260730.mbx

260730.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 Thursday, July 30, 2026, Vol. 27, No. 151 Headlines D E N M A R K LIQTECH INTL.: Receives Nasdaq Notice for $1 Bid Price Deficiency G E R M A N Y DELIVERY HERO: S&P Alters Outlook to Positive, Affirms 'B' ICR I R E L A N D MERRION SQAURE 2023-1: Fitch Affirms 'B-sf' Rating on Class F Notes I T A L Y ALMAVIVA SPA: S&P Affirms 'BB-' ICR on Free Cash Flow Rebound EOLO SPA: S&P Withdraws 'B-' Long-Term Issuer Credit Rating FEDRIGONI SPA: S&P Rates New EUR665MM Senior Secured Notes 'B-' YOUNI ITALY 2024-1: S&P Raises E-Dfrd Notes Rating to 'BB+ (sf)' P O R T U G A L ARES LUSITANI: Fitch Assigns 'BB+sf' Final Rating on Class E Notes R U S S I A KAPITALBANK: S&P Alters Outlook to Positive, Affirms 'BB-/B' ICRs NATIONAL BANK: S&P Affirms 'BB/B' ICRs, Outlook Stable S W E D E N NORDIC PAPER: S&P Alters Outlook to Negative, Affirms 'B' ICR U N I T E D K I N G D O M GALINO LIMITED: AAB Business Appointed as Joint Administrators GREAT HALL NO.1 2027-2: Fitch Affirms 'BBsf' Rating on Two Tranches HERA CARE: KRE Corporate Appointed as Administrators J.M. GORRY: FTS Recovery Appointed as Administrators KARTA CREATIVE: S&W Partners Appointed as Joint Administrators KIRKHAM GRAMMAR: Kroll Appointed as Joint Administrators LANFINE LIMITED: FRP Advisory Appointed as Joint Administrators ORBIT DISCOVERY GROUP: James Cowper Tapped as Administrators PRESSMATIC LIMITED: KRE Appointed as Joint Administrators VICTORIA PLC: Fitch Lowers IDR to 'CCC-' & Keeps on Watch Negative WD FF: S&P Alters Outlook to Positive, Affirms 'B' ICR WOODVILLE CONSULTANTS: Kroll Appointed as Joint Administrators - - - - - ============= D E N M A R K ============= LIQTECH INTL.: Receives Nasdaq Notice for $1 Bid Price Deficiency ----------------------------------------------------------------- LiqTech International, Inc. said in a regulatory filing with the Securities and Exchange Commission that, on July 21, 2026, it received a deficiency notice from The Nasdaq Stock Market informing that its common stock, par value $0.001 per share, fails to comply with the $1 minimum bid price required for continued listing on The Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2) based upon the closing bid price of the Common Stock for the 30 consecutive business days prior to the date of the notice from Nasdaq. Nasdaq's notice has no immediate effect on the listing of the Common Stock on The Nasdaq Capital Market and, at this time, the Common Stock will continue to trade on The Nasdaq Capital Market under the symbol "LIQT". Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has been provided an initial compliance period of 180 calendar days, or until January 19, 2027, to regain compliance with the minimum bid price requirement. To regain compliance, the closing bid price of the Common Stock must meet or exceed $1.00 per share for a minimum of ten consecutive business days prior to Jan. 19, 2027. If the Company is unable to regain compliance by Jan. 19, 2027, the Company may be eligible for an additional 180 calendar day compliance period to demonstrate compliance with the minimum bid price requirement. To qualify, the Company will be required to meet the continued listing requirement for market value of publicly held shares and all other initial listing standards for The Nasdaq Capital Market, with the exception of the minimum bid price requirement, and will need to provide written notice to Nasdaq of its intention to cure the deficiency during the second compliance period. If the Company does not qualify for the second compliance period or fails to regain compliance during the second 180 calendar day period, Nasdaq will notify the Company of its determination to delist the Common Stock, at which point the Company would have an opportunity to appeal the delisting determination to a Hearings Panel. The Company said that it intends to monitor the closing bid price of its Common Stock and is considering its options to regain compliance with the minimum bid price requirement under the Nasdaq Listing Rules. About LiqTech International Ballerup, Denmark-based LiqTech International, Inc. is a clean technology company that provides state-of-the-art gas and liquid purification products by manufacturing ceramic silicon carbide filters and membranes as well as developing industry-leading and fully automated filtration solutions and systems. Sadler, Gibb & Associates, LLC, based in Draper, Utah, and serving since 2018, included a "going concern" qualification in its report dated Feb. 27, 2026, attached to the Company's Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2025, citing that Company's recurring losses and negative operating cash flows raise substantial doubt about the Company's ability to continue as a going concern. As of March 31, 2026, the Company had $24.95 million in total assets, $17.40 million in total liabilities, and $7.55 million in total equity. ============= G E R M A N Y ============= DELIVERY HERO: S&P Alters Outlook to Positive, Affirms 'B' ICR -------------------------------------------------------------- S&P Global Ratings revised to positive from stable its outlook on Delivery Hero SE and its core financing subsidiaries, Delivery Hero Finco Germany GmbH and Delivery Hero Finco LLC. At the same time, S&P affirmed its 'B' long-term issuer credit rating on these entities and its 'B' issue rating on Delivery Hero SE's senior secured debt. The '3' recovery rating on the senior secured debt is unchanged. The positive outlook indicates that following the completion of the transaction, Delivery Hero could benefit from credit uplift based on group support. On July 16, 2026, Uber Technologies Inc. (BBB+/Positive/A-2) offered to acquire Delivery Hero SE's shares at EUR41.5 per share, which would imply an enterprise value of about $18 billion. The transaction is expected to close in the second half of 2027, subject to approval from shareholders and regulatory authorities in multiple jurisdictions globally. The acquisition would make Delivery Hero part of the world's largest mobility and delivery platform. In S&P's view, Delivery Hero's creditworthiness would benefit from Uber's greater scale and stronger balance sheet. S&P Global Ratings revised the outlook to positive following Uber's announcement that it intends to acquire Delivery Hero. Because Uber has greater scale and a stronger balance sheet than Delivery Hero, S&P anticipates that Delivery Hero's creditworthiness would strengthen if it becomes part of the Uber group. Uber proposes to acquire Delivery Hero's operations in 50 of the markets in which it has a presence. Pro rata the acquisition, the combined group would have had a gross merchandise value (GMV) of $236 billion in 2025, across 99 countries. Uber's acquisition of Delivery Hero is subject to shareholders' approval. It is expected to close in the second half of 2027. Uber's voluntary tender offer will be subject to a minimum acceptance threshold of 50% of Delivery Hero's shares. Uber has already received an irrevocable tender commitment of about 17%. Combined with its existing shareholding and its holding of Delivery Hero's instruments, this brings Uber's total economic interest in Delivery Hero to more than 53%. The business combination agreement provides for an extended period before the transaction closes, reflecting the complex nature and potential prolonging of the regulatory process across multiple jurisdictions globally. The latest closing date is in May 2028. In 2024-2025, Uber tried to acquire Delivery Hero's Taiwanese business; it failed due to antitrust concerns. Delivery Hero operates in 14 markets, where it competes with Uber. The company has agreed to sell its operations in these markets to SSW Partners LP, a New York-based investment firm. The transaction is conditional on completion of the deal between Uber and Delivery Hero. The extent to which the transaction may have a positive effect on Delivery Hero's creditworthiness depends on S&P's assessment of how the company is positioned within the wider Uber group structure. At present, insufficient details are available to assess Delivery Hero's potential group status. S&P said, "On a stand-alone basis, we estimate solid revenue growth of 9.5% in 2026 and 6.3% in 2027. This will be fueled by higher GMV-to-revenue conversion based on higher contributions from quick commerce and own deliveries, combined with rising subscription and advertising revenue. The group has made growth investments in regions such as the Middle East and Asia and to help it withstand competition. Despite these, we estimate that its S&P Global Ratings-adjusted EBITDA margin will remain broadly stable, at about 4.4%, in 2026 (excluding the provision reversals from which the company benefitted in 2025). In 2027, EBITDA margin is forecast to improve to 5.6%. "We assume that margins will benefit from stronger operating leverage as scale and network density improve and investments are reduced. Therefore, we forecast that Delivery Hero will reduce its debt to EBITDA below 7x and improve its cash flow by 2027. Specifically, leverage is projected to remain elevated above 8.0x in 2026, before declining to below 6.5x in 2027. EBITDA interest coverage will be 2x-3x in 2026-2027 and free operating cash flow (FOCF) before exceptional cash outflows will break even in 2026 and turn positive in 2027, at about EUR250 million. These predictions do not incorporate any debt repayment from the proceeds of the sale of the Taiwanese business. "We expect Delivery Hero to maintain strong liquidity. Liquidity was supported by about EUR2.7 billion in cash as of Dec. 31, 2025, pro forma the proceeds from an incremental term loan in March 2026 (about EUR600 million), and EUR442 million of availability under the revolving credit facility. In addition, the company expects to receive about EUR515 million (net of taxes) from the sale of its business in Taiwan." The positive outlook indicates that following the completion of the transaction, Delivery Hero could benefit from credit uplift based on group support. S&P said, "We could revise the outlook to stable if the proposed acquisition does not go through. "We could raise the rating if the transaction is completed because Delivery Hero would benefit