Precedents of Support - 'Strong' A meaningful portion of UzAirports' debt is backed by the government, but the share of guaranteed debt remains below 25%. The group's full ownership by the government creates a strong alignment of interests between the Uzbek state and the wider state-owned aviation sector. UzAirports has a history of receiving government support in various forms. This was demonstrated by the allocation of UZS513.5 billion from the state budget for UzAirports' capex projects between 2022 and 2024. Preservation of Government Policy Role - 'Strong' UzAirports is essential to Uzbekistan's aviation industry and pivotal in fostering the country's economic growth as outlined in the republic's 2030 strategic plan objectives. The group's ownership of airport assets would make it difficult to replace. Contagion Risk - 'Strong' UzAirports does not have a bond market presence yet. However, Fitch believes that in an event of default on its financial obligations with external parties, there would likely be a negative impact on the reputation of the government and other GREs, affecting their ability to secure funding from the international debt market. SCP Risk Factors Revenue Risk Volume: 'Midrange' Concentrated Assets: UzAirports operates all airports in Uzbekistan, securing a monopolistic but concentrated position in a market that remains less developed than peers, with a low proportion of passengers outside the region. This risk is mitigated by strong growth in passenger volumes due to rising tourism and improving macroeconomic conditions. Aeronautical revenue accounts for most of the group's income, while non-aeronautical sources comprise less than 7%. JSC Uzbekistan Airways contributed 10% of revenue in 2025, followed by Turk Hava Yollari Anonim Ortakligi (Turkish Airlines) (BB/Stable) at 7% and Maersk Air at 6%. Revenue Risk - Price - 'Weaker' Exposure to Bilateral Commercial Contracts: A significant portion of total revenue is generated through commercial contracts, which are bilaterally negotiated, exposing income to short-term economic volatility. In addition, aviation tariffs for resident airlines (68% of 2025 passenger volumes) are set in local currency by the Ministry of Economy and Finance, based on UzAirports' proposals. The lack of regulatory guidance limits tariff predictability, and rates may fall below optimal commercial levels due to government priorities. Infrastructure Development and Renewal - 'Midrange' Adequately Maintained Airports; Flexible Capex: UzAirports is carrying out an investment programme to renovate or expand capacity at Tashkent Airport, while also considering private PPPs for upgrades at Bukhara, Namangan, and Urgench Airports. The capex is expected to accelerate passenger volume growth and retail spending at the airports. The capex remains uncommitted and can be scaled back or postponed according to market conditions. Capital investments are primarily funded by internal cash flows but also with committed facilities. Debt Structure - 1 - 'Midrange' Fully Amortising, Largely Unsecured Debt: UzAirport's corporate-like debt structure consists of a mix of amortising, secured and unsecured loans with no covenants in place. Secured debt benefits from an adequate security package. At end-2025, 11.6% of UzAirports' senior debt was guaranteed by the sovereign and 9.6% is senior unsecured, interest- free debt provided by the Ministry of Economy and Finance. Some of its debt is exposed to interest-rate risk with 20% unhedged floating-rate debt. The debt also has currency risk due to denomination in euros, US dollars, and Japanese yen. UzAirports had UZS393 billion cash at end-2025, and USD23 million and EUR25.9 million committed undrawn long- term credit facilities for future capex. Peer Analysis GRE Peers UzAirports' closest Fitch-rated GRE peers are Brussels Airport Company S.A./N.V. (BAC; A-/Stable), Salik Company PJSC (A/Stable) and Abu Dhabi Ports Company PJSC (ADP; AA-/Stable), which Fitch rates under its Transportation Infrastructure Rating Criteria and GRE Criteria. Its assessment of the three GREs results in support range score from 20 (BAC) to 35 (Salik and ADP), which determines the likelihood of government support. However, the difference in notching reflects each GRE's SCP and Fitch's assessment of the respective government's credit quality. Airport Peers Within Fitch's EMEA airport portfolio, in addition to BAC, Aena S.M.E. S.A. (A/Stable) and TAV Havalimanlari Holding A.S. (BB+/Stable) are UzAirports' closest peers. Peers are airport groups focused on leisure and origin/destination traffic. Aena's higher rating reflects its strategic importance, monopoly in Spain and no sovereign constraints. TAV's rating reflects exposure to Turkiye, structural subordination of holding company debt, diversified assets, and potential support from parent Aeroports de Paris S.A. (BBB+/Stable). RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A negative rating action of Uzbekistan's sovereign rating Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade An upgrade of Uzbekistan's sovereign rating, provided that the unconstrained SCP of UzAirports has not materially deteriorated Financial Profile The Fitch base case projects an average net debt/EBITDA ratio of 0.1x over 2026- 2030, while the Fitch rating case projects an average net debt/EBITDA ratio of 0.4x. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for UzAirports. 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 ----------- ------ ----- Uzbekistan Airports Joint Stock Company LT IDR BB Affirmed BB ========= S P A I N ========= SANTANDER CONSUMO 11: Moody's Gives Ba3 Rating to EUR90MM E Notes ----------------------------------------------------------------- Moody's Ratings has assigned definitive ratings to Notes issued by SANTANDER CONSUMO 11, FONDO DE TITULIZACION: EUR999.5M Class A1 Floating Rate Asset Backed Notes due April 2042, Definitive Rating Assigned Aaa (sf) EUR400M Class A2 Floating Rate Asset Backed Notes due April 2042, Definitive Rating Assigned Aaa (sf) Underlying Rating: Definitive Rating Assigned Aaa (sf) Financial Guarantor: European Investment Fund (Aaa) EUR121.5M Class B Floating Rate Asset Backed Notes due April 2042, Definitive Rating Assigned Aa1 (sf) EUR112.5M Class C Floating Rate Asset Backed Notes due April 2042, Definitive Rating Assigned A1 (sf) EUR76.5M Class D Floating Rate Asset Backed Notes due April 2042, Definitive Rating Assigned Baa2 (sf) EUR90M Class E Floating Rate Asset Backed Notes due April 2042, Definitive Rating Assigned Ba3 (sf) Moody's have not assigned a rating to the EUR45.0M Class F Floating Rate Asset Backed Notes due April 2042. RATINGS RATIONALE The transaction is a 12-month revolving cash securitisation of Spanish unsecured consumer loans originated by Banco Santander, S.A. (Spain) ("Santander") (A1/P-1; A2(cr)/P-1(cr)) to private obligors residing in Spain. Santander also acts as servicer, swap counterparty, collection account bank and issuer account bank provider of the transaction. The provisional portfolio consists of approximately EUR1,726.7 million of loans as of May 06, 2026 pool cut-off date. The weighted average remaining maturity of the provisional portfolio is 5.8 years and the weighted average seasoning is 0.7 years. 69.08% of the loans in this pool were used to finance living expenses, 7.24% for home improvements and 7.25% for the purchase of vehicles. All the loans are fixed-rate loans. Around 83.45% 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. Pre-approved loans require the borrower to be an active customer of Santander and meet a minimum behavioural scoring. There will also be a pre-funding period of six months with a pre-funding amount of EUR330 million to purchase additional assets. The Reserve Fund is funded to 2.5% of the collateralised notes balance at closing with the issuance of Class F Notes, and the total credit enhancement for the Class A Notes (Class A1 notes and Class A2 notes) is 24.75%. The rating of Class A1 Notes, the underlying rating of Class A2 Notes, as well as the ratings of Classes B to E Notes, are primarily based on the credit quality of the portfolio, the structural features of the transaction, and its legal integrity. In addition, the Class A2 Notes benefit from a first-demand guarantee provided by the European Investment Fund (Aaa). The transaction benefits from credit strengths such as the granularity of the portfolio, securitisation experience of Santander, a reserve fund sized at 2.5% of the total collateralized notes balance at closing, and credit enhancement provided via subordination of the Notes. However, Moody's notes that the transaction features a number of credit weaknesses, such as (i) a complex structure including interest deferral triggers for junior notes, (ii) pro-rata payments on Classes A-E Notes from the first payment date, (iii) twelve-months revolving period together with a six-months pre-funding period, which could increase performance volatility of the underlying portfolio, and (iv) the relatively high linkage to Santander, which is acting as originator, servicer, swap counterparty, account bank and paying agent. Various mitigants have been put in place in the transaction structure, such as early amortisation, sequential redemption triggers and strict eligibility criteria on both individual loan and portfolio level. Hedging: all the loans are fixed-rate loans, whereas the Notes are floating-rate liabilities. As a result, the issuer is subjected to a fixed-floating interest-rate mismatch. To mitigate the fixed-floating rate mismatch, the issuer has entered into a swap agreement with Santander. Under the swap agreement, (i) the issuer pays a fixed-rate of 2.56%, (ii) the swap counterparty pays 3M Euribor, and (iii) the payments are based on a notional amount that tracks the outstanding balance of the non-defaulted