260731.mbx

260731.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, July 31, 2026, Vol. 27, No. 152 Headlines G E R M A N Y ABC SME LEASE 10: DBRS Confirms BB(low) Rating on Class D Notes G R E E C E BALLY'S INTRALOT: DBRS Confirms B(high) Rating, Trend Stable I R E L A N D CONTEGO CLO XVI: S&P Assigns B- (sf) Rating to Class F Notes FASTNET SECURITIES 18: DBRS Confirms BB(low) Rating on Cl. E Notes ROCKFORD TOWER 2026-1: S&P Assigns B- (sf) Rating to Class F Notes I T A L Y EUROHOME (ITALY): Moody's Ups Rating on EUR211.95MM A Notes to Ba1 POP NPLs 2020: DBRS Confirms CCsf Rating on Class B Notes N E T H E R L A N D S HILL FL 2026-1: DBRS Finalizes BB(high) Rating on Class E Notes LOPAREX MIDCO: S&P Downgrades ICR to 'D' on Missed Payments R U S S I A AKFA ALUMINIUM: S&P Alters Outlook to Positive, Affirms 'B+' ICR S P A I N AUTONORIA SPAIN 2023: DBRS Confirms BB(high) Rating on Cl. F Notes S W I T Z E R L A N D BREITLING HOLDINGS: Moody's Cuts CFR & Instrument Ratings to Caa1 T U R K E Y EXPORT CREDIT: Moody's Affirms Ba3 LT Issuer Rating, Outlook Stable NUROL INVESTMENT: Moody's Ups Issuer Ratings to B2, Outlook Stable U N I T E D K I N G D O M ABBEYGLEN PROPERTIES: MHA Appointed as Joint Administrators BLETCHLEY PARK 2025-1: DBRS Hikes Rating on Cl. X2 Notes to B(low) CARTER WELLS: MacDonald Partnership Appointed as Administrator CHESHIRE 2025-1: S&P Affirms 'B+ (sf)' Rating on F-Dfrd Notes ECLIPSE SOFTWARE: PKF Littlejohn Appointed as Joint Administrators ELM HOUSE (UK): CG & Co Appointed as Joint Administrators HERMITAGE 2024: DBRS Confirms BB(high) Rating on Class E Notes HERMITAGE 2026: DBRS Assigns BB(high) Rating to Class E Notes MAX FLEETSUPPORT: Leonard Curtis Appointed as Joint Administrators NEWDAY FUNDING 2026-1: DBRS Gives (P)BB Rating on Class E Notes PAYSAFE LTD: S&P Assigns 'B' Rating to Proposed Term Loan B RMAC NO.3: S&P Affirms 'B+ (sf)' Rating on Class F-Dfrd Notes SNACK FRESH: Springfields Advisory Appointed as Administrator SUPERBIKE FACTORY GROUP: KR8 Advisory Appointed as Administrator SUPERBIKE FACTORY LIMITED: KR8 Advisory Appointed as Administrators TWIN BRIDGES 2026-1: DBRS Gives (P)Bsf Rating on Cl. X Notes WELSTED JOINERY: Carter Clark, BTG Begbies Named as Administrators WINCHESTER 1: S&P Affirms 'BB (sf)' Rating on Class E-Dfrd Notes X X X X X X X X [] BOOK REVIEW: LING The Rise, Fall, & Return of a Texas Titan - - - - - ============= G E R M A N Y ============= ABC SME LEASE 10: DBRS Confirms BB(low) Rating on Class D Notes --------------------------------------------------------------- DBRS Ratings GmbH (Morningstar DBRS) confirmed the credit ratings on the notes issued by abc SME Lease Germany S.A., acting in respect of its Compartment 8 (abc 8), abc SME Lease Germany S.A., acting in respect of its Compartment 9 (abc 9) and abc SME Lease Germany S.A., acting in respect of its Compartment 10 (abc 10) (the Issuers): abc 8 -- Class A Notes confirmed at AAA (sf) -- Class B Notes confirmed at AAA (sf) abc 9 -- Class A Fixed Rate Amortising Notes confirmed at AAA (sf) -- Class B Fixed Rate Amortising Notes confirmed at AAA (sf) abc 10 -- Class A1 Notes confirmed at AAA (sf) -- Class A2 Notes confirmed at AAA (sf) -- Class B Notes confirmed at A (low) (sf) -- Class C Notes confirmed at BB (high) (sf) -- Class D Notes confirmed at BB (low) (sf) CREDIT RATING RATIONALE The credit rating actions follow an annual review of the transactions and are based on the following analytical considerations: -- Portfolio performance, in terms of delinquencies, defaults, and losses, as of the May 2026 payment date; -- Probability of default (PD), loss given default (LGD), and expected loss assumptions on the remaining receivables; and -- Current available credit enhancement to the notes to cover the expected losses at their respective credit rating levels. The transactions are securitisations of portfolios of commercial leases and consist of the issuance of notes backed by receivables arising from fixed-rate leasing contracts granted by: -- for abc 8: abcfinance GmbH (abcfinance), ETL Finance GmbH & Co. KG, milon financial services GmbH, Hako Finance GmbH, and Schneidereit Finance GmbH; -- for abc 9: abcfinance GmbH (abcfinance), milon financial services GmbH, Hako Finance GmbH, and Schneidereit Finance GmbH; -- for abc 10: abcfinance GmbH (abcfinance), Hako Finance GmbH, and Schneidereit Finance GmbH (together, the Originators) to small businesses and professional clients residing in Germany. The Originators (all either majority- or fully owned subsidiaries of abcfinance) service the lease portfolio while abcbank GmbH (abcbank) acts as the seller and master servicer for these transactions. akf bank GmbH & Co KG has been appointed as backup servicer. abc 8, abc 9 and abc 10 closed in August 2022, September 2023 and June 2025, respectively. Additionally, abc 8 included an initial 24-month revolving period, which ended on the August 2024 payment date. With regard to abc 10, Morningstar DBRS maintains a public long-term issuer credit rating at AAA on the European Investment Fund (EIF or the Class A1 Guarantor). The EIF issued an unconditional and irrevocable guarantee on first demand on the due and punctual timely payment of interest amounts and ultimate principal amounts due under the Class A1 Notes to the security trustee and for the benefit of the Class A1 Noteholders. However, the performance of the securitised portfolio and the structural features of the transaction are, in themselves, sufficient to support the assigned credit rating on the Class A1 Notes, irrespective of the contribution of the guarantee. PORTFOLIO ASSUMPTIONS AND KEY DRIVERS Morningstar DBRS conducted a loan-by-loan analysis of the remaining pool of receivables and updated its base case cumulative PD and LGD assumptions to: -- abc 8: 2.3% and 47.5%, respectively, -- abc 9: 2.9% and 49.9%, respectively, -- abc 10: 5.6% and 48.6%, respectively. CREDIT ENHANCEMENT The subordination of the respective junior obligations and a reserve floor (for abc 8 and abc 9 only) provides credit enhancement to the rated notes. As of the May 2026 payment date: -- abc 8: credit enhancement to the Class A and Class B Notes increased to 49.7% and 45.9% respectively, up from 25.3% and 23.4% respectively, at last annual review. -- abc 9: credit enhancement to the Class A and Class B Notes increased to 44.4% and 41.2% respectively, up from 26.5% and 22.7% respectively, at last annual review. -- abc 10: credit enhancement to Class A1, Class A2, Class B, Class C and Class D Notes increased to 19.6%, 19.6%, 11.7%, 7.3% and 1.8% respectively, up from 19.2%, 19.2%, 11.2%, 6.8% and 1.3% respectively, at closing. abc 8 and abc 9 benefit from liquidity support provided by a liquidity reserve fund, available to cover senior expenses and interest payments due on the Class A and Class B Notes. The reserves may also provide credit enhancement on the payment date on which the portfolios have fully repaid. abc 10 also benefits from the amortising liquidity reserve, which will be available to cover expenses, senior fees, the Class A1 guarantee fee, and interest on the Class A1 and Class A2 Notes. For abc 8, the reserve was funded to EUR 6.8 million at closing through a subordinated loan granted by abcbank and has a target balance equal to 1.3% of the outstanding principal balance of the notes, subject to a floor of EUR 3.4 million. As of the May 2026 payment date, the reserve remained at its target balance of EUR 3.4 million (the floor). For abc 9, the reserve was funded to EUR 8.1 million at closing through a subordinated loan granted by abcbank and has a target balance equal to 2.0% of the outstanding principal balance of the notes, subject to a floor of EUR 4.0 million. As of the May 2026 payment date, the reserve fund remained at its target balance of EUR 4.0 million (the floor). For abc 10, the reserve was funded to EUR 5.0 million at closing by the seller and has a target balance equal to 1.1% of the outstanding principal balance of the notes, subject to a floor of EUR 2.3 million. As of the May 2026 payment date, the reserve fund remained at its target balance of EUR 3.5 million. For abc 8, Citibank Europe plc, Germany branch acts as the account bank for the transaction. Based on Morningstar DBRS' AA (low) credit rating on Citibank Europe plc, the downgrade provisions outlined in the transaction documents, and other mitigating factors inherent in the transaction structure, Morningstar DBRS considers the risk arising from the exposure to the account bank to be consistent with the credit ratings assigned to the notes, as described in Morningstar DBRS' "Legal and Derivative Criteria for European and Asia-Pacific Structured Finance Transactions" methodology. For abc 9 and abc 10, The Bank of New York Mellon, Frankfurt branch (BNYM Germany) acts as the account bank for the transactions. Based on Morningstar DBRS' private credit rating on BNYM Germany, the downgrade provisions outlined in the transactions' documents, and other mitigating factors inherent in the transactions' structure, Morningstar DBRS considers the risk arising from the exposure to the account bank to be consistent with the credit ratings assigned to the notes, as described in Morningstar DBRS' "Legal and Derivative Criteria for European and Asia-Pacific Structured Finance Transactions" methodology. ING Bank N.V. (ING Bank) is the swap counterparty for abc 10. Morningstar DBRS' public credit rating on ING Bank meets the criteria to act in such capacity. The transaction documents contain downgrade provisions consistent with Morningstar DBRS' criteria. Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transactions' documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance. Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. Notes: All figures are in euros unless otherwise noted. =========== G R E E C E =========== BALLY'S INTRALOT: DBRS Confirms B(high) Rating, Trend Stable ------------------------------------------------------------ DBRS Ratings GmbH (Morningstar DBRS) notes that, effective January 15, 2026, Intralot S.A. changed its name to Bally's Intralot S.A. Morningstar DBRS confirmed the Issuer Rating of Bally's Intralot S.A. (Intralot or the Company) at B (high) and changed the trend to Stable from Positive following the Company's proposed acquisition of Evoke plc (Evoke), a global betting and gaming operator, announced on June 5, 2026. The expected closing date, subject to regulatory approval, is in Q4 2026 or Q1 2027. KEY CREDIT RATING CONSIDERATIONS The rating action reflects the announcement of Intralot's proposed acquisition of Evoke (the acquisition), implying an enterprise value of approximately GBP 2.2 billion. The transaction is expected to be structured as an all-share combination with a partial cash alternative and supported by committed financing, including a EUR 200 million bridge facility, GBP 157 million committed facility and a GBP 889 million subordinated facility to refinance existing debt due in 2028 at Evoke. Morningstar DBRS understands that Evoke will keep the financial indebtedness upon transfer of ownership. On a pro forma basis the combination is expected to create a scaled gaming platform with around EUR 3.3 billion of revenue and more than EUR 700 million of EBITDA at the time of the closing on MDBRS adjusted basis. Evoke plc's standalone 2025 revenue and EBITDA stood at GBP 1.8 billion and GBP 356 million, respectively. Morningstar DBRS considers the transaction to be strategically positive as it further expands the Company's presence in B2C iGaming and sports betting, enhances scale and strengthens market positioning in the UK and Europe, and adds established brands such as William Hill and 888 brands to the portfolio. However, the credit rating is constrained by higher leverage, with pro forma gross leverage projected at around 5.4 times (x) for 2026-27 on consolidated basis and margin dilution with EBITDA margins declining to approximately 27% after the acquisition from approximately 40% before the acquisition. The acquisition brings increased exposure to the UK market, which is subject to tightening regulatory and taxation environments, along with execution risks associated with integration as well as synergy realization. The change of the trend to Stable from Positive reflects the financial and operational impact of the acquisition, including execution risk, integration risks, higher leverage, and regulatory pressures, particularly in the UK gaming market. CREDIT RATING DRIVERS Morningstar DBRS may consider a positive credit rating action if the Company successfully integrates Evoke, achieves the targeted synergies, and demonstrates a clear path toward deleveraging supported by sustained EBITDA meaning debt-to-EBITDA of less than 4.5x on a sustainable basis. Morningstar DBRS may consider a negative credit rating action if Intralot's credit metrics deteriorate beyond the forecast assumptions, such as debt-to-EBITDA trending towards 6.0x. Morningstar DBRS may also consider a negative credit rating action if the Issuer takes on incremental debt and/or if negative events affect its business risk profile, such as adverse business development (particularly in the UK as the consequence of regulation changes) or as a result of a less conservative dividend policy. EARNINGS OUTLOOK Morningstar DBRS expects the combined pro forma revenue and Morningstar DBRS Lease-Adjusted EBITDA to be, respectively, EUR 3.3 billion and EUR 729 million for F2026 and EUR 3.5 billion and EUR 844 million F2027. Revenue growth is expected to be driven by continued expansion in international markets and the cross-selling among segments, particularly in the UK and Europe. However, this is expected to be partially offset by declining performance in the UK retail segment and the impact of higher gaming taxes. EBITDA margins are expected to decline in the near term, reflecting both the change in business mix and the increase as mentioned in gaming duties, including the rise in UK iGaming taxation to 40% from 21% effective April 2026 and further increases in betting duty in 2027, which are mitigated by cutting marketing and staff costs as well as synergies from the acquisition. The Morningstar DBRS forecast includes estimated synergies as the result of business combination of around EUR 97 million in F2027. FINANCIAL OUTLOOK The transaction is expected to result in a material increase in total debt and a higher interest burden, particularly because of the expected introduction of high yield subordinated financing. The Company has not disclosed any leverage targets, however we expect closing net leverage of around 4.8x, which roughly translates to Morningstar DBRS-adjusted gross debt-to-EBITDA of about 5.2x. Although leverage is expected to remain elevated after the closing, Morningstar DBRS anticipates gradual deleveraging over the medium term, supported by EBITDA growth and the realization of estimated cost synergies from F2027 on, as well as mandatory debt reduction. Liquidity of Intralot is considered adequate supported by full availability under the EUR 160 million committed revolving credit facility. CREDIT RATING RATIONALE Comprehensive Business Risk Assessment (CBRA): bb (low) The business combination captures a moderately positive effect on the Issuer's CBRA from the acquisition, such as improved scale, a stronger market positioning in the European iGaming industry, and an enhanced brand portfolio with the recognized brands of Willam Hill, 888casino, and 888sport, among others. These strengths are partly offset by increased concentration in the UK market, exposure to tightening regulatory environment, and lower post-acquisition profitability levels. Additionally, the CBRA reflects the Company's leading iGaming position in the UK with a combined market share of approximately 25% and 20% market share in sports betting in the UK. The UK gaming sector is mature and heavily regulated by both government and nongovernmental organizations, such as the UK's Gambling Commission, providing a transparent regulatory framework. Intralot has more than 30 years of operating experience in a regulated gaming industry benefiting from high barriers to entry; the proven ability to win long-term contracts and retain clients with high contract renewal rate in its regulated US state lottery segment; and a suite of proprietary technology solutions with well-known brand names. Conversely, Morningstar DBRS' analysis also considers certain credit rating constraints, including the Company's increased exposure to the UK and to the B2C market, which results in more revenue volatility compared with the legacy B2B lottery profile, and Evoke's weaker profitability (higher retail business composition). Morningstar DBRS has applied a -0.5 notch adjustment for Environmental, Social, and Governance considerations on the CBRA of the group. Comprehensive Financial Risk Assessment (CFRA): bb (low)/b (high) Following the acquisition, combined gross leverage is expected to increase materially, with pro forma debt-to-EBITDA rising above 5.0x initially. Morningstar DBRS expects gradual deleveraging after closing of the transaction, driven primarily by EBITDA growth and to some extent mandatory debt reduction of the Greek Term Loan and some portion of the subordinated debt. Intrinsic Assessment: bb (low) The Intrinsic Assessment (IA) is based on the CBRA and CFRA. Taking into consideration peer comparisons, among other factors, Morningstar DBRS placed the IA in the middle of the IA Range. Additional Considerations Additional considerations include a total -1 notch for structural subordination and potential constraints on dividend upstreaming from Evoke within the Company. ENVIRONMENTAL, SOCIAL, AND GOVERNANCE CONSIDERATIONS ESG Considerations had a relevant effect on the credit analysis. Social (S) Factors The following Social factor had a relevant effect on the credit analysis: Morningstar DBRS considered the Social Impact of Products and Services as a relevant Social factor for the Company. This factor was