from group support as part of its higher-rated parent, Uber Technologies Inc. "Although unlikely in the next 12 months, we could also raise the rating if Delivery Hero continues to increase its EBITDA, such that we expect it to achieve leverage below 5x and generate solid FOCF while maintaining ample liquidity. This could occur if it maintains its strong GMV growth; orders increase in frequency and size; it expands the subscription-based model; or it receives an increased contribution from advertising revenue." ============= I R E L A N D ============= MERRION SQAURE 2023-1: Fitch Affirms 'B-sf' Rating on Class F Notes ------------------------------------------------------------------- Fitch Ratings has affirmed Merrion Square Residential 2023-1 DAC's notes and removed two tranches from Rating Watch Positive (RWP). Entity/Debt Rating Prior ----------- ------ ----- Merrion Square Residential 2023-1 DAC A XS2647846463 LT AAAsf Affirmed AAAsf B XS2647846976 LT AA+sf Affirmed AA+sf C XS2647847198 LT Asf Affirmed Asf D XS2647847354 LT BBB+sf Affirmed BBB+sf E XS2647847438 LT BBsf Affirmed BBsf F XS2647847602 LT B-sf Affirmed B-sf Transaction Summary The transaction is a securitisation of first-lien Irish residential and commercial mortgage assets originated predominantly between 2005 and 2008 by several lenders. The pool was previously securitised across Shamrock 2021-1 DAC and Strandhill RMBS DAC, neither of which Fitch rated. KEY RATING DRIVERS Stable Performance: As of end-May 2026, loans more than 90 days in arrears remained broadly stable at almost 19%. The portfolio includes a significant portion of restructured loans, at about 49% by current balance at May 2026. The build-up of available credit enhancement (CE) has offset weaker performance, but the model-implied ratings (MIRs) remain sensitive to recovery outcomes. This has driven Fitch to remove the ratings from RWP and affirm them below the MIRs with Stable Outlooks. Asset Assumptions: Fitch maintained a 3.0x transaction adjustment to the foreclosure frequency (FF). This reflects the difference between observed FF performance in the portfolio and the criteria-derived transaction-specific weighted average (WA) FF. Fitch has also applied an 85% borrower-level recovery rate cap given the low level of recoveries registered as of May 2026. Non-Liquidity Reserves Drawings: Since closing, there have been draws on the non-liquidity reserve fund, which now stands at around 86% of the target, leading to an uncleared principal deficiency ledger of about EUR10.2 million (42.1% of Class Z2 notes). This is due to pool underperformance and limited excess spread. Under stressed rating scenarios, Fitch expects the non-liquidity reserves to be fully depleted on upcoming interest payment dates. SME loans Criteria Variation: As of May 2026, the pool contains around 11% by current balance of SME loans backed by either land or commercial properties. These are small-ticket loans that are mostly agricultural loans to farmers and small businesses, with a current average balance of EUR37,000. The valuations for these loans are subject to commercial market value decline assumptions, as stated in Fitch's European RMBS Rating Criteria. Fitch determined the WAFF for the SME sub-pool based on historical performance data provided at closing. Fitch also assessed the impact of subsidies potentially supporting the performance of the agricultural loans, in line with its SME Balance Sheet Securitisation Rating Criteria. The determination of the WAFF for the SME sub-pool represents a criteria variation to the European RMBS Rating Criteria and SME Balance Sheet Securitisation Rating Criteria. Property Valuations Criteria Variation: Fitch relied on 1,716 original valuations provided at closing, representing around 34.6% by loan count. Updated valuations were provided at closing for 4,216 loans (of which 1,009 had both original and updated valuations), which were either desktop or drive-by valuations undertaken between 2015 and 2019. Where an updated valuation was used in the absence of an original valuation, Fitch applied a 5% haircut to the valuation amount. This is a criteria variation from the European RMBS Rating Criteria RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The transaction's performance may be affected by changes in market conditions and the economic environment. Weakening economic performance is strongly correlated to increasing levels of delinquencies and defaults that could reduce CE available to the notes In addition, unanticipated declines in recoveries could result in lower net proceeds, which may make certain notes susceptible to negative rating action depending on the extent of the decline in recoveries. Fitch found that a 15% increase in the WAFF and a 15% decrease in the WA recovery rate (RR) indicate downgrades of up to three notches for the class E and F notes. A downgrade of the European Union's rating (AAA/Stable/F1+) may also affect the ratings given the reliance on subsidies supporting SME loan performance in the portfolio. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Stable to improved asset performance driven by stable delinquencies and defaults would lead to increasing CE levels and upgrades. Fitch found a decrease in the WAFF of 15% and an increase in the WARR of 15% indicate upgrades of one notch for the class B notes, four notches for the class C notes and six notches for the class D to F notes. CRITERIA VARIATION For desktop and drive-by valuation Fitch applied a 5% haircut to the valuation amount, which is a criteria variation from the European RMBS Rating Criteria. Fitch determined the WAFF for the SME sub-pool of the portfolio based on historical performance data. The determination of the WAFF for the SME sub-pool represents a variation to the European RMBS Rating Criteria and SME Balance Sheet Securitisation Rating Criteria. 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 Merrion Square Residential 2023-1 DAC Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Prior to the transaction closing, Fitch reviewed the results of a third party assessment conducted on the asset portfolio information and concluded that there were no findings that affected the rating analysis. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations 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. ========= I T A L Y ========= ALMAVIVA SPA: S&P Affirms 'BB-' ICR on Free Cash Flow Rebound ------------------------------------------------------------- S&P Global Ratings affirmed its 'BB-' ratings on Almaviva SpA and its debt. The stable outlook reflects S&P's expectation that robust organic growth, margin expansion, and normalized working capital will lead to significant deleveraging to 3.7x and FOCF representing about 10% of debt in 2026. Almaviva's leverage increased to 4.5x in 2025, pro forma Tivit's full-year consolidation, on higher nonrecurring expenses, market challenges in the U.S., and adverse foreign exchange movements in Brazil. Free operating cash flow (FOCF) remained negative due to less efficient working capital management following acquisitions and strategic renegotiations with suppliers. S&P said, "That said, we expect steady revenue and EBITDA growth this year and normalizing working capital, leading to deleveraging to below 4x and an FOCF rebound in full year. "We affirmed the rating because we expect FOCF will turn positive, driven by EBITDA growth and the normalization of Almaviva's working capital cycle. We anticipate that Almaviva's FOCF-to-debt ratio will rebound to approximately 10% in 2026 and 13% in 2027. This recovery is supported by robust organic EBITDA growth and the full-year consolidation of Brazil-based Tivit (acquired in 2025), which benefits from more favorable market payment terms in Latin America than the rest of the group." While Almaviva reported a significant working capital outflow of approximately EUR150 million during 2024-2025, the outflow resulted from: -- Integration processes from prior acquisitions that temporarily reduced receivables collection efficiency in the second half of 2025; -- Strategic contract renegotiations with cloud infrastructure providers and other key suppliers, trading shorter payment terms for improved contract conditions; -- Increased invoicing requests from Italian clients in the fourth quarter of 2025 linked with delays in Italy's National Recovery and Resilience Plan (PNRR) decision-making process; -- Prepayments to suppliers in the fourth quarter of 2025 for services spanning 2026; and -- Slow value-added tax refunds from public authorities. S&P forecasts a more manageable working capital outflow of EUR60 million across 2026-2027 on normalized collections from clients and payments to suppliers. Furthermore, Almaviva's increasing geographic and client diversification should reduce year-end working capital volatility. S&P said. "We expect resilient demand from Italian public administration clients, sound positioning in Brazil, and recovering U.S. operations to drive 6.5% organic revenue growth in 2026-2027. In Italy, which generates approximately 50% of total revenue, Almaviva continues to benefit from long-standing client relationships, tailwinds from public digitalization spending via the PNRR, and AI-driven opportunities through its proprietary, Italian-proficient "Velvet" platform. Growth prospects are further bolstered by Almaviva's position as the second-largest IT services provider in Brazil, a higher-growth market representing roughly 30% of revenue. We also project a recovery in U.S. operations--which account for less than 10% of the group's revenue--following the market volatility experienced in 2025 due to the federal shutdown and government spending-efficiency initiatives. Finally, the acquisition of U.S.