loans in the portfolio. Moody's analysis focused, among other factors, on: (i) an evaluation of the underlying portfolio of loans at closing and the incremental risk due to loans being added during the revolving and pre-funding period; (ii) the historical performance information of the total book and past Santander ABS transactions; (iii) the credit enhancement provided by subordination, excess spread, and the reserve fund; (iv) the liquidity support available in the transaction, by way of principal to pay interest and the reserve fund; and (v) the overall legal and structural integrity of the transaction. The rating action took into consideration the terms of the unconditional and irrevocable guarantee of principal and interest provided by European Investment Fund to the holders of the Class A2 Notes, using the methodology "Guarantees, Letters of Credit and Other Forms of Credit Substitution Methodology" published in July 2022 and available at https://urlcurt.com/u?l=hVpfMv. MAIN MODEL ASSUMPTIONS Moody's determined a portfolio lifetime expected mean default rate of 5.2%, expected recoveries of 15.0% and portfolio credit enhancement ("PCE") of 18.0%. The expected mean default rate 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 by us 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 mean default rate of 5.2% is in line with recent Spanish consumer loan transaction average and is 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) performance track record on most recent Santander Consumo deals, (iii) benchmark transactions, and (iv) other qualitative considerations such us the revolving period and pre-funding. Portfolio expected recoveries of 15.0% are in line with recent Spanish consumer loan 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. The PCE of 18.0% slightly higher than other Spanish consumer loan peers and is based on Moody's assessments of the pool taking into account the relative ranking to originator peers in the Spanish consumer loan market and the presence of revolving and pre-funding. The PCE of 18.0% results in an implied coefficient of variation ("CoV") of 39.40%. 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 would lead to an upgrade of the ratings include significantly better than expected performance of the pool together with an increase in credit enhancement of Notes. Factors or circumstances that could lead to a downgrade of the ratings would be (1) worse than expected performance of the underlying collateral; (2) deterioration in the credit quality of Santander; and (3) an increase in Spain's sovereign risk. =========== S W E D E N =========== RECIPHARM HOLDING: Fitch Assigns 'B(EXP)' IDR, Outlook Stable ------------------------------------------------------------- Fitch Ratings has assigned Recipharm Holding GmbH (Recipharm or the group) an expected Long-Term Issuer Default Rating (IDR) of 'B(EXP)' with a Stable Outlook. Fitch has also assigned an expected senior secured rating to Roar Finco S.a.r.l.'s proposed EUR880 million term loan B (TLB) of 'B+(EXP)', with a 'RR3' Recovery Rating. As part of a reorganisation, Recipharm will fully own Roar Bidco AB (B/Stable) and Recipharm AB, the Stockholm-based contract development and manufacturing organisation (CDMO). Recipharm's final ratings are subject to establishing its new capital structure with terms materially conforming to information received by Fitch as well as the concurrent repayment of all outstanding Roar Bidco's debt, upon which Fitch expects to withdraw Roar Bidco's ratings. Recipharm's IDR reflects high leverage, balanced against a strong position in the growing CDMO market. The Stable Outlook reflects expected profitable growth leading to EBITDA leverage below 5.0x from 2027. Key Rating Drivers Refinancing to Support Bespak Separation: Recipharm recently launched a refinancing transaction to support the separation of Bespak from the company. The company is looking to sign a new EUR880 million seven-year syndicated TLB, the proceeds of which will be used to repay a proportional share of Roar Bidco's current outstanding EUR1.3 billion TLB balance allocated to Recipharm standalone, a drawn portion of a revolving credit facility (RCF), and to pay a shareholder distribution plus transaction fees. The existing RCF will also be replaced by a new 6.5-year RCF of up to EUR200 million. Bespak is the advanced delivery systems business previously housed under Recipharm AB. It was separated from Recipharm AB in April 2024, but remains within Roar Bidco's current restricted group. Following completion of the refinancing and restructuring, Bespak will be fully separated from Recipharm's restricted group and finance its own business independently. Fitch views the reorganisation as neutral to the ratings, with the associated reduction in operational scale offset by debt reduction. Improved Operating Leverage Drives Margins: Fitch anticipates Recipharm's EBITDA margin will resume a positive trend after a small decline in 2026, given the separation of the structurally earnings-accretive Bespak operations. New contracts signed in the past two years will increase capacity utilisation at Recipharm AB's facilities while improving the product mix, with highly complex products increasing the share of revenue. This will help lift Fitch-defined EBITDA margins to 23.5% in 2029 from 20% in 2026. Increased commercial activities carry a lag of 12-24 months between signing a contract and start of sales contribution, given the investments and technology transfers that need to take place. Fitch expects the capacity utilisation rate to improve once its recently signed contracts start to ramp up, supporting mid-to-high single-digit organic growth over 2027-2029. FCF to Turn Positive: Fitch forecasts negative free cash flow (FCF) in 2026 as Recipharm has upfront investment tied to recently signed contracts. The company has exited a heavy investment cycle to increase its manufacturing capacity, and Fitch estimates capex intensity will normalize at around 6%-7%% from 2027, down from a previous peak of above 10% in 2026. Any additional investment in support of new customer contracts will be shared with clients, mitigating the cash flow impact, supporting future growth and helping underpin Fitch's expectation of positive mid-single digit FCF margins over 2027-2029. Deleveraging Capacity: The expected rating reflects its view that Recipharm's new capital structure will not meaningfully increase leverage, with forecast EBITDA leverage at 5.5x in 2026, versus 5.4x in 2025. Fitch continues to view Recipharm's underlying business profile as robust, despite its smaller scale after the Bespak separation, underpinned by gradually improving capacity utilisation, rising profitability and deleveraging potential. Fitch forecasts Recipharm's EBITDA leverage to decline to about 4.8x in 2027, comfortably within its 'B' rating sensitivities. The deleveraging trajectory will be driven by EBITDA growth, as Fitch expects new contract conversion to support business expansion. Defensive Operations, Established Market Position: Recipharm's rating is supported by its defensive business model, established market position, and high barriers to entry. Setting up a contract manufacturer requires significant upfront investment, technological knowledge, regulatory approval and time to build reputation. These factors translate into robust underlying demand for Recipharm, with a record of longstanding relationships with its main customers mitigating some current customer concentration in its operations. Fragmented Market, Large Customers: The CDMO market is fragmented, with the 10 largest manufacturers accounting for less than 20% of the overall market. Recipharm is the fourth-largest CDMO globally in sales, but it still represents only 1%-2% of the total global market. Large global pharma customers typically have strong bargaining power in new contract negotiations, especially in high-volume generics, which the CDMO offsets by the length of the contracts and technology transfer to its facilities. Peer Analysis Fitch regards other CDMOs, such as European Medco Development 3 S.a.r.l. (Axplora; B-/Stable), F.I.S. Fabbrica Italiana Sintetici S.p.A. (FIS; B+/Stable), Kepler S.p.A. (Biofarma; B/Stable), and Triley Midco 2 Limited (Clinigen; B/Negative), as Recipharm's closest peers. The peer group relies on ongoing investments to grow at or above the market and to maintain operating margins. Recipharm has larger scale than most of the peers mentioned above, and a stronger business profile focused on prescription-drug manufacturing and sterile fluids. Fitch forecasts that Recipharm - after the Bespak separation - will be larger in scale than Biofarma and Axplora, and similar to FIS. Profitability across the peer group is similar, though Recipharm's profitability had been volatile through the past decade after some loss of contracts and inflationary pressures led to EBITDA margins in the low teens. FIS has better capacity utilisation and a longer record of growth, which is reflected in its lower leverage and its one-notch higher rating. Fitch’s Key Rating-Case Assumptions The rating case assumptions relate to Recipharm's expected ratings reflecting its new capital structure (following the Bespak separation): - Low single-digit organic revenue growth in 2026 and mid-to-high single-digit organic revenue growth during 2027-2029, driven by increased activity across all divisions as Recipharm ramps up recently signed contracts - Fitch-adjusted EBITDA margins up slightly at 20.5% in 2026, gradually improving to 23.5% by 2029 - Capex at above 10% of revenue in 2026, reflecting front-loaded investments for new contracts. Capex to remain at 6.5%-7.5% of sales in 2027-2029 - Working capital outflows close to EUR10 million in 2026, gradually increasing in the following years to support increased commercial activity 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+', Lower), market and competitive positioning ('bb+', Moderate), diversification and asset quality ('bb+', Moderate), company operational characteristics ('bb', Higher), profitability ('bb+', Moderate), financial structure ('b', 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 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'. 