included in the analysis because of Intralot's exposure to the lottery and gaming industry, which is subject to safeguards and regulations to uphold responsible gaming practices and to protect vulnerable populations. The increasing regulatory requirements in the regions in which the Company operates could pose a financial or reputational risk to Intralot. Morningstar DBRS considered this factor as Relevant (rather than Significant) because of the nature of Intralot's technology services, which facilitate its customers' regulatory reporting obligations; the Company's industry certifications, including the World Lottery Association Responsible Gaming Framework Certification; and Intralot's operating record of more than 30 years in the sector. Governance (G) Factors The following Governance factor had a relevant effect on the credit analysis: Morningstar DBRS considered the Governance Impact also relevant, particularly with respect to Evoke, which has ongoing legal and regulatory challenges in certain jurisdictions, including Austria and Germany, and has recorded provisions for customer claims related to historical operations. Evoke has also recorded GBP 119 million as provisions in 2025 for these customer claims. Notes: All figures are in euros unless otherwise noted. ============= I R E L A N D ============= CONTEGO CLO XVI: S&P Assigns B- (sf) Rating to Class F Notes ------------------------------------------------------------ S&P Global Ratings assigned its credit ratings to Contego CLO XVI DAC's A Loan and class A, B, C, D, E, and F notes. At closing, the issuer also issued EUR33.80 million unrated subordinated notes. The reinvestment period will be approximately 4.5 years, while the noncall period will be 1.6 years after closing. Under the transaction documents, the rated notes and loan will pay quarterly interest unless a frequency switch event occurs. Following this, the notes and loan will switch to semiannual payments. The ratings assigned to the notes and loan reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes and loan through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,789.68 Default rate dispersion 448.49 Weighted-average life (years) 4.94 Obligor diversity measure 154.09 Industry diversity measure 23.60 Regional diversity measure 1.40 Transaction key metrics Total par amount (mil. EUR) 400 Defaulted assets (mil. EUR) 0 Number of performing obligors 178 Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 0.00 Target 'AAA' weighted-average recovery (%) 35.65% Actual weighted-average spread net of floors (%) 3.50 Actual weighted-average coupon (%) 4.46 Rating rationale S&P said, "Our ratings reflect our assessment of the collateral portfolio's credit quality, which has a weighted-average rating of 'B'. "The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and bonds. Therefore, we conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we used the EUR400 million target par amount, the covenanted weighted-average spread of 3.50%, the covenanted weighted-average coupon of 4.50%, and the target weighted-average recovery rate at all rating levels. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "Under our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "The transaction's legal structure and framework is bankruptcy remote, in line with our legal criteria. "Our credit and cash flow analysis indicates that the available credit enhancement for the class B to E notes could withstand stresses commensurate with higher ratings than those assigned. However, as the CLO is still in its reinvestment phase starting from the effective date, during which the transaction's credit risk profile could deteriorate, we capped our ratings on these notes." The class A Loan and A notes can withstand stresses commensurate with the assigned ratings. The class F notes' current break-even default rate cushion is negative at the assigned rating. S&P said, "Nevertheless, based on the portfolio's actual characteristics and additional overlaying factors, including our long-term corporate default rates and recent economic outlook, we believe this class can sustain a steady-state scenario, in accordance with our criteria." S&P's analysis further reflects several factors, including: -- The class F notes' available credit enhancement, which is in the same range as that of other CLOs S&P has rated and that has recently been issued in Europe. -- S&P said, "Our model-generated portfolio default risk, which is at the 'B-' rating level at 25.18% (for a portfolio with a weighted-average life of 4.94 years) versus 15.81% if we were to consider a long-term sustainable default rate of 3.20% for 4.94 years." -- Whether the tranche is vulnerable to nonpayment. -- If there is a one-in-two chance for this tranche defaulting. -- If S&P envision this tranche defaulting in the next 12-18 months. S&P said, "Following this analysis, we consider that the available credit enhancement for the class F notes is commensurate with the assigned 'B- (sf)' rating. "Considering our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe our ratings are commensurate with the available credit enhancement for all rated classes of notes and the class A Loan. "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we also included the sensitivity of the ratings on the class A to E notes and A Loan, based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F notes." Environmental, social, and governance S&P said, "We regard the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with our benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit assets from being related to certain activities. Accordingly, since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in our rating analysis to account for any ESG-related risks or opportunities." Contego CLO XVI DAC is a European cash flow CLO securitization of a revolving pool, comprising euro-denominated senior secured loans and bonds issued mainly by speculative-grade borrowers. Five Arrows Managers LLP manages the transaction. Ratings Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ A AAA (sf) 168.50 38.00 Three/six-month EURIBOR plus 1.27% A Loan AAA (sf) 79.50 38.00 Three/six-month EURIBOR plus 1.27% B AA (sf) 44.00 27.00 Three/six-month EURIBOR plus 1.75% C A (sf) 24.00 21.00 Three/six-month EURIBOR plus 2.00% D BBB- (sf) 28.00 14.00 Three/six-month EURIBOR plus 2.90% E BB- (sf) 18.00 9.50 Three/six-month EURIBOR plus 5.35% F B- (sf) 12.00 6.50 Three/six-month EURIBOR plus 8.58% Sub notes NR 33.80 N/A N/A *The ratings assigned to the A Loan and class A and B notes address timely interest and ultimate principal payments. S&P's ratings address ultimate interest and principal payments on the rest of the other rated notes. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. FASTNET SECURITIES 18: DBRS Confirms BB(low) Rating on Cl. E Notes ------------------------------------------------------------------ DBRS Ratings GmbH (Morningstar DBRS) took the following credit rating actions on the notes issued by Fastnet Securities 16 DAC (FN16), Fastnet Securities 18 DAC (FN18) and Fastnet Securities 19 DAC (FN19): FN16: -- Class A2 Notes confirmed at AAA (sf) -- Class A3 Notes confirmed at AAA (sf) -- Class B Notes confirmed at AA (high) (sf) -- Class C Notes upgraded from A (high) (sf) to AA (low) (sf) -- Class D Notes upgraded from BBB (high) (sf) to A (low) (sf) -- Class E Notes confirmed at BB (sf) FN18: -- Class A2 Notes confirmed at AAA (sf) -- Class A3 Notes confirmed at AAA (sf) -- Class B Notes confirmed at AA (sf) -- Class C Notes confirmed at A (high) (sf) -- Class D Notes confirmed at BBB (high) (sf) -- Class E Notes confirmed at BB (low) (sf) FN19: -- Class A1 Notes confirmed at AAA (sf) -- Class A2 Notes confirmed at AAA (sf) Morningstar DBRS does not rate the respective Class Z Notes also issued in the transactions. CREDIT RATING RATIONALE The credit rating actions follow an annual review of the transactions and are based on the following analytical considerations: -- Portfolio performance, in terms of delinquencies, defaults, and losses, as of the May 2026 payment dates; -- Probability of default (PD), loss given default (LGD), and expected loss assumptions on the remaining receivables; and -- Current available credit enhancement to the notes to cover the expected losses at their respective credit rating levels. The transactions are static securitisations of Irish first-lien, owner-occupied residential mortgages originated and serviced by Permanent TSB plc (PTSB). FN16 closed in July 2021 with an initial portfolio balance of EUR 3.9 billion; FN18 closed in June 2022 with an initial portfolio balance of EUR 3.0 billion; and FN19 closed in June 2024 with an initial portfolio balance of EUR 1.5 billion. PORTFOLIO PERFORMANCE As of the May 2026 payment dates, loans 0-30, 30-60, 60-90 and more than 90 days delinquent as a percentage of the outstanding principal balance were as follows: -- FN16: 0.7%, 0.2%. 0.1% and 0.2% respectively; -- FN18: 0.7%, 0.1%, 0.1% and 0.3% respectively; and -- FN19: 0.2%, 0.1%, 0.0% and 0.04% respectively. There have been no repossessions to date but all three transactions recorded minimal realised losses. PORTFOLIO ASSUMPTIONS AND KEY DRIVERS Morningstar DBRS conducted a loan-by-loan analysis of the remaining pool of receivables in each transaction and updated its base case PD and LGD assumptions as follows: -- FN16: 2.2% and 0.5%, respectively; -- FN18: 1.8% and 0.5%, respectively; and -- FN19: 1.2% and 0.5%, respectively. CREDIT ENHANCEMENT The subordination of the respective junior obligations and the general reserve funds provide credit enhancement to the rated notes in the respective transactions. As of the May 2026 payment dates, credit enhancement levels compared to the previous annual review of the transactions increased as follows: FN16: -- Class A2 and Class A3 Notes to 37.5% from 30.5% -- Class B Notes to 28.2% from 22.9% -- Class C Notes to 13.5% from 11.0% -- Class D Notes to 8.1% from 6.5% -- Class E Notes to 5.1% from 4.1% FN18: -- Class A2 and Class A3 Notes to 29.3% from 22.8% -- Class B Notes to 22.3% from 17.4% -- Class C Notes to 10.7% from 8.3% -- Class D Notes to 6.1% from 4.6% -- Class E Notes to 3.8% from 2.8% FN19: -- Class A1 and Class A2 Notes to 12.7% from 10.8% The transactions benefit from a general reserve fund providing credit support and a liquidity reserve fund providing liquidity support, both funded at closing through a subordinated loan. Together, the general and liquidity reserve funds equal 1.0% of the initial aggregate balance of the notes in each transaction. As of the May 2026 payment dates, the general and liquidity reserve funds were at their target levels, as follows: -- FN16: EUR 30.7 million and EUR 8.8 million respectively; -- FN18: EUR 20.2 million and EUR 9.7 million respectively; and -- FN19: EUR 4.0 million and EUR 10.6 million respectively. BNP Paribas SA, Dublin Branch (BNP Dublin) acts as the account bank for FN16, U.S. Bank Europe DAC (US Bank) acts as the account bank for FN18 while the Bank of New York Mellon SA/NV, Dublin Branch (BNYM Dublin) acts as the account bank for FN19. Based on Morningstar DBRS' private credit ratings on BNP Dublin, US Bank and BNYM Dublin, the downgrade provisions outlined in the transactions documents, and other mitigating factors inherent in the transactions structures, Morningstar DBRS considers the risk arising from the exposure to the account banks to be consistent with the credit ratings assigned to the notes in the transactions, as described in Morningstar DBRS' "Legal and Derivative Criteria for European and Asia-Pacific Structured Finance Transactions" methodology. Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance. Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. Notes: All figures are in Euros unless otherwise noted. ROCKFORD TOWER 2026-1: S&P Assigns B- (sf) Rating to Class F Notes ------------------------------------------------------------------ S&P Global Ratings assigned its credit ratings to Rockford Tower Europe CLO 2026-1's class A, B, C, D, E, and F notes and A Loan. At closing, the issuer also issued EUR34.15 million unrated subordinated notes. The reinvestment period will be approximately 4.5 years, while the noncall period will be 1.5 years after closing. Under the transaction documents, the rated notes will pay quarterly interest unless there is a frequency switch event. Following this, the notes will switch to semiannual payment. The ratings assigned to the notes reflect S&P's assessment of: -- The diversified collateral pool, which primarily comprises broadly syndicated speculative-grade senior secured term loans and bonds that are governed by collateral quality tests. -- The credit enhancement provided through the subordination of cash flows, excess spread, and overcollateralization. -- The collateral manager's experienced team, which can affect the performance of the rated notes and loan through collateral selection, ongoing portfolio management, and trading. -- The transaction's legal structure, which is bankruptcy remote. -- The transaction's counterparty risks, which are in line with S&P's counterparty rating framework. Portfolio benchmarks S&P Global Ratings' weighted-average rating factor 2,699.86 Default rate dispersion 585.17 Weighted-average life (years) 5.07 Obligor diversity measure 144.78 Industry diversity measure 24.17 Regional diversity measure 1.30 Transaction key metrics Total par amount (mil. EUR) 400 Defaulted assets (mil. EUR) 0 Number of performing obligors 166 Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 1.75 Target 'AAA' weighted-average recovery (%) 37.03% Actual weighted-average spread net of floors (%) 3.55 Actual weighted-average coupon (%) 7.07 Rationale S&P said, "Our ratings reflect our assessment of the collateral portfolio's credit quality, which has a weighted-average rating of 'B'. "The portfolio is well-diversified, primarily comprising broadly syndicated speculative-grade senior secured term loans and bonds. Therefore, we conducted our credit and cash flow analysis by applying our criteria for corporate cash flow CDOs. "In our cash flow analysis, we used the EUR400.00 million target par amount, the actual weighted-average spread of 3.55%, the actual weighted-average coupon of 7.07%, and the actual weighted-average recovery rate. We applied various cash flow stress scenarios, using four different default patterns, in conjunction with different interest rate stress scenarios for each liability rating category. "The transaction's documented counterparty replacement and remedy mechanisms adequately mitigate its exposure to counterparty risk under our current counterparty criteria. "Under our structured finance sovereign risk criteria, the transaction's exposure to country risk is sufficiently mitigated at the assigned ratings. "The transaction's legal structure and framework is bankruptcy remote, in line with our legal criteria. "Our credit and cash flow analysis indicates that the available credit enhancement for the class B, C, D, and E notes could withstand stresses commensurate with higher ratings than those assigned. However, as the CLO will be in its reinvestment phase starting from the effective date, during which the transaction's credit risk profile could deteriorate, we have capped our ratings assigned to the notes." The class A and F notes and A Loan can withstand stresses commensurate with the assigned ratings. S&P said, "Following our analysis of the credit, cash flow, counterparty, operational, and legal risks, we believe that our ratings are commensurate with the available credit enhancement for all rated classes of notes. "In addition to our standard analysis, we have also included the sensitivity of the ratings on the class A to E notes and A Loan, based on four hypothetical scenarios. "As our ratings analysis makes additional considerations before assigning ratings in the 'CCC' category, and we would assign a 'B-' rating if the criteria for assigning a 'CCC' category rating are not met, we have not included the above scenario analysis results for the class F notes." Environmental, social, and governance S&P regards the exposure to environmental, social, and governance (ESG) credit factors in the transaction as being broadly in line with its benchmark for the sector. Primarily due to the diversity of the assets within CLOs, the exposure to environmental credit factors is viewed as below average, social credit factors are below average, and governance credit factors are average. For this transaction, the documents prohibit assets from being related to certain activities. Accordingly, since the exclusion of assets from these industries does not result in material differences between the transaction and our ESG benchmark for the sector, no specific adjustments have been made in S&P's rating analysis to account for any ESG-related risks or opportunities. Rockford Tower Europe CLO 2026-1 is a European cash flow CLO securitization of a revolving pool, comprising euro-denominated senior secured loans and bonds issued mainly by speculative-grade borrowers. Rockford Tower Capital Management LLC manages the transaction. Ratings Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ A AAA (sf) 154.00 38.00 Three/six-month EURIBOR plus 1.28% A Loan AAA (sf) 94.00 38.00 Three/six-month EURIBOR plus 1.28% B AA (sf) 44.00 27.00 Three/six-month EURIBOR plus 1.75% C A (sf) 24.00 21.00 Three/six-month EURIBOR plus 2.00% D BBB- (sf) 28.00 14.00 Three/six-month EURIBOR plus 2.90% E BB- (sf) 18.00 9.50 Three/six-month EURIBOR plus 5.50% F B- (sf) 12.00 6.50 Three/six-month EURIBOR plus 7.80% Sub NR 34.15 N/A N/A *The ratings assigned to the class A and B notes and A Loan address timely interest and ultimate principal payments. Our ratings address ultimate interest and principal payments on the rest of the other rated notes. §The payment frequency switches to semiannual and the index switches to six-month EURIBOR when a frequency switch event occurs. EURIBOR--Euro Interbank Offered Rate. NR--Not rated. N/A--Not applicable. ========= I T A L Y ========= EUROHOME (ITALY): Moody's Ups Rating on EUR211.95MM A Notes to Ba1 ------------------------------------------------------------------ Moody's Ratings has upgraded the rating of Class A notes in Eurohome (Italy) Mortgages S.r.l. Moody's affirmed the ratings of the notes that had sufficient credit enhancement to maintain their current ratings. EUR211.95M Class A Notes, Upgraded to Ba1 (sf); previously on Nov 28, 2025 Upgraded to Ba3 (sf) EUR15.9M Class B Notes, Affirmed Ca (sf); previously on Nov 28, 2025 Affirmed Ca (sf) EUR11.55M Class C Notes, Affirmed Ca (sf); previously on Nov 28, 2025 Affirmed Ca (sf) EUR7.2M Class D Notes, Affirmed C (sf); previously on Nov 28, 2025 Affirmed C (sf) EUR10.3M Class E Notes, Affirmed C (sf); previously on Nov 28, 2025 Affirmed C (sf) The notes are backed by residential contracts originated by Deutsche Bank Mutui SpA and serviced by Banca Finanziaria Internazionale S.p.A. Maximum achievable rating is Aa2 (sf) for structured finance transactions in Italy, driven by the local currency country ceiling of the country. RATINGS RATIONALE The upgrade of the rating of Class A notes is prompted by an increase in their credit enhancement to 21.7% from 19.8% since the last rating action. The rating action took into consideration the notes' exposure to relevant counterparties, such as servicer, account banks or swap providers as well as eligible investments for cash proceeds. The principal methodology used in these ratings was "Residential Mortgage-Backed Securitizations" published in October 2024. 