-based Iteris and Brazil-based Tivit positions Almaviva to capture significant revenue synergies by expanding its vertical expertise into new geographies. "We expect leverage will decrease to below 4.0x from 2026, which supports the rating. We anticipate Almaviva's leverage will decline to 3.7x in 2026 and 3.2x in 2027, down from 4.5x in 2025 pro forma Tivit's full-year consolidation in 2025. This deleveraging will be fueled by revenue growth and our expectation that EBITDA margins will expand gradually to about 16.5% by 2027, from 14.4% in 2025. This growth is supported by the conclusion of early retirement programs, a reduction in nonrecurring expenses to EUR20 million per year (from EUR33 million in 2025), and a strategic shift toward more profitable digital products in new geographies. We attribute the leverage spike in 2025 to the group's restructuring initiatives, including integrating previous acquisitions into the group, challenging market conditions in the U.S., and negative foreign exchange effects. "The stable outlook reflects our expectation that robust organic growth, margin expansion, and normalized working capital will lead to deleveraging to 3.7x and FOCF representing about 10% of debt in 2026. "We see a downgrade as unlikely over the next 12 months, given Almaviva's financial policy and commitment to deleveraging. However, we could lower the rating on Almaviva if its adjusted debt to EBITDA failed to drop to below 4x or if working capital changes were persistently negative, leading to FOCF to debt of below 10%. This could happen due to a decline in competitiveness, integration challenges, and adverse foreign exchange impacts. "We could raise our rating if adjusted debt to EBITDA decreases to below 3x and adjusted FOCF to debt improves sustainably to 15% or above. This could happen if continued organic profitability improvements are coupled with higher cost synergies than we currently expect, without significant spending on integration costs to offset these. An upgrade is also dependent on Almaviva adhering to a financial policy in line with such credit metrics." EOLO SPA: S&P Withdraws 'B-' Long-Term Issuer Credit Rating ----------------------------------------------------------- S&P Global Ratings withdrew its 'B-' long-term issuer credit rating on Eolo SpA at the issuer's request. At the time of the withdrawal, its outlook on the rating was stable. This withdrawal follows Eolo's tender offer on its outstanding EUR375 million senior secured notes due in October 2028, at a fixed price of 99.95%, and for which it had obtained committed financing. On July 23, 2026, the company announced that the bulk of the notes have been validly tendered, with a settlement expected on July 31, 2026, after which date Eolo anticipates about EUR21.7 million of the October 2028 notes to remain outstanding. Eolo may also decide to repurchase or redeem the remaining notes at par on or after Sept. 30, 2026. FEDRIGONI SPA: S&P Rates New EUR665MM Senior Secured Notes 'B-' --------------------------------------------------------------- S&P Global Ratings assigned its 'B-' issue rating and '4' recovery rating to Fedrigoni S.p.A.'s proposed EUR665 million senior secured notes due 2033. Fedrigoni intends to use issuance proceeds to repay the EUR665 million senior secured notes due 2030. Therefore, S&P considers the transaction leverage neutral, with no effect on its 'B-' long-term issuer credit rating and stable outlook on the company. YOUNI ITALY 2024-1: S&P Raises E-Dfrd Notes Rating to 'BB+ (sf)' ---------------------------------------------------------------- S&P Global Ratings raised its credit ratings on Youni Italy 2024-1 S.r.l.'s class A notes to 'AAA (sf)' from 'AA+ (sf)', class B-Dfrd notes to 'AA+ (sf)' from 'AA (sf)', class C-Dfrd notes to 'A+ (sf)' from 'BBB+ (sf)', class D-Dfrd notes to 'BBB+ (sf)' from 'BBB- (sf)', and class E-Dfrd notes to 'BB+ (sf)' from 'B+(sf)'. At the same time, we resolved the UCO placements of the class A and C-Dfrd ratings. S&P said, "The upgrade of the class A notes follows the application of our revised rating above the sovereign criteria. For transactions that have both a short economic life and low sensitivity to sovereign default risk, our revised criteria allow up to eight notches of uplift above the rating of the sovereign if the latter has an investment-grade rating. Youni Italy 2024-1 fulfils all the conditions as the portfolio has a weighted-average life lower than 36 months and a low sensitivity to sovereign default risk, and our unsolicited sovereign credit rating on Italy is 'BBB+'. Our cash flow analysis demonstrates that the class A notes can withstand the stresses we apply at the 'AAA' level. We therefore raised to 'AAA (sf)' from 'AA+ (sf)' our rating on this class of notes. "The upgrades of the class B-Dfrd to E-Dfrd notes follow our review of the transaction's performance, the application of our relevant criteria, and our assessment of the payment structure outlined in the transaction documents. "We analyzed the transaction's credit risk under our global consumer ABS criteria. In our view, Youni Italy 2024-1's cumulative gross losses have remained in line with our assumptions since closing. We therefore maintained our base-case gross loss assumption at 5.60%. We then recalibrated our base-case gross loss assumptions to account for defaults that have already occurred and the portfolio's current size. We applied a 3.46% base-case gross loss on the loans' current outstanding balance. We kept all the other assumptions unchanged." The rated notes have been amortizing pro rata since the initial interest payment date, as no sequential amortization triggers have been breached. Nevertheless, credit enhancement has slightly increased because the unrated class F notes are not amortizing. The liquidity reserve is amortizing and is at its required level of EUR1.2 million, as of the June 2026 payment date. The pool factor is 39%, the weighted-average seasoning is almost 36 months, and the cumulative default rate is 4.25%. Loans more than 90 days in arrears are quite stable at 0.83% compared to 0.88% at S&P's previous review. Credit assumptions Previous Current review review Gross loss base case (%) 5.60 5.60 Gross loss base case applied to the current balance (%) 5.16 3.46 Stress multiple at 'AAA' (x) 4.80 4.80 Stress multiple at 'AA+' (x) 4.30 4.30 Stress multiple at 'A+' (x) 3.30 3.30 Stress multiple at 'BBB+' (x) 2.30 2.30 Stress multiple at 'BB+' (x) 1.55 1.55 Recovery rate base case (%) 25 25 Recovery haircut at 'AAA' (%) 40 40 Recovery haircut at 'AA+' (%) 35 35 Recovery haircut at 'A+' (%) 27.50 27.50 Recovery haircut at 'BBB+' (%) 22.50 22.50 Recovery haircut at 'BB+' (%) 15 15 Stressed net loss at 'AAA' (%) 21.10 14.10 Stressed net loss at 'AA+' (%) 18.60 12.50 Stressed net loss at 'A+' (%) 13.90 9.30 Stressed net loss at 'BBB+' (%) 9.60 6.40 Stressed net loss at 'BB+' (%) 6.30 4.20 S&P said, "While the class B-Dfrd notes are now able to pass our stresses at the 'AAA' rating level, we do not consider deferrable notes to be commensurate with this rating level. We therefore limited our upgrade of this class of notes to 'AA+ (sf)' from 'AA (sf)'. "The available credit enhancement for the class C-Dfrd notes is sufficient to withstand the credit and cash flow stresses that we apply at the 'A+' rating level. We therefore raised our rating to 'A+ (sf)' from 'BBB+ (sf)'. "The class D-Dfrd and E-Dfrd notes could withstand stresses commensurate with higher ratings than those currently assigned. However, we limited our upgrades, considering the notes' sensitivity to higher stresses and their level of credit enhancement. We therefore raised our rating on the class D-Dfrd notes to 'BBB+ (sf)' from 'BBB- (sf)', and our rating on the class E-Dfrd notes to 'BB+ (sf)' from 'B+ (sf)'. "We consider the transaction's resilience in case of additional stresses to some key variables, in particular defaults and recoveries, to determine our forward-looking view. We therefore ran additional scenarios with increased gross defaults up to 30% and reduced expected recoveries by up to 30%. Our sensitivity analysis results indicate a deterioration in line with the credit stability considerations in our rating definitions." Youni Italy 2024-1 is a securitization of Italian consumer loan receivables which Younited, Italian branch, granted to its private customers. =============== P O R T U G A L =============== ARES LUSITANI: Fitch Assigns 'BB+sf' Final Rating on Class E Notes ------------------------------------------------------------------ Fitch Ratings has assigned Ares Lusitani - STC, S.A. / Thetis Finance Auto 2026 final ratings, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Ares Lusitani - STC, S.A. / Thetis Finance Auto 2026 Class A PTLSNAOM0016 LT AAAsf New Rating AAA(EXP)sf Class B PTLSNBOM0015 LT AA+sf New Rating AA+(EXP)sf Class C PTLSNCOM0014 LT A+sf New Rating A+(EXP)sf Class D PTLSN4OM0007 LT BBBsf New Rating BBB(EXP)sf Class E PTLSN5OM0006 LT BB+sf New Rating BB+(EXP)sf Transaction Summary The transaction is a six-month revolving securitisation of a portfolio of fully amortising vehicle loans originated and serviced in Portugal by Banco Credibom, S.A., a specialist lender wholly owned by Credit Agricole Consumer Finance S.A. (CACF, whose trading name is Credit Agricole Personal Finance and Mobility, rated AA-/Stable/F1+). KEY RATING DRIVERS Asset Assumptions Reflect Mixed Portfolio: Fitch has assumed base-case lifetime default and recovery rates of 5% and 50% for the total portfolio, based on the historical data provided by Credibom, Portugal's economic outlook, and the originator's underwriting and servicing strategies. The portfolio mainly comprises used car loans with an exposure that can reach 90% in volume during the revolving period. It also includes loans for the purchase of new cars and a residual share of loans for the purchase of motorcycles and tractors. Short Revolving Period: The transaction features a six-month revolving period, shorter than typical in comparable European securitisations. Fitch considers the risk of portfolio migration to weaker attributes to be negligible as less than 12% of the pool is expected to be replenished. The risk is also sufficiently captured by the default multiples calibrated for the rating analysis (eg 5x for the 'AAAsf' rating case). Hybrid Pro-Rata Amortisation: The class A to E notes will have an initial sequential amortisation period, after the end of the revolving period, until their credit enhancement (CE) ratios have increased by about 30% (except for the class E notes for which CE will remain zero). The notes will then be repaid pro-rata unless a sequential amortisation event occurs, primarily linked to performance triggers such as cumulative balance of defaults