260804.mbx

260804.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 Tuesday, August 4, 2026, Vol. 27, No. 154 Headlines I R E L A N D ARES EUROPEAN VIII: S&P Assigns B- (sf) Rating to Cl. F-R-R Notes CONTEGO CLO XVI: Fitch Assigns 'B-sf' Final Rating on Class F Notes HARVEST CLO XLI: Fitch Assigns 'B-(EXP)sf' Rating to Class F Notes ROCKFORD TOWER 2026-1: Fitch Puts 'B-sf' Final Rating on F Notes ROUNDSTONE SECURITIES NO.2: Fitch Affirms 'BB-sf' Rating on F Notes I T A L Y RENO DE MEDICI: Fitch Cuts LT IDR to 'RD' on Missed Coupon Payment N E T H E R L A N D S TRUENOORD B.V.: S&P Assigns 'B+' ICR, Outlook Stable P O R T U G A L TAGUS STC: Fitch Assigns 'BBsf' Final Rating on Class C Notes S P A I N GRUPO ANTOLIN-IRAUSA: S&P Cuts ICR to 'SD' on Distressed Exchange T U R K E Y GOLDEN GLOBAL: Fitch Affirms 'B-' Long-Term IDR, Outlook Stable U N I T E D K I N G D O M ABBEYGLEN (CANNING ROAD): MHA Appointed as Joint Administrators ADMIN BUSINESS: Begbies Traynor Appointed as Administrators AVON FINANCE NO.3: S&P Lowers E-Dfrd Notes Rating to 'BB- (sf)' AVON FINANCE NO.4: S&P Affirms 'CCC- (sf)' Rating on G-Dfrd Notes CASTELL 2026-1: S&P Raises Cl. X1-Dfrd Notes Rating to 'BB+ (sf)' DACC EUROPE: RSM Appointed as Administrators MARKETGAIT PROPERTY: FRP Advisory Appointed as Joint Administrators MASK LOGIC: AAB Business Appointed as Joint Administrators MEASURABLE LTD: Opus Restructuring Named as Administrators MG SIGNS: Moorfields Appointed as Joint Administrators MORTIMER BTL 2023-1: S&P Affirms 'BB+ (sf)' Rating on X-Dfrd Notes POLARIS 2023-2: S&P Lowers Class F-Dfrd Notes Rating to 'B+ (sf)' RIPON MORTGAGES: S&P Lowers Class F-Dfrd Notes Rating to 'B- (sf)' SMARTER RECRUITMENT: Leonard Curtis Appointed as Administrators WD FF: Fitch Affirms 'B' IDR, Alters Outlook to Positive - - - - - ============= I R E L A N D ============= ARES EUROPEAN VIII: S&P Assigns B- (sf) Rating to Cl. F-R-R Notes ----------------------------------------------------------------- S&P Global Ratings assigned its credit ratings to Ares European CLO VIII DAC's class A-R-R, B-R-R, C-R-R, D-R-R, E-R-R, and F-R-R notes. At closing, the issuer has unrated subordinated notes outstanding from the existing transaction and also issued additional subordinated notes equaling EUR39.283 million. Subject to an extraordinary resolution from the existing subordinated noteholders, both the existing and the additional subordinated notes are to be exchanged for EUR26.1249 million of subordinated notes. This transaction is a reset of the already existing transaction which S&P rates. The existing classes of notes were fully redeemed with the proceeds from the issuance of the replacement notes on the reset date. The ratings on the original notes have been withdrawn. The reinvestment period will be approximately 4.7 years, while the noncall period will be 1.7 years after closing. Under the transaction documents, the rated notes will pay quarterly interest unless a frequency switch event occurs. Following this, the notes will switch to semiannual payment. The ratings assigned to the reset 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 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 2,826.15 Default rate dispersion 487.00 Weighted-average life (years) 4.24 Obligor diversity measure 170.88 Industry diversity measure 26.72 Regional diversity measure 1.27 Weighted-average life (years) extended to cover the length of the reinvestment period 4.71 Transaction key metrics Total par amount (mil. EUR) 400 Defaulted assets (mil. EUR) 0 Number of performing obligors 191 Portfolio weighted-average rating derived from S&P's CDO evaluator B 'CCC' category rated assets (%) 2.41 Target 'AAA' weighted-average recovery (%) 36.38% Actual weighted-average spread net of floors (%) 3.54 Actual weighted-average coupon (%) 4.87 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 EUR400.00 million target par amount, the actual weighted-average spread of 3.54%, the actual weighted-average coupon of 4.87%, 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-R-R to E-R-R 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-R-R notes can withstand stresses commensurate with the assigned rating. The class F-R-R 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-R-R notes' available credit enhancement, which is in the same range as that of other CLOs it has rated and that has recently been issued in Europe. -- S&P's model-generated portfolio default risk, which is at the 'B-' rating level at 26.13% (for a portfolio with a weighted-average life of 4.71 years) versus 15.08% if it was to consider a long-term sustainable default rate of 3.2% for 4.71 years. -- Whether the tranche is vulnerable to nonpayment. -- If there is a one-in-two chance of this tranche defaulting. -- If S&P envisions 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-R-R 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. "In addition to our standard analysis, to indicate how rising pressures among speculative-grade corporates could affect our ratings on European CLO transactions, we have also included the sensitivity of the ratings on the class A-R-R to E-R-R notes, 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-R-R 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." Ares European CLO VIII 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. Ares Management Ltd. manages the transaction. Ratings Amount Credit Class Rating* (mil. EUR) enhancement (%) Interest rate§ A-R-R AAA (sf) 248.000 38.00 Three/six-month EURIBOR plus 1.28% B-R-R AA (sf) 42.800 27.30 Three/six-month EURIBOR plus 1.80% C-R-R A (sf) 25.200 21.00 Three/six-month EURIBOR plus 2.00% D-R-R BBB- (sf) 30.000 13.50 Three/six-month EURIBOR plus 2.80% E-R-R BB- (sf) 16.000 9.50 Three/six-month EURIBOR plus 5.10% F-R-R B- (sf) 12.000 6.50 Three/six-month EURIBOR plus 8.47% Sub. notes NR 26.125 N/A N/A *The ratings assigned to the class A-R-R and B-R-R 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. Sub. notes--Subordinated notes. NR--Not rated. N/A--Not applicable. CONTEGO CLO XVI: Fitch Assigns 'B-sf' Final Rating on Class F Notes ------------------------------------------------------------------- Fitch Ratings has assigned Contego CLO XVI DAC notes final ratings, as detailed below. Entity/Debt Rating ----------- ------ Contego CLO XVI DAC A-Loan LT AAAsf New Rating A-Notes XS3405552012 LT AAAsf New Rating B XS3405552285 LT AAsf New Rating C XS3405552525 LT Asf New Rating D XS3405552954 LT BBB-sf New Rating E XS3405553176 LT BB-sf New Rating F XS3405553333 LT B-sf New Rating Subordinated Notes XS3405553689 LT NRsf New Rating Transaction Summary Contego CLO XVI DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds have been used to fund a portfolio with a target par of EUR400 million that is actively managed by Five Arrows Managers LLP. The CLO has a 4.5-year reinvestment period, and an 8.5-year weighted average life (WAL) test at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'. The Fitch weighted average rating factor of the identified portfolio is 24.2. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate of the identified portfolio is 65.8%. Diversified Asset Portfolio (Positive): The transaction includes various concentration limits, including a maximum exposure to the three largest Fitch-defined industries in the portfolio at 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction includes three matrix sets, each based on a top 10 obligor limit of 22.5%. Two matrices are effective at closing, corresponding to fixed-rate asset limits of 5% and 10%, and to an 8.5-year WAL test. The remaining two matrix sets correspond to a 7.5-year and seven-year WAL test, with the same fixed-rate asset limits as the closing matrices. The two forward matrix sets can be elected by the manager 12 months and 18 months after closing, subject to the collateral principal amount (with defaults carried at Fitch collateral value) being at least equal to the reinvestment target par balance. The transaction has a 4.5-year reinvestment period and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL used for the transaction's Fitch-stressed portfolio and matrices analysis is 12 months less than the WAL covenant, to account for structural and reinvestment conditions after the reinvestment period, including passing the overcollateralisation tests and Fitch 'CCC' limitation. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would lead to a downgrade of one notch to the class E notes and to below 'B-sf' for the class F notes, subject to the erosion of any margin of safety supporting the B- rating for the class F notes. There would be no rating impact on the class A to D notes. Downgrades, which are based on the identified portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of defaults and portfolio deterioration. The class B, D, and E notes each have a rating cushion of two notches, the class C notes have a cushion of four notches, and the class F notes have one notch, due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. The class A notes do not have any rating cushion as they are already at the highest achievable rating. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded either due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of three notches each for the class A and D notes, two notches each for the class B and C notes and below 'B-sf' for the class E and F notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to five notches each for the rated notes, except for the 'AAAsf' rated notes. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the remaining life of the transaction. Upgrades after the end of the reinvestment period may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority- registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Contego CLO XVI DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. HARVEST CLO XLI: Fitch Assigns 'B-(EXP)sf' Rating to Class F Notes ------------------------------------------------------------------ Fitch Ratings has assigned Harvest CLO XLI DAC notes expected ratings, as detailed below. The assignment of final ratings is contingent on the receipt of final documentation conforming to information already reviewed. Entity/Debt Rating ----------- ------ Harvest CLO XLI DAC A LT AAA(EXP)sf Expected Rating B LT AA(EXP)sf Expected Rating C LT A(EXP)sf Expected Rating D LT BBB-(EXP)sf Expected Rating E LT BB-(EXP)sf Expected Rating F LT B-(EXP)sf Expected Rating Subordinated Notes LT NR(EXP)sf Expected Rating Transaction Summary Harvest CLO XLI DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds will be used to fund a portfolio with a target par of EUR400 million. The portfolio is actively managed by Investcorp Credit Management EU Limited. The collateralised loan obligation (CLO) will have a 4.6-year reinvestment period, and a 8.5-year weighted average life (WAL) test at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors of the identified portfolio at 'B'/'B+'. The Fitch-calculated weighted average rating factor (WARF) of the identified portfolio is 23.1. High Recovery Expectations (Positive): At least 90% of the portfolio will comprise senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second-lien unsecured and mezzanine assets. The Fitch-calculated weighted average recovery rate (WARR) of the identified portfolio is 65.6%. Diversified Portfolio (Positive): The transaction will include concentration limits, including a top 10 obligor concentration limit of 20% It also will include various other concentration limits, including a maximum exposure to the three-largest Fitch-defined industries in the portfolio of 40%. These covenants ensure the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction will have a reinvestment period of about 4.6 years and will include reinvestment criteria similar to those of other European deals. Its analysis is based on a stressed-case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL used for the transaction's Fitch-stressed portfolio analysis and matrices analysis is 12 months less than the WAL covenant at the issue date. This is to account for strict reinvestment conditions envisaged by the transaction after its reinvestment period. These include passing the coverage tests and the Fitch 'CCC' bucket limitation test, and a WAL test covenant that gradually steps down over time, both before and after the end of the reinvestment period. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade A 25% increase of the mean default rate (RDR) and a 25% decrease of the recovery rate (RRR) across all ratings of the identified portfolio would have no impact on the class A to E notes and would lead to a downgrade below 'B-sf' for the class F notes. Downgrades, which are based on the identified portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of defaults and portfolio deterioration. The class B notes have a rating cushion of two notches, the class C, D and F notes each have a cushion of three notches and the class E notes have five notches, due to the better metrics and shorter life of the current portfolio than the Fitch-stressed portfolio. The class A notes do not have any rating cushion as they are already at the highest achievable rating. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded either due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of three notches each for the class A, B and D notes, two notches for the class C notes and below 'B-sf' for the class E and F notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to five notches each for the rated notes, except for the 'AAAsf' rated notes. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than- expected losses for the remaining life of the transaction. Upgrades after the end of the reinvestment period, may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread available to cover losses on the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority- registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG CONSIDERATIONS Fitch does not provide ESG relevance scores for the transaction. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. ROCKFORD TOWER 2026-1: Fitch Puts 'B-sf' Final Rating on F Notes ---------------------------------------------------------------- Fitch Ratings has assigned Rockford Tower Europe CLO 2026-1 DAC final ratings, as detailed below. Entity/Debt Rating ----------- ------ Rockford Tower Europe CLO 2026-1 DAC A-L LT AAAsf New Rating A-N XS3397098156 LT AAAsf New Rating B XS3397098313 LT AAsf New Rating C XS3397098743 LT Asf New Rating D XS3397099048 LT BBB-sf New Rating E XS3397099394 LT BB-sf New Rating F XS3397099550 LT B-sf New Rating Subordinated Notes XS3397099717 LT NRsf New Rating Transaction Summary Rockford Tower Europe CLO 2026-1 DAC is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, second-lien loans and high-yield bonds. Note proceeds have been used to fund a portfolio with a target par of EUR400 million that is actively managed by Rockford Tower Capital Management, L.L.C. The collateralised loan obligation (CLO) has a 4.5-year reinvestment period and an 8.5 weighted average life test (WAL) at closing. KEY RATING DRIVERS Average Portfolio Credit Quality (Neutral): Fitch assesses the average credit quality of obligors at 'B'. The Fitch weighted average rating factor (WARF) of the identified portfolio is 23.4. High Recovery Expectations (Positive): At least 90% of the portfolio comprises senior secured obligations. Fitch views the recovery prospects for these assets as more favourable than for second lien, unsecured and mezzanine assets. The Fitch weighted average recovery rate (WARR) of the identified portfolio is 65%. Diversified Portfolio (Positive): The transaction includes various concentration limits, including a maximum exposure to the three largest (Fitch-defined) industries in the portfolio at 40%. These covenants ensure that the asset portfolio will not be exposed to excessive concentration. Portfolio Management (Neutral): The transaction includes six matrices, all corresponding to a top 10 obligor concentration limit at 20%. The first matrix set applies at closing with a WAL of 8.5 years, the second set with a WAL of 7.5 years is effective 12 months after closing and the third set with a WAL of seven years is effective 18 months after closing. All three sets have fixed-rate asset limits of 5% and 10% and are contingent on the aggregate collateral balance (defaulted obligations at Fitch-calculated collateral value) being at least at the reinvestment target par balance. The transaction has a reinvestment period of about 4.5 years and includes reinvestment criteria similar to those of other European transactions. Fitch's analysis is based on a stressed case portfolio with the aim of testing the robustness of the transaction structure against its covenants and portfolio guidelines. Cash Flow Modelling (Positive): The WAL for the transaction's Fitch-stressed portfolio analysis is 12 months less than the WAL covenant. This is to account for the strict reinvestment conditions envisaged by the transaction after its reinvestment period, which include passing the coverage tests and the Fitch 'CCC' bucket limitation test and a WAL covenant that progressively steps down, before and after the end of the reinvestment period. Fitch believes these conditions would reduce the effective risk horizon of the portfolio during stress periods. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade An increase of the default rate (RDR) by 25% of the mean RDR and a decrease of the recovery rate (RRR) by 25% at all ratings in the identified portfolio would have no impact on any of the rated notes. Downgrades, which are based on the identified portfolio, may occur if the loss expectation is larger than assumed, due to unexpectedly high levels of default and portfolio deterioration. The class B notes have a rating cushion of three notches, the class C and D notes each have a cushion of four notches and the class E and F notes each have five notches, due to the better metrics and shorter life of the identified portfolio than the Fitch-stressed portfolio. The class A notes are already rated at the highest possible level. Should the cushion between the identified portfolio and the Fitch-stressed portfolio be eroded due to manager trading or negative portfolio credit migration, a 25% increase of the mean RDR and a 25% decrease of the RRR across all ratings of the Fitch-stressed portfolio would lead to downgrades of up to three notches for the notes, except for the class E and F notes, which would be downgraded below 'B-sf'. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A 25% reduction of the mean RDR and a 25% increase in the RRR across all ratings of the Fitch-stressed portfolio would lead to upgrades of up to four notches, except for the 'AAAsf' notes. Upgrades during the reinvestment period, which are based on the Fitch-stressed portfolio, may occur on better-than-expected portfolio credit quality and a shorter remaining WAL test, allowing the notes to withstand larger-than-expected losses for the transaction's remaining life. Upgrades after the end of the reinvestment period may result from stable portfolio credit quality and deleveraging, leading to higher credit enhancement and excess spread to cover losses in the remaining portfolio. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY The majority of the underlying assets or risk-presenting entities have ratings or credit opinions from Fitch and/or other Nationally Recognized Statistical Rating Organizations and/or European Securities and Markets Authority- registered rating agencies. Fitch has relied on the practices of the relevant groups within Fitch and/or other rating agencies to assess the asset portfolio information or information on the risk-presenting entities. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations Fitch does not provide ESG relevance scores for Rockford Tower Europe CLO 2026-1 DAC. In cases where Fitch does not provide ESG relevance scores in connection with the credit rating of a transaction, programme, instrument or issuer, Fitch will disclose any ESG factor that is a key rating driver in the key rating drivers section of the relevant rating action commentary. ROUNDSTONE SECURITIES NO.2: Fitch Affirms 'BB-sf' Rating on F Notes ------------------------------------------------------------------- Fitch Ratings has affirmed Roundstone Securities No.2 DAC and removed three tranches from Rating Watch Positive (RWP). The Outlooks on the class B and D notes are Positive, while the rest are Stable. Entity/Debt Rating Prior ----------- ------ ----- Roundstone Securities No.2 DAC A XS2779836308 LT AAAsf Affirmed AAAsf B XS2779836480 LT AAsf Affirmed AAsf C XS2779836647 LT A+sf Affirmed A+sf D XS2779836993 LT BBB+sf Affirmed BBB+sf E XS2779837025 LT BB+sf Affirmed BB+sf F XS2779837298 LT BB-sf Affirmed BB-sf Transaction Summary The transaction is a securitisation of first-lien Irish residential owner occupied (OO; 80%) and buy-to-let (BTL; 20%) mortgage assets originated prior to 2010 by Bank of Scotland Ireland. The pool was previously securitised in Roundstone No.1 DAC, which was not rated by Fitch. KEY RATING DRIVERS Updated HPI for Ireland: The rating actions reflect the updated assumptions driving Fitch's recovery rates under the European RMBS Rating Criteria. Since the previous house price index (HPI) update in October 2024, the data indicates that Ireland has recorded strong house price growth, which has reduced the weighted average indexed current loan-to-value (LTV) ratios of this transaction (see "Fitch Places 42 European RMBS Tranches on Rating Watch Positive on House Price Decline Update" dated 3 March 2026). However, the mixed performance of the underlying pool has led Fitch to affirm the ratings. Stable Arrears, despite Widening Losses: Over the past 12 months, loans more than 90 days in arrears have remained broadly stable at about 17% of the outstanding portfolio balance. Cumulative losses widened to 1.1% from 0.4% over the same period, indicating that losses are being realised by some distressed borrowers, despite stable arrears. Cumulative recoveries to date have been limited. High Portion of Restructured Loans: The share of loans subject to forbearance and restructuring arrangements remains high at 23% of the outstanding portfolio balance, compared with 21.5% as at the previous review in January 2026. For borrowers with a restructuring arrangement and were last in arrears in the last 12 months but had had 100% payment history in the last 12 months of amounts due under the restructuring plan, Fitch has increased by 1.5x the base loan-level foreclosure frequency (FF), rather than treating them as in arrears. Limited Excess Spread: The transaction's limited excess spread has led to drawings on the transaction's non-liquidity reserve fund. As of the latest payment date, the reserve was 91.5% of its target amount and it could further deteriorate when the step-up in interest takes effect in March 2027. The transaction also reported an uncleared principal deficiency ledger balance of EUR37.4 million, equivalent to about 27% of the class Z notes. Rising Credit Enhancement: Fitch deems the notes are sufficiently protected by credit enhancement (CE) to compensate the credit and cash flow stresses associated with the ratings. The Positive Outlook on the class B and D notes reflect increased available CE, which Fitch expects to rise further with the sequential amortisation of the notes. Payment Interruption Risk: The class C notes' rating is limited to the 'Asf' category by its expectation that the non-liquidity reserve under its expected case will be fully depleted by year five, at a time when the class C notes will still be outstanding. This would leave the notes without adequate structural liquidity support to mitigate payment interruption risk. High Interest-Only Exposure: The pool contains about 62% (by current balance) of interest-only (IO) loans, with 40% OO and 22% BTL. Fitch sees a high risk of prolonged forbearance being offered to OO borrowers where bullet payments are not met at loan maturity. Fitch believes this is most likely to materialise for older borrowers with higher LTVs, and Fitch has therefore assumed OO IO loans with an indexed current LTV greater than 60% and borrowers aged 60 years or older at loan maturity will produce no yield in the analysis, in line with the transaction closing. Predominantly Floating Loans, Unhedged Basis Risk: Close to 100% of the loans are floating-rate: 81% of the loans are linked to the ECB rate and 17% are linked to SVR (which tracks the ECB rate) plus a weighted average margin of 1.1%. No swap is in place to hedge the mismatch between the ECB and SVR-linked assets and the Euribor-based notes, exposing the transaction to basis risk. Fitch has therefore applied its basis risk assumptions for this exposure in line with the European RMBS Rating Criteria. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The transaction's performance may be affected by changes in market conditions and the economic environment. Weakening economic performance is strongly correlated to increasing levels of losses; particularly, unanticipated declines in recoveries could result in lower net proceeds, which may make certain notes susceptible to negative rating action depending on the extent of the decline in recoveries. Fitch found that a 15% increase in the WAFF and a 15% decrease in the WA recovery rate (RR) indicate downgrades of one notch on the class C, D, E and F notes. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Stable to improved asset performance driven by stable losses may lead to upgrades, provided sufficient credit enhancement is available to withstand stresses associated to higher rating levels. Fitch found a decrease in the WAFF of 15% and an increase in the WARR of 15% indicate upgrades of one notch for the class B notes, up to three notches for the class C, five notches for the class D notes and up to six notches for the class E and F notes. USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch has checked the consistency and plausibility of the information it has received about the performance of the asset pool and the transaction. Fitch has not reviewed the results of any third party assessment of the asset portfolio information or conducted a review of origination files as part of its ongoing monitoring. Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action Prior to the transaction closing, Fitch reviewed the results of a third party assessment conducted on the asset portfolio information and concluded that there were no findings that affected the rating analysis. Prior to the transaction closing, Fitch conducted a review of a small targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. ========= I T A L Y ========= RENO DE MEDICI: Fitch Cuts LT IDR to 'RD' on Missed Coupon Payment ------------------------------------------------------------------ Fitch Ratings has downgraded Reno De Medici S.p.A.'s (RDM) Long-Term Issuer Default Rating (IDR) to 'RD' (Restricted Default) from 'CC', after the company failed to cure the missed second coupon payment on its EUR600 million senior secured notes (SSNs) within the 30-day grace period. Fitch has subsequently upgraded RDM's IDR to 'C'. The upgrade to 'C' reflects RDM's proposed debt restructuring, announced on 17 July 2026, which has secured consent from more than 85% of bondholders and a comfort letter from all revolving credit facility (RCF) lenders to initiate Italian court proceedings. Fitch assesses the proposed transaction as a distressed-debt exchange (DDE). The proposal includes a 50% write-off of the existing EUR600 million SSNs, extended debt maturities and EUR100 million new money notes. Fitch expects this to result in a business and financial profile commensurate with a mid to high 'CCC' rating category following the successful completion of the transaction. Key Rating Drivers Missed Uncured Coupon Payment: The downgrade to 'RD' reflects RDM's failure to cure the second missed coupon on its SSNs after the original 30-day grace period expired. RDM has secured bondholder consent to defer the coupon, which will be treated as locked-up debt in the restructuring. Fitch treats the lapse of an original grace period without payment as an 'RD'. These payments are unlikely to be made until the restructuring is completed. Proposed Transaction a DDE: In Fitch's view RDM's plan to reorganise its capital structure by converting its SSNs into equity constitutes a DDE. The transaction equitises up to 50% of the EUR600 million SSNs, plus a write-off of unpaid accrued interest for missed coupons until completion. Non-participating bondholders may lose seniority, with maturities extended to October 2033, the coupon cut to 1% and covenant protections stripped. The coercive nature of the exchange highlights RDM's limited financial flexibility. Completion of this transaction is subject to Italian court approval and is expected to be executed by end-2026. On completion, Fitch will downgrade the IDR to 'RD' and re-rate the new capital structure. Deleveraging Post-Transaction: RDM's proposed capital structure reduces total debt to EUR610 million at end-2026 (2025: EUR880 million), driven by the debt equity conversion of its existing SSNs. Participating noteholders exchange their notes at 50% of their principal into new senior secured exchange notes due October 2031, and take 20% of the equity in a new holding company. Fitch forecasts EBITDA leverage to remain high over 2026-2028 though it will improve materially, to 7.2x by end-2028, with the EBITDA margin reaching 10.5% backed by capacity rationalisation initiatives proposed by the company. Weak Liquidity to Improve: RDM's liquidity is weak after materially negative free cash flow (FCF) in 2025, which it managed with a EUR50 million bridge loan, resulting in missed coupon payments on its SSNs. Fitch expects EBITDA underperformance to persist, with Fitch-adjusted EBITDA of about EUR40 million and a 5.6% margin in 2026. Upon completion of the transaction, RDM will receive about EUR60 million of net cash, after transaction costs, plus EUR10 million from the Barcelona disposal net of debt repayment. It will also not service the missed SSN coupon or the RCF coupon from July 2026 until completion, providing a cushion that improves liquidity by end-2026. Persistent Cash Losses: Fitch expects FCF to remain negative in 2026, at EUR47 million, and to be neutral in 2027, after about EUR230 million of cumulative negative FCF in 2024-2025. This reflects weak trading and depressed profitability due to weak pricing and high energy and raw material costs. Uncertainty remains around the timing of market recovery and RDM's operational turnaround after the closure of its Barcelona plant. Announced profitability improvement initiatives will be critical to safeguarding the viability of RDM's future operations. Peer Analysis RDM is small compared with other Fitch-rated packaging peers, such as Sappi Limited (BB/Stable), CANPACK Group, Inc. (BB/Negative) and Ardagh Metal Packaging S.A. (B/Stable). RDM's business profile is weaker than its peers', due to its limited geographical diversification. RDM's forecast EBITDA margin of 5%-10% remains lower than Ardagh's 11%-12% and materially below Nordic Paper Holding AB's (B+/Positive) 17%-19%. This is due to its concentrated presence in the European packaging market, while the others have a presence in America and Asia. RDM's negative FCF margins in 2025-2028 are materially weaker than Ardagh Metal's negative 1%-2% and Sappi's negative 1%-3%. RDM's financial profile in 2025-2028 is considerably weaker than all other Fitch-rated packaging peers'. Fitch estimates RDM's gross leverage at 25.4x at end-2025, 14.2x at end-2026 and 8.9x at end-2027, which are much weaker than Ardagh Metal's 6.0x , Sappi's 3.2x or Nordic Paper's 3.0x at end-2027. Fitch’s Key Rating-Case Assumptions - Debt restructuring transaction to be completed as proposed by end-2026 - Revenue to grow at 3%-3.5% annually across 2026-2028 due to increase in volume - EBITDA margin to stay at 5%-6% in 2026 and to trend towards 9%-10% in 2027-2028, due to volume recovery and cost-cutting initiatives - Cash interest expense to reduce to EUR26 million in 2026 due to the unpaid coupon, before increasing to EUR37 million in 2027 and EUR45 million in 2028, driven by high-cost new money notes and step-up cash margins for the exchange notes in line with the proposed transaction - Bridge loan to be repaid in 2026 using the Barcelona plant disposal proceeds - Working-capital outflows in 2026, followed by neutral working-capital across 2027-2028 - Capex at EUR30 million annually across 2026-2028 - No dividends or M&A to end-2028 Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('b-', Moderate), sector characteristics ('bb', Lower), market and competitive positioning ('b', Moderate), diversification and asset quality ('bb-', Moderate), company operational characteristics ('b', Moderate), profitability ('ccc+', Moderate), financial structure ('ccc-', Higher), and financial flexibility ('ccc-', Higher). The quantitative financial subfactors are based on custom CRT financial period parameters: 20% weight for the forecast year 2026, 40% for the forecast year 2027 and 40% for the forecast year 2028. The governance assessment of 'some deficiencies' has no impact. The operating environment assessment of 'a' has no impact. The other risk elements adjustment applies and results in an adjustment of -3 notch(es). The SCP is 'c'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'C'. Recovery Analysis The recovery analysis of the current capital structure assumes that RDM would be reorganised as a going concern (GC) in bankruptcy rather than liquidated. Fitch assumes a 10% administrative claim. RDM's super senior RCF is fully drawn after restructuring and ranks ahead of senior secured debt. Fitch also considers the EUR50 million bridge loan as super senior, as this is an asset-backed lending facility, which will be repaid with the sale proceeds of the Barcelona plant. Factoring facilities backed by receivables also rank super senior. Fitch estimates GC EBITDA at EUR80 million, reflecting the sustainable, post-reorganisation EBITDA on which Fitch bases the valuation of the company. An enterprise value multiple of 5.0x is applied to GC EBITDA to calculate a post-reorganisation valuation. It reflects RDM's long-term relationship with clients, well-invested production assets and a 60%-70% exposure to resilient markets. This is in line with other packaging peers, like Ardagh. Its debt structure comprises an increased EUR141.6 million (as of December 2025) super senior RCF (assumed fully drawn), EUR600 million SSNs, EUR50 million bridge loan, EUR44 million factoring (outstanding value as of December 2025) and EUR26 million of other debt. Its waterfall analysis based on the above generates a ranked recovery for the SSN noteholders in the 'RR5' category, leading to a 'C' rating for the EUR600 million notes. Fitch will reassess the recovery ratings of new capital structure once the transaction is completed. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade Fitch would downgrade the rating to 'RD' once the exchange is completed before it assigns a rating to reflect its post-completion profile. Fitch would downgrade the rating to 'Default' if the company enters bankruptcy, administration or any other formal winding-up procedure. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade Fitch does not envisage an upgrade before an overhaul of the capital structure. Liquidity and Debt Structure Fitch expects RDM's liquidity at end-December 2025 to consist of about EUR43 million Fitch-adjusted cash (with the EUR141.6 million RCF fully drawn). This also includes a EUR50 million bridge loan arranged/drawn in November 2025, which will be used to fund negative FCF in 2026. Fitch expects the Barcelona plant disposal proceeds of about EUR60 million to be available in 3Q26 and to be used to repay the EUR50 million bridge loan. RDM's financial flexibility remains stretched, with forecast negative FCF of EUR47 million in 2026 and EUR2 million in 2027. The company had no major repayment obligations other than the EUR43.7 million factoring and EUR44 million of other short-term loans at end-2025; however, its EUR50 million bridge loan will have to be repaid in 2H26 using the Barcelona plant sale proceeds. RDM's existing debt structure remains dominated by its EUR600 million SSNs due in April 2029. Following the transaction completion, the debt structure will comprise a EUR147million RCF valid until April 2031, exchange notes of EUR300 million and new money notes of EUR100 million, both maturing in October 2031, and any remaining unaccepted existing senior notes with maturities extended until October 2033. Issuer Profile RDM, founded in 1967 and headquartered in Milan, is a leading European producer and distributor of recycled paper boards, mainly for the packaging industry. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for RDM. ESG Considerations Reno de Medici S.p.A. has an ESG Relevance Score of '4[+]' for Exposure to Social Impacts due to consumer preference shift from plastic to paper and cardboard packaging which has a positive impact on the credit profile, and is relevant to the rating[s] in conjunction with other factors. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Recovery Prior ----------- ------ -------- ----- Reno de Medici S.p.A. LT IDR RD Downgrade CC LT IDR C Upgrade senior secured LT C Affirmed RR5 C ===================== N E T H E R L A N D S ===================== TRUENOORD B.V.: S&P Assigns 'B+' ICR, Outlook Stable ---------------------------------------------------- S&P Global Ratings assigned its 'B+' issuer credit rating to TrueNoord B.V. and withdrew its 'B+' rating on TrueNoord Ltd. S&P's 'B+' issue rating and '4' recovery rating on TrueNoord Designated Activity Co.'s senior unsecured notes remain unchanged. The stable outlook reflects S&P's expectation that TrueNoord will continue to grow its fleet while maintaining relatively stable credit metrics. On July 30, 2026, TrueNoord B.V. announced that Arcus Infrastructure Partners had completed its acquisition of approximately 74% ownership in the company. The founding investor Freshstream remains invested in the rest. S&P Global Ratings doesn't expect the ownership change to materially alter the company's business strategy or financial profile. TrueNoord B.V. is an indirect holding company of TrueNoord's operating entities and will replace TrueNoord Ltd. as the guarantor of the TrueNoord Capital Designated Activity Co.'s unsecured notes. S&P said, "We expect TrueNoord's operating strategy and financial policy to remain unchanged under the new ownership. We believe TrueNoord's fleet strategy will remain focused on the 50- to 150-seat aircraft market, supported by diversified growth channels. Additionally, we anticipate Arcus will generally support TrueNoord's ongoing growth plans, including with potential equity contributions, should outsize capital deployment opportunities arise. We also expect the company to continue to focus on optimizing its funding profile by increasing its proportion of unsecured funding over time. "We expect TrueNoord's credit metrics to remain commensurate with the existing ratings over the next 12 months. As of March 31, 2026, the company's EBIT interest coverage (based on S&P Global Ratings' calculation) was 1.1x, relatively unchanged from a year prior. The company's debt to capital was 71.0% and funds from operations (FFO) to debt was 7.4%, compared with 70.2% and 8.0%, respectively, as of March 31, 2025. We also don't expect the acquisition to add any debt to the capital structure. Additionally, through the transaction, the company replaced its preferred equity (which we treated as debt in our leverage calculation) with common equity, which simplified its capital structure. "While we will continue to evaluate the impact of purchase accounting on the company's credit metrics in the coming quarters, we currently do not expect the potential adjustments alone to alter our view of the company's financial profile, given our expectation that the company's financial policy and cash generation profile will be unchanged. For instance, a markup in fleet value from the transaction would lead to higher depreciation, thereby compressing the company's EBIT interest coverage. Conversely, the debt to capital ratio would improve due to the resulting increase in equity value. "The stable outlook indicates our expectation that the ownership change won't affect TrueNoord's financial and operating strategy. We expect the company will continue to grow its fleet while maintaining weighted average EBIT interest coverage of 1.1x-1.3x through fiscal 2027. We also expect the company to operate with debt to capital well below 80% and FFO to debt of 7%-9% for the next 12 months." S&P could lower the rating if EBIT interest coverage falls materially below 1.0x or if its debt-to-capital ratio increases above 82% on a sustained basis. S&P could also downgrade the company if: -- Profitability and cash flow are significantly below our expectations because of lower leasing demand, -- The company significantly increases its debt to finance strategic investments or dividend payments to its owners, or -- Liquidity materially deteriorates. S&P said, "We could raise the rating if TrueNoord makes significant progress toward unencumbering its balance sheet while continuing to grow its fleet and diversify its lessee base. We could also raise the rating if the company maintains EBIT interest coverage above 1.3x and debt to capital below 82% on a sustained basis." =============== P O R T U G A L =============== TAGUS STC: Fitch Assigns 'BBsf' Final Rating on Class C Notes ------------------------------------------------------------- Fitch Ratings has assigned Tagus, STC S.A. / Viriato Finance No. 2 (Viriato 2) final ratings, as detailed below. Entity/Debt Rating Prior ----------- ------ ----- Tagus, STC S.A. / Viriato Finance No. 2 Class A PTTUSSOM0001 LT AA-sf New Rating AA-(EXP)sf Class B PTTUSTOM0000 LT A-sf New Rating A-(EXP)sf Class C PTTUSUOM0007 LT BBsf New Rating BB(EXP)sf Class D PTTUSVOM0006 LT NRsf New Rating NR(EXP)sf Class E PTTUSWOM0005 LT NRsf New Rating NR(EXP)sf Class X PTTUSZOM0002 LT Asf New Rating A(EXP)sf Transaction Summary Viriato 2 is a nine-month revolving securitisation of a portfolio of fully amortising unsecured consumer loans originated and serviced in Portugal by WiZink Bank S.A.U. Sucursal em Portugal (WiZink Portugal). WiZink Portugal is the Portuguese branch of Wizink Bank, S.A.U., registered in Spain and majority-owned by Värde Partners, and acts as portfolio servicer, originator and seller. KEY RATING DRIVERS Asset Assumptions Reflect Pool Profile: Fitch sets base-case lifetime default and recovery rates at 8% and 20%, respectively, for the total pool, based on the historical data provided by the originator, Portugal's economic outlook, pool features, and WiZink Portugal's underwriting and servicing strategies. The estimated lifetime loss rate is 20.5% for the 'AA-sf' rating case. Short Revolving Period: The transaction has a nine-month revolving period during which new receivables can be purchased by the special purpose vehicle. Fitch considers any credit risk stemming from the revolving period to be sufficiently captured by default multiples. Fitch expects about 17% of the pool balance to be replenished during the revolving period, assuming an annualised prepayment rate of 10%. Pro-Rata Amortisation: The class A to E notes will be repaid pro-rata after the revolving period until a sequential amortisation event occurs, primarily linked to performance triggers, such as the cumulative balance of defaults or entries to the principal deficiency ledger. Fitch views those triggers sufficiently robust to prevent the pro-rata amortisation from continuing in the event of a deterioration in performance. Fitch also considers the tail risk posed by the pro-rata paydown to be mitigated by a mandatory switch to sequential amortisation when the outstanding pool balance falls below 10% of the initial balance. Payment Interruption Risk Mitigated: Fitch views payment interruption risk on the notes as mitigated in the event of servicer distress. This is based on liquidity protection in the form of a dedicated liquidity reserve, the operational capabilities of WiZink Portugal, the very high frequency of cash collection sweeps into the transaction account bank every two days, and the presence of a back-up servicer facilitator. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Long-term asset performance deterioration such as increased delinquencies or reduced portfolio yield, which could be driven by changes in portfolio characteristics, macroeconomic conditions, business practices or the legislative landscape Expected impact on the notes' ratings of increased defaults (class A/B/C/D/E/X) Increase default rates by 10%: 'AA-sf'/'A-sf'/'BBsf'/'NRsf'/'NRsf'/'Asf' Increase default rates by 25%: 'A+sf'/'BBB+sf'/'BB-sf'/'NRsf'/'NRsf'/'Asf' Increase default rates by 50%: 'Asf'/'BBB-sf'/'CCCsf'/'NRsf'/'NRsf'/'Asf' Expected impact on the notes' ratings of reduced recoveries (class A/B/C/D/E/X) Reduce recovery rates by 10%: 'AA-sf'/'A-sf'/'BBsf'/'NRsf'/'NRsf'/'Asf' Reduce recovery rates by 25%: 'AA-sf'/'A-sf'/'BBsf'/'NRsf'/'NRsf'/'Asf' Reduce recovery rates by 50%: 'AA-sf'/'BBB+sf'/'BBsf'/'NRsf'/'NRsf'/'Asf' Expected impact on the notes' ratings of increased defaults and reduced recoveries (class A/B/C/D/E/X) Increase default rates by 10% and reduce recovery rates by 10%: 'AA-sf'/'A-sf'/'BBsf'/'NRsf'/'NRsf'/'Asf' Increase default rates by 25% and reduce recovery rates by 25%: 'Asf'/'BBBsf'/'Bsf'/'NRsf'/'NRsf'/'Asf' Increase default rates by 50% and reduce recovery rates by 50%: 'BBB+sf'/'BB+sf'/'NRsf'/'NRsf'/'NRsf'/'Asf' Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - Increasing credit enhancement ratios as the transaction deleverages to fully compensate for the credit losses and cash flow stresses commensurate with higher ratings will be positive for ratings USE OF THIRD PARTY DUE DILIGENCE PURSUANT TO SEC RULE 17G -10 Form ABS Due Diligence-15E was not provided to, or reviewed by, Fitch in relation to this rating action. DATA ADEQUACY Fitch reviewed the results of a third-party assessment conducted on the asset portfolio information and concluded that there were no findings that affected the rating analysis. Fitch conducted a review of a small, targeted sample of the originator's origination files and found the information contained in the reviewed files to be adequately consistent with the originator's policies and practices and the other information provided to the agency about the asset portfolio. Overall, and together with any assumptions referred to above, Fitch's assessment of the information relied upon for the agency's rating analysis according to its applicable rating methodologies indicates that it is adequately reliable. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. ========= S P A I N ========= GRUPO ANTOLIN-IRAUSA: S&P Cuts ICR to 'SD' on Distressed Exchange ----------------------------------------------------------------- S&P Global Ratings lowered its long-term issuer credit rating on Grupo Antolin-Irausa, S.A.U. (Antolin) to selective default 'SD' (selective default) from 'CCC-' with a negative outlook, while its ratings on the senior secured notes maturing respectively in 2028 and 2030 and on the revolving credit facility (RCF) remain unchanged at 'CCC-'. S&P also maintains its '3' recovery rating on the secure notes, indicating its estimate of about 55% recovery in a likely payment default scenario. S&P views the proposed transaction as a distressed exchange. Upon court approval and implementation of the restructuring it expects to lower the issuer credit rating and existing issue ratings to 'D'. On July 17, 2026, the Spanish Commercial Court accepted a filing from Grupo Antolin-Irausa, S.A.U. (Antolin) for a restructuring plan that aims to refinance the company's capital structure and extend its maturity profile. Separately, the U.S. Bankruptcy Court approved the motion under Chapter 15 for a provisional stay pending its ruling on the recognition of the Spanish restructuring plan. Antolin will continue to operate in the ordinary course, including servicing interest on its outstanding debt. However, the ongoing court proceedings in Spain are preventing Antolin from making scheduled amortization payments on two of its unrated debt facilities due on July 31, 2026. The approval of the Spanish restructuring plan introduces a provisional stay on Antolin's existing debt instruments. The issuer continues to operate in the ordinary course, including servicing interest on all its outstanding debt. However, court proceedings in Spain prevent it from making scheduled amortizations on two of its unrated debt facilities maturing on July 31, 2026, namely EUR3.3 million on its European Investment Bank (EIB) loan and EUR10.7 million under its term loan A. S&P said, "This leads us to lower the issuer credit rating to 'SD' (selective default) from 'CCC-/Negative'. At the same time, ratings on the 2028 and 2030 senior secured notes and on the RCF remain unchanged. In our view, the restructuring of Antolin's debt is meant to address the sustainability of the company's capital structure, but we assess the company as having sufficient liquidity to maintain its ordinary operations and ensure timely payment of suppliers in the next few quarters." The restructuring plan's proposed homologation proceedings cover EUR1.231 million of debt as of June 30, 2026, comprising: -- EUR600.8 million of bank debt including EUR162.2 million under a senior secured RCF, EUR243.4 million under a syndicated loan facility, EUR45.2 million under an EIB facility, and EUR150 million under the loan extended by the Instituto de Crédito Oficial; -- EUR630.3 million of senior secured notes maturing in 2028 (EUR380 million) and 2030 (EUR250 million). =========== T U R K E Y =========== GOLDEN GLOBAL: Fitch Affirms 'B-' Long-Term IDR, Outlook Stable --------------------------------------------------------------- Fitch Ratings has affirmed Golden Global Yatirim Bankasi A.S.'s (GGB) Long-Term Foreign-Currency (LTFC) and Local-Currency (LTLC) Issuer Default Ratings (IDRs) at 'B-'. The Outlooks are Stable. Fitch has also affirmed GGB's Viability Rating (VR) at 'b-'. Key Rating Drivers Standalone Creditworthiness Drives Ratings: GGB's LT IDRs are driven by its standalone strength, as reflected by its VR. The VR reflects the bank's limited franchise, concentration risks, volatile profitability, risks to capitalisation and concentrated short-term wholesale funding. Iran Conflict Pressures Operating Environment: Fitch considers macroeconomic stability risks and external financing pressures to have risen following the outbreak of the Iran war, leading to a marked fall in Turkiye's international reserves since the start of the war. Banks' financial and risk profiles face challenges through higher-for-longer Turkish lira interest rates and inflation. Small Investment Bank: GGB is a privately held investment bank that operates based on sharia principles. The bank has a small market share (end-1Q26: 0.06% of banking sector assets). Concentrated Financing Book: The financing book is highly concentrated by single obligor, reflecting the bank's still small financing portfolio, represented by a small number of cash-financing and non-cash-financing clients. Lending is largely short term and to large Turkish corporates. Risks to Asset Quality: GGB had no impaired financing at end-1Q26. High concentrations, exposures to SMEs (31% of gross financing) and FC financing (48% of gross financing) present asset-quality risks alongside slowing economic growth, high inflation and still high lira interest rates. Fitch expects impaired financing to increase to about 2.5% at end-2026. Volatile Profitability: GGB's operating profit declined sharply to 1.5% of risk-weighted assets at end-1Q26 (end-2025: 7.5%), due to weaker earnings caused by slower financing growth, higher funding and swap costs and increased operating costs, including a large non-recurring item. Provision reversals supported operating profit. Fitch expects operating profitability to be about 2.5% of risk-weighted assets at end-2026. Risks to Capital: GGB's common equity Tier 1 (CET1) ratio declined to 11.5% at end-1Q26 from 16.7% at end-2025, mainly due to the removal of forbearance and growth. Fitch expects the CET1 ratio to be about 12% at end-2026. The total capital ratio of 17.7% reflects the USD30 million subordinated sukuk issuance issued in 1Q26. Its assessment of capitalisation factors in high concentration risk and the small absolute size of the capital base. Capitalisation is sensitive to the macroeconomic outlook, lira depreciation, asset-quality risks and growth. Short-Term Wholesale Funding: GGB is entirely wholesale-funded, as it is an investment bank and therefore does not have a customer-deposit licence. Funding is short term, concentrated and mainly in FC, exposing the bank to refinancing risks. However, the bank has been diversifying its funding sources across instruments, including through the recent USD30 million subordinated sukuk issuance. Rating Sensitivities Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade The bank's Long-Term IDRs are mainly sensitive to a downgrade of its VR. The VR could be downgraded due to a weakening of the bank's funding profile, given its exposure to refinancing risks. The VR could also be downgraded due to a sustained deterioration in the CET1 ratio to below 11%, driven by a higher risk appetite or by a significant deterioration of asset quality and profitability. Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade A VR upgrade would require a material strengthening of the bank's franchise and funding profile, and a decline in risk concentrations, while maintaining adequate asset quality and profitability metrics. OTHER DEBT AND ISSUER RATINGS: KEY RATING DRIVERS The bank's 'B' Short-Term IDRs are the only possible option for Long-Term IDRs in the 'B' rating category. GGB's National LT Rating of 'BB-(tur)'/Stable reflects Fitch's view of the bank's creditworthiness in LC relative to other Fitch-rated Turkish issuers'. GGB's Government Support Rating of 'no support' (ns) reflects Fitch's view that support from the Turkish authorities cannot be relied on, given the bank's small size and limited systemic importance. OTHER DEBT AND ISSUER RATINGS: RATING SENSITIVITIES The bank's Short-Term IDRs are sensitive to changes in its Long-Term IDRs. GGB's National LT Rating is sensitive to changes in the bank's creditworthiness relative to that of other rated Turkish issuers in LC. An upgrade of the bank's Government Support Rating is unlikely, given GGB's limited systemic importance and franchise. VR ADJUSTMENTS The operating environment score of 'bb-' is below the 'bbb' category implied score due to the following adjustment reason(s): sovereign rating (negative). The asset quality score of 'b-' is below the 'bbb' category implied score due to the following adjustment reason(s): concentrations (negative). The earnings and profitability score of 'b-' is below the 'bbb' category implied score due to the following adjustment reason(s): earnings stability (negative). The capitalisation and leverage score of 'b-' is below the 'bb' category implied score due to the following adjustment reason(s): size of capital base (negative), risk profile and business model (negative). Criteria Variation Fitch applied a variation from the criteria in assessing GGB's funding and liquidity. Under Fitch's Bank Rating Criteria, the analysis of an entity's funding and liquidity includes an assessment based on the core metric of loans/customer deposits. This, however, is not applicable to investment banks as they are restricted from taking deposits. Therefore, Fitch has used its Non-Bank Financial Institutions Rating Criteria to assess GGB's funding and liquidity. This variation from the criteria involves using the ratio of liquid assets/short-term funding as the core metric in the analysis. The variation does not affect Fitch's overall rating conclusion. ESG Considerations GGB's ESG Relevance Score of '4' for Governance Structure reflects its Islamic banking nature, where its operations and activities need to comply with sharia principles and rules, which entails additional costs, processes, disclosures, regulations, reporting and sharia audit. This has a negative impact on its credit profile and is relevant to the ratings in conjunction with other factors. GGB has an ESG Relevance Score of '3' for Exposure to Social Impacts, above sector guidance for an ESG Relevance Score of '2' for comparable conventional banks, which reflects that Islamic banks have certain sharia limitations embedded in their operations and obligations, although this only has a minimal credit impact on Islamic banks. The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. Entity/Debt Rating Prior ----------- ------ ----- Golden Global Yatirim Bankasi A.S. LT IDR B- Affirmed B- ST IDR B Affirmed B LC LT IDR B- Affirmed B- LC ST IDR B Affirmed B Natl LT BB-(tur)Affirmed BB-(tur) Viability b- Affirmed b- Government Support ns Affirmed ns =========================== U N I T E D K I N G D O M =========================== ABBEYGLEN (CANNING ROAD): MHA Appointed as Joint Administrators --------------------------------------------------------------- Abbeyglen (Canning Road) Limited was placed into administration in the High Court of Justice, Court Number CR-2026-005620, 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 c Tel: 020 7429 4100 Email: Clara.Groves@mha.co.uk Alternative Contact: Clara Groves ADMIN BUSINESS: Begbies Traynor Appointed as Administrators ----------------------------------------------------------- Admin Business Solutions 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-MAN-001033, and Mark Weekes and Paul Stanley of BTG Begbies Traynor (Central) LLP were appointed as Administrators on July 20, 2026. The company specialized in other transportation support activities. Its registered office is at c/o BTG Begbies Traynor, 340 Deansgate, Manchester, M3 4LY. Its principal trading address is Unit 7, Admiral Business Park, 73 Cawdor Street, Eccles, Manchester, M30 0ZW. The Administrators can be contacted at: Mark Weekes Paul Stanley BTG Begbies Traynor (Central) LLP 340 Deansgate Manchester M3 4LY Further details contact: Alex Coffey BTG Begbies Traynor (Central) LLP Tel: 0161 837 1700 Email: Alex.Coffey@btguk.com AVON FINANCE NO.3: S&P Lowers E-Dfrd Notes Rating to 'BB- (sf)' --------------------------------------------------------------- S&P Global Ratings lowered to 'BB- (sf)' from 'BB+ (sf)' and removed from CreditWatch negative its credit rating on Avon Finance No.3 PLC's class E-Dfrd notes. At the same time, S&P lowered its ratings to 'A- (sf)' from 'A (sf)' on the class D-Dfrd notes, and to 'B- (sf)' from 'B (sf)' on the class X-Dfrd notes. S&P also affirmed its 'AAA (sf)' rating on the class A notes, 'AA+ (sf)' rating on the class B notes, 'AA- (sf)' rating on the class C-Dfrd notes, and 'B-(sf)' rating on the class F-Dfrd notes. S&P said, "The rating actions follow our May 5, 2026, placement of our rating on the class E-Dfrd notes on CreditWatch negative due to the implementation of updates to our U.K. sector and industry variables under our global RMBS criteria. They also reflect our full analysis of the most recent transaction information and the transaction's current structural features. "The performance of the loans in the collateral pool has deteriorated slightly since our previous review. Based on our calculation methodology, total arrears increased to 21.38% in April 2026, of which 14.18% is in 90+ days arrears. Cumulative losses remain at 0.22%. Credit enhancement has increased for all classes of notes since our previous review. "After applying our updated sector and industry variables, the overall effect in our credit analysis resulted in an increase in the weighted-average foreclosure frequency (WAFF) at all rating levels. This increase was due to a curtailment of seasoning credit for interest-only loans and higher income adjustment. Some of this increase is partially offset by lower anchor default probabilities, lower loan-to-value ratio adjustments, and recalibration and reduction of the originator adjustment. "Our weighted-average loss severities (WALS) have increased at all rating levels, driven by updated repossession costs, increased loan-level loss severity floors, and limited credit to house price indexation, considering the property valuation dates and observed loss severity. Our lower overvaluation assessment for London and the southeast partially offsets some of this negative effect." Credit analysis results Rating level WAFF (%) WALS (%) Credit coverage (%) AAA 48.8 21.67 10.58 AA 40.55 17.78 7.21 A 35.92 12.89 4.63 BBB 31.36 10.09 3.16 BB 26.53 7.78 2.06 B 25.38 5.58 1.42 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. The reserve fund is at its required level of GBP4,502,607. The transaction's sequential priority of payments and the notes' amortization have increased the available credit enhancement for all classes of notes, with the pool factor falling to 64.43%. S&P said, "Our credit and cash flow results for the class A, B, and C-Dfrd notes indicate that their available credit enhancement remains commensurate with the currently assigned ratings, therefore, we affirmed our 'AAA (sf)', 'AA+ (sf)', and 'AA- (sf)' ratings on these classes of notes, respectively. "We lowered to 'A- (sf)' from 'A (sf)' our rating on the class D-Dfrd notes and to 'BB- (sf)' from 'BB+ (sf)' our rating on the class E-Dfrd notes to reflect the increase in required coverage for these tranches and the results of our cash flow analysis. In our analysis, we gave credit to a senior servicing fee cap of 0.15%, which is a feature of the structure at lower rating levels ('BB' and 'B'). We also removed the rating on the class E-Dfrd notes from CreditWatch negative. "The class F-Dfrd and X-Dfrd notes face shortfalls under our standard cash flow analysis at the 'B' rating level. Therefore, we applied our 'CCC' ratings criteria to assess if either a rating of 'B-' or a 'CCC' category rating would be appropriate. These criteria specify the need to assess whether there is any reliance on favorable business, financial, and economic conditions to meet the payment of interest and principal. "In our steady state scenario, we decreased our prepayment assumptions in our 'high' interest rate scenario based on the prepayment level, stressed actual fees in our cash flow analysis, and did not apply spread compression or basis risk. "In the steady state scenario, where the current stress level shows little to no increase and collateral performance remains steady, the class F-Dfrd notes pass our 'B' cash flow stresses. Therefore, in our view, payment of interest and principal on this tranche does not depend on favorable business, financial, and economic conditions. We therefore affirmed our 'B- (sf)' rating on this class of notes. "The class X-Dfrd notes do not pass our 'B' cash flow stresses in the steady state scenario, however these notes continue to amortize and have only GBP2,777,290 of principal outstanding. We also considered the presence of a fully funded reserve fund. We therefore lowered to 'B- (sf)' from 'B (sf)'our rating on this class of notes." Avon Finance No. 3 is backed by a pool of U.K. legacy nonconforming owner-occupied and BTL mortgages originated by GMAC-RFC Ltd. and Platform Funding Ltd. AVON FINANCE NO.4: S&P Affirms 'CCC- (sf)' Rating on G-Dfrd Notes ----------------------------------------------------------------- S&P Global Ratings lowered to 'A (sf)' from 'A+ (sf)' and removed from CreditWatch negative its credit rating on Avon Finance No.4 PLC's class C-Dfrd notes. At the same time, S&P lowered its rating on the class D-Dfrd notes to 'BBB- (sf)' from 'BBB (sf)' and affirmed its 'AAA (sf)' rating on the class A notes, 'AA+ (sf)' rating on the class B notes, 'B- (sf)' rating on the class E-Dfrd notes, 'CCC (sf)' ratings on the class F-Dfrd and X-Dfrd notes, and 'CCC- (sf)' rating on the class G-Dfrd notes. S&P said, "The rating actions follow our May 5, 2026, placement of our rating on the class C-Dfrd notes on CreditWatch negative due to the implementation of updates to our U.K. sector and industry variables under our global RMBS criteria. They also reflect our full analysis of the most recent transaction information and the transaction's current structural features. "The performance of the loans in the collateral pool has remained in line with our expectations since our previous review. Based on our calculation methodology, total arrears are at 20.74% in May 2026, of which 13.13% is in 90+ days arrears. Cumulative losses remain at 0.33%. Credit enhancement has increased for all classes of notes since our previous review. "After applying our updated sector and industry variables, the overall effect in our credit analysis resulted in an increase in the weighted-average foreclosure frequency (WAFF) at all rating levels. This increase was due to a curtailment of seasoning credit for interest-only loans and higher income adjustment. Some of this increase is partially offset by lower anchor default probabilities, lower loan-to-value ratio adjustments, and recalibration and reduction of the originator adjustment. "Our weighted-average loss severities (WALS) have increased at all rating levels, driven by updated repossession costs, increased loan-level loss severity floors, and limited credit to house price indexation, considering the property valuation dates and observed loss severity. Our lower overvaluation assessment for London and the southeast partially offsets some of this negative effect. Credit analysis results Rating level WAFF (%) WALS (%) Credit coverage (%) AAA 49.96 22.54 11.26 AA 41.43 18.59 7.7 A 36.79 13.5 4.97 BBB 32.18 10.59 3.41 BB 27.3 8.2 2.24 B 26.15 5.94 1.55 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. Both the liquidity reserve fund and the reserve fund are at their required levels of GBP2,514,600 and GBP2,801,895, respectively. The transaction's