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 and (4) a decrease in sovereign risk. 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. POP NPLs 2020: DBRS Confirms CCsf Rating on Class B Notes --------------------------------------------------------- DBRS Ratings GmbH (Morningstar DBRS) confirmed its credit ratings on the notes issued by POP NPLs 2020 S.r.l. (the Issuer) as follows: -- Class A at BBB (high) (sf) -- Class B at CC (sf) The trend on the Class A notes is Stable. The transaction represents the issuance of Class A, Class B, and Class J notes (collectively, the Notes). Morningstar DBRS does not rate the Class J notes. At issuance, the Notes were backed by a EUR 919.9 million portfolio by gross book value, consisting of Italian secured and unsecured nonperforming loans originated and sold to the Issuer by 15 Italian banks. Fire S.p.A. (Fire) and doValue S.p.A. (together with Fire, the Special Servicers) service the receivables. doNext S.p.A. acts as the master servicer, while Banca Finanziaria Internazionale S.p.A. (Banca Finint) operates as the backup servicer. CREDIT RATING RATIONALE The credit rating confirmations follow Morningstar DBRS' review of the transaction and are based on the following analytical considerations: -- Transaction performance: An assessment of portfolio recoveries as of March 2026 focusing on (1) a comparison between actual collections and the Special Servicers' initial business plan forecast, (2) the collection performance observed over recent months, and (3) a comparison between the current performance and Morningstar DBRS' stressed scenarios. -- Updated business plan: The Special Servicers business plan as of December 2024, received in May 2025 and adjusted for actual performance until March 2026, and the comparison with the initial collection expectations. -- Portfolio characteristics: Loan pool composition as of March 2026 and the evolution of its core features since issuance. -- Transaction liquidating structure: The order of priority, which entails a fully sequential amortisation of the Notes (i.e., the Class B notes will begin to amortise following the full repayment of the Class A notes, and the Class J notes will amortise following the repayment of the Class B notes). Additionally, interest payments on the Class B notes become subordinated to principal payments on the Class A notes if the cumulative collection ratio (CCR) or present value cumulative profitability ratio (PV ratio) is lower than 90%. As of the May 2026 interest payment date, these triggers had not been breached. The reported CCR and NPV ratio were 102.5% and 121.7%, respectively, as of 31 March 2026. -- Liquidity support: The transaction benefits from an amortising cash reserve providing liquidity to the structure and covering potential interest shortfall on the Class A notes and senior fees. The cash reserve target amount is equal to 4.0% of the Class A notes' principal outstanding balance, and the recovery expenses cash reserve target amounts to EUR 150,000, both fully funded. -- Counterparty risk: Assessment of the exposure to the transaction account bank and the downgrade provisions outlined in the transaction documents. TRANSACTION AND PERFORMANCE According to the latest investor report from May 2026, the outstanding principal amounts on the Class A, Class B, and Class J notes were EUR 47.4 million, EUR 25.0 million, and EUR 10.0 million, respectively. As of May 2026, the balance on the Class A notes had amortised by 80.4% since issuance, and the current aggregated transaction balance was EUR 82.4 million. As of March 2026, the transaction was performing above the Special Servicers' initial business plan expectations. The actual cumulative gross collections equalled EUR 243.8 million, whereas the Special Servicers' initial business plan estimated cumulative gross collections of EUR 237.0 million for the same period. Therefore, as of March 2026, the transaction was overperforming by EUR 6.9 million (2.9%) compared with the initial business plan expectations. Nevertheless, the overperformance reduced over time, as actual collections over the most recent periods were below business plan expectations. At issuance, Morningstar DBRS estimated cumulative gross collections for the same period of EUR 166.9 million at the BBB (sf) stressed scenario. Therefore, as of March 2026, the transaction was performing above Morningstar DBRS' initial stressed expectations. Pursuant to the requirements set out in the receivable servicing agreement, the Special Servicers are required to provide, on an annual basis, an updated business plan to the relevant counterparties, upon approval by the Committee of the Noteholders. Morningstar DBRS received the last updated business plan in May 2025 and was informed that the release of the updated business plan for 2026 is still pending. The Special Servicers' 2025 business plan, when combined with actual cumulative gross collections of EUR 243.8 million as of March 2026, resulted in total proceeds of EUR 332.4 million. This amount is 16.2% lower than the EUR 396.8 million of total gross recoveries estimated in the initial business plan. Furthermore, from the first quarter of 2025 to the end of the first quarter of 2026, the business plan projected recoveries of EUR 40.8 million, whereas actual collections amounted to EUR 37.9 million, representing an underperformance of 7.0%. In the absence of an updated business plan for 2026, Morningstar DBRS based its analysis on the Special Servicers' 2025 business plan, adjusted to reflect actual cumulative gross collections of EUR 243.8 million as of March 2026. The updated Morningstar DBRS BBB (high) (sf) credit rating stress incorporates additional haircuts to the Servicers' 2025 business plan assumptions, reflecting a more conservative view on future expected collections. Excluding actual collections as of March 2026, the Special Servicers' expected future collections from the April 2026 amount to EUR 88.5 million. The updated Morningstar DBRS credit rating stress assumes a haircut of 18.8% at the BBB (high) (sf) stressed scenarios to the Special Servicers' business plan, considering future expected collections from April 2026. In Morningstar DBRS' CCC (sf) (or below) scenarios, the updated forecast was adjusted only in terms of actual collections to the date and timing of future expected collections. Considering the overperformance of cumulative actual collections and the rapid redemption, the Class A notes may now pass higher credit rating stresses in the cash flow analysis. However, Morningstar DBRS does not view a higher credit rating on the Class A notes as commensurate with the transaction's risk, given the potential variability of nonperforming loans' cash flows, the recent underperformance relative to the plan, and the exposure to the transaction account bank, considering the downgrade provisions outlined in the transaction documents. Given the characteristics of the Class B notes, as defined in the transaction documents, Morningstar DBRS notes that a default would most likely be recognised only at the maturity or early termination of the transaction. The final maturity date of the transaction is in November 2045. Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance. Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. Notes: All figures are in euros unless otherwise noted. ===================== N E T H E R L A N D S ===================== HILL FL 2026-1: DBRS Finalizes BB(high) Rating on Class E Notes --------------------------------------------------------------- DBRS Ratings GmbH (Morningstar DBRS) finalised its provisional credit ratings on the following classes of notes (collectively the Rated Notes) issued by Hill FL 2026-1 B.V. (the Issuer): -- Class A Notes at AAA (sf) -- Class B Notes at AA (sf) -- Class C Notes at A (high) (sf) -- Class D Notes at BBB (sf) -- Class E Notes at BB (high) (sf) Morningstar DBRS did not assign a credit rating to the Class F Notes also issued in this transaction. The transaction is a securitisation of a portfolio of finance lease contracts granted by Hiltermann Lease Groep Holding B.V. (HLGH or the Originator) to commercial borrowers residing or incorporated in the Kingdom of the Netherlands. Hiltermann Lease B.V. (Hiltermann Lease) will act as the initial servicer for the transaction. CREDIT RATING RATIONALE Morningstar DBRS based its credit ratings on the following analytical considerations: -- The transaction's structure, including the form and sufficiency of the available credit enhancement to withstand stressed cash flow assumptions and repay the Issuer's financial obligations according to the terms under which the Rated Notes have been issued; -- The credit quality of HLGH's portfolio, the characteristics of the collateral, its historical performance, and its Morningstar DBRS-projected behaviour under various stress scenarios; -- HLGH's and Hiltermann Lease's capabilities with respect to originations, underwriting, and servicing, and their position in the market and financial strength; -- The operational risk review of HLGH and Hiltermann Lease, which Morningstar DBRS deems to be a below-average originator and servicer, respectively; -- The transaction parties' financial strength with regard to their respective roles; -- The consistency of the transaction's structure with Morningstar DBRS' "Legal and Derivative Criteria for European and Asia-Pacific Structured Finance Transactions"; and -- Morningstar DBRS' sovereign credit rating on the Kingdom of the Netherlands, currently at AAA with a Stable trend. TRANSACTION STRUCTURE The transaction includes an eight-month revolving period during which the Issuer may purchase additional receivables. During this period, the transaction will be subject to eligibility criteria, concentration limits, and additional portfolio criteria designed to limit the potential deterioration of the portfolio quality with which the Issuer will have to comply. The transaction incorporates a combined waterfall that facilitates the distribution of the available distribution amount. The Rated Notes will initially amortise sequentially until a pro rata trigger event occurs. On the breach of the pro rata trigger event, the Rated Notes will amortise pro rata until a sequential payment trigger event occurs, at which point the amortisation of the Rated Notes becomes irreversibly sequential. The pro rata payment trigger event is linked to the Class B Notes to Class E Notes comprising at least 19.5% of the aggregate principal amount outstanding on the Rated Notes. Sequential payment trigger events include, among others, the breach of performance-related triggers or the Originator not exercising the cleanup call option. The unrated Class F Notes have been used to fund the liquidity reserve as well as certain upfront costs and will be redeemed only through available excess spread. Morningstar DBRS does not consider the Class F Notes to provide meaningful subordination to the Rated Notes. The Rated Notes benefit from a fully funded, amortising liquidity reserve, which the Issuer can use to pay senior expenses, swap payments, and interest on the Rated Notes (in as far as the Class C Notes, Class D Notes, and Class E Notes' interest payment is not deferred). The reserve balance is equal to 1.0% of the Rated Notes' principal amount outstanding the closing date, that will amortise to the higher of (1) 0.15% of the principal amount outstanding of the Rated Notes as of the closing date and (2) 1.0% of the principal amount outstanding of the Rated Notes as of the immediately preceding settlement date. All underlying lease receivables are fixed rate while the Rated Notes are indexed to one-month Euribor. Interest rate risk for the Rated Notes is mitigated through an interest rate swap. COUNTERPARTIES ABN AMRO Bank N.V. (ABN Amro) has been appointed as the Issuer's account bank for the transaction. Morningstar DBRS' Long-Term Issuer Rating on ABN AMRO is A (high) with a Stable trend. Morningstar DBRS concludes that ABN AMRO meets the minimum criteria to act in this capacity. The transaction documents contain downgrade provisions relating to the account bank consistent with Morningstar DBRS' legal criteria. The Issuer's accounts include the transaction account and the general reserve account. The Royal Bank of Canada - London branch (RBC-LB) has been appointed as the swap counterparty for the transaction. Morningstar DBRS does not rate RBC-LB but has a public Long-Term Issuer Rating of AA (high) with a Stable trend on Royal Bank of Canada. The hedging documents contain downgrade provisions consistent with Morningstar DBRS' criteria. Morningstar DBRS' credit ratings on the Rated Notes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations for each of the Rated Notes are the related interest amount and the related principal amount outstanding. Morningstar DBRS' credit ratings do not address nonpayment risk associated with contractual payment obligations contemplated in the applicable transaction documents that are not financial obligations. Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. Notes: All figures are in euros unless otherwise noted. LOPAREX MIDCO: S&P Downgrades ICR to 'D' on Missed Payments ----------------------------------------------------------- S&P Global Ratings lowered its issuer credit rating on Loparex Midco B.V. to 'D' from 'CCC' and its senior secured issue-level ratings to 'D'. S&P also lowered its ratings on the pre-exchange first-lien and second-lien term loans to 'D' from 'CC'. S&P lowered all its ratings on Loparex to 'D' because it failed to make scheduled payments on its term loans. The company entered into a forbearance agreement with certain lenders because of missed interest and amortization payments due June 30, 2026, and missed interest payments due July 6, 2026. Loparex missed its June 30 and July 6, 2026, term loan interest payments. It also failed to make scheduled amortization payments due June 30, 2026, on its super-priority first-lien term loans. Loparex and its lenders are negotiating a restructuring support agreement. The negotiation period will extend through Aug. 17, 2026, when the 47-day forbearance period will also end. Because the company failed to make scheduled payments within the original three-day grace period, S&P views this as a breach of imputed promise. Loparex's capital structure includes about $9 million of pre-exchange first-lien term loans that mature August 2026, roughly $730 million of super-priority first-lien term loans that mature February 2027, and about $164 million of second-lien term loans that mature August 2027. The company has missed a scheduled payment on each of its tranches of term loans. S&P will reevaluate its ratings on Loparex as material developments related to its capital structure arise, including the announcement of a more comprehensive debt-restructuring plan. =========== R U S S I A =========== AKFA ALUMINIUM: S&P Alters Outlook to Positive, Affirms 'B+' ICR ---------------------------------------------------------------- S&P Global Ratings revised its outlook on Akfa Aluminium LLC to positive from negative and affirmed its 'B+' issuer credit rating on Akfa. The positive outlook reflects rating upside potential over the next 12 months, contingent upon Akfa maintaining its strong operating performance and cash generation alongside low leverage, improved liquidity, and prudent governance practices. The potential liability under Akfa Aluminium's guarantee for a related party has materially reduced, significantly improving credit metrics. S&P assumes these guarantees will be completely removed by year-end, and that Akfa will not issue further material guarantees. S&P expects Akfa to maintain solid EBITDA and free cash generation over the next two years, driven by continued growth in the Uzbek construction market and operating efficiencies. Akfa has sharply reduced its related-party guarantee exposure. In June 2026, Akfa negotiated amendments to the terms of guarantee agreements, limiting its exposure to a residual shortfall following lenders' enforcement actions. As these guarantees are now backed by sufficient asset collateral at sister companies, Akfa's potential payables under these arrangements have dropped to approximately $14 million, leading to a commensurate reduction in adjusted debt. This results in a drop in adjusted debt to EBITDA to 1.3x for 2026 and 2027, down from 3.8x in 2025. S&P said, "The