or entries to the principal deficiency ledger. Fitch views these triggers as sufficiently robust to prevent the pro-rata amortisation from continuing on early signs of performance deterioration. Fitch believes the tail risk posed by the pro rata paydown is mitigated by the mandatory switch to sequential amortisation when the outstanding pool balance falls below 10% of the initial balance. Adequate Counterparty Arrangements: Counterparty arrangements are compatible with a maximum achievable rating of 'AAAsf' on the notes, including minimum eligibility ratings for the transaction account bank (TAB) and interest-rate swap provider. Commingling is a secondary risk as the servicer will transfer collected funds to the TAB at least once a month, and is mitigated by minimum eligibility ratings on its parent entity, CACF, and remedial actions including increasing the frequency of cash sweeps to every day. Servicing disruption risk is mitigated by a dedicated liquidity reserve to cover senior costs, net swap payments and interest on the class A to C notes for over three months, a period Fitch views as sufficient to implement alternative arrangements. The class D and E notes are excluded from the liquidity reserve cover, resulting in excessive payment interruption risk, despite requiring timely interest payments when they become most senior. This caps the class D and E note ratings to the servicer's credit profile, which Fitch assesses based on CACF's rating, in line with its Structured Finance and Covered Bonds Counterparty Rating Criteria. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Long-term asset performance deterioration, such as increased delinquencies or reduced portfolio yield, which could be driven by changes in portfolio characteristics, macroeconomic conditions, business practices or the legislative landscape - For the class D and E notes, a deterioration in the servicer's credit profile as these ratings are capped at the servicer's credit profile due to unmitigated payment interruption risk Expected impact on the notes' ratings of increased defaults (class A/B/C/D/E) Increase default rates by 10%: 'AAAsf'/'AAsf'/'Asf'/'BBBsf'/'BB+sf' Increase default rates by 25%: 'AA+sf'/'AA-sf'/'A-sf'/'BBB-sf'/'BB+sf' Increase default rates by 50%: 'AAsf'/'A+sf'/'BBB+sf'/'BB+sf'/'BBsf' Expected impact on the notes' ratings of reduced recoveries (class A/B/C/D/E) Reduce recovery rates by 10%: 'AAAsf'/'AA+sf'/'Asf'/'BBBsf'/'BB+sf' Reduce recovery rates by 25%: 'AAAsf'/'AAsf'/'Asf'/'BBB-sf'/'BB+sf' Reduce recovery rates by 50%: 'AAAsf'/'AA-sf'/'BBB+sf'/'BB+sf'/'BBsf' Expected impact on the notes' ratings of increased defaults and reduced recoveries (class A/B/C/D/E) Increase default rates by 10% and reduce recovery rates by 10%: 'AAAsf'/'AAsf'/'Asf'/'BBB-sf'/'BB+sf' Increase default rates by 25% and reduce recovery rates by 25%: 'AA+sf'/'A+sf'/'BBB+sf'/'BB+sf'/'BBsf' Increase default rates by 50% and reduce recovery rates by 50%: 'AA-sf'/'BBB+sf'/'BB+sf'/'B+sf'/'CCCsf' Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - The class A notes are rated at the highest level on Fitch's scale and cannot be upgraded - For the remaining notes, increasing CE ratios as the transaction deleverages to fully compensate for the credit losses and cash flow stresses commensurate with higher ratings USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch reviewed the results of a third-party assessment conducted on the asset portfolio information and concluded that there were no findings that affected the rating analysis. Fitch conducted a review of a small, targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. =========== R U S S I A =========== KAPITALBANK: S&P Alters Outlook to Positive, Affirms 'BB-/B' ICRs ----------------------------------------------------------------- S&P Global Ratings revised its outlook on Kapitalbank to positive from stable and affirmed its 'BB-/B' long- and short-term issuer credit ratings. Kapitalbank is a long-established retail bank, operating since 2001. It has the largest domestic market share in retail deposits, the fourth-largest share in retail loans, and a strong brand name. Since 2022, it has been part of the Uzum group, which was established in 2022 and is gradually developing its fintech and e-commerce business. Kapitalbank provides the major share of the group's banking operations and will likely continue to account for the largest share of its total loans (about 87% as of end-May 2026) and net income (about 88% in 2025). S&P expects Kapitalbank's capitalization as measured by our RAC ratio to increase to 10.5%-11.5% in 2026-2027 from 9.4% as of year-end 2025. This will be supported by moderation of loan growth to about 5% per year and full retention of earnings. Kapitalbank needs to comply with tighter domestic regulatory requirements, introduced in 2023-2024, limiting exposure to car lending, cash and card loans, and overdrafts to maximum 25% each of the bank's total amount of loans. As of year-end 2025, the share of car loans at Kapitalbank reduced to 55% of total loans. Kapitalbank got an extension from the regulator to meet the 25% limit. Therefore, over the next three years, Kapitalbank plans to almost double its corporate loans, keep its loans to small and midsize enterprises (SMEs) stable, and continue gradually reducing the share of car loans to reach the regulatory limit. S&P's forecast assumes that Kapitalbank will not receive any equity injections but at the same time will continue to fully retain earnings. Kapitalbank's asset quality will gradually stabilize and remain better than the system average. S&P said, "We expect that Stage 3 loans and other real estate owned assets under International Financial Reporting Standards could increase to 5.5% over the next 24 months from 4.9% as of year-end 2025 and 4.5% a year earlier. We understand that the bank has been actively working on strengthening its credit risk management, including constant improvement of its scoring models and strengthening collections. We anticipate that these efforts will eventually result in stabilizing asset quality and that Stage 3 loans at Kapitalbank will remain comfortably below the 7.5%-8.5% sector average. Stage 3 loans were covered by reserves by 44% reflecting collateral for car loans and real estate collateral for corporate exposures. We view positively the bank's risk diversification into corporate and SME loans from concentration on car loans. Also, unlike state-owned banks, Kapitalbank is not a subject to directed lending and exercises detailed credit analysis of borrowers' financial conditions when considering corporate lending." Kapitalbank benefits from being a part of a dynamic and diversified Uzum group. S&P said, "We reflect this in the positive comparable rating analysis notch incorporated into the rating. Group membership provides the bank with unique access to customers and cross-selling opportunities because Uzum group claims to service half of the population of Uzbekistan. The group actively develops its ecosystem that combines banking, e-commerce, and fintech which supports its business generation and profitability. The group continues to invest in digitalization and innovation to protect its solid market positions in retail and SME business and increase customer loyalty over time. We consider that Kapitalbank will benefit from its unique position in the market being more advanced and dynamic than majority of large domestic peers." S&P said, "We regard Kapitalbank as an insulated subsidiary of the Uzum group, and do not see Uzum's credit strength constraining a higher rating on the bank. The bank is a separate legal entity, it is self-funded by retail and corporate deposits and is supervised by the Central Bank of Uzbekistan as a separate legal entity. We believe that, in case of problems at the group, the regulator would potentially restrict dividend and liquidity distribution from Kapitalbank to other group members. While the bank has some commercial benefits from group membership, we see it as substantially self-supporting from an operational and financial performance perspective. "The positive outlook on Kapitalbank over the next 12 months reflects its strengthening capitalization, moderation of loan growth rates, strong profitability, and diversification into corporate and SME lending away from concentration on car loans. "We could revise the outlook to stable over the next 12 months if our expectations of strengthening capital and stabilizing asset quality are not fulfilled. "We could upgrade the bank if its RAC ratio reaches and remains sustainably above 10% supported by fully retained earnings, moderated growth, and stabilized asset quality that remains better than the system average." NATIONAL BANK: S&P Affirms 'BB/B' ICRs, Outlook Stable ------------------------------------------------------ S&P Global Ratings affirmed its 'BB/B' long- and short-term issuer credit ratings on National Bank For Foreign Economic Activity Of The Republic Of Uzbekistan JSC (NBU). The outlook is stable. S&P expects NBU's performance to remain resilient, supported by its strong position as the leading bank in Uzbekistan, which gives it privileged access. It has a sizable market share in commercial business and public projects. In S&P's view, the bank's business position will be supported by its strong market position; wide geographic presence across Uzbekistan; and long-term relationships with the largest state-owned enterprises, which operate in strategically important sectors. NBU's assets totaled Uzbek sum (UZS) 146.5 trillion (about $12.1 billion) as of mid-2026. By assets, it is the largest bank in Uzbekistan, with a market share of 14.5%. The bank's profitability has been stable over the past three years, with a return on equity (ROE) above 13%. Ongoing investments in the bank's franchise, combined with an increase in competition, could cause ROE to decline slightly to about 12% in 2026-2027. The investments have caused NBU's cost-to-income ratio to show a negative trend. Because the government has focused on reducing the economic dominance of state-owned banks, their market share has been diminishing for the past several years. S&P said, "Although NBU's market share dynamics reflect this trend, we anticipate that it will