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 Recipharm would be reorganised as a going concern (GC) in bankruptcy rather than liquidated. Fitch has revised GC EBITDA to EUR130 million, from EUR164 million, to reflect the separation of Bespak's operations. The GC EBITDA reflects weak operating performance with regulatory issues or increased competition leading to deteriorating margins. The assumption also reflects corrective measures taken in reorganisation to offset the adverse conditions that may have triggered the default. Fitch continues to apply a multiple of 6.0x to GC EBITDA to calculate a post-reorganisation an enterprise value (EV). The multiple reflects positive market fundamentals, a defensive business model with long-term customer contracts and high switching costs, but also some commoditisation within the solids business. Fitch assumes the proposed EUR200 million RCF will be fully drawn upon default. It has a EUR150 million non-recourse factoring facility, of which Fitch estimates 50% would remain available in distress. The RCF and the EUR880 million first-lien TLB rank pari passu among themselves in the debt waterfall. Assuming a 10% administrative claim, the allocation of value in the liability waterfall results in recoveries corresponding to 'RR3' for the first-lien RCF and TLB. This indicates a 'B+' instrument rating for the first-lien TLB based on current metrics and assumptions. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Weak operating performance, product or regulatory issues or change in M&A or investment discipline leading to weaker EBITDA margins - EBITDA leverage above 6.0x on a sustained basis - EBITDA interest coverage below 2.0x on a sustained basis - Neutral to negative FCF margins, reducing liquidity headroom Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Larger scale, increased high-tech offering or increased geographical diversification while maintaining EBITDA margins above 20% on a sustained basis - EBITDA leverage trending towards 4.5x, supported by a commitment to a conservative financial policy - Mid-single digit FCF margins Liquidity and Debt Structure As of end-May 2026, Recipharm, excluding Bespak, had about EUR39 million in cash balance (after Fitch treats about EUR4 million of cash as not readily available). While Fitch expects negative FCF generation in 2026, Fitch does not see any liquidity risks, due to its solid cash balance and full availability under its proposed EUR200 million RCF. Fitch believes liquidity is adequate to cover interest costs and investment plans, strengthened by positive FCF generation from 2027 onwards, once capex normalises. The refinancing will also reduce Recipharm's near-term refinancing risk with its new TLBs maturing in 2033. Issuer Profile Recipharm, headquartered in Stockholm and founded through a management buy-out from Pharmacia in 1995, is one of the five largest pharmaceutical CDMO globally. 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 Recipharm Holding. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery ----------- ------ -------- Roar Finco S.a r.l senior secured LT B+(EXP) Expected Rating RR3 Recipharm Holding GmbH LT IDR B(EXP) Expected Rating =========== T U R K E Y =========== EREGLI DEMIR: Moody's Affirms 'B2' CFR, Alters Outlook to Positive ------------------------------------------------------------------ Moody's Ratings has affirmed Eregli Demir ve Celik Fabrikalari T.A.S.'s (Erdemir) long-term corporate family rating of B2, probability of default rating of B2-PD, and national scale long-term corporate family rating of A3.tr. Moody's have also affirmed the B2 instrument rating on Erdemir's senior unsecured notes. The outlook was changed to positive from stable. RATINGS RATIONALE The rating action reflects the material strengthening of Erdemir's liquidity profile, with cash and cash equivalents increasing to around $2.8 billion as of March 31, 2026, supported by a recovery in operating performance following the completion of key investment projects and higher production utilization rates. This liquidity build-up also benefited from a substantial working capital release that Moody's do not expect to reverse, as well as lower than anticipated capital spending during 2025. Moody's believes Erdemir's credit profile will continue to improve over the next 12-18 months as profitability recovers and liquidity remains strong. Capital spending will remain elevated at around $0.8 billion annually on average during 2026-28 to support the company's green transformation strategy, albeit below the approximately $1.0 billion annual average recorded during 2023-24. Moody's also expects the company's measured dividend policy to continue to support financial flexibility and internal cash flow generation. Erdemir's B2 ratings reflect (1) its leading position in Turkiye's flat steel market; (2) some flexibility in redirecting sales to export markets if domestic steel demand declines; (3) a relatively low fixed-cost base that has historically allowed the company to remain profitable through periods of declining steel prices; (4) manageable foreign-currency risk because most of the company's debt, cash and revenue are denominated in or linked to the US dollar; and (5) its strengthened liquidity profile and Moody's expectation of continued improvement in credit metrics, with Moody's-adjusted debt/EBITDA declining to around 4.5x by 2027 from around 5.7x as of the LTM period ended March 2026, and EBIT interest coverage increasing to around 1.5x from around 1.1x over the same period. In addition, Erdemir's elevated cash balances support strong Moody's-adjusted net debt/EBITDA of around 1.3x as of March 31, 2026. Moody's expects the ratio to remain around 2.0x over the next 12-18 months under Moody's base case. The ratings also incorporate (1) the company's material exposure to the Government of Turkiye's economic, political, legal, fiscal and regulatory environment; (2) exposure to volatile steel and feedstock prices; (3) the cyclical nature of the company's end markets, including its moderate reliance on the domestic construction and automobile industries; and (4) elevated capital spending requirements to support the company's green transformation strategy, which Moody's expects will continue to result in negative free cash flow over the next 3 years despite lower dividend distributions than historically. Erdemir's liquidity profile has strengthened over the last 12-18 months. As of March 31, 2026, the company held approximately $2.8 billion of cash and cash equivalents. Together with Moody's expectations of operating cash flow generation, available liquidity is sufficient to cover around $885 million of capital spending, $1.8 billion of debt repayments and around $140 million of dividend distributions over the next 18 months. The company's debt maturity profile has also improved materially following its inaugural $950 million bond issuance in 2024. The issuance extended debt maturities and substantially reduced short-term debt. OUTLOOK The positive outlook reflects Moody's expectations that Erdemir's credit profile will continue to improve over the next 12-18 months, supported by elevated cash balances, sound financial policies and improving operating performance, while the company continues to execute its green transformation investment programme. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS A rating upgrade could arise if the current material improvements in Erdemir's liquidity profile are sustained with structurally lower reliance on short-term debt. This would also require improvement in Erdemir's operating and financial performance with the company exhibiting healthy credit metrics such that Moody's adjusted debt/EBITDA is sustained below 4.0x and Moody's adjusted EBIT to interest expense is sustained above 2.0x. Moody's would consider a downgrade of the rating if Erdemir's liquidity profile materially weakens on a sustained basis. Downward pressure could also arise if the company's operating and financial performance further deteriorates such that Moody's adjusted debt/EBITDA remains above 5.0x and Moody's adjusted EBIT to interest expense remains below 1.5x on a sustained basis. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Steel published in September 2025. The company's scorecard-indicated outcome is Ba3. While Erdemir's liquidity profile has strengthened materially and Moody's expects credit metrics to continue improving, the two-notch difference between the scorecard-indicated outcome and the B2 CFR reflects elevated capital spending requirements associated with the company's green transformation strategy, which Moody's expects will continue to result in negative free cash flow over the coming years. TURKIYE: Fitch Affirms 'BB-' Long-Term IDR, Outlook Stable ---------------------------------------------------------- Fitch Ratings has affirmed Turkiye's Long-Term Issuer Default Ratings (IDR) at 'BB-' with a Stable Outlook. The ratings are constrained by Turkiye's record of very high inflation, low external liquidity relative to high financing requirements, weak governance, and repeated episodes of political interference in monetary policy that precipitated crises marked by dollarisation and capital flight, and damaged policy credibility. The ratings are supported by Turkiye's low government debt, large and diversified economy, high GDP per capita relative to the 'BB' peer group median, its record of sustaining access to external financing through periods of stress, and resilient banking sector. Key Rating Drivers Very High Inflation: Fitch projects inflation will fall from 32% in June to 29.5% at end-2026 and 18% at end-2028, still the highest of any sovereign it rates. Inflation expectations remain elevated, adding to risks that any sharp policy easing severely worsens inflationary, macro and external pressures. Maintenance of Moderately Tighter Policy: The Central Bank of Turkiye's (CBRT) 300bp increase in the cost of funding and recent tightening of credit caps have helped support a partial recovery in international reserves, following large FX interventions to stabilise the lira early in the US-Iran conflict. Fitch projects gross FX reserves will end 2026 slightly above the current level, at USD167 billion, USD17 billion higher than the March trough but almost USD45 billion below the pre-war position. Net FX reserves, excluding swaps, have similarly fallen, to USD43 billion, albeit still well above the 2024 low of minus USD66 billion. FX Reserves Below Peer Median: The decline in reserves was driven by non-resident capital outflows and the lower gold price, and CBRT has boosted liquid reserves through near USD20 billion of gold sales and swaps. Fitch forecasts the current account deficit (CAD) will widen 1.1pp in 2026 to 3% of GDP on weaker energy and tourism balances, and remain at that level in 2027 due to stronger imports. Fitch projects gross international reserves will fall to 3.9 months of current external payments at end-2027, from 5.0 months at end-2025, below the projected 'BB' median of 4.9 months. Policy Risk Ahead of Elections: Fitch anticipates a moderate stimulus ahead of elections Fitch assumes are brought forward to late-2027. This includes a lower but still positive real policy interest rate, temporary fiscal easing and credit stimulus, but not a return to highly unorthodox policy. Nevertheless, Fitch sees sizeable downside policy risks, given Turkiye's history of destabilising shifts to excessive easing, such as in 2022/2023, likely influenced by President Erdogan's view of interest rates. Exchange Rate Helps Contain Dollarisation: The deposit dollarisation ratio edged down to 38% in June, and has been broadly stable since dropping 33pp from mid-2022 to end-2024 (including FX-protected deposits). Fitch anticipates the CBRT will continue to prioritise maintaining a gradual path of nominal lira depreciation, the pace of which has picked up slightly since April, and to use macro-prudential tools to support lira deposits. In its view, containing dollarisation will become more challenging as the next presidential election approaches. Relatively High External Financing Requirement: External debt maturing over the next 12 months is high relative to FX reserves, at USD242 billion (USD178 billion excluding trade credits). Fitch forecasts external liquidity (the ratio of liquid assets to short-term liabilities) will improve to near 100% at end-2026, but still well below the 'BB' median of 151%. Risks are mitigated by the resilience of banking and corporate external debt rollover ratios, which were 112% and 182%, respectively, in May. Low Government Debt: Fitch forecasts the general government deficit to increase by 0.2pp in 2026 to 3.3% of GDP due to fuel price support and higher debt service, and further to 4% of GDP in 2027 on pre-election social spending. Fitch projects general government debt will increase only marginally to 25% of GDP in 2028, less than half the 'BB' median of 51%. GDP Growth Slows: Fitch assesses Turkiye's potential growth rate at close to 4%. Domestic demand cooled in 1H26 and Fitch forecasts GDP growth slows 0.8pp in 2026 to 2.8%, before accelerating to 4.4% in 2027. Political and Geopolitical Risk: The moderate capital outflows after May's court annulment of the election of the main opposition party leader Ozgur Ozel reinforced its view that there is lower potential for political events to trigger instability on the scale of last year's jailing of Ekrem Imomoglu, but sizeable risks remain ahead of the election. Efforts since mid-2025 towards Kurdish reconciliation have reduced domestic security risks and enhanced President Erdogan's electoral prospects, but could be derailed in the event of protracted regional instability. Relations with the US have improved, and Turkiye has effectively balanced international relations during the Iran war. ESG - Governance: Turkiye has a low World Bank Governance Indicators (WBGI) ranking at the 31st percentile, which includes a moderate level of rights for participation in the political process, moderate but deteriorating institutional capacity due to increased centralisation of power, and uneven application of the rule of law. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - External: A sizeable decline in international reserves, or a significant deterioration in the composition of reserves, for example, due to a markedly wider CAD on sustained high energy prices, market confidence shock and/or a sharp rise in deposit dollarisation - Macro: Greater inflationary, balance-of-payment and macro-financial pressures, for example, from a destabilising policy easing cycle or return to a more unconventional policy mix - Structural: Deterioration of the domestic political or security situation and international relations that affect the economy and external finances, for example, from a pre-election political shock triggering widespread public unrest, capital flight or dollarisation Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - External: Sizeable and durable strengthening of the sovereign's external buffers, especially if combined with a sustained reduction in external financing requirements - Macro: Greater confidence in the maintenance of policy settings that are sufficiently tight to support a marked decline in inflation over time and a reduction in macro and balance-of-payment risks Sovereign Rating Model (SRM) and Qualitative Overlay (QO) Fitch's proprietary SRM assigns Turkiye a score equivalent to a rating of 'BB+' on the Long-Term Foreign-Currency (LTFC) IDR scale, up from 'BB' at the previous committee. Fitch's sovereign rating committee adjusted the output from the SRM score to arrive at the final LTFC IDR by applying its QO, relative to SRM data and output, as follows: Macro: -1 notch, to reflect a track record of repeated political interference in macro-economic policy settings, which has led to inflation volatility and external instability. Still-elevated inflation expectations add to the risk of a return to instability in the event of renewed policy mistakes or reversal. - External: -1 notch, to reflect Turkiye's low and volatile external liquidity relative to high financing requirements, and vulnerability to renewed pressures in the event of domestic or external shocks, which have been highlighted since 2025 and are not fully captured by the new higher SRM score. Fitch's SRM is the agency's proprietary multiple regression rating model that employs 18 variables based on three-year centred averages, including one year of forecasts, to produce a score equivalent to a LTFC IDR. Fitch's QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within its criteria that are not fully quantifiable and/or not fully reflected in the SRM. Debt Instruments: Key Rating Drivers Senior Unsecured Debt Equalised: The senior unsecured long-term debt ratings are equalised with the applicable Long-Term IDR, as Fitch assumes recoveries will be 'average' when the sovereign's Long-Term IDR is 'BB-' and above. No Recovery Ratings are assigned at this rating level. Country Ceiling The Country Ceiling for Turkiye is 'BB-', in line with the LTFC IDR. This reflects no material constraints and incentives, relative to the IDR, against capital or exchange controls being imposed that would prevent or significantly impede the private sector from converting local currency into foreign currency and transferring the proceeds to non-resident creditors to service debt payments. Fitch's Country Ceiling Model produced a starting point uplift of '0' notches above the IDR. Fitch's rating committee did not apply a qualitative adjustment to the model result. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for Türkiye. ESG Considerations Turkiye has an ESG Relevance Score of '5' for Political Stability and Rights as WBGI have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and a key rating driver with a high weight. As Turkiye has a percentile rank below 50 for the respective Governance Indicator, this has a negative impact on the credit profile. Turkiye has an ESG Relevance Score of '5' for Rule of Law, Institutional & Regulatory Quality and Control of Corruption as WBGI have the highest weight in Fitch's SRM and are therefore highly relevant to the rating and are a key rating driver with a high weight. As Turkiye has a percentile rank below 50 for the respective Governance Indicators, this has a negative impact on the credit profile. Turkiye has an ESG Relevance Score of '4' for Human Rights and Political Freedoms as the Voice and Accountability pillar of the WBGI is relevant to the rating and a rating driver. As Turkiye has a percentile rank below 50 for the respective Governance Indicator, this has a negative impact on the credit profile. Turkiye has an ESG Relevance Score of '4+' for Creditor Rights as willingness to service and repay debt is relevant to the rating and is a rating driver for Turkiye, as for all sovereigns. As Turkiye has a record of 20+ years without a restructuring of public debt and captured in its SRM variable, this has a positive impact on the credit profile. 