elimination of related-party guarantees is consistent with our expectations and the group's previous guidance that it was only a temporary measure. Accordingly, we assume these guarantees will be completely removed by the end of 2026 and do not expect any further material transactions of this nature in the future. Otherwise, Akfa's own leverage is moderate, and we expect debt to EBITDA to remain below 2x in most scenarios." S&P said, "We expect Akfa to generate healthy EBITDA and free cash flow over the next two years. Akfa is well-positioned toachieve this by capitalizing on the expanding domestic construction market, driven by strong GDP forecasts and rising wealth. While we expect EBITDA margins to moderate from 2025's record high of 23%, due to rising aluminum and polyvinyl chloride (PVC) costs, they should remain robust at approximately 20%--above the industry average--thanks to Akfa's low-cost domicile and operating efficiencies. This supports projected annual adjusted EBITDA of Uzbekistani som (UZS) 1.1 trillion-UZS1.25 trillion for 2026-2027. Given its solid margins, limited interest burden, and low capital expenditure (capex) requirements, we forecast a free operating cash flow (FOCF) conversion rate of over 50%, resulting in annual FOCF of UZS750 billion-UZS800 billion (about 50% of debt) in 2026-2027. In our base case, we assume 40%-50% of this cash flow will be allocated to dividends, with the remainder retained to support seasonal working capital and scheduled debt repayments." Akfa's liquidity profile remains a rating constraint but could improve over time. S&P said, "Its capital structure is dominated by short- and medium-term instruments, while the lack of committed long-term credit facilities leads us to assess liquidity as less than adequate. Akfa also exhibits substantial intra-year working capital outflows, reflecting its need to purchase and import supplies well in advance. Given solid expected FOCF, this does not materially constrain our view of Akfa's credit quality as long as the group keeps debt low." That said, a ratings upside, however, would require a sustained improvement in Akfa's liquidity profile, a factor driven by the company itself. The group's direct exposure to the Middle East war is limited. Akfa does not operate in the Gulf region, nor does it source raw materials or energy from the area. Furthermore, energy costs represent less than 3% of the total cost base, meaning durably higher oil prices would have a limited direct impact should the conflict persist. S&P also understands that the group can implement mitigating measures, such as sales price management, to limit the impact of rising input costs (primarily aluminum) on profitability. However, Akfa's exposure to the intrinsically volatile construction market leaves it vulnerable to demand headwinds, which could intensify if the prolonged conflict has a material spillover effect on the Uzbek economy. The positive outlook reflects rating upside potential over the next 12 months, contingent upon Akfa maintaining its strong operating performance and cash generation alongside low leverage levels, improved liquidity, and prudent governance practices. S&P said, "We could revise outlook to stable if Akfa's operating performance weakens, with S&P Global Ratings-adjusted debt to EBITDA increasing significantly above 2x and funds from operations (FFO) to debt below 45%. "We could upgrade Akfa in the next 12 months if it continues to post solid EBITDA and free cash generation in line with our base case, with adjusted debt to EBITDA remaining below 2x and FFO to debt well above 45%." An upgrade would be contingent on Akfa sustainably improving liquidity and not pursuing any large non-core transactions that increase its current or future liabilities. ========= S P A I N ========= AUTONORIA SPAIN 2023: DBRS Confirms BB(high) Rating on Cl. F Notes ------------------------------------------------------------------ DBRS Ratings GmbH (Morningstar DBRS) confirmed its credit ratings on the following notes (the Rated Notes) issued by two Autonoria Spain transactions: Autonoria Spain 2023, FT (AS23) -- Class A Notes at AAA (sf) -- Class B Notes at AAA (sf) -- Class C Notes at AA (high) (sf) -- Class D Notes at AA (sf) -- Class E Notes at BBB (sf) -- Class F Notes at BB (high) (sf) Autonoria Spain 2025, FT (AS25) -- Class A Notes at AAA (sf) -- Class B Notes at AA (high) (sf) -- Class C Notes at A (high) (sf) -- Class D Notes at BBB (high) (sf) -- Class E Notes at BB (high) (sf) -- Class F Notes at BB (high) (sf) CREDIT RATING RATIONALE The confirmations follow an annual review of the transactions and are based on the following analytical considerations: -- Portfolio performance, in terms of delinquencies, defaults, and losses, as of the May 2026 payment date; -- Probability of default (PD), loss given default (LGD), and expected net loss assumptions on the remaining receivables; -- Current available credit enhancement to the Rated Notes to cover the expected losses at their respective credit rating levels. Both transactions are securitisations backed by retail auto loan receivables associated with a portfolio of loans granted by Banco Cetelem S.A.U. (Banco Cetelem) to Spanish borrowers for the purchase of new and used vehicles, motorbikes, and recreational vehicles. AS23 closed in September 2023 with an initial collateral portfolio of EUR 575.0 million and included an initial six-month revolving period, which ended on the April 2024 payment date. AS25 closed in June 2025 with an initial collateral portfolio of EUR 950.0 million and included an initial nine-month revolving period, which ended on the April 2026 payment date. As of the May 2026 payment date, the pool factor is 0.48 and 0.94 for AS23 and AS25, respectively. PORTFOLIO PERFORMANCE For AS23, as of the May 2026 payment date, loans that were 30 to 60 days delinquent and 60 to 90 days delinquent represented 0.2% and 0.1% of the outstanding portfolio balance, respectively, while loans more than 90 days delinquent amounted to 0.2%. Cumulative defaults, defined as receivables that are at least 5 monthly instalments in arrears and/or have been declared due and payable by the servicer, have amounted to 1.6% of the aggregate initial collateral balance, up from 1.1% at last annual review, of which 10.5% has been recovered to date. For AS25, as of the May 2026 payment date, loans that were 30 to 60 days delinquent and 60 to 90 days delinquent represented both 0.1% of the outstanding portfolio balance, while loans more than 90 days delinquent amounted to 0.2%. Cumulative defaults, which follow the same definition, have built up to 0.4% of the aggregate initial collateral balance since closing, of which 0.5% has been recovered to date. PORTFOLIO ASSUMPTIONS AND KEY DRIVERS Morningstar DBRS updated its base case PD and LGD assumptions, based on the current pool of receivables, to 2.8% and 77.0%, respectively, for AS23, and to 3.1% and 77.0%, respectively, for AS25. CREDIT ENHANCEMENT The subordination of the respective junior class of notes provides credit enhancement to the Rated Notes. For AS23, as of the May 2026 payment date, credit enhancements to the Class A, Class B, Class C, Class D, Class E, and Class F Notes have remained unchanged since closing at 15.8%, 14.8%, 10.3%, 8.3%, 3.5%, and 2.3%, respectively. For AS25, as of the May 2026 payment date, credit enhancements to the Class A, Class B, Class C, Class D, Class E, and Class F Notes have remained unchanged since closing at 15.5%, 11.2%, 7.2%, 4.5%, 2.0%, and 1.2%, respectively. In both cases, the unchanged levels of credit enhancement are driven by the currently pro rata amortisation of the notes. If a sequential redemption event is triggered, the principal repayment of the notes will become sequential and nonreversible. Sequential redemption events include the breach of performance-related triggers or the Seller not exercising the call option. The transactions benefit from a liquidity reserve, which is available to cover senior expenses, swap payments, and interest on the Rated Notes, only in a restricted scenario where principal collections are insufficient to cover shortfalls. The reserves were funded at closing to EUR 8.43 million and EUR 14.07 million, for AS23 and AS25 respectively, and have a target balance equal to 1.50% of the aggregate outstanding balance of the Rated Notes, subject to a floor of EUR 3.37 million and EUR 5.63 million, respectively. As of the May 2026 payment date, the reserves were at their target balance of EUR 4.08 million and EUR 13.29 million, for AS23 and AS25, respectively. BNP Paribas S.A., Sucursal en España, acts as the issuer account bank for the transactions. Based on Morningstar DBRS' private credit rating on BNP Paribas S.A., Sucursal en España, the downgrade provisions outlined in the transactions' documents, and other mitigating factors inherent in the transaction structure, Morningstar DBRS considers the risk arising from the exposure to the issuer account bank to be consistent with the credit ratings assigned to the Rated Notes, as described in Morningstar DBRS' "Legal and Derivative Criteria for European and Asia-Pacific Structured Finance Transactions" methodology. Banco Cetelem acts as the swap counterparty for the transactions, whose obligations under the swap agreements are in turn guaranteed by BNP Paribas S.A. Morningstar DBRS' Long Term Critical Obligations Rating on BNP Paribas S.A. at AA (high) is consistent with the first credit rating threshold as described in DBRS Morningstar's "Legal and Derivative Criteria for European and Asia-Pacific Structured Finance Transactions" methodology. Morningstar DBRS' credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance. Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. Notes: All figures are in euros unless otherwise noted. ===================== S W I T Z E R L A N D ===================== BREITLING HOLDINGS: Moody's Cuts CFR & Instrument Ratings to Caa1 ----------------------------------------------------------------- Moody's Ratings has downgraded Breitling Holdings S.a r.l.'s (Breitling or the company) corporate family rating to Caa1 from B3 and its probability of default rating to Caa1-PD from B3-PD. Concurrently, the company's instrument ratings, including the EUR1,095 million backed senior secured term loan B (TLB) and the CHF115 million backed senior secured revolving credit facility (RCF) borrowed by Breitling Financing S.a r.l., have been downgraded to Caa1 from B3. The outlook on both entities has been changed to stable from negative. "The rating action reflects Breitling's weak credit metrics, ongoing market headwinds and Moody's expectations that the company's credit metrics will remain consistent with a Caa1 rating for the next 12-18 months" said Guillaume Leglise, a Moody's Ratings Vice President and lead analyst for the company. "While the planned launches of Universal Genève and Gallet should gradually contribute to revenue and earnings growth from the current fiscal year, Moody's believes the company faces some execution risk and has limited time to improve its credit metrics before addressing its upcoming 2028 debt maturities. The rating therefore reflects Moody's views that the execution of the refinancing may be more challenging." added Mr Leglise. RATINGS RATIONALE The downgrade to Caa1 reflects Breitling's decline in EBITDA and weak credit metrics, which have deteriorated materially over the last three years amid softer demand across the luxury watch sector and costs associated with the launch of Universal Genève and Gallet. The rating also reflects Moody's expectations that credit metrics will remain weak over the next 12-18 months despite a projected gradual stabilisation in trading performance and the contribution from the launches of Universal Genève and Gallet from autumn 2026. For the financial year ended March 2026 (fiscal 2025), Moody's-adjusted debt/EBITDA increased to 9.6x from 8.2x a year earlier, while EBITDA less capital expenditure to interest expense remained low at 0.9x. The company's reported gross sales declined by around 11% year-over-year (-5.5% at constant currency) and Moody's-adjusted EBITDA fell to approximately CHF146 million, from CHF182 million a year earlier, reflecting lower volumes, adverse foreign exchange movements and tariffs. Moody's-adjusted free cash flow (FCF) remained negative at around CHF33 million. Moody's forecasts limited organic growth over the next 12-18 months, reflecting a gradual improvement of underlying market conditions, with the recovery in revenue and earnings supported by new collection launches, strategic partnerships, the launch of Universal Genève and Gallet, and cost-saving initiatives. Trading performance has remained subdued in the first two months of fiscal 2026, with flat reported gross sales year-over-year in April-May 2026. Profitability remained under pressure, with reported EBITDA declining to CHF11.7 million compared with CHF16.4 million in the prior-year period. Moody's base case assumes revenue growth of around 7% in fiscal 2026 and Moody's-adjusted EBITDA increasing to around CHF168 million from CHF146 million. However, Moody's believes execution risk remains high because the company's operating underperformance since 2023 and demand for luxury goods remains subdued. Under Moody's base case, Moody's-adjusted leverage will remain above 8.0x through fiscal 2026 and interest coverage will remain around 1.0x. Moody's believes the company has limited time to materially improve earnings and establish the stronger credit profile necessary to support a straightforward refinancing. Although Moody's expects leverage to gradually improve from current levels, supported by stabilisation in sales performance, cost saving initiatives and the earnings contribution from Universal Genève and Gallet, Moody's-adjusted gross debt/EBITDA is likely to remain above 8.0x through fiscal 2026 and only approach 7.0x during fiscal 2027. Without a more substantial and earlier reduction in leverage, a straightforward refinancing could prove challenging. The ratings continue to benefit from Breitling's strong brand recognition within the luxury watch industry, its global distribution network and premium market positioning. Since 2017, the company has significantly expanded its market presence, distribution footprint and product offering. Moody's also recognise the potential long-term benefits from the relaunch of Universal Genève and Gallet, which should broaden the group's product portfolio and customer reach while supporting revenue and earnings growth over the next two to five years. The ratings remain constrained by the company's single-brand concentration, relatively small scale compared with larger luxury peers, narrow product portfolio, highly leveraged financial structure and exposure to cyclical demand for luxury goods. Moody's also considers some execution risk around the launch of the new brands given the absence of a recent commercial track record under Breitling's ownership. Governance factors are a key consideration in the rating action, reflecting the track record of operating underperformance since 2023 and the historical tolerance for elevated leverage, which has contributed to the company's stretched capital structure. LIQUIDITY Moody's considers Breitling's liquidity to be still adequate. Liquidity was supported by approximately CHF92 million of cash as of the end of May 2026 and about CHF110 million available under its CHF115 million RCF. Moody's expects liquidity to remain sufficient over the next 12-18 months despite continued negative FCF generation. Moody's expects Breitling's FCF to be negative CHF30 million in fiscal 2026, albeit impacted by around CHF22 million of capex related to the new brands, of which CHF9 million of deferred considerations (accounted into capex). Moody's expects FCF to improve in subsequent years to around breakeven. STRUCTURAL CONSIDERATIONS The senior secured TLB due October 2028 and the senior secured RCF due April 2028 are both rated Caa1, in line with the CFR, reflecting their pari passu ranking and the absence of any significant liabilities ranking ahead or behind. The facilities benefit from guarantees from material operating subsidiaries and security over shares, bank accounts and certain intercompany receivables. RATIONALE FOR THE STABLE OUTLOOK The stable outlook reflects Moody's expectations that the company will gradually improve its earnings and credit metrics over the next 12-18 months, supported by normalization in trading performance, management cost-saving initiatives and planned brands launches. Moody's expects the company's liquidity will remain adequate despite continued negative FCF in fiscal 2026. The outlook also reflects Moody's expectations that Breitling will address the upcoming maturities of its RCF and TLB, both due in 2028 over the next few quarters. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS The ratings could be upgraded if Breitling demonstrates a significant improvement in operating performance, resulting in materially stronger earnings, positive FCF generation and a reduction in Moody's-adjusted debt/EBITDA towards 7.0x on a sustained basis. An upgrade would also require EBITDA less capital expenditure to interest expense sustainably above 1.0x, maintenance of adequate liquidity and a balanced financial policy. The ratings could be downgraded if (i) operating performance does not improve in the next 12-18 months, (ii) FCF remains negative, or (iii) liquidity weakens. Increased refinancing risk or a failure to make meaningful progress toward addressing upcoming debt maturities could also exert negative pressure on the ratings. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Retail and Apparel published in September 2025. COMPANY PROFILE Breitling Holdings S.a r.l., headquartered in Grenchen, Switzerland, is a manufacturer and retailer of luxury watches. Founded in 1884, the company is known for its high-precision chronographs and premium watch collections. Breitling distributes its products through wholesale partners, a global network of approximately 300 boutiques and e-commerce channels. For the financial year ended March 2026, the company generated approximately CHF714 million of net sales and CHF146 million of Moody's-adjusted EBITDA. Breitling is majority owned by Partners Group, alongside minority ownership by CVC Capital Partners and management. =========== T U R K E Y =========== EXPORT CREDIT: Moody's Affirms Ba3 LT Issuer Rating, Outlook Stable ------------------------------------------------------------------- Moody's Ratings has affirmed Export Credit Bank of Turkiye A.S.'s (Turk Exim) long-term and short-term issuer ratings of Ba3 and NP, respectively, and senior unsecured ratings of Ba3. Moody's also affirmed Turk Exim's long-term and short-term Counterparty Risk Ratings (CRRs) of Ba2 and NP, respectively, as well as their long-term and short-term Counterparty Risk (CR) Assessments of Ba2(cr) and NP(cr). At the same time, Moody's affirmed Turk Exim's Baseline Credit Assessment (BCA) and Adjusted BCA of ba3. The bank's long-term foreign currency senior unsecured Global MTN program and other short-term program ratings have also been affirmed at (P)Ba3 and (P)NP, respectively. The outlooks on the bank's long-term issuer and senior unsecured ratings remain stable. RATINGS RATIONALE BCA AFFIRMATION The affirmation of Turk Exim's BCA at ba3 reflects the bank's resilient financial performance, supported by its policy mandate and established role to support Turkiye's export sector. Moody's expects asset quality to remain strong supported by a low stock of problem loans, with nonperforming loans accounting for around 0.1% of gross loans as of March 2026. Bank guarantees, sovereign risk indemnification mechanisms and reinsurance arrangements across a significant portion of the portfolio mitigate risks associated with concentrations among the bank's largest borrowers and export-oriented sectors. The ba3 BCA also reflects Moody's expectations that Turk Exim's profitability will remain sound, supported by comparatively favourable funding costs, continued business growth under exemptions from macroprudential loan growth restrictions and strong operating efficiency. However, the bank's earnings remain concentrated in net interest income from lending, with a limited contribution from fee and commission income compared with commercial banks. This comparatively narrow earnings profile may limit the sustainability of current profitability levels through the cycle as operating conditions evolve. Nevertheless, earnings continue to provide a meaningful contribution to internal capital generation, as reflected in an annualised net income to tangible assets ratio of 4.5% during the first quarter of 2026. Moody's expects Turk Exim's sound capitalization to remain supported by internal capital generation and recurring capital injections from the Ministry of Treasury and Finance, which support the bank's expanding policy mandate and business growth. These measures are expected to continue strengthening the bank's loss-absorption capacity, as reflected in a tangible common equity ratio of 17.4% as of March 2026. As a non-deposit-taking policy bank, Turk Exim relies primarily on wholesale funding. Moody's expects funding and liquidity to remain supportive, reflecting access to domestic and international funding sources, including Central Bank of the Republic of Turkiye rediscount facilities, debt capital markets and government-guaranteed funding from development finance institutions. While less-stable funds accounted for 36.5% of tangible banking assets as of March 2026, Moody's expects continued access to these funding channels and sound liquidity buffers to support refinancing needs and mitigate liquidity risks. LONG-TERM RATINGS AFFIRMATION The affirmation of Turk Exim's long-term issuer and senior unsecured ratings at Ba3 reflects the bank's ba3 BCA and Moody's continued assessment of a high likelihood of support from the Government of Turkiye (Ba3 stable). This reflects the Turkish Treasury's 100% ownership, as well as its mandate as Turkiye's official export credit agency. However, this results in no uplift for Turk Exim's issuer ratings as the BCA and Adjusted BCA are at the same rating level as the sovereign rating. OUTLOOK The stable outlook on Turk Exim's long-term issuer and senior unsecured ratings reflects Moody's expectations that their solvency and liquidity profile will remain stable supported by sound capital and liquidity buffers. The stable outlook on the long-term issuer and senior unsecured ratings also considers the stable outlook on the Government of Turkiye. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Turk Exim's ratings could be upgraded if (1) the bank's solvency profile improves, demonstrated by lower concentrations and sustained profitability enhancement through the cycle including revenue diversification; and/or (2) Turkiye's sovereign rating of Ba3 is upgraded. Turk Exim's ratings could be downgraded if (1) the bank's solvency and funding profile deteriorate beyond Moody's expectations; (2) the authorities revert to unorthodox policies that weaken operating conditions; and/or (3) Turkiye's sovereign rating of Ba3 is downgraded. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Banks published in November 2025. Export Credit Bank of Turkiye A.S.'s (Turk Exim) "Assigned BCA" score of ba3 is set two notches below the "Financial Profile" initial score of ba1 to reflect single name and sectoral concentrations and earnings volatility. NUROL INVESTMENT: Moody's Ups Issuer Ratings to B2, Outlook Stable ------------------------------------------------------------------ Moody's Ratings has upgraded Nurol Investment Bank A.S.'s (Nurol Bank) long-term issuer ratings to B2 from B3 and affirmed at NP the short-term issuer ratings. Moody's also upgraded the long-term Counterparty Risk Ratings (CRRs) and Counterparty Risk (CR) Assessments to B1 from B2 and to B1(cr) from B2(cr), respectively. The short-term CRRs and CR Assessment were affirmed at NP and NP(cr) respectively. At the same time, Moody's upgraded Nurol Bank's Baseline Credit Assessment (BCA) and Adjusted BCA to b2 from b3. The bank's long- and short-term National Scale issuer ratings have been upgraded to Baa1.tr from Ba1.tr and to TR-2 from TR-4, respectively. Additionally, the bank's long- and short-term National Scale CRRs have been upgraded to A1.tr from Baa1.tr and to TR-1 from TR-2, respectively. The outlook on the bank's long-term issuer ratings remains stable. RATINGS RATIONALE BCA UPGRADE The upgrade of Nurol Bank's BCA to b2 reflects the bank's track record of managing the structural concentration risks inherent in its corporate and investment banking business model that is commensurate with a higher BCA level. The bank has maintained broadly stable asset quality through periods of economic volatility, supporting Moody's expectations that credit risks will remain manageable relative to its risk profile. Nevertheless, the concentrated nature of the loan book and the bank's exposure to a limited number of borrowers and sectors will continue to weigh on the assessment of asset risk. The b2 BCA also reflects Moody's expectations that capitalisation will remain sound and continue to provide meaningful loss-absorption capacity against concentration risks, as reflected in a tangible common equity ratio of 14.0% as of March 2026. Moody's expects profitability to remain resilient and supportive of internal capital generation despite elevated Turkish lira funding costs and macroprudential measures; particularly within the corporate sector, that continue to constrain balance-sheet growth as reflected by a strong annualized net income to tangible assets ratio of 6.1% during the first quarter of 2026. Core net interest margins benefit from comparatively lower funding costs associated with foreign-currency funding sources, while income generated from higher-yielding securities continues to support profitability. Moody's expects funding and liquidity to remain broadly stable. As a non-deposit-taking institution, Nurol Bank relies predominantly on less-stable funding sources, including short-dated local currency debt and funding obtained from a concentrated base of high-net-worth customers. These characteristics result in elevated refinancing risk relative to deposit-funded commercial banks. Nevertheless, sound liquidity buffers mitigate these risks and support the bank's ability to meet its funding obligations, reflected in core banking liquidity accounting for 18% of tangible banking assets as of March 2026. The b2 BCA continues to incorporate a one-notch negative qualitative adjustment for Business and Geographic Diversification, reflecting concentrations on both sides of the balance sheet and the bank's comparatively narrow earnings profile. Nevertheless, the BCA upgrade recognizes the bank's track record in managing these structural constraints while maintaining sound capitalisation, resilient profitability and broadly stable asset quality through the cycle. LONG-TERM ISSUER RATINGS UPGRADE The upgrade of Nurol Bank's long-term issuer ratings to B2 from B3 reflects the bank's b2 BCA and Moody's continued assessment of a low likelihood of support from the Government of Turkiye (Ba3 stable) which results in no uplift from government support. OUTLOOK The stable outlook on Nurol Bank's long-term issuer ratings reflects Moody's expectations that while asset quality and profitability are expected to weaken, this will remain balanced by stable capital and liquidity buffers. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS Nurol Bank's ratings could be upgraded if it demonstrates a sustained reduction in borrower and funding concentrations, alongside greater diversification and sustainability of earnings generation. Nurol Bank's ratings could be downgraded if (1) the bank's solvency weakens beyond Moody's expectations because of asset quality deterioration or profitability volatility; (2) the authorities revert to unorthodox policies that weaken operating conditions; and/or (3) Turkiye's sovereign rating of Ba3 is downgraded. PRINCIPAL METHODOLOGY The principal methodology used in these ratings was Banks published in November 2025. =========================== U N I T E D K I N G D O M =========================== ABBEYGLEN PROPERTIES: MHA Appointed as Joint Administrators ----------------------------------------------------------- Abbeyglen Properties (Castlemaine) Limited was placed into administration in the High Court of Justice, Court Number CR-2026-005622, and Georgina Marie Eason and James Alexander Snowdon of MHA were appointed as Joint Administrators on July 17, 2026. The company specialized in the development of building projects. Its registered office and principal trading address is 22 Wilhelmina Avenue, Coulsdon, CR5 1NH. The Joint Administrators can be contacted at: Georgina Marie Eason James Alexander Snowdon MHA 6th Floor 2 London Wall Place London EC2Y 5AU Further details contact: The Joint Administrators Tel: 020 7429 4100 Email: clara.groves@mha.co.uk Alternative Contact: Clara Groves BLETCHLEY PARK 2025-1: DBRS Hikes Rating on Cl. X2 Notes to B(low) ------------------------------------------------------------------ DBRS Ratings Limited (Morningstar DBRS) took the following credit rating actions on the notes issued by Bletchley Park Funding 2025-1 PLC (the Issuer): -- Class A Notes confirmed at AAA (sf) -- Class B Notes upgraded to AA (sf) from AA (low) (sf) -- Class C Notes confirmed at A (low) (sf) -- Class D Notes confirmed at BBB (low) (sf) -- Class E Notes confirmed at BB (sf) -- Class X1 Notes upgraded to BB (low) (sf) from B (low) (sf) -- Class X2 Notes upgraded to B (low) (sf) from CCC (sf) CREDIT RATING RATIONALE The credit rating actions follow an annual review of the transaction and are based on the following analytical considerations: -- Portfolio performance, in terms of delinquencies, defaults and losses. -- Portfolio default rate (PD), loss given default (LGD) and expected loss assumptions on the remaining receivables. -- Current available credit enhancement to the notes to cover the expected losses at their respective credit rating levels. The transaction is a securitisation of buy-to-let (BTL) mortgage loans originated by Quantum Mortgages Limited in the United Kingdom. PORTFOLIO PERFORMANCE As of the May 2026 payment date, loans two to three months in arrears represented 0.1% of the outstanding portfolio balance, and loans more than three months in arrears represented 0.1%. The cumulative loss ratio was zero. PORTFOLIO ASSUMPTIONS AND KEY DRIVERS Morningstar DBRS conducted a loan-by-loan analysis of the remaining pool of receivables and has updated its base case PD and LGD assumptions at the B (sf) credit rating level to 2.2% and 17.6% respectively. CREDIT ENHANCEMENT As of the May 2026 payment date, credit enhancement to the rated notes had evolved since the initial rating date as follows: -- Class A Notes: increased to 13.0% from 12.8%; -- Class B Notes: increased to 7.4% from 7.3%; -- Class C Notes: increased to 4.1% from 4.0%; -- Class D Notes: approximately stable at 2.0% The Class E, Class X1 and Class X2 Notes do not benefit from hard credit enhancement. The transaction benefits from a liquidity reserve fund of GBP 3.6 million. The liquidity reserve fund is currently at its target level, corresponding to 2.0% of the outstanding Class A and Class B notes balance, and is available to cover senior fees, swap payments, and interest on the Class A and Class B Notes. Citibank N.A., London Branch acts as the account bank for the transaction. Based on the Morningstar DBRS private credit rating on Citibank N.A., London Branch, the downgrade provisions outlined in the transaction documents, and other mitigating factors inherent in the transaction structure, Morningstar DBRS considers the risk arising from the exposure to the account bank to be consistent with the credit rating assigned to the Class A Notes, as described in Morningstar DBRS' "Legal and Derivative Criteria for European and Asia-Pacific Structured Finance Transactions" methodology. NatWest Markets Plc acts as the swap counterparty for the transaction. Morningstar DBRS' public Long-Term Critical Obligations Rating on NatWest Markets Plc at AA is above the First Rating Threshold as described in Morningstar DBRS' "Legal and Derivative Criteria for European and Asia-Pacific Structured Finance Transactions" methodology. Morningstar DBRS's credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance. Morningstar DBRS's long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. Notes: All figures are in British pound sterling unless otherwise noted. CARTER WELLS: MacDonald Partnership Appointed as Administrator -------------------------------------------------------------- Carter Wells 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-2026-005443, and Elizabeth Aird-Brown of The MacDonald Partnership Ltd was appointed as Administrator on July 13, 2026. The company was a specialized recruitment agency. Its registered office is at c/o The MacDonald Partnership Ltd, 29 Craven Street, London, WC2N 5NT. Its principal trading address is 7 Bell Yard, Bell Yard, London, WC2A 2JR. The Administrator can be contacted at: Elizabeth Aird-Brown The MacDonald Partnership Ltd 29 Craven Street London WC2N 5NT Further details contact: Lisa Jenkins Email: Lisa.Jenkins@tmp.co.uk Tel: 020 3819 8605 Alternative Contact: Neil Chesterton Email: Neil.Chesterton@tmp.co.uk CHESHIRE 2025-1: S&P Affirms 'B+ (sf)' Rating on F-Dfrd Notes ------------------------------------------------------------- S&P Global Ratings affirmed and removed from CreditWatch negative its 'AA (sf)', 'A (sf)', 'BBB+ (sf)', 'BB (sf)', and 'B+ (sf)' credit ratings on Cheshire 2025-1 PLC's class B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, and F-Dfrd notes, respectively. At the same time, S&P's affirmed its 'AAA (sf)' rating on the class A notes and its 'CCC (sf)' rating on the class X-Dfrd notes. S&P said, "The rating actions follow our May 5, 2026, placement of our ratings on the class B-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." Since closing, the performance of the loans in the collateral pool has remained stable, with total arrears decreasing by one percentage point to 24.4% in May 2026, and cumulative losses at 0.4%. The transaction's sequential priority of payments and the notes' amortization have increased the available credit enhancement for the class A, B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, and F-Dfrd notes, with the pool factor falling to 88% in May 2026. Credit enhancement for these notes has risen to 29.7%, 22.8%, 16.7%, 13.4%, 10.0%, and 8.6%, from 26.4%, 20.2%, 14.9%, 11.9%, 8.9%, and 7.6%, respectively. The three-month prepayment rate is 12.8%, with most interest-only loans maturing in 2027 (15%) and 2032 (45%). S&P said, "After applying our updated sector and industry variables, the overall effect in our credit analysis was an increase in the weighted-average foreclosure frequency (WAFF) at the 'AAA', 'AA', and 'A' rating levels. The rise is largely due to the lower seasoning benefit. "Our weighted-average loss severity (WALS) assumptions have increased at all rating levels, driven by the application of partial credit to the house price index." Credit analysis results Rating level WAFF (%) WALS (%) Credit coverage (%) AAA 55.01 33.55 18.46 AA 45.75 28.87 13.21 A 40.62 20.99 8.53 BBB 35.55 16.53 5.88 BB 30.19 13.28 4.01 B 28.93 10.29 2.98 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. S&P said, "The liquidity and credit reserve funds are both at their target levels. Excess spread is 2.26% at the 'AAA' rating level based on our calculation, which considers stressed servicing fees. "We affirmed our 'AAA (sf)' rating on the class A notes because our credit and cash flow results indicate their available credit enhancement remains commensurate with the assigned rating. "Although the class