maintain its dominance over the sector for the next two years. The government has not indicated that it intends to privatize NBU and we expect the bank to continue to provide a wide range of services to corporate and retail clients. It is also likely to be involved in implementing the government's growth and modernization agenda." S&P said, "Although NBU's asset quality is projected to show moderate deterioration, we expect it to continue to outperform the system average. We forecast a moderate weakening in asset quality at the system level, so that Stage 3 loans and other real estate-owned assets comprise about 7.5%-8.5% of the total. NBU is projected to see a similar weakening, its Stage 3 loans and other real estate-owned assets are likely to rise to about 6% by year-end 2027, from 5.3% as of year-end 2025. This reflects NBU's privileged position--it underwrites projects that are seen as strategically important for the country. "We also expect NBU to maintain its solid capital adequacy, which we see as a positive rating factor, through 2026-2027. Our risk-adjusted capital (RAC) ratio is forecast to remain at 9.0%-9.5% over the next 24 months. As of year-end 2025, NBU's RAC ratio was 9.7%. "We see a very high likelihood that NBU will receive extraordinary government support if needed. This reflects its very strong link with the government and its very important role in Uzbekistan's financial system and economy. Although we expect the bank to retain its high systemic importance for the banking sector and to maintain its relationship with the government, our long-term rating on NBU does not incorporate any notches of extraordinary support because the bank's stand-alone credit profile is at the same level as the rating on the sovereign. That said, the stand-alone credit profile (SACP) is bolstered by the government's material and ongoing support for NBU, in terms of funding, capital, and guarantees. "The stable outlook on NBU mirrors that on the sovereign and reflects our expectation that the bank will maintain its leading position in the Uzbekistani banking sector. We also expect that its very strong links with the government will continue to support its diversified business profile, thus enabling it to maintain adequate capital buffers and a stable and diversified funding base over the next 12 months. "We could consider lowering the rating on NBU in the next 12 months if we took a similar action on the sovereign, or if the bank's SACP were to deteriorate. This would most likely be caused by a deterioration in asset quality or capitalization. "We would consider raising the rating on the bank within the next 12 months if we took a similar action on the sovereign and at the same time, NBU's creditworthiness strengthened. This is not part of our base-case scenario." =========== S W E D E N =========== NORDIC PAPER: S&P Alters Outlook to Negative, Affirms 'B' ICR ------------------------------------------------------------- S&P Global Ratings affirmed its 'B' issuer credit rating on Nordic Paper Holding and 'B' issue rating on the term loan B (TLB). The recovery rating on the TLB is '3', indicating about 60% recovery expected in a default scenario. The negative outlook indicates the one-in-three possibility of a downgrade over the next 12 months if EBITDA or free operating cash flow (FOCF) come in below S&P's expectations, or if the financial policy prevents a recovery in credit metrics. Softer demand, more intense competition in Europe, and struggles to pass input cost increases on to customers depressed Nordic Paper Holding's S&P Global Ratings-adjusted EBITDA to Swedish krona (SEK) 504 million (versus SEK817 million in 2024, and our expectations of SEK845 million). Our adjusted debt to EBITDA thereby rose to 6.0x and funds from operations (FFO) to debt declined to 3%. S&P said, "We forecast S&P Global Ratings-adjusted debt to EBITDA will improve to 5.2x and the FFO-to-debt ratio recover to 10.3%, thanks to a modest recovery in adjusted EBITDA in 2026 to approximately SEK650 million, from cost reduction and strategic initiatives. Prevailing market conditions remain soft and the timing of a recovery remains uncertain (mainly in greaseproof paper). In light of these lower EBITDA margin expectations for the medium term, we have revised down our business risk assessment for Nordic Paper to weak. "S&P Global Ratings-adjusted EBITDA for 2025 was SEK504 million, well below our projected SEK845 million, and EBITDA is expected to remain well below 2024 EBITDA levels (SEK817 million) in the short to medium term. This underperformance was driven by a rapid deterioration in market conditions in the second half of 2025, which led to volume declines of 6% in kraft paper (due to weakening demand) and 7% in greaseproof paper (as competition in Europe intensified). The company also lacked the pricing power to pass wood cost increase on to kraft paper customers. While we anticipate a modest EBITDA recovery to SEK645 million by end-2026--thanks to cost-saving initiatives mainly--this remains well below our previous expectations. We anticipate S&P Global Ratings-adjusted debt to EBITDA will decline to 5.2x in 2026 from 6.0x in 2025. These ratios are well above our previous forecasts." Nordic Paper's FOCF also deteriorated more sharply than anticipated in 2025. FOCF was negative at SEK226 million (negative SEK169 million in 2024) as EBITDA was insufficient to cover SEK485 million in capital expenditure (capex), SEK342 million in cash interest (inclusive of transaction costs), and SEK 69 million in cash taxes. S&P said, "We expect FOCF to recover to approximately SEK175 million in 2026, driven by a modest recovery in EBITDA, nonrecurrence of transaction costs, and reduced expansionary investments. We anticipate annual capex to stabilize at SEK165 million-SEK185 million through 2027 (primarily maintenance related)." The Backhammar water-handling project will now be funded through a build-to-lease model: Nordic Paper will have a third party build the facility, and then lease it from that party starting in late 2027. While the reduction in capex supports FOCF generation in 2026-2027, it also increases the group's lease liabilities by SEK470 million from late 2027. S&P said, "We view the financial policy of Strategic Value Partners, which fully owns Nordic Paper, as aggressive. Strategic Value Partners has implemented financial engineering measures that have increased the company's S&P Global Ratings-adjusted leverage. These include the factoring facility put in place in 2026 (with SEK320 million utilized in 2026), and the SEK71 million sale-and-leaseback transaction completed in December 2025. While our base case does not assume any dividend distributions, we cannot rule them out. "The negative outlook reflects a one-in-three chance that Nordic Paper's performance in the next 12 months will fall short of our expectations. Our visibility on the timing of a recovery in greaseproof paper markets remains limited. This is compounded by uncertainties on the impact of the conflict in the Middle East and its impact on energy and other input costs. In addition, the competitive landscape for greaseproof paper in Europe is expected to remain challenging due to the rising influx of imported volumes. Finally, we cannot rule out that further aggressive financial policy decisions will weaken credit metrics. "We have revised our view of Nordic Paper's business risk profile to weak from fair. This downward revision reflects lower EBITDA margin expectations. Our previous assessment assumed the company would sustain above-average sector margins of more than 19%. We no longer expect it to reach those levels over the next 24 months, reflecting the sharp deterioration in market sentiment in the second half of 2025. In the kraft paper segment, weak demand limited the company's ability to pass higher wood costs through to selling prices, while the greaseproof paper segment faced rising competitive pressures from lower-cost Asian imports. While we expect a modest recovery in kraft paper in 2026, we do not anticipate any material improvement in the greaseproof paper market. Despite this, our business risk assessment continues to be supported by Nordic Paper's vertical integration into pulp, its proximity to key raw-material suppliers, its leading market positions, and its relatively diversified manufacturing footprint. "The negative outlook indicates the one-in-three possibility of a downgrade over the next 12 months if EBITDA or FOCF come in below our expectations, or if the financial policy prevents a recovery in credit metrics." S&P could consider lowering the rating if: -- Nordic Paper continues experiencing adverse market conditions and competitive pressure that offset the potential benefits of cost-saving measures, resulting in adjusted EBITDA remaining low or FOCF remaining negative or minimal in the next 12 months; or -- The group's financial policy remains aggressive. This could be characterized by large debt-funded acquisitions, material S&P Global Ratings-adjusted debt increases (including from sale and lease-back transactions or factoring facilities), or substantial dividend payments that deteriorate credit metrics. S&P could revise its outlook to stable if: -- Nordic Paper's business plan and cost control initiatives result in substantial EBITDA growth and materially positive FOCF generation; and -- Such improvements are reinforced by supportive financial policies. =========================== U N I T E D K I N G D O M =========================== GALINO LIMITED: AAB Business Appointed as Joint Administrators -------------------------------------------------------------- Galino Limited, trading as Galino, was placed into administration in the Court of Session, No P690 of 2026. David McGinness and Judith Howson of AAB Business & Tax Advisory were appointed as Joint Administrators on July 7, 2026. The company specialized in the manufacture of fasteners and screw machine products. Its registered office is 133 Finnieston Street, Glasgow, G3 8HB. The former registered office was 2 South Caldeen Road, Coatbridge, ML5 4EG. Its principal trading address is 2 South Caldeen Road, Coatbridge, ML5 4EG. The Joint Administrators can be contacted at: David McGinness Judith Howson 133 Finnieston