sequential priority of payments and the notes' amortization have increased the available credit enhancement for all classes of notes, with the pool factor falling to 63.16%. S&P said, "Our credit and cash flow results for the class A and B notes indicate that their available credit enhancement remains commensurate with the currently assigned ratings, therefore, we affirmed our 'AAA (sf)' and 'AA+ (sf)' ratings on these classes of notes, respectively. "We lowered to 'A (sf)' from 'A+ (sf)' and removed from CreditWatch negative our rating on the class C-Dfrd notes and lowered our rating on the class D-Dfrd notes to 'BBB- (sf)' from 'BBB (sf)' to reflect the effect of the increase in required credit coverage for these tranches. "The class E-Dfrd, F-Dfrd, G-Dfrd, and X-Dfrd notes face shortfalls under our standard cash flow analysis at the 'B' rating level. Therefore, we applied our 'CCC' ratings criteria to assess if either a rating of 'B-' or a 'CCC' rating category would be appropriate. These criteria specify the need to assess whether there is any reliance on favorable business, financial, and economic conditions to meet the payment of interest and principal. "In our steady state scenario, we decreased our prepayment assumptions in our 'high' interest rate scenario based on the prepayment level, stressed actual fees in our cash flow analysis, and did not apply spread compression or basis risk. In this scenario, where the current stress level shows little to no increase and collateral performance remains steady, the class E-Dfrd notes pass our 'B' cash flow stresses. Therefore, in our view, payment of interest and principal on this tranche does not depend on favorable business, financial, and economic conditions. We therefore affirmed our 'B- (sf)' rating on this class of notes. "The class F-Dfrd, G-Dfrd, and X-Dfrd notes do not pass our 'B' cash flow stresses in the steady state scenario. Therefore, in our view, payment of interest and principal on these tranches depends on favorable business, financial, and economic conditions. We therefore affirmed our 'CCC (sf)' rating on the class F-Dfrd notes, 'CCC- (sf)' rating on the class G-Dfrd notes, and 'CCC (sf)' rating on the class X-Dfrd notes." Avon Finance No. 4 PLC is backed by a pool of U.K. legacy nonconforming owner-occupied and BTL mortgages originated by GMAC-RFC Ltd. and Platform Funding Ltd. CASTELL 2026-1: S&P Raises Cl. X1-Dfrd Notes Rating to 'BB+ (sf)' ----------------------------------------------------------------- S&P Global Ratings raised and removed from CreditWatch positive its credit ratings on Castell 2026-1 PLC's class B-Dfrd notes to 'AA+ (sf)' from 'AA (sf)', C-Dfrd notes to 'AA (sf)' from 'A (sf)', D-Dfrd notes to 'A (sf)' from 'BBB (sf)', E-Dfrd notes to 'BBB (sf)' from 'BB+ (sf)', and F-Dfrd notes to 'BB- (sf)' from 'B (sf)'. At the same time, S&P raised its rating on the class X1-Dfrd notes to 'BB+ (sf)' from 'B- (sf)', and affirmed its 'AAA (sf)' and 'B- (sf)' ratings on the class A and G-Dfrd notes, respectively. 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 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." Performance data is limited due to the transaction's recent closing. Total arrears were 3.70% in May 2026, of which 1.98% represented 90+ days arrears, compared with 3.37% total arrears and 90+ days arrears of 1.88% at closing. There are no cumulative losses. S&P said, "After applying our updated sector and industry variables, the overall effect in our credit analysis resulted in a decrease in the weighted-average foreclosure frequency (WAFF) at all rating levels due to lower anchor default probabilities, a lower loan-to-value ratio adjustment, a lower income adjustment, a lower payment shock adjustment, and a lower second-lien adjustment. These factors have been slightly offset by the increase in arrears. "Our weighted-average loss severities (WALS) have increased at all rating levels, primarily driven by the increase in our loss severity floors and fixed fee assumptions. This has been slightly offset by the lower overvaluation assessment for London and the southeast." Credit analysis results Rating level WAFF (%) WALS (%) Credit coverage (%) AAA 20.92 80.53 16.85 AA 14.60 75.01 10.95 A 11.34 63.83 7.24 BBB 8.24 55.94 4.61 BB 4.98 49.43 2.46 B 4.20 42.85 1.80 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. The liquidity reserve is at its target level of GBP2,941,430. Excess spread is 2.11% based on our calculation, which factors stressed servicing fees. The transaction's sequential priority of payments and the notes' amortization slightly increased the available credit enhancement for the class A to G-Dfrd notes on the two interest payment dates since closing. S&P said, "We affirmed our ratings on the class A and G-Dfrd notes because our credit and cash flow results indicate their available credit enhancement remains commensurate with the assigned ratings. "Under our credit and cash flow analysis, the available credit enhancement for the class B-Dfrd to F-Dfrd notes is commensurate with higher ratings. These classes of notes also passed cash flow stresses at higher rating levels than those assigned. We therefore raised and removed from CreditWatch positive our ratings on these classes of notes. However, we limited these upgrades to the rating levels assigned, to reflect the deferrable nature of the notes, the relative levels of credit enhancement and subordination, the potential for arrears to increase and losses to materialize, and the current uncertain macroeconomic environment." The class X1-Dfrd notes have redeemed significantly since closing to GBP12.8 million from GBP16 million due to a large payment on the first interest payment date. S&P said, "Under our credit and cash flow analysis, the available credit enhancement for this class of notes is commensurate with a higher rating. We therefore raised our rating but limited the upgrade to 'BB+ (sf)', given the tranche's reliance on excess spread and considering upcoming interest revision dates which may accelerate prepayments." Counterparty risk does not constrain the ratings as S&P considers the transaction to be in line with our counterparty criteria. Macroeconomic forecasts and forward-looking analysis S&P said, "We expect U.K. inflation to remain above the Bank of England's 2% target in 2026, and we forecast a 2.6% year-on-year change in house prices in the fourth quarter of 2026. Given our current macroeconomic forecasts and forward-looking view of the U.K. residential mortgage market, we performed additional sensitivities relating to higher default levels due to increased arrears and extended recovery timings. The sensitivity analysis results indicate a deterioration consistent with our credit stability considerations in our rating definitions." The transaction is backed by a pool of second-lien, owner-occupied mortgage loans secured on properties in England, Scotland, and Wales. The originator is UK Mortgage Lending Ltd. (wholly owned by Pepper Money Ltd.). DACC EUROPE: RSM Appointed as Administrators -------------------------------------------- Dacc Europe 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-2026-005349, and Glen Carter and Damian Webb of RSM UK Restructuring Advisory LLP were appointed as Administrators on July 21, 2026. The company operated as installers of telecommunications. Its registered office and principal trading address is 154 Cannon Workshops, 3 Cannon Drive, London, E14 4AS. The Administrators can be contacted at: Glen Carter RSM UK Restructuring Advisory LLP Highfield Court Tollgate Chandlers Ford Eastleigh SO53 3TY -- and -- Damian Webb RSM UK Restructuring Advisory LLP 25 Farringdon Street London EC4A 4AB Correspondence address and contact details of case manager: Luke Jones RSM UK Restructuring Advisory LLP 25 Farringdon Street London EC4A 4AB Tel: 020 3201 8000 Further details contact: Glen Carter Tel: 02380 646 464 Damian Webb Tel: 020 3201 8000 MARKETGAIT PROPERTY: FRP Advisory Appointed as Joint Administrators ------------------------------------------------------------------- Marketgait Property Investment Limited was placed into administration in the Court of Session, No COS-P264 of 2026, and Chad Griffin and Michelle Elliot of FRP Advisory Trading Limited were appointed as Joint Administrators on July 15, 2026. The company specialized in real estate. Its registered office is at New Street, St Helier, JE2 3RA. Its principal trading address is Marketgait Apartments, 2 Johnston Street, Dundee, DD1 1PJ. The Joint Administrators can be contacted at: Chad Griffin Michelle Elliot FRP Advisory Trading Limited Level 2 The Beacon 176 St Vincent Street Glasgow G2 5SG Further details contact: The Joint Administrators Tel: 0330 055 5455 Alternative Contact: Ryan McGee Email: cp.edinburgh@frpadvisory.com MASK LOGIC: AAB Business Appointed as Joint Administrators ---------------------------------------------------------- Mask Logic Limited (trading as Mask Logic Ltd) was placed into administration in the Court of Session, No P753/26 of 2026, and David McGinness and Judith Howson of of AAB Business & Tax Advisory LLP were appointed as Joint Administrators on July 20, 2026. The company specialized in the manufacture of wearing apparel and accessories not elsewhere classified. Its registered office is Suite 2, Ground Floor, Orchard Brae House, 30 Queensferry Road, Edinburgh, EH4 2HS (formerly Floor 3, 1-4 Atholl Crescent, Edinburgh, EH3 9HA). Its principal trading address is 10 Max Born Crescent, Edinburgh, EH9 3BF. The Joint Administrators can be contacted at: David McGinness Judith Howson 81 George Street Edinburgh EH2 3ES Tel: 0131 243 0178 Email: restructuring@aab.uk MEASURABLE LTD: Opus Restructuring Named as Administrators ---------------------------------------------------------- Measurable Ltd (trading as Measurable.Energy) was placed into administration in the High Court of Justice, Court Number CR-2026-005105, and Allister Manson and Bradley Parrott of Opus Restructuring LLP were appointed as Administrators on July 15, 2026. The company specialized in the development and manufacture of smart electronics. Its registered office is at Fountain House, 8th Floor, 2 Queens Walk, Reading, Berkshire, RG1 7QF (to be changed to 1 Radian Court, Knowlhill, Milton Keynes, Buckinghamshire, MK5 8PJ). Its principal trading address is Fountain House, 8th Floor, 2 Queens Walk, Reading, Berkshire, RG1 7QF. The Administrators can be contacted at: Allister Manson Bradley Parrott Opus Restructuring LLP 322 High Holborn London WC1V 7PB Further details: Contact: Sophie Hunt Tel: 0204 548 9464 Email: sophie.hunt@opusllp.com MG SIGNS: Moorfields Appointed as Joint Administrators ------------------------------------------------------ MG Signs Ltd was placed into administration in the High Court of Justice, Business and Property Courts, No 005636 of 2026, and Steven Sartin and Andrew Pear of Moorfields were appointed as Joint Administrators on July 20, 2026. The company's registered office and principal trading address is M G Signs Ltd, 12 Pond Wood Close, Northampton, NN3 6RT. The Joint Administrators can be contacted at: Steven Sartin Andrew Pear Moorfields 82 St John Street London EC1M 4JN Telephone: 020 7186 1144 Further details contact: Tess Mitchell Tel: 020 7186 1182 Email: tess.mitchell@moorfieldscr.com Address: 82 St John Street, London, EC1M 4JN MORTIMER BTL 2023-1: S&P Affirms 'BB+ (sf)' Rating on X-Dfrd Notes ------------------------------------------------------------------ S&P Global Ratings raised and removed from CreditWatch positive its credit ratings on Mortimer BTL 2023-1 PLC's class B notes to 'AA+ (sf)' from 'AA (sf)', C-Dfrd notes to 'AA (sf)' from 'A+ (sf)', and D-Dfrd notes to 'A (sf)' from 'BBB+ (sf)'. At the same time, S&P affirmed its 'AAA (sf)' rating on the class A notes, 'BBB- (sf)' rating on the class E-Dfrd notes, and 'BB+ (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, C-Dfrd, and D-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. "Since our previous review, the performance of the loans in the collateral pool has deteriorated slightly. Based on our calculation methodology, 30+ days arrears increased to 2.07% in February 2026 from 1.57% in May 2025. Cumulative losses remain at zero." The transaction's sequential priority of payments and the notes' amortization have increased the available credit enhancement for class A, B, C-Dfrd, D-Dfrd, and E-Dfrd notes, with the pool factor falling to 34.8% in February 2026. Since closing, credit enhancement for these notes increased to 21.1%, 10.7%, 6.9%, 3.1%, and 1.2% from 11.6%, 4.5%, 2.25%, 1.1%, and 0.0%, respectively. The three-month prepayment rate reduced to 12.3% in February 2026 from 33.11% in May 2025. This trend is consistent with the expected reversion profile at closing and has reduced the pool factor to 53%, as of February 2026, following the main reversion spikes in 2024 and 2025 for two-year fixed loans. S&P expects prepayment rates to continue decreasing until 2028, when the next major spike in reversions will occur. S&P said, "After applying our updated sector and industry variables, the overall effect in our credit analysis resulted in a decrease in the weighted-average foreclosure frequency (WAFF) at 'AAA' to 'BBB' rating levels. The decline is largely due to lower anchor default probabilities, lower loan-to-value adjustments, and the lower payment shock adjustment. However, at 'BB' and 'B' rating levels, we noted that some of this positive impact is offset by an increase in 90+ days arrears to 2.0% from 0.7%. "Our weighted-average loss severities (WALS) have decreased at the 'AAA' to 'BBB' rating levels since closing, largely due to our lower overvaluation assessment for London and the southeast where the assets are primarily concentrated. This further resulted in lower repossession market value declines. At 'BB' and 'B' rating levels our WALS assumption has increased slightly due to the application of higher loss severity floor levels at each rating level based on our updated methodology." Credit analysis results Rating level WAFF (%) WALS (%) Credit coverage (%) AAA 16.25 35.47 5.76 AA 11.50 30.30 3.48 A 9.06 21.33 1.93 BBB 6.74 16.29 1.10 BB 4.31 12.62 0.54 B 3.73 9.21 0.34 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. The liquidity reserve fund is at its target level. Excess spread is 1.3% based on our calculation, which considers stressed servicing fees. 