B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, and F-Dfrd notes passed cash flow stresses at higher rating levels than those assigned, we considered the upcoming maturity of interest-only loans, the transaction's excess spread, higher default scenarios, an extended recovery period, higher fees, and the notes' relative levels of subordination. We therefore affirmed and removed from CreditWatch negative our ratings on these classes of notes. "The class X-Dfrd notes did not pass any of the rating scenario stresses in our cash flow analysis, which includes higher prepayments and steady state scenarios. Nonetheless, we consider default unlikely because the notes can defer interest payments until maturity. We applied our 'CCC' rating criteria to this tranche, as it depends on favorable economic and financial conditions to meet obligations at maturity. We therefore affirmed our 'CCC (sf)' rating on this class of notes. "Counterparty risk does not constrain the ratings as we consider the transaction to be in line with our counterparty criteria." Macroeconomic forecasts and forward-looking analysis S&P said, "We expect U.K. inflation to remain above the Bank of England's 2% target in 2026, and we forecast a 2.6% year-on-year change in house prices in the fourth quarter of 2026. Given our current macroeconomic forecasts and forward-looking view of the U.K. residential mortgage market, we performed additional sensitivities relating to higher default levels due to increased arrears and extended recovery timings. The sensitivity analysis results indicate a deterioration consistent with our credit stability considerations in our rating definitions." Cheshire 2025-1 PLC is an RMBS securitization of U.K. legacy owner-occupied and BTL mortgage loans that were originated that were originated between 2000 and 2008. It is a refinancing of Formentera Issuer PLC and Cheshire 2020-1 PLC. ECLIPSE SOFTWARE: PKF Littlejohn Appointed as Joint Administrators ------------------------------------------------------------------ Eclipse Software Ltd was placed into administration in the High Court of Justice, Business & Property Courts in Manchester, Insolvency and Companies List (ChD), No 001072 of 2026, and Stephen Goderski and Paul Williams of PKF Littlejohn Advisory Limited were appointed as Joint Administrators on July 16, 2026. The company specialized in business and domestic software development. Its registered office and principal trading address is 10th Floor, 111 Piccadilly, Ducie Street, Manchester, M1 2HY. The Joint Administrators can be contacted at: Stephen Goderski Paul Williams PKF Littlejohn Advisory Limited 30 Churchill Place Canary Wharf London E14 5RE Further details contact: Avery Lewis Tel: 0161 515 9170 Email: alewis@pkf-l.com ELM HOUSE (UK): CG & Co Appointed as Joint Administrators --------------------------------------------------------- Elm House (UK) Ltd (trading as Elm House Care Home) was placed into administration in the High Court of Justice, Business and Property Courts of England and Wales, Insolvency List (ChD) Companies Court, Court Number CR2026005701, and Daniel Richardson and Nick Brierley of CG & Co were appointed as Joint Administrators on July 21, 2026. The company specialized in residential care home services. Its registered office is CG & Co, 27 Byrom Street, Manchester, M3 4PF. Its principal trading address is Elm House, Lime Grove, Skelmersdale, WN8 8ET. The Joint Administrators can be contacted at: Daniel Richardson Nick Brierley CG & Co 27 Byrom Street Manchester M3 4PF Further details contact: Lucy Duckworth Tel: 0161 358 0210 Email: Lucy.Duckworth@cg-recovery.com HERMITAGE 2024: DBRS Confirms BB(high) Rating on Class E Notes -------------------------------------------------------------- DBRS Ratings Limited (Morningstar DBRS) took the following credit rating actions on the notes issued by Hermitage 2023 plc Hermitage 2024 plc, and Hermitage 2025 plc (the Issuer): Hermitage 2023 -- Class C Notes confirmed at AAA (sf) -- Class D Notes upgraded to AAA (sf) from AA (sf) Hermitage 2024 -- Class A Notes confirmed at AAA (sf) -- Class B Notes confirmed at AA (sf) -- Class C Notes confirmed at A (sf) -- Class D Notes confirmed at BBB (sf) -- Class E Notes confirmed at BB (high) (sf) Hermitage 2025 -- Class A Notes confirmed at AAA (sf) -- Class B Notes confirmed at AA (sf) -- Class C Notes confirmed at A (sf) -- Class D Notes confirmed at BBB (high) (sf) -- Class E Notes confirmed at BB (high) (sf) CREDIT RATING RATIONALE The credit rating actions follow annual reviews of the transactions and are based on the following analytical considerations: -- Portfolio performance, in terms of delinquencies, defaults and losses, as of the May 2026 payment date. -- Probability of default (PD), loss given default (LGD) and expected loss assumptions on the remaining receivables in each transaction. -- Current available credit enhancement to the notes to cover the expected losses at their respective credit rating levels. The transactions are securitisations of equipment hire purchase and finance lease receivables originated and serviced by Haydock Finance Limited (to borrowers in England, Wales, and Scotland. The Hermitage 2023 Notes amortise fully sequentially, while Hermitage 2024 and Hermitage 2025 have mixed pro rata/sequential amortisation structures, where the rated notes initially amortise pro rata until a sequential trigger event occurs. None of the sequential triggers have been breached to date. Hermitage 2025 initially had a 9-month revolving period which terminated in March 2026, during which time the Issuer purchased additional receivables totalling GBP 104 million. PORTFOLIO PERFORMANCE As of April 30, 2026, leases two to three months in arrears for each transaction were 0.0%, stable since one year prior. Leases are classified as defaulted if they are more than three months in arrears. The cumulative default ratios for Hermitage 2023, Hermitage 2024, and Hermitage 2025 were 6.4%, 5.4%, and 2.3%, respectively. PORTFOLIO ASSUMPTIONS AND KEY DRIVERS Morningstar DBRS conducted an analysis of the remaining pool of receivables and has maintained its base case PD and LGD assumptions at the B (low) (sf) credit rating level at 6.9% and 40.0%, respectively for all three transactions. CREDIT ENHANCEMENT Credit enhancement is provided by subordination of the junior notes. For Hermitage 2023, credit enhancement to the rated notes has increased since the initial rating date. For Hermitage 2024 and 2025, credit enhancement to the rated notes has remained stable since the initial rating date, as both transactions are currently in their pro-rata amortisation periods. Hermitage 2023: -- Class C Notes CE: 89.1%, up from 12.5% at the initial Morningstar DBRS credit rating. -- Class D Notes CE: 52.9%, up from 7.0% at the initial Morningstar DBRS credit rating. Hermitage 2024: -- Class A Notes CE: 29.0%, stable since the initial Morningstar DBRS credit rating. -- Class B Notes CE: 22.0%, stable since the initial Morningstar DBRS credit rating. -- Class C Notes CE: 14.0%, stable since the initial Morningstar DBRS credit rating. -- Class D Notes CE: 9.0%, stable since the initial Morningstar DBRS credit rating. -- Class E Notes CE: 5.0%, stable since the initial Morningstar DBRS credit rating. Hermitage 2025: -- Class A Notes CE: 29.0%, stable since the initial Morningstar DBRS credit rating. -- Class B Notes CE: 21.0%, stable since the initial Morningstar DBRS credit rating. -- Class C Notes CE: 13.8%, stable since the initial Morningstar DBRS credit rating. -- Class D Notes CE: 8.8%, stable since the initial Morningstar DBRS credit rating. -- Class E Notes CE: 5.0%, stable since the initial Morningstar DBRS credit rating. Each transaction benefits from a liquidity reserve split into Class A/B, Class C, Class D, and Class E (in relation to Hermitage 2024 and Hermitage 2025) subledgers. Amounts standing to the credit of the liquidity reserve ledgers are available to cover senior expenses and fees and to pay interest on their related and more senior-ranking classes of notes. The Class A/B reserve ledger was fully funded at closing to 1.75% of the outstanding Class A and Class B Notes in relation to Hermitage 2023, and 1.70% of the 1.70% of the outstanding Class A and Class B Notes in relation to Hermitage 2024 and Hermitage 2025. The junior reserve ledgers are funded once the Class A and Class B Notes have been redeemed in full, which applies to Hermitage 2023. As of May 2026, all the liquidity reserve ledgers were funded to their target levels. U.S. Bank Europe DAC, U.K. Branch acts as the account bank for each transaction. Based on the Morningstar DBRS private credit rating on U.S. Bank Europe DAC, U.K. Branch, the downgrade provisions outlined in the transaction documents, and other mitigating factors inherent in the transaction structures, Morningstar DBRS considers the risk arising from the exposure to the account bank to be consistent with the credit rating assigned to the most senior class of notes in each transaction, as described in Morningstar DBRS' "Legal and Derivative Criteria for European and Asia-Pacific Structured Finance Transactions" methodology. Citigroup Global Markets Limited is the swap counterparty for Hermitage 2023 and Hermitage 2024, while Citibank Europe plc, UK branch is the swap counterparty for Hermitage 2025. Morningstar DBRS' private credit rating on each swap counterparty is consistent with the First Rating Threshold as described in Morningstar DBRS' "Legal and Derivative Criteria for European and Asia-Pacific Structured Finance Transactions" methodology. Morningstar DBRS's credit ratings on the applicable classes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. Where applicable, a description of these financial obligations can be found in the transactions' respective press releases at issuance. Morningstar DBRS's long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. Notes: All figures are in British pound sterling unless otherwise noted. HERMITAGE 2026: DBRS Assigns BB(high) Rating to Class E Notes ------------------------------------------------------------- DBRS Ratings Limited (Morningstar DBRS) assigned provisional credit ratings to the following classes of notes (collectively, the Rated Notes) to be issued by Hermitage 2026 plc (the Issuer): -- Class A Notes at (P) AAA (sf) -- Class B Notes at (P) AA (sf) -- Class C Notes at (P) A (sf) -- Class D Notes at (P) BBB (sf) -- Class E Notes at (P) BB (high) (sf) Morningstar DBRS does not rate the Class F Notes also expected to be issued in this transaction. The transaction is a securitisation of a portfolio of equipment hire purchase and finance lease receivables granted by Haydock Finance Limited (Haydock or the Seller) to borrowers incorporated in England, Scotland, and Wales. Haydock will also act as the initial servicer for the transaction (the servicer). CREDIT RATING RATIONALE Morningstar DBRS based its provisional credit ratings on a review of the following analytical considerations: -- The transaction's structure, including form and sufficiency of available credit enhancement to withstand stressed cash flow assumptions and repay the Issuer's financial obligations according to the terms under which the Rated Notes are expected to be issued; -- The credit quality of Haydock's portfolio, the characteristics of the collateral, its historical performance, and the Morningstar DBRS-projected behaviour under various stress scenarios; -- Haydock's capabilities with regard to originations, underwriting, and servicing as well as its position in the market and financial strength; -- The operational risk review of Haydock, which Morningstar DBRS deems to be an acceptable servicer; -- The transaction parties' financial strength with regard to their respective roles; -- The expected consistency of the transaction's legal structure with Morningstar DBRS' "Legal and Derivative Criteria for European and Asia-Pacific Structured Finance Transactions" methodology; and -- Morningstar DBRS' sovereign credit rating on the United Kingdom of Great Britain and Northern Ireland, currently at AA with a Stable trend. TRANSACTION STRUCTURE The transaction has a revolving period of 12 months, during which additional receivables may be purchased subject to eligibility criteria and portfolio concentration limits. During the revolving period, the Issuer applies the available principal and interest receipts in accordance with two separate principal and interest priorities of payments. Prior to a sequential amortisation switch, principal is allocated on a pro rata basis. Following a sequential amortisation switch, principal is allocated on a sequential basis. Once the amortisation becomes sequential, it cannot switch to pro rata. Sequential redemption events include, among others, the breach of performance related triggers on the principal deficiency ledger (PDL) and cumulative default ratio, the Seller not exercising the call option, or a shortage of the liquidity reserve initial amount. Available revenue receipts are available to cover principal deficiencies, and, in certain scenarios, principal may be diverted to pay interest on the Rated Notes. The principal-to-interest mechanism is designed to cover senior interest shortfalls related to insufficient revenue receipts available to cover senior expenses and fees, as well as interest on the most-senior class of Rated Notes outstanding. Such principal-to-interest reclassifications, along with any defaults, are recorded on the applicable PDLs in a reverse-sequential order. The transaction benefits from a liquidity reserve fund (LRF) split into Class A/B, Class C, Class D, and Class E LRF ledgers. At closing, the liquidity reserve is GBP 0 and the Class A/B liquidity reserve ledger will be funded from the first interest payment date through principal available funds until the liquidity reserve initial and required amount has been transferred. Any liquidity reserve excess amount will be applied as principal available funds. The Class C LRF ledger will be funded through principal available funds following the redemption of the Class A Notes and Class B Notes; the Class D LRF ledger will be funded through principal available funds following the redemption of the Class C Notes; the Class E LRF ledger will be funded through principal available funds following the redemption of the Class D Notes. Amounts standing to the credit of the LRF are available to cover senior expenses and fees and to pay the interest on their related class of Rated Notes. The amortising LRF is set at 1.15% of the aggregate principal amount outstanding of their related class of Rated Notes. COUNTERPARTIES U.S. Bank Europe DAC, U.K. Branch is expected to be appointed as the Issuer's account bank for the transaction. Morningstar DBRS privately rates U.S. Bank Europe DAC, U.K. Branch and concluded that the bank meets the criteria to act in this capacity. The transaction documents are expected to contain downgrade provisions relating to the account bank consistent with Morningstar DBRS' criteria. Citibank Europe plc, UK Branch is expected to be appointed as the swap counterparty for the transaction. Morningstar DBRS privately rates Citibank Europe plc, UK Branch and concluded that the bank meets the criteria to act in this capacity. The hedging documents are expected to contain downgrade provisions consistent with Morningstar DBRS' criteria. Morningstar DBRS' credit ratings on the Rated Notes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations of the Rated Notes are the related interest and principal payments. Morningstar DBRS' credit ratings do not address nonpayment risk associated with contractual payment obligations contemplated in the applicable transaction documents that are not financial obligations. Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. Notes: All figures are in British pound sterling unless otherwise noted. MAX FLEETSUPPORT: Leonard Curtis Appointed as Joint Administrators ------------------------------------------------------------------ Max Fleetsupport Ltd was placed into administration in the High Court of Justice, Court Number CR-2026-BHM-000342, and Elizabeth Welch and Conrad Beighton of Leonard Curtis were appointed as Joint Administrators on July 17, 2026. The company specialized in the maintenance and repair of motor vehicles. Its registered office and principal trading address is 28 Stone Street, Oldbury, B69 4JL. The Joint Administrators can be contacted at: Elizabeth Welch Conrad Beighton Leonard Curtis Cavendish House 39-41 Waterloo Street Birmingham B2 5PP Further details contact: The Joint Administrators Email: Creditors.Birmingham@leonardcurtis.co.uk Alternative Contact: Jodie Hollinshead NEWDAY FUNDING 2026-1: DBRS Gives (P)BB Rating on Class E Notes --------------------------------------------------------------- DBRS Ratings Limited (Morningstar DBRS) assigned provisional credit ratings to the following classes of notes (collectively, the Notes) to be issued by NewDay Funding Master Issuer plc (the Issuer): -- Series 2026-1, Class A Notes at (P) AAA (sf) -- Series 2026-1, Class B Notes at (P) AA (sf) -- Series 2026-1, Class C Notes at (P) A (sf) -- Series 2026-1, Class D Notes at (P) BBB (sf) -- Series 2026-1, Class E Notes at (P) BB (sf) The transaction is a securitisation of near-prime credit cards granted to individuals domiciled in the UK by NewDay Ltd. (NewDay) and is issued out of the Issuer as part of the NewDay Funding-related master issuance structure under the same requirements regarding servicing, amortisation events, priority of distributions, and eligible investments. NewDay Cards Ltd. (NewDay Cards) is the initial servicer with Lenvi Servicing Limited (Lenvi) in place as the backup servicer for the transaction. CREDIT RATING RATIONALE Morningstar DBRS based its analysis on the following considerations: -- The transaction's structure, including the form and sufficiency of available credit enhancement to withstand stressed cash flow assumptions and repay the Issuer's financial obligations according to the terms under which the Notes are issued -- The credit quality of NewDay's portfolio; the characteristics of the collateral; its historical performance; and Morningstar DBRS' expectation of the charge-off rate, monthly principal payment rate (MPPR), and yield rate under various stress scenarios -- Morningstar DBRS' operational risk review of NewDay and NewDay Cards' capabilities regarding origination, underwriting, servicing, position in the market, and financial strength -- Morningstar DBRS' operational risk review of NewDay Cards and Lenvi regarding servicing -- The transaction parties' financial strength regarding their respective roles -- The expected consistency of the transaction's structure with Morningstar DBRS' "Legal and Derivative Criteria for European and Asia-Pacific Structured Finance Transactions" methodology -- Morningstar DBRS' long-term sovereign credit rating of United Kingdom of Great Britain and Northern Ireland, currently AA with a Stable trend TRANSACTION STRUCTURE The transaction includes a scheduled revolving period. During this period, additional receivables may be purchased and transferred to the securitised pool, provided that the eligibility criteria set out in the transaction documents are satisfied. The revolving period may end earlier than scheduled if certain events occur, such as the breach of performance triggers or servicer termination. The servicer may extend the scheduled revolving period by up to 12 months. If the Notes are not fully redeemed at the end of the scheduled revolving period, the transaction will enter into a rapid amortisation. The transaction also includes a series-specific liquidity reserve to cover shortfalls in senior expenses, senior swap payments (if applicable), and interest on the Class A, Class B, Class C, and Class D Notes (collectively, the Senior Classes) and would amortise to the target amount of 1.5% of the Senior Classes' outstanding balance, subject to a floor of GBP 250,000. As the Notes are denominated in British pound sterling with floating-rate coupons based on the daily compounded Sterling Overnight Index Average (Sonia), there is an interest rate mismatch between the fixed-rate collateral and the Sonia-based coupon rates. The potential interest rate mismatch risk is to a certain degree mitigated by excess spread and NewDay's ability to increase the credit card annual percentage contractual rates. COUNTERPARTIES HSBC Bank plc (HSBC Bank) is the account bank for the transaction. Based on Morningstar DBRS' private credit rating on HSBC Bank and the downgrade provisions outlined in the transaction documents, Morningstar DBRS considers the risk arising from the exposure to the account bank to be commensurate with the credit ratings assigned. PORTFOLIO ASSUMPTIONS The most recent total yield from the June 2026 investor report of the NewDay Funding-related portfolio was 29.9%, up from the record low of 26% in May 2020 because of the consistent repricing by NewDay following the Bank of England base rate increases since mid-2022. Nonetheless, the yield is expected to follow the trend of the Bank of England base rate, which has been declining since August 2024. After consideration of the observed trends and the removal of spend-related fees, Morningstar DBRS revised downwards the expected yield to 25.5% from 27%. For the charge-off rates, the investor report reported 13.4% in the June 2026 after reaching a record high of 17.6% in April 2020. Morningstar DBRS notes that the levels have remained below 16% since July 2020, albeit with some volatility, and elected to revise downwards the expected charge-off rate to 15% from 16% after considering stable performance. The most recent total payment rate including the interest collections was 13.7% in the June 2026 investor report, which remains above historical levels. Based on the upward trend over the last few years, Morningstar DBRS revised upwards the expected MPPR to 10% from 9% after removing the interest collections. FINANCIAL OBLIGATIONS Morningstar DBRS' credit ratings on the Notes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations are the related Interest Payment Amounts and the Class Balances. Morningstar DBRS' credit ratings on the Notes also address the credit risk associated with the increased rate of interest applicable to the Notes if the Notes are not redeemed on the Optional Redemption Date (as defined in and) in accordance with the applicable transaction document(s). Morningstar DBRS' credit ratings do not address nonpayment risk associated with contractual payment obligations contemplated in the applicable transaction document(s) that are not financial obligations. Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. Notes: All figures are in British pound sterling unless otherwise noted. PAYSAFE LTD: S&P Assigns 'B' Rating to Proposed Term Loan B ----------------------------------------------------------- S&P Global Ratings assigned its 'B' issue rating and '3' recovery rating to the new term loan B (TLB) instruments that Paysafe Ltd. (B/Stable/--) plans to issue to extend its average debt maturity profile. The '3' recovery rating indicates its expectation of meaningful recovery (50%-70%; rounded estimate 65%) in the event of a default. S&P said, "For the existing rated debt, we revised our estimate of recovery to about 65% from 60%. This slight increase accounts for the envisaged 5% annual amortization under the proposed term loan instruments. This amortization reduces the amount of debt at default and therefore supports recovery prospects in a hypothetical default scenario. The proposed issuance has a neutral impact on Paysafe's leverage and our view of its creditworthiness." As part of the transaction, Paysafe intends to: -- Amend and extend its outstanding $814 million TLB due 2028 by two years; -- Amend and extend its outstanding EUR586 million TLB due 2028 by two years; and -- Refinance its $305.0 million revolving credit facility (RCF) due 2027 with a new five-year RCF upsized to $372.5 million. The proposed transaction supports Paysafe's adequate liquidity, extending the TLBs two years before they mature. It does not affect the outstanding $337 million and EUR421 million senior secured notes that are due in June 2029. S&P said, "We forecast revenue growth for Paysafe of 5%-6% in 2026 and 2027, spurred by demand for online gambling and digital wallet solutions. Moreover, we see the S&P Global Ratings-adjusted EBITDA margin improving toward 21%, from 19% in 2025 as exceptional costs related to litigations and restructuring reduce." This, combined with Paysafe's focus on reducing its reported net leverage toward 3.5x, will translate into adjusted debt to EBITDA of 7.1x in 2026 and 5.6x in 2027, down from 7.5x in 2025, and increased headroom under the current rating. Paysafe Ltd.--Forecast summary --Fiscal year ending Dec. 31-- (Mil. $) 2024a 2025a 2026f 2027f 2028f Revenue 1,705 1,701 1,796 1,904 2,039 EBITDA (reported) 409 350 327 407 454 Plus: Operating lease adjustment rent 9 9 9 9 9 Plus/(less): Other -16 -39 2 -18 -24 EBITDA 402 321 338 398 439 Less: Cash interest paid -154 -135 -152 -157 -144 Less: Cash taxes paid -31 -36 -50 -25 -32 Funds from operations (FFO) 218 149 136 216 264 Capital expenditure (capex) 65 56 78 41 49 Free operating cash flow 140 115 50 167 202 Share repurchases (reported) -51 -101 -30 -10 -10 Discretionary cash flow 89 13 20 157 192 Debt (reported) 2,364 2,615 2,533 2,380 2,193 Plus: Lease liabilities debt 43 43 43 43 43 Less: Accessible cash and liquid Investments -217 -250 -190 -190 -190 Plus/(less): Other 8 3 3 3 3 Debt 2,199 2,411 2,389 2,236 2,049 Capex (reported) 121 128 156 114 127 Adjusted ratios Debt/EBITDA (x) 5.5 7.5 7.1 5.6 4.7 FFO/debt (%) 9.9 6.2 5.7 9.7 12.9 FFO cash interest coverage (x) 2.4 2.1 1.9 2.4 2.8 EBITDA interest coverage (x) 2.8 2.3 2.2 2.5 3.1 FOCF/debt (%) 6.3 4.8 2.1 7.5 9.8 Annual revenue growth (%) 6.5 -0.2 5.5 6.1 7.1 EBITDA margin (%) 23.6 18.8 18.8 20.9 21.5 a--Actual. f--Forecast. Issue Ratings--Recovery Analysis Key analytical factors S&P said, "We rate at 'B' the proposed $814 million and EUR586 million senior secured TLBs, which will replace the outstanding euro- and U.S. dollar-denominated TLBs upon closing of the amend-and-extend transaction and the recovery rating is 3', in line with the ratings on the existing senior secured instruments. "The recovery rating reflects our expectations of meaningful recovery (50%-70%; rounded estimate: 65%) in the event of a payment default. The recovery rating is supported by our valuation of the company as a going concern and the lack of prior-ranking debt. The recovery rating is partly constrained by the considerable amount of equally ranked senior debt in the capital structure. "Our hypothetical default scenario envisages adverse regulatory changes or market dynamics that lead to heightened competition and pricing pressure, an increase in charge-back losses, and a loss of market share. "We value Paysafe as a going concern because of its leading market position in electronic payments for internet gaming, established relationships with major online gaming operators and merchants, and geographic diversification." Simulated default assumptions -- Year of default: 2029 -- Jurisdiction: U.K. -- Emergence EBITDA after recovery adjustments: $280 million -- Implied enterprise value multiple: 6.5x Simplified waterfall -- Gross recovery enterprise value: $1.8 billion -- Net recovery value for waterfall after administrative expenses (5%): $1.7 billion -- Senior secured debt claims: $2.6 billion --Recovery expectations: 50%-70% (rounded estimate: 65%) --Recovery rating: 3 All debt amounts include six months of prepetition interest. S&P assumes that 85% of the RCF is drawn on the path to default. RMAC NO.3: S&P Affirms 'B+ (sf)' Rating on Class F-Dfrd Notes ------------------------------------------------------------- S&P Global Ratings affirmed and removed from CreditWatch negative its 'AA+ (sf)', 'AA (sf)', 'A+ (sf)', 'BBB- (sf)', and 'B+ (sf)' credit ratings on RMAC No.3 PLC's class B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, and F-Dfrd notes, respectively. At the same time, S&P affirmed its 'AAA (sf)' rating on the class A notes. S&P said, "The rating actions follow our May 5, 2026, placement of our ratings on the class B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, and 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. "Since our previous review, the performance of the loans in the collateral pool has been roughly stable. Based on our analysis, total arrears only rose to 27.6% from 25.6% in April 2026. Since closing, cumulative losses total 2.18%." The transaction's sequential priority of payments and the notes' amortization have increased the available credit enhancement for the class A, B-Dfrd, C-Dfrd, D-Dfrd, E-Dfrd, and F-Dfrd notes, with the pool factor of the class A notes falling to 58% in April 2026. Since closing, credit enhancement for these notes has risen to 21.93%, 15.45%, 13.73%, 12.43%, 8.47%, and 6.73% from 12.12%, 8.37%, 7.37%, 6.62%, 4.32%, and 3.37%, respectively. The three-month prepayment rate increased to 11.03% in April 2026, up from 11.03% at S&P's previous review. S&P said, "After applying our updated sector and industry variables, the overall effect in our credit analysis is an increase in the weighted-average foreclosure frequency (WAFF) at all rating levels. The increase is largely due to lower seasoning benefit and higher income adjustment. "Our weighted-average loss severity (WALS) assumptions have also increased at all rating levels, driven by the application of our partial house price index credit." Credit analysis results Rating level WAFF (%) WALS (%) Credit coverage (%) AAA 41.71 20.52 8.56 AA 34.78 16.82 5.85 A 30.96 12.43 3.85 BBB 27.24 9.87 2.69 BB 23.28 7.65 1.78 B 22.34 5.50 1.23 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. The liquidity and credit reserve funds are both at their target levels. S&P said, "We affirmed our 'AAA (sf)' rating on the class A notes because our credit and cash flow results indicate their available credit enhancement remains commensurate with the assigned rating. "Although the class B-Dfrd, C-Dfrd, and D-Dfrd notes passed cash flow stresses at higher rating levels than those currently assigned, we considered the sensitivity to higher defaults, the transaction's excess spread, and the notes' relative levels of subordination. We therefore affirmed and removed from CreditWatch negative our ratings on these classes of notes. "Our credit and cash flow analysis indicates that the available credit enhancement for the deleveraging class E-Dfrd and F-Dfrd notes remains commensurate with the assigned ratings because of the deleveraging of the transaction. This is despite the short weighted average life of these notes, which may result in their repayment before all recoveries are realized in some of our cash flow runs. We therefore affirmed and removed from CreditWatch negative our 'BBB-(sf)' rating on the class E-Dfrd notes and 'B+ (sf)' rating on the class F-Dfrd notes. "Counterparty risk does not constrain the ratings as we consider the transaction to be in line with our counterparty criteria." Macroeconomic forecasts and forward-looking analysis S&P said, "We expect U.K. inflation to remain above the Bank of England's 2% target in 2026, and we forecast a 2.6% year-on-year change in house prices in the fourth quarter of 2026. Given our current macroeconomic forecasts and forward-looking view of the U.K. residential mortgage market, we performed additional sensitivities relating to higher default levels due to increased arrears and extended recovery timings. The sensitivity analysis results indicate a deterioration consistent with our credit stability considerations in our rating definitions." RMAC No.3 is an RMBS securitization of legacy owner-occupied and BTL mortgage loans secured over U.K. properties. SNACK FRESH: Springfields Advisory Appointed as Administrator ------------------------------------------------------------- Snack Fresh Ltd was placed into administration in the High Court of Justice, Business and Property Courts in Leeds, Court Number CR2026LDS000714, and Situl Devji Raithatha of Springfields Advisory LLP was appointed as Administrator on July 17, 2026. The company specialized in the manufacture of food products. Its registered office and principal trading address is Unit 1a Cranleigh Gardens Industrial Estate, Southall, UB1 2BZ. The Administrator can be contacted at: Situl Devji Raithatha Springfields Advisory LLP 38 De Montfort Street Leicester LE1 7GS Further details contact: Sachin Raithatha Tel: 0116 299 4745 Email: sachin.r@springfields-uk.com Address: 38 De Montfort Street, Leicester, LE1 7GS SUPERBIKE FACTORY GROUP: KR8 Advisory Appointed as Administrator ---------------------------------------------------------------- Superbike Factory Group Limited was placed into administration in the High Court of Justice, Business and Property Courts in Manchester, Insolvency & Companies List (ChD), Court Number CR-2026-001076, and James Saunders and Robert Halliday of KR8 Advisory Limited were appointed as Joint Administrators on July 20, 2026. The company specialized in the sale, maintenance and repair of motorcycles and related parts and accessories. Its registered office and principal trading address is Snape Road, Macclesfield, Cheshire, SK10 2NZ. The Joint Administrators can be contacted at: James Saunders Robert Halliday KR8 Advisory Limited The Lexicon 10-12 Mount Street Manchester M2 5NT Further details: The Joint Administrators Email: sbf@kr8.co.uk SUPERBIKE FACTORY LIMITED: KR8 Advisory Appointed as Administrators ------------------------------------------------------------------- Superbike Factory Limited was placed into administration in the High Court of Justice, Business and Property Courts in Manchester, Insolvency & Companies List (ChD), Court Number CR-2026-001074, and James Saunders and Robert Halliday of KR8 Advisory Limited were appointed as Joint Administrators on July 20, 2026. The company specialized in the sale, maintenance and repair of motorcycles and related parts and accessories. Its registered office and principal trading address is Snape Road, Macclesfield, Cheshire, SK10 2NZ. The Joint Administrators can be contacted at: James Saunders Robert Halliday KR8 Advisory Limited The Lexicon 10-12 Mount Street Manchester M2 5NT Email: sbf@kr8.co.uk TWIN BRIDGES 2026-1: DBRS Gives (P)Bsf Rating on Cl. X Notes ------------------------------------------------------------ DBRS Ratings Limited (Morningstar DBRS) assigned provisional credit ratings to the residential mortgage-backed notes to be issued by Twin Bridges 2026-1 plc (the Issuer or Twin Bridges 2026-1) as follows: -- Class A Notes at (P) AAA (sf) -- Class B Notes at (P) AA (sf) -- Class C Notes at (P) A (sf) -- Class D Notes at (P) BBB (high) (sf) -- Class X Notes at (P) B (sf) The provisional credit rating on the Class A notes addresses the timely payment of interest and the ultimate repayment of principal on or before the final maturity date in October 2071. The provisional credit ratings on the Class B, Class C, and Class D Notes address the timely payment of interest once they are the seniormost class of notes outstanding, otherwise the ultimate payment of interest and the ultimate repayment of principal on or before the final maturity date in October 2071. The provisional credit rating on the Class X Notes addresses the ultimate payment of interest and ultimate payment of principal on or before the legal final maturity date in October 2071. Morningstar DBRS does not rate the Class Z Notes. CREDIT RATING RATIONALE The Issuer is a bankruptcy-remote, special-purpose vehicle incorporated in the UK. The notes to be issued will fund the purchase of UK first-lien buy-to-let (BTL) mortgage loans originated and serviced by Paratus AMC Limited (Paratus) under its trading name of Foundation. Paratus was founded in 1998 and introduced the trading name of Foundation in 2015. After