Street Glasgow G3 8HB Tel: 0141 271 2827 Email: restructuring@aab.uk GREAT HALL NO.1 2027-2: Fitch Affirms 'BBsf' Rating on Two Tranches ------------------------------------------------------------------- Fitch Ratings has affirmed the tranches of all Great Hall Mortgages No. 1 plc (GHM) transactions and revised the Outlook on GHM2007-2's class D notes to Stable from Negative. Entity/Debt Rating Prior ----------- ------ ----- Great Hall Mortgages No. 1 plc (Series 2007-1) Class Ba XS0288628224 LT AAAsf Affirmed AAAsf Class Bb XS0288628810 LT AAAsf Affirmed AAAsf Class Ca XS0288629545 LT AAAsf Affirmed AAAsf Class Cb XS0288630121 LT AAAsf Affirmed AAAsf Class Da XS0288630394 LT AA+sf Affirmed AA+sf Class Db XS0288630550 LT AA+sf Affirmed AA+sf Class Ea XS0288630808 LT A-sf Affirmed A-sf Great Hall Mortgages No. 1 plc (Series 2007-2) Class Ba XS0308356970 LT AAAsf Affirmed AAAsf Class Ca XS0308357358 LT AAAsf Affirmed AAAsf Class Cb XS0308355733 LT AAAsf Affirmed AAAsf Class Da XS0308357788 LT AA-sf Affirmed AA-sf Class Db XS0308356111 LT AA-sf Affirmed AA-sf Class Ea XS0308357861 LT BBsf Affirmed BBsf Class Eb XS0308356467 LT BBsf Affirmed BBsf Great Hall Mortgages No. 1 plc (Series 2006-1) Class Ba XS0276086989 LT AAAsf Affirmed AAAsf Class Bb XS0276093332 LT AAAsf Affirmed AAAsf Class Ca XS0276087524 LT AAAsf Affirmed AAAsf Class Cb XS0276093928 LT AAAsf Affirmed AAAsf Class Da XS0276088506 LT AA+sf Affirmed AA+sf Class Db XS0276095030 LT AA+sf Affirmed AA+sf Class Ea XS0276089223 LT BBB+sf Affirmed BBB+sf Transaction Summary The transactions comprise UK buy-to-let (BTL) and non-conforming owner-occupied (OO) mortgage loans that were originated before 2007 by Platform Homeloans Limited and purchased by JPMorgan Chase Bank N.A. The portfolios are predominantly made up of floating-rate interest-only (IO) assets. KEY RATING DRIVERS Arrears Performance: Arrears performance has broadly stabilised across all three transactions since its last review in September 2025, with modest improvement for GHM2006-1. Prepayments have increased since the last review, particularly in GHM2006-1 and GHM2007-2, likely reflecting stronger borrowers refinancing out of the pools. This may weaken the remaining pools' credit quality and be detrimental to the junior notes. As the loan count in the transactions continues to decline, the notes' ability to pay down will increasingly depend on the performance of a small number of borrowers. This may result in the transactions becoming more reliant on reserve funds for credit support. Rising Credit Enhancement (CE): CE has increased across all tranches since the last review, most notably for the senior notes, driven by sequential amortisation and non-amortising reserve funds, as trigger breaches have prevented the reserves from amortising. However, there have been small drawings on the reserve funds across all three transactions, followed by modest replenishments. As of the latest investor report in June 2026, the GHM 2007-1 reserve fund is at target, while GHM 2006-1 and GHM 2007-2 areat 90.7% and 93.7% of target, respectively. Outlooks Reflect Uneven Credit Support: The Outlook revision on GHM2007-2's class D notes to Stable from Negative is primarily driven by increased CE from subordination and the support provided by the non-amortising reserve fund, which remains available despite potential drawings over the life of the transaction. However, Fitch has maintained the Negative Outlooks on GHM2007-2's class E notes, reflecting the greater sensitivity of these notes to pool concentration risk and limited CE, which leave these notes more exposed to adverse performance as the transaction continues to amortise. Tail Risks: The transactions contain a high proportion of IO loans, resulting in material back-ended risk within the portfolios. IO loans represent about 90% for all three transactions, with maturities concentrated between 2026 and 2031. This has led to an increase in loans past maturity and, given the concentration of upcoming IO maturities, Fitch expects this proportion to increase. To address this risk, Fitch has modelled loans past maturity as restructured in its asset analysis, which attracts a higher foreclosure frequency (FF). Transaction Adjustment: Fitch has applied its non-conforming assumptions and an OO transaction adjustment of 0.75x and a BTL transaction adjustment of 1.5x to FFs for GHM2006-1 and GHM2007-1. This is because the transactions' historical performance of loans three months or more in arrears has been better than Fitch's non-conforming index, but worse than the BTL index. GHM2007-2 has performed in line with Fitch's UK non-conforming index of loans that are three months or more in arrears. Fitch has applied an OO transaction adjustment of 1.0x and a BTL transaction adjustment of 1.5x to FFs for this deal. BTL Recovery Rate Cap: The non-conforming sector has reported losses that exceed those implied by the indexed property values in the underlying pools. Fitch has therefore applied borrower-level recovery rate (RR) caps to the BTL loans in these transactions, in line with those applied to non-conforming loans: 85% RR at 'Bsf' and 65% RR at 'AAAsf'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The transactions' performance may be affected by adverse changes in market conditions and the economic environment. Weakening economic performance is strongly correlated with increasing levels of delinquencies and defaults and could reduce the CE available to the notes. Fitch found that a 15% increase in the weighted average FF (WAFF) and a 15% decrease in the WARR could lead to downgrades of four notches for GHM2006-1's class E notes, three notches for GHM2007-1's class E notes, three notches for GHM2007-2's class D notes and four notches for GHM2007-2's class E notes . No other notes would be affected. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Stable to improved asset performance driven by stable delinquencies and defaults, would lead to increasing CE and, potentially, rating upgrades. Fitch found that a decrease in the WAFF of 15% and an increase in the WARR of 15% could lead to upgrades of one notch for GHM2006-1's class D notes, four notches for GHM2006-1's class E notes, one notch for GHM2007-1's class D notes, four notches for GHM2007-1's class E notes, three notches for GHM2007-2s class D notes and four notches GHM2007-2's class E notes. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pools and the transactions. Fitch has not reviewed the results of any third-party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Fitch did not undertake a review of the information provided about the underlying asset pools ahead of the transaction's initial closing. The subsequent performance of the transactions over the years is consistent with the agency's expectations given the operating environment and Fitch is therefore satisfied that the asset pool information relied upon for its initial rating analysis was adequately reliable. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations All three GHM transactions have an ESG Relevance Score of '4' for Customer Welfare - Fair Messaging, Privacy & Data Security due to the pool's IO maturity concentration at greater than 20% of legacy non-conforming OO loans, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. All three GHM transactions have an ESG Relevance Score of '4' for Human Rights, Community Relations, Access & Affordability due to a significant portion of the pool containing OO loans advanced with limited affordability checks, which has a negative impact on the credit profile, and is relevant to the ratings in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. HERA CARE: KRE Corporate Appointed as Administrators ---------------------------------------------------- Hera Care Services Ltd was placed into administration in the High Court of Justice, Court Number CR-2026-005485, and Paul Ellison and Christopher Errington of KRE Corporate Recovery Limited were appointed as Administrators on July 13, 2026. The company specialized in temporary employment agency activities. Its registered office is at Unit 8, The Aquarium, King Street, Reading, Berkshire, RG1 2AN. The Administrators can be contacted at: Paul Ellison Christopher Errington KRE Corporate Recovery Limited Unit 8, The Aquarium Building King Street, Reading Berkshire, RG1 2AN Further details contact: Chloe Brown Tel: 01189 479090 Email: chloe.brown@krecr.co.uk J.M. GORRY: FTS Recovery Appointed as Administrators ---------------------------------------------------- J.M. Gorry & Son Limited (formerly Pinedeck Services Limited) was placed into administration in the High Court of Justice, Business and Property Courts in Manchester, Insolvency & Companies List (ChD), Court Number CR-2026-001043, and Alan Coleman and Nicola Baker of FTS Recovery Limited were appointed as Administrators on July 20, 2026. The company specialized in freight transport by road. Its registered office and principal trading address is Middlegate, Whitelund Industrial Estate, Morecambe, LA3 3BN. The Administrators can be contacted at: Alan Coleman Nicola Baker FTS Recovery Limited Suite 1A, 40 King Street Manchester, Greater Manchester M2 6BA Further details contact: Gemma Payne Tel: 0161 464 3834 Email: gemma.payne@ftsrecovery.co.uk KARTA CREATIVE: S&W Partners Appointed as Joint Administrators -------------------------------------------------------------- Karta Creative Ltd was placed into administration in the High Court of Justice, Business and Property Courts, Insolvency & Companies List (ChD), Court Number CR-2026-005598, and James Thompson and Ben Woodthorpe of S&W Partners LLP were appointed as Joint Administrators on July 17, 2026. The company specialized in advertising agencies. Its registered office and principal trading address is 167-169 Great Portland Street, 5th Floor, London, W1W 5PF. The Joint Administrators can be contacted at: James Thompson Ben Woodthorpe S&W Partners LLP 45 Gresham Street London EC2V 7BG Further details contact: The Joint Administrators Tel: 020 4617 5500 Alternative Contact: Alexandra Nastase Email: alexandra.nastase@swgroup.com KIRKHAM GRAMMAR: Kroll Appointed as Joint Administrators -------------------------------------------------------- Kirkham Grammar School was placed