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 ----------- ------ ----- Turkiye LT IDR BB- Affirmed BB- ST IDR B Affirmed B LC LT IDR BB- Affirmed BB- LC ST IDR B Affirmed B Country Ceiling BB- Affirmed BB- senior unsecured LT BB- Affirmed BB- Senior Unsecured-Local currency LT BB- Affirmed BB- Hazine Mustesarligi Varlik Kiralama Anonim Sirketi senior unsecured LT BB- Affirmed BB- ZORLU ENERJI: Moody's Affirms 'B3' CFR, Alters Outlook to Negative ------------------------------------------------------------------ Moody's Ratings has changed the outlook to negative from stable on Zorlu Enerji Elektrik Uretim A.S. (Zorlu Enerji). Concurrently, Moody's affirmed Zorlu Enerji's B3 long-term corporate family rating and B3-PD probability of default rating, as well as the B3 rating on the backed senior unsecured notes issued by Zorlu Enerji. RATINGS RATIONALE The change in outlook to negative reflects Zorlu Enerji's increase in financial leverage and weak cash flow generation, balanced against management's commitment to improving liquidity through further disposals. In Q1 2026, Zorlu Enerji's leverage increased, with management-calculated net debt to EBITDA of 4.0x and financial debt of almost $1.3 billion. The operating environment remained challenging in the second quarter, as wholesale power prices declined while inflation and interest rates remained high. More positively, the electricity distribution tariff rose by 32% in April, and power prices have started to increase, supported by higher demand and lower hydropower generation. Moody's expects Zorlu Enerji's earnings to improve in the second half of 2026, but EBITDA for the year to fall short of that for 2025. Given planned investments, Moody's expects free cash flow to remain negative and estimate Zorlu Enerji's net debt to EBITDA in the 4.5x-5.0x range as of end-December 2026. The increase in leverage is credit negative, but management remains committed to bolstering the company's cash flow. Zorlu Enerji has a good track record of executing asset sales, and further disposals could allow it to reduce borrowings and improve liquidity. However, execution risks remain, the timing of any additional disposals is uncertain and further asset sales will be at the expense of future earnings. The affirmation of the B3 ratings considers (1) Zorlu Enerji's diversification and high share of regulated and contracted earnings, (2) the solid operational performance of its renewable power plants and supportive features of the regulatory framework for distribution activities, and (3) the company's track record of executing asset sales and management's commitment to taking further steps to support cash flow. The ratings are, however, constrained by (1) the limited remaining life of contracted earnings and the expected increase in the group's exposure to wholesale power markets, (2) features of the electricity distribution regulatory model, which may not allow for timely cost recovery in a high-inflation environment, (3) the high debt burden, coupled with volatile and weak cash flow generation amid relatively high financing costs and sizeable investment plans, and (4) liquidity, which includes some reliance on short-term borrowings. The ratings also consider Zorlu Enerji's relatively small size and degree of asset concentration in the power generation segment, the company's exposure to a volatile operating environment in Turkiye, and its governance, given its majority ownership by the Zorlu Holding group. Moody's understands that the recent entry of Vestel Elektronik Sanayi Ve Ticaret A.S. (Vestel, Caa3 negative), a subsidiary of the Zorlu Holding group, into restructuring negotiations with its Turkish banking lenders does not directly affect Zorlu Enerji, although it indicates broader challenges facing the group. Zorlu Enerji has its own debt structure, and debt linkages are limited and relate to Zorlu Holding as a guarantor of certain loans. Zorlu Enerji's trade receivables from Vestel amounted to TRY119 million as of end-March 2026. Moody's will continue to reassess the impact of these developments on Zorlu Enerji. LIQUIDITY As of end-March 2026, Zorlu Enerji had cash and cash equivalents of around TRY1.9 billion on its balance sheet. The company also held financial investments totaling about TRY1.7 billion, primarily in restricted deposits. The company's $1.1 billion bond is scheduled to begin amortising in October 2027. However, Zorlu Enerji's debt obligations also include short-term borrowings and bank loans that amortise before the bond. The company reported short-term borrowings, including the current portion of long-term borrowings and accrued interest, of TRY11.5 billion as of end-March 2026. Given planned investments and Moody's expectations of negative free cash flow, Moody's expects Zorlu Enerji to continue to rely on the ongoing rollover of short-term facilities and to require additional sources of financing, unless it implements measures that strengthen cash flow. RATING OUTLOOK The negative outlook reflects the risks associated with Zorlu Enerji's debt levels and uncertainty around the company's ability to strengthen cash flow against the backdrop of a weak operating environment and high financing costs. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Given the negative outlook, a rating upgrade is unlikely. Moody's could change the outlook to stable if Zorlu Enerji appeared likely to improve its cash flow generation, reduce financing costs, and sustainably strengthen its balance sheet and liquidity. The ratings could be downgraded if (1) there were concerns about Zorlu Enerji's liquidity, (2) the company increased borrowings without clear prospects for deleveraging, or (3) there was no clear visibility on potential measures management may take to improve cash flow and reduce borrowings. The principal methodology used in these ratings was Unregulated Utilities and Power Companies published in August 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. Domiciled in Istanbul, Turkiye, Zorlu Enerji Elektrik Uretim A.S. is an integrated energy group whose activities comprise renewable power generation, electricity distribution and supply. The group has installed renewable capacity of around 430 megawatts (MW) in Turkiye, where it is also one of 21 electricity distribution operators and delivers electricity to more than 2 million subscribers. In addition, the company has a limited international presence. Zorlu Enerji is listed on the Istanbul Stock Exchange, but it is ultimately controlled by Zorlu Holding, a privately owned Turkish conglomerate, which directly and indirectly owns 50.3% of Zorlu Enerji's share capital. =========================== U N I T E D K I N G D O M =========================== CCOS (UK): Leonard Curtis Appointed as Joint Administrators ----------------------------------------------------------- CCOS (UK) Ltd, trading as Car.co.uk Services (formerly Car.co.uk Services Limited), was placed into administration in the High Court of Justice, Business and Property Court in Manchester, Insolvency & Companies List (ChD), Court Number CR-2026-MAN-001061. Mark Colman and Megan Singleton of Leonard Curtis were appointed as Joint Administrators on July 14, 2026. The company specialized in the sale of motor vehicles. Its registered office is at 5 Parkgate, 117 Liverpool Road, Longton, Preston, PR4 5AA. Its principal trading address is Dynamic House, 151 Sutton Road, St Helens, WA9 3DR. The Joint Administrators can be contacted at: Mark Colman Megan Singleton Leonard Curtis 20 Roundhouse Court South Rings Business Park Bamber Bridge Preston PR5 6DA Further details contact: The Joint Administrators Email: Creditors.Preston@leonardcurtis.co.uk Alternative contact: Tom Young DAMASK CATERING: Begbies Traynor Appointed as Administrators ------------------------------------------------------------ Damask Catering 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-2026-005564. Andrew Andronikou and Irvin Cohen of BTG Begbies Traynor (London) LLP were appointed as Administrators on July 15, 2026. The company specialized in other food services. Its registered office is at Jubilee House, Townsend Lane, London, NW9 8TZ. Its principal trading address is 19 Gorst Road, Ealing, London, NW10 6LA. The Administrators can be contacted at: Andrew Andronikou Irvin Cohen BTG Begbies Traynor (London) LLP Level 33 One Canada Square London E14 5AB Further details contact: Emily Clark BTG Begbies Traynor (London) LLP Tel: 020 7516 1500 Email: Emily.Clark@btguk.com E5 LIVING (GRIMSBY): FRP Advisory Appointed as Administrators ------------------------------------------------------------- E5 Living (Grimsby) Limited was placed into administration in the High Court of Justice, Court Number CR-2026-005433. Paul David Allen and David Hudson of FRP Advisory Trading Limited were appointed as Joint Administrators on July 10, 2026. The company specialized in the development of building projects. Its registered office is at The Coach House, Oldberrow Manor, Ullenhall Lane, Ullenhall, B95 5PF and is to be changed to c/o FRP Advisory Trading Limited, 3rd Floor, 110 Cannon Street, London, EC4N 6EU. Its principal trading address is The Coach House, Oldberrow Manor, Ullenhall Lane, Ullenhall, B95 5PF. The Joint Administrators can be contacted at: Paul David Allen David Hudson FRP Advisory Trading Limited 3rd Floor 110 Cannon Street London EC4N 6EU Further details contact: The Joint Administrators Tel: 020 3005 4244 Alternative contact: George Shallcross Email: cp.london@frpadvisory.com ELDENS FINANCE: Antony Batty Appointed as Administrators -------------------------------------------------------- Eldens Finance Limited, trading as Eldens (formerly Coin Fintech Limited), was placed into administration in the High Court of Justice, Court Number CR-2026-005263. William Antony Batty and Hugh Jesseman of Antony Batty & Company LLP were appointed as Administrators on July 6, 2026. The company specialized in other service activities. Its registered office is at c/o Dafferns, One Eastwood, Harry Weston Road, Binley Business Park, Coventry, CV3 