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 current rating. We also affirmed our 'BBB- (sf)' rating on the class E-Dfrd notes and 'BB+ (sf)' rating on the class X-Dfrd notes. These ratings reflect the deferrable nature of the notes and their relative position in the capital structure. "The class E-Dfrd and X-Dfrd notes face shortfalls in our standard cash flow analysis, at their current rating levels, in the high conditional prepayment rate (CPR) scenarios. However, as we expect the CPR to decrease, we lowered our high CPR assumption for these classes of notes, considering our current U.K. BTL post-2014 RMBS prepayment index and reflecting our expectation that prepayment rates are likely to fall until 2028, consistent with the fixed-to-floating rate reversion profile. In this run, the class E-Dfrd and X-Dfrd notes pass at or above their current rating levels. Credit enhancement has slowly built up for the class E-Dfrd notes (to 1.2% as at February 2026 from 0.06% at closing) due to the general reserve fund, which has been building up since closing and currently stands at its target level of GBP2.58 million. The class X-Dfrd notes have paid down significantly, to GBP0.25 million as of May 2026 from GBP5.12 million at closing. While excess spread has reduced, it remains positive, and the transaction's turbo feature occurs after the payment of class X-Dfrd interest and principal. Considering all these factors, we affirmed our 'BBB- (sf)' rating on the class E-Dfrd notes and 'BB+ (sf)' rating on the class X-Dfrd notes. "Although the class B and C-Dfrd notes passed cash flow stresses at higher rating levels than those assigned driven by improved credit assumptions and increased credit enhancement from subordination, we considered the deferrable nature of these notes, the upcoming peak in interest revision dates, and the notes' relative position in the capital structure. We therefore limited our upgrades of these classes of notes and removed our ratings on them from CreditWatch positive. "Our credit and cash flow analysis indicates that the available credit enhancement for the class D-Dfrd notes is now commensurate with the 'A' rating level. The notes demonstrated resilience to our cash flow sensitivities including increased defaults and higher prepayments. We therefore raised our rating on this class of notes to 'A (sf)' from 'BBB+ (sf)' and removed it from CreditWatch positive." Counterparty risk does not constrain the ratings as S&P considers 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 Q4 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." Mortimer BTL 2023-1 PLC is a RMBS securitization of BTL first-ranking prime mortgage loans secured over properties in the U.K. and originated by LendInvest. POLARIS 2023-2: S&P Lowers Class F-Dfrd Notes Rating to 'B+ (sf)' ----------------------------------------------------------------- S&P Global Ratings lowered to 'B+ (sf)' from 'BB (sf)' and removed from CreditWatch positive its credit rating on Polaris 2023-2 PLC's class F-Dfrd notes. At the same time, S&P affirmed and removed from CreditWatch positive its 'BBB (sf)' rating on the class E-Dfrd notes. S&P raised to 'AA- (sf)' from 'A+ (sf)' its rating on the class D-Dfrd notes, and affirmed its 'AAA (sf)', 'AA+ (sf)', and 'AA (sf)' ratings on the class A, B-Dfrd, and C-Dfrd notes, respectively. S&P said, "The rating actions follow our May 5, 2026, placement of our ratings on the class E-Dfrd and F-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. "The performance of the loans in the collateral pool has slightly deteriorated since our previous review in September 2025. Based on our calculation methodology, total arrears increased to 12.32% in March 2026 from 10.84% at our previous review, of which 7.55% is in 90+ days arrears from 6.96% at our previous review. Cumulative losses remain low at 0.17%. Credit enhancement has increased significantly for all classes of notes and has at least doubled since closing. "After applying our updated sector and industry variables, the overall effect in our credit analysis resulted in a decrease in the weighted-average foreclosure frequency (WAFF) at the 'AAA' to 'BB' rating levels, largely due to lower anchor default probabilities, a lower loan-to-value ratio adjustment, a lower payment shock adjustment, and a lower loan purpose adjustment. At the 'B' rating level, the aforementioned factors have been offset by the increased arrears, particularly 90+ days arrears. "Our weighted-average loss severities (WALS) have decreased at the 'AAA' and 'AA' rating levels, primarily driven by our lower overvaluation assessment for London and the southeast. At the 'A' to 'B' rating levels, the WALS have increased slightly due to an increase in our loss severity floors." Credit analysis results Rating level WAFF (%) WALS (%) Credit coverage (%) AAA 24.05 29.42 7.07 AA 18.93 24.83 4.70 A 16.30 17.78 2.90 BBB 13.82 13.76 1.90 BB 11.16 10.65 1.19 B 10.53 7.75 0.82 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. The liquidity reserve is at its target level of GBP3,958,610. Excess spread is 1.16% based on our calculation, which considers stressed servicing fees. The transaction's sequential priority of payments and the notes' amortization have increased the available credit enhancement for the class A to F-Dfrd notes, with the pool factor falling to 48.93%. S&P said, "We affirmed our 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 and C-Dfrd notes passed cash flow stresses at higher rating levels than those assigned, we affirmed these ratings considering the deferrable nature of the notes, their available credit enhancement, and their relative levels of subordination. "Under our credit and cash flow analysis, the available credit enhancement for the class D-Dfrd notes is commensurate with a higher rating. However, the rating on these notes also reflects their relative position in the capital structure, the high arrears, and current uncertain macroeconomic environment. We therefore limited our upgrade of this class of notes to 'ÁA- (sf)' "We affirmed and removed from CreditWatch positive our rating on the class E-Dfrd notes because our credit and cash flow results indicate their available credit enhancement remains commensurate with the assigned rating. "Our servicing fee assumptions were correct at closing. However, due to an error, we did not completely account for servicing fees in our surveillance reviews for this transaction, which affected our analysis of the class F-Dfrd notes. While credit enhancement has built up for this tranche to 2% in March 2026 from 1% at closing, this is more than offset by the deterioration in credit results. As mentioned above, since closing, arrears have increased significantly, particularly 90+ days arrears. We lowered to 'BB (sf)' from 'BB+ (sf)' our rating on the class F-Dfrd notes at our previous review. For loans in 90+ days arrears, we analyzed arrears information against payments due for the last 12 months to determine the pay rates and gave credit to pay rates at the 'BBB' to 'B' rating levels and instead of a 100% WAFF, applied a 5x adjustment to the WAFF. We also considered a customized constant prepayment rate (CPR) curve reflecting the upcoming peak in interest revision dates in 2027. When considering the pay rate information, the potential upcoming peak in prepayments, and completely accounting for servicing fees, the cash flow results for the class F-Dfrd notes are commensurate with a 'B+ (sf)' rating. We therefore lowered to 'B+ (sf)' from 'BB (sf)' and removed from CreditWatch positive our 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." Polaris 2023-2 PLC is a static RMBS transaction that securitizes a portfolio of owner-occupied and BTL mortgage loans secured on properties in the U.K. RIPON MORTGAGES: S&P Lowers Class F-Dfrd Notes Rating to 'B- (sf)' ------------------------------------------------------------------ S&P Global Ratings affirmed its 'AAA (sf),' 'AA- (sf),' 'A (sf),' and 'B- (sf)' credit ratings on Ripon Mortgages PLC's class A, B-Dfrd, C-Dfrd, and X-Dfrd notes, respectively. S&P also lowered its ratings to 'BB (sf)' from 'BBB- (sf)' on the class D-Dfrd notes, to 'B (sf)' from 'BB- (sf)' on the class E-Dfrd notes, and to 'B- (sf)' from 'B (sf)' on the class F-Dfrd notes. At the same time, S&P resolved the CreditWatch negative placements of the B-Dfrd to F-Dfrd ratings. 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. "The performance of the loans in the collateral pool has slightly deteriorated since closing. Based on our calculation methodology, total arrears increased to 7.79% in April 2026 from 7.47% at closing, while total 90+ day arrears increased to 5.71% from 5.24% at closing. Cumulative losses have been steadily increasing and currently stand at 0.84%. "After applying our updated sector and industry variables, the overall effect on our credit analysis resulted in an increase in the weighted-average foreclosure frequency (WAFF) at all rating levels since closing. This is due to a curtailment of seasoning credit for interest-only loans, partially offset by lower anchor default probabilities, lower loan-to-value ratio adjustments, and the recalibration and reduction of the originator adjustment. "Our weighted-average loss severities have decreased at the 'AAA' rating level and increased at the 'AA' to 'B' levels since closing, driven by updated repossession costs, increased loan-level loss severity floors, and limited credit to house price indexation, considering the property valuation dates and loss severity. Our lower overvaluation assessment for London and the southeast offsets this negative effect at the 'AAA' rating level and partially offsets this negative effect at the 'AA' to 'B' levels." The overall effect of the above is a decrease in credit coverage at the 'AAA' and 'AA' rating levels and an increase in credit coverage at the 'A' to 'B' levels. Credit analysis results Rating level WAFF (%) WALS (%) Credit coverage (%) AAA 29.54 24.48 7.23 AA 22.91 20.06 4.60 A 19.48 14.42 2.81 BBB 16.22 11.50 1.86 BB 12.78 9.12 1.17 B 11.96 6.85 0.82 WAFF--Weighted-average foreclosure frequency. WALS--Weighted-average loss severity. The nonamortizing reserve fund is at its required level of GBP44.21 million, and there are no principal deficiency ledger debits currently outstanding. S&P said, "Our credit and cash flow results indicate the available credit enhancement for the class A to C-Dfrd notes remains commensurate with theassigned ratings. We therefore affirmed our ratings on these classes of notes, and removed the ratings on the class B-Dfrd and C-Dfrd notes from CreditWatch negative. "The downgrades of the class D-Dfrd, E-Dfrd, and F-Dfrd notes reflect the effects of our updated sector and industry variables as discussed above, which have resulted in an increase in credit coverage at the lower rating levels. We therefore lowered and removed these ratings from CreditWatch negative because our credit and cash flow results indicate their available credit enhancement is no longer commensurate with the assigned ratings. "The class F-Dfrd and X-Dfrd notes face shortfalls under our standard cash flow analysis at the 'B' rating level. Therefore, we applied our 'CCC' ratings criteria to assess if either a rating of 'B-' or a 'CCC' category rating would be appropriate. These criteria specify the need to assess whether there is any reliance on favorable business, financial, and economic conditions to meet the payment of interest and principal. In our view, based on cash flow results in a steady state scenario (applying actual unstressed fees, actual prepayments, no spread compression, and no basis risk), the payment of ultimate interest and principal on the class F-Dfrd and X-Dfrd notes is not dependent upon favorable business, financial, and economic conditions. We therefore lowered our rating on the class F-Dfrd notes and affirmed our rating on the class X-Dfrd notes. "Counterparty risk does not constrain the ratings as we consider the transaction to be in line with our counterparty criteria." Ripon Mortgages PLC is a static U.K. RMBS BTL transaction. The seller is Isle of Wight Home