into administration in the High Court of Justice, Business and Property Courts in Leeds, Insolvency & Companies List (ChD), Court Number CR-2026-001077, and Philip Joseph Dakin and Benjamin John Wiles of Kroll Advisory Ltd were appointed as Joint Administrators on July 17, 2026. The company specialized in primary and general secondary education. Its registered office is at The News Building, Level 6, 3 London Bridge Street, London, SE1 9SG. Its principal trading address is Ribby Road, Kirkham, Preston, Lancashire, PR4 2BH. The Joint Administrators can be contacted at: Philip Joseph Dakin Benjamin John Wiles Kroll Advisory Ltd The News Building Level 6 3 London Bridge Street London SE1 9SG Further details contact: The Joint Administrators Tel: +44 (0) 20 7089 4700 Alternative Contact: Judah Jackson LANFINE LIMITED: FRP Advisory Appointed as Joint Administrators --------------------------------------------------------------- Lanfine Limited (trading as The Honesty Works) was placed into administration in the Court of Session, No P685 of 2026, and Michelle Elliott and Callum Angus Carmichael of FRP Advisory Trading Limited were appointed as Joint Administrators on July 10, 2026. The company specialized in soft furnishings wholesale. Its registered office at is 3-5 Campbell Street, Darvel, KA17 0BU (to be changed to Level 2, The Beacon, 176 St Vincent Street, Glasgow, G2 5SG). Its principal trading address is 3-5 Campbell Street, Darvel, KA17 0BU. The Joint Administrators can be contacted at: Michelle Elliott Callum Angus Carmichael FRP Advisory Trading Limited Level 2, The Beacon 176 St Vincent Street Glasgow G2 5SG Further details contact: The Joint Administrators Tel: +44 (0)330 055 5455 Email: cp.glasgow@frpadvisory.com Alternative Contact: John Woodhouse ORBIT DISCOVERY GROUP: James Cowper Tapped as Administrators ------------------------------------------------------------ Orbit Discovery Group Ltd was placed into administration in the High Court of Justice, No 005336 of 2026, and Sandra Lillian Mundy and Susan Rosemary Staunton of James Cowper Kreston were appointed as Joint Administrators on July 20, 2026. The company specialized in research and experimental development on biotechnology. Its registered office is at Inventa Building, Botley Road, Oxford, OX2 0HA, United Kingdom. The Joint Administrators can be contacted at: Sandra Lillian Mundy Susan Rosemary Staunton James Cowper Kreston 2 Communications Road Greenham, Newbury RG19 6AB Further details Contact: Sandra Mundy Tel: 01635 35255 Email: smundy@jamescowper.co.uk PRESSMATIC LIMITED: KRE Appointed as Joint Administrators --------------------------------------------------------- Pressmatic Limited (formerly Powpress Multimatics Limited) was placed into administration in the High Court of Justice, Business and Property Court in Newcastle, Company & Insolvency List, No 000084 of 2026, and Lynn Marshall and Paul Matthew Kings of KRE (North) Limited were appointed as Joint Administrators on July 10, 2026. The company specialized in the fabrication of metal products. Its registered office and principal trading address is Unit D Franklin Industrial Estate, Patterson Street, Blaydon, NE21 5TL. The Joint Administrators can be contacted at: Lynn Marshall Paul Matthew Kings KRE (North) Limited c/o KRE (North) Limited 7-8 Delta Bank Road Gateshead NE11 9DJ Tel: 0191 406 7364 Further details contact: Lynn Marshall KRE (North) Limited Tel: 0191 406 7364 Email: lynn.marshall@krecr.co.uk VICTORIA PLC: Fitch Lowers IDR to 'CCC-' & Keeps on Watch Negative ------------------------------------------------------------------ Fitch Ratings has downgraded Victoria PLC's Long-Term Issuer Default Rating (IDR) to 'CCC-' from 'CCC' and maintained it on Rating Watch Negative (RWN). The action follows Victoria's proposed exchange of existing senior secured notes (SSNs) for new second-priority notes and equity, and the conversion of preferred equity into equity and second-priority notes. The downgrade reflects its assessment that this transaction would constitute a distressed debt exchange (DDE), as it involves reduced terms for creditors and enables Victoria to avoid an eventual default under its criteria. The RWN reflects the pending outcome of the proposal and the likelihood of a further downgrade before the ratings are rebased to reflect the new capital structure following the DDE. Key Rating Drivers Proposal Signals Potential DDE: Fitch views the proposed transaction as a DDE, given the 75:100 exchange of its 2028 SSNs into new second-priority notes, equity stake and the addition of payment-in kind (PIK) interest, both of which represent a meaningful deterioration in creditor terms. Fitch believes the exchange's structure also indicates the company's limited ability to address its 2028 maturities through a conventional refinancing, increasing the likelihood of default without the transaction. Limited Financial Flexibility: Fitch forecasts Victoria to generate negative free cash flow (FCF) across FY26-FY28 (year-end March), driven by higher interest costs and its annual capex plan. Fitch expects leverage to remain above the sector's 'CCC' midpoint of 7.0x through FYE27, with financial flexibility constrained by heightened refinancing risk until the proposed transaction is completed. High Leverage: Leverage was high at 10.8x at FYE25 and will remain high at FYE26 due to a higher debt load after the company's September 2025 restructuring. Under the proposed transaction, preferred equity would be partly refinanced with new second-priority notes, although overall debt would decline as a result of the 75:100 exchange rate applied to the 2028 notes. Fitch forecasts leverage to decline to about 10.0x at FYE26, before falling below 7.0x only by FYE28. This deleveraging path reflects improving EBITDA margins as market conditions recover in FYE27, alongside a lower debt burden following completion of the transaction. Peer Analysis Victoria is larger than peers like PCF GmbH (CCC) and comparable in size to Hestiafloor 2 (Gerflor: B+/Stable). However, it remains far smaller than Mohawk Industries, Inc. (BBB+/Stable) and slightly smaller than Tarkett Participation (B+/Positive). Gerflor has superior geographical diversification compared with Victoria, but both companies maintain high exposure to Europe, including the UK. Tarkett benefits from broader geographical diversification. Similar to many building product companies, Victoria has limited market diversification, with a predominantly residential focus, whereas Tarkett and Gerflor have greater exposure to commercial real estate markets. Victoria's forecast EBITDA margins remain higher than those of Tarkett (7%-8%), benefitting from a more focused product mix and less exposure to the lower-margin North American market. However, Victoria's EBITDA margins lag those of Gerflor, which benefits from strong market diversification and a specialised product mix. Fitch projects Victoria's EBITDA leverage at about 10.0x by FYE26, substantially higher than Gerflor's and Tarkett's. Fitch’s Key Rating-Case Assumptions - Revenue to decline 0.6% in FY26 due to subdued demand, before rising 2.6% in FY27 and 5%-6% annually in FY28 and FY29 - EBITDA margin to improve to 8.3% in FY26 and to 10.6%-12% for FY27-FY29, driven by increased volumes and proposed cost savings plan - Annual working capital consumption at 0.7% of revenue in FY26 and broadly neutral during FY27-FY29 - Annual capex of GBP65 million during FY26-FY29 - No dividends, M&A or preferential share redemption to FY29 - Refinancing of preferred equity and 2028 notes to be completed in FY27 Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('b+', Moderate), sector characteristics ('bb', Moderate), market and competitive positioning ('b', Moderate), diversification and asset quality ('bb-', Moderate), company operational characteristics ('b+', Moderate), profitability ('b-', Moderate), financial structure ('ccc-', Higher), and financial flexibility ('ccc', Moderate). The quantitative financial subfactors are based on custom CRT financial period parameters: 10% weight for the historical year FY25, 30% for the forecast year FY26, 30% for the forecast year FY27 and 30% for the forecast year FY28. B+ to CC considerations apply in its analysis and results in an adjustment of -1 notch. The governance assessment of 'some deficiencies' has no impact. The operating environment assessment of 'a+' has no impact. The SCP is 'ccc-'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'CCC-'. Recovery Analysis - The recovery analysis assumes that Victoria would be reorganised as a going concern in bankruptcy rather than liquidated and considers the current capital structure. - Fitch assumes a 10% administrative claim. - The revolving credit facility (RCF) is fully drawn and super senior, alongside few local facilities, after a restructuring, according to Fitch's criteria. The company's factoring line is super senior (deducted from estimated enterprise value). Senior unsecured debt consists of overdraft facilities and other bank loans, which rank behind senior secured debt. - New first priority notes (FPNs) issued in September 2025 (2029 maturities) of GBP576 million (GBP528 million plus PIK coupon for following 12 months) rank after the RCF. - SSNs of GBP8 million maturing in 2031 and GBP146 million maturing in 2028 rank next in the security waterfall after the new FPNs. - The going-concern EBITDA estimate of GBP120 million reflects its view of a sustainable, post-reorganisation EBITDA, on which Fitch bases the valuation of the company, also considering the most recent acquisitions/disposals. - Fitch uses a multiple of 5.0x to calculate a post-reorganisation enterprise valuation, reflecting Victoria's leading position in its niche markets (soft flooring and ceramic tiles), long-term relationships with blue-chip companies and a loyal customer base. - The waterfall analysis result in a ranked recovery in the 'RR3' band for the FPNs, indicating an instrument rating of 'CCC', and a recovery in the 'RR6' band for the remaining portion of SSNs, indicating an instrument rating of 'C'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Completion of a distressed debt exchange leading to a downgrade (to 'RD') before re-rating the new capital structure post-restructuring - Imminent liquidity pressure Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Positive rating action is unlikely, as reflected by the RWN, ahead of the refinancing Liquidity and Debt Structure As of 30 September 2025, Victoria's liquidity was supported by about GBP84 million readily available cash (net of Fitch-restricted cash for working capital adjustments), alongside large drawings on its RCF, which were primarily used to redeem the previous RCF and other general corporate purposes. Fitch forecasts Victoria will generate negative FCF in FY26 and FY27. At end-1HFY26, Victoria's debt structure consisted of GBP130 million RCF maturing in January 2030, GBP528 million FPNs due in August 2029, GBP146 million SSNs due in March 2028 and approximately GBP8 million SSNs due in August 2031. Preferred equity was GBP289 million at end-September 2025. Issuer Profile Victoria is a listed, UK-based company involved in designing, manufacturing and distributing flooring products. 