reinstating Financial Conduct Authority (FCA) permission for regulated lending, it began to originate owner-occupied loans in 2017. CSC Capital Markets UK Limited will be appointed as the backup servicer facilitator to the transaction. The provisional mortgage portfolio as of 30 April 2026 consisted of GBP 400.1 million of first-lien mortgage loans collateralised by BTL properties in the UK. The pool has a weighted-average (WA) seasoning of around 15 months and yields a current WA coupon of 5.9%. The transaction includes a prefunding mechanism funded from an overissuance of notes at closing to fund the prefunding principal reserve and the prefunding revenue reserve. The prefunding principal reserve and prefunding revenue reserve can be applied to purchase prefunding mortgage loans on additional sale dates before the first interest payment date (IPD). Any funds remaining in the prefunding principal reserve on the first IPD will form part of the unused prefunding amounts and will first be used to fund the retained principal ledger according to the pre-enforcement principal priority of payments and any remaining amounts will be used to repay the collateralised notes pro rata. Any funds remaining in the prefunding revenue reserve on the first IPD will form part of the available revenue funds and be applied in accordance with the pre-enforcement revenue priority of payments. The transaction features a 39-month revolving period (up to October 2029, the first optional redemption date (FORD)) during which time the Issuer may acquire revolving period mortgage loans and their related securities from the seller subject to the availability of amounts standing to the credit of the retained principal ledger, the principal collections, the eligibility criteria, and as long as no revolving period termination event has occurred. During the revolving period, the Class A Notes are expected to amortise in line with a predefined target schedule that sets out an envisaged partial reduction of the Class A balance of GBP [] during three IPD's in April 2028, July 2028 and October 2028. Failure to meet this target amortisation will not constitute an event of default. The Issuer is expected to issue four tranches of collateralised mortgage-backed securities (the Class A, Class B, Class C, and Class D Notes) to finance the purchase of the initial portfolio. Additionally, the Issuer is expected to issue two classes of noncollateralised notes, the Class X and Class Z Notes. The proceeds of the latter will be used to fully fund the general reserve fund (GRF), whereas the liquidity reserve fund (LRF) will be funded by the overissuance of collateralised notes. The transaction is structured to initially provide 10.11% of credit enhancement to the Class A Notes, provided by the subordination of the Class B to Class D Notes and excluding the GRF from the calculation. An LRF and a GRF provide liquidity in the transaction. The LRF covers senior costs and expenses as well as interest shortfalls for the Class A Notes. In addition, the LRF is available to cover interest shortfalls in the Class B Notes as long as either (1) it is the most senior class of notes outstanding or (2) the debit balance in its principal deficiency ledger (PDL) does not exceed 10% of the outstanding principal balance of the Class B Notes. It will be amortising (subject to the condition explained below) and is sized at 1.0% of the initial balances of the Class A and Class B Notes at closing. On each IPD, the target level will be 1.0% of the current amount outstanding of the Class A and Class B Notes if there is no revenue deficit on such IPD or, if there is a revenue deficit on such IPD, the LRF will not amortise. The LRF will be funded at closing via the overissuance of collateralised notes. Any liquidity reserve excess amount will be applied as available principal receipts, and the reserve will be released in full once the Class A and Class B Notes are fully repaid. The GRF also provides liquidity support and credit enhancement to the Class A to Class D Notes. The GRF is funded by the proceeds of the issuance of the Class Z Notes at closing and has a target amount of 0.20% of the sum of the balance of the Class A, Class B, Class C, and Class D Notes at closing. It will be nonamortising and on the final maturity date, all amounts held in the GRF will form part of available principal funds, and the GRF target will be zero. The transaction documentation also envisages principal borrowing, which can be used to cover senior costs and expenses, including swap payments, as well as interest shortfalls on the Class A to Class D Notes, if the relevant class is the most senior class of notes outstanding. Principal funds can also be used for interest shortfalls on the Class B Notes if its PDL does not exceed 10% of the Class B Notes' outstanding balance. The transaction also features a fixed-to-floating interest rate swap, given the presence of a significant portion of fixed-rate loans (with a compulsory reversion to a floating rate in the future), while the liabilities will pay a coupon linked to the daily compounded Sterling Overnight Index Average. The swap counterparty to be appointed as of closing will be Lloyds Bank Corporate Markets plc (Lloyds Bank; privately rated by Morningstar DBRS). Based on Morningstar DBRS' private credit rating on Lloyds Bank, the downgrade provisions outlined in the documents, and the transaction structural mitigants, Morningstar DBRS considers the risk arising from the exposure to Lloyds Bank to be consistent with the provisional credit ratings assigned to the rated notes as described in Morningstar DBRS' "Legal and Derivative Criteria for European and Asia-Pacific Structured Finance Transactions" methodology (the Legal Criteria). Furthermore, U.S. Bank Europe DAC, UK Branch (privately rated by Morningstar DBRS) shall act as the Issuer Account Bank, and Barclays Bank PLC (rated A (high) with a Stable trend by Morningstar DBRS) shall be appointed as the Collection Account Bank. U.S. Bank Europe DAC, UK Branch meets the eligible credit ratings in structured finance transactions and is consistent with the provisional credit ratings assigned to the rated notes as described in the Legal Criteria. Morningstar DBRS based its credit ratings on a review of the following analytical considerations: -- The transaction's capital structure, including the form and sufficiency of available credit enhancement. -- The credit quality of the provisional mortgage portfolio and the ability of the servicer to perform collection and resolution activities. -- Morningstar DBRS-estimated stress-level probability of default (PD), loss given default (LGD), and expected loss (EL) on the mortgage portfolio. Morningstar DBRS used the PD, LGD, and EL as inputs into the cash flow (CF) engine. Morningstar DBRS analysed the mortgage portfolio in accordance with its "European RMBS Insight Methodology". -- The transaction's ability to withstand stressed CF assumptions and repay the Class A, Class B, Class C, Class D, and Class X Notes according to the terms of the transaction documents. Morningstar DBRS analysed the transaction structure using Intex DealMaker. Morningstar DBRS considered additional sensitivity scenarios of 0% conditional prepayment rate (CPR) stress and a higher CPR assumption to account for prepayments occurring at the reversion date of fixed-to-floating-rate loans. -- The expected consistency of the transaction's legal structure with the Legal Criteria and the presence of legal opinions addressing the assignment of the assets to the Issuer. -- Morningstar DBRS' credit ratings on the relevant counterparties, which are expected to be appropriately in line with the Legal Criteria to mitigate the risk of counterparty default or insolvency. -- The structural mitigants in place to avoid potential payment disruptions caused by operational risk, such as downgrade and replacement language in the transaction documents. -- Morningstar DBRS' sovereign credit rating of the United Kingdom of Great Britain and Northern Ireland, currently rated AA with a Stable trend as of the date of this report. Morningstar DBRS' credit ratings on the rated notes address the credit risk associated with the identified financial obligations in accordance with the relevant transaction documents. The associated financial obligations are the related Interest Amounts and the related Class Balances. Morningstar DBRS' credit ratings on the rated notes also address the credit risk associated with the increased rate of interest applicable to the rated notes if the rated notes are not redeemed on the FORD (as defined in and) in accordance with the applicable transaction documents. Morningstar DBRS' credit ratings do not address nonpayment risk associated with contractual payment obligations contemplated in the applicable transaction documents that are not financial obligations. Morningstar DBRS' long-term credit ratings provide opinions on risk of default. Morningstar DBRS considers risk of default to be the risk that an issuer will fail to satisfy the financial obligations in accordance with the terms under which a long-term obligation has been issued. WELSTED JOINERY: Carter Clark, BTG Begbies Named as Administrators ------------------------------------------------------------------ Welsted Joinery Limited was placed into administration in the High Court of Justice ChD, Court Number CR-2026-005444, and Alan Clark of Carter Clark and Jamie Taylor of BTG Begbies Traynor (Central) LLP were appointed as Joint Administrators on July 21, 2026. The company specialized in joinery. Its registered office and principal trading address is Saltcoats Industrial Estate, 31 Cutlers Road, South Woodham Ferrers, Chelmsford, CM3 5WA. The Joint Administrators can be contacted at: Alan Clark Carter Clark Recovery House 15-17 Roebuck Road Hainault Business Park Ilford, Essex IG6 3TU -- and -- Jamie Taylor BTG Begbies Traynor (Central) LLP 1066 London Road Leigh on Sea Southend, Essex SS9 3NA Further details contact: Carter Clark Tel: 020 8524 1447 WINCHESTER 1: S&P Affirms 'BB (sf)' Rating on Class E-Dfrd Notes ---------------------------------------------------------------- S&P Global Ratings raised its credit ratings on Winchester 1 PLC's class B-Dfrd notes to 'AA+ (sf)' from 'AA (sf)' and C-Dfrd notes to 'AA (sf)' from 'A+ (sf)'. At the same time, S&P affirmed its 'AAA (sf)', 'BBB+ (sf)', and 'BB (sf)' ratings on the class A, D-Dfrd, and E-Dfrd notes, respectively. S&P also removed from CreditWatch positive its ratings on the class B-Dfrd to E-Dfrd notes. S&P said, "The rating actions follow our May 5, 2026, placement of our ratings on the class B-Dfrd to E-Dfrd notes on CreditWatch positive 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, "Since our previous review, the performance of the loans in the collateral pool has been strong. Based on our analysis, total arrears only rose to 0.45% in May 2026 since closing, and no losses have been recorded." The transaction's sequential priority of payments and the notes' amortization have increased the available credit enhancement for the class A, B-Dfrd, C-Dfrd, and D-Dfrd notes, with the pool factor falling to 72% in March 2026. Credit enhancement for these notes has risen to 15.65%, 9.53%, 4.10%, and 1.38%, from 13.52%, 8.24%, 3.54%, and 1.20%, respectively." The three-month prepayment rate increased to 24.28% in March 2026, exceeding the average three-month for the 12 months to March 2026 (17.81%). Given the high proportion of fixed-to-floating loans in the pool, with reset dates concentrated in 2028, S&P performed a sensitivity analysis reflecting increased prepayments. S&P said, "After applying our updated sector and industry variables, the overall effect on our credit analysis was a decrease in the weighted-average foreclosure frequency assumptions at all rating levels. The decline is largely due to lower anchor default probabilities, lower loan purpose adjustment, and a lower payment shock adjustment. "Our weighted-average loss severity assumptions have also decreased at all rating levels, driven by our lower overvaluation assessment for London and the southeast." Credit analysis results Rating level WAFF (%) WALS (%) Credit coverage (%) AAA 17.78 40.84 7.26 AA 11.80 35.45 4.18 A 8.73 26.02 2.27 BBB 5.82 20.72 1.21 BB 2.75 16.84 0.46 B 2.02 13.18 0.27 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. The liquidity reserve fund is at its target level. S&P said, "We affirmed our 'AAA (sf)' rating on the class A notes because our credit and cash flow results indicate their available credit enhancement remains commensurate with the assigned rating. "Although the class B-Dfrd, C-Dfrd, D-Dfrd, and E-Dfrd notes passed cash flow stresses at higher rating levels than those assigned, we considered the upcoming peak in interest revision dates, the transaction's excess spread, and the notes' relative levels of subordination. We therefore limited our upgrades of the class B-Dfrd and C-Dfrd notes, affirmed our ratings on the class D-Dfrd and E-Dfrd notes, and removed from CreditWatch positive our ratings on these notes. It is worth noting that the interest deferral mechanism for the class B-Dfrd notes is not commensurate with our 'AAA' ratings definition. "Counterparty risk does not constrain the ratings as we consider the transaction to be in line with our counterparty criteria. Macroeconomic forecasts and forward-looking analysis S&P said, "We expect U.K. inflation to remain above the Bank of England's 2% target in 2026, and we forecast a 2.6% year-on-year change in house prices in the fourth quarter of 2026. Given our current macroeconomic forecasts and forward-looking view of the U.K. residential mortgage market, we performed additional sensitivities relating to higher default levels due to increased arrears and extended recovery timings. The sensitivity analysis results indicate a deterioration consistent with our credit stability considerations in our rating definitions." Winchester 1 PLC is an RMBS securitization of BTL mortgage loans secured over U.K. properties and originated by Hampshire Trust Bank. =============== X X X X X X X X =============== [] BOOK REVIEW: LING The Rise, Fall, & Return of a Texas Titan -------------------------------------------------------------- Author: Stanley H. Brown Publisher: Beard Books Softcover: 308 pages List Price: $34.95 Order your personal copy at http://amazon.com/exec/obidos/ASIN/1893122301/internetbankrupt Summed up neatly, this is Jim Ling, founder and CEO of Ling-Temco-Vought, once the fourteenth-largest corporation on the Fortune 500 list: That he was able to get control of - and combine - the sixth largest steel company, the eighth largest airline, the eighth largest defense contractor, the third largest meat packer, the largest sporting-goods maker, and a string of other companies in an almost random group of industries may well be the most significant thing to be said about him. Or maybe it is the fact that he performed all this from a base of little education, no connections, no money, no status, no leverage of any kind, but solely on the strength of what he discovered and created. As fascinating as Ling was, this book offers so much more. Stanley H. Brown presents a remarkable knowledge of and intriguing insights into corporate history and institutional behavior. He understands what makes organizations work, whether corporate, religious, or military. Although it has been more than 25 years since Jim Ling was on top of the world, he and his story remain hard to beat. He was a man of integrity. Faced with defeat, he conjured up innovative solutions. He picked up the pieces and tried something else, and even investors once burned went back for more. He believed in himself and his ventures absolutely, so much so that he kept all his won money and his children's money in LTV stock, and was wiped out when it went bust. Ling was born one of six in Hugo, Oklahoma. A devout Catholic in the fundamentalist Bible Belt, his father killed a fellow worker in a rage after years of enduring anti-Catholic torment and, although acquitted, was so racked with guilt he left the family to live in a monastery. Ling's mother died when he was eleven. He never finished high school. After a short stint in the Navy during World War II, during which time he became an electrician, he started Ling Electric in Dallas. Post-war Dallas was good to bright men who worked hard. The company grew exponentially. Ling discovered public investors and began infusing them with his enthusiasm, enthusiasm that made them hand over lots of money to him. And he began to acquire companies at a dizzying pace, bigger and bigger companies: meatpacker Wilson & Co., steelmaker Jones & Laughlin, Braniff Airlines, LTV Aerospace, Wilson Sporting Goods, and many other, smaller companies. He was masterful financier with seemingly endless ideas on making money work. So where did it go wrong? Ling's over-conglomerated conglomerate spun out of control. He was a micromanager extraordinaire and kept too much decision-making power to himself. He was a victim of his own success and overfed ego. He fought long and hard with the Justice Department in an antitrust suit over Jones & Laughlin, but the country's suspicion of conglomerates in the late 1960s got the better of him. In the end, he was ousted by his own people but, true to form, went on to try something new. The author researched this book very thoroughly. He convinced Ling to keep a journal during some critical moments and interviewed all the major players. Read it for the story of Ling, but also to learn about what makes people tick. Stanley H. Brown is a former writer and editor at Business Week, Fortune, and Forbes. His columns have appeared in numerous publications. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Marites O. Claro, Rousel Elaine T. Fernandez, Joy A. Agravante, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2026. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000. * * * End of Transmission * * *