2UB. The Administrators can be contacted at: William Antony Batty Hugh Jesseman Antony Batty & Company LLP Swan House 9 Queens Road Brentwood Essex CM14 4HE Further details: Paul McFarlane Tel: 01277 230347 Email: paul@antonybatty.com JOHN LEWIS OF HUNGERFORD: BK Plus Appointed as Joint Administrators ------------------------------------------------------------------- John Lewis of Hungerford Limited (formerly John Lewis of Hungerford PLC) was placed into administration in the High Court of Justice, Business and Property Courts in England and Wales, Insolvency and Companies List, Case Number CR-2026-005295 of 2026. Simon Wall and Andreas Arakapiotis of bk plus Limited were appointed as Joint Administrators on July 7, 2026. The company specialized in the manufacture of kitchen furniture and other furniture. Its registered office and principal trading address is Grove Business Park, Downsview Road, Wantage, Oxfordshire, OX12 9FA. The Joint Administrators can be contacted at: Simon Wall BK Plus Limited Azzurri House, Walsall Business Park Walsall Road, Walsall West Midlands WS9 0RB Andreas Arakapiotis BK Plus Limited Oakingham House, Frederick Place Loudwater, High Wycombe HP11 1JU Further details contact: Chloe-Jane Birch Tel: 01922 922050 Email: chloe-jane.birch@bkplus.co.uk LINKIT RECRUITMENT: Conselia Limited Appointed as Administrator --------------------------------------------------------------- Linkit Recruitment Limited, trading as LRL, was placed into administration in the High Court of Justice, Business and Property Courts in Leeds, Company and Insolvency List, No 000678 of 2026. Richard Marchinton of Conselia Limited was appointed as Administrator on July 8, 2026. The company specialized in temporary employment agency activities. Its registered office and principal trading address is Linkit Place, Greenbank Estate, Atherton Road, Wigan, Greater Manchester, WN2 4SN. The Administrator can be contacted at: Richard Marchinton Conselia Limited Dalton House 1 Hawksworth Street Ilkley West Yorkshire LS29 9DU Telephone: 0113 318 1533 Further details contact: Kaash Vaja Conselia Limited Tel: 0113 318 1533 Email: kaash.vaja@conseliauk.com NEWDAY FUNDING 2023-1: Fitch Ups Rating on Class F Notes to 'BB+sf' ------------------------------------------------------------------- Fitch Ratings has assigned NewDay Funding Master Issuer Plc's series 2026-1's notes final ratings. Fitch has also taken multiple actions on NewDay Funding's series 2023-1, 2024-1, 2024-2, 2024-3, 2025-1, 2025-2 and VFN-F1 V1 notes. Entity/Debt Rating Prior ----------- ------ ----- NewDay Funding Master Issuer Plc 2023-1 Class A1 XS2716700286 LT AAAsf Affirmed AAAsf 2023-1 Class A2 65120LAL5 LT AAAsf Affirmed AAAsf 2023-1 Class B XS2716700526 LT AAAsf Affirmed AAAsf 2023-1 Class C XS2716700799 LT AA+sf Upgrade AAsf 2023-1 Class D XS2716700872 LT A+sf Upgrade A-sf 2023-1 Class E XS2716700955 LT BBB+sf Upgrade BBB-sf 2023-1 Class F XS2716701094 LT BB+sf Upgrade BB-sf 2024-1 Class A XS2768182367 LT AAAsf Affirmed AAAsf 2024-1 Class B XS2768182797 LT AAAsf Affirmed AAAsf 2024-1 Class C XS2768182953 LT AA+sf Upgrade AAsf 2024-1 Class D XS2768183175 LT A+sf Upgrade A-sf 2024-1 Class E XS2768183415 LT BBBsf Upgrade BB+sf 2024-1 Class F XS2768183761 LT BBB-sf Upgrade BBsf 2024-2 Class A XS2834466976 LT AAAsf Affirmed AAAsf 2024-2 Class B XS2834467438 LT AAAsf Affirmed AAAsf 2024-2 Class C XS2834467941 LT AA+sf Upgrade AAsf 2024-2 Class D XS2834468592 LT A+sf Upgrade A-sf 2024-2 Class E XS2834469137 LT BBBsf Upgrade BB+sf 2024-2 Class F XS2834469483 LT BBB-sf Upgrade BBsf 2024-3 Class A XS2909751740 LT AAAsf Affirmed AAAsf 2024-3 Class B XS2909752391 LT AAAsf Affirmed AAAsf 2024-3 Class C XS2909752557 LT AA+sf Upgrade AAsf 2024-3 Class D XS2909752987 LT A+sf Upgrade A-sf 2024-3 Class E XS2909753100 LT BBBsf Upgrade BB+sf 2024-3 Class F XS2909753365 LT BBB-sf Upgrade BBsf 2025-1 Class A XS3031494068 LT AAAsf Affirmed AAAsf 2025-1 Class B XS3031494738 LT AAAsf Upgrade AA+sf 2025-1 Class C XS3031551040 LT AAsf Upgrade A+sf 2025-1 Class D XS3031591186 LT Asf Upgrade BBB+sf 2025-1 Class E XS3031613683 LT BBBsf Upgrade BB+sf 2025-1 Class F XS3031615621 LT BBB-sf Upgrade BBsf 2025-2 Class A XS3096171007 LT AAAsf Affirmed AAAsf 2025-2 Class B XS3096174365 LT AAAsf Upgrade AA+sf 2025-2 Class C XS3096175172 LT AAsf Upgrade A+sf 2025-2 Class D XS3096175685 LT A-sf Upgrade BBBsf 2025-2 Class E XS3096176147 LT BBB-sf Upgrade BBsf 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 AA-sf New Rating AA-(EXP)sf 2026-1 Class D LT A-sf New Rating A-(EXP)sf 2026-1 Class E LT BBB-sf New Rating BBB-(EXP)sf VFN-F1 V1 Class A LT Asf Upgrade BBB+sf VFN-F1 V1 Class E LT BBB+sf Upgrade BBB-sf VFN-F1 V1 Class F LT BBB-sf Upgrade BBsf Transaction Summary The notes are collateralised by a pool of non-prime UK credit card receivables originated by NewDay Limited. NewDay is one of the largest specialist credit card companies in the UK and offers cards both under its own brands and in partnership with individual retailers. Only the cards branded by NewDay, which are targeted at higher-risk borrowers on average, are included in this transaction. The cards co-branded with retailers are financed through a separate securitisation. KEY RATING DRIVERS Updated Asset Assumptions: Fitch has updated its asset assumptions, reducing the steady-state charge-off rate to 14% from 16%. The change reflects NewDay's continued strategic focus on acquiring and retaining slightly lower-risk borrowers and the continued strength and stability of portfolio performance metrics during challenging macro-economic conditions. Charge-off and monthly payment rate (MPR) stresses are unchanged and remain at the low end of the criteria range (3.5x and 45% at the 'AAAsf' rating case, respectively). This considers the high absolute level of the steady-state charge-off rate, low volatility in the historical data and the low payment rates typical of the non-prime credit card sector. Fitch assumed a purchase rate steady state assumption of 100%, with an updated stress assumption of 100% at 'AAAsf' that reduces to 50% at 'Bsf'. Sound Performance: The transaction's recent performance has been broadly in line with Fitch's steady-state 14% charge-off rate and 12% MPR. Over the past year, charge-offs and the MPR have averaged 12.6% and 14.4%, respectively. Fitch expects performance metrics to fluctuate around its steady states through the economic cycle. VFNs Add Flexibility: The structure includes a separate originator variable funding note (VFN), purchased and held by NewDay Funding Transferor Ltd, in addition to series VFN-F1, VFN-F2 and VFN-F3, providing the funding flexibility that is typical of and necessary for credit card trusts. It provides credit enhancement (CE) for the rated notes, adds protection against receivables dilutions by way of a separate functional transferor interest, and is intended to meet UK and US risk-retention requirements. Risks from Seller/Servicer Mitigated: The NewDay group acts in several capacities through its various entities, most prominently as originator, servicer and cash manager. Reliance on the group is mitigated by the ease of transferring the operations to alternative providers, agreements with established card service providers, a back-up cash management agreement and a series-specific liquidity reserve. A back-up servicer has been in place since October 2024. The back-up servicer will replace the existing servicer within 30 days of a servicer termination event. As of April 2025, the minimum transferor interest percentage was reduced to 1.2% from 1.65%, given historically low dilutions experienced by the pool. Fitch considers the minimum transferor interest to be adequately sized to cover dilution risk. Upgrades to Existing Series: The upgrades of the 2023-1, 2024-1, 2024-2, 2024-3, 2025-1, 2025-2 and VFN-F1 V1 notes reflect the effect of the reduced charge-off steady state, lower purchase rate stress and introduction of recoveries 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%: Series 2026-1 A: 'AA+sf'/ 'AAsf' / 'AA-sf' Series 2026-1 B: 'AA-sf'/ 'A+sf' / 'Asf' Series 2026-1 C: 'A+sf'/ 'A-sf' / 'BBB+sf' Series 2026-1 D: 'BBBsf'/ 'BBB-sf' / 'BB+sf' Series 2026-1 E: 'BBsf'/ 'BB-sf' / 'B+sf' Rating sensitivity to reduced MPR Reduce steady state by 15% / 25% / 35%: Series 2026-1 A: 'AA+sf'/ 'AAsf' / 'AA-sf' Series 2026-1 B: 'AA-sf'/ 'A+sf' / 'A+sf' Series 2026-1 C: 'A+sf'/ 'Asf' / 'A-sf' Series 2026-1 D: 'BBB+sf'/ 'BBB+sf' / 'BBBsf' Series 2026-1 E: 'BBB-sf'/ 'BB+sf' / 'BBsf' Rating sensitivity to reduced purchase rate Reduce steady state by 50% / 75% / 100%: Series 2026-1 A: 'AAAsf'/ 'AAAsf' / 'AAAsf' Series 2026-1 B: 'AA+sf'/ 'AA+sf' / 'AAsf' Series 2026-1 C: 'AA-sf'/ 'AA-sf' / 'A+sf' Series 2026-1 D: 'A-sf'/ 'A-sf' / 'BBB+sf' Series 2026-1 E: 'BBB-sf'/ 'BBB-sf' / 'BB+sf' Rating sensitivity to reduced yield Reduce steady state by 15% / 25% / 35%: Series 2026-1 A: 'AAAsf'/ 'AA+sf' / 'AA+sf' Series 2026-1 B: 'AAsf'/ 'AAsf' / 'AAsf' Series 2026-1 C: 'AA-sf'/ 'A+sf' / 'A+sf' Series 2026-1 D: 'BBB+sf'/ 'BBB+sf' / 'BBBsf' Series 2026-1 E: 'BB+sf'/ 'BBsf' / 'BB-sf' 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%: Series 2026-1 A: 'AA-sf'/ 'Asf' / 'BBB+sf' Series 2026-1 B: 'A+sf'/ 'A-sf' / 'BBBsf' Series 2026-1 C: 'Asf'/ 'BBBsf' / 'BB+sf' Series 2026-1 D: 'BBBsf'/ 'BBf' / 'B+sf' Series 2026-1 E: 'BBsf'/ 'B+sf' / N.A. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Rating sensitivity to reduced charge-off rate and increased MPR Reduce steady-state charge-offs by 25% and increase steady-state MPR by 15%: Series 2026-1 A: 'AAAsf' Series 2026-1 B: 'AAAsf' Series 2026-1 C: 'AA+sf' Series 2026-1 D: 'A+sf' Series 2026-1 E: '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 pool and the transaction. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Prior to the transaction closing, Fitch 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 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. NORTHAMPTOMSHIRE INDEPENDENT: FRP Advisory Tapped as Administrators ------------------------------------------------------------------- Northamptonshire Independent Grammar School Charity Trust Limited, trading as Pitsford School, was placed into administration in the High Court of Justice, Court Number CR-2026-005511. Philip James Watkins and Philip Lewis Armstrong of FRP Advisory Trading Limited were appointed as Joint Administrators on July 14, 2026. The company specialized in pre-primary, primary, and general secondary education. Its registered office is at Pitsford Hall, Pitsford, Northampton, Northamptonshire, NN6 9AX and is to be changed to 3rd Floor, 110 Cannon Street, London, EC4N 6EU. Its principal trading address is Pitsford Hall, Pitsford, Northampton, Northamptonshire, NN6 9AX. The Joint Administrators can be contacted at: Philip James Watkins Philip Lewis Armstrong FRP Advisory Trading Limited 2nd Floor 110 Cannon Street London EC4N 6EU Further details contact: The Joint Administrators Tel: 020 3005 4000 Alternative contact: Fotis Papathomas Email: cp.london@frpadvisory.com OGI FUELS: Cowgills Limited Appointed as Joint Administrators ------------------------------------------------------------- OGI Fuels Ltd, trading as Green Olive Firewood Company, was placed into administration in the High Court of Justice, Business and Property Courts in Manchester, Insolvency & Companies (Ch D), No 001026 of 2026. Craig Johns and Jason Mark Elliott of Cowgills Limited were appointed as Joint Administrators on July 14, 2026. The company specialized in the wholesale of other fuels and related products. Its registered office is at 7 Bell Yard, London, WC2A 2JR. The principal trading address is Benton Brothers Warehouse, Units 3–6, Boston Road, Sibsey, Boston, PE22 0TB. The Joint Administrators can be contacted at: Craig Johns Jason Mark Elliott Cowgills Limited Fourth Floor Unit 5B The Parklands Bolton BL6 4SD Further details contact: Dan Cookson Cowgills Limited Tel: 0161 827 1200 Email: Dan.Cookson@cowgills.co.uk PATTERSONS (BRISTOL): Grant Thornton Appointed as Administrators ---------------------------------------------------------------- Pattersons (Bristol) Limited was placed into administration in the High Court of Justice, Business & Property Courts in Bristol, Insolvency & Companies List, No 000112 of 2026. Richard J Lewis and Alistair Wardell of Grant Thornton UK Advisory & Tax LLP were appointed as Joint Administrators on July 13, 2026. The company specialized in the wholesale of other intermediate products. Its registered office is at c/o Grant Thornton UK Advisory & Tax LLP, 11th Floor, Landmark St Peter's Square, 1 Oxford Street, Manchester, M1 4PB. Its principal trading address is Winterstoke Road, Bristol, BS3 2NS. The Joint Administrators can be contacted at: Richard J Lewis Grant Thornton UK Advisory & Tax LLP 2 Glass Wharf Temple Quay Bristol BS2 0EL Telephone: 0117 305 7600 -- and -- Alistair Wardell Grant Thornton UK Advisory & Tax LLP 6th Floor 3 Callaghan Square Cardiff CF10 5BT Telephone: 029 2023 5591 Further details, contact: CMU Support Grant Thornton UK Advisory & Tax LLP Tel: 0161 953 6906 Email: cmusupport@uk.gt.com PEDAL REVOLUTION: Creditors' Meeting Set for July 28 ---------------------------------------------------- Grace Jones and David Perkins of Parker Andrews Limited, Joint Administrators of Pedal Revolution Limited, disclosed that a meeting of the creditors of the Company will be held on July 28, 2026 at 11:00 a.m. Pedal Revolution Limited, with registered office at c/o Parker Andrews Ltd, 5th Floor, The Union Building, 51-59 Rose Lane, Norwich, NR1 1BY, and principal trading address at 63-67 Bethel Street, Norwich, NR2 1NR, was placed in administration proceedings in the High Court of Justice, Court Number: CR-2026-003949, on May 20, 2026. The purpose of the July 28 meeting is, to establish a Creditors' Committee, to approve the Joint Administrators' fees and costs (including pre-administration costs), and to determine the timing of the Joint Administrators' discharge. To access the virtual meeting, which will be held via an online conferencing platform, contact the convener: Grace Jones Parker Andrews Limited 5th Floor, The Union Building 51-59 Rose Lane, Norwich, NR1 1BY This virtual meeting will be recorded in order to establish and maintain records of the existence of relevant facts or decisions that are taken at the meeting. By attending this meeting, you consent to being recorded including recordings of your facial image. Where any recording of the meeting also entails the processing of personal data, such personal data shall be treated in accordance with the Data Protection Act 2018. To be entitled to vote, those attending must submit a proxy form, together with a proof of debt if one has not already been submitted, to the Joint Administrator by one of the following methods: By post to: Parker Andrews Limited 5th Floor, The Union Building 51-59 Rose Lane, Norwich, NR1 1BY; or By email to: mark.middlemas@parkerandrews.co.uk All proofs of debt must be delivered by 4:00 p.m. on July 27, 2026. All proxy forms must be delivered to the convener or chair before they may be used at the meeting fixed for 11:00 a.m. on July 28, 2026. The Joint Administrators can be reached at: Grace Jones David Perkins Parker Andrews Limited 5th Floor, The Union Building 51-59 Rose Lane Norwich NR1 1BY For further details, contact: Mark Middlemas Tel No: 01603 284284 Email: Mark.Middlemas@parkerandrews.co.uk ST. GERARD'S SCHOOL: FRP Advisory Appointed as Administrators ------------------------------------------------------------- St. Gerard's School Trust 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-001013. Simon Farr and Anthony Collier of FRP Advisory Trading Limited were appointed as Joint Administrators on July 3, 2026. The company specialized in primary and general secondary education. Its registered office is at c/o FRP Advisory Trading Limited, 2nd Floor, Abbey House, 32 Booth Street, Manchester, M2 4AB. Its principal trading address is 3 Ffriddoedd Road, Bangor, Gwynedd, LL57 2EL. The Joint Administrators can be contacted at: Simon Farr Anthony Collier FRP Advisory Trading Limited 4th Floor, Abbey House Booth Street Manchester M2 4AB Further details contact: The Joint Administrators Tel: 0161 833 3344 Alternative contact: Jessica Jones Email: cp.manchester@frpadvisory.com STRATTON MORTGAGE 2024-1: S&P Affirms 'BB' Rating on E-Dfrd Notes ----------------------------------------------------------------- S&P Global Ratings removed from CreditWatch negative and affirmed its 'AA (sf)', 'A- (sf)', 'BBB- (sf)', and 'BB (sf)' credit ratings on Stratton Mortgage Funding 2024-1 PLC's class B-Dfrd, C-Dfrd, D-Dfrd, and E-Dfrd notes, respectively. At the same time, S&P affirmed its 'AAA (sf)', 'AAA (sf)', and 'B- (sf)' ratings on the A loan and class A and F-Dfrd notes, respectively. The rating actions follow our May 5, 2026, placement of S&P's ratings on the class B-Dfrd to E-Dfrd notes on CreditWatch negative due to the implementation of updates to our U.K. sector and industry variables under our global RMBS criteria. They also reflect our full analysis of the most recent transaction information and the transaction's current structural features. S&P said, "The performance of the loans in the collateral pool has not changed significantly since our previous review. Based on our calculation methodology, total arrears increased slightly to 26.40% in March 2026 from 26.34% at our previous review." The increase is mainly attributable to the pool amortization. Cumulative losses have slightly increased at 5.08% and they continue to follow an upward trend since closing. Both the liquidity and the general reserve funds are at target, while the liquidity reserve is amortizing the general reserve fund is not. S&P said, "After applying our updated sector and industry variables, the overall effect in our credit analysis resulted in a decrease in the weighted-average foreclosure frequency (WAFF) at all rating levels due to lower anchor default probabilities, lower loan-to-value adjustments, and recalibration and reduction of the originator adjustment. Some of this increase is partially offset by a curtailment of seasoning credit for interest-only loans. "Our weighted-average loss severities (WALS) have increased, driven by updated repossession costs, increased loan-level loss severity floors, and limited credit to house price indexation, considering the property valuation dates and loss severity. Our lower overvaluation assessment for London and the South East partially offsets some of this negative effect. The increase was concentrated at the lower rating levels, from 'BBB' to 'B'." Credit analysis results Rating level WAFF (%) WALS (%) Credit coverage (%) AAA 50.08 26.67 13.36 AA 41.62 22.01 9.16 A 36.99 15.50 5.73 BBB 32.39 12.18 3.94 BB 27.29 9.63 2.63 B 26.08 7.25 1.89 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. S&P said, "We affirmed our ratings on the A loan, class A, D-Dfrd, E-Dfrd, and F-Dfrd notes because our credit and cash flow results indicate their available credit enhancement remains commensurate with their assigned ratings. Although the class B-Dfrd and C-Dfrd notes passed cash flow stresses at higher rating levels than those assigned, we considered recovery period extensions beyond our standard 15-month assumption, high arrears in the pool, the upcoming interest-only maturity dates, the limited excess spread, and relative levels of subordination." The class D-Dfrd, E-Dfrd, and F-Dfrd notes are more sensitive to the cash flow stresses described above. Due to their levels of credit enhancement, the current arrears profile of the pool, and their positions within the capital structure, these notes could be more