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 Victoria. 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 ----------- ------ -------- ----- Victoria PLC LT IDR CCC- Downgrade CCC senior secured LT C Downgrade RR6 CC senior secured LT CCC Downgrade RR3 CCC+ WD FF: S&P Alters Outlook to Positive, Affirms 'B' ICR ------------------------------------------------------ S&P Global Ratings revised our outlook on WD FF Ltd. (operating as Iceland Group) to positive from stable and affirmed its 'B' long-term issuer credit rating, its 'BB' issue rating on its super senior revolving credit facility (RCF), and 'B' issue rating on the existing senior secured notes. S&P also assigned a 'B' issue rating to the proposed GBP512 million-equivalent senior secured notes. S&P said, "The positive outlook reflects our expectation that we could upgrade the group if it generates profitable growth which translates to more consistent and material positive free operating cash flow (FOCF) generation after leases, while adhering to its debt deleveraging trajectory including S&P Global Ratings-adjusted debt to EBITDA improving to about 4.0x by the end of fiscal 2028. "We expect that WD FF Ltd. (operating as Iceland Group) will continue to demonstrate a resilient operating performance, supported by sustained market share and volume growth. We assume the group's EBITDA margins will remain robust driven by cost saving initiatives amid stable demand trends, despite ongoing competitive pressures and labor and input cost pressure, translating into more consistent and material FOCF generation." The group has announced plans to refinance its capital structure by raising GBP512 million-equivalent euro-denominated senior secured notes due in 2033, issued by its financing subsidiary Iceland Bondco PLC, to repay GBP472 million-equivalent senior secured notes maturing in December 2027 and cover transaction costs and redemption fees. The company will also extend its GBP75 million super senior secured revolving credit facility (RCF, currently maturing in November 2027) to April 2028. S&P said, "The positive outlook reflects our expectation that Iceland Group will continue to defend its market share and grow volumes despite ongoing competitive pressures, which could result in more consistent and material positive FOCF generation. Despite its smaller operating scale compared with U.K. retail peers, the group continues to preserve its 2.2% market share in the U.K. grocery market, based on Kantar Worldpanel by Numerator data--despite a shift in market share from some big box grocers to discounters--demonstrating the appeal of Iceland Group's value proposition, omnichannel reach, and resilient demand for quality frozen and chilled foods. The group posted revenue of about GBP4.4 billion in both fiscal 2026 and in the first quarter of fiscal 2027 on a rolling-12-months basis. Volumes grew by more than 1% in fiscal 2026 (ended March 27, 2026) and year-to-date fiscal 2027 (ended June 19, 2026), above the flat market average growth. We expect this resilience to continue in fiscals 2027 and 2028, supported by pricing investments (including the group's popular GBP1 value range and promotional activity), product innovation, expansion of its quick delivery offering, alongside the development of its loyalty program (relaunched in August 2025) and new marketing efforts, including the growth of its retail media network. "FOCF generation after leases improved to about GBP39 million in fiscal 2026, where we had previously forecast cash outflows. This was underpinned by resilient EBITDA margins, as well as improved supplier payment terms that led to a working capital inflow of GBP69 million. We now expect FOCF generation after leases to remain positive in fiscals 2027 and 2028 at about GBP30 million annually, on the back of stable market share, improved store-level stock management from the new Warrington depot, and disciplined and much lower capital expenditure (capex) after a one-off investment in its new frozen meal manufacturing facility in Oldham in 2026. "We expect S&P Global Ratings-adjusted debt to EBITDA to decline to about 4x by the end of fiscal 2028, thanks to earnings growth and disciplined financial policy. We expect the group to be able to defend its S&P Global Ratings-adjusted EBITDA margin at about 7% in fiscals 2027 and 2028, after reporting a slight decline to 6.8% in fiscal 2026 due to staff costs (National Insurance Contribution and National Living Wage increases in 2025), energy levies, and other input cost inflation. We note that the group reported 7.0% in the first quarter of fiscal 2027 on a rolling-12-months basis. We think that the group's efforts to improve in-store labor efficiency, optimize delivery and the usage of the new Warrington depot, and its energy hedging policy and conservation efforts, will offset ongoing inflationary cost pressures, in addition to its growing focus on the Food Warehouse supermarket format with higher basket sizes. Moreover, product innovation across its own and partnered exclusive brands, now equipped with a new manufacturing facility for frozen ready meals, will continue to expand the group's margin-accretive wholesale and store partnerships in existing and new markets. "We believe resilient profitability and the group's priority to deleverage its balance sheet will drive S&P Global Ratings-adjusted debt to EBITDA down to about 4.1x in fiscal 2027 and 3.9x in fiscal 2028, from 4.3x in fiscal 2026. We note that the group is owned by family shareholders, with key members in the management team, who prioritize sustainable growth of the business. They also aim to deleverage the business to company-adjusted debt to EBITDA of 3x (equivalent to slightly above 3x on our adjusted basis), a target they have publicly committed to, before considering any dividend payout. In addition, the group has a track record of repaying some of its debt maturities early, albeit at small amounts, with cash. We therefore do not factor any material dividends or acquisitions in our base case. Ongoing financial discipline will be key to achieving a higher rating. "The proposed transaction will support EBITDAR cash interest and rent coverage and boost liquidity. Iceland Bondco PLC, financing subsidiary of the group, plans to issue new GBP512 million-equivalent euro-denominated senior secured notes due 2033, to refinance its GBP472 million-equivalent floating rate and fixed rate senior secured notes, due December 2027. We expect total annualized cash interest of about GBP90 million (including lease interest) with the new notes, which will support the improvement of EBITDAR cash interest and rent coverage to about 1.5x by fiscal 2028, from 1.2x in fiscal 2026. The transaction will also leave about GBP24 million of cash on the balance sheet, after paying transaction and redemption fees. The maturity of the group's GBP75 million super senior RCF will also be extended to April 2028 (from November 2027). The pro forma cash of about GBP176 million and availability under the undrawn RCF will continue to support the group's liquidity position, amid seasonal working capital requirements and capex on maintenance, new stores, and its refit program. "The positive outlook reflects our view that we could upgrade the group if it generates earnings growth and more consistent and material FOCF after leases, on the back of resilient demand for value and frozen products. We forecast EBITDA margins of about 7% resulting in adjusted debt to EBITDA falling toward 4.0x by 2028." S&P could revise the outlook back to stable if Iceland Group underperforms its base case, such that: -- EBITDAR to cash interest and rent coverage remains below 1.5x without foreseeable improvement; -- FOCF after leases is weaker than our expectations; or -- If the group adopts a more aggressive financial policy than expected. S&P could raise the rating if Iceland Group shows a track record of the following metrics: -- Materially positive FOCF after leases at least in line with S&P's expectations; -- EBITDAR to cash interest and rent coverage of about 1.5x; -- A debt deleveraging trajectory in line with S&P's base case, and medium-term financial policy adhering to its public target of 3x reported debt leverage; and -- The group's 2028 debt maturities are successfully refinanced. WOODVILLE CONSULTANTS: Kroll Appointed as Joint Administrators -------------------------------------------------------------- Woodville Consultants 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-2026-005434, and Robert William Goodhew and Andrew Gordon Stoneman of Kroll Advisory Ltd were appointed as Joint Administrators on July 16, 2026. The company specialized in financial management. Its registered office and principal trading address is 5 Gelliwastad Road, Pontypridd, CF37 2BP. The Joint Administrators can be contacted at: Robert William Goodhew Andrew Gordon Stoneman Kroll Advisory Ltd The News Building Level 6, 3 London Bridge Street London SE1 9SG Further details contact: The Joint Administrators Tel: 020 7089 4700 Email: Woodville@Kroll.com Alternative contact: Samuel Warlow ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2026. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. 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