Loans Ltd. and the servicer is Topaz Finance Ltd. SMARTER RECRUITMENT: Leonard Curtis Appointed as Administrators --------------------------------------------------------------- Smarter Recruitment Consultancy Ltd was placed into administration in the High Court of Justice, Business and Property Court in Manchester, Company and Insolvency List (ChD), Court Number CR-2026-MAN-001073, and Mike Dillon and Katy McAndrew of Leonard Curtis were appointed as Joint Administrators on July 20, 2026. The company specialized in other activities of employment placement agencies. Its registered office and principal trading address is 9 Queens Parade, Newcastle, Staffordshire, ST5 1RW. The Joint Administrators can be contacted at: Mike Dillon Katy McAndrew Leonard Curtis Riverside House Irwell Street Manchester M3 5EN Further details contact: The Joint Administrators Email: Creditors.Manchester@leonardcurtis.co.uk Alternative Contact: Natasha Lee WD FF: Fitch Affirms 'B' IDR, Alters Outlook to Positive -------------------------------------------------------- Fitch Ratings has revised WD FF Limited's (Iceland) Outlook to Positive from Stable and affirmed the Issuer Default Rating (IDR) at 'B'. Fitch has also assigned Iceland Bondco Plc's proposed EUR600 million equivalent senior secured notes an expected rating of 'B+(EXP)' with a Recovery Rating of 'RR3'. The final rating is contingent on receipt of final documentation consistent with the information already reviewed. The Positive Outlook reflects Iceland's commitment to deleveraging, with EBITDAR gross leverage expected to fall below the sensitivities by FY29 (financial year-end March). This is accompanied by a strong value proposition despite intense competition in the UK, mildly positive free cash flow (FCF) over FY27-FY29, supported by lower capex and comfortable liquidity. The IDR affirmation reflects Iceland's solid positioning as a specialist retailer focused on frozen food and value-seeking consumers, which helps offset its limited scale. The company has shown resilient profitability through business cycles, supported by cost-saving programmes and a hedging strategy for the energy price that mitigates cost challenges. Key Rating Drivers Commitment to reduce its Leverage: Fitch projects Iceland's EBITDAR gross leverage to remain broadly stable at 5.1x in FY27. Iceland has followed a deleveraging trajectory over the past three years, and Fitch expects this to continue on both a net and gross basis over the rating horizon, supported by continued EBITDA growth and voluntary debt repayments, which could result in EBITDAR leverage below 5.0x in FY28. Fitch views Iceland's leverage profile as remaining comfortable, albeit currently only close to the minimum necessary for an upgrade. Iceland remains committed to gradually reducing its leverage, also supported by potential voluntary debt repayments in the coming years, which the company's comfortable cash cushion can support. This is captured in the Positive Outlook, and demonstrated commitment to deleveraging is a condition for a rating upgrade. Over FY19-FY26, with a brief interruption in FY21, the company consistently prepaid small portions of debt of GBP15 million-20 million annually. Resilient Market Positioning: Iceland's value positioning is a major support for its sales volume, market share and like-for-like volume growth in the UK grocery market, which underpins its Positive Outlook. The company's market share has remained resilient, with only a 10bp decline over the past 10 years, despite the rapid growth of discounters raising their market share by 8.5% in the same period. This leads us to view Iceland's business profile as robust. Fitch expects Iceland's product offering to remain competitive for UK food consumers with weaker spending power, despite stiff competition. The company is the UK's second-largest frozen food retailer after Tesco but also offers a variety of non-frozen products (62% of revenue) at competitive prices. Its continued investment in pricing and new store formats, and strong online offering, help it defend its market share and grow revenues. Continued EBITDA Recovery Expected: Iceland's Fitch-defined EBITDA declined slightly to GBP148 million in FY26 from GBP157 million, mainly due to labour cost pressure, partly offset by continued cost-saving measures. Fitch forecasts EBITDA will improve to around 3.6% of sales from 3.4% in FY26, supported by continued sales growth, value positioning, ongoing Food Warehouse store expansion, and the rationalisation of its core store base. Operational cost-saving initiatives and the new Wellington depot should further support EBITDA growth. Weak Fixed Charge Cover: Fitch expects average EBITDAR coverage of around 1.6x in FY27-FY29, up from 1.3x in FY26, which was below the threshold of the negative sensitivity. Fitch expects the improvement in fixed-charge coverage to come from a lower interest burden following the transaction and earnings growth. Cash-Generative Business: Like other food retailers, Iceland is a cash-generative business. It generated a positive FCF margin of almost 1% in FY26, driven by a material working capital inflow from structural improvement that offset higher capex. Fitch expects FCF to remain mildly positive, averaging around 0.7% in FY27-FY29, as Iceland has completed its large capex investment in the Warrington depot and IGC facility, resulting in lower discretionary capex in the coming years, alongside continued earnings growth and a lower interest burden following the transaction, as reflected in the Positive Outlook. Profit Pressures Managed: Fitch expects Iceland to continue benefiting from various cost-saving measures that help offset cost inflation. In general, cost inflation is harder for smaller-scale grocers such as Iceland to absorb, as they operate with thinner Fitch-defined EBITDA margins than larger and more diversified mainstream grocers (5%-6%). Iceland has over 80% of its energy costs locked in for FY27, helping mitigate challenges from higher energy prices. The company has also implemented a policy of hedging at least 50% of its needs one year in advance to mitigate inflationary pressures. However, persistence of currently high energy prices could weigh on profitability over time. Peer Analysis As a mostly UK-based specialist food retailer, Iceland's business risk profile is constrained by its modest size and lower diversification than that of other Fitch-rated European food retailers, such as Tesco PLC (BBB/Stable), Bellis Finco plc (ASDA; B/Negative) and Market Holdco 3 Limited (Morrisons; B/Stable). All three peers are larger, more diversified, and have a higher share of freehold store ownership than Iceland. Iceland has a smaller market share than these peers in the UK grocery segment, but is well positioned in the frozen category, ranking second behind Tesco, demonstrating a steady performance. In addition, its offering is not limited to frozen food, with 62% of its revenue generated from the sale of other food and non-food products. Fitch expects Iceland's EBITDAR gross leverage to reach to a 5.1x in FY27, which is more than one turn lower than that of other Fitch-rated UK peers in the 'B' category. Fitch expects Morrisons to deleverage to 6.4x by FY26 and ASDA to 6.8x in FY26. Iceland is larger in sales than FR Bondco SAS (Picard; B/Stable), a French specialist food retailer also active in frozen foods, but its profitability is materially weaker (EBITDAR margin of 6% versus Picard's 17%). This makes them comparable at the EBITDAR level, although Picard has superior cash flow generation compared with other food retailers. Picard operates mostly in the higher-margin premium food category and benefits from strong brand awareness. Picard's EBITDAR gross leverage of around 7.0x in FY26 has been higher than that of Iceland. The latter is driven by Iceland's more conservative capital-allocation policy and continued focus on deleveraging. Fitch’s Key Rating-Case Assumptions - Retail revenue to increase by about 2.6% in FY27, followed by low single-digit growth over FY28-FY29, primarily driven by higher net store openings and increased sales. - 10 net new store openings from Food Warehouses, offsetting closures in the core Iceland store estate, over FY27-FY29. - EBITDA margin to gradually improve towards 3.6% (FY26: 3.4%), as cost savings offset wage inflation and price investments. - Working capital to remain broadly stable over FY27-FY29. - Capex to average around GBP55 million a year over FY27-FY29. - No dividends in the rating horizon to FY29 Corporate Rating Tool Inputs and Scores Fitch scored the issuer as follows, using its Corporate Rating Tool (CRT) to produce the Standalone Credit Profile (SCP): Business and financial profile factors (assessment, relative importance): management ('bb', Moderate), sector characteristics ('bb+', Lower), market and competitive positioning ('bb-', Higher), diversification and asset quality ('bb-', Moderate), company operational characteristics ('bb', Moderate), profitability ('bb', Moderate), financial structure ('b', Higher), and financial flexibility ('b+', Higher). The quantitative financial subfactors are based on standard CRT financial period parameters: 30% weight for the forecast year FY26, 50% for the forecast year FY27 and 20% for the forecast year FY28. B+ to CC considerations apply in its analysis and results in an adjustment of -1 notch(es). The governance assessment of 'good' has no impact. The operating environment assessment of 'aa-' has no impact. The SCP is 'b'. To derive the Long-Term IDR: Fitch made no adjustments to the SCP, resulting in an IDR of 'B'. Recovery Analysis Fitch's recovery analysis assumes that Iceland would be reorganised as a going concern (GC) in bankruptcy rather than liquidated. Fitch has assumed a 10% administrative claim. Iceland's GC EBITDA assumption reflects the scale of its business with new store openings each year, an improved cost base with visibility on energy costs and its disposal of a loss-making business in Ireland. The GC EBITDA of GBP120 million reflects its view of a sustainable, post-reorganisation EBITDA on which Fitch bases the enterprise valuation (EV). The assumption also reflects corrective measures taken in the reorganisation to offset the adverse conditions that trigger its default, such as cost-cutting efforts or a material business repositioning. Fitch applies an EV multiple of 5.0x to the GC EBITDA to calculate a post-reorganisation EV increasing from 4.5x reflecting the strengthening of their business profile and good market positioning. Iceland's GBP75 million revolving credit facility (RCF) is assumed to be fully drawn in default. The RCF is super senior to the company's senior notes in the debt waterfall. Upon completion of the planned transaction, the proposed new debt instrument equivalent of EUR600 million would result in a rating of 'B+'. RATING SENSITIVITIES Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade - Decline in like-for-like sales, with a loss of market share due to competition or to permanently lower capex, or an inability to pass on cost inflation to consumers, leading to accelerating EBITDA margin erosion or neutral FCF on a sustained basis - Tightening of liquidity due to unexpected cash outflows - EBITDAR gross leverage above 6.0x (or net basis at 5.5x) on a sustained basis - EBITDAR fixed-charge coverage consistently below 1.5x Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade - An increase in like-for-like sales and the maintenance of stable market shares, keeping the EBITDA margin at the existing level and resulting in a comfortably positive FCF margin on a sustained basis - EBITDAR gross leverage below 5.0x (or net basis at 4.5x) on a sustained basis - EBITDAR fixed-charge coverage above 1.7x for an extended period Liquidity and Debt Structure Fitch views Iceland's liquidity as comfortable. Fitch expects pro forma cash of GBP192 million at FYE27, excluding GBP20 million of restricted cash designated for working-capital purposes (Fitch-adjusted). In addition, Iceland has an undrawn revolving credit facility of around GBP75 million, which is expected to be extended to 2028 as part of the refinancing transaction. Fitch also expects the company to generate positive FCF from FYE26 onwards. After the transaction, Iceland will need to refinance its 2028 SSN of GBP250 million, which Fitch expects it will be able to do due to its proven record of accessing capital markets. Issuer Profile Iceland is a British food retailer specialising in frozen and chilled food products at a low price point. It operates around 1,000 stores in the UK. External Appeal Committee Outcomes In accordance with Fitch's policies the Issuer appealed and provided additional information to Fitch that resulted in a rating action that is different than the original rating committee outcome. MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in its credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included. Climate Vulnerability Signals The results of its Climate.VS screener did not indicate an elevated risk for WD FF Limited. ESG Considerations The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. ********* 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. 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