adversely affected by any future deterioration in collateral performance. Nevertheless, current performance remains consistent with the assigned ratings. S&P said, "We therefore affirmed our ratings on the A loan and all classes of notes. At the same time, we removed from CreditWatch negative our ratings on the class B-Dfrd, C-Dfrd, D-Dfrd, and E-Dfrd notes. Counterparty risk does not constrain the ratings as we consider the transaction to be in line with our counterparty criteria." Stratton Mortgage Funding 2024-1 PLC is a U.K. transaction primarily backed by first-ranking nonconforming, well-seasoned owner-occupied, and buy-to-let mortgage loans secured on U.K. properties, and a small proportion of commercial loans also secured on U.K. properties, originated by NRAM Ltd. and Bradford and Bingley PLC. STRATTON MORTGAGE 2024-2: S&P Affirms 'BB' Rating on E-Dfrd Notes ----------------------------------------------------------------- S&P Global Ratings affirmed its 'AAA (sf)', 'BBB (sf)', 'BB (sf)', and 'B (sf)' credit ratings on Stratton Mortgage Funding 2024-2 PLC's class A, D-Dfrd, E-Dfrd, and F-Dfrd notes, respectively. Furthermore, S&P raised its ratings on the class B-Dfrd to 'AA+ (sf)' from 'AA (sf)' and C-Dfrd notes to 'A+ (sf)' from 'A (sf)'. At the same time, S&P removed its ratings on the class C-Dfrd, D-Dfrd, E-Dfrd, and F-Dfrd notes from CreditWatch negative. S&P said, "The rating actions follow our May 5, 2026, placement of our ratings on the class C-Dfrd to F-Dfrd notes on CreditWatch negative due to the implementation of updates to our U.K. sector and industry variables under our global RMBS criteria. They also reflect our 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 remained relatively stable since our previous review. Based on our calculation methodology, total arrears increased to 33.15% in February 2026 from 32.45% at our precious review. The increase in arrears is mainly attributable to pool amortization. The number of loans in arrears has continued to decline in absolute terms, indicating an overall improvement in collateral performance. As the transaction amortizes sequentially, the available credit enhancement for each rated class of notes is gradually increasing. Cumulative losses have experienced a slight increase since our previous review and currently stand at 0.27%. Both the liquidity reserve fund and the general reserve fund remain at their target levels, providing additional support to the transaction. "After applying our updated sector and industry variables, the overall effect in our credit analysis resulted in a decrease in the weighted-average foreclosure frequency (WAFF) at all rating levels due to lower anchor default probabilities, lower loan-to-value adjustments, and recalibration and reduction of the originator adjustment. Some of this increase is partially offset by a curtailment of seasoning credit for interest-only loans. "Our weighted-average loss severities (WALS) have increased, driven by updated repossession costs, increased loan-level loss severity floors, and limited credit to house price indexation, considering the property valuation dates and loss severity. Our lower overvaluation assessment for London and the South East partially offsets some of this negative effect." Credit analysis results Rating level WAFF (%) WALS (%) Credit coverage (%) AAA 57.31 30.40 17.42 AA 49.16 25.61 12.59 A 44.64 18.32 8.18 BBB 40.07 14.34 5.74 BB 35.17 11.35 3.99 B 34.01 8.61 2.93 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. S&P said, "We affirmed our ratings on the class A, D-Dfrd, E-Dfrd, and F-Dfrd notes because our credit and cash flow results indicate their available credit enhancement remains commensurate with their assigned ratings. However, given the nonconforming borrower profile, the significant proportion of interest-only loans, and the legacy nature of the collateral pool, we believe that the more junior tranches, particularly the class E-Dfrd and F-Dfrd notes, could be exposed to heightened risk should collateral performance deteriorate. These classes may be vulnerable if a meaningful proportion of interest-only loans fail to fully repay upon the expiration of their interest-only periods, resulting in higher-than-expected losses and increased pressure on available credit enhancement. "Nevertheless, we believe that the current ratings remain appropriate, as our analysis indicates that the available credit enhancement continues to provide sufficient protection against expected losses at the respective rating levels. Accordingly, we removed our ratings on the class D-Dfrd to F-Dfrd notes from CreditWatch negative and affirmed the ratings on these notes. "The class B-Dfrd and C-Dfrd notes passed cash flow stresses at higher rating levels than those assigned, due to the increase of credit enhancement since closing. Our ratings on these classes remain robust in our cash flow analysis sensitivity stress where we considered recovery period extensions beyond our standard 15-month assumption, high arrears in the pool, increased fees, the upcoming interest-only maturity dates, limited excess spread, and relative levels of subordination. We therefore raised our rating on the class B-Dfrd notes and raised and removed from CreditWatch negative our rating on the class C-Dfrd notes. "Counterparty risk does not constrain the ratings as we consider the transaction to be in line with our counterparty criteria." Stratton Mortgage Funding 2024-2 PLC is a static RMBS nonconforming transaction that closed in 2024. Stratton 2024-2 is a straight refinancing of an existing portfolio from Stratton Mortgage Funding 2021-1 PLC. BCMGlobal Mortgage Services Ltd. and BCMGlobal ASI Ltd. service the old Sunbury pool and Western Mortgage Services (WMS) Ltd. services the old Moonraker pool. TARAK INTERNATIONAL: Creditors' Meeting Held July 23 ---------------------------------------------------- Geoffrey Isaac Jacobs and Alistair McAlinden of Interpath Advisory, Joint Administrators of Tarak International Limited, disclosed that a virtual meeting of the creditors of the Company was set for July 23, 2026 at 11.00 a.m. Tarak International Limited, trading as Quiz, was placed in administration proceedings in the Court of Session, Court Number: P111 of 26, on Feb. 5, 2026. The purpose of the July 23 meeting was, to consider the formation of a Creditors' Committee. The Joint Administrators can be reached at: Geoffrey Isaac Jacobs Alistair McAlinden Interpath Advisory Interpath Ltd 5th Floor, 130 St Vincent Street Glasgow G2 5HF For further details, contact: Sarah Coyne Tel No: 0141 648 4334 Email: quizcreditors@interpath.com TOGETHER ASSET 2026-1ST2: S&P Assigns 'B-' Rating to X2-Dfrd Notes ------------------------------------------------------------------ S&P Global Ratings assigned credit ratings to Together Asset Backed Securitisation 16 2026-1ST2 PLC's class A notes and interest deferrable class B-Dfrd to X2-Dfrd notes. At closing, the issuer issued unrated residual certificates. The transaction securitizes a portfolio of GBP563 million first-lien owner-occupied and BTL mortgage loans secured on properties in the U.K. originated by Together Personal Finance Ltd. and Together Commercial Finance Ltd. Together Personal Finance Ltd. and Together Commercial Finance Ltd. are wholly owned subsidiaries of Together Financial Services Ltd. Product switches and loan substitution are permitted under the transaction documents before the first optional redemption date. The transaction structure is a static pool with no revolving or prefunding features. The weighted-average original loan-to-value ratio is 62.07%. This is significantly lower than the average for a typical U.K. RMBS transaction. Given the significant positive equity in the properties, the likelihood of default is relatively low, and S&P would expect lower loss severities if the borrower defaults. S&P considers the collateral to be nonconforming based on the prevalence of loans to borrowers with adverse credit history, such as prior county court judgments, bankruptcy, and mortgage arrears. Of the loans in the pool, 1% are in 30-60 days arrears. Liquidity support for the class A and B-Dfrd notes is in the form of an amortizing liquidity reserve fund. Principal can also be used to cure interest shortfalls if the relevant class of notes is the most senior outstanding. Product switches and loan substitutions are permitted under the transaction documents before the first optional redemption date. S&P said, "The application of our counterparty, operational risk, and sovereign risk criteria does not constrain our ratings in this transaction. We consider the issuer to be bankruptcy remote." Ratings Class Rating Amount (mil GBP) A AAA (sf) 506.625 B-Dfrd AA (sf) 32.087 C-Dfrd A (sf) 12.384 D-Dfrd BBB (sf) 11.821 X1-Dfrd BBB (sf) 20.828 X2-Dfrd B- (sf) 15.762 Residual Certificates NR N/A NR--Not rated. N/A--Not applicable. VICTORIA PLC: 90% 2028 SSNs Holders Support Refinancing Transaction ------------------------------------------------------------------- Victoria PLC on July 23 announced that holders representing over 90% of its outstanding EUR166.6 million 3.75% senior secured notes due March 2028 (the "2028 SSNs") have acceded to the Transaction Support Agreement, meeting the necessary threshold required to implement it by way of a consent solicitation. Geoff Wilding, Victoria Executive Chairman, said: "Implementing the refinancing with the support of 90% of the bondholders is the optimal outcome due to the speed and lower cost of execution and therefore benefits all stakeholders." Victoria PLC is advised by Lazard & Co. Limited as financial adviser, Latham & Watkins LLP and Brown Rudnick LLP as legal advisers in